Corporate Responsibility Report 2018 Responsible Entertainment is Better Entertainment Contents Our Approach Business Ethics Christin Hertzberg Lena De Geer Marija Angelovska Head of Corporate Responsibility Head of Corporate Responsibility Corporate Responsibility Manager MTG NENT Group NENT Group Letter from CR Team 3 Overview 28-29 Letter from CEO 4-5 Highlights 30-31 CR Strategy & Materiality 6 Compliant Business 32-33 MTG Overview 7-9 How we Govern 34-35 Memberships in Associations 36-37 Media Responsibility Our Stakeholder Engagement 38-39 Letter from the CR Team Value Chains 40-41 Welcome to our 2018 Corporate Responsibility Report. Environmental Care 2018 presented us with a history-defining challenge and opportunity – to streamline our activities based on a business area and pave the path for two distinct corporate responsibility strategies for 2019 and beyond. As MTG’s Nordic Entertainment and Studios businesses formed the new company, Nordic Entertainment Group, Modern Times Group set its sight to esports and gaming and now operates what Overview 10-11 we call Digital Ventures and International Entertainment. Highlights 12-13 Minors Protection & Compliance 14-15 We’ve worked together to give you a comprehensive picture of what MTG, as a group of companies, Responsible Content 16-17 Overview 42-43 achieved in 2018, and what you see in front of you concludes our work as a single team. This is an exciting Environmental Work 44-45 time as we focus on media and entertainment segments that we feel truly passionate about. One thing won’t change – we all believe that responsible entertainment is better entertainment! Social Impact About the Report The most significant project of 2018 was conducting separate corporate responsibility materiality analyses for MTG and NENT Group, and each of the companies will communicate their sustainability strategy soon. We saw it as an opportunity to reflect on the future of broadcasting, streaming, content production, gaming and esports and define important topics that each of the Groups will explore in-depth going forward. This report also indicates that gender diversity, equality and inclusion, as well as GDPR, will play an Overview 18-19 important role in the future corporate responsibility initiatives at MTG and NENT Group. As we are embracing the future, we invite you to turn the page with us and enjoy the report. Highlights 20-21 Objectives and Achievements 47-49 Equality, Diversity & Inclusion 22-23 Workforce Data 49-60 Stay tuned for the new exciting stories to come! Safety & Security 24-25 Workforce Data by Business Segments 60-69 Doing more 26-27 Corporate Giving Data 69 Environmental Data 70 Financial Data 71 Compliance Data 71-72 GRI Index 72-75 Report Boundaries and Scope 76 Independent Assurance Statement 77-78 2 Corporate Responsibility Report 2018 3 Letter from the CEO 2018 has been a milestone year in the history of MTG as we announced the spin-off of our Nordic Entertainment and Studios businesses into what now forms Nordic On the day this report is Entertainment Group. This published we are structurally allowed MTG to focus on different from what we were developing esports and online a year ago. But one thing A value-driven company with gaming products and services remains unchanged – it is our the brand identity and busi- and to continue our work dedication to providing high ness strategy rooted in corpo- towards benefitting gaming quality content experiences, rate responsibility, MTG has a communities. telling relevant stories clear vision of our sustainabil- We live and work in a In May 2018, General Data MTG’s long-term vision is to and having an ongoing ity work. This work is divided fast-moving digital world, and Protection Regulation (GDPR) be a bellwether in esports and dialogue with a broad range into four focus areas – social the importance of child and came into force across the Eu- gaming entertainment. This of stakeholders that form impact, media responsibility, minors protection remains ropean Union, and MTG was means recognising what our the esports and gaming business ethics and environ- high on our list of priorities. well prepared for this impor- audiences and stakeholders ecosystem. mental care. tant initiative that’s designed care about the most and mak- At MTG, we promote a cul- to safeguard the rights of our ing sure that our products, In 2018, MTG delivered Diversity and equality have ture of responsibility and audiences. We saw this as as much as our internal and record sales and increased been and will be MTG’s and accountability, and so in 2018 an opportunity to review our external business practices, profits. This success is an NENT Group’s priority as we have updated our Policies practices in handling personal live up to our values. important foundation for both companies recognise and Guidelines framework information and keeping our MTG and NENT Group as the instrumental role that to reflect the modern media customers and users updated I would like to extend my both companies start an inclusivity and empowerment company that we are. We on how we store and process gratitude to all of the MTG exciting journey of their own. play in companies’ success have rolled out four e-learning their data. During 2018, we and NENT Group teams and Our focus Both Groups have completed and development. We also courses covering our Code have continued to follow our partners, who have contrib- their respective corporate stay committed to bringing is to maintain of Conduct, Anti-Bribery and GDPR roadmap and in 2019, uted to making MTG a better responsibility materiality positive difference to people’s Corruption, Data & Asset Pro- we will keep incorporating place to be and a responsible analyses – that reflect their lives, from our employees to consistent values tection and Competition, and data protection principles into company proud of its brands unique positioning – and will our multi-million audiences. are proud to report an overall our daily work. and products. communicate their updated and business 89% completion rate by year targets and objectives in due As a leading international end. Jørgen Madsen Lindemann culture across course. For MTG, the key digital entertainment group, President & CEO, MTG the Group focus is to maintain consistent we recognise that our content values and business culture is what we are known for and across the Group, despite the what we are measured by. geographical dispersion of I am proud of the achieve- our portfolio companies and ments we’ve made in this area differences in local legislation in 2018, from ensuring a safe A value-driven company that directly or indirectly environment for viewers and influence the way we work players of all ages, to creating with the brand identity and and do business. content and characters that have become an inspiration business strategy rooted in and role models for our au- diences on air and online, on corporate responsibility smartphones and big screens. Jørgen Madsen Lindemann #wearemtg 4 GRI Reference GRI 102-14 GRI 102-15 Corporate Responsibility Report 2018 5 Our Approach Our Approach CR Strategy and MTG Overview MTG is a leading international digital entertainment group and we are shaping the future of entertainment by connecting consumers with the content that they love in as many ways as possible. Our brands span Materiality free-tv and pay-TV, radio and next generation entertainment experiences in esports, digital video content and online gaming. We don’t have any banned products in our markets. Born in Sweden, our shares are MTG’s vision is to shape the future of responsible entertainment. This vision is reflected in our listed on Nasdaq Stockholm and MTG’s headquarters is located in Stockholm. Corporate Responsibility (CR) strategy, which consists of four focus areas – media responsibility, social impact, business ethics and environmental care. Key figures 2018: At MTG, CR is closely integrated with our business strategy, values and culture. To ensure we focus on the most relevant and impactful topics, we regularly review our CR priorities with our stakeholders. These findings form the foundation of our CR strategy and are used to define the key focus areas as illustrated by the materiality matrix. This 2018 report is based on the current materiality analysis and its focus areas are illustrated below. However, as MTG is preparing for the split into two separate companies, two new separate materiality analyses were conducted during the second half of 2018. The findings of the analyses 1 2 775 and the connected new CR strategies will be presented after the split. We have identified the material issues for the respective businesses and aim to align them with the goals, targets and overall strategy going forward. Number of Number of Total employee companies sold companies acquired turnover 5 16 11 12 17 7 9 19 6 23 10 716 27* 83 15 18 13 22 20 Importance for internal stakeholders Total employee Number of countries Number of MTG 14 21 hires MTG operates in registered offices worldwide 2 3 1 8 4 Importance for external stakeholders & society * A country where MTG operates is a country where MTG’s legal entities are based/registered. *Top (above the dotted line), this is the topic that is our biggest differentiator and we can create the most impact (16 content quality). Middle (between the dotted lines), these are the focus topics, areas that we prioritise and continuously work on. Bottom (under the dotted line), these are the base topics, areas that we constantly work on in our