A closer look at ESG Materiality

ESG is an evaluation of a firm’s collective conscientiousness for social, environmental and governance factors that can be applied and interpreted differently. At Light & Wonder, ESG is a set of standards or a score for our CSR pillars of work that socially conscience investors will use to screen potential investments. ESG will be the model we use to self-align with various prioritized ESG frameworks and standards as part of our 5-year roadmap.

OUR ESG STRATEGY SPECIFICALLY TARGETS THESE IMPORTANT AREAS:

Environmental

Environmental Sustainability, Climate & Circular Economy

1. Fleet and carbon emissions

2. Energy consumption and renewable energy usage

3. Waste management, recycling and conservation of raw materials

4. Renewables, resource preservation and repurposing of materials

5. Environmental footprint of operations and sustainable operations opportunities

6. Environmental impact on communities and natural environments where we work and live

Social

DEI, Talent, Philanthropy & Community

7. Engagement, culture and well-being

8. Diversity, equity, inclusion, belonging and social justice

9. Diverse talent representation

10. Creator professional development and training

11. Supplier diversity and responsible supply chain

12. Corporate stewardship for communities, institutions and industry

13. Philanthropy, Creator volunteerism and support for charitable causes

14. Socioeconomic performance growth and impact

Governance

Our first comprehensive materiality assessment in 2022 established a baseline for our work to inform our 5-year roadmap. The results allowed us to better drive our strategy in a way that tightly aligns with our business objectives.

Code of Business Conduct & Responsible Operations

15. Organizational governance of ethics, business code of conduct and ethical product design

16. Compliance with regulatory requirements

17. Conflict mineral policy, data security and privacy, ethical product design

18. Responsible reporting to investor groups and stakeholders

19. Business code of conduct, human rights and labor practices

20. Responsible Gaming advocacy and industry stewardship

21. ESG governance of internal system of practices, controls and procedures

WHY L&W PRIORITIZES A CSR SURVEY AS PART OF OUR MATERIALITY ASSESSMENTS:

• Our customers, players, Creators and regulatory agencies require us to hold high standards for how we impact the world around us.

• This makes our CSR initiatives an integral part of our business strategy.

• Our approach to our four main CSR pillars — Community, People, Planet and Player — materially shapes our culture at Light & Wonder, and is a high-impact lever of Creator engagement and global talent attraction and retention.

WHY WE CHOSE A SURVEY TO INFORM OUR EFFORTS:

• Global engagement in our CSR work is essential to gaining greater adoption and advocacy.

• We’ve built great momentum in the last 24 months, but we recognize there is still more work to be done. We believe in the importance of providing a platform for our Creators to engage and share their perspectives.

• We value our Creators’ voices and actively listen to their input.

• We want to learn what Creators are most passionate about so we can capture those considerations as we further develop our annual CSR strategy and roadmap.

34%

WHAT OUR SURVEY ACCOMPLISHED:

• 25 key questions addressed our core areas of CSR work to elicit responses that reflect the broader global perspective and more specific sub-topics within philanthropy; DEI; environmental sustainability; and Responsible Gaming.

70%

• When asked if Creators felt the increased investment in CSR initiatives in the last 18 to 24 months made them prouder to work for Light & Wonder, the responses rate was 70% favorable. This tells us that Creators believe CSR is important to the culture and how they feel connected to the company overall.

• Environmental Sustainability ranked as the top CSR priority at 40%, with Philanthropy at 23%, Responsible Gaming at 22% and DEI following at 18%.

CORPORATE SOCIAL RESPONSIBILITY REPORT | 2022 15

• Top Environmental priorities: Creators ranked the top five environmental sustainability priorities in the following order: plastic waste reduction at 52%, followed by water conservation, energy efficiency, food waste reduction, renewable energy solutions, recycling, and carbon reduction.

• Top Responsible Gaming priorities: Creators ranked the top five Responsible Gaming priorities with education at 63%, followed by Responsible Gaming resources and problem gaming services, Creator training, responsible marketing practices, and requirements for suppliers.

What Environmental initiatives are most important to our Creators?

Which Responsible Gaming initiatives are most important to our Creators?

• Top Charitable Causes: Charitable Causes that ranked in the top five based on where Creators would like to see Light & Wonder invest further include houselessness/shelter support; food insecurity programs; environmental sustainability causes; Science, Technology, Engineering, Arts, Math (STEAM) education programs; and health care and wellness programs. *Investment in DEI programs and DEI causes ranked 7 out of 12 in order of importance.

Charitable Causes

NURTURING DIVERSITY THROUGH Employee Resource Groups

The goal of creating our first six Employee Resource Groups (ERGs), which launched in 2021, was to foster a diverse and inclusive workspace. Establishing these voluntary, Creator-led groups was critical for our DEI strategy to ensure all Creators have a voice and feel a sense of belonging.

Our ERGs provide the following benefits for Creators:

• Create networking opportunities to engage with leadership and colleagues globally

• Offer resources and programs to support professional development

• Foster Creator mentorship and sponsorship opportunities

• Increase participation in community outreach efforts and partnerships

• Develop advocacy relationships across the organization

• Support the development and implementation of DEI business outcomes

DEI RESPONSES:

• While Creators believe DEI is a priority for Light & Wonder, when Creators were asked to rank DEI against other CSR pillars, Creators felt DEI was less important compared to environmental sustainability, philanthropy and Responsible Gaming.

• Creator feedback revealed that DEI perspectives around the globe vary based on geography, culture and differing life experiences. Some DEI initiatives have become very political in some regions, which may have influenced how Creators responded.

OUR SIX ERGs:

EMPOWHER

Women Creators & Allies

RELATE Multi-Generational Creators & Allies

ALIGN Asian Creators & Allies

SOMOS Latinx Creators & Allies

ILLUMINATE Black Creators & Allies

EMBRACE

LGTBQ+ Creators & Allies

What type of DEI initiatives or programs do Creators in respondents’ local areas currently participate in most?

Global Creator response rate was 72% favorable when asked if they believe Light & Wonder supports and champions DEI programs and initiatives.

What additional DEI trainings would Creators like to see offered through our Learning & Development programs?