Sustainability is a growing focus within the gaming industry, as emphasized by Tracy Skenandore from Light & Wonder. She notes the broader global movement towards Environmental, Social, and Governance (ESG) priorities.
“The gaming industry is beginning to understand that sustainability needs to be a top priority,” Skenandore says. “Our clients, namely the casinos, are also prioritizing it, which means we must prioritize it as well.”
This evolution has been ongoing for the past ten years and now stands as a crucial growth strategy element for larger firms, she elaborates.
Light & Wonder is in a remarkable position. Formerly known as Scientific Games, the company boasts a long history in the lottery and gaming sectors. Three years ago, it refocused by divesting its lottery and sports betting arms to concentrate solely on gaming. This transition, Skenandore describes as “an incredible experience,” allowed the organization to reconceive its approach to ESG, considering its significance to employees, clients, and the industry.
“We conducted extensive surveys to establish a baseline for our ESG efforts and identified the commitments we aim to emphasize as a company. These have been integrated into our global strategy and priorities.
“Like many industry peers, we’re relatively early in our ESG journey, which is why we’ve implemented an internal governance infrastructure. Given our expansive and global presence, how do we engage our clients across different markets?”
“Gone are the days of greenwashing”
Under an ESG council that reports to the board of Light & Wonder, committees dedicated to social impact, diversity, equity and inclusion, environmental sustainability, responsible gaming, and supply chain oversight have been instituted.
These initiatives have proven to be “immensely beneficial,” Skenandore remarks. “We are more aligned and can allocate resources more effectively. This approach is something I strongly recommend for any organization to contemplate. With a broad reach like ours, establishing such structures and working groups is key to effective mobilization.”
Skenandore highlights the collaborative nature of ESG efforts, stating, “I don’t see competitors in the ESG space; I see partners.”
“A burgeoning cooperative environment has emerged where peers, competitors, and clients unite, embarking on this ESG journey together,” she observes. “While each company has its own priorities, witnessing the openness towards collaboration within the last few years, resulting in a doubled impact, is inspiring.”
Light & Wonder investors taking interest
Interest from investors in Light & Wonder is on the rise. Skenandore notes that they are fielding increasing inquiries from this group.
“I participate in numerous phone interviews annually with investors eager to understand our ESG commitments, delve into our data, and explore our pledges.
“These conversations are welcome,” she asserts. “The era of greenwashing, where companies made empty claims, is over. There’s a demand for tangible proof, which I embrace. It levels the playing field not just for gaming but for all corporations, ensuring everyone is held accountable for their ESG investments.”
While significant investment dollars from ESG investors are available, Skenandore states that prioritizing ESG is fundamentally the right step. “We’re firm believers in this principle. Supporting social impact, sustainability, and responsible gaming is crucial for our employees, company, and clients in all the areas we operate.”
“Industry is now prioritising ESG”
Being ranked among the top ten companies in gaming by FiNTEL Sustain highlights the industry’s dedication to ESG, Skenandore says. “It is a testament to gaming suppliers, operators, and anyone involved in the industry that this new era calls for prioritizing ESG.
“This recognition reflects the concerted efforts we’ve made to promote ESG across our organization, instill awareness in our corporate culture, engage our investment group, and resonate this ethos within our customer base. From this perspective, driving each pillar forward is straightforward.
“But our journey is just beginning – we firmly believe we have opportunities to drive growth in ESG and we’re committed to it,” she concludes.
Over the next two weeks, iGB will be counting down the ten highest ranked companies in FiNTEL Sustain’s Sustainability Plus rating system. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.