Encouraging growth.
Expanding opportunities.
Corporate Sustainability Report
31 December 2018

01

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Contents

Corporate Sustainability Strategy

02	Welcome to our 2018 Corporate
Sustainability Report05	Our corporate
sustainability strategy

03 Group at a glance

06 Materiality review

04 Report at a glance

07 Progress on our commitments

2018 Review
Our Markets

Performance

Appendix

10 Our Markets

30 Data reporting overview

40 Appendix i

14 Our Services

31 Environment

43 Appendix ii

17 Our People

35 Social

45 Appendix iii

23 Our Communities

36 Governance46 Appendix iv

Our culture of sustainability
This report provides an annual updateof the Group’s approach, aims andachievements across all aspectsof Corporate Sustainability (CS).
Our sustainability performance for2018 is demonstrated through bothquantitative KPIs and descriptions ofvarious initiatives and programmesthat were put in place to implement
our strategy and reach our targets.

How to use this interactive PDF–– Select the navigation tabs at the
top of each page to jump to thestart of that section

Our Services

Our People

Our Communities

28 Looking ahead

About London Stock
Exchange Group (LSEG)
London Stock Exchange Groupis a global markets infrastructurebusiness. We provide valuable
services for a wide range ofcustomers, focusing on Information
Services, Risk and Balance SheetManagement and Capital Formation.
The Group plays a vital economic
and social role in enablingcompanies to access funds for
growth and development.
For further information, visit:www.lseg.com-16%

Overall carbon footprint per
Full Time Employee£1.3 million
Donated to charity by
LSEG Foundation

100%

Employees successfully completed
mandatory Anti-Bribery andCorruption training in 2018

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

For further information, visit:www.lseg.com/about-london-stockexchange-group/corporate-sustainability.

–– Select from the contents list or
highlighted text throughout thereport, to jump to that page or
web link

Contents page
Previous page
Next page02

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Welcome to our 2018 Corporate Sustainability ReportDavid Schwimmer

Corporate Sustainability
As a global financial markets infrastructure business,
LSEG understands the vital role we play in supportingand enabling a financial ecosystem that fosters longterm sustainable economic growth, for the benefit of allparticipants in capital markets – issuers, investors andintermediaries. We are committed to supporting global
financial stability and sustainable economic growth byenabling businesses and economies to fund innovation,
manage risk and create jobs.

CEO“As the Group expands
its operations, we also
continue to review the
impact of our businesson key stakeholders
around the world”

Our core businesses are engaged in activities that directly
support this purpose. In Capital Markets, helping highgrowth companies access capital is fundamental to ouraim of promoting innovation and creating jobs. We support
SMEs through ELITE, our global educational and capitalraising programme for private high growth companies,
which now includes over 1000 companies from 40
countries. ELITE partners with local exchanges aroundthe world to develop the local funding ladder and investor
base. In Information Services, FTSE Russell has introduced
innovative tools to help support investors’ interest andinvestment in environmental, social and governance (ESG)
data factors, for example, launching FTSE Russell’s STEP
Change report to help drive better global standards inreporting and help companies measure their own
performance against peers. In Post Trade Services, LCH
plays a critical role supporting global financial stability
by reducing risk in financial markets through maximising
the number of counterparties that have access to aninternational liquidity pool, simplifying outstanding
exposures and delivering significant cost and margin
efficiencies for members and customers.
We also recognise our responsibilities to our people andtheir professional development, and we continue tosupport a culture that reflects our values of integrity,
partnership, innovation and excellence. We are committed
to supporting a culture that is diverse and inclusive, where
every individual can be his or her true self at work andfulfil his or her potential. In 2018, we introduced our firstGroup-wide Career Framework, ‘Futures’, designed tosupport colleagues in their career progression and facilitate
internal mobility across the Group. Our ‘Mentoring
Exchange’ programme was expanded globally to include
more than 800 colleagues and 50 colleagues also joined
the 30% Club cross-company mentoring scheme in the
UK. In 2018, we also signed the ‘Time to Change’ Employer
Pledge, affirming our commitment to support mental
wellbeing in the workplace. As part of our community
outreach, we continued to work with global and regional
charities which help disadvantaged young people. In 2018,
the Group’s Foundation donated £1.3 million to various
charities and our colleagues also were encouraged tovolunteer through two paid volunteer days offered toevery employee.
As the Group itself expands its operations, we also
continue to review the impact of our business on key
stakeholders around the world. Our Group Corporate
Responsibility policy has been developed to guide theway we conduct our business in line with our commitment
to ensure the long-term viability of our Group throughmanaging our environmental and social impacts andpracticing good governance.
This annual Corporate Sustainability (CS) report explains our
CS strategy and highlights the developments and progressthat we have made through the past year across our fourareas of strategic focus – Our Markets, Our Services, Our
People and Our Communities. We hope this report provides
an insight into the way we approach this important topic
across the Group and we welcome your feedback.

David Schwimmer

03

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Group at a glance
Who we are
London Stock Exchange Group is a global financial markets
infrastructure business. We provide valuable services for awide range of customers, focusing on Information Services,
Risk and Balance Sheet Management and Capital Formation.

Our Vision
To be the world’s leading financial markets partner.

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

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.

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 a provider of trusted, reliable, independent anduser neutral services. We recognise the role we play in international markets. This role encapsulates not only commercial
and performance objectives but also environmental, social and governance (ESG) responsibilities.

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.
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. Our Secondary Markets provide liquid and deep
access to financial securities to enable improved priceformation, transparency and trading efficiency.
Technology
It 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 3rd parties around the world.

For more information on our business model, see page 10of the Annual Report

LSEG offices

AIM and AIM Italia
recognised as EU SME
Growth Markets.

London Africa
Advisory Group(LAAG) reported
on ways to further
develop African
capital markets.

SwapClear cleared
over US$1 quadrillionof notional in 2018.

Enhanced due
diligence in countries
which have elevatedrisk of Modern Slavery.

FTSE Russell launched
its Stewardship,
Transition andEngagement
program for Change(‘STEP Change’) andaccompanying report.

04

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Report at a glance
Our 4 Strategic Pillars

Our Markets

Our Services

Our People

Our Communities

Supporting the sustainablegrowth of companies forlong-term economic prosperity

Enabling informed investment
decisions and transparent
markets operations

Recruiting and developing
diversified talent to fulfil
their potential

Empowering people,
enriching communities

ENVIRONMENT-16%

Overall carbon footprint per FTE
SOCIALHighlights:–– ELITE surpassed 1000 companies from40 different countries, with 11 companies
joining public markets–– Both AIM and AIM Italia designated as
European SME growth markets–– A record 54 new ESG ETFs were listed on
our markets–– 2018 was a record year for green bondlistings on our London markets

Highlights:–– FTSE Russell launched its Stewardship,
Transition and Engagement programfor Change (‘STEP Change’) andaccompanying report, the 2018
STEP Change Report–– FTSE Russell launched green realestate indexes–– FTSE Russell report found the size ofthe investment opportunity from thetransition to a green economy to be$4 trillion of market capitalisation–– LSEG partnered with Sustainalytics todeliver greater choice for investors in
integrating ESG into benchmarks
and strategy

Highlights:–– LSEG signed ‘Time to Change’
employers pledge

Highlights:–– LSEG Foundation donated £1.3 million
to charities in 2018–– LSEG implemented the Group Career
Framework to facilitate employee
career development–– Crée Ton Avenir was chosen as the new
LSEG France Partner Charity–– WIN launched in Sri Lanka and Malaysia–– Caf Onlus was chosen as the new LSEG
Italy Partner Charity–– Over 580 employees benefited from
Sharesave maturities in 2018–– £105,000 raised by LSEG employees andFoundation Matching

40%

Stretch target of female
representation for senior
management and overall
population by 2020
GOVERNANCE

100%

Employees successfullycompleted mandatory
GDPR training in 2018

Part 1
Corporate Sustainability
Strategy

06
Overview

London Stock Exchange Group plc Group Corporate Sustainability Report 2018
Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

HeadingOur
corporate
TBC sustainability strategy
STRATEGY IMPLEMENTATIONOur Corporate Sustainability (CS) strategy is defined by
6 impact areas and is executed through 4 pillars,as demonstrated in the graphic to the right.
Our Approach to CS–– To play an essential role in enabling sustainableglobal economic growthGroup Strategy

Driving global growth

Developing ourpartnership approach

Delivering best in classcapabilities

Our strategy and ouractivities are aligned to
3 strategic pillars.

As a customer-focused organisation,
we benefit from deep and broad
relationships with market participants
globally. This drives product and service
innovation and, combined with our ability
to respond effectively to secular trends,
creates growth opportunities across thefinancial markets value chain.

LSEG is set apart in the Financial
Markets Infrastructure sector throughour open access philosophy andcustomer partnership approach.
This gives us maximum flexibility todevelop commercial and corporate
opportunities amidst ongoing industry
and regulatory change.

We constantly seek to improve our
execution capabilities, customer servicing
and expertise in financial markets
infrastructure. We utilise technology, ourglobal customer relationships and theskills of our people to innovate, manage
risks and to facilitate the execution ofcross-divisional opportunities, using thecollective expertise and collaboration
across the Group.

Our CS Strategy

ConveneGrow

Disclose

Transition

Develop

Sustain

Our CS strategy is definedby 6 impact areas.

We leverage ourposition at the centreof capital markets tofacilitate dialogue
and catalyse action
towards thedevelopment ofsustainable finance.

We will help SMEs
raise capital andfund investments tocreate employment
worldwide.

We will provide
investors withinformation and tools
to assess the ESG
performance ofcompanies to enable
incorporation into
engagement
and investment.

We work with issuers
and investors toprovide solutions
that accelerate andmanage the transition
to a low carbon andsustainable economy.

We will employ
and invest in thedevelopment of
a highly diverse
global workforce
to deliver on oursustainable vision.

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

–– To ensure our CS behaviour and actions are
consistent with best-practice while generating
long-term value creation
At LSEG, we believe that good CS practices are fundamental
to our continued success and delivery of enhanced businessperformance. We set our CS objectives, above, in line with
our wider business strategy to reflect this view. This ensures
we can continue to not only strengthen global economic
growth but also fulfil a social purpose by promoting
sustainable business practices, working to sustain theenvironment and supporting the funding and developmentof small and medium-sized enterprises (SMEs).
To develop and achieve the Group CS objectives and targets,
the Group CEO established a Group CS Committee in 2011,
appointing its Chair, and the Group strategic CS pillar leads.
Each pillar lead then established dedicated working teams
drawn from business areas across the Group which areintegral to the governance of the overall CS programme.
This framework allows us to set coherent objectives withcross-Group impact and provides a platform to engage withinternal and external stakeholders. The successful executionof our CS strategy is exhibited through the achievements
made throughout 2018 discussed in this report.

Our CS Approach

Our Markets

Our Services

Our People

Our Communities

Our CS strategy is then inturn executed through thefollowing 4 pillars.

Supporting thesustainable growth ofcompanies 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.

07

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Materiality review
Prior to reporting, all CS initiatives
and activities from across the year areassessed for their materiality within
our CS strategic framework.
Items are cross referenced using both internal and external
evaluators. Internally, activities are grouped into pillars
and evaluated on their relevance to 6 impact areas andexternally 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.
Together, this framework provides a tool to:

Impact Areas
The 6 impact areas and their materiality are:

CONVENEGROWDISCLOSE

TRANSITIONDEVELOPSUSTAIN

Collaboration withthe financial industry,
charities, governments
and companies isimportant to progress
solutions for themove to a low
carbon economy andsustainable businesses.

Supporting the growthof companies and theeconomy, and accessto funding, provides
stability and safety,
and generates jobs fora growing population.

The publication andreporting of GroupESG activities inaccordance with rating
agency sustainability
recommendations
addresses the growing
investor base that
include ESG
factors into theirinvestment process.

Reducing market
risk through clearing,and moving to asustainable, stablebusiness model issystemically important
given the central role of
LSEG in the economy
and the effects ofclimate change.

Continued business
innovation, theincrease in employee
expertise and diversity,and setting ambitious
sustainability goals
strengthen our
industry position
and increase stability
for stakeholders andthe economy.

Maintaining support
for underprivileged
communities,
developing economies
and the environmentis important for the
future stability of all
stakeholders andthe communities in
the areas in which
we operate.

–– set coherent objectives with cross-Group impact–– create aligned actions 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 theircontribution towards fulfilling 5 SDGs that are relevant
to stock exchanges as set out by the UN Sustainable Stock
Exchanges initiative (UN SSE): gender equality, decent
work and economic growth, responsible consumption
and production, climate action and partnerships forthe 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

08

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities
Key:
Exceeded target
Met target
Working towards target

Progress on our commitments
In the past year, we have continued to make progress towards the commitments made in our 2017 CS report.
PillarImpact area

Objective

Progress

Our Markets
Our Services

Grow
ConveneDisclose
Transition

Set out an integrated programme and campaign
supporting the Global Sustainable Investment Centre.

–– In 2018, a specialist green finance consultancy was tasked with developing
the integrated programme across the relevant business units–– The results of the review will form the foundation for an integrated
campaign in 2019–– In 2018 an auditing firm conducted a review of all LSEG sustainability and
TCFD-related disclosures, setting out a list of actions for follow-up. These
actions have informed an action plan to enhance LSEG sustainability
disclosures in 2019-2020–– The Green Revenues report launched in May 2018 (see page 15), provides
analysis relevant to identification of climate-related opportunities on
global capital markets

Our People
Our Communities

Develop
Sustain

Identify a set of medium and long-term focus areas toinform the Group corporate sustainability programmein the long run.

Develop tools and plans to support theimplementation of the final recommendationsof the Financial Stability Board’s Taskforce on
Climate-Related Financial Disclosures.

Develop greater focus within the Group sustainability
strategy on the Group’s culture and value creation forstakeholders to align with Group strategy.
Continue making progress towards the achievementof the agreed 2020 targets2.

1. The Sustainable Development Goals (SDGs) identified here are those considered material for exchanges by the Sustainable Stock Exchanges initiative.
2. Ongoing delivery.

–– 4 high-level guiding objectives have been prioritised and will inform thesustainability action plan for the period 2019-2024, with a view to aligningto the results of the culture work stream–– A cross-functional working group has been established to work on thearticulation of LSEG culture and values, with a view to inform LSEG reportingin 2019–– For progress on our diversity targets, see Social section (page 35)–– For progress on our Environmental targets, see Environment section(pages 31–34)–– For progress on involvement of LSEG staff in volunteering see
Our Communities section (page 27)

SDGs Supported1

Progress

Part 22018 Review

10

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets
Supporting thesustainable growthof companies
for long-term
economic prosperity

As a fundamental component of
the economy, our markets, built ontransparency and trust, help ourcustomers optimise their capital
resources and let businesses thrive.
HIGHLIGHTS–– ELITE surpassed 1000 companies from 40 different
countries, with 11 companies joining public markets–– Both AIM and AIM Italia designated as European SME
growth markets–– A record 54 new ESG ETFs were listed on our markets–– 2018 was a record year for green bond listings on
our London markets

54

Green and sustainable bonds listed on our markets in 2018

1,050

Companies in the ELITE ecosystem“Our markets provide aplatform for funding global
businesses and access to anever-growing pool of green
finance capital”
Raffaele JerusalmiGroup Director of Capital Markets and Chief Executive
Officer of Borsa Italiana S.p.A.

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

11

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets continued
Initiative

ELITE
Grow

Continuing tosupport SMEs
achieve growth

ELITE is LSEG’s innovative international business support andcapital raising programme designed for ambitious, high growthcompanies. In 2018, the ELITE global community surpassed
1000 companies representing 40 countries and 35 sectors, andaccounting for 470,000 jobs. Demonstrating our commitment tosupporting global SME growth, ELITE launched in the USA,
Lebanon and Saudi Arabia.

A record number of ELITE companies joined LSEG public markets
across Italy and the UK in 2018. 11 ELITE programme graduates
took this next step in their growth, bringing the total number to 24.
ELITE Club Deal, the private placement platform that streamlines
the capital raising for ELITE companies, supported 11 companies
in raising a combined amount of €136 million.

ELITE graduation ceremony 2018

AIM
Grow

Reports
Grow

Conferences
Convene

The world’s
leading
growth market

In 2018 both AIM and AIM Italia became the 1st growth markets
in Europe to be officially recognised as European SME GrowthMarkets under legislation introduced within MiFID II.

AIM has been a source of long-term growth capital for more than
3,800 companies from around the world. During 2018, a further£5.5 billion was raised on AIM and €1.3 billion on AIM Italia.

£5.5 billion

Companies
to Inspire

Our ‘Companies to Inspire’ reports are LSEG’s way of celebrating
the fastest-growing and most dynamic SMEs. This year we issued
the 5th 1000 Companies to Inspire Britain and the 3rd 1000
Companies to Inspire Europe reports.

1000 Companies to Inspire Britain 2018 clearly illustrates
the economic potential of the UK’s SMEs and underlines theimportance of these businesses to the economy. This year
companies demonstrated revenue growth at an average rateof 71%, continuing previous year’s rate of 70%. Our 1000
Companies to Inspire Europe report also highlighted theimportance of European SMEs, with the companies included in
the report boasting an average 2-year job creation rates of 37%.

London Africa
Advisory GroupIn November, LSEG launched the inaugural series of reports
on African capital markets, developed as part of its London
Africa Advisory Group (LAAG). The 5 reports put forward
recommendations on how African capital markets could befurther developed to increase global investment flows. The
reports address 5 key topics, including developing the green
bond market for infrastructure products, capital raisingchallenges for SMEs and corporate information dissemination.

In 2018, LSEG hosted the Inter-American Development Bank’s(IBD’s) ‘Think Sustainable’ Network. The event looked at LSEG’s
approach to sustainable finance with a focus on FTSE Russelland London Stock Exchange’s Primary Markets activity as wellas advising on trends in ESG investing and green financemore broadly.

The event attracted 20 senior finance people from acrossCentral and South America – Government Finance Ministries,
Fund Managers, Banks, Pension Funds and the IDB itself. This
network hopes to build common understanding of growing ESG
issues and opportunities.

Think
Sustainable
Networkraised on AIM in 201880%of employment in Africa from SMEs

12

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets continued
Initiative

Green
Finance
Grow
Transition
ConveneGreen bonds2018 saw 36 new green bonds listed on the LSE, raising a
total of over £6 billion and of which 56% were international,
reinforcing LSEG’s status as a leading global centre forsustainable and green financing. Highlights include the
1st sovereign international green bond (Fiji £21 million) to
trade on the green bond segment on LSE’s International
Securities Market (ISM), and the largest ever green bondlisting on London Stock Exchange, The Industrial andCommercial Bank of China raising £1.2 billion.

In 2018, Borsa Italiana’s Green & Social bonds segment
was awarded a Certificate of Recognition at the prestigious
Green Bond Pioneer Awards organised by the Climate Bonds
Initiatives, new partner on our Fixed Income markets.
This award recognises of our Group’s leading internationalrole in promoting green finance and sustainable investment.
18 new Green or Sustainable bonds were listed and over
€45 billion was raised across 70 instruments in 2018.
Fiji sovereign green bond welcome

These landmark transactions bring the total number of green
bonds listed on our London markets to 95, which have raisedaround £19 billion.

Green Bond
Roundtable

As part of the UK Government’s annual Green Great Britain
Week, LSEG convened a diverse group of fixed income experts
to discuss their perspectives on the continued growth anddynamics of the Green Bond market.

This underlined the importance of market participants working
together to sustain the growth of this asset class to support thetransition to a low carbon economy.

Green Equity
and ETFs

At year end, we had 132 green companies on our markets,of which 41 are listed on AIM. This includes 20 green funds on
our London markets, 4 of which came to market in 2018, raisinga total of £242 million. This included SDCL Energy Efficiency
Income Trust (SEEIT) which is London’s 1st listed energy
efficiency fund.

In 2018, a record 28 ESG ETFs were listed on our London market,
bringing the total number to 52, with value traded up 69% year
on year. Our Italian ETFPlus market saw 26 new ESG andsustainable ETF’s listed, bringing the total up to 49.

SDCL opens the market in London

Charity
Bonds
Grow
Transition

Charity bonds

Retail Charity Bonds is an issuing platform enabling UK charities
to raise medium-term debt finance through bonds issued toretail and wholesale investors.

In 2018, Retail Charity Bonds PLC issued a bond raising £50m;
the proceeds of which will be loaned to Belong Limited, a
not-for-profit organisation providing care facilities across the UK.

13

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Our Markets continued
Initiative

LSEG ESG
Reporting
Guidance
Disclose
ConvenePromoting GoodESG Disclosurein Emerging
Markets

To support ESG disclosure in emerging markets LSEG hosted aroundtable organised by The International Finance Corporation(IFC), in collaboration with the UN Sustainable Stock Exchanges(UN SSE). This event marked the launch of the IFC’s guidance
which was closely aligned with LSEG’s own ESG Reporting
Guidance, and an associated a roundtable discussion on‘Disclosure and Transparency and ESG Integration in
Emerging Markets’.

Attendees included investors, stock exchanges and regulators.
Participants discussed the needs of today’s investors for ESG
disclosure, global trends in sustainability reporting regulation,and the best platforms to address sustainability.

IFC opens the market in January 2018

EventsConveneTransition

Education on
ESG disclosure
in Italy

On 15th November, Borsa Italiana in partnership with FTSE
Russell convened all the Italian listed companies covered by
FTSE Russell ESG assessment to raise their awareness about
FTSE Russell’s ESG methodology.

The session addressed FTSE Russell’s ESG scoring and rating
approach, and how adoption of global reporting standards
can improve access to international capital and broaden
the investor base.

Annual review
of ESG
disclosure on
LSEG markets

Every year, we benchmark our markets on the quality of ESG
disclosure of our listed companies, based on research endorsedby the UN SSE initiative which measures and tracks how issuer
disclosure over time is improving across different markets.
This year, FTSE Russell contributed to the research as data
partner. In line with FTSE Russell’s ESG methodology, a new
focus on sector materiality was introduced in this year’s review,
part of the UN SSE ‘2018 Report on Progress’. The sample used
included the more than 4,300 companies. Among large stock
exchanges (those with at least 100 listed companies with over
$1 billion in sales) the London Stock Exchange had the highest
disclosure rate for greenhouse gas (GHG) emissions, with anear-perfect 97% disclosure rate for its listed companies.
Overall, Borsa Italiana also performed well achieving the 6th
position globally for disclosure, while London Stock Exchange
ranked 14th.

Stock exchange
Nasdaq HelsinkiEuronext Paris
BMW Spanish Stock Exchanges
Deutsche Börse
Euronext Amsterdam
Borsa Italiana
Stock Exchange of Thailand
Johannesburg Stock Exchange
Oslo Børs
SIX Swiss Exchange
Australian Securities ExchangeEuronext Brussels
Santiago Securities Exchange
London Stock Exchange
Nasdaq Stockholm

Italian
Sustainability
Day

Following the success of the event in 2017, Borsa Italiana hosted
it’s 2nd Sustainability Day, endorsed by the UN SSE initiative,
to raise awareness among market participants and facilitate

dialogue between issuers and investors on ESG and sustainability In parallel, an open conference addressed a range of
topics. 23 companies listed on Borsa Italiana met investors insustainability topics such as ESG communication, green bonds
over 100 one-to-one meetings focused on sustainability matters. and sustainability strategy for over 450 attendees. The event wasa response the continuing trend of investors incorporating ESG
factors into their investment strategies.

Disclosure
96.7%
1
86.7%
2
82.8%
3
77.3%
4
74.8%
5
73.2%
6
73.1%
7
72.4%
8
71.1%
9
67.5%
10
62.6%
11
62.5%
12
60.0%
13
58.0%
14
54.9%
15

Growth
40.9%
29.9%
14.5%
66.1%
46.2%
60.6%
36.6%
37.2%
32.4%
29.7%
76.9%
63.1%
66.6%
40.7%
10.3%

18
28
33
5
15
8
23
22
26
29
3
7
4
20
34

Timeliness
0.0%
32
57.1%
16
74.2%
10
68.5%
12
82.8%
7
51.4%
17
65.7%
13
94.2%
3
91.4%
4
77.1%
9
97.1%
2
40.0%
20
0.0%
30
80.0%
8
88.5%
5

14

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

2018 Review
Our Services

Performance
Our People

Appendix

Our Communities

Our Services
The Group supports informed andEnabling informed
sustainable investment decisions enablingand information flows along theinvestment decisions data
investment chain. We also provide
systemically important infrastructure
and transparent
services that support and enablegrowth, from market failure
prevention mechanisms and responsible
markets operations sustainable
investment to regulatory reporting

mechanisms, through an open accessapproach that underpins all our operations.
HIGHLIGHTS–– FTSE Russell launched its Stewardship, Transition andEngagement program for Change (‘STEP Change’) andaccompanying report, the 2018 STEP Change Report–– FTSE Russell launched green real estate indexes–– FTSE Russell report found the size of the investment
opportunity from the transition to a green economy
to be $4 trillion of market capitalisation–– LSEG partnered with Sustainalytics to deliver greater
choice for investors in integrating ESG into benchmarks
and strategy$1.4 billion

Commitment to tracking FTSE4Good TIP Taiwan ESG Index“Our services are in a uniqueposition to promote goodsustainability practices,
as well as provide market
participants with the data
they need to incorporate
sustainability factors into
their investment strategies
and business decisions”
Mark Makepeace
Non-Executive Chairman, Information
Services Division and Chair of the
LSEG Corporate Sustainability Committee

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

15

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

2018 Review
Our Services

Performance
Our People

Appendix

Our Communities

Our Services continued
Initiative

FTSE Russell
Disclose
Transition

UN Sustainable
Stock Exchange
ReportFTSE Russell partnered with the UN to provide data and analysis
that enables the quality of ESG disclosure across exchanges
globally to be assessed.

This all fed into the report ‘UN SSE Report on Progress 2018’
and follows on from LSEG’s leadership role chairing the UN SSE
Advisory Group on ESG Disclosure.

Transition
Pathway
Initiative

FTSE Russell has partnered 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. The
TPI uses a subset of FTSE Russell’s ESG Ratings data from the
Climate Change Theme to evaluate companies’ management ofgreenhouse gas emissions and low-carbon transition efforts.

In 2018 FTSE Russell hosted a market open ceremony and theAsset Owner Climate Summit to review the latest TPI analysis
and facilitate dialogue between companies and investors aroundthe state of transition and action that can be taken by asset
owners to decarbonise their portfolios.

For more information on this report, see page 13.

TPI Asset Owners Climate Summit held at LSEG in 2018

Stewardship,
Transition andEngagement
Program

In May 2018, FTSE Russell launched its Stewardship, Transition
and Engagement program for Change (‘STEP Change’) andaccompanying report, the 2018 STEP Change Report. The STEP
Change initiative aims to help drive better global standards insustainable investment and reaffirms LSEG’s commitment topromoting sustainable investment; the STEP Change reportprovides an in-depth review of FTSE Russell’s approach tostewardship, promoting transparent ESG methodologies andLaunch of FTSE
Russell Report:‘Investing in the
global green
economy’

FTSE Russell launched the inaugural ‘Investing in the global
green economy: Busting common myths report’, calculating forthe 1st time the size of the investment opportunity from thetransition to a green economy, which was found to be $4 trillionof market capitalisation. FTSE Russell gathered and analysed
data from over 14,000 companies using their proprietary Green
Revenues data model.

The report highlights the growing green economy and dispels
the myth that it is small, undiversified and underperforming,
given that FTSE Russell’s broadest green indexes haveoutperformed their parent benchmarks over the previous
5-year period.

assessments. These aim to assist asset owners and asset
managers in their investment decisions and help companies
understand and measure their own performance against
their peers.

Launch of FTSE Russell Report: ‘Investing in the global green economy’

Smart
Sustainability

The 5th annual FTSE Russell global institutional Smart Beta
Survey, which comprised responses from approximately 200
asset owners from around the world, noted the significance ofSmart Sustainability for global asset owners.

The results demonstrate strong interest in applying ESG
considerations to smart beta, known as smart sustainability,with 55% of European asset owners anticipating applying
ESG considerations to a smart beta strategy. The main
rationale provided for ESG integration into smart beta wasfor societal good.

76%

of European asset owners reported that their organisation iscurrently implementing or evaluating ESG considerations in theirinvestment strategy

16

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

2018 Review
Our Services

Performance
Our People

Appendix

Our Communities

Our Services continued
Initiative

ESG
Indexes
Transition

LSEG
AcademyGrow

ESG Ratingsand 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 2018, the model wasused by the Asia Investor Group on Climate Change (AIGCC) in a

recent report, ‘Building on the base: TCFD Disclosure in Asia’ andthe Taiwan Bureau of Labor Funds selected the FTSE4Good TIP
Taiwan ESG Index, which uses the overall scores from the ESG
Ratings, for a 5-year $1.4 billion mandate.

Genderdiversity Index

In 2018, FTSE Russell announced the launch of its FTSE Womenon Boards Leadership Index Series, designed to integrate
leadership in gender diversity and social impact into broad

market benchmarks. The index solution increases exposure tocompanies demonstrating gender leadership at the board leveland strong social impact.

FTSE Global
Choice IndexSeriesThe FTSE Global Choice Index Series aims to help meet risingdemand from investors who want to align their values with theirportfolios. These indexes assess companies based on the impact
their products and conduct on society and the environment.

In 2018, Vanguard Investments licensed 3 ESG indexes fromthe FTSE Global Choice Index Series to underlie 3 new Vanguard
ESG ETFs.

Green Real
Estate Index

In December 2018, FTSE Russell announced the launch of new
green real estate indexes. The FTSE EPRA Nareit Green Indexes
allows investors to integrate climate risk in their investment
strategies in listed real estate, an asset class that historicallyhas lacked such tools. They provide an extension to the FTSEEPRA Nareit Real Estate Index Series, a global series of leading
listed real estate benchmarks which are tracked by over $340
billion in assets.

Sustainalytics
Partnership

In 2018, FTSE Russell together with Sustainalytics, a global
leader in ESG and corporate governance research, ratings andanalysis, announced a new strategic partnership to serve thegrowing demand for ESG integration into investment strategies.

Through this partnership, FTSE Russell and Sustainalytics will
work together to develop new FTSE Russell ESG indexes using
the new Sustainalytics ESG Risk Ratings, the 1st of which is
expected to launch in 2019.

LSEG Academy

As part of its mission in support of emerging markets, LSEG
Academy, the training centre of the London Stock ExchangeGroup, developed and delivered, a bespoke series of 3
workshops for the Egyptian Stock Exchange (EGX). The
programme developed EGX’s knowledge in world-leading
capital market practices, technology and regulations, helping
EGX to execute its strategic objectives and open its market tointernational investors. The training has opened new channelsof partnership between the exchanges.

in Information Technology services, core and essential
elements within an exchange system growth process. The
course also offered the opportunity to discuss the applicationof emerging technologies such as Blockchain in the evolving
capital markets landscape.

LSEG Academy also held a week-long training programme to
6 Saudi Stock Exchange (Tadawul) employees. The training
highlighted the most innovative approaches, tools and processes

A training programme was also delivered to Bank of China
on ‘Sustainable finance: what role for corporate banking?’.
The programme was delivered to a group of Bank of China
senior employees including about 25 executive vice presidents
from Bank of China’s oversea branches such as Hong Kong and
New York.

$1.4 billion

Commitment to tracking FTSE4Good TIP Taiwan ESG Index$340 billion

Tracking the FTSE EPRA Nareit Real Estate Index Series

LSEG Academy delivers training for the Egyptian Stock Exchange

17

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services2018 Review
Our People

Performance

Appendix

Our Communities

Our People
Recruiting anddeveloping
diversified talent tofulfil their potential

The engagement of our colleagues iscentral to our organisation. We rely on
the skills and determination of ourcolleagues to deliver Group strategy
and create a culture that ensures we canattract, retain and develop the best talent.
HIGHLIGHTS–– LSEG signed ‘Time to Change’ employers pledge–– LSEG implemented the Group Career Framework tofacilitate employee career development–– WIN launched in Sri Lanka and Malaysia

580

Over 580 employees benefited from Sharesave maturities
in 2018150

Over 150 interns joined us across 6 countries“Our people are the heartof everything we do at LSEG.
They embody our valuesof Integrity, Partnership,
Innovation and Excellence
which drive our businessforward. We believe thecontinued development
and engagement of ourcolleagues is vital to thedelivery of our strategy”
Tim Jones
Group Director of Human Resources

Impact Areas:
Develop
Sustainable
Development Goals:

18

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services2018 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Initiative

Diversity andInclusionDevelop

Summary
Beliefs andStrategy

LSEG values diversity and equality in the widest sense andrecognises them as key drivers for development and innovation.
Diverse teams create opportunity, mitigate risk and act as acatalyst for new ideas.

As such, we strive to be an employer of choice for a diverse rangeof talent. To do this, we have implemented our Diversity andInclusion strategy.

Work of theDiversity andInclusionCommittee

The Diversity and Inclusion (D&I) committee is chaired by our
Chief Risk Officer and meets quarterly to review strategy andprogress. We continue to ensure that our culture creates anenvironment where all feel welcome at LSEG.

All colleagues participate in unconscious bias training when
they join as part of their onboarding.

Armed Forces
Covenant

LSEG signed the Armed Forces covenant in 2017, an assurance
that those who serve or served in the armed forces, and theirfamilies, will be treated fairly and not disadvantaged. In supportof this in 2018, LSEG sponsored The Business of the Year-Start Upaward and in October hosted a Market Open to celebrate thecharity, X-Forces Enterprise (XFE).

In the past 5 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 inaid of Supporting Wounded Veterans, and took part in the annual
Poppy Appeal organised by the Royal British Legion withdonations matched by LSEG Foundation.

We currently brief all recruitment partners about our diversity
agenda and by 2020, we aim to achieve a stretch target of 40%
female representation for senior management and our overall
staff numbers.

X-Forces Enterprise opens the market in October 2018

Employee
Employee
Development Engagement
and Wellbeing
Develop

Group Career
Framework

An engaged workforce is critical for our continued success, andwe remain committed to building a high performing culture
where our people can thrive. Our ‘Have Your Say’ engagement
survey provides all colleagues with an opportunity to share theirviews on what it is like to work at LSEG. In October 2018, we
achieved a response rate of 76%, ensuring that we have a highly
representative and robust baseline to drive meaningful actions
across the Group.

Our Executive Committee have committed to lead work at theGroup level to address those areas which they believe will
increase employee engagement, support collaboration andprovide our people with an environment that allows them todevelop their careers at the Group.

As we continue to develop our culture, we place equal emphasis onwhat is delivered and how it is delivered. The Career Framework,
which we launched in 2018, has allowed us to calibrate individual
performance against like skilled peers, and we continue to increase
the data available for performance assessments including
360-degree feedback for Executive Committee members and‘Have Your Say’ feedback for Managing Directors.

2.	Collaboration – fostering an environment that encourages
greater cross-Group collaboration, providing regular updates,
sharing and rewarding best practice.

We have 4 key areas of focus:

3.	Leadership – continuing to develop leadership andmanagement capabilities to better manage performanceand development of our colleagues globally.

1.	Vision, purpose and strategy – providing regular updates on
the Group’s progress to ensure all colleagues understand our
vision, purpose and strategy and how they contribute to it.

4.	Career Development – recognising outstanding performance,
supporting career development, promoting an inclusive culture
and the general wellbeing of our colleagues.

Our global Career Framework, Futures, was launched across all
our divisions in 2018. Futures is fully transparent showing whatskills, knowledge and behaviours are required for every role in theorganisation from entry-level Associate roles right through to theroles on our Group Executive Committee. The launch of Futures
is an important milestone for LSEG, providing clarity for allcolleagues through a single consistent framework describing theknowledge and skills required, as well as introducing the LSEG
behaviours. Futures will help us to increase internal mobility,
and create more opportunities for cross-divisional moves, all ofwhich supports our agenda to retain as well as attract talent to
the Group.

19

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services2018 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Initiative

Employee
Development
and wellbeing
continued
DevelopWellbeing

Colleague
Forum

Following feedback from our ‘Have Your Say’ survey, we createdan approach to wellbeing which spans 5 areas: financial, mental,
physical, social purpose, and work-life balance. In May 2018 welaunched the LSEG Wellbeing Survey to allow us to tailor our
strategy to best suit our colleagues. We remain committed tofostering a positive culture of wellbeing at LSEG and this willcontinue to be a key area of focus for the Group in 2019. Our
Global Mentoring Programme has connected 800 colleagues
across divisions and functions. We have also taken steps toimprove access to working flexibly for all colleagues. Our
Workplace Choice programme has been phased from 2018 into
2019 with positive feedback on productivity, team relationships,
client service, engagement and work-life balance.

We also signed the ‘Time to Change’ Employer Pledge in 2018,confirming our commitment to supporting colleagues inchanging the way we act and think about mental health atwork. This was reflected in the program of events we ran
throughout the year, including the Wellbeing Speaker Series
where specialists in Sleep, Resilience and Nutrition shared
their experiences with colleagues.

Providing colleagues with the opportunity to meet with theGroup’s leaders to raise questions and ultimately shape thefuture success of LSEG is important to us. To facilitate this,we have a variety of colleague forums, employee engagement
committees and representative bodies in place globally.

In 2016, the UK Colleague Forum launched ACTIVE, a directory ofclubs and groups available to London-based employees. Work isunderway to bring together the activities currently overseen by
the LCH Sports & Social Club with those of ACTIVE so that clubs
and groups are available to employees are streamlined andavailable across the entire Group.

The Forum meets on a regular basis to discuss and provide input
to a number of key business initiatives and business change
programmes. These include people-focused initiatives, such as
contributing to the launch of LSEG’s Wellbeing programme.

Rewards andSharesave

The Group’s reward strategy focuses both on the short term,
through an annual bonus scheme linked to our global
performance management approach, and on the Group’s
medium-term performance through share schemes aimed
at senior management and all staff. The Long-Term IncentivePlan, details of which can be found in the Group’s Annual Reporton page 92, aligns the performance and reward of our senior
management team with long-term performance and growthof the Group.

LSEG signs Time To Change Employers Pledge

Our employee share ownership scheme, Sharesave, is available
to all permanent employees across France, Hong Kong, Italy,
Malaysia, Sri Lanka, and the UK and US. Colleagues can save up
to £500 or equivalent per month, with the option, after 3 years,of using their accumulated savings to buy LSEG shares.
During 2018, over 580 employees across 5 countries benefited
from Sharesave maturities including share price appreciation ofc.120%, reflecting the Group’s performance over the 3 years of
the plan. Participation was extended further, with almost 1000
employees joining the 2018 scheme, which increased overall
participation to 54% of eligible employees.

Sri Lanka has an employee engagement forum that meetsregularly to discuss and progress their employee engagement
plan, whilst France and Italy-based colleagues are represented
by the Works Councils and Trade Unions respectively, all of whichhold regular meetings on important business initiatives.

580

Over 580 employees benefited from Sharesave maturities
in 2018

20

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services2018 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Initiative

Staff Training
Develop

Learning andDevelopment

Throughout 2018, our Learning Management system,
The Learning Exchange, successfully delivered blended
development solutions across all LSEG locations including
our recently opened Bucharest office. The Learning Exchange
reaches all LSEG colleagues globally, enabling them to access
content and to sign up to attend courses.
We tailored our core offerings to meet business and audienceneeds, focusing on supporting line managers throughout thecolleague life cycle, with an emphasis on managing change,
coaching and developing their teams.

Graduate andInternshipprogrammes

Our Graduate and Early Career Programme continues to support
the Group’s growth, talent pipeline and diversification. The Groupnow has almost 100 graduates on programmes globally, hosted
over 150 internships across 6 countries this year and built
presence in new locations such as Malaysia and Romania.
Across the year events were held to encourage women into
finance and technology, resulting in 44% female representativeacross the global graduate and intern classes.

ComplianceTraining

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

A practical and flexible delivery approach was adopted
throughout 2018, maximising colleague impact throughproviding real-time, in-house delivered webinars, and courses
delivered by video conference in addition to our face to facecourses – enabling colleagues from every single LSEG location
to be able to participate and encouraging colleagues to takeownership of their career. Every line manager was supportedwith face to face sessions centred around the rollout of our
1st Group-wide Career Framework.

Our mandatory training modules were designed to drive an
inclusive culture and behavioural impact. Line managers
received a dedicated module enabling them to proactively
manage the colleague experience from on-boarding to exit.
Every new line manager also completed an online module raisingawareness of unconscious bias.

The Early Career Programme also supports the Group’s culture
by assessing candidates alongside our values and behaviours,
while facilitate volunteering days for interns and graduates,
to show our commitment to local communities.
In 2019, we will pilot a Spring week programme aimed at 1styears studying STEM (science, technology, engineering andmathematics) subjects.
2018 UK Graduate cohort

Training
Data Protection (GDPR)
Group Physical Security
Financial Crime & AML
Preventing Bribery & Corruption
Information Security (& Cyber risk)
Conflicts of Interest
Introduction to LSEG Policies
Unconscious Bias
Competition Law
LCH Incident Management
EU Benchmark Regulation
Security Awareness for Privileged Access Users
Handling Client Complaints & Queries
1. Not including Italy

Coverage
All Staff
All Staff
All Staff
All Staff
All Staff1
All Staff1
New Joiners
New Joiners
New Joiners
All LCH Staff
All FTSE Russell Staff
All IT Development Staff
All ISD staff

Completion Statistics
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

21

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services2018 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Initiative

Health and
SafetyDevelop

Health and
SafetyThis year, the existing electronic workstation assessment system
was developed further to incorporate General Data Protection
Regulation (GDPR) and new corporate requirements. A new
flexible working module was also added to reflect the continuingGroup focus on enabling flexible working. This updated
assessment process is now being rolled out globally to bringconsistent training, advice, guidance and equipment to staff
working across the Group.

Focus has also been directed towards near-miss reporting, withthe aim of eliminating possible safety hazards in the workplace
where incidents have occurred, which have not led to actual
injury, but could have done so. A series of talks are being
arranged with staff and contractors to focus on betternear-miss reporting.
In 2018, an accessibility audit was undertaken across the UK
properties to provide guidance on areas that would need focus
to better support those working with disability.

Our People in
Numbers
Develop

The Changing
EmployeeLandscapeOn 31 December 2018, the Group employed 4,587 employees,
down 6.5% from the end of the previous reporting period,
mainly due to the disposals of Exactpro and MillenniumIT
ESP, completed at the start of 2018. On an organic basis,
we can report on the following KPIs:

Employee-based indicators
New Hires
Voluntary turnover
Permanent contracts
Fixed term contracts

Gender Pay
Gap Report
Develop

Gender Pay
Gap Report

At LSEG, we recognise that the combined qualities of a diverse
group of colleagues and a commitment to equal opportunity for
all is key to strengthen our performance as an innovative,
customer-focussed and collaborative organisation. LSEG is fullycommitted to industry wide gender balance which is one key
area of focus of our diversity programme.

In line with UK requirements, we published our 2nd Gender Pay
Gap Report in March 2019.

2018
978
11%
98%
2%

While we do not differentiate pay between men and women forequivalent roles, there is an under representation of women insenior roles, which directly impacts the gender pay figures.

A strong focus has been placed on improving safety whencontractor works are undertaken in Group premises, going
forward, a new electronic permit system will be in place toprovide a platform to process, assess, approve and monitor
contractor works. The system will process the required
Risk Assessment Method Statement (RAMS), to ensurethat all contractor works undergo a suitable and sufficient
risk assessment.

2017
1,228
10%
97%
3%

2016
1,055
6%
98%
2%

2015
1,010
10%
96%
4%

We are committed to improving diversity and developing our
inclusive culture at LSEG. In doing so, and by increasing our
representation of females at leadership levels, we expect to see
an improvement in our figures in the coming years. To reinforce
our actions, each Executive Committee member has a sharedstrategic objective to increase diversity and divisional targets byfocussing on attraction, recruitment, development, retention andprogression at all levels.

22
Overview

London Stock Exchange Group plc Group Corporate Sustainability Report 2018
Corporate Sustainability Strategy
Our Markets

Our Services2018 Review
Our People

Performance

Appendix

Our Communities

Our People continued
Women Inspired Network (WIN)
LSEG’s Women Inspired Network (WIN), now in its
4th year, continues to nurture female talent at alllevels across our offices in Canada, France, Italy, Malaysia,
Sri Lanka, the UK and US. WIN is composed of 3 Pillars,
Winning Communities, Winning Networks and Wining
People. Local sub-committees of active volunteersorganise initiatives across the 3 pillars and connects the
network globally to ensure LSEG remains an employer ofchoice for women and men.

WIN Pillars

Winning Communities
We aim to inspire female leaders of the future. WIN has
worked with local groups across the world such as BlueEngine Teaching Apprentices (BETA) in New York, Italy’s
Young WINners program and WIN UK partnered with theEast London Business Alliance (ELBA) to help inspire thenext generation of girls to enter a career in the sector.

Winning Networks
We aim to build relationships with other diversity networks
and increase networking opportunities for WIN members,
for example, through our membership in the London
Women’s Forum.

Winning People
We aim to nurture talent within the business and provide
all employees with the best chance of succeeding in theircareer through relevant events, such as on International
Women’s Day and the centenary of women gaining thevote in Britain, WIN profiled more than 100 women fromacross our business divisions and global locations on
digital screens across all offices.

WIN Americas
WIN Americas hosted a Q&A series with female leadership across the Group in the 1st WIN Leaders in the Spotlight panel. The event showcased not only the argument for diversity inleadership but actionable advice that managers and employees can implement to drive change towards a more include and diverse organisation. Internally, WIN members were invitedto ‘own their success’ by attending WIN Fort Mill’s series of sessions on career guidance and financial planning.
WIN Italy
In March, WIN Italy in collaboration with the UK Embassy in Italy and Freshfields hosted the inaugural Italian Women in Finance Awards. The initiative aims to celebrate female talent anddiversity in the finance industry in Italy. In addition to rewarding successful female professionals, the awards recognise companies that have created an environment where successful
female role models are acknowledged within their organisations and consistently support diversity in its broadest sense. Other notable initiatives include WIN Italy’s series focused on
financial, mental, physical wellbeing and social purpose.
WIN Malaysia
WIN Malaysia launched at the end of 2018, hosting its 1st event to introduce the Global WIN network to colleagues in Malaysia and run icebreaker sessions.
WIN Sri Lanka
WIN Sri Lanka launched in April 2018 with its inaugural session hailed by those attending as ground-breaking by enabling a frank, open discussion on gender issues and their direct impact
on colleagues. In its 1st year, WIN Sri Lanka saw one of its members winning the Gold Award in the Information Technology category at the Top 50 Professional and Career Women Awards
2018. WIN Sri Lanka remains heavily involved with Tech industry initiative Diversity Collective Lanka to drive women’s empowerment within the Group and LSEG’s wider community.
WIN UKWIN UK partnered with the East London Business Alliance (ELBA) to help inspire the next generation of girls to think about their future careers, particularly in Finance and Technology. The
WIN UK campus initiative hosted a series of events for female students from various universities, designed to provide networking opportunities and inspire young women to pursue careers
in Finance and Technology. Over the summer, WIN UK hosted work experience students from Mulberry School for Girls and Clapton Girls Academy. The 1st WIN networking session for AIM
professional advisors took place in 2018 and was attended by over 40 representatives from across our nominated advisers.

23
Overview

London Stock Exchange Group plc Group Corporate Sustainability Report 2018
Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2018 Review
Our Communities

Performance

Appendix

Our Communities
Empowering
people, enrichingcommunities

As our global presence grows, we monitor
our impact on the communities around us
and how it aligns with our strategy andvalues. We aim to promote sustainable
practices, support local communities
and the environment where we have asignificant business presence.
HIGHLIGHTS–– LSEG Foundation donated £1.3 million to charities
in 2018–– Crée Ton Avenir was chosen as the new LSEG France
Partner Charity–– Caf Onlus was chosen as the new LSEG Italy
Partner Charity£105,000

raised by LSEG employees and Foundation Matching“As a global business,
we recognise the need tosupport and develop local
communities where wehave significant presence,as well as promotesustainable practices”
Diane Côté
Chief Risk Officer and Chair of LSEG Foundation

Impact Areas:
SustainSustainable
Development Goals:

24

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2018 Review
Our Communities

Performance

Appendix

Our Communities continued
Initiative

LSEG
Foundation
Sustain

LSEG
Foundation

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 to empower
people and enrich communities.

The Foundation is a grant-making charitable body, focusing
on projects that help young and disadvantaged people reach
their full potential by developing life skills and businessacumen. It places focus on entrepreneurship, encompassing
the communities in which the Group has a significant numberof employees.

In 2018, LSEG Foundation’s approach and positioning was
reviewed to further align it with the overall Group CS Strategy
and to also recognise the importance of volunteering by LSEG
employees to enhance the impact of our charitable giving.
More information on the Foundation’s strategy can be foundon page 27.

Partner
Charities
Sustain

Global Partner– UNICEF

UNICEF has been LSEG’s global charity partner for over 20 years.
A key project between LSEG and UNICEF is Zambian Girls 2030,
which aims to equip more than 11,000 Zambian girls with

employability skills and help them access formal employment
in Zambia.

LSEG also contributes to the UNICEF UK Children’s
Emergency Fund.

UK Partner –School-Home
SupportSchool-Home Support provides support to children and families
to overcome barriers to education and improve engagement inlearning and attendance. 2018 marked the 1st year of LSEG’s
3-year partnership with the charity.

During the year, LSEG have led a range of sessions led by LSEG
staff with young people from local schools to gain insight into
work, provided careers support for parents seeking employment,
as well as fundraising.

Lister Community School World of Work day at LSEGUS Partner –City Harvest

2018 marks the 2nd year of the Foundation’s 3-year
partnership with City Harvest, New York City’s largest foodrescue organisation, helping to feed the more than 1.2 million
New Yorkers who are struggling to put meals on their tables.

Colleagues in New York this year continued to support City
Harvest, a programme that rescues excess food and delivers
it to the hungry. LSEG’s support in 2018 provided more than
150,000 lbs of food for 350 families and allowed 34,000 people
to take part in a nutrition education course.

Staff also joined the City Harvest Skip Lunch event, where
employees donated the money they would usually spend onlunch to help feed hungry children. The funds raised by LSEG
employees provided enough food to feed over 700 children
throughout summer 2018.

Current France
Partner –Unis-Cité

Unis-Cité’s purpose is to bring young people who have dropped
out of school back to education or to employment, to increase
their chance of acquiring autonomy, stability and wellbeing in
the future.

The Booster programme is steered by the French Ministry
for Education and the Civic Service Agency. The aim is
to develop internal and external competencies, such as
self-confidence, interpersonal skills, computer proficiency,
team work and mathematics.

In May a mentoring day was held where volunteers
coached young people to help develop their skills and inJune volunteers conducted mock interviews to help them
prepare for finding employment.

25

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2018 Review
Our Communities

Performance

Appendix

Our Communities continued
Initiative

Partner
Charities
continued
SustainRegional
Charitable
Giving andVolunteering
Sustain

Future France
Partner –Crée Ton Avenir

Crée Ton Avenir focuses on reducing the impact of
disadvantaged backgrounds on students’ education andfuture careers.

This 3-year partnership will start in 2019 and help Crée
Ton Avenir broaden its scope to reach many more students,
helping them identify their core competencies and regain
self-confidence.

Current Italy
Partner –COMETACOMETA’s mission is to help at-risk students develop thetechnical and soft skills required to enter the job market or
higher education, after achieving a professional qualification.

In 2018, 24 LSEG volunteers supported 50 students to further
their education, acting as mentors for skills such ascommunication, finance, mathematics and English.

Future Italy
Partner –Associazone
CAF Onlus

CAF Onlus, a charity that provides support and aid for abused
minors and distressed families, was announced as LSEG’s new
Italy Charity Partner in 2018. The 3-year partnership will begin
in May 2019.

UK

Charity Touch Rugby Tournament
LSEG organised the 4th annual touch rugby tournament in 2018
in partnership with the Harlequins Foundation, a charity thataims to use the power of sport to create opportunities for young
people in local communities. This year the tournament raised
more than £37,000 and involved 26 companies from across theCity of London.

In addition, through face-to-face meetings and video calls, thementors provided interview practice, case studies and worked on
business plans with the students.

Zurich to Milan Cycle Challenge
15 colleagues from across the Group undertook a demanding
cycle challenge, riding 550 kilometres from Zurich to Milanover 4 days. The ride crossed the Alps including 2 ascents of theinfamous Stelvio Pass and finishing outside the Borsa Italiana
office in Milan. The event raised over £40,000 for UNICEF once
fund matching by LSEG foundation was applied.
Team LSEG play at the Charity touch Rugby Tournament

US

Junior Achievement
Junior Achievement’s mission is to inspire and prepare young
people to succeed in a global economy. During the school year,
Fort Mill employees are actively engaged in volunteer activities

to educate local elementary and middle school students about
workforce readiness, entrepreneurship and financial literacy
through hands-on programs.

Italy

Officine Buone
Many donations have been made to Italian charities, such as€15,000 to Officine Buone, a non-profit organisation that creates
innovative programmes to allow young people to gain

experience by volunteering in environments like hospitals andpromotes young entrepreneurship projects through art, music
and theatre.

26

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2018 Review
Our Communities

Performance

Our Communities continued
Initiative

Regional
Charitable
Giving andVolunteeringcontinued
SustainFrancel’Étoile de Martin
Colleagues in LCH S.A. held 2 bake sales for Children’s Cancer
research charity, l’Étoile de Martin. The charity also organises
events for young patients and offers support to them andtheir families.

Sri Lanka

Micro-volunteering
In 2018, several micro-volunteering events were organised tobenefit local communities. Examples of these initiatives include
fundraising to purchase a portable ventilator for the national
hospital of Sri Lanka, a children’s coding club to introduce thebasics of coding at an early age, organising a blood donation
drive to address the shortage at the National Blood Transfusion
Service and participating in a city clean up in Colombo.

Appendix27

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2018 Review
Our Communities

Performance

Appendix

Our Communities continued
Community Contributions from the Group in 2018
Based on the London Benchmarking Group (LBG)
methodology, we report our donations and other factors thatreflect the Group’s overall engagement with our communities.
In 2018, the Group made an overall donation to LSEG
Foundation of £1,254,000 which is 12% higher than 2017.
An additional £207,000 was donated directly to charities
by the Group, bringing total donations to £1,461,000,
19% higher than 2017 spending. The 2018 Charity
Trading Day raised £616,000, 21% higher than 2017.
Principal sources of funding 2018

Employees
Foundation
Day

Corporate

Fines

How LSEG Foundation’s strategy aligns to our business priorities

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

89% 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 attitudechange, termed ‘raised aspirations’, 37%, or at thedevelopment of skills and personal effectiveness, 52%.
The small percentage of ‘Quality of life or well-being’
donations equivalent (11%) is in response to emergencies(UNICEF Children’s Emergency Fund).
Impact of LSEG Foundation grant on beneficiaries
11%

Encouraging growth. Expanding opportunities.

Employees make donations andorganise fundraising events

In 2018, LSEG Foundation Committee set out a list of strategic
priorities for 2019-2022, supported by an action plan based on
4 focus areas: i) Maintain deep alignment with our mission; ii)
Encourage colleagues’ engagement and enhance a culture ofcollaboration; iii) Invest in business inclusion and entrepreneur
skills; iv) Invest in bringing LSEG philanthropy programme
alive. These 4 priorities support and sharpen the overarching
LSEG Foundation strategy, set out above.

The Group donates the equivalentof all equity trading fees raised on
London Stock Exchange, Turquoise
and Borsa Italiana during the annual
Foundation Day
The charitable donations from othercompanies in the Group contributeto the Foundation’s donation pool
Money received through fines leviedby the Group

LSEG community investment
charitable donations

2018
£’000

2017
£’000

2016
£’000

Donations to LSEG Foundation

1,254

1,122

962

Donations to charity

207

107

133

In-kind donations

143

136

153

Management costs

194

238

218

Total

1,798

1,603

1,466

We also identified a further 3 elements connected to ourcommunity 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 involvedin our Board of Trustees; and, charity committees across theGroup, our Foundation’s programme office and the corporate
functions that support staff engagement programmes.
Donations from LSEG Foundation
Total grants approved and paid amounted to £1.3 million(2017: £1.4 million). In addition to grants to partner charities
across France, Italy, the US and the UK, and the major grantto the Group’s global partner charity UNICEF, 50 grants forcharities were identified and put forward to LSEG Foundationby LSEG employees across Australia, France, Italy, Sri Lanka,
the UK and the US. This amount included small grants
disbursed as part of the LSEG Staff Matching scheme, which
doubles employee-raised funds up to £2000 (€2000 in Italy)
per year, per person. In 2018, £105,000 was raised by our
employees and matched by LSEG Foundation.

Impact reporting
Given the bottom-up approach adopted for the selection ofprojects for local charitable grants, this year we have placed
particular importance on the measurement of our donations’impact and their consistency with LSEG Foundation’s cause.
Based on the LBG impact reporting framework, we ask
charities to report on 3 types of impact to help
aggregation across different project categories.
1. Behaviour or attitude change
Has the activity helped people makebehavioural changes that can improvetheir life or life chances or has it challenged
negative attitudes or preconceptions, enablingthem to make wider, different or more
informed choices?
2. Skills or personal effectivenessHas the activity helped people to develop new, or
improve existing, 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 or more comfortable (e.g. throughimproved emotional, social or physical wellbeing)?

37%

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

52%

Within impact areas 1 and 2 (‘Behaviour or attitude change’and ‘Skills or personal effectiveness’), donations are
perfectly aligned with our mission.
Target skills to be developed with our donation
40%
Employability or enterprise skills
Life skills

60%

60% of the donations are aimed at increasing theemployability of the beneficiaries or at developing financial
or business skills, for which the UNICEF Zambia project
plays a large role. 40% is focused on developing life skills.

28

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy
Our Markets

Our Services

Our People

2018 Review
Our Communities

Performance

Appendix

Looking ahead
As our business expands and diversifies,
we continue to review our approach tosustainability. In the coming year, as
part of a strategic approach based on 6
revised impact areas, we plan to promotesustainable business that underpins the
UN Sustainable Development Goals andlinks with our pillar sections in thefollowing ways:

PillarImpact area

Objective

Our Markets
Our Services

Grow
ConveneDisclose
Transition–– Convene the investment industry to discuss and progress solutions for the transition toa sustainable and low carbon economy from across our business division and determine
consensus to influence regulatory developments in our clients’ interest–– Scale up our offering for the promotion of SMEs’ access to 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–– Develop and launch further initiatives to promote disclosure among issuers–– Development of new products that add new tools supporting the transition to asustainable and low carbon economy and related capital flows

Our People
Our Communities

Develop
Sustain–– Deliver the Foundation action plan aligned with the revised strategy–– Review and achieve target for staff involvement in volunteering across the Group–– Upgrade our environmental management governance and work towards the science-based
environmental targets–– Work towards the achievement of the Group wide 2020 gender diversity targets andconsider extension of diversity programme beyond gender2

1. The Sustainable Development Goals (SDGs) identified here are those considered material for exchanges by the Sustainable Stock Exchanges initiative.
2. Ongoing delivery.

SDGs supported1

Part 3
Our overall Corporate
Sustainability performance

30

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Data Reporting Overview“Positioned between issuers
and investors, and supporting
each, we have a unique role
to aid understanding andinformation flows acrosscapital markets that enables
sustainable Investment and
ESG integration. We actively
support evolving global ESG
reporting standards and ourown reporting ambitions
must reflect the highstandards we advocate”
David Harris
Group Head of Sustainable Business
It is becoming a norm that investors consider the
ESG performance of a company alongside otherfinancial and strategic information within theirinvestment process. As a leading international markets
infrastructure provider, we are keen to promote high
ESG standards and ESG data that is reliable, consistentand comparable across industries.
Considering this, we are committed to reflecting bestpractice in our own reporting. We conduct materiality
reviews before reporting to identify the importantmaterial standards and materials to adopt for LSEG.
We reference our own ESG Reporting Guidance which are
based on globally recognised standards. We also draw

from a range of international frameworks and standards,
many of which interrelate, including FTSE Russell’s ESG
methodology, GRI Standards, Sustainability AccountingStandards Board indicators, CDP and the UN Sustainable
Stock Exchanges initiative. Please see the Appendix for asummary of LSEG data for the quantitative ESG data points
recommended in our ESG Reporting Guidance.
Based on these reporting frameworks, the following sections
outline a set of indicators, divided across Environmental,
Social and Governance areas, which we will continue tobuild on over time as our approach evolves further.
While we expand as a Group integrating acquired
businesses and through joint ownership initiatives, we alignour values and incorporate them into our ESG reporting
mechanisms. Acquisitions and Group companies where wehave below 100% ownership add complexity to reporting
ESG data, thus we have set out how we have calculatedGroup-wide data in the relevant sections.
About this report
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 or higher) employing the same principles as for financial
data. For a list of all the subsidiaries consolidated and coveredin the report, please see our Annual Report, pages 149–150.
When a different boundary applies to ESG data, we provide
explanations in the relevant section. Time frame matches thetime 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 externalverification statement for the environmental data is published onwww.lseg.com/home/about-london-stock-exchange-group/
corporate-responsibility/environment. This report was approvedby LSEG Board in February 2019.

3. Data provision

We provide both raw and normalised data where relevant(see Environment section), and wherever possible we provide
3-year time 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

BenchmarkFTSE4Good1(also used for the
FTSE4Good Series)

ESG Rating Absolute Score (5 – Highest)
ESG Rating ICB Supersector Relative
Percentile Score (100 – Highest)
Pillar Exposure (3 – Highest)
The FTSE4Good Index Series is Environmental
designed to identify companies
Socialthat meet globally recognised
Governance
ESG standards
Pillar Score (5 – Highest)
Environmental
SocialGovernance

Dow Jones Sustainability
Index (DJSI)DJSI tracks the financial
performance of the leading
sustainability-driven
companies worldwide
CDP

Total sustainability company score(Percentile Ranking)2
Economic
Environmental
SocialOverall score

2018

2017

2016

2015

–

4.6

4.5

3.8

–

99

100

99

–
–
–

1.0
2.0
2.3

1.0
2.0
2.3

1.0
2.0
2.3

–
–
–

5.0
4.3
4.7

5.0
4.5
4.3

5.0
3.2
3.9

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

65 (89th)367 (91st)
81 (91st)
54 (84th)

69 (83rd)
77 (88th)
83 (97th)
50 (78th)

61 (80th)68 (76th)
73 (91st)46 (76th)

A-

A-

A-

99B

CDP, formerly known as the Carbon Disclosure Project, runs the global disclosure system that enables companies, cities, states andregions to measure and manage their environmental impacts. We were scored in the ‘leadership’ bracket for the 5th year running,highlighting the steps LSEG has taken which represent best practice in the field of environmental management
MSCI

Overall score

A

A

MSCI rates and analyses environmental, social and governance-related business practices of companies worldwide
1. For FTSE Russell ESG Ratings 2018 scores have not been published yet.
2. A higher percentile indicates a higher score and better performance.
3. As of 2018, results reflect a major scoring methodology update. For year on year comparison, 2017 results have been recalculated.

A

A

31

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Environment
LSEG recognises that we must use
resources in ways that ensure the longterm sustainability and profitability ofthe business and have a positive impact
on the environment. This is significant inensuring our own operations are efficient,sustainable and responsible, as well as
developing products and services that
support these aims through companies
listed on our markets.
The Group’s primary environmental impacts arise from ouroffices and data centres that host nearly 5000 employees
around the world, from staff travel and, indirectly, from our
supply chain. We are aware of the risks and opportunities
of climate change for our business and our clients, and theneed to adapt our operations to prepare and takeadvantage of these.
The reporting period was the Group’s 5th year of setting
and reporting against environmental targets. In 2017
we set science-based targets for our Scope 1 and Scope 2
emissions, which inform our annual environmental targets
set each year by our Environmental Management Group(EMG). In 2018, we have exceeded our 5% reduction in
total carbon emissions target and have met most key
environmental impact targets. We recognise we have work
to do on our Business Travel environmental targets, forboth Rail and Air Travel, and this will be a focus of EMG’sefforts in 2019.
Further explanation and details of our progress are outlinedon the following pages.
Group reporting boundaries
LSEG uses the ‘Operational Control’ boundary for our
Greenhouse Gas (GHG) and environmental reporting.
An organisation has operational control if it has, or its
subsidiaries have, the full authority to introduce andimplement its operating policies, including health, safety
and environmental policies, within the operation. Thisapproach accounts for 100% of emissions from facilities,
operations and vehicles (whether leased or owned) overwhich LSEG has operational control.

The tables on the following pages summarise our relevant
environmental disclosure based on CDP, GRI and FTSE
Russell ESG indicators. LSEG have affirmed theircommitment to support Task Force on Climate-related
Financial Disclosures (TCFD) recommendations andsees them as an important step in driving improved
global consistency in voluntary reporting standards.
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.
The Scope 1, 2 and 3 emissions disclosed here, and in
the Directors’ and Strategic Reports have been externallyverified by SGS against the requirements of the WRI/WBCSD
GHG Protocol – Corporate Accounting and ReportingStandard. Conduct of the verification met the requirementsof ISO 14064-3:2006. Full details and the verification
statement are available on our website.
Our emissions are calculated using GHG Protocol Corporate
Accounting and Reporting Standard (revised edition) and UK
Government Environmental Reporting Guidelines: Including
mandatory greenhouse gas emissions reporting guidance.
We use DEFRA UK Government GHG Conversion Factors for
our UK sites, and for extrapolated data, business travel,water and waste. Local GHG Protocol emissions factors areused to calculate energy emissions for international sites
where available.
Managing our environmental impact
Our EMG guides the Group’s environmental strategy, and is
responsible for setting Group-wide targets, and managing
and continually seeking to improve our environmental
performance. The EMG reports performance quarterly via
our Intranet and annually discloses verified emissions on
our website, in our CS and Annual Reports, and in response
to CDP, FTSE4Good and DJSI. Its responsibilities also include:–– Increasing efficiency and reducing consumption
in areas including energy, water and paper usage,
waste management and business travel–– Ensuring that environmental considerations areincorporated in the Group’s purchasing policy andprocurement decisions, including new developments,
projects and materials–– Engaging with clients, suppliers and community partners
to promote environmental best practiceDavid Warren, the Group’s CFO, reports to the Board on
environmental issues.
HIGHLIGHTS

3rd

Consecutive year as Platinum Award Winners at London
Clean City Awards 2018

5th

Consecutive year of recognition as an environmental
leader by CDP-16%Overall carbon footprint per Full Time Employee (FTE)-18%

Absolute carbon emissions

66%

Group electricity from natural renewable sources-51%

Data Centre carbon emissions.

-23%

Office water consumption.

450

Plastic bottles expected to be saved per month,
due to purification system installed in Sri Lanka.
Science-based targets
LSEG has become one of the 1st companies in the financial
services sector to set long-term science-based carbon
reduction targets. The official Scope 1 and 2 target, whichmeets the standards of the Science Based Targets Initiative(SBTI), is:–– ‘London Stock Exchange Group commits to a 40%
reduction of their global Scope 1 and 2 GHG emissions
by 2030 from a 2016 baseline’
A Scope 3 target continues to be developed, and once this iscomplete all 3 scopes will be verified by the SBTI.

32

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Environment continued
Overall Performance
During the reporting period, we achieved an 18% reductionin our absolute carbon footprint and an 16% reduction in
Carbon Emissions per FTE. This is a slower rate of change
to 2017, where LSEG achieved a 43% reduction in carbon
emissions per FTE. This was due to significant action in2017, where 64% of the Group’s electricity was moved to
production by natural renewable energy sources.

2020 Target: Reduce tCO2e by 20% per £m Revenue and per FTE
Progress against 2020 Target: Reduction of 70% per £m Revenue and reduction of 63% per FTE
Disclosure
Carbon Footprint(tCO2e)We maintained our accreditation for our ISO 14001
Environmental Management System by a UKAS accredited
body. The system initially covers the UK property portfolio
and we are assessing expansion to cover further locations.
In 2018 we built on the setting of Scope 1 and Scope 2
science-based targets, by completing a review of our Scope
3 emission sources with SBTI. We continue to develop our
scope 3 target, in order for us have all 3 scopes targets
verified by the SBTI.

Data Centres
Data centre energy is a significant contributor to theGroup carbon footprint. Following the move to 100%
renewable electricity for our primary UK data centres in
2017, in 2018 we benefited from the 1st full 12-month
period of the renewable tariff which has allowed a 52%
reduction in carbon emissions per cabinet. To deliver
further carbon savings, in 2018 we commenced acold-aisle containment programme in the UK. Our new
data centre cold-aisle containment project was completed
in 2018, but as new equipment continues to be installedat the site, the benefits in reducing consumption have notyet been fully recognised. The project will be monitored for
its environmental ROI, and we expect the programme to
be extended to other sites 2019. LSEG continue to run
effective decommissioning projects on a continual basis,
with 130 legacy servers released as a result of upgrades tonewer, more efficient hardware platforms in 2018. Diesel
consumption returned to a more typical consumption,
following the peak in 2017 (due to generator use during
infrastructure upgrades).

Fugitive Emissions

Indicator
Total Group Carbon Footprint
per m2
per FTEper £m Revenue
Scope 1
Scope 2 – Market Based
Scope 2 – Location Based
Scope 3
Scope 3 (Electricity T&D)
Data Centres
Offices
Tenants
Emissions from Aircon & Refrigeration

2018
tCO2e
17,864
0.201
3.36
8.37
1,414
7,132
19,169
8,792
527
3,441
5,884
17.1

2017
tCO2e
21,866
0.235
3.98
11.2
1,919
11,694
21,850
7,320
932
6,975
7,261
545

2016
tCO2e
31,646
0.351
6.91
19.1
1,583
21,67623,0106,572
1,815
15,408
8,314
1,538

48.5

88.7

114

Performance against 2018 target
TargetActual-16%-5%tCO2e per FTE
tCO2e per FTE-5%
tCO2e per £m Revenue-26%
tCO2e per £m Revenue

2020 Target: Reduce tCO2e and Water by 20% per £m Revenue
Progress against 2020 Target: Reduction of 88% tC02e and reduction of 30% m3 per £m Revenue
Disclosure
EnergyWater(m3)

Indicator
Electricity (kWh)Natural Gas (kWh)Diesel (litres)
Total tCO2e
per occupied cabinet
per £m Revenue
Data Centre
per occupied cabinet
per £m Revenue

2018
2017
2016
Unit
tCO2e
Unit
tCO2e
Unit
tCO2e
38,314,359
3,121 36,270,505
6,605 35,084,718 14,982
1,266,356
233 1,301,549
240 1,225,793
226
15,94442
44,755116
32,708
85
3,395
6,961
15,293
2.39
4.96
11.2
1.59
3.58
9.23
45,375
15.6
36,164
13.5
37,790
13.0
31.9
27.9
27.7
21.3
20.1
22.8

Performance against 2018 target
TargetActual-5%-52%
tCO2e pertCO2e peroccupied cabinet
occupied cabinet-2%
m3 peroccupied cabinet+14%
m3 peroccupied cabinet

33

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Environment continued
OfficesDuring 2018 carbon emissions from electricity
consumption continued to reduce, as the 1st full
12-month period following the move to 100% renewableelectricity for our primary UK and Italy sites. However,
LSEG have recognised that electricity consumption perhead has increased slightly in 2018 over each period,
and therefore the EMG are working to ensure that energy
efficiency and reduction measures are a continuous
priority, in an effort to produce more with less. Significant
progress was made with our LED replacement project at
our London Paternoster Square building in 2018, and wehave set lighting energy reduction targets and plans for2019. Gas consumption returned to more familiar levels
in 2018, following unusually high consumption in 2017
(due to a meter fault at a major Italy site).

Business Travel
LSEG continue to extend the use and availability of videoconference (VC) facilities, and to encourage the use of VC
in place of air or rail travel where appropriate. In 2018,
we have increased the number of VC calls by 119%compared to 2017. However, we have also had an increasein rail and air travel throughout 2018, where total businesstravel emissions per FTE have increased 25% on 2017(excludes road vehicles). On investigation we have foundlong haul travel emissions have increased 20%, which
we expect is due to travel to new acquisitions in 2018;and higher travel rates in October-December 2018 due toseveral global events involving staff form different regions.
Our vehicle fleet emission have reduced by 15% since 2017,
partly as a result of our replacement with part of the fleet
with electric vehicles.

2020 Target: Reduce tCO2e and Water by 20% per £m Revenue
Progress against 2020 Target: Reduction of 61% tCO2e and reduction of 57% m3 per £m Revenue
Disclosure
EnergyWater(m3)

Indicator
Electricity (kWh)Natural Gas (kWh)
LPG (tonnes)
Diesel (litres)
Total tCO2e
per FTEper £m Revenue
Energy use from Renewable Sources
Office Space
per FTEper £m Revenue

2018
2017
Unit
tCO2e
Unit
21,795,520
4,538 21,291,928
4,428,881
886 6,138,674
9.53
28.5
10.5
40,218108
43,268
5,560
1.05
2.60
66%
47%
48,43016.5
62,647
9.11
11.4
22.7
32.2

2016
tCO2e
Unit
tCO2e
5,499 19,444,263
7,002
1,243 4,113,675
822
31.4
12.5
37.2
115
71,031
190
6,889
8,051
1.25
1.76
3.54
4.86
20%
21.5
56,299
19.3
12.3
34.0

Performance against 2018 target
TargetActual-5%-17%tCO2e per FTE
tCO2e per FTE

2018
2017
2016
Unit
tCO2e
Unit
tCO2e
Unit
tCO2e
3,124,481
302 3,667,592
350 8,611,245
815
32,368,595
6,758 31,394,971
5,653 25,456,946
4,642
6,067,652
523 5,185,352
445 4,698,111
420
5,793,051
914 4,235,405
599 3,207,159
473
47,353,780
8,497 44,483,319
7,047 41,973,461
6,349
1.60
1.28
1.39
3.98
3.62
3.83
1,062,560
11.8
502,907
5.75
636,720
6.74
334,20713.3
775,16132.1
689,01929.7
1,396,767
25.1 1,278,068
37.9 1,325,739
36.4
0.00470.00690.008020,13554.2
23,93364.1
29,52479.0
23,463
19,613
14,78636,296
16,60625,884

Performance against 2018 target
TargetActual-2%
10%tCO2e per £m Revenue
tCO2e per £m Revenue-2%
m3 per FTE-21%
m3 per FTE

2020 Target: Reduce tCO2e by 20% per £m Revenue and per FTE
Progress against 2020 Target: Reduction of 18% per £m Revenue and increase of 1% per FTE
Disclosure
Air Travel(km)Rail Travel(km)Road Vehicles
Video Conferencing

Indicator
International
Long Haul
Medium Haul
Short Haul
Total
per FTEper £m Revenue
Eurostar
National Rail
Total
per FTE
Company Leased Fleet (Diesel litres)
Number of Conferences
Conference Duration (Hours)+5%
total call hours+119%
total call hours

34

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Environment continued
Waste and Paper
LSEG continues to achieve 99% landfill avoidance,
and total waste produced has reduced 8% since 2017.
A reduction in mixed recycling, alongside increases inindividual waste streams suggests improvements in waste
management processes are encouraging employees tosort waste before disposing. Our waste management workin our London offices has been recognised with receiving
Platinum Award status, and special recognition under the
Cheapside Business Alliance Award at the London Clean
City Awards in 2018. Efforts in waste management extend
to our sites globally, and in 2018 one of our primary Sri
Lankan sites completed the installation of their water
purification system, which we estimate will allow us tosave 450 large plastic water bottles entering the waste
stream per month as of December 2018.
In our 3rd year of setting a paper reduction target,
we achieved an 7% reduction in A4 sheets per FTE (target-2% per FTE), but we have also been able to achieve a 10%
absolute reduction in paper use since 2017. In the UK the
new print management system has been rolled out further
to our Aldgate office.

2020 Target: Reduce Total Waste by 20% per £m Revenue
Progress against 2020 Target: Reduction of 74% per £m Revenue
Disclosure
Waste(tonnes)

2018
2017
Unit
tCO2e
Unit
tCO2e
874
234
946
198
0.16
0.044
0.17
0.036
0.41
0.49
644
731
228
211
29.2
23.9
65.2
50.7
22.4
20.5
1.92
1.67
11.0
11.3
98.7
103
99.8%
99.7%
10,246,249
11,339,005
1,928
2,065

Indicator
Total Waste Produced
per FTEper £m Revenue
Total Waste for Energy
Total Waste Recycled–– Food and Drink–– Paper–– Paper & Cardboard–– Plastics–– Glass–– Mixed Recycling
Paper

Landfill Avoidance
Sheets of A4
per FTE

Notes:
1. All Group totals and electricity breakdowns use market-based Scope 2 emissions factors.
2.	Scope 1 includes combustion of fuel and operation of facilities including Natural Gas, Diesel, LPG, Fugitive Emissions
and Fleet Vehicles.
3.	Scope 2 is purchase of electricity by the Group for its own use (The Group does not purchase heat, steam or cooling).
4.	Scope 3 includes emissions from Air Travel, Rail Travel, Waste, Water and Scope 3 Electricity Transmission
and Distribution.

2019 Targets
We have set ongoing targets for all of our impact areas for2019 compared to 2018, which have been calculated tosupport our 2030 science-based targets.
LSEG have recognised a need to move to a culture where
they are able to produce more with less, and this will be thefocus for sustainability action in the coming year.
We are aware of the risks and opportunities for our businessarising from climate change and have developed measures
to address them. We will actively monitor these changes so
we can adapt and respond as necessary.

2016
Unit
tCO2e
904
153
0.20
0.033
0.55
667
234
20.6
20.3
17.8
1.49
11.2
162
99.8%
9,618,326
2,099

Performance against 2018 target
TargetActual-2%-5%tonnes per FTE
tonnes per FTE-2%sheets of A4 per FTE-7%sheets of A4 per FTE

5. Group Carbon Footprint includes tenant consumption. Detailed section data excludes tenants.
6. Market-based emissions use grid average emissions factors except for renewable energy supplies.
7. Total extrapolated emissions – 4.72%.
8. Only 4 sites are able to provide Fugitive emissions data from suppliers. All other sites excluded.
9. 2017 and 2016 figures have been updated on receipt of annual emissions factor guidance and/or actual data from suppliers.

Carbon Emissions

5%(tCO2e/FTE/£m Revenue)

Business Travel Carbon

Video Conferencing(tCO2e/£m Revenue)(Total call hours)

2%5%

Other Environmental Impacts
Waste Production(tonnes/FTE)

2%

Water Consumption(m3/FTE)

2%Paper Consumption(A4 Sheets/FTE)

2%

35

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Social
Our social performance tables summarise
our social disclosure based on global
standards, and in particular draw from
GRI and the FTSE Russell ESG indicators,aligning with the recommendations in ourGroup’s ESG Reporting Guidance. Pleasesee ‘Our People’ section and appendix forfurther details on our policies andactivities related to our employees.
LSEG adheres to the UN Guiding Principles on Businessand Human Rights, together with the International Labour
Organization Conventions and Recommendations within
our working environment in each location where we operate.
The Group strongly supports these conventions which
promote freedom of association and equality and abolishforced labour and child labour. Human rights considerations
are also included in our Supplier Code of Conduct and Group
Corporate Responsibility Policy.
1. LSEG ESG Reporting Guidance
Our guidance on reporting ESG information provides specificguidance on human rights disclosure, based on FTSE
Russell’s ESG methodology. It explains the investment caseand the sources of investment risks, and provides example
indicators of practice and performance. See page 17 of the
Guidance for human rights guidance at www.lseg.com/esg
2. Modern Slavery
Our updated risk assessment and research in 2018 has 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 spectrum of global
suppliers. The Group has a zero-tolerance approach tomodern slavery. Our 2018 ‘Slavery and Human trafficking
statement’ will be published on our website on the 29th
March 2019 at www.lseg.com/about-london-stockexchange-group/corporate-responsibility/modern-slaveryact-statement, describes the steps taken during 2018 toimprove our supply chain management and procurement
processes and procedures. Suppliers that make up the top
75% of spend were reviewed for modern slavery risks in 2016.

2018 Group statistics1, 2
Disclosure
Employment

Health and safety4
Training and education
Labour standards
Diversity and equal
opportunity

Non-discrimination

1. Figures as of year end 31 December 2018.
2. Due to rounding, some totals may not correspond with the sum of the separate figures.
3. Malaysian employees acquired as part of Mergent. No past data available.

Indicator
Employees by region
United Kingdom
Sri Lanka
United States of America
Italy
RussiaFranceMalaysia3
Romania
Other
Total
Employees by contract type
Full time
Part time
Fixed term
Total
Employees covered by collective bargaining agreements
Staff voluntary turnover
Number of health and safety incidents
Employees receiving regular performance and career development reviews
Total hours spent on employee development training
Number of incidents of labour standards non-compliance
Employees by region
United Kingdom
United States of America
FranceItaly
Sri Lanka
Romania
Other
Total
Group by gender and organisational level
LSEG plc Board
LSEG Subsidiary Boards5, 7
Executive Committee and Leadership Teams6, 7
All Staff
Total
Employees by age group
Under 30 years
30–50 years
Over 50 years
Total
Nationalities represented in the Group
Total number of incidents of discrimination and actions taken

4.	100% of the total workforce were represented in formal joint management-worker health and safetycommittees. The health and safety committee is chaired by the Head of Group Property withdepartmental representation from across the global business in multiple jurisdictions.
5. Mix of employees and Non-Executive Directors.

2018

%

2017

%

2016

%

2015

%

1,666
1,001
667
669
–
167
189
160
68
4,587

36
22
15
15
–
4
4
3
1
100

1,596
1,036
657
625
555
171
121
–
147
4,908

33
21
13
13
11
3
2
–
3
100

1,408
1,030
249
586
435
174
–
–
94
3,976

35
26
6
15
11
4
–
–
2
100

1,549
833
1,305
578
318
182
–
–
480
5,245

30
16
25
11
6
3
–
–
9
100

4,397
96
4,683
95
3,808
96
4,891
93
78
2
104
2
91
2
171
3
112
2
121
3
77
2
183
4
4,587
100
4,908
100
3,976
100
5,245
100
18%
16%
20%
15%
11%
9.5%
5.6%
9.9%
0
0
3
0
100%
100%
100%
100%
63,15041,67530,000
N/A
0
0
0
N/A
2018
2017
2016
2015
% Female% Male % Female% Male % Female% Male % Female% Male
33
67
33
68
32
68
33
67
35
65
35
65
33
67
39
61
39
61
39
61
37
63
38
62
36
64
38
62
38
62
39
61
28
72
24
76
18
82
18
82
29
71
–
–
–
–
–
–
41
59
40
60
34
66
38
62
34
66
33
67
30
70
33
67
FemaleMale
FemaleMale
FemaleMale
Female
Male
3
10
2
9
1
10
3
11
22
116
23
142
17
128
21
181
134
295
146
303
111
252
15
65
1,435
2,723
1,458
3,001
1,085
2,528
1,741
3,424
1,569
3,018
1,604
3,304
1,196
2,780
1,756
3,489
Total
%
Total
%
Total
%
Total
%
1,361
30
1,540
31
1,357
34
1,396
27
2,641
57
2,740
56
2,204
55
3,157
60
585
13
628
13
415
10
692
13
4,587
4,908
3,976
5,245
8
72
59
55
80
0
0
0
0
6. Executive Committee and Leadership Teams in LSEG.
7.	The LSEG Subsidiary Board members and the Executive Committee and Leadership Teams together
comprise the ‘Senior Managers’ for the purposes of section 414C(10)b of the Companies Act 2006.
8. Not a required disclosure, and therefore represents 76% of staff who disclosed this information.

36

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Governance
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 onlong term sustainable value creation. For afull description of our corporate governanceframework please see the 2018 LSEG Annual
report. You may also refer to the GRI Index
available at www.lseg.com/about-londonstock-exchange-group/corporatesustainability.
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 4 core values and behaviours: Integrity, Partnership,
Innovation and Excellence.

Integrity

Partnership

Innovation

Excellence

My word is my bond

We collaborate
to succeed

We nurture newideas

We are committed
to quality

Integrity underpins all that
we do – from ourunshakeable commitment
to building and supporting
global markets based ontransparency and trust, toevery transaction acrossour business with eachand every stakeholder. We
are a source of enduringconfidence in the financial
system, so when we saythat our word is our bond,
we mean it.

We pride ourselves on
working together as
proactive partners, building
positive relationships withour colleagues, customers,
investors, regulators,
governments andshareholders, for ourmutual success and thebenefit of all.

We are ambitious
and forward-looking –a pioneering Group of
market innovators, driven
by fresh thinking that has
kept us ahead of change.
We prudently andproactively invest to
make sure that ourmarkets and services areconstantly developing
and evolving withadvances in technology.

We have a fundamental
commitment to developing
talented teams who deliverto the highest standards
in all that we do. Bycollaborating together, we
will sustain industry-leadinglevels of excellence, setting
the benchmarks that inspire
ever-better performance.

HIGHLIGHTS

100%

Employees successfully completed
mandatory Anti-Bribery andCorruption training in 2018100%

Employees successfully completed
mandatory GDPR training in 2018

500

Over 500 Investor meetings
held in 2018

37

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Governance continued
Corporate responsibility and oursustainability strategy are overseen by
the LSEG Board. Our CEO is responsible forreporting to the Board on sustainability
matters, while the Group CFO, who is a
Board member, has responsibility for theenvironmental policy.

Our sustainability strategy is driven by the Group Corporate
Sustainability Committee, on which Executive Committee
members and an LSEG Board member sit. Delivery of thesustainability programme is carried out by the Sustainable
Business team, reporting to Investor Relations.

Tax transparency
LSEG’s strategy for taxation has been published and isavailable at www.lseg.com/about-london-stock-exchangegroup/regulatory-strategy/london-stock-exchange-taxstrategy.

Each pillar lead has established working teams drawn
from across the Group. 2 of which also have oversight ofrelated CS initiatives, shown below, such as the Diversity
and Inclusion (D&I) committee which feeds into the‘Our People’ working team.

The strategy is centred around 4 concepts:

2.	To ensure that the Group’s tax affairs are arranged in an
efficient manner, whilst remaining compliant with the tax
laws of the jurisdictions in which it operates.
3.	To support the delivery of the Group’s corporate and risk
management strategies.

Sustainability Governance

LSEG Executive Committee

4.	LSEG does not undertake purely artificial transactions inorder to obtain a tax benefit and will only enter intotransactions, which would be fully justifiable should they
become public. Furthermore, all transactions must havea business purpose or commercial rationale.

LSEG CS Committee
Mark Makepeace, Chair

We disclose UK tax charge and overseas tax charge in thefinancial statement of our Annual Report. LSEG is also asignatory of the UK Prompt Payment Code.

LSEG Board

Programme Delivery Oversight
Paul Froud, Group Head of Investor Relations
David Harris, Group Head of Sustainable BusinessSara Lovisolo, Group Sustainability Manager
Working Teams
Our Markets
Raffaele Jerusalmi

1.	To ensure that the Group fulfils its fiscal obligations withregard to the administration and payment of all taxes.

Our Services
Mark Makepeace

Our People
Tim Jones
D&I
Diane Côté

WIN
Diane Côté

Our Communities
Diane Côté
Foundation
Diane Côté

EMG
James Nunn

Cyber security
Cyber security is increasingly identified by investors as a
key non-financial sustainability risk in the financial sector
with broad impacts on a number of stakeholders. Our
reputation and ability to fulfil our purpose as a criticalmarkets infrastructure provider is dependent on our securemanagement of data and financial assets. In order to haveconfidence in our data and assurance of financial assets, wehave controls that protect the confidentiality, integrity andavailability of LSEG and Group company assets including by
preventing unauthorised use or modification.
Given the increased size and scope of our businesses, weface a wide and expanding universe of risks. In particular,
our critical role as a markets infrastructure provider gives us

exposure to technology risks such as cyber threats, systems
resilience and technological innovation. The Group is reliant
upon secure premises to protect its employees and physicalassets as well as appropriate safeguards to ensure
uninterrupted operation of its IT systems and infrastructure.
The threat of cybercrime requires a high level of scrutiny as
it may have an adverse impact on our business. Long-term
unavailability of key premises or trading and information
outages and corruption of data could lead to the loss ofclient confidence and reputational damage. Security risks
have escalated in recent years due to the increasing
sophistication of cybercrime.
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 3rd-party security monitoring service is retained toassist with monitoring global physical security eventswith the potential to impact Group operations. The
Group has well established and regularly tested business
continuity and crisis management procedures. The Grouprisk function assesses its dependencies on critical suppliersand ensures robust contingency measures are in place.
The ISAE 3402 certification (Assurance Reports on Controls
at a Service Organisation) has been obtained by LSEG for
London’s primary data centre and CC&G data centre in
Rome. The Group also holds ISO 27000 (Information
Systems) and ISO 20000 certifications covering otherregional data centres.
Please see the ‘Key policies’ box on the next page for a
description of the Group Information Security and BusinessContinuity Management policies.

38

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Governance continued
Our Code of Conduct and Corporate
Responsibility policy, both publishedat www.lseg.com/about-london-stockexchange-group/corporate-sustainability,
are underpinned by LSEG’s values andbehaviours and a number of policies
that embed sustainability into ourday 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
2. Anti-bribery and Corruption
3. Group Information Security
4. Business Continuity Management

1. Financial Crime
This policy outlines the approach and arrangements that
LSEG has in place to prevent the occurrence, facilitation or
furthering of financial crime. It also sets out LSEG’s
approach to compliance with applicable legislation,
regulation and guidance.
The detection, disruption and deterrence of financial crime
is a key objective for many regulators worldwide andcontinues to be a high priority for governments.
Consequently financial crime poses a continuous
reputational, regulatory and legal risk to LSEG. In addition
to the reputational and financial loss caused by financial
crime, a failure to establish adequate controls to manage
our risk and ensure those controls are effective exposes theGroup and approved persons to civil and criminal sanctions
including heavy fines, restrictions on business activity andloss of relevant regulatory authorisation.
LSEG is committed to supporting government, law
enforcement and international bodies to combat the use of
the financial services sector to facilitate financial crime.

2. Anti-bribery and Corruption
Consistent with LSEG’s strategic risk objective of
maintaining stakeholder confidence, we regularly review
both the risks associated with our business conduct andour related policies. As a result, LSEG has in place a Codeof Conduct, Anti-bribery and Corruption, and conflict ofinterest policies, approved by the Board. In 2018 we carriedout mandatory anti-bribery and corruption compliancetraining, with 100% successful completion; and, thenumber of staff disciplined or dismissed due to noncompliance was 0. Based on FTSE Russell’s 2017 ESG
assessment, LSEG’s industrial and geographic exposure
to the corruption theme is medium (2 out of 3).
3. Group Information Security
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 access tosystems or company information; the threat of malware(such as viruses, worms, spyware, Trojans and other threats);
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.

4. Business Continuity Management (BCM)
LSEG is committed to minimising the impact tomarkets, customers and other stakeholders arising fromany event which causes disruption. To achieve this theGroup 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 to business
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 disasterrecovery); and–– crisis management.
The purpose of this policy is to ensure that the Group hasa feasible, practical, cost-effective and tested BusinessContinuity Management Framework (BCMF) and that
controls exist which ensure that the Group operates
within its overall risk appetite.

39
Overview

London Stock Exchange Group plc Group Corporate Sustainability Report 2018
Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Governance continued
LSEG is committed to engaging with policy
makers and related groups to advise on andcontribute to the development of better
sustainable policy practices.
Launch of UNEP Network of Financial Centres
for Sustainability
The inaugural meeting of the Network of Financial Centres
for Sustainability (FC4S) was held in Milan in April 2018.
The FC4S Network is a partnership between financial
centres and the United Nations Environment Programme.
The objective of the network is to exchange experienceand take common action on shared priorities to accelerate
the expansion of green and sustainable finance. The
long-term vision of the FC4S Network is rapid global
growth of green and sustainable finance across the world’s
financial centres, supported by strengthened international
connectivity and a common framework. Borsa Italiana
co-chairs the working group of the Italian Centre for
Sustainability which is backed by the Italian Ministryof the Environment.
The key outcome was a 5-point action plan to build
international cooperation among financial centres on
climate action and sustainable development:
1. To strengthen links among members, including throughregional hubs for Europe, Asia and Africa.
The European hub has just been launched in partnershipwith Climate-KIC. These hubs will involve centres in theregions as well as internationally.
2. To develop a robust benchmarking and assessment tool
to enable financial centres to evaluate their progress andinspire further action. This will build on initial work
presented in 2017 by I4CE and PWC.

3. To develop a joint statement on the importance ofeffective taxonomies for green and sustainable finance.
A common language is key if green and sustainablefinance is to develop in a trusted and dynamic fashion
across the world.
4. To share experience on green digital finance,
including through testing the Green Assets Wallet,
a new approach to improve efficiency and transparency
in the green debt market.
5. To gather the experience of financial centres in thedevelopment of the green bond market. This resulting
briefing paper will be produced together with the Climate
Bonds Initiative.
Technical Expert Group on Sustainable FinanceFollowing the launch of the report from the High-Level
Expert Group on Sustainable Finance (HLEG) in January
2018, the European Commission launched an Action Plan
on Financing Sustainable Growth in March 2018. As part ofthis, the Commission set up a Technical Expert Group on
Sustainable Finance (TEG), of which LSEG is a member
through Borsa Italiana.
The TEG’s mandate covers 4 areas:
1. Development of an EU classification system ofsustainable economic activities.
2. Development of the minimum standards for aharmonised methodology for low-carbon and positive
carbon impact benchmarks.

3. Development of an EU Green Bond standard.
4. Updating the Non-Binding Guidelines supporting
the Non-Financial Reporting Directive, with focus
on climate-related disclosures and incorporating
the recommendations from the Financial Stability
Board’s Task Force on Climate-related Financial
Disclosures (TCFD).
The TEG, set up in July 2018, is expected to deliver its
recommendations by June 2019.
UK Green Finance Taskforce and Institute
LSEG continues to support the Green Finance Taskforce andare represented by Nikhil Rathi, CEO of LSE plc and Directorof International Development and David Harris, Group Headof Sustainable Business.
LSEG is a member of the Green Finance Institute, which
was created in 2018, and is represented by Nikhil Rathi.
The purpose of the Institute is to bring together the UK’s
existing capabilities, create new business opportunities
and communicate to the wider market what London’s offer
is in green finance and insurance.
SSE Report on Regulators
Developed by a working group of nearly 70 capital
market stakeholders, including London Stock ExchangeGroup, the 2018 report by the UN SSE Initiative on securities
regulation, ‘How securities regulators can support the SDGs’shares experiences and outlines an action plan forregulators wishing to support the SDGs.

As part of LSEG’s engagement with regulators onsustainable finance, London Stock Exchange and Borsa
Italiana were also signatories to a letter to the International
Organization of Securities Commissions (IOSCO) calling toendorse the Sustainable Stock Exchanges’ Model Guidanceon Reporting ESG Information to Investors as a consistentprinciples-based approach to reporting on ESG issues, andto engage the World Federation of Exchanges (WFE) in their
ongoing sustainability work, including examining metrics
as a starting point towards developing a minimum,baseline level of disclosure. The letter also sought
IOSCO’s endorsement of the Financial Stability Board’s
TCFD. recommendations as a means for a deeper
examination of climate-related disclosures.

40

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Appendix i
UN SSE: Communication to stakeholders
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 5th report on progress.
Business Strategy

How does your exchange define and view the rationale
for corporate sustainability and the exchange’s role inpromoting it?

Our CEO’s message, CS strategy and Materiality review on pages 2, 6 and 7 respectively, demonstrates our rationale for corporate sustainability and our role in promoting it.

How 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 Executive Committee and Board respectively, while our organisational structure is set out on pages 3 and 5. Our Markets
and Our Services pillars support the promotion of sustainability across capital markets globally, on pages 10–16.

What goals/objectives does your exchange have in regards
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 Initiatives, Our Markets and Our Services
section for more details see pages 6–16. We set out our specific objectives for 2019 in our Looking ahead section on page 28.

Transparency and Issuer Reporting

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 many 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 can be accessed at www.lseg.com/esg. Secondly, FTSE Russell’s ESG services and the associatedFTSE4Good Index family set a standard for ESG disclosure globally. Thirdly, we promote issuer-investor dialogue on ESG issues through capital markets events and our new online
investor relations platform Elite Connect and our new online investor relations platform Elite Connect. In July 2018 Borsa Italiana held its 2nd Sustainability Day to encourage
investor-issuer dialogue on ESG issues (see page 13). 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).

What 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 Rulesof the Markets, organised and managed by Borsa Italiana. Any modification to the Rules is subject to 2 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 theirimplementing 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.

How do you track sustainability reporting of yourlisted companies?

There are 2 ways, one internal and one external. Internally, the FTSE ESG service tracks the level of ESG disclosure for our markets and for other markets around the world. The reportpublished by FTSE Russell in December 2016 saw LSE in 16th position and Borsa Italiana 9th. Externally, we review our progress against the SSE exchange rankings for sustainability
disclosure. The 2018 report, part of the SSE Report on Progress, and based on data provided by FTSE Russell, saw Borsa Italiana in the 6th position globally and London Stock Exchange
in the 14th position. However London Stock Exchange is 2nd among the largest exchanges, and ranks 1st for the environmental reporting of its listed companies. See more information
on FTSE Russell contribution to the 2018 ranking on page 13.

41

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Appendix i continued
What incentives (i.e., public recognition/awards) andsanctions do you have in place to encourage disclosure anddiscourage 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 toconstruct the FTSE4Good Index Series, which highlights companies that meet good practice standards, and the Environmental Markets and Green Revenues Index Series. FTSE Russell
also works with other exchanges across the world. More information can be found on pages 15 and 16. 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 (see page 15 for more detail).

What connections have you made between nationalsustainable development frameworks and goals, and yourexchange’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 TCFD and the SDGs. In 2018, Borsa Italiana joined the Technical Expert Group on Sustainable Financeset up by the European Commission to provide advice on a number of initiative included in the EU Action Plan on Financing Sustainable 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.

Issuer Capacity Building

If your exchange offers sustainability guidance forcompanies, please provide a description of the process for
its creation.

LSEG involved market participants in the creation of its ESG Guidance for issuers thorough investor and issuers workshops organised in the UK and Italy, and consulted otherstakeholders (standard setters and responsible investment NGOs) before finalising the guidance.

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

Who does your exchange view as its key stakeholders andhow does it engage and collaborate (or plan to do so) withthese and potentially 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 2017 was involved in the EU High Level Expert Group on Sustainable Finance, in the UK Green Finance Taskforce, andin the G7 Green Finance workstream under the Italian Presidency–– 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, Euro SIF, ICGN, Japan SIF
and RIAA–– through our involvement with the SSE initiative: in 2017, LSEG was part of the SSE Green Finance Advisory Group–– we are working in a range of ways to support the growth and development of green finance and are represented on the City of London’s Green Finance Initiative and as an observer of
the Green Bond Principles–– In 2017-2018 Borsa Italiana co-chaired the working group tasked by the Italian Ministry of Environment to set up the Italian Financial Centre for Sustainability, an active member of
the UN-backed FC4S, the network of financial centres for sustainability

42

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Appendix i continued
Sustainable Products

How has your exchange supported the development offinancial products that address sustainability-related issues(e.g., ESG Indices, carbon markets, social/environmental
bonds, sustainable development funds, etc.)?

LSEG in 2016 launched its Global Sustainable Investment Centre which aims to promote green and sustainable capital raising and deep integration of ESG consideration in theinvestment process across asset classes. The product portfolio includes green bonds in different currencies, renewable 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.

Exchange Needs

Are there any specific resources that you would like fromthe SSE or other relevant groups to help you in yoursustainability 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.

Are there any specific requests you have of investors,
issuers and regulators in terms of their role 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 thatissuers 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 ofinvestor-issuer 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 the trend toward the global alignment of ESG disclosure standards.

43

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities
Key:
LikelyPossible

Appendix ii
FTSE Russell quantitative ESG data points as referenced in the LSEG ESG Reporting Guidance
Indicator

Indicator sub code

Indicator description wording

2018

20171

2016

Environmental

ECC14

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

8,546 tCO2e

13,667 tCO2e

23,321 tCO2e

ECC15

Total energy consumption data is disclosed

69, 495 MWh

64,658 MWh

70,435 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)

646 tonnes

735 tonnes

670 tonnes

EPR26

Disclosure of waste recycled (tonnes)

228 tonnes

211 tonnes

234 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%

N/A2

ESC30

Total GHG emissions data on properties disclosed

9,342 tCO2e

14,818 tCO2e

25,303 tCO2e

ESC31

Total energy usage data on properties disclosed

69,495 MWh

64,658 MWh

70,435 MWh

ESC32

Total water usage data from property portfolio disclosed

101,478 m3

109,243 m3

97,624 m3

EWT11

Total water use/water extraction data is disclosed

101,478 m3

109,243 m3

97,624 m3

EWT12

Percentage of water recycled (non-potable) for use in own operations

Not significant

Not significant

Not significant

Relevance

44

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Appendix ii continued
Indicator

Indicator sub code

Indicator description wording

2018

20171

2016

Governance

GAC12Disclosure of total amount of political contributions made.

The only political donations
made in 2018 amounted to
US$19,000 was donated topolitical organisations by the
LSEG US Holdco, Inc. employee
operated PAC.

£0

The only political donations madein 2016 amounted to US$41,500
by Russell Investments PAC,
before its sale. The Group has
made no other political donations.

Relevance

All LSEG US Holdco, Inc.
contributions will be reviewed
for legal compliance and will be
publicly reported in accordancewith US election laws.

SocialGAC13Disclosure of number of staff disciplined or dismissed due tonon-compliance with anti-corruption policy/policies

0

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£1.5 million3£1.2 million4£1.1 million5

SHS12

Percentage of sites with OHSAS 18001 certification

0%

6%

16%

SHS13

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

100%

100%

100%

SHS15

Lost-time incident rate, over last three years

7.63

6.54

Not significant

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

11%

9.5%

5.6%

SLS25

Percentage of employees that are contractors or temporary staff

2%

3%

2%

SLS26

Amount of time spent on employee development training to enhanceknowledge or individual skills, using:a) Total hours as a company, ora) 63,150a) 41,675a) 30,000b) Average hours per employeeb) 14b) 8.5b) N/A

1. 2017 figures have been updated and re-verified on receipt of annual emissions factor guidance and actual data from suppliers.
2. ISO14001 system established and accredited for UK property portfolio in 2017.
3. 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 (see page 27).

6

4. This is the total cash charitable donation made by the Group in 2017, consisting of £1,122,000 to LSEG Foundation and £107,000 to other charities.
5. This is the total cash charitable donation made by the Group in 2016, consisting of £962,000 to LSEG Foundation and £133,000 to other charities.
6. 100% of new staff received health and safety training.

45

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Appendix iii
WFE Principles
Having re-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 2018 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 importance ofsustainability issues.

–– LSEG convened a diverse group of fixed income experts to discuss their perspectives on the continued growth anddynamics of the Green Bond market (page 12)

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

–– IFC and UN SSE Roundtable discussion on ‘Disclosure and Transparency and Environmental, Social, and Governance(ESG) Integration in Emerging Markets’ held at the London Stock Exchange Group (page 13)–– Borsa Italiana Sustainability Day to raise awareness among market participants and facilitate dialogue between
issuers and investors on ESG and sustainability topics (page 13)–– LSEG launched the inaugural series of reports on African capital markets, developed as part of its London Africa
Advisory Group (LAAG). The 5 reports put forward recommendations on how African capital markets could be further
developed to increase global investment flows. (page 11)–– FTSE Russell launched its Stewardship, Transition and Engagement program for Change (‘STEP Change’) andaccompanying report, the 2018 STEP Change Report (page 15)

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

–– FTSE Russell hosted a market open ceremony and the Asset Owner Climate Summit to review the latest TPI analysis
and facilitate dialogue around the state of transition and action that can be taken by asset owners to decarbonise theirportfolios (page 15)

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

–– FTSE Russell launched its FTSE Women on Boards Leadership Index Series (page 16)–– AIM and AIM Italia were recognised as the first SME Growth Markets in Europe following the introduction of thedesignation in MiFID II (page 11)–– The ELITE global community surpassed 1000 companies representing 40 countries and 35 sectors, and accounting forover 470,000 jobs (page 11)

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

–– LSEG continues to assess ESG considerations in the risk framework–– A description of our CS governance can be found in our CS report (page 37)

46

London Stock Exchange Group plc Group Corporate Sustainability Report 2018

Overview

Corporate Sustainability Strategy

2018 Review
Our Markets

Performance
Our Services

Our People

Appendix

Our Communities

Appendix iv
Sustainable Development Goals
As the UN Sustainable Stock Exchanges initiative assesses
that exchanges are well placed to have a measurable impact
on 5 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 levels ofdecision-making in political, economic, and public life.

DEVELOPSUSTAIN

Decent 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 andmedium-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 andto integrate sustainability information into their reporting cycle.

DISCLOSE
TRANSITIONCONVENE

Climate action

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

DISCLOSE
TRANSITIONCONVENESUSTAIN

Partnership 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© March 2019
London Stock Exchange Group plc
10 Paternoster Square
London EC4M 7LS
Telephone +44 (0)20 7797 1000
Registered in England and Wales No. 5369106
www.lseg.com