Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Gaming
• Integrity
• Solidarity
• Commitment
• Environmental Protection
• Diversity & Quality of Life at Work
• Ethics & Compliance

Environmental Achievements

• Reduced GHG emissions by 30% between 2007 and 2014, reaching 31,050 tonnes CO2 equivalent in 2016.
• Reduced carbon impact by 1,000 tonnes CO2 equivalent in 2016 through targeted actions.

Social Achievements

• Increased percentage of women managers to 33% in 2016 (from 30% in 2015).
• Launched "Bien Jouer" program to prevent underage gambling.
• Offered support packages for large prize winners.
• Implemented a new action plan to tackle underage gambling in 2017.

Governance Achievements

• Implemented a structured "Ethics & Compliance" approach.
• Developed a Group ethics charter.
• Strengthened requirements in the allocation process for philanthropic donations.

Climate Goals & Targets

Environmental Challenges

• Erosion and ageing of player base (10% decline since 2008).
• Decline in network density.
• Risk of money laundering in sports betting.
• Underage gambling.

Mitigation Strategies

• Updating game offerings and distribution methods.
• Facilitating access to digital offerings.
• Auditing betting operations and monitoring transactions.
• Implementing prevention training for sales staff.
• Implementing a segmented prevention approach using Playscan.

Supply Chain Management

Supplier Audits: 97% of suppliers satisfied with FDJ's relationship in 2016.

Responsible Procurement

• Inter-Company Mediation Responsible Partnering practices
• Supplier Relations Charter (10 commitments)
• Social audits for high-risk countries

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, ISO 26000, ISO 9001, ISO 27001, OHSAS 18001, GRI G4

Certifications: AFNOR (Responsible Gaming), WLA SCS, ISO 27001, OHSAS 18001

Third-party Assurance: Veritas

Awards & Recognition

• PAP50 ranking (No. 1 in 2016)

Environmental Metrics

ESG Focus Areas

• Responsible Gaming
• Combating fraud and money laundering
• Data protection
• Ethics and transparency
• Economic invigoration in France and its territories
• Scarcity of resources and climate change
• Diversity and gender equality
• Health, safety, well-being and security at work
• Digital innovation

Environmental Achievements

• Reduced greenhouse gas emissions by 30% between 2008 and 2015 (FDJ SA and sales network)
• Recycled 85% of non-hazardous industrial waste at Paris premises
• Reduced paper consumption by 24% between 2016 and 2017

Social Achievements

• Launched a new mobile app, attracting 1.6 million new players (+27% vs 2016)
• Launched a new range of interactive games, “Super Jackpot”
• Improved retailer satisfaction rating to 8/10 in 2017
• Obtained AFNOR Diversity label and Gender Equality label
• Increased percentage of female managers to 40%
• Maintained percentage of employees with disabilities at 6.58%
• Employee satisfaction with regard to their company as an employer stands at 91% (+2 points)

Governance Achievements

• Established a Group Ethics Charter
• Implemented measures to comply with the anti-corruption component of the Sapin II law
• Strengthened anti-fraud and money laundering mechanisms
• Improved data protection measures in preparation for GDPR

Climate Goals & Targets

Environmental Challenges

• Demographic and social change (Millennials' expectations, aging population)
• Technological innovation (new competition, data security)
• Economic invigoration in France and its territories (changing consumer habits)
• Scarcity of resources and climate change (reducing environmental footprint)

Mitigation Strategies

• Development of sports betting offering, simplification of player experience, enhancement of employer brand
• Investment in Open Innovation, development of multi-channel gaming offering, acceleration of digital transformation
• Support for regional development, diversification of distribution network, support for network transformation
• Reduction of greenhouse gas emissions, raising awareness among customers concerning environmental protection

Supply Chain Management

Supplier Audits: 175 suppliers audited in 2017 using EcoVadis platform. Aiming to evaluate 600 suppliers by 2018.

Responsible Procurement

• Inter-Company Mediation Responsible Supplier Relations Charter
• Payment terms reduced to 30 days
• Inclusion of CSR objectives in procurement policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC)

Certifications: AFNOR Responsible Gaming Standards, ISO 27001 (Information Security), SA8000 (BZP)

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 16

See table of concordance of FDJ material issues with UN Sustainable Development Goals (SDGs)

Awards & Recognition

• 3rd prize for innovation at the European Lotteries Congress

Environmental Metrics

ESG Focus Areas

• Responsible Gaming
• Integrity
• Human Resources
• Solidarity
• French Territories
• Environment

Environmental Achievements

• 8% reduction in GHG emissions over 10 years
• 100% of gaming materials FSC-certified since 2012

Social Achievements

• Launched Mission Patrimoine games, generating €172 million in player stakes and allocating €21 million to the Fondation du Patrimoine
• Increased commissions paid to retailers by 5.7%
• Obtained AFNOR Diversity and Professional gender equality labels
• Supported 800+ associations through the FDJ Corporate Foundation

Governance Achievements

• Implemented a prevention and detection scheme compliant with the Sapin II law
• Established a Group Ethics Charter
• Achieved 100% compliance rating in Responsible Gaming certification

Climate Goals & Targets

Environmental Challenges

• Demographic and social change (new expectations from 18-34 year-olds)
• Technological innovation (increasing connectivity and multi-channel behavior)
• Regional cohesion (changing consumer behavior and out-of-town shopping)
• Scarcity of resources and climate change (increasing demands for environmental responsibility)

Mitigation Strategies

• Expanding and rejuvenating the player base through digital access and innovation
• Driving flexible player interaction through digitization
• Strengthening the appeal of the brick-and-mortar network and diversifying activities at points of sale
• Reducing environmental footprint and promoting sound practices

Supply Chain Management

Responsible Procurement

• Inter-Company Mediation Responsible Supplier Relations Charter (since 2014)
• EcoVadis evaluation of supplier CSR performance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, GRI, IIRC

Certifications: ISO 27001, WLA SCS, ISO 9001, ISO 14001 (BZP), SA 8000 (BZP), PCI DSS

Third-party Assurance: PricewaterhouseCoopers Audit

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

FDJ's actions contribute to these goals through various initiatives described in the report.

Awards & Recognition

• Happy Trainees prize (2018)
• AFNOR Diversity label (2017)
• AFNOR Gender Equality label (2017)

Environmental Metrics

ESG Focus Areas

• Responsible Gaming
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• 40% reduction in scope 1 and 2 emissions in 2019 compared with 2017
• 100% of gaming materials printed on FSC paper from responsible sources

Social Achievements

• Launched “Mission Patrimoine” games, raising over €100 million since 2018 for heritage site restoration
• Continued support for French sports through FDJ Sport Factory and partnerships
• FDJ Corporate Foundation allocated €2 million to support vulnerable youth affected by the health crisis
• €15 million contribution to the Rebond local business support fund

Governance Achievements

• 100/100 Pénicaud Gender Equality Index (FDJ SA)
• A1+ Moody’s ESG rating
• Increased weighting of CSR and Responsible Gaming criterion in executive remuneration to 30% in 2022

Climate Goals & Targets

Environmental Challenges

• Impacts of the health crisis on point-of-sale network and operations
• Risks related to the competitive environment of the gaming sector
• Risks related to the development of the digital offer
• Risks related to customer knowledge
• Risks related to the organization of the point-of-sale network
• Risks related to the strategy for developing adjacent activities
• Risks related to cybercrime and the continuity of information systems
• Risks related to the integrity and security of gaming operations
• Risks of interruption of the supply chain for points of sale
• Counterparty risk
• Risks related to the implementation of the sector's regulatory framework
• Risks related to responsible gaming
• Money laundering risk
• Risks related to changes in the sector's regulatory framework
• Risks related to litigation, disputes and claims
• Risk of infringement to the security of personal data

Mitigation Strategies

• Measures to protect employee health and safety
• Ensuring business continuity
• Dynamic management of business in keeping with responsible gaming model
• Rigorous risk management policy
• Continuous improvement process involving internal and external operators
• Periodic updates of risk mapping
• Focus on identifying, assessing and addressing emerging risks

Supply Chain Management

Responsible Procurement

• 100% of gaming materials printed on FSC®-certified paper

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Value Reporting Foundation (formerly IIRC)

Certifications: Afnor “Diversity” and “Professional Equality” labels, European Lotteries’ responsible gaming standards (highest level of compliance)

Awards & Recognition

• Corporate Venture prize at the second edition of the CF News Tech Awards

Environmental Metrics

ESG Focus Areas

• Responsible Gaming
• Climate Change
• Biodiversity
• Social and Environmental Initiatives
• Equal Opportunities

Environmental Achievements

• Reached 2025 goal of reducing carbon footprint on direct scope in 2022
• 59% reduction in scope 1 and 2 emissions in 2021 compared to 2017
• 100% of gaming materials printed on FSC®-certified paper

Social Achievements

• Launched “Player’s Rules” campaign to raise awareness of responsible gaming
• 10% of overall advertising budget devoted to responsible gaming
• FDJ Corporate Foundation supported 102 local association projects in 2022
• Improved player support services and stake-capping moderator
• 100/100 on the Gender Equality Index (FDJ SA)

Governance Achievements

• Established Stakeholder Committee to monitor implementation of raison d’être
• Lead director appointed to ensure balanced power within governance
• Executive Corporate Directors’ remuneration linked to ESG performance

Climate Goals & Targets

Environmental Challenges

• Maintaining responsible gaming practices in a rapidly evolving digital landscape
• Balancing economic performance with responsible gaming and environmental sustainability
• Addressing the challenges of local retail in a changing market

Mitigation Strategies

• Continuous improvement of risk forecasting, knowledge, and management processes
• Investment in technological infrastructure and omnichannel approach
• Support for retailers to modernize and diversify their activities
• Targeted prevention approach to segment high-risk behaviours online

Supply Chain Management

Responsible Procurement

• 100% of gaming materials printed on FSC®-certified paper

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Value Reporting Foundation framework

Certifications: European Lotteries responsible gaming certification (maximum compliance level)

Awards & Recognition

• World Lottery Association’s Best Responsible Gaming Advertising award
• ChooseMyCompany’s “Happy Trainees” award (five years running)
• 100/100 on the Gender Equality Index (FDJ SA)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 70% between 2017 and 2022 (exceeding initial 20% target for 2025)
• Reduced Scope 3 emissions (excluding purchases, business travel, commuting, freight, and company vehicles) by 33% since 2017
• Achieved a carbon score of A from Axylia, indicating ability to pay potential carbon bill
• Implemented an energy sobriety plan focusing on buildings, digital technologies, and travel
• Launched #BuyforGood purchasing decarbonization program

Social Achievements

• Launched "Mission Nature" scratch card game, donating €0.43 per card to French biodiversity agency
• Organized training and awareness actions for all staff on climate action
• Partnered with Gestes Propres to combat littering, broadcasting anti-littering campaigns at points of sale

Governance Achievements

• Fully integrated environmental strategy into corporate governance, regularly discussed in CSR and Responsible board committee and at Board level
• Aligned with TCFD recommendations, identifying and analyzing climate-related financial risks and opportunities
• Incorporated CSR objectives, including environmental objectives, into executive compensation packages

Climate Goals & Targets

Environmental Challenges

• Climate change
• Loss of biodiversity
• Transition risks (loss of brand appeal, taxation of greenhouse gas emissions, investor expectations)
• Physical risks (distribution system disruption, IT service interruption, supply disruption due to extreme weather events)

Mitigation Strategies

• GHG emissions reduction target for 2030 (50% reduction in carbon emissions per million euros of revenue)
• Business continuity plan to address extreme weather events
• Data center design to withstand extreme weather events
• Dialogue with suppliers on operational risk, business continuity plans, CSR policies, and carbon footprint reduction
• Surveys to understand customer expectations regarding CSR
• Communication campaigns showcasing environmental engagement
• Partnership with Gestes Propres to combat littering

Supply Chain Management

Supplier Audits: Ecovadis assessment of environmental performance for strategic suppliers

Responsible Procurement

• #BuyforGood program, including carbon emissions clause in large contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting distribution, IT services, and supply

Transition Risks

• Loss of brand appeal due to rising consumer expectations
• Taxation of greenhouse gas emissions
• Investor expectations

Opportunities

• Cost savings through responsible digital policy and energy optimization
• Digital transformation of gaming

Reporting Standards

Frameworks Used: TCFD, GHG Protocol, ADEME Bilan CarboneTM

Certifications: FSC®

Third-party Assurance: Axylia

UN Sustainable Development Goals

• 13 (Climate Action)
• 15 (Life on Land)

Actions contribute to limiting environmental impact, aligning GHG emissions with the 2°C objective, achieving carbon neutrality, and protecting biodiversity

Sustainable Products & Innovation

• Thinner paper for scratch cards (15% thinner)