SiGMA East Europe 2024: The ripple effect of ESG

Jade Denosta September 3, 2024

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SiGMA East Europe 2024: The ripple effect of ESG

A panel of industry experts convened at SiGMA East Europe 2024 in Budapest to discuss the implications of Environmental, Social, and Governance (ESG) initiatives within the iGaming sector. Moderated by Kirsten Clark, Executive Director at the International Gaming Association (IAGA), the discussion featured Floris Assies (Founder & CEO of Better World Casinos), Glen Smith (CSR & Communications Coordinator at iGEN), and Dr. Franklin Cachia (Director & Lead Consultant at CSB Group).

The panel began by addressing the social pillar of ESG, noting that while harm minimisation and responsible gambling have been longstanding concerns in the iGaming industry, companies should also focus on 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 emphasised the importance of creating a positive work environment and attracting top talent by incorporating ESG principles into company culture. Smith shared how iGEN has engaged employees as ambassadors to promote iGaming careers within the local community and involved them in CSR activities.

Cachia stressed the need for a top-down approach to ESG, with management leading by example and fostering a culture of individual responsibility. He emphasised the importance of training employees on ESG principles and how they can contribute to a more sustainable and ethical organisation.

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 highlighted the importance of governance as the foundation for effective ESG practises, emphasising that thoughtful decision-making can have a positive impact on the company’s financial performance. Smith added that while ESG may require upfront investment, it is ultimately an investment in the company’s future and can help attract top talent.

The panel discussion powered by iGEN underscored the growing importance of ESG initiatives within the iGaming industry. By prioritising social responsibility, environmental sustainability, and good governance, iGaming companies can not only contribute to a more positive and sustainable future but also enhance their reputation.