Kindred Group plc Sustainability Report 2020
Making gambling 100% enjoyable We transform gambling
1 Sustainability Over the last 20 years, Kindred Group highlights 2020 has brought together some of Europe’s 2 Company overview 2 Kindred at a glance most successful online gambling 4 CEO’s review brands – forming one of the largest 6 How we create value 8 Sustainability at Kindred online gambling companies in the 8 Our purpose and strategy world. We rest on our purpose to 10 Our priority areas 12 Sustainability transform gambling into a more trusted governance source of entertainment and positive 14 Materiality assessment contributor to society. That includes 15 Engaging with our stakeholders offering our 30 million customers 16 Our priority areas 16 Responsible a superior experience while helping Gambling them feel safe and secure. 24 Maintaining integrity 30 Running a compliant business 36 Being Kindred 42 Contributing to our communities 48 GRI index 51 Notes to the sustainability report 56 Glossary About this report Kindred’s Sustainability Report has been prepared in accordance with Global Reporting Initiative (GRI) Standards: Core Option. The report covers activities in the 2020 calendar year and numbers are for the year ending 31 December 2020. We continuously www.kindredgroup.com track our material ESG issues – our most important environmental, social and governance impacts – to ensure we are addressing the most vital topics. @KindredGroup The report is focused on material issues and activities in line with our stakeholder concerns and relevance, as per the extensive materiality assessment updated in 2020 and continuous stakeholder dialogues. We strive @KindredGroup for accuracy, timeliness, clarity and reliability in our communication.
Testing agency eCOGRA has conducted a KindredGroup thorough audit of all 2020 commitments set out in 2019 and on the reported progress on these. The report itself has not been subjected to independent third‑party assurance. Kindred Group plc
For more information about Kindred and our operations, please visit www.kindredgroup.com/sustainability. KindredGroup-plc Sustainability highlights 2020 Company overview at Kindred Sustainability Our priority areas
In 2020, we launched We are proud to become the first an exciting collaboration gambling operator to develop and launch with Zafty Intelligence a public KPI to openly track progress on using AI to tackle the percentages of Gross winnings revenue problem gambling. derived from harmful gambling. GRI content index Notes
Together with the European During 2020, we became part Football for Development of the first pan-European code of Network, we launched Fair conduct on responsible advertising
Sport 4 All, educating football for online gambling published by Glossary clubs across Europe on anti- the European Gaming and Betting match-fixing procedures. Association (EGBA).
To play our part in limiting global Our bug bounty programme has been warming, we have set Science Based made public on the HackerOne platform Targets for our emissions by 2023. to make our brand websites safer. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
An internal support programme, We are happy to share that our CDP called Kindred Hive, has been (formerly Carbon Disclosure Project) developed to support all score has improved to a B. colleagues working from home and improve mental health during the pandemic. 52%
reduction in CO2e emissions per employee. 1 Kindred at a glance
Over the last 20 years, Kindred Group In 2020, we have as a Group provided (Kindred) has brought together pre‑game betting and live betting products some of Europe’s most successful within sports betting, poker, casino & million online gambling brands – forming games and bingo, generating over GBP 30 customers worldwide one of the largest online gambling 1 billion in Gross winnings revenue which companies in the world. represents an annual growth of 24 per cent. We have proudly offered nearly 30 million customers worldwide a great form of digital About us entertainment, and an average of 46 million The Company was founded as Unibet in 1,564 transactions have been made daily. employees, representing 1997 on the principle that there is always a better way to operate in the gambling Our team of 1,564 employees, representing sector to ensure a truly great experience 62 nationalities, have worked together every – we think of it as Kindred being run by day to deliver the best and safest possible players, for players. gambling experience for our customers. 62 nationalities with extensive experience The ambitious work on always delivering We hold local gambling licences in and highly developed skills the best and safest experience has Australia, Belgium, Denmark, Estonia, continued during the COVID-19 pandemic France, Germany (Schleswig-Holstein), despite the fact that the vast majority Ireland, Italy, Romania, Sweden and the of our employees have been working UK. In the wake of the ruling overturning from home since early March 2020. GBP m the Professional and Amateur Sports 1,130 in Gross winnings revenue Protection Act (PASPA) in 2018 in the USA, A changing regulatory landscape we have seen states open for online sports In recent years we have witnessed a major betting and casino, opening the doors to shift across Europe and in the USA, in terms a potentially huge market. Today, Kindred of the transition from .com to .country, holds local licences in Indiana, New Jersey million meaning that markets are adopting a 46 and Pennsylvania. During 2021, Kindred transactions on average per day local licence system, with the Netherlands is planning to enter Illinois and Iowa. expected to follow in 2021. Increased focus on control mechanisms, restrictions and Kindred is listed on the Nasdaq Stockholm tighter regulation have been put in place Large Cap list and is a member of the in an attempt to curb excessive gambling. European Gaming and Betting Association 14 Operators have adapted to a new market local licences around the world (EGBA) and founding member of the reality and work with stakeholders to International Betting Integrity Association ensure that the level of channelisation (IBIA). Kindred Group is audited and – the share of customers who choose certified by eCommerce Online Gaming to play with locally licensed operators Regulation and Assurance (eCOGRA) for % – remains high in a digital environment 60 compliance with the 2014 EU directive, the of revenues from locally where the alternative is only one click away. Recommendation on Consumer Protection licensed markets and Responsible Gambling (2014/478/EU). Digitalisation unlocks opportunities As we look forward, our heritage of A growing online industry “offering players a better and safer way The online gambling industry came to gamble” remains crucial. With the about in the mid-1990s when retail introduction of 5G mobile systems in the sports betting and casino games Share of product/offerings USA, Europe and Asia, gambling will truly became available on computers. become a new form of entertainment Even after 30 years, this shift can still for a wider audience. We will experience be considered as being in its early days, gambling in new ways and probably see but the online industry is growing at an a new form of gamification in society. annual pace of approximately 11 per cent At the same time, the technological while growth in the offline industry is development can help make gambling broadly flat. In 2020, the global online safer, more secure and more sustainable penetration was approximately 20 per cent. than ever before. Innovation in technology, marketing and data offer huge opportunities to get even closer to our customers, providing world-class digital entertainment. kindredgroup.com We believe a successful business is about future-proofing our operations to be economically, socially and environmentally sustainable in the long term. Online casino 51% Sports betting 43% Poker 3% Bingo & other games 3% 2 Company overview at Kindred Sustainability
Our locations and licences Offices Licences
USA Our priority areas
Pennsylvania New York
New Jersey GRI content index Indiana
Europe Notes
Sweden Stockholm Estonia Glossary Denmark Ireland Copenhagen
Germany United Kingdom London Antwerp Belgium
France Paris Romania
Milan Australia Northern Italy Territory Madrid Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred Darwin Gibraltar Malta
Queensland
New South Wales Sydney South Victoria Australia Western Australia
3 CEO’s review A year like no other
Kindred’s fantastic team has“ proven that we can give our customers a great and safe experience despite a global pandemic. ”
Henrik Tjärnström CEO kindredgroup.com
4 Company overview at Kindred Sustainability When I wrote this letter a year ago, we were seeing the first signs of the We have decided to openly report COVID-19 disease reaching Europe. “ I did not then expect it turning into a on our share of revenue from our global pandemic that has paralysed the world and caused great distress highest customer risk category. for countries, organisations and ” individuals; 2020 did not become Our priority areas the year I envisioned.
Adapting to a new market reality The pandemic has put us, and every other Our annual Sustainable Gambling Equally important is our environmental organisation, to the test. I have on several Conference, this year held digitally for footprint, which as a digital business is occasions through the years referred to the first time, is one of many initiatives limited. With the pandemic preventing Kindred’s strong culture and ability to focused on facilitating open discussion travel, our impact has decreased further. adapt to new market realities. Seldom has amongst stakeholders on how to Nevertheless, we make sure to offset our GRI content index this been as true as during the past year. achieve a more sustainable gambling entire carbon footprint. We have this year As a team we have always challenged the environment. During the conference also established Science Based Targets status quo and found new ways forward. in October, we introduced a project in to ensure Kindred aligns to the Paris We have overcome obstacles and pushed partnership with Zafty Intelligence, which Agreement, and I am very pleased to note ahead. The way Kindred’s team swiftly you can read more about on page 23, that Kindred’s Carbon Disclosure Project and smoothly shifted to a working from exploring the use of AI to give customers score has once again improved to a B. home environment without any negative greater control over their gambling, and to impact to our business and customer provide researchers with important data. Integrating sustainability through Notes experience is remarkable. improved governance Reporting on our journey towards zero It is my firm belief that sustainability needs During the spring, employee engagement We have continued to invest in technology, to be an integrated part of our corporate groups and management teams focused updating our control tools and proprietary strategy, governance process and business on keeping morale high and ensuring detections system (PS-EDS), making model. To ensure we move in this direction wellbeing was a top priority. We developed it more accurate with a wider range of we have set up a Sustainability Council internal support networks, launched a detection markers based on the fifth and a Governance, Risk and Compliance tailored employee support programme edition of the Diagnostic and Statistical Council. These groups work to establish Glossary called Kindred Hive, and we learned how Manual of Mental Disorders (DSM 5). cross-functional integration across Kindred to run digital social events with our teams. These are all important steps on our and ensure we continue to make progress I believe this has continued to help our journey towards zero per cent revenue on our sustainability commitments. employees as the pandemic increased from harmful gambling by 2023. We have in intensity during the autumn, with new now decided to openly report on our A year ago, I did not expect that our entire lockdowns in most of our markets. progress on this journey by disclosing operation would be run from our homes our share of revenue from our highest throughout 2020. So, it is with care I say Setting a new purpose to reflect customer risk category, those customers that I look forward to a year where we our long-term ambition who we deem to have a harmful gambling will be able to once again meet face to The COVID-19 pandemic also behaviour. Getting to zero will not be face in our offices across the world, but resulted in virtually all sports seizing an easy task, but we are confident we only when it is safe to do so. Kindred’s up in the second quarter of the year. can get there through collaboration with fantastic team has proven we can Consumers shifted their purchasing researchers, investing in technology, and give our customers a great and safe patterns from bricks and mortar to working with regulators to secure a robust experience despite a global pandemic. online. Gambling was no exception. regulated market. You can read more I am very proud of the team in these about our journey and data on page 18. difficult times, and I know we will get Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred Kindred has always had the ambition to through this challenge as well. be a leader in creating a safe and secure Being a positive contributor to society environment for our customers who The second part of our purpose focuses see gambling as entertainment. Equally, on being a positive contributor to society. we believe that we have a role to play in Apart from the contribution through building a better future in our communities. taxes, employment, sponsorships, and For this reason, we decided to revise our being compliant with local regulations, we Henrik Tjärnström purpose statement to better reflect our work closely with our partners to engage CEO long-term ambitions. Our new purpose is in communities. Our sponsorships with Malta, 12 March 2021 to “transform gambling by being a trusted Swedish Elite Football, Derby County source of entertainment that contributes Football Club, Club Brugge, Paris Saint- positively to society”. A bold and important Germain, and the European Football for purpose that will require Kindred to work Development Network, to name a few, closely with regulators, researchers, all have dedicated community initiatives. partners and peers.
5 How we create value
Input of resources Transforming gambling
Societal and relationship capital We deliver a great customer experience We put our customers at the heart of everything we do and are million constantly improving to offer the best experience. That includes 30 a safe and agile platform, a multi-brand approach and global scale customers worldwide, and additional and local relevance. relationships with suppliers, partners and decision-makers. We provide solid returns We break new ground and find new, better ways to meet customers’ expectations by investing in innovation, technology, culture and Human capital our people.
We operate a sustainable framework 1,564 A responsible and sustainable business is a successful business, employees, representing 62 nationalities and that goes as well for our industry. We always strive to set best with extensive experience and highly practice when it comes to responsible gambling, maintaining integrity developed skills. and contributing to our communities.
Tech capital > GBP 45m is invested yearly in developing our technical platform which allows us Our brands to predict what a particular customer is interested in, and how they play.
Trust capital 72% of our customers say they use us as their primary provider. We have required levels of system and data security to ensure that gambling is conducted fairly and openly. Our behaviour monitoring system helps customers stay in control.
Financial capital GBP 268m in free cash flow. kindredgroup.com
6 Company overview at Kindred Sustainability Our priority areas What we deliver Value creation
Customers % Our vision is to make gambling 84 Customer 100 per cent enjoyable, and that Satisfaction Score our customers enjoy safe, fair and
fun games. We have developed GRI content index responsible gambling tools and detection system to help customers Casino & Games Sports betting stay in control. 51% 43%
Owners and investors % Notes We strive to generate long-term value 40 in total return for our shareholders and investors.
Bingo & Poker other games Glossary 3% 3% Employees % Our employees are unified by 82 a strong culture based on our of our employees values. We give access to a great feel that Kindred GBP 1,130m GBP 287m office environment, training and is a great place in Gross winnings revenue underlying EBITDA development. As well as competitive to work benefits and great events.
24% 14 annual growth local licenses Business partners GBP m We want to be a stable partner to our 47 in sponsorship suppliers and partners. We contribute value 2020 Report Sustainability plc Group Kindred by earnings and employment and share technological development. ~60 million ~11,000 transactions handled in tech releases during 2020 a single day
Society GBP m We want to be an active participant in 272 > % generated to 250 95 our local communities and contribute million sports and average pay-back ratio governments via tax income and job opportunities. racing bets to our customers in tax We help combating climate change and we give back via sponsorships, charity and sharing knowledge.
7 Our purpose and strategy
Our vision is to make gambling Becoming the number one operator Sustainability as a core theme 100 per cent enjoyable, for everyone. Sustainability is at the heart of Kindred’s In order to deliver on this, Kinded has In 2020, we revised our purpose business operations and is embedded highlighted sustainability as a core theme statement to better reflect our long- in our corporate strategy to transform in our Group strategy and thereby ensuring term ambitions. Our new purpose is gambling. Our business is based on it is embedded in every business decision. to “transform gambling by being a three areas: Sustainability cannot and should not trusted source of entertainment that be an isolated area of our operations, contributes positively to society”. > Always the best deal and product which is why we constantly work on integrating sustainability frameworks > Licence to operate across the Company, as well as adopting Transforming gambling > Ability to achieve results a governance structure to facilitate that Kindred has always had the ambition it happens. to be a leader in creating a safe and These areas are broken down into secure environment for our customers. 11 focus areas. Kindred’s sustainability Risk and risk management Equally, we believe that we have a role work is then focused on the five priority As the industry faces several uncertainties to play in building a better future in our areas in which we know we can have an and challenges, and as Kindred has grown communities. Our business and strategic impact and create real value. See model through the years in size and revenue, good direction rests on this purpose and we on page 9. risk management is critical now more than use our knowhow and experience to ever. Uncertainty about future events is a lead the way. Ensuring sustainable growth natural feature of all business operations We see great value in delivering and the Group has implemented a holistic We strive to give players a superior sustainable growth and shared value risk management process to ensure that experience while helping them feel for our customers, shareholders, risk is managed proactively. safe and secure. By investing in employees and the communities around behavioural research, predictive us. Our focus on driving a sustainable Kindred divides its principal risks artificial intelligence (AI) technologies, business ensures that we keep our legal into general risks and industry-specific a thriving sports ecosystem and local and social licence to operate and maintain risks, and includes strategic, operational, community initiatives, we bring value our customers’ trust. Having healthy, financial and compliance-related risks. to society, contributing to improved long-lasting customer relationships Detailed information about our principal health, wellbeing and positive long-term and being a positive contributor to our risks and uncertainties can be found in outcomes. We know that doing the surroundings gives us a clear competitive the Kindred Annual Report 2020. right thing and earning trust sustains advantage. By improving this advantage, our business, supports the industry and acting in a responsible way today, and widens our impact by contributing Kindred safeguards the ability to do positively to society. good business tomorrow.
Building relevance in society – Sustainable Gambling Conference 2020
On 21 October 2020, almost 700 registered attendees from across the gambling industry gathered virtually to discuss how the online gambling industry can take advantage of technological advancements to build a more sustainable industry.
The 2020 Sustainable Gambling Conference (SGC) was Kindred’s fifth annual conference and is a key output of Kindred’s sustainability work. We believe that cooperation across the industry is crucial for a sustainable industry and the prevention of problem gambling.
kindredgroup.com The theme for 2020 was how technological advancements can be used to build a more sustainable industry. Speakers discussed the potential of using AI in order to prevent, During the conference, Kindred presented WATCH OUR SUMMARY detect and mitigate harmful gambling, its funding of a new self-control app VIDEO FROM SGC 2020 acknowledging that the full potential developed together with Zafty Intelligence. www.sustainablegambling.com/ has not yet been achieved. During the The app uses AI to learn patterns from sustainable-gambling- years to come, we will most likely see an a user’s problem gambling. Read more conference-2020/ exponential development of AI and how about the Zafty app on page 23. we realise its potential. 8 Company overview at Kindred Sustainability Our business model great customer iver a expe del rien We ce
rand app Multi-b roach Glo ba
l Our priority areas rm sc tfo a la le p & le lo gi c a a st deal a l r & e be nd p e fe th ro le a ys d v a t our custome uc a S w pu rs f ts n l We irs c
A – t e
R
e
s t
p n
o
e
i
n
c
–
i s
s
f
n i W f GRI content index
b staina o
u b e
l i
e s l
e e
t g
g &
w
u G n
ri ro l
e
o
a o
u w l
e r
m
s
b
r k s
t
a
n h u
b l t
t
o
E l
a l
i
u
n
c
r
c
a
g
S
i
g
s n e Transforming L
M o
i i r n c t
a d gambling e s e i u l n s , n & s t s p t l a t c n e o r W i u y e o u e n i l s t p e i s a Notes n t a t o e v d g a r v o o n n o g p i d e n a n p n e a v n t i o e e r e e , r r r d i t a g r a u s s a h t S t r a l n t i b t c e t e d u r y y a h c u a s o e t g t u s t y e C ti it ro r u o n il h g b t d s n b d i t t e A n l a c r s u n o ib t p ro o o i u ra g ti s n m t ct ew a a m in ice k n v e b g brea o u – We n id l n to v e it o in Glossary f ie u e ro ra s r ru p m T R - e e un ata W w nin d d o g a ic an h rk com A scientif ac bus pliant ppro iness driven a Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred Responsible Maintaining Contributing Running a Being Gambling integrity to our compliant Kindred communities business
Read more about our business model and strategy on our website: https://www.kindredgroup.com/investors/business-model-and-strategy/ 9 Our priority areas
We believe a successful business stems > We strive to ensure that our operations Additionally, Kindred sets ambitious from future-proofing operations to be always meet the highest professional, commitments for each priority area in order economically, socially and environmentally compliance and ethical standards to drive a sustainable gambling business. sustainable. For us, this means making You can read more about the commitments > Become one of the world’s continual improvements and taking in this report starting on page 16. highest-ranked companies for responsibility for our operations. We set a employee engagement high standard for our sustainability work, Our most material SDGs including five priority areas, long-term > Equip the communities in which The UN Sustainable Development ambitions and bold commitments. we operate with the knowledge and Goals (SDGs) are 17 global goals that resources to build a better future form a blueprint for achieving a better and more sustainable future by 2030. Our priority areas Ambitions and commitments The goals call on governments, civil Our sustainability work is based on five Kindred has set three long-term ambitions: society, businesses and the general public priority areas: Responsible Gambling, to act to manage the challenges we all Maintaining integrity, Running a compliant > By 2023, we want to derive zero face related to poverty, inequality, climate business, Being Kindred and Contributing Gross winnings revenue from change, environmental degradation, to our communities. For each of these harmful gambling and peace and justice. The goals are priority areas, a clear focus guides the interconnected and within each goal sustainability work going forward: > By 2023, we want to achieve a are a number of targets and indicators. 50/50 gender split in our senior > Making gambling 100 per cent enjoyable management team Kindred has identified three priority SDGs, > We always strive to behave with integrity > By 2023, we want to procure 100% the ones we contribute the most to, and and fairness in everything we do to of our electricity from renewable four supporting SDGs. In the beginning of maintain the trust of our customers, sources of energy 2020 we identified which targets, within the regulators and society as a whole each SDG, we contribute to the most and have linked these to our own KPIs. kindredgroup.com
7.3 By 2030, double the global rate of improvement in Will be developed in 2021 energy efficiency 10 Company overview at Kindred Sustainability Alignment with the UN Sustainable Development Goals
Responsible Maintaining Running a Being Contributing Gambling integrity compliant Kindred to our Our priority areas business communities GRI content index
Priority Priority area(s) Specific SDG target(s) Indicators
SDGs & material topics Notes 3.4 By 2030, reduce by one third premature % revenue from problem gambling SDG 3 Responsible Gambling mortality from non-communicable diseases (reporting began in 2021) Good health Contributing to our communities through prevention and treatment and promote % of customers using control tools and well-being > Responsible gambling mental health and well-being % of customers adopting healthier and player protection gambling behaviour after intervention > Ethical marketing Number of sponsorships and partnerships > Product transparency focusing on local communities and initiatives Glossary 8.5 By 2030, achieve full and productive % employees feeling Kindred is a great SDG 8 Being Kindred employment and decent work for all women and place to work Decent work > Employee engagement men, including for young people and persons with % employees feeling Kindred’s corporate and economic > Employee training disabilities, and equal pay for work of equal value values reflect who we are today growth and development > Diversity, equity and inclusion 16.4 By 2030, significantly reduce illicit financial and % employees completed anti-money SDG 16 Maintaining integrity arms flows, strengthen the recovery and return of laundering and/or anti-match Peace, justice Running a compliant business stolen assets and combat all forms of organised crime fixing training and strong > Integrity in sports betting institutions > Anti-corruption 16.5 Substantially reduce corruption and bribery % employees completed > Anti-money laundering in all their forms anti‑bribery training > Tax transparency % revenues from licensed markets Supporting SDGs 1.3 Implement nationally appropriate social Will be developed in 2021 SDG 1 Contributing to our communities protection systems and measures for all, including
No poverty > Responsible gambling 2020 Report Sustainability plc Group Kindred floors, and by 2030 achieve substantial coverage and player protection of the poor and the vulnerable > Community involvement management 4.4 By 2030, substantially increase the number Will be developed in 2021 SDG 4 Being Kindred of youth and adults who have relevant skills, for Quality > Employee training employment, decent jobs and entrepreneurship education and development
5.5 Ensure women’s full and effective participation Will be developed in 2021 SDG 5 Being Kindred and equal opportunities for leadership at all levels of Gender > Diversity, equity decision-making in political, economic and public life equality and inclusion 7.2 By 2030, increase substantially the share Will be developed in 2021 SDG 7 Contributing to our communities of renewable energy in the global energy mix Affordable > Green buildings and and clean energy management energy 7.3 By 2030, double the global rate of improvement in energy efficiency
11 Sustainability governance
The ultimate governance and supervisory Kindred’s Executive Management is International frameworks body on sustainability in Kindred is responsible for execution and ensuring > EGBA Code of Conduct on with the Board of Directors. The Board sustainability is embedded in the Responsible Marketing reviews and confirms the guidelines for organisation. Responsibility for strategic > Science Based Target initiative our sustainability framework to ensure alignment, recommended activities, and long-term capacity for value creation. carrying out specific sustainability activities > Agenda 2030 These guidelines are formulated in our lies with the Sustainability Manager and > CDP (Formerly Carbon sustainability policy. a network of business owners across the Disclosure Project) business. This ensures that the functions with the most impact and opportunity How we are organised > Global Reporting Initiative (GRI) to influence behaviours are empowered In 2020, as part of our continued Standards: Core Option to drive change. To improve corporate improvement and increased focus accountability for sustainability, Kindred on sustainability governance, Kindred The regulatory landscape is constantly has linked sustainability improvements implemented a Sustainability Council evolving and there are several laws, to employee incentives. as well as a Governance, Risk and regulations and principles being developed Compliance Council. The Sustainability which will most likely have an impact Policies guiding our sustainability work Council is comprised of committed and on our business. Kindred is continuously Internal guidelines experienced business owners representing all monitoring new legislation within > Supplier code of conduct aspects of Kindred’s sustainability priority sustainability and the green economy, areas. The Council is sponsored by the > Sustainability policy such as the development of the Task Group Chief Executive Officer. The Council Force on Climate-related Financial > Supplier terms and conditions meets quarterly to update on sustainability Disclosures (TCFD) and the European matters ranging from strategic planning, > Dividend policy Union’s Taxonomy. progress on ongoing commitments and > GDPR policy initiatives, and tracking of sustainability KPIs. Based on the outcome of > Modern slavery act Sustainability Council meetings, the Sustainability Manager presents a quarterly update on sustainability items to the KINDRED HAS SEVERAL GUIDELINES AND POLICIES GUIDING OUR SUSTAINABILITY WORK. Executive Management team and to the YOU CAN READ MORE ABOUT THEM ON OUR WEBSITE: www.kindredgroup.com/about/ Audit Committee at its quarterly meetings. corporate-governance/policy-documents/?year=Policies kindredgroup.com
12 Company overview at Kindred Sustainability Our governance model
Board of Directors (Audit Committee) Our priority areas
(Maximum quarterly agenda slot and update report) GRI content index
Group Executive Management Team
(Minimum quarterly agenda slot and monthly update report) Notes
Group Sustainability Council Glossary
(Minimum quarterly meetings of sustainability leads for departments (Commercial, Legal, RG, Cyber Security, Sports Betting Integrity, HR, Communications))
Operational working groups
(Minimum half-year meetings) 2020 Report Sustainability plc Group Kindred
External accreditations
MSCI AAA Carbon Footprint ESG Transparency CDP Great Place to Best Partner Nasdaq score B Work certified in Workplace in Australia and UK Tech in UK
13 Materiality assessment
During the autumn of 2020, we completed our second materiality Stakeholder group Material topics raised Stakeholder assessment. The assessment helps dialogue us define, determine and prioritise the governmental, social and environmental Owners and investors > Responsible gambling Interviews topics that matter most to us and our and player protection key stakeholder groups. > Ethical marketing > Customer data integrity
The list to the right is an overview of the Business partners > Responsible gambling Interviews stakeholder groups that were engaged in and player protection the materiality assessment and the topics > Integrity in sports betting identified as the most material within > Customer data integrity each group. For this year’s assessment, we added three topics: financial stability; Employees > Responsible gambling Web-based survey, innovation; and regulatory stability. and player protection interviews, workshop > Cyber security How we did it > Anti-money laundering The stakeholder dialogues took the shape of in-depth interviews and surveys Customers > Cyber security Web-based survey on five markets. Customers, employees, > Customer data integrity owners, investors, business partners > Anti-corruption and industry associations were asked to rate and consider the 21 topics in terms of relevance.
Subsequently, we gathered a group More relevant Environmental aspects of Kindred’s internal stakeholders, 1 Green buildings and 4 18 representing all areas of our business, Most material topics 17 energy management 14 to analyse and assess each topic in 15 7 2 Responsible terms of both its relevance to the various 5 business travel 1921 stakeholder groups and the impact of Material topics10 3 Waste management each topic on Kindred’s business and the 6 9 8 Most material topics Most material
Relevance 16 external environment in which we operate. Social aspects 13 4 Responsible gambling An updated matrix for 2020 and player protection 20 to The final result is an updated materiality 5 Ethical marketing stakeholders 11 matrix, presented to the right. The topics 6 Product transparency Less material topics 12 2 1 categorised as most material are of 7 Integrity in sports betting 3 high relevance to Kindred’s stakeholders 8 Employee engagement 9 Diversity, equity and have a greater impact on Kindred’s
business or external environment. and inclusion The topics that were rated as less 10 Employee development Less relevant material remain important to us and are and training areas upon which we continue to focus. 11 Community involvement management Similar to the 2017 assessment,
Governance aspects topics material Less responsible gambling and player protection, 12 Responsible sourcing cyber security, customer data integrity and Less impact More impact 13 Tax transparency anti-money laundering, are categorised Assessed impact on Kindred’s business and external environment 14 Anti-money laundering as the most material topics. This year, 15 Anti-corruption new topics have been placed in the 16 Fair competition most material category: anti-corruption; 17 Customer data integrity employee training and development; 18 Cyber security financial stability; and regulatory stability. 19 Financial stability 20 Innovation 21 Regulatory stability kindredgroup.com
14 Engaging with our stakeholders Company overview at Kindred Sustainability We know we cannot achieve our ambitions on our own. Therefore, Our Our we engage with a diverse range of stakeholders to deliver progress on customers people our sustainability strategy, and we continue to seek partnerships and collaborate with experts. We are driven by a desire to offer our Our people are our strongest asset. customers the best online gambling We rely on attracting and retaining Our priority areas experience. To do this we need to top talent to deliver on Kindred’s Ongoing dialogue with our stakeholders continue to engage with them. strategy to ensure sustainable guides the choices we make in our growth and profits. effort to create a more sustainable business and industry. Throughout the year, we engage with our stakeholders via surveys, meetings, investor relations Example activities Example activities programmes, participation in industry > Customer satisfaction surveys > Annual Great Place to Work survey seminars, through our customer support > Social media > Quarterly snapshot surveys GRI content index department and social media platforms. > Focus groups > Exit interviews with > Customer service communications departing employees Dialogue with stakeholders helps > App reviews > Quarterly performance us to better understand their views. > Customer events review sessions Engagement helps us explore how we can collaborate with stakeholders to improve our operations and create long‑term value Notes in a sustainable way. ~127,000 80% customers replied to customer of employees responded to the annual satisfaction surveys in 2020 Great Place to Work survey in 2020 Glossary
Our Our partners Our investors and suppliers communities
As a publicly listed business on We work with multiple partners. Kindred believes in being an active Nasdaq Stockholm, we provide We strive to build open and participant in its local communities. investors with detailed and transparent long‑term relationships with all information to help their understanding strategic partners and suppliers. of our strategy and performance.
Example activities Example activities Example activities Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred > Individual investor meetings and calls > Contract negotiation process > Hosting our annual Sustainable > Annual General Meeting > Regular contact Gambling Conference > Financial reports > External benchmarking > Proactive engagement with > Quarterly meetings, webcasts > Online training regulators, decision-makers and teleconferences for analysts, and partners investors and financial media > Local charity support and events > Annual awareness surveys
300+ >1,000 690 individual investor meetings Football players and coaches have regulators, researchers, therapists, participated in the online training on industry representatives and other rules and laws around match-fixing, experts registered for our virtual as part of our SEF-sponsorship Sustainable Gambling Conference
15 Responsible Gambling
By working together, across gambling operators, regulators, reformed problem gamblers, researchers, other stakeholders and through technological advancements, we strive to offer customers a superior experience while ensuring they feel safe and secure. We want all players to enjoy the thrills, excitement and feeling of community that represent gambling at its best.
2020 highlights 58,000 personalised and targeted responsible gambling messages have been sent to customers after detection in our player monitoring system, PS-EDS1
70% of our customers deposit less after their first detection in our behaviour monitoring system
76% of our customers adopt healthier gambling behaviour after their first detection
12% of our customers use non‑mandatory control tools
kindredgroup.com 690 researchers, therapists, regulators, operators and other experts registered to attend the online Sustainable Gambling Conference
16 1 Kindred Group platform, excluding the USA. Company overview Making gambling 100 per cent enjoyable Key Completed
Long-term ambition by 2023: Ongoing Zero Gross winnings revenue Not on track, behind derived from harmful gambling schedule to meet target at Kindred Sustainability
Progress of commitments
What we said in 2019 What we did in 2020 Status Our priority areas Continue to educate our customers 32Red’s “Know Your Limits” campaign, Unibet’s in responsible gambling by ensuring “Stay in Control” campaign, responsible gambling communication campaigns on messages on boxing canvases in the UK, industry sustainable consumption message collaboration in Denmark and responsible gambling are carried out across our markets. promotion in the UK are some examples of Kindred Group’s responsible gambling initiatives during the year. GRI content index
Take leadership on industry-wide We hosted an online conference with almost 700 collaboration and knowledge sharing registered attendees. The focus for the day was by hosting internal events and the fifth on how the online gambling industry can take annual Sustainable Gambling Conference. advantage of technological advancements to build a more sustainable industry. Notes Continue to support the responsible Two research papers, conducted by Kindred’s in- gambling research field by developing house researcher through the PhD supervision of two or more research papers in the Professor Mark Griffiths, have been finalised and field by the end of 2020 and continue are awaiting publication. We have also released to implement relevant research findings an online research library to highlight and share to our systems and processes. relevant pieces of research. Glossary Enhance detection capabilities for Development of a KPI to openly track progress on our player monitoring system, PS-EDS, the percentages of Gross winnings revenue derived by increasing the number of indicators from harmful gambling. based on relevant research findings as a step towards the 2023 ambition of 0% of revenue from harmful gambling. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred New sustainability commitments Target year
Ensure a minimum of 5% of each marketing budget 2021 is committed to safer gambling initiatives.
Make improvements to the current responsible 2021 gambling tool box to assist sustainable gambling.
Academically place our player monitoring system, PS-EDS, 2021 through peer review and collaboration with external researchers.
Openly report on percentage of revenue derived from 2021 harmful gambling to show progress towards our 0% ambition.
17 Responsible Gambling continued
Gambling should only ever be Zero Gross winnings revenue The figures are updated regularly and entertainment. The majority of derived from harmful gambling published on our website together with a customers enjoy our offering in Our vision is to make gambling 100 per measurement of the effectiveness of the sports betting, casino and games cent enjoyable. With that in mind we have Group’s sustainability work. The share of in the way it is intended – around a clear ambition that none of our revenue revenue derived from high-risk customers 98 per cent1 do so for fun. However, will be derived from harmful gambling was 4.3 per cent in Q4, 2020. this means that a small percentage by the end of 2023. During 2019, we set of our customers do not use our a baseline for how we can effectively products in the way they are intended. measure and report on our progress FOLLOW OUR JOURNEY TOWARDS ZERO ON For those customers, gambling can towards this ambition. This year, we have OUR WEBSITE harm their physical, psychological, developed, and in 2021 launched, a public www.kindredgroup.com/ emotional and financial health, and KPI to openly track progress on reducing sustainability/our-journey- possibly affect the lives of their friends the percentage of Gross winnings towards-zero/ and family. We fully acknowledge revenue derived from harmful gambling. our responsibilities as a gambling operator, and we are committed to do all that we reasonably can to prevent Share of revenue from customer risk level and minimise any harm caused by 100 gambling. Working together across the industry is key, along with developing 90 Social improved technology and sustainable 80 Low risk regulations that ensure customers 70 Medium risk stay within licensed markets. 60 High risk 50 kindredgroup.com 40 centage of GWR e r
P 30 20 10 0
1 ec.europa.eu/commission/presscorner/detail/en/ 2020 Q1 2020 Q2 2020 Q3 2020 Q4 18 IP_14_828. Company overview at Kindred Sustainability Detecting problematic customer In 2020, our Responsible Gambling behaviour team analysed 26,997 (2019: 20,374) For more than two decades, we have customer profiles in order to ensure invested heavily in developing technologies a personalised and targeted responsible to detect and prevent problematic gambling approach. Almost 58,000 gambling. We use our knowledge to create personalised and targeted messages a digital fingerprint of our customers’ were sent to customers in 2020 behaviour. This fingerprint allows us to (2019: 40,000). This resulted in 76 per cent Our priority areas monitor, detect and follow up on problem of these customers adopting a healthier activities, and provide targeted customer approach to their gambling. For example, protection, which is a central part of we observed that 70 per cent of our building a safe and responsible gambling customers deposit less after their first For Maris Catania, Head of Responsible environment. Our player monitoring system detection and receiving a responsible Gambling and Research at Kindred PS-EDS (Player Safety – Early Detection gambling message, and 10 per cent set Group, 2020 was an eventful and proud System) detects early signs of problem up a non-mandatory control tool in the year. She was nominated as one of the gambling and is a major pillar in Kindred’s following month. industry’s most influential women 2020, GRI content index sustainable gambling approach. by the B2B magazine iGaming Business, Providing responsible gambling tools and she was appointed to the advisory The system monitors customer behaviour, We invest in research to understand what board of Gamban. integrates data from each customer makes a control tool efficient in helping into a scoring system and alerts our our customers. Research shows that the iGaming Business describes Maris’ Responsible Gambling team if a customer most efficient tools are voluntary rather work: “Catania was the driving force shows signs of potential problem than mandatory but, depending on the behind Kindred’s ground-breaking gambling. Such signs range from chasing jurisdiction, we offer what local gambling Player Safety Early Detection System Notes losses and winnings, declined deposits regulation requires or recommends. (PS-EDS), which industry insiders say and reversed withdrawals, to time spent If a customer does not play responsibly – has stopped ‘thousands of players betting or browsing our platforms. even after following our recommendation from becoming addicted’ by making to implement our control tools – it can sure they are ‘caught early so they In 2020, we developed this system be necessary for them to take a break. don’t progress to the addiction stage, further by forming and finalising For those customers, we advise the thus allowing them to truly learn how an updated algorithm based on the option to self-exclude from gambling to gamble responsibly’”. Diagnostic and Statistical Manual of either for a short period, such as 24 Glossary Mental Disorders, Fifth Edition (also hours, or for a longer period, even up Maris has a Diploma in Gambling known as DSM-5, it is a US-published to five years, depending on the market. Addiction Counselling and Psychology classification system used by mental In some jurisdictions, we offer permanent and is currently completing her PhD health professionals) and artificial self-exclusion and in severe cases, we under the supervision of Professor intelligence. Kindred has also started close the account ourselves. We also Mark Griffiths. Her PhD focuses on looking at innovative ways of handling offer software that blocks gambling on analysing early signs of online problem interventions that are also scalable a free of charge basis to our customers gambling, responsible gambling tools and hopefully more reliable. and have integrated Gamban blocking and responsible gambling promotion. software into the self-exclusion process. Helping customers stay in control This means customers have the option If a customer starts to show signs of to not only self-exclude from Kindred problematic gambling behaviour, an brands, but also block their access automatic notification, via PS-EDS, to over 30,000 other online gambling is sent to our Responsible Gambling websites. Read more about Gamban at: team, which consists of analysts who https://gamban.com/ are trained in harm minimisation and consumer protection. Our team builds We also continuously invest in a range of 2020 Report Sustainability plc Group Kindred a profile of the customer and advises on control tools that offer such possibilities the most suitable responsible gambling as setting limits on depositing or on messages and tools to help them stay losses on a specific product group within in control on all our platforms, even if a specific timeframe, or even blocking the customer is not logged in. certain products entirely. Other control tools include reality checks, which allow customers to receive a time reminder and display clear information about gambling behaviour.
WATCH OUR PLAYER SAFETY – EARLY DETECTION SYSTEM VIDEO AT www.kindredgroup.com/sv/ sustainability/responsible- gambling/
19 Responsible Gambling continued
Proactivity with a positive impact Stronger together – 12 per cent (2019: 11.5 per cent) of our partnering to deliver change customers use one or more of our non- We work closely with a broad range mandatory control tools and we see a of stakeholders to investigate new and correlation between using the tools and innovative ways to expand our responsible staying in control. Chart 1 on the next gambling efforts. We have seen that page shows that, while the long-term collaboration between researchers and trend of self-exclusion is flat, the use operators can significantly enhance of voluntary control tools is increasing research in the area of responsible over time. gambling and we are involved in a range of research studies and sponsor a number Chart 2 shows the relationship between of PhD programmes. For instance, we the use of control tools and long-term have supported Matthew Vassallo’s PhD How does isolation self-exclusions for PS-EDS detected work focusing on revealing insights into customers. There is a clear uptake in online problem gambling and those who affect gambling the use of control tools in the group of are affected. behaviour? customers who have been identified in Societies across the world have our system as gamblers at risk and have In 2020, we continued our investment in experienced a new reality with the received personal advice as a result. the area of responsible gambling with COVID-19 pandemic forcing a vast It indicates that our proactive outreach leading researchers. Two research papers, proportion of the world population into approach does have a positive effect conducted by Kindred’s in-house researcher some form of lockdown and, possibly, on a customer’s level of control. through the PhD supervision of Professor quarantine. This has led to people Mark Griffiths, have been finalised and spending a lot more time at home which In recent years, the use of control are awaiting publication. One paper looks has put a new focus on activities that tools has increased which means at how consumer protection is presented might increase in times of loneliness or more customers stay in control through analysing different operators; boredom. Online gambling can be such and use our products as they are the other looks at the reliability of using an activity and isolation can lead to intended. We continually evaluate our voluntary self-exclusion as a proxy measure problematic gambling behaviour. responsible gambling tools’ impact and of problem gambling. are committed to providing the best During the year, Kindred has continued possible tools in the most efficient way. In October 2020, Kindred Group organised to proactively reach out to customers Kindred does not accept customers the fifth Sustainable Gambling Conference, through online responsible gambling spending more money than they can based on the simple idea of connecting messages, offering relevant tools and afford, and we do all we can to help the brightest minds across disciplines conducting calls and intervention when customers make informed choices to discuss how we can work together to necessary to ensure their wellbeing. and stay in control. secure a sustainable gambling industry. Due to the pandemic, 2020’s conference When summarising 2020, we see took place online with almost 700 that the share of detected cases of registered attendees, all focused on how problematic gambling behaviour the online gambling industry can take (2 per cent) has increased marginally advantage of technological advancements compared to 2019 (1.8 per cent). to build a more sustainable future. The biggest share of this increase took place during April to July, a time of Kindred’s online lockdowns in many parts of the world. research library The pandemic has given us new knowledge and helps us in our Kindred’s online research library, continuous work to minimise any harm available on our website, highlights from gambling. We always want our and shares relevant pieces of customers to enjoy online gambling research. In the library you can, for while feeling safe and secure. example, find some of Dr Jonathan Parke’s and Dr Adrian Parke’s recent pieces, including, “Getting grounded in problematic play”, which identifies proposed theories of problematic play. Research from Professor Mark Griffiths kindredgroup.com and Dr Michael Auer can also be found, such as the study, “An Empirical Study of the Effect of Voluntary Limit-Setting on Gamblers’ Loyalty Using Behavioural Tracking Data”, which suggests that players who set voluntary spending limits were more loyal to Kindred than those who do not.
20 Company overview
This is how our player monitoring system (PS-EDS) works at Kindred Sustainability
Four gambler types in the PS-EDS framework All our customers’ behaviour is classified into a scoring system. We base our risk classifications on four gambler types.
Low risk Moderate risk High risk Our priority areas
Social Regular Problem Pathological gambler gambler gambler gambler GRI content index Our tools1 Our responsible gambling tools are promoted through a dedicated responsible gambling page on all our brand sites and when appropriate through personal communications to our customers.
Customers detected Our tools – usage in percentage of active customers All customers in PS-EDS
2019 2020 2019 2020 Notes
Deposit limits help our customers to stay in control of their spend 6.55% 7.27% 17.92% 18.71%
help our customers to stay in control of their time Reality checks 2.77% 1.79% 2.42% 2.09% with alerts at 30m, 60m or 90m intervals
helps our customers control their gambling Loss limit 0.48% 2.70% by setting a loss limit on any product 0.51% 2.80% Glossary
helps our customers stay in control by blocking Self-exclusion access to their account for a set time period of 2.31% 5.88% > 6 months 2.97% 6.62% more than six months or indefinitely
helps our customers stay in control by blocking Self-exclusion access to their account for a set time period 2.23% 5.73% < 6 months 3.08% 6.65% of less than six months
let our customers take a break from specific Product products by restricting access for a set time period 1.04% 1.39% 4.97% 5.71% blocks Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
Chart 1 Chart 2 Monthly % usage of self-exclusions (6+ months) compared to Monthly % usage of self-exclusions (6+ months) compared to non-mandatory control tools (within all market active customers) non-mandatory control tools (within customers detected in PS-EDS)
25% 25% 22.9%
20% 20% 17.0%
15% 15% 12.2%
10% 8.9% 10%
5% 5% 0.8% 0.9% 1.2% 1.3% 0% 0% January 2018 – December 2020 January 2018 – December 2020 Self exclusion Voluntary control tools Self exclusion Voluntary control tools
1 Source: Kindred Group platform, excluding the USA. 21 Responsible Gambling continued
Supporting best practice in marketing New marketing initiatives Our ambition to transform gambling Kindred focuses on new ways of promoting UK Responsible includes our approach to marketing. its products in a socially responsible Gambling promotion Kindred is a provider of entertainment manner. This has resulted in a diverse Kindred Group is proud to go over and and we compete for people’s leisure time list of new initiatives during 2020: above what is required of a gambling and spend. We invest in marketing to company with regards to the promotion differentiate ourselves from competitors of responsible gambling. We have used because we believe in promoting our our position within sports sponsorship products and their features. At the same to promote and educate around time, we believe that advertising should responsible gambling and mental health. be carried out in a socially responsible This includes becoming the first and manner, and have adjusted our marketing only company to promote responsible approach accordingly. gambling on the front of the shirts of our sponsored clubs. For example, the Even if little is known about whether front of shirt messages “Stay In Control”, advertising actually contributes to problem “Play Responsibly”, “Set Your Limits” gambling1, as a leading proactive operator, and “Never Chase Losses”, clearly we want to minimise risk where we can. illustrate our commitment to promote Customers who self-exclude from a brand Mika Häkkinen was featured in Unibet’s campaign on Responsible Gambling responsible gambling as our most will not receive direct marketing from that visible sponsorship asset. We are also brand, and our ambition is to act carefully > Kindred has continued its focus on proud to promote responsible gambling and not market to any customer who does sustainable customer communication messages in approximately 30 per cent not wish to receive gambling advertising. with the conclusion of 32Red’s of our pitch-side LED advertising space. All of our marketing is executed in Know Your Limits campaign and the accordance with applicable laws and launch of a new Unibet campaign on general consumer protection legislation. responsible gambling featuring Mika In March 2021, the independent testing Häkkinen, the two-time Formula One agency eCOGRA will conduct an audit of world champion. The main theme Kindred’s progress and alignment with the of this initiative is “Stay in Control”. EU Recommendations III to XII to ensure our efforts in this area are on par with, or exceed, the recommendations.
We are proud to become part of the first pan-European code of conduct on responsible advertising for online gambling published by the European Gaming and Betting Association (EGBA) during 2020. The code is broad in scope and sets important standards for advertising content, across all media platforms, and dedicated measures for social media. Carl Frampton, three-time world champion boxer, is It has a particular focus on the protection featured in Kindred’s Know Your Limits campaign of minors and intends to complement > In the UK, Kindred has promoted and strengthen existing legal and self- responsible gambling on boxing regulatory frameworks for online gambling canvases as an extension of the 2019-20 advertising in Europe. season campaign to place responsible gambling messaging on the front of Affiliate marketing football shirts. As do football clubs, the In addition to our own marketing boxing community has a unique reach channels, we use affiliate partners and cut through with adult audiences to advertise on behalf of our brands. and, as such, is a great avenue for We maintain control of our marketing promoting healthier gambling behaviour outputs by carefully selecting the and remaining in control. affiliates, who are bound by our strict terms and conditions, including clear > In Denmark, Spillebranchen, the Danish affiliate advertising guidelines. We have association for online gambling operators kindredgroup.com zero tolerance towards any affiliate that and of which Kindred’s brand Unibet is breaches these terms and conditions and a member, produced several ads on the have entered into a collaboration with topic of responsible gambling. web monitoring services. These services continuously scan third-party sites to ensure our brands are promoted in a compliant and sustainable manner. 1 Hanss, Daniel & Mentzoni, Rune & Griffiths, Mark & Pallesen, Stale. (2015). The Impact of Gambling Advertising: In addition, the individuals and companies Problem Gamblers Report Stronger Impacts on Involvement, Knowledge, and Awareness Than Recreational that own and operate our affiliates are Gamblers. Psycho logy of Addictive Behaviours. 10.1037/adb0000062. “Responsible gambling and player verified in a similar way to our customers. protection” and “Ethical marketing” were both topics deemed most material in our Materiality Assessment. 22 The corresponding GRI topics can be seen in the GRI Index. Company overview at Kindred Sustainability Using AI to tackle problem gambling
In 2021, Kindred will partner with the The important work goes on in the European Association for the Study of background. Zafty’s unique machine Gambling (EASG) to launch the Bettor Time learning algorithms take the recorded app to its customers. The app can help activity and learn each user’s normal Our priority areas identify early signs of problem gambling to behaviour. Once this baseline has been its users. Bettor Time has been developed established, the system can monitor by Zafty Intelligence, a leading company in changes in activity, sometimes very mobile mental health assessment, using subtle, that might indicate early signs proprietary machine learning software to of problem behaviour; for example, a identify unique changes in user behaviour player who regularly bets for two hours associated with mental health issues. on a Saturday morning suddenly starting to play at midnight on a Tuesday. GRI content index Kindred’s long-term ambition is to The app will be owned and managed reach zero revenue derived from by EASG, who will control and distribute Based on the level of change in the user’s harmful gambling by 2023, and the the aggregated anonymised user data behaviour, the app will recommend use of the latest technologies will for academic research. The aim will be tailored features and support that will be key in tackling the issues related to share access to this app across all help the user to restore their gambling to problem gambling. markets and the wider industry, ensuring behaviour to a healthy level. that operators can offer their customers access to the app and improve their Launch during 2021 Notes responsible gambling efforts based The screen-time tracker application will on any research conducted. be finished during 2021. An initial launch on the Android mobile operating system How does the app work? will take place in the UK and France. On the surface, the self-control app is An iOS launch will follow thereafter, with essentially a time tracker that monitors further development and partnership a user’s time spent on gambling-related with other operators. activities across all operators. To measure Glossary their use, the app timestamps recognised gambling products that are open and front of screen. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
23 Maintaining integrity
Kindred’s priority around integrity rests on two pillars: sports betting integrity and integrity in Kindred’s platform in terms of cyber security and customer data protection. Our ambition is to always behave with integrity and fairness in everything we do in order to retain the trust of our customers, the regulators and society.
2020 highlights 61 vulnerabilities identified, with all high and criticals within our perimeter remediated 10 employees appointed to certified Privacy Champions 19 sports betting events reported as suspicious
85% of our customers believe that Kindred brands offer a trustworthy gambling experience kindredgroup.com
24 Company overview We always strive to behave with integrity Key and fairness in everything we do to gain Completed the trust of our customers, the regulators Ongoing and society as a whole Not on track, behind schedule to meet target at Kindred Sustainability
Progress of commitments
What we said in 2019 What we did in 2020 Status
Enhance our data governance New reporting process for General Data Protection framework to further improve Regulation (GDPR) breaches.
the data management process. Our priority areas
Continued rollout of our Internal We have a number of Privacy Champions across Privacy Champion programme. different markets and offices. We have developed This enables employees to become a continuous development policy to further increase certified in the field of data protection our Privacy Champions’ knowledge within the field. and privacy so they can act as experts
in their specific business area with the GRI content index support of a Data Protection Officer.
Develop and implement a collaborative Together with EFDN we developed and launched anti-match-fixing programme targeted the Fair Sport 4 All programme, educating at European Football for Development European football clubs on how to detect Network (EFDN) member clubs. and prevent match-fixing. Notes
Continue to develop and further improve Kindred has completed the first step which our internal defensive capabilities to be is to get listed. The second step, accreditation an accredited member of a recognised audit, is planned to be completed in early 2021. computer security incident response team (CSIRT) community by 2021. Glossary Implement significant verification Kindred has now finished the internal discovery deliveries, towards a Zero Trust concept phase and found a suitable system that will allow where no system, service or user operating us to apply zero trust concepts to our production from within the traditional perimeter is infrastructure. Implementation has started and automatically trusted. is planned for delivery by the end of 2021.
New sustainability commitments Target year
Empower our customers on the security of their account by 2021 offering cross-market, Strong Authentication capabilities, starting with Unibet.com.
Continue strengthening our foundations including internal 2021 Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred and external training, as well as further collaboration with regulatory and sports governing bodies.
Continue to develop and further improve our internal 2021 Defensive Capabilities to be an accredited member of a recognised CSIRT community.
Implement significant verification deliveries, towards a 2021 Zero Trust concept where no system, service or user operating from within the traditional perimeter is automatically trusted.
Continue to educate employees, organisations and sports 2021 clubs on sports integrity processes and procedures, using our commercial and corporate partnerships.
25 Maintaining integrity continued
We are dedicated to delivering a safe and seriously, and does as much as possible Fighting against phishing secure platform that people can use to to reduce identified risks to an acceptable The security team tests our employees enjoy our gambling products. We want level and manage them effectively. regularly without warning to raise our customers to experience a rewarding awareness of phishing attempts and journey through our digital gambling Back when we started the project, we the importance of information security platform and a crucial part of this is to thought it would facilitate the process generally. Once a week, fictitious phishing provide the required levels of system of applying for licences in new territories campaigns are sent internally, keeping and data security as well as a trustworthy and simplify the audits of existing ones. staff aware of attackers’ new “tricks” and gambling product. The data is proving us right: in 2020, we the importance of reporting all phishing saved more than 40 days during audits attempts made against them. in the Group Security team alone, and Building trust considerably shortened the audit process In 2020, we also fought actively against for our licence for the Swedish market. phishing attempts made on customers, in our platform collaborating with local authorities to take We offer hundreds of games on our Bug hunting to help down phishing platforms when applicable. platform, all of which are regularly tested identify vulnerabilities by independent accredited agencies We operate a bug bounty programme, Empowering our customers as well as local gambling authorities. through which we invite selected security with security opt-ins The international testing agency eCOGRA researchers to test the security of our Strong authentication or multi-factor (e-Commerce and Online Gambling various brand websites to discover authentication (MFA) is one of the Regulation and Assurance) examines vulnerabilities before they are exploited strongest security controls one can us and our suppliers annually to certify by malicious entities. We made this implement to fight against attacks on that the software is accurate, reliably and programme public in February 2020 customer accounts, such as credential securely maintained and operated, and on the HackerOne platform and we are stuffing or phishing. While Kindred’s that we and our suppliers are continuously constantly trying to expand its scope platform already offers the MFA option tested by other independent agencies. to cover all our externally facing brands on several key markets leveraging local, All suppliers undergo a rigorous due and services. During 2020, we increased well-adopted solutions such as BankID diligence process – in which everything the scope of the programme to include in Sweden, such options are unfortunately from corporate ownership to operational all Kindred brand websites and mobile not always available. suitability is assessed – before being apps. As our programme matures, we integrated into Kindred’s platform. have conducted several campaigns To address this, we are working on a offering extra reward for any vulnerability generic, cross-market MFA option, starting Trusting our cyber security found in specific critical areas, such as with Unibet.com. Once deployed, our clients We operate on a proprietary technical our customer authentication system. will be able to opt-in to strengthen the platform giving us the flexibility, scalability Through the programme, we identified 61 security of their account. This new feature and stability necessary to continue to grow vulnerabilities in 2020, two of which were will come on top of many other security as a business. The platform handles an of a critical nature and which have been controls we already have on the platform average of 46 million transactions per day resolved and remediated (2019: 92, 4). to protect customer accounts, such as our and processes the personal data of millions password audit framework (PAF), which we of customers, making cyber security one released on an open source basis in 2019. of our top priority areas. As a gambling operator holding financial funds for our How valuable a bug Becoming a CSIRT customers, we always strive to have the bounty programme CSIRT stands for Computer Security highest standards of security in place. Incident Response Team. For the last three We constantly adopt best-in-class controls can be years, Kindred has put a lot of effort into and tools and further innovate through At Kindred, we know that the regulatory building up internal capability on security new and emerging technologies to ensure requirements regarding security testing incident monitoring and response through we maintain the highest security levels. are not enough to protect against modern the security operations team. The step Kindred’s security team has a range of cyber security threats. That’s why we up in maturity we are committing to is ongoing projects to continue to protect our complement it with additional security to be accredited as a CSIRT. In 2020, we critical assets and to further increase the controls such as internal penetrations achieved the first step by being officially maturity of our cyber security governance. tests and our bug bounty programme. listed in the Task Force Computer Security Incident Response Teams (TF-CSIRT), a ISO 27001 security certification: In 2020, a security researcher reported widely recognised European community A strong commitment and an a weakness in one of our third-party that shares information and knowledge, already valuable investment platforms that, if exploited, could have offers assistance to other members during Since 2019, Kindred has been ISO allowed an attacker to bypass our know- incidents, and membership of which kindredgroup.com 27001:2013 certified for all our core your-customer (KYC) process in this allows us to leverage the skills of such a markets. ISO 27001 is the internationally specific area. The issue was verified by strong community in the incident response recognised specification for an information our cyber security team within 3 hours world. In 2021, we intend to complete the security management system (ISMS), and of the report, our partner maintaining the accreditation process, which will give us it is one of the most recognised standards platform was notified and mitigated the access to even more knowledge-sharing for information security. Being ISO issue within the next 8 hours, all of this groups, such as national CSIRT groups in 27001 certified shows all interested happening within the same day. some of the countries in which we operate. parties, including our regulatory bodies, that Kindred takes information security Thanks to this swift response we did not see any abuse of the system. 26 Company overview
Trusting the at Kindred Sustainability integrity of sport We see match-fixing as a threat to society as a whole. Sport is the largest global entertainment industry and billions of people around the world enjoy it. The popularity of sport and competition is Our priority areas driven by the unpredictable nature of the outcome, and the knowledge that there is always the chance of the unexpected. Taking the unpredictability away by fixing the outcome of an event puts the nature of sport in jeopardy. Match-fixing is a criminal act and a threat to sport and the entire sports entertainment industry. GRI content index
Match-fixing is also a threat to the gambling industry, not only because of short-term losses accrued by genuine customers who have been cheated by criminal activity but, more importantly, because if people lose faith in the honesty of a sporting event, there is no point in Notes placing a bet. This is why Kindred is fully committed to fighting match-fixing together with all other relevant stakeholders.
Partnering to tackle match-fixing Keeping customer data safe through > We appointed a number of Privacy Cooperation is key in combatting our data governance framework Champions across the business, certified match-fixing, and we continue to seek We have completed a detailed gap through the EU GDPR Foundation Course partnerships and to invest in relationships Glossary analysis to facilitate further improvements (ISO 17024 certificated). The Privacy with relevant stakeholders in the sports within our data governance framework. Champions are responsible for supporting integrity field. We collaborate with sports’ During 2020, Kindred updated the reporting the business teams with day-to-day governing bodies, sports and betting trade process for General Data Protection queries and for improving policies associations, law enforcement, gambling Regulation (GDPR) breaches. Protecting and processes. regulators and other betting operators to our customers from having their accounts educate and learn more about match-fixing. compromised by a security breach is a EGBA’s code of conduct – National platforms are set up to improve crucial part of our cyber security efforts. the industry is self‑regulating cooperation between relevant stakeholders, We are on constant guard against threats During the year Kindred has, together who include local prosecutors, regulators such as the “credential reuse attack” in with other operators, worked on the code and sports federations, reflecting the which malicious entities use credentials, of conduct of the European Gaming and provisions in the Macolin Convention1 on the such as customer names and passwords Betting Association (EGBA). The code manipulation of sporting events, published they have illegally obtained from other includes essential sector-specific rules by the Council of Europe. We participate companies, against us. and best practices to ensure the highest regularly in international sports betting standards in data protection and GDPR integrity conferences and forums to discuss As a digital company, adhering to data compliance for the online gambling sector issues that are crucial in the fight against protection best practices and laws, such and is currently under review by the data match-fixing. We are engaged in a number 2020 Report Sustainability plc Group Kindred as GDPR, is one of our highest priorities. protection authorities. of partnerships, including: This is reflected in our internal Privacy and Data Protection Policy, which covers Diligent and vigilant > Being a member of the UK Sports all customers, channels, brands, products, It is crucial for our ongoing business Betting Integrity Forum platforms, suppliers and transactions. In success that our employees are diligent > Co-operating with Anti Doping 2020, we performed a number of actions: and observant. Every year, all Kindred Denmark, the secretariat of the employees and contractors must pass Danish national platform > Our data protection team ran tailored mandatory training in cyber security workshops for specific groups who and information security. On top of this, > Being represented via the trade handle customer data to ensure a high all employees and contractors undergo association Branschföreningen för level of awareness and engagement mandatory training on what GDPR means onlinespel (BOS), in the national with our data protection policies and for our business policies and processes. platform of Sweden processes, though the programme was In 2020, the rate of completion for our > Holding a Memorandum of Understanding less extensive than previous years due information security trainings was 97 per cent. with FIFA, football’s global governing body to the COVID-19 pandemic.
1 The Convention on the Manipulation of Sports Competitions (the Macolin Convention) is a legal instrument and the only rule of international law on the manipulation of sports competitions. The Convention is implemented by the public authorities, in co-operation with national and international actors. The Macolin Convention entered into force on 1 September 2019. 27 Maintaining integrity continued
> Holding a Memorandum of Understanding > inform the relevant sports, players and coaches in SEF’s 32 clubs with the Tennis Integrity Unit governing bodies have participated. The 15-20 minutes sessions cover frameworks and > Being part of Fair Sport 4 All (read more > report to IBIA. guidelines for tackling match-fixing and about this project on the next page) ensuring player protection. Besides the In 2020, we reported 19 sports betting > Being a founding member of the online training, Kindred and SEF have events (2019: 20) to IBIA. We believe International Betting Integrity appointed one integrity officer per club cooperation is an important part of Association (IBIA). who received additional training on these eradicating betting-related match-fixing. matters. During the autumn of 2020, We are dependent on a sustainable and Detecting and reporting Kindred arranged a workshop with the functioning regulatory environment as suspicious betting activity integrity officers to discuss how Kindred part of securing high levels of integrity As a digital company, we monitor all works to prevent match-fixing and how in sports, and we are committed to placed bets and continuously collect to make use of responsible gambling contributing to the success of this. information and knowledge to develop tools. Kindred also collaborates with intelligence about suspicious betting Hockeyallsvenskan (Sweden’s second In February 2020, the Swedish Gambling activity. We look at several factors when highest ice hockey league) on similar Authority (Spelinspektionen) was invited to we investigate irregular betting activity, matters and will implement online Kindred’s Stockholm office for a “deep-dive” one of which is when market prices exceed training in the 2021 season. into how Kindred maintains sports betting our assessments of what is reasonable. integrity. In October, a similar meeting was We work side by side with local authorities, arranged for the Swedish police’s action regulators, policy makers, cyber security group working against match-fixing and firms, law enforcement agencies and other sports-related crimes. The purpose sports federations to eliminate attempts of this meeting was to offer guidance in to pollute sport with criminal activity. As a how to analyse and interpret information sports betting operator, our contribution is of suspicious betting activity received thorough identification and verification of from Kindred. customers and monitoring every deposit, withdrawal and game. When suspicious In January 2020, Kindred started its betting activity is detected, we follow a sponsorship agreement with Swedish strict process in which we always: Elite Football (SEF). During the year, Kindred has, together with SEF, arranged online > inform local authorities training with information about rules and laws around match-fixing, in which all
IBIA workflow
Local Sports IBIA authorities governing bodies
The International Betting Integrity 1. A customer identifies himself or herself, registers an account Association (IBIA) formerly known as with a regulated betting operator and places a bet ESSA, is a non-profit integrity body of the regulated betting industry and reports aggregated findings on suspicious betting 2. The regulated operator monitor all transactions 24/7 events to regulators and spans governing and has a 100% audit trail of who bets on what bodies. IBIA works closely with the world’s leading sports federations, such as the International Olympic Committee 3. When an operator detects any suspicious activity,
kindredgroup.com (IOC), FIFA and UEFA. IBIA has signed an IBIA alert is created which is shared with all members a Memorandum of Understanding with European regulators to make sure relevant intelligence is shared with the respective 4. All members investigate the reported event and report back to IBIA authorities as soon as possible.
Kindred co-founded IBIA in 2005 and today, 50 brands are members of IBIA. 5. If IBIA finds evidence of an integrity concern, IBIA and operators report the case to gambling regulators and governing bodies.
28 Company overview at Kindred Sustainability Our priority areas GRI content index Notes Glossary Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred Case study – When we started working with EFDN, we Fair Sport 4 All is a 36-month- quickly saw an overlap in our experience programme to raise awareness of Fair Sport 4 All and knowledge with fighting match-fixing the threats of match-fixing. The main At Kindred, we know that collaboration and EFDN’s reach to their member clubs objective is to ensure that the values is key in the fight against match-fixing. across Europe. Match-fixing is not only a of true sportsmanship are represented, We collaborate with governing bodies, threat to society as a whole, but also to respected, and encouraged by all industry associations, sports clubs the fundamental idea of sport. If people individuals involved in European football. and authorities to share data and lose faith in the honesty of a sporting experience. Kindred has, together with event, they will lose faith in our betting The Fair Sport 4 All programme involves the European Football for Development product too. As an operator, we hold an online educational tool to increase Network (EFDN), our community partner, valuable knowledge and data which we awareness of match-fixing among launched Fair Sport 4 All, focused on want to share to benefit the fight against players, managers and other stakeholders anti‑match‑fixing. match‑fixing. involved in sport. The online training will also include coping skills for resisting offers to engage in match‑fixing, as well as guidance on how to report match‑fixing to the relevant authorities.
29 Running a compliant business
Compliance is a prerequisite for our business, and we are subject to strict rules and provisions in the countries and regions in which we hold licences. At Kindred, all employees are accountable for compliance being upheld. Our ambition is to ensure that in a highly regulated industry, our operations always meet the highest professional, compliance and ethical work standards.
2020 highlights 46 million transactions on average per day 18 regulatory audits with all open points closed
60% Gross winnings revenue is derived from locally regulated markets 14 local licences – all monitored through local gambling authorities kindredgroup.com
30 Company overview We strive to ensure that our operations always Key continue to meet the highest professional, Completed compliance and ethical standards Ongoing
Not on track, behind schedule to meet target at Kindred Sustainability
Progress of commitments
What we said in 2019 What we did in 2020 Status Our priority areas Continue to develop and further implement We have developed the framework which has been the Kindred Compliance Framework successfully audited. As Kindred enters new markets, according to the ISO19600 standard for the framework will be updated and revised in order compliance governance and management. to ensure it covers all areas.
Deliver updated Incident Management Kindred has delivered an Incident Management Process with an end-to-end process to Process successfully and a number of awareness GRI content index capture compliance incidents to ensure training sessions have been completed with key good governance and proper rectification stakeholder groups. of control weaknesses.
Increase internal engagement During the past year, we have developed a and understanding of compliance compliance training matrix including elements in a regulated industry through focusing on trust, integrity, safety and culture. Notes establishment of proper governance structures throughout the organisation. Glossary
New sustainability commitments Target year
Expand employee awareness and knowledge of gambling 2021 regulations and internal policies, so that we empower our Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred employees in all compliance matters related to their roles, whilst ensuring everyone becomes an active participant in the identification and mitigation of compliance risks.
Encourage a practice of inter-departmental transparency 2021 and support employees in investing additional time and resources dedicated to ‘following-up’ on compliance incidents by growing internal collaboration within Kindred’s Compliance Incident Process.
Reinforce the Compliance and Governance model by adopting 2021 a set of techniques and methodologies to measure quality in all present and future processes, to act as a foundation for a value‑adding Quality Management System.
31 Running a compliant business continued
As a global organisation operating in A proactive compliance approach Compliance Governance 2.0 regulated markets, we need licences Compliance is a prerequisite for our Kindred operates in a highly regulated and appropriate authorisations to business, and we are subject to strict industry, where compliance is key operate. Kindred currently holds rules and provisions in the countries to survival of the organisation. international gambling licences in in which we hold licences. With every However, maintaining compliance Malta and Gibraltar and local licenses local licence having its own specific is becoming more complex due to in 14 jurisdictions including Australia, legal, operational and commercial increased regulatory obligations. Belgium, Denmark, Estonia, France, requirements, Kindred invests heavily To be more efficient and competitive, Germany (Schleswig-Holstein), Ireland, in compliance and governance we felt that we needed to improve our Italy, Romania, Sweden, the UK and functions. We currently have more compliance governance, which is why the USA (New Jersey, Pennsylvania than 150 employees within our business we launched the Kindred Compliance and Indiana), which are all monitored working directly with this aspect of our Framework (KCF) at the end of 2019. through local gambling authorities. operations. All employees in Kindred In 2020, 60 per cent of our Gross take responsibility for compliance KCF includes a Compliance Register winnings revenue was derived from topics, ensuring a proactive compliance designating several Compliance Managers locally regulated markets and the approach. We govern our operations as responsible for the maintenance of the percentage is growing every year according to internationally recognised compliance obligations of their assigned (2019: 59 per cent). During 2020, standards and our policies outline the jurisdiction. The different requirements are Kindred undertook 18 regulatory way we conduct business in a responsible then split into different compliance areas audits (2019:17) across all its licensed and transparent way. Our ambition is to with a responsible compliance owner. activities, as required by the terms of ensure that in a highly regulated industry, its licences, with all open points closed. our operations always continue to meet This governance structure creates the highest professional, compliance a shared responsibility of meeting all and ethical work standards. compliance obligations in the different jurisdictions. Although the compliance
kindredgroup.com In March 2020, Kindred received a warning department is ultimately responsible, and a sanction fee of SEK100 million from it is of great importance that the entire the Swedish Gambling Authority (“SGA”) for organisation feels a sense of ownership having allegedly offered incentives in early of these matters. In addition to the new 2019 in breach of the Swedish Gambling governance structure, the Chief Legal Act. Kindred has appealed the SGA’s and Compliance Officer is now part decision to the Swedish Administrative of the Executive Management team. Court and the appeal proceedings are To ensure that all of Kindred’s employees currently ongoing. are up to date with the compliance requirements, the compliance owners 32 have worked together to develop a Company overview at Kindred Sustainability multi‑layered compliance training matrix A positive impact through our suppliers communicates the standards we expect based on employee roles. Whilst Kindred We purchase many different services and regarding labour and human rights, had already established a satisfactory goods. We see it as our responsibility health and safety, business ethics and the level on training compliance, this matrix to extend our influence throughout the environment. We believe that by placing now ensures that all levels of compliance value chain to improve the standards the same high demands on our suppliers are effectively delivered and maintained. of our business partners and suppliers. that we place on ourselves, the pace of We work to build long-term relationships progress will increase, contributing to a In 2020, Kindred implemented a with our suppliers and apply a Global more sustainable economy. See the chart Our priority areas Governance, Risk and Compliance Procurement Policy as well as below for our spend distribution across Council comprised of key stakeholders Supplier Code of Conduct that clearly supplier types. across the Group with the aim of ensuring we comply with all relevant obligations. Generating government revenues through taxes* The Council meets on a quarterly basis. FY 2020 FY 2019 FY 2018 Contributing to a sustainable economy GBPm GBPm GBPm As one of the largest gambling operators GRI content index in the world with millions of customers, Nordics 39 32 18 more than 1,550 employees, and hundreds of suppliers, Kindred makes an important Western 187 174 147 contribution to sustainable economic growth. We generate government revenues through the taxes we pay, CES 26 15 16 and we stimulate economic growth through higher production and a focus Other 20 5 5 Notes on innovation as well as through direct and indirect employment. Group 272 226 186 In 2020, we made a total tax contribution * Corporate taxes, VAT, betting duties and payroll taxes. of almost GBP 272 million (2019: GBP 226 million). Kindred is determined to fulfil its global tax obligations by operating Total spend distribution by in full compliance with all local and category of supplier (%) Glossary international tax laws as well as OECD transfer pricing guidelines. We pay taxes Marketing 42.0% in accordance with local regulations in all Products 32.1% the countries we operate in. We manage tax costs and risks carefully, and by Corporate 5.4% reporting and paying taxes as due, we Taxes and regulatory 9.5% have established a reputation for being responsible and compliant. Tech services 4.4% Consultant and contractors 3.4%
HR 1.9% Other suppliers 1.3% Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
33 Running a compliant business continued
Working with stakeholders to Tackling money laundering customer’s activity level is determined ensure sustainable regulation We take crime prevention very seriously. to be high risk, an Internal Risk Report is We understand that gambling needs to Our systems and controls are designed raised and, if following further internal be regulated in a stable manner to ensure to keep money launderers and other investigations there are indications protection that considers both the needs criminals away from our platform of money laundering attempts, we of the individual customer and wider social across multiple jurisdictions. We require raise a report to the National Financial impacts, resulting in the channelling of all employees to participate in regular Investigation Unit in the specific market. digital customer demand to the regulated anti‑money laundering (AML) training, and In 2020, Kindred reported 439 suspected framework. A high level of channelling of we provide further training targeted to cases of money laundering (2019: 337) to customers to licensed operators is beneficial those groups who are tasked with detecting relevant authorities. All Kindred’s supplier to customers who are better protected, and and preventing money laundering. Further, relationships are also subject to frequent to broader society as operators are able to Kindred has a Group Money Laundering anti-money laundering review. support local communities through taxes, Reporting Officer (MLRO) who provides sponsorship of grassroots sports and other the CEO with regular reports on individual Collaboration between operators, authorities, local initiatives. cases. As an online gambling operator, regulators and other partners is crucial if we face some of the same challenges as we are to improve techniques and tools to To ensure channelling, operators must be financial institutions. In 2020, we processed fight fraudulent behaviour across digital able to offer their customers a value adding on average 46 million transactions per day platforms. During 2020, we have continued offer, including premium user experience (2019: 35 million) and every one of these to rollout our updated AML framework. and financial value. When taxes are too is subject to strict anti-money laundering The work on the updated framework high and the consumer experience is rules. Our global Anti-Money Laundering/ included improving our detection capability not aligned to the digital market reality, Counter-Terrorism Financing Policy, using data science models in monitoring channelling will be undermined, customers together with our research-based systems and customer profiling, optimising our data will look outside the licensed offer for and tools, provide the foundation for all and evidence gathering, and implementing a entertainment and the purpose of the of our employees to recognise and adhere fully audited process. regulated market is missed. Kindred has to requirements in this area. worked for many years in cooperation with legislators, regulators, industry bodies As a digital business, all transactions are and other stakeholder groups to ensure conducted online. We have several systems that gambling regulation achieves a monitoring each single transaction to relevant sustainable environment. We are determine risk and require high-risk active members of all gambling trade customers to provide their source of associations in our markets and strive funds. Higher-risk activity is checked by through collaboration with peers to further a dedicated team trained to de-risk the streamline the communication on policies situation by appropriate customer due from the industry. diligence and necessary actions. If a kindredgroup.com
34 Company overview at Kindred Sustainability Customer identification Fighting corruption Using AI to tackle Customer identification is an important We do not tolerate corruption or bribery money-laundering part of our anti-money laundering work. under any circumstances and require In January 2020, the identification system all employees to participate in regular We are always looking to find innovative IDIN was implemented in the Netherlands. anti-corruption and anti-bribery training. ways of improving our business and IDIN is a similar system to BankID which is We enforce an employee-focused Global are currently exploring how the use of used in Sweden. During 2020, Kindred has Bribery Policy and a Global Gift Policy to deep-learning and AI techniques can upgraded how our customers can verify provide useful and necessary assistance strengthen our anti-money laundering Our priority areas themselves on our site. Where possible this to all employees. There have not been any decision process by collaborating is done through solutions similar to BankID, reported breaches of these policies within with City, University of London and or IDIN, otherwise customers upload their Kindred’s workforce. BetBuddy, a Responsible Gambling ID-card details and other documents that data analytics specialist. During the may be required. In 2021, KindredID will Maintaining a transparent business Sustainable Gambling Conference, be launched which will improve our ability We strive to maintain a transparent Charitos Charitou from City, University to connect customer accounts across business environment and high of London talked more about the use multiple brands so that we gain a single professional ethics and we value of AI for anti‑money laundering. GRI content index profile of each player, however many the safety and respect of everyone accounts they may have. affected by our business. At Kindred, WATCH THE BREAK-OUT SESSION HERE: employees have an important role in youtu.be/b9CLmCVtjfo In 2021, Kindred will continue to integrate raising concerns about any form of external affordability information providers malpractice in our organisation through in the system that will give us estimates our whistleblowing service, which is and indicators of affordability across readily available to all employees on the markets. This will provide us with a intranet. In 2019, we launched “Speak Up!”, Notes more accurate indication of whether a our reviewed whistleblowing procedure. person actually can afford the activity We have partnered with an independent on their account. Affordability indicators reporting service which facilitates will be an important tool not only for secure and confidential communication anti‑money laundering purposes but between Kindred and its stakeholders. also for responsible gambling measures, Concerns raised are managed and ensuring that no one is playing with reported on a quarterly basis to the Audit money they do not have. Committee, with two cases being reported Glossary in 2020. Both ongoing and closed cases are presented to the Board every quarter. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
35 Being Kindred
Kindred’s long-term success is driven by our people. Attracting and retaining the best people to support and drive Kindred’s long-term strategic objectives, purpose and business operations, remains a key priority. A significant element of this is to offer a best-in-class employee experience. We are dedicated to building a great place to work by investing in the training and development of our employees as well as by offering highly competitive benefits.
2020 highlights 82% of our employees feel that Kindred is a great place to work 1,564 employees 62 nationalities represented in our employee group 20,881 employee hours dedicated to training
93% of our employees feel that they are treated fairly regardless of their gender kindredgroup.com
36 Company overview Become one of the world’s highest-ranked Key companies for employee engagement Completed
Ongoing Long-term ambition by 2023: Not on track, behind We want to achieve a 50:50 gender schedule to meet target split in our senior management team at Kindred Sustainability
Progress of commitments
What we said in 2019 What we did in 2020 Status Our priority areas Create a wider pool of female talent We launched our Kindred Alchemy Leadership at management and leadership level, by programme and achieved the application targets incorporating a transparent, consistent and we set out for the year. Our female applicants objective selection process into Kindred’s performed very well through the selection process leadership development programme. and we now have a High Potential leadership talent pool of 56 per cent female at senior leadership level. This talent pool will continue to be developed through 2021 and the selection process we created will now GRI content index be implemented in our other programmes to ensure a good gender split at other levels.
Develop an employer brand strategy Initiated the development of an updated employer to ensure we attract key talent. branding strategy. Due to unforeseen events and the COVID-19 pandemic, we were forced to delay the process and plan to finalise this work during 2021. Notes
Deliver internal diversity campaign Employee networks such as Black, Asian, Minority to increase internal engagement Ethnic & Allies, LGBTQ+ & Allies, Parents, and Solo and understanding of diversity. Worker have been formulated. Campaigns for these networks are under construction and will roll-out in 2021. We introduced Black History Month as well as Pride Month in June when Kindred had several Glossary campaigns published on our social media channels.
New sustainability commitments Target year
Expand the Group Sustainability element of the employee 2021 bonus structure to include additional metrics which improve alignment with sustainability framework. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred Evolve our employer brand strategy and align to the Group 2021 purpose, to ensure we continue to attract key talent to support the group strategy.
As part of our long-term ambition we will work to increase 2021 gender balance of senior leadership to 30:70.
Ensure that we embed inclusive leadership principles across 2021 the management group.
Capture inclusion and equity data for all minority groups and 2021 work with internal employee networks to build a 2023 roadmap from this data.
37 Being Kindred continued
Kindred’s values
We are individuals united
We dare to challenge
We build on trust
We seek to innovate
We believe in friendship
Our people are our greatest asset Kindred employees are not subject to and, from the very start, Kindred was collective bargaining agreements but are founded on clear values and a strong entitled to a series of employee benefits, culture. As we grow, we need to protect ranging from pension schemes and private this culture and ensure it encompasses health insurance to parental leave and a the entire company. The ability to nurture wellbeing allowance. On top of this, we our culture has allowed us to attract give all our employees the opportunity to and retain the best talent in a truly contribute to, and share in, the success diverse team. of the Group through Kindred’s Employee Share Plan and, during 2020 1,144,686 shares were awarded to employees 2020 has been an extraordinary year in Working at Kindred (2019: 980,657). many regards. The COVID-19 pandemic At Kindred, all employees have clearly has resulted in employees having to defined roles and responsibilities. Our culture of learning work from home, meaning that Kindred Employees are encouraged to drive Our strength is in our people. We foster as an employer has faced a new type of change and challenge how things are a learning and coaching culture by challenge and responsibility – ensuring done. As a global company operating a investing in employee development everyone is doing well without being diverse range of products, across multiple from day one. We have a strong internal able to meet in person. markets and with employees based in network to deliver facilitator‑led and peer- a number of offices across the world, to-peer development opportunities. The We are a values-led team with a strong employees share knowledge and best “Kindred Academy” provides employees culture built on dedicated employees from practice across departments and country with the opportunity to acquire new in- diverse backgrounds. Our employees borders, which supports our teams in depth skills, expertise and knowledge, as strongly identify with our values and they learning from each other. We are proud to well as expand their internal and external play a leading role in creating the ground- have been officially recognised as a Great network. By investing in the development of breaking culture necessary for Kindred Place to Work in Australia and in the UK, our people, we ensure that we are building to be the number one operator across all as a top ten Best Workplaces in Tech and a team that will challenge the status quo our markets. As we continue to expand once again to receive the Excellence in and that will identify new and better ways
kindredgroup.com into new markets, products and brands, Wellbeing Award from Great Place to Work. of working. On top of individual training we maintain our focus on supporting and development, Kindred requires all and nourishing our culture. We regularly Kindred provides a safe and healthy employees to complete regular mandatory measure our employees’ level of working environment where employees training on information security, anti‑money engagement and satisfaction to better feel empowered to achieve their full laundering, responsible gambling, the understand how we can best support potential. We respect human rights General Data Protection Regulation, our culture and employee wellbeing. by working to eliminate all forms of health and safety, as well as anti-bribery discrimination within our organisation. and anti-corruption refresher courses. All employees must strictly adhere to our equal opportunities policy with failure to 38 comply resulting in immediate sanctions. Company overview at Kindred Sustainability Encouraging sustainability employees. This work led to a global Our employees are essential for the Kindred’s response support programme being designed, realisation of our sustainability ambitions to COVID-19 which we have called Kindred Hive. and the long-term success of Kindred. In March 2020, Kindred responded To further encourage our employees to to the global COVID-19 pandemic by The concept of Kindred Hive is engage in sustainability activities, and initiating a full remote working policy that everyone can contribute and ensure deeper integration of sustainability for employees. This was quickly and support each other in a social setting. into business operations, we have changed effectively executed thanks to prior Kindred Hive consists of core modules Our priority areas our Group bonus structure in 2020 by investment in technical infrastructure. built around core habits needed to introducing Group Sustainability as a core Kindred’s priority throughout the thrive in lockdown. The programme was element of all bonus plans. The Group pandemic has been the health and built around psychological safety and Sustainability weighting for the Executive wellbeing of employees and their gives employees tools with which they Management bonus plan is 20 per cent for families. Additional support was offered can gauge and enhance their mental 2020. For all other employees on a bonus to employees in relation to maintaining wellbeing and that of those around them. plan, the weighting will vary depending on their mental health and employee support People were grouped across functions function and level within the company. groups were established to ensure those and locations into “support bubbles” GRI content index in isolation had social contact with which created a helpful framework in Group Sustainability will be recorded colleagues, even if only on a virtual basis. which they could share ideas, challenges by a sustainability index linked to and advice. Sessions revolve around three various measures and targets set for During the pandemic we increased key themes: “Focus on You”; “Focus on the performance year. The index tracks: the number of our mental health first- Each Other”; and “Deliver the Essentials”. a) level of customer trust; b) share of aiders. These valuable members of our customers who change their gambling team have each received two days of Running alongside these virtual sessions behaviour after detection by Kindred’s training to provide them with greater were support networks for groups that Notes Player Safety team; and c) level of insight into mental health issues and the we had identified as having particular employee trust as measured through an factors that may affect mental wellbeing. challenges with working from home, annual engagement survey. The index has Regular internal surveys showed high such as parents and those living alone. been agreed by the Executive Management satisfaction scores from employees team and the Remuneration Committee. about Kindred’s response to the pandemic Our engagement groups also had great and good levels of productivity and success in securing free virtual gym A diverse workforce collaboration whilst working remotely. classes, running poker tournaments Kindred is committed to building a diverse for fun, organising cooking classes Glossary workforce of people from a wide range of Kindred Hive and establishing remote running clubs. backgrounds, cultures and experiences. Even in the first week of lockdown, we We promote equal opportunities across the managed to get two remote training Kindred Hive received the backing of our employee life-cycle, regardless of gender, modules – “Working from Home” and Executive team and our CEO shared his ability, race, nationality, religion, sexual “Managing Remotely” – live. Instead of own video story, from his living room, as orientation or age. the usual engagement survey, which is to how he was finding remote working sent out every two months, a targeted and took the opportunity to reinforce the Our diverse workforce enhances the remote working survey was conducted. importance of looking after our mental quality of decision-making and business The survey’s findings were shared with health during this period. performance. Over the year, our diversity support functions so that all necessary has been enhanced in several aspects. support could be offered to our For example, our employee group represents an increasingly diverse range of the world’s nationalities and we are proud that 93 per cent of our employees feel they are treated fairly regardless of their gender. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred Kindred is committed to work towards gender equality both within Kindred and in the communities in which we operate. In 2020, Kindred has engaged in important initiatives focusing on gender equality. Read more on page 40.
Focus Focus on Deliver the on You Each Other Essentials
39 Being Kindred continued
Kindred Alchemy on the business if the employee were to leave Kindred); and likelihood of Leadership programme leaving. Employees that are identified Kindred has developed its Alchemy as having high potential and of being programme as a leadership programme high performers are invited to apply aimed at our High Potential Leaders. for the leadership programme. In this It consists of modulated workshops initial year of the Alchemy programme, interspersed with one-to-one and peer we found that fewer female colleagues coaching, including one-to-one mentoring were being identified as “high potential” from the Executive team. Due to the so we invited those that have been rated COVID-19 pandemic, the personal contact as “high performers” and those rated at elements of the programme had to be the top end of medium potential to apply Women in Tech (WiT) effected remotely, while the planned to the programme. Interestingly, the result For the fourth year in a row Kindred quarterly face-to-face workshops remain from the application process showed that supported Women in Tech Sweden as ready for rollout in 2021. the female applicants performed well, a co-creating partner with the theme of demonstrating that our female talent is Increasing the number of #WITsthlm2020 being “Beyond Barriers”. strong, but within Kindred there appears female applicants WiT is the Nordic region’s largest to be some unconscious bias around the Kindred is committed to achieving a 50:50 event for women in the technology identification of potential. gender balance in its senior management industry. It is driven by companies and team by 2023. During 2020, the gender individuals who want to create change. During 2021, Kindred will focus balance in senior management has Kindred also hosted a breakout session on embedding inclusive leadership changed to 19:81 (2019: 20:80), which focusing on how we can build trust principles across the organisation and is not satisfactory. Throughout the year through active monitoring. explore the extent of any unconscious Kindred has invested significant time in bias at management level. The Executive creating a wider pool of accomplished team has committed to this workshop female talent at leadership and senior in Q1 and we will cascade this training management level and we now expect throughout the organisation during this pool to fill future senior positions. the year. As we now have the Alchemy The Alchemy programme has strict programme running, we will also review diversity criteria in place to ensure that the our Kindred Manager DNA programme gender balance of applicants is fair and the to ensure that inclusive leadership is leadership capabilities on which it is built embedded in those competencies too. have been verified by an external expert to We will adopt the selection process and ensure they are bias free. diversity, equity and inclusion (D, E & I) checks from Alchemy in all of our other Every quarter, managers meet team high potential programmes. This will members individually to conduct a ensure that we have diverse “bench review. This includes evaluating Kindred’s strength” and enhance the sustainability “talent identifiers”: potential; performance; of our D, E & I agenda over the long term. loss-impact (an estimate of the impact Women in Racing (WiR) Kindred announced a new partnership with Women in Racing (WiR). The purpose of the partnership is to raise awareness of the issues working mothers in the racing industry face, by sharing experiences and encouraging debate from an invited audience. The impact of having children and work/life balance are topics which women are often reluctant to discuss openly, as they fear it could affect their career prospects and alter their colleagues’ or management’s perception kindredgroup.com of them. Kindred is supporting the WiR programme “Racing Home”, which they are delivering in collaboration with Simply Racing and Oxford Brookes University. The programme includes workshops and webinars to gather experience and insights, as well as academic research to capture data and make recommendations to the industry.
40 Company overview
Diversity and equality at Kindred Sustainability
All employees Executive management Average hours of training in 2020
9.7 Our priority areas 65% 80% per employee, all employees male male 7.7 per employee in 35% 20% senior management GRI content index female female
Senior management Board of Directors Notes 81% 80% male male Glossary 19% 20% female female
Nationalities
37% Other (Finnish, Polish, 23% 13% Spanish, Romanian, British Swedish 2020 Report Sustainability plc Group Kindred Danish and other)
9% 6% 4% 4% 4% French Indian Maltese Australian Italian
41 Contributing to our communities
Our long-term ambition is to equip our communities with the knowledge and resources to build a better future. We do so by engaging in meaningful partnerships with local and global organisations. We are increasing our social engagement through additional partnerships and active sponsorships, and are working towards securing 100 per cent of our purchased energy from renewable resources by 2023.
2020 highlights 52% reduction in CO2e emissions per employee
100% of our reported CO2e emissions were offset
20 MSEK was handed out to football clubs as part of Kindred’s sponsorship with the Swedish Elite Football League to help fund development in each club B Kindred improved its CDP (formerly Carbon Disclosure Project) score from a B- in 2019 SBTi Kindred has set Science Based Targets for its emissions and as a result are kindredgroup.com contributing to the Paris Agreement and the IPCC two-degree target
42 Company overview Equip the communities in which we operate Key with the knowledge and resources to build Completed a better future Ongoing
Not on track, behind Long-term ambition by 2023: schedule to meet target We are committed to procure 100 per cent of at Kindred Sustainability our electricity from renewable sources of energy
Progress of commitments
What we said in 2019 What we did in 2020 Status Our priority areas Continue to engage with our During 2020 we have continued to engage with our local communities through social local communities through several sponsorships, activation of our sport sponsorships including supporting SEF and Au Coeur de Football. in all sponsorship agreements.
Implement an action plan to increase Together with Schneider Electrics we have developed our proportion of renewable energy, an action plan to increase the proportion of energy GRI content index towards our 2023 target of 100 per cent we use from renewable sources and have reviewed renewable energy. our contracts to see which ones we can switch to renewable sources.
Ensure partnership with EFDN is integrated The process to introduce EFDN to existing and new in existing sponsorships to increase the commercial partners has started with among others sharing of knowledge and experience Swedish Elite Football joining as a member of EFDN. Notes between partners. Kindred’s commercial sponsorship team have during 2020 initiated plans to identify areas of activation.
Increase the number of employees who use Due to the COVID-19 pandemic and the various their sustainability days by 50 per cent. restrictions imposed to mitigate its spread, we have been unable to fulfil this commitment. We have launched a trial of a new tool for 2021 to help Glossary employees use their days in a more efficient way.
New sustainability commitments Target year
Increase the number of employees who use their 2023 sustainability days by 50% with 2019 as base. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
Ensure partnership with EFDN or engagement in other community 2021 project is integrated in our sponsorship agreements to increase community involvement in our markets.
Have renewable energy powering our offices in the locations we can. 2023
Have certificates for renewable energy to cover the whole 2023 Kindred Group energy consumption including data centers.
43 Contributing to our communities continued
We want to be an active participant in our scope 1 and 2 emissions (market-based) local communities and are committed from a 2018 base year by purchasing Initiatives from to giving back to our neighbours certificates of origin. We also aim to reduce our offices through sponsorships, and by sharing our 30 per cent of our business travels by 2023, Rooftop beehives: in Wimbledon, our knowledge and experience where we can also from a 2018 base year. We consider hives are thriving and we estimate we add value. Our employees are offered these to be science based targets in have around 20,000 bees in residence. three extra paid days of leave per year line with Intergovernmental Panel on We harvested 48 jars of honey in to support local communities and we Climate Change (IPCC) 1.5ºC and 2ºC August, which were eagerly snapped aim to increase the number of employees ambition levels. up by employees and the money raised who take up this offer. Our local market was donated to Blue Cross, the animal teams and brands undertake a variety of Understanding our carbon footprint welfare charity. initiatives to support their communities, In 2020, our total carbon footprint was including funding local sports clubs, 2,839 tonnes of CO2e (2019: 6,254 commissioning research into areas such tonnes). To read detailed information as responsible gambling and mental on our emissions see note 6 on page 55 health, and sponsoring the training of this report. We always strive to use programmes of elite sports people. our resources efficiently and in 2020, we managed to decrease our Group emissions per employee by 52 per cent Helping combat climate change (2019: 11.4 per cent). As a company operating solely online, our climate impact mainly comes from The main contributor to our carbon energy usage and business travel. footprint is business travel by air. In 2020, While our operations continue to grow, Beach clean-ups: In Gibraltar, Kindred flights represented 30 per cent of our we are committed to promoting sound volunteers go out once per month to carbon footprint. Given the COVID-19 greenhouse gas (GHG) reduction practices clear the island’s beaches of rubbish. pandemic, our business travel has to a and environmental awareness in our On World Cleanup Day, teams in both very large extent been replaced by video business. We know that businesses have UK and Malta joined in, with the three conferencing, leading to a decrease of 78 an important role to play in fighting climate employees in Malta ‘winning’ after per cent in travel-related CO2e emissions change and we are committed to doing having collected 15 bags of litter compared to 2019. Business travel will our bit for the planet. By 2023, we have in Sliema. most likely increase from this year’s level the ambition to procure 100 per cent of when the pandemic is over, but it is our our electricity from renewable sources of belief that the shift from physical travel to energy where we can. virtual meetings will continue, which is why we will continue to invest in and embrace During 2020 we have, together with technology supporting this shift. Schneider Electric, developed an action plan to realise this goal. We have reviewed For activities where Kindred simply all of our energy contracts to see whether cannot reduce its carbon footprint, we can re-negotiate them to increase the we have chosen to offset our emissions proportion of renewable sources where through a verified third party and through possible. Developing this action plan has projects that meet the requirements of been an important step in realising our the Verified Carbon Standard. We are 2023 ambition. pleased to say that, for 2020, our entire carbon footprint was offset and we Science based targets technically achieved carbon neutrality. To play our part in limiting global warming, we have set science based Our CDP (formerly Carbon Disclosure targets for our emissions. The targets Project) score indicates the Group’s have been developed with support from ability to monitor and quantify its carbon external experts, and they are aligned emissions. The score range is from A to the guidelines published by the to D, with A as the best possible rating. Science Based Target initiative (SBTi). In 2020, Kindred received a score of Our science based carbon-reduction targets B, an improvement on 2019 when our focus on cutting carbon emissions across score was B-. The CDP score provides our data centres, offices and business us with an understanding of how we can travel activities. By 2023, we aim to reduce continue to improve our performance.
kindredgroup.com 85 per cent of absolute
44 Company overview at Kindred Sustainability Contributing to our local communities We believe in being an active participant in the local communities in which we operate. We are committed to giving back to our surroundings through sponsorships as well as by sharing our knowledge and experience within our areas of technology, integrity, great experiences and diversity. Our priority areas In 2020, 42 employees used their sustainability days to contribute to their local community (2019: 148 employees).
During 2020, the number of employees using their sustainability days decreased compared with 2019 due to COVID-19 limiting the possibilities of engaging in GRI content index the ways we are used to. That being said, and, in spite of the effects of COVID-19 Kindred has introduced several initiatives Investments in mental and lockdown, there is a strong sense of as a response to the pandemic. In the health initiatives commitment, satisfaction and positive UK, for instance, food from the catering A report Kindred commissioned, identity associated with the programme. department was donated to a local food entitled “Tackling The Stigma”, shows bank; in Gibraltar, all Easter eggs due how powerful sport can be in breaking Another initiative focusing on helping those to be given to employees were donated down the barriers to accessing with a range of “invisible” and mental health to St John Gibraltar instead, who kindly support for mental health issues. issues is #GoRacingGreen, a scheme to Notes distributed them to the elderly or people Given the importance of football clubs make horse racing accessible to those in need. On Malta, the resident catering and other sporting organisations to their who might otherwise find attending a team prepared 30,000 meals for local communities, there is a huge opportunity race too overwhelming. #GoRacingGreen hospitals, the homeless across the island for sponsors to use their partnerships as has significant backing from the British via the Knights of Malta, and migrants. a vehicle for positive community impact. Horseracing Authority (BHA) and the Racecourse Association (RCA) and works To increase the number of employees to introduce small changes and additions, making use of their sustainability such as sensory guides and invisible access Glossary days, Kindred launched a trial of a statements, around courses which can new corporate social responsibility help those with “invisible” illnesses enjoy a (CSR) platform, “Givur”, in Gibraltar in day at the races or perhaps help potential December 2020. Givur connects employees new racegoers in deciding whether to even with initiatives focused on contributing to venture out to racecourses in the first place. our local communities. Specifically, Givur Tackling poor mental health is at the core will enable Kindred to capture and report of Kindred’s commitment to become In summary, with Kindred’s investment on the amount of employee CSR activity the sponsor of choice for sporting and help it means that: in each location. The initial trial will run organisations and their communities and to June 2021, with initiatives focused reinvent sponsorship so that it benefits > Racecourses at which Unibet are on alleviating loneliness in the elderly, places and societies. In 2020, Kindred a sponsor are contracted to ensure key better physical health and wellbeing, and Group has made significant investments operational staff undergo mandatory supporting women’s crisis charities. If the in different initiatives focusing on mental health awareness and trial is successful, Kindred will rollout the mental health. One of these initiatives Dementia Friends training sessions platform to all employees during 2021. is Team Talk, an initiative run by Derby prior to race sponsorship County Community Trust (DCCT), in > #GoRacingGreen are provided with 2020 Report Sustainability plc Group Kindred partnership with Kindred, to provide social a designated “quiet space” that those connections and meaningful activities with “invisible” illnesses know they can for socially isolated men (typically with visit on the day non-acute anxiety and/or depression). Team Talk also exists in Glasgow and > One in three Unibet adverts (both Middlesbrough, and Kindred Group’s digital and other media) are donated investment into these programmes has to #GoRacingGreen to help promote allowed the organising football clubs key messages to open more centres supporting men’s > There is collaboration throughout the mental health. This significant investment year to deliver an industry-standard of GBP 140,000 per year directly benefits “kitemark” with agreement from BHA the local communities and is in addition and RCA to any commercial commitment we have made to sponsor the football clubs. > #GoRacingGreen are able to organise special racehorse stable visits for Team Talk was evaluated this summer those who would not otherwise find with the results showing that participants themselves able to attend such places are strongly committed to the initiative 45 Contributing to our communities continued
Social initiatives In 2020, our brands and offices undertook several other initiatives to support their local communities, including:
> In the UK, Kindred, together with all other major betting operators, donated all the profits from the virtual Grand National to NHS Charities Together, the umbrella organisation representing over 140 NHS charities > In Romania, a charity poker tournament was arranged in April where 90 per cent of the price money would be donated to hospitals in need. The amount raised was doubled by Unibet. A total of 180 players participated in this tournament resulting in a donation of 3,000 EUR to this good cause > In Belgium, Kindred is the main sponsor of Club Brugge football club. In November, Kindred and Club Brugge launched an initiative enabling supporters to vote for their Club Brugge player of the month. Through this initiative, Kindred will finance the purchase of defibrillators and support the organisation of free workshops on resuscitation and the use of defibrillators for Belgian amateur football clubs > In Sweden, Unibet became the main sponsor of Allsvenskan and Superettan (the two top men’s football leagues in Sweden). One part of the sponsorship includes our commitment to giving > In Australia, Unibet, the sponsor of the > In 2020, Kindred partnered with the out SEK 20 million annually to the Roosters rugby team, agreed to remove European Football for Development 32 clubs. The distribution is based on its logo from the jersey of a player who Network (EFDN) to tackle match fixing our customers’ team preferences, and declines to have gambling, alcohol and through the programme Fair Sport 4 All. is called “Hemmaklubben”. The clubs bank logos on his jersey for religious Besides tackling match fixing, Kindred have decided that the sponsorship reasons. Unibet donated their logo has supported EFDN’s global Supporter money should be dedicated to their space to the non-profit organisation of Each Other campaign youth sections. Kindred is also working Gotcha4Life which raises awareness with the clubs on match-fixing > For the 18th consecutive year, of mental health issues. Unibet also prevention and education Unibet hosted the project Unibet 2:an. donated AUD 10,000 to Gotcha4Life Together with journalists, club coaches > In Sweden, the 30/30 fund, launched > As part of Unibet’s sponsorship and players, we award the best players in 2019, has continued to sponsor local agreement with Swedish Elite Football in Sweden’s fourth highest football sports clubs. NHL ice hockey player (SEF), money is directed towards the league in each position. Each winner Henrik Lundqvist is the ambassador for youth academy programme Unicoach, receives 15,000 SEK, of which 10,000 the fund and participated in this year’s one of the largest youth academy SEK goes directly to the club virtual gala, hosted during the autumn. programme in Sweden. Through the A total of 1,800,000 SEK has been > In Norway, Unibet donated all our sponsorship, 16 MSEK is reserved for granted to local sports clubs during exposure rights for games played this project every year. Each club is fully the first two years of this collaboration in Norway during the EHF Euro responsible for its own programme in which Henrik Lundqvist and Unibet 2020 handball tournament, to the
kindredgroup.com which is designed to secure the strong finance 50 per cent each European Network of Active Living development of Swedish football talent for Mental Health. > In the UK, Kindred’s brand 32Red has donated its naming rights on the front of the club’s shirts to the Middlesbrough Football Club (MFC) Foundation, a charity that has over 40 programmes to raise aspirations and improve the life chances of people across the local community 46 Company overview at Kindred Sustainability Case study – the online platform to be one of the 135 Over the last two years 235 French clubs clubs that would be selected. Team kit – and 11,200 players have received football #AuCoeurDuFootball shirts, shorts and socks – is always a big kits. Thanks to our partner, we have been Since 2019, Kindred’s brand Unibet expense for clubs, but we offer them high able to help clubs increase their revenue has experimented with an innovative quality outfits which helps clubs financially by creating a digital store. sponsorship model to support grassroots and makes teams feel more professional. sports in France. #AuCoeurDuFootball We are currently working on a third
(#AtTheHeartOfFootball) is a large-scale This sponsorship has been particularly season of this sponsorship with additional Our priority areas sponsoring operation to support and show appreciated during these tough times for initiatives to reinforce the engagement our commitment to amateur sports and the sports’ industry. Due to the COVID-19 of our partnered clubs. For the 2020-21 engage with communities on a very pandemic, amateur sports have lost a season, we plan to have five different local level. significant share of revenue through the Unibet initiatives to award clubs that have loss of local sponsors and other income a good social media communication This is Kindred’s very first sponsorship streams. This only strengthened Unibet’s such as best shirt presentation, the most agreement with amateur clubs and it resolve to sustain and reinforce its beautiful goal and the best match picture. has a unique and innovative design. commitment in 2020. The clubs participating in this competition GRI content index Over 6,000 amateur clubs applied via are able to win additional equipment. Notes Glossary Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
47 GRI content index The following table contains Standard Disclosures from the Global Reporting Initiative (GRI) Standards: Core Option.
GRI Standard Disclosure Page(s) Comment(s)/omission(s) GRI 101: Foundation 2016 General Disclosures (Core Option) Organisational profile 102-1 Name of the organisation Annual Report, page 2 102-2 Activities, brands, products and services Annual Report, pages 2-3 102-3 Location of headquarters Annual Report, page 53 102-4 Location of operations Annual Report, page 81 102-5 Ownership and legal form Annual Report, pages 46, 48 102-6 Markets served Annual Report, page 2 Sustainability Report, pages 2-3 102-7 Scale of the organisation Annual Report, page 1 102-8 Information on employees and other workers Page 51 102-9 Supply chain Page 33 102-10 Significant changes to the organisation and No significant changes supply chain to the organisation’s size, structure, ownership or supply chain 102-11 Precautionary principle See sustainability policy on kindredgroup.com/about/ corporate-governance/ policy-documents 102-12 External initiatives Page 53 GRI 102: 102-13 Membership of associations Page 53 General Disclosures 102-14 Statement from senior decision-maker Pages 4-5 2018 102-16 Values, principles, standards and norms of behaviour Pages 38-39 102-18 Governance structure Pages 12-13 102-40 List of stakeholder groups Page 14 102-41 Collective bargaining agreements Page 38 102-42 Identifying and selecting stakeholders Page 14 102-43 Approach to stakeholder engagement Pages 14-15 102-44 Key topics and concerns raised Page 14 102-45 Entities included in the financial statements Annual Report, page 81 The report covers the whole Kindred Group 102-46 Defining report content and topic boundaries Page 14 102-47 List of material topics Page 14 102-48 Restatements of information Not applicable 102-49 Changes in reporting Not applicable 102-50 Reporting period Inside front cover 102-51 Date of most recent report 6 March 2020 102-52 Reporting cycle Inside front cover 102-53 Contact point for questions regarding the report Page 55 102-54 Claims of reporting in accordance with the Inside front cover GRI standards kindredgroup.com 102-55 GRI content index Pages 48-50 102-56 External assurance Inside front cover
48 Company overview at Kindred Sustainability Specific Standard Disclosures
Material topic(s) GRI Standard and disclosure reference Page(s) Comment(s)/omissions
GRI 103 (2016) Management Approach Pages 32-35 103-1, 2 & 3 Anti-corruption
GRI 205 (2016) Anti-corruption Page 35 No cases of corruption Our priority areas 205-3 Confirmed incidents of corruption and actions taken involving Kindred Group reported during 2020 GRI 103 (2016) Management Approach Pages 43-44 103-1, 2 & 3 Green buildings, GRI 302 (2016) Energy Pages 42, 55 No current overview of energy 302-1 Energy consumption within the organisation Kindred’s proportion of management
renewable energy GRI content index and responsible business travel GRI 305 (2016) Emissions Page 55 305-2 Energy indirect (Scope 2) GHG emissions 305-3 Other indirect (Scope 3) GHG emissions GRI 103 (2016) Management Approach Pages 38-40 103-1, 2 & 3 Employee engagement, GRI 401 (2016) Employment Page 52 training and 401-1 New employee hires and employee turnover Notes development, GRI 404 (2016) Training and education Page 53 and diversity 404-1 Average hours of training per year per employee and equality GRI 405 (2016) Diversity and equal opportunity Page 51 405-1 Diversity of governance bodies and employees GRI 103 (2016) Management Approach Page 33 103-1, 2 & 3 Responsible Glossary sourcing GRI 414 (2016) Supplier social assessment Page 26 414-1 New suppliers that were screened using social criteria GRI 103 (2016) Management Approach Pages 16-22 103-1, 2 & 3 GRI 416 (2016) Customer health and safety – No incidents reported Responsible 416-2 Incidents of non-compliance concerning the health during 2020 gambling and and safety impacts of products and services player protection GRI 419 (2016) Socioeconomic compliance Page 32 419-1 Non-compliance with laws and regulations in the social and economic area GRI 103 (2016) Management Approach Page 22 103-1, 2 & 3
GRI 417 (2016) Marketing and labelling Pages 22, 26-28 2020 Report Sustainability plc Group Kindred 417-1 Requirements for product and service information and labelling
Ethical marketing, 417-3 Incidents of non-compliance concerning marketing Page 49 15 incidents have been product communications corrected and none have transparency resulted in any sanctions and integrity in for breaches of laws or sports betting regulations, and where needed they have been self-reported to the relevant authorities. Own indicator – confirmed breaches of integrity in Page 28 sports betting
49 GRI content index continued
Specific Standard Disclosures
Material topic(s) GRI Standard and disclosure reference Page(s) Comment(s)/omissions
GRI 103 (2016) Management Approach Pages 26-27 103-1, 2 & 3
Customer data GRI 418 (2016) Customer privacy – No sustained complaints integrity and IT 418-1 Substantiated complaints concerning breaches of about customer privacy security customer privacy and losses of customer data due to leaks, thefts and loss of customer data
Own indicator – significant incidents of IT security breaches Page 26
GRI 103 (2016) Management Approach Page 33 103-1, 2 & 3 Tax transparency Own indicator – tax payments in significant countries Page 33 of operations
GRI 103 (2016) Management Approach Pages 34-35 103-1, 2 & 3 Anti-money laundering Own indicator – reported suspected incidents of Page 34 money laundering kindredgroup.com
50 Notes to the Sustainability Report Company overview at Kindred Sustainability Note 1. Information on employees and other workers
of which Total headcount Permanent Temporary Women 546 535 11 Men 1,018 1,007 11 Total 1,564 1,542 22 Our priority areas
Nordics 336 336 0 Western Europe 1,108 1,088 20 Other 120 118 2 Total 1,564 1,542 22 GRI content index Full-time Part-time Women 546 521 25 Men 1,018 1,009 9 Total 1,564 1,530 34
Note 2. Diversity of governance bodies and employees Notes Age group
<25 26-30 31-35 36-40 41-50 50> Total Board Women 1 1 Men 2 2 4 Glossary Executive Management Women 1 1 2 Men 1 4 3 8
Senior Management Women 2 2 6 10 Men 7 13 16 6 42
All other employees Women 43 127 156 106 76 26 534 Men 50 215 273 203 166 61 968 Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
51 Notes to the Sustainability Report continued
Note 3. New employee hires and employee turnover
Age group
Employee new hires <25 26-30 31-35 36-40 41-50 50> Total Women 37 36 29 13 3 1 119 Men 38 56 44 24 14 8 184 Total 75 92 73 37 17 9 303
Nordics 6 21 17 3 3 3 53 Western Europe 55 62 45 29 13 4 208 Other 14 9 11 5 1 2 42 Total 75 92 73 37 17 9 303
Age group
Employee turnover <25 26-30 31-35 36-40 41-50 50> Total Women 24 44 41 25 15 5 154 Men 33 62 51 40 49 16 251 Total 57 106 92 65 64 21 405
Nordics 4 5 10 15 12 2 48 Western Europe 48 95 78 45 47 14 327 CES Other 5 6 4 5 5 5 30 Total 57 106 92 65 64 21 288
Hire rate 19% Turnover rate 18% kindredgroup.com
52 Company overview at Kindred Sustainability Note 4. Average hours of training per employee category
Average hours of training by gender 2018 2019 2020 Average hours of training per employee, all employees 14.48 12.24 9.67 Average hours of training per employee, women 17.66 14.74 11.56 Average hours of training per employee, men 15.64 12.11 9.40 Our priority areas Average hours of training by governance body Executive management 9.67 5.61 8.41 Senior management 32.82 10.25 7.69 Rest of employees 13.85 12.33 9.92
Average hours of training by function
Commercial 11.99 9.03 6.82 GRI content index Tech 10.95 11.87 9.77 Corporate 13.17 12.43 12.33 Product 8.35 8.47 4.95
Total hours of training, all employees 29,985 25,755 20,881 Average hours of training, all employees 14.48 12.24 9.67 Notes
Average cost of external training per employee GBP 259 GBP 120 GBP 102 Glossary Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
53 Notes to the Sustainability Report continued
Note 5. External initiatives and memberships
External initiatives and memberships Industry association memberships Founding member, European Gaming and Betting Association (EGBA) Founding member, Belgian Association of Gaming Operators, (BAGO) Founding member, International Betting Integrity Founding member, Branschföreningen för onlinespel (BOS) Association (IBIA) Member of the United Kingdom Sports Betting Integrity Forum Founding member, Norsk bransjeforening for onlinespill (NBO) Memorandum of Understanding FIFA Founding member, Danish Online Gambling Association (DOGA) Memorandum of Understanding Anti-Doping Danmark American Gaming Association (AGA)
Memorandum of Understanding Tennis Integrity Unit Asociatia Organizatorilor de Jocuri de Noroc la Distanta (AOJND) Memorandum of Understanding Rugby Football Union Association Française du Jeu en Ligne (AFJEL) Support for the Protect Integrity campaign by EU athletes Protect Integrity Betting and Gaming Council (BGC) Deutscher Sportwettenverband (DSWV) CDP Disclosure Insight Action Netherlands Online Gambling Association (NOGA) Gibraltar Betting and Gaming Association (GBGA) iGaming European Network (iGEN)
Italian gambling industry association (LOGiCO)
Malta Remote Gaming Council (MRGC)
Österreichische Vereinigung für Wetten und Glücksspiel (OVWG) kindredgroup.com
54 Company overview at Kindred Sustainability Note 6. Energy usage, travel and emissions1
Energy usage, travel and emissions 2019/20 2018/19 2017/18
CO2 emissions (tonnes CO2e) Scope 1 – Operation of site facilities 44.3 111.0 12.1 Scope 2 – Grid electricity purchased 1,939.1 2,260.9 2,329.4 Scope 3 – Business travel 855.3 3,882.2 3,938.2 Our priority areas Total emissions 2,838.7 6,254.1 6,279.7
Tonnes CO2e emissions per employee 1.76 3.73 4.29
Tonnes CO2e emissions per GWR GBP million 2.64 6.85 6.93
% change on Electricity use (kWh) previous year GRI content index Total electricity use (kWh) 6,653,000 5,838,200 5,606,400 14.0% Energy ratio (electricity kWh per employee) 4,125 3,481 3,827 18.5% Energy ratio (electricity kWh per GBPm of Gross winning revenue) 6,196 6,398 6,187 - 3.2%
To be compliant with the Greenhouse Gas Protocol Corporate Standard, we used a third party to calculate the Group’s CO2e emissions. Notes All carbon footprints are expressed as an absolute amount in tCO2e. Conversion of non-CO2 greenhouse gases to CO2e has been based upon DEFRA 2020 and IEA 2020.
Scope 2 emissions for electricity are calculated using the location-based method.
No separate data for heating and cooling is available for 2020. Combustion of natural gas to heating is included for one office due to the decision to include data for the consumption of fossil fuels Glossary We have offset our entire carbon footprint in 2020, amounting to 2,838.7 tonnes of CO2,e by supporting a Verified Carbon Standard project.
The report has not been subjected to independent third-party assurance.
1 To ensure CO2e data is collected on a timely and accurate basis, the CO2e reporting year is a month ahead of the financial year. The employee headcount has been measured as at 30th November to align with the CO2e reporting year. In 2020, the emissions have been calculated with more accurate emissions factors meaning that the emissions for 2017/18 and 2018/19 have been recalculated as well allowing for a better comparison. Kindred Group plc Sustainability Report 2020 Report Sustainability plc Group Kindred
55 Glossary
AI artificial intelligence EFDN European Football MSCI Morgan Stanley Capital International for Development Network AML anti-money laundering NHL National Hockey League EGBA European Gaming and B2B Business to Business Betting Association NHS National Health Service
BHA British Horseracing Authority ESG environment, social and governance OECD Organisation for Economic Co‑operation and Development BOS Branschföreningen för Onlinespel FIFA Fédération Internationale (Industry Association for online de Football Association PAF Password Audit Framework gambling Sweden) GDPR General Data Protection Regulation PASPA Professional and Amateur CDP formerly Carbon Disclosure Project. Sports Protection Act A not-for-profit charity that runs the GHG Greenhouse gas global disclosure system for investors, PS-EDS Player Safety – Early companies, cities, states and regions GRI Global Reporting Initiative Detection System to manage their environmental impacts IBIA International Betting RCA The Racecourse Association CSIRT Computer security incident Integrity Association response team RG Responsible Gambling IEA International Energy Agency CSR Corporate Social Responsibility SBTi Science Based Target initiative IOC International Olympic Committee DCCT Derby County Community Trust SDG Sustainable Development Goals IPCC Intergovernmental Panel DEFRA Department for Environment on Climate Change SEF Swedish Elite Football Food & Rural Affairs in UK. ISO 17024 Conformity assessment SGA Swedish Gambling Authority D, E & I Diversity, Equity and Inclusion ISO 27001 for information security SGC Sustainable Gambling Conference DSM 5 Diagnostic and Statistical Manual of Mental Disorders KCF Kindred Compliance Framework TCFD Task Force on Climate-related Financial Disclosure EASG European Association for the KPI Key Performance Indicator Study of Gambling TF-CSIRT Task Force Computer KYC Know your customer Security Incident Response Teams eCOGRA eCommerce and Online Gambling Regulation and Assurance. Independent and MFA Multi-factor authentication UEFA Union of European internationally approved testing agency Football Associations specialising in the certification of online MFC Middlesbrough Football Club gaming software and systems WiR Women in Racing MLRO Group Money Laundering Reporting Officer WiT Women in Tech kindredgroup.com
56 Consultancy, design and production www.luminous.co.uk
Questions regarding this report, its content or This report is printed on materials which are our work with sustainability can be directed to: FSC® certified from well-managed forests. These materials contain ECF (Elemental Design and production Anna Jein Chlorine Free) pulp and are recyclable. www.luminous.co.uk Sustainability Manager [email protected] Kindred Group plc Level 6, The Centre Tigne Point, Sliema TPO 0001, Malta. Tel: +356 2133 3532 Company No: C39017. Registered in Malta.
Registered office c/o Camilleri Preziosi, Level 2, Valletta Buildings South Street, Valletta VLT 1103, Malta. www.kindredgroup.com