As the steward of a national asset, we have a duty to operate The National Lottery responsibly to ensure that it grows in a sustainable way for years to come. Achieving this – and delivering value to our players, our business partners and the wider community – is only possible with the ongoing trust and support of all those involved in The National Lottery’s operation. It’s therefore not just what we do that’s important; it’s how we do it too.
To meet our responsibility to keep our players safe by preventing them from playing too young or too much, healthy play continues to be our top priority. As a responsible business, our ambitions are to promote healthy play to all of our players and to ensure that The National Lottery is the safest place to play.
But healthy play is by no means the only way in which we demonstrate our commitment to being a responsible operator. From the support we offer employees, the service we provide to big winners and the work we do to address our environmental impact to the way we treat suppliers, the investment we make in the community and the training we offer our retailers to help identify signs of modern day slavery – we’re proud of the fact that doing business responsibly is an ethos that spans the whole of our operation, and extends across every one of our teams and at every level of our business.
Just like virtually every other company, Covid-19 affected many areas of our operation and threw up a host of new challenges during the year. By drawing on the strength of our employees and our values as a business, our ability to move quickly and adapt to rapidly changing circumstances has enabled us to continue running The National Lottery safely and responsibly throughout.
And that’s been critical – with over £1.2 billion in vital National Lottery funding having now been distributed to charities and organisations to help those most in need, The National Lottery is playing a leading role in helping the country respond to, and rebuild from, the enormous impact of the pandemic.
We haven’t, however, been alone in having to navigate the impact of Covid-19. The outbreak has, of course, highlighted existing challenges, such as digital exclusion, facing our communities. With schools having to close, teachers and families had to face up to the challenges of home-schooling but with hundreds of thousands of pupils having no access to a computer at home. We were therefore proud to support the Daily Mail’s ’Computers for Kids’ campaign. By match funding £1 million of the amount raised by Daily Mail readers, it gave us the opportunity to help children by providing them with much-needed school equipment and resources for learning from home.
Proud to call Watford our home for the past 27 years, we’ve also been fortunate to be in a position to be able to help others in our local area. With the vast majority of our employees and their families living locally, we’ve been hugely grateful for the way in which our community has come together to fight the Covid-19 crisis – despite many organisations facing unprecedented challenges with fundraising, volunteering and service delivery – and wanted to help in any way we could. As well as maintaining our support and funding for local charities with which we have longstanding relationships, we’ve been able to help others in our local area.
For example, when our local MPs Dean Russell and Gagan Mohindra, together with the Elected Mayor of Watford Peter Taylor, told us at the start of the first lockdown about the amazing and selfless work of charities and voluntary groups in our town, we had no hesitation in supporting Watford and Three Rivers Trust’s Covid-19 Community Fund appeal with a donation of £100,000.
The urgent appeal was launched to raise funds for local charities on the front line of the response to the outbreak – with donations helping to provide emergency food and medical supplies to isolated people, accommodation and support for rough sleepers, a lifeline to victims of domestic abuse,
and care for households suffering bereavement.
The pandemic has also seen many hospitals operating at full capacity, putting even further pressure on staff and their working environment. As we had empty space at our Watford head office, we were pleased to be able to provide Hertfordshire Partnership University NHS Foundation Trust with free office facilities – as well as free Wi-Fi, snacks and drinks – as their own office at Watford General Hospital was stretched to the limit.
Bonnie Steer, Contact Centre Agent at Camelot
Be the Safest Place to Play
Promote Healthy Play
Talent, Engagement and Development
Modern Slavery Act
Energy, Waste and Consumption
Raising Internal Awareness
The National Lottery is ranked just 60th in the world in terms of per capita spend, despite being the fifth largest lottery in the world in terms of sales – underlining the effectiveness of our approach to encourage lots of people to play but to only spend relatively small amounts. (Source: La Fleur’s World Lottery Almanac 2021)
Even though the inherent risk of unhealthy play associated with National Lottery products is widely recognised as being very low, we acknowledge that, because of our wide reach, encouraging healthy play needs to be embedded in everything we do. And, with millions of people playing our games, we have an opportunity to encourage it and support our players to play in a way that’s right for them.
Our employees play a vital part in delivering our strategy effectively, so we provide them with the support and resources they need to be able to achieve our healthy play ambitions.
Being the safest place to play depends on our employees being able to support our players, so training is imperative. This starts with our annual ’Healthy Play’ training course, which is mandatory for every employee to complete. Healthy play training also forms part of the onboarding process for all new starters, while our Contact Centre Team receives additional training, including regular knowledge checks, accreditations, outbound interventions training and specialised GAMSTOP training.
In addition, we provide new employees who work on creating our games with ’Game Awareness in Player Protection’ training, which further supports their knowledge around product-related risks, and how to consider opportunities to develop safer and more sustainable games. And, in November, we delivered our annual internal healthy play campaign to keep the topic at the heart of everything we do. This gave us the opportunity to share updates on our progress, as well as stories and blogs from colleagues working on specific healthy play-related projects.
We also celebrated all of the achievements we’ve worked on and delivered together throughout the year, and hosted a live interview with GamCare – the leading national provider of free information, advice and support for anyone affected by problem gambling. This covered topics including the effects of Covid-19 and the support available for women who need advice in relation to healthy play.
In December 2020, the government announced that it was carrying out a major and wide-ranging review of gambling laws to ensure they are, and remain, fit for the digital age. As part of this, it decided to raise the minimum age to play National Lottery games from 16 to 18 by 1 October 2021.
We know that effective age-gating of our products is critical, providing confidence that young people are not being exposed to unhealthy play. We therefore fully support the new legislation, which will bring National Lottery products in line with the purchase of other age-restricted products, such as alcohol and tobacco, and so help to keep age verification policies consistent across all products being sold in store.
Following the government’s decision, we carried out a major programme of work to implement all of the necessary changes across all of our channels as quickly as possible, while ensuring that we maintained the very high standards demanded of The National Lottery.
As a result of the excellent progress made, the age to play all National Lottery games changed to 18+ on 22 April 2021, more than five months ahead of the change in legislation. From this date, anyone under the age of 18 has been unable to play National Lottery games in a retail store, online or on the National Lottery apps. Making the change well in advance of the change in October will help to ensure that all of our 44,000 retail partners across the UK are fully prepared ahead of the new law coming into force.
We targeted our communications to the point of use and/or purchase. We contacted our digital players aged 16 and 17 early on to let them know that they would be unable to play online from 22 April 2021. We also created a dedicated landing page and FAQs on the National Lottery website to help players with any queries they may have about the change.
To ensure the transition to 18+ was as smooth as possible for our retailers, our Retail Sales Team visited stores from the beginning of March 2021 to provide support ahead of the change. As part of this, we designed, printed and sent out millions of new pieces of updated consumer-facing Point of Sale material – including ticket rolls, play slips, till rolls and Players’ Guides – highlighting the new age to play, as well as manufactured new fixed signage and Point Of Sale equipment.
Even though the age to play changed in April, we’re continuing to offer full, ongoing support to retailers to address any needs they may have. For example, we’ve put in place further training material, including e-learning modules, on the National Lottery Retailer Hub website to give them additional support over and above the in-store training that we’ve already provided.
We have a legal, regulatory and moral responsibility to prevent underage sales of National Lottery products. It’s therefore vital that we work closely with our retail partners – all of whom are independent of Camelot – to ensure that they feel supported and confident about how and when to ask for ID, to train their staff, and to make certain that they are using refusal registers to accurately record interactions with underage customers.
We’ve been running our underage play mystery shopper programme successfully for over two decades – achieving a first visit pass rate of 91% for the previous three years and exceeding our target of 90%. The programme uses young people who are aged 16 or over, but who look younger, to visit stores to make sure that retailers are correctly asking for ID where appropriate and are not selling to anyone under the age of 16.
If a retailer fails a mystery shopping visit, they are given additional training and support before they receive another visit. If a retailer fails a visit on three occasions, their National Lottery terminal will be suspended and is likely to be removed.
Although the usual format of the programme was significantly affected by Covid-19 in 2020/21, with visits unable to take place, we continued to provide remote support and training materials to our retailers. Given the requirement to wear face masks in retail premises, we put particular emphasis on the importance of asking for ID from anyone suspected of being underage – and we will continue to reinforce this message given that the wearing of face masks could be an ongoing measure in protecting people from Covid-19.
We also continued to remind retailers of their responsibilities in this area, with increased communications in our bi-monthly retailer magazine, Jackpot, on our dedicated retailer website – the National Lottery Retailer Hub (tnlretailerhub.co.uk) – and by direct letter and email. We also made more than 37,000 phone calls to our retail partners to discuss the prevention of underage play, and to check their knowledge of the legal requirements to buy and sell National Lottery products and claim prizes.
Following the change in age to play from 16 to 18 that came into effect in April 2021, we will continue to support our retailers in preventing underage play throughout the coming year, including the launch of an updated mystery shopper programme featuring young people who are aged 18 or over, but who look younger.
Understanding patterns of play in retail is vital in supporting our retailers to encourage healthy play and prevent underage sales. In September 2020, we launched a new ’Interactions’ section on the National Lottery Retailer Hub website, which enables our retail partners to record both healthy play and/or interactions to prevent underage sales. We are planning a bigger launch for this initiative in 2021/22, with training being embedded in both the Retail Sales Team’s regular visits to stores and within our programme of retail communications.
The following month, we also delivered a healthy play mystery shopper pilot involving 207 randomly selected retailers, with the aim of testing whether they could provide details of GamCare on request – a key element in supporting any players who might need help with their play. This support could be verbal; it could come from directing players to one of our in-store or online resources; or it could make use of the healthy play printout from the National Lottery terminal – a pink ticket, much like a Lotto or EuroMillions ticket, which enables retailers to instantly and discreetly provide players with details of where support is available, should they need it.
The engagement of our retailers and their feedback gave us further insights into how we can continue to improve our ’Supporting Healthy Play’ retailer training programme. As a result, we plan to roll out a second wave of this pilot to include more stores across the UK in 2021/22.
To better understand the impact that our retailer training programme is having on our players, in March 2021 we added a link to the healthy play terminal printout asking players to take an online survey. Our aim is to gain feedback about players’ experiences with healthy play in a retail setting, which we will then use to further understand their behaviour when receiving support in this way and to enable us to provide even more effective support to our retailers.
67% of respondents to our healthy play terminal printout survey
Our responsibility to prevent underage sales also applies to our online channels. With over 9.7 million active registered players, we operate the largest digital lottery in the world by revenue. Having a rigorous online registration process is therefore critical to our effectiveness in preventing any underage sales.
Anyone wanting to register for an online National Lottery account is required to pass an identity and age verification check by Experian. This ensures that the applicant is who they claim to be, is legally old enough to play our games and is a UK or Isle of Man resident. If an individual fails the Experian check, they are required to complete and pass a manual registration, which involves submitting further evidence to us, before an account can be opened. If this doesn’t satisfy our requirements, the applicant would be prevented from accessing any National Lottery products.
Our online behavioural analytics model – Mercury – identifies at-risk players by monitoring a range of playing behaviours. In turn, this enables us to support any players showing signs of unhealthy play.
Over the course of the year, we embedded our interventions programme to further help people manage their play. The programme includes using a range of communications that escalate over time, highlighting the healthy play tools available to players and encouraging them to set their limits.
We also signpost at-risk players to organisations such as GamCare, which provides free information, advice and support, as well as Gamban and GAMSTOP, which work with players to exclude or block access to online gambling, including through bank blocking software.
To ensure the Mercury interventions programme continues to be as effective as possible, we also commissioned an independent behavioural scientist to evaluate the current programme and provide insights into how we could enhance it further. As a result, recommendations from the review – including tailoring interventions for people with different characteristics, such as new National Lottery players and younger players – will be developed over the coming year.
The year also saw us pilot a new step in our phased interventions programme by conducting outbound calls to long-term at-risk players. Due to the success of the pilot, in January 2021 we set up a team of experienced Contact Centre Agents dedicated to making the outbound calls on a permanent basis. Since then, over 250 players have reduced their spend and/or play limits as a result of a phone call from this team. As a result, outbound calling interventions have become an important tool in helping us to achieve our healthy play ambitions.
Lily Winter, Healthy Play Outbound Call Agent at Camelot
To help us achieve our goal of ensuring that all players play in a healthy way, we introduced new targeted communications for all customers in December 2020. The initiative – which used emails, app alerts and website pop-ups – resulted in a four-fold increase in visits to our healthy play webpage.
Although we reached over three million players by email alone, we wanted to go much further. We therefore launched a new healthy play communications plan to run every quarter and reach even more of our players – over and above our routine communications to new players, our draw reminder emails, and our marketing and service email footers.
Behavioural analytics give us a powerful tool to help look at certain player behaviours and tailor our communications to their needs. During the year, our Know Your Customer (KYC) workstream combined insights from our behavioural analytics model, our healthy play terminal printouts in retail, and from looking at players who had hit some of their spend and/or play limits.
As a result, new website pop-ups are now visible to players who reach any of their limits, helping us to raise awareness of the healthy play tools we offer and to signpost players to the relevant account settings. This innovative measure saw 6,388 clicks through to our healthy play webpage and/or players’ spend and play account settings. Over the coming year, we plan to shift our KYC focus towards individual player behaviour, taking into account outlier behaviour and player risk history, to enable us to tailor even more effective interventions.
Even though it’s widely recognised that National Lottery games pose an extremely low risk of causing harm to players, we aim to minimise the likelihood of this happening as much as possible.
We do this by developing all of our games in line with a robust ’Responsible Game Design Process’ to ensure they are always safe and fun to play. In doing so, we can mitigate any risk that they might appeal to vulnerable groups, such as underage people or those with problem playing behaviour.
In May 2020, we completed an external independent review of our game design process and, as a result, we’ve enhanced it further. For example, we’ve added a new assessment tool – Asterig – which measures and evaluates the risk potential of gambling products. To complement this, we’ve introduced a new checklist at our regular governance meetings to ensure clear and consistent guidance on all of the factors to be considered when reviewing games.
As part of the game design process, we now use three tools to assess the level of risk associated with our games:
If any of these tools identifies a potential risk to players, we will modify the game to reduce the risk to an acceptable level. If the risk remains too high, we will not launch the game.
The whole process is overseen by the Game Risk Evaluation Action Team, which comprises representatives from key internal departments from across the business, and is enhanced by a research and review programme for any games that are significantly new and different. We also work closely with the Gambling Commission, which approves all new games before they launch.
To further support our ambition of promoting healthy play, all of our products include the helpline details for GamCare. Many of our products and adverts also feature our ’DREAM BIG PLAY SMALL’ healthy play message, which, when searched online, takes players to the healthy play page of The National Lottery website.
In addition, we ensure that all of our advertising and marketing complies with the Advertising Standards Authority’s CAP Code and BCAP Code. These promote safe marketing and, in particular, the need to prevent young people under the age of 18 from being harmed by any unsafe advertising.
Our ’DREAM BIG PLAY SMALL’ healthy play message, which we launched in August 2019, has been further embedded across our digital and retail player journeys this year.
The message, which reflects and reinforces one of our guiding principles – lots of people playing a little – now appears on 67 touchpoints throughout the digital player journey. It is also referenced in all player communications. In retail, it was recently added to our healthy play terminal printouts, and has also featured in our TV and radio campaigns. Looking ahead to the coming year, we plan to further expand our use of the message to ensure that we are continuing to promote healthy play as extensively as possible.
In pursuit of our ambition to be the safest place to play, ensuring that our retail partners feel supported to challenge people when they are unsure of their age and confident enough to have conversations with customers about their play is essential.
Throughout the year, we continued to deliver our ’Supporting Healthy Play’ training to our 44,000 retailers. The training promotes a consistent approach on how to respond to a player if they directly ask for help, and provides retailers with the appropriate resources to be able to offer further information or support if they are concerned about a player.
Due to the impact of Covid-19, we were unable to make regular face-to-face visits to train and support our retailers. We therefore adapted the way we delivered this training, with the Retail Sales Team conducting and completing it remotely by phone.
Our Contact Centre Team also continued to conduct knowledge-check calls, in which retailers are asked questions about the resources available to them and whether they have concerns about anyone’s playing behaviour. Even with the challenges we faced this year, we achieved an average pass rate of 92% – which is 5% higher than in 2019/20 and 7% above our target.
To further support our retail partners, we launched a new online healthy play training module in June 2020. Accessible to independent retailers through the National Lottery Retailer Hub website, the module is designed to inform and test our retailers’ knowledge about being a responsible retailer. All new National Lottery retailers must now pass this training before being able to activate their new lottery terminal. In addition, the module will form a key part of our communications strategy for all existing retailers in 2021/22.
With our ’Supporting Healthy Play’ training programme having now been running for two years, we commissioned an external evaluation in October 2020 of the effectiveness of the healthy play terminal printout, which retailers can provide to players should they need support with their play. As part of this process, research with both players and retailers was conducted using a survey.
The feedback was very positive, with over half of the retailers who responded believing that the programme had been effective for players as well as their own ability to support players. The findings, which also included suggestions about how we could further enhance our training on the use of the printouts, will enable us to continue supporting our retailers effectively. They will also feed into our wider work examining patterns of play in retail, as we continue to build on the activity we carry out to best support healthy play in retail.
Average retailer pass rate on healthy play knowledge checks
A respondent to the survey
With over 9.7 million active registered users, making national-lottery.co.uk the largest digital lottery in the world by revenue, we want to ensure that both our new and existing players are fully aware of the wide range of practical tools we offer to support them to play in a healthy way.
Our online healthy play toolkit consists of:
As part of our commitment to support people to play in a healthy way, we conducted an internal review of wallet load and spend limits. The review was completed in November 2020 and resulted in positive changes being made to further support our ambition of The National Lottery being the safest place to play. These included reducing our maximum weekly spend limit from £750 to £500, bringing down our default session time reminders from two hours to one hour, and lowering the minimum wallet load amount from £10 to £5.
We are currently finalising further limit reductions for those players identified as at-risk, ahead of implementing them in the coming months. We will continue to monitor the limits and review the impact these changes have on player behaviour.
If, at any stage, a player wishes to take a break or permanently exclude themselves from playing our games, they are able to do so using our existing tools. We’ve also voluntarily joined GAMSTOP, which is the free national online gambling self-exclusion service. This allows people to automatically exclude themselves in one go from all online gambling activities with websites and apps run by gambling operators licensed in Great Britain.
When it comes to healthy play, we want to be leaders within our industry. We were proud in 2019 to become the first lottery operator – and one of the first online gaming operators – to attain Advanced Level 2 of GamCare’s Safer Gambling Standard, a social responsibility quality standard for licensed gaming operators that aims to increase overall standards across the industry, helping to make play safer for all. We are now working towards achieving Advanced Level 3 of the standard.
We continue to hold the highest level of the European Lotteries’ Responsible Gaming Standard, as well as Level 4 – the highest level possible – of the World Lottery Association’s Responsible Gaming Certification. We’ve held these certifications for 12 years and will be re-applying for both in 2021, underlining our continuing commitment to playing a leading role in advancing healthy play practices.
We also continue to hold leadership positions in both the European Lotteries and World Lottery Association Responsible Gaming Working Groups – sharing our experiences with others and playing a hands-on role in setting best practice standards for international lotteries.
Following extensive research, we’ve therefore designed a holistic winner support package that unlocks the power of community, offers relevant support and advice, and inspires possibility. We’ve invested a significant amount of time, money and resources into winner support, and our current programme goes far beyond our existing licence requirements to ensure that winners are able to retain their right to anonymity at all times, and to offer winners of £50,000 or more access to advice from legal and financial experts.
The Winner Experience Team, within our dedicated Player Services department, is responsible for paying prizes to, and advising and supporting, all high-tier prize winners of £50,000 or more. As well as making sure that the correct procedures and processes are followed to ensure that payments are made to those who are entitled to a prize, the team is also passionate about helping winners to make the most of their win and achieve a sense of personal fulfilment.
Winners are supported every step of the way by our Winners’ Advisors, who tailor the support package to the individual’s needs and situation. This helps to demystify a potentially complex life event and allow the winner to successfully navigate sudden wealth. They do this by working with carefully selected partners – including wellbeing experts, life coaches, private banks, financial and legal firms, and a concierge company.
With all of the Covid-19 restrictions during the year, the Winner Experience Team very quickly had to adapt and change its ways of working to enable the seamless continuation of paying big prizes, as well as the provision of relevant advice and support for winners.
Unable to sit with winners in the comfort of their own homes or in the Winners’ Lounge at our head office to validate claims, the team instead took advantage of the innovative remote solutions it had already put in place before the pandemic, such as video conferencing and the use of DocuSign to validate winners electronically, and went to great lengths to help any winners who were not technically minded. As a result, the team succeeded in paying out, advising and supporting more than 770 big winners during the year.
The team was also particularly conscious that, due to lockdown, it might be more challenging for winners to navigate a life-changing event like a National Lottery win without the usual face-to-face support. In some cases, the emotional rollercoaster of a big win was compounded by health issues and job losses.
As part of its work to ensure that all winners have the very best winning experience possible, the team worked hard throughout the year to guide winners through their journey, while also identifying opportunities to provide additional support and information.
For example, it set up ’Virtual Winner Wellbeing’ group sessions, which were held remotely each month and facilitated by an expert life coach. This enabled winners who had chosen to remain anonymous to meet virtually with other winners, and to talk through some of their feelings and emotions – with the sessions resulting in some very positive feedback from attendees:
“So good to know that others are going through the same emotions as us and that this is completely normal.’’
“Really enjoyed that. Great listening to everyone’s stories.’’
The team also formed a ’Winner Council’, comprising eight anonymous National Lottery winners who had volunteered to act as mentors for any winners of over £3 million. Winners have the opportunity to speak confidentially to Council members and hear directly from those who have already been through the winning journey.
In addition, the team continued to provide life coaching support throughout the year to winners of over £3 million, as well as those identified as having a need. Each winner was offered one month’s coaching at a time of their choosing, with the initiative very well received by players:
“Winning big on the lottery is life-changing, it’s like being on a rollercoaster and you cannot get off. Your emotions are all over the place, and everything is new, daunting and unexpected. Speaking to Rachel really helped us deal with our thoughts, feelings and emotions. She would encourage us to focus on successes, enjoyments, concerns and challenges. The tools she gave us helped us cope and learn to adjust to our new life.”
The team also continued to work with its bespoke concierge company, The Fixer. During the year, the service dealt with 157 requests and helped many winners in different ways. Many understandably wanted help rearranging trips and holidays, while, for one family, The Fixer was able to help them fly to Switzerland to get the best medical treatment for cancer during the pandemic.
Following the success of the virtual winner wellbeing sessions, and having considered how else it could provide other support in this way, the team held its first legal and financial webinar in March 2021 for winners of less than £1 million, who don’t automatically benefit from a one-to-one advisory meeting. It has also produced a new booklet, ’Things to Consider’, which can be provided to winners following prize validation.
In the coming year, the team is committed to continuing to offer the best possible winning experience and, as part of this, is looking forward to resuming face-to-face meetings with big winners. It will build on the success of this year’s wellbeing and webinar sessions by holding more of these events, and will continue to explore new ways of enhancing the already very high level of support it currently offers winners.
One of the winners who received life coaching support
The team supports a large number of Camelot relationship managers with varying requirements – providing support during the supplier selection process, carrying out due diligence on new providers, and negotiating commercial terms that represent value for money.
The Procurement Team works closely with our Legal Team, and plays a key role in negotiating contracts that mitigate risk and contain an appropriate definition of the supplier’s obligations. It also assists in the definition of relevant performance metrics, which ensure that supplier agreements deliver high-quality goods and services, and, where necessary, assists relationship managers with performance reviews and to resolve any contractual or commercial issues.
Over the course of the year, the company used in the region of 600 suppliers, many of whom are critical to the successful and efficient operation of The National Lottery. The Procurement Team reviews existing suppliers through a combination of periodic review meetings, surveys and audits. It also remains vigilant when it comes to identifying risks within the supply chain and will work with the wider business to define appropriate mitigation measures.
As a company, we strive to implement clear operating processes and procedures that are fit for purpose and ensure that we comply with all relevant legislation and regulations. As part of this, the Procurement Team supports periodic reporting to the Gambling Commission – providing evidence that we are meeting licence requirements that relate to suppliers.
During the year, a cross-functional team led by the Procurement Team took steps to optimise the supplier onboarding process and contract management procedures, and successfully implemented a vendor information management system across the business. This new technology has improved our vendor records and provides a streamlined audit trail for all new suppliers engaged by the company. This year, we’ve onboarded 52 new suppliers and created 442 contract records.
In preparation for Brexit, the Procurement Team worked with the business to identify goods and/or services that might be at risk of interrupted supply. Where required, the team conducted tenders to identify alternative suppliers and de-risk any critical single source arrangements. Stock holding was increased where appropriate, while overseas supplier visits were conducted to cement new and existing relationships, and to obtain further assurances around the continuation of supply after Brexit.
In response to the Covid-19 pandemic, the team reviewed the supply chain again – categorising suppliers to determine the potential impact on their business operations. It worked closely with relationship managers and key suppliers to confirm that they had relevant contingency plans in place, and to identify any immediate or potential risks. Activity was tracked and reported to the Executive Team and relevant stakeholders – providing visibility of mitigation measures and their status.
Following the extension of the current National Lottery operating licence, the Procurement Team conducted a review of all contracted supplier spend. With the agreement of the Gambling Commission, the company is now in the process of engaging suppliers to ensure that there is continued contractual coverage on mutually agreed terms.
This year’s Supplier Conduct Review was issued to 24 key suppliers. The survey, which helps us to understand how our suppliers manage their own businesses, covers areas such as business ethics, supply chain management, human rights and environmental management, together with broader corporate governance issues. All key suppliers that submitted a response successfully passed the review.
In the coming year, the Procurement Team will continue to educate the supply chain on the importance that Camelot places on corporate responsibility. This includes a commitment to tackling issues – such as modern slavery, and diversity and inclusion – within the supply chain.
The team will be taking steps to ensure that the company’s suppliers are operating with integrity in these areas, and have relevant policies and procedures in place. For example, it has already produced a questionnaire that will explore how our key suppliers approach the issue of modern slavery. The questionnaire will be released to key suppliers identified on the basis of their criticality to the business, spend levels and services that are reliant on labour.
The team will also define the company’s short to medium-term diversity and inclusion objectives as they relate to suppliers, and explore methods that can be used to measure the diversity of the current supply chain. It will then set out an action plan that will require collaboration with relationship managers to achieve the agreed diversity and inclusion objectives.
In addition, the Procurement Team will continue to develop the new vendor information management technology with the launch of a supplier offboarding process – ensuring that the necessary due diligence and process has been followed when a supplier is no longer used. It will also explore other functionality of the software – for example, contract renewal alerts and creating a link with the company’s ’Procure to Pay’ system that will automate the supplier set-up process and avoid duplication of effort.
Through our well-established ’Living Life Changing’ programme, staff have a range of different ways in which they can become involved and connected with National Lottery-funded projects. One option is through volunteering – all employees can take up to two days a year to volunteer with our three charity partners with whom we’ve built great relationships over the years and which have connections to the areas where we operate:
November 2020 marked the fifth anniversary of the ’Living Life Changing’ programme. We celebrated by reflecting on how our employees’ contributions over the five-year period have had a hugely positive impact on both them and our charity partners. We created a new internal ’Living Life Changing’ video, featuring testimonies from staff and partners who have taken part in the programme, and shared a series of ’Get to Know’ videos from our charity partners. We also showcased ’Living Life Changing’ on internal radio to celebrate its success to date and to encourage even greater employee engagement.
In a year dominated by Covid-19 – and the need to keep everyone safe – regular volunteering opportunities were limited. Despite this, we are proud that we’ve maintained our annual contribution payments to all three of our charity partners this year, providing them with much-needed financial support at a time when their usual fundraising options have been significantly curtailed.
We’ve also continued to support them in other ways wherever possible, including supporting Watford Mencap’s annual Santa Dash and The Watford Peace Hospice’s virtual Starlight walk, as well as judging the hospice’s online dog show, ’Paws for Peace’. As restrictions begin to ease in the coming year, we are looking forward to our employees being able to resume their volunteering activities.
Douglas Palarm, Head of Corporate Partnerships at TCV
Michelle Hamilton, Fundraiser at Watford Mencap
Gemma Norris, Senior Fundraising Manager at The Watford Peace Hospice
As well as through volunteering, our employees can interact positively with charities and communities through our match funding scheme. Staff can claim up to £500 per year to match the funds they’ve raised while carrying out their own fundraising activities and events. In 2020/21, these included a wide variety of virtual activities, ranging from sponsored walks, runs and bike rides to live concerts and Christmas jumper days – resulting in them raising more than £39,000 through match funding.
Our employees can also support charities through our Give As You Earn payroll scheme, which enables them to donate to any charity of their choice through their salary every month. In 2020/21, they contributed over £6,200 through the scheme, which we enhanced during the year by allowing them to also choose to use their match funding allowance to double their giving by up to £500.
We also reinforced key messages to take into account the particular challenges that employees have faced, as well as to ensure that we maintain compliance with our legal, regulatory and business requirements.
In addition to these tactical challenges, the last year saw us continue to develop our strategic approach to information security and privacy. As part of this, we successfully maintained compliance with the international standard for Information Security Management (ISO/IEC 27001), the lottery-specific World Lottery Association Security Control Standard (WLA-SCS), and the Payment Card Industry – Data Security Standard (PCI-DSS).
We also chair the World Lottery Association’s Security and Risk Management Committee, the EuroMillions Security Working Group and contribute to the National Cyber Security Centre’s ’Industry 100’ scheme.
Throughout the year, we maintained a particular focus on maturing our third-party security and privacy risk management framework, driven by the adoption of new privacy management software. These improvements were coupled with the introduction of further rigour into our processes, heightened governance and oversight across the business. We also established a dedicated Privacy Team, together with a network of Privacy Champions – representing all areas of the business.
Our plans for the coming year revolve around activities to build on the progress already made to ensure that information security and privacy remain a key focus for the remainder of the current National Lottery licence period. We will also remain ready to respond to changes in the legislative and regulatory environments around advertising technology (Ad Tech) and electronic marketing.
Our main priority during the year has been the safety and wellbeing of our employees. We therefore carried out a great deal of work to make our offices Covid-secure to ensure that they were safe – both for those business-critical workers who have needed to be in one of our physical locations throughout in order to carry out their duties and in readiness for the larger number of people who will return in a controlled way when the time is right.
The fact that the vast majority of our employees continued to work from home over the course of the year has had a positive effect on our environmental impact in terms of the reduction in travel to our offices. Likewise, our Retail Sales Team wasn’t out in the field, travelling between retailers, for much of the year. The low occupancy levels in our offices have also had a positive bearing on our water, electricity and gas usage, which are all considerably lower than in previous years.
Although the pandemic affected our access to supplies, making it difficult to purchase the most environmentally friendly products for use in our offices, we endeavoured to keep the environment at the heart of our activities. During the summer, for example, we issued sets of reusable bamboo cutlery to all staff. Any critical workers needing to work from an office were encouraged to use them and, as greater numbers return to the office in the coming year, we plan to remind and encourage all staff to use their reusable cutlery sets.
We’ve continued to replace standard light fittings with more efficient LED lighting and have upgraded four old air conditioning units in our data centre. The new units give a significantly better output and reduce our carbon footprint. We also replaced two chiller coils on the system cooling our data centre to further increase our energy efficiency.
In our head office, we recycle 100% of glass waste, as well as all of our dry mixed recycling. Our recycling supplier uses a polymer plant that converts waste plastic, such as milk bottles and yoghurt cartons, into pellets for reuse. Our general waste is converted into fuel used to power energy plants. Our food waste is taken to an anaerobic digestion plant where it is converted into gas and then electricity. After the process, the residual waste sludge is given to local farmers for compost.
As well as working to reduce our environmental impact in our office locations, we’ve been working hard in our distribution centre, investigating and implementing more environmentally friendly alternatives to our product packaging and waste removal. In July 2020, we changed our distribution centre waste removal contractor – of the 48.78 tonnes of material sent since then, an impressive 91% of it has been recycled, with 6% used for fuel.
We also moved to using Scratchcard distribution bags made with 30% post-consumer waste material and we implemented the application of Forest Stewardship Council (FSC) markings on all of our product packaging. In addition, all of our pallets are either returned to the supplier for re-use or collected by a local pallet recycler.
In the coming year, we plan to change our waste contractor at our head office, so that we can mirror the achievements at our distribution centre. This will allow us to recycle a much higher proportion of waste, including coffee cups, coffee grounds and food waste. We will also be looking to participate in the waste-to-energy scheme, where waste is used as a fuel to generate power. Under the scheme, energy plants burn municipal solid waste to produce steam in a boiler that is then used to generate electricity.
We are also planning to install car charging points at our offices in Watford, Northampton and Liverpool, in support of the national move towards encouraging greater electric car use.
In September 2020, we became the proud new sponsor of Watford Borough Council’s ’Beryl Bikes’ scheme as part of our work to help drive down carbon emissions in the local area.
Under the three-year sponsorship, a Beryl bay has been installed at our head office to encourage our employees to cycle all or part of their journey to work. With a mix of 300 pedal and e-bikes available – each carrying the Camelot logo – and some 65 bike bays around Watford where people can pick up and drop off a bike, 83% of the town’s population are now within a five-minute walk of a bay.
In offering a sustainable, affordable and healthy form of travel, the bike share scheme makes cycling accessible and encourages people to leave their cars at home. In turn, this creates positive change – with reductions in CO2 emissions and traffic congestion, as well as improvements to people’s health and wellbeing.
In the year since the scheme first launched – a period in which many people have rediscovered the benefits of cycling – more than 90,000 journeys have been taken and 359,000 kilometres covered throughout the town. This equates to over 59,200 kilogrammes of CO2 saved, helping Watford become a more sustainable and greener town.
Natalie Frost, Contract and Relationship Manager at Watford Borough Council
The proportion of the town’s population within a five-minute walk of a Beryl bay
We reduced our total carbon footprint in 2020/21 by 28% – or 651 tCO2e – to 1,642 tCO2e.
We also made significant reductions in our Scope 1, 2 and 3 totals this year:
We’ve taken guidance from the UK government’s Environmental Reporting Guidelines (March 2019), the Greenhouse Gas (GHG) Reporting Protocol – Corporate Standard, and from the UK government’s GHG Conversion Factors for Company Reporting document for calculating carbon emissions.
Energy usage information (gas and electricity) has been obtained directly from our energy suppliers and half-hour/automatic meter reading data, where available. For supplies where complete 12-month energy usage data wasn’t available, flat profile estimation techniques have been used to complete the annual consumption.
Transport mileage and/or fuel usage data is used for our company and employee-owned vehicles. CO2e emissions were calculated using the appropriate emission factors from the UK government’s GHG conversion information.
THE EUROPEAN LOTTERIES is the umbrella organisation of national lotteries across Europe. It promotes responsible and sustainable gaming, and provides a proactive and strategic forum for reflection, discussion and collaboration between members.
THE ADVISORY BOARD FOR SAFER GAMBLING aims to achieve a Great Britain free from the consequences of gambling-related harms. It acts as the Gambling Commission’s expert advisor, and sets the National Strategy to Reduce Gambling Harms and the priorities for research, education and treatment.
THE WORLD LOTTERY ASSOCIATION is a member-based organisation that seeks to advance the interests of state-authorised lotteries.
GAMCARE is is the leading UK provider of information, advice and support for anyone affected by problem gambling. It operates the National Gambling Helpline, provides treatment for anyone harmed by gambling, creates awareness about safer gambling and treatment, and encourages an effective approach to safer gambling within the industry.