ESG Code of Good Practice

The ESG Code Approval Seal is a recognition awarded to entities that report under this Code, showcasing their commitment to ESG. The seal will be valid for one year from the award date and will be renewable at the next reporting period. Different seals will be awarded to licensees that meet Tier 1 or Tier 2 reporting requirements and such licensees can change the Tier at which they report each year.

Reporting entities will be able to display the MGA Code Approval Seal, Tier 1 or Tier 2, on their MGA-licensed website, corporate website, social media platforms, and any publications.

Participation in the Code is voluntary, and licensees have the discretion to decide whether they have the capacity to start reporting on ESG results. However, we strongly encourage all MGA licensees to adopt the Code, reinforcing their commitment to sustainability and the continual improvement of the industry’s ESG standing.

The Code currently applies only to B2C and B2B licence holders of the MGA and is not applicable to recognition notice holders. Nevertheless, the Authority may reassess the inclusion of recognition notice holders within the scope of the Code in the future. 

The information submitted to the MGA will be used to track stakeholders’ commitment to ESG. The Authority may publish aggregated information to showcase the sector’s commitment to ESG practices; however, no individual submissions or information pertaining to specific licensees will be divulged.

It should be noted that any confidential information which is submitted to the Authority in terms of the Code shall be subject to the secrecy and disclosure obligations established in the Gaming Act (Chapter 583 of the Laws of Malta) and any subsidiary legislation promulgated thereunder. The information submitted will be considered internally by the MGA to gauge the industry’s commitment to ESG matters. The Authority may decide to publish general and anonymised information regarding the industry’s ESG commitment and initiatives.

In determining the ESG topics for the materiality assessment, the MGA adopted a multifaceted approach, drawing insights from research, peer review, and consultative discussions with licensees. This method ensured a comprehensive understanding of industry practices and expectations, fostering a balanced selection of topics. The goal of the materiality assessment was to maintain a balanced and manageable framework while considering the impact on society, financial implications, existing reporting requirements, the strategic importance to Malta or the Authority, and ease of implementation.

As we move forward, ongoing revisions of the Code may incorporate additional ESG topics identified in this collaborative and consultative process, reinforcing the commitment to a balanced and responsive regulatory approach.

The Code introduces two levels of reporting: Tier 1 and Tier 2. Tier 1 is designed as a basic ESG standard for entities to report on and achieve and is intended to be used by reporting entities that are in the initial stages of their ESG journey. Tier 2 is more aspirational, for licensees with more experience and/or greater ambitions on ESG. A different seal will be awarded to licensees that meet Tier 1 or Tier 2 reporting requirements. 

The decision to change the reporting level is at the discretion of the licensee. The latter has the flexibility to adjust the reporting level, whether it involves upgrading from Tier 1 to Tier 2 or downgrading from Tier 2 to Tier 1, during the subsequent reporting period. Any changes made will be duly reflected in the MGA ESG Code Approval Seal awarded to the licensee.

The Code pertains exclusively to the operations of licensees under the MGA licence. Therefore, global operators are expected to report information solely related to activities that fall within the scope of the Authority’s oversight.

Reference should be made to page 20, footnote 20 of the Code, wherein it is stated that a ‘Reporting entity’ means the remote gaming entity licensed by the MGA (whether at group or at company level), on behalf of whom this submission is being made.

The Code will be implemented through the existing fees and no additional financial cost will be introduced in relation to the implementation of this initiative.

Participation in the Code is on a voluntary basis, and it is at the discretion of the licensee to determine whether they have the capacity to start reporting on ESG results. While we strongly encourage all our licensees, especially those within the scope of the CSRD, to participate, there will be no consequences for those who choose not to do so.

Yes, this will be possible. However, we strongly encourage our licensees to continue reporting under the Code, especially those within the scope of CSRD. 

It should be noted that in such a case, the relevant B2C Tier will be applicable. 

Licensees will be responsible for providing the required information through the reporting system/tool. Those licensees who choose to participate in the Code will be granted access to the tool and will be required to periodically report on disclosures included in the Code.

Data covering the reporting period (1 January – 31 December) is due by 31 August of the following year. For example, if the reporting period is 1 January – 31 December 2023, then the ESG reporting submission is due by 31 August 2024.

Yes, prior to the opening of the reporting period, the MGA will be issuing guidelines on the reporting tool that will be used for the purposes of ESG disclosures and on certain substantive aspects of the Code.