Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible gaming
• Data privacy and security
• Anti-corruption and anti-bribery
• Equality & diversity
• Stimulating work environment
• Sustainable and profitable business
• Product quality & service
• Low carbon impact
• Environmental friendly solutions

Environmental Achievements

• Goodgames studio developed a fraud prevention solution implemented in several studios.
• Studios use cloud-based server solutions from companies working to guarantee a high proportion of renewable energy.
• Studios seek to cut their carbon footprint using recycling solutions, schemes for old electronics and purchasing procedures.

Social Achievements

• Imperia Online launched the IT Talents program, providing free courses for developers, resulting in over 450 people gaining employment.
• Babil Games in Amman created a more gender-equal workplace (60% men, 40% women).
• Goodgames studio created branded in-game events where players sponsored environmental projects (tree planting, ocean cleanup, wild bee protection).

Governance Achievements

• Implemented a whistleblower function for reporting irregularities.
• All acquired companies undergo a risk assessment focusing on internal processes to safeguard financial security and prevent corruption.
• Developed a Code of Conduct covering human rights, business ethics, data processing, and anti-corruption.

Climate Goals & Targets

Environmental Challenges

• Relatively low greenhouse gas emissions, primarily from server solutions and data storage, business travel, energy consumption at offices, purchased materials, and indirectly through digital products.
• Attracting and retaining talent in a competitive industry.
• Maintaining data privacy and security in a data-driven business.

Mitigation Strategies

• Ambition to conduct fundamental calculations of climate impact to identify areas for improvement and develop a strategy.
• Imperia Online's IT Talents program to address talent acquisition challenges.
• Significant resources invested in ensuring the privacy program meets GDPR and other relevant regulations; appointed an external Data Protection Officer.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Nasdaq’s ESG Reporting Guide

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Became climate neutral by measuring and compensating for all greenhouse gas emissions (28,707.9 tCO2e in 2019 and 27,682.4 tCO2e in 2020), including those from gamers' energy usage.

Social Achievements

• Approved a new Responsible Content Declaration with guidelines on studios’ and gamers’ responsibilities.
• Acquired two new studios (Storm8 and Nanobit) targeting mainly female gamers.
• Initiated a Talent Management Program including Code of Conduct training and sustainability education (90% of co-workers completed the Code of Conduct training).

Governance Achievements

• Updated whistleblowing system with no substantiated reported incidents.
• 50% women and 50% men on the Board of Directors.
• Appointed Deloitte as the group’s external Data Protection Officer (DPO).

Climate Goals & Targets

Environmental Challenges

• Social risks in the gaming industry, mainly human capital and data privacy.
• Environmental risks related to CO2 emissions if unmanaged.
• Governance risks including Board representation and data privacy and security issues.
• Toxic behavior among gamers.

Mitigation Strategies

• Implemented a FAIR model to regulate content and gamer behavior.
• Used automated chat filters to block inappropriate language and behavior.
• Developed a carbon reduction plan for 2021-2023.
• Increased transparency and disclosure.
• Updated policies to reflect new sustainability standards.
• Undertook due diligence on potential acquisitions from a sustainability perspective.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Global Goals, Nasdaq ESG Reporting Guide

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

Environmental Metrics

ESG Focus Areas

• Gaming for all
• Living our values
• Smart resource use

Environmental Achievements

• Climate neutral for 2021 by compensating for emissions from daily operations, gamer energy usage, and indirect emissions.

Social Achievements

• 80.6% of employees recommend Stillfront as a workplace.
• Increased diversity in game portfolio and geographical presence, including acquisitions in India and the MENA region.
• All substantiated incidents reported through Stillfront’s Speak-up channels were acted upon.

Governance Achievements

• Established an Environmental Committee to drive environmental initiatives and climate reduction.
• Became a signatory of the UN Global Compact.
• Implemented FAIR model (Forums & communities, Age protection, Inclusion & diversity, and Responsible gaming and monetization) into daily operations.

Climate Goals & Targets

Environmental Challenges

• IDFA changes from Apple and tough comparison figures negatively impacted growth.
• Risks related to the group’s dependency on key individuals.
• Risks related to new games and existing game offerings.
• Risks related to the group being dependent on a limited number of games.
• Risks related to the free-to-play model.
• Risks related to technological progress and consumer preferences.
• Risks related to identification for advertisers.
• Risks related to distribution channels.
• Risks related to negative perception or publicity.
• Risks related to Intellectual property.
• Risks related to Cybercrime.
• Risks related to the security, integrity and operational performance of systems.
• Risks related to competition.
• Risks related to the use of open source software.
• Risks of Force Majeure.
• Risks relating to the group’s financial position.
• Risks related to acquisitions, investments, establishments or divestments.
• Risks related to the processing of personal data.
• Risks related to changes in taxation.
• Risks relating to laws, regulations and rules in several different jurisdictions.

Mitigation Strategies

• Developed Stillops platform to realize synergies between studios and navigate IDFA changes.
• Promoting career development and succession planning for key individuals.
• Incremental game development model and acquisitions to reduce dependence on existing games.
• Continuous updates and content for existing games, efficient user acquisition methods, and acquisitions of suitable games.
• Continuous tracking of game performance and adjustments to parameters.
• Continuous monitoring of technological developments and adaptation to new technologies.
• Continuous monitoring of regulatory landscape and adjustments to changes.
• Maintaining good relations with platform distributors and evaluating other distribution channels.
• FAIR model to address negative perceptions and promote responsible gaming.
• Registration of material trademarks and careful product development to avoid infringement.
• Maintaining high security standards to protect users from cyberattacks and fraud.
• Disaster Recovery and Business Continuity Plans.
• Focus on free-to-play online games and exploration of new genres.
• Continuous monitoring of open source software usage.
• Continuous performance evaluation and appropriate actions to address potential issues.
• Centralized management of financial risks.
• Comprehensive due diligence and integration framework for acquisitions.
• Data privacy program meeting GDPR criteria, regular data privacy training, and processes to safeguard confidentiality.
• Continuous assessment of tax rules and expert advice to ensure accurate tax status.
• Monitoring regulatory changes, analysis, training, and dialogue with supervisory authorities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, EU Taxonomy

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• Goal 3.4
• Goal 10.2
• Goal 5.5
• Goal 8.5
• Goal 13
• Goal 16.5

The report details how Stillfront's initiatives contribute to these goals through responsible gaming, diversity and inclusion, employee well-being, climate action, and anti-corruption measures.

Environmental Metrics

ESG Focus Areas

• Responsible gaming
• Living our values
• Smart resource use

Environmental Achievements

• Increased procurement of renewable electricity to 16% of total energy procurement (electricity, district heating and district cooling), and 29% of electricity procurement (8% in 2021).

Social Achievements

• 100% of substantiated incidents of abusive behavior among gamers were acted upon.
• Game teams introduced in 2022 were diverse and multicultural.
• Zero work-related injuries and zero recordable cases of ill-health reported in 2022.
• Zero incidents of discrimination reported in 2022.
• 100% of substantiated reports in Speak Up channels were acted upon.

Governance Achievements

• 100% of employees completed yearly policy training.
• Zero substantiated reports in Speak Up channels in 2022.
• Zero cases of corruption in 2022.

Climate Goals & Targets

Environmental Challenges

• Low eNPS score (22) indicating room for improvement in employee satisfaction and well-being.
• Gender balance of 31/69% at all levels within the group.
• Increase in Scope 3 emissions (primarily due to improved data coverage and updated calculation methodologies).

Mitigation Strategies

• Introduced a playbook for all studios to implement sustainability in daily operations.
• Initiated a Living our Values forum for HR managers to address challenges and share best practices.
• Extended the scope of the annual employee satisfaction and well-being survey.
• Committed to setting near-term company-wide emission reduction targets in line with SBTi criteria.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, EU Taxonomy, SBTi

Environmental Metrics

ESG Focus Areas

• Climate impact and environment
• Social and employer responsibility
• Responsible business

Environmental Achievements

• Reduced scope 1 and 2 emissions by -16% to 477 tCO2e
• Reduced scope 3 emissions by -8% to 52,588 tCO2e

Social Achievements

• Average global eNPS of 32 (2022: 22)
• 100% of substantiated reported incidents in speak-up channels were acted upon
• Improved gender balance to 32% women, 68% men

Governance Achievements

• No substantiated cases of discrimination and harassment received
• 100% of employees in at-risk functions received anti-corruption and bribery training

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change adaptation in high-temperature regions
• Maintaining high standards of responsible gaming
• Data leakages or cyberattacks
• Compliance risks in expanding markets

Mitigation Strategies

• Developing alternative sourcing strategies
• Implementing an action plan for emissions reduction in 2024
• Utilizing built-in functions and algorithms to filter out bad language and ban violating gamers
• Implementing a record of processing activities (ROPA) software
• Adopting an anti-bribery and anti-corruption policy

Supply Chain Management

Responsible Procurement

• Regular dialogue with suppliers/partners
• Monitoring suppliers’ maturity and best practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Transition to renewable energy sources

Reporting Standards

Frameworks Used: ESRS

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB