Climate Change Data

Environmental Metrics

ESG Focus Areas

• Great People
• Solid Work
• Greener Planet

Environmental Achievements

• Prepared the groundwork for our climate strategy by performing a maturity and impact analysis in close collaboration with all our operative groups.
• Conducted an extensive greenhouse gas inventory of our scope 1, 2 and 3 emissions.

Social Achievements

• Strengthening the sustainability team with Head of Sustainability, with long experience in the field of sustainability and finance.
• Arranged sustainability sessions in all operative groups to create a forum to share insights and knowledge on topics such as “Well-being”, “Accessibility” and “Women in the Gaming Industry”.
• Embracer Group is now also a signatory member of the UN Global Compact since December 2021.
• Launched Give back – Think ahead™, an initiative to structure the allocation of funds to sustainability initiatives.

Governance Achievements

• Focus on ethics and governance during the year with the number of group policies increasing from 4 to 15
• Implemented a global policy package across the group.
• Established a group-wide whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the war in Ukraine and the effects of the pandemic.
• Challenges in talent supply and diversity and inclusion in games and entertainment.
• Managing and monitoring responsible marketing practices.

Mitigation Strategies

• Worked to support the relocation and safety of employees and family members affected by the war in Ukraine.
• Proactively working for equality and inclusivity.
• Implementing routines for responsible gaming content and addressing diversity and inclusion in content.
• Monitoring chats and forums to counteract negative behavior.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 12
• SDG 17

Align with our business.

Environmental Metrics

ESG Focus Areas

• Diversity and inclusion
• Employee well-being
• Carbon emission reduction
• Digital well-being
• Responsible marketing

Environmental Achievements

• Set bold sustainability goals: to double the number of female MDs/Studio Heads by 2025, reduce CO2 emissions by 45% by 2030 and ensure that all operative groups set sustainability goals in 2023/24.
• MSCI upgraded Embracer Group’s ESG rating from BBB to A.
• Sustainalytics included Embracer Group in Top-Rated ESG Companies List.

Social Achievements

• Completed the Group’s third annual employee survey, showing high employee satisfaction.
• Launched Access+, Asmodee’s first accessibility range of board games.

Governance Achievements

• Successfully changed the listing venue Nasdaq Stockholm First North Growth Market to Nasdaq Stockholm Main Market.
• Recruitment of Head of Privacy & AI Governance and Head of Governance & Compliance Legal.
• Launch of Group privacy policy.

Climate Goals & Targets

Environmental Challenges

• Weaker consumer market
• Game delays
• A high-profile deal that did not materialize
• Lower ad prices in the mobile games segment
• Lower gross margin in the Tabletop Games segment due to product mix and inflationary pressures
• Fewer third-party games released by PLAION Publishing
• Cost-saving activities by certain SVOD services impacting the Entertainment & Services segment

Mitigation Strategies

• Implementing a stronger, centralized framework for progress review of games in development
• Lowered user acquisition investment in the Mobile Games segment
• Careful working capital management in the Tabletop Games segment
• Comprehensive restructuring program including operational and financial measures to increase cash conversion, improve efficiency and reduce capex

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Third-party Assurance: Ernst & Young AB

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 12
• Goal 17

Sustainable Products & Innovation

• Access+ board games

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Climate Change
• Digital Well-being
• Responsible Gaming
• Value Chain Sustainability

Environmental Achievements

• Greenhouse gas emissions reduction targets validated and approved by the Science Based Targets initiative (SBTi), aligning with a 1.5°C pathway. Targets include a 45% reduction in Scope 1 and 2 emissions and a 51.6% reduction in Scope 3 emissions by 2030 (from a 2021 baseline).

Social Achievements

• Increased percentage of female employees to 30% (from 26% the previous year).
• Increased percentage of female managers to 26% (from 23% the previous year).
• Annual Code of Conduct training for 7,942 employees (out of 11,000, excluding Saber Interactive and Gearbox Entertainment).
• Continued support for people of Ukraine through donations.

Governance Achievements

• Adoption and rollout of an AI policy package.
• Establishment of an Advisory Sustainability Council.
• Implementation of annual mandatory trainings for all employees on Privacy and Anti-Corruption.

Climate Goals & Targets

Environmental Challenges

• Group restructuring and transformation into three separate publicly listed entities, leading to postponement of some initial sustainability plans.
• Talent recruitment and retention in a competitive industry.
• Lack of diversity and inclusion in games and entertainment.
• Concerns about digital well-being and excessive screen time.
• Value chain risks related to environmental, social, and governance factors.
• Data privacy and information security breaches.
• Cybersecurity risks.
• Tax compliance and transparency.

Mitigation Strategies

• Accelerated implementation of internal control and integration processes within HR.
• Collaboration and knowledge-sharing across operative groups.
• Code of Conduct training and leadership programs.
• Annual employee surveys to measure well-being and satisfaction.
• Leadership and team-building support from HQ.
• Data collection and transparent reporting on diversity and inclusion.
• Third-party group-wide whistleblowing system.
• Collaboration with industry organizations to improve diversity and inclusion.
• Support for initiatives promoting digital well-being.
• Implementation of responsible gaming content routines.
• Supplier Code of Conduct and other policies to address value chain risks.
• Regular internal and external cyber security audits, penetration tests, and vulnerability assessments.
• Strengthening of the Group Tax department and implementation of a tax policy.

Supply Chain Management

Responsible Procurement

• Code of Conduct, Supplier Code of Conduct, Anti-Corruption Policy, and other policies and guidelines.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ESRS, SASB, GRI

Third-party Assurance: Öhrlings PricewaterhouseCoopers AB

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 17 (Partnerships for the Goals)

Embracer supports these SDGs through various initiatives detailed in the report.

Environmental Metrics

ESG Focus Areas

• Great People
• Solid Work
• Our Planet

Environmental Achievements

• Establishing absolute emission targets to reduce Scope 1 and 2 emissions by 45% and Scope 3 emissions by 51.6% by 2030 (from a 2021 baseline).

Social Achievements

• Annual mandatory trainings for all employees on Privacy and Anti-Corruption were launched.
• 46% of studios implemented routines for responsible gaming content.
• 91% of studios do not use communications or in-game chat forums for most games, decreasing the risk of toxic behavior.

Governance Achievements

• Implementation of 16 local reporting channels to ensure compliance with the Whistleblowing Directive.
• 95% of companies confirmed all employees have knowledge of the whistleblowing system.
• Sustainability due diligence as a standard protocol during each acquisition.

Climate Goals & Targets

Environmental Challenges

• Observed decrease in employee satisfaction score attributed to restructuring and layoffs.
• The vast majority of Embracer’s carbon emissions (approximately 98%) are indirect and fall under Scope 3.

Mitigation Strategies

• A broader internal project has been launched to ensure the implementation of the CSRD (Corporate Sustainability Reporting Directive).
• Establishing absolute emission targets provides a clear roadmap for managing carbon dioxide emissions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (97% implementation rate)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD, ESRS, UN Sustainable Development Goals (SDGs)