SiGMA East Europe 2024: The ripple effect of ESG
At SiGMA East Europe 2024 in Budapest, a panel of industry leaders gathered to explore the impact of Environmental, Social, and Governance (ESG) initiatives on the iGaming sector. The session, moderated by Kirsten Clark, Executive Director of the International Gaming Association (IAGA), featured insights from Floris Assies, Founder and CEO of Better World Casinos; Glen Smith, CSR and Communications Coordinator at iGEN; and Dr. Franklin Cachia, Director and Lead Consultant at CSB Group.
The importance of social responsibility
The panel started by discussing the social aspect of ESG, highlighting that while harm minimization and responsible gambling have traditionally been key concerns within the iGaming industry, there is also a growing need for companies to engage in broader social initiatives.
“We identify Maltese employees within iGaming who are prepared to be ambassadors to talk about iGaming as a career option to their immediate network. This is building connections between iGaming and the local community.”
– Glen Smith, CSR & Communications Coordinator at iGEN
Assies highlighted the significance of fostering a positive work environment and attracting top talent by integrating ESG principles into the company’s culture. Smith discussed how iGEN has empowered employees to act as ambassadors, promoting iGaming careers within the local community and involving them in CSR initiatives.
Cachia underscored the necessity of a top-down approach to ESG, with management setting the example and encouraging a culture of individual responsibility. He emphasized the importance of training employees on ESG principles to enhance the organization’s sustainability and ethical standards.
Environmental impact in online iGaming
While land-based operators have made strides in reducing their environmental footprint, online-based iGaming companies face unique challenges. Smith highlighted the potential for online companies to contribute to sustainable initiatives through volunteer efforts, such as tree-planting and clean-up drives. However, Assies cautioned against focusing solely on these “low-hanging fruit” initiatives, emphasising the need for more direct impacts on product development.
“Sometimes we underestimate small actions that we could take.”
– Dr Franklin Cachia, Director & Lead Consultant at CSB Group
Cachia suggested that even small actions, such as implementing work-from-home policies and reducing paper usage, can also have a powerful environmental impact.
The benefits of ESG
The panel also discussed the potential financial benefits of implementing strong ESG initiatives. Cachia argued that a company with a strong ESG reputation is more attractive to employees, investors, and stakeholders, leading to improved employee retention and a positive impact on the company.
“I think governance should come first because this is where the decision is made. Every decision in the company will affect the bottom-line.”
– Floris Assies, Founder & CEO at Better World Casinos
Assies stressed that robust governance is essential for implementing effective ESG practices, highlighting that prudent decision-making can positively impact a company’s financial performance. Smith concurred, pointing out that while ESG initiatives may demand an initial investment, they represent a long-term investment in the company’s future and can help attract top talent.
The panel discussion, powered by iGEN, highlighted the increasing significance of ESG initiatives in the iGaming sector. By focusing on social responsibility, environmental sustainability, and robust governance, iGaming companies can contribute to a more sustainable future while also enhancing their reputation.
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