This is long-term sustainable development for Svenska Spel

Long-term sustainability for Svenska Spel involves the constant integration of commercial operations with social responsibilities. CSR is a strategic issue for Svenska Spel and taking social responsibility seriously is in line with the Company’s fundamental values.

• Svenska Spel’s long term sustainable development efforts are based on the policy of managing gaming operations in a responsible manner. Svenska Spel is proud of its mandate and strives to fulfil it in a confidence-inspiring manner. Operations are to be managed with strong profitability. Among other measures, this entails that:
• Svenska Spel should develop and offer games in a responsible manner so that our customers will enjoy gaming – a sustainable gaming experience.
• Svenska Spel should contribute to positive social development and take responsibility for the impact of our operations.
• Svenska Spel should strive for healthy relationships with our stakeholders and value their opinions and work to fulfil their expectations of the Company.

Svenska Spel reports its long-term sustainable development through five strategically important areas of responsibility: Business ethics and security, Social responsibility and responsible gaming, Economic responsibility, Responsibility for Employees and Environmental responsibility. Our responsibility model and how we define our strategic areas of responsibility can be found here.

Mandate, business concept and success factors

In accordance with the mandate from our owner, the Swedish State, Svenska Spel shall comprise a reliable alternative to illegal gaming operations. The Company clearly intends for the assumption of responsibility to be a natural part of the gaming experience and to make a difference in the player’s choices of gaming alternatives. The Company’s mission states: "We develop and offer gaming in a responsible manner so that the many people who use our products experience gaming pleasure."

Based on a sound gaming market, simplicity and healthy growth are the two success factors that describe how Svenska Spel is to practice leadership and exercise corporate processes to succeed in its ambition.

Strategic objectives

Svenska Spel’s strategic business objectives through 2012 comprise Customers, Responsibility, Profitability and Employees.

Customers To grow in terms of revenue and to maintain a stable market share, the Company strives to increase the number of people who play for moderately large sums to choose Svenska Spel over other gaming companies.

Responsibility To be perceived as the most responsible gaming company means that responsibility must permeate everything that Svenska Spel undertakes. Responsible gaming, business ethics and security are key examples of how responsibility should always be part of the gaming experience. To simply be the best alternative on the market in terms of reducing the risk of unsound gaming behaviours and providing knowledge and support systems to increase players’ opportunities for safe, healthy and secure gaming. Gaming responsibility is to be integrated into marketing as much as into the actual gaming operation.

Profitability Solid revenues, cost control and a good profit also in the long-term involve, in line with the mandate, creating a caring and responsible gaming environment. To succeed in this, Svenska Spel must maintain its high market share.

Employees Sustainable profitability is only possible if the Company has professional and creative employees who enjoy their work.

Long-term sustainable development over short-term profit maximisation

The fact that Svenska Spel’s owner does not impose any requirements for profit maximisation is a prerequisite for investments in responsible gaming and other areas of responsibility.

Responsible gaming tends to be the subject of focus in terms of Svenska Spel’s corporate social responsibilities. Nevertheless, stakeholders have clearly indicated that there are high expectations on the Company’s responsibility for environment and business ethics, as well as security. Svenska Spel’s overriding objectives in these areas are to reduce its own carbon dioxide emissions through 2015 and to counteract all attempts at utilising the operation for money laundering or other criminal activities.

CSR objectives and strategies

Svenska Spel’s overriding CSR objectives are to implement and distinguish the Company’s mandate to provide gaming in a responsible, commercially ethical and secure manner. This is to ensure that the business has long-term sustainability, increased confidence in Svenska Spel as a responsible company, and to create a sustainable gaming experience.

The CSR strategy to achieve the above objectives is based on four cornerstones:

• Responsible gaming is of utmost priority and is to permeate the company as a whole and be established as a natural part of work for all employees.
• Responsibility is based on knowledge and experience.
• Measures should be based on risk factors of the game.
• The process should be clearly communicated internally as well as externally.

Responsibility and implementation

The responsibility for the CSR process is integrated in the standard operation and follows the CSR guidelines of the Swedish state. Ultimate responsibility is held by the Board of Directors and corporate management where the information manager has primary responsibility.

Svenska Spel’s CSR department, which is part of the Information & CSR staff function, is responsible for overall policies, strategies, processes, tools and key indicators for ethics and responsibility issues. The CSR department also has overall responsibility for the annual CSR Report.

An environmental council and a responsible gaming council have been established under the auspices of the CSR department with representatives from various operational areas and staff functions. The purpose is to support the implementation of overall CSR objectives and key indicators as well as to monitor the CSR process.

Overall challenges

Svenska Spel has made substantial progress in its work towards long-term sustainable development. Providing a reliable alternative to illegal gaming operations means that the Company must develop and offer the established games in demand by players.

One condition is that the required licenses for these must be granted. Another major challenge has been the investments of offshore Internet companies in marketing, which led to considerable increases in advertising investments by the Swedish gaming industry in recent years.