About the Company

Founded in 2001, Flutter Entertainment PLC formerly known as Paddy Power Betfair, headquartered in Dublin, Ireland, is a global leader in the online sports betting and gaming industry. Operating some of the most recognizable brands such as Betfair, Paddy Power, and FanDuel, Flutter has a significant presence in key markets worldwide.

Licensed in multiple jurisdictions, including the UK, Ireland, Australia, and the US, Flutter plays a pivotal role in the economies where it operates, contributing substantial tax revenues and creating thousands of jobs. With a strong emphasis on ESG principles, Flutter has achieved a notable 80% ESG ranking percentile among 32,244 companies assessed by CSR Hub, underscoring its commitment to sustainability and responsible business practices.

As a publicly traded entity on the London Stock Exchange and a component of the FTSE 100 Index, Flutter Entertainment is committed to transparency, sustainability, and responsible business practices.  As stated in its 2022 Annual Report, the major shareholders include:

• Capital Research & Management Co.
• Caledonia (Private) Investments Pty Limited
• Parvus Asset Management Europe Limited
• BlackRock Inc.

Key Performance Indicator (KPI) Ratings

Key Performance Indicators (KPIs) for Flutter Entertainment PLC based on the Full-Year Results for the fiscal year ending 31 December 2023:

Financial Performance Summary:

• Flutter Entertainment PLC reported a substantial increase in Group revenue, reaching £7.2 billion, reflecting a 23% growth compared to the previous fiscal year.
• The company achieved a notable improvement in Adjusted EBITDA, totaling £1.4 billion, marking a 15% increase year-over-year.
• Flutter’s strong performance in key markets like the US and Europe contributed to a significant rise in revenue, with online betting seeing a 12% increase in active users.

Financial Metrics Table:

Flutter Entertainment PLC, a global leader in the online betting and gaming industry, demonstrated robust financial performance in the fiscal year ending December 31, 2023. With reported Group revenue of £7.2 billion and an improved Adjusted EBITDA of £1.4 billion, the company experienced significant growth driven by its strategic expansion efforts and technological innovations. Notably, Flutter’s proactive approach to customer engagement, market expansion, and regulatory compliance has solidified its position as a key player in the industry. With a workforce of 18,736 employees, Flutter also emphasizes diversity and inclusion initiatives and community engagement through charitable donations and sustainability partnerships.

ESG Overview

In this section, we explore the Environmental, Social, and Governance (ESG) practices of Flutter Entertainment. Understanding a company’s ESG commitments is crucial for investors, stakeholders, and the general public to assess its impact on the environment, society, and governance structures. We delve into Flutter Entertainment’s initiatives, strategies, and performance in these key areas, shedding light on its sustainability efforts and social responsibility. For a comprehensive guide on ESG in the iGaming industry, you can visit Better World Casinos – Understanding ESG and iGaming.

ESG Strategy

Flutter Entertainment demonstrates a robust ESG strategy that encompasses ambitious climate targets, responsible gambling initiatives, and a steadfast commitment to diversity and inclusion. The company has set clear objectives to minimize its environmental footprint, aiming for net zero carbon emissions by 2030 and investing in renewable energy sources. In the realm of social impact, Flutter prioritizes employee well-being through comprehensive programs, achieving a 79% colleague engagement rate in 2022. Its “Play Well” strategy includes initiatives like deposit limits for customers under 25 and reduced online slot stakes, aligning with industry trends toward heightened player protections. Additionally, Flutter emphasizes diversity and inclusion, with its workforce comprising 45% women and 55% men in 2022. Governance-wise, the company upholds stringent policies, engages in regulatory consultations, and has committees overseeing key aspects like risk, sustainability, and market disclosure. These efforts highlight Flutter’s commitment to responsible business practices across all facets of its operations.

Environmental Impact

In this section, we delve into the company’s efforts towards environmental sustainability and its initiatives to reduce its carbon footprint. For a detailed overview of Flutter Entertainment environmental strategies, you can also visit  ESG Environment page.

Environmental Performance

Emissions:

Flutter Entertainment is dedicated to minimizing its environmental footprint, with a strong focus on reducing carbon emissions across its operations. The company has set ambitious targets to achieve net zero carbon emissions by 2030, demonstrating a steadfast commitment to sustainability and climate action. To achieve this goal, Flutter has identified key areas of focus:

• Scope 1 Emissions: These include direct emissions from sources owned or controlled by Flutter, such as company vehicles and onsite fuel combustion. In 2022, Scope 1 emissions increased by 40%, primarily due to the return to business post-COVID-19. However, Flutter is implementing strategies to reduce these emissions through efficiency improvements and alternative energy sources.
• Scope 2 Emissions: Flutter is also addressing indirect emissions from purchased electricity, heating, and cooling. In 2022, Scope 2 emissions decreased by 26%, showcasing the company’s commitment to energy efficiency and exploring renewable energy options.

Supplier Engagement:

Recognizing the importance of supply chain emissions, Flutter is working closely with its suppliers to encourage emission reduction initiatives. The company aims to collaborate with suppliers committed to sustainable practices, with a goal to allocate a significant portion of its procurement budget to such suppliers by 2025.

Targets & Initiatives:

Flutter has implemented targeted initiatives to drive progress towards its emission reduction goals:

• Emission Reduction: The company aims to reduce its direct emissions by 50% by 2025, compared to its 2019 baseline. This reduction target aligns with the Paris Agreement goals and signifies Flutter’s proactive stance on climate change mitigation.
• Renewable Energy Investment: Flutter is investing in renewable energy sources to power its operations. The company has committed to sourcing 100% renewable electricity globally by 2023, demonstrating a shift towards cleaner energy solutions.
• Energy Efficiency Improvements: Flutter is implementing energy-saving measures across its facilities, such as LED lighting upgrades, HVAC system optimizations, and building insulation improvements. These efforts aim to enhance energy efficiency and reduce overall energy consumption.

Social Performance

In this section, we explore the company’s initiatives related to social responsibility, employee engagement, and community involvement. For a comprehensive view of Flutter Entertainment social endeavors, you can also visit  ESG Social page.

Social Impact

Internal Social Initiatives

Flutter values its employees and actively supports initiatives that promote employee well-being and community engagement. The company recognizes the importance of a positive workplace culture and invests in programs to foster a sense of belonging and support among its workforce. Internal social initiatives include:

• Employee Well-being Programs: Flutter offers comprehensive employee well-being programs, including mental health support, wellness activities, and access to health resources. In 2022, the company recorded a 79% colleague engagement rate, indicating a high level of satisfaction among employees.
• Diversity and Inclusion: The company is committed to diversity and inclusion in the workplace. In 2022, Flutter’s workforce comprised 45% women and 55% men, showcasing a diverse gender balance. The company promotes a diverse workforce through recruitment practices that prioritize equal opportunities for all individuals.
• Training and Development: Flutter invests in employee training and development programs to enhance skills and career growth. In 2022, the company provided over 5,000 hours of training to employees globally, focusing on professional development, mentorship, and continuous learning.

Community Engagement

Flutter actively engages with local communities through various corporate social responsibility (CSR) initiatives and community outreach programs. The company aims to make a positive impact beyond its business operations and contribute to the well-being of the communities where it operates. Community engagement efforts include:

• Charitable Donations: Flutter supports charitable organizations and community projects through financial contributions. In 2022, the company donated £8 million, impacting 441,046 people globally and supporting 110 charities. The donations were directed towards causes related to education, healthcare, environmental conservation, and social welfare.
• Volunteer Programs: Employees are encouraged to participate in volunteer programs and community service activities. In 2022, Flutter employees volunteered over 10,000 hours, engaging in activities such as community clean-ups, food drives, and mentoring programs. The company provides paid time off for volunteering and organizes volunteer events to support local initiatives.

Responsible Marketing

Flutter adheres to responsible marketing practices to ensure ethical and transparent communication with its customers. The company promotes responsible gambling and consumer protection through its marketing campaigns. Responsible marketing initiatives include:

• Promoting Responsible Gambling: Flutter incorporates responsible gambling messaging in its marketing materials, encouraging players to gamble responsibly. In 2022, the company’s safer gambling tools, collectively known as Play Well, saw a 40.1% usage rate, aiming for 75% by 2030. Flutter actively seeks Responsible Gambling Council accreditations and has invested £60 million in promoting safer gambling.
• Consumer Protection: Flutter ensures that its marketing materials comply with regulatory guidelines and standards. The company provides clear and accurate information to consumers, including terms and conditions of gaming services. Flutter prioritizes transparency in its marketing communications to build trust with customers.

Employee Feedback

Flutter values feedback from its employees and uses platforms like internal surveys and reviews to assess employee satisfaction levels. The company’s commitment to transparency and open communication fosters a positive work environment where employees feel heard and valued.

• Employee Feedback Mechanisms:
  • Internal Surveys: The company conducts regular employee surveys to gauge satisfaction levels, gather feedback on workplace culture, and identify areas for improvement. In 2022, Flutter’s internal surveys indicated a 78% overall satisfaction rate among employees.
  • Open-Door Policy: Flutter maintains an open-door policy, encouraging employees to share their ideas, concerns, and suggestions with management. This open communication channel allows for constructive dialogue and collaboration between employees and leadership.
  • Performance Reviews: The company conducts performance reviews to provide feedback to employees and assess their professional development. In 2022, Flutter conducted over 2,000 performance reviews globally, contributing to employee growth and career advancement.
• Glassdoor Ratings: Flutter’s Glassdoor ratings provide valuable insights into employee sentiment and satisfaction levels. With a Glassdoor rating of 4.1 out of 5 stars and a 84% recommendation rate, Flutter receives positive feedback from employees. This rating reflects a generally favorable perception of the company’s workplace culture, leadership, and opportunities for professional growth.

By prioritizing environmental sustainability, social impact initiatives, and maintaining a positive work environment with open communication channels, Flutter demonstrates its commitment to responsible business practices and employee well-being. The company’s efforts to engage with communities, promote diversity, and ensure responsible gambling practices contribute to its overall positive impact on society.

Governance

For any organization, governance forms the backbone of its operations, shaping its transparency, integrity, and regulatory compliance. It encompasses the structures and processes through which companies are directed and controlled. To delve deeper into the governance practices within the iGaming industry, visit Better World Casinos – ESG and Governance.

Governmental Performance

Flutter Entertainment plc upholds stringent governmental performance standards, frameworks, and policies to ensure responsible and transparent corporate governance. These frameworks are designed to align with regulatory requirements and promote ethical business practices.

Frameworks & Policies:

• Corporate Governance Policies:
  • Regular updates on legal, regulatory, and governance enhancements.
  • Compliance with UK Gambling Act Review and market regulations.
  • Review and approval of key governance policies and frameworks.
• Diversity and Inclusion Policies:
  • Monitoring diversity targets and initiatives across the organization.
  • Ensuring diversity in Board composition and senior management.
• Safer Gambling Policies:
  • Implementation of safer gambling initiatives and compliance measures.
  • Response to regulatory changes and ongoing evaluation of policies.
• Financial Policies:
  • Sound financial management and oversight of capital structure.
  • Approval of major financial decisions and investment strategies.

Organizational Setup

• Chair (Gary McGann): Leads the Board, ensuring effective governance. Oversees strategic direction and major issues. Facilitates stakeholder engagement and awareness.
• Chief Executive Officer (Peter Jackson): Guides strategic development and innovation. Holds overall responsibility for Group performance. Leads the Executive Committee and operational management.
• Chief Financial Officer (Jonathan Hill): Manages financial affairs and supports strategic objectives. Proposes sound financial policies and leads M&A activities. Responsible for investor relations and financial reporting.

Oversight

• Non-Executive Directors: Provide external perspective and challenge decisions. Scrutinize management performance and review controls. Monitor diversity initiatives and serve on Board Committees.
• Senior Independent Director (Holly Keller Koeppel): Acts as a liaison with shareholders in key matters. Leads the Chair’s performance review and offers support.

Committees

• Audit Committee: Ensures financial reporting integrity and risk management. Reviews internal controls and external audit performance.
• Remuneration Committee: Sets Executive remuneration policies and reviews industry trends. Monitors wider workforce remuneration and diversity.
• Nomination Committee: Oversees Board composition, succession planning, and diversity. Advises on Board and Committee effectiveness evaluations.
• Risk and Sustainability Committee: Reviews reputational impact, safer gambling strategies, and sustainability. Monitors cyber risks, betting integrity, and data protection.
• Market Disclosure Committee: Ensures compliance with market regulations and disclosure obligations. Oversees information disclosure to stakeholders and regulatory bodies.

Sanctions, Controversies, and Concerns:

Flutter Entertainment plc has encountered regulatory challenges resulting in fines and settlements, notably with the UK Gambling Commission and Gibraltar Authorities. These incidents underscore the importance of continuous improvements in social responsibility measures and regulatory compliance.

Regulatory Penalties and Responses:

May 25, 2023: Flutter fined £490,000 by UK Gambling Commission for erroneous promotional push notifications to self-excluded Paddy Power customers.

CEO Ian Brown expressed regret, affirming Flutter’s dedication to leading in safer gambling.

Involvement in UK Government Gambling Act Review (GAR):

• April 27, 2023: Embraced GAR as pivotal for industry reforms and customer safeguarding.
  • • Active engagement in consultations, advocating for evidence-based approaches.

Emphasis on Responsible Gaming Initiatives:

• Play Well Strategy:
  • Implemented deposit limits for customers under 25.
  • Reduced online slot stakes.
• Committed 1% of revenue to Research, Education, and Treatment (RET).

Financial Impact and CEO Statements:

• Preemptive Measures:
  • Eliminated £150 million in annual UK business revenue.
• Estimated £50-100 million impact from proposed GAR measures.
  • CEO Ian Brown (May 25, 2023): Acknowledged error, swift corrective actions.
  • CEO Peter Jackson (April 27, 2023): Supported GAR, stressed constructive engagement with regulators.

Flutter Entertainment plc remains committed to enhancing social responsibility, compliance measures, and responsible gaming practices.

UN Sustainable Development Goals (SDGs)

Flutter Entertainment’s commitment aligns with several UN SDGs, including:

• SDG 3: Good Health and Well-being: Through initiatives like Play Well, Flutter focuses on responsible gambling and mental health.
• SDG 7: Affordable and Clean Energy: Transitioning to renewable energy tariffs demonstrates a commitment to sustainable practices.
• SDG 8: Decent Work and Economic Growth: Internal initiatives promote employee well-being, professional development, and a supportive work environment.
• SDG 10: Reduced Inequality: Work Better initiatives emphasize diversity, equity, and inclusion within the company.                                                                                    

Awards and Ratings

Flutter Entertainment has garnered recognition for its commitment to excellence and social responsibility, receiving prestigious awards such as:

• The 2023 SBC Awards: Employer of the Year, Gold Award: Acknowledged for outstanding practices in employee satisfaction and workplace culture.
• The 2023 Global Gaming Awards: Social Responsibility of the Year, Runner-Up: Recognized for proactive initiatives and impactful contributions to responsible gaming.

These accolades underscore Flutter’s dedication to fostering a positive work environment while prioritizing social responsibility within the gaming industry.

Conclusion

Overall Summary and Verdict

Flutter Entertainment, a dominant force in the global betting and gaming industry, showcases a commendable commitment to sustainability, responsible gaming, and transparency. The company’s diverse portfolio of brands, including Paddy Power, Betfair, and Sky Betting & Gaming, positions it as a leader catering to varied consumer preferences. Flutter’s robust ESG strategy, highlighted by its “Play Well” initiatives and dedication to diversity and inclusion, aligns with industry trends towards heightened player protections and customer well-being.

While Flutter Entertainment has faced regulatory challenges and fines, such as those with the UK Gambling Commission, its swift corrective actions and proactive engagement reflect a commitment to rectifying errors and enhancing social responsibility measures. Positive ratings on platforms like Glassdoor and prestigious awards, including the 2023 SBC Awards for Employer of the Year, indicate a favorable perception among employees and stakeholders.

Answering Initial Questions

• Transparency: Flutter Entertainment scores a 4 for transparency, with detailed insights provided through sustainability reporting and governance practices.
• ESG Strategy: The company earns a 4 for its robust ESG strategy, with initiatives like the “Play Well” strategy, reflecting a commitment to responsible gaming and diversity.
• Sanctions and Concerns: Flutter’s score is 2, reflecting challenges with past regulatory fines. However, its proactive approach and improvements indicate a positive trajectory.
• 3rd Party Rating: With a score of 3, Flutter Entertainment maintains a positive public reputation and has received industry recognition for its efforts.

Verdict & Scorecard

Final Score: 3.5 (Rounded to 4 – Good – Nice choice! Go have fun!)

Strengths:

• Transparency: Flutter’s detailed reporting provides insights into sustainability efforts and corporate governance.
• ESG Strategy: The company’s initiatives, like the “Play Well” strategy, demonstrate a commitment to responsible gaming and diversity.
• 3rd Party Rating: Positive public ratings and awards validate Flutter’s efforts, reflecting a favorable perception among stakeholders.

Areas for Improvement:

• Sanctions and Compliance: Continued focus on compliance and social responsibility measures to avoid future sanctions.
• ESG Strategy: Ongoing monitoring and updates to ensure effectiveness and alignment with recognized standards like GRI.
• Public Reputation: Seeking additional awards and recognitions could enhance Flutter’s public perception and industry standing.

Flutter Entertainment is on a positive trajectory towards sustainable and responsible gaming practices. Continued efforts in compliance, transparency enhancement, and maintaining a robust ESG strategy will further solidify its position as a leader in the global betting and gaming landscape.

Note: This scorecard is based on the BWC rating system, providing an assessment of Flutter Entertainment’s sustainability performance across transparency, ESG strategy, sanctions, controversies, and public ratings. It offers a snapshot view for stakeholders and investors, highlighting the company’s strengths and areas for improvement.

Disclaimer data: This analysis is based on publicly available information, and future reviews will explore ESG reporting and potential improvements through interviews with company representatives.

Source Materials: Refer to provided hyperlinks for detailed sources.