What is ESG?

 

ESG, or environmental, social, and governance, is a framework for discussing how companies or other organizations can be socially and environmentally responsible and how they comply with regulations and other forms of governance.

It consists of three distinct parts, each of which should be investigated and analyzed in the context of a given company:

 

 

Environmental: The environmental category includes the impact of a company on the planet through its carbon footprint, how it uses natural resources, and the risks the business faces due to a changing climate.

 

 

Social: This part refers to how a company treats its employees and invests in the community. It can address issues among the staff, such as equal pay, diversity and inclusion, employee morale, and company culture.

 

 

Governance: This category refers to the company’s governance, such as the leadership and C-suite, and how the company complies with local and national government policies.

 

 

ESG Methodology

 

In order to determine the proper implementation framework for a given company, an analysis is first made to determine the risks and opportunities resulting from the application of the UN Sustainable Development Goals (SDGs) and to define the Goals on which the company should focus in its ESG strategy. This process is usually broken into several steps taken during a dedicated audit made by a specialized organization.

 

ESG Audit

 

To start the implementation of the ESG framework, an audit was conducted for G2A.COM to determine which aspects are of the most importance for us. The process of this audit was divided into three distinct parts:

 

Benchmarks

4 benchmark companies have been identified with similar activities and scope, corresponding to the activities of G2A.COM.

The information available on each benchmark’s strategy/non-financial reporting and the most important themes for each of these organizations were then identified and analyzed.

On this basis, a set of ESG trends among selected benchmarks was created – the most important topics are a summary of the most frequently repeated important topics in the analysis.

 

Stakeholders

Once the benchmarks were prepared, a survey was sent to a number of identified stakeholders from inside and outside G2A.COM. The respondents rated whether G2A.COM had any influence on a given issue, and if so, whether the influence was positive, negative, or both positive and negative.

In total, the survey was filled in by nearly 200 different stakeholders: employees, influencers, business partners and more.

 

Financial assessment

As a final step of the audit, an assessment of the impact materiality was made. In accordance with the ESRS guidelines, each sustainability topic from the ESRS topic list was assessed from the perspective of materiality of impact. Individual topics were assessed for potential and real impact and whether it is negative or positive.

Based on the audit results, the following topics were deemed important:

 

 

Environmental Topics – Climate Change: Environmental sustainability emerged as a significant focus area, with particular attention to topics related to climate change. The audit recognized the importance of addressing our environmental impact, suggesting that efforts to mitigate climate change and promote sustainable practices should be integrated into our business strategy in the future.

 

 

Social Topics – Employees and Equal Opportunities: The ESG audit emphasized social responsibility, particularly in relation to our employees. Key concerns included working conditions and the provision of equal opportunities. The report highlights the importance of ensuring a conducive and fair working environment for our staff, underlining the significance of addressing any issues related to their well-being and professional development.

 

 

Governance Topics – Corporate Culture: Corporate culture was identified as a key aspect that requires attention. The report highlighted the importance of fostering a positive and ethical corporate culture, suggesting that a strong and positive internal environment contributes to overall organizational success.

 

 

 

ESG Strategies

 

Based on the results of the audit, we have decided to implement a number of strategies, which focused on the two most important areas – social and governance. The strategies included, but were not limited to:

 

2024 is a buffer year, when the first strategies will start to be implemented, and the company will get ready to implement a more all-round framework with all three areas covered in 2025.