This post is part of a series about what is ESG and what it has to do with the gambling industry.
The Significance of ESG
ESG, which stands for Environmental, Social, and Governance, is a powerful tool for assessing how responsible companies are in their business practices, with the “E” representing the environment. The choices made by a company’s management can have a significant impact on the environment. It’s important for businesses to consider the environment when making decisions, but often, they prioritize profits over the planet’s well-being.
Environmental Factors to Keep in Mind
When it comes to the environment, there are several crucial factors to consider:
1. Climate Policies: How companies address the pressing issue of climate change.
2. Energy Usage: The amount of energy companies consume and its source.
3. Waste and Pollution: How companies manage their waste and pollution.
4. Natural Resource Conservation: How companies use and protect valuable resources like water, flora and fauna.
Using Environmental Parameters to Assess Companies
ESG criteria serve as a yardstick to measure if a company conducts business in a way that benefits the environment. These criteria also help us determine if a company can effectively address environmental challenges.
Good and Bad Practices
Let’s examine some real-world examples of good and bad practices:
Good Practice: Patagonia
Patagonia, a well-known outdoor clothing and accessories brand, is deeply committed to environmental sustainability. They pledge to donate 1% of their sales to environmental causes, such as combating plastic pollution, aiding wildfire efforts, and advocating for environmental justice. Patagonia is transparent about its efforts and doesn’t engage in deceptive practices.
Bad Practice: Shell
Shell, a major player in the global energy market, has often been criticized for its environmental practices, particularly in Nigeria. The extraction and production processes have led to widespread pollution and environmental degradation in the Niger Delta. Despite Shell’s public commitment to sustainability and environmental responsibility, the situation in Nigeria raises questions about the effectiveness and sincerity of these pledges. The oil spills and gas flaring have not only harmed the local ecosystems but also affected the livelihoods and health of local communities, prompting accusations of environmental and social irresponsibility. This situation demonstrates the complex challenges of aligning business practices with environmental stewardship, especially in the energy sector.
Greenwashing occurs when a company pretends to be eco-friendly without taking substantial steps to protect the environment.
Examining the Gaming Industry
Now, let’s shift the focus to the gaming and iGaming industry. These sectors also impact the environment, and while certain issues like using wood for furniture are unavoidable, it’s essential to scrutinize how gambling companies and industries address sustainable challenges so they can be sustainable online casinos.
Examples of environmental parameters that are of relevance to the gaming industry are:
- Energy production and use, heating and cooling offices and generating renewable energy onsite.
- Asset management: buildings made with local and renewable materials, and creating green space e.g. green roofs
- Procurement: using circular office equipment and furniture and considering electronic product lifecycles.
An important part of the environmental assessment is the emissions analysis which defines 3 scopes:
- Scope 1 emissions: Direct emissions from an organization’s own activities and sources under its control.
- Scope 2 emissions: Indirect emissions from purchased electricity, heat, or steam.
- Scope 3 emissions: Indirect emissions from sources outside the organization’s control, including supply chain, travel, and product lifecycle.
I will delve into the environmental goals, adherence to laws and regulations, and overall approach of gambling businesses to conduct business with respect to the environment.
Understanding environmental responsibility isn’t merely about eco-friendly products; it’s about how companies act to preserve our planet for a better future. This is important, also for online casinos in the UK.
To learn the full story of BWC, read: Make the world better while you play > About us and the goal > How we rate > Transparency: lead by example > Casino Reviews > Join us > more in our Blog
