Kindred Group

ESG Summary

Transparency			Kindred demonstrates commendable transparency through its sustainability reporting and governing practices The company’s ESG/Sustainability report, adherence to governance norms, and disclosure of environmental initiatives showcase transparency. Providing more details on waste and water management could further enhance transparency.
ESG Strategy			Robust ESG strategy evident in its ambitious climate targets, responsible gambling initiatives, and commitment to diversity and inclusion. The company’s initiatives align with global sustainability goals and demonstrate a proactive approach to corporate responsibility. Adopting recognized reporting standards like GRI could enhance the strategy’s accountability and comparability.
Sanctions			Kindred Group has faced challenges, including sanctions and warning fees from regulatory authorities. Addressing regulatory challenges is crucial for maintaining trust and mitigating reputational damage. Effectively addressing these issues is necessary for improving the score in this category.
3rd Party Rating			Positive Glassdoor ratings and awards reflect favorable aspects of the company’s social performance. Positive perception among employees and stakeholders. Continuously enhancing public ratings and receiving more awards could further improve this score.

Company Overview

Name	Kindred
Company Type	Publicly owned: traded at Nasdaq Stockholm
Location(s)
Presence	Online and land-based casinos, betting shops
Products	Sportsbook, poker, and casino
Brands	32Red, Bingo.com, Casinohuone, Storspelare, Kolikkopelit, Maria Casino, Highroller, Vlad Cazino, Ottokasino, Unibet
Licences
Key markets
ESG/Sustainability Report	Yes ( From 2023 Annual Report)
Reporting standard	GRI, CDP, TCFD, MSCI in terms of ESG rating, CSRD for the 2025 annual sustainability report (based on the 2024 calendar year)

About the Company

Kindred Group, a publicly traded company listed on the Stockholm Stock Exchange, operates in the online gambling sector. Founded in 1997 and headquartered in Malta, the company offers a range of online gambling services including sports betting, casino games, poker, and bingo. With operations in various markets across Europe, the UK, Scandinavia, and selected states in the US, Kindred Group holds licenses from reputable regulatory bodies such as the Malta Gaming Authority, the UK Gambling Commission, and others.

As part of its commitment to transparency and sustainability, Kindred Group publishes an ESG/Sustainability report as part of its annual reports and communications. The company’s reporting standards align with its internal ESG framework, which incorporates recognized standards such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD).

Key Performance Indicators (KPI)

Financial Performance Summary

Financial Performance – Key Figures (GBP million)

Kindred Group’s financial performance demonstrates strong revenue growth and improved profitability, showcasing its ability to operate profitably within regulated markets. The substantial increase in Underlying EBITDA indicates effective cost management and operational efficiency, contributing to the company’s overall success in 2023. The investment of GBP 4.5 million in sustainability initiatives further underscores Kindred Group’s commitment to environmental and social responsibility, aligning with its long-term sustainability goals.

ESG Overview

In this section, we explore the Environmental, Social, and Governance (ESG) practices of Kindred Group. 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 Kindred Group’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

Kindred Group’s Environmental, Social, and Governance (ESG) strategy is robust and multifaceted. The company is dedicated to reducing its environmental footprint by aiming for carbon neutrality by 2027 and investing in renewable energy sources. Socially, Kindred promotes employee well-being, diversity, and inclusion, evident in its diverse workforce and initiatives supporting mental health and work-life balance. In terms of governance, the company maintains high ethical standards with a comprehensive Code of Conduct and strict anti-corruption measures. These initiatives reflect Kindred’s commitment to sustainability, responsible business practices, and transparency in 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 Kindred’s environmental strategies, you can also visit ESG Environment page.

Environmental Performance

Emissions Reduction and Renewable Energy

Kindred Group is dedicated to reducing its environmental impact, particularly in the area of carbon emissions. The company has set ambitious targets to achieve carbon neutrality by fiscal year 2027, with fiscal year 2019 as the base year. Here are the latest emission reduction figures:

The company aims to reduce absolute Scope 1 and 2 greenhouse gas emissions by 90% by 2027 from the 2019 baseline. Notable initiatives include:

• Carbon Neutrality Commitment: Kindred Group has pledged to achieve carbon neutrality, implementing measures to significantly reduce its carbon footprint.
• Renewable Energy: Actively investing in renewable energy sources, Kindred is transitioning away from fossil fuels to power its operations. This shift not only reduces emissions but also contributes to the growth of clean energy.

Waste Management

Kindred Group is also focused on efficient waste management practices. The company has implemented programs to reduce waste generation and promote recycling across its operations. These initiatives aim to minimize environmental impact and create a more sustainable operation.

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 Kindred’s social endeavors, you can also visit their ESG Social page.

Social Impact

Internal Initiatives

Kindred Group values the well-being and diversity of its workforce, fostering a positive internal environment:

• Employee Well-being: Extensive support programs are available for employees, covering mental health, work-life balance, and professional development. Reviews on Glassdoor reflect a positive sentiment, with a 66% recommendation rate and a 3.8 rating.
• Diversity and Inclusion: The company boasts a diverse workforce of 2,453 employees from over 60 nationalities across 12 locations in 2023. Kindred aims for a 50:50 gender balance in leadership roles and has made progress in senior and executive management representation.

External Initiatives

Kindred Group is actively engaged in responsible gambling practices and community involvement:

• Responsible Gambling Measures: The “Journey Towards Zero” initiative focuses on eliminating revenue from harmful gambling practices, guided by a panel of experts. The company provides reliable metrics for the Swedish market, demonstrating transparency in its efforts.
• Community Engagement: Through “Kindred United,” an employee-led initiative, the company participates in volunteering activities and supports local communities. This engagement includes charitable donations, sponsorships, and community outreach programs.
• Responsible Marketing: Kindred Group ensures its promotional activities adhere to responsible marketing practices. This includes ethical advertising and communication to promote safe and responsible gaming behavior, in compliance with regulatory standards.

Kindred Group’s commitment to sustainability, responsible operations, and social impact underscores its leadership in ESG practices within the online gambling industry. As the company continues to implement initiatives and meet its targets, it sets a commendable example for corporate responsibility and positive community engagement.

Governance and Compliance

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.

Governance and Compliance

Ethical Standards and Governance Framework

Kindred Group maintains high ethical standards and a robust governance framework to ensure accountability and transparency:

• Code of Conduct: The company has a comprehensive code of conduct outlining ethical principles and guidelines for business conduct. Employees are expected to adhere to these standards in their daily operations.
• Anti-Corruption Measures: Kindred Group has strict anti-corruption policies and controls in place to prevent bribery and unethical behavior. Compliance with UK legislation on the Corporate Criminal Offence of Failure to Prevent the Facilitation of Tax Evasion is diligently reported.
• Sustainability Charter: In 2023, Kindred Group further solidified its commitment to environmental stewardship and social responsibility by developing a sustainability charter. This charter serves as a guiding framework for the company’s sustainability initiatives and practices.
• Tax Policies: The company adheres to rigorous tax compliance policies and practices responsible tax planning. Kindred Group seeks to minimize tax risks while ensuring compliance with relevant regulations.
• CEO Compensation: Executive compensation practices at Kindred Group are designed to align with long-term value creation and sustainability goals. This ensures that executive leadership is incentivized to prioritize sustainability and corporate responsibility.

Corporate Structure

Organizational Setup

Kindred Group operates within a well-defined corporate structure to facilitate effective governance and operational management:

• Divisions and Departments: Various divisions within Kindred Group focus on different product lines and geographical markets. Departments such as marketing, finance, operations, and compliance work collaboratively to support business objectives.
• Subsidiaries: Kindred Group may have subsidiary companies operating in different jurisdictions or engaged in complementary business activities. These subsidiaries contribute to the overall business strategy and diversification of the company’s portfolio.

Committees

To support its governance framework, Kindred Group has established specialized committees responsible for key areas:

• Audit Committee: The Audit Committee oversees financial reporting, internal controls, and risk management processes. It ensures transparency and accuracy in financial operations.
• Nominations Committee: This committee recommends suitable candidates for board positions and assesses board member qualifications. It also facilitates the selection of competent and diverse board members.
• Remuneration Committee: Responsible for determining executive compensation to align with company performance and shareholder interests, the Remuneration Committee ensures that executive pay is tied to sustainable business practices and long-term value creation.

This comprehensive approach to environmental and social responsibility, combined with strong governance practices, positions Kindred Group as a leader in sustainable business practices within the gaming industry. The company’s commitment to ethical conduct, anti-corruption measures, sustainability, and effective governance underscores its dedication to responsible business operations.

Sanctions, Controversies, and Concerns

Despite its commitment to responsible gambling and compliance, Kindred Group has faced several controversies and regulatory challenges, drawing scrutiny from various authorities.

Sanctions by Swedish Gambling Authority (SGA)

• March 2020 Sanction:
  • In March 2020, the Swedish Gambling Authority imposed a significant sanction on Kindred Group, amounting to 100 million SEK (approximately £7.5 million).
  • The sanction likely stemmed from violations or breaches related to gambling regulations in Sweden.
  • Such a substantial penalty indicates serious concerns raised by the regulatory body regarding Kindred’s operations or practices.
• November 2022 Warning Fee:
  • Following the 2020 sanction, Kindred Group faced another penalty from the SGA in November 2022.
  • This time, the warning fee amounted to 10.9 million SEK (approximately £0.8 million), suggesting continued issues or non-compliance with Swedish gambling regulations.
  • The consecutive penalties within a relatively short timeframe indicate ongoing challenges in meeting regulatory standards.

Legal Troubles in Norway

• Legal Issues:
  • Kindred Group has encountered legal troubles in Norway, a market with strict regulations concerning online gambling.
  • Norway has taken a stringent stance against unauthorized gambling operators, leading to legal battles for companies like Kindred.
  • These legal challenges likely involve efforts by Norwegian authorities to enforce their gambling laws and prevent unauthorized operators from targeting Norwegian consumers.

UK Gambling Commission Fine (March 2023)

• AML and Social Responsibility Failures:
  • In March 2023, the UK Gambling Commission, a prominent regulatory authority, imposed a fine on Kindred Group.
  • The fine was issued for Anti-Money Laundering (AML) and social responsibility failures.
  • AML failures suggest deficiencies in the company’s measures to prevent money laundering activities within its operations.
  • Social responsibility failures indicate shortcomings in ensuring the well-being of customers, particularly regarding responsible gambling practices.

Impact and Response

• Reputational Damage:
  • These controversies and regulatory penalties can lead to reputational damage for Kindred Group.
  • Negative publicity and scrutiny from authorities may erode trust among stakeholders, including customers and investors.
• Compliance Efforts:
  • In response to these challenges, Kindred Group is likely intensifying its compliance efforts and strengthening its internal controls.
  • Enhanced measures for responsible gambling, AML compliance, and regulatory adherence are crucial to address the issues highlighted by regulators.
• Financial Implications:
  • The significant fines and penalties imposed by regulatory bodies can have financial implications for the company.
  • These costs may impact profitability and financial performance in the short term, necessitating careful financial management and mitigation strategies.
• Long-Term Strategy:
  • Kindred Group’s response to these controversies will likely involve a comprehensive review of its operations and policies.
  • A renewed commitment to compliance, enhanced training programs, and closer collaboration with regulatory authorities may be part of its long-term strategy.
  • Building a culture of compliance and responsible gambling will be essential to regain trust and maintain its position as a reputable player in the industry.

UN Sustainable Development Goals (SDGs)

Kindred Group contributes to several UN SDGs

	Through responsible gambling initiatives and reliable metrics, Kindred Group promotes the well-being of its customers.
	The company supports diversity and inclusion, fostering a multicultural workforce across its locations.
	With a commitment to achieving a 50:50 gender balance in leadership, Kindred Group actively promotes gender equality.
	Creating a positive work environment, the company’s initiatives contribute to decent work and economic growth.
	Kindred Group’s commitment to diversity and inclusion works towards reducing inequality within the organization.
	Climate targets, waste reduction, and carbon offsetting initiatives align with responsible consumption and production.
	Ambitious climate targets, reduced emissions, and carbon offsetting efforts contribute to addressing climate change.
	Engaging in partnerships with various organizations, Kindred Group collaborates to achieve sustainable development goals.

Kindred Group’s commitment to these UN SDGs demonstrates its holistic approach to sustainability and responsible business practices. By actively engaging in initiatives that align with these goals, the company not only contributes to a better environment and society but also sets an example for the industry. From promoting well-being and diversity to reducing its carbon footprint and fostering partnerships, Kindred Group plays a significant role in advancing the UN’s Sustainable Development Goals.

Awards and Ratings

Kindred Group’s commitment to excellence and social responsibility has earned the company notable recognition and awards in recent years.

Career Companies of the Year 2022 (Sweden)

• Awarded Title:
  • Kindred Group was honored with the title of “Sweden’s Career Companies of the Year 2022.”
  • This prestigious award acknowledges the company’s dedication to fostering a positive work environment and promoting employee growth and development.
  • The recognition reflects Kindred’s efforts in creating opportunities for career advancement and supporting its workforce.

Most Impactful Social Responsibility Initiative Award

• Casino Guru Award Recognition 2023:
  • Kindred Group received the “Most Impactful Social Responsibility Initiative” award.
  • This accolade highlights the company’s significant contributions and efforts in the realm of social responsibility.
  • By implementing impactful initiatives and programs, Kindred Group has demonstrated a commitment to making a positive difference in society.

Impact and Significance

• Validation of Efforts:
  • These awards serve as validation of Kindred Group’s efforts in various domains, including workplace culture, social responsibility, and sustainability.
  • Recognition from reputable institutions and award bodies reinforces the company’s position as a leader in responsible business practices.
• Enhanced Reputation:
  • Awards such as “Career Companies of the Year” and “Most Impactful Social Responsibility Initiative” contribute to enhancing Kindred’s reputation among stakeholders.
  • Customers, investors, and employees are likely to view the company favorably due to its demonstrated commitment to excellence and positive impact.
• Motivation and Inspiration:
  • Such recognitions also motivate and inspire Kindred Group to continue its initiatives and strive for further excellence.
  • The awards act as catalysts for continuous improvement and innovation within the company’s operations and social initiatives.

Kindred Group’s receipt of awards such as “Sweden’s Career Companies of the Year 2022” and the “Most Impactful Social Responsibility Initiative” award underscores its commitment to fostering a positive workplace culture and making a meaningful impact on society. These accolades not only validate the company’s efforts but also contribute to its reputation as a socially responsible and forward-thinking organization in the industry.

Conclusion

Overall Summary and Verdict

Kindred Group, a leader in the online gambling sector, demonstrates a commendable commitment to sustainability, responsible gaming, and transparency. The company’s dedication to disclosure and accountability is evident through its extensive reporting practices, including annual reports, an ESG/Sustainability report, and alignment with recognized reporting standards. With a robust ESG strategy, Kindred Group is actively working towards ambitious targets, such as achieving carbon neutrality and promoting diversity and inclusion.

Answering Initial Questions

• Transparency: Kindred Group scores high in transparency, evident through its comprehensive reporting practices, earning a score of 4.
• ESG Strategy: The company demonstrates a robust ESG strategy, aligning with recognized standards and ambitious targets, earning a score of 5.
• Sanctions and Controversies: Kindred Group’s score is 3, reflecting past challenges with sanctions and controversies, though improvements are noted.
• 3rd Party Ratings and Recognition: With a score of 4, Kindred Group maintains a positive public rating and has received numerous awards for its sustainability and social responsibility initiatives.

Verdict & Scorecard

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

Strengths:

• Transparency: Kindred’s extensive reporting provides detailed insights into its sustainability efforts.
• ESG Strategy: The company’s well-defined ESG strategy, including ambitious targets, showcases a commitment to sustainability.
• 3rd Party Ratings: Positive ratings and awards validate Kindred’s efforts and reflect a favorable perception among stakeholders.

Areas for Improvement:

• Sanctions and Compliance: Continued focus on compliance and ethical practices to avoid future sanctions.
• ESG Strategy: Ongoing monitoring and updating of targets to ensure progress towards sustainability goals.
• Public Perception: Seeking further awards and recognitions could enhance public perception and recognition of sustainability efforts.

Kindred Group 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 industry.

Disclaimer data: This scorecard is based on the BWC rating system. This review is based on publicly available information, and future reviews may incorporate deeper analyses and interviews with company representatives.

Source Material: Refer to the provided hyperlinks for detailed sources.