Encouraging growth
Expanding opportunities
Corporate Sustainability Report
31 December 2019

01

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

LSEG

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Contents

Who we are
London Stock Exchange Group is a global financial
markets infrastructure business. We provide
valuable services for a wide range of customers,
focusing on Data and Analytics, on Risk, Collateraland Processing Solutions, and on Capital Formation
and Trade Execution.
The Group plays a vital economic and social role in enabling companies
to access funds for growth and development.
For further information, visit:www.lseg.com

Our commitment to sustainability
This report provides an annual update of theGroup’s approach, aims and achievements
across all aspects of Corporate Sustainability(CS). Our sustainability performance for 2019is demonstrated through both quantitative KPIs
and descriptions of various initiatives andprogrammes that were put in place toimplement our strategy and reach our targets.
For further information, visit:www.lseg.com/about-london-stock-exchangegroup/corporate-sustainability.

02	Welcome to our 2019 Corporate
Sustainability Report
03 Group at a glance
04 Our strategic pillars
05	Our Corporate
Sustainability strategy
06	Our approach to
Corporate Sustainability
07 Sustainability governance
08 Materiality review
09 Progress on our commitments
11 Looking ahead
12 2019 Review
13 Our Markets
17 Our Services
21 Our People-42%

Overall carbon footprint
per Full Time Employee£1.4m
Donated to charity
by LSEG Foundation

100%

Employees successfullycompleted mandatory
Anti-Bribery and Corruption
training in 201929 Our Communities
34	Our overall Corporate
Sustainability performance
35 Data reporting overview
36 Environment
43 Social
44 Governance
47 Appendix i
50 Appendix ii
51 Appendix iii
52 Appendix iv
53 Appendix v

Investor Relations
London Stock Exchange Group plc
10 Paternoster Square
London EC4M 7LS
Email: irinfo-r@lseg.com
For a glossary of terms, visit:www.lseg.com/investor-relations/group-glance/glossary

How to use this interactive PDF–– Select the navigation tabs at the topof each page to jump to the start ofthat section–– Select from the contents list or
highlighted text throughout the reportto jump to that page or web link

02

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Welcome to our 2019 Corporate
Sustainability Report
investment decision-making process, a market first.
In Capital Markets, we launched the Green Economy Mark,to allow the market to identify issuers that generate greaterthan 50% of their revenues from green products andservices, and the Sustainable Bond Market (SBM), a new
dedicated segment for social and sustainability bonds. The
SBM also imposes a higher standard of disclosure on issuers
to ensure continued eligibility for this market. In Post Trade
Services, we play a critical role supporting global financial
stability by reducing and managing risk through the efficient
operation of central counterparties, supporting the integrityof financial markets. In 2019 we extended the range of
products that can be centrally cleared and compressed $920
trillion of notional value through our SwapClear service which
benefits investors, corporates and the wider economy
through release of capital for other investment purposes.

“We are uniquely placed
to provide products andservices that support our
purpose of enabling
businesses and economies
to fund innovation, manage
risk and create jobs”
David Schwimmer

CEO

Corporate Sustainability
I am delighted to present our 2019 Corporate Sustainability(CS) Report. Sustainability is a strategic focus for our Groupand this report reflects on the actions we are taking
regarding our own business as well as our continuingcommitment to support global financial stability andsustainable growth. We have an important role andresponsibility to support companies and issuers in thetransition to a sustainable and low-carbon economy.
Our position at the centre of global financial markets means
our business is uniquely placed to provide products andservices that support our purpose of enabling businesses andeconomies to fund innovation, manage risk and create jobs.
In Information Services, we acquired Beyond Ratings,
a highly regarded provider of ESG data for fixed income
investors, and have since launched the Climate WGBI,
an innovative index which allows investors to incorporate
climate risk considerations into their sovereign debt

Turning to our own corporate initiatives, in 2019, the LSEG
Foundation donated £1.4 million across a variety of activities
for a number of global and regional charities. We also
launched the LSEG Foundation Challenge, which saw over
400 colleagues participating and over 2,400 hours
volunteered, taking advantage of the two paid volunteeringdays we offer every employee globally. Over 20% of ourglobal workforce took part in volunteering initiatives in 2019.
We are committed to supporting a culture that fosters
collaboration and innovation, as well as diversity andinclusion, and in 2019 we have taken a number of steps tohelp us achieve this goal, including the launch of our global
Inclusion Network (IN). We have also made progress on
our gender diversity targets, with 38% of our new hires in2019 being female, increasing further to 41% at senior
manager level.

We have maintained or improved our scores acrossa number of recognised international ESG reporting
frameworks, have developed our approach to Task Force on
Climate-related Financial Disclosures (TCFD) reporting witha detailed review of potential climate change impacts on
the Group, and have incorporated Sustainable Development
Goals into our sustainability approach. I am delighted to saythat we have further reduced our CO2 emissions per FTE
by 42% during the year on top of the significant reduction
we had achieved in 2018.
Finally, as our Group continues to expand, our
responsibilities and impact on our communities andenvironment also expand. We are now planning the next
phase of our approach to sustainability to ensure we
continue to manage our own corporate responsibilities
and at the same time that we are an enabler of positivechange in the markets where we operate.
David Schwimmer

03

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Group at a glance
Who we are

London Stock Exchange Groupis a global financial markets
infrastructure business.
We provide valuable services fora wide range of customers,
focusing on Data and Analytics,
on Risk, Collateral and Processing
Solutions, and on Capital
Formation and Trade Execution.

Our Group
Information Services
Provides customers with an extensive range of valuable
information, analytics and data products, that inform
investment decisions and capital allocation, including
indices, data on pricing, trading and valuations.
–– FTSE Russell launched Climate WGBI

Post Trade
The Group offers a full range of central counterparty (CCP)
clearing services and collateral management solutions which
provide strong risk management and capital efficiency
benefits. These allow our buy-side and sell-side customers
to operate more effectively, enabling increased trading andinvestment activities.
–– Over US$1.2 quadrillion of notional cleared by SwapClear
in 2019

Our Secondary Markets provide liquid and deep accessto financial securities to enable improved price formation,transparency and trading efficiency.
–– London Stock Exchange launched Green Economy
Mark and Sustainable Bond Market
Technology
Delivers financial markets infrastructure IT to various
businesses within the Group. This IT comprises resilient,secure, high-performance trading platforms, post trade
platforms, real time market data, hosting and otherinfrastructure products and services. It also provides
these services to third parties around the world.

Our Vision

To become the leading
global financial markets
infrastructure group.
Our Purpose

Our Corporate Sustainability
Integrity and trust are at the core of what we do.
As a Group we have, from the outset, operated
under the banner of ‘my word is my bond’. That
overriding principle is still relevant today as aprovider of trusted, reliable, independent and user
neutral services. We recognise the role we play ininternational markets. This role encapsulates not
only commercial and performance objectives but
also environmental, social and governance (ESG)
responsibilities.

We support global financial
stability and sustainable economic
growth by enabling businesses
and economies to fund innovation,
manage risk and create jobs.

LSEG offices

 or more information on our businessFmodel, see page 10 of the Annual Report

Capital Markets
Our Primary Markets provide choice and connections
between a wide range of issuers and investors, enabling
domestic and international companies to raise capitaleffectively.

04

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our strategic pillars
1. Our Markets

2. Our Services

3. Our People

4. Our Communities

Supporting the sustainable growthof companies for long-term
economic prosperity

Enabling informed investment
decisions and transparent
markets operations

Recruiting and developing diversified
talent to fulfil their potential

Empowering people,
enriching communities

Highlights–– London Stock Exchange launched theSustainable Bond Market

Highlights–– LSEG acquired Beyond Ratings, a specialist ESG
research company that specialises in fixedincome and government bond ESG solutions

Highlights–– LSEG launched its ‘Inclusion Network’ (IN)Highlights–– LSEG Foundation donated £1.4 million to charities
in 2019–– London Stock Exchange launched the Green
Economy Mark, which recognised 75 companies
and funds across our London markets–– FTSE Russell launched Climate Adjusted World
Government Bond Index (Climate WGBI)–– A record 79 new ESG ETFs were listed on
our markets–– FTSE Russell launched FTSE Custom Developed
Ex Korea SDG Aligned Net Tax (DSDG) Index–– Borsa Italiana launched a new segmentof its ExtraMOT market for the growthof Italian SMEs–– In early 2020, FTSE Russell launched the FTSE TPIClimate Transition index in collaboration with TPI
and the Church of England Pensions Board

65€5.8 billion

green bonds listed
on our markets in 2019

commitment to tracking FTSE Custom
Developed Ex Korea SDG Aligned Net
Tax (DSDG) Index–– Launch of Group Culture Dashboard reporting
to Group Executive Committee and Board–– First spring week programme for Science
Technology Engineering and Maths (STEM)
students–– All Managing Directors received 360° feedback
and development programmes

137%

share price appreciation for employees’
Sharesave maturities–– Launched volunteering initiative for SMEs inpartnership with Centre for Entrepreneurs aspart of their NEF Fast Track programme–– LSEG Foundation Challenge launched in
October 2019–– Lindenfeld Association Ajungem Mari chosen as
Romania charity partner

20%

of our global workforce volunteered in 2019

05

London Stock Exchange Group plc
Group Corporate Sustainability Report 20191.

Overview

Corporate Sustainability Strategy

Corporate
Sustainability
Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Our Communities

Appendix

06

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our approach to Corporate Sustainability
Why Corporate
Sustainability matters
LSEG believes that good Corporate Sustainability (CS)practices are fundamental to our continued success anddelivery of enhanced business performance. We aim tosupport financial stability and sustainable economic growthby enabling businesses and economies to fund innovation,
manage risk and create jobs. This corporate purpose
encapsulates not only commercial and performance
objectives but also environmental, social and governance(ESG) responsibilities. Accordingly, we set our CS strategy inline with our wider business strategy.
To develop and achieve the Group CS objectives andtargets, we established a Group CS Committee in 2011.
The successful execution of our CS strategy is exhibited
through the achievements made throughout 2019
discussed in this report.

Our purpose
We support global financial stability and sustainableeconomic growth by enabling businesses and economies
to fund innovation, manage risk and create jobs.
CS strategy
We have six impact areasthat direct our focus on all of
our CS activities.

CS pillars
Our strategy is executed throughfour pillars, which we reportprogress against.

ConveneLeveraging ourposition at thecentre of capital
markets to drive
global growth

Grow
Small andmedium-sizedenterprises (SMEs)
raise capital andfund investments
to create
employment
worldwide

Our Markets
Supporting the sustainable growthof companies for long-term
economic prosperity

See page 13

Disclose
Providinginvestors withinformation andtools to assess the
ESG performanceof companies tofacilitate
engagement
and investment
approaches

Transition
We work withissuers andinvestors toprovide solutions
that accelerate
and manage
the transition toa low carbon
and sustainableeconomyOur Services
Enabling informed investment
decisions and transparent
markets operations

See page 17

These two pillars represent areas where we can have the biggest impact
as a business, using our unique position at the centre of capital markets
to make a meaningful difference.

Other CS considerations

We aim to ensure our corporate behaviour and actions are consistent withgood practice while generating long-term value creation.

Develop
Employ andinvest in thedevelopment of
a highly diverse
global workforce
to deliver on oursustainable vision

Sustain
We will help theless advantaged
in communities
worldwide to
develop businessskills and tosupport theenvironment

Our People
Recruiting anddeveloping
diversified talent
to fulfil theirpotential

Our
Communities
Empowering
people, enrichingcommunities

See page 21

See page 29

07

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Sustainability GovernanceOur approach to Corporate Sustainability is overseen by the
LSEG Board. The CEO is responsible for sustainability matters,
while the Group CFO, who is a Board member, has
responsibility for the environmental policy. In 2019, theBoard met four times to discuss ESG matters.

Governance
LSEG Board
LSEG Executive Committee

Our sustainability strategy is driven by the Group Corporate
Sustainability Committee, on which Executive Committee
members sit. Delivery of the sustainability programme iscarried out by the Sustainable Business team, reporting to
the heads of Investor Relations and Government Relations
and Regulatory Strategy.

LSEG Corporate Sustainability Committee
Diane Côté, Chair

Programme Delivery Oversight
Paul Froud, Group Head of Investor Relations
Rosie Donachie, Group Head of Government Relations and Regulatory Strategy

Each pillar lead has established working teams drawn fromacross the Group, two of which also have oversight of related
CS initiatives, shown in the diagram to the right, such as theDiversity and Inclusion (D&I) committee which feeds intothe ‘Our People’ working team.
Risks
We continue to assess the materiality of ESG and relatedrisks to LSEG and to increase our focus on embedding theserisks into our Enterprise Risk Management framework. While
we recognise the importance of Environment, Human Rights
and Anti-bribery and corruption (ABC) risks, and these are
not currently considered principal risks for the Group. Someclimate-related risks have been categorised as emerging
risks and it is acknowledged that they are inherently linked
to other strategic, financial and operational risks.
Additionally, some social matters are still identified under
the Employees principal risks for the Group in the Principal
Risks section of the Annual Report.
In 2019, further steps have been taken to cement ourapproach, including the formal training of risk champions on
ESG-related risks, and the determination of key scenarios toinform Taskforce on Climate-related Financial Disclosures(TCFD) reporting, both facilitated by an independent andexternal consultancy. More information on our sustainability
and climate-related principal risks can be found on page 73
of the Annual Report.

Programme Delivery
David Harris, Head of Sustainable BusinessSara Lovisolo, Sustainability Manager
Working Teams
Our Markets
Raffaele JerusalmiGroup Director,
Capital Markets

Our Services
Waqas SamadGroup Director,
Information Services

Our People
Tim Jones
Group Head of
Human Resources
D&I
Diane Côté

Women
Inspired
Network (WIN)
Diane Côté

Our Communities
Diane Côté
Group Chief Risk Officer

Foundation
Diane Côté

Environmental
Management
Group (EMG)
James Nunn

08

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Materiality review
Prior to reporting, all CS initiatives and activities from acrossthe year are assessed for their materiality within our CS
strategic framework. Items are cross-referenced using bothinternal and external evaluators. Internally, activities aregrouped into pillars and evaluated on their relevance to six
impact areas and externally against the UN Sustainable
Development Goals (SDGs) and Global Reporting Initiative(GRI) materiality definitions. If the item is deemed
to be material against this framework, it is reported.

Impact Areas
The six impact areas and theirmateriality are

ConveneLeveraging ourposition at the centreof capital markets todrive global growths

Together, this framework provides a tool to–– set coherent and congruent objectives withcross-Group impact–– create aligned action plans–– engage with employees to add value throughinnovative CS strategies–– engage effectively with external audiences
and stakeholder groups
Sustainable Development Goals
We assess CS initiatives and activities for their contribution
towards fulfilling five SDGs that are relevant to stock
exchanges as set out by the UN Sustainable Stock Exchanges
initiative (UN SSE): gender equality, decent work andeconomic growth, responsible consumption and production,
climate action and partnerships for the goals.
More information on SDGs can be found here:
https://sustainabledevelopment.un.org/sdgs.
This framework, incorporating the SDGs in corporate
reporting is recommended in our ESG Reporting Guidance.

Sustainable
Development Goals
Relating to the six impact areas.

Grow
Small and mediumsized enterprises(SMEs) raise capitaland fund investments
to create
employment
worldwide

Disclose
Providing investors
with informationand tools to assess
the ESG performanceof companies
to facilitate
engagement
and investment
approaches

Transition
We work with issuers
and investors toprovide solutions
that accelerate
and manage thetransition to a
low carbon andsustainable economy

Develop
Employ and invest in
the development of
a highly diverse
global workforce todeliver on oursustainable vision

Sustain
We will help theless advantaged
in communities
worldwide to
develop businessskills and to support
the environment

09

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Progress on our commitments
In the past year, we have continued to make progress
towards the commitments made in our 2018 CS Report.
Pillars

Impact Areas

Objective

Actions

Our Markets

Grow

Our Services

Convene–– Convene the investment industry to discuss andprogress solutions for the transition to a sustainable
and low-carbon economy from across our businessdivision and determine consensus to influence
regulatory developments in our clients’ interest–– Third Italian Sustainability Day in July 2019 saw a record 300+ one-on-one
meetings between Borsa Italiana listed companies and investors on ESG
issues (see page 16)–– The inaugural Sustainable Finance and Investment Summit was hosted by
London Stock Exchange in October 2019 (see page 16)–– For a full overview of our convening activity in the reporting period, please see
Our Markets (page 13) and Our Services (page 17)–– Scale up our offering for the promotion of SMEs’ accessto funding and help them bridge the gap to long-term
financing; build on the ELITE initiative, our AIM market
and the ‘Companies to Inspire’ series; and address
the needs of developing markets including thedevelopment of vital market infrastructure–– By the end of 2019, ELITE had involved over 1,300 companies and launched in
Scotland and America (see page 14)–– See page 14 for progress made by AIM–– Companies to Inspire Africa and 1000 Companies to Inspire Britain Reports
published in 2019 (page 15)–– Borsa Italiana launched a new segment of its ExtraMOT market for the growthof Italian SMEs (page 15)–– Develop and launch further initiatives to promote
disclosure among issuers–– The Sustainable Bond Market, Green Economy Mark and the ESG disclosure
score, launched by London Stock Exchange in October 2019, aim to encourage
good corporate disclosure of green revenues and material ESG data. (page 15)–– Development of new products that add new tools
supporting the transition to a sustainable andlow-carbon economy and related capital flows–– London Stock Exchange launched its Sustainable Bond Market in October
2019, following a public consultation (see page 15)–– The Green Economy Mark launched in October 2019 to highlight to investors
listed equities active in the green economy (see page 14)–– Launch of Climate WGBI (page 19)

Disclose
Transition

SDGs Supported

ProgressKey:
Exceeded target
Met target
Working towards target

10

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Progress on our commitments continued
Pillars

Impact Areas

Objective

Progress

Our People

Develop

Our Communities

Sustain–– Deliver the Foundation action plan aligned withthe revised strategy–– See Our Communities section, pages 29–23. This year a Group-wide
volunteering challenge boosted the hours donated by LSEG employees
to charitable causes–– Review and achieve target for staff involvementin volunteering across the Group–– The target was reviewed from 15% to 25% of employee base involvement involunteering initiatives (see pages 30–33) 20% of our global employee base
took part in volunteering in 2019–– Upgrade our environmental management
governance and work towards the science-based
environmental targets–– See our enhanced TCFD disclosures in the Annual Report – Supporting
Sustainable Growth section and on pages 52 -53 of this report–– In 2019, LSEG engaged with the Science-based Targets Initiative to work
towards the approval of its submitted 2030 targets (see Environmental
section, page 36)–– Work towards the achievement of the Group-wide2020 gender diversity targets and consider extensionof diversity programme beyond gender–– In 2019, LSEG launched its global Inclusion Network (see page 25)–– For progress against the 2020 gender diversity targets,see Our People, page 25

SDGs Supported

ProgressKey:
Exceeded target
Met target
Working towards target

11

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Looking Ahead
As our business expands and diversifies, we continue toreview our sustainability objectives.
Pillars

Impact Areas

Objective

Our Markets

Grow

Our Services

Convene–– Build on LSEG purpose statement to develop a long-term integrated sustainable finance strategy, including developing capabilities tosupport investors and issuers focus on the transition to a low carbon economy

Disclose
Transition–– Develop new tools to promote better ESG disclosures on LSEG markets and beyond, and promote disclosure through benchmarks–– Support climate finance action for COP26, co-hosted by the UK and Italy, to convene the finance industry across both markets to mobilize
capital markets in support of action to enable climate transition–– Build on the success of the Companies to Inspire series, ELITE and AIM to promote access to capital of SMEs

Our People

Develop

Our Communities

Sustain–– Further align HR systems and programmes, including diversity and wellbeing, to the Board’s culture approach ensuring resilience during
periods of change–– Further tighten the alignment of LSEG community investment programme to LSEG Foundation’s mission and strategy, aiming for a 95% target–– Achieve the 25% target for LSEG staff ‘s involvement in volunteering activities–– Work towards the approval of our science-based target by the Science-based Targets initiative during 2020 and aim for a further 2% reductionin Scope 1 and 2 emissions per FTE/£m revenue and a 2% reduction in waste per FTE compared to 2019, while assessing using Gold standard
carbon credits to offset unavoidable air travel emissions, alongside other initiatives that will reduce our impact of our business travel

SDGs Supported

12

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

2.

2019
Review

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Our Communities

Appendix13

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets
Supporting the sustainable growthof companies for long-term
economic prosperity
As a fundamental component of theeconomy, our markets, built ontransparency and trust, help
customers optimise their capital
resources and let businesses thrive.

65

Green bonds listed on
our markets in 2019

Highlights–– London Stock Exchange launched theSustainable Bond Market–– London Stock Exchange launched the Green Economy
Mark, which recognised 75 companies and funds across
our London markets–– A record 79 new ESG ETFs were listed on our markets–– Borsa Italiana launched a new segment of its ExtraMOT
market for the growth of Italian SMEs

1,400

Companies inthe ELITE ecosystem“Financial markets must
play a pivotal role in thetransition to a moresustainable economy.
LSEG is committed
to playing its part”
Raffaele JerusalmiGroup Director, Capital Markets

Impact Areas:
Convene | Grow | Disclose | Transition
Sustainable
Development Goals:

Further information
Our activities under Our Markets and Our
Services pillars are integrated with ouroperational activities. Details on these
initiatives can be found in our Annual Report
as identified by the following symbols:
Our Markets

M

Our Services

S14

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets continued
ELITE
Grow

Continuing to support
SME development andgrowthELITE is LSEG’s innovative international business support andcapital raising programme designed for ambitious,
high-growth companies. In 2019, ELITE continued to expand
its reach, launching ELITE Scotland in January and ELITE
America, building on an existing partnership with JobsOhio.
The ELITE global community includes 1,400 companies
representing 45 countries across 36 sectors and accounting
for over 500,000 jobs. Across the year, five ELITE programme
graduates joined AIM Italia, taking the total number of IPOs
from ELITE companies on our markets to 29.

ELITE also launched a new corporate governance framework
for SMEs, based on the Corporate Governance Code for listed
businesses. This aims to provide clear and easy-to-readsupport on corporate governance for fast-growing private
businesses and to act as a practical tool to help thesebusinesses in the medium to long term.
M

Market open for launch of ELITE Scotland

AIM
Grow

Green Finance
Grow
Transition

Markets that support
growthGreen Equity and Funds

AIM has been a source of long-term capital for more than
3,800 companies from around the world. During 2019,23 companies were admitted to our London market, with
£3.8 billion raised across new and further issues. In Italy arecord 31 companies were admitted to our AIM Italia market.

AIM and AIM Italia are both officially designated as European
SME Growth Markets, with 60% of capital raised in European
growth markets in 2019 seen at AIM.

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, identified by the Green Revenues data model
developed by FTSE Russell. At the end of 2019, across all ourmarkets there are 77 green companies listed on our markets,comprising the 75 London Stock Exchange companies andfunds that received the Green Economy Mark and two on
Borsa Italiana.

Green funds listed in London raised £2.3 billion in 2019,representing over one third of all capital raised by listed funds
in London. Listings in 2019 included funds for alternative
energy across both Europe and America as well as the largest
ever green fund to launch on London Stock Exchange,
focused on renewable energy assets in Europe and Australia.
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 and raising green finance.

Launch of the Green Economy Mark2019 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 andvalue traded up 54% on London Stock Exchange year on year.

79

M

M

In the 2018 Corporate Sustainability Report 132 companies were highlighted by applying a lower threshold of 20% green revenues.

ESG and sustainable ETFs
listed on our markets in 2019

15

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets continued
Green Finance

Sustainable Bond Market

Grow
Transition

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 andincorporates the existing Green Bond Segment. Thesesegments enable investors to distinguish between different
types of sustainable bonds, based on independently verified
frameworks and use of proceeds.

London Stock Exchange has also created a new Issuer-Level
Segment for bonds by issuers whose core business activity
is aligned with the green economy. This enables eligible
green economy businesses with more than 90% green
revenues to admit bonds to SBM. We have introduced
mandatory annual post-issuance reporting requirements for
issuers on SBM, to provide transparency to investors on theongoing use of proceeds and demonstrate continued
eligibility to SBM over the lifetime of the bonds.
M

Green Bonds

Companies to Inspire
Grow

Companies to Inspire

Following the launch of the SBM, London Stock Exchange
reclassified a number of securities under the new social bondtag or using the Issuer-Level Segment classification. As of theend of 2019, 41 new sustainable bonds were listed on the
London Stock Exchange, raising a total of more than £11billion, and bringing the total number of green, social andsustainable bonds to 215, from 174 in 2018, using the new
SBM classifications on 2018 data. Highlights include the first
Latin American sovereign green bond (Chile £1.1 billion) to
trade on London Stock Exchange’s International Securities
Market (ISM); the first social bond from a bank (RBS £640
million); the first sustainability bond from a UK watercompany (Yorkshire Water £340 million); and innovativeissuances from The Co-operative Group, supporting its
Fairtrade partnership, and Standard Chartered, which is
focused on lending to developing countries.

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. This
included a €500 million Climate Action bond listing by Snam,an energy infrastructure company, on the ExtraMOT PRO
Green and Social segment. During the year, Borsa Italiana
launched a new bond segment of its ExtraMOT market,
ExtraMOT PRO3, for Italian SME companies not listed on
regulated markets and / or with an issue value of less than
€50 million. 157 debt instruments have been listed with over
€5 billion raised since launch.

LSEG’s Companies to Inspire reports identify the fastestgrowing SMEs and highlight the contribution that thesecompanies make to the economy, including driving
innovation and employment. This year we issued the sixth
edition of the 1000 Companies to Inspire Britain report which
had a key focus on creating the right conditions for SMEs togrow and prosper as well as increasing awareness of thefinance and investment opportunities available to help
sustain their growth, such as utilising our ELITE platform. This
year’s companies demonstrated 108% revenue growth, up
from 70% last year, as well as the creation of 95,287 jobs overa two-year period.

The launch of the second edition of the Companies to Inspire
Africa report showcased the growing prospects that Africa
offers as well as emphasising the social and economic rolethat these businesses play within the market. While focusing
on the achievements of these inspiring companies, they also
aim to recognise and present potential solutions tochallenges that may exist for these companies, such asbuilding partnerships to reduce uncertainty and aid
long-term development.

RBS opens the market in London

65

green and sustainable bonds
listed on our markets in 2019M

Launch of the 2019 1000 Companies to Inspire Britain report

16

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy

2019 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets continued
LSEG ESG Reporting
Guidance

LSEG guidance reporton Green Finance

Disclose
ConveneIn October 2019, LSEG published a comprehensive guide forissuers providing an introduction to green finance, an
overview of all relevant capital-raising tools and featured

case studies. The publication has received positive feedback
including requests by UK government departments to use it
in their training and engagement activities.

London Stock Exchange ‘Navigating the green finance landscape’ report

Events and Conferences
ConveneTransition

ESG Disclosure Score
and online tool

Building on our ESG reporting guidance report in 2017 and tohelp issuers better understand where they could prioritise
their disclosure efforts, in October 2019 London Stock
Exchange launched an issuer ESG Disclosure Score witha supporting online self-assessment tool. This generates
a percentage score reflecting the level of disclosure by theissuer of key ESG metrics for their industry, linked to andreinforcing global standards such GRI, SASB, CDP and TCFD.
It is calculated for and provided to issuers via the London
Stock Exchange’s Issuer Services platform along with theirindustry average score for comparison. An online tool was
also developed to enable issuers to calculate their own score.

Sustainable Finance andInvestment Summit

On 11 October 2019 LSEG held its inaugural Sustainable
Finance and Investment Summit: a full-day summit with‘deep dive’ workshops held in London to educate issuerson this increasingly important area of focus and panels

featuring UK issuers, investors, regulators, policymakers
and disclosure-standards bodies. The event was attended
by more than 250 delegates on the day and had over 100
online viewers.

Transition Bond
Roundtable

As part of the consultation around our new Sustainable Bond
Market in 2019, LSEG held a roundtable discussion featuring
investors, issuers and the advisory community on theemergence of transition bonds as an asset class to help
companies and countries raise capital in support of theirtransition to low carbon. The aim was to facilitate
a conversation with key market participants about
the purpose of transition bonds, how they should beclassified and what disclosures would be appropriate.

African Green Companies
and Investment
Roundtable

As part of LSEG’s Companies to Inspire Africa publication, theGroup convened African green sector companies, investors
and policymakers to discuss the challenges of green
investment in Africa. The roundtable has led to an ongoing
dialogue with these companies as they continue to grow andraise capital and underlines our commitment to working with
African governments, development agencies and the UK
government to unlock sustainable finance and local currency
opportunities to support development in Africa.

Companies to inspire Africa market open ceremony

Italian Sustainability Day

Borsa Italiana hosted its third Sustainability Day in 2019,
running sessions for over 600 attendees on long-termsustainable growth strategies for Italian listed companies,
sustainable financing tools and the growing demand for
ESG factors in investment decision making. In addition,
33 companies met with more than 80 investors in

one-to-one and group meetings discussing their long-termsustainability plans. This event was again endorsed by the
UN Sustainable Stock Exchange Initiative and this year was
also supported by The UN Global Compact, The UN Principles
for Responsible Investments and Italian Forum for
Sustainable Finance.

17

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

2019 Review
Our Services

Performance
Our People

Appendix

Our Communities

Our Services
Enabling informed investment
decisions and transparent
markets operations
The Group supports informed andsustainable investment decisions byproviding global and multi-asset classindices, analytics and data solutions
across the financial markets value
chain. This is supported by ourphilosophies of customer partnershipand Open Access that underpin all
our operations.

HIGHLIGHTS–– LSEG acquired Beyond Ratings, a specialist ESG
research company that specialises in fixed income
and government bond ESG solutions–– FTSE Russell launched Climate Adjusted World
Government Bond Index (Climate WGBI)–– FTSE Russell launched FTSE Custom Developed
Ex Korea SDG Aligned Net Tax (DSDG) Index–– In early 2020, FTSE Russell launched the FTSE TPIClimate Transition Index in collaboration with TPI
and the Church of England Pensions Board€5.8 billion

Commitment to tracking FTSE Custom Developed
Ex Korea SDG Aligned Net Tax (DSDG) Index“Sustainable investment
is now a key consideration
for investors globally.
In particular, the financial
implications of climatechange are now regularly
assessed as part of core
investment processes.
The Sustainable
Development Goals arealso becoming more
important for investors”
Waqas SamadGroup Director, Information Services

Impact Areas:
Disclose | Grow | Transition
Sustainable
Development Goals:

Further information
Our activities under Our Markets and Our
Services pillars are integrated with ouroperational activities. Details on these
initiatives can be found in our Annual Report
as identified by the following symbols:
Our Markets

M

Our Services

S

18

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

2019 Review
Our Services

Performance
Our People

Appendix

Our Communities

Our Services continued
FTSE Russell
Disclose
Transition

Acquisition of Beyond
Ratings

In June 2019, LSEG acquired Beyond Ratings, a specialist
ESG research company that specialises in fixed income.
This acquisition complements FTSE Russell’s existing ESG
index and data offering as well as the analytics tools

provided through The Yield Book. This will enable FTSE
Russell to further develop its multi-asset index solutions,
utilising Beyond Ratings’ sustainability data, risk models
and ESG research expertise.

Transition Pathway
Initiative

FTSE Russell’s partnership with the Transition Pathway
Initiative (TPI), an asset owner-led initiative that assesses
how companies are preparing for the transition to a
low-carbon economy, continued throughout 2019. This
included provision of FTSE Russell climate data, that is fullyaligned with the recommendations of the Taskforce of the
Climate-related Financial Disclosure (TCFD) and provided thebasis for TPI’s evaluation of companies’ management ofgreenhouse gas emissions and low-carbon transition efforts.

In 2019, FTSE Russell also hosted the TPI Summit, which saw
the launch of the annual State of Transition Report. Following
TPI’s selection as data provider for Climate Action 100+,an initiative backed by investors representing $35 trillion
in assets, FTSE Russell’s data is now being used to focus
investor engagement with ‘systemically significant emitters’
and companies well placed to drive the low-carbon
energy transition.

TPI Summit 2019

Smart Sustainability

2019 marked the sixth annual FTSE Russell global
institutional Smart Beta Survey report and the first year that
the ESG focused responses were used to create a separate
report on Smart Sustainability.

The findings demonstrated that there is continued strong
interest in applying Smart Sustainability factors into
investment strategies, with 83% of European asset owners
reporting that their organisation is currently implementing
or evaluating ESG considerations in their investment
strategy. The main rationale provided by asset owners for
ESG integration into smart beta mandates was to address
long-term risk management.

83%of European asset owners reported that theirorganisation is currently implementing or
evaluating ESG considerations in theirinvestment strategy

19

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

2019 Review
Our Services

Corporate Sustainability Strategy
Our Markets

Performance
Our People

Appendix

Our Communities

Our Services continued
Sustainable Investment
Indices
Transition

The FTSE Climate
Risk-Adjusted World
Government Bond Index(Climate WGBI)FTSE Russell worked with Beyond Ratings to develop the
Climate WGBI, the first government bond index to adjust
index weights based on each country’s preparedness andresilience to climate change risk. This index is derived fromthe FTSE WGBI, a widely used benchmark of investmentgrade sovereign bonds of 22 developed economies and uses

proprietary quantitative climate risk models developed by
Beyond Ratings, which was acquired by the Group in 2019.
The aim of the index is to allow sovereign debt investors toincorporate climate change risk considerations into theirportfolios and assist in enabling the economic transition toa low-carbon economy.
S

FTSE Custom SDG
Aligned Index

In 2019, FTSE Russell launched a new index, the FTSE
Custom Developed Ex Korea SDG Aligned Index. This wasdeveloped following close collaboration between FTSE
Russell, Pensioenfonds Detailhandel and BlackRock, and has
been designed to align a broad market equity benchmark

with aspects of the UN’s SDGs. This index was selected as thebasis of a new €5.8 billion developed market passive equity
fund managed by BlackRock on behalf of Pensioenfonds
Detailhandel.
S

Pensioenfonds Detailhandel opens the market in London

FTSE All-World Climate
Balanced Comprehensive
Factor Index

LGPS Central established its new All-World Equity Climate
Multi Factor Fund, bringing together an initial £2.1 billion of
AUM from The Cheshire and West Midlands Pension Funds.
The fund tracks the FTSE All-World Climate Balanced

Comprehensive Factor Index, which incorporates three key
climate change considerations: carbon emissions, fossil fuelreserves and green revenues.
S

LGPS open the market in London

Green Real Estate
Index Series

The FTSE EPRA Nareit Green Index Series allows investors
to integrate climate risk into their investment strategies
in listed real estate, an asset class that historically has lacked
such tools. The indices are based on asset-level, building-bybuilding aggregated data to provide a climate assessment
for each real estate investment trust.

In 2019, BNP Paribas Asset Management became the firstto license the FTSE EPRA Nareit Developed Europe ex United
Kingdom Green Index for an ETF.

20

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

2019 Review
Our Services

Corporate Sustainability Strategy
Our Markets

Performance
Our People

Our Communities

Our Services continued
Sustainable Investment
Indices

ESG Ratings and data
model

Since FTSE Russell launched its ESG Ratings and data model,
it has been used by a range of companies and investors to
help measure and improve ESG practices. In 2019, the first
ESG-focused ETF to be listed on the Taiwan Stock Exchange(TWSE) was launched based on the FTSE4Good TIP Taiwan
ESG index, which uses The FTSE Russell ESG Ratings anddata model methodology. This followed the adoption of theindex by the Taiwan Bureau of Labour pension fund in 2018.

FTSE UK 100 ESG
Select Index

In 2019, FTSE Russell launched the FTSE UK 100 ESG SelectIndex, measuring the performance of the top 100
companies demonstrating strong ESG practices within the
FTSE All-Share Index. This was developed as a response to

the growing global demand to incorporate ESG factors
as a core part of investment and stewardship approaches
and was selected by HSBC as the underlying benchmark
for a series of new ESG-related structured products.

TransitionS

New York Climate Week
Convene

LSEG Academy
Grow

Climate Finance &Investment Summit

As part of New York Climate Week in September 2019, LSEG
hosted the Climate Finance & Investment Summit, a unique
opportunity for investors to hear from senior leaders of someof the largest asset owners in the world. It also included
leading experts and practitioners on the challenges ofaddressing climate change for institutional investors such as

the Controller for the state of New York and the CEO of theJapanese pension fund GLIF. The event topics included,‘addressing climate change beyond equities: credit risk andfixed income portfolios’ and ‘creating a holistic, long-term
approach to climate risk: stewardship and engagement’.

LSEG Academy

As part of its continued work in support of emerging
markets, LSEG Academy, the training centre of London Stock
Exchange Group, has expanded the reach and scope of its
programmes in 2019.

The Academy also ran a training programme and issued
a report on Indian Smart Cities, in collaboration with PwC
for the Ministry of Housing and Urban Affairs, as wellas continuing its work with Tadawul senior management andSaudi Capital Market Authorities to provide training
on world-leading capital market practices particularly
on equity primary markets, regulations, surveillanceand corporate governance.

With the aim to embed ESG content in its emerging markets
support programme, in October 2019, the Academy ran
a five-day bespoke programme on Effective Corporate
Governance and ESG Practices to senior representatives
from the Ministry of Petroleum, and oil and gas corporates
in Kenya. The programme provided a view on how to design
effective governance frameworks and improve their ESG
practices, in order to attract international capital
markets funding.

Appendix21

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

2019 Review
Our People

Performance

Appendix

Our Communities

Our People
Developing our diverseand global talent to fulfil
their potential
The engagement of colleagues iscentral to our organisation. We relyon their skills and experience todeliver on Group strategy and createa culture that ensures we can attract,
retain and develop the best talent.

Highlights–– LSEG launched its ‘Inclusion Network’ (IN)–– Launch of Group Culture Dashboard reporting to Group
Executive Committee and Board–– First spring week programme for Science Technology
Engineering and Maths (STEM) students–– All Managing Directors received 360° feedback anddevelopment programmes

137%

share price appreciation for employees’
Sharesave maturities“We continue to foster aculture that reflects ourvalues of partnership,
innovation, integrity andexcellence to enable Groupwide collaboration andsupport the successful
execution of our strategy”
Tim Jones
Group Head of Human Resources

Impact Areas:
Develop
Sustainable
Development Goals:

22

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

2019 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Our Culture

Evolution of Our Culture

Develop

Culture continues to be a key strategic focus for the Group.
We aim to develop and embed a unified culture across ourbusinesses, supporting our vision: ‘To become the leading
global financial markets infrastructure group’. During theyear, the CEO and Executive Committee (ExCo) continued thedevelopment of a culture of collaboration, innovation,
feedback, learning and inclusion.
An action plan to support this includes:–– Working with Managing Directors (MDs) across the Group toembed new ways of working, with performance objectives
further developed to support the delivery of the Group’s
strategic objectives–– Making behaviour a key factor in performance assessment andusing insights from 360° feedback to strengthen development
reviews and plans–– Creating an environment of continuous learning anddevelopment for all employees through the Futures careerframework to encourage and support individual growth andcaree development

Group Culture Dashboard

These actions are supported by a strong set of values that
apply to all parts of the Group:

Our values are, in turn, supported by LSEG Behaviours which
are embedded into everything we do:–– Integrity (my word is my bond): Underpins all that we do– from our commitment to building and supporting global
markets based on transparency and trust to every transaction
across our business with each stakeholder–– Partnership (we collaborate to succeed): We pride ourselves
on working together as proactive partners, building positive
relationships with our colleagues, customers, investors,
regulators, governments and shareholders, for our mutual
success and the benefit of all–– Innovation (we nurture new ideas): We are ambitious andforward-looking market innovators, driven by fresh thinking
that has kept us ahead of change. We invest to make sure that
our markets and services are constantly developing andevolving with advances in technology–– Excellence (we are committed to quality): We are committed
to developing talented teams who deliver to the highest
standards in all that we do. By collaborating, we will sustain
industry-leading levels of excellence–– Focusing on Results: We pursue business goals, takeaccountability and drive success–– Using Commercial Judgement: We know the business,
think globally and apply a commercial mindset–– Creating Value: We identify opportunities and innovate tocreate sustainable value for LSEG and its customers–– Leading Change: We manage change, provide the context
for change and show adaptability–– Building Effective Relationships: We understand andaddress stakeholder needs, collaborate with and influenceothers–– Developing Talent: We develop ourselves and others andbuild high performance teams

The introduction of the LSEG Behaviours as part of the
Futures career framework provides us with a strong
foundation on which to build. We are better able to articulate
what we expect from individuals at every career stage interms of skills, knowledge and behaviours.

In 2019 we developed a Culture Dashboard to measure andassess our culture and ensure full alignment to the Group’s
values and behaviours. The Dashboard provides our Board
and ExCo with a quantitative way to measure and assess
progress over time, using data gathered from our ‘Have Your
Say’ employee engagement survey and other sources. The
Dashboard focuses on five key areas:

The table below shows our performance against one of the indicators from each area from the Group Culture Dashboard:–– Recruitment & On-Boarding: We recruit individuals withthe right skills, behaviours and mindset to support our strategy
today and in the future–– Performance & Development: We set individual goals thatare aligned with enterprise wide objectives and supported
by a strong organisational learning culture–– Talent & Mobility: We identify, nurture, and retain talent,
leveraging internal mobility to provide the right talent, in theright role, at the right time–– Diversity & Inclusion: We encourage an inclusive
environment, where diverse perspectives are welcomed, andall colleagues can be their best selves at work–– Leavers: We use the insights from our leavers to improve
future recruitment and reduce turnover

Focus area

Indicator

2019

2018

2017

Recruitment &On-Boarding% of new joiners who
understand LSEG’s values

99%

97%

NA1

Performance &Development

Hours spent on training

74,77063,15041,675

Talent & Mobility% of roles filled internally

25%

23%

14%

Diversity & Inclusion% of respondents that agree people from all
backgrounds feel welcome

84%

81%

N/A1

Leavers% of leavers that cited work-life balance as
primary reason for leaving

7%

5%

N/A1

1. Survey data from 2017 not available

23

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

2019 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Attracting the best talent

Recruitment

Attracting, developing and retaining the right skills,
behaviours and diversity of talent is a key focus for the Group.

To ensure we employ people who are not only highly skilled
technically but also demonstrate the right values andbehaviours, we created and implemented an interactive

Graduate and Early
Careers Programmes

Our Graduate and Early Career Programmes continue to help
fuel our growth and diversification. We have 39 graduates
on programmes globally, and this year hosted over 150
internships across six locations, with Early Careers
Programmes implemented in Taipei, Hong Kong andRomania for the first time. Gender diversity was a focusof pipeline development at this level too: throughout 2019we held events to encourage women into finance andtechnology, resulting in 54% female representation acrossthe global graduate class.

We have continued to focus on improving the experience for
the Group’s graduates with the introduction of a new ‘LSEG
Connect’ mobile app for our Early Career Programmes. This
provides an interactive and informative way of connecting
prior to and during programmes.

DevelopOur graduate programmes provide structured learningand professional development opportunities throughtraditional classroom training, mobile learning,
networking opportunities, on-the-job experienceand formal industry qualifications.

Supporting our people intheir careers
Develop

Developing our people

The most recent employee engagement survey results
confirm that career progression and access to training anddevelopment are still significant drivers of engagement.

In 2019 we also ran our first Spring Week programme forfirst-year students studying STEM (science, technology,
engineering and mathematics) subjects to encourage
broader engagement earlier in the pipeline of recruitment;
and this is being expanded in 2020. Additionally, wecelebrated National Intern Day with the global graduate class
to recognise the contributions and new perspectives ourinterns bring to the workplace while developing professionallyand building networks for their future careers.

The global Career Framework provides:–– Colleagues with an opportunity to develop their careersand grow their skills by being able to view roles across ourorganisation, as well as the skills, experience andbehaviours associated with that role–– Managers with the framework to enhance development
conversations, assess performance and think about talentand succession to improve internal mobility–– The organisation with the ability to manage costs andcreate effective structures, to grow strategic capabilities
and develop talent pipelines

interview tool kit and introduced training to help hiring
managers assess candidates against the full range of our
expectations.

LSEG celebrates national intern day 2019

Recognising the importance of developing a strong pipelineof internal talent, we increased our focus on supportinginternal mobility and improving our succession planningin 2019, with 25% of roles filled by existing employees.

25%of roles filled internally in 2019

24

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

2019 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Supporting our people intheir careers

Learning andDevelopment

Aligned to our career framework structure, we launcheda number of online programmes, to assist development
globally. All colleagues have access to LinkedIn Learning andIntuition Knowhow – leading libraries of online learning that,through Workday Learning, enable learning at any time.

Over 3,300 hours of training were accessed in the first threemonths following the launch. In addition, we continued
to invest in development of technical and professional skills
across a range of areas.

Mentoring

Our Mentor Exchange programme enables participationin structured mentoring relationships and since its launch
in 2016 we have supported over 1,100 colleagues. In 2019
we introduced Mentor Exchange Connect, a global virtual
mentor exchange, to enable greater connectivity across ourworldwide business locations and to encourage further
Group-wide collaboration and in 2019, we supported morethan 300 mentoring partnerships across 10 countries.

Developing our culture requires a significant shift in how
we manage and lead our business. We have supported thedevelopment of both leadership and management
capabilities and continue to invest in these skills in orderto strengthen our succession pipeline and collective
Group leadership.

leadership capabilities. Based on questionnaire results andqualitative feedback from their peers and teams, sourced
through a network of executive coaches, each MD received
a personalised report detailing their strengths and areas fordevelopment. As a result of this process, every MD now has
a plan for their ongoing development which they will review
regularly, and bespoke development programmes will berolled out in 2020.

We have also invested in our Line Manager capability with our
first global management development programme. During
2019 over half of our line managers attended the programme,
which enhances managers’ ability to coach, develop anddelegate effectively. Cohorts are drawn from across ourbusiness divisions to maximise the opportunity to aid
collaboration.

direction2. Equally, colleagues reported confidence inmanagers, reflecting our strong focus this year on supporting
career development as well as improvements in the way
we manage performance and give feedback3.

The feedback provided has helped to shape our engagement
efforts and will provide us with four areas of focus in 2020:
reinforce and clarify our purpose and vision for ourcolleagues; deliver our MD programme and continue toembed and build our Manager Excellence programme; seek
further ways to build collaboration and ways of working; and,continue to embed processes to support colleagues’ careerdevelopment.

Develop

Investing in our leaders

In 2019, we made an investment in our MD population, withall MDs participating in a 360° feedback process around theirEngaging our people
Develop

Employee Engagement

Employee engagement includes an annual engagement
survey; a colleague forum which is led and attended byelected volunteers from our workforce; townhalls and ExCobreakfasts which are open to all employees and held
regularly throughout the year; and an Employee-Board
consultation process which was launched in London in 2019.
The engagement survey enables colleagues to share theirviews on what it is like to work for LSEG and provides a clear
indicator of employee engagement. The overall response rateof 84% in 2019 was our highest to date.
The Engagement Index score of 81%, up six points from 2018,provides strong evidence that our colleagues care about the
future of the Group and take pride in the organisation as aplace of work1. Colleagues reported that their perceptions ofleaders had been positive over the year, driven by a belief that
the Group was well led and that senior leaders provided clear

Our 2019 survey also showed that LSEG colleagues fromall backgrounds feel welcome, supported and able
to be themselves at work, as well as being able to strikea good work/home life balance. This gives us confidence that
our continued efforts to foster greater diversity and inclusion
have been well received so far4.
Our Employee-Board consultation process involves direct
discussions between employee-nominated representatives
and members of our Board, focusing on specific issuesof interest to colleagues. In 2020, we will roll this out acrossfurther locations.

300+

mentoring partnerships
were supported in 20191. 	“I care about the future of the Group” (94%) and “I am proud to say I work
here” (90%)
2.	“I believe the Group is well led” (70%) and “Senior leaders provide a clear
vision of the overall direction of the Group” (61%)
3. Manager Index 70%, up 7pts from 2018 and +3pts on Global average
4 .	“People in my work area are welcoming and open-minded” (82%) and“People from all backgrounds are made to feel welcome here” (84%) and “I
am able to strike the right balance between my work and home life” (70%)

25

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

2019 Review
Our People

Corporate Sustainability Strategy
Our Markets

Our Services

Performance

Appendix

Our Communities

Our People continued
Diversity and Inclusion

Diversity and Inclusion

Develop

We recognise that fostering a culture of inclusion empowers
our people to express their best selves and creates anenvironment in which all opinions and ideas can be heard,
allowing us to work more effectively together across theorganisation and strengthen Group-wide collaboration andinnovation. Colleagues are recruited and helped to develop
their careers regardless of age, gender, nationality, culture or
personal characteristics.
The Diversity and Inclusion (D&I) Committee is chaired by
our Chief Risk Officer and meets quarterly to review strategy
and progress. In 2019, we launched our global Inclusion
Network (IN) to act as an umbrella network for groups
including our Black Employee Inspired Network Group(BEING), LGBTQ+ network, Parents network, disability

Gender diversity

network (Ability) and our Women Inspired Network (WIN).
Each network in every region will have a representative on
IN, and representatives will meet quarterly.
In 2019, we ran an Inclusion Week, during which the Group
took the opportunity to celebrate all aspects of diversity.
Events ranged from panel sessions in Italy, London andTokyo, to interactive sessions in Sri Lanka and multiculturaldays in Kuching. We also organised networking sessions,
Parent and Carer workshops and a global webinar promoting
flexible working. To drive greater awareness of the diversity
amongst colleagues, we marked Black History month withspeakers and events, sponsored Pride London and celebrated
several festivals and events of significance to our colleagues,
such as Eid, Diwali and Hanukkah.

The Group was an early signatory of HM Treasury’s Women in
Finance Charter in the UK, and we set ourselves a stretch targetof reaching 40% female representation in our senior leadership
population by the end of 2020. We have made good progress and LSEG plc Board
are committed to working towards this target. In terms of female
LSEG Subsidiary Boards1,3
representation at Board level, the Hampton-Alexander report
recognised the Group for making significant improvements
ExCo and Leadership Teams2,3
that have led to women comprising 31% of our Board.

2019

Launch of global Inclusion Network (IN)2018

FemaleMale

Female

Male

4

9

3

10

31

132

22

116

140

291

134

295

1,577
2,957
All other colleagues
1,435
In 2019 we refreshed our manager interview skills training tocreate a more inclusive hiring process and introduced new
1,717
3,248
Total
1,569
technology that facilitates the review of job descriptions andpromotes the use of gender-neutral language in our recruitment 1. Mix of employees and Non-Executive Directors
advertising. We have also promoted initiatives to identify and2. Executive Committee and Leadership Teams in LSEG
3. 	The LSEG Subsidiary Board members and the members of the Executive Committee and Leadership Teams
develop female talent including working with the 30% Club
together comprise the ‘Senior Managers’ for the purposes of section 414C(8) (c)(ii) of the Companies Act 2006
mentoring scheme and supporting the continued global
4. Total comprises ExCo and Leadership Teams and All other colleagues
expansion of WIN. These initiatives resulted in the proportion
Note: Figures as of year ended 31 December 2019.
of female candidates hired externally rising from 37% in 2018
to 38% in 2019. At senior manager level this proportion was 41%.
4

Gender Pay Gap Report

At LSEG, we conduct equal pay analysis as part of our annual
pay review process and are confident that we do notdifferentiate pay between men and women who perform
equivalent roles. We have a Group-wide reward framework,
which establishes the compensation structure, elements andleverage for each stage in our career framework. This is used
to review any potential gender bias as part of our annual pay

review process. However, we acknowledge that we do have agender pay gap, due to the unequal distribution of men andwomen across the company. We go beyond UK statutory
disclosure requirements to increase transparency, provide amore accurate picture of our gender pay gap and establish amore meaningful baseline against which to track progress.
Our 2019 global gender pay gap mean stood at 23% and

2,723
3,018

median 10% in 2019. The biggest factor behind our gender
pay gap continues to be the fact that there are fewer womenin senior positions. A report on gender pay gap was publishedin March. This report can be found here: www.lseg.com/
about-london-stock-exchange-group/corporatesustainability

26

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

2019 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Diversity and Inclusion

Armed Forces Covenant

LSEG signed the Armed Forces covenant in 2017, anassurance that those who serve or served in the armed forces,
and their families, will be treated fairly and notdisadvantaged. In 2019 LSEG sponsored the Entrepreneur
category and was part of the judging panel for the Soldering
on Awards.

In July 2019 LSEG were proud to host the Cadets Enterpriseconference and certification for Army cadets who completed
the Enterprise For life Army Cadets Forces course to help the
young entrepreneurs take their first steps by giving guidance
and practical support.

In the past five years XFE has supported over 1,250
community members in starting and building their own
businesses, and run training, events and mentoring
programmes. In addition, LSEG sponsored the Christmas
Carol Concert at St Columba’s Church in aid of Supporting
Wounded Veterans, and took part in the annual Poppy Appeal
organised by the Royal British Legion with donations
matched by LSEG Foundation.

Rewarding our people

LSEG’s reward strategy focuses both on the short term,
through an annual bonus scheme linked to our global
performance management approach, and on the medium
term through share schemes aimed at senior management
and the wider workforce. The Long-Term Incentive Plan,
details of which can be found on page 108 of our Annual
Report, aligns the performance and reward of senior
management with the Group’s ongoing performanceand growth.

savings to buy LSEG shares at a discounted price. In 2019
we also launched SharePurchase to permanent employees
in Australia and Romania. Under this plan, colleagues canpurchase up to £500 per month of LSEG shares and areawarded additional shares which vest after the completionof a three-year plan cycle.

We endeavour to develop a remuneration policy that isaligned to good market practice and corporate governancedevelopments and which continues to promote the long-term
success and cultural agenda of the Group; both for LSEG as astandalone company and in the event that the proposedtransaction of Refinitiv completes. The Remuneration
Committee continues to place great importance on ensuringthat there is a clear link between pay and performance,
including a focus on culture, adherence to the Group’s risk
framework, and that our remuneration outcomes arereflective of this wider context. More information on our
Remuneration policy can be found on pages 98–128 of
our Annual Report.

Develop

RewardDevelop

Sharesave, our principal employee share ownership scheme,
is available to all permanent employees across France, Hong
Kong, Italy, Malaysia, Sri Lanka, the UK and the US.
Colleagues can save up to £500 or equivalent per month,with the option after three years of using their accumulated
Supporting our people’s
wellbeing

During 2019, almost 600 employees across six countries
benefited from Sharesave maturities including share priceappreciation of 137%, reflecting the Group’s performanceover the previous three years. Participation was extended
further, with almost 1,100 employees joining the 2019
scheme, increasing overall participation to over 59% of
eligible employees.

Wellbeing

LSEG’s Wellbeing strategy is designed to provide a dedicatedframework of awareness and support centred around fivepillars: Emotional, Physical and Financial Wellbeing,
Workplace Choice and Social Purpose. This has enabled us tofurther develop a collaborative and supportive environment
for all colleagues, as recognised in the ‘Have Your Say’ survey
which recorded a Wellbeing Index four points higher than the
global average.

Emotional Wellbeing

Throughout 2019 we worked with Mindfulness at Work, to run
sessions on mindfulness for colleagues globally, while in
London we aligned with the Green Ribbon Campaign whichaims to help end the stigma around mental health.

We have also rolled out our Global Employee Assistance Plan
to extend support for all colleagues across the Group andensure they have access to the resources they need.

Physical Wellbeing

We introduced seven new Active sports clubs in 2019 and hosted
various events including interactive seminars on nutrition, desk
yoga and stress management to help colleagues gain a better
understanding of their physical health.

Develop

We work with a range of strategic partners who provide
advice and help to strengthen our Wellbeing framework,
to ensure we are offering our colleagues the best support,
tools and services.

27

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

2019 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Supporting our people’s
wellbeing

Financial Wellbeing

Across the Group we hosted Financial Wellbeing seminars
and workshops targeted at different life stages and covering
a range of topics, from student loan repayments topensions advice.

Social Purpose

We are committed to giving back to our local communities
and offer a number of ways for our people to do this, such asoffering employees two paid volunteering days each year
and running charitable events through the LSEG Foundation.

More information about our work in this area can be found in
the Our Communities section of this report.

Workplace Choice

We understand that striking the right work-life balance isessential for the wellbeing of our people; and we recognisedfrom the results of our engagement survey in 2018 that thiswas an area where we needed to do more.

In 2019, through our Workplace Choice programme forexample, we made progress in promoting our flexible working
policy across the Group. We hope to foster an environment
in which colleagues can feel able to leverage the policy easily
if required.

Health and Safety

In 2019 we have extended the electronic workstationassessment system to cover our Sri Lanka sites, as well as oursmaller Edinburgh office. We have plans to roll this systemout further in 2020.

In Italy, ISO 45001:2018 accreditation was successfully
achieved for our Milan offices for four of our businesses andin 2020 there are plans to achieve this ISO accreditation for
all entities at our Milan offices.

In terms of contractor management within our Property
team we have rolled out an electronic permit to work system
to our UK office sites giving us greater scope to manage andmonitor contractor works on site. Further work in 2020 will
look to broaden usage of the system to other departments.

We completed a tender process for health, safety andenvironmental support with a new contract in place for the
next three years, and including additional embedded
resources, which reflect the growing nature of business.

On 31 December 2019, the Group employed 4,981
employees, up 9% from the end of the previous reporting
period, mainly due to the expansion of our Business
Service centres in Romania and Sri Lanka to support
our growing global business. During the year we alsoacquired Beyond Ratings. On an organic basis,
we can report on the following KPIs:

Employee-based indicators

2019

2018

2017

New Hires

1,194

978

1,228

Voluntary Turnover

10.5%

11.0%

9.5%

Permanent contracts

98%

98%

97%

Fixed term contracts

2%

2%

3%

Develop

Health and Safety
DevelopOur People in Numbers
Develop

The Changing Employee
LandscapeIn 2020 we will be conducting a global audit across all officesites to measure compliance with the Group Health and
Safety Framework. We also aim to undertake a project toevaluate electronic systems that would allow for monitoringof global health and safety compliance, as well as incident
and near miss reporting via a cloud-based system. This aims
to enhance our ability to measure, maintain and monitor
health and safety globally.

28

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

2019 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Women Inspired Network(WIN)
Develop

WIN Pillars

LSEG’s Women Inspired Network (WIN), now in its fourthyear, continues to nurture female talent at all levels across
our offices in Asia, Canada, France, Italy, Malaysia, Sri Lanka,
the UK and US. WIN is composed of three pillars, Winning
Communities, Winning Networks and Wining People. Local
sub-committees of active volunteers organise initiatives
across the three pillars and connects the network globallyto ensure LSEG remains an employer of choice for womenand men.

Winning Communities
We aim to inspire female leaders of
the future. WIN has worked with localgroups across the world such asBlue Engine Teaching Apprentices (BETA) in New York and
Italy’s Young WINners program. We have also run events suchas breakfast sessions to educate female students about thevariety of roles available within the Group and give them achance to meet colleagues in these roles.

Winning Networks
We aim to build relationships with otherdiversity networks and increase networking
opportunities for WIN members, for example,
through events like our client networking event in partnershipwith ELITE hosted in London in 2019.

Winning People
We aim to nurture talent within the businessand provide all employees with the best chanceof succeeding in their career through relevant
events, such as WIN UK running workshops to help people
get the most out of their end of year evaluations and theirpersonal development discussions.

WIN Americas
Hosted their second WIN Week in 2019. The focus was on professional development and championing inclusion with workshops on combatting imposter syndrome, celebrations
for International Men’s Day and highlighting other diversity networks across the Group.
WIN France
Hosted a series of coaching sessions across the year for its members including workshops on self-confidence and public speaking. They also ran sessions with high school students
in partnership with Crée Ton Avenir to discuss their careers and inspire young women.
WIN Italy
In collaboration with LSEG Academy in 2019 have made 10 seats in the Corporate Finance and Financial Markets training programme available to people temporarily unemployed,providing an opportunity for them to upgrade their skill set and foster their network to help reposition themselves in the workforce. WIN Italy, in collaboration with the UK Embassyin Italy and Freshfields hosted the second Italian Women in Finance Awards. The initiative aims to celebrate female talent and diversity in the finance industry in Italy.
WIN Malaysia
Celebrated its first anniversary in December and throughout its first year put on speaker series with senior management on topics around professional and personal development
as well as running awareness campaigns for Breast Cancer awareness.
WIN Sri Lanka
Following a successful launch in 2018, WIN Sri Lanka expanded its membership in 2019 and ran a number of events ranging from sessions on networking and achieving a goodwork-life balance to practical lessons teaching basic self-defence techniques.
WIN UKIn March we welcomed State Street Global Advisors to open the London market and unveil the Fearless Girl statue in Paternoster Square. Fearless Girl is the now iconic statue thatwas first unveiled in New York in 2017. It was commissioned by State Street Global Advisors to raise awareness about the importance of gender diversity in corporate leadershipand on boards. To celebrate International Women’s Day and the arrival of the Fearless Girl to London, employees were asked to nominate a female colleague who they thoughtdemonstrated the spirit of the Fearless Girl.

29

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Our Communities
Empowering people,
enriching communities
As our global presence grows,
we monitor our impact on thecommunities around us and how
it aligns with our strategy and values.
We aim to promote sustainable
practices and support local
communities and the environment
where we have a significant businesspresence.

Highlights–– LSEG Foundation donated £1.4 million to charities in 2019–– Launched volunteering initiative for SMEs in partnershipwith Centre for Entrepreneurs as part of their NEF Fast
Track programme–– LSEG Foundation Challenge launched in October 2019–– Lindenfeld Association Ajungem Mari chosen as
Romania charity partner

20%

of our global workforce volunteered in 2019

“As our global footprint
continues to grow, wemust continue to engage
with the increasing
number of communities
where we operate,
supporting them throughour volunteering and othercharitable initiatives”
Diane Côté
Chief Risk Officer

Impact Areas:
SustainSustainable
Development Goals:

30

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Our Communities continued
LSEG Foundation

LSEG Foundation

Sustain

LSEG Foundation was established in 2010 to be the single
channel for the Group’s charitable giving and a focal point for
staff engagement with charities. Its core mission is toempower people and enrich communities. More informationon the Foundation’s strategy can be found on page 33.

celebrated on Foundation Day, which showcases the work of
the Foundation and its partner charities globally and in 2019,
raised over £700,000 for charity, by donating a day’s
equivalent of all equity trading fees raised on London Stock
Exchange, Turquoise and Borsa Italiana.

The Foundation focuses on projects that help young anddisadvantaged people reach their full potential by developing
life skills and business acumen. Additionally, as our global
presence grows, we continue to engage and give back to thecommunities we operate in. Partnering with local charities
allows LSEG Foundation to have a long-lasting impact.

New initiatives:
The LSEG Foundation Challenge took place from 1 September
to 31 October 2019 and saw colleagues compete in two areas,
the Regional Challenge, which measured the proportion ofvolunteering hours donated by staff in each region and theMost Innovative Challenge, where volunteering initiatives
from across the Group were evaluated by regional charity
chairs and the LSEG Foundation Board against three criteria:innovation, collaboration and impact.

We recognise the importance of volunteering and encourage
employees to take their two paid volunteering days eachyear. Charitable fundraising can also be increased throughthe matched funding scheme enabling us to make an evenlarger impact. This year we introduced a range of initiatives
to encourage employees to give back which were then

Partner Charities

This year we also launched a volunteering initiative inpartnership with the Centre for Entrepreneurs the UK’s
leading entrepreneurship foundation, as part of their NEF(New Entrepreneur’s Foundation) Fast Track programme. This
programme, in collaboration with LSEG, enabled five young
entrepreneurs from diverse backgrounds in the UK to benefit
from business coaching and mentoring. They then had theopportunity to present a business pitch to a panel and twoof these entrepreneurs won places on our ELITE platform
to support the future growth of their businesses.

The Regional Challenge saw over 2,400 volunteering hours
donated by more than 400 LSEG staff during the two-month
period, with Malaysia the winning region, receiving an

Global Partner - UNICEF

Building on a long-standing partnership between UNICEF and
FTSE Russell, part of LSEG’s Information Services division,
LSEG Foundation appointed UNICEF as its global charity
partner in 2015. A key project between LSEG and UNICEF is
Zambian Girls 2030, in alignment with our diversity andinclusion strategy, which aims to equip more than 11,000
Zambian girls with employability skills and help them accessformal employment. This project enables girls to realise theirpotential through mentoring, entrepreneurship and financial
literacy training. This year LSEG staff from the Foundation
board had the opportunity to visit Zambia and see the impactof our support, which to date has supported almost 15,000
students overall to participate in career development
activities.

UK Partner – SchoolHome Support

School-Home Support (SHS) provides support to families andchildren that face barriers to education and improveengagement in learning and attendance. The charity’s
frontline staff are based in primary and secondary schools,
where they work to help overcome the damaging effects
on children such as poor housing and domestic violence.

During 2019, LSEG’s donations, fundraising and volunteering
have enabled SHS to run group sessions for children andparents on a variety of issues such as healthy eating,financial management and parent employment workshops.
LSEG volunteers helped run sessions for over 300 children,
while LSEG Active members raised over £7,700 through cakesales and sponsorship.

Sustainadditional grant to support their chosen charity in 2020. The
Most Innovative Challenge was won by a team in Romania forrunning eco workshops for orphaned children, the team also
won an additional grant for their chosen charity.

LSEG also contributes to the UNICEF UK Children’s Emergency
Fund and is involved in different volunteering initiatives suchas the Water Walk Challenge.

SHS students at the Foundation Day market open in 2019

31

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Our Communities continued
Partner Charities
Sustain

US Partner –City Harvest

City Harvest, New York City’s largest food rescue organisation,
helps to feed the more than 1.2 million New Yorkers who arestruggling to put meals on their tables. In 2019 New York City
colleagues took part in City Harvest’s Greenmarket Rescue,an event to redirect leftover food from the Union SquareGreenmarket to local food pantries. In total, our volunteers
salvaged just over 9,550 lbs of food, which was then delivered
to a food pantry in Coney Island.

Staff also participated in City Harvest’s annual Repack
to Give Back event. LSEG volunteers packed 588 boxesof Thanksgiving food that was distributed to 2,300 people
over the holiday season.

LSEG staff pack boxes of food for City Harvest

Regional Charitable Giving
and Volunteering
SustainFrance Partner –Crée Ton Avenir

Crée Ton Avenir focuses on reducing the impact of
disadvantaged backgrounds on students’ education andfuture careers, with 2019 the first year of LSEG’s partnershipwith the charity. In December 2019, LSEG volunteers incollaboration with WIN France ran a session on career
aspirations for a group of young women from three of Crée
Ton Avenir’s partner schools. Colleagues in France took partin a team and technology focused activity, where they

Italy Partner –Associazione
CAF Onlus

CAF Onlus, a charity that provides support and aid for abused
minors and distressed families, started as LSEG’s new Italy
Charity Partner in May 2019.

Volunteers from LSEG ran sessions with CAF Onlus to educate
residents on CV and interview technique and helped withroutine maintenance of the residential buildings.

Romania Partner –Lindenfeld Association
Ajungem Mari

Through our first partnership in Romania, ‘Happy Placeto Grow Great – Educational Centre’, Ajungem Mari aims
to create an educational centre for institutionalised children
from Bucharest, a place where they can feel free, encouraged

and supported to develop their skills and discover new ideas
for their futures. Through this project there has been regularmanufacturing, science and computer skills workshops
organised by LSEG volunteers working with an educational

UK

LSEG organised the fifth annual touch rugby tournamentin 2019 in partnership with the Harlequins Foundation,a charity that aims to use the power of sport to create
opportunities for young people in local communities.

This year the tournament raised £40,000 and involved
eight teams from across the City of London. Since thetournament’s inception in 2015 almost £200,000 has beenraised for the Harlequins Foundation and LSEG
partner charities.

LSEG took part in the annual Movember campaign, whichraises vital funds and awareness to help tackle the biggest
issues in men’s health. In seeking to make the campaign
more inclusive we ran this alongside The Eve Appeal,a leading UK charity focusing on the funding, research andawareness of gynaecological cancers. Fundraising activities
took place across our regions including our launch event,where ambassadors shared some of their personal
experiences, a Lunch and Learn awareness session andthe annual Movember dodgeball tournament.

Charity Touch Rugby
Tournament

Movember and
The Eve Appeal

worked with students to install hard-drives and clean
up operating systems. This educated students as wellas encourages sustainability by recycling old equipment.

specialist. In 2019, these volunteers also carried out a rangeof other activities including organising picnics, games,
workshops and IT classes.

Team LSEG at Movember dodgeball tournament

32

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Our Communities continued
Regional Charitable Giving
and Volunteering
SustainUS
Pilgrims’ Inn

Pilgrims’ Inn assists members of the local community who
are homeless or at risk of homelessness through housing
solutions, emergency assistance, childcare and job readinesssupport. In partnership with WIN Americas, colleagues in Fort

Mill took part in a team-based, competitive donation drive.
Fort Mill colleagues were assigned teams and a list of items
needed by Pilgrims’ Inn. The result was plenty of friendly
team rivalry, and importantly, overflowing donation bins.

Pilgrims’ Inn competitive donation drive

Italy
ADMO –
Bone Marrow Donors
Association MilanFranceNew Uses for Old Screens

Sri Lanka
Micro-volunteering

Malaysia
Dyslexia Associationof Sarawak (DASwk)
Green Week
Sustain

LSEG Green Week

In September, LSEG colleagues participated in the
Associazione Donatori di Midollo Osseo (ADMO) Donor Day
and attended talks about the importance of bone marrow

donation. Colleagues also took part in a Midnight Jazz Festival
which gave a platform for both ADMO and Associazione CAF
Onlus to raise awareness of their work with the public.

Colleagues in France thought up an innovative way to help
both the environment, and a range of charities, by saving
over 200 retired desktop screens from being sent to landfill.
The screens were cleaned and carefully packed by LSEG

volunteers and given to a number of charities, includingFrance’s partner charity Crée Ton Avenir, to be distributed
to children from disadvantaged backgrounds.

In 2019, several micro-volunteering events were organised
to benefit local communities. Examples of these initiatives
included volunteering at a sports day for disabled children,
tree planting, running events to encourage students topursue a career in technology and participatingin community clean-up projects. Sri Lanka are now
in the process of choosing a partner charity.

DASwk advocates for children and individuals affectedby dyslexia and other learning disabilities by promoting
awareness and running educational programmes.

Volunteering activities in 2019 included a community
clean-up project at the Learning Resource Centre. Malaysia
are now in the process of choosing a 2020 charity partner.

In October 2019, LSEG ran a global Green Week. This involveda series of events and initiatives aimed at promoting
awareness of green and sustainability related issues to ourstaff around the world as well as a number of sustainablelinked charitable initiatives. This culminated in an externallyfocused event launching our Green Equity Mark (see page 14)
and Sustainable Bond Market (see page 15) as well as our
Sustainable Finance and Investment Summit.

Highlights from the week included:–– Interactive demonstrations on energy efficient lighting
and reducing food waste–– ‘Dress for Success’ – employees donated interview-readyclothing to help the long-term unemployed–– Sustainable finance business briefing
LSEG colleagues help sort recycling as part of Green Week

33

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Our Communities continued
Community Contributions from the Group in 2019
Based on the London Benchmarking Group (LBG)
methodology, we report our donations and other factorsthat reflect the Group’s overall engagement with ourcommunities.
In 2019, the Group made an overall donation to LSEG
Foundation of £1,616,000 which is 29% higher than 2018. An
additional £130,000 was donated directly to charities by theGroup, bringing total donations to £1,746,000, 20% higher
than 2018 spending. The 2019 Charity Trading Day raised£707,000, 15% higher than 2018.
Principal sources of funding 2019
Employees make donations and organise
fundraising events

Foundation Day

The Group donates the equivalent of allequity trading fees raised on London Stock
Exchange, Turquoise and Borsa Italiana
during the annual Foundation Day

Fines

Empowering people. Enriching communities.
Foundation Priorities
1. Help young people realise their potential, despite
their situation or disadvantage

Business Priorities
1. Delivering best in class capabilities

2. Help more young people access the job market,
overcoming barriers posed by their condition

2. Developing a partnership approach

3. Help more young people aspire to become
entrepreneurs, as a way of expanding theirlife opportunities

3. Driving global growth

Encouraging growth. Expanding opportunities.

Employees

Corporate

How LSEG Foundation’s strategy aligns to our business priorities

The charitable donations from othercompanies in the Group contribute to
the Foundation’s donation pool
Money received through fines levied by
the Group

LSEG community
investment charitable
donations

2019
£’000

2018
£’000

2017
£’000

Donations to LSEG Foundation

1,616

1,254

1,122

Donations to charity

130

207

107

In-kind donations

141

143

136

Management costs

131

194

238

Total

2,018

1,798

1,603

In 2018, LSEG Foundation Committee set out a list of
strategic priorities for 2019-2022, supported by an action
plan based on four focus areas: i) Maintain deep alignment
with our mission; ii) Encourage colleagues’ engagement andenhance a culture of collaboration; iii) Invest in businessinclusion and entrepreneur skills; iv) Invest in bringing LSEG
philanthropy programme alive. These priorities support andsharpen the overarching LSEG Foundation strategy,
set out above.
We also identified a further three elements connected toour community engagement: in-kind donations, free venue
hire for charities at our premises in the UK and Italy;
management costs, the cost of time of the managers
involved in our Board of Trustees; and charity committees
across the Group, our Foundation’s programme office andthe corporate functions that support staff engagement
programmes. Donations from LSEG Foundation.
In 2019 London Stock Exchange has scaled up its
volunteering programme, based on the strategic
programme approved in 2018. Based the achievement in2018 of the initial 2020 15% target in terms of proportion of
the employee base involved in volunteering, in 2019 weraised the 2020 target to 25%. In 2019, 1075 employees
across seven regions, equivalent to 20% of LSEG colleagues,
were involved in volunteering activities.
Donations from LSEG Foundation
Total grants approved and paid reached £1,379,000. In
addition to the grants to the Group partner charities acrossFrance, Italy, the US, the UK, Romania and the major
grant to the Group global partner charity UNICEF,
more than 60 grants for charities identified and put
forward to LSEG Foundation by LSEG employees across theUK, the US, France and Italy. This amount includes the small
grants disbursed as part of LSEG Matching scheme, which
doubles the funds raised by employees through fundraising
initiatives, up to £2,000 per year per person (€2,000 in Italy).
In 2018, £102,000 were raised by our employees andmatched by LSEG Foundation.
Impact reporting
Given the strategic objective of maintaining deep alignment
to the mission included in the 2018 strategy review, we’ve
continued measuring the alignment of our grant-making
activity with the LSEG Foundation’s mission, with particularreference to the one-off donations recommended by the
Regional Charity Chairs to LSEG Foundation’s Board. In 2019,
mission alignment was 90% (+1% versus 2018). The
remaining 10% of donation are related to wellbeing (asopposed to life skills and business enterprise). Based on the
LBG impact reporting framework, we ask charities to reporton three types of impact to help aggregation across different
project categories.
1. Behaviour or attitude change
Has the activity helped people make behaviouralchanges that can improve their life or life chances or
has it challenged negative attitudes or preconceptions,enabling them to make wider, different or more
informed choices?
2. Skills or personal effectivenessHas the activity helped people to develop new, or improveexisting, skills to enable them to develop in the workplace,academically or socially?
3. Quality of life or wellbeing
Has the activity helped people to be healthier, happier ormore comfortable (e.g. through improved emotional, social
or physical wellbeing)?
90% of LSEG Foundation grants were directed to projects
that are in line with LSEG Foundation’s mission, called impact
areas. Those aimed at behaviour or attitude change, termed‘raised aspirations’, 32%, or at the development of skills
and personal effectiveness, 68%. The small percentageof ‘Quality of life or wellbeing’ donations (15%)
is in response to emergencies (UNICEF Children’s
Emergency Fund).
Impact of LSEG Foundation grant on beneficiaries
15%
32%

Behaviour or attitude change
Skills or personal effectivenessQuality of life or wellbeing

68%

Within impact areas 1 and 2 (‘Behaviour or attitude change’and ‘Skills or personal effectiveness’), donations are perfectlyaligned with our mission.
Target skills to be developed with our donation
Employable or enterprise skills
Life skills

25%

75%

75% of the donations are aimed at increasing theemployability of the beneficiaries or at developing financial
or business skills, for which the UNICEF Zambia project playsa large role. 25% is focused on developing life skills.

34

London Stock Exchange Group plc
Group Corporate Sustainability Report 20193.

Overview

Corporate Sustainability Strategy

Our overall
Corporate
Sustainability
performance

Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix35

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Data reporting overview“Positioned between issuersinterrelate, including FTSE Russell’s ESG methodology,
GRI Standards, Sustainability Accounting Standards Boardand investors, and supporting indicators, CDP and the UN Sustainable Stock Exchanges
initiative. Please see the Appendix for a summary of LSEG
each, we have a unique roledata for the quantitative ESG data points recommended
in our ESG Reporting Guidance.
to aid understanding andBased on these reporting frameworks, the following sections
information flows acrossoutline a set of indicators, divided across Environmental,
capital markets that enables Social and Governance areas, which we will continue to buildon over time as our approach evolves further.
sustainable investment. We
While we expand as a Group integrating acquired businesses
actively support evolving
and through joint ownership initiatives, we align our values
and incorporate them into our ESG reporting mechanisms.
global ESG reporting
Acquisitions and Group companies where we have below
100% ownership add complexity to reporting ESG data, thus
standards and our own
we have set out how we have calculated Group-wide datareporting strives to reflect the in the relevant sections.
high standards we advocate.” About this reportDavid Harris
Head of Sustainable Business
It is becoming a norm that investors consider aspects ofthe ESG performance of an issuer alongside other financial
and strategic information in an integrated manner within
their investment strategies. Given our mix of businesses
supporting both issuer companies and investors, we are
keen to promote high ESG standards and ESG data thatis reliable, consistent and comparable across industries.
Considering this, we are committed to reflecting bestpractice in our own reporting. We conduct materiality
reviews before reporting to identify the important material
standards and materials to adopt for LSEG. We reference
our own ESG Reporting Guidance which is based on
globally recognised standards. We also draw from a range
of international frameworks and standards, many of which

1. Scope and time frameThis report covers 100% of the businesses over which LSEG has
operational control (all legal entities in which LSEG has a 51% stake orhigher) employing the same principles as for financial data. For a listof all the subsidiaries consolidated and covered in the report, pleasesee our Annual Report, pages 200–203. When a different boundary
applies to ESG data, we provide explanations in the relevant section.
The time frame matches the time period for the Annual Report.

2. Verification and approval
All data included in this report has been submitted to an internalverification process. Environmental, diversity and cash donation data
has also been also externally verified. The external verification
statement for the environmental data is published on www.lseg.
com/home/about-london-stock-exchange-group/corporateresponsibility/environment. This report was approvedby the LSEG Board in February 2019.

3. Data provision
We provide both raw and normalised data where relevant (seeEnvironment section), and wherever possible we provide three-yeartime series of comparable data.

Our ESG practices are measured by a variety of assessments including performance indices and benchmarks.
These assessments provide useful input to benchmark against global best practices and to plan for improvements
in our sustainability approach.
Assessment
BenchmarkFTSE Russell ESG Rating
ESG Rating Absolute Score (5 – Highest)(also used for the FTSE4Good Series) ESG Rating ICB Supersector Relative
Percentile Score (100 – Highest)
The FTSE4Good Index Series is designed
Pillar Score (5 – Highest)
to identify companies that meet globally
Environmental
recognised ESG standards.
SocialGovernance

2019
4.6

2018
4.6

2017
4.6

96

98

99

5.0
4.3
4.6

5.0
4.3
4.7

5.0
4.3
4.7

61 (86th)
63 (89th)
76 (88th)
53 (82nd)

59 (83rd)
59 (83rd)
65 (83rd)
55 (85th)

65 (89th)
67 (91st)
81 (91st)
54 (84th)

CDP
Overall score
CDP, formerly known as the Carbon Disclosure Project, runs the global disclosure systemthat enables companies, cities, states and regions to measure and manage theirenvironmental impacts. We were scored in the ‘leadership’ bracket for the fourth year
running, highlighting the steps LSEG has taken which represent best practice in the fieldof environmental management.

A-

A-

A-

MSCI
Overall score
MSCI rates and analyses environmental, social and governance-related businesspractices of companies worldwide.

AA

A

A

Dow Jones Sustainability Index(DJSI)DJSI tracks the financial performanceof the leading sustainability-driven
companies worldwide.

Total sustainability company score(Percentile Ranking)Economic
Environmental
Social36

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Environment
We recognise that we must use resourcesin ways that deliver the long-termsustainability and profitability for thebusiness and have regard for impact on
the environment. We also take suchfactors into account in developing our
products and services. The Group’s
primary greenhouse gas (GHG) emissions
arise from energy, waste and water inour offices and data centres around theworld, from staff travel, and indirectlyfrom our supply chain. We are aware of
the risks and opportunities for ourbusiness arising from climate change
and have developed measures toaddress them. We actively monitor
these changes so that we can adapt
and respond as necessary.
2020 Targets-2%

Scope 1 & Scope 2 emissions
per FTE/ per £m revenue-2%

Waste production per FTE

Our targets and progress in 2019
During the reporting period, we achieved a 41% reduction in
our absolute carbon footprint and a 42% reduction in carbon
emissions per Full Time Employee (FTE). 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 attributecertificates for all other electricity consumption (purchasedfrom an internationally recognised trader, member of IETA
and CDP gold partner). Energy conservation measures (suchas office consolidation projects, LED lighting upgrades, anddecommissioning of legacy servers) have continued in all
regions to reduce energy consumption. Throughout 2019
there has also been an increased focus on recycling andwaste management.
LSEG was one of the first companies in the financial services
sector to commit to a long-term science-based carbon
reduction target, which is that “We commit to a 40%
reduction of our global scope 1 and 2 GHG emissions by
2030 from a 2016 baseline”. As this target has been achieved,
we continue to work towards the approval of our 2030 targets
by the Science-based Targets initiative, therefore, in 2020 we
aim to achieve a further 2% reduction in Scope 1 and 2
emissions per FTE and per £m revenue and a 2% reduction
in waste per FTE compared to 2019. We will fully assess theactions needed to achieve carbon neutrality, including
offsetting unavoidable air travel emissions through Gold
Standard carbon credits.

Managing our environmental impact
We take an active approach to emissions management. Our
Environmental Management Group (EMG) guides the Group’s
environmental strategy, and is responsible for settingGroup-wide targets, managing and seeking to improve ourenvironmental performance.
Its responsibilities also include:–– Increasing efficiency and reducing consumption inareas including energy, water usage, waste
management and business travel–– Ensuring that environmental considerations areincorporated in the Group’s purchasing and procurement
decisions–– Engaging with clients, suppliers and community
partners to promote environmental best practice
The EMG accurately measure and report on GHG impacts
across our property portfolio, including managed offices
where possible. We report beyond the mandatory reporting
guidelines to include Scope 3 emissions, performance isreported quarterly on an internal basis, and we annually
disclose to CDP, Dow Jones Sustainability Indices (DJSI),FTSE4Good and on our website: www.lseg.com.
We have maintained our accreditation for our ISO 14001
Environmental Management System by a UKAS accredited
body. The system currently covers the UK property portfolio
and we are assessing expansion to cover further locations.
The Group CFO reports to the Board on environmental issues.

Highlights

A-

CDP Climate Change forfourth consecutive year

41%

reduction in absolutecarbon emissions

100%

renewable electricity
achieved in 2019

LEED Gold Certification
For our new Romania office

37

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Environment continued
Overall Performance
Achieved: -44% carbon emissions per £m revenue / - 42% per FTE.
2019 Target: -5% carbon emissions per £m revenue/per FTE
Progress in 2019
In 2019, we began to purchase energy attribute certificates for the electricity from our offices, where we have been unable
to source renewable energy tariffs. This means 100% our electricity is now renewably sourced, up from 66% in 2018. Thishas supported us to achieve a 41% reduction in total carbon emissions compared to 2018. We surpassed our business travelemissions target of 2% reduction per full time employee (FTE), achieving 8% reduction in business travel emissions compared
to 2018. We went beyond our annual waste production target and were able to divert more of our waste to recycling rather
than energy from waste or landfill (99% landfill avoidance). As well as sourcing renewable electricity for our data centres
and office locations, we continued to invest in energy reduction initiatives.
We also held a global Green Week to engage our employees with environmental issues. Activities included sustainable financebriefings, workshops on reducing food waste and better recycling, providing a ‘bike doctor’ to assist our employees who cycle
to work and interactive LED lighting demonstrations.
What we can improve
Our absolute energy consumption continues to grow in relation to the growth of the business. Several events in 2019 meantthat we had to rely on fuels such as diesel more to keep our data centres running. This has resulted in our Scope 1 emissions
increasing by 28% compared to 2018. As a result of continued efforts in reducing emissions from our offices and data centres,
and as a product of the group’s growth, air travel is now the largest contributor to our emissions inventory. Air travel continues
to be an important means to engage with our clients and other stakeholders. Exploring how we can reduce our air travelemissions will continue to be a priority for the group in 2020.
2020 focus
We recognise that we need to decouple business growth from increasing carbon emissions, and so beyond committing
to using 100% renewable electricity we will continue to seek ways to reduce our absolute Scope 1, 2 and 3 emissions.
We made a commitment during 2019, to procure 100% renewable electricity for the entire group. For 66% of our total
electricity consumption this is achieved through renewable tariffs with our suppliers; for other sites we are achieving thisthrough the purchase of energy attribute certificates (purchased from an internationally recognised trader, member of IETA
and CDP gold partner) as a first phase in our renewable energy strategy. During 2020, we will continue to extend the
procurement of renewable supplier tariffs where these are available.

Total (tCO2e)

1,5,6,8,10

per FTEper £ million revenue
Scope 1 2,9

2019

2018

2017

10,604

17,864

21,866

2.0

3.4

4.0

4.6

8.4

11.2

1,816

1,414

1,919

Scope 2 – Market Based 3,7

0

7,132

11,694

Scope 2 – Location Based 3

18,052

19,16821,850

8,788

9,319

8,252

100%

66%

46%

Scope 3 – Includes T&D

4

Renewable Electricity
Note: See footnotes on page 42

38

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Environment continued
Data Centres
Achieved: -92% carbon emissions per £m revenue / - 92% per cabinet.
2019 Target: -5% carbon emissions per £m revenue / per cabinet.

Total (tCO2e)Achieved: -10% water consumption per cabinet.
2019 Target: -25% water consumption per cabinet.

per £ million revenue

Progress in 2019
In 2019 we surpassed our 5% data centre emissions reduction target, achieving 92% carbon emissions reduction per data
centre cabinet. This was primarily due to our move to 100% renewable electricity for all data centres. While we reduced ourcarbon emissions, electricity use associated with our data centres increased by 3% per data cabinet in 2019. We continue torun effective decommissioning projects, with legacy servers being removed and replaced with more efficient hardware. LED
lighting replacement initiatives also continued in our London data centres. Additionally, in 2019 we were able to surpass our
2% reduction in water consumption target, achieving 10% reduction per cabinet.
What we can improve
Although our data centre capacity has remained largely unchanged over the last two years, utilisation has increased due tobusiness growth. Electricity contributes 96% of our total data centre energy consumption, and our use of diesel-fuelledstand-by generators has increased in 2019. This is a result of minor electricity supply failures, faults in equipment and related
functional testing of the generators. These issues increased diesel consumption by 87% compared to 2018. We recognise theneed to identify further projects which will support reductions in energy consumption for diesel as well as electricity andnatural gas.
2020 focus
During 2020, we will focus on implementing gas and diesel saving initiatives, in an effort to reduce our Scope 1 emissions. In
addition, we will continue to explore more robust means for longer term electricity reductions. This is part of a wider shift to
reduce the absolute carbon emissions of LSEG as part of our science-based target strategy.

1,5,6

per occupied cabinet

2019

2018

2017

282

3,395

6,961

0.2

2.39

4.96

0.1

1.6

3.6

Electricity (kWh)39,399,309

38,314,359

36,270,505

Natural Gas (kWh)1,110,729

1,266,356

1,301,549

29,875

15,94444,755

Diesel (litres)
Water (tCO2e)
Water (m3)per occupied cabinet
Note: See footnotes on page 42

14.1

15.6

13.5

41,05145,375

39,164

29

32

28

39

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Environment continued
OfficesAchieved: -78% less carbon emissions per £m revenue / -77% per FTE.
2019 Target: -5% less carbon emissions per £m revenue / per FTE.
Achieved: +16% more water consumption per FTE.
2019 Target: -2% less water consumption per FTE
Progress in 2019
In 2019 we surpassed our 5% office emissions reduction target, achieving 77% reduction in carbon emissions per full time
employee (FTE). This was primarily due to our move to 100% renewable electricity for all offices, additionally, energy
conservation measures implemented in many offices also meant that we were able to reduce electricity use by 3% per FTE
compared to 2018. Electricity consumption is the largest contributor to carbon emissions associated with our offices.
A range of energy initiatives have been adopted across our global portfolio of offices, including desktop screen replacements
in London and standardising chiller temperature controls in Sri Lanka. LED lighting replacement initiatives continued in Italy,
Romania and the UK. The opening of our new office in New York consolidated a number of smaller offices within the city,which we hope will improve the efficiency of our operations in the USA. In addition, we collected better quality environmental
data for our LEED Gold Certified Bucharest office in Romania.
What we can improve
In 2019, despite some investment in energy efficiency to reduce our electricity consumption, we did suffer from several
causes for increased generator use and therefore our diesel consumption increased by 124% in 2019. This was due totechnical faults, and related increased functional testing. Natural gas consumption also increased in 2019. We were unable toreduce our group office water consumption per FTE in 2019, with an increase of 16% per FTE. This was largely as a result of awater leak in one of our Sri Lankan offices and increased use of office space (including showers and drinking water) during theunrest in Sri Lanka last April. Several offices in Sri Lanka have adopted rainwater harvesting initiatives to reduce city water
usage.
2020 focus
During 2020, we will focus on implementing gas and diesel saving initiatives, in an effort to reduce our Scope 1 emissions.
This is part of a wider shift to reduce the absolute carbon emissions of LSEG as part of our science-based target strategy.
This programme of work has already started, with reducing and standardising our generator testing across regions to help
reduce diesel consumption. Lighting energy efficiency initiatives will be continued in 2020 in London and Italy and rolled out
to other offices in Sri Lanka. A planned upgrade of the HVAC system to an energy efficiency chiller in one of our Sri Lankan
offices is estimated to significantly reduce electricity consumption here. Other initiatives include improvements to office air
quality and further tree planting in Sri Lanka.

Total (tCO2e)

1,5,6

per FTE

2019

2018

2017

1,337

5,559

6,889

0.3

1.1

1.3

0.6

2.6

3.5

Electricity (kWh)21,557,927

21,794,074

21,291,928

Natural Gas (kWh)per £ million revenue

5,315,666

4,428,881

6,183,674

LPG (tonnes)

9.7

9.5

10.5

Diesel (litres)

89,95840,21843,268Water (tCO2e)

19.6

16.5

21.5

Water (m )57,02648,43062,647Per FTE

10.5

9.1

11.4

3

Note: See footnotes on page 42

40

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Environment continued
Business Travel
Achieved: -13% less business travel emissions per £m revenue.
2019 Target: -2% less business travel emissions per £m revenue.
Progress in 2019
As of 2018, business travel is the single largest contributor towards our group carbon emissions. As a global business, air travel
continues to be an important means to engage with our clients and other stakeholders. In 2019 we surpassed our 2% target,achieving an 8% reduction in business travel emissions per FTE and 13% reduction per £m revenue. This was in part due topolitical unrest in Sri Lanka and Hong Kong, which meant travel was suspended or on ‘essential travel only’ for two of 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 (miles). Our vehicle fleet emissions have reduced by 33% since 2018,
due to fewer road miles.
LSEG continue to extend the use and availability of video conference (VC) facilities, and to encourage the use of VC in place oftraveling to meetings where appropriate. We believe that this is supporting reductions in rail travel and short-haul air travel.
The number of video conference calls continues to increase year-on-year.
What we can improveLong-haul air travel continues to be the largest contributor towards business travel emissions, accounting for 79% of total
travel emissions in 2019. During 2019, we saw 42% increase in long haul flights (km travelled) from our Sri Lankan locations.
We anticipate that this trend in increased international travel will continue throughout 2020, both associated to business as
usual engagement with clients and other key stakeholders, but also associated with the acquisition of Refinitiv.
2020 focus
We anticipate that there will be an increased level of international air travel associated with the Refinitiv acquisition, and as aresult of integration activities. We will be tracking this closely throughout the year. A number of the airlines we work with havetaken steps to improve their environmental credentials during 2019, and we will be working with our key airline partners andenvironmental consultants to establish how LSEG can benefit from these during 2020.

Total (tCO2e)6

per FTE

2019

2018

2017

8,013

8,522

7,085

1.5

1.6

1.3

per £ million revenue

3.5

4.0

3.6

Total Air Travel tCO2e

8,002

8,497

7,047

Per FTE

1.5

1.6

1.3

Per £ million revenue

3.5

4.0

3.6

Total Air Travel (km)50,298,670

47,353,780

44,483,319

Total Rail Travel tCO2e

11

25

38

Total Rail Travel (km)1,443,758

1,410,599

1,278,068

36

54

64

Company leased fleet tCO2e
Note: See footnotes on page 42

41

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Environment continued
Waste
Achieved: -8% less waste produced per FTE.
2019 Target: -2% less waste produced per FTE.
Progress in 2019
LSEG has achieved 99% landfill avoidance, and total waste produced has reduced 6% since 2018. Less waste is being sent toenergy-from-waste plants and more is being recycled in individual waste streams demonstrating that our improved waste
management processes are encouraging employees to sort waste before disposing. We surpassed our 2% target, achieving
8% reduction in waste per FTE compared 2018.
Our waste management work in our London offices has been recognised with receiving Platinum Award status for the 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, andother locations have introduced new recycling streams to divert waste from energy-from-waste plants. A number of offices
across Italy and Sri Lanka have adopted single-use plastic waste reduction initiatives which include replacing plastic cupswith reusable bottles, installing bottle refill stations and introducing reusable lunchboxes to save packaging waste incafeterias. We continue to set printing targets (2019: -2% per FTE) and once again have surpassed this target in the yearwith a 28% reduction per FTE.
What we can improve
Despite efforts in improving waste management processes, which have resulted in 8% reduction in waste production per
FTE, some waste streams have increased in volume, including food and plastic waste. Food waste is largely driven by ourPaternoster Square onsite catering facilities, where this increase has come from improved data collection and increased
numbers of staff and visitors using the onsite café (where food waste per cover has reduced by 8%). To try to reduce plastic
waste, we have provided more segregated recycling bins for our employees at a number of offices and data centres.
We also encouraged employees and visitors to recycle more as part of Green Week and other regional activities.
2020 focus
We are working to revise our objectives on waste for 2020 and future years to reflect process improvements and encourage
the good progress that is being made on waste management at LSEG.
We will be sharing the learnings experienced in the UK to other regions to better reduce waste production. We will also
continue to introduce further dedicated recycling stations in offices to encourage waste separation.

2019

2018

2017

Total (tCO2e)

302

234

198

per FTE

0.06

0.04

0.04

per £ million revenue

0.13

0.11

0.10

Total waste (tonnes)

822

874

946

6

per FTE

0.15

0.16

0.17

per £ million revenue

0.36

0.41

0.49

Total waste for energy

538

644

731

Total waste recycled

271

228

211

Landfill avoidance

98.5%

99.8%

99.7%

Note: See footnotes on page 42

42

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

Performance2019 Review
Our Communities

Appendix

Environment continued
Methodology and Verification
We report all the emission sources required under theCompanies Act 2006 (Strategic Report and Directors’
Reports) Regulations 2013. These sources fall within ourconsolidated financial statement. We do not have
responsibility for any emission sources that are notincluded in our consolidated statement.

LSEG UK energy consumption and emissions12 compared to rest of group.
2019

2018

% Change

Total

11

Energy Consumption (kWh)71,160,796

69,527,917

+2%

UK

Energy Consumption (kWh) 11

45,548,676

45,772,555

-0.5%

513

399

+29%

Scope 2 – Market based

0

1,830

-100%

Scope 2 – Location based

11,166

12,440-10%

25,612,121

23,755,362

+8%

1,303

1,015

+28%

Scope 2 – Market based

0

5,301

-100%

Scope 2 – Location based

6,884

6,728

+2%

Scope 1

Our emissions are calculated using GHG Protocol Corporate
Accounting and Reporting Standard (revised edition) and
UK Government Environmental Reporting Guidelines:
Including streamlined energy and carbon reporting
guidance (March 2019).
LSEG uses an “Operational Control” boundary for our GHG
and environmental reporting. An organisation has
operational control if it has, or its subsidiaries have, the fullauthority to introduce and implement its operating policies.
This approach accounts for 100% of emissions fromfacilities, operations and vehicles (whether leased or owned)
over which LSEG has operational control. It excludes
homeworkers and client-based workers.
The London Stock Exchange Group’s (LSEG) Scope 1, 2 and 3
emissions disclosed here and in the Directors’ and Strategic
Reports have been externally verified by SGS against therequirements of the WRI/WBCSD GHG Protocol – Corporate
Accounting and Reporting Standard. Conduct of theverification met the requirements of ISO 14064-3:2006.
Full details and the verification statement are available
on our website.
The tables and charts included summarise our relevant
environmental disclosure based on Streamlined Energy
and Carbon Reporting (SECR), CDP, GRI and FTSE Russell
ESG indicators. LSEG have affirmed their commitment tosupport TCFD’s recommendations and sees them as animportant step in driving improved global consistency involuntary reporting standards (for further information on
TCFD (see pages 52-53).

Rest of Group

Energy Consumption (kWh) 11
Scope 1

1. All Group totals and electricity breakdowns use market-based Scope 2
emissions factors, unless otherwise stated.
2. Scope 1 Emissions Combustion of fuel and operation of facilities – includes
Natural Gas, Diesel, LPG, Fugitive Emissions and Fleet Vehicles.
3. Scope 2 Emissions Purchase of electricity by the Group for its own use (theGroup does not purchase heat, steam or cooling). Market-based emissions
use supplier-based emission factors and energy attribute certificates forwhere 100% renewable supplier tariffs are not in place. Residual mix
factors are excluded due to the entire group electricity consumption being
covered by 100% renewable tariffs or energy attribute certificates.
4. Scope 3 includes emissions from Air Travel, Rail Travel, Waste, Water andScope 3 Electricity Transmission and Distribution.

5. Group Carbon Footprint includes tenant consumption. Detailed section
data excludes tenants.
6. DEFRA UK Government GHG Conversion Factors are used for our UK sites,business travel, water and waste and extrapolated data. Local GHG
Protocol emissions factors are used to calculate Scope 1 and 2 emissions
for international sites where available.
7. Energy attribute certificates have been purchased to claim renewableelectricity consumption for all sites where 100% renewable supplier tariffs
are not in place. These certificates have been sourced from aninternationally recognised trader who is an IETA member and gold partnerof CDP. 66% of our total electricity consumption is via 100% direct
renewable supplier tariffs.
8. Total extrapolated emissions - 4.1%.

9. Only four sites are able to provide Fugitive emissions data from suppliers.
All other sites excluded.
10. 2018 and 2017 total carbon emissions (and associated intensity metrics)
have been updated to include fugitive emissions, as these were previously
reported separately.
11. Electricity, Natural Gas, Diesel, LPG, and Fleet Vehicle fuel have each been
converted from their respective units to kWh in order to be presented as anaggregate fuel consumption value. Defra GHG Conversion Factors 2019
(Fuel Properties) have been used as the basis for this conversion.
Refrigerant consumption is not included in total kWh.
12. Scope 3 emissions are not reported separated by UK and Rest of Group,
due to the collection of travel data at the group level. Streamlined Energy
and Carbon Reporting requires only Scope 1, and Scope 2 emissions to be
separated by region

43

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

Performance2019 Review
Our Communities

Appendix

2019 Group Statistics1,2

Social
LSEG respects and seeks to adhere to the UN Guiding
Principles on Business and Human Rights, together with theInternational Labour Organization Conventions andRecommendations within our working environment in eachlocation where we operate. The Group strongly supports
these conventions which aim to abolish forced labour andchild labour and promote freedom of association andequality. Human rights considerations are also included in
our Supplier Code of Conduct and Group Corporate
Sustainability Policy.
Our risk assessment and research in 2019 has once again
indicated that LSEG operates in an industry where the risk ofmodern slavery and human trafficking is inherently low.
However, we operate as a global business and therefore
recognise the risks of partnering with a varied spectrum of
global suppliers and of slavery occurring deeper in thosecomplex supply chains.
The Group has a zero-tolerance approach to modern slavery.
Some of the key actions taken in 2019 were:- Refreshed risk assessment on our current supplier base to
identify the highest risk suppliers from a slavery
perspective which has confirmed majority of our relevant
supplier spend is with suppliers in in our lowest slavery risktier. Our procedures and anti-slavery approaches continue
to be appropriate and proportionate- Following from the 2018 Modern Slavery Act Statement
and analysis we obtained agreement to our enhanced
Supplier Code of Conduct from a number of higher risk
suppliers, with the majority of our current relevant supplierbase having now accepted our Supplier Code of Conduct- Having identified a small number of suppliers’ risk to be in
our highest tier risk category, we have established an
action to ensure that such identified suppliers agree to our
Supplier Code of Conduct in 2020.
The most recent version of our modern slavery statement
can be found at: www.lseg.com/about-london-stockexchange-group/corporate-sustainability/modernslavery-act-statement.

Disclosure

Indicator

Employment
By region

United Kingdom
Sri Lanka
Italy
United States of America
Malaysia
Romania3
FranceTaiwanOther
TOTAL
By contract type
Full time
Part time
Fixed term
TOTAL
Employees covered by collective bargaining agreements
Staff voluntary turnoverHealth and safety9
Number of health and safety incidents
Training and education Employees receiving regular performance and career development reviews
Total hours spent on employee development training
Labour standards
Number of incidents of labour standards non-compliance

Disclosure

2018

%

2017

%

1,666
1,001
669
667
189
68
167
30
130
4,587
4,397
78
112
4,587
18%
11.0%
0
100%
63,150
0

36
22
15
15
4
1
4
0
3
100
96
2
2
100

1,596
1,036
625
657
121
171
24
678
4,908
4,683
104
121
4,908
16%
9.5%
0
100%
41,675
0

33
21
13
13
2
3
0
14
100
95
2
2
100

2019 %
Female
33
29
36
33
66
33
34
53
44
35

Indicator

Indicator

Employees by age group Under 30 years
30-50 years
Over 50 years
TOTAL
Nationalities represented in the Group8
Non-discrimination
Total number of incidents of discrimination and actions taken
1. Figures as of year end 31 December 2019.
2.	Due to rounding, some totals may not correspond with the sum of theseparate figures.
3. LSEG office in Romania opened in 2018.
4. Mix of employees and Non-Executive Directors.

Male
67
71
64
67
34
67
58
47
66
65

2018 %
Female
33
28
36
35
65
29
39
43
41
34

2019

Group by gender and organisational level
LSEG plc Board
LSEG Subsidiary Boards4,6
Executive Committee and Leadership Teams5,6All other colleagues
TOTAL7

Disclosure

%
34
22
14
13
4
4
4
2
3
100
97
1
2
100

Indicator

Diversity and equal opportunity10
United Kingdom
Sri Lanka
Italy
United States of America
Malaysia
Romania3
FranceTaiwanOther
TOTAL

Disclosure

2019
1,705
1,127
683
676
199
193
192
80
126
4,981
4,810
64
107
4,981
18%
10.5%
0
100%
74,7700

Female
4
31
140
1,577
1,717

2017 %
Female
33
24
35
38
39
65
42
32
33

2018

Male
9
132
219
2,957
3,248

Female
3
22
134
1,453
1,569

2019

%

1,291
2,983
707
4,981
81
0

26
60
14

5. Executive Committee and Leadership Teams in LSEG.
6.	The LSEG Subsidiary Board members and the Executive Committee andLeadership Teams together comprise the ‘Senior Managers’ for the
purposes of section 414C (8)(ii) of the Companies Act 2006.
7. Total comprises ExCo and Leadership Teams and All other colleagues.

Male
67
72
64
65
35
71
61
57
59
66

Male
67
76
65
62
61
35
58
68
67

2017

Male
10
116
295
2,723
3,018

Female
2
23
146
1,458
1,604

Male
9
142
303
3,001
3,304

2018

%

2017

%

1,361
2,641
585
4,587
80
0

30
57
13

1,540
2,740
628
4,908
72
0

31
56
13

8. Not a required disclosure.
9. 	100% of total LSEG workforce is represented in formal joint managementworker health and safety committees.
10.	Figures may not total 100% due to individuals who have chosen not to disclose
this information

44

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Governance“Good governance is key to promoting
the long-term sustainable success of
the Company, generating value forshareholders, building and maintaining
relationships with stakeholders andcontributing to wider society.”
Don Robert,
Chair
LSEG is committed to the corporate governance standards
set out by the UK Corporate Governance Code, which in 2014
was updated to strengthen the focus on long term
sustainable value creation. For a full description of ourcorporate governance framework please see the 2019 LSEG
Annual Report, we set out our CS governance on pages 7of this report. You may also refer to the GRI Index availableat www.lseg.com/about-london-stock-exchange-group/
corporate-sustainability
The purpose of this section is to provide disclosure on
governance practices that are particularly relevant tosustainability issues deemed significant by our stakeholders.
For 200 years, we have abided by our motto, Dictum Meum
Pactum, ‘My word is my bond’. Today, it is as vital as everthat we maintain the highest standards of ethics andgovernance. Given our central role in a constantly evolving
global economic landscape, it is important that we foster
confidence in our markets and in the services we provide.
What we believe as a Group and how we act is summarisedby our four core values and behaviours: Integrity,
Partnership, Innovation and Excellence.

Key Polices and Approaches
Tax transparency–– ExCo Responsibility, David Warren, Group CFO
LSEG’s strategy for taxation has been published andis available at www.lseg.com/about-london-stockexchange-group/regulatory-strategy/london-stockexchange-tax-strategy. The strategy is centred aroundfour concepts:
1. To ensure that the Group fulfils its fiscal obligations withregard to the administration and payment of all taxes.
2. To ensure that the Group’s tax affairs are arranged
in an efficient manner, while remaining compliant withthe tax laws of the jurisdictions in which it operates.
3. To support the delivery of the Group’s corporate and risk
management strategies.
4. LSEG does not undertake purely artificial transactions
in order to obtain a tax benefit and will only enter intotransactions, which would be fully justifiable should
they become public. Furthermore, all transactions musthave a business purpose or commercial rationale.
We disclose UK tax charge and overseas tax charge in thefinancial statement of our Annual Report. LSEG is also
a signatory of the UK Prompt Payment Code.

Cyber security–– ExCo Responsibility, Anthony McCarthy, Group CIO
Cyber security is a key non-financial sustainability riskin the financial services sector. Our reputation and ability
to fulfil our purpose as a critical markets infrastructure
provider is dependent on the secure management of data
and assets. In order to have maintain confidence in ourassets, security controls have been implemented to protect
the confidentiality, integrity and availability of LSEG andGroup company data and systems.
Given the increased size and scope of our businesses,
we face a wide number of technology risks, such as cyberthreats, systems resilience and new technologicalinnovation. The threat of cybercrime and the evolutionof the cyber threat landscape requires robust cyber security
defences. Long-term unavailability of systems andcorruption of data could lead to the loss of client confidence
and reputational damage. Security risks have escalated
in recent years due to the increasing sophisticationof cybercrime. LSEG continues to invest significantly incybersecurity to protect LSEG, our clients and stakeholders.
The Group is reliant upon secure premises to protect
its employees and physical assets, as well as appropriate
safeguards to ensure uninterrupted operation of its IT
systems and infrastructure.

Security threats are treated very seriously. The Group has
robust physical security arrangements, and extensive IT
measures are in place to mitigate technical security risks.
The Group is supported by the Centre for the Protection of
National Infrastructure (CPNI) in the UK, with both physicaland IT security teams monitoring intelligence and liaisingclosely with police and global Government agencies.
A third-party security monitoring service is retained
to assist with monitoring global physical security eventswith the potential to impact Group operations.

45

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Governance continued
Our Code of Conduct and Corporate
Sustainability policies, both publishedon www.lseg.com, are underpinnedby LSEG’s values and behaviours anda number of policies that embedsustainability into our day-to-day
operations.
Given their relevance for our industry and associated risks,
we provide below a brief description of the following policies:
1. Financial crime (including Anti-money Laundering)
2. Anti-bribery and Corruption
3. Group Information Security
4. Business Continuity Management

Compliance Training
Given LSEG’s role at the heart of capital markets, and theGroup’s reliance on the analytical skills and decision-making
capabilities of its employees, adherence to the highest
behavioural standards is key to ensuring the quality of our
product and service offering. The principles of the Group’s
Code of Conduct are embedded into the Group’s operations
through a series of policies that are enforced throughperiodic training and auditing.
This year, the Group’s compliance training programme
has included training on the following policies:

1. Financial Crime (including Anti-money Laundering)–– ExCo Responsibility, David Schwimmer, Group CEO

2. Anti-bribery and Corruption–– ExCo Responsibility, David Schwimmer, Group CEO

4. Business Continuity Management (BCM)–– ExCo Responsibility, Diane Côté, Group CRO

This policy outlines the approach and arrangements that
LSEG has in place to prevent the occurrence, facilitationor furthering of financial crime. It also sets out LSEG’s
approach to compliance with applicable legislation,
regulation and guidance. The detection, disruption anddeterrence of financial crime is a key objective for many
regulators worldwide and continues to be a high priority
for governments. Consequently, financial crime poses acontinuous reputational, regulatory and legal risk to LSEG.

Consistent with LSEG’s strategic risk objective of maintaining
stakeholder confidence, we regularly review both the risks
associated with our business conduct and our related
policies. As a result, LSEG has in place a Code of Conduct,
Anti-bribery and Corruption, and conflict of interest policies,
approved by the Board. In 2019 we carried out mandatoryanti-bribery and corruption compliance training, with 100%
successful completion; and, the number of staff disciplined
or dismissed due to non-compliance was 0.

In addition to the reputational and financial loss causedby financial crime, a failure to establish adequate controls
to manage our risk and ensure those controls are effective
exposes the Group and approved persons to civil andcriminal sanctions including heavy fines, restrictions
on business activity and loss of relevant regulatory
authorisation. LSEG is committed to supporting government,
law enforcement and international bodies to combat the useof the financial services sector to facilitate financial crime.

3. Group Information Security–– ExCo Responsibility, Anthony McCarthy, Group CIO

LSEG is committed to minimising the impact to markets,
customers and other stakeholders arising from any event
which causes disruption. To achieve this the Group has
established BCM as an integral part of its business
operations. BCM is a management process that identifies
potential threats to an organisation and the impacts tobusiness operations those threats might cause. It provides aframework for building organisational resilience with thecapability for an effective response that safeguards theinterests of its key stakeholders, reputation, brand andvalue-creating activities. BCM includes all activities relating
to: business recovery planning; IT service continuity
planning (including disaster recovery) and crisis
management. The purpose of this policy is to ensure that
the Group has a feasible, practical, cost-effective and tested
Business Continuity Management Framework (BCMF) andthat controls exist which ensure that the Group operates
within its overall risk appetite.

Training

This policy outlines the Information Security requirements
across LSEG. It addresses a number of risks, including: data
loss or theft which could result in unauthorised accessto systems or company information; the threat of malware
and, the loss or unauthorised alteration of company data,
including personal and confidential information which could
expose LSEG to the risk of non-compliance with legal
obligations of confidentiality, data protection and privacy.
CoverageCompletion Statistics

Data Protection (GDPR)All Staff

100%

Business Continuity Management

All Staff

100%

Financial Crime & Anti-money Laundering

All Staff

100%

Preventing Bribery & Corruption

All Staff

100%

Conflicts of Interest

All Staff

100%

Introduction to LSEG Policies

New Joiners

100%

Unconscious Bias

New Joiners

100%Competition Law

New Joiners

100%

LCH Incident Management

All LCH Staff

100%

46

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Governance continued
Engagement with Stakeholders
and Shareholders
The Board views clients, regulators and employees as key
stakeholders. Here we provide a brief commentary on our
engagement with these stakeholders in 2019. Moreinformation on our stakeholder engagement can be foundin the Annual Report on pages 51–52.

‘Decarbonisation of the UK Economy and Green Financeinquiry’, where we outlined the importance of public markets
in meeting the challenge of transitioning; and IOSCO’s
consultation into ‘Sustainable finance in emerging markets’.
As part of LSEG’s Sustainable Finance and Investor Summitin October 2019, we held a panel discussion with experts
from a range of sectors to debate what the future is ofregulation to drive the transition to a sustainable economy.

Clients
We engage with our clients across our business in a numberof different of ways. In 2019, some examples of thisengagement on sustainability topics have included ourtransition bond roundtable (page 16) and the launchof the FTSE Custom Developed Ex Korea SDG Aligned Index,
developed following close collaboration between FTSE
Russell, Pensioenfonds Detailhandel and BlackRock(page 19). Further examples are outlined earlier in this reportin the Our Markets and Our Services sections.

UK Climate Financial Risk Forum
LSEG is a member of the Climate Financial Risk Forum(CFRF), an industry forum that is jointly convened by the
Prudential Regulation Authority (PRA) and the Financial
Conduct Authority (FCA) to build capacity and share bestpractice. Since its inception in March 2019, the CFRF has set
up four technical working groups on disclosure, scenario
analysis, risk management and innovation. CFRF is due topublish the conclusion of these working groups in Spring
2020.

Regulators
LSEG is engaged on an ongoing basis with global policy
makers and regulators on sustainable finance, including theUK, EU, North America and in Asia. In the last year LSEG has
submitted evidence to a number of inquiries, including: theTreasury Select Committee’s inquiry into the

UK Green Finance Institute
LSEG is a member of the Green Finance Institute and isrepresented on its Advisory Group by Nikhil Rathi, CEO of LSE
plc and Director of International Development. The purposeof the Institute is to bring together the UK’s existing offeringon sustainable finance and create new related business

opportunities as well as communicate these initiatives to thewider market is in this area.
EU Technical Expert Group on Sustainable Finance
In July 2018, the European Commission established aTechnical Expert Group on sustainable finance (TEG) to assist
in the development of a unified classification system forsustainable economic activities; an EU green bond standard
and methodologies for low-carbon indices and metrics forclimate-related disclosure. LSEG is a member through Borsa
Italiana. The TEG’s mandate covers four areas:–– EU taxonomy – to determine whether an economic
activity is environmentally sustainable;–– an EU Green Bond Standard;–– methodologies for EU climate benchmarks anddisclosures for benchmarks and–– guidance to improve corporate disclosureof climate-related information.
The TEG, with significant input by LSEG, has delivered
recommendations on these four workstreams. The mandateof the TEG has been extended until 30 September 2020
to allow it to conclude its technical work and retain theexpertise before the future platform on sustainablefinance is established.

Employees
Employee engagement continues to be of paramountimportance to the Group, and we are committed to acting
on the results of our regular ‘Have Your Say’ global employee
surveys. Details of how we have engaged with our people
in the year can be found in the Our People section of thisreport on page 24.
Shareholders
The Company maintains an active shareholder engagement
programme, managed through the Group’s Investor
Relations (IR) function. The IR programme provides regular
opportunity for the Board to have contact with existing andpotential shareholders. In 2019, the IR team held over 550
investor meetings.

47

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix i
Having joined the UN-backed Sustainable Stock Exchanges (SSE) initiative in 2014, LSEG has committed to reporting to the SSE stakeholders on an annual basis.
The report provided below is in line with the template and structure developed by the SSE. This is LSEG’s fifth report on progress.
UN SSE: Communication to stakeholders

Business Strategy
1. How does your exchange define and view therationale for corporate sustainability and theexchange’s role in promoting it?

Our CEO’s message, CS strategy and Materiality review on pages 2,6 and 8 respectively, demonstrates our rationale for corporate sustainability and our role in promoting it.

2. H
 ow does your exchange’s senior leadership andorganisational structure support the promotion of
corporate sustainability in its market(s)?

Our sustainability strategy is developed and reviewed by our ExCo and Board respectively, while our organisational structure is set out on pages 7. Our Markets and Our Services pillars
support the promotion of sustainability across capital markets globally.

3. W hat goals/objectives does your exchange have inregards to advancing sustainability in your market?

The impact areas of our sustainability strategy that are more relevant here are Disclose, Convene , Grow and Transition – please see Our Key Iniatiatives, Our Markets and Our Services section
for more details (see pages 13–20). We set out our specific objectives for 2020 in our Looking ahead section on page 11.

Transparency and Issuer Reporting
4. Describe your exchange’s approach to promoting
sustainability disclosure by companies.

We cover this across both Our Markets and Our Services. We encourage best practice disclosure in two - three ways. Firstly, during 2016 we developed guidance on ESG disclosure for issuersof all sizes across the UK and Italy, which was launched in February 2017 and whose latest edition can be accessed at www.lseg.com/esg. Secondly, FTSE Russell’s ESG services assessment
methodology set a standard for ESG disclosure globally. In 2019, London Stock Exchange Group launched the ESG disclosure score for its London-listed companies (see page 16). Thirdly,
we promote issuer-investor dialogue on ESG issues through capital markets events. In July 2019 Borsa Italiana held its third Sustainability Day to encourage investor-issuer dialogue on ESG
issues (see page 16). In October 2019, we hosted in London our inaugural Sustainable Finance and Investment Summit. In 2017, the CEOs of LSEG, London Stock Exchange, Borsa Italiana and
FTSE Russell signed the letter of support for the final recommendations of the Financial Stability Board’s Taskforce on Climate-Related Financial Disclosure (TCFD).

5. W
 hat is your exchange’s process for reviewing listing
standards in general? Are there opportunities forstakeholders to comment during the process?

The UKLA is responsible for listing standards in the UK,not the London Stock Exchange. Borsa Italiana is responsible for setting and reviewing the listing standards as set in the Rules of theMarkets, organised and managed by Borsa Italiana. Any modification to the Rules is subject to two main approvals: Borsa Italiana’s Board of Directors’ and the Italian financial markets
supervisory authority’s approval. Borsa Italiana stakeholders can comment on the process of amending the listing standards, both the Rules of the Markets and their implementing
Instructions. For example, as part of its preparation of the modifications, Borsa Italiana shall consult relevant stakeholders, such as the industry associations of issuers and intermediaries,
in order to incorporate their comments and suggestions.

6. How do you track sustainability reporting of yourlisted companies?

Starting from 2019, the main tool to track sustainability reporting will be the ESG disclosure score based on FTSE Russell ESG assessment methodology. The ESG disclosure score waslaunched for London listed companies in October 2019 (see page 16).

7. W
 hat incentives (i.e., public recognition/awards) andsanctions do you have in place to encourage
disclosure and discourage non-compliance/ lower
levels of transparency?

FTSE Russell assesses ESG and green revenues disclosure and performance of companies globally and provides this analysis to investors around the world. This data is also used to construct
the FTSE ESG Index Series, which highlight companies that meet good practice standards, and the Environmental Markets and Green Revenues Index Series. In addition, to promote
disclosure, in 2018 FTSE Russell launched STEP Change, and engagement programme aimed at raising the awareness of global listed companies around their sustainability performance.

48

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix i continued
Transparency and Issuer Reporting continued
8. W
 hat connections have you made between nationalsustainable development frameworks and goals, andyour exchange’s existing Standard and norms?

LSEG ESG reporting guidance builds on national disclosure standards and norms across the UK and Italy. The EU Non-Financial Reporting directive was transposed in the UK and Italy during
2016, mandating public interest companies with more than 500 employees to disclose environmental, social, diversity, human rights and anti-bribery and corruption information. The
guidance also builds on the recommendations of the Financial Stability Board’s Task Force on Climate-Related Disclosures and the Sustainable Development Goals (SDGs). In 2018, Borsa
Italiana joined the Technical Expert Group on Sustainable Finance set up by the European Commission to provide advice on a number of initiative included in the EU Action Plan on
Financing Sustinable Growth. In particular, Borsa Italiana has been involved in the activities of the TEG sub-group focusing on climate-related disclosures, tasked with incorporating the TCFD
recommendations into the Non-Binding Guidelines complementing the Non-Financial Reporting Directive, and the sub-group focused on the EU Classification System for sustainable
activities (EU Taxonomy).

Issuer Capacity Building
9. I f your exchange offers sustainability guidance forcompanies, please provide a description of theprocess for its creation.

LSEG involved market participants in the creation of its ESG Guidance for issuers thorough investor and issuers workshops organized in the UK and Italy, and consulted other stakeholders(standard setters and responsible investment NGOs) before finalizing the guidance. In 2019, London Stock Exchange held a consultation on the evolution of its Sustainable Debt Markets(see page 16).

10. Do you and/or your regulator provide guidance on
externally assuring ESG disclosures? In your market,
how common is external assurance of ESG
disclosures?

Assurance of ESG disclosure is mandated in Italy and the UK as part of the implementation of the EU Non-Financial Reporting directive. LSEG ESG guidance recommends enhancing thecredibility of ESG information through internal and or external assurance (see “Investment Grade Data” chapter of the guidance).

Collaboration and Engagement
11. Who does your exchange view as its key
stakeholders and how does it engage andcollaborate (or plan to do so) with these andpotentially other stakeholders?

We do this is a range of ways including:–– We partner a large number of peer exchanges around the world and in some cases this explicitly covers ESG and ESG indices–– We respond to regulator consultations and have responded positively to consultations regarding issuer non-financial disclosure in the past–– We host events for issuers and ESG related initiatives, and LSEG in 2019 was involved in PRA/FCA Climate Financial Risk Forum, and as a member of the EU Technical Expert Group(TEG) on Sustainable Finance–– Through FTSE Russell we are involved in a large number of investor ESG collaborative bodies and initiatives including the UN backed PRI, UK SIF, US SIF, Forum per la Finanza
Sostenibile (ITA SIF) Euro SIF, ICGN, Japan SIF and RIAA–– Through our involvement with the SSE initiative and the World Federation of Exchanges. In 2019, LSEG was part of the Advisory Group that developed guidance on the governanceof sustainability within exchanges

49

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix i continued
Sustainable Products
12. H
 ow has your exchange supported the developmentof financial products that address sustainabilityrelated issues (e.g., ESG Indices, carbon markets,
social/environmental bonds, sustainable
development funds, etc.)?

LSEG’s Global Sustainable Investment Centre aims to promote green and sustainable capital raising and deep integration of ESG consideration in the investment process across asset classes.
The product portfolio includes green bonds in different currencies, reneweable infrastructure funds, cleantech companies, green ETFs, ESG indexes and analytics, FTSE Russell’s Green
Revenues and analytics, and supporting tools such as LSEG ESG guidance. In 2019, London Stock Exchange launched its Green Economy Mark, recognizing issuers with more than 50%of their revenues deriving from the green economy as defined based on FTSE Russell Green Revenue data model (see page 18). In addition, in 2019 London Stock Exchange restyled
its Sustainable Debt Markets (see page 15). For the new index products launched in 2019 see page 19.

Exchange Needs
13. Are there any specific resources that you would likefrom the SSE or other relevant groups to help you
in your sustainability work?

The agenda of the SSE has already moved beyond disclosure, also addressing green finance and the role of regulators. The next step could be to carry out work on SDG8 regarding decent
work and growth, which is one of the key SDGs identified by the SSE as relevant to exchanges.

14. Are there any specific requests you have ofinvestors, issuers and regulators in terms of theirrole in advancing sustainability in the market?

LSEG looks forward to continuing collaboration with investors, issuers and regulators on the sustainable investment agenda. It is key to the continued success of ESG disclosure that issuers
perceive how investors are shifting capital allocations in response to ESG and low-carbon economy considerations. Therefore we’ll keep placing emphasis on the importance of investorissuer dialogue on ESG issues, as a complement to high-quality ESG data flows. LSEG welcomes the recommendations of the Financial Stability Board’s TCFD as a key development in thetrend toward the global alignment of ESG disclosure standards.

50

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix ii
FTSE Russell quantitative ESG data points as referenced in the LSEG ESG Reporting GuidanceRelevance:=Likely

Indicator

Indicator
sub code

Indicator description wording

2019

2018

2017

Environmental

ECC14

Total operational GHG emissions data (Scope 1 & 2) is disclosed

1,816 tCO2e

8,546 tCO2e

13,667 tCO2e

ECC15

Total energy consumption data is disclosed

71,161 MWh

69, 495 MWh

64,658 MWh

EPR18Disclosure of NOX emissions (tonnes)

Not significant

Not significant

Not significant

EPR19

Disclosure of SOX emissions (tonnes)

Not significant

Not significant

Not significant

EPR21

Disclosure of volatile organic compounds (VOC) emissions (kilograms)

Not significant

Not significant

Not significant

EPR24

Disclosure of hazardous waste generation (tonnes)

Not significant

Not significant

Not significant

EPR25

Disclosure of non-recycled waste generation (tonnes)

551 tonnes

646 tonnes

735 tonnes

EPR26

Disclosure of waste recycled (tonnes)

271 tonnes

228 tonnes

211 tonnes

EPR27

Total costs of environmental fines and penalties during financial year

0

0

0

EPR28

Percentage of sites covered by recognised environmental management systems such as ISO 14001 or EMAS

47%

47%

47%

ESC30

Total GHG emissions data on properties disclosed

2,154 tCO2e

9,342 tCO2e

14,781 tCO2e

ESC31

Total energy usage data on properties disclosed

71,161 MWh

69,495 MWh

64,658 MWh

ESC32

Total water usage data from property portfolio disclosed

103,970 m3

101,478 m3

109,243 m3

EWT11

Total water use/water extraction data is disclosed

103,970 m

101,478 m

109,243 m3

EWT12
GAC12

Percentage of water recycled (non-potable) for use in own operations
Disclosure of total amount of political contributions made5

GAC13Disclosure of number of staff disciplined or dismissed due to non-compliance with anti-corruption policy/policies

Not significant
The only political donations made in2019 amounted to US$29,000 was
donated to political organisations by
the LSEG US Holdco, Inc. employee
operated PAC.
0

Not significant
Not significant
The only political donations made in £02018 amounted to US$19,000 was
donated to political organisations by
the LSEG US Holdco, Inc. employee
operated PAC.
0
0

GAC14

Disclosure of cost of fines, penalties or settlements in relation to corruption

0

0

0

SHR17

Total amount of corporate or group donations/community investments made to registered not-for-profit organisations£1.71 million£1.5 million2£1.2 million3

SHS12

Percentage of sites with OHSAS 18001 certification

0%

0%

6%

SHS13

Number of staff trained on health and safety standards within the last year4

100%

100%

100%

SHS15

Lost-time incident rate, over last three years

24.27

7.63

3.27

SHS38

Number of work-related employee fatalities

0

0

0

SHS40

Number of work-related contractor fatalities

0

0

0

SLS24

Full-time staff voluntary turnover rates

10.5%

11.0%

9.5%

SLS25
SLS26

Percentage of employees that are contractors or temporary staff
Amount of time spent on employee development training to enhance knowledge or individual skills, using:a) Total hours as a company, or b) Average hours per employee2%a) 74,770b) 152%a) 63,150b) 14

3%a) 41,675b) 8.5GovernanceSocial

1. This is the total cash charitable donation made by the Group in 2019, consisting of £1,616,000 to LSEG Foundation and £103,000 to other charities.
2. This is the total cash charitable donation made by the Group in 2018, consisting of £1,254,000 to LSEG Foundation and £207,000 to other charities.
3. This is the total cash charitable donation made by the Group in 2017, consisting of £1122,000 to LSEG Foundation and £124,000 to other charities.
4. 100% of new staff received health and safety training.
5. All LSEG US Holdco, Inc. contributions will be reviewed for legal compliance and will be publicly reported in accordance with US election laws.

3

3=Possible

Relevance

51

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix iii
Sustainable Development Goals
As the UN Sustainable Stock Exchanges initiative assesses
that exchanges are well placed to have a measurable impact
on five of the Sustainable Development Goals (SDGs),
we align our strategy to them. This is also one of theframeworks recommended in our ESG Reporting Guidance.

SDG

Goal

Associated targets

LSEG impact

Gender equality

Ensure women’s full and effective participation and equal opportunities for leadership at all levelsof decision-making in political, economic, and public life.

Develop
SustainDecent work andeconomic growth

Promote development-oriented policies that support productive activities, decent job creation,
entrepreneurship, creativity and innovation, and encourage the formation and growth of micro-,small- and medium-sized enterprises, including through access to financial services.

Grow
Sustain

Responsible consumption
and production

Encourage companies, especially large and trans-national companies, to adopt sustainable practices
and to integrate sustainability information into their reporting cycle.

Disclose
Transition
ConveneClimate action

Improve education, awareness raising and human and institutional capacity on climate change mitigation,
adaptation, impact reduction and early warning.

Disclose
Transition
ConveneSustain

Partnerships forthe goals

Enhance the global partnership for sustainable development complemented by multi-stakeholder
partnerships that mobilise and share knowledge, expertise, technologies and financial resources to support
the achievement of sustainable development goals in all countries, particularly developing countries.

Develop52

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix iv
Task Force on Climate-related Financial Disclosures (TCFD)
Supporting the call for more effective climate-related financial disclosures to inform longer-term investment decision, in June 2017 LSEG signed a statement of
support for the recommendations of the TCFD framework established by the Financial Stability Board. This table is also in our Annual Report on page 49.
The table below by cross-referencing relevant disclosures, summarises LSEG’s current TCFD alignment.
TCFD recommended disclosures

LSEG approach2019 enhancements–– LSEG Board has oversight of the Group Corporate
Sustainability Policy,
which includes our Environmental policy;–– Board Risk Committee presented with clearly identified
non-financial risk framework as part of Group ERM,
including climate-related risks

References

Governancea. Information on LSEG’s governance around climate-relatedrisks and opportunities: Board’s oversight–– LSEG CS Report 2019: Environment section, page 33–– Risk section of the Annual Report, page 73–– The Group CEO sponsors the Group CS Policy
at Board level–– LSEG Corporate Sustainability report 2019, Governancesection, page 7–– The Group CFO reports to the Board on
environmental mattersb. Information on LSEG’s governance around climate-relatedrisks and opportunities: Management’s role–– Group Corporate Responsibility Policy–– LSEG Annual Report 2019, Supporting Sustainable
Growth section– Group CS Committee chaired by the Group CRO
comprise a number of Executive Committee members– The EMG is responsible for setting Group-wide targets,and managing and seeking to improve ourenvironmental performance

Strategya. Climate-related risks and opportunities identified over the
short, medium and long term:–– Impact of low-carbon transition and rise of green
industries monitored by FTSE Russell through Green
Revenues data model–– The Group has developed climate-related risk scenarios
over both the medium and longer term to help identify
how these risks may impact our business–– LSEG CS Report 2019: Environment section,
page 36–42

b. Impacts of climate-related risks and opportunities on
LSEG’s business, strategy and financial planning–– Our EMG guides the Group’s environmental strategy, andis responsible for setting Group-wide targets, managing
and seeking to improve our environmental performance–– ESG and climate factors are becoming a mainstream
consideration in investment decision making–– Strategy section of the Annual Report, page 15

c. R esilience of the organization’s strategy based on scenario
analysis–– We have been working on developing scenarios toidentify the most material physical and transition risks
for the business–– Scenario selection completed–– FTSE Russell Green Revenues data model–– For scenario analysis, see risk section of theAnnual Report, page 73–– LSEG Annual Report 2019, Supporting
Sustainable Growth

53

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix iv continued

TCFD recommended disclosures

LSEG approach2019 enhancements–– Some climate-related risks have been categorised as
emerging risks and it is acknowledged that they are
inherently linked to other strategic, financial andoperational risks–– Training was delivered to Risk champions to enableeffective identification and assessment of ESG risks,
including climate-related

References

Risk managementa. Information on LSEG’s processes for: identifying andassessing climate-related risksb. Information on LSEG’s processes for: managing
climate-related risks–– LSEG has taken proactive steps to develop its
methodology to define and model how climate change
impact its businesses. The aim is to reinforce the Group’s
resiliencec. I nformation on LSEG’s processes for: how climate-related risks
are integrated into LSEG ERM system–– LSEG continues to increase our focus on embedding theserisks in our ERM framework and some climate-related risks
have been categorised as emerging risks and it isacknowledged that they are inherently linked to otherstrategic, financial and operational risks–– The Group has developed climate-related risk scenarios
over both the medium and longer term–– LSEG 2019 CDP Response: Risk and Opportunities
Section, questions C2.1–C2.3–– LSEG Annual Report: Principal risks and uncertainties– emerging risks section, page 73–– LSEG Annual Report, Supporting Sustainable Growth

Metrics and targets
a. Metrics and targets used by LSEG to assess and manage:
relevant climate-related risks and opportunities–– Exposure of our markets to the green economy–– LSEG CS Report 2019: Environment section,
pages 33–42

b. Metrics and targets used by LSEG to assess and manage:
Scope 1, 2 and 3 GHG emissions–– Physical risk metrics are associated with LSEG
environmental programme targets–– FTSE Russell Report “Investing in the Global Green
Economy: busting common myths”, 30 May 2018c. M
 etrics and targets used by LSEG to assess and manage:
Targets and performance–– LSEG sets environmental targets for business operationsfor 2020 and 2030 and reports against these targets
externally on an annual basis–– LSEG has submitted 2030 targets to the Science Based
Targets initiative (SBTi) and is still working to obtainapproval–– LSEG Annual Report 2019, Supporting
Sustainable Growth

54

London Stock Exchange Group plc
Group Corporate Sustainability Report 2019

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2019 Review
Our Communities

Performance

Appendix

Appendix v
WFE Principles
Having joined the World Federation of Exchanges (WFE)
in 2018, LSEG has committed to take on a leadership rolein promoting the sustainable finance agenda. Below wesummarise our efforts in 2019 to promote the Principles
progressively in accordance with our circumstancesand priorities.

Principle:

Principles in action:

Principle 1: Exchanges will work to educate participantsin the exchange ecosystem about the importanceof sustainability issues.

–– Borsa Italiana third Sustainability Day to raise awareness among market participants and facilitate dialogue
between issuers and investors on ESG and sustainability topics–– LSEG held a roundtable discussion on the emergence of transition bonds–– LSEG held its inaugural Sustainable Finance and Investment Summit

Principle 2: Exchanges will promote the enhanced
availability of investor-relevant, decision-useful ESG
information.

–– We have introduced mandatory annual post-issuance reporting requirements for issuers on Sustainable
Bond Market

Principle 3: Exchanges will actively engage withstakeholders to advance the sustainable finance agenda.

–– Our stakeholder engagement is outlined in the CS report

Principle 4: Exchanges will provide markets and productsthat support the scaling-up of sustainable finance andreorientation of financial flows.

–– FTSE Russell launched its Climate WGBI–– London Stock Exchange launched guidance report on Green Finance–– London Stock Exchange launched the Sustainable Bond Market and Green Economy Mark–– Borsa Italiana launched ExtraMOT PRO3

Principle 5: Exchanges will establish effective internal
governance and operational processes and policies
to support their sustainability efforts.

–– We continue to assess the materiality of ESG and related risks to LSEG and to increasingly integrate these
considerations into our Enterprise-wide Risk Management framework–– A description of our CS governance can be found in our CS report© March 2020
London Stock Exchange Group plc
10 Paternoster Square
London EC4M 7LS
Telephone +44 (0)20 7797 1000
Registered in Englandand Wales No. 5369106
www.lseg.com