Roman Semiokhin is a successful entrepreneur with a wealth of experience within the gaming industry. Being a committed philanthropist, Roman has donated millions to Cyprus and Russia to prevent wildfires. And he also made donations in the fight against COVID-19.
This article will look at environmental, social, and governance, otherwise known as ESG. And how ESG considerations are increasingly gaining traction, accelerating consumer demand for more sustainable business approaches – particularly in the gaming industry.
What Is ESG Investing?
Environmental, social, and governance investing establishes standards for corporate behavior. Socially conscious investors use ESG to screen potential investments. ESG covers aspects such as how a company safeguards the environment, for example, by examining its policies on climate change. Social criteria explore how the organization manages its relationships with employees, customers, suppliers, and the community in which it operates. Meanwhile, the governance element deals with corporate leadership, audits, internal control, executive pay, and shareholder rights.
Otherwise known as impact investing, responsible investing, or sustainable investing, ESG investing requires the investor to assess companies based on ESG criteria, analyzing a broad range of policies and behaviors. Ultimately, the goal of ESG investors is to ensure that the companies they invest in are responsible stewards of the environment. Moreover, it aims to check the corporate citizens led by accountable management.
Environmental aspects may cover issues such as waste, climate policies, natural resource conservation, energy use, and treatment of animals. ESG considerations also explore potential environmental risks a company may face in the future, identifying how the company is managing those risks.
Meanwhile, the social element deals with the company’s relationships with both internal and external stakeholders.
Does the company support local community projects or encourage employees to volunteer there?
Is the workplace condition demonstrate a high regard for the health and safety of employees?
Does the company hold suppliers to its ESG standards? Does the company exploit customers or otherwise act unethically?
In governance, ESG standards ensure an organization adopts accurate and transparent accounting methods, pursues diversity and integrity in leadership, and maintains accountability to its shareholders. ESG investors may need assurances from the company that it will avoid conflicts of interest in board members and senior executive selection, political affiliation to obtain preferential treatment, and engaging in illegal conduct.
How Is ESG Transforming the Gaming and Betting Industry?
The gaming industry has emerged as a trailblazing industry in ESG. Historically, there have been challenges in the gaming and betting industry’s reputation due to concerns over lack of diversity, underage play, and gambling addictions. However, in recent years, the gaming industry has taken bold steps in driving positive change, prioritizing increased social responsibility and governance in its day-to-day operations.
From establishing processes and systems to ensure higher governance standards to investing in addiction prevention, the gaming sector is embracing its commitment to ESG transformation.
An industry report published in December 2021 revealed that the gaming and betting industry made significant contributions to communities, sports, and the economy, creating thousands of jobs and raising millions for worthy causes – including funds for local communities, charities, and sports clubs.
Beyond this, the industry has cultivated an increasingly inclusive, engaged, and generous community that strives to donate to charitable causes in innovative and unexpected ways. Launched by Amazon, the Twitch live-streaming platform unites gamers and enables them to play for the collective good, raising more than $83 million for charitable causes in 2020 alone.
In the past, the gaming industry has proven exceptionally adaptable, responding to shifts in user demands at lightning speed. The industry is constantly evolving, with the rapid advancement of technology highlighting a continual need for improvement to stay ahead of the curve. Against this backdrop, it is perhaps unsurprising that the forward-looking gaming and the betting sector has earned a strong reputation for pioneering the ESG transition, forging ahead on ESG matters to make the industry more proactive and outward-looking
