ESG Framework: A Basic Overview
As the focus on sustainable and socially responsible practices intensifies, the Environmental, Social, and Governance (ESG) framework is receiving considerable attention across various industries. The ESG framework addresses a company’s environmental commitments, its social impact, and its governance structure. It spans a wide array of topics, ranging from pollution and climate change to human rights, privacy, corporate transparency, and more.
ESG’s Role in the iGaming Industry
The ESG framework is becoming increasingly relevant to the iGaming industry. As Andrew Millington, the head of UK equities at Aberdeen Standard Investments, explains, “If investment managers who care about ESG shun companies within that sector, we have no influence or oversight to affect positive change.” The ESG framework offers a way for iGaming companies to demonstrate their commitment to these issues, which can influence investment decisions.
ESG Implementation in iGaming: An Ongoing Process
There are signs that the iGaming industry is beginning to incorporate ESG considerations into its practices. The Malta Gaming Authority, an internationally recognized licensing body, has indicated its support for ESG, encouraging its licensees to report on their ESG performance.
Moreover, there is a link between ESG and responsible gambling practices, which include player self-exclusion policies and transparency on the part of online casinos. Some iGaming companies have already begun to include ESG practices in their operations. Kindred Group, for example, discloses the percentage of its revenue derived from harmful gambling, while Greentube has expressed commitment to a healthy work environment, carbon reduction, and compliance with regulations.
While these are notable examples, the implementation of ESG across the iGaming industry remains a work in progress, and it will be interesting to observe how this trend develops over time.