Evolution AB (publ)
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:5,481 tCO2e/year
Scope 1 Emissions:0 tCO2e/year
Scope 2 Emissions:4,671 tCO2e/year
Scope 3 Emissions:810 tCO2e/year
Carbon Intensity:3.8 tonnes CO2e/EUR million
ESG Focus Areas
- Our employees
- Our societies
- Our environment
- Diversity
- Responsible gambling
- Ethical business practices
Environmental Achievements
- Prepared climate reporting in accordance with the Greenhouse Gas Protocol for Scope 1, 2, and 3 emissions.
- Energy consumption per table decreased by 6.5 percent.
Social Achievements
- Sponsoring Boys & Girls Clubs of America
- Donations to Ukraine
- Extended skills development for employees
- Awards – “Best employer”.
Governance Achievements
- Joined the UN Global Compact.
- ISO 27001:2013 certification for IT security.
- Implemented processes complying with GDPR.
Climate Goals & Targets
Long-term Goals:
- Prepare reporting in accordance with CSRD
- Assess the need for a sustainability platform.
Medium-term Goals:
- Prepare the organisation for the introduction of the EU Corporate Sustainability Reporting Directive CSRD.
Short-term Goals:
- Develop objectives by means of climate data
- Strengthen processes around the collection of sustainability data
- Update stakeholder dialogues and the materiality analysis
Environmental Challenges
- Challenging market environment in 2022 impacted by the war in Ukraine, inflation, and supply chain disruptions.
- Revenue growth in RNG was below expectations due to structural efforts and back-end system revamping taking longer than expected.
- Sustainability risks related to climate change, pollution, and resource use.
Mitigation Strategies
- Increased EBITDA margin to 69.2% despite increased costs.
- Continued development and improvement of RNG offering through in-house innovation and acquisition of Nolimit City.
- Working actively with energy efficiency improvements in studios and using renewable energy in data centers.
- Established recycling processes for office equipment and studio hardware.
- Minimized business travel through video conferencing and digital collaboration.
Supply Chain Management
Responsible Procurement
- Expect suppliers and business partners to adhere to standards equivalent to those in Evolution’s Sustainability Policy and Code of Conduct.
Climate-Related Risks & Opportunities
Physical Risks
- Effects of climate change
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI, UN Global Compact
Certifications: ISO 27001:2013, ISO 50001:2018
Third-party Assurance: Öhrlings PricewaterhouseCoopers AB
Awards & Recognition
- Best employer awards in Latvia and Sweden
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:7,373 tCO2e/year
Scope 1 Emissions:0 tCO2e/year
Scope 2 Emissions:5,037 tCO2e/year
Scope 3 Emissions:2,336 tCO2e/year
ESG Focus Areas
- Responsible business
- Responsible gambling
- Our employees
- IT and cybersecurity
- Climate
Environmental Achievements
- Reduced average energy consumption per studio table by slightly more than 17 percent compared with 2022.
- Greenhouse gas emissions from air travel increased compared with 2022, mainly because air travel was limited in 2022 due to the pandemic. To further limit air travel, video conferencing is encouraged over physical meetings.
Social Achievements
- Increased the number of employees by 2,195 people during the year, which corresponds to an increase of 13 percent.
- Launched EVO Game Changers Programme, a single framework for all ESG components, including internal and external initiatives focused on employee wellbeing, diversity, and community engagement.
- Number of suspected problem gambling cases reported to operators increased by 56 percent compared with the preceding year.
- Training in responsible gambling has been provided for 60 (72) percent of the employees in relevant departments.
Governance Achievements
- Joined the UN Global Compact.
- Established a Compliance Committee to review and enhance compliance processes and procedures.
- No cases of corruption or deviations in business ethics were reported via our whistle-blower function in 2023.
Climate Goals & Targets
Long-term Goals:
- Aiming to reduce overall carbon footprint.
Medium-term Goals:
- Applying to join the Science Based Target’s initiative in 2024.
Short-term Goals:
- Further development of AI models for report optimisation, helping customers more quickly detect suspected gambling problems or highlighting potential risks for money laundering.
Environmental Challenges
- During the first half of the year, Evolution did not fully execute its expansion plans and undersupplied the market for live casino.
- Global concerns regarding the economy and geopolitical developments created a difficult environment.
Mitigation Strategies
- Took action to improve live casino delivery capacity, increasing the number of tables by approximately 300 to more than 1,600 at year-end.
- Remained focused and delivered a solid year both financially and operationally.
Supply Chain Management
Responsible Procurement
- Code of Conduct in connection with signing of contracts
- Continuous risk assessments in connection with purchasing
- Due Diligence process regarding human rights
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
Reporting Standards
Frameworks Used: UN Global Compact, OECD guidelines for multinational companies, ILO’s definitions and guidelines
Certifications: ISO 27001:2013, ISO 50001:2018
Third-party Assurance: Öhrlings PricewaterhouseCoopers AB
UN Sustainable Development Goals
- Goal 3
- Goal 8
- Goal 5
- Goal 13
- Goal 16
The report details how initiatives contribute to these goals.