From employee-level responsibility initiatives to large-scale carbon footprint reduction efforts, James Walker discovers how environmental factors are becoming increasingly important for the global gaming industry...

Issues surrounding global warming and climate change lie at the centre of what has now become a most contentious public and political debate. The detailed causes of the recent increase in global temperatures remain an active field of research, and although the scientific consensus is that human activity has been the principal factor, many firmly believe humans have a negligible effect on the environment, and that the increased temperatures are part of a wider global cycle.

Regardless, as ecologists and climatologists continue to highlight the dangers of widespread deforestation, pollution and unbridled energy consumption, we are now perhaps more aware of the earth’s fragility than ever before.

‘Green’ has become a key watchword throughout the developed world, and issues surrounding the environment have spilled into every business sector. Companies and organisations can now be seen implementing eco-friendly initiatives everywhere, from supermarkets reducing plastic bag usage to global logistics companies lowering their carbon footprint across the supply chain.

The gaming industry itself has long been renowned for its social responsibility initiatives, and it soon becomes apparent that this high level of responsibility stretches far beyond that of the individual player to the wider issue of the environment - be it through the implementation of day-to-day, employee-level codes or large-scale environmental drives.

When asked how important is it for a company in the gaming industry to be eco-friendly, Eric Hansel, president of EGM Green, said: "I think that the need for sustainability is real and that it will not go away. You have the ability to actually affect change in your players and staff."

EGM Green is a venture by US supplier Executive Gaming Monthly to bring 100 per cent eco-friendly gaming products to casino and luxury markets. The company’s casino tables are made using FSC-certified woods, water-based solvents, low VOC paints and stains as well as post-industrial, pre-consumer ‘rebonded’ foam for the playing surface and the arm rest ring. EGM Green also carbon offsets purchases and participates in a tree-planting programme.

"Applying sustainable design principles to poker tables and other casino products can significantly reduce volumes of waste, decrease the use of natural resources and lower impacts on ecosystems," said Hansel. "And your patrons will appreciate your use of eco-friendly products."

Ecologically sustainable economic development and an environmentally compliant business philosophy is also a particular concern of the Novomatic Group. The Austrian gaming giant has implemented an in-house environmental protection scheme and also promotes the responsible use of resources through information campaigns and management guidelines.

Spain’s Cirsa Group, meanwhile, has implemented environmental design and production methods across all its business divisions. In the manufacturing arena, the company’s Unidesa Gaming and Systems unit is currently expanding its eco-friendly standpoint. Not only has the company either minimised or entirely stopped buying components with lead and chromium in their composition, it has also changed the design of its machines to install TFT instead of CRT, which is recyclable and healthier for the environment.

Aristocrat Technologies launched its Viridian cabinet with much fanfare at last year’s G2E in Las Vegas, and many commentators have heralded the environmentally responsible machine as a benchmark for future sustainable design and the essence of modern gaming technology.

Like many other global gaming firms, Aristocrat has been working hard to employ environmentally responsible design and production methods, covering a number of key areas, including: reducing energy consumption by as much as 25 per cent through replacing cathode ray tubes with more efficient liquid crystal displays.

The incandescent bulbs found in buttons have been replaced with LEDs, giving a saving of approximately 20W; the need for external extractor fans in the Viridian cabinet has been removed through the smart design of heat management; and power factor correction has been implemented in the machine main power supply to maximise energy efficiency at the power distribution point in the venue.

The terms ‘environmentally friendly,’ ‘eco-friendly,’ and ‘nature friendly’ are synonyms used to refer to goods and services considered to inflict minimal harm on the environment. However, because there is no international standard for this concept, the International Organisation for Standardisation considers such a label too vague to be meaningful.

In the US, for example, the phrase is commonly used for advertising or on packaging to promote a sale, but no federal standard is required to display the labels, and thus the United States Environmental Protection Agency has deemed them useless in determining whether a product is truly ‘green.’

Although the lack of a global environmental standard may be hindering eco-friendly initiatives, Norm Wurz, vice president of hardware development for global slot manufacturer WMS Gaming, noted that July 2006 saw the implementation of the Restriction of Hazardous Substances Directive, which restricts the use of hazardous materials including lead, mercury and cadmium in the manufacture of various types of electronic and electrical equipment in the EU.

"Our products are completely RoHS compliant, meaning that we are using if any a minimal amount of lead and other components or elements that are harmful to the environment," he said.

Companies are increasingly using events like Earth Day - global initiatives to inspire awareness and appreciation of the earth’s environment - to reach out to eco-conscious consumers. Although for some this constitutes corporate social responsibility, others more cynically define it as ‘greenwashing.’ Steven Addis, CEO of branding firm Addis Creson, refers to it as the 95-5 rule: five per cent green business and 95 per cent green public relations. Instead of making environmental improvements, he said companies sometimes use the guise of CSR to spur otherwise low sales.

Hansel, however, opposes the idea that ‘green’ is simply PR jargon used to bolster the reputation of companies. "If you put yourself out there as something, it is best to approach it with sincerity. As the public becomes more educated about green issues and what they can do to help fight them, the green baseline will be raised. It is important to clearly communicate what you are actually doing, and not to embellish for the sake of sounding better."

"It really isn’t PR if you are seeing a real profitable result from your efforts," added Wurz. "With the rising costs of the other factors that deduct from the bottom line of a casino, such as electricity or waste removal, you really end up participating whether you know it or not."

Wurz touches upon an important point here, and one which goes against the opinions of some industry observers who argue that the CSR mantra - doing well by doing good - does not necessarily translate to profit maximisation. Indeed, the threat of recession has led strategy consultancy SustainAbility to predict a decrease in CSR budgets. Others argue that companies that have already invested in CSR will be unlikely to cut back and lose the competitive edge that their social conscience gives them.

However, research has demonstrated that companies implementing long-term sustainability in their business operations may be better risk managers and therefore less likely to suffer during a recession.

IBM recently issued a report surveying 250 business leaders on how to attain sustainable growth through corporate social responsibility. According to the report, more than two-thirds of those surveyed are focusing on CSR initiatives to create new revenue streams, and more than half believe they are already seeing the competitive advantage that CSR gives them over top rivals.

On an operator level, the move to become more environmentally friendly at Harrah’s Entertainment swelled from small strides at a few of the group’s properties into the boardroom and executive offices. The push at the corporate level is overseen by Eric Dominguez, the company’s director of energy and environmental services. With a background in energy, having worked at Nevada Power and the Colorado River Commission, Dominguez is tasked with the corporate mandate of increasing energy efficiency that will turn into cost savings.

"You definitely need a strong commitment from upper management and leadership," he said. "All these projects have significant up-front capital cost. There is some economic reason to do it and, if you can, it’s a win-win."

Dominguez’s team looks at lighting retrofits, water conservation in showers and faucets, and smart thermostats in guest rooms to save on heating and cooling costs. Two members of his team are dedicated to new construction design reviews and ways to take advantage of savings through the US Green Building Council’s Leadership in Energy and Environmental Design programme.

Looking ahead, Hansel said that successful organisations like Harrah’s will need to focus on improving their customers’ experience while making them feel that their social concerns and environmentalism are in mind. "Undoubtedly, we will start to see more socially conscious customer service initiatives throughout the entertainment industry," he told InterGaming. "It will certainly be interesting to see how creative organisations can be when trying to make their customers feel that where they are right now has a vested interest in where their grandchildren’s grandchildren could be in the future."

Indeed, the global gaming industry continues to lead the way in terms of environmentally friendly initiatives. So much so that it goes beyond the land-based sector. CasinoDelRio.com is the world’s first eco-friendly online gaming platform and as part of the site’s ongoing efforts to promote environmental awareness and sustainability, it plants a tree for every new player.

Although innovation remains an important way of keeping the environment at the forefront of consumer consciousness, Hansel noted that, just as any other major change faced by organisations, it will ultimately be up to individual companies to decide how quickly they move up the sustainability continuum. "As the casino industry begins what is, without a doubt, a monumental and complete shift toward sustainability, it will become increasingly clear that it is easy being green; all it takes is dedication," he said.