Aristocrat is focused on embedding environmental considerations within our global supply chain and other core business operations.

MEASURING WHAT MATTERS

Key environmental focus areas at Aristocrat include product design and development (hardware and software), waste and recycling, transport (freight, company vehicles), travel (air travel and hotel stays), energy and water consumption.

In 2020, Aristocrat expanded the tracking and evaluation of our carbon emissions, increasing the scope of data collected to establish baseline data on carbon emission volumes11 to include transport12, travel13 and recycling14 for the largest part of our operations in Australia and North America15. Tracking will be extended to other key locations in 2021.


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We are in the early stages of our journey in terms of understanding our environmental impact and performance, and driving improvements in line with opportunities.

We made good progress in 2020 and are committed to making further progress over time, supported by continuous improvement in our data capturing arrangements. We are also sharing our approach to sustainability with customers and suppliers to create greater transparency around our priorities and expectations, while actively learning from others.

  • 11 The electricity, transport, travel, and company vehicle usage metrics encompass data from our five largest facilities which includes Summerlin, Birtcher, Greystanes, Pinnacle, and Tulsa. Electricity data is the only line item at Greystanes for this reporting period with data set looking to be expanded in the future.
  • 12 Includes use of company vehicles and purchased freight transportation services.
  • 13 Includes air travel, hotel stays and car rental days.
  • 14 Includes recycling of the primary production facilities including Greystanes, Birtcher, and Tulsa. Additional site information is being collected and will be included in future reporting.
  • 15 Data has been collected from October 2019 – September 2020 only. Most recent month(s) are estimated due to data availability being limited.
  • 16 Increase in Scope 3 Recycling is due to changes in process mandated by the regulator (Liquor and Gaming NSW) in relation to approvals required prior to disposal of Electronic Gaming Machines.

PRODUCT DESIGN AND PROCUREMENT

We continue to review product design practices, including hardware and software development, to embed sustainable design and procurement principles where possible.

For example, our investment in 3D printers for product development and in-house prototyping is delivering a number of time and cost efficiencies, along with significant reductions in shipping requirements, fuel consumption, packaging, waste and energy consumption.

We have also introduced a new power supply with our Gen 9 gaming machine electronics platform which will be used for all future gaming machine cabinets globally. Our Gen 8 power supply is rated 80+White for efficiency; our Gen 9 improves this to 80+Silver17. This means each gaming machine on a venue floor will use less power; our cabinets will run cooler and this in turn will improve the lifespan of electrical components, as heat is the main driver of component failure.

    17 The “white” rating means the power supply is 80% efficient which also means there is 20% waste (or energy loss in the performance when running at 100% capacity, fully loaded). The “silver” rating means the power supply is 85% efficient when running at 100% capacity, fully loaded. Our power supply measurements show 88% efficiency which falls just short of “gold” classification, which is 90% efficient. **Waste is also translated as heat in our gaming machine cabinets.

Energy efficiency improvements in our Gen 9 gaming machine cabinets will save enough electricity every year to power over 500 homes

RESPONSIBLE RECYCLING AND WASTE MANAGEMENT

In 2020, we installed recycling and compactor machines for polypropylene, polyethylene and polystyrene at our Birtcher integration facility in the US.

The process extrudes the foam into compressed bricks; reducing their volume for subsequent on-sale to a recycling vendor. Our goal is to send zero polypropylene, polyethylene and polystyrene waste to landfill, reducing our Scope 3 emissions. We have also installed a cardboard auger, enabling us to compact cardboard and recycle these materials locally.

At our Franklin, Tennessee facility in the US, we designed a reusable pallet for gaming machines that can be used through the value stream, all the way to the end customer. Trials of the pallet are being conducted with a view to reducing waste and achieving greater efficiencies in transportation.

TASKFORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

The Taskforce on Climate-Related Financial Disclosures (TCFD) is a non-profit group that aims to encourage companies to develop voluntary, consistent climate-related financial risk disclosures and provide these publicly. The TCFD Recommendations span four thematic areas of governance, strategy, risk management, metrics and targets.

As part of its commitment to consider the TCFD Recommendations (Recommendations), Aristocrat has reviewed the Recommendations and substantively assessed a broad range of climate-related risks and opportunities relevant to the business during 2020. Specifically, we considered various scenarios and assessed potential capital and financial risk, as well as other risks and opportunities, that could flow from the impact of climate change on Aristocrat’s business.

While residual risks were not assessed to be at a level that could significantly impact the business at this time, this remains under active and periodic review. Where identified, climate related risks are managed and mitigated through Aristocrat’s enterprise risk management processes, which explicitly encompasses climate related risks and opportunities. These risks are also considered as part of core business processes, including strategy development and Business Continuity Planning. Aristocrat undertakes a materiality assessment to identify ESG issues relevant to the business on a periodic basis, and environmental issues are considered as part of this assessment.

Aristocrat has adopted a phased approach to expanding climate-related disclosures, with improvements being driven over three years (detail is set out below). Our initial focus is on Risk Management, Governance and Strategy disclosures. Aristocrat’s response to the TCFD Recommendations is also published in the Financial Statements section of the Annual Report for the 2020 financial year.

EMPLOYEE-LED ACTIVITIES

Our employees are passionate about the environment and this is demonstrated through the multiple employee-led activities that take place across our global business.

For example, as part of their relocation to a new office space, our team in Franklin, Tennessee donated more than 4 tonnes of goods to non-profit organisations and repurposed more than 50 tons of office furniture and fittings. Donations were made to two divisions of Metro Nashville Public Schools which serves over 86,000 students in the Nashville area, including printers, laptops, desktops, LCD monitors, display stands, chairs and office supplies.

Employees in our India business eliminated single-use plastic cutlery and plastic water bottles from their offices, as well as segregating waste and switching to bio-degradable bin liners.

Plarium employees led a number of initiatives throughout 2020, including implementing a recycling program for paper, plastic, batteries and tetra packs, planting trees and removing rubbish from a local river.

Buildings and Operations

Award-winning spaces to work

In 2019, Aristocrat’s campus in Summerlin, Las Vegas was awarded Leadership in Energy and Environmental Design (LEED) accreditation, an internationally recognised green building certification program.

In 2020, we won Silver in the Sydney Design Awards for our North Ryde Pinnacle building refurbishment. This award celebrates excellence in design and creativity and acknowledges the dramatic transformation of our Sydney Corporate offices to create a fun, engaging, and inspiring environment where our teams can collaborate and do their best work.

Environmental considerations - COVID-19

Responding to COVID-19 has presented new challenges in addressing environmental impact, particularly having regard to the use of cleaning chemicals and other health supplies such as personal soaps, sanitisers and face masks. We have protected the health of our employees through the adoption of cleaning and disinfection procedures and the provision of hand hygiene products and face masks to meet government and health authority guidelines. To minimise environmental impact, we have taken the following steps:

  • Fabric masks: We sourced 8000 reusable fabric masks for employees, saving a significant number of disposable masks from being discarded into landfill;

  • Eye protection: We sourced and made available reusable eye protection for employees where needed;

  • Cleaning supplies: Disinfectants, sanitisers and general cleaning supplies have been selected for efficacy, reduced environmental impact and meeting recommendations of the US Department of Labor Occupational Safety and Health Administration, the US Environmental Protection Agency, Safe Work Australia and Good Environmental Choice Australia.

Please also refer to the Environmental Regulation statement in the Directors’ Report for the 2020 financial year