LSEG’s Climate Goals:
Enabling the global financial system to play its role

LSEG’s Climate Goals: Enabling the global financial system to play its role

LSEG is a leading global financial infrastructure and data provider, playing
a vital social and economic role in the world’s financial system. We arecommitted to being a strategic enabler of sustainable growth and supporting
our customers in the transition to a low carbon economy.
This document sets out how we are evolving our climate transition plan; building on our existingtargets relating to our operational emissions and supply chain; and adding goals related to ourproducts, services and market engagement.
This document should be read alongside our 2022 Climate Report and our 2021
Climate Transition Plan.

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LSEG’s Climate Goals: Enabling the global financial system to play its role3

Background
Our Emissions Reduction Targets:
LSEG, and its group companies, have played a leading role in sustainable finance and investment for over
20 years. This has included:− Launching the FTSE4Good index series in 2001;− Reducing absolute scope 1 and 2 GHG emissions by 50% by 2030 from a 2019 base year
− Reducing absolute scope 3 GHG emissions from fuel and energy related activities, businesstravel, homeworking and employee commuting by 50% by 2030 from a 2019 base year

− Being a founding member of the Principles for Responsible Investment in 2006;− Launching the world’s first green industry classification system in 2008;− Building on the pioneering work of companies we acquired including Asset4 in 2009, an early pioneer ofESG data, and Beyond Ratings in 2019, a specialist in fixed income ESG and climate analytics (now LSEG
Sovereign Sustainability Solutions).
In 2015, we became the first major exchange to launch a dedicated Green Bond Segment, and in 2019 welaunched the Sustainable Bond Market. As a group we have been publishing sustainability reports for wellover a decade and were a vocal supporter of TCFD since its recommendations were launched in 2017.
In January 2021, LSEG joined the United Nations Climate Change ‘Race to Zero’, becoming the first global
exchange group to commit to net zero with its own ambitious emissions reduction targets, which wererecognised by the Science Based Targets initiative (SBTi) to align with the goals of the Paris Agreement.
These targets relate to our operational emissions and supply chain (see Box). We are now building on thosefoundational targets by setting goals for integrating climate capabilities within our products, services andmarket engagement, and these goals build on the frameworks developed by the Net Zero Financial Service
Providers Alliance (NZFSPA).

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As part of our overall ambition to reach net zero by 2040, LSEG announced ambitious emissions
reduction targets in 2021. These commit us to:− Ensuring that 67% of our suppliers (by emissions from purchased goods and services) will haveestablished their own science-based emissions reduction targets by 2026
These targets have been independently recognised to align with the goals of the Paris Agreementby the Science Based Targets Initiative1 (SBTi).
To meet these targets, we have established a firm-wide programme to monitor and manage
our emissions. In our first Climate Transition Plan published in 2022, we set out further interim
targets and how we plan to achieve them. We also regularly report on our progress towards ouremissions reduction targets as part of our annual Sustainability/Climate Reporting.

June
2017

December
2018

January
2021

April
2021

September
2021

December
2021

March
2022

March2023

LSEG signs an
official statement ofsupport of the TCFD
recommendations

LSEG integrates
TCFD-aligned
disclosures into the2018 Annual Report

First global exchange
to join the Race toZero campaign andco-chaired UN SSE
Climate Reporting
Guidance

GFANZ launchedand LSEG joins as afounding member

NZFSPA launchedand LSEG joins as afounding member

LSEG near-termscience-based targets
approved by SBTiFirst global exchange
to publish a ClimateTransition Plan,
which received 99%
shareholder support atthe April 2022 AGM

LSEG publishes anintegrated Climate
Report for 2023,
combining ourTransition Plan with
our TCFD Report

About us – Science Based Targets InitiativeToday

LSEG’s Climate Goals: Enabling the global financial system to play its role4

Climate-focused customer solutions
LSEG is one of the world’s leading providers of financial markets infrastructure and delivers financial
data, analytics, news and index products to more than 45,000 customers in over 170 countries and has
approximately US$15.9 trillion benchmarked to its indexes. Backed by more than three centuries of experience,
innovative technologies and a team of 25,000 people in over 60 countries, we are driving financial stability,empowering economies and enabling our customers to grow sustainably.
Today, climate and other sustainability focused solutions are an integral part of our client offering across ourbusiness divisions. They enable our clients across financial markets to better measure climate performancefor assets, companies, countries, funds, or portfolios; to better identify and manage climate-related risks andopportunities in markets across the globe; and to raise capital and navigate a complex and fast-changing
regulatory landscape.

These products and solutions include:− Data and feeds, analytics and workflow solutions in our Data & Analytics division. These enable ourcustomers to seamlessly integrate climate intelligence into decision-making at every point in the trade
lifecycle and across asset classes. For example, our ESG data covers over 16,000 public and privatecompanies and 700,000 bonds, which may be accessed in LSEG Workspace alongside analytical andregulatory reporting capabilities.
− Benchmarking and investment solutions by our index division, FTSE Russell, which enable asset owners
and asset managers to hardwire climate risks and opportunities into their investment approach across asset
classes, from transition indices to Paris-aligned benchmarks. As at June 2023, more than US$260 billion inpassive AUM track FTSE Russell sustainable investment indices, a 110% increase since December 2020.
− Climate-related capital raising, corporate services, and risk-screening and due diligence services as partof our Markets division. This includes helping issuers raise capital and engage the finance and investmentcommunity through the Sustainable Bond Market (SBM), Green Economy Mark, and Voluntary Carbon MarketDesignation. In 2023, over £64 billion of capital was raised by new and existing bonds on the SBM through119 issuances and, since its inception, a total of £232 billion has been raised by bonds on the SBM.
More information on LSEG’s sustainable finance and investment products and services can be found on lseg.com.

LSEG’s Climate Goals: Enabling the global financial system to play its role

Principles guiding our approach to climategoals for our products and services
Our capabilities enable us to support LSEG customers who are adopting and implementing
climate transition plans.
Our approach to setting goals associated with our customer solutions is fundamentally guided by customer
choice. We support customers who use our products and services to work towards their climate ambitions, byhelping them to embed climate in their investment, finance, capital raising and business decisions. We applied
the following principles when setting our goals:− LSEG is an enabler in the financial sector: we support market participants by providing the data andmarket infrastructure they need to inform how they choose to invest, provide finance, raise capital, or makebusiness decisions.
− We offer flexibility as there are multiple ways to measure progress towards net zero2, which are evolving
and maturing. These include but are not limited to measuring absolute reductions across an organisation’semission profile; using intensity measures where emissions are normalised against production or financial
measures or against peers; measuring climate solutions; enhancing the quality of climate governance ortransition plans; and improving the credibility of forward-looking climate targets. LSEG provides a diversity ofproducts and services to market participants, creating flexibility for customers to implement their specific net
zero strategies.
− We enable engagement between the financial sector and the real economy, which is critical to deliver
reductions in real-world emissions. Through our products and services, we can foster engagement
between the providers and users of capital to assist those parties to implement their climate transition plans.

2	We adopt the definition of ‘net zero’ from the SBTi Corporate Net Zero Standard V1.1 2023: “A state of net zero emissions involves:(a) reducing Scope 1,2 and 3 emissions to zero or a residual level consistent with reaching net-zero emissions at the global or sector level ineligible 1.5°C scenarios or sector pathways and (b) neutralizing any residual emissions at the net zero target date – and any GHG emissions
released into the atmosphere thereafter.”

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LSEG’s Climate Goals: Enabling the global financial system to play its role

Setting climate goals related to ourproducts and services
In September 2021, LSEG became a founding member of the Net Zero Financial ServiceProviders Alliance (NZFSPA), a global group of financial service providers that support thegoal of net zero in line with the ambition to limit global temperature increase to 1.5°C frompre-industrial levels.
Since its launch, the NZFSPA has worked to establish frameworks for the purpose of enabling Alliancemembers to independently develop company-specific targets in relation to products and services, andengagement with the market and the public sector, which are in accordance with the Alliance goals.
LSEG’s engagement in the NZFSPA is coordinated across several Alliance workstreams: Research and data;
indices and benchmarks; and stock exchanges. We have set goals/targets across each of these workstreams
relating to relevant products and services we provide across our businesses to meet our customers’ needs.
Further detail of the targets we have set can be found in table 1, however illustrative examples include:− As a stock exchange, building on our existing services, we will provide more tools to help companies to setand deliver their own sustainability reporting and climate transition plans.
− As a research and data provider, we will integrate additional climate data into relevant LSEG Data & Analytics
products by the end of the year. We will also develop new climate data and analytics capabilities that will be
integrated into relevant LSEG Data & Analytics products during 2025 and beyond.
− As an index and benchmark provider, we will further evolve and build out our climate and climate transitionindex families including expanding across major equity and fixed income universes to provide more options
and capabilities for investors.
More detail on our goals can be found in table 1. We will report on progress annually and in the future, weintend to integrate our reporting on progress against our goals within our existing annual sustainability
reporting suite.

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LSEG’s Climate Goals: Enabling the global financial system to play its role

7

Table 1: LSEG’s goals aligned with the NZFSPA framework
LSEG Targets3

As a research and data provider

As an index and benchmark provider

As a stock exchange

Products and services− We will integrate additional climate data into LSEG Data &Analytics’ relevant products by the end of 2024. As a data
and analytics provider enabling customers to transition
to net zero, we define relevant products as feeds andworkflow solutions.

− We will build out the FTSE Russell climate index families,
by the end of 2025, growing index coverage across asset
classes and the most widely used equity and fixed incomeindices. This will include those with an explicit net zero
focus such as:− We will build out our existing tools and services for issuers
to reflect the evolving needs of investors and regulatory
requirements; for example, by providing updated guidanceon corporate disclosures, and climate transition plans by
the end of 2024.

− We will build out and develop new, market-leading climate
data, analytics and capabilities into LSEG Data & Analytics’
relevant products to support the evolving net zero datarequirements of our customers during 2025 and beyond.

− FTSE EU Climate Benchmarks (Paris AlignedBenchmarks/ Climate Transition Benchmarks); and− Through 2024 and beyond, we will continue to evolve andinnovate to enable and scale access to climate-related
finance and investments; for example, through expansionof our Sustainable Bond Market and capacity building incarbon markets.

− FTSE Russell Climate Transition Indices (e.g. TPI Climate
Transition Index Series)− To enhance the existing product offerings, FTSE Russell
will extend disclosure practices by the end of 2025
through the development and launch of climate centricor broader ESG reports providing additional detail on
index level exposure (e.g. comparing climate index
characteristics to the relevant underlying universes).

− We will support the Transition Pathway Initiative (TPI) Centre at the London School of Economics to evolve and grow the datarequired for the Management Quality Score and the expansion of its universe and asset class coverage.

3	The NZFSPA frameworks also include operational targets, however LSEG has previously disclosed these under SBTi and within our Climate Transition Plan. Find our full suite of sustainability disclosures here.

LSEG’s Climate Goals: Enabling the global financial system to play its role

8LSEG Targets3

As a research and data provider

As an index and benchmark provider

As a stock exchange

Transparency andgovernance− We will define and annually disclose LSEG’s definition ofnet zero data and relevant products.

− We will publish full methodologies for all climate and ESG
indices, including how the climate or ESG data is curated
and calculated through 2024 and beyond.

− We will continue to evolve the governance associated with
our sustainable finance products and services in line withbest practice and ensure transparency of the associatedmethodologies for those using them.

− We will ensure we are transparent and regularly disclose
the relevant aspects of data, research and analytics tosupport accurate use of our climate data by our customers.
− We will publish methodology documentation for climaterelated products and services as well as additionalcustomer-only disclosures, including user guides
where relevant.

− We will expand existing reporting frameworks by the endof 2025 to provide customers with index-level climate and
ESG information including:− Sustainable investment data packs, including
decarbonisation targets− Sovereign Reports− Climate reports (including carbon intensities, green
revenues, exposures to carbon reserves, climate
governance scores)

Engagementand education− We will actively engage with industry initiatives, regulators and standard setters on climate disclosures to improve data
availability, comparability and usability across the financial services industry.
− We will contribute to the evolution of market practice with respect to the integration of climate considerations into index anddata methodologies by playing an active role in industry forums, engaging with index users and regulators.
− We will continue to conduct transparent market consultations when seeking to make changes to existing climate andsustainability indexes.

− We will support investor requirements for transition plans
and climate disclosures by building climate understanding
among the issuer community through thought leadershipand training. We have committed to deliver 2 training
sessions in 2024.

LSEG will:− Advocate for mandatory adoption of ISSB (International Sustainability Standards Board) across key markets by 2025 through pro-active engagement with industry bodies, such as the UN
Sustainable Stock Exchange initiative and the PRI (Principles for Responsible Investment) as well as governments worldwide− Engage with standard setters, policymakers and regulators focusing on the policy required for climate transition planning and transition finance, including through our role in relevant industry
initiatives. We will facilitate structured engagement between investors, issuers and intermediaries by hosting events that promote dialogue on green and climate finance, helping to build therequired knowledge and capacity across the financial ecosystem to scale climate-focused investments− Provide educational materials, multi-asset climate research, thought leadership and training to customers about climate transition on at least a semi-annual basis− Provide internal training for relevant employees in relation to the delivery of these targets

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