How tribes can win with sustainability practices

Tribes place an emphasis on preserving the land, water and air for tomorrow’s generations to lead a prosperous life without depleting completely what is available today, and the pressure is rising for them to showcase their environmental, social and governance (ESG) efforts to potential employees, customers and vendors.

Tribal councils and casino leadership should thoroughly examine and reset objectives, where necessary, to help ensure they’re meeting the amped-up expectations. ESG priorities, which may be at an infancy stage, can be set up by the tribe and casinos separately or developed as a joint sustainability program.

Key issues in ESG

In 2001, the American Gaming Association launched its first study of member initiatives and investments related to ESG. Here’s a snapshot of key ESG issues they shared.

Advancing sustainability

• Committing to carbon footprint reductions and deploying alternative energy solutions
• Reducing resource consumption by conserving water and electricity, eliminating food waste and recycling plastic waste

Community investments

• Spurring economic development and community revitalization through capital investment, job creation and local business support
• Expanding educational and career development opportunities by providing scholarships and mentoring
• Providing support during natural disasters and other local crises

Responsible leadership

• Protecting and empowering casino customers by investing in responsible gaming programs and equipping them with educational tools for wagering responsibly
• Exceeding regulatory requirements to help ensure a trusted gaming experience
• Promoting a responsible culture with employee training on problem gambling and human trafficking and the tenets of responsible gaming

The report cited some noteworthy examples of sustainability practices in action among tribal gaming. The Chickasaw Nation’s preferred vendor program includes a registry of hundreds of minority- and veteran-owned businesses that qualify for preferred bidding status with Chickasaw’s organization. In 2020, the Chickasaw Nation spent more than $47 million with minority- and veteran-owned vendors.

The Poarch Band of Creek Indians along with its gaming arm, Wind Creek Hospitality, have donated more than $85 million to community organizations and initiatives since 2013. In 2020-2021, their particular philanthropic focus was on COVID-19-related relief, family centers, local education, parks and museums.

More recently, the Confederated Salish and Kootenai Tribes of the Flathead Reservation in Montana were the first in the nation to designate their own wilderness area, the Mission Mountains Wilderness Area. The tribes spent over $10 million a year on natural resources and land management to preserve those resources on the reservation.

In February 2024, the Department of Energy announced $25 million in funding to support clean energy technology deployment on tribal lands.

While many tribal councils and associated casinos may be committed to supporting such socially responsible initiatives, it can be a challenge to ensure smart implementation strategies are in place. With the emergence of standardized ESG requirements, tribal communities and casinos need to be prepared to provide accountability.

How to start ESG reporting

1. Educate your tribal council and casino leaders

The first step is to educate senior leadership on what ESG is, why it’s important and how it benefits the casino, the tribe and the wider community. Without buy-in from the top, any attempts to implement ESG are ill-fated. Once leadership fully understands ESG, they need to communicate their commitment and how much time and effort they want to allocate to it.

2. Determine what’s important

With so many issues contained in ESG, tribes and casinos need to establish their own goals and priorities. Social issues, like diversity in hiring, might be a more important local issue than greenhouse gas emissions. Take the time to decide what’s most important to address internally and report on.

3. Identify data points and collection approaches

In order to report on your chosen ESG priorities, you’ll need data. Identify what data is already being collected and what data you need to begin tracking. Data from disparate sources may need to be consolidated. Consider how various technology solutions can provide assistance with data collection, consolidation and visualization.

It’s also important to measure progress toward achieving your sustainability goals. Because data will likely come from a variety of sources, you may need multiple iterations to ensure data is accurate and aligns with measurement goals. Data validation is important in ensuring sound and reliable results.

4. Implement internal controls around your data

To maintain the integrity of data, implement internal controls around its governance. Accountants and other consultants can help determine what these controls should be. Third parties will also be valuable in validating data, as they can attest to its accuracy. As industry standards become common for ESG practices, it’s important not to be left behind when stakeholders examine reporting methods and results.

How Wipfli can help

There is no one-size-fits-all solution to developing, validating and promoting an ESG program. Even if your tribal council or gaming organization is already known for practices that align with sustainability, you’ll benefit from Wipfli’s advisory team that can help you set up a program to reduce risk, help ensure compliance and stand out from competitors.

There are several frameworks that allow your organization to follow sustainability best practices. A good first step is to identify the framework that best suits your organization’s needs. The next step is to collect reliable data that assists you in calculating your carbon footprint as well as provides a pathway with a more sustainable approach to reducing that footprint.

Wipfli can help you in your sustainability journey. We partner with our clients to help devise a strategy to achieve your organization’s sustainability goals. We also help you define and measure your metrics.

Learn more on our tribal gaming and government services page.