On April 7th, 2015 it has been finalized the merger agreement of GTECH S.p.A with International Game Technology, Inc., announced on July 16th, 2014. As International Game Technology acquisition was complete, New Company adopted “IGT” brand, consistently with Georgia Worldwide PLC renaming in International Game Technology PLC, which has become the Holding. Continuing in the transparency path towards its stakeholders, also in 2014 GTECH S.p.A. decided to publish the Sustainability Report in order both to disclose its sustainability performances and to preserve an important communication channel with its stakeholders.
Materiality definition process
The subjects covered in the Report have been identified through materiality definition process that GTECH, according to G4 guidelines issued by GRI, has carried out updating the analysis of previous years. Sustainability Report guidelines GRI G4 require that Sustainability Report includes information related to aspects deemed material, in other words which reflect significant impacts for the organization from an economic, environmental and social point of view and which substantively influence stakeholders assessments and decisions. Identification process of GTECH material aspects is organized into four phases: identification, prioritization (and determination of the material aspects), validation and review. For the 2014 Sustainability Report, it has been updated the materiality analysis carried out in 2013.
In the identification phase, all G4 aspects have been taken into consideration, according to their impacts, regardless of whether they may occur inside or outside the organization.
Regarding the internal relevance, identification of relevant topics has been carried out by considering the relevance on economic, environmental and social performance, through qualitative assessments, taking into account Social and Sustainability Reports of previous years, initiatives fostered, existence of procedures and policies as well as existence of corporate functions overseeing the different topics.
External relevance identification has been carried out considering the main categories of stakeholders and business impacts at a local, regional and global level. For the 2014 Sustainability Report, some proxies have been used in order to measure topics relevance in stakeholders assessments and decisions:
- an analysis of stories related to GTECH published by national and international media during last year;
- an assessment of relevant aspects through the analysis of topics reported in the Sustainability Yearbook published by RobecoSam for the “Casinos & Gaming” sector, of disclosures required to GTECH by sustainable investors, of SASB (Sustainability Accounting Standard Board ) Materiality Map and of GRI document “Sustainability Topics for Sectors: What do stakeholders want to know?”;
- a competitor analysis through identification of topics included into the Sustainability Reports of six different national and international sector players.
Therefore, it has been carried out an analysis aimed at identifying relevant aspects boundary, that is the boundary where impacts may occur, both within and outside GTECH.
In the following phase, prioritization has been made by taking into consideration both economic, environmental and social aspects significance and their substantive influence on stakeholders
assessments and decisions. This activity has been based on application of materiality and stakeholder inclusiveness principles and has been split into two parts: one aimed at considering aspects in term of their influence on stakeholders assessments and decisions (taking into account aspect impacts on the basis both of their diversity and of stakeholders perceptions and expectations), the other with the purpose of identifying aspects significance on GTECH economic, environmental and social performance (considering impact likelihood and severity, likelihood of risks and opportunities arising from the aspects, how critical the impact is on long-term performance, opportunity for the organization to grow or gain advantage from the impact, current and future financial and non-financial implications, impacts on strategies, policies, processes, GTECH commitments and impacts on competitive advantage). In this phase, two analyses have been carried out with the purpose of identifying possible sustainability risks related to both supply chain and to GTECH personnel through an investigation on the state of the ratification process of ILO fundamental Conventions in the Countries where suppliers and GTECH subsidiaries operate.
Based on the outcome of the external and internal prioritization, a summary has been made by designing a matrix in which aspects are represented according to their priority.
Therefore, on this matrix a threshold has been traced in order to identify material aspects, that is aspects reported by GTECH. Consistently with the precautionary principle, all relevant topics have been considered material. Finally, for each of these aspects, level of coverage has been determined, according to its significance and of related data availability. For this reason, an analysis has been carried out aiming to identify both nature of information (DMA and indicators) disclosed in last year Report and the possible information gap towards G4 guidelines.
The Sustainability Report of GTECH S.p.A. and its subsidiaries is prepared annually. The period of reference of the Report is the 2014 fiscal year (January 01, 2014 – December 31, 2014).
The perimeter of the Report coincides, insofar as it concerns the economic and social performance, with the total Consolidated Financial Statement of the GTECH at December 31, 2014, while, as far as the environmental performance is concerned, all the Italian, Canadian, and Austrian and most US and UK operations are included in the scope of the report.
During 2014 there have not been relevant changes in joint ventures, subsidiaries, leased plants, outsourcing activities or other entities which may significantly affect Report comparability with previous reporting period. Data and information are reported by geographic segments, according to GTECH S.p.A. and its subsidiaries organization at December 31st, 2014.
For a better understanding of the company and their business segments, please refer to the Consolidated Financial Statement at December 31, 2014 of the GTECH.
The 2014 Sustainability Report has been prepared according to Global Reporting Initiative Guidelines, in their latest version GRI-G4, issued on May, 2013. The content index is shown on page 98.
On the basis of current coverage of the “Specific Standard Disclosures” linked to material aspects, the “In accordance – Comprehensive” option to GRI G4 guidelines has been chosen.
Sources and data gathering systems
Report content is based on the results of the stakeholder engagement process that involves both external stakeholders and the different corporate functions. Data sources are composed by internal documents, market surveys and other official sources directly indicated in the Report. Any review of calculation methods or estimations of data referred to previous years are clearly explained and justified. Financial and economic data and information relate to Consolidated Financial Statement of GTECH and its subsidiaries at December 31st, 2014.
The 2014 Sustainability Report is verified by an independent auditor that carried out a limited audit, according to ISAE 3000 criteria.