LSEG Climate
Transition Plan
London Stock Exchange Group plc
Climate Transition Plan 2022

Contents
We are pleased to
publish our first Climate
Transition Plan. Its aim
is to outline our role in
the transition to a net
zero economy and how
we plan to execute on
our commitments.

Our Group

3

LSEG’s sustainability strategy

4

Transition to net zero

6

The evolution of climate transition plans

7

Defining net zero

8

2021 activity

10

Our emissions

11

Our commitments

16

Reducing our emissions

17

Our governance

18

Progress through our 2030 glidepaths

19

The finance system as a catalyst for decarbonisation

30

2030 and beyond

32

How we disclose and report on progress

33

Further information

33

Further details on our sustainability approach can be found at lseg.com

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LSEG CLIMATE TRANSITION PLAN 2022

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Our Group
Who we are

Our purpose

LSEG is a leading global financial
markets infrastructure and data
provider. We play a vital socialand economic role in the world’s
financial system. With our trusted
expertise and global scale, weenable the sustainable growthand stability of our customers andtheir communities.

Driving financial stability, empowering
economies and enabling customers to create
sustainable growth.

We are leaders in data andanalytics, capital formation andtrade execution, and clearing andrisk management.

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LSEG CLIMATE TRANSITION PLAN 2022

Our vision
We are a leading global financial markets
infrastructure and data provider. We want toshape the future of our industry to serve ourcustomers and markets better.

Where we operate
LSEG is headquartered in the United Kingdom,with operations in 70 countries across EMEA,
North America, Latin America and Asia Pacific.
We employ 23,000 people globally, more thanhalf of whom are located in Asia Pacific.

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LSEG’s sustainability strategy
In 2021 LSEG acquired Refinitiv, a leading global
financial markets data business. Following thisacqusition, we refreshed our sustainability strategy
to reflect the shape, scale and business strategyof the new enlarged organisation and rapidly
evolving stakeholder expectations along with theurgent need for market transformation to deliver
sustainable growth.
To inform our sustainability strategy we conducted a materiality
assessment to identify the sustainability issues, risks and opportunities
most relevant to our business and our stakeholders. We also aligned
our approach with the UN Sustainable Development Goals.
As a result, we have shaped our sustainability strategy around threeoutcome-focused priorities which represent the areas where we canhave the greatest impact, including our role in the transition to net zero.

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Our sustainability priorities
Accelerate the just transition to net zero
Decarbonising the whole global economy is critical to minimise the worst consequences ofclimate change.
We are leveraging LSEG’s unique market position, capabilities, products and services to support a
global reallocation of capital which shares the costs and benefits of reaching net zero fairly between
and within countries.

Enable growth of the green economy
To deliver sustainable economic growth, more economic activity must focus on creating, scaling anddelivering solutions to the world’s environmental and social challenges.
LSEG has a pivotal role in helping those solutions thrive by enabling more capital to flow towards
sustainable economic activity.

Create inclusive economic opportunity
Inclusive economies enable more people to participate in, and benefit from, economic growth,regardless of their gender, ethnicity, social background, political or religious beliefs. These economies
also uphold high standards of governance, address inequality and respect human rights.
We aim to empower economies, communities and individuals by championing inclusion and opening
up economic opportunity.

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LSEG CLIMATE TRANSITION PLAN 2022

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Transition to net zero
LSEG is committed to achieving
net zero by 2040. Our uniquerole at the centre of financial
markets is underpinned by our
purpose of driving financial
stability, empowering economies
and enabling customers to create
sustainable growth.

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LSEG CLIMATE TRANSITION PLAN 2022

Our purpose is inextricably linked with climatechange. We believe that decarbonising
the whole global economy is critical to minimise
the worst consequences of climate change
and reflects our central role in enabling
the market transformation required to achievea net zero economy.

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The evolution of Climate Transition Plans
As more businesses accelerate
their commitments to reduce andremove their emissions across theirvalue chain, we believe that the
publication of Climate Transition
Plans will play an increasingly
important role.

Climate Transition Plans explain how
commitments translate into action, enabling more
informed investment decision-making, deeper
engagement between companies and investors
and market-wide collaboration.
At present there is limited consensus aroundwhat constitutes best practice with respect
to preparing a Climate Transition Plan. This is
LSEG’s first such Plan where we explain ourcommitments and approach, covering both ournear-term targets and how we will identify actions
required beyond 2030.
We support the evolution and adoption of bestpractice guidance for Climate Transition Plans
and will review and refine our Plan over time.

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At COP26, the UK Government announced that
it will make the UK the first net zero-aligned
financial centre. As both the operator of the
UK’s primary stock exchange and as a UK-listed
business, LSEG intends to play a pivotal rolein shaping and promoting the adoption of bestpractice Climate Transition Plans to deliver this.

CONTENTS

Defining net zero
Net zero means that any greenhouse gas emissions
produced and emitted into the atmosphere areremoved equally.

The Net Zero Standard sets out four key elements that make up a corporate
net zero target. The first of these is a near-term science-based target, thesecond is a long-term science-based target, and the third is mitigation beyond
the value chain. The final element is neutralisation of any residual emissions.

LSEG has adopted the Science Based Target Initiative (SBTi) Net Zero
Standard released in October 2021, which defines net zero and is the firstglobal science-based standard for companies to set validated near-term andlong-term science-based targets consistent with limiting temperature rise to
1.5°C, driving forward the global transition to net zero.

The Net Zero Standard states that in the long term, emissions in the
cross-sector pathway1 are reduced by at least 90% and most sector-specificpathways also reduce CO2 emissions by 90% or more from 2020 levels.

The SBTi Net Zero Standard states:
To contribute to societal net zero goals, companies must deeply reduce
emissions and counterbalance the impact of any emissions that remain.
The SBTi Net Zero Standard defines corporate net zero as:– Reducing scope 1, 2 and 3 emissions to zero or to a residual level thatis consistent with reaching net zero emissions at the global or sector
level in eligible 1.5°C-aligned pathways.
– Neutralising any residual emissions in the net zero target year
and any greenhouse gas emissions released into theatmosphere thereafter.

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Consequently, for many companies, long-term science-based targets will beequivalent to at least a 90% absolute reduction across scopes regardless ofwhether the cross-sector pathway or sector-specific pathways are used.
1
The SBTi offers a cross-sector pathway and sector-specific pathways for setting science-based targets. Companies in the
power generation sector and forestry, land-use, and agriculture (FLAG) sectors are required to set SBTs using sectorspecific pathways (effective for FLAG sectors after the finalization of SBTi and GHG Protocol guidance).
For all other companies, the cross-sector pathway is eligible and recommended for setting absolute targets

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Figure 1: Net Zero Standard
By 2050 at the latest
5 to 10 years
Abatement within the value chain
Emissions (tCO2e)1

Removals
Abatement or removals beyond
a company’s value chain
Net zero emissions

2

1.5°C-aligned emissions pathway

3

9

4

1

To set near-term SBTs: 5-10 year emission reduction targets in line with 1.50C pathways.

2

To set long-term SBTs: target to reduce emissions to a residual level in line with 1.50C
scenarios by no later than 2050.

3

Beyond value chain mitigation: in the transition to net zero, companies should take action to
mitigate emissions beyond their value chains. For example, purchasing high-quality,
jurisdictional REDD+ credits or investing in direct air capture (DAC) and geologic storage.

4

Neutralisation of residual emissions: GHGs released into the atmosphere when thecompany has achieved their long-term SBT must be counterbalanced through thepermanent removal and storage of carbon from the atmosphere.

LSEG CLIMATE TRANSITION PLAN 2022

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2021 activity
LSEG completed its acquisition of
Refinitiv in January 2021; prior tothis both companies had adopted
near-term science-based emissions
targets validated by the SBTi.
During 2021 we created a combined emissions
data inventory, integrating data from bothbusinesses, aligning methodologies and creatinga 2019 baseline from which our future targets
would be set.

Throughout 2021, as well as establishing arevised data inventory, we set a newscience-based target for the combinedGroup, which was approved by the SBTi in
December 2021.
We also updated our policies, governanceand created new ways of working, setting
emissions-reduction glidepath plans to help us
achieve our ambition for the enlarged Group.
We also play a pivotal role in financial markets,
enabling an economy-wide transition to
net zero.
We are using our unique market position,
capabilities, products and services to support
a global reallocation of capital which sharesthe costs and benefits of reaching net zero
fairly between and within countries.
Further details on our 2021 progress canbe found in our Sustainability Report andTaskforce on Climate-related Financial
Disclosures (TCFD) Report.

10 LSEG CLIMATE TRANSITION PLAN 2022

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Our emissions
Our greenhouse gas emissions arise from the buildings we occupy and use,business travel, and through the products and services we buy from our
supply chain. In total, our 2021 emissions were 571,885 Tons of CO2e.
The vast majority of our emissions arise from the products and services
we buy.

Emissions are categorised into three scopes:
Scope 1
Direct emissions: combustion of fuel and operation of facilities –includes natural gas, diesel, fugitive emissions and fleet vehicles
Scope 2
Indirect emissions: purchase of electricity and heat
Scope 3
Indirect emissions: emissions from purchased goods and services,
fuel- and energy-related emissions, business travel, waste, water,
employee commuting (including home working) and upstream
leased assets

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2021 emissions
Category

Absolute emissions(tCO2e)Emissions per FTE(tCO2e/FTE)

Scope 1

1,000

0.04

Scope 2 (market-based)

3,138

0.13

Scope 3 - purchased goods and services

550,861

22.86

Scope 3 - other including business travel

16,8850.70

Total Group carbon footprint (tCO2e)571,885

23.74*This table shows all emissions and a total using the 2021 headcount.

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Our emissions
We continued to reduce our total Group carbon footprint in 2021, down
almost 13% from our 2019 baseline, and over 10% down from 2020. We saw
reductions across Scopes 1, 2 and 3 with the greatest percentage reductionsin Scope 2 market-based emissions, down 69% from the 2019 baseline.
This is largely due to all electricity in 2021 either being sourced from a green
tariff or covered by an energy attribute certificate.
Scope 1 emissions reduced by 54% from our 2019 baseline, largely due to a
reduction of our office footprint and office use.
Overall Scope 3 emissions reduced, due largely to lower levels of businesstravel due to the ongoing global pandemic; emissions from business travel in
2021 were down 93% from 2019, and 66% from 2020 levels.
As travel restrictions begin to ease, we anticipate business travel,
and associated emissions, to increase from the levels seen in 2021.
As office occupancy levels remained low during 2021 we saw reduced
Scope 3 emissions from waste disposal. This is expected to increase as more
employees return to the office. We aim to manage these expected increases
in order to stay on track with our 2030 target commitment.

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While we saw lower emissions from reduced business travel and officeoccupancy in 2021, we experienced a significant increase in emissions fromhomeworking from 2019 levels. However, 2021 emissions for homeworking
are lower than 2020 levels which is largely due to improvements in officeattendance data which tracked actual daily attendance for each office.
Our approach enabled us to calculate more accurate emissions data forhomeworking and commuting and reduced our reliance on estimated officeoccupancy figures. In previous years, a conservative estimate was made forboth commuting and homeworking.
The vast majority (96%) of our greenhouse gas emissions arise from Scope 3
purchased goods and services, demonstrating how critical engagement with
our suppliers is to the overall reduction of our emissions.
As a result, we have set a target which aims to ensure that suppliers
responsible for 67% of our Scope 3 emissions (purchased goods andservices) set science-based targets by 2026. As part of our engagement with
suppliers to achieve our target, we will collect greenhouse gas emissions datafrom our key suppliers to more accurately calculate our emissions associatedwith the goods and services we buy. This will allow us to set targets in thenear future to reduce this portion of our emissions in alignment with our net
zero commitment.

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Methodology and verification statement
We report all of the emission sources required under the Companies
Act 2006 (Strategic Report and Directors’ Reports) Regulations 2013.
These sources fall within our consolidated statement.
We do not have responsibility for any emission sources that are not included
in our consolidated statement.
Our emissions are calculated according to an operational control boundary
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). London
Stock Exchange Group’s Scope 1, 2 and 3 emissions disclosed in this report
have been externally verified by Cameron-Cole against the requirements of
the WRI/WBCSD GHG Protocol, GHG Protocol Corporate Accounting andReporting Standard (revised edition), GHG Protocol Scope 2 Guidance:
An amendment to the GHG Protocol Corporate Standard, and the GHG
Protocol Corporate Value Chain (Scope3) Standard. Conduct of the verification
met the requirements of ISO 14064-3:2006(E).

13 LSEG CLIMATE TRANSITION PLAN 2022

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Progress against science-based targets (SBTs)

67%
progress in 2021

Absolute Scope 1&2

86%
progress in 2021

20208

20198

Change9

Total group carbon footprint (tCO2e)1, 5

571,885

640,693

657,008-13%

per m2

1.35

1.50

1.54

-12%

per FTE

24

27

27

-10%

per £m revenue11

80

90

96

-17%

1,000

1,960

2,163

-54%

17%

Scope 2 market-based

3,138

6,492

10,189-69%

Scope 2 London-based

106,566

111,644

143,206-26%

progress in 2021

Renewable electricity (%)7

100%

98%

96%

4%

Scope 34, 5, 6

567,747

634,175

646,569-12%- Purchased goods and services

550,861

603,613564,107-2%- Fuel- and energy-related activities (FERA)

5,659

6,371

9,082

-38%

- Waste

185

369

1,879

-90%

- Water

80

1,166

1,282

-94%

- Business travel

3,169

9,593

42,662-93%- Employee commuting

1,907

4,745

27,422-93%- Homeworking

5,805

8,236

55

10,455%- Upstream leased assets

81

81

80

1%

Exclusions (market-based)10

767

1,933

1,914

-17%

Exclusions (location-based)

1,886

4,264

4,829

-60%

Total % of emissions from suppliers with an SBT

Total Group carbon footprint (CO2e)

2019

2021

Scope 12Absolute Scope 3 (FERA, business travel, commuting)-13%

Overall performance

2021

3

10

14 LSEG CLIMATE TRANSITION PLAN 2022

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Footnotes
1.

All Group totals and electricity breakdowns use market-based Scope 2 emission factors. Group carbon footprint includes tenant consumption, excludes clientbased workers.

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 and heat by the Group for its own use. Market-based emissions use supplier-based emission factors, and energy
attribute certificates for where 100% renewable supplier tariffs are not in place.

4.

Scope 3 includes emissions from purchased goods and services, fuel- and energy-related emissions, air travel, rail travel, taxis, hotels and ground transfers,
waste, water, employee commuting (including homeworking) and upstream leased assets.

5.

DEFRA UK Government GHG Conversion Factors are used for our UK sites, and all business travel, water, waste, upstream leased assets and extrapolated data.
US EPA factors are used for United States electricity and employee commute factors. IEA and GHG Protocol emissions factors are used to calculate Scope 1, 2
and Scope 3 fuel- and energy-related emissions for international sites where available. Defra IO factors have been adjusted to reflect reporting year consumer
index pricing to estimate emissions related to purchased goods and services. US and UK National Travel Surveys have been used to inform our estimations for
employee commuting. Emissions related to working from home have been based on EcoAct’s ‘Homeworking emissions whitepaper’ (2020).

6.

Scope 3 emissions are not separately reported by UK and Rest of Group, due to the collection of travel, purchased goods and services and other data at theGroup level.

7.

Energy attribute certificates have been purchased to claim renewable electricity consumption for all sites where 100% renewable supplier tariffs are not in place.
These certificates have been sourced from an internationally recognised trader who is an IETA member and gold partner of CDP.

8.

2019 and 2020 total carbon emissions have been restated to reflect the acquisition of Refinitiv.

9.

% Change is calculated between 2021 and 2019, the Group’s target baseline year.

10. Emissions from sites not included within the reporting boundary relate to the divestment of Borsa Italiana and have been published for transparency.
11.

The revenue figures for 2019, 2020 and 2021 are based on a ‘pro-forma’ approach to align with our global greenhouse gas inventory.

15 LSEG CLIMATE TRANSITION PLAN 2022

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Our commitments
Our ambition and targets areunderpinned by our external
commitments and memberships
including the United Nations
Climate Change ‘Race to Zero’and the UN Global Compact’s
Business Ambition for 1.5°C.

We have set near-term targets, approved by the science-based targets initiative,
against a 1.5°C trajectory to:
Halve our scope 1, scope 2 and scope 3 emissions(fuel and energy related activities, business travel and employee commuting)against a 2019 baseline by 2030.
Engage two-thirds of our suppliers(by scope 3 purchased goods and services emissions) to set science-basedtargets by 2026.
Our long-term target is to achieve net zero by 2040

16 LSEG CLIMATE TRANSITION PLAN 2022

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Reducing our emissions:
our six glidepaths
Our commitment to net zero requires robust
planning and investment to transform ourbusiness operations. Setting near-termtargets for 2030 was our first step, andto achieve these we have developed six
glidepaths of activity.

Property and data centres
We will halve the emissions from our offices and data centres by making our
locations and technology as efficient as possible

Business travel
We will cut our business travel by 50% by working with our people and partners torethink how and why we travel

Supply chain
We will work with our suppliers to lead by example and aim for 67% of our
suppliers (by emissions) to set science-based targets to reduce emissions by 2026

Renewable electricity
We will ensure 100% of the electricity we consume is from renewable sources by
increasing green tariffs across our portfolio, exploring on-site generation, andpurchasing Energy Attribute Certificates (EACs) where those options are notcurrently available

Neutralisation and removals
For emissions that we cannot eliminate we will support nature-based solutions thathave socioeconomic benefits and receive carbon neutral certification

Climate risk
We will continue to assess and act on the potential environmental impact achanging climate will have on our physical locations and business model

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CONTENTS

Our governanceOversight, ownership and action
across all levels of the business will
ensure that we can plan for, andmeet, our commitments over the
next 20 years.

LSEG Board

Our Group Sustainability teamcomprises subject matter experts
who plan, coordinate and activate
our ambition across social andenvironmental commitments.

LSEG CEOAccountability for sustainability
is also formalised acrossthe business with the following
groups taking on important
governance responsibilities.

The Board has ultimate oversight of thesustainability agenda and strategy, ensuring
the long-term success of the company and thatstakeholder expectations are met through ourcommitments and approach.
Our CEO has ultimate responsibility for all
sustainability matters across LSEG.

Executive Committee
Our Executive Committee is responsible forthe delivery of our Group Strategic Objectives(GSOs). Executive Committee compensation islinked to the delivery of our GSOs, one of which
is focused on LSEG’s sustainability strategy andour role in enabling sustainable growth, including
our efforts to accelerate the transition to net zero.

Sustainability Committee
Chaired by our Chief Corporate Affairs andMarketing Officer and comprising Executive
Committee members and functional leaders,
this group is responsible for the strategic

18 LSEG CLIMATE TRANSITION PLAN 2022

oversight and delivery of LSEG’s sustainability
strategy, including our environmental
commitments.

Sustainability Working Group
Chaired by our Group Head of Sustainability,with representation of sustainability subject
matter experts from across LSEG, this group
designs, shapes and delivers the Group’s
sustainability strategy. It supports theSustainability Committee and reports on
progress and areas for further development.

Environmental Management Group
Chaired by our Chief Operating Officer, thiscross-functional team of senior leaders sets theambition for environmental excellence across
LSEG and identifies routes to delivery acrosstheir own teams, taking responsibility for our
six glidepaths.

Environmental Operating Group
This group leads the programmatic delivery ofenvironmental targets and identifies the delivery
glidepaths for each target.

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Progress through our 2030 glidepaths
Setting targets is just the starting
point for ambitious climate action.
We plan to deliver on these throughsix glidepaths, some of whichhave their own key performanceindicators, with further development
planned in 2022.

19 LSEG CLIMATE TRANSITION PLAN 2022

Each glidepath has a role to play in achieving
our near-term targets and transforming how
we operate as a business in a net zero future.

CONTENTS

Reducing emissions from our propertiesand data centres
Why?
Our physical locations and data centres play a key role in how we
operate and collaborate to drive value for our customers. However, we
can do more to ensure they are as efficient as possible. As a result, weare investing in the latest and greenest solutions across our portfolio.

What?

Supported by our renewable electricity and climate risk glidepaths, the routeto achieve our reductions will focus on the following:– Engagement with landlords– Environmental framework– Engineering solutions– Portfolio consolidations

We aim to halve the emissions from our offices and data centres bymaking our locations and technology as efficient as possible.

– Technology within data centres

How?

– Projects including construction, refurbishment and upgrading equipment

A 50% reduction in our emissions across scope 1, scope 2 and somescope 3 categories by 2030 will nearly entirely be delivered bychanges to our use of property and technology.

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– Leveraging suppliers– Communications
Part of our activities will involve moving some of our data centre services tothe cloud, and we are conscious that this will adversely impact our scope 3
purchased goods and services emissions. We will therefore be enhancing oursustainability considerations during the technology procurement process, andwill continually address this through the efforts of our supply chain glidepath.

CONTENTS

50% reduction in our
scope 1 and scope 2
emissions by 2030
will nearly entirely bedelivered by changes
to our property andtechnology.

Figure 2: Property and data centres pathway
25000

Emissions (tCO2e)

20000

15000

10000

5000

0
2019

Paris 1.5 trajectory

2020

2021

2022

Emissions budget

2023

2024

2025

Actual emissions - scope 1 & 2

2026

2027

2028

2029

Actual emissions - Scope 3 - FERA

The impact of Covid-19 reduced our property and data centre emissions significantly from 20202021, enabling us to be well ahead of our target.
As the pandemic recedes, we want to keep our emissions below the Paris trajectory.

21 LSEG CLIMATE TRANSITION PLAN 2022

2030

CONTENTS

Rethinking how and why we travelfor businessWhy?
In the past travel was an important way to collaborate across our global
business. However, due to the pandemic there has been a shift in our relianceon business travel. Having sought new ways to collaborate that save time,money and carbon emissions, we are working to ensure our levels of travel
do not go back to pre-pandemic levels, embracing the change, benefits andenthusiasm around new ways of working.

What?
We will cut our business travel by 50% by working with our people andpartners to rethink how and why we travel.

How?
Understanding the data behind our travel emissions has highlighted specificlevers to reduce our emissions and achieve our 50% reduction by 2030.

22 LSEG CLIMATE TRANSITION PLAN 2022

Working across the business and with internal and external partners
we will implement the following measures:– Reduce the need for internal meetings that involve air travel– Work with our air travel vendors to understand the measures they
are taking to reduce emissions– Increase visibility and awareness among our people about theemissions associated with all business journeys and potential
savings by switching classes

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All emissions associated with business travelfrom 2021 onwards will be offset as part of ourneutralisation and removals glidepath. In 2022
we will explore adopting an internal price on
carbon and carbon budgets for business travel asa mechanism to encourage considerations andprioritisation across the company.

Figure 3: Travel reduction pathway
45000
40000
35000
Emissions (tCO2e)

From our 2019 baseline data 96% of travelemissions are accounted for with air travel alone.
Between 2019 and 2021 we recorded a 90%
reduction in absolute emissions due to the travel
restrictions imposed as a result of
the pandemic. We need to ensure that our future
approach to travel is carefully managed to ensure
we meet our emission reduction targets while
enabling us to effectively serve our customers
and operate as a global business.

30000
25000
20000
15000
10000
5000
0
2019

2020

Paris 1.5 trajectory

2021

2022

Emissions budget

2023

2024

2025

2026

2027

2028

2029

2030

Actual emissions - business travel

The impact of Covid-19 reduced our business travel emissions significantly from 2020-2021, enabling
us to be well ahead of our target. As the pandemic recedes, we want to keep our emissions below
the Paris trajectory.

23 LSEG CLIMATE TRANSITION PLAN 2022

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Working with our supply chain to
reduce emissions
Why?
Managing and measuring emissions outside of our direct control isfundamental to how we achieve our near-term target; it is also vital to ourprogress to net zero. As a global business with a large supplier base, 96% of
our market-based emissions arise from our supply chain, meaning businesses
whose services we utilise are responsible for more than 550,000 tonnesof CO2e a year. It’s essential we account for and reduce these emissions inpartnership with our suppliers to support the global net zero ambition.

What?
We will work with our suppliers to aim for 67% of our suppliers (by emissions)to set science-based targets to reduce emissions by 2026.

How?
We have a large supplier base, with around 7,000 individual suppliers in 2021.
Emissions resulting from LSEG’s purchased goods and services are part of ourscope 3 emissions, the largest portion of our total reported emissions.
Suppliers contributing the greatest share of these emissions are those
involved in IT and professional services, with approximately 166 suppliers
responsible for 70% of our supplier emissions in 2021.
Through a robust engagement plan we will work with our suppliers tounderstand their challenges, track data and encourage action.

24 LSEG CLIMATE TRANSITION PLAN 2022

Our supplier base does shift and change year-on-year so it is essentialthat we track and monitor suppliers, emissions and target data intandem. We will do this in four ways:– Supply chain engagement: work collaboratively with suppliers
through a tiered integrated supplier engagement approach. We areusing third-party systems and processes to engage our suppliers,
collect data and support capacity building.
– Embedding requirements: embed key sustainability expectations ofsuppliers throughout procurement activities, including integrating
ambitious climate commitments into RFP and procurement
processes, our supplier code of conduct, new contracts, andongoing relationship management.
– We will also be working with the business divisions to enhancesustainability considerations within their operational decisions.
– Thinking bigger: work with our peers in the industry to push key
suppliers and high emitting industries to change their behaviours.
As of 2021 17% of suppliers by emissions had science-based targets
in place.
We will report on progress with respect to our supplier engagement
programme in future Climate Transition Plans.

CONTENTS

Figure 4: Our suppliers with emissions science-based targets in place
17%

2021

2026

67%

Suppliers with science-based
emissions targets in place

25 LSEG CLIMATE TRANSITION PLAN 2022

Through a robust
engagement plan we will
work with our suppliers
to understand theirchallenges, track data andencourage action.

CONTENTS

Increasing renewable electricity
across our portfolio
Why?
Sourcing electricity from renewable sources will not only lower our
scope 2 market-based emissions but will support the increased market
demand for low-carbon electricity. For a location portfolio of our sizeand scale we are looking at this holistically across our business.
Firstly, our priority is to reduce our scope 2 emissions and secondly,
we will ensure any residual emissions will be from a renewable source.

What?
We will ensure 100% of the electricity we consume is from renewablesources by increasing green tariffs across our portfolio, exploring onsite generation, and purchasing Energy Attribute Certificates (EACs)
where those options aren’t currently available.

How?
Sourcing 100% of our electricity from renewable sources depends onavailability of green tariffs in the different regions where we operate.
Where green tariffs are available, and we have control over the energy
supply we are seeking to switch to renewable electricity sources.
Where green tariffs are not available we are purchasing credible
and traceable Energy Attribute Certificates which are market-based
instruments that are created when 1 megawatt hour of electricity is
generated from renewable sources.

Our long-term approach is to determine the feasibility to invest
in Virtual Power Purchase Agreements (VPPA).
The key steps we are taking to shift to renewable electricity
sources include:– Identify credible and strategic options for purchasing
renewable energy– Identify strategic locations for transition to green tariffs– Implement guidance for sites and procurements– Determine opportunities for on-site generation– Review longer term options for renewable energy purchasing

Figure 5: Buildings on renewable tariff
11%

2021

2026

XX%

% of electricity consumption
26 LSEG CLIMATE TRANSITION PLAN 2022

CONTENTS

Neutralising and removing residual emissions
Why?
Alongside a robust emissions reduction plan across our locations, ouroperations, technology and travel, we will also incorporate credible offsets toneutralise and remove residual emissions. We know that a reliance on offsets,
however credible is not a satisfactory end solution. However, used as part ofa robust strategy where reductions are the key objective, then it is a valuable
and impactful tool to support climate projects close to our global operations.

This is being done in partnership with Natural Capital Partners, an external
nature-based solutions consultant and focuses on sourcing offsets which
achieve the following:– Credible: robust approach which aligns with the CarbonNeutral® Protocol– Alignment with best practice: supports our business rationale, is transparent
and reduces reputational risk

For emissions that we cannot eliminate we will support nature-based solutions
that have socioeconomic benefits and receive carbon neutral certification.

– Positively impacts our locations and communities: solutions that areconsiderate of the impacts in the communities and locations we operate,ensuring that those most impacted by climate change on the ground see
the benefits

How?

– Demonstrate leadership: underpin a robust and deliberate approach

What?

From 2021 we have offset our emissions from scope 1, scope 2 and scope 3(business travel).

27 LSEG CLIMATE TRANSITION PLAN 2022

CONTENTS

Projects supported through offsets in 2021
Project

Standards

What?

Why?

How?

Orb Household Solar,
India

Gold
Standard

Bringing affordable,
reliable solar-powered
electricity and hot water
heating to communities
across India.

With a growing middle class in India, demand forelectricity has outstripped supply causing regular
blackouts for those connected to the grid. In rural
areas, kerosene or other fossil fuels are used forenergy and lighting, polluting the air inside homes.
This project has brings reliable solar power and solar
water heating systems to customers throughout thecountry, while cutting around 55,000 tons of CO2ea year by replacing the use of kerosene or electricity
from a grid reliant on fossil fuels.

Orb Energy manufactures, sells, installs
and services a unique range of high-quality
solar energy systems for residential andcommercial customers in India. Businesses
can operate for longer and more consistently
with a solar energy system. Household solar
water heating reduces electricity bills by
more than 50% and lighting at home means
greater opportunity for children to study after
the sun goes down.

Acre Amazon Rain Forest
Conservation

CCB, VCS

Granting land tenure
and providing
agricultural training toprevent deforestationand promotesustainable economic
livelihoods.

90% of Brazil’s Acre state is forested, but current
rates of destruction mean by 2030 this could decline
to 65%. This collection of three projects aims toprevent deforestation across 105,000 hectares ofpristine rainforest in the Amazon basin, protectingsome of the world’s most biodiverse habitats.

With the support of carbon finance, theprojects work with communities andlocal groups to help protect ecosystemservices while providing alternative models
of economic development which avoid
destruction of the forest.

Improved Cookstoves,
Kenya

Gold
Standard

Tackling household
air pollution anddeforestation withimproved cookstovesin Kenya.

More than 95% of households depend on wood orother solid fuels for cooking in Kenya. This project
aims to address dependence on non-renewablefuels and tackle health issues associated withtraditional cooking stoves.

This project helps households andinstitutions throughout the country purchaseefficient wood or charcoal cookstoves toreplace traditional three-stone fires or other
inefficient stoves. The stoves are sold(along with other ‘eco-products’ such as solar
lanterns and water filters) through a local
partner franchise model that helps ensure
effective financing, marketing, and support
to both end customers and local partners.
251,000 stoves have been sold across alleight provinces in Kenya.

28 LSEG CLIMATE TRANSITION PLAN 2022

CONTENTS

Understanding and acting on climate risk
Why?
Understanding the impact of a changing climate on both our physicallocations and our business model is fundamental to how we plan andoperate as a global business. Using data to understand the potential
impacts (both positive and negative) under different scenarios ensures wecan build resilience into our business for the future.

What?
We will continue to assess and act on the potential environmental impact achanging climate will have on our physical locations and business model.

How?
LSEG has 23,000 people and a network of 187 properties located in
70 countries. We have undertaken scenario analysis to understand thepotential physical impacts of extreme weather events on our people
and locations. The findings are reported externally as part of our TCFD
disclosure and integrated internally as part of our Enterprise Risk
Management Framework as well as through governance and working
groups to adopt the findings for location planning.

29 LSEG CLIMATE TRANSITION PLAN 2022

Climate risk and the transition to net zero alsopresent opportunities for LSEG to support
customers with sustainable finance solutions andthe market more widely. This element of our work
is summarised below and further detail can befound in our Annual Sustainability Report.

CONTENTS

The financial system as a catalyst for decarbonisation
LSEG is in a unique position to
support decarbonisation efforts
across the market and support thegrowing and essential drive to a net
zero carbon economy. We are taking
a leadership role in the industry
and leveraging our partnerships,
capabilities, products and services.
Here are some of the ways we are enabling
and accelerating a just transition to net zero infinancial markets:

Glasgow Financial Alliance for Net Zero
(GFANZ)
LSEG was a founding member of GFANZ
launched in April 2021 led by Mark Carney, UN
Special Envoy on Climate Action and Finance.
GFANZ is a global coalition of leading financial
institutions committed to accelerating thedecarbonisation of the economy.
Collectively they commit to achieving theobjective of the Paris Agreement to limit global
30 LSEG CLIMATE TRANSITION PLAN 2022

temperature increases to 1.5°C. LSEG CEO David
Schwimmer is a member of the GFANZ CEO
Principals Group.

Net Zero Service Providers Alliance
Launched in 2021, under the GFANZ umbrella,
the Net Zero Financial Service Providers Alliance(NZFSPA) is a global group of Service Providers
committed to supporting the goal of global net
zero greenhouse gas emissions by 2050 orsooner, in line with the ambition to limit the
global temperature increase to 1.5°C above
pre-industrial levels.
This alliance commits members to align relevant
services and products to net zero by 2050. LSEG
was a founding member and is actively involvedin the alliance which will set targets and metrics
to drive the commitment.

Climate Transition Offering
The London Stock Exchange’s Climate Transition
Offering for London-listed companies provides arange of guidance, tools and resources to help
companies in transition to a low-carbon economy.

This includes LSEG’s Climate Governance Scoresfor issuers which is an assessment of companies’
carbon management practices and incorporationof climate change considerations into businessstrategies. This score helps issuers to understandwhere they are relative to industry peers andwhat they need to improve.
The offering also includes resources to support
companies with climate reporting in line with the
TCFD recommendations.

Transition Bond Market
In February 2021, the London Stock Exchange(LSE) launched the Transition Bond Segment
within its Sustainable Bond Market. This helps
issuers raise finance to fund transition-related
activity in line with credible Paris-Aligned
transition plans. The Transition segment joins theGreen, Social, Sustainability and Sustainability–
linked segments which make up the LSE’s
Sustainable Bond Market.

CONTENTS

Voluntary Carbon Markets
In November 2021, the London Stock
Exchange announced its intention to develop
a new market solution for voluntary carbon
markets to accelerate the availability of financing
for projects to support a just transition to a
low-carbon economy.
The solution aims to address two major
challenges inherent in the scaling up of thevoluntary carbon markets: access to capitalat scale for the development of new climate
projects worldwide; and primary market accessto a long-term supply of high-quality carbon
credits for corporates and investors.
This will enable companies and investors toaugment credible net zero transition strategies
more confidently, by financing additional projects
to offset unavoidable carbon emissions during
their path to net zero.

FTSE EU Climate Benchmarks Index Series
To help investors reallocate capital in line with thetransition to a low carbon economy FTSE Russell
launched the FTSE EU Climate Benchmarks Index
31 LSEG CLIMATE TRANSITION PLAN 2022

Series in July. FTSE Russell consulted Brunel
Pension Partnership in the design of the indiceswhich include a range of climate-themed equity
indices aligned to the Paris Agreement.
The index series cover a broad range ofdeveloped and emerging equity markets
including FTSE All-World, FTSE Developed, FTSE
Emerging, Russell 1000, FTSE All-Share and FTSE
Australia 200.
The index series apply the FTSE Target Exposure
Framework which includes a transparent
tilt exposure towards and away from index
constituents according to several exposure
objectives such as fossil fuel reserves, carbon
reserves and green revenues to achieve
Paris alignment.

Carbon footprint data and analytics
Refinitiv is a pioneer in ESG data, servicing the
global financial industry since 2002. Refinitiv
carbon data covers 12,000 companies and is
one of the most consistent, comprehensive andauditable data sets available in the market.
It is natively integrated into mainstream financial

market solutions such as Refinitiv Workspace
making carbon data integration efficient andcost effective.
Through our products, we accelerate thetransition to net zero across global financial
markets. Our research teams provide in-depth
understanding of the carbon markets, policy andregulatory drivers and forecasts for emissions
trading to help organisations achieve theiremissions targets.

Climate Transition Centre
Announced in October 2021, the LSEG
Foundation supported the funding of theTransition Pathway Initiative (TPI) Global
Climate Transition Centre at the London Schoolof Economics.
It will dramatically scale publicly available
research on the climate transition pathwaysof 10,000 businesses, covering global equity
markets, fixed income and private markets.
This builds on our existing relationship throughFTSE Russell, our Index business, which is TPI’s
data partner.

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2030 and beyond
As this is our first Climate Transition Plan, we havefocused on the actions we are taking to achieve ournear-term targets to 2030.
Many of these actions are underway and delivering results. We lookforward to providing details of progress in future reports.
During 2022 we are undertaking further work to assess the actions
and investment required beyond 2030 to achieve our longer-term net
zero target. Using the SBTi’s Net Zero Guidance released in October
2021, our work in 2022 will identify our path to net zero from 2030
across our business operations and value chain with the adoption of
measurable targets and interim KPIs.
To help achieve this, we will invest in nature-based solutions and othercarbon-reduction technologies to remove from the atmosphere oroffset more carbon than LSEG emits each year. By 2040, we aim for
100% of unavoidable emissions to be neutralised with an equivalentamount of carbon removals. This will involve the purchase of carbon
removals and the scoping and implementation of an internal carbon
price starting with business travel. Such a tool would factor the external
cost of greenhouse gas emissions into business and investment
decisions to incentivise efficiency and enable low-carbon innovation.

32 LSEG CLIMATE TRANSITION PLAN 2022

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How we disclose and report on progress

Disclosing data and progress transparently ensures we are not only
accountable for our commitments, but in making our data public weare also encouraging transparency in the market.
We commit to monitoring and reporting in alignment with best practice onsustainability disclosures and we intend to report our net zero progress in our2023 Climate Transition Plan alongside other reports where we disclose oursustainability performance including:– LSEG Annual Report & Accounts– Annual Sustainability Report– CDP Climate Change disclosure– TCFD Report

Further information

For further information regarding LSEG’s sustainability approach
please see lseg.com

33 LSEG CLIMATE TRANSITION PLAN 2022

LSEG is more than a diversified global financial
markets infrastructure and data business.
We are dedicated partners to our customers, with an open model and commitment to excellence. Withextensive experience, deep knowledge and global presence across financial markets, we enablebusinesses and economies around the world to fund innovation, manage risk and create jobs. It’s
how we’ve contributed to supporting the financial stability and growth of communities and economies
globally for more than 300 years.

Discover more at lseg.com

LSG1569754/2-22