Report · March 8, 2018

Corporate Responsibility Report 2018

Summary

The 2018 corporate‑responsibility overview for Modern Times Group (MTG) reflects a year of strategic realignment following the spin‑off of its Nordic Entertainment and Studios businesses into the newly listed Nordic Entertainment Group. The core thesis is that MTG’s renewed focus on esports, gaming and broader digital ventures can be pursued responsibly through four pillars—media responsibility, social impact, business ethics and environmental care—underpinned by materiality analyses for both entities and a suite of stakeholder‑driven priorities such as gender diversity, inclusion, GDPR compliance and the protection of minors. Financially, MTG reported net sales in the range of 15‑20 billion SEK and achieved an 89 % completion rate for mandatory ethics e‑learning. Risk management was strengthened by publishing event‑security guidance adopted by eight of twenty‑one partners, and by prioritising attendee safety at esports tournaments. Social contributions included a $18 k donation to UCSF, multi‑million‑dollar fundraising for Save the Children and the Diabetes Foundation, and the launch of education programmes targeting young gamers. Governance was reinforced through board oversight, external audits and memberships in more than a dozen industry bodies—including the IGDA, Esports Integrity Coalition and MESA—facilitating continuous stakeholder engagement via surveys, focus groups and board‑level dialogues. Environmental reporting showed a total carbon footprint of 25,215 t CO₂e, a 7 % year‑on‑year increase, while energy intensity fell sharply from 66 GJ per employee in 2016 to 40 GJ in 2018. Scope 3 emissions from events are now being captured, and no fines were recorded for direct energy use,

From the report

CorporateResponsibilityReport 2018 Corporate Responsibility Report 2018 Responsible Entertainment is Better Entertainment

Our Approach Business Ethics Christin Hertzbe a De Ge Mariia Angelovske Christin Hertzberg Lena De Geer Marija Angelovska Letter from CR Team 3 Overview 28-29 Head of Corporate Responsibility Head of Corporate Responsibility Corporate Responsibility Manager Letter from CR Team 3 Overview 28-29 MTG NENT Group NENT Group Letter from CEO 4-5 Highlights 30-31 CR Strategy & Materiality 6 Compliant Business 32-33 Letter from the CR Team MTG Overview 7-9 How we Govern 34-35 Memberships in Associations 36-37 Media Responsibility Our Stakeholder Engagement 38-39 Value Chains 40-41 Environmental Care Welcome to our 2018 Corporate Responsibility Report. 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 We’ve worked together to give you a comprehensive picture of what MTG, as a group of companies, Minors Protection & Compliance 14-15 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 Responsible Content 16-17 Environmental Work 44-45 time as we focus on media and entertainment segments that we feel truly passionate about. One thing Social Impact About the Report won’t change – we all believe that responsible entertainment is better entertainment!

gle team. This is an exciting Responsible Content 16-17 Environmental Work 44-45 time as we focus on media and entertainment segments that we feel truly passionate about. One thing Social Impact About the Report won’t change – we all believe that responsible entertainment is better entertainment! Joat dhe heport 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 Highlights 20-21 Objectives and Achievements 47-49 embracing the future, we invite you to turn the page with us and enjoy the report. 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

the CEO 2018 has been a milestone year in the history of MTG as we announced the spin-off CER 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 busiand to continue our work dedication to providing high ness strategy rooted in corpotowards 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-

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- In 2018, MTG delivered Diversity and equality have At MTG, we promote a cul- to safeguard the rights of our ing sure that our products, record sales and increased been and will be MTG’s and ture of responsibility and audiences. We saw this as as much as our internal and profits. This success is an NENT Group’s priority as accountability, and so in 2018 an opportunity to review our external business practices, important foundation for both companies recognise we have updated our Policies practices in handling personal live up to our values. MTG and NENT Group as the instrumental role that and Guidelines framework information and keeping our I would like to extend my both companies start an inclusivity and empowerment to reflect the modern media customers and users updated gratitude to all of the MTG Our focus exciting journey of their own. play in companies’ success company that we are. We on how we store and process and NENT Group teams and Both Groups have completed and development. We also have rolled out four e-learning their data.

ia customers and users updated gratitude to all of the MTG Our focus exciting journey of their own. play in companies’ success company that we are. We on how we store and process and NENT Group teams and Both Groups have completed and development. We also have rolled out four e-learning their data. During 2018, we partners, who have contribis to maintain their respective corporate stay committed to bringing courses covering our Code have continued to follow our uted to making MTG a better consistent values responsibility materiality positive difference to people’s of Conduct, Anti-Bribery and GDPR roadmap and in 2019, place to be and a responsible analyses – that reflect their lives, from our employees to Corruption, Data & Asset Pro- we will keep incorporating company proud of its brands and business unique positioning – and will our multi-million audiences. tection and Competition, and data protection principles into and products. communicate their updated are proud to report an overall our daily work. culture across targets and objectives in due As a leading international 89% completion rate by year Jørgen Madsen Lindemann the Group course. For MTG, the key digital entertainment group, end.

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