Submission to CDP
Reporting period: 201931 December 2020

London Stock Exchange Group - Climate Change 2020
C0. Introduction

C0.1(C0.1) Give a general description and introduction to your organization.
London Stock Exchange Group (LSE.L) is a diversified international market infrastructure and capital markets business sitting at the heart of the world's financial community.
The Group can trace its history back to 1698.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixedincome market; and Turquoise, a pan-European equities MTF. It is also home to one of the world’s leading growth markets for SMEs, AIM. Through its platforms, the Group
offers international business and investors unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of multi-asset global CCP operator, LCH
Group, LSEG operates CC&G, the Italian clearing house; and Monte Titoli, the T2S-ready European settlement business.

The Group is a global leader in indexing and analytic solutions. FTSE Russell offers thousands of indexes that measure and benchmark markets around the world. The Groupalso provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, and RNS.

London Stock Exchange Group is a leading developer of high-performance trading platforms and capital markets software for customers around the world. In addition to theGroup’s own markets, over 35 other organisations and exchanges use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in the United Kingdom, with significant operations in North America, Europe and Asia Pacific, the Group at the end of 2019 employed approximately 5,000
people.

Further information on London Stock Exchange Group can be found at www.lseg.com.

C0.2(C0.2) State the start and end date of the year for which you are reporting data.

Reportingyear

Start dateEnd date

Indicate if you are providing emissions data for past reportingyears

Select the number of past reporting years you will be providing emissions data
for

January 1
2019

December 31
2019

Yes

2 years

C0.3(C0.3) Select the countries/areas for which you will be supplying data.
China, Hong Kong Special Administrative Region
FranceItaly
Romania
Sri Lanka
United Kingdom of Great Britain and Northern Ireland
United States of America

C0.4(C0.4) Select the currency used for all financial information disclosed throughout your response.
GBP

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C0.5(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option shouldalign with your chosen approach for consolidating your GHG inventory.
Operational control

C1. GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within your organization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Position of Please explain
individual(s)Chief
Executive
Officer(CEO)

i. The Group CEO is responsible for Corporate Sustainability policy execution and compliance. The CEO appoints the Chair of the Group Corporate Sustainability Committee (responsible formonitoring and approving Corporate Sustainability Strategy), as well as the Corporate Sustainability Pillar leads. These responsibilities are set out in LSEG Group Corporate Sustainability Policy,
approved by LSEG Board of Directors. Climate-related issues are considered as part of our Corporate Sustainability Strategy and Policy, through (1) our Environmental governance, policy and impact
captured and reported on as part of Our Communities strategic commitment; as well as in terms of (2) climate-related risk which is integrated into our Risk Management Framework, alongside othernon-financial risks. Continued review of sustainability risks, including environmental and climate-related risks is necessary in order to comply with the Group's strategic risk objective of ‘maintaining
stakeholder confidence’. ii. Over the course of 2019, the Group CEO was directly involved in supporting the COP26 efforts in the UK. This culminated in his involvement as a speaker in the COP26
launch event in the UK on 27 February 2020. More information is available at: https://www.ft.com/content/b39cf39e-58d3-11ea-abe5-8e03987b7b20 The Group CEO also acted alongside Mark
Carney to launch the campaign to promote adoption of the TCFD framework by global exchanges. More information is available at: https://uk.reuters.com/article/us-climatechange-financeexchanges/carney-calls-for-more-climate-action-from-worlds-stock-exchanges-idUKKBN24B19M

Chief
i. The Group CFO has responsibility for reporting environmental and climate-related issues to the Board, and reviews and approves LSEG’s climate related disclosures. These responsibilities are set
Financialout in LSEG Group Corporate Sustainability Policy, approved by LSEG Board of Directors. Climate-related issues are considered as part of our Corporate Responsibility Strategy and Policy, throughOfficer (CFO) (1) our Environmental governance, policy and impact captured and reported on as part of our Our Communities strategic commitment; as well as in terms of (2) climate-related risk which is integrated
into our Risk Management Framework, alongside other non-financial and sustainability risks. Continued review of sustainability risks, including environmental and climate-related risks is necessary inorder to comply with the Group's strategic risk objective of ‘maintaining stakeholder confidence’. ii. The Group CFO approved all expenditure and investments in LSEG’s environmental programmethroughout 2019.

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequencywith whichclimaterelated
issues are ascheduled
agenda item

Governancemechanisms
into whichclimaterelated
issues areintegrated

Scope of Please explainboardlevel
oversight

Scheduled –somemeetings

Reviewing<Not
and guiding
Applicabl
strategye>Reviewing
and guiding
major plans ofactionLSEG Board has responsibility for the Group Sustainability strategy. Climate-related issues are discussed in the context of both LSEG sustainable finance strategy andwith reference to LSEG operations and alignment with the objectives of the Paris Agreement. In 2019, the Board met four times to discuss ESG matters. LSEG’s progressagainst its environmental targets is regularly submitted to the LSEG Board as part of annual sustainability reporting within the Annual Report (TCFD disclosures) and the
Corporate Sustainability Report (Environmental section). The LSEG Board oversee progress against goals and targets for addressing climate-related issues, as well as
performance against climate-related objectives, during these review periods. The Board's review of these matters ensures that the business keeps in mind theenvironmental impact of LSEG’s operations.

C1.2

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(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Name of the position(s) and/or committee(s)Reporting Responsibility
line

Coverage of
responsibility

Frequency of reporting to the board on
climate-related issues

Chief Executive Officer (CEO)<Not
Both assessing and managing climateApplicable related risks and opportunities><Not Applicable> Quarterly

Chief Financial Officer (CFO)<Not
Both assessing and managing climateApplicable related risks and opportunities><Not Applicable> Half-yearly

Chief Risks Officer (CRO)<Not
Both assessing and managing climateApplicable related risks and opportunities><Not Applicable> Quarterly

Other C-Suite Officer, please specify (Group Head of Government Relations and Regulatory
Strategy (and Co-Chair of LSEG Group CS Committee))<Not
Assessing climate-related risks andApplicable opportunities><Not Applicable> More frequently than quarterly

C1.2a

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(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climaterelated issues are monitored (do not include the names of individuals).
1) Chief Executive Officer (CEO)i. The Group CEO is responsible for Corporate Responsibility policy execution and compliance, including climate-related issues. The Group CEO appoints the Chair of theGroup Corporate Sustainability Committee, as well as the Corporate Sustainability Pillar leads. The board-level Group Corporate Sustainability Committee is responsible forapproving and monitoring our Corporate Responsibility strategy and policies.

Climate-related issues are considered as part of our Corporate Sustainability Strategy and Policy, through 1) our Environmental governance, policy and impact captured andreported on as part of Our Communities strategic commitment; as well as in terms of 2) climate-related risk which is integrated into our Risk Management Framework,
alongside other non-financial and sustainability risks. Continued review of sustainability risks including Environmental risks (where we consider climate-related), as well as
Social and Governance risks, is necessary in order to comply with the Group strategic risk objective of ‘maintaining stakeholder confidence’.

ii. The Group CEO has responsibilities for climate-related issues as the highest ranking executive in the London Stock Exchange Group. The board and CEO are overseenby the Chairman. This is an executive role that connects management to Board oversight, and encompasses oversight of both operational and business risks associated withclimate-related issues.

2) Chief Financial Officer (CFO)
i. The Group CFO has responsibility for reporting environmental and climate-related issues to the Board, and reviews and approves LSEG’s climate related disclosures.

ii. The Group Chief Financial Officer has responsibilities for climate-related issues as a member of the LSEG board and Executive Committee. This is an executive role thatconnects management to Board oversight and encompasses oversight of both operational and business risks associated with climate-related issues.

3) Chief Risk Officer (CRO)i. The CRO is directly responsible for providing strategic guidance for the development and implementation of the environmental action plan covering all climate-related
issues. As Our Communities pillar lead, the CRO oversees the Environmental Management Group led by the Head of Group Property. The Environmental Management
Group is comprised of key stakeholders across the Group who are responsible for environmental impacts i.e. Property/Facilities Managers, Procurement, Data Centre
Managers, Business Travel and HR and covers all geographies.

Each financial year, the Environmental Management Group submits an environmental action plan which incorporates environment and climate-related issues to the ExCo.
This focuses on our current objectives, annual environmental targets, and other climate-related opportunities for the Group, including a critical evaluation of our successes
and our competitive position. The Environmental Management Group is responsible for defining annual objectives, targets and programmes, as well as delivering andreviewing performance across the Group including monitoring GHG emissions, identifying improvement opportunities and reporting. The Environmental Management Group isalso responsible for monitoring climate-related risks, and reporting these to our Risk Management Framework.

ii. The Group Chief Risk Officer is a member of the Executive Committee and reports to the Group CEO. The CRO is also a member of the Group Corporate Sustainability
Committee and is the Group’s Our Communities pillar lead, and as such has responsibilities for climate-related issues. Environmental and climate-related performance isoverseen by our Chief Risk Officer (in their role as the Group Our Communities pillar lead), as well as our Chief Financial Officer. The role of our Chief Risk Officer as Our
Communities pillar lead, ensures Environmental (included climate-related), Social and Governance risks are fed into the LSEG Risk Management Framework.

4) Group Head of Government Relations and Regulatory Strategy and Co-Chair of LSEG Group CS Committee
i. The Group Head of Government Relations and Regulatory Strategy, is responsible for climate-related regulatory strategy. A key medium term focus and high priority for thisrole is alignment of the LSEG sustainability programme with COP26 (due to take place in the UK in 2021).

ii. The Group Head of Government Relations and Regulatory Strategy reports into the Group CEO. The role has responsibility for climate-related issues due to their position
as Co-Chair of LSEG Group CS Committee, and their position as Head of Government Relations.

C1.3

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(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?
Provide incentives for the management of climate-related issues
Row 1

Comment

Yes

C1.3a(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).
Entitled toincentive

Type of Activity
Comment
incentive inventivizedManagement Monetary Emissions
group
rewardreduction
target

The Group Head of Property has environmental objectives, which include climate-related and other environmental targets, as part of their annual business objectives, which
are linked to the annual bonus programme. These objectives are cascaded to the Group Property team across our global regions. Specifically, we are seeking reduced
carbon impact due to energy efficiency and enhanced business continuity capability due to adaptation measures. Group-wide Sustainability Targets include: Science-basedtarget: 40% reduction of absolute global Scope 1 and 2 GHG emissions by 2030 from a 2016 baseline. Other targets include: 20% reduction in our CO2e emissions per FTE
and £m Revenue by 2020, with a 5% reduction in 2019 relative to 2018; 20% by 2020 reductions in Data Centre and Office Energy Use, Water Consumption, Waste andBusiness Travel (Flights), and 2% annual reductions in each of these areas for 2019. There are also annual behaviour change related targets to increase video conferencing
use by 5%, and reducing paper consumption by 5% in 2019 compared to 2018.

Chief
Executive
Officer(CEO)

Monetary Other
reward(pleasespecify)(Strategicgoal)

The Group CEO variable pay is linked to the achievement of strategic objectives, which include ESG and climate-related objectives.

All
employees

Monetary Behavior
rewardchangerelatedindicator

In the UK we operate a cycle-to-work scheme as a form of salary sacrifice, which allows employees to reduce their gross salary in exchange for hiring a new bike and cycling
accessories with savings of over 40%. At our Paternoster Square HQ in London we have increased the number of bicycle racks to support this initiative.

C2. Risks and opportunities

C2.1(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?
Yes

C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time horizons?
From (years) To (years) Comment
Short-term

1

3Medium-term 3

5We are considering an extension to a 2030 horizon (3 to 10 years), to align with the target year of our science-based target, which continues to be developed in 2020.

Long-term

10

As a result of the current scenario analysis work, we are considering extending our long term horizons, up to 2050 (10-30 years).

5

C2.1b
(C2.1b) How does your organization define substantive financial or strategic impact on your business?
i. We use the term “substantive financial or strategic impact” when identifying and assessing climate-related risks, and define this as a financial or strategic impact that
requires factoring into our business strategy and operations, and a change in our product portfolio, client target and/or resource mix. Our principal risks are those risks
considered to have the highest potential financial or strategic impact.

ii. “Substantive financial or strategic impact” is defined according to the magnitude of the financial cost to the group as well as the potential for reputational impact. Climate
related risks are assessed for their financial or strategic impact and tested against LSEG’s Risk Appetite.

C2.2

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(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities.
Value chain stage(s) covered
Direct operations
Upstream
Downstream
Risk management process
Integrated into multi-disciplinary company-wide risk management process
Frequency of assessment
More than once a year
Time horizon(s) covered
Short-term
Medium-termLong-term
Description of process
The Executive Committee are accountable for risk identification. analysis, evaluation and mitigation. Climate-related risks are integrated into a multidisciplinary group-widerisk framework. This framework considers transition risks (policy and legal, technology, market, reputation) and opportunities (resource efficiency, energy source,
products/services, markets, resilience), and physical risks related to climate change. Our Risk Management Framework operates as a cyclical process and enables climatechange related business decisions, operates across the group and functions, involving internal committees as appropriate. The Environmental Management Group,
Executive Committee and Risk Committee are responsible for managing risk. 1) The Risk Committee define the Risk Management process and policy framework andpropose the Group Risk Appetite Statement to the Board. 2) Business Management define Risk Governance, Strategy and Appetite. 3) This is followed by Risk Identification
and Assessment, which is the responsibility of the Executive Committee at a company and asset level, supported by Environmental Management Group and Corporate
Sustainability Committee who meet quarterly. Stakeholder engagement is a crucial in identifying and assessing climate-related risks, at LSEG this includes expertise fromFTSE Russell, insights from ESG rating agencies, the Centre for the Protection of National Infrastructure (CPNI) in the UK, working groups on green finance regulations andinformation from our global Property team. Once identified, climate-related risks are classified as either Company or Asset level risks. i) Company Level: Climate Changetransition risks and opportunities are identified analysing our product portfolio across client segments and asset classes (Product/Services and markets), whereas the risks
and opportunities associated with energy sources and business resilience are assessed taking into account all of our operations. ii) Asset Level: LSEG has offices and data
centres located around the world, and we assess risks and opportunities at the facility level to understand climate related risks including flooding, long-term temperaturechanges and extreme weather events. We assess our facilities ability to operate, staff access, safety and well-being and insurance premium impacts on both a short andlong-term basis, paying close attention to both the global perspective and specific local needs. 4) Where risks and opportunities are considered material, these are stresstested to determine the potential impact on the financial results, strategic plans and operational resilience of LSEG and to determine whether the risk is within the Group’s
Risk Appetite. In line with our commitment to support the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), our 2019 Annual Report
includes disclosures on our current alignment across the four pillars, Governance, Strategy, Risk Management and Metrics and Targets. During 2019, LSEG began
development of climate-related risk scenarios over both the medium and longer term, to help identify the impact of different climate scenarios on credit, operational, market
and liquidity risks. This project will not only improve our alignment with the requirements of TCFD reporting but will be central to further enhancing the integration of climaterelated risks into our Risk Management Framework. Physical Risk: During 2019, we reported climate change as a principal risk for the first time in our annual risk disclosure
which forms part of our Annual Directors’ Report. For a number of years, LSEG had considered the physical acute and chronic risks of climate change to the organisation
within the Risk Management Framework. Climate change is expected to increase the severity and frequency of extreme weather events globally, and some LSEG locations,such as Sri Lanka are considered to be more vulnerable to these events. This theory was proved during 2019 with a flooding event in Sri Lanka. Despite risk mitigation
efforts (in place as a result of the Risk Management Framework assessment of acute physical risk), a severe localised flooding event near Colombo resulted in one of ourdata centres being cut off by flood water. Staff were unable to access the site and two generators were close to flooding. Disaster recovery plans were implemented, andother locations were able to ensure business continuity. In response to this event, this issue was escalated to our Risk Management Framework and has heightened the risk
level of acute physical risks to LSEG’s operations, whilst also demonstrating the criticality of mitigation efforts for these most vulnerable locations. This event also
highlighted the importance of engagement with local site teams in the Risk Management Framework. The Risk Management Framework now includes extended physicalrisk horizons for this location only to 2050, as the local team review flood prediction scenario models for future potential flooding events. The property team are running
increased generator testing to ensure business continuity. The central risk function and relevant committees/groups have committed to further investigation of moving someof these facilities (and others) to cloud hosting, rather than physical infrastructure. This decision continues to be explored with a number of internal stakeholders.
Transitional Opportunity: The transcendence of ESG issues and increasing environmental regulation has been monitored by the Group for a number of years, and has been
responded to by way of launching FTSE4Good Index series, Green bonds listings, and over 100 ESG indices calculated by FTSE Russell. FTSE Russell’s monitoring of thegrowth in these products and services, identified the risk in a shift in LSEG listed companies from those that are high carbon intensive, to low carbon intensive andpotentially ‘green’. This risk (as described in C2.3a) was assessed due to the traditional views of investors that green sector companies offered minor opportunities andfocused on volatile, small cap stocks. FTSE sought to explore this perception as interest in these ‘green’ products continued to accelerate. Through investment in R&D
efforts, in 2018 FTSE Russell published their report “Investing in the global green economy: Busting common myths” which demonstrates the huge opportunity that theGreen Economy offers investors in an effort to revert this risk into a significant opportunity for LSEG. Building on this development, and broader work by LSEG in ESG
benchmarking and ‘green’ products and services, in 2019 the Capital Markets business launched the Green Economy Mark, which allows the market to identify issuers thatgenerate greater than 50% of their revenues from green products and services. In addition, following the acquisition of Beyond Ratings in 2019, FTSE Russell and Beyond
Ratings launched a climate sovereign bond index series – Climate WGBI and EGBI.

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(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?
Relevance Please explain&
inclusion
Current
regulation

Relevant,
alwaysincludedi. Current regulation is relevant and included in our integrated risk assessment process because we are exposed to financial and reputational risk related to the impacts of regulation,
including climate-related legislation, that affect our listed companies. The regulatory requirements on listed companies may influence their decision to list. Regulatory risks have been
considered as of highest relevance and significance to our Capital Markets business function. ii. Such regulations include: Companies, Partnerships and Groups (Accounts and nonfinancial reporting) Regulations 2016 - transposition of the EU Directive 2014/95/EU on the disclosure of non-financial and diversity information (NFR Directive) and Companies Act 2006
(Strategic Report and Directors’ Report) Regulations 2013.

Emerging
regulation

Relevant,
alwaysincludedi. Emerging regulation is relevant and included in our integrated risk assessment process because we are exposed to financial and reputational risk related to the impacts of regulation,
including climate-related legislation, that affect our listed companies, and companies that may look to list on our markets. Regulatory risks have been considered as of highest relevanceand significance to our Capital Markets business function. Conversely, emerging regulation can deliver real business opportunities for LSEG, as we continue to grow our ‘green’ and‘sustainable’ products and services, such as the Green Economy Mark. ii. As part of our active engagement in international and domestic regulatory debate, we have understood for sometime that both the UK and the EU are looking to implement the TCFD recommendations in their regulatory frameworks. This can have impact on the disclosure obligations associated withclimate risks and opportunities for our listed companies and those that may look to list on our markets.

Technology Relevant,alwaysincludedi. Technology risk is relevant and always included in our integrated risk assessment processes because LSEG’s critical foundation is secure and stable high-performing technology for theoperation of the Group’s businesses. It is critical that our risk framework monitors physical climate risks which could adversely affect LSEG’s technological infrastructure and subsequently
business continuity. ii. Our Group Technology pillar aimed to ensure 99.99% uptime of the UK equity market during 2019. This requires efficient and reliable data centre infrastructure that is
protected from both chronic and acute physical risks. We continue to invest in our technology in order to maintain and enhance the quality, resilience and efficiency of our platforms.

Legal

Relevant, i. Legal risk is relevant and sometimes included in our integrated risk assessment processes because we estimate that litigation risks associated with climate-related issues for LSEG’s own
sometimes operations are limited. In relation to our ESG products and services, and expanding listing of green companies, we recognise the increased exposure to climate-related risks for someincluded
sectors, and therefore the risk of legal ramifications that may be associated if not now, then in the near future. ii. Such legal ramifications might include claims in relation to historicemissions, or greater transparency on climate-related reporting.

MarketRelevant, i. Market risk is relevant and sometimes included in our integrated risk assessment processes, as we exist as a diversified markets infrastructure business. LSEG operate in a broad range
sometimes of markets, servicing clients who increasingly seek global products and solutions. If the global economy under-performs, lower activity in our markets may lead to lower revenue. ii. Any
includedclimate-related event which impacts the global economy, will lower activity on LSEG’s own markets leading to lower revenue. A more tangible, current example is the market shift toproducts and services with greater climate focus. It is important for LSEG to demonstrate ambition and capability in ‘green’ bonds, ESG benchmarks and other ‘green’ services andproducts to maintain market advantage.

Reputation Relevant, i. Reputation risks are relevant and sometimes included in our integrated risk assessment processes. We are aware of the reputational risks for LSEG associated with public opinion
sometimes reactions towards the conduct and approach to climate risk disclosures and the environmental performance of our listed companies. Reputational risk has been considered of medium
included
relevance and significance for the group as a whole, affecting all business functions. ii. In particular, FTSE Russell’s position as a pioneer in ESG indices could be compromised if it wereseen to be supporting poor ESG performance.
AcutephysicalRelevant,
alwaysincludedi. Acute physical climate risks are relevant and included in our integrated risk assessment processes because these have the potential to adversely affect our infrastructure, employees andsubsequently interrupt client facing activities. Acute physical risks have been assessed as of highest relevant and significance to LSEG’s own operations. ii. An example of such risk is the
localised high risk of flooding in one of our locations in Sri Lanka, which as witnessed in 2019, has the potential to disrupt staff access to site and interrupt client facing activity. Our disastermanagement plans ensured this had limited impact on our client facing teams and business continuity.

Chronic
physicalRelevant,
alwaysincludedi. Chronic physical risks are relevant and included in our integrated risk assessment processes because these can increase costs of cooling our data centres and have the potential tocreate uncomfortable working conditions for our employees, which can in turn in reduce productivity and revenue. ii. Chronic physical risk management has been relevant and significant for
LSEG’s own operations over recent years, with concerns over the performance of data centre infrastructure under increasing global temperatures. The need for additional coolinginfrastructure and utilities costs has led to improvement projects to install cold aisle containment in our primary UK data centres, and cooling efficiency improvements.

C2.3(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business?
Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business.
Identifier
Risk 1
Where in the value chain does the risk driver occur?
Downstream
Risk type & Primary climate-related risk driver
Emerging regulation

Enhanced emissions-reporting obligations

Primary potential financial impact
Decreased revenues due to reduced demand for products and services
Climate risk type mapped to traditional financial services industry risk classification<Not Applicable>
Company-specific description
Increased regulatory focus on climate change for listed companies continues to demand enhanced disclosure requirements for our listed companies. These requirements, if
mandatory, will result in certain listed companies (especially smaller cap companies) to have increased operating costs (as opposed to privately held) to meet theseobligations. As a result there is a small risk of companies de-listing to avoid these additional regulatory demands. There is also a risk of missed Initial Public Offerings (IPO).
Time horizon
Medium-term
Likelihood
Very likely
Magnitude of impact
Medium-low
Are you able to provide a potential financial impact figure?
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Yes, an estimated range
Potential financial impact figure (currency)<Not Applicable>
Potential financial impact figure – minimum (currency)
20000000
Potential financial impact figure – maximum (currency)
40000000
Explanation of financial impact figure
The potential financial impact to LSEG of de-listing due to this risk is incredibly hard to calculate as is based on a large number of variables. The financial impact on listedcompanies, depends on their size, sector and the materiality of climate risk to that organisation. We do not expect that all c.2,500 of our listed companies will be affected dueto their existing reporting demands, which we often see as a result of their size. The risk is potentially more prevalent for our small market cap companies, who are less able
to manage these additional regulatory demand costs. The potential financial impact range is a rudimentary estimate, based on the aggregated additional costs that some of
our listings might face: ~£20,000 per company, costs for enhanced reporting requirements x 1,000 to 2,000 listed companies.
Cost of response to risk
60000
Description of response and explanation of cost calculation
LSEG has provided guidance to listed companies to facilitate reporting and keep reporting costs low to mitigate the impacts of this risk. LSEG actively engages withpotential policy creation in these areas i.e. UK Streamlined Energy and Carbon Reporting Regulations to enable early action and mitigate potential arising costs. LSEG is asignatory of the Paris Pledge for Climate Action, the CDSB Statement on fiduciary duty and climate change disclosure. In 2016, we engaged with the European
Commission and the UK and Italian governments regarding the Non-Financial Reporting Directive. In our consultation response, we acknowledge that so called ‘nonfinancial’ risks can turn into financial risks. We participated in workshops, organised bilateral meetings and joined the Commission High Level Expert Group on sustainablefinance. In June 2017, the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) released its reporting recommendations. LSEG signed
the TCFD statement of support, affirming its commitment. As the Group, and FTSE Russell in particular, intends to play a critical role in enabling the flow of information
envisioned by the TCFD, the recommendations were incorporated into FTSE Russell’s climate-related indicators and in the Group ESG Reporting Guidance. LSEG haverecently partnered with Mark Carney and The United Nations Sustainable Stock Exchanges (SSE) initiative to launch a workstream that will assist stock exchanges indeveloping best practice guidance for issuers to ensure consistent climate disclosures incorporating the TCFD recommendations. Management cost of £60,000 is
calculated according consultancy fees required for updating LSEG’s ESG disclosure guidance.
Comment
LSEG plans to invest in capacity building initiatives for its issuers to further mitigate these risks.
Identifier
Risk 2
Where in the value chain does the risk driver occur?
Downstream
Risk type & Primary climate-related risk driverMarketChanging customer behavior

Primary potential financial impact
Decreased revenues due to reduced demand for products and services
Climate risk type mapped to traditional financial services industry risk classification<Not Applicable>
Company-specific description
The transition to a low carbon economy will have an impact on the value of different listed companies and the value of industries, as well as driving the emergence andgrowth of new industries. The risk to LSEG is ensuring that our exchanges remain attractive locations for new listings.
Time horizon
Medium-term
Likelihood
Very likely
Magnitude of impact
Medium-low
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
1
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
The volatility associated with the shifting value placed on high- and low-carbon intensive sectors and listed companies, increases trading fees. So long as LSE and BI areable to remain competitive and so not lose out to other exchanges, this risk is likely to be neutral in financial impact. This assessment is based on the similar market
capitalization size of the ICB Oil and Gas sector vs. Green Economy according to FTSE Russell in December 2017 (FTSE Russell, Investing in the global green economy:
busting common myths, 2018).
Cost of response to risk
1

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Description of response and explanation of cost calculation
LSEG closely monitors the transition to a low carbon economy on its markets through the FTSE Russell Green Revenue data model and wider expertise of FTSE Russell in
the identification of climate risks and opportunities as part of their ESG assessment of global listed companies. The Group’s overall climate-related risk exposure isvalidated by the FTSE Russell assessment. Stakeholder engagement is a crucial part of the risk assessment process, especially as regulatory risks are concerned. LSEG
is involved in a number of working groups on the development of green finance regulations. FTSE Russell’s “Investing in the global green economy” published in May 2018is an example of LSEG’s research applied to climate change risks and opportunities, that attempts to address this negative, traditional view of the Green Economy, anddemonstrate the opportunities it holds. During 2019, LSEG built on the success of FTSE Russell’s Green Revenues Data Model, launching a world first classification andMark for equity issuers that generate more than 50% green revenues. The Green Economy Mark highlights the market leading approach LSEG is taking to supporting thegreen economy and raising its profile among investors. Monitoring the transition to a low-carbon economy is part of our commercial offering (FTSE Russell Green
Revenues Data Model) – therefore no additional management costs emerge for LSEG.
Comment
Identifier
Risk 3
Where in the value chain does the risk driver occur?
Direct operations
Risk type & Primary climate-related risk driver
Chronic physicalRising mean temperatures

Primary potential financial impact
Increased indirect (operating) costs
Climate risk type mapped to traditional financial services industry risk classification<Not Applicable>
Company-specific description
Data centres are critical to LSEG's business, with instant transactions, data and information core to operations. Increases in the average temperature will result in higher
cooling requirements and costs. Planning and analysis of future temperature impacts will enable stronger long-term design and investment, ensuring business continuity, as
well as the health, safety and well-being of staff and visitors at each of our locations. For our broader portfolio of facilities, including offices, other impacts could include
dissatisfied occupants of buildings that are not fit for purpose, e.g. building occupiers experiencing flooding, inadequate drainage, lack of heating control and cooling,
problems with air tightness, driving rain and winds. Existing buildings may not be well-adapted to the new climate, especially in hot summer conditions, leading to reduced
value of existing buildings if they are not future climate-proofed. However, due to the long-term nature of the risk (>6 years), there will be adequate time to adapt ouroperations to take advantage of emerging technologies and mitigate this risk.
Time horizon
Long-term
Likelihood
LikelyMagnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
1
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
Due to the long-term nature of changes in average temperatures, the financial impact of this risk to LSEG is estimated to be £1 per annum as all costs and changes would
be assumed within BAU practices. The cost is considered as Business as Usual as the increased cooling/heating costs, and infrastructure improvement costs aremonitored on a continual basis to ensure we are responding to and managing this risk in ‘real time’.
Cost of response to risk
160000Description of response and explanation of cost calculation
The LSEG Corporate Sustainability Committee and Environmental Management Group are responsible for ensuring the Group monitors the latest news, research andreports regarding the physical impacts of climate change, and for assessing the materiality for LSEG’s operations and ensuring all operations are meeting the businessneeds in an evolving environmental context. Where appropriate, this advice is adapted into our BAU Business Continuity Program. The Environmental Management Group
meets at least quarterly, with specialist external advice also sought where appropriate. Actions that are helping mitigate this risk include over £9m in energy efficiency andcarbon reduction initiatives in our data centres and offices - which are helping reduce water and energy consumption. During 2019, we purchased energy attributecertificates for all residual electricity consumption (33%), not already on a 100% renewable supplier tariff. We continued to implement and maintain cold-aisle containment
systems and legacy server replacements in our data centres. We also installed a number of new energy efficient air conditioning systems to our UK sites, our global
programme of lighting and IT efficiency upgrades continued and efficiency adjustments were made to our HVAC systems in some Sri Lankan sites. Cost of management isbased on the £160,000 estimated spend on cold aisle containment projects in our UK data centres to date. We plan on rolling out this project to our other data centres
globally.
Comment

C2.4
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(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business.
Identifier
Opp1
Where in the value chain does the opportunity occur?
Downstream
Opportunity type
Products and services
Primary climate-related opportunity driver
Development and/or expansion of low emission goods and services
Primary potential financial impact
Increased revenues resulting from increased demand for products and services
Company-specific description
The Global Commission on the Economy and Climate estimates that US$90 trillion of investment is needed by 2030 to avert more than 2 degrees of global warming. Thislarge capital deployment provides significant opportunities for companies involved and for investors to align their portfolios. If green investment accelerates to the ~$90
trillion suggested, the Green Economy could represent similar global market capitalization to Health Care by 2030 (FTSE Russell, 2018). Analysis of the FTSE Global
Equity Index Series (FTSE GEIS), shows that nearly 7.2% of the index value is derived from green revenues, compared to 8.3% from Emerging Markets. LSEG has
identified a number of product opportunities that integrate climate-related considerations - Green Bond listings, trading and clearing - Green Infrastructure funds - Greenequity listings and trading - Low-carbon and green revenue equity and fixed income indexes
Time horizon
Short-term
Likelihood
Virtually certain
Magnitude of impact
Medium-low
Are you able to provide a potential financial impact figure?
No, we do not have this figure
Potential financial impact figure (currency)<Not Applicable>
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
LSEG does not publicly report the financial performance of individual products or services, however the Group expects the suite of green products and services to continue
to grow its contribution to the Group’s revenues over the short to medium term.
Cost to realize opportunity
1
Strategy to realize opportunity and explanation of cost calculation
LSEG will increase R&D in the index business area, and promotional efforts in the capital markets business to realise these climate-related opportunities. For example, wehave produced FTSE Russell’s report “Investing in the global green economy” as an example of research applied to climate change risks and opportunities relevant to ourmarket. As part of our strategy to create a sustainable investment environment and be recognised as a global sustainability leader, during 2019 LSEG rolled out acomprehensive Sustainable Finance & Investment programme, which aimed to educate issuers on the implications that climate-related investment decisions have on theirmarket valuation and investor base. In the short term, the Group will keep developing market leading products and services like FTSE4Good, which has made a significant
impact on the behaviour of companies (i.e. requiring GHG emission and other climate change targets as part of the inclusion criteria). The Group will continue to provide
investors with tools for benchmarking and tracking ESG-driven funds as well as continuing to develop a range of Green Revenues services. One example of such tools
during 2019, was the launch of the ESG Disclosure score, which was provided to 470 large cap issuers to enable them to benchmark the disclosure of key ESG metrics
among issuers compared to the issuers' industry sector. There is no incremental cost (£1) to LSEG to manage these opportunities, as additional resources and costs areoffset by increasing revenues. Progress in 2019: 2019 saw a record breaking 79 ESG and sustainable ETFs listed on our markets, bringing the total to 187 with €2.7 billion
AUM on Borsa Italiana as of 31 December 2019 and value traded up 54% on London Stock Exchange year on year. Green funds listed in London raised £2.3 billion in
2019, representing over one third of all capital raised by listed funds in London. Further issuance by existing listed green funds raised over £1.5 billion in 2019, highlighting
the strength of investor demand for renewable energy and energy efficiency assets and underlining LSEG’s position as a leading international centre for promoting andraising green finance. In October 2019, London Stock Exchange launched the Green Economy Mark, recognising equity issuers on London Stock Exchange Main Market
and AIM with green revenues of 50% or more. At the end of 2019, across all our markets there are 77 listings that have been awarded the Green Economy Mark.
Comment
Identifier
Opp2
Where in the value chain does the opportunity occur?
Direct operations
Opportunity type
Resilience
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Primary climate-related opportunity driverParticipation in renewable energy programs and adoption of energy-efficiency measures
Primary potential financial impact
Reduced indirect (operating) costs
Company-specific description
It is significant for the Group that we ensure our operations and property estate are equipped to adapt to changes in climate and take advantage of the efficiency andsavings that can be achieved through targeting our GHG emissions. This includes issues such as energy efficiency and pricing, through to the efficiency and physicalsecurity of our property estate. LSEG has prioritised issues like renewable energy, energy efficiency as well as virtualisation and consolidation of our data centre
environments, which are building sustainability and strength into our business.
Time horizon
Medium-term
Likelihood
LikelyMagnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, a single figure estimate
Potential financial impact figure (currency)
372250Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
The Group spends over £7m on annual energy consumption - a cost we have the opportunity to reduce as we target energy reduction and invest in the future of ourproperty estate. These measures prepare our facilities and therefore our operations, so that they are better able to operate under changing climatic conditions. A potential
5% reduction in energy costs through adapting our operations in preparation for climate change extremes would mean an £372,250 reduction in operational expenses(£7.4m * 0.05=£372,250) - a small impact on total operational expenditure.
Cost to realize opportunity
9000000
Strategy to realize opportunity and explanation of cost calculation
The LSEG Corporate Sustainability Committee and Environmental Management Group are responsible for ensuring the Group monitors the latest news, research andreports regarding the physical impacts of climate change and for assessing the materiality for LSEG’s operations. The Committees meet at least Quarterly, with specialist
external advice also sought as appropriate. Since 2016, LSEG has invested over £9m in energy efficiency and carbon reduction initiatives. During 2019, we purchased
energy attribute certificates for all residual electricity consumption (33%), not already on a 100% renewable supplier tariff. As a Group, LSEG now use 100% renewableelectricity which has dramatically reduced our GHG emissions. We continued to implement and maintain cold-aisle containment systems and legacy server replacements inour data centres. We also installed a number of new energy efficient air conditioning systems to our UK sites, as well as a number of lighting and IT efficiency upgrades andadjustments to HVAC systems in Sri Lankan sites. In 2019, LSEG implemented 7 energy efficiency projects equivalent to annual emissions savings of 78 tCO2e. We haveset science-based targets to further reduce our absolute GHG Emissions - our aim is a 40% reduction by 2030 vs a 2016 baseline. LSEG reports progress against thesetargets and impacts of reduction initiatives. The cost to realise this opportunity is calculated based on the £9m invested in energy efficiency and carbon reduction initiatives
in our data centres and offices. There are also direct costs from engaging with policy decisions, specialist advice on regulations, compliance, and management tools togather data and measure progress against targets (less than 0.5% of total operational spend).
Comment
Identifier
Opp3
Where in the value chain does the opportunity occur?
Downstream
Opportunity type
Products and services
Primary climate-related opportunity driver
Shift in consumer preferences
Primary potential financial impact
Increased revenues resulting from increased demand for products and services
Company-specific description
The political, economic, physical and social environment in which we operate is undergoing much change and the need for efficient, transparent and well-regulated capital
markets has perhaps never been greater. This macro-economic background highlights the importance of the role played by LSEG. This role includes the Group’s
environmental, social and governance (ESG) responsibilities and how the organisation conducts itself as a ‘good’ corporate citizen. Sustainability is an integral part of theGroup’s strategy and there are both risks and opportunities arising as a direct result of our engagement in this area. There are reputational opportunities for LSEG to attract
and retain talent, as well as gain competitive advantage in the marketplace through integrating climate change factors into our business and risk management strategy. We
also understand that a number of our clients are increasingly becoming invested in climate change initiatives and seek to work with companies like LSEG, who have similargoals and perspectives regarding climate change and the environment.
Time horizon
Short-term
Likelihood
Very likely
Magnitude of impact

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Medium-low
Are you able to provide a potential financial impact figure?
No, we do not have this figure
Potential financial impact figure (currency)<Not Applicable>
Potential financial impact figure – minimum (currency)<Not Applicable>
Potential financial impact figure – maximum (currency)<Not Applicable>
Explanation of financial impact figure
LSEG does not publicly report the financial performance of individual products or services. FTSE Russell sees a need for all asset owners and asset managers and banks tounderstand the impact of a transition to a low carbon economy on their portfolios and risk models. In the Capital Markets businesses there are opportunities too - for at 31
December 2019, 41 new sustainable bonds were listed on the London Stock Exchange, raising a total of more than £11 billion. By enabling investors to measure and model
these markets, LSEG provides critical services. Demand for these services is expected to grow over time, with minor positive impact on revenue.
Cost to realize opportunity
1
Strategy to realize opportunity and explanation of cost calculation
LSEG's strategy to realise this opportunity includes engagement in our markets, and developing and communicating our own operational responses to climate change sothat clients and employees can clearly see the link between our market commitments in renewable energy, ESG management, and our business strategy. In October 2019,
LSEG launched the Sustainable Bond Market (SBM) building upon the success of London Stock Exchange’s Green Bond Segment, launched in 2015. This includes new
dedicated segments for social and sustainability bonds and incorporates the existing Green Bond Segment. These segments enable investors to distinguish between
different types of sustainable bonds, based on independently verified frameworks and use of proceeds. Following the launch of the SBM, London Stock Exchange
reclassified a number of securities under the new social bond tag or using the Issuer-Level Segment classification. As of the end of 2019, 41 new sustainable bonds werelisted on the London Stock Exchange, raising a total of more than £11 billion, and bringing the total number of green, social and sustainable bonds to 215, from 174 in 2018,using the new SBM classifications on 2018 data. On Borsa Italiana’s Green and Social Bond segment, 24 new green or sustainable bonds were listed in 2019, with a of
total 84 instruments on the segment at the end of the year. 2019 saw a record breaking 79 ESG and sustainable ETFs listed on our markets, bringing the total to 187 with
€2.7 billion AUM on Borsa Italiana as of 31 December 2019 and value traded up 54% on London Stock Exchange year on year. London Stock Exchange Group is acommitted supporter of green financing and we see the transition to a low carbon economy as a major industrial trend. In addition to attracting and profiling green bond andequity listings through FTSE Russell we support institutional investors in defining climate factors and integrating them into benchmarks and portfolio analytics. Primary costs
are BAU costs of achieving our carbon reduction targets i.e. less than 0.5% of operational spend on specialist advice, systems and management processes to enable aneffective response. There are also marketing and cost of sales for our climate change products and services – estimated at less than 5% of our marketing budget (we do notreport these individual budget lines).
Comment

C3. Business Strategy

C3.1(C3.1) Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning?
Yes

C3.1a
(C3.1a) Does your organization use climate-related scenario analysis to inform its strategy?
Yes, qualitative, but we plan to add quantitative in the next two years

C3.1b

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(C3.1b) Provide details of your organization’s use of climate-related scenario analysis.
ClimateDetails
relatedscenariosand models
applied
RCP 2.6
During 2019, LSEG commenced work with an external consultant to review and define the scenarios that can be used for future climate risk scenario analysis. i)The selected scenarios were
RCP 8.5
identified, following a period of internal stakeholder engagement to better understand the business and LSEG’s most material climate risks. This knowledge base helped to select four scenarios using
IEA
the following criteria: - One transition and one physical scenario consistent with limiting global warming to 2degC (consistent with Paris Agreement). - One transition and one physical scenario
Sustainable consistent with warming of 3-4degC (closer to Business As Usual). - Scenarios from intergovernmental organisations, rather than fossil fuel companies or NGOs, to avoid bias. - Scenarios cover shortdevelopment to long time horizons, with global coverage and some regional detail. The IEA Sustainable Development Scenario (SDS) assumes a carbon price will be introduced (up to $140 per TCO2e by 2040);
scenario
fossil fuel subsidies will be phased out by 2050 by net-importers, and by 2035 for net-exporters; and that there will be expanded support for deployment of Carbon Capture and Storage. Given the
IEA NPS
relevance of the regulatory response in this scenario which aligns with the objectives of the Paris Agreement, it is particularly relevant to the financial sector and LSEG markets. The IEA New Policies
Scenario (NPS) assumes a carbon price will be introduced (up to $48 / TCO2 by 2040); fossil fuel subsidies will be phased out in the next 10 years and despite an increase in renewable generation,
oil will remain the primary source of energy. RCP 2.6 is the only IPCC scenario in line with the Paris Agreement’s stated 2degC limit and 1.5degC aim (0.9-2.3degC warming potential). RCP 2.6
assumes global emissions peak by 2020 and decline to zero by 2080, with accompanying sea level rise of 0.4m by 2100 and high frequency and intensity of extreme weather events. RCP 8.5
assumes global emissions continues to rise through to 2100, mean sea level rise of 0.63m by 2100 and very high frequency and intensity of extreme weather events. ii) LSEG are planning on
applying a shorter time horizon for transitional risks and opportunities, than that used for physical risks. For transition risks time horizons are expected to be 2025 and 2035. For physical risks amedium and longer term horizon are to be considered of 2030 and 2050. The aim is to align these time horizons with LSEG's existing strategic planning 5 year cycle, and longer term strategicplanning for future capital markets in 10 and 20 years. iii) The entire LSEG group has been included in this initial phase of work for climate risk scenario analysis. However, the risks and opportunities
identified are more relevant and significant to some business areas than others. iv) This project in currently in progress, therefore we have no results to report at this time. The next phase of this work
will validate the identified climate-related risks and opportunities and develop a calculation model to simulate the key risks and opportunities under these four scenarios and quantify the impact ofthese risks and opportunities where feasible. v) LSEG 2020 strategic objectives include climate-related objectives. Furthermore, we are making early provisions for how we operationalise this
scenario analysis of climate related risks internally. We expect to be able to bolster our new office or data centre location assessment procedure with more accurate information about the physicalclimate-related risks of that geographic location. vi) This project is currently in progress. Through our current partnership with Mark Carney and the UN Sustainable Stock Exchange initiative, we havelaunched a campaign for globally consistent and best practice climate-related disclosures from listed companies. This project is a result of the climate-related risk and opportunities assessment
process conducted by LSEG during 2019.

C3.1d(C3.1d) Describe where and how climate-related risks and opportunities have influenced your strategy.
Have climate- Description of influence
related risks
andopportunities
influenced
your strategy
in this area?
Products
andservices

Yes

LSEG’s corporate purpose (to support financial stability and sustainable economic growth by enabling businesses and economies to fund innovation, manage risks and create jobs)
encapsulates not only commercial and performance objectives but also our environmental, social and governance (ESG) responsibilities, including climate-related risk and opportunities.
We actively consider the importance of climate-related risks and opportunities in the context of broader market trends and themes (such as ongoing regulatory change, changing
investor preferences or evolving customer operating dynamics), and how the Group can continue to adapt to meet these changing dynamics in order to maintain its position as a leading
Financial Markets Infrastructure (FMI) provider. i. Our medium to long-term strategy around products and services has been influenced by climate related risks and opportunities
because of the increasing awareness of, and focus on, ESG and climate change for investors. This brings a growing demand for relevant benchmarks, data and analytics to support
investment mandates and decision making. In addition, we have an important role and responsibility to support companies and issuers in the transition to a sustainable and low-carbon
economy. ii. Two of the most substantial strategic decisions made in this area to date (and during 2019) that have been influenced by climate-related risks and opportunities are as
follows: • In Information Services, we acquired Beyond Ratings, a highly regarded provider of ESG data for fixed income investors, and have since launched the Climate World
Government Bond Index (Climate WGBI), an innovative index which allows investors to incorporate climate risk considerations into their sovereign debt investment decision making
process. • In Capital Markets, we launched the Green Economy Mark, to allow the market to identify issuers that generate greater than 50% of their revenues from green products andservices, and the Sustainable Bond Market (SBM), a new dedicated segment for social and sustainability bonds.

Supplychain
and/or
value
chain

Yes

i. Our medium to long term supply chain strategy has been influenced by climate-related risks and opportunities although to date this has been a reasonably minor influence. As of 2014,
our Supplier Code of Conduct requires suppliers who sign up to support LSEG’s environmental KPIs and we will be looking to our supply chain to support our science-based target
ambition. As of 2019, 8% of our direct supplier have signed up our Code of Conduct, equivalent to 64% of total third party spend. ii. The most substantial strategic decision made in thisarea to date that have been influenced by climate-related risks and opportunities is the current discussion of moving more of our physical data centre locations to a cloud based solution.
This is not only a climate-related risk influenced issue, but events in 2019 demonstrated how critical our physical data centres are to our business continuity and their vulnerability insome geographic locations to physical climate-related risks. This not only reduces the acute physical risk associated with data centres, but also has the potential to reduce our Scope 1
and Scope 2 location based emissions. Conversely this would lead to an increase in our Scope 3 purchased goods and services emissions depending on the cloud hosting provider.

Investment Yes
in R&Di. Climate related risks and opportunities, notably Market, Reputational and Regulation risk and opportunity types have highly influenced our short to long term strategy for investment in
R&D. As a result of identifying the opportunity in changing customer behaviours (as described in C2.4a), our 2018 report, “Investing in the global green economy: busting common
myths”, and FTSE Russell Green Revenues data model, during 2019 we launched our “Guide to Green Finance”.We continue to develop guidance for listed companies on disclosure of
ESG information, based on the UN Sustainable Stock Exchanges initiative framework, and develop market leading products such as FTSE4Good, which has made a significant impact
on the behaviour of participating companies (i.e. requiring GHG emission and other climate change targets as part of the inclusion criteria). ii. The most substantial strategic decisioninfluenced by climate-related risk and opportunities has been the acquisition of Beyond Ratings in June 2019. Beyond Ratings are a highly regarded provider of ESG data for fixedincome, and are complementary to FTSE Russell’s existing ESG index and data offering, as well as the analytics tools provided through The Yield Book. This acquisition demonstrates
LSEG’s Information Services business response to the rapidly growing demand among asset owners to incorporate sustainability and ESG considerations.

Operations Yes

i. Climate related risks and opportunities, specifically chronic and acute physical, resource efficiency, technology and regulatory risks and opportunities have impacted on our Operations
strategy over the short to long term. The need to consider environmental impacts of the business, as well as the climate-related risks that may impact the business are now consideredmatters for the Board and are therefore integrated into our Business Strategy and Governance. The Environmental Management Group continues to report quarterly on progress against
the business’ environmental objectives, and employees have climate related incentives to encourage their engagement. As described in 2.3a, increases in operational costs are atangible risk for most employees to understand and see the benefit from physical mitigation actions. Long term changes in temperatures, and increased frequency of extreme weather
events, as well as increased environmental regulation will affect our facilities over time, but our framework for risk identification and pro-active management should mitigate the impactthat these have on our operations. Mitigation efforts include energy efficiency investments made at our data centres, and office and staff consolidation projects which reduce ourdemand for energy as well as our GHG emissions. During 2019, our property team enhanced our new office and data centre selection criteria with additional environmental andsustainability recommendations and mandatory requirements. ii. The most substantial strategic decision influenced by climate-related risks and opportunities has been the decision in2019 to use 100% renewable electricity for all direct operations of the group. During 2018 we achieved 66% of our electricity consumption generated by natural renewable sources
procured through our utility suppliers. We extended this to 100% during 2019 using energy attribute certification, for our remaining group operations.

C3.1e

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(C3.1e) Describe where and how climate-related risks and opportunities have influenced your financial planning.
Financialplanning
elements
that havebeen
influenced

Description of influence

Row Revenues
Climate-related risks and opportunities are considered in our financial planning around assets, revenues, capital expenditures and allocation, indirect costs and acquisitions and divestments (in1Indirectorder of relative impact). i. Asset financial planning is where physical climate-related risks are of most influence, due to the need to ensure our offices and data centres are energy efficient, andcosts
that there are continued programmes of work around improving energy efficiency that require investment. In the geographic location of new offices and data centres it is key that these buildings
Capitalmeet high environmental performance standards and are not at acute physical climate-related risk, to safe guard operations at the site throughout periods of increasingly unpredictable weather
expenditures (as a result of climate change). During 2019 we enhanced the office and data centre selection criteria and questionnaire for landlords to require higher environmental standards and data
Capitalprovision. For our existing offices and data centres, ongoing energy efficiency improvements are required to avoid climate-related regulatory and reputational pressures, as well as to ensure
allocation
indirect costs of utilities are minimised. ii. The time horizon covered by financial planning around assets can be short (1-3 years) to medium term (3-5 years). i. Climate related opportunities have
Acquisitions been most influential for our long term revenues planning, as these have allowed us to develop new products and services which support a transition to a green economy, notably FTSE
andRussell’s ESG Index Series, FTSE4Good and our Green Revenues data model, and during 2019 the launch of our Green Economy Mark. These are already generating revenues whichdivestments continue to grow. These growing revenue streams are projected as part of our financial planning process. ii. The time horizon covered by financial planning around revenues is medium (3-5
Assetsyears) to long term (5-10 years) i. Climate-related opportunities have also been influential in our financial planning on acquisitions. During 2019, LSEG acquired Beyond Ratings, a highly
regarded provider of ESG data for fixed income, who are complementary to FTSE Russell’s existing ESG index and data offering. This decision was based on the rapidly growing demand
among asset owners and asset managers to incorporate sustainability and ESG considerations into investment decisions. ii. The time horizon covered by financial planning around acquisitions
and divestments is medium (3-5 years) to long term (5-10years)

C3.1f(C3.1f) Provide any additional information on how climate-related risks and opportunities have influenced your strategy and financial planning (optional).

C4. Targets and performance

C4.1(C4.1) Did you have an emissions target that was active in the reporting year?
Both absolute and intensity targets

C4.1a

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(C4.1a) Provide details of your absolute emissions target(s) and progress made against those targets.
Target reference number
Abs 1Year target was set
2017Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 1+2 (market-based)
Base year
2016
Covered emissions in base year (metric tons CO2e)23259
Covered emissions in base year as % of total base year emissions in selected Scope(s) (or Scope 3 category)100
Target year
2030
Targeted reduction from base year (%)
40
Covered emissions in target year (metric tons CO2e) [auto-calculated]
13955.4
Covered emissions in reporting year (metric tons CO2e)1816% of target achieved [auto-calculated]
230.480674147642
Target status in reporting year
Achieved
Is this a science-based target?
Yes, we consider this a science-based target, but this target has not been approved as science-based by the Science-Based Targets initiative
Please explain (including target coverage)
This target was reported as ‘Abs 1’ in our 2019 response. We exceeded this long-term company-wide target in 2017 due primarily to a switch to 100% renewable electricity
for our owned and operated UK and Italian facilities, which includes a significant percentage of our data centre consumption. This target reflects an annual 2.86% emissions
reduction from our base year, with a medium-term time frame for the target of 14 years in accordance with CDP science-based target criteria. In 2019, LSEG reduced its
absolute Scope 1 + Scope 2 (market-based) emissions by 92% compared to 2016 base year (31% average annual reduction). We consider this to be a science-basedtarget as SBTi state the minimum reduction required is 2.5% in absolute annual linear terms in order to be in line with well-below 2degree scenarios. LSEG's target
exceeds this linear annual reduction requirement. This target has been reviewed by the Science Based Targets Initiative in 2017, however, is awaiting formal approval
status on completion of a Scope 3 target due for submission to SBTi in 2020. Though this target was exceeded in the previous reporting year, we maintain it as a mediumterm absolute reduction target which will become more challenging to achieve as the business grows.

C4.1b
(C4.1b) Provide details of your emissions intensity target(s) and progress made against those target(s).
Target reference number
Int 1Year target was set
2014
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 1+2 (market-based) +3 (upstream)
Intensity metric
Metric tons CO2e per unit revenue
Base year
2013
Intensity figure in base year (metric tons CO2e per unit of activity)
0.0000278% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
100
Target year
2020
Targeted reduction from base year (%)
20

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Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]
0.00002224% change anticipated in absolute Scope 1+2 emissions
91% change anticipated in absolute Scope 3 emissions
91
Intensity figure in reporting year (metric tons CO2e per unit of activity)
5e-7% of target achieved [auto-calculated]491.007194244604
Target status in reporting year
Achieved
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
This company-wide target was reported as ‘Int 1’ in our 2019 response and covers Group Emissions from Scope 1, 2 and 3 (including Air Travel, Rail Travel, Water andWaste). As a result of meeting this target, we anticipate our absolute Scope 1, 2, and 3 emissions to increase by 91% by 2020 compared to 2013. We exceeded this longterm target in 2017 due primarily to a switch to 100% renewable electricity for our owned and operated UK and Italian facilities, which includes a proportion of our data
centre consumption. In addition, we have made improvements in the energy efficiency of our offices and data centres since 2013. This target continued to be exceeded in
the reporting year, with an 84% reduction in tCO2e per £ Revenue in 2019 vs 2013 base year. We maintain this target in 2019, whilst we continue to develop our SBTiapproved science-based target. A new medium term, long term, and incremental annual rolling targets will be developed that complement our science-based target.
Target reference number
Int 2Year target was set
2014
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 1+2 (market-based) +3 (upstream)
Intensity metric
Metric tons CO2e per unit FTE employee
Base year
2013
Intensity figure in base year (metric tons CO2e per unit of activity)
9.04% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
100
Target year
2020
Targeted reduction from base year (%)
20
Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]
7.232% change anticipated in absolute Scope 1+2 emissions
42% change anticipated in absolute Scope 3 emissions
42
Intensity figure in reporting year (metric tons CO2e per unit of activity)
1.95% of target achieved [auto-calculated]
392.146017699115
Target status in reporting year
Achieved
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
This company-wide target was reported as ‘Int 2’ in our 2019 response and covers Group Emissions from Scope 1, 2, and 3 (including Air Travel, Rail Travel, Water, andWaste). As a result of meeting this target, we anticipate our absolute Scope 1, 2, and 3 emissions to increase by 42% by 2020. We exceeded this long-term target in 2017
due primarily to a switch to 100% renewable electricity for our owned and operated UK and Italian locations, together with other significant improvements in energy
efficiency since 2013. This target continued to be exceeded in the reporting year, with a 78% reduction in tCO2e per FTE in 2019 vs 2013 base year. We maintain thistarget in 2019, whilst we continue to develop our SBTi approved science-based target. A new medium term, long term, and incremental annual rolling targets will be
developed that complement our science-based target.
Target reference number

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Int 5
Year target was set
2018
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 1+2 (market-based) +3 (upstream)
Intensity metric
Metric tons CO2e per unit revenue
Base year
2018
Intensity figure in base year (metric tons CO2e per unit of activity)
0.0000083672% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
100
Target year
2019
Targeted reduction from base year (%)
5
Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]
0.00000794884% change anticipated in absolute Scope 1+2 emissions
3% change anticipated in absolute Scope 3 emissions
3
Intensity figure in reporting year (metric tons CO2e per unit of activity)
0.0000019532% of target achieved [auto-calculated]
1533.12936227173
Target status in reporting year
Achieved
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
This company-wide target covers Group Emissions from Scope 1, 2 and 3 (including Air Travel, Rail Travel, Water and Waste). As a result of meeting this target, we
anticipate a 3% increase in absolute S1, S2 + S3 emissions This is calculated based on the growth in revenue in 2019 compared to 2018 (8.4%). We exceeded this annual
target in 2019 primarily due to our move to 100% renewable electricity. This has been achieved through maintaining 100% renewable supplier tariffs for 66% of ourelectricity consumption and the procurement of energy attribute certificates for all other electricity consumption (purchased from an internationally recognised trader,
member of IETA and CDP gold partner). Energy conservation measures (such as office consolidation projects, LED lighting upgrades, and decommissioning of legacy
servers) have also contributed to this reduction. This target continued to be exceeded in the reporting year, with an 45% reduction in tCO2e per £ Revenue in 2019 vs 2018base year.
Target reference number
Int 6Year target was set
2018
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 1+2 (market-based) +3 (upstream)
Intensity metric
Metric tons CO2e per unit FTE employee
Base year
2018
Intensity figure in base year (metric tons CO2e per unit of activity)
3.362% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
100
Target year
2019
Targeted reduction from base year (%)
5
Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]
3.1939CDP

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% change anticipated in absolute Scope 1+2 emissions-3% change anticipated in absolute Scope 3 emissions-3
Intensity figure in reporting year (metric tons CO2e per unit of activity)
1.953% of target achieved [auto-calculated]
838.191552647234
Target status in reporting year
Achieved
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
This company-wide target covers Group Emissions from Scope 1, 2, and 3 (including Air Travel, Rail Travel, Water, and Waste). As a result of meeting this target, we
anticipate a 3% decrease in absolute S1, S2 + S3 emissions This is calculated based on a small increase in total FTE in 2019 compared to 2018 (2.2%). We exceeded thisannual target in 2019 primarily due to our move to 100% renewable electricity. This has been achieved through maintaining 100% renewable supplier tariffs for 66% of ourelectricity consumption and the procurement of energy attribute certificates for all other electricity consumption (purchased from an internationally recognised trader,
member of IETA, and CDP gold partner). Energy conservation measures (such as office consolidation projects, LED lighting upgrades, and decommissioning of legacy
servers) have also contributed to this reduction. This target continued to be exceeded in the reporting year, with a 42% reduction in tCO2e per FTE in 2019 vs 2018 baseyear.
Target reference number
Int 7Year target was set
2014
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 3: Business travel
Intensity metric
Metric tons CO2e per unit revenue
Base year
2013
Intensity figure in base year (metric tons CO2e per unit of activity)
0.00000485% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
99.44
Target year
2020
Targeted reduction from base year (%)
20
Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]
0.00000388% change anticipated in absolute Scope 1+2 emissions
0% change anticipated in absolute Scope 3 emissions
42
Intensity figure in reporting year (metric tons CO2e per unit of activity)
0.0000034581% of target achieved [auto-calculated]
143.494845360825
Target status in reporting year
Achieved
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
This company-wide target was set to complement Int 1, for a 20% reduction in tCO2e per £m revenue from air travel by 2020, compared to 2013. In 2013, air travel was
responsible for 99.44% of total Scope 3 Business travel emissions. As a result of meeting this target, we anticipate a 42% increase in absolute Scope 3 emissions. This iscalculated using the target reduction in air travel emissions and projected emissions from all other Scope 3 categories in proportion to projected increased revenue for thetarget year 2020. We exceeded this target in the reporting year (2019), achieving a 29% reduction in air travel emissions per £m revenue compared to 2013 (base year).
LSEG continues to review and extend the use and availability of video conferencing (VC) facilities, and to encourage the use of VC in place of air travel. Train travel is thepreferred option between a number of major European hubs. Although we are yet to set an approved S3 SBT, we include Business Travel as a material category in ourdevelopment of this initiative.
Target reference number
Int 8
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Year target was set
2018
Target coverage
Company-wide
Scope(s) (or Scope 3 category)
Scope 3: Business travel
Intensity metric
Metric tons CO2e per unit revenue
Base year
2018
Intensity figure in base year (metric tons CO2e per unit of activity)
0.0000039919% of total base year emissions in selected Scope(s) (or Scope 3 category) covered by this intensity figure
100
Target year
2019
Targeted reduction from base year (%)
2
Intensity figure in target year (metric tons CO2e per unit of activity) [auto-calculated]
0.000003912062% change anticipated in absolute Scope 1+2 emissions
0% change anticipated in absolute Scope 3 emissions
7
Intensity figure in reporting year (metric tons CO2e per unit of activity)
0.000003463% of target achieved [auto-calculated]
662.466494651669
Target status in reporting year
Achieved
Is this a science-based target?
No, but we are reporting another target that is science-based
Please explain (including target coverage)
This company-wide target was set to complement Int 5, for a 2% reduction in tCO2e per £m revenue from business travel in 2019, compared to 2018. As a result of
meeting this target, we anticipate a 7% increase in absolute Scope 3 emissions. This is calculated using the target reduction in air travel emissions, and actual emissions
from all other Scope 3 categories in 2019. We exceeded this target in the reporting year (2019), achieving a 13% reduction in air travel emissions per £m revenue
compared to 2018 (base year). This was in part due to political unrest in Sri Lanka and Hong Kong, which meant travel was suspended or on ‘essential travel only’ for twoof our key destinations for part of 2019. Rail travel emissions fell significantly in 2019, partly due to decreased carbon emission factors, but also as a result of 62% less UK
domestic rail travel (km). LSEG continues to extend the use and availability of video conferencing (VC) facilities and to encourage the use of VC in place of air travel.
Although we are yet to set an approved S3 SBT, we include Business Travel as a material category in our development of this initiative.

C4.2(C4.2) Did you have any other climate-related targets that were active in the reporting year?
Other climate-related target(s)C4.2b
(C4.2b) Provide details of any other climate-related targets, including methane reduction targets.
Target reference number
Oth 1
Year target was set
2014
Target coverage
Company-wide
Target type: absolute or intensity
Intensity
Target type: category & Metric (target numerator if reporting an intensity target)
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Target denominator (intensity targets only)
unit revenue
Base year
2013
Figure or percentage in base year
1.56
Target year
2020
Figure or percentage in target year
1.248
Figure or percentage in reporting year
0.36
% of target achieved [auto-calculated]
384.615384615385
Target status in reporting year
Achieved
Is this target part of an emissions target?
Int 1
Is this target part of an overarching initiative?
No, it's not part of an overarching initiative
Please explain (including target coverage)
LSEG set this company-wide target to complement Int1, for a 20% reduction target in waste (tonnes) per £m revenue by 2020, compared to 2013. Total waste produced
per £m revenue has reduced by 77% in 2019 compared to 2013 (base year). This is largely driven by improvements in the waste management process in the UK including
the introduction of a baler and new food waste processes – adding to an innovative food waste solution in Italy. Waste is increasingly better segregated across all regions,and as a result, the proportion of waste recycled rather than sent to energy from waste plants or landfill has increased. LSEG continues to achieve 99% landfill avoidance.
Target reference number
Oth 2
Year target was set
2018
Target coverage
Company-wide
Target type: absolute or intensity
Intensity
Target type: category & Metric (target numerator if reporting an intensity target)
Waste management

metric tons of waste generated

Target denominator (intensity targets only)
unit FTE employee
Base year
2018
Figure or percentage in base year
0.164
Target year
2019
Figure or percentage in target year
0.16072
Figure or percentage in reporting year
0.151
% of target achieved [auto-calculated]
396.341463414634
Target status in reporting year
Achieved
Is this target part of an emissions target?
Int 6
Is this target part of an overarching initiative?
No, it's not part of an overarching initiative
Please explain (including target coverage)
LSEG set this company-wide target to complement Int6, for a 2% reduction target in waste (tonnes) per FTE in 2019, compared to 2018. Total waste produced per FTE has
reduced by 8% in 2019 compared to 2018 (base year). Our waste management work in our London offices has been recognised with receiving Platinum Award status forthe last five years, and special recognition under the Cheapside Business Alliance Award at the London Clean City Awards in 2018. One of our offices in Sri Lanka
improved their waste management processes to deliver more accurate data on waste, and other locations have introduced new recycling streams to divert waste fromenergy-from-waste plants. A number of offices across Italy and Sri Lanka have adopted single-use plastic waste reduction initiatives which include replacing plastic cups

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with reusable bottles, installing bottle refill stations, and introducing reusable lunchboxes to save packaging waste in cafeterias. We continue to set printing targets (2019: 2% per FTE) and once again have surpassed this target in the year with a 28% reduction per FTE. Waste is increasingly better segregated across all regions, and as aresult, the proportion of waste recycled rather than sent to energy from waste plants or landfill has increased. LSEG continues to achieve 99% landfill avoidance.
Target reference number
Please selectYear target was set
Target coverage
Please selectTarget type: absolute or intensity
Please selectTarget type: category & Metric (target numerator if reporting an intensity target)
Please selectTarget denominator (intensity targets only)<Not Applicable>
Base year
Figure or percentage in base year
Target year
Figure or percentage in target year
Figure or percentage in reporting year
% of target achieved [auto-calculated]<Calculated field>
Target status in reporting year
Please selectIs this target part of an emissions target?
Is this target part of an overarching initiative?
Please selectPlease explain (including target coverage)

C4.3(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can include those in the planning and/or
implementation phases.
Yes

C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, the estimated CO2e savings.
Number of initiatives

Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)Under investigation

4

18.39

To be implemented*

5

77.38

Implementation commenced*

2

0.01

Implemented*

87258.44

Not to be implemented

0

0

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.
Initiative category & Initiative typeLow-carbon energy consumption

Low-carbon electricity mix

Estimated annual CO2e savings (metric tonnes CO2e)7180
Scope(s)Scope 2 (market-based)
Voluntary/Mandatory

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Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
0Investment required (unit currency – as specified in C0.4)
55000
Payback period
No payback
Estimated lifetime of the initiative<1 yearComment
During 2019, we made the strategic decision to move to 100% renewable electricity. As of 2018, 66% of our electricity is 100% renewable through renewable suppliertariffs. During 2019, we built on this through procurement of energy attribute certificates for all other electricity consumption where we had not been able to arrange a 100%
renewable supplier tariff. These energy attribute certificates (including EACs, RECs, iRECs, GOs) were purchased from an internationally recognised trader, member of
IETA, and CDP gold partner and all certificates were retired in the schemes relevant to the country of consumption. This initiative was the primary action by which we wereable to achieve a 41% reduction in our absolute carbon footprint and a 42% reduction in carbon emissions per Full Time Employee (FTE).
Initiative category & Initiative type
Energy efficiency in buildings

Heating, Ventilation and Air Conditioning (HVAC)

Estimated annual CO2e savings (metric tonnes CO2e)
62.31
Scope(s)Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
13000
Investment required (unit currency – as specified in C0.4)
0Payback period
No payback
Estimated lifetime of the initiative
Ongoing
Comment
During 2019, our Sri Lanka property team colleagues made some adjustments to the chiller set points (increasing setpoint to 7-8degC) and adjusted the switch-on
schedules to improve efficiencies of these systems at two sites. This simple and low-cost action is expected to have significant annual savings in electricity consumption,
and as a result emissions savings of 62,31 tCO2e (Scope 2 Location-based). This action has been calculated to save approximately £13,000 in annual monetary savings.
Initiative category & Initiative type
Energy efficiency in buildings

Lighting

Estimated annual CO2e savings (metric tonnes CO2e)
10.76
Scope(s)Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
974
Investment required (unit currency – as specified in C0.4)
6000
Payback period
4-10 years
Estimated lifetime of the initiative
6-10 years
Comment
During 2019, our UK property team continued its rolling LED upgrade programme with further LED replacement lighting installed at our London HQ. This action will havesome impact on reducing emissions (10.76 tCO2e) and will return on its investment (approximately £6,000) within the lifetime of the initiative, due to £974 annual monetarysavings from electricity bills.
Initiative category & Initiative type
Waste reduction and material circularity

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Estimated annual CO2e savings (metric tonnes CO2e)
2.95
Scope(s)Scope 2 (location-based)
Scope 3
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
3300
Investment required (unit currency – as specified in C0.4)
5800
Payback period
1-3 years
Estimated lifetime of the initiative
3-5 years
Comment
During 2019, our Italian offices provided reusable water bottles to all employees which during the later part of 2019 saved 6,250 plastic cups and 6000 plastic bottles fromthe on-site cafeteria. These disposable cups and plastic bottles would have added to the plastic recyclable waste from these locations had it not been for the introduction ofthese reusable water bottles. Some assumptions have been used to calculate the annual monetary savings (avoiding the purchase of disposable cups and bottled water) of
3p per cup and 50p per water bottle.
Initiative category & Initiative type
Energy efficiency in buildings

Lighting

Estimated annual CO2e savings (metric tonnes CO2e)
1.62
Scope(s)Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
550
Investment required (unit currency – as specified in C0.4)
3600
Payback period
4-10 years
Estimated lifetime of the initiative
6-10 years
Comment
During 2019, our Italian property team continued its rolling LED upgrade programme with further LED replacement lighting installed at our office in Milan. This action will
have some impact on reducing emissions (1.62 tCO2e) and will return on its investment (approximately £3,600) within the lifetime of the initiative, due to £550 annual
monetary savings from electricity bills.
Initiative category & Initiative type
Energy efficiency in buildings

Lighting

Estimated annual CO2e savings (metric tonnes CO2e)
0.5
Scope(s)Scope 2 (location-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
69
Investment required (unit currency – as specified in C0.4)
1000
Payback period
11-15 years
Estimated lifetime of the initiative
6-10 years
Comment
During 2019, our UK property team continued its rolling LED upgrade programme with further LED replacement lighting installed at our primary UK data centre. This action
will have a small impact on reducing emissions (0.5 tCO2e) and will return on its small investment (approximately £1000) within 14 years, due to £69 annual monetary
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savings from electricity bills.
Initiative category & Initiative typeCompany policy or behavioral change

Waste management

Estimated annual CO2e savings (metric tonnes CO2e)
0.25
Scope(s)Scope 3
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
0Investment required (unit currency – as specified in C0.4)
0Payback period
Please selectEstimated lifetime of the initiative
Ongoing
Comment
In October 2019, LSEG ran a global Green Week. This involved a series of events and initiatives aimed at promoting awareness of green and sustainability-related issues toour staff around the world as well as a number of sustainable linked charitable initiatives. This culminated in an externally focused event launching our Green Economy
Mark and Sustainable Bond Market as well as our Sustainable Finance and Investment Summit. One of the key initiatives during this week was for colleagues to be
educated and improve their own contribution to waste management at LSEG. At our London HQ, Champions led a waste recycling behaviour change campaign and it has
been possible to measure a reduction in waste (and resulting 0.25 tCO2e reduction) at the site.
Initiative category & Initiative typeCompany policy or behavioral change

Waste management

Estimated annual CO2e savings (metric tonnes CO2e)
0.05
Scope(s)Scope 3
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
0Investment required (unit currency – as specified in C0.4)
0Payback period
No payback
Estimated lifetime of the initiative
Ongoing
Comment
During the first half of 2019, our Property team were able to provide recycling collections for more waste streams from our primary UK data centre. This has had a minor
contribution to our 2019 emissions, saving 0.05 tCO2e per annum.

C4.3c(C4.3c) What methods do you use to drive investment in emissions reduction activities?
MethodComment

Compliance with
Until 2019, LSEG used the UK CRC Energy Efficiency Scheme (where companies are financially penalised for their energy consumption) as a key lever to drive investment in energy
regulatory
efficiency and GHG reduction measures. This scheme closed in July 2019. LSEG are driving investment in further energy efficiency and GHG emissions reduction initiatives through internalrequirements/standards stakeholder engagement, which is facilitated by our Property team and Environmental Management Group. Reporting on progress towards our external targets at the Corporate
Sustainability Committee on a regular basis supports this process. Our compliance with ESOS supports our investment decisions by providing a suggested, costed priority list for energy
efficiency measures and we use this to build the business case for such activities. Our proactive engagement with mandatory and voluntary emissions reporting schemes ensures that ourprogress in emissions reductions initiatives and our resulting progress on targets are visible publicly.
Employee engagement The small decisions we each make help us become more aware of our strategic role in building a sustainable economy and business, through investment and engagement. Because ofthis, we believe that the investment with the highest return for the environment is behaviour change. In 2019, we held Green Week which allowed our employees to learn practical ways inwhich they can help to reduce our impact as a business. We continued to engage staff through sustainability communications, including regular reporting of performance against targets on
our intranet.
Financial optimization
calculations

CDP

LSEG employs the services of energy efficiency specialists where appropriate to quantify, analyse, and prioritise financial investment in building fabric, services, and process efficiencies,
including as part of the ESOS process. These projects will simultaneously reduce LSEG's GHG emissions and energy costs.

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C4.5(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party to avoid GHG emissions?
No

C5. Emissions methodology

C5.1(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).
Scope 1
Base year start
January 1 2016
Base year end
December 31 2016
Base year emissions (metric tons CO2e)
1583
Comment
Scope 2 (location-based)
Base year start
January 1 2016
Base year end
December 31 2016
Base year emissions (metric tons CO2e)
23010
Comment
2016 figures have been updated to correct a minor error in last year's submission (23,120).
Scope 2 (market-based)
Base year start
January 1 2016
Base year end
December 31 2016
Base year emissions (metric tons CO2e)
21676
Comment

C5.2(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate emissions.
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
The Greenhouse Gas Protocol: Scope 2 Guidance

C6. Emissions data

C6.1

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(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
1816
Start date
January 1 2019
End date
December 31 2019
Comment
Past year 1
Gross global Scope 1 emissions (metric tons CO2e)1414
Start date
January 1 2018
End date
December 31 2018
Comment
Past year 2
Gross global Scope 1 emissions (metric tons CO2e)
1919
Start date
January 1 2017
End date
December 31 2017
Comment

C6.2(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1​Scope 2, location-based​
We are reporting a Scope 2, location-based figure
Scope 2, market-based
We are reporting a Scope 2, market-based figure
Comment

C6.3

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(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?
Reporting year
Scope 2, location-based
18052
Scope 2, market-based (if applicable)
0Start date
January 1 2019
End date
December 31 2019
Comment
Past year 1
Scope 2, location-based
19169
Scope 2, market-based (if applicable)
7132
Start date
January 1 2018
End date
December 31 2018
Comment
Past year 2
Scope 2, location-based
21850
Scope 2, market-based (if applicable)
11694
Start date
January 1 2017
End date
December 31 2017
Comment

C6.4(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting
boundary which are not included in your disclosure?
No

C6.5(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, calculated
Metric tonnes CO2e
125193Emissions calculation methodology
This figure has been calculated for 2019 following a review and recalculation of our complete Scope 3 emissions inventory, in preparation for the development of our Scope
3 science-based target. This figure has been calculated using an input-output analysis of our procurement spend data for 2019, attributing a Defra Input/Output emissions
factor to spend for all relevant spend categories.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
As a result of this analysis, we have confirmed that 84% of our Scope 3 inventory is attributed to Purchased goods and services, and as such Purchased goods andservices is a relevant Scope 3 category for LSEG. 0% of data used to calculate this value has been obtained from suppliers or value chain partners for 2019, only LSEG
procurement spend data has been used at this time. The results of our Scope 3 science-based targets development will inform if and how we measure and report on thisScope 3 category in future years. This information is not included in our emissions reporting as part of our Annual Report or Sustainability report for 2019 (reporting year)
and as such, is not third-party verified.

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Capital goods
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
As a result of a review and recalculation of LSEG's complete Scope 3 emissions inventory, in preparation for the development of our Scope 3 science-based target, it has
been confirmed that LSEG does not have any capital goods expenditure, and therefore there are no associated Capital Goods emissions. This information is not included inour emissions reporting as part of our Annual Report or Sustainability report for 2019 (reporting year) and as such, is not third-party verified.
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated
Metric tonnes CO2e
436
Emissions calculation methodology
Data is calculated using primary data from building metering and is cross-checked against supplier invoices and externally verified. Extrapolation based on FTE headcounthas been used where limited data is available due to landlord data restrictions in serviced office space. 6.13% of emissions (location-based) associated with Purchased
Electricity are extrapolated. T&D losses from electricity are calculated using 2019 or the latest available conversion factors and associated GWP from each of the following
sources: United Kingdom: DEFRA UK Government GHG 2019 Conversion Factors; Global (non-extrapolated): GHG Protocol: http://www.ghgprotocol.org/calculationtools/all-tools; Extrapolated: DEFRA UK Government GHG 2019 Conversion Factors.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
93.87
Please explain
Emissions calculated are for Transmission and distribution (T&D) losses (generation of electricity) only. 6.13% of emissions (location-based) associated with Purchased
Electricity are extrapolated, therefore 93.87% of FERA emissions have been obtained from supplier data.
Upstream transportation and distribution
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
As an office based financial services firm, our operations do not currently include any upstream transportation or distribution other than that which would be directly included
in our purchased goods and services or capital goods and services.
Waste generated in operations
Evaluation status
Relevant, calculated
Metric tonnes CO2e
302
Emissions calculation methodology
Emissions from waste are calculated based on total waste (kg) including waste to energy, waste to landfill and waste recycled (including glass, paper, cardboard, plastics,
food and drink, and mixed recycling). Emissions are calculated from primary supplier data in the UK, Italy, Romania and Sri Lanka and extrapolation based on FTE has
been used where primary data is not available across the rest of the world. Emissions from waste are 2.55% extrapolated. Emissions from waste generated in operations
are calculated using 2019 or the latest available conversion factors and associated GWP from each of the following sources: United Kingdom: DEFRA UK Government
GHG 2019 Conversion Factors; Global (non-extrapolated): DEFRA UK GHG 2019 Government Conversion Factors (as no GHG protocol factor for waste); Extrapolated:
DEFRA UK Government 2019 GHG Conversion Factors.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
97.45
Please explain
We currently measure and monitor all of our global waste streams and thus are able to calculate the emissions directly arising from this aspect of our operations in the UK,
Italy, Romania and Sri Lanka. We are constantly working with suppliers to increase the availability of primary data rather than using extrapolation.

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Business travel
Evaluation status
Relevant, calculated
Metric tonnes CO2e
8013
Emissions calculation methodology
Emissions are 100% calculated based on air travel and rail travel miles supplied and confirmed by our travel booking partner. Air Travel emissions are calculated using
mileage from our travel bookings provider, except our Asia partner bookings which are based on Origin / Destination airport codes and Via Michelen mileage data. Rail
travel is calculated using origin and destination city pairs, and Via Michelen mileage data. Emissions are calculated based on Distance i.e. International, Long Haul, Short
Haul, Domestic and class i.e. Economy, Premium Economy, Business Class, First Class. Rail travel uses International and National Rail factors. All factors are from 2019
DEFRA UK Government GHG Conversion Factors.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
100
Please explain
Air travel forms the most significant portion of our GHG inventory. Emissions are 100% calculated based on air travel and rail travel miles supplied and confirmed by ourtravel booking partner.
Employee commuting
Evaluation status
Relevant, calculated
Metric tonnes CO2e3489
Emissions calculation methodology
This figure has been calculated for 2019 following a review and recalculation of our complete Scope 3 emissions inventory, in preparation for the development of our Scope
3 science-based target. This figure has been calculated using national commuting surveys for the United Kingdom and the United States of America. As approximately 50%
of our employees work in either of these countries, this data was used to calculate an average commuting emissions impact per employee (0.629 tCO2e per annum), which
was then applied to our office-based employees outside of these two countries. Employee commuting accounts for 2% of LSEG's total Scope 3 emissions
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
0% of the emissions calculated for employee commuting is from suppliers or value chain partners due to the lack of availability of this data globally. The results of our Scope
3 science-based targets development will inform if and how we measure and report on this Scope 3 category in future years. This information is not included in ouremissions reporting as part of our Annual Report or Sustainability report for 2019 (reporting year) and as such, is not third-party verified.
Upstream leased assets
Evaluation status
Relevant, calculated
Metric tonnes CO2e80
Emissions calculation methodology
This figure has been calculated for 2019 following a review and recalculation of our complete Scope 3 emissions inventory, in preparation for the development of our Scope
3 science-based target. The only upstream leased assets used by LSEG are storage facilities. This figure has been calculated based on the floor area used for storage by
LSEG, and a CIBSE storage/warehouse facility benchmark for electricity and gas consumption for 2019. Emissions factors have then been applied to estimate the total
tCO2e impact of this Scope 3 category for LSEG. Upstream leased assets account for less than 1% of LSEG's total Scope 3 emissions.
Percentage of emissions calculated using data obtained from suppliers or value chain partners
0Please explain
0% of the emissions calculated for upstream leased assets are from suppliers or value chain partners as this is an immaterial Scope 3 category for LSEG. The results of our
Scope 3 science-based targets development will inform if and how we measure and report on this Scope 3 category in future years. This information is not included in ouremissions reporting as part of our Annual Report or Sustainability report for 2019 (reporting year) and as such, is not third-party verified.
Downstream transportation and distribution
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
As an office-based financial services firm, our operations do not currently include any downstream transportation or distribution.

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Processing of sold products
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
As an office-based financial services firm, our operations do not currently include any sold physical products.
Use of sold products
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
As an office-based financial services firm, our operations do not currently include any sold physical products. All emissions from our services are calculated and included
within our Scope 1 and 2 reported emissions.
End of life treatment of sold products
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
As an office-based financial services firm, our operations do not currently include the sale of physical products.
Downstream leased assets
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
All downstream leased assets are currently under our operational control. We use the operational control method for our reporting scope, and all tenant emissions as thelessor of office space have been included in our Scope 1 and 2 reported emissions.
Franchises
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
We do not currently have any franchise operations.

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Investments
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
LSEG does not make any investments.
Other (upstream)
Evaluation status
Relevant, calculated
Metric tonnes CO2e
33.7
Emissions calculation methodology
Water withdrawal emissions are calculated using primary data from building metering in UK, Italy, Romania and Sri Lanka and is cross-checked against supplier invoices
and externally verified. Extrapolation based on FTE headcount has been used where limited data is available due to landlord data restrictions in serviced office spaces for
the Rest of the World. Emissions from water are calculated based on municipal water consumption in tCO2e per litre. 9.03% of emissions associated with water are
extrapolated. Emissions from water consumption are calculated using 2019 or the latest available conversion factors and associated GWP from each of the following
sources: United Kingdom and Extrapolated: DEFRA UK Government GHG 2019 Conversion Factors; Global (non-extrapolated): DEFRA UK GHG 2019 Government
Conversion Factors (as no GHG protocol factor for water).
Percentage of emissions calculated using data obtained from suppliers or value chain partners
90.97
Please explain
We currently measure and monitor all of our global water consumption using primary supplier data wherever available and thus are able to calculate the emissions directly
arising from this aspect of our operations in the UK, Italy, Romania and Sri Lanka. We are constantly working with suppliers to increase the availability of primary data rather
than using extrapolation.
Other (downstream)
Evaluation status
Not relevant, explanation provided
Metric tonnes CO2e
<Not Applicable>
Emissions calculation methodology<Not Applicable>
Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>
Please explain
LSEG does not have any Other (downstream) emission sources relevant to their business operations.

C6.7(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to your organization?
No

C6.10

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(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.
Intensity figure7.848e-7
Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e)
1816
Metric denominator
unit total revenue
Metric denominator: Unit total
2314000000
Scope 2 figure used
Market-based% change from previous year
80.5
Direction of change
Decreased
Reason for change
Revenue increased by 8.4% during the reporting period compared to 2018, while gross Scope 1 & 2 market-based emissions decreased by 78.8%. As a result, emissions
per unit total revenue have decreased by 80.50%. This reduction was primarily due to our move to 100% renewable electricity. This has been achieved through maintaining
100% renewable supplier tariffs for 66% of our electricity consumption and the procurement of energy attribute certificates for all other electricity consumption (purchasedfrom an internationally recognised trader, member of IETA, and CDP gold partner). Energy conservation measures (such as office consolidation projects, LED lighting
upgrades, and chiller setpoint and schedule adjustments) have continued in all regions to reduce energy consumption.
Intensity figure
0.33
Metric numerator (Gross global combined Scope 1 and 2 emissions, metric tons CO2e)
1816
Metric denominator
full time equivalent (FTE) employee
Metric denominator: Unit total
5429
Scope 2 figure used
Market-based% change from previous year
79.5
Direction of change
Decreased
Reason for change
Full-time equivalent employee headcount increased by 2% during the reporting period, while gross Scope 1 & 2 emissions decreased by 78.8%. As a result Scope 1 and 2
emissions per FTE have decreased by 79.50%. This reduction was primarily due to our move to 100% renewable electricity. This has been achieved through maintaining
100% renewable supplier tariffs for 66% of our electricity consumption and the procurement of energy attribute certificates for all other electricity consumption (purchasedfrom an internationally recognised trader, member of IETA, and CDP gold partner). Energy conservation measures (such as office consolidation projects, LED lighting
upgrades, and chiller setpoint and schedule adjustments) have continued in all regions to reduce energy consumption.

C7. Emissions breakdowns

C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?
Yes

C7.1a

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(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of each used greenhouse warming potential(GWP).
Greenhouse Scope 1 emissions
gas(metric tons of CO2e)

GWP ReferenceCO2

550.23IPCC Fourth Assessment Report (AR4 - 100 year)
The Scope 1 greenhouse gas type breakdown is divided into each GWP reference, as Defra emissions factors are determined by IPCC Fourth Assessment Report (AR4)and all other Scope 1 emissions factors used by LSEG are determined by IPCC Fifth Assessment Report (AR5).

CH4

0.428

IPCC Fourth Assessment Report (AR4 - 100 year)
The Scope 1 greenhouse gas type breakdown is divided into each GWP reference, as Defra emissions factors are determined by IPCC Fourth Assessment Report (AR4)and all other Scope 1 emissions factors used by LSEG are determined by IPCC Fifth Assessment Report (AR5).

N2O

1.269

IPCC Fourth Assessment Report (AR4 - 100 year)
The Scope 1 greenhouse gas type breakdown is divided into each GWP reference, as Defra emissions factors are determined by IPCC Fourth Assessment Report (AR4)and all other Scope 1 emissions factors used by LSEG are determined by IPCC Fifth Assessment Report (AR5).

CO21260.041

IPCC Fifth Assessment Report (AR5 – 100 year)
The Scope 1 greenhouse gas type breakdown is divided into each GWP reference, as Defra emissions factors are determined by IPCC Fourth Assessment Report (AR4)and all other Scope 1 emissions factors used by LSEG are determined by IPCC Fifth Assessment Report (AR5).

CH4

3.348

IPCC Fifth Assessment Report (AR5 – 100 year)
The Scope 1 greenhouse gas type breakdown is divided into each GWP reference, as Defra emissions factors are determined by IPCC Fourth Assessment Report (AR4)and all other Scope 1 emissions factors used by LSEG are determined by IPCC Fifth Assessment Report (AR5).

N2O

0.97

IPCC Fifth Assessment Report (AR5 – 100 year)
The Scope 1 greenhouse gas type breakdown is divided into each GWP reference, as Defra emissions factors are determined by IPCC Fourth Assessment Report (AR4)and all other Scope 1 emissions factors used by LSEG are determined by IPCC Fifth Assessment Report (AR5).

C7.2(C7.2) Break down your total gross global Scope 1 emissions by country/region.
Country/Region

Scope 1 emissions (metric tons CO2e)

United Kingdom of Great Britain and Northern Ireland

512.83Italy

973.46

Sri Lanka

258.77

United States of America

0France0

Romania

32.12

Other, please specify (Rest of World)

39.14

China, Hong Kong Special Administrative Region

0

C7.3(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.
By activity

C7.3c(C7.3c) Break down your total gross global Scope 1 emissions by business activity.
Activity

Scope 1 emissions (metric tons CO2e)Natural Gas

1282.73

Diesel319.42LPG

29.14

Road Fuel

36.28

Fugitive Emissions

148.75

C7.5

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(C7.5) Break down your total gross global Scope 2 emissions by country/region.
Country/Region

Scope 2, location-based(metric tons CO2e)

Scope 2, market-based(metric tons CO2e)

Purchased and consumed electricity,heat, steam or cooling (MWh)Purchased and consumed low-carbon electricity, heat, steam or coolingaccounted for in Scope 2 market-based approach (MWh)United Kingdom of GreatBritain and Northern Ireland

11151.28048863.08

48863.08

Italy

3199.4504561.84561.8

Sri Lanka

2299.6703640.093640.09

United States of America

57.14

0

271.41271.41

France103.4301490.461490.46

Romania118.120343.53343.53China, Hong Kong Special
Administrative Region

85.3

0

117.01117.0104050.274050.27

Other, please specify (Rest of 1035.3
world)

C7.6(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.
By activity

C7.6c(C7.6c) Break down your total gross global Scope 2 emissions by business activity.
Activity

Scope 2, location-based (metric tons CO2e)

Scope 2, market-based (metric tons CO2e)

Data Centre Purchased Electricity

10255.58

0Office Space Purchased Electricity

7185.73

0Tenants Purchased Electricity

608.380

C7.9(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of the previous reporting year?
Decreased

C7.9a

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(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined), and for each of them specify how your emissions compare
to the previous year.
Change in Direction Emissions
Please explain calculation
emissions of change value(metric(percentage)
tons
CO2e)
Change in7180
renewableenergyconsumption

Decreased 84.03

84.03% of the change in emissions in 2019 compared to the previous year, is attributed to the strategic decision to purchase Energy Attribute Certificates (EACs, RECs, GOs, iRECs) for all electricity consumption not already covered by a 100% renewable supplier tariff for LSEG. 66% of our electricity consumption
had been covered by 100% renewable supplier tariffs as of 2018. 7180 tCO2e is the total Scope 2 (market-based) carbon emissions avoided due to thepurchase of EACs, after all other emissions reductions activities had been actioned. In 2018 gross global Scope 1 and 2 market based emissions totalled
8,545 tCO2e. The calculation for emission value % is therefore (-7180/8545)*100=-84.03%. A 84.03% reduction in Scope 1 and 2 emissions

Otheremissions
reduction
activities

23.6

Decreased 0.28

Emissions reductions activities in 2019 included adjustments to the chiller setpoint temperatures and switch-on schedules in Sri Lanka; LED or energy-efficient
lighting upgrades in offices and data centres Italy and the UK; provision of reusable water bottles to employees in Italy, which led to a reduction in plastic waste
generation and subsequent emissions and further behaviour change campaigns. Further details of these initiatives can be found in C4.3b. The Scope 1 andScope 2 emission savings of these initiatives have been estimated for their impact during 2019 and total of 23.6 tCO2e. In 2018 gross global Scope 1 and 2
market based emissions totalled 8,545 tCO2e. The calculation for emission value % is therefore (-23.6/8545)*100=-0.28%. A 0.28% reduction in Scope 1 and2 emissions

Divestment0

No change 0

There have been no material divestments during the reporting period.

Acquisitions 0

No change 0

There have been no material acquisitions during the reporting period.

Mergers0

No change 0

There have been no material mergers during the reporting period.

Change in
output0

No change 0

There have been no material changes in output during the reporting period.

Change in0methodology

No change 0

There have been no changes to methodology during the report period, other than annual updates to emission conversion factors according to Defra 2019 and
GHG Protocol guidance.

Change inboundary0

No change 0

There have been no boundary changes during the reporting period.

Change inphysicaloperatingconditions

0

No change 0

There have been no material changes in physical operating conditions during the reporting period.

Unidentified 0

No change 0

There were no Scope 1 and Scope 2 emissions variations that have not been identified and attributed to a possible cause.

Other

Increased 5.55

There are a number of factors that caused increases in Scope 1 and Scope 2 emissions during 2019. 1) Scope 1 emissions increase of 170 tCO2e due toincreased generator use (increased diesel consumption), as a result of minor electricity supply failures, faults in equipment, and related functional testing of thegenerators. The frequency of functional testing was periodically increased but returned to the normal schedule by the end of 2019. 2) Scope 1 emissions
increase of 150 tCO2e due to increased natural gas consumption as a result of the increased full-time employee headcount in 2019 compared to 2018. 3)
Scope 1 emissions increase of 105.5 tCO2e due to increased reporting of fugitive emissions, particularly at our London HQ. This increase is due to theinstallation of 23 new fridges/freezers and 9 new air conditioning systems and the required top-ups for this equipment. There have also been improvements indata capture for this emission source made over 2019. 4) Scope 2 (market-based) emissions increase of 49 tCO2e is attributed to increased electricity
consumption due to increased operating capacity at our data centres and increased full-time employee headcount compared to 2018. Total Scope 1 andScope 2 emissions change : (170+150+105.5+49)=474.50 In 2018 gross global Scope 1 and 2 market-based emissions totalled 8,545 tCO2e. The calculation
fo emission value % is, therefore (+474.50/8545)*100=5.5%. A 5.55% increase in Scope 1 and 2 emissions.

474.5

C7.9b
(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figure or a market-based Scope 2
emissions figure?
Market-based

C8. Energy

C8.1(C8.1) What percentage of your total operational spend in the reporting year was on energy?
More than 0% but less than or equal to 5%

C8.2(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertook this energy-related activity in the reporting year
Consumption of fuel (excluding feedstocks)

Yes

Consumption of purchased or acquired electricity

Yes

Consumption of purchased or acquired heat

No

Consumption of purchased or acquired steamNo

Consumption of purchased or acquired cooling

No

Generation of electricity, heat, steam, or cooling

Yes

C8.2a
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(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.
Heating value

MWh from renewable sources MWh from non-renewable sources

Total (renewable and non-renewable) MWh

Consumption of fuel (excluding feedstock)

HHV (higher heating value) 0

8040.32

8040.34

Consumption of purchased or acquired electricity<Not Applicable>

63337.64063337.64

Consumption of purchased or acquired heat

<Not Applicable><Not Applicable><Not Applicable><Not Applicable>

Consumption of purchased or acquired steam<Not Applicable><Not Applicable><Not Applicable><Not Applicable>

Consumption of purchased or acquired cooling<Not Applicable><Not Applicable><Not Applicable><Not Applicable>

Consumption of self-generated non-fuel renewable energy<Not Applicable>

0<Not Applicable>0

Total energy consumption<Not Applicable>

63337.64

8040.34

71377.98

C8.2b
(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes this fuel application
Consumption of fuel for the generation of electricity

Yes

Consumption of fuel for the generation of heat

Yes

Consumption of fuel for the generation of steamNo

Consumption of fuel for the generation of coolingNo

Consumption of fuel for co-generation or tri-generation

No

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type.
Fuels (excluding feedstocks)
Natural Gas
Heating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
6493.49
MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat
6493.49
MWh fuel consumed for self-generation of steam<Not Applicable>
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration<Not Applicable>
Emission factor
0.19754
Unit
metric tons CO2e per MWh
Emissions factor source
UK and Rest of World: 2019 UK Government GHG Conversion Factors for Company Reporting: Fuels, Natural Gas kWh (Gross CV) - 0.18385 kgCO2e Italy & Sri Lanka :GHG Protocol 2015-2017: Fuels, ES Natural Gas kWh - 0.20254 kgCO2e.
Comment
0.19754 metric tons CO2e per MWh is the weighted average emissions factor, as LSEG use location-specific emissions factors where actual consumption data is collected.
Fuels (excluding feedstocks)
DieselHeating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
1413.57
MWh fuel consumed for self-generation of electricity
1269.87
MWh fuel consumed for self-generation of heat
0
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MWh fuel consumed for self-generation of steam<Not Applicable>
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration<Not Applicable>
Emission factor
0.00267
Unit
metric tons CO2e per liter
Emissions factor source
UK and Rest of World: 2019 UK Government GHG Conversion Factors for Company Reporting: Fuels, Diesel (average biofuel blend), litres - 2.59411 kgCO2e. Italy: GHG
Protocol 2009-2017: Fuels, ES Diesel , litres -2.69235 kgCO2e Sri Lanka: GHG Protocol 2009-2017: Fuels, Diesel (Retail) , litres - 2.69235 kgCO2e
Comment
0.100267 metric tons CO2e per liter is the weighted average emissions factor, as LSEG use location-specific emissions factors where actual consumption data is collected.
The majority of diesel is consumed by diesel generators, the residual 143.7 MWh equivalant is used to for vehicle fuel.
Fuels (excluding feedstocks)
Liquefied Petroleum Gas (LPG)
Heating value
HHV (higher heating value)
Total fuel MWh consumed by the organization
133.29MWh fuel consumed for self-generation of electricity0
MWh fuel consumed for self-generation of heat
133.29MWh fuel consumed for self-generation of steam<Not Applicable>
MWh fuel consumed for self-generation of cooling<Not Applicable>
MWh fuel consumed for self-cogeneration or self-trigeneration<Not Applicable>
Emission factor
2.99925
Unit
metric tons CO2e per metric ton
Emissions factor source
Sri Lanka: GHG Protocol 2009-2017: Fuels, LPG , tonne - 2.99925
Comment
2.99925 metric tons CO2e per metric ton is the weighted average emissions factor, as LSEG use location-specific emissions factors where actual consumption data iscollected. LPG is only used in our Sri Lankan offices.

C8.2d(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in the reporting year.
Total Gross generation(MWh)

Generation that is consumed by theorganization (MWh)Gross generation from renewable sources Generation from renewable sources that is consumed by the(MWh)organization (MWh)Electricity 1269.87

1269.87

0

0

Heat

0

0

0

0

Steam

0

0

0

0

Cooling

0

0

0

0

C8.2e
(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts that were accounted for at a zero emission factor in the market-based Scope 2
figure reported in C6.3.
Sourcing method
Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates
Low-carbon technology typeLow-carbon energy mix
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Country/region of consumption of low-carbon electricity, heat, steam or cooling
United Kingdom of Great Britain and Northern Ireland
MWh consumed accounted for at a zero emission factor
37190.76
Comment
Our primary UK sites have purchased electricity tariffs with bundled energy attributes, that match every MWh of electricity supplied with a UK-recognised origin certificate.
EACs are provided by SmartestEnergy, who are certified by the Carbon Trust Certification as compliant with GHG Protocol Scope 2 Guidance so that LSEG can report zerocarbon emissions for purchased electricity when reporting using the market-based method. Generation mix includes solar PV, wind and hydropower.
Sourcing method
Green electricity products (e.g. green tariffs) from an energy supplier, supported by energy attribute certificates
Low-carbon technology typeLow-carbon energy mix
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Italy
MWh consumed accounted for at a zero emission factor
4177.73
Comment
Renewable electricity in Italy is provided by A2A and Enel Energia SpA, and according to their contract includes hydro, solar, wind, geothermal and biomass renewable mix.
Generation mix includes solar PV, wind, hydropower and biomass.
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Australia
MWh consumed accounted for at a zero emission factor
92
Comment
Sourcing method
Unbundled energy attribute certificates, Guarantees of Origin
Low-carbon technology typeLow-carbon energy mix
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Belgium
MWh consumed accounted for at a zero emission factor
19
Comment
Sourcing method
Unbundled energy attribute certificates, Renewable Energy Certificates (RECs)
Low-carbon technology typeHydropower
Country/region of consumption of low-carbon electricity, heat, steam or cooling
CanadaMWh consumed accounted for at a zero emission factor
74
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or coolingChina
MWh consumed accounted for at a zero emission factor
28
Comment
Sourcing method
Unbundled energy attribute certificates, Guarantees of Origin
Low-carbon technology type

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Low-carbon energy mix
Country/region of consumption of low-carbon electricity, heat, steam or coolingFrance
MWh consumed accounted for at a zero emission factor
1554
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
China, Hong Kong Special Administrative Region
MWh consumed accounted for at a zero emission factor
117
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or coolingIndia
MWh consumed accounted for at a zero emission factor
5
Comment
Sourcing method
Unbundled energy attribute certificates, Guarantees of Origin
Low-carbon technology typeLow-carbon energy mix
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Italy
MWh consumed accounted for at a zero emission factor
5832
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or coolingJapan
MWh consumed accounted for at a zero emission factor
65
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Malaysia
MWh consumed accounted for at a zero emission factor
900
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
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MWh consumed accounted for at a zero emission factor
5
Comment
Sourcing method
Unbundled energy attribute certificates, Guarantees of Origin
Low-carbon technology typeLow-carbon energy mix
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Netherlands
MWh consumed accounted for at a zero emission factor
10
Comment
Sourcing method
Unbundled energy attribute certificates, Guarantees of Origin
Low-carbon technology typeLow-carbon energy mix
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Portugal
MWh consumed accounted for at a zero emission factor
14
Comment
Sourcing method
Unbundled energy attribute certificates, Guarantees of Origin
Low-carbon technology typeLow-carbon energy mix
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Romania
MWh consumed accounted for at a zero emission factor
344
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Singapore
MWh consumed accounted for at a zero emission factor
33
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Sri Lanka
MWh consumed accounted for at a zero emission factor
3640
Comment
Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
Taiwan, Greater China
MWh consumed accounted for at a zero emission factor
238
Comment
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Sourcing method
Unbundled energy attribute certificates, International REC Standard (I-RECs)
Low-carbon technology typeWind
Country/region of consumption of low-carbon electricity, heat, steam or cooling
United Arab Emirates
MWh consumed accounted for at a zero emission factor
5
Comment
Sourcing method
Unbundled energy attribute certificates, Guarantees of Origin
Low-carbon technology typeHydropower
Country/region of consumption of low-carbon electricity, heat, steam or cooling
United Kingdom of Great Britain and Northern Ireland
MWh consumed accounted for at a zero emission factor
6507
Comment
Sourcing method
Unbundled energy attribute certificates, Renewable Energy Certificates (RECs)
Low-carbon technology typeHydropower
Country/region of consumption of low-carbon electricity, heat, steam or cooling
United States of America
MWh consumed accounted for at a zero emission factor
2490
Comment

C9. Additional metrics

C9.1(C9.1) Provide any additional climate-related metrics relevant to your business.
Description
Waste
Metric value1395.38
Metric numerator
Sheets of A4 paper printed
Metric denominator (intensity metric only)
Full Time Employee (FTE)% change from previous year
27.63
Direction of change
Decreased
Please explain
In our fourth year of setting a paper printing reduction target, we achieved a 27.63% reduction in A4 sheets per full-time employee.

C10. Verification

C10.1

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(C10.1) Indicate the verification/assurance status that applies to your reported emissions.
Verification/assurance status
Scope 1

Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements.
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
VSCCP6405 ISO 14064-3 Verification Statement LSEG 2019 v3.pdf
Page/ section reference
Page 1-4.
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100

C10.1b

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(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 2 emissions and attach the relevant statements.
Scope 2 approach
Scope 2 location-based
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
VSCCP6405 ISO 14064-3 Verification Statement LSEG 2019 v3.pdf
Page/ section reference
Page 1-4.
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 2 approach
Scope 2 market-based
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
VSCCP6405 ISO 14064-3 Verification Statement LSEG 2019 v3.pdf
Page/ section reference
Page 1-4.
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100

C10.1c

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(C10.1c) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevant statements.
Scope 3 category
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
VSCCP6405 ISO 14064-3 Verification Statement LSEG 2019 v3.pdf
Page/section reference
Page 1-4. This verification statement covers all Scope 3 emissions categories reported in our Annual Report and Corporate Sustainability Report – Business Travel, Water,
Waste Generation, Electricity distribution and transmission (Fuel-and-energy-related-activities). Other categories reported as “Relevant and Calculated” in C6.5 –“Purchased Goods and Services”, “Employee Commuting”, and "Upstream leased assets" are not included in our annual reporting disclosures and therefore not verified.
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Waste generated in operations
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
VSCCP6405 ISO 14064-3 Verification Statement LSEG 2019 v3.pdf
Page/section reference
Page 1-4. This verification statement covers all Scope 3 emissions categories reported in our Annual Report and Corporate Sustainability Report – Business Travel, Water,
Waste Generation, Electricity distribution and transmission (Fuel-and-energy-related-activities). Other categories reported as “Relevant and Calculated” in C6.5 –“Purchased Goods and Services”, “Employee Commuting”, and "Upstream leased assets" are not included in our annual reporting disclosures and therefore not verified.
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100
Scope 3 category
Scope 3: Business travel
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Please selectAttach the statement
VSCCP6405 ISO 14064-3 Verification Statement LSEG 2019 v3.pdf
Page/section reference
Page 1-4. This verification statement covers all Scope 3 emissions categories reported in our Annual Report and Corporate Sustainability Report – Business Travel, Water,
Waste Generation, Electricity distribution and transmission (Fuel-and-energy-related-activities). Other categories reported as “Relevant and Calculated” in C6.5 –“Purchased Goods and Services”, “Employee Commuting”, and "Upstream leased assets" are not included in our annual reporting disclosures and therefore not verified.
Relevant standard
ISO14064-3
Proportion of reported emissions verified (%)
100

C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figures reported in C6.1, C6.3, and C6.5?
No, we do not verify any other climate-related information reported in our CDP disclosure

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C11. Carbon pricing

C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?
Yes

C11.1a(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
Other carbon tax, please specify (UK Carbon Reduction Commitment (CRC) for UK operations)C11.1c(C11.1c) Complete the following table for each of the tax systems you are regulated by.
Other carbon tax, please specify
Period start date
April 1 2018
Period end date
March 31 2019
% of total Scope 1 emissions covered by tax
15.17
Total cost of tax paid
214952
Comment
The cost of CRC allowances paid by LSEG for qualifying UK sites is included here for the reporting year 2019. The CRC scheme year runs April 2018 to March 2019, andthe cost given is the total for the CRC reporting year 2018/19. The % of Scope 1 emissions covered by CRC is calculated using the total CRC qualifying UK Scope 1
emissions (275.5 tCO2e) divided by total Scope 1 emissions for LSEG in the reporting year (1816 tCO2e). 275.5/1816=15.17%

C11.1d(C11.1d) What is your strategy for complying with the systems you are regulated by or anticipate being regulated by?
i. LSEG employ specialist third party support for compliance with our Carbon Reduction Commitment (CRC) obligation in the UK. Our wider global efforts to increase energy
efficiency and reduce energy consumption in our sites are aligned to our strategy for CRC - to reduce emissions and as a result reduce the fees due in CRC allowances. The
fees due as a result of our CRC obligation help us build the business case for energy efficiency measures in key participating sites.

ii. For example, the costs of CRC allowances due at Paternoster Square and Earl Street have been factored into the business case proposition the lighting upgrade
programme at Paternoster Square and the ongoing equipment consolidation projects at both sites.

C11.2(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?
No

C11.3
(C11.3) Does your organization use an internal price on carbon?
No, and we do not currently anticipate doing so in the next two years

C12. Engagement

C12.1
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(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our suppliers
Yes, our customers

C12.1a(C12.1a) Provide details of your climate-related supplier engagement strategy.
Type of engagement
Compliance & onboarding
Details of engagement
Code of conduct featuring climate change KPIs
% of suppliers by number
8% total procurement spend (direct and indirect)64% of supplier-related Scope 3 emissions as reported in C6.5
Rationale for the coverage of your engagement
We engage with our suppliers to understand their approach to environmental management including their carbon and climate change practices. We use this information to
help inform and prioritise our supply chain selection, and to help understand our wider procurement impacts. As a baseline, in signing up to our Supplier Code of Conduct
we require our suppliers sign up to support our environmental KPIs. Approximately 8% of our total discretionary, addressable supply base has so far committed to comply
with the Code, equivalent to more than 64% of our annual third party spend.
Impact of engagement, including measures of successClimate change and wider environmental considerations are incorporated into our supplier on-boarding and due diligence approach for new suppliers, which includes therequirement to agree to our Supplier Code of Conduct. The Code of Conduct ascribed to at onboarding, facilitates our engagement with key suppliers when required on
specific environmental issues. For example, we will be looking for our key suppliers (who have committed to support our environmental KPIs through agreement with our
Code of Conduct) to support us with our Science Based Target setting process, as we continue to develop our Scope 3 target during 2020. Procurement continues to drive
adoption and agreement to the Code of Conduct, and we currently use this as our measure of success for our climate-related supplier engagement. Approximately 8% of
our total discretionary, addressable supply base has so far committed to comply with the Code, equivalent to more than 64% of our annual third party spend. In addition, we
continue to drive more formal agreement with the Code via inclusion of specific clauses in our supplier contracts and templates. Following a contracts review of our Top
500 supplier contracts in 2019, covering our largest and most important supplier relationships, circa 39% of our key contracts include such clauses.
Comment

C12.1b

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(C12.1b) Give details of your climate-related engagement strategy with your customers.
Type of engagement
Collaboration & innovation
Details of engagement
Run a campaign to encourage innovation to reduce climate change impacts% of customers by number
30% of customer - related Scope 3 emissions as reported in C6.5
Portfolio coverage (total or outstanding)<Not Applicable>
Please explain the rationale for selecting this group of customers and scope of engagement
i. Listed companies, and potential issuers are a client segment highly impacted by the integration of climate change considerations into investment decisions. Our top 50
asset managers and owners (approximately 30% of our client base) are a key target for customer engagement. We have 3 core focus areas when engaging with clients:
1)Driving best practice in disclosure Helping all equity, fund and fixed income issuers to understand and implement effective, decision-useful ESG disclosures that reflect
investor needs and trends in regulation. 2) Supporting new green-growth companies and funds Improve visibility of, and access to capital for, green & sustainable
commercial activities worldwide. 3)Enabling the transition to a sustainable, low carbon economy. Innovation to enable issuers across all sectors to access the capitalneeded to address environmental risks and opportunities. ii. It is important issuers understand the implications that climate-related investment decisions have on theirmarket valuation and their investor base. For this reason, LSEG demonstrated sector-wide leadership in supporting ESG and sustainable investment, with acomprehensive, cross asset-class Sustainable Finance & Investment programme that was rolled out in 2019/2020.This built upon the expertise of the whole London Stock
Exchange Group, particularly the deep ESG data and investor insights of FTSE Russell and Beyond Ratings. The programme: • Delivered new market innovations that havealready helped raise significant additional capital; • Provided comprehensive tools to support companies, funds and investors; and • Brought together market participants toshare best practice. London Stock Exchange’s strategy is based on the belief that sustainable investment must be integrated into the mainstream, supported by the world’s
largest capital markets.
Impact of engagement, including measures of success
London Stock Exchange’s Sustainable Finance activities in 2019/20 were comprehensive and demonstrably successful, with notable world-first innovations: a Green
Economy Mark for Equities; Sustainable Bond Market; and ESG Disclosure Score. Our overall measure of success of the Sustainable Finance and Investment programmeis to increase the number of companies listed on our markets, that are generating green revenues and disclosing high quality ESG information. Each of these activities had
their own measurable impact: 1)The Green Economy Mark: The Green Economy Mark raises visibility of companies to investors, increases market-wide awareness of thebreadth of the green economy and enables further engagement on environmental solutions. Impact: Initially awarded in October 2019 to 74 issuers with a combined market
cap of £55bn, approximately 50:50 split between AIM & Main Market. A further three issuers were awarded the Green Economy Mark at Initial Public Offering (IPO) which
demonstrated the value of being able to use the Green Economy Mark in pre-IPO marketing. 2)Sustainable Bond Market: In October 2019 London Stock Exchange
launched the first Sustainable Bond Market, with clear segments for Green, Social and Sustainable Bonds as well as Green Issuers (90% Green Revenues). Impact: From
1st March 2019 to 17th April 2020 57 new bonds listed on London Stock Exchange, a 37% YOY increase, collectively raising over £16bn. By 17 April 2020, there were 232
active bonds, which raised over £40bn in 14 currencies from 37 issuers. 3) ESG Disclosure Score :The ESG Disclosure Score is provided free to issuers along with sector
benchmarks. It a data-driven percentage score reflecting the level of disclosure by issuers of key ESG metrics for their industry sector. The Score is calculated for andprovided to 470 large cap issuers via the Issuer Services. An online tool was developed to enable all remaining issuers (where insufficient data exists) to calculate their own
score. This is a particularly important innovation for smaller Main Market and AIM issuers, which often lack dedicated ESG expertise in house. Impact: More than 500
issuers have completed the self-assessment in addition to the 470 provided, allowing these issuers to compare themselves to their industry sector, identify gaps and focus
efforts for improvement.

C12.3(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issues through any of the following?
Direct engagement with policy makers
Trade associations

C12.3a(C12.3a) On what issues have you been engaging directly with policy makers?
Focus of Corporate Details of engagement
legislation position

Proposed legislative solution

Climatefinance

Support

In 2019 London Stock Exchange was appointed to the
PRA/FCA Climate Finance Risk Forum established toprovide guidance on the integration of climate-relatedrisks and opportunities in the banking, asset
management and insurance sectors in the UK.

LSEG was involved in the Innovation working group, which put forward recommendations to introduce solutions to scale up green
finance in the UK.

Climatefinance

SupportOur Sustainability Manager is a member of the EU
Technical Expert Group on Sustainable Finance (TEG),
representing Borsa Italiana.

The TEG have been appointed by the Commission to action the following: - Development of an EU classification system ofsustainable economic activities - Development of the minimum standards for a harmonized methodology for low-carbon andpositive carbon impact benchmarks. - Development of an EU Green Bond standard. - Updating the Non-Binding Guidelines(supporting Non-Financial Reporting Directive) with focus on climate-related disclosures and incorporating the recommendations
from TCFD. In 2019, reports were published in all of the above four areas.

C12.3b
(C12.3b) Are you on the board of any trade associations or do you provide funding beyond membership?
Yes

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C12.3c(C12.3c) Enter the details of those trade associations that are likely to take a position on climate change legislation.
Trade association
UKSIF (UK Sustainable Investment & Finance Association)
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
UKSIF advances its mission and delivers value for its members by: Acting as a voice for the sustainable and responsible finance industry in the UK, convening its members
to understand, educate and influence governments, nongovernmental organisations, regulators, companies, professional advisers, the general public and otherstakeholders. As the industry matures and access to, and information about, companies becomes easier to obtain, UKSIF’s role in support of dialogue with governments
and regulators in the UK and potentially elsewhere has become a more significant part of its role. Their support for UK leadership in advancing sustainable development
through investment and finance includes accelerating green finance and impact investing. In partnership with others, we support the creation of the UK Green Investment
Bank and influencing corporate sustainability reporting requirements such as carbon emissions and regulatory approaches to social impact investment. Their analyst
seminar programme catalyses debate on emerging environmental (including climate change), social and governance issues and assists our members to develop theirpractices. Other activities include the annual Extel SRI & Sustainability Survey, the UKSIF Annual Lecture and their support for the City of London’s Sustainable City
Awards.
How have you influenced, or are you attempting to influence their position?
LSEG influences the UKSIF position through being a member of the Board.
Trade association
UN Sustainable Stock Exchanges Initiative
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
The SSE Initiative aims to explore how exchanges can work together with investors, regulators and companies to enhance corporate transparency and ultimately
performance on ESG issues and to encourage responsible long-term approaches to investment. Currently over 87 exchanges from around the world are partner exchanges
to the SSE Initiative.
How have you influenced, or are you attempting to influence their position?
Our Group Head of Sustainable Business is a member of the UN SSE Consultative Group and chaired the Working Group that in 2015 developed the Model Guidance for
Exchange on ESG disclosure. LSEG launched it’s own guidance for issuers, in 2017, on the integration of ESG issues into investor reporting and communication, based on
the SSE Model Guidance.
Trade association
Climate Bonds Partnership Programme
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
Climate Bonds Initiative is the only organisation in the world working solely to mobilize the largest capital market of all, the $100 trillion bond market, for climate changesolutions.
How have you influenced, or are you attempting to influence their position?
London Stock Exchange Group (LSEG) become the first global exchange to join the Climate Bonds Partnership Program.
Trade association
Green Bond Principles
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
The Green Bond Principles are coordinated by the ICMA.
How have you influenced, or are you attempting to influence their position?
LSEG is an official observer.
Trade association
TCFD - Financial Stability Board Task Force on Climate-Related Financial Disclosures
Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
The Task Force on Climate-related Financial Disclosures (TCFD) will develop voluntary, consistent climate-related financial risk disclosures for use by companies inproviding information to investors, lenders, insurers, and other stakeholders. The Task Force will consider the physical, liability and transition risks associated with climatechange and what constitutes effective financial disclosures across industries. The work and recommendations of the Task Force will help firms understand what financial
markets want from disclosure in order to measure and respond to climate change risks, and encourage firms to align their disclosures with investors’ needs.
How have you influenced, or are you attempting to influence their position?
LSEG took part in the Phase I consultation, responded to the subsequent “Recommendations” report, participated in various events serving to raise awareness andengaged in discussions with members of the Task Force. Mary Shapiro, Non-Executive Director to LSEG Board has been a secretary to the Task Force.
Trade association
UK Green Finance Institute Advisory Board

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Is your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
The GFI has the objective to scale-up green finance in the UK and internationally, through public policy advocacy, capacity building, and fostering innovation andcollaboration in the green finance sector.
How have you influenced, or are you attempting to influence their position?
LSEG is a member of the Advisory Board of the Green Finance Institute founded and funded by BEIS in response to the UK Green Finance Taskforce Recommendations.
Trade association
FCA/PRA Climate Risk ForumIs your position on climate change consistent with theirs?
Consistent
Please explain the trade association’s position
The FCA/PRA Risk forum was set up by the FCA and the Bank of England to embed consideration of climate-related risks and opportunities in the UK financial systems
through four work streams: Innovation, Disclosures, Scenarios, Risk Management.
How have you influenced, or are you attempting to influence their position?
LSEG is a member of the newly established FCA/PRA Climate Forum – with particular focus on the Innovation Working Group.

C12.3f(C12.3f) What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climatechange strategy?
LSEG has a transparent approach to lobbying. All our consultation papers are published on our website. We are also registered in the EU's Transparency Register.

The Group Corporate Sustainability (CS) Committee coordinates activities across the Group, partnering with all business areas to ensure consistency of engagement andapproach with both internal and external stakeholders. The CS Committee also ensure coordination with the Group Regulatory Strategy and Government Relations team,
who were represented on the Committee via the relevant Executive Committee member, the CEO of LSE plc, also in charge of the global Regulatory Strategy function.

All Government Relations and policy initiatives involve the development of position papers which are submitted to the CS Committee. CS Committee members provide their
input whenever they see the topic has possible areas of overlap with sustainability and climate change issues to ensure these are consistent with the Group’s overall climatechange strategy.

All LSEG responses to consultations (all topics including climate-related) are publicly available at https://www.lseg.com/about-london-stock-exchange-group/regulatorystrategy.

C12.4

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(C12.4) Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places
other than in your CDP response? If so, please attach the publication(s).
Publication
In mainstream reports, incorporating the TCFD recommendations
StatusComplete
Attach the document
LSEG Annual Report 31 December 2019.pdf
Page/Section reference
P 14 Market Trends and Our Response P 40-41 Supporting sustainable growth P 47 - 48 Our wider responsibility P 49 Task Force on Climate-related Financial Disclosures(TCFD) summary P 60 & 73 Principle risks and uncertainties
Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
Comment
Publication
In voluntary sustainability report
StatusComplete
Attach the document
LSEG Corporate Sustainability Report 31 December 2019.pdf
Page/Section reference
P 36 – 32 Environment P 13 - 20 Our Markets and Our Services
Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
Other metrics
Comment

C15. Signoff

C-FI(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response. Please note that this field is optional
and is not scored.

C15.1(C15.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Row 1

Job title

Corresponding job category

Chief Financial Officer

Chief Financial Officer (CFO)

Submit your response
In which language are you submitting your response?
EnglishPlease confirm how your response should be handled by CDP

I am submitting my response

I am submitting to

Public or Non-Public Submission

Investors

PublicPlease confirm below
I have read and accept the applicable Terms
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CDP

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