AEG’s 2010EnvironmEntAl sustAinAbility

rEport

introducinG AEG’s commitmEntto sustAinAbility

L.A. LIVE

NOKIA THEATRE L.A. LIVE

NOKIA THEATRE TIMES SQUARE

OGDEN THEATRE

RENTSCHLER FIELD

ROSE GARDEN

SAN DIEGO SPORTS ARENA

SPRINT CENTER

STAPLES CENTER

STOCKHOLM GLOBE ARENAS

TARGET CENTER

VERIZON THEATRE AT GRANd PRAIRIE (fORMERLy KNOwN AS NOKIA THEATRE GRANd PRAIRIE)

XL CENTER

THE O2

O2 WORLD BERLIN

02 WORLD HAMBURG (fORMERLy kNOWN As COLOR LINE ARENA)

ACER ARENA

CITIZENs BUsINEss BANk ARENA

CLUB NOkIA

THE HOME DEPOT CENTER

“Let every individual and institution now think and act as a responsible trustee of Earth, seeking choices in ecology, economics and ethics that will provide a sustainable future.”

— John McConnell, founder of International Earth Day

O2 World—Berlin, Germany

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entenvironm

ental perform

anCepartnersh

ipsoffiCe of

sustainability

5

introduCtion • MessagefromthePresidentandCEO 8

Company profile • WhoWeAre 10

• CorporateStructure 11

• EnvironmentalImpactoftheSportsand LiveEntertainmentIndustry 12

• TrendsintheSports,FacilityManagement,and LiveEntertainmentIndustries 12

rep or ting me thodology • Materiality 14

• Verification 14

• ScopeofReport 15

long term environmental goal s • 2020EnvironmentalVision 16

• TheRoadMaptoAchievingOurEnvironmentalVision 17

• EnvironmentalHighlights 18

environmental p oliCie s and man agement • AEG1EARTH 20

• EnvironmentalManagementSystems 20

• EnvironmentalPolicy 21

• Ecometrics:MeasuringEnvironmentalPerformance 22

• Ecometrics:NormalizationforGrowth 23

tAblE of contEnts

environmental performanCe • GreenhouseGasandCriteriaAirPollutantEmissions 24

• Energy—ElectricityandFossilFuels 28

• RenewableEnergy 33

Case study: renewable energy 34

• Water 36

Case study: Water recycling 38

• SolidWaste 40

• HazardousWaste 44

• Compliance 45

• ResponsiblePurchasing 46

• Transportation 49

• CommunicationandEducation 50

Case study: green team – earth hour 52

• SustainableDesignandConstruction 54

Case study: the o2-sustainable from the ground up 56

Case study: fifth largest green roof in u.s. 58

• CorporateSocialResponsibility 60

par tner ship s • Partnerships 64

offiCe of s ustain abilit y • MessagefromManager,SustainabilityPrograms 66

• MessagefromChiefAdministrativeOfficer 67

L.A.LIVE—LosAngeles,CA

introduCtion

7

introduction AEGisthelargestcompanyatthecrosssectionofthreeindustries:facilitiesmanagement,liveentertainmentandsportsmanagement.Since2007,allthreeindustrieshavedemonstratedanincreaseinenvironmentalawarenesswithinthesilooftheirindustry.However,tothisday,nooneentityorassociationhastakenaleadinfullyanalyzingandunderstandingtheoverarchingenvironmentalimpactsofallthreeindustries.

WithAEG’sfirstEnvironmentalSustainabilityReport,itisourgoaltochangethistrend.Wewanttobetheleadersinoursector,thesportsandliveentertainmentindustries,byestablishingtheenvironmentalstandards bywhichothersuchorganizationscanmeasurethemselves.Toaccomplishthis,weareattemptingtodetail,measureandmanageallaspectsofourenvironmentalperformance.

AEG’ssustainabilityprogramwasformallyadoptedinJuly2007whenAEGPresidentandCEOTimLeiwekeaskedasimplequestion,“WhatwouldittaketomakeAEG“green”?”AcommitteeofcorporateleadersrepresentingacrosssectionofAEGdivisionswastaskedwith findingtheanswer.Afternumeroussustainabilityinitiativeshave beenlaunched,thisreportmarkstheculminationofathree-year efforttodevelopameasurableandquantifiableassessmentof AEG’senvironmentalperformance.

Thisreporthasbeenoneofourmostimportantprojectstodate,challengingustotakeanhonest,detailed,andcomprehensivelookatouroperationsandtheirenvironmentalimpacts.Datagatheredfrom2007to2009throughouruniqueEcometricsenvironmentalperformancetrackingsystemrevealedanobjective,self-effacing,andrealisticpictureofourenvironmentalperformance.Welearnedwherewe’vedonewell,aswellaswhereweneedtoimprove.

Thesportsandliveentertainmentindustriesaretwoofthelargestintheworld,accountingforhundredsofbillionsofdollarsinrevenueeachyear.Bypublishingourreportandfullydisclosingourenvironmentalperformance–bothgoodandbad–AEGjoinsanelitegroupofbusinessesleadingthewayinenvironmentalandsocialperformancereporting.

Ourreportisanattempttodemonstratethatenvironmentalperformanceinthesportsandentertainmentsectorsistangibleandquantifiable.Byapplyingappropriateverificationandaccountabilitysystems,bothimpactandperformancecanbebenchmarked.

Whileweknowwehavealotofworkahead,webelieveweareheadedintherightdirection.

BlackEyedPeas,STAPLES Center— LosAngeles,CA

LosAngelesKings

8

mEssAGE from thE prEsidEnt And cEoOverthelastfewyears,alothaschangedinpeople’sperceptionoftheenvironmentalandbusinessworlds-twoworldsthathavebeenseparatefortoolong.

Theconceptofenvironmentalsustainability,and,inparticular,climatechange,hasreachedaheightenedlevelofpublicconsciousnessandsohasourconceptofcorporateresponsibility.Evidenceofthepublic’sincreasedawarenesswasrecentlyseenintheawardingoftheNobelPeacePrizetotheIntergovernmentalPanelonClimateChange(IPCC)forworkaddressingclimatechangeaswellastheG8countriesagreeingtocutcarbonemissionsby80percentby2050.

AEGpartnerslikeTarget,TheHomeDepotandToyotahaveintroducedtopsellingeco-friendlyproductsthatarenowmainstream.Andasweputfinaleditsonoursustainabilityreport,theUnitedNationsConferenceonClimateChangeinCopenhagenraisedclimatechangetothehighestlevelsofgovernmentandgainedpoliticalconsensusontheneedforalong-termandglobalresponsetoclimatechange.Allofthisactivitypromptedthe“greening”ofCorporateAmerica.

Asleadersinthesportsandentertainmentworld,AEGhasdecideditisourresponsibilitytosetthestandardforbeinganenvironmentallyresponsiblecompany.Ipledgetoyouthatwewillcontinuefollowingthiscourseofactionandexpandourefforts.

Iampleasedwithmanyofourachievementssofar.Overthepastfewyears,wehave:

• DevelopedanenvironmentalpolicyandprogramcalledAEG1EARTH,withshort-andlong-termenvironmentalgoals

• Installeda346-kWsolarPVrenewableenergysystemattheSTAPLESCenteranda166-kWsystematNokia TheatreL.A.LIVE

• PartneredwiththeCityofMinneapolistodevelopthecountry’s5thlargestvegetatedgreenroofatTargetCenter

• PartneredwiththePortlandTrailBlazersatRoseGardentobethefirstsportsarenatoachieveaLeadershipinEnergyandEnvironmentalDesigns(LEED)GoldCertificationforExistingBuildingOperationandMaintenance

• PartneredwiththeWorldWildlifeFundasaglobalhostfor“EarthHour,”withover30venuesturningouttheirlightsforanhouraspartofthelargestcallforactiononclimatechange

• BeganthedevelopmentofformalEnvironmentalManagementSystemsatselectvenues

• Begantoaccountforalltheenvironmentallypreferableproductswebuyandsell

• Installed496waterlessurinalsatourSouthernCaliforniavenuesincludingallL.A.LIVEvenues

• Assessedourcarbonfootprint,analyzedallresourcesconsumedandwastesgeneratedatour20primary-ownedandmanagedvenues

• RegisteredtheJWMarriottLosAngelesatL.A.LIVE,TheRitz-CarltonandTheRitz-CarltonResidencesatL.A.LIVE foraLEEDcertificationforNewConstruction

TimLeiweke, PresidentandCEO,AEG

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entenvironm

ental perform

anCepartnersh

ipsoffiCe of

sustainability

9

Ourimmediategoalsarerelativelyhumble:Wewanttocontinuetoassessourenvironmentalimpact,benchmarkourprogresstowardimprovement,andrelentlesslyimproveourenvironmentalperformanceintangibleways.

Amongotherthings,thiswillinvolvecreatingformalEnvironmentalManagementSystems(EMSs)atourvenues,measuringourenvironmentalperformance,whichwecall“Ecometrics,”andcandidlydisclosingourenvironmentalimpactinanannualsustainabilityreportbasedontheGlobalReportingInitiative’s(GRI)guidelines(versionG3,publishedin2006).

Werecognizethatprogresswon’tbeeasy.Theeconomicdownturnhasmademanycorporations’primaryfocusonshort-termfinancialsurvivalratherthanlong-termenvironmentalsustainability.ButAEGiscommittedtosuperiorenvironmentalperformanceinboththeshort-termandlong-term.Thiswillnotbeapassingfadforus.

Ourreportinghadanunintendedresultaswell:Webetteridentifiedourregulatorycomplianceissues,keepingusmindfulofmeetingourlegalrequirementswhileaggressivelypursuingsustainability.

Amongourachievements,however,thisreportmaybeourbiggestonethusfar—itscreationisground-breakingforoursector.Fewsports,liveentertainmentorfacilitymanagementcompanies,ifany,haveendeavoredsuchaproject.

AEG’s2010EnvironmentalSustainabilityReportisasnapshotofourenvironmentalperformancetodate.Itdocumentsoureffortstoinspireourindustryandthewiderbusinesscommunitytoembraceamodelwhereeconomicgrowthismergedwithenvironmentalresponsibility.Ibelievethisintegratedmodelwillleadtoourlong-termsuccess.

Inthefollowingpages,youcanreadaboutourprogressaswellasourchallenges.Letmesaythisinternalanalysiswasnoeasytask.Overcomingourowninertiatoenactinternalchangewas,andstillremains,adailychallenge.Butwiththisreport,wearecreatingmomentumbothwithinandoutsideourranksamongallofourstakeholders,aswellasthemillionsofvisitorsthatcometoAEG-sponsoredeventsandvenues.

EngagingthetensofmillionsofpeoplewhocrossintoAEG’ssphereofinfluenceeachyearmaybeourgreatestopportunityforenvironmentalchange—changethatisbeingembracedbyourpartnersandourguests.

So,weask:IsitpossiblethatAEGcouldhelpinfluencethemillionsofpeoplewhoenterourvenuestoleverageenvironmentalimprovement,protectionandchange?Couldthiskindofleveragebesosignificantastomateriallyalteracommunity,acountry,oreventheworld,forthebetter?Thethoughtofthisisdaunting.Butweaimtofindout.

Sincerely,

TimothyJ.Leiweke PresidentandCEO,AEG

introduCtion

9

10

1) FacilitiesManagement

2) LiveEntertainmentProductionandPromotion

3) SponsorshipandMarketing

4)SportsManagementandPromotion

5)Merchandising

6)RealEstateandDevelopment

compAny profilEWho WE ArEAEG,awholly-ownedsubsidiaryoftheAnschutzCompany,eitherdirectlyorthroughaffiliates,ownsormanagesaninternationalnetworkofliveentertainmentandsportscompanies.Sinceitsformationin1994,AEGhasdevelopedcorecapabilitiesinvariousaspectsofliveentertainmentandsportsincluding,butnotlimitedto,facilitymanagement;liveentertainmentproductionandpromotion,sponsorshipandmarketing;sportsmanagementandpromotion;merchandising;andrealestatedevelopment.

AEGLive,theentertainmentdivision,istheworld’ssecondlargestconcertpromoter.EachyearAEGLivepromotes3,500concertsandownsormanagesavarietyofmusicfestivalsworldwide.AEGhasmultipleaffiliatesthatspecializeinmarketingandsponsorshipdevelopmentforAEGandnon-AEGconcerts,events,venuesandsportsteams.

AEGalsoownsinterestsinvariousprofessionalsportsteams,includingtheLosAngelesKingsoftheNationalHockeyLeagueandtheLosAngelesGalaxyandtheHoustonDynamoofMajorLeagueSoccer.Inaddition,AEGSportspromotessportingeventssuchastheAmgenTourofCaliforniabicycleraceandtheINGBaytoBreakersfootraceaswellasascheduleofinternationalsoccerexhibitions.Furthermore,AEGhasaffiliatemerchandisingcompaniesthatcreate,manageanddistributemerchandisegloballyforsportsandentertainmentvenues,teams,bandsandeventssuch asSTAPLESCenter,LinkinParkandthe2010FIFAWorldCupin SouthAfrica.

AlloftheAEGdivisionsaresupportedbyAEGGlobalPartnerships,adivisionresponsibleforworldwidesalesandservicingofsponsorships,namingrightsandotherstrategicpartnerships.

AEGRealEstate&Developmentdesignsseveralsportsandentertainmentdevelopmentprojectsfromsportsandmusic venuestosportsandentertainmentdistricts.Andthroughthe AEGFacilitiesdivision,AEGoperatesorconsultswithmorethan 90oftheindustry’spreeminentvenuesworldwide.

Inaddition,AEGhasdevelopedcharitablefoundationsandpartnershipswithnon-profitorganizationsthatfocusoncorporatephilanthropyandcommunityinvolvement.Overthepasttenyears,AEGhascontributedover$65millionindirectfinancialandin-kindsupportofcharitable,communityandcivicprograms. AmgenTourofCalifornia

AEG corE cApAbilitiEs

ArEnAs, stAdiA And thEAtErs: 7,000 sEAts or MorEIn2007,AEGFacilitiesbecametheformaloperatingentityresponsibleforAEG’sownedormanagedvenuesof7,000seatsormore.AEGFacilitiesguidesthedailyoperationsofAEGvenuesworldwideincludingfacilitiesbuiltbyAEG’sRealEstateandDevelopmentteam,managedandleasedpropertiesandallothervenueservicesagreements.AEGFacilitiesservicesincludebuildingmanagement,bookingandprogramming,marketing,sponsorshipandpremiumseatingsales,ticketsales,suppliermanagement,assetandenergymanagement,eventmanagementandguestservices.In2008,AEGFacilitieslaunchedajointventure,AEGOgdenbasedinSydney,Australia,tomanageandprovidesupportservicestovenuesintheAsiaPacificregion.In2009,AEGFacilitiesannouncedapartnershipwiththeNBAtodevelopandmanagevenuesinChina.Presently,AEGFacilitiesmanagesvenuesonfourcontinents.

thEAtErs And CLubs: 7,000 sEAts or LEssIn2002,AEGLivestartedtoacquireleaseagreementsatnumerousclubsandtheatersranginginsizefrom300to7,000seats.SimilartoAEGFacilities,AEGLiveperformsmanagementservicesforclubsandtheatersaswellasconsultingandbookingservicestotheatersandclubsthatarenotownedbyAEGLive.

OneofthemostvisibleaspectsofAEGLive’sbusinessisthepromotionandmarketingofconcertsandevents.Asapromoter,AEGLivehasminimalinfluenceoveroperationaldecisionsandsubsequentenvironmentalimpactsrelated totheevent.Inthecomingyears,wehopetobetterunderstand,measureandreportourenvironmentalperformanceasitrelatestoourroleaspromoter.

Company

profile

11

corporAtE structurEAEGhastwogoverningbodies,theAnschutzCorporationexecutiveboardandtheAEGexecutivecommittee.Eachmajordivisionisheadedbyachiefofficerorexecutivevicepresidentswithdepartmentsrunbyseniorvicepresidents andvicepresidents.

AEG corE cApAbilitiEs

GroWth of totAl squArE foot undEr mAnAGEmEnt

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

14M

12M

10M

8M

6M

4M

2M

0

*ThenumberofvenuesinAEG’sportfolioselectedforinclusioninAEG’sEcometricsgrewfromsevenin2007to14in2008and20in2009.

12

EnvironmEntAl impAct of thE sports And livE EntErtAinmEnt industryLikeanyotherbusiness,thesportsandliveentertainmentindustrieshaveanimpactonournaturalenvironment.Simplyput,theprocessofcreatingmemorableguestexperiencestakesitstollonournaturalresources—resourceswhichareusedtoproducenondurable(soft)goodsusedorsoldatvenues.Theseincludesuchitemsasfood,cleaningproducts,fuel,officesupplies,packagingandcontainers,paperandpaperproducts,plastics,textiles,andclothing.

Thisactivityrequiresenergyofalltypes,includingfossilfuelssuchascoalfromelectricitygeneration,naturalgas,gasoline,dieselfuel,andpropane.Janitorialstaffandmaintenanceworkersusechemicalstocleanandmaintainbuildingsystems,someofwhichgeneratehazardouswaste.Allofouroperations,especiallythosebringingtogethertensofthousandsofpeopleatevents,generatesolidwaste.

Additionally,thecompany’sconsumptionoftheseresourcesresultsinairpollutants,including“Scope2”greenhousegases(primarilycarbondioxide),nitrogenandsulfuroxides,carbonmonoxideandparticulatematter.

OurreportexaminesnotonlyenvironmentalimpactsthatAEGcanmanagedirectlyon-site,butalsoimpactsthatcanbemanagedindirectlyoffsite.Forexample,electricityusedtopowerAEGvenuesandoperationsgeneratesfossilfuelemissionsatoff-sitepowerplantslocatedmanymilesaway.Infact,morethan 90percentofallemissionsmentionedinthisreportareindirectScope2emissionsreleasedatoff-site powerplants.

trEnds in thE sports, fAcility mAnAGEmEnt, And livE EntErtAinmEnt industriEsAsmentionedearlier,AEGisthelargestcompanyatthecrosssectionofthreeindustries:facilitiesmanagement,liveentertainmentandsportsmanagement.Althoughtheseindustrieshavedemonstratedanincreaseinenvironmentalawarenesswithinthelastfewyears,theentertainmentsectoratlargeisconsideredto“lagbehindmostothersectorsincorporateenvironmentalandsustainabilityreporting,”asreferencedina2009studybytheRobertsEnvironmentalCenter.Thestudyfurtherstatesthattheentertainmentsectorsuffersfrom“agenerallackofbothquantitativeandqualitativeinformationonsustainabilityandenvironmentalpolicy.”AEGhopestochangethisbybeingthefirstliveentertainment,sportsorfacilitymanagementcompanytoproduceanenvironmentalsustainabilityreportandmeasuretheenvironmentalperformanceofallownedandmanagedvenues.Furthermore,AEGiscommittedtoexpandingourmeasuringandreportingtoallofouroperationsoverthenextfewyears.trends in live entertainmentThemusicandentertainmentindustryhaslongbeenconsideredaleaderinsocialandenvironmentalawareness.Individualmusiciansdeservemuchcreditfortakingleadershippositionsinreducingthe

Company

profile

13

environmentalimpactoftheirowntours,aswellasforeducatingfansabouttheimportanceofenvironmentalstewardship.DespitethehighlyeffectiveandvisibleeffortsofartistslikeJackJohnson,AlanisMorrissetteandtheBlackEyedPeas,therehasbeennoconcertedefforttomeasureandestablishanindustrybenchmarkfortheenvironmentalfootprintofconcerts,toursandfestivals.LiveEarthwasthefirstfestivaltoanalyzeitscarbonfootprint,butthereisnostandardwithwhichtocompare.In2011,wewillchangethatwithour reportingtools.

trends in sports managementUniversity-levelsportsmanagementprogramshaveconductedsurveysonbehalfoftheNHL,NFL,NBAandMLBtodeterminewhatprofessionalsportsleaguesandteamsaredoingtoprotecttheenvironment.Theresultsofthesesurveysshowthatmostenvironmentalimprovementisexpectedtocomefromthefacilitiesthemselveswhilenotmuchisbeingdonetomeasureorreportontheactualoperationoftheteams.SomeU.S.basedsportsleagueshavepartneredwithenvironmentalgroups,suchastheNaturalResourcesDefenseCouncil,toeducateleagueteamsonenvironmentalbestbusinesspracticesandencouragethemtoparticipateinpublicawarenessevents,suchastheNBAGreenWeek,toeducatetheirfans.Theseprogramshavebeensuccessfulinraisingpublicawarenessbuthavenotprovidedanyformalmeasureforenvironmentalperformanceofsportsteams.

trends in facility managementIngeneral,thefacilitymanagementindustryatlargecontinuestobereactiveratherthanproactivewhenitcomestosustainabilityissues.Theindustry’senvironmentalsuccessesareprimarilyinresponsetorequestsfromcities,sportsteamsandartiststoimplementenvironmentalprogramssuchaspublicrecyclingorservingoforganicfood.Withthatsaid,therearethreenewsignificantenvironmentaltrendsthathavebegun,tosomeextent,tochangethefacilitymanagementindustry:

1) GreenProcurement–Thereisagrowingtrendtowardsenvironmentallypreferableproductsbeingsoldorusedinfacilities,primarilyduetocustomerdemand.

2) Energy,WaterandWasteManagement–Withtherisingcostsofelectricity,waterandwastemanagement,efficiencyandconservationmeasuresarebeingundertakentobothimprovethebottomlineandreduceenvironmentalimpact.

3) EnvironmentalDesignandConstruction–Integrationofsustainabledesignconceptsintofacilitieshasbeengrowingforseveralyears.TherisingpopularityoftheU.S.GreenBuildingCouncil’sLeadershipinEnergyandEnvironmentalDesignLEEDratingsystemhashelpedpushsustainabledesignconceptsintothefacilitiesindustry.AhandfulofarenashavealreadyreceivedLEEDcertification.

AEGplanstotakeenvironmentalperformanceinitsfacilitiestoahigherlevel.

14

rEportinG mEthodoloGymAtEriAlityAEG’ssustainabilityreporthasbeenguidedbytheGlobalReportingInitiative’s(GRI)frameworkforsustainabilityreporting.TheGRIisanorganizationthatmaintainsgloballyacceptedSustainabilityReportGuidelinesthatfostertransparencyandaccountability.AccordingtotheGRI,acomprehensivereportshould“covertopicsandindicatorsthatreflecttheorganization’ssignificanteconomic,environmental,andsocialimpactsorthatwouldsubstantivelyinfluencetheassessmentsanddecisionsofstakeholders.”Wereviewedtheindicatorsandfoundthat,asamedium-sizedprivatecompany,manyoftheGRIindicatorswerenotrelevanttoouroperations.Forexample,becauseAEGisprivatelyheld,wearenotabletoreportoneconomicindicatorsoutlinedbyGRI.Otherindicatorswerearguablymaterial,butwerebeyondourabilitytomeasureatthepresenttime.Asaresult,wedecidedtofollowtheGRIprinciplesandspecificindicatorstothebestofourabilityandfocusourfirstreportonenvironmentalsustainability.

AEGstakeholdersinclude:cityandmunicipalofficials;liveperformers,sportsfranchisesandeventorganizers;oursuppliers,contractorsandvendors;venueandeventguests;allAEGemployeesandtheexecutivemanagementteam.Thelikelyend-usersofthisreportincludesustainabilityprofessionals,stateandfederalregulatoryagencies,andarenaandliveeventindustryprofessionals.

WeutilizedthefundamentalGRIreportingprinciplesof:materiality,stakeholderinclusiveness,sustainabilitycontext,completeness,balance,comparability,accuracy,timelinessandreliability.However,wefocusedthereportonGRI’senvironmentalperformanceindicators(presentedintheEnvironmentalPerformancesectionofthisreport).TheEnvironmentalPerformancesectionaimstopresentbaselinedataforoursignificantenvironmentalaspectsandareasofimpact,interpretthatdata,thengivespecificexamplesofprojects,programs,andinitiativesthataffectthatdata-positivelyornegatively.

AEGhasincludedotherGRIindicators,suchascompanyvisionandstrategy,organizationalprofile,reportscope,reportprofile,structureandgovernance,stakeholderengagement,policiesandmanagementsystems.Wealsoaddressedour

vErificAtionForAEG’sfirstEnvironmentalSustainabilityReport,wechosetoauditboththemethodologyandaccuracyofourenvironmentalperformancemetrics.OurdatacollectionmethodologywasauditedbyEcologixbyXanterra,anenvironmentalconsultingdivisionofXanterraParks&Resorts,Inc.(Xanterra).

Ourdatacollectionaccuracywasauditedbyanindependentutilityauditingcompany,FCIManagementConsultants(FCI),acertifiedminoritybusinessenterprise.

audit findings on ecometrics methodology TheEcometricsperformance-trackingsystemwasreviewedforall20venuesparticipatinginAEG’s2010EnvironmentalSustainabilityReport.BasedonXanterra’sreviewandtesting,Xanterrafoundthemethodologyforcalculatingcarbondioxide

CO2,NitrogenDioxidesNOxandSulfurDioxideSO2emissionstobeaccurate.*Xanterraalsofoundthatthetrackingsystemcorrectlycalculatesmonthlyandannualresourceconsumptiontotalsbothatthevenueandcorporatelevel.

audit findings on accuracy of dataAEGprovidedtwomonthsofrandomlysampledbillingdatafrom2008and2009alongwitheachvenue’sEcometricsto FCIConsultants.Seventy-threepercentofthevenueswereabletoprovidedocumentationthattheirusagedatawasrecordedaccurately.However,twenty-sevenpercentofthevenueswereunabletoprovidesufficientdocumentationtoverifydata,eithertheydidnothaveaccesstohistoricalmonthlybillsortheyhadnodocumentationtoidentifyhowannualusagewasbrokendownintomonthlyincrements.Toimprovedataverificationmovingforward,AEGisdefiningparametersforback-updocumentationtoverifyvenue’sdatarecordings.

reportingm

ethodology

15

initialendeavorsintosocialperformanceintheSocialResponsibilitysection.However,wehavenotcomprehensivelyaddressedGRISocialPerformanceIndicators.Weacknowledgetheirimportancewithinourcompany’soperationsandhopetofullyreportonthiscomponentinfutureyears.

Finally,weacknowledgethefactthatwearebeginningour2020visiontowardsenvironmentalsustainabilityat“groundlevel.”Webelievewehaveonlyscratchedthesurfaceofwhatwearecapableofaccomplishing.Still,weareproudofourenvironmentalsuccessestodate.Since2010isthefirstyearwecommunicatedourAEG1EARTHenvironmentalprogramand2020visiontoouremployees,weanticipatesignificantimprovementintheyearstocome.

scopE of rEportForthisfirstsustainabilityreport,wehavefocusedontheareasofourbusinessthathavethegreatestenvironmentalimpact:thevenuesinwhichAEGhasdecision-makingabilitytoaffecttangiblechangeinoperations.Whenwebegantowritethisreport,therewere20venuesthatAEGFacilitiesandAEGLivedivisionsmanagedorownedthatmettheserequirements.Inmostcases,whenAEGownsormanagesanarena,theaterorclub,weareresponsibleforsponsorships,bookingevents,marketing,operations,maintenance,guestservices,security,boxoffice,product andservicecontracts.

AEGestimatesthatasmuchas80percentofthecompany’stotalenvironmentalimpactiscapturedwithintheoperationsassociatedwiththe20venuesanalyzedinthisreport.AllNorthAmericanandEuropeanvenuesthat AEGFacilitiesownsormanagesareincludedinthisreport,includingoneAEGOgdenvenue.AllAEGOgdenvenues willbeincludedinAEG’snextreport.Inaddition,wehaveincludedfourAEGLiveclubsandtheaters.Allother AEGLivetheatersandclubswillbeincludedinthenextreport.

FormoreinformationaboutAEG,visitwww.aegworldwide.com.Additionalreportscanberequestedbycalling AEG’sOfficeofSustainabilityat(213)763-5451.

*Emissionfactorsweretakenfromtwosources: 1)USGridElectricityandStationaryCombustion—a2009LeonardoAcademy,AWhitePaperforMultiplePollutantEmissionReductionReportingSystem. 2)InternationalGridElectricity—GHGProtocolInitiativewebsite(www.ghgprotocol.org),EmissionFactorsforElectricityConsumptionandStationaryCombustion.

16

lonG tErm EnvironmEntAl GoAls 2020 EnvironmEntAl visionSettingenvironmentalgoalsisnotaneasyprocess.Settingrealistic,material,far-reaching,yetachievablegoalsisevenmoredifficult.

In2007and2008,AEG’smanagerofsustainabilityspentseveralmonthswithaninternalcross-functionalteamofAEGvicepresidents,directors,andmanagersofvaryingdivisionstofleshoutenvironmentalpriorities,setrealisticsustainabilitygoals,andassignspecifictargetsforreachingthosegoals.Thesespecifictargetscontinuetoberefinedbyeachbusinessunitandfacility.Theyaretime-boundandassignedpersonalresponsibilityateachlocation.Overtime,ourAEGEcometricstrackingsystemdatawillverifywhetherspecificmeasuresimplementedareimprovingenvironmentalperformance.

Thisgoalandtarget-settingprocessisthefoundationuponwhichAEG’s2020environmentalvisionisbased.Thatprocess,coupledwiththedevelopmentofenvironmentalmanagementsystemsatAEGFacilities,iswhatwillhelp AEGmeetthesegoalsintheupcomingyears.Whilethesegoalsareintentionallyfar-reaching,theyarealsoachievablewiththefocusandcommitmentourcompanyhaspledged.Theywillsteerourdecision-makingatalllevels,leading AEGinamoresustainabledirectionoverthenextdecade.

AEG’s 1EArth 2020 EnvironmEntAl vision GoAls*

EnErgy And CLiMAtE20percentreductioningreenhousegasemissions(CO2intensity) 15percentofallelectricityusagederivedfromrenewableenergysources

rECyCLing And WAstE divErsion25percentofallsolidwastedivertedfromlandfill 75percentsolidwastediversionrateat10designatedvenuesandevents Zerohazardouswastegenerated

WAtEr ConsErvAtion20percentreductioninwateruseintensity

sustAinAbLE PurChAsing50percentoftotaldollarsspentondesignated“highimpactproductsandservices”tobeenvironmentallypreferable

EduCAtion100percentofAEGfacilitiesandvenuesincludeenvironmentalmessagingandinformationavailableto staff,partnersandguests

RentschlerField—Hartford,CT

*Allgoalsuseabaselineyearof2007

environmental

goals

17

thE roAd mAp to AchiEvinG our EnvironmEntAl vision

ArEA of iMPACt AEg 2020 vision KEy ProjECts PLAnnEd to hELP us gEt thErE

Energyand Climate

20percentreduction ingreenhousegasemissions(CO2intensity)

15percentofallelectricityusagederivedfromrenewableenergysources

•InvestinrenewableenergysystemsandRenewableEnergyCertificates

•EducateemployeesonenergyefficiencythroughEnvironmentalManagementSystems(EMS)

•Implementenergyefficiencymeasuressuchasretro-commissioning

•Utilizesustainabledesignfornewconstructionprojects

•Installbestavailabletechnologyincapitalequipmentreplacement and maintenance

Recycling andWaste

25percentofallsolidwastedivertedfromthelandfill

75percentsolidwaste diversionrateat10designatedvenuesandevents

Zerohazardous wastegenerated

•Implementadditionalrecyclingprograms

•Implementadditionaldurablegoodsdonationprograms

•Implementmorecompostingprograms

•Implementnon-hazardousalternativestohazardouswaste

•Conductperiodicwasteaudits

Water 20percentreductionin wateruseintensity

•EducateemployeesonwaterefficiencythroughEMS

•Installbestavailabletechnologyforwaterfixturesandequipment,suchaswaterlessurinals

Purchasing 50percentoftotaldollarsspentondesignated“highimpactproductsandservices”tobeenvironmentallypreferable

•InstituteenvironmentalstandardsforHVAC,lighting,paperproducts andjanitorialsupplies

•Encourageconcessionairestousesustainablecuisineandbiodegradabledisposables.Includesustainabilitycriteriainsuppliercontracts regardingproducttake-back,minimized-packaging,carbonfootprintsandlifecycleassessments

Education 100percentofAEGfacilitiesandvenuesincludeenvironmentalmessagingandinformationavailable tostaff,partnersandguests

•Introducesustainabilityasabusinessfocustoemployees,contractorsandvendorsthroughourEnvironmentalManagementSystem(EMS)

•InstalleducationalsignageandinformationatAEGemployeeand publicevents,venues,officesandretail

•Encouragealternativetransportationthroughmessaging

*Allgoalsuseabaselineyearof2007

18

EnvironmEntAl hiGhliGhtsOvertheyears,wehaveimplementednumerousprojectshelpingtosaveenergy,water,andreducewaste.However,2009wasthefirstyearweformallycommittedtoacomprehensivecompanywideenvironmentalprogram.Herearesomerecentaccomplishments:

• InstalledsolarpanelsonSTAPLESCenterandNokiaTheatre L.A.LIVEtoforma512-kWsolararraythatcangenerateup to5percentofthefacilities’energyusageperyear

• InstalledtheU.S.’5thlargestvegetatedroofat TargetCenter,reducingstormwaterrunoff,improvingbuildingenvelopeanddecreasingheatislandeffect

• AchievedthefirstLEEDGoldCertificationinExistingBuilding,OperationsandMaintenanceforanarenaatRoseGardeninPortland,Oregon.

• RetrofittedallSouthernCaliforniavenueswith496waterlessurinals,savingalmosttwentymilliongallons ofwaterperyear

• Composted100percentofalluncontaminatedfoodwaste,recycled100percentofallglass,recycled75percentofallcardboardandturned100percentofwastecookingoilintobiodieselatTheO2inLondon,England.

• LaunchedanEnvironmentallyPreferablePurchasingprograminadditiontoincludingenvironmentalattributesinAEGpurchasingpolicies

• Usednearly85percentreclaimedwateratTheHomeDepotCenterand50percentreclaimedwateratCitizensBusinessBankArena

• Purchasedacombined13,652,040kWhofrenewableenergyin2009throughRenewableEnergyCertificates,theCO2equivalenttoplantingoveroneacreofforest

RoseGarden—Portland,OR

XLCenter—Hartford,CT

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entenvironm

ental perform

anCepartnersh

ipsoffiCe of

sustainability

19

• ParticipatedintheWorldWildlifeFund’sEarthHour,aglobalcalltoactiononclimatechange,at30AEG-affiliatedvenuesin19citiesandsixcountries

• CommissionedacomprehensiveEnergyandCostReductionStudyatfiveofourarenas

• Trackedallnaturalresourceusageandwastegeneration,assessedcarbonfootprint,analyzedfossilfuelconsumptionandmeasuredwastediversionatall AEG-ownedproperties

• Publishedourfirstsustainabilityreportpubliclydisclosingenvironmentalperformanceoffacilities

• Setandpubliclydisclosedshort-andlong-rangeenvironmentalsustainabilitygoals

• Developedourfirstformalenvironmentalpolicytosteercompanydecisionmaking

• Developedsustainabilitytrainingfornewhireorientationandmanagementstaff

• CommittedtoimplementingEnvironmentalManagementSystemsataminimumof15facilitiesoverthenext fiveyears

• CommittedtoindependentauditsofourEcometricsenvironmentalperformancedataandEnvironmentalManagementSystems,ensuringourprogramsareeffectivelyimplementedandinformationforreporting isaccurate

VerizonTheatreatGrandPrairie— GrandPrairie,TX

OgdenTheatre—Denver,CO

TheO2—London,England

SanDiegoSportsArena—SanDiego,CA

environmental

goals

19

20

EnvironmEntAl policiEs And mAnAGEmEntWhAt is AEG 1EArth?AEG1EARTHisAEG’senvironmentalcommitment.Byacknowledgingthatweallshare1EARTH,wecanunderstand howouroperationsaffecttheplanetandhowresponsibledecisionscanimprovetheenvironment,ourcommunitiesandourbusiness.

EnvironmEntAl mAnAGEmEnt systEms At AEGWeareproudtoannouncethatSTAPLESCenterwillbethefirstAEGarenaintheUnitedStatestodevelopanEnvironmentalManagementSystem(EMS)andpursuethird-partyISO14001Certification.TheCertificationAuditisscheduledforSummer2010.Asfarasweknow,STAPLESCentermaybethefirstsportsandentertainmentarenaintheUnitedStatestoachievethisdistinction.Internationally,AEGOgdeninAustraliahasreceivedISO14001Certificationattwoconventioncenters,BrisbaneEntertainmentCentreandtheKualaLumpurCentre,whichwerenotincludedinthescopeofthereportbutwillbeincludedin2011.

AnEMSisaproveninternationalframeworkforanorganizationtoachieveself-definedenvironmentalgoals.ThroughtheEMSprocess,proceduresandtraininginstructionsareestablishedforallenvironmentalaspectsofouroperations.Environmentalobjectivesandtargetsaresetbasedonthespecificneedsofthefacilityandallstaffandcontractorsaretrainedontheirrolesandresponsibilities.ByhavinganeffectiveEMSinplaceatourfacilities,weare,bydesign,managingtheenvironmentalliabilitiesandaspectsofeachvenueinamannerthatminimizesriskandmaximizesperformance.Inessence,ourEMSbecomesanengineforsustainability–guidingprojects,training,inspections,andmanagementreview.

Overthenextfiveyears,weintendtoimplementEMSsatasmanyas15ofourarenas,stadiaandclubs.WeareadditionallycommittingtohaveeachEMScertifiedbyanaccreditedISO14001registrar.AnISO14001CertifiedEnvironmentalManagementSystemensuresthatourenvironmentalprograms,procedures,inspections,trainingandcompliancemeasuresareoperatingasrequired.Wealsocommittoannualauditsofourenvironmentalprogramsandpoliciesastheyrelatetoour2020vision.

thE AEG 1EArth mission Toconductourbusinesswiththeunderstandingthatweareallpartof1EARTH.Webalanceeconomicperformancewithenvironmentalhealthandcommunitywell-being.Weconservevitalresourcessuchasenergyandwater.Wesustainacultureofenvironmentalstewardship–reducingandrecyclingwaste,fightingglobalwarmingandeducatingourguestsandemployees.

poliCies &

man

agement

21

800 West Olympic Boulevard • Los Angeles, CA 90015www.aegworldwide.com

Environmental Policy

Giving Our World Reason to Cheer!

As a leader in the live sports and entertainment industry, AEG recognizes its

responsibility to improve the economic, social and environmental well-being of the

various communities in which we do business.

AEG aims to set the standard for live entertainment, providing the best possible guest

experience while embracing environmental sustainability. AEG 1EARTH is AEG’s environmental commitment to conduct our business with the understanding that we are

all part of 1EARTH. We balance economic performance with environmental health and

community well-being. We conserve vital resources such as energy and water and sustain a culture of environmental stewardship - reducing and recycling waste, fighting

global warming and educating our guests and employees.

Each year, millions of people visit AEG venues, attend AEG Live promoted concerts, support AEG Sports' franchises and participate in AEG produced events. By

demonstrating we can provide world-class entertainment that is also environmentally

responsible, we strive to educate and inspire our guests to join us and do their part as we move down the road toward sustainability.

AEG 1EARTH ensures we commit to the following principles:

• Continual improvement and review of environmental performance in business

operations

• Compliance with all environmental regulations and policies • Integration of best management practices into our operations using pollution

prevention and environmental sustainability strategies as core objectives

• Responsiveness to the environmental concerns and priorities of the company’s stakeholders, clients, guests and employees

Timothy J. Leiweke

President and CEO, AEG

22

EcomEtrics: mEAsurinG EnvironmEntAl pErformAncEOurEcometricstrackingsystemcollectsresourceuseandwastegenerationdatafromallAEG-ownedfacilities.Implementedinsummer2009,Ecometricsgathersandcollatesdataonmonthlyresourcesconsumed,wastegeneratedandassociatedemissionsfromouroperations.Inshort,Ecometricsisabarometerforourenvironmentalperformance.Forexample,withaccuratebaselinedataonelectricityandfossilfuelconsumptionacrossourportfolio,wecanmeasureandreportourgreenhousegasemissions.Wecanalsomeasurewhetherconsumptionisfallingbasedonefficiencymeasureswehaveimplemented.Becauseit’simpossibletomanagewhatyoudon’tmeasure,ensuringtheaccuracyofourEcometricsisextremelyimportant. Assuch,wehavecommittedtoconducting:(1)periodicutilityandwasteauditstoensuretheaccuracyofinvoicesfromvendors,and(2)aperiodicauditofourmethodologybehindEcometrics.

AEg ECoMEtriCs dAtA CoLLECtEd MonthLy

emissions from operations•Carbon(CO2)

•Nitrousoxides(NOx)

•Sulfurdioxide(SO2)

resourCes Consumed•Electricity

•Onsiterenewableenergy

•Water

•Reclaimedwater

•Propane

•Naturalgas

•Diesel

•Gasoline

•Fueloil

Wastes generated•Solidwastetolandfill

•Compostedwaste

•Recycledsolidwaste

•Recycledcookingoil

•Totaldiversionrate

•Hazardousand Universalwaste

other indiCators•Percentspenton greencleaning

•Percentspenton sustainablepaperproducts

•Percentspenton bio-degradablefood serviceitems

•Percentspentonlocal and/ororganicfood

•Percentspentonlowflowwaterfixtures

•Environmental non-compliances

•Renewable EnergyCredits(REC)

TargetCenter—Minneapolis,MN

poliCies &

man

agement

23SprintCenter—KansasCity,MO

AEGcollected2007,2008and2009dataoftotalamountsofresourcesconsumed,wastegeneratedandassociatedemissionsinitsoperations.Thisincludesenergyandfossilfuels,suchascoalfromelectricityconsumptionatoff-sitepowerplants,aswellasnaturalgas,propane,fueloil,gasolineanddieselfuelusedonsite.Italsoincludestheamountofsolidwastegenerated,compostedandrecycled,alongwithwastediversionrates,andUniversalHazardousWasteandHazardousWastecoveredbytheResourceConservationandRecoveryAct(RCRA).

Withtherawdatainhand,wecalculatedtheresultinggreenhousegasemissions(carbondioxide,orCO2)andselectEPACleanAirAct-designatedcriteriaairpollutantsincluding,sulfurdioxide(SO2)andnitrogendioxide(NO2).

EcomEtrics: normAlizAtion for GroWthTheindicatorsanddatacollectedthroughEcometricsrepresentwhatwehavedefinedasthecompany’senvironmentalfootprint.Trackingusageoftheseresourcesallowsustoanalyzetrends,remaincompliant,reduceliabilitiesandmovefurthertowardsoursustainabilitygoals.Wehavegrownrapidlyinrecentyearsandweknowourappetiteforresourceswillexpandaswegrow.SinceAEGisexpectedtocontinuetogrow,wenormalizeourEcometricstobetterindicate year-to-yearefficiencyandoverallenvironmentalperformance.

Ourprimarynormalizationfactorisbasedonnumberofattendees.Rawconsumptiondataisimportantfordisclosingourtotalenvironmentalfootprintasacompany,butournormalizedEcometricsbestreflectsoverallenvironmentalimpact,accountingforgrowthandratesofconsumptionperunitofproductandservice.AEGrecognizesthisperformancemetricisnotaperfectindicator,sincemanyfactorsdeterminethelevelofresourceconsumption.Nevertheless,ourenvironmentalimpactperattendeeisthemostsalientandaccurategaugeofoursuccesstowardsreachingourenvironmentalobjectivesandtargets.

24

EnvironmEntAl pErformAncEGrEEnhousE GAs And critEriA Air pollutAnt Emissions

2009 cArbon footprint: 73,544 us tons

AEGbelieveshuman-inducedclimatechangeanditsimpactsonEarthandthepublic’shealthandwell-beingareamongthemostseriousenvironmentalissuesfacingoursocietytoday.Wearealsoawarethatactivitiesassociatedwiththesportsandentertainmentindustrycanreleasesignificantamountsofgreenhousegas(GHG)emissions.AccordingtoanarticleinNational Geographic’s Green Guide,asinglestadiumconcertcanreleasefrom500to1,000tonsofcarbondioxide(CO2),whichis25to50timesmorethantheaverageAmerican producesinayear.

TomeasureAEG’sGHGemissions,wehaveutilizedtheWorldResourcesInstitute(WRI)andtheWorldBusinessCouncilforSustainableDevelopmentGreenhouseGasProtocol(GHGProtocol),aninternationallyagreeduponreportingtoolstandard.TheGHGProtocolidentifiesthreepotential“scopes”foracorporateGHGinventory.Scope1encompassesacompany’sdirectGHGemissions,whetherfromon-siteenergyproductionorotherindustrialactivities.Scope2accountsforenergythatispurchasedoffsite,primarilyelectricity,butalsoenergylikesteam.Scope3ismuchbroaderandcanincludeanythingfromemployeetravel,to“upstream”emissionsembeddedinproductspurchasedorprocessedbythecompany,to“downstream”emissionsassociatedwithtransportinganddisposingofproductssoldbythecompany.Atourfacilities,themajorityofouremissionsfallunderScope2,primarilyaresultofourconsumptionofgrid-tiedelectricityfromoff-sitecoalandnaturalgas-firedpowerplants.ButwealsogeneratesomeScope1emissionsthroughthedirectburningoffossilfuels,suchasnaturalgasinboilersandgeneratorsandgasolineanddieselfuelinvehicles.WehavedecidednottoreportonourScope3indirectemissions,whichincludesemissionsfromemployeeairtravelandemissionsfromtheproductsandserviceswepurchasebecausewehavelimitedinformationandweestimatethemtobeanextremelysmallportionofAEG’stotalGHGemissions.1TheWRI/WBCSDGHGProtocolconsidersthequantificationofScope3emissionsasoptionalwhenpreparinganoverallcorporateGHGinventory,asdosimilarprotocolssuchastheU.S.EnvironmentalProtectionAgency’sClimateLeadersprogram.Scope3includesGHGemissionssuchasmethane(fromlandfillgases),nitrousoxide,ozone,chlorofluorocarbons(refrigerants),sulfurhexafluoride(usedintheelectronicsindustry),hydrofluorocarbons(propellants)andperfluorocarbons(widerangeofindustrialandmedicalapplications).

NokiaTheatreTimesSquare—NewYork,NY

EricssonGlobeArena— Stockholm,Sweden

climAtE chAnGE primErGlobalclimatechangedoesoccurnaturally;theIceAgeisanexample.TheEarth’snaturalclimatehasalwaysbeen,andstillis,constantlychanging.However,whatclimatechangescientistsareseeingtodaydiffersfrompreviousclimatechangeinitsrate,itsmagnitudeanditscause.

ThetemperatureonEarthisregulatedbyasystemknownasthe“greenhouseeffect,”wheregreenhousegases–watervapor,carbondioxide,methane,andnitrousoxide–traptheheatofthesun,preventingradiationfromdissipatingintospace.Withouttheeffectofthesenaturallyoccurringgases,theaveragetemperatureonEarthwouldbe0°F,insteadofthecurrentaverageof59°F.

Theconcentrationoftheseprotectivegreenhousegasesisnolongerinbalance.Overthepast200years,emissionsduetohumanactivitieshaveaccumulatedintheatmosphere.Asaresult,sincetheIndustrialRevolution,concentrationsofcarbondioxidehaveincreasedby30percent,methaneby145percentandnitrousoxideby15percent.

TheInternationalPanelforClimateChange(IPCC)issueditsfourthAssessmentReportonClimateChangein2007.Thisreportwaswrittenbymorethan500scientistsfromaroundtheworldandreviewedbymorethan2,000expertsanddelegatesfrom130countries.ThechairmanoftheIPCC, Dr.RajendraK.Pachauri,wasawardedthe2007NobelPeacePrizeforhistirelesseffortsoneducatingthepubliconclimatechange.

AfewoftheprojectedimpactspresentedintheIPCCreportinclude:

• By2020,significantlossofbiodiversityisprojectedtooccurinsomeecologicallyrichsites,includingtheGreatBarrierReefandQueenslandWetTropics.

• Citiesthatcurrentlyexperienceheatwavesareexpectedtobefurtherchallengedbyanincreasednumber,intensityanddurationofheatwavesduringthecourseofthecentury,withpotentialforadversehealthimpacts.

• Towardstheendofthe21stcentury,projectedsealevelrisewillaffectlow-lyingcoastalareaswithlargepopulations.Thecostofadaptationintheseareaswouldamounttoatleast5to10percentofGrossDomesticProduct(GDP).

• By2080,mountainousareasinEuropewillexperienceupto60percentreducedsnowcoverresultinginglacialretreat,reductioninwintertourismandextensivespeciesloss.

CompleteIPCCfindingscanbefoundat:www.ipcc.ch.

environmental

performanCe

25

26 VerizonTheatreatGrandPrairie—GrandPrairie,TX

ECoMEtriCs: totAL grEEnhousE gAs EMissions ThenumberofvenuesinAEG’sportfolioselectedforinclusioninAEG’sEcometricsgrewfromsevenin2007to14in2008and20in2009resultinginacorrespondingincreaseingreenhousegasemissions.Overall,GHGemissionsattributedtoAEGincreasedthree-foldbetween2007and2009,from22,421to73,544tonsofCO2equivalent.Portfoliogrowth,measuredasthenumberofattendees,alsoincreasedthree-fold.Onaperattendeebasis,emissionshavedecreasedfrom2008to2009by10.5to8.2poundsofCO2perattendee.ItisdifficulttoreporttrendsfromonlythreeyearsofdatabutweanticipateGHGemissionsperattendeewilltrenddownwardsaswefocusonenergyefficiency, on-siterenewableenergyandRenewableEnergyCredit(REC)purchases.

Sources:GreenhousegasemissionsconversiondataandEPAcriteriaairpollutantemissionsdatawerecalculatedusingtwoprimarysources:(1)U.S.datawastakenfrom:EmissionsFactorsandEnergyPricesforLeonardoAcademy’sCleanerandGreener®Program,2009;AWhitePaperbyLeonardoAcademyInc.and(2)EuropeanandAustralianDatawastakenfromtheGreenhouseGasProtocolInitiative2009worksheets.WhenAEGcalculatesitsemissions,weincludeallpollutionproduceddirectlyfromfossilfuelsconsumedonsitebyour20reportingvenuesaswellasemissionsfromoff-siteregionalutilityproviders(coalandgas-firedpowerplants).

cArbon EquivAlEnt co2(UStons)

2007 2008 2009

22,421

60,88273,544

2007 2008 2009

GhG Emissions pEr AttEndEE

(lbs.ofCO2)

12

10

8

6

4

2

0

8.110.5

8.2

2007 2008 2009

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

ECoMEtriCs: totAL AnnuAL CritEriA Air PoLLutAnt EMissions Sulfurdioxide(SO2)andnitrogenoxide(NOx)emissions(twoselectcriteriaairpollutantemissions)areregulatedbytheU.S.EPAbecausetheycancauseacidrainandotherenvironmentalproblems,suchassmogandacidificationofcoastalwaters.AEG’sannualemissions oftheseairpollutantsarewellbelowEPA-regulatedthresholdsandvirtuallyalloftheseemissionsarefromoff-sitepowerplants.SO2andNOxemissionsareverylowwhennormalizedbyattendance(lessthan1/100thofapoundperattendee).

our AEG 1EArth 2020 vision GoAlsOurgoalistoachievea20percentreductioninprimaryCO2emissionintensityforthecompanyasawholeby2020.ThebestwayforAEGtoreduceGHGemissionsistodecreaseourelectricityandnaturalgas-consumptionthroughenergy-efficiencymeasuresandtoincreasetheuseofrenewableenergyatourvenues.

so2 And nox pEr AttEndEE

so2 nox

0.025

0.020

0.015

0.010

0.005

0.000

0.012

0.010

0.012

0.010

0.009

0.007

2007 2008 2009

TheStockholmGlobeArenas—Stockholm,Sweden

ClubNokia—LosAngeles,CA

environmental

performanCe

27

28

EnErGyElEctricity And fossil fuEls

2009 ElEctricity footprint: 153,359,858 kWh

2009 totAl EnErGy footprint: 776,701 MMBtu

Itisanticipatedthatglobalenergydemandcoulddoubleortripleby2050aspopulationrisesanddevelopingcountriesexpandtheireconomies.Beyondtheobviousenvironmentalbenefits,usingenergyefficientlyhastremendous societalbenefits,suchasreducingairpollution,promotingenergyindependenceandprotectingnationalsecurity. Asaglobalcitizen,AEGbelievesitmustdoitsparttoreduceenergyconsumptionanddemonstratethevalueof energy-efficientoperations.

Intypicalcommercial,residentialorindustrialbuildings,howandwhenspacesareusedisclearlydefinedbasedonoccupancy.However,inAEGfacilitiesandvenues,buildingoperatorsmustconformoperationstothespecificneedsofitstenants—eventproducers,teamcoachesandperformers.AEGvenueshaveextremevariabilityinfrequencyofuse,capacity,andthus,energyneeds.Ourbusinessmodelisbuiltonmeetingtheexpectationsofourtenants,whichmakesusfairlyuniqueamongfacilityoperatorsandalsopresentsenergy-efficiencychallenges.

Inthepast,wehavenotbeenabletoaccuratelymeasureandverifysavings.NowthatwehaveimplementedEcometrics,astandardizedmethodformeasuringandreportingperformancedata,weareabletoproactivelyengageourclientsininformeddiscussionsaboutsuchmeasuresasadjustingthetimesoftheirpracticeschedulesortheirrehearsaltimestouselessenergyduringpeakenergydemand.

L.A.LIVE—LosAngeles,CA

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

AEg ECoMEtriCs: totAL ELECtriCity ConsuMEdIn2009,totalelectricityconsumedbythecompanywas153,359,858kWh,ofthis,822,000kWhwasproducedbyon-sitesolarphotovoltaics.Toputourtotalelectricalconsumptioninperspective,theequivalentamountofelectricitywouldpowerapproximately15,000U.S.homesforayear.Totalcompanywideelectricityconsumptionincreasedthree-foldbetween2007and2009,directlyproportionaltogrowthinattendance.Electricityuseperattendeewasessentiallyflatbetween2007and2009.

AEg ECoMEtriCs: totAL EnErgy ConsuMEdTotalenergyconsumptionhasincreasedfour-foldalongwiththegrowthintheportfolioofAEGmanagedvenuesfromseventotwentyvenuesbetween2007and2009.Facilitiesvarydrasticallybetweenlocationssothebestmetricwehavetogaugeourincreaseinenergyconsumptionisgrowthinattendance.Attendancegrew300percentfrom2007to2009.Totalenergyuseperattendeehasincreasedinthepastthreeyearsfrom32.6to43.2Mbtus.Overthelong-term,ourenergyuseperattendeeshoulddeclineaswelookfornewwaystoconserveenergyandincreaseattendance.

electricity and fossil fuels

total energy Consumed

2007 2008 2009 units

Electricity 44,750,082 90,545,719 153,359,858 kWh

Propane 5,147 9,648 18,061 gallons

NaturalGas 256,640 1,769,053 2,491,523 therms

Gasoline 3,400 8,695 9,549 gallons

Diesel 4,237 8,867 10,483 gallons

TotalBtu 179,830 489,036 776,701 MMBtu

EnErGy usE pEr AttEndEE

(MBtu)

2007 2008 2009

50

40

30

20

10

0

32.642.0 43.2

ElEctricity usE pEr AttEndEE

(kWh)

2007 2008 2009

10

8

6

4

2

0

8.1 7.8 8.5

environmental

performanCe

29

30

EnErgy EffiCiEnCy suCCEss storiEs

Overthepastthreeyears,AEGhasimplementednumerousenergy-efficiencyandconservationinitiatives.Wesharesomeexampleshere.Still,AEGhasalongwaytogoinmaximizingitsuseofenergy-efficiencymeasures.

energy-efficient lighting and fixture upgrades• TargetCenterretrofitted680fixturesin2009withmoreefficienttechnologies

• SanDiegoSportsArenacompletedtwomajorlightingretrofitsthroughoutthevenue

• L.A.LIVEandTheO2utilizestate-of-the-artLEDlightinginexternalfaçadelighting

variable speed drives (vsd) on hvaC equipment

• STAPLESCenterusessuper-efficientVSDsonallairhandlersand one chiller

• TheO2ArenahasVSDsonallfansandpumpsin thebuilding

• RoseGardenhasVSDsonallairhandlers

installation of motion sensors in underutilized areas

• TheHomeDepotCenterhastiedHVACandlightingtogetheronthesamemotionsensorstoreduceenergyusewhenareasofthevenueareunoccupied

• CitizensBusinessBankArenawasbuiltwithmotionsensorsforHVACandlightingthroughoutthebuilding

• ClubNokiafeaturesmotionsensorsinrestrooms

other energy-efficiency measures

• TheEricssonGlobeinstallednewglasspartitionsinentranceareastoreduceheatescape

• XLCenterconverted80airfiltersto3Mpleatedfiltersthatreduceenergyuseandlasttwiceaslong

• OgdenTheatre,asmallvenue,hasbeenusingdaylighting toreducelightingneedsandopeningdoorstoreducecoolingneeds

XLCenter—Hartford,CT

ClubNokia—LosAngeles,CA

STAPLESCenter—LosAngeles,CA

environmental

performanCe

31

In2008,AEGcommissionedARUP,anindependentfirmofengineersandconsultants,toconductadetailedenergyauditoffivevenuesofdifferentagesandclimatestogetasnapshotoftheenergyefficiencyandconservationopportu-nitiesavailableforthegreaterportfolioofAEGvenues.TheauditsconductedatNokiaTheatreL.A.LIVE,TheHomeDepotCenter,STAPLESCenter,TargetCenterandSprintCenterconfirmedthevalueoftheenergyefficiencyandconservationinitiativesconductedoverthepastfiveyears,theauditsalsoassistedengineeringstaffinidentifyingsignificant opportunitiestobetterdocumentbestpracticesandprioritizecapitalforenergyefficiencyprojects.

www.arup.com/sustainability

Creating Value for

Corporations through

Energy and Water Efficiency

Arup’s pilot study for

AEG highlights the

real opportunities for

corporations who

choose to adopt an

aggressive approach

to energy and water

efficiency across their

property portfolios.

Sta

ples

Cen

ter

© A

rup

Spr

int C

ente

r ©

Aru

p

Arup was appointed by AEG to deliver their

sustainability initiative “AEG Sustainable.” An

organization-wide initiative to enable AEG to become

the leader in sustainable entertainment; create green

programs that work for their portfolio; educate

employees, fans and artists; and allow them to

identify new revenue streams. The first stage of this

ambitious initiative focused on energy and water

reduction through a pilot project based on five of

AEG’s venues in the USA.

The five venues were located across the USA and

were of varying ages with differing energy and water

efficiency programs in place. At each venue Arup

carried out a study of the opportunities to reduce

energy and water usage, and achieve a reduction in

costs and carbon emissions, in three key operational

areas: equipment, operational procedures and

utility supplies. To do this we analyzed each of the

three operational areas against four measures,

opportunities for energy and water conservation;

the potential for retro-commissioning and renewable

energy; energy saving operational improvements,

and utility market opportunities. For each of the

measures, Arup examined a number of potential

capital projects and approaches before making

recommendations for each venue as to the best

solutions to achieve their goal. To assist the client in

their decision making process we also provided a full

cost/ benefit analysis for each solution.

Arup’s study for the pilot project clearly demonstrated

that AEG could substantially reduce energy and

water usage at the five venues to achieve significant

cost savings and carbon emissions reduction. The

results also highlight the potential for AEG to replicate

these results across the rest of their portfolio globally,

as opportunities for reducing energy and water usage

were found at every venue regardless of age and

location.

Measure Annual Energy

Saving ($/yr)

Savings % of

Annual CostSimple Payback (yrs)

Energy conservation 278,150 3.3%4.4

Retro-commissioning 667,500 7.8%1.8

Renewable energy 12,500 1.3%18

Water conservation 23,000 2.3%7.0

Estimated Incentives --

-

Est. O&M savings ($/yr) 36,000-

-

Total1,016,870 12.0%

2.6

Projected capital investment v cost savings across the five properties

Economy Environment

Social Impact

Arup’s approach

to sustainability is

centered on the delivery

of the triple bottom line.

The triple bottom line

builds on the traditional

financially based

accounting framework,

to take into account

ecological and social

performance.

Arup identified cost savings of over $1 million per

year across the five venues. Even at the newest

venue built in 2007 we identified cost savings.

The pilot studies projected less than a 3 year

simple payback of capital investments in the energy

conservation measures that Arup recommended.

By implementing Arup’s solutions AEG would reduce

their carbon emissions by 9,636,000 lbs a year the

equivalent of planting over 700,000 trees a year.

Top Image ©Woo Song

SprintCenter—KansasCity,MO

32 NokiaTheatreatL.A.LIVE—LosAngeles,CA

district heating and Cooling

Districtheating,alsoknownasteleheating,isahighlyefficient systemfordistributingheatgeneratedatacentralizedlocation, typicallythroughtheproductionofsteamtoresidentialand commercialbuildings.Theheatisoftenobtainedfroma cogenerationplantburningfossilfuels,but,increasingly, biomass,geothermalheating,centralsolarheating,andnuclearpowerarealsoused.Districtheatingplantscanprovidehigher efficienciesandbetterpollutioncontrolthanlocalizedboilers. Coolwatercanbedistributedinthesamefashion,providinga waytocoolbuildingsduringthesummer.

Venuesusingdistrictheatingand/orcooling:StockholmGlobeArenas–Stockholm,Sweden SprintCenter–KansasCity,MO TargetCenter–Minneapolis,MN

our AEG 1EArth 2020 vision GoAlsBecauseelectricityandfossilfuel-consumptionaredirectlytiedtotheproductionofGHGemissions,ourlong-termgoaltoachievea20percentreductioninCO2emissionsintensityby2020addressesthereductionoffossilfueluseandelectricityconsumptionatouroperations.

SprintCenter—KansasCity,MO

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

rEnEWAblE EnErGy

2009 on sitE rEnEWAblE EnErGy GEnErAtion: 822,000 kWh

2009 rEnEWAblE EnErGy crEdits: 13,652,040 kWh

Themostsignificantwayforanycompanytoaffectclimatechangeandreducegreenhousegasemissionsistolessenitsdependenceonfossilfuels.Oneofthemosteffectivewaystodothisistogenerateorpurchaseclean,emission-free,renewablesolar,windorgeothermalenergy.

Overthepastfewyears,AEGhasdedicatedsignificantresourcestoexploringtheuseofrenewableenergyatourfacilities.Wehaveinstalledsolararraysandresearchedtheopportunitiestopurchaseasmuchrenewableenergydirectlyfromtheelectricitygridaspossible.WehavealsobegunpurchasingRenewableEnergyCertificates(RECs)atsomeofourvenues.RECsareunitsofenvironmentalairemissionbenefitthatresultfromtheproductionofrenewableenergygeneratedoffsiteandarepurchasedwhenalocationdoesnothavetheoptiontosecurerenewableenergydirectly.RECsoffsetgreenhousegas-emittinggrid-tiedpowerthatvenuesmustuse.

TotalcompanywiderenewableenergygeneratedandRECspurchasedhaveincreasedto13,652,040kWhperyearin2009.Theserenewableenergysourcesrepresent9.4percentoftotalAEGelectricityusage.Notethatthisfiguredoesnotreflectrenewableenergyderivedfromtheutilitiesincreasingportionsofgrid-tiedsources.

Increasingouruseofrenewableenergywillrequireadoptingmanydifferenttypesofsolutionsacrossourcompany.Individualsolutionswilllikelybeasuniqueasthevenuesthemselves.Aswelooktoimplementrenewableenergyopportunities,werealizethattheonsitegenerationofrenewableenergy,oritspurchasedirectlythroughthegrid, hasahigherenvironmentalbenefitandlong-termfinancialreturncomparedtothepurchaseofRECs.

ECoMEtriCs: totAL rEnEWAbLE EnErgy gEnErAtEd And rECs PurChAsEd

venuetype of renewable

yr installed

annual production/offsets (kWh)

percent of annual Consumption

annual Co2 reduction (us tons)

approximate annual savings (usd)

STAPLESCenter On-siteSolar 2009 456,000 2% 130 $55,000

NokiaTheatreL.A.LIVE On-siteSolar 2009 237,000 7% 68 $28,500

AcerArena On-siteSolar 1999 91,000 2% 92 $8,000

EricssonGlobeArena On-siteSolar 2007 42,000 2% 2 $7,500

O2 World RECs — 3,500,000 23% 1,558 —

RoseGarden RECs — 10,149,640 100% 2,910 —

OgdenTheatre RECs — 2,400 1% 3 —

environmental

performanCe

33

34

“this is a good day for California. it demonstrates how strong our commitment

to renewable energy and the environment is within this state. When California-based

companies like solar Power, inc. and AEg come together with a solution like we have here

today, everybody wins.”

– California governor Arnold schwarzenegger on roof of stAPLEs Center

RoofofSTAPLESCenter

cAsE study: rEnEWAblE EnErGysoLAr PhotovoLtAiC (Pv) At stAPLEs CEntEr And noKiA thEAtrE L.A. LivEIn2008,AEGtooktheleadamongliveentertainmentandfacilitymanagementcompaniesintheUnitedStatesbyinstallingmorethan3,000solarphotovoltaicpanelsontheroofofSTAPLESCenterandNokiaTheatreL.A.LIVE.Thesizeofthisinstallationprovidesenoughelectricitytoannuallypowerapproximately60U.S.homes.The512-kilowatt(kW)system(346kWatSTAPLESand166kWatNokia)willcontinuetoprovidesignificantenvironmentalbenefitsoverthenext25years.Because60percentofgridelectricityinLosAngelescomesfromburningfossilfuels(coalandnaturalgas),thebenefitsofsolarincludetheeliminationoftonsofharmfulcarbondioxide,sulfurdioxideandnitrousoxide.InadditiontothedirectenvironmentalandfinancialbenefitstoAEG,thepublicnatureoftheinstallationreachesmillionsofspectatorseveryyear.EveryoverheadshotofL.A.LIVE,beitduringatelevisedLakersgame,aconcertorotherevent,servesasapositiveexampleofhowrenewableenergycanhelpfuelAmerica.

soLAr PhotovoLtAiC At ACEr ArEnA in sydnEy, AustrALiAFormerlyknownastheSydneySuperDome,AcerArenainstalleda70-kWsolarPVsystemontheroofoftheSportsHallinpreparationfortheSydney2000OlympicGames. Atthetime,in1999, thiswasthelargestrooftopsolarinstallationintheSouthernHemisphere.

AcerArena—Sydney,Australia

34

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

soLAr PhotovoLtAiC At EriCsson gLobE ArEnA in stoCKhoLM, sWEdEn TheEricssonGlobeArenainStockholm,Sweden,isaone-of-a-kindstructurethathousesmanysportsevents,mostnotably,theannualWorldHockeyChampionships.In2007,a54-kWthinfilmamorphoussilicon(a-Si)PVsystemwasinstalledontheroof.Whenthissystemwasinstalled,itwasthelargestthin-filmsysteminallofScandinavia.

rEnEWAbLE EnErgy CrEdits At rosE gArdEn, orEgonIntheirpursuittoachieveaU.S.GreenBuildingCouncilLeadershipinEnergyandEnvironmentalDesign(LEED)GoldCertificationinExistingBuildingOperationandMaintenancecertifiedvenue,RoseGardenandthePortlandTrailBlazersmadethecommitmenttooffset100percentofthecarbondioxideemissionsgeneratedfromtheirconsumptionofbothelectricityandnaturalgas.ThisisanongoingcommitmenttomakeRoseGardenacarbonneutralarenaandmakestheTrailblazersoneofthegreenestteamsinsports.

rEnEWAbLE EnErgy CrEdits At o2 WorLd in bErLin, gErMAnyO2Worldpurchasedatotalof11,500MWh ofRenewableEnergyCreditsforthreeyears ofoffsets.

cA

sE stu

dy

EricssonGlobeArena—Stockholm,Sweden

O2 World—Berlin, Germany

environmental

performanCe

35

36

WAtEr

2009 WAtEr footprint: 761,488,509 GAl

2009 rEcyclEd WAtEr: 67,960,324 GAl

ThreepercentoftheEarthiscomprisedoffreshwater,buthumanscanonlyaccessonepercent.Unlikeoil,freshwaterdoesrenewitselfinanaturalfiltrationcycle.However,ourcurrentpatternsofresourceusearedamagingnaturalfiltrationsystemsandfreshwaterisnotreplenishingfastenoughtomeetourgrowingneeds.

Already2.8billionpeoplearelivingunderwaterstress(lessthan3gallonsperday).Withtheworld’spopulationgrowingbyabout80millionpeopleperyearitisestimatedthat3.9billionpeoplewillbelivinginwaterstressby2030,overhalfoftheworld’sestimatedpopulation.AtAEGwebelieveaccesstofreshwaterandusingwaterefficientlywillbetwoofthegreatestchallengestheworldwillfaceinyearstocome.

Asstandardpractice,AEGinstallswater-efficientfixturesinallAEG-ownedvenues.Suchfixturesinclude:pushorsensor-timedsinktaps,low-flowshowerheadsandtoilets,and,wherepossible,waterlessurinals.Werealizewestillhavealotofworktodoandareconstantlysearchingfornewwater-savingprojects.

CoMPArE150 gallons per day-AverageamountofwaterusedbyindividualinNorthAmerica

15 gallons per day-Amountofwaterexpertsfeelweactuallyneedin order to maintain our currentstandardofliving

3 gallons per day-Averageamountof waterusedbyanindividualinAfrica

potAblE WAtEr And rEcyclEd WAtEr*(millionsofgallons)

PotAbLE WAtEr rECyCLEd WAtEr

237

39

396

71

626

68

2007 2008 2009

WAtEr usE pEr AttEndEE(gallons)

2007 2008 2009

60

50

40

30

20

10

0

50.140.5 38.5

*Wedefine“recycledwater”toincludebothon-siteharvestedandreclaimedwater.

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

our AEG 1EArth 2020 vision GoAlsAEGhascommittedtoa20percentreductioninwateruseforthecompanyasawholeinour2020goals.Therearenumerouswaystoreducewateruseatourfacilities.Areasoffocusinclude:

(1)Continuedinvestmentinwaterconservationandefficiencymeasures,suchaswaterlessurinals,heatingandcoolingupgrades,dripandeveningirrigationandintegratingxeriscapingpracticesintolandscaping

(2)EmployeetrainingthoughourEMSonhowtobetterrecognizeandimplementopportunitiesfor waterconservation

AEg ECoMEtriCs: totAL WAtEr usE In2009,totalwaterconsumedbythecompanywas761,488,509gallons,enoughwatertoflood2,000acres one-footdeep.Totalcompanywidewaterconsumptionincreased2.5timesbetween2007and2009whileattendancegrewthreefoldwateruseperattendeedecreased23percentoverthatsameperiod,from50.1to38.5gallonsperattendee.Recycledwaterusehasincreasedandnowmakesup9percentoftotalwateruse.Weareproudofthepositivetrendsinwaterreductionatourfacilities,mostofthesavingsinwaterconsumptionhascomethroughtheimplementationofconservationprojects,mostnotably:

•WaterlessurinalretrofitsinAEGfacilitiesacrossSouthernCalifornia

• UseofreclaimedwateratCitizensBusinessBankArenainOntarioCaliforniaandTheHomeDepotCenterin Carson,California

• RecycledwateruseatAcerArenainSydney,Australia

• HarvestedrainwateratO2WorldHamburg,inHamburgGermany(formerlyknownasColorLineArena)

innovAtivE soLutions: WAtErLEss urinALsIn2009,Californiaofficiallyentereditsthirdyearoftheworstdroughtinitshistory.Waterreservesarestillextremelylow.WiththeSacramento-SanJoaquinDeltaecosystemnearcollapse,court-orderedrestrictionsonwaterdeliveriesfromtheDeltahavereducedsuppliesfromthestate’stwolargestwatersystemsby20to30percent.In2007,justasCaliforniawasenteringitsfirstyearofthecurrentwatercrisis,AEGreplacedallurinalsatSTAPLESCenterandNokiaTheatreL.A.LIVEwithwaterlessfixtures.Next,thepurchasingandsustainabilityteamssetouttoupgradeallurinalsinAEG’sSouthernCaliforniafacilities,whichincludeCitizensBusinessBankArena,TheHomeDepotCenter,ClubNokia, SanDiegoSportsArenaandallL.A.LIVEvenuesandoffices.ByApril2009,AEGinstalled496waterlessurinals,savingnearlytwentymilliongallonsofwaterayear-asmall,butimportantstepinaddressingCalifornia’sscarcewatersupply.

environmental

performanCe

37

38

cAsE study: WAtEr rEcyclinG At AEGWaterrecyclinghelpsrelievethedepletionoffreshwatersources.Themorefreshwaterwecanreusebeforereturningittotheocean,thelessouroverallconsumption.Fourofourvenuesuseaconsiderableamountofrecycledwater.

rAin WAtEr CAPturE At o2 WorLd hAMburg (forMErLy KnoWn As CoLor LinE ArEnA)WhenitrainsinHamburg,Germany,rainwaterthathitsthemassiveslopedroofoftheO2WorldHamburgnolongerrunsdirectlyintostormdrains.Instead,itiscollectedinanundergroundcisternforlateruse.Watercollectedinthe480m³(127,000-gallon)storagetankisusedtoflushurinalsandtoiletsandalsochargesthefiresuppressionsystem.Duringpeakdemand,orduringexceptionallydryperiods,aback-upsystemisavailabletotop-offthecisternwithpotablewater. ItrainsoftenenoughinHamburgthattheback-upsystemisrarelyneeded. AconstantsupplyofmoistairblowingofftheNorthSeasuppliesenoughrainwatertoflushallthetoiletsandurinalsinthearena.

O2WorldHamburg(formerlyknownasColorLineArena)—Hamburg,Germany

ImagecreatedbyO2WorldHamburgstaff

38

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

cA

sE stu

dy

on sitE WAtEr rECLAMAtion And MAnAgEMEntTheAcerArenainSydney,Australia,oneofthekeystonevenuesintheSydneyOlympicPark,saveswaterbyparticipatingintheOlympicPark’sWaterReclamationandManagementScheme(WRAMS).WRAMSisacompletesystemforwatermanagement,encompassingstormwaterharvesting,vegetatedpondsthatimprovestormwaterquality,watertreatmentinfrastructure,watersupplyinfrastructureandsewagetreatment.WRAMSsupplieshigh-qualityrecycledwatertoallsportingvenues,commercialfacilitiesandparklandsinsidetheSydneyOlympicPark.Approximately40percentoftherecycledwaterisusedfortoiletflushingandtheremaining60percentisusedforirrigationandoperationalwash-downactivities.Theenvironmentalbenefitsofthislandmarkprogramincludeanestimated50percentoverallreductioninfreshwaterconsumptionandahugecorrespondingreductioninstormwaterandsewageeffluentthatwouldhaveotherwisebeendischargedintotheocean.

Venuewastewateriscapturedinaprecinctreservoir,channelledthroughtoalocalwatertreatmentplantandrecycledforusessuchastoiletflushing,irrigation,airconditioning,firefightingandpowerwashing.

LAndsCAPing With rECLAiMEd MuniCiPAL WAtEr TheHomeDepotCenterinCarson,California,andCitizensBusinessBankArenainOntario,California,bothtieintoexistinggreywaterreclamationsystemsadministeredthroughthelocalmunicipalities.Greywaterfromsurroundingareasistreatedbythemunicipality,makingitsafefornon-potableuses,includinglandscapeirrigationandindustrialprocessingandcooling.TheprogramhasworkedwellforCitizensBusinessBankArena,whichdesigneditslandscapingtoconsistofheartylocalvarietiesofplants.TheHomeDepotCenter,ontheotherhand,isasprawling125-acrecomplexwith10naturalgrassplayingfields.Managingirrigationandlandscapingisarguablythemostimportantaspectofthefacility’sbusiness.Theturfandgroundscrewcontinuallyfacechallengeswithregardtohighnitrogencontentinthereclaimedwater.Theraisednitrogenlevelsoftenattractinsectsandpathogens,makingmanagementdifficultforfieldsgrownspecificallyforhigh-performancesportingeventssuchassoccer,fieldhockeyandrugby.Sometimes,pesticidesandfertilizerareneeded.Despitethesechallenges,managementatTheHomeDepotCenterrecognizestheimportanceofconservingwater,especiallyinSouthernCalifornia,andarecommittedtomakingitwork.In2009,animpressive83percentofallwaterconsumedatthefacilitywasrecycled.

AcerArena—Sydney,Australia

CitizensBusinessBankArena— Ontario,CA

TheHomeDepotCenter—Carson,CA

environmental

performanCe

39

40

solid WAstE

2009 solid WAstE GEnErAtion footprint: 26,526,483 lbs

2009 solid WAstE divErtEd: 8,492,178 lbs

Theliveentertainmentandsportsindustryisinfamousforcreatinglargeamountsofwasteinshortamountsoftime.Accordingtoa2006studyofeventsandvenuesconductedbytheCaliforniaIntegratedWasteManagementBoard,thereisanaverageof2.4poundsofwastegeneratedforeveryattendeeatapublicsportsorentertainmentevent.In2009,atthe20AEGvenuesmonitoredinthisreport,AEGaveraged1.5poundsofwasteforeveryattendee,ofwhich 1poundgoestothelandfill.

ChALLEngEs uniquE to LivE EntErtAinMEnt And sPorts fACiLitiEslimited time:Atmostvenues,theoperationsteamonlyhasfrommidnightto6a.m.tocleanandpreparethefacilityforthenextevent.Manytimes,thisincludesaconversionofthefloorandseatingarrangementfromoneeventtypetoanother(e.g.,hockeytobasketball).

Constant Change:Intypicalsingle-purposefacilitiessuchasawarehouse,anofficeorretailspace,theemployees,vendorsandcustomersremainfairlyconsistentintheirrolesandresponsibilities.Inliveentertainmentandsportsfacilities,thekeyplayersintheday-to-dayoperationschangefromeventtoevent.Additionally,AEG’sclientsbringdifferenttypesofmaterialsintoourvenuesdependingontheevent.Inotherwords,hostinganawardceremonywouldresultinamuchdifferentwastestreamthanhostinganindoorvalleyballtournament orahockeygame.

limited space for Waste sorting and storage:EvenatvenuesaslargeasSTAPLESCenterandThe02,wefacespacelimitationsinmanagingwasteandrecyclables.Historically,non-revenuegeneratingspaces,suchasloadingdocksandwastesortingstations,tendedtobeundersizedand/orremovedfromnewbuildingspecifications.

40

IndoorValleyballatSprintCenter—KansasCity,MO

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

AEG’s 1EArth 2020 vision GoAls• Divertfromthelandfill25percentofallsolidwastegeneratedinourvenues

• Divertfromthelandfill75percentofallsolidwasteat10designatedvenuesandevents

• Generatezerohazardouswaste

AEg ECoMEtriCs: soLid WAstE And divErtEd soLid WAstEOurcompanywide,solidwastediversionrate(wastedivertedfromthelandfillthroughrecycling,composting,reuse,etc.)nearlydoubledfrom2007to2009,from18percentto32percent,andwastedivertedperattendeenearlytripledfrom0.17to0.47poundsperattendee.

Whilewerecognizethatourperformancecanimproveinthefuture,webelievethatmovingfroma18percenttoa32percentsolidwastediversionrateinthreeyearsissignificantprogress.Movingforward,wewillputmoreeffortintoreducingsolidwasteperattendee,increasingourrecyclingandcompostingefforts.

totAl solid WAstE

(thousandsoflbs) soLid WAstE LAndfiLLEd soLid WAstE divErtEd

4.238

12,335926

3,332

18,034

8,492

2007 2008 2009

solid WAstE pEr AttEndEE(lbs)

2.0

1.5

1.0

0.5

0.0

0.77

0.17

1.06

0.29

1.00

0.47

soLid WAstE LAndfiLLEd soLid WAstE divErtEd

2007 2008 2009

environmental

performanCe

41

AEG 2009 vEnuEs With on-sitE WAstE divErsion rAtEs of 50% or morE*

the o2 Arena

rose garden

o2 World hamburg

ogden theatre

50%

50%

63%

79%

*Inadditiontoanon-siterecyclingprogram,TargetCentersendstheirsolidwasteoffsitetoawaste-to-energyincinerationprogramoperatedbyWasteManagement™intheCityofMinneapolis.Withtheirsolid-wastegoingoffsitebutnottothelandfill,TargetCenterhasa96percentdiversionrate.

WAstE divErsion At AEgmaterials Collected at all venues: Solidwaste,cardboard,lightbulbs,ballasts,batteries,durableofficegoods,constructiondebris,grease,E-WasteandHazardousWaste(SeeCompliancesection,page45).

additional materials Collected at select venues: Beveragecontainers,paper,recyclableplastics,metals,landscape,debris(clippings,trimmings,sod),organicwaste(food,paper,cardboard,servingtrays,wood).

suCCEss storiEs1) grease Collection

Everyvenuewithfoodservicehastheirwastefryergreasecollectedbyacompanythatusesgreaseforbio-fuels,animalfeedsandotherindustrialpurposes.Forexample,atRentschlerFieldinHartford,Connecticut,STAPLESCenterFoundationworkswithacompanycalled“GreaseGuys”tousetheirowngreasetopowertheirfacilityvehicles withbio-diesel.

2) durable goods

Forofficefurnitureandotherdurablegoods,suchaslampsanddécorfromdressingrooms,AEGvenuesareencouragedtobuildrelationshipswithlocalnon-profitssotheycandonatethesematerials.AtSTAPLESCenter,AEGstaffworkswithHabitatforHumanitytocollectdurabledécorandconstructionelementsfromthesetsanddressingroomsoflargeeventsliketheGRAMMYAwards®.

3) beverage Containers

Onlyafewselectvenueshave“frontofhouse”recyclingprogramswhereguestscanplacetheircontainersinrecyclingbins.ThesevenuesincludeTargetCenterinMinneapolis,Minnesota,CitizensBusinessBankArenainOntario,California,TheO2inLondon,SprintCenterinKansasCity,Missouri,XLCenterinHartford,Connecticut,andRoseGardeninPortland,Oregon.ManyAEGvenueshavebeveragecontainerrecyclingin“backofhouse”areaswherestaffandjanitorialteamshelpsortthematerialsdirectlyfromthewastestream.AtSTAPLESCenter,TheHomeDepotCenterandSanDiegoSportsArena,localyouthfromtheConservationCorpsassistinthecollectionofCaliforniaRedemptionValue(CRV)aluminum,plasticandglassbottlesandcansfromthewastestreamduringpost-eventcleanup.

CitizenBusinessBankArena—Ontario,CA4242

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entenvironm

ental perform

anCepartnersh

ipsoffiCe of

sustainability

43

4) Composting – the Key to landfill diversion

Composting,thecontrolleddecompositionoforganicmaterialintoasoilamendmentorfertilizer,isoneofthemostsignificanteffortsAEGhasmadetoreducewastegeneration.Weestimatethatover50percentofafacility’ssolidwastestreamisfoodandahigherpercentageisorganicmaterial,suchaspaperorwood.AsU.S.citiesexpandtheirmunicipalcompostingcapabilities,ourvenuesarereadyandwillingtotackleinternaloperationalchallengestomakeaprogramwork.OurfacilitiesinPortland,OregonandLosAngeles,California,aretwovenuesincitiesthathavemademunicipalcompostingapriority.

InJanuary2009,RoseGardeninPortland,Oregon,became AEG’sfirstU.S.venuetoinitiatefoodwastecollectioninkitchens. Afteroneyear,AEGstaffisnowlookingtoexpandthisprogramto“frontofhouse”collectionforgueststocompostfoodscrapsfromtheirconcessionfood.In2009,L.A.LIVEinLosAngeleslaunchedacompostprogramatalltwelverestaurants.Internationally,compostingisawell-establishedbestpractice.The02inLondon,forexample,hasbeencomposting100percentofuncontaminatedfoodwastefromkitchensinthearenasince2008.O2WorldHamburg(formerlyknownasColorLineArena),Germany,hasachievedthemostsuccesswithoneofthelargestdiversionrateswithinAEGbyconvertingallfoodandconcessionpackagingtobiodegradablematerialssoall“frontofhouse”wasteiscompostable. RoseGarden—Portland,OR

biodEgrAdAbLE CuP vs. rEusAbLE CuP: WhiCh is bEttEr for thE EnvironMEnt? InGermany,acountryknownforenvironmentalinnovation,AEGhastwodifferentenvironmentallypreferablecupsolutionsinplace.

AtO2WorldHamburg(formerlyknownasColorLineArena),weusebiodegradableplasticcupsmadefrombio-plastic.Thesecupsresultinenvironmentalbenefitsbothfromthenon-petroleum-basedplasticandfromcompostingthecupsinsteadofsendingthemtothelandfill.

AtO2WorldinBerlin,weusetheCupConcept™program,inwhichtheCupConceptcompanyprovidesreusablecupstopublicvenuesandevents.Guestspayadepositonthecupatthebeginningoftheevent.Iftheycomeforrefills,theycanreturntheusedcupforanotheronewithnoextradeposit.Attheendoftheevent,guestscaneitherkeepthecupasasouvenirorreturnittoretrievetheirdeposit.Eachcuplastsupto100uses;afterwards,theyarerecycledintohouseholdpiping.

Wearecurrentlydoingacomparisontoseewhichapproachyieldsthemostdesirablecostandgreatestenvironmentalbenefits.

environmental

performanCe

43

44

hAzArdous WAstEAEGgeneratesverysmallamountsofResourceConservationandRecoveryAct(RCRA)regulatedhazardouswaste,suchaswastepaint,thinners,solventsandspentfuels.AEGfacilitiesareallConditionallyExemptSmallQuantifyGenerators(CESQG)ofhazardouswasteand,therefore,areabletomanage,storeanddisposeofthesesmallquantitieswithrelativeeaseandinfullregulatorycompliance.

MAnAging univErsAL hAzArdous WAstEProductscontainingUniversalHazardousWasteaccumulateinabusinesssettingveryslowly,onepieceatatime:aCRTmonitor,anoldprinter,lastyear’scellphone,usedbatteriesormercury-containingswitches.Aswetransitionawayfrominefficientincandescentlightbulbsandinstallmoreefficientcompactfluorescentlamps,wecreateanewwastestreamoflampsthatcontainmercuryandmustbemanagedandrecycled.AtAEG,UniversalHazardousWastemustbeproperlyinventoried,labeled,storedandrecycledwithalicensedserviceprovider.

AEGanditsvendorshelprecycleallUniversalWaste,includingelectronics(computers,cellphones,CRTs,printers,etc.),batteries(camera,car,household,lead-acid,nickelmetalhydride,lithiumandalkaline),pesticides,mercuryswitches,PCB-containingballastsandfluorescentlamps.

AEg hAzArdous And univErsAL WAstE strEAM

WAstE MAnAgEMEnt Audit And trAiningThroughaggregatingourEcometricstrackingsystemdataandwritingthisreport,wehavediscoveredthereisroomforimprovementinhowwemanagebothUniversalandHazardousWaste.Althoughoperationsandbuildingstaffknowhowtoproperlymanage,storeanddisposeofthesematerials,manyofourclients,whoareinthevenueforonlyoneortwonights,donot.TherearealsodifferentstandardsrelatingtothemanagementofUniversalandHazardousWastedependingonwherethevenueislocated.ThelawsareverydifferentbetweenCalifornia,MissouriandGermany.

Tofurtherimproverecord-keepingandensurewehaveproperlydeterminedourenvironmentalliabilities,AEGhascommittedtoconductingwastestreamauditsandUniversal/HazardousWasteawarenesstrainingatourvenues. Theauditmethodologywillbedevelopedin2010andtheauditsystemwillbeimplementedatanumberofour facilitiesshortlythereafter.Theresultsoftheseauditswillbeusedtoguideourfuturewastemanagementpolicies anddecisionmaking.

hazardous Waste / universal Waste Waste stream recycled (yes/no)

Hazardous Solvents.Includes:paintthinners,anyliquidpaint,industrialcleaners No

Universal Fluorescentlamps.Includes:fluorescenttubes,bulbs,highintensityandsodiumvaporlamps Yes

Universal Electronics.Includes:TVs,monitors,anyLCD,anyCRT,computers,plasmascreens Yes

Universal Allbatteries.Includes:anyproductordevicethathasabattery Yes

Non-regulated Wastepetroleumoil Yes

2020 AEG 1EArth vision GoAlsAEG’sgoalistogeneratezeroRCRA-regulatedhazardouswasteby2020.

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

TheHomeDepotCenter—Carson,CA

compliAncE Trackingcomplianceisafundamentalpartofdemonstratingenvironmentalduediligence.Penaltiescanbeexpensive,butmoreimportantly,theyindicateashortcominginourapproachtomanagingenvironmentalrisk.AEGisnotanindustrialcompany;wedonotmanufactureaphysicalproductand,generallyspeaking,wedonotdirectlyimpactthelandsinceourwasteoutflowsfollowmunicipalwastestreams.Relativelyspeaking,ourcompliancerisksarelowcomparedtosomecompanies.However,becausewehosteventsthatattractlargeaudiences,ifanythingweretogowrong,theriskswouldbesignificant.Environmentalregulatorycomplianceandhumansafetyareourhighestpriorities.Therefore,ourgoalistohavezeroenvironmentalfinesatAEG.Todate,AEGisnotawareofanyviolationstothefollowingU.S.environmentallaws:

environmental

performanCe

45

• CleanAirAct

• CleanWaterAct

• ResourceConservationandRecoveryAct

• CERCLA(Superfund)

• ToxicSubstancesControlAct

• SafeDrinkingWaterAct

• SuperfundAmendmentsandReauthorizationAct(SARATitleIII)

• DepartmentofTransportation

• StateWater/USTRegulations

• StateAirRegulations

• StateHazardous/SolidWasteRegulations

•WastewaterExceedances

*ThisreportdoesnotaddressfederalorstateOSHAsafetycompliance.

46

rEsponsiblE purchAsinGAEGprocuresmillionsofdollarsinproductsandserviceseachmonth.Frommanufacturing,touse,thendisposal,eachphaseinthelifecyclehasenvironmentalimpacts.Theseproductsandservicesarecurrentlycreatedina“take,make,waste”economywherenaturalresourcesaretaken(extracted),madeintoindustrialproductsandthendisposedaswastewherenaturalsystemscannotbreakdowntheman-madematerialsatthesameratetheyareproduced.

Thereisagrowingconsensussurroundingtheneedtochangethissystem.Thistransitionrequiresafocuson“closingtheloop”,ensuringthatbiodegradablecomponentsareabletodegradesafelybackintotheEarth’sbiosphereandmanufacturedelementsarereturnedtotheindustrialprocessesfromwhichtheyarederived.Thus,creatinganew“take,make,remake”economywhereweareusinglessrawmaterialsandreducingoverallwastegeneration.

Similartoothercompanies,AEGdevelopedaResponsiblePurchasingProgramtohelpguideprocurementandensurethathealthandenvironmentalimpactsofproductsaretaken intoconsiderationandweighedappropriatelyagainstcost.

SprintCenter—KansasCity,MO

*TAKE*MAKE*WASTE*

landfill

*TAKE*MAKE*remake*

biodegradable materialsfood concessions, paper

manufactured materialscans, bottles,

construction debris

food concessions

utilities

office supplies

merchandise

construction materials

food concessions

utilities

office supplies

merchandise

construction materials

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

AEg’s rEsPonsibLE PurChAsing ProgrAM inCLudEs:• AcommitmenttoenvironmentallypreferablepurchasingandtheuseofdiversesuppliersasrequiredbyAEG’sEPP(EnvironmentalPreferableProcurement)policyandpurchasingguidelines

• Aweb-basedsupplierportalandpurchasingmodulethatallowsallpurchasingactivitytobeconductedelectronicallyandrequiresallsupplierstosupplyinformationontheirenvironmentalcommitments

• ParticipationintheResponsiblePurchasingNetwork,aprogramthatprovidestoolsandeducationalopportunitiestoourpurchasingemployees,andutilizetheirbestpracticesandestablishedstandardswhereverpossible

• AninventoryofpreferredvendorsandenvironmentallypreferableproductsusedatAEG

• Anassessmentprotocoltodetermineifaproductorserviceisenvironmentallypreferable

• Letterstosuppliers,vendorsandcontractorsthatexplainenvironmentalgoalsandsupplierresponsibilities,whichincludecommitmentstoreducedpackagingandproducttake-back

• Alettertofoodvendorsthatrequestsacommitmenttomoresustainableoperations,includingincreasingthepurchaseoforganic,local,sustainablefoodproducts,participatinginfoodwastecompostingwherepossible,andmaintainingequipmentforenergyandwaterefficiency

2020 AEG 1EArth vision GoAls50percentoftotaldollarsspentonhigh-impactproductsandserviceswillbespentonsustainablealternatives.

Inadditiontocreatingthesetoolstosupportenvironmentallypreferablepurchasing,AEGidentifiedthetopfour* purchasingcategoriesthathaveahighlevelofenvironmentalimpactduetoboththevolumeofpurchasesandtheenvironmentalattributesoftheproductsandservices:

1)Heating,ventilationandairconditioning(HVAC)

2)Lighting

3)Paper

4)Janitorial

*Thislistpurposelyexcludesutilities,whichareaddresseddirectlythroughourenergy,greenhousegasandwaterinitiatives.

In2009,AEG’spurchasingdepartmentembeddedpurchasingmetricsdirectlyintotheEcometrics.Whilethedatacompiledisnotasitwillbeinsubsequentreportings,itprovidesavalidbenchmarkforfuturemeasurements.

environmental

performanCe

47

48

sourCing At AEg: CLEAning ProduCts And jAnitoriAL sErviCEsAEGPurchasingsourcesproductsandsuppliersbasedonquality,environmentalpreferability,supplierdiversitygoalsandcostcompetitiveness.Tothisend,environmentalproductandservicerequirementsarebuiltintoAEG’ssourcingprocess.In2009,thepurchasingdepartmentfocusedspecificallyonsourcingenvironmentallypreferablecleaningproductsandjanitorialservices.

AEGprioritizestheuseof“green”cleaningchemicalsthatarelowintoxicityandminimizeimpactonhumanhealthanddamagetotheenvironmentfromexposuretoanddisposaloftheseproducts.Whileworkingonthisinitiative,AEGPurchasingdiscoveredthatseveralfacilitieswerealreadyusing“green”cleaningproductsbutwehadnowaytomeasuretowhatextentwerealloftheirchemicals“green.”AEGPurchasingformallydefined“green”cleaningproductsforthecompanyandreachedouttochemicalsuppliersandserviceprovidersaskingthemtoprovideinformationonwhichoftheirproductsmeetthefollowingcriteriaandiftheyhaveexperiencecleaningwiththeseproducts:

• Professionallycertified(GreenSealorEcologoPreferred),and/or

• Noozone-depletingsubstancesandlowVolatileOrganicCompounds(VOC),and

• Non-toxicandbiodegradable

Throughouttherestof2009,AEGPurchasingassistedseveralmorevenuesintransitioningto“green”cleaningproductsandserviceprovidersfamiliarwithusingthem.Inallcases,AEGrealizedcostsavingsandisnowoneofmanycompaniesthatcansaygreencleaningactuallysavesmoney.Movingforward,AEGisworkingwithsupplierstomeasurethemonthlypercentageofpurchasedcleaningproductsthatmeetourdefinitionof“green.”

OgdenTheatre—Denver,CO

“in my 10 years of experience, sustainability procurement has typically been a regulatory requirement. At AEg, our procurement team is committed to being subject matter experts in environmen-tally preferred purchasing, and we’ve incorporated those practices

into our sourcing methodologies.”–CameronBasydlo,DirectorofStrategicSourcing

AEg vEnuEs using ovEr 50% quALifiEd grEEn-CLEAning ProduCts• AcerArena• CitizensBusinessBankArena• O2WorldHamburg• TheHomeDepotCenter• L.A.LIVE• NokiaTheatreL.A.LIVE

• TheO2Arena• TheO2World• OgdenTheatre• TargetCenter• SanDiegoSportsArena

• SprintCenter• STAPLESCenter• StockholmGlobeArenas• RoseGarden• XLCenter

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

environmental

performanCe

49

trAnsportAtionBytheendof2010,thereisexpectedtobemorethanonebillionvehiclesintheworld.Thisnumberisexpectedtoincreaseanadditional20percentby20151asmorethan10millionnewvehiclesareaddedeachyear.Currently,thetransportationsectoristhesecond-largestglobalemitterofgreenhousegasesbehindpowergeneration,accountingfor20percentofallemissions.

AEG’stransportationemissionsareminimalasweonlyhaveanaverageoftwovehiclesateachofthe20venuesincludedinthisreport.Ofthetotalenergyweconsumeasacompany,gasolinemakesuplessthan0.5percent.Ontheotherhand,thereisasignificantamountofindirectemissionsthatresultfromAEG-relatedactivities,suchas:1)theshippingofgoodsandservices,2)employeecommutesandtravel,and3)audiencetravel.BecausetheseindirectemissionsarenotunderthecontrolofAEG,wehavenotset2020goalsspecificallyaroundtransportation.Butwerecognizeourabilitytoinfluencethetransportationdecisionsofouremployees,partnersandpatrons.Movingforward,AEGiscommittedtostrategiestoreducebothourdirectandindirecttransportationemissions.2

1Source:R.L.PolkAutomotiveIntelligence.

2 Theindirect(Scope3)greenhousegasemissionsdescribedabovefrom(external)shippingofgoods,audiencetravelandemployeecommutesarenotincludedinAEG’sgreenhousegasinventory.TheWRI/WBCSDGHGProtocolconsidersthequantificationofScope3emissionsasoptional.InternalshippingofgoodsandshippingusingAEGvehicleswithinvenuesisincluded.

EMPLoyEE trAvEL (dirECt EMissions) In2009,AEGhiredaglobaltravelmanagerwhohaslaunchedaformaltravelandexpensepolicyaswellasonlinetravelportalthatincludesenvironmentalguidancelanguageencouragingemployeestoreducetheenvironmentalimpactoftheirtravel.Movingforward,AEGwillusedatafromthetravelportaltoassessAEG’senvironmentalimpactsassociatedwithbusinesstravel.

EMPLoyEE CoMMutEs And AudiEnCE trAvEL (indirECt EMissions)AEGhasnoformalcompanywideprogramtodemandemployeesorvenueattendeesusealternativetransportation.ThisishistoricallybecauseAEGhasnocontroloverhowstaffandaudiencestraveloranycontroloverthepublictransportationsystemsnearthevenue.Wearecurrentlyworkingonincentivestoencouragegreateruseofalternativetransportation. Somevenuesalreadyhavesuccessfulinitiativesthatrewardstaffandattendeesfortakingalternativetransportation:

• TheO2hasatravelplaninplacethathashelpedthemencourage75percentofallvisitorsand90percentofallstafftotakepublictransportation.

• RoseGardenandtheTrailBlazersprovidetransitpassestoallemployeesanddiscountticketstoNBAaudienceswithproofofpublictransportation.

• L.A.LIVEandtheUniversityofSouthernCalifornia(USC)havepartneredtogethertoprovideafreeweekend shuttletostudents.

50

communicAtion And EducAtionTobestreduceenvironmentalimpactsbothinsideandoutsideofAEG’sscopeofinfluence,AEGmustengageallofouremployees,aswellasthemillionsofguestsatAEGvenues,facilitiesandevents,toparticipateinacultureofenvironmentalstewardship.GiventhelargenumberofpeopleattendinganygivenAEGvenueorevent,webelievewehaveauniqueopportunitytoinspireandmotivategueststowardsustainabilitybyassociatingenvironmentalresponsibilitywiththeexcitementandluxuryoftheguestexperience.

EduCAting EMPLoyEEs on sustAinAbiLitynew hire orientation EveryemployeereceivesanintroductiontoAEG’senvironmentalpolicyandprogramintheirnewhireorientation.ThistrainingexplainsAEG’senvironmentalvision,goalsandinitiativesandofferswaysthatemployeescangetimmediatelyinvolved.

ongoing training AEGHumanResourcesisdevelopingaclassmoduleentitled“Sustainability101,”whichprovidesbothageneraloverviewofwhyresourcemanagementandconservationareimportantaswellasspecificexamplesofwhatemployeescandoatworktoparticipateinAEG’s1EARTHprogram.AsAEGimplementsEMSsacrossitsoperations,environmentalawarenesstrainingwillbecomemandatory.

Consistent messaging AEGknowsitisnotenoughtosimplyannounceacommitmentonceandmakeinformationavailableinastaticlocation.AEGmanagers,communicationsstaffandHRteammembersweaveenvironmentalmessagingconsistentlyintoemployeecommunicationsandevents.Thethreemostsuccessfulformsofcommunicationinusearenewsletters,event-specificprogrammingandemailannouncements.Forexample,thecorporatepurchasingdepartmentlaunchedaquarterlynewsletterspecificallyfortheFacilitiesdivision,whichfeaturesanupdateonsustainablepurchasinginitiativesineachissue.

OnEarthDayApril22nd,2008,AEGcorporateheadquartershelditsfirstemployeeAEG1EARTHFairwithover500employeesinattendance.In2009,environmentaleducationaleventsincreasedtoinclude“BiketoWork”day,EarthDaycelebrationsandEarthHour.

2020 AEG 1EArth vision GoAl100percentofAEGfacilitiesandvenuesincludeenvironmentalmessagingandinformation.

AEGemployeesandinternsatalectureinthe GRAMMYMuseum®atL.A.LIVE

TheHomeDepotCenter—Carson,CA

guEst EngAgEMEntOneofthemostsignificantimpactsAEGcanhaveontheenvironmentistoraiseawarenessofourmillionsofguests.Whenanenvironmentalmessageisdeliveredatthesametimeguests’favoritebandorteamisplaying,themessageisinspiringandmeaningful.

EachAEGvenuereachesouttoguestsinmultipleways,including:

• Publicannouncements,signageandremindersduringeventsabout howtorecycle

• Signageonenvironmentallypreferablefixtures,suchaswaterlessurinalsandhanddryersinthebathrooms

• An“environmentalinitiatives”or“greenefforts”pageonwebsiteswhereguestscanlearnaboutthevenue’sspecificefforts

• “Greentheme”gamesandeventswherethegiveawayisarecycledcontentproductand“green”tipsaredisplayedongameboardsthroughouttheevent

• Discountticketsforpeoplewhotakepublictransportation

• Preferredparkingforhybridsandalternative-fuelvehicles

TheLAGalaxy—Carson,CA

environmental

performanCe

51

52

cAsE study: GrEEn tEAmWhentheCitizensBusinessBankArena(CBBA)openedinOctober2008,thearena’smanagementteammadeadefinitivecommitmenttoreducetheenvironmentalimpactsoftraditionalvenueoperations.Thefacilityimplementedmanyenvironmentallypreferablemeasures,suchaswaterlessurinalsandsolar-poweredtrashcompactors,butthemostsalientenvironmentalconservationinitiativesstemfrom itsemployees.

Inearly2009,CBBAdevelopedaSustainabilityCommitteewithtenactivemanagersandemployeesfromdifferentdepartments. TheinitiativescreatedbytheCBBASustainabilityCommitteeinclude:

• Companywidemugexchangetoeliminatetheuseofdisposablecoffeecups

• Lunch Clubtoencouragestafftoutilizereusablepackaging forlunches

•MonthlyGreenStar Awardgiventothemostsustainableemployee

•Weeklygreentipsdistributedviae-mailtoallemployees

• Quarterlynewsletteronthesubjectof environmentalsustainability

•Bag the Bottlein-gamerecyclingprogramallowsstaffandgueststointeractthroughrecycling

• Sustainabilitytrainingispresentedtoallnewly hiredemployeeswithenvironmentalinformationincludedinnewhirepaperwork

•Green Policetomonitorelectricityuseofstaffwithintheadministrativeoffices

• Personalrecyclebinswitheverydesk

• Employeeportalprovidesenvironmentalinformation,factsandtipsonline

• Paydayrecyclingdrop-offsiteallowsstafftodeposittheirrecyclablesatthearenaonpaydayinexchangeforprizes

Withnearly400employeesatthis10,000-personvenue,thecollaborativepowerofthestaffhasproduced tangibleresults.

CitizensBusinessBankArena“GreenStaroftheMonth”,MichaelGerber,Manager,PublicSafety

52

cA

sE stu

dy

LightsbeforeEarthHour,NokiaTheatreTimesSquare—NewYork,NY

noKiA thEAtrE tiMEs squArE EArth hour 2009

LightsoffduringEarthHour,NokiaTheatreTimesSquare—NewYork,NY

EArth hourIn2009and2010,at8:30p.m.onthefourthSaturdayinMarch,morethan30AEGaffiliatedvenuesin19citiesandsixcountriesjoinedaglobalcalltoactiononclimatechangeduringtheWorldWildlifeFund’sEarthHour.Theinternationalenvironmentalactionhasbeenheraldedastheworld’slargestmassparticipationeventinhistorybringingtogetherbillionsofpeoplein4,000citiesand125countriestodiscusstheimportanceoftakingactionnowandthepowereachoneofushastomakeadifference.Throughthesymbolicactofturningoffnon-essentiallightingforonehour,AEGvenuesempowerfanstoseethatsmallactionscanmakeabigdifference.

SomeofthehighlightsofAEG’sparticipationin2008and2009include:

l.a. livehostedtheculminatingEarthHourLosAngelesevent,whichtookplaceinnokia plaza l.a. live. It featuredLeezaGibbons,DJTonyOkungbowa,LosAngelesMayorAntonioVillaraigosaandothercommunityleadersandbroughtouthundredsofparticipantstowatchthelightsgodarkonstaples Center, nokia theatre l.a. live, Club nokiaandtherestofl.a. live.

nokia theatre times squarerecruitedperformerKellerWilliamstorecognizeEarthHourduringhisconcert,inadditiontodecoratingthevenuewithEarthHourpostersintheweeksprecedingtheshowandturningoffthemarqueeduringthehour.

the o2inLondon,Englandengagedover1.2millionfansbyturningoffthelightsontheiriconicspires,featuringEarthHourvideosandmessagingthroughouttheentertainmentdistrictandsendingaposteventemailblasttoover1millionguests.

acer arenainSydney,Australiaandallof11othervenuesintheAsiaPacificRegionmanagedbyaeg ogden turned offtheirlights.

Xl CenterinHartford,Connecticut,engaged7,500“WolfPack”HockeyfansbyrunningannouncementsandtheofficialEarthHourvideothroughoutthegame,dimminginsidelightingtoemergencylightlevelsandpoweringdownexternalmarqueeboards.TheBoyScoutscelebratedtheir100thanniversaryattheeventbycollecting10,000eyeglassesandcellphonesatthemainentrance.

environmental

performanCe

53

54

sustAinAblE dEsiGn And constructionGreenbuildingsareenvironmentallysound,energy-consciousandarelessexpensivetooperatethantraditionalbuildings.Inaddition,theyaresafe,healthyandcomfortable.

AtAEG,greendevelopmentallowsguestsandemployeestofeelgoodaboutthebusinesstheysupportandmeetsthegoalsofmunicipalities,stateagenciesandotherstakeholderstofurtherreducetheenvironmentalimpactofthefacilitiesmanagement,sportsandentertainmentindustries.

trying to tAKE rEsPonsibiLity for thE fuLL LifE of A buiLdingAEGdevelopedSTAPLESCenter(1999),theonlyvenuetohostfiveprofessionalsportsteamsatonetimeandTheHomeDepotCenter(2002),oneofthenation’smostcompletetrainingfacilitiesforOlympic,amateurandprofessionalathletes.AEGhassincedeveloped arosterofothersportsandentertainmentvenues(seechartbelow).

recent venues developed by aeg

Increatingthemostadvancedvenueexperienceforartists,teamsandfans,AEGwantedtomaintaininfluenceovertheentirelifeofabuilding,fromdesigntoconstructionandthenthroughongoingmanagementofthefacility.Toachievethis,in2007,AEGpartneredwithRomaniGrouptocreateICONVenueGroupLLCinwhatwouldbecomeaone-stopshoptodevelopandconstructeveryaspectofanentertainmentfacility.Overthelastseveralyears,AEG’sRealEstateandDevelopmentdivision,alongwithICON,setastandardforhowtodesignandconstructavenuewiththeneedsofthefan,artist,andsportsteaminmind.State-of-the-arttechnologyhasoftenbeenincorporated,notbecauseitwasenergy-efficient,butbecauseitimprovedtheguestexperience.AsAEGbegantodefineandimplementitscommitmenttoenvironmentalsustainabilitymorerecentlyinthepasttwoyears,nearlyallofthecurrentvenueswerealreadyunderconstructionanddesignplanshadbeenfinalized,leavingnoroomforadditionalenergysavingandvalue-addedenvironmentalmeasures.

Venue DateComplete

TheO2 June2007

NokiaTheatreL.A.LIVE October2007

SPRINTCENTER October2007

O2 World September2008

CitizensBusinessBankArena October2008

ClubNokia November2008

L.A.LIVE November2008

buiLdings in thE unitEd stAtEs ACCount for:•65%oftotalelectricity consumption

•36%oftotalprimary energyuse

•30%oftotalgreenhouse gasemissions

•136milliontonsofconstructionand demolitionwaste

•12%ofpotablewateruse(Source:USGBC.org)

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

sustAinAbLE dEsign guidELinEsMovingforward,AEGplanstointegrateanenvironmentalfocusintoitsdevelopmentprocessforallfuturevenuesandbuildings.Wearecurrentlydevelopingguidelinesforenvironmentallysustainabledesignandconstruction.TheguidelineswilldefineAEG’sexpectationsforallcontractors,subcontractors,architects,engineers,consultantsandvendorsworkingwithAEGonthedesign,constructionorrehabilitationofbuildingsandvenues.AEGwillusetheguidelinestoensurethatnewconstructionandrenovationsofbuildingswillbeasenvironmentallysensitiveaspossible.

using thE LEEd frAMEWorK for AssEssing buiLding PErforMAnCEIn2009,AEGbecameamemberoftheU.S.GreenBuildingCouncil(USGBC).TheUSGBC,acoalitionofleadingorganizationsfromthebuildingindustry,establishedtheLeadershipinEnergyandEnvironmentalDesign(LEED)ratingsystemtocertifybuildingsas“green”basedonapointssystemofenvironmentalmeasuresimplemented.Since2009,webegantointegratetheLEEDratingsystemcriteriaintoourconstructionprojects.

ThePortlandTrailBlazersandAEG’smanagementteamatRoseGardenbecamethefirstsportsarenaandNBAteamtoachievetheGoldStandardforLEEDExistingBuildingOperationsandMaintenance(EBOM)certification.AllfutureAEGdevelopmentswillbegintoassessLEEDcertificationtodeterminewhethertopursueitoruseoneoftheLEEDratingsystemsasaguidelineduringdesignanddevelopment.

AttheL.A.LIVEsports,residentialandentertainmentdistrict,thenewJWMarriottandRitz-CarltonHotelsandRitz-CarltonResidencehavefollowedtheLEEDforNewConstructionstandardandareapplyingforacertificationinthefallof2010.

OurexecutivesandengineersarenowawareofLEEDandwillusetheframeworkfordesigningandre-commissioningbuildingsinthefuture.

RoseGarden—Portland,OR

environmental

performanCe

55

56

cAsE study: thE o2 - sustAinAblE from thE Ground upFromthefirstday,theredevelopmentoftheGreenwichPeninsulaintoaworld-classentertainmentdestinationwasahighlyscrutinizedproject,subjecttocontinualgovernmentauditsandmonitoring.Takingaproactiveapproach, AEGworkedwithgovernmentagenciestodevelopasustainabilitydevelopmentframeworkusedtoguidethedesignandconstructionphasesofthismulti-venuedestination.BeforeTheO2wasbuilt,anentertainmentdistrictofthissizehadneverbeenattemptedinEurope.Today,thedistrictfeaturesastate-of-the-artlivemusicvenue,an11-screenmulitplexcinema,anexhibitioncentre,anentirestreetofbarsandrestaurantsandatthehearta20,000capacityarena-allundertheiconicroofofTheO2onGreenwichPeninsula.

AEG’sdevelopmentteamwasabletomeetandexceedthesustainabilityobjectivesidentifiedduringtheinitialscopingstageofprojectdevelopmentwiththefollowing:

TheO2underconstructioninMay,2007—London,England

promoted material effiCienCy

•reusedseating•sustainable whiteoak

•precastconcreteandoff-sitemanufacturing

•naturalstonefinishingmaterials

maXimiZed use of loCal labor

•14%oftheconstructionworkforcewasfromthelocalGreenwicharea

•over650workersreceivedacertificate undertheConstructionSkillsCertificationScheme

minimiZed transportation

•bulkmaterialsdeliveredusing RiverThames

•lorrytransportationsminimized

•localmaterialsusedwhereverpossible

minimiZed ConstruCtion Waste•wastesegregationforrecyclingandreuse

•oldconcretecrushedandusedonsite

•unusedlumberandplasterboard‘taken-back’bysuppliers

promoted energy effiCienCy

•variablespeeddrivesonfansandpumps

•naturalday-lighting•centralizedenergymanagementsystem

•LEDlightingsystems

56

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entpartnersh

ipsoffiCe of

sustainability

cA

sE stu

dy

57TheO2completedinJune,2007—London,England

TheO2maintainsitscommitmenttosustainabilityinitsday-to-dayoperationsanditisthefirstAEGvenuetosetclearlydefinedobjectivesandtargetsaroundenvironmentalperformance.

thE o2 objECtivEs And tArgEts for sustAinAbLE PErforMAnCE

WAstE And rECyCLing•100%ofkitchenfoodwastecomposted•100%ofglassbottlesprocessedintobuildingsand•75%ofcardboardrecycled

EnErgy usE•LEDandCFLlightingsystems•Computerizedbuildingenergymanagementsystem•Variablespeeddrivesonpumpsandfans

trAnsPort•Goalof75%non-carvisitation•6newfastriverferries•Improvedtubeandbusservice•Restrictiononvisitorparking

CoMMunity EngAgEMEnt•40%ofoperationaljobsareheldby Greenwichresidents

•Schoolprograms•TheO2Foundationestablishedtosupportsport, music,andarts

“the role of the o2 remains critical in terms of ensuring the regeneration is not just a physical one, but has positive impacts socially, culturally and economically for local people.”

—DavidCampbell,CEOandPresidentAEGEurope

environmental

performanCe

57

58

““We are very fortunate that our owner, the City of Minneapolis, is progressive in their planning. When target Center’s need for a roof replacement became a priority, AEg was able to work in partnership with the city to develop a plan that in the end incorporated a functional yet sustainable roof structure. target Center’s green roof not only adds to the vitality and longev-ity of the arena, it more importantly is environmentally friendly and benefits the community overall.” –TomReller,DirectorofOperations,TargetCenter

TargetCenterGreenRoof—Minneapolis,MN

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entenvironm

ental perform

anCepartnersh

ipsoffiCe of

sustainability

5959

environmental

performanCe

59

cAsE study: fifth lArGEst GrEEn roof in u.s.AEG’smanagementteamatTargetCenterinMinneapolis,Minnesota, isaproudpartnerintheinstallationofthefifthlargest“green”vegetated roofintheUnitedStates.AspartofalargerprojecttoupgradeTargetCenter,theCityofMinneapolischosetoretrofittheroofofthemainarenawitha2.5-acregreenroofasopposedtosimplyreplacingthesurfacewithaconventionalcovering.Asfacilitymanager,AEGwasabletosupportthe CityofMinneapoliswiththeplanningandinstallationofthegreenroofin theSummerof2009.

Why hAvE A grEEn roof?Agreenroofreferstotheroofsurfaceofabuildingwherevegetationhasbeenplantedontopofsoilandawaterproofmembrane.Besidetheaestheticbenefitsofbeingsurroundedbygreenspace,greenroofsprovideawidearrayofenvironmentalbenefits,suchasthermalinsulation,filtrationoftoxicwaterbornepollutants,recoveryofnaturalhabitatareas,andhelpingtodecreaseurbanairtemperaturescausedbytheurbanheatislandeffect.OfcriticalimportancetotheCityofMinneapolisisthegreenroof’sabilitytoabsorbstormwaterandreleaseitslowlyoveraperiodofseveralhours.Greenroofsystemshavebeenshowntoretain60-100percentofthestormwatertheyreceive.Thebenefitofthisslowreleaseofpollutant-freerainwatermeansthatmunicipalstormwatersystemsarelesslikelytodischarge“dirty”citywaterdirectlyintotheMississippiRiverduringheavyrainevents.

thE first grEEn roof At A sPorts ArEnAOverthecourseoftwodays,a165-toncranehoistedfivetruckloadsofplantmaterial,whichincluded900rollsofpre-grownvegetatedmatsofsedumandnativeplants,ontopofthearena’smainroof.Usingablowertruck,morethan540cubicyardsofsoilwasblown165feetintheairontotheroof.Elevenmilesofwater-efficientirrigationplumbingwasinstalledand14,000concretepaverswerelaidforfirebreakandroofsurfaceprotection.

Tomaximizestormwaterretentionandplantvigor,thegreenrooffeaturesa2.75-inchdeepgrowingzoneinthecenterareaandadeeper3.5-inchgrowingzonearoundtheperimeter.Expertssaythatthisdepthshouldhandlerainfalleventsofupto0.9incheswithoutrunoff.Apre-grownmatofsedumandnativegrasscreatesthebaseofthegreenroofsystemthathasbeencomplementedbyadditionalplantingsofvegetationnativetoMinnesotaprairies.

cA

sE stu

dy

60

corporAtE sociAl rEsponsibility AsmentionedintheReportingMethodologySection,wehavefollowedthe GRIframeworkforsustainabilityreportingbuthavenotincludedtheGRISocialIndicators.Inthefuture,wewillprovideanalysisonsocialindicatorsthatareapplicabletoourindustry,suchasLaborPracticesandSociety. Atthispointwearestilldevelopingawaytoaccuratelymeasuretheseadditionalindicatorsacrossourdifferentcompaniesandfacilities.

AEGhasalwaysplacedahighvalueoncontributingtothecommunitiesandemployeeswithwhichwedobusinessandbelievesthatcorporatephilanthropy,treatingouremployeeswellandinvestinginthecommunitieswhereweoperateareessentialbusinesspractices.

CoMMunity AffAirsSinceitsinception,AEGhashadafocusoncorporatephilanthropyandcommunityinvolvement.

Mission: Ourprimarymissionistohelpimprovethequalityoflifeforchildrenandfamilies.DuetothediversityofneedsthroughouttheU.S.andinareasabroadwherewework,wedonothaveaonesizefitsallmodel.Insteadweexamineeachcommunity,developpartnershipswithnon-profitorganizationsandworklocallytoidentifyspecificneeds.

LosAngelesKingsCAREFoundation

LucRobitaille,President,BusinessOperations, LosAngelesKings

60

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entenvironm

ental perform

anCepartnersh

ipsoffiCe of

sustainability

61

Carson,CA

our work is focused on the following areas:education related initiatives:Throughawiderangeofpartnerorganizations,weinvestineducationalprograms,suchasafter-schooleducationalenrichment,literacyimprovementandpartnerships withhighereducationalinstitutions.

health and social services: Weprovidefinancialsupporttolocalandnationalnon-profitorganizationsthataddresshealthandhumanserviceneedssuchasCityofHope, theAmericanRedCross,andtheAmerican DiabetesAssociation.

Community and economic development: Wehavemadeinvestmentsinareassuchasaffordablehousingdevelopment,parksandgreenspacedevelopment,homelessness,violencereductionprogramsandlocalhiringinitiatives.

Culture and arts:Weprovidesupportforartsandculturalprograms,especiallyintheareaofmusicand art education.

our Contributions:Overthelast10years,AEGhascontributedover$65millionindirectfinancialandin-kindsupportofcharitable,communityandcivicprograms.Weareproudofourcontributionsandaswelooktothefuture,wehopetosetnewstandardsforourowncivicandcommunityparticipation.

environmental

performanCe

61

LosAngeles,CA

LosAngeles,CA

�

Carson,CA

Houston,TXManchester,NH

KansasCity,MO

London,England

AEg foundAtions:

gEtting LoCAL PEoPLE into LoCAL jobsTheO2inLondon,EnglandhaslaunchedTheFoundationDegreeinEvents,VenuesandHospitalityManagement(AEG)inpartnershipwiththeUniversityofGreenwichandGreenwichCommunityCollege.Thisuniqueprogram,anindustryfirst,providesemployeesandlocalresidentswithhands-onworkexperienceandunprecedentedaccesstoseniorteamswithinAEG,equippingyoungtalentwiththespecificskillsrequiredforourbusiness.

London,England

62

EMPLoyEE EngAgEMEntInadditiontofinancialandin-kindprogramsthatAEGoffers,ouremployeesalsocontributethroughvolunteerserviceandvoluntaryemployeepayrolldeductionprograms.VolunteerinitiativesaredeterminedbylocalneedsandrangefromweeklyliteracytutoringprovidedbyemployeesatSTAPLESCentertoannualprojectssuchastheHomeDepotCenter’sannualEarthDayReadingGarden,whereemployeesbuildareadinggardenforanewschooleachyear.

Inasimilarspirit,AEGemployeesalsosupportamyriadofnon-profitorganizationsbyparticipatinginanemployeepayrolldeductionprogram.Eachmonth,over25percentofouremployeesmakeavoluntarydonationinsupportoflocalnon-profitorganizations.

WorKforCE divErsityAEGiscommittedtodevelopingadiverseworkforcethatreflectsthelocalcommunitywhereweoperate.Sinceitsinception,AEGhasdevelopedsuccessfulhiringinitiativesthataretailoredto thelocalneedsofaspecificcommunity.Theseeffortsacross thegloberesultinsuccessstoriessuchasTheO2’sMajor EventsVolunteerProgrammewhichgavelocalunemployedresidentsworkexperienceandintroductionstojobopportunitieswithover50percentofparticipantsgainingemploymentbothinsideandoutsideofAEG.

Asanemployer,westriveforanenvironmentthatrecognizesandrewardsdifferencesbyvaluingwhateachpersoncanbringtotheorganizations,andinturn,whattheorganizationcandotoencourageandsupportthegrowthofeachindividual.Inadditiontolocalhiringinitiatives,AEGhasdevelopedasuccessionprogramthatprovidestrainingandopportunitiesforAEGemployeestogrowfromwithin.

suPPLiEr divErsityAEGrecognizesthebusinessvalueofprovidingequitableaccesstoprocurementopportunitiesforminority-andwomen-ownedbusinesses.ThiscommitmentisthedefiningprincipalofAEG’sSupplierDiversityprogram,abusinessstrategymanagedwithinthePurchasingDepartment.SupplierDiversityisanefforttostrategicallysourceproductsandservicesfromdiverselocalvendorsforthemutualbenefitsofreducedcostsanddeliverytime,ahealthierlocaleconomy,andstrongerrelationshipswithmulticulturalcustomers.

EarthDayReadingGarden.HomeDepotCenterFoundation—Carson,CA

TimLeiwekespeakstoChallengersBoys&GirlsClub

Company

profileintroduCtion

reportingm

ethodology

environmental

goalspoliCies &

m

anagem

entenvironm

ental perform

anCepartnersh

ipsoffiCe of

sustainability

63????

AEGhashadanactivesupplierdiversityprogramthathasbeenfocusedinregionswithintheUnitedStateswheremunicipalitiesalsosupportprogramsfordiversebusinesses.Movingforward,AEGiscommittedtoadoptingsupplierdiversitybestpracticesacrosstheentirecompany.Weunderstandthatthiswillbeachallengethatwillrequiregreaterengagement,accountability,andcommunicationamongallAEG’ssubsidiariesandaffiliates.Furthermore,wewillbemeasuringandreportingonourprogresswithspecificmetrics,sowecanbettermeasurethesuccessofsupplierdiversityinitiativesandintegratethemintoAEG’soverallcorporatestrategy.

2010 supplier diversity goals• ProcurementOpportunities:Providefirstandsecond–tierprocurementopportunitiestominority-andwomen-ownedbusinesses.Diversebusinessesfacethechallengeofcompetingagainsttheresourcesoflargecorporations. Forthatreason,weaimtoconcentrateonencouragingbusinessrelationshipsbetweenourcorporatepartners anddiversesuppliers.

• MeasurementandTracking:Expandtechnologyandtoolstoreportpurchasingperformancewithdiversesuppliers.

• SupplierDevelopment:Developcapacitybuildingprogramsandbusinessreviewstomitigateriskandtohelpdiversesuppliersensurebusinessviability,growth,andcompetitiveness.

• Outreach:Continuedoutreachtoidentifyqualifieddiversebusinessesandestablishpartnershipswithgovernmentagenciesandadvocacyorganizationstoadvancethesharedmissionofacceleratingthegrowthofdiversesuppliers.

2009 success stories• AEGwasabletoworkwithSTAPLESBusinessAdvantage,AEG’spreferredofficesolutionprovider,toawardbusinesstodiversemanufacturers,whonowprovidepaperandotherofficeproductstoAEG’soffices.

• AEGPurchasinglaunchedanonlinesuppliermanagementsystem(https://supplier.aegworldwide.com).Thispaperlesssystemactsasacentralsupplierdirectoryande-sourcingtoolprovidingvisibilityfordiverseand non-diversebusinesses.

• Thesupplierdiversityteamengagedinternaldepartmentsinbusiness-to-businessmentoringprovidingaccesstoresources,industryexpertise,businessopportunitiesandcorporaterelationships.In2008,AEGmentoredTheBakerGroupwhowentontowinthe2009SupplieroftheYearAward(Class1)fromSouthernCaliforniaMinorityBusinessDevelopmentCouncil.OthercompaniesmentoredbyAEGincludeDataOptekandThorConstructionCompany.

AEGsponsoredtheLosAngelesMinorityBusinessOpportunityCenter’s14thAnnualMinorityEnterpriseDevelopmentAwardsatClubNokia

environmental

performanCe

63

64

pArtnErshipsAEGknowsthatourenvironmentalsuccessesdependonteamworkwithinternalandexternalstakeholderswhocanbringotherskillsetstothetable.AEG’spartnershipswithnon-profits,governmentprogramsandcorporatepartnersprovideaccesstobestpractices,up-to-dateinformationonenvironmentalregulations,educationalsupportforstaffandguestsandresourceassistancewithimplementingprograms.TheseongoingandevolvingpartnershipsarekeytoAEG’sabilitytomakemeaningfulprogresstowardsoursustainabilitygoals.

non-profit

government

Corporate partners:Amongthecompaniesthatexplicitlybuildenvironmentalprogramsintotheirsponsorship relationshipwithAEG.

ProvidesCoca-Colabottleshapedrecyclingreceptaclestovenuestoencouragegueststorecycle.Installseconomizersonthemotorsinvendingmachinestoreduceelectricity.

Integratesenvironmentalmessagingintoallsponsorshipmessaging,includingoverseveral“WMThinkGreen”GameswiththesportsteamsindifferentAEGvenues.

AdvertiseshybridtechnologyatAEGvenuesandprovidesHybridcarsforspecialevents.

AssistAEGenvironmentalpurchasingeffortsbyprovidingmonthlyreportontotalpercentageofrecycledcontentproductsandhighlightingenvironmentallypreferableproductsintheonlinecatalogueforAEGinternalpurchases.

LosAngelesConservationCorps(USA)LongBeachConservationCorps(USA)HealtheBay(USA)HabitatforHumanity(Int’l)InternationalAssociationforAssemblyManagersJulie’sBicycle(UK)

NaturalResourcesDefenseCouncil-E2BusinessPartnership(USA)RocktheEarth(USA)ResponsiblePurchasingNetwork(USA)U.S.GreenBuildingCouncil(USA)WorldWildlifeFund(Int’l)

CaliforniaGreenWorkforceCoalition-IndustryFlexYourPower(California)EPAEnergyStarPartner(USA)

EPAGreenPowerPartner(USA)EPAWasteWisePartner(USA)EPAWaterSensePartner(USA)

partnerships

65

A fAmily pArtnErship

ThedevelopmentofAEG’sfirstannualEnvironmentalSustainabilityReportandtheEcometricsenvironmentalperformancetrackingsystemusedtocollectdataforthereportweremadepossiblethroughtheguidanceandassistanceofEcologixbyXanterra,anenvironmentalconsultingdivisionofXanterraParks&Resorts,Inc.(Xanterra).XanterraisalsowhollyownedbyTheAnschutzCorporation,AEG’sparentcompany.

AstheUnitedStates’largestnationalandstateparkconcessioner,XanterraParks&Resorts’operationsspanthecountry—fromYellowstonetotheGrandCanyon.Thecompany’slegacyofhospitalityleadershipextendsmorethenacentury.Xanterrapropertiesofferawiderangeofrecreationalfacilitiesandexperiences—fromconferencecenterswithgolfcourses,tenniscourts,andspastohistoricparklodgesandcabinsinwildernesssettings.Thecompany’s8,200employeesoperate33hotelsandlodgeswithmorethan5,000guestrooms,53retailstores,66restaurants,threemarinas,fivegolfcourses,and1,800campsiteswithinnationalandstateparks.

Operatinginsomeofthemostbeautifulplacesonearth,Xanterrahaslongbelievedtheyhaveauniqueresponsibilitytopushtheedgeofenvironmentalresponsibilityinthetourismindustry.ThroughtheframeworkofXanterra’sEcologixenvironmentalprogram,Xanterrahasinstitutionalizedinitiativesthathelpprotecttheecosystemsthatsurroundthecompany’shotels,shops,restaurants,andsupportfacilities.

Xanterrahasreceivedmorethan60nationalandinternationalenvironmentalachievementawardsand20third-partyenvironmentalcertificationsfortheirenvironmentalperformanceoverthepastdecade.Thisyear,XanterrawillsoonreleaseitsfourthSustainabilityReport.

AkeypartofXanterra’sprogramistheirEcometrixenvironmentalperformancetrackingsystem.WorkingcloselywithEcologixbyXanterra,AEGhasadaptedXanterra’sprovenmethodologytotheliveentertainmentandsportsindustrieswiththecreationofAEG’sEcometrics.

TofurtherenvironmentalsynergiesandAEG’senvironmentalperformance,AEGhopestocontinueitspartnershipwithXanterraintheforeseeablefuture.

LowerFallsoftheYellowstone, YellowstoneNationalPark,WY

GrandCanyonNationalPark,AZ

66

officE of sustAinAbilitymEssAGE from mAnAGEr, sustAinAbility proGrAmsGrowingupinLosAngeles,Iconsideredmyselfenvironmentallyconsciousbecause Irecycledandspentmysummerspracticing“LeaveNoTrace”campingasaVenturer Scout.Itwasn’tuntilIwenttocollegethatIrealizedIwasbarelyscratchingthesurface oftheenvironmentalissuesthatfacenotonlyAmericansocietybuttheworld.

MyimmersionintotheprinciplesofsustainabilitybeganwhenIattendedWillametteUniversityinSalem,Oregon,andlaterworkedwiththeOregonLeagueofConservationVoters.

Afteryearsofstudyingwhattheleadingbusinessleaders,economists,politicians,andenvironmentalscientistshavetosayaboutthestateofourworld,themessagewasclearandconsistent:wemustworkconcertedlytoprotectandpreserveourplanet’secologicalsystemsforourownhealthandprosperityaswellasthatofourchildren.Otherwisewewillfaceaworldofdiminishingandunequalresources,increasedpollutionofoursoil,airandwater,andpotentiallyirreversibleimpactsfromclimatechange.

Solutionstosuchfar-reachingglobalenvironmentalproblemsarenoteasy.Fordecades,industries,governments,andnon-governmentalorganizationsworkedonsolutionsinthesilooftheirownsectors.Butinrecentyears,asthetechnologicalrevolutionhasallowedpeopleacrosscontinentstoconnectinamatterofseconds,thepublicconsciousnessoftheglobalecologicalandenvironmentalimperativehasgrowntoanall-timehigh.Proactivebusinesses,non-profitsandgovernmentsnowassesstheirenvironmentalandsocialimpactsandwillinglypartner toidentifysolutionsandtransparentlyreporttheirimpactstoamorevigilantpublic.

Now,assustainabilitymanagerforAEG,amajorplayerinCorporateAmerica,centeredontheentertainmentandsportsindustries,Ifindmyselfattheforefrontofboththechallengesandpossibilitiesforabettertomorrow.

IdentifyingsolutionstoAEG’senvironmentalchallengesisnoteasy.Butwehavealreadymetoneofthegreatestchallenges,bringingtogetherallofourdivisions,spanningdifferentindustries,todevelopourAEG1EARTHvisionandlongtermgoals.Now,wesharethechallengeofmeasuringourenvironmentalperformanceagainstourgoalsandmakingthedecisionsthatwillhelpusachievethem.Togetherwewillcontinuetoidentifyprojectsandpartnersthatcanhelpusreduceourresourceconsumptionandinspireacultureofenvironmentalstewardshipamongourvariousstakeholders.

WithAEG1EARTH,wehopetoprovethatenvironmentallyresponsiblecorporatepracticeisfeasible,profitableandverifiableevenwithintheevergrowing,fast-moving,anddynamicsportsandentertainmentindustries.

ThisreportisevidenceofAEG’sdesiretoraiseitsenvironmentalresponsibilitytoanewlevelandhopetherebytoinspiretransformationinthefacilitiesmanagement,sportsandentertainmentindustries.

JenniferRegan Manager,SustainabilityPrograms

offiCe ofsustain

ability

67

mEssAGE from chiEf AdministrAtivE officErWhenAEGbeganintegratingtheprinciplesofenvironmentalsustainabilityintoourcorporatestrategy,weknewwecouldonlyachievethismissionifwealignedouractivitieswithourcorebusinessobjectivesandplacedtheprograminadivisionthattouchedallofAEG’soperatingentities.

Attheoutset,wesoughtasustainabilityleaderwhoblendspassionwithresourcefulnessandpracticality.Shortlythereafter,keydepartmentheads,includingthoseintheAdministrationDivision,embracedtheirrolesinsettingthetonefortherestofthecompany.Withafocusoneducation,AEGHumanResourcesincorporatedenvironmentalmessagingintoemployeecommunicationsateveryopportunity.AEGPayrolltransitionedpaper-basedprocessestoelectronicmethods.AEGInformationTechnologyoversawtheimplementationofacompanywidedouble-sideprintpolicy.AEGRiskManagementevaluatedhowthecompanyshouldaddresshazardouswaste.Inadditiontooverseeingtheday-to-dayoperationsoftheSustainabilityprogram,AEGPurchasingimplementedanenvironmentallysoundpurchasingpolicyandadministersacomprehensiveenergy-conservationplan.

Together,weassessedtheenvironmentalfootprintofallAEGdivisionsatalllevels.WedeterminedthatAEG’slargestresourceconsumptionandbestopportunitiesforimprovementareatthefacilitiesownedormanagedbytheAEGLiveandAEGFacilitiesdivisions.Whileweworkedtomeasureourenvironmentalperformanceandidentifyefficiencyprojectstoreduceoperatingcostsforfacilities,wealsoworkedtodevelopanenvironmentalvisionaccompaniedbyshortandlongtermgoalsthatsteerenvironmentalprocessimprovementfortheentirecompany.

Asweproudlyreleaseourfirstsustainabilityreport,AEGhassucceededindevelopingaprogramthatdrivesdecisionswhichpromotecorporateresponsibility,easilyadaptstochangingdemandsintheindustryandmakesadifference.AEG1EARTHishere.

KevinMcDowell ChiefAdministrativeOfficer

800WestOlympicBoulevard • LosAngeles,CA90015www.aegworldwide.com

CopyrightAEG2010