Climate Change Data

Environmental Metrics

ESG Focus Areas

• Anti-corruption
• Supplier relations
• Code of Conduct
• Equality
• Female Leadership
• Employee Mobility
• Life Balance
• Compliance
• Accessibility
• Environment
• Training & Development
• Internal Communication
• Editorial guidelines & policy
• MTG United for Peace
• Children's welfare
• Environmental sustainability

Environmental Achievements

• Reduced CO2 emissions by 6% per employee against the 2009 baseline.
• Reduced energy consumption by 16%.

Social Achievements

• Launched "Modern People" online development and competence tool for employees.
• Implemented female leadership network in Scandinavia.
• Donated 146 million SEK worth of airtime for worthy causes.
• Organized the second MTG United for Peace Cup.

Governance Achievements

• Implemented a new anti-bribery and corruption policy.
• Completed a supplier self-check document to assess supplier compatibility with MTG standards.

Climate Goals & Targets

Environmental Challenges

• Need to improve employee training and development.
• Need to improve internal communication.
• Addressing corruption, human and labor rights issues, and climate change while being sensitive to local cultures.
• Managing risks associated with extreme weather, tougher environmental legislation, and higher energy and fuel costs.

Mitigation Strategies

• Benchmarking analysis of training and development within the industry.
• Developing a new internal communications strategy.
• Implementing a new anti-corruption policy and training programs.
• Monitoring energy consumption and working to reduce it.
• Maintaining open dialogue with suppliers.
• Implementing country-specific green action lists.
• Encouraging video conferencing over travel.

Supply Chain Management

Supplier Audits: Self-check document completed for top 20 suppliers in each company and all partnerships and joint ventures.

Responsible Procurement

• Supplier Principles Policy outlining expectations for suppliers regarding human rights, workplace safety, fair wages, environmental protection, and compliance with the law.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging facilities and disrupting operations.

Transition Risks

• Tougher environmental legislation and higher energy costs.

Opportunities

• Developing energy-efficient products and reducing carbon footprint.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (MTG Radio)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient set-top-boxes.

Awards & Recognition

• FTSE4Good Index Series membership
• Awards received by various MTG companies for creative services, digital newsletters, and other initiatives.

Environmental Metrics

ESG Focus Areas

• Anti-corruption
• Suppliers
• Code of Conduct
• Equality
• Female Leadership
• Mobility
• Life Balance
• Compliance with Broadcasting Regulations
• Accessibility
• Environment
• Training & Development
• Internal Communication
• Editorial Guidelines & Policy
• MTG United for Peace

Environmental Achievements

• Reduced CO2 emissions by 6% per employee from a 2009 baseline (largest reduction in facility emissions)
• Increased carbon disclosure score from 70 to 81 in the Carbon Disclosure Project
• Improved carbon performance rating from D to B in the Carbon Disclosure Project

Social Achievements

• Implemented a female leadership network in Scandinavia and a similar project group in the UK
• Rolled out a reviewed and improved employee benefits plan in the UK (Life Balance Policy)
• Incorporated School of Tolerance into MTG United for Peace Cup tournaments, reaching approximately 780 children

Governance Achievements

• All employees trained in updated Code of Conduct and anti-corruption policies
• Benchmarked salary differences in all countries
• Implemented new routines to ensure 100% of relevant employees are updated when compliance changes occur

Climate Goals & Targets

Environmental Challenges

• Extreme weather events could damage facilities, disrupt staff commute, and threaten content production and distribution
• Potential increases in energy tariffs and higher fuel costs
• New legislation for set-top-box manufacturers

Mitigation Strategies

• Processes in place to resolve critical situations from extreme weather
• Monitoring energy consumption and minimizing environmental impact
• Pay-TV operations and set-top-box suppliers are signatories of the Voluntary Industry Agreement to Improve the Energy Consumption of Complex Set Top Boxes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Principles Policy and self-check document for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, storms)

Transition Risks

• Increased energy costs
• Stricter environmental legislation
• New regulations for set-top-box manufacturers

Opportunities

• Ability to encourage positive environmental behavior through media reach

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Ethos International

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Viasat set-top-boxes supporting Auto Power Down (APD) and consuming <0.5W in passive standby

Awards & Recognition

• Dow Jones Sustainability World Index
• FTSE-4Good Index Series
• European Excellence Corporate Social Responsibility award (Viasat)
• Radio Station of the Year (Radio1)

Environmental Metrics

ESG Focus Areas

• Media responsibility
• Anti-corruption
• Female Leadership
• Life Balance
• Environment
• Training & Development

Environmental Achievements

• Improved rating in the Carbon Disclosure Project’s 2013 assessment for the fifth year in a row
• All manufactured Viasat set-top-boxes support Auto Power Down (APD) and the power consumption in passive standby is <0.5W.

Social Achievements

• Inclusion in the Dow Jones Sustainability Europe Index for the first time
• Nova operations in Bulgaria won the Biggest Corporate Donor Award
• Marek Lindmaa awarded the UNICEF Bluebird Prize for his charity campaign

Governance Achievements

• Established anti-corruption training for all employees (in progress)
• Implemented Code of Conduct e-learning course for new employees (2 of new employees completed the course within two weeks)
• Evaluated female leadership network in Scandinavia and project group in the UK
• Broadened scope and joined Swedish pilot project 'Women Up'

Climate Goals & Targets

Environmental Challenges

• Rapid change in the digital environment
• Competition for viewers, pay TV subscribers, advertising and distribution

Mitigation Strategies

• Investments in programming content, new channels, digital development, technology platforms and marketing
• Adaptation to new technologies and distribution platforms
• Widespread distribution through third-party networks and online platforms
• Development of online audience and advertising market shares through catch-up video on demand services

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 guidelines

Awards & Recognition

• Biggest Corporate Donor Award (Nova, Bulgaria)

Environmental Metrics

ESG Focus Areas

• Governance & Everyday Ethics
• Materiality & Reporting
• Economics
• Human Rights / Freedom of Expression
• Product Responsibility
• Labour Practices
• Environment

Environmental Achievements

• Reduced energy consumption per employee by 33% compared to the base year 2010.
• Overall energy consumption dropped by 15%.
• All three Viasat set-top-boxes have the automatic Auto Power Down (APD) function and power consumption in passive standby is less than 0.5W.

Social Achievements

• Launched "Women in Tech" initiative to inspire women to consider a future in media and technology.
• Improved CDP score to 90B, up from 88B in 2013.
• Doubled the amount of media time donation compared to 2013.

Governance Achievements

• Zero confirmed cases of corruption in 2014.
• Implemented a due diligence process to review who they do business with to comply with international sanctions.
• Launched a new interactive and social intranet to enhance communication and collaboration.

Climate Goals & Targets

Environmental Challenges

• Geo-political shifts and international sanctions following the escalation of the crisis in Ukraine.
• Maintaining child protection across all platforms in a rapidly changing digital environment.
• Ensuring compliance with data protection legislation across multiple jurisdictions.

Mitigation Strategies

• Set up a sanctions committee to monitor developments and provide guidance.
• Implemented a due diligence process to review counterparties.
• Reviewed data protection and security policies, completed a benchmark against peers, and conducted a data mapping exercise.
• Established a data protection working group.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct drafted and incorporated into contracting and RFP processes.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 guidelines and Media Sector supplement, UN Global Compact, OECD Guidelines for Multinational Enterprises

Third-party Assurance: Ethos International (AA1000AS (2008); Moderate level Type 2 assurance)

Environmental Metrics

ESG Focus Areas

• Media Responsibility
• Social Impact
• Business Ethics
• Environmental Care

Environmental Achievements

• Received a 'B' rating from the CDP global environmental disclosure system.
• Mapped energy usage in facilities in Sweden to identify ways to improve efficiency.
• Updated global travel directive to encourage video conferencing over travel.

Social Achievements

• 94% of respondents in employee survey willing to make extra effort for company success.
• Launched gender bias training for managers.
• Supported #WITsthlm2017 to inspire women in media and technology.
• Increased female representation in ESL US from 14% (2016) to 24% (2017).

Governance Achievements

• Launched a new Code of Conduct, signed by 79% of employees by year-end.
• Updated Anti-Bribery & Corruption Policy.
• Completed a comprehensive internal audit to identify shortcomings in policy framework and improve governance structure.

Climate Goals & Targets

Environmental Challenges

• Data security awareness varied between digital-first and traditional businesses.
• Business travel is the biggest contributor to MTG’s carbon footprint.
• Increased overall emissions due to inclusion of digital ventures companies in measurement (though emissions decreased by 12% excluding digital ventures).

Mitigation Strategies

• Developed a GDPR roadmap and appointed data protection managers.
• Updated global travel directive to encourage video conferencing and smart travel choices.
• Working on integrating digital ventures into environmental processes.

Supply Chain Management

Supplier Audits: Independent partner audited three suppliers and three MTG productions in 2017.

Responsible Procurement

• Inclusion of MTG’s Code of Conduct in all production company agreements.
• Emphasis on diversity and plurality in content.
• Viasat ensures set-top-boxes are free of conflict minerals.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, GRI G4 Media Sector Supplement, EU Non-Financial Reporting Directive

Third-party Assurance: Ethos International AB

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 10
• SDG 13
• SDG 16
• SDG 17

The SDGs chosen are the most relevant to MTG’s strategy and values, and where MTG can contribute the most to Agenda 2030.

Awards & Recognition

• 'The Great Escape' won Children’s Programme of the Year at Kristallen awards.

Environmental Metrics

ESG Focus Areas

• Environmental care
• Social Impact
• Governance

Environmental Achievements

• Reduced total carbon emissions to 27,391 tonnes of CO2e in 2019 (new baseline following spin-off).

Social Achievements

• Donated 1.3 million SEK and products/services worth over 600,000 SEK to various organizations.
• Launched DreamHack Showdown, an all-women CS:GO tournament with equal prize pool and facilities.
• Participated in UNICEF research on children's rights in the digital world and online gaming.
• 94% of employees signed the updated Code of Conduct.

Governance Achievements

• Updated Group policies to reflect the new MTG operating model and ensure compliance with relevant legislation.
• Implemented a new policy framework, including an updated Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• High travel intensity of esports subsidiaries leading to significant carbon emissions (95% of total emissions from travel).
• Male-dominated gaming and esports industry resulting in low female representation in MTG's workforce (22%).
• Risks related to discrimination, event security, exploitation of minors, corruption, occupational health risks, and mental health issues in both esports and gaming verticals.

Mitigation Strategies

• Implementing an online reporting tool to monitor carbon footprint and developing strategies to reduce travel.
• Focusing on creating internal structures to attract and retain more women, collaborating with schools and universities.
• Implementing robust security measures at events, age-gating, and clear community guidelines to mitigate risks.
• Implementing mechanisms to counteract stereotypes and unconscious biases in the workplace and game development.
• Promoting fair and open marketing practices and ensuring age-appropriate game ratings.

Supply Chain Management

Responsible Procurement

• Working with venues that value sustainability.
• Demanding better sustainability performance from suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, GRI G4 Media Sector Supplement, EU Non-Financial Reporting Directive (Directive 2014/95/EU), Annual Accounts Act (ÅRL)

Third-party Assurance: Ethos International AB (AA1000AS 2008, Moderate level Type 2 assurance)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced overall climate impact due to less travel and lower energy consumption resulting from the pandemic and shift to online events.
• Increased InnoGames' fleet of electric cars to reduce emissions from company cars.

Social Achievements

• Implemented an external whistleblower system at ESL and DreamHack.
• Established a diversity and inclusion council at ESL.
• Developed and implemented new guidelines and policies on misconduct at ESL and DreamHack.
• Organized an online DreamHack Showdown Summer and Winter Edition to promote female CS:GO players.
• InnoGames partnered with MAC Cosmetics to raise awareness of diversity.
• DreamHack developed overtime guidelines, including overtime compensation and the importance of taking regular breaks.
• Kongregate donated money to food programs and provided direct relief to support local communities.

Governance Achievements

• Reviewed and updated Group policy framework, including Insider Trading Policy, Whistleblower Policy, Sanctions Compliance Policy, Risk Management Policy, Data Protection Group Policy, Code of Conduct, Corporate Responsibility Policy, Asset Protection Group Policy, and Anti-Bribery & Corruption Policy.
• Conducted an audit of the Privacy Compliance Framework to review and identify gaps in GDPR compliance.

Climate Goals & Targets

Environmental Challenges

• The esports vertical was negatively affected by the pandemic, resulting in a 22 percent reduction in organic revenues due to postponed and cancelled live events.
• Kongregate experienced a negative impact from the coronavirus pandemic on its in-game advertisement sales and engagement within the idle games segment.
• The pandemic slowed the implementation of new processes and measures to protect minors at esports events.
• Continued restrictions on physical events limited MTG’s ability to organize esports events.

Mitigation Strategies

• ESL Gaming successfully converted competitions to online and in-studio events, creating new business opportunities.
• ESL and DreamHack made cost savings of SEK 445 million during the second half of the year.
• DreamHack and ESL shifted esports events and tournaments to a digital format.
• DreamHack and ESL developed new routines and processes for whistleblowing.
• MTG implemented a new online tool and process for reporting and monitoring environmental data.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct includes requirements on suppliers to provide employees and workers with safe and healthy work environments.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Ethos International

Environmental Metrics

ESG Focus Areas

• Inclusive & Welcoming
• Climate Action
• Proud & Respectful

Environmental Achievements

• Reduced energy use by 2 percent due to improved data collection and energy-saving measures in our offices.
• 44 percent of electricity used came from renewable energy sources.

Social Achievements

• Increased the proportion of women and non-binary employees in the workforce to 28% from 26% in 2021.
• Voluntary employee turnover was 10%, low relative to the industry.
• Hutch implemented a 4-day work week, resulting in stable productivity, lower turnover, and higher job offer acceptance rates.

Governance Achievements

• ESG risk rating of 13.6 (low risk) in June 2022.
• 99% of all employees signed the Code of Conduct.
• No cases reported to the whistleblower channel in 2022.

Climate Goals & Targets

Environmental Challenges

• IAP market declined in 2022 for the first time ever (nearly 10% decline due to IDFA, post-covid environment, and macroeconomic factors).
• Challenging marketing environment for mid-core games.
• Continued adverse effects of IDFA.
• Return to a post-pandemic society.

Mitigation Strategies

• Successful divestment of ESL Gaming, generating net proceeds of SEK 8.3 billion.
• Focus on and built out vision and strategy as a pure-play gaming group.
• Development and implementation of the Flow Platform (Business Intelligence, User Acquisition, Ad Tech, and Cross Promotion).
• PlaySimple surpassed InnoGames as the largest studio in terms of revenue.
• Continued focus on content updates and live-ops across studios.
• Kongregate's exploration of blockchain and NFT gaming.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, cyclones)

Transition Risks

• Increased reporting requirements and regulations

Reporting Standards

Frameworks Used: GRI Standards, EU Non-Financial Reporting Directive

Third-party Assurance: Ethos International

UN Sustainable Development Goals

• Goal 5
• Goal 13