Visby, May 21, 2020


Statement from the CEO

I am pleased to confirm Svenska Spel´s continued support for the Global Compact and hereby renew our commitment to the initiative and its principles.

Svenska Spel supports the Global Compact´s ten principles with respect for human rights, labor law, environment and anti-corruption. The company intends to advance within these principles in the areas we can influence.

We are involved in the work of Global Compact and its principles being part of the company´s strategy, culture and daily activities. We share this information with our stakeholders through the company´s primary communication channels.

This report describes the progress made in Svenska Spel within these areas during the period June
2019 - May 2020.



Patrik Hofbauer
CEO
Svenska Spel AB

Principle 1-2: Human rights

Principle 1: Support and respect international human rights within the sphere that the company can
influence.

Principle 2: Make sure your own company is not involved in violations.

Governance

• Svenska Spel´s Code of conduct for suppliers
• Svenska Spel´s Internal Code of conduct
• Svenska Spel´s Sustainability plan
• Svenska Spel´s Sponsorship Guidelines
• Svenska Spel´s Self-evaluation model for suppliers

Targets

Svenska Spel has the following targets for 2018-2020:

• 100% of the suppliers that are continuously identified in the company´s risk analysis must have undergone human rights screening.
• Svenska Spel will conduct 1-2 supplier audits per year.

Results

During the year, approximately 75% (2018 = 80%) of the suppliers identified in the company's risk analysis completed a self-assessment regarding their work with, inter alia, human rights. Several new suppliers have been added, thereof the slightly increased figure for the year.

During the fall of 2019, a (1) third-party audit was performed on one of the Group's major suppliers. The results of the audit were satisfactory and the few corrective actions that were identified have been implemented and there has been a close dialogue with the supplier.

In the spring of 2020, work has begun with an external party to develop and secure the process for the supply chain. Systems for risk assessment and clear follow-up will be developed to enable an efficient monitoring of a larger number of suppliers in the near future.

Activities during 2019:

Focus on human rights in the supply chain

At Svenska Spel, we distance ourselves from violations of human rights, which is stipulated in our Supplier Code of Conduct that is attached to all our contracts with suppliers and recipients of our sponsorships. In 2019 Svenska Spel procured goods and services at an approximate value of SEK 1167 million. The main products and services Svenska Spel purchase are market-related services and IT. Most of our suppliers are mainly located within the EU and most of them are Swedish.
Every year, we conduct a risk assessment of our suppliers from a social, ethical and environmental perspective. Our goal is also that all suppliers identified in our risk analysis must have undergone a human rights screening. Follow-up is done with the suppliers if we notice an increased risk linked to the company that is not in line with our Supplier Code of Conduct. An assessment is made through a self-evaluation tool developed by Svenska Spel. Our current goal is to conduct one to two audits annually. This will however increase ahead as we are implementing the more advanced system to monitor our supply chain.

In 2019, we conducted an audit to monitor compliance with our Supplier Code of Conduct with one of the company's major suppliers. The supplier was selected based on the results in the annual risk analysis. The result was satisfactory, and some minor comments emerged that later were addressed by the supplier.

In the spring of 2020, work has begun with an external party to develop and secure the process for the supply chain. Systems for risk assessment and clear follow-up will be developed to enable an efficient monitoring of a larger number of suppliers in the near future.

Leading sponsorship guidelines

Svenska Spel´s leading sponsorship guidelines have become best practice in Swedish sports and resulted in our partners using the same guidelines. For example, the Swedish Handball Federation will apply Svenska Spel´s sponsorship guidelines in its sustainability work ahead of upcoming national competitions and championships. The Swedish Football Association initiated, in line with our sponsorship guidelines, a collaboration with “Human Rights Watch” before the football World Cup in Russia in 2018. Through the cooperation, leaders and players were trained in human rights, which was noted positively by journalists on site to monitor the tournament.

Principle 3-6: Labor law

Principle 3: Maintain freedom of association and recognize the right to collective bargaining.
Principle 4: Eliminate all forms of forced labor.
Principle 5: Abolish child labor.
Principle 6: Abolish discrimination in terms of recruitment and duties.

Governance

• Svenska Spel´s Code of conduct for suppliers
• Svenska Spel´s Sponsorship Guidelines
• Svenska Spel´s Sustainability plan
• Svenska Spel´s Human resource policy
• Svenska Spel´s internal whistleblowing system

Targets

Svenska Spel has the following targets for 2018-2020:

• The Svenska Spel shall be 100% free from discrimination, violations and harassment.
• Employees with a foreign background within the company should be at least 28%.
• Gender segregation among managers within the company should be between 45-55%.

Activities during 2019

Equal sponsorship
Svenska Spel promotes equal funding of sports for women and men. We work to reduce the economic gap between men's and women's sports and create the same conditions for sports regardless of gender. However, there are still a lot of challenges. Svenska Spel demands the equality of the unions when it comes to the distribution of funds. In our agreements covering youth, breadth and federal activities, all funds are distributed equally between the sexes. At the elite level we strive to distribute the funds equally as well, but other aspects such as the commercial value of the sport and performance levels are also considered.
Within the Swedish Football Association, the Swedish Ice Hockey Association, the Swedish Handball Association and the Swedish Olympic Committee, Svenska Spel's sponsorship funds are distributed 50/50 between men and woman. The Swedish Floor Ball Association estimates the distribution to be 38/62 men/woman). The Swedish Bandy Association assumes that the number of licensed ladies is 15% and puts 20% of the sponsorship money to the women, as they try to achieve a better distribution of funds between women and men.

An equal and inclusive workplace
Svenska Spel is to be a company where employees develop regardless of age, gender and background. In 2019, the important work for gender equality and inclusion continued. In 2019, we have also been the main partner for “Tjejer Kodar”, an initiative to attract more women to the tech industry. Together with “Tjejer Kodar”, we have also organized several events.

Desired increase in female managers requires power
In 2019, the proportion of female managers within the company decreased to 37% (39%). Concrete actions have been identified with focus on how to increase the proportion in the future to at least 45%. A variety of activities are planned to reverse the negative trend. For example, both genders should always be represented at the final stage in manager recruitment.
Annual survey of gender equality
In order to ensure a consistent wage level between the sexes, a survey is carried out to detect and rectify unreasonable differences in salaries for equal work. This year's comparison has not shown any such differences.

Follow-up of suppliers
During 2019, Svenska Spel procured goods and services worth approximately SEK 1,167 million. The suppliers are mainly service providers in market related services and IT, they are mainly within the EU and the vast majority in Sweden. During the year, Svenska Spel's Supplier Code of Conduct was included in the agreements as before and a risk analysis was done for the company's procurement. The analysis did not indicate any specific risks at the supplier stage.

A screening of suppliers that is continuously identified in the company's human rights risk analysis was initiated in 2017 and currently about 75% of those suppliers have undergone screening.

Results

During 2019:

• 95% (94%) of the employees reported that they had not experienced discrimination, violations and harassment in the work place. In recent years, we have been able to see a positive development in the area and efforts have been made on an ongoing basis to ensure that employees are aware of their rights and how to report a case.

• The proportion of employees with a foreign background was 34% (34%).

• The proportion of female managers within the company decreased to 37% (39%).

• The risk analysis did not show any specific risks at the supplier stage.

Princip 7-9: Environment

Principle 7: Support preventive measures to combat environmental problems.
Principle 8: Take initiative to strengthen greater environmental awareness.
Principle 9: Encourage the development of environmentally friendly technologies.

Governance

• Svenska Spel´s Code of conduct for suppliers
• Svenska Spel´s Environmental Policy

Target:

Svenska Spel has the following target for 2018-2020:

• Svenska Spel´s Co2 emissions will decrease by 50 % between 2010-2020.

Results

During 2019, Svenska Spel's CO2 emissions decreased by another 4% (total - 45% since 2010). The company's total CO2 emissions amounted to 2732 tonnes of CO2 in 2019. The two largest items of the company's climate impact are business travel and material consumption.

The climate report 2019 includes a historical description 2010-2019 which includes emissions per employee and SEK. Read more in Svenska Spel's Climate Report 2019:
https://om.svenskaspel.se/hallbar-utveckling/miljo/

Activities during 2019:

Climate change is one of our sustainability focus areas. We will do what we can to take responsibility for, and minimize, our impact and contribute to a more sustainable climate. Our primary focus areas are materials, business travel, freight transport and energy.

Since 2010, Svenska Spel has calculated the company's carbon dioxide emissions. The results are presented in an annual climate report posted on the website. The company annually audits focus areas, goals and activities with regards to climate change and the environment.

By working with continuous improvement, we have come a long way. In 2019, the company's first electric car charger was installed at the head office in Visby.

Svenska Spel continues its collaboration with the airline BRA. Our air travel is now fueled with 50% biofuel. The collaboration started in 2017 and contributes to the aviation industry´s conversion to fossil-free flights.

In addition, we compost food waste and sort garbage into a number of fractions, offer loan bikes and metro cards to our employees, etc.

Svenska Spel sets environmental requirements in all procurements based on a risk-based approach and annually conducts risk analyses on both planned procurements and suppliers regarding the environment.
During 2020, the organization will be screened with the aim of developing a new environmental target, developing new KPIs and finding new ways to take the company's environmental work to the next level.

Principle 10:
Anti-corruption

Principle 10: Companies will work against all forms of corruption including extortion and bribery.

Governance

• Svenska Spel´s Code of conduct for suppliers
• Svenska Spel´s internal Code of conduct
• Corporate Privacy Policy
• Risk Management Policy

Targets:

Svenska Spel has set the following targets for 2018-2020:

• 100% of the employees have completed basic training regarding the company's efforts to counter money laundering and terrorist financing.

Activities during 2019

New regulatory framework against money laundering and terrorist financing
Since the fall of 2017, the Money Laundering Act, requires gambling companies to have special knowledge of their customers through, for example, secure identification. We have therefore worked to collect data from both new and existing customers. All new customers have had to answer several questions before they have been able to start using our products. Some customers have had to answer extended customer awareness questions and, in some cases, have had to submit supporting documents proving the origin of the funds they are playing for.

High involvement in the fight against match fixing
Criminal elements and manipulation of results do not belong in sports. At Svenska Spel, we have been working actively against match fixing since 2013 and are a driving force in the work against this increasing threat. Fighting match fixing is crucial in the gaming industry in order to prevent manipulated gaming results. Svenska Spel works broadly based on the precautionary principle in order to achieve the highest possible gaming safety.

We do not offer games on lower divisions, youth sports or individual games as the next corner or red cards as they are easier to influence. In case of deviating game patterns, we also stop all bets on the current game object, investigate, report and refund the bet to the players. We also have bet limits that aim to counteract the economic motives that are often behind established matches.

Results 2019

• The company has reached the goal of the training and in 2019 a new goal will be formulated related to anti-corruption.

Other
Gambling Act January 1, 2019
On January 1, 2019, the new Gambling Act came into force in Sweden. The purpose of the new law is that the Swedish gambling market should be regulated by law so that games for money can be conducted in a way that is healthy and secure and under public control. This means that games should, as far as possible, be offered by gambling companies with licenses to conduct their business in the Swedish market. Gambling in Sweden should be kept at a reasonable level.

Covid-19
Given that the risk factors are increasing as people spend more time in their homes than usual and many more have become unemployed or short-term furloughed, we are closely monitoring the development of our customers' gambling behavior at the moment. We have not yet seen any increased risks in our customers' behavior, but we are watching it closely.

We have also taken some proactive measures in our risk assessment and made modifications in the selection criteria for when and how we intervene with our customers. We have also appointed an expert group that has weekly meetings when we analyze the situation during this special time to see if there have been any changes related to our customers gambling behavior. We are prepared to adjust our work and take further action whenever necessary.