LSEG Lipper® Fund ESG scores
A pivotal data metrics partner for the transition to sustainable investing

LSEG recognises the increasingly critical importance of transparent, accurate and comparable Environmental,
Social and Governance (ESG) data and analytics for the fund management industry. We are committed
to bringing an array of best-in-class data, analytics and workflow solutions to the market which allow
customers to use LSEG data as the backbone of their investment processes. LSEG is an LSEG business.
With LSEG you can easily integrate ESG factors into portfolio
analysis, equity research, screening or quantitative analysis.
We are now combining LSEG Lipper’s leading global funddatabase, covering over 370,000 fund share classes, with ourleading ESG company database representing over 88% of global
market cap – to create Fund ESG scores. Objective, transparent,comprehensive.
This dataset is available across many of our products, including
desktop Eikon® and LSEG Workspace, through our global data
feeds and API.

Impartiality: our core strength
We remain committed to keeping our scoring system one of theindustry’s most objective. Our ESG scores are calculated using
a data-driven approach. Our ESG scoring methodology details
our extensive range of calculation principles. Three of our core
principles are:
Relative benchmarks – comparable industry and country scoring
offering accurate peer analysis

ESG dataset and scoring

A materiality matrix – as the importance of ESG factors differs
across industries, our materiality weighting determines the relative
importance of each ESG theme to each industry group

LSEG offers one of the most comprehensive ESG databases in theindustry: more than 15,000 companies globally and counting, acrossover 700 different ESG metrics with history going back to 2002.

Transparency weighting – company disclosure is key to ourmethodology, so not reporting data points negatively affects
a company’s scoreEEnvironmental

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ESG

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70
ESG
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Three total pillar scores serve as a review of how a fund orcompany is performing according to each of the three individualpillars E, S and G.

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1. ESG scores – measures a company’s or fund’s ESG performancebased on verifiable reported data in the public domain
2. ESG combined (ESGC) score – overlays the ESG score withESG controversies (impact of negative events) to provide acomprehensive evaluation on the company’s sustainability
impact and conduct in near-real time

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NVThe model comprises two overall ESG scores:s collecte
asure
me ed using su d anbse d
SG ulatdlate
lcu etrics
ca 6 mESG Scores from LSEG are designed to transparently and objectively
measure a company’s relative ESG performance, commitment
and effectiveness across 10 main themes within the three pillars
Environmental, Social and Governance:

hidtrdGovernanceManagement

EmissionsShareholders

Innovation

CSR strategy

Workforce
Human rights
Community
Product responsibility

LSEG Lipper Fund ESG scores

Portfolio analytics
A full suite of analytical tools illustrates howeach constituent of a portfolio is performing
against peers and benchmarks – or enables
a more granular view on how each of a fund’s
holdings perform against the 10 main themesidentified in the ESG proposition. Get asummary analysis of a portfolio’s exposureusing our ESG analytical tools.
The scores are designed to enable our clientsto assess and integrate ESG underlying
raw metrics, analytics or scores into theirinvestment processes and workflows.

LSEG Lipper Fund ESG scores
In addition to security-level portfolio analytics, we offer LSEG Lipper
Fund ESG scores which help identify funds whose underlying
holdings are transparent and have stronger ESG performancebased on reported data relative to peers. All the scores are rolledup from the security level (holdings) to give a fund-level score.
Users can combine the results with sustainable finance regulatory
disclosures and responsible investing data, in conjunction with thetraditional Lipper peer groups and attributes. Only funds that meet oureligibility criteria will have a LSEG Lipper Fund ESG score calculated.

For illustration purpose only

LDA3231020/9-23

To qualify, a portfolio must have a minimum of 10 securities andindividual ESG security scores must be available for 70% of
the portfolio.

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