Climate Change Data

Veikkaus Oy

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:14,266 tCO2e (market-based)
Scope 1 Emissions:2,018 tCO2e
Scope 2 Emissions:27,440 tCO2e
Renewable Energy Share:67%
Total Energy Consumption:271,219,386 kWh
Water Consumption:117,807 m3
Waste Generated:4,624 tons

ESG Focus Areas

  • Safer betting and gaming
  • Investing in people and communities
  • Reduce environmental impact
  • Engaging with stakeholders

Environmental Achievements

  • 14% reduction of GHG emissions from the prior year, with 100% renewable energy in the UK and ROI retail estate

Social Achievements

  • Launched our new Diversity, Equity, and Inclusion (“DEI”) strategy
  • Increased UK contributions to Research, Education and Treatment (“RET”) to 0.75% of GGY
  • Partnered with McLaren Racing to launch a brand-new Returnship programme

Governance Achievements

  • Publication of Entain’s first-ever Board Diversity Policy
  • Rolled out an extensive ‘Big Six’ training programme covering areas such as Code of Conduct, prevention of bribery & corruption and tax evasion, governance, risk and compliance
  • From February 2023, 100% of our revenues are from regulated or regulating markets

Climate Goals & Targets

Long-term Goals:
  • Net Zero greenhouse gas emissions by 2035
Medium-term Goals:
  • Achieve a 29.4% reduction in Scope 1, 2, and 3 emissions by 2027
Short-term Goals:
  • Further rollout of ARC™ across all markets and retail shops
  • Increase UK contributions to RET to 1%

Environmental Challenges

  • Regulatory headwinds, particularly in the UK, impacting Online revenues
  • Challenging economic environment in the Baltics
  • German market challenges due to new regulation and lack of regulatory enforcement
Mitigation Strategies
  • Continued development and enhancement of ARC™ player protection programme
  • Focus on expanding recreational customer base
  • Leveraging the Entain Platform to drive growth and efficiencies
  • Acquisitions to expand market access and product offerings

Supply Chain Management

Supplier Audits: 19 suppliers surveyed (33% of scope 3 emissions)

Responsible Procurement
  • Collaboration with Unseen to strengthen procurement processes and policies
  • Use of EcoVadis platform to evaluate key suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Disruption of live events due to extreme weather
  • Impact of extreme weather events on key locations and suppliers
  • Increased costs due to increasing temperatures
Transition Risks
  • Increased regulatory requirements to disclose climate impacts
  • Changing customer behaviour
  • Reaching Net Zero by 2035 target
  • Increased stakeholder scrutiny on Entain’s emissions
Opportunities
  • Development of energy-efficient products and services
  • Attracting and retaining talent
  • Building trust with customers

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 140001:2015, ISO 45001:2018, ISO27001

Third-party Assurance: Carbon Trust

Awards & Recognition

  • GamCare’s Advanced Safer Gambling Standard
  • SBC’s Global Socially Responsible Operator of the Year 2022
  • EGR North America Safer Gambling Provider of the Year 2022

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2,279 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:281 tCO2e/year
Scope 2 Emissions:1998 tCO2e/year (market-based), 1420 tCO2e/year (location-based)
Scope 3 Emissions:42404 tCO2e/year
Total Energy Consumption:8,737 MWh/year (electricity), 6,679 MWh/year (heat)

ESG Focus Areas

  • Responsible gambling
  • Employee well-being
  • Environmental responsibility
  • Climate change mitigation
  • Ethical conduct

Environmental Achievements

  • Scope 1 & 2 GHG emissions reduced by 0.9% (despite electricity consumption decrease of -27%), Scope 3 GHG emissions reduced by 9.5%
  • Science Based Targets initiative (SBTi) approved in October 2023

Social Achievements

  • Introduced care concept for high-risk gamblers, exceeding the target of 3,000 care calls with 3,700 calls.
  • Mandatory identification for ticket-based games introduced in May 2023, preparing for scratchcard identification in 2024.
  • Reached target of 2.5 million registered customers.
  • Ranked second in the Oikotie Responsible Workplace survey.
  • Introduced a Whistleblowing Channel.

Governance Achievements

  • Updated Sustainability Programme.
  • Introduced eLearning courses on sustainable supplier management and human rights impacts.
  • 98% completion rate for mandatory Code of Conduct online training.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2035.
Medium-term Goals:
  • Reduce absolute scope 1 and 2 GHG emissions by 42% by 2030.
  • Reduce absolute scope 3 GHG emissions by 25% by 2030.
Short-term Goals:
  • Full identification for all games (including scratchcards) by 2024.
  • Further enhance safer gambling using data and AI in 2024.

Environmental Challenges

  • Decreasing profitability of Veikkaus' own gaming venues due to changes in consumer behavior, digitalization, and identification requirements.
  • Gambling industry criticism and debate in Europe and elsewhere.
  • Transition to a partial multi-license system in 2026.
  • Increased lottery tax.
Mitigation Strategies
  • Cooperation negotiations leading to the closure of 19 arcades and Casino Tampere, but also offering extensive severance packages to dismissed employees.
  • Reformed organization to be more customer-oriented and agile.
  • Significant investments in strengthening competitiveness, particularly in the digital channel.
  • Rapid preparations for a possible multi-license system.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct incorporated into 77% of contracts.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (GRI 1: Foundation 2021)

UN Sustainable Development Goals

  • Good health and well-being
  • Gender equality
  • Decent work and economic growth
  • Climate action
  • Peace, justice and strong institutions
  • Partnerships for the goals

Veikkaus' sustainability goals are linked to these SDGs.