1

Enabling
Sustainable
GrowthLondon Stock Exchange Group plc
Group Sustainability Report 2021

1

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Contents
Introduction
2 Our Group
3	CEO welcome
5 Our sustainability approach
6 Sustainability strategy at a glance
7 External ratings
8 Materiality assessment
9 UN Sustainable Development goals
11	
Accelerate the just transition
to net zero
13 Transition capital
15 Data and disclosure
16 LSEG net zero
19 Climate Transition Plan
20 T ask Force on Climate-related Financial
Disclosures (TCFD)
23	Enabling the growth of thegreen economy
25 Green finance
27 Research
28 Engagement

Refinitiv acquisition
This report describes the sustainability performanceand activities of LSEG as a single entity, since theacquisition of Refinitiv in January 2021.

29	Creating inclusive
economic opportunity
31 Inclusive culture at LSEG
36 Inclusive markets
37 Economic empowerment

About this report
1. Scope and time frameThis report covers 100% of the businesses overwhich LSEG had operational control in 2021
(all legal entities in which LSEG had a 51% stakeor higher), employing the same principles as forfinancial data. For a list of all the subsidiaries
consolidated and covered in this report, pleasesee our Annual Report, pages 193–205. Whena different boundary applies to ESG data, we
provide explanations in the relevant section.
The time frame matches the time period for the
Annual Report.

39 Sustainability governance
40 Sustainability governance
41 Engagement with stakeholders
42 Operating responsibly
44 Additional disclosures
45 Social
46 Environment
49 UN SSE: communication to stakeholders
53 UN Global Compact: the Ten Principles
54 World Economic Forum Stakeholder
Capitalism Metrics
57 W
 orld Federation of Exchanges(WFE) principles
58 Sustainability Accounting Standards
Board (SASB)
60 G
 reenhouse gas emissions reduction
targets disclosure
61 GRI Index

For further information,
visit: www.lseg.com

For a glossary of terms,
visit: www.lseg.com/glossary

2. Verification and approval
All data included in this report has been
submitted to an internal verification process.
Environmental, diversity and cash donation data
has also been externally verified. The externalverification statement for the environmental
data is published on www.lseg.com/investorrelations/sustainability. This report wasapproved by the LSEG Board in March 2022.
3. Data provision
We provide both raw and normalised data
where relevant (see Environmental data section),
and wherever possible we provide three-yeartime series of comparable data.

Email:
ir@lseg.com

Investor Relations
London Stock Exchange Group plc
10 Paternoster Square
London EC4M 7LS

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London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Our Group
LSEG is a leading global financial markets
infrastructure and data provider. We play avital social and economic role in the world’s
financial system. With our trusted expertiseand global scale, we enable the sustainablegrowth and stability of our customers andtheir communities.
We are leaders in data and analytics, capitalformation and trade execution, and clearing
and risk management.

OUR PURPOSE

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

We are a leading global financial markets
infrastructure and data provider. We want
to shape the future of our industry to serve
our customers and markets better.
WHERE WE OPERATE

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

3

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Welcome to our 2021 Group Sustainability Report
Now, more than ever, it is clear that we needtransformation in world economies to ensurethat economic progress is effectively balancedwith environmental protection and social
inclusion. Positioned at the centre of global
financial markets, LSEG is committed to beinga strategic enabler of sustainable growth.”

David Schwimmer
CEO, London Stock Exchange Group

2021 was a landmark year when governments, financeand industry came together in Glasgow with a collective
commitment to stop the worst consequences of climatechange. The challenge was made all the more real as theglobal pandemic continued to reveal the fragility of our
natural, human and economic ecosystems.
Now, more than ever, it is clear that we need transformation
in world economies to ensure that economic progress iseffectively balanced with environmental protection andsocial inclusion. Positioned at the centre of global financial
markets, LSEG is committed to being a strategic enabler ofsustainable growth.

4

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

We are building from considerable experience, dating back
20 years when the FTSE4Good index series was launchedin 2001. Back then, the index was arguably ahead of its time,
but two decades later sustainable investing is truly a central
tenet of financial markets.
In practice, our commitment to enabling sustainable growthmeans embedding sustainability into everything we do as abusiness; providing customers with sustainable finance andinvestment data, analytical tools, and market infrastructure;
managing the environmental and social impact of ouroperations and supply chain; and working collaboratively with
policymakers and other market participants to effect change.
There is a critical need for better data and analytics to help
companies and investors navigate the transition to a
low-carbon inclusive economy. LSEG supplies the data
and analysis underpinning sustainable investments, helping
customers to identify opportunities using data sets, goingback over 20 years, across more than 500 metrics for morethan 10,000 companies. A vital but missing element are global
disclosure standards. Therefore we welcomed theannouncement at COP26 by the IFRS Foundation regarding
the launch of the International Sustainability Standards Board
which will be developing global baseline sustainability
reporting standards, building on other disclosure standards
such as TCFD.

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

As a global exchange we are supporting the growth of thegreen economy, enabling issuers to raise equity and fixedincome securities that are aligned with the transition to net
zero and green revenues. During 2021, our Sustainable Bond
Market (SBM) supported more than 100 debt issuers globally
to raise over £50 billion in sustainable finance, bringing thetotal to 349 active bonds on SBM and £107.4 billion in total debt
capital raised. To support the green transition further, London
Stock Exchange also announced plans to develop a newmarket solution for the voluntary carbon markets to enhanceinvestment in carbon mitigation projects worldwide.
In February 2021, LSEG became the first global exchangegroup to join the United Nations Climate Change ‘Race toZero’. We have set ambitious, science-based targets to cut ouremissions by 50% by 2030 and reach net zero by 2040. Laterin the year, we announced our commitment to expand our
successful partnership with the Transition Pathway Initiative(TPI) to establish the Global Climate Transition Centre at the
London School of Economics. This is an importantdevelopment which will dramatically scale much-needed open
access research into the climate transition pathways of 10,000
businesses, covering global equity markets, fixed income andprivate markets.

Sustainability
governance

Additional
disclosures

Following the acquisition of Refinitiv, we brought together therespective sustainability commitments of both organisations
and set out a more ambitious commitment to sustainablegrowth which we have made a key strategic priority for theGroup. We reset our sustainability ambition and strategy to help
us take a leading role and focus on the areas where we canhave the greatest impact. We will be deepening our approachover the coming year, further embedding sustainability into ourbusiness globally, and we look forward to sharing updates on
our progress in the future.
David Schwimmer
CEO, London Stock Exchange Group5

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Our sustainability
approachTransition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

The purpose of London Stock
Exchange Group (LSEG) is driving
financial stability, empowering
economies and enabling customers
to create sustainable growth.

We deliver on our purpose through the products andservices we provide and also through our wider role infinancial markets and society. We have a key role inenabling sustainable economic development, which
demands a balance of economic progress, social
inclusion and environmental protection.
Given LSEG’s central position within financial markets,its global presence and role throughout the trade
lifecycle, we have a critical role in re-engineering thefinancial ecosystem, contributing to the global
imperative to decarbonise, innovate and grow thegreen economy, while ensuring that everyone has
the opportunity to share in the benefits of sustainableeconomic growth.

Sustainability
governance

Additional
disclosures

OUR STRATEGY

Following the acquisition of
Refinitiv in early 2021, we aligned
and integrated the sustainability
approaches of both organisations.

This work involved reviewing the sustainable financeproducts and services of the heritage organisations,particularly within the Data and Analytics division;
reorganising and building out our people, capabilities
and resources; reviewing and aligning sustainabilityrelated policies, standards and practices; andcombining relevant data sets to create a unified
baseline from which to move forward.
We reset and enhanced our sustainability ambitionand strategy. Our aim is to be a strategic enabler ofsustainable growth by focusing on those issues where
we can have the greatest impact. Our refreshedsustainability strategy has three strategic priorities
underpinned by a series of objectives. We organise ourdisclosure and reporting around these core strategic
priorities and report on the actions we are taking toprogress against our objectives.

6

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Sustainability strategy at a glance
OUR STRATEGIC PRIORITIES

Accelerate the justtransition to net zeroSee page 11

Enable the growthof the green economy
See page 23

Create inclusive
economic opportunity
See page 29

Decarbonising the whole global economy is critical tominimise the worst consequences of climate change.
We are leveraging LSEG’s unique market position,
capabilities, products and services to support a global
reallocation of capital which shares the costs and benefitsof reaching net zero fairly between, and within, countries.

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

Inclusive economies enable more people to participate in,and benefit from, economic growth, regardless of theirgender, ethnicity, social background, political or religious
beliefs. We aim to empower economies, communities andindividuals by championing inclusion and access toeconomic opportunity.

Objectives

Objectives

Objectives

Transition capital
Enable more companies and issuers to access the capital needed
to finance the transition to a low-carbon economy and enable
investors to build transition-aligned portfolios.

Green finance
Provide the market infrastructure needed to grow green financedirected towards sustainability challenges, clean growth andsustainable economic activity.

Inclusive culture
Embed an inclusive culture at LSEG that values diverse
perspectives and embraces diversity of every kind.

Data and disclosure
Improve transparency and understanding of environmental, socialand financial risks associated with the transition by promoting
clear, comparable and comprehensive data, analytical tools
and research to inform investment decision-making, deeper
engagement between companies and investors, and marketwide collaboration.

Research
Leverage our research capabilities to support the growth of thegreen economy.

Inclusive markets
Use our central position within global capital markets to promote
inclusion within companies, industry and society more widely
through market collaboration, research and greater disclosure.

Engagement
Promote and support market collaboration, innovation and public
policy to scale green economic growth globally.

Economic empowerment
Support economic empowerment through access to education,
employment and enterprise opportunities to build a secure future.

LSEG net zero
Fulfil our commitment to the UN Race to Zero to reduce LSEG’s
carbon emissions by 50% by 2030 and reach net zero by 2040.

7

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

External ratings
Our sustainability practices are assessed by a variety ofthird- party rating agencies. These assessments help
investors to understand our sustainability risks andperformance. They also help us to enhance and continually
improve our approach.
Overall score

Overall score

Ranking

Risk rating

Overall score

A-

2020: A2019: A-

AA

2020: AA
2019: AA

Scale: A to D-

Total sustainability
company score

59

Overall score

C

2020: C
2019: C47

2020: 47
2019: 47

A-

2020: A2019: B+

Scale: AAA to CCC

16.4

2020: 16.9
2019: 18.2

Low Risk

2020: Low Risk
2019: Low Risk

4.6/5

2020: 4.6/5
2019: 4.5/5

Overall score

Scale: 0-100, with 0
being the best

Ranking: against
Diversified Financials

Scale: 0-5, with 5 being
the best possible score

Overall scorend(92 percentile)

2020: 61 (89th percentile)
2019: 61 (86th percentile)

Scale: 0-100, with 100 being best

Scale: A+ to D-

Rating: 0-100 where 100 is best

8

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Materiality assessment

The materiality assessment identified the sustainabilityrelated issues shown here which are perceived to beof greatest relevance to LSEG. We plan to refresh andenhance our materiality process in future years.

1

Business ethics

2

Community engagement

3

Corporate governance4

Diversity and inclusion

5

Greenhouse gas emissions

6

Human rights

7

Information security and data privacy

8

Climate risk management

9

Environmental impact management

10 Sustainable finance products/services
11

Talent attraction, engagement
and retention

12 Workplace health, safety and wellbeing

8
10

External stakeholders

We commissioned an independent consultancy toundertake the assessment, which involved a landscapereview of relevant regulation, disclosure frameworks,
ESG ratings and market activity. The consultants also
conducted a series of in-depth stakeholder interviews
to gather the perspectives of customers, shareholders,
suppliers and employees.

Key to sustainability-related issues

Increasing importance

To ensure we focus on thesustainability issues that mattermost to our business and our
stakeholders, we conducted amateriality assessment in 2021.

7

5
9

11
3

1
2

4

6

12

Internal stakeholders
Increasing importance9

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

UN Sustainable Development Goals
The 2030 Agenda for Sustainable
Development was adopted by all
United Nations Member States in2015. This comprises 17 Sustainable
Development Goals (SDGs) which
form a universal call to action forsustainable economic, socialand environmental development
by 2030.
As we developed our sustainability strategy, we took
into account the SDGs. We considered where we makea direct or indirect contribution, the findings from ourmateriality assessment and the extent to which we’realready actively contributing positively to a SDG.
Our sustainability approach contributes to many of thegoals. The most relevant goals aligned with our strategy
are shown here.

Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all
Achieve gender equality and empower all women and girls

Ensure access to affordable, reliable, sustainable and modern energy for all

Promote sustained, inclusive and sustainable economic growth, full and productive
employment and decent work for all
Reduce inequality within and among countries

Ensure sustainable consumption and production patterns

Take urgent action to combat climate change and its impacts

Promote peaceful and inclusive societies for sustainable development, provide accessto justice for all and build effective, accountable and inclusive institutions at all levels
Strengthen the means of implementation and revitalise the global partnership forsustainable development

10

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Pensioenfonds Detailhandel – pension fund for the Dutch retail industry
With more than 32,000 employers, over 1.3 million
participants and assets under management (AUM) of€37 billion, Pensioenfonds Detailhandel (Detailhandel)is one of the largest pension funds in the Netherlands.
The pension fund was established in 1972 and is amember of the Dutch Pension Federation and asignatory of the Principles for Responsible Investment(PRI). Detailhandel is committed to being a
responsible investor.

Our investments and investment policies
should align with the norms and values ofour beneficiaries, as well as reflecting theirpreferences. It should also reflect our role as
an asset owner and a good steward of assets.
The other main driver is our belief that
responsible investment contributes tolong-term value creation. We believe bytaking ESG factors into account, we cancontribute to better investment results.”
Pensioenfonds Detailhandel
Responsible Investment Policy Statement, 2021

In 2015 the UN General Assembly set 17 global goals.
Detailhandel identified the following four SDGs asparticularly relevant to its responsible investment policy:

Together with their asset manager BlackRock and FTSE
Russell, as its benchmark provider, Detailhandel has
developed three innovative sustainable benchmarks for
its passive investments. The emphasis of these indexes
is on improving alignment with the SDGs.

2019

Developed market equity
Detailhandel chose an innovative equity
benchmark, the FTSE custom-developed
ex-Korea SDG-aligned index, to help align its
developed equity portfolio with the fourchosen SDGs.

2020

Emerging market equity
Detailhandel extended this approach byinvesting in a new fund, tracking a new FTSE
Russell emerging market equity SDG index.

2021

50%

Fixed income
Detailhandel also aligned its fixed income
assets, starting with the credit portfolio, withthe same four SDGs. Detailhandel engaged
FTSE Russell, as its benchmark provider, todevelop a way to implement the policy within
the pension fund’s overall investment strategy.

With the three index launches, Detailhandel
has now aligned almost 50% of its €37 billion
investment portfolio to the three SDG funds
tracking FTSE Russell indexes (as at Dec 2021).

11

OUR STRATEGIC PRIORITIES

Accelerate
the just transition
to net zero
Decarbonising the whole global
economy is critical to minimise theworst consequences of climate change.
We are leveraging LSEG’s unique market
position, capabilities, products andservices to support a global reallocationof capital which shares the costs andbenefits of reaching net zero fairly
between, and within, countries.

12

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Our first priority is to accelerate
the just transition to net zero and
we are focused on the following
three objectives to make this happen:
OBJECTIVES

Transition capital
Enable more companies and issuers to access the capitalneeded to finance the transition to a low-carbon economy
and enable investors to build transition-aligned portfolios.
See page 13

Data and disclosure
Improve transparency and understanding of environmental,social and financial risks associated with the transition bypromoting clear, comparable and comprehensive data, analytical
tools and research to inform investment decision-making,deeper engagement between companies and investors, andmarket-wide collaboration.
See page 15

LSEG net zero
Fulfil our commitment to the UN Race to Zero to reduce LSEG’s
carbon emissions by 50% by 2030 and reach net zero by 2040.
See page 16• We have published our first
Climate Transition Plan
Link to the report• LSEG’s Task Force on
Climate-related Financial
Disclosures (TCFD) Report
Link to the report

13

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Transition capital
We are committed to enabling morecompanies and issuers to accessthe capital required to fund thetransition to a low-carbon economy
and enable investors to build
transition-aligned portfolios.
Glasgow Financial Alliance for Net Zero (GFANZ)
LSEG was a founding member of GFANZ which waslaunched in April 2021, led by Mark Carney, UN Special
Envoy on Climate Action and Finance. GFANZ is a global
coalition of leading financial institutions committed toaccelerating the decarbonisation of the global economy.
Collectively, members commit to achieving the objectiveof the Paris Agreement to limit global temperature
increases to 1.5°C. LSEG CEO David Schwimmer is amember of the GFANZ CEO Principals Group and weare actively involved in the GFANZ workstreams.
Net Zero Financial Service Providers Alliance
Under the GFANZ umbrella, the Net Zero Financial
Service Providers Alliance (NZFSPA) is a global groupof service providers committed to supporting the goalof global net zero greenhouse gas emissions by 2050
or sooner, in line with the ambition to limit the global
temperature increase to 1.5°C above pre-industrial levels.
LSEG was a founding member of the Alliance which, in
2022, will set targets and metrics to drive the commitment.

Transition Bond Segment
In February 2021, London Stock Exchange (LSE)
launched the transition bond segment (SBM) within
its sustainable bond market, supporting issuers thathave robust and credible transition strategies to raise
capital for transition-related activity. The transition
segment joins the green, social, sustainability andsustainability-linked segments which make up the
LSE’s SBM.
FTSE EU Climate Benchmarks Index Series
To help investors reallocate capital in line with thetransition to a low-carbon economy, FTSE Russell
launched the FTSE EU Climate Benchmarks IndexSeries in July 2021. FTSE Russell consulted Brunel
Pension Partnership in the design of the indices which
include a range of climate-themed equity indexesaligned to the Paris Agreement. The index series
covers a broad range of developed and emerging
equity markets including FTSE All-World, FTSE
Developed, FTSE Emerging, Russell 1000, FTSE
All-Share and FTSE Australia 200. The index series
apply the FTSE Target Exposure Framework which
includes a transparent tilt exposure towards and awayfrom index constituents according to several exposure
objectives, such as fossil fuel reserves, carbon reserves
and green revenues, to achieve Paris alignment.

COP26
LSEG actively participated in COP26 hosted
in Glasgow in November 2021. We werea strategic sponsor of the Green Horizon
Summit, which focused on the role of financein the transition to net zero and was cohosted by the City of London and the Green
Finance Institute.
In the run up to COP26 we ran a series ofclimate action webinars in partnership with
the Principles for Responsible Investment
which attracted over 12,000 viewers.
Amongst some of the high-profile speakers
were John Kerry, US Special Envoy on
Climate; Mark Carney, UN Special Envoy
on Climate Action and Finance; Masataka
Miyazono, President of Japan’s Government
Pension Investment Fund; and Ravi Menon,
Head of the Monetary Authority of Singapore.

14

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Transition capital continued
Japan climate index
LSEG and the Japan Exchange Group (JPX) announced
new net zero climate indices in November covering
Japan’s equity market. This is designed to enable
investors to reallocate capital based on the climate
credentials and carbon performance of the constituent
companies in the index.
Voluntary carbon markets
In November, the London Stock Exchange announced
its intention to develop a new market solution forvoluntary carbon markets to accelerate the availabilityof financing for projects to support a just transition toa low-carbon economy. The solution aims to address
two major challenges inherent in the scaling up of thevoluntary carbon markets: access to capital at scale forthe development of new climate projects worldwide;and primary market access to a long-term supply ofhigh-quality carbon credits for corporates and investors.
When launched, this will enable companies andinvestors to augment credible net zero transition
strategies by financing additional projects to offset
unavoidable carbon emissions during their pathto net zero.

Brunel Pension Partnership
In November, Brunel Pension Partnership (Brunel)
announced it would move over £3 billion of its passive global
equity allocation to follow the FTSE Russell Paris-aligned
benchmark series.
The assets are managed by Legal & General Investment
Management (LGIM) and the Brunel transition is one of thelargest passive fund launches (by AUM) in LGIM’s history.
FTSE Russell’s Paris-aligned benchmark series not only
meets the minimum requirements of the EU’s Paris-aligned
benchmark criteria by achieving a 50% reduction in carbon
emissions over a ten-year period but they go a step further
by integrating forward-looking metrics and governancemeasures from the Transition Pathway Initiative (TPI).
TPI provides assessments of how the world’s largest
and most carbon-exposed companies are managing theclimate transition.
Designing benchmarks that enable passive funds to target
net zero has been one of the major challenges facing thefinancial sector. Brunel worked closely with FTSE Russell to
support the launch of the Paris-aligned benchmark.
Brunel believes asset owners and asset managers need toact with added urgency to ensure finance can be part of thesolution to climate change. A major element of the actionneeded is transitioning passive funds to Paris-aligned
benchmarks as they account for a very large proportion ofassets invested globally, reaching over $15 trillion in 2020.

The transition of £3 billion to the
new Paris-aligned benchmarks is
an indication of how indices can bea major part of the solution to climatechange. Crucially, these indicesharness the data we already have,including forward-looking metrics, notleast TPI metrics. But they are also
flexible enough to change in the future,as the data continues to improve.”
Faith Ward
Chief Responsible Investment Officer,
Brunel Pension Partnership

15

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Data and disclosure
We are committed to improving
transparency and understanding ofenvironmental, social and financial
risks associated with the transition
by promoting clear, comparable andcomprehensive data, analytical tools
and research to inform investment
decision-making, deeper engagement
between companies and investors
and market-wide collaboration.
ESG data
LSEG provides customers with a wide range ofenvironmental, social and governance (ESG) data acrossdifferent asset classes. This includes Refinitiv’s
transparent, granular ESG data and ratings on over
10,000 companies globally, drawing on over 450 metrics
to drive advanced ESG analytics. This is alongside FTSE
Russell’s ESG research and ratings covering thousands
more companies. With respect to debt markets, Beyond
Ratings provides ESG-related data on thousands ofcorporate credit issuers and over 175 sovereign issuers.
Model guidance for climate disclosure
LSEG is a member of the United Nations Sustainable
Stock Exchange (UNSSE) initiative and in June 2021
contributed to the creation of its model reporting

guidance on the Task Force on Climate-related
Financial Disclosures (TCFD). This provides a templatefor stock exchanges to guide issuers on TCFD
implementation. In October the London Stock
Exchange was the first exchange to issue its own
guidance, based on the UNSSE’s model tailored to
the UK’s regulatory and policy environment for publiccompanies. The guidance helps companies listed in
London to integrate climate risks and opportunities into
operational decision-making and report performance.
Climate governance scores
To strengthen its support for issuers looking totransition to low-carbon business models, the London
Stock Exchange introduced climate governance scoresfor over 400 issuers in 2021. These provide a private
educational resource to help issuers understand theircurrent progress on climate reporting and transition
planning, discover best practice and areas for
improvement, and ultimately, mobilise credible
transition plans. The score will drive improved
disclosure on climate-related risks and opportunities on
London’s markets to help investors to more
appropriately price carbon. FTSE Russell provides thedata for the climate governance score which is basedon the TPI’s management quality score methodology.
The assessments take into account a company’s carbon
management practices and incorporation of climatechange considerations into their business strategy.

Understanding climate
risk and opportunity

Your guide toclimate reporting
Guidance for London-listedcompanies on the integrationof climate reporting best practiceand TCFD implementation.
An LSEG Business

Read more about our model guidance 
for climate disclosure here

The TPI is a global, asset-owner-led initiative
which assesses companies’ preparedness forthe transition to a low-carbon economy. TPI is
supported globally by 120 investors withmore than $40 trillion combined AUM.
Climate Transition Centre
In October 2021, LSEG committed to help
fund the creation of the TPI Global Climate
Transition Centre at the London School of
Economics. It will dramatically scale
publicly-available research on the climatetransition pathways of 10,000 businesses,
covering global equity markets, fixed income
and private markets. This builds on our
existing relationship as FTSE Russell is TPI’s
data partner.

16

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

LSEG net zeroIn January 2021, LSEG joined theUnited Nations Climate Change‘Race to Zero’ becoming the firstglobal exchange group to commit to
net zero. We aim to halve our carbon
emissions by 2030 and will work
towards net zero by 2040.
We have set science-based targets aligned with thegoals of the Paris Agreement to limit global warming towell below 2°C above pre-industrial levels and pursue
efforts to limit warming to 1.5°C.
Our targets• Carbon reduction target: we commit to reducing
our absolute Scope 1, Scope 2 and Scope 3 (Fueland Energy Related Activities, Business Travel and
Employee Commuting) greenhouse gas (GHG)
emissions by 50% by 2030
• Supplier engagement target: we commit that 67%
of our suppliers (by emissions) to set science-basedtargets to reduce their own emissions by 2026

Focus areas
To achieve our near-term targets by 2030 and to identify our path to net zero we are focusing on the following
priority areas:

Climate risk
We will continue to understand, assess andmanage the potential impacts of climate change
on our physical locations and business model.
Please click here to see LSEG’s full TCFD report

Supply chain
We will work with all of our suppliers to integrate
environmental considerations and commitments
into their operations. This includes engaging
67% of our suppliers (by emissions) to set
science-based targets to reduce their own
emissions by 2026.

Property and data centres
We will halve the emissions from our offices
and data centres by optimising our locations anddriving efficient technology. For example, theimplementation of a global tool to track, manage
and measure internal data points across officelocations and functions for real-time reporting.

Renewable electricity
We will ensure 100% of the electricity we consume
is from renewable sources by increasing green
tariffs across our portfolio, exploring on-site andoff-site generation, and by purchasing energy
attribute certificates (EACs) where the other options
are not available.

Travel
We will reduce our emissions from travel by 50%
by working with our colleagues and partners tochange how, when and why we travel. We will
improve cycle-to-work provision including cycle
racks and shower facilities and switch to electricvehicles for shuttle bus services.

Neutralisation and removals
LSEG has achieved CarbonNeutral®
company certification, in accordance with
The CarbonNeutral Protocol, the leading global
framework for carbon neutrality. We will continue
exploring options for removals to support us in
our path to net zero.

17

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

LSEG net zero continued
Our emissions
We continued to reduce our total Group carbon
footprint in 2021, down almost 13% from our 2019baseline, and over 10% down from 2020. We saw
reductions across Scopes 1, 2 and 3 with the greatest
percentage reductions in Scope 2 market-based
emissions, down 69% from the 2019 baseline; this islargely due to all electricity consumed in 2021 being
sourced from either a green tariff or covered by anenergy attribute certificate. Scope 1 emissions reducedby 54% from our 2019 baseline, largely due to a
consolidation of our office footprint as well as reduced
office use. Overall Scope 3 emissions reduced, duelargely to lower levels of business travel due to theongoing global pandemic; emissions from businesstravel in 2021 were down 93% from 2019, and 66% from2020 levels. As travel restrictions begin to ease, we
anticipate business travel, and associated emissions,to increase from the levels seen in 2021. As officeoccupancy levels remained low during 2021 we also
saw reduced Scope 3 emissions from waste disposal;
this is expected to increase as more employees returnto the office. Our plans for 2022 aim to manage these
expected increases in order to stay on track with our2030 target commitment.
While we saw lower emissions from reduced businesstravel and office occupancy in 2021, we experienced asignificant increase in emissions from homeworking

from 2019 levels. However, 2021 emissions forhomeworking are lower than 2020 levels which islargely due to improvements in office attendance data
which tracked actual daily attendance for each office.
This enabled us to calculate more accurate emissions
data for homeworking and commuting and reduced
our reliance on estimated office occupancy figures.
In previous years, a conservative estimate was madefor both commuting and homeworking.
The vast majority (96%) of our emissions arise fromScope 3 purchased goods and services, which
demonstrates how critical supplier engagement is tothe overall reduction of our emissions. As a result, wehave set a supplier engagement target which aims toensure that suppliers responsible for 67% of ourpurchased goods and services emissions have set
science-based targets by 2026. As part of ourengagement with suppliers we will collect emissions
data from our key suppliers to more accurately calculate
our emissions associated with the goods and services
we buy. This will allow us to set targets in the near future
to reduce this portion of our emissions in alignment with
our net zero commitment.

Methodology and verification
statement
We report all of the emission sources
required under the Companies Act 2006
(Strategic Report and Directors’ Reports)
Regulations 2013. These sources fall within
our consolidated statement. We do not have
responsibility for any emission sources that are
not included in our consolidated statement.
Our emissions are calculated according to an‘operational control’ boundary using GHG
Protocol Corporate Accounting andReporting Standard (revised edition) and UK
Government Environmental Reporting
Guidelines: including streamlined energy andcarbon reporting guidance (March 2019).
LSEG’s Scope 1, 2 and 3 emissions disclosed
in this report have been externally verified by
Cameron-Cole against the requirements of
the WRI/WBCSD GHG Protocol, GHG
Protocol Corporate Accounting andReporting Standard (revised edition), GHG
Protocol Scope 2 Guidance: An amendment
to the GHG Protocol Corporate Standard, and
the GHG Protocol Corporate Value Chain(Scope 3) Standard. Conduct of theverification met the requirements of ISO
14064-3:2006(E).

18

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

LSEG net zero continued
Progress against science-based targets (SBTs)

67%

86%

17%

progress in 2021

progress in 2021

progress in 2021

Absolute Scope 1 and 2
Absolute Scope 3(FERA, Business Travel,
Commuting)Total % of emissions fromsuppliers with an SBT

Total group carbon footprint (tCO2e)

2019

13%

2021

Overall performance
Total group carbon footprint (tCO2e)1, 5
per m2
per FTEper £m revenue11
Scope 12
Scope 2 market based3
Scope 2 location based
Renewable electricity (%)7
Scope 34, 5, 6
1. Purchased goods and services
3. Fuel- and energy-related activities (FERA)
5. Waste
5. Water
6. Business travel
7. Employee commuting
7. Home working
8. Upstream leased assets
Exclusions (market-based)10
Exclusions (location-based)10

2021
571,885
1.35
24
80
1,000
3,138
106,566100%
567,747
550,861
5,659
185
80
3,169
1,907
5,805
81
767
1,886

20208

20198

% Change9

640,693
1.50
27
90
1,960
6,492
111,64498%
634,175
603,613
6,371
369
1,166
9,593
4,745
8,236
81
1,933
4,264

657,008
1.54
27
96
2,163
10,189143,206
96%
646,569
564,107
9,082
1,879
1,282
42,662
27,422
55
80
1,914
4,829

-13%
-12%
-10%
-17%
-54%
-69%
-26%
4%
-12%
-2%
-38%
-90%
-94%
-93%
-93%
10,455%
1%
-17%
-60%

1.	All Group totals and electricity breakdowns use market-based Scope 2 emission factors. Group carbon footprint includes tenantconsumption, excludes client-based workers.
2.	Scope 1 Emissions combustion of fuel and operation of facilities – includes natural gas, diesel, LPG, fugitive emissions and fleet vehicles.
3.	Scope 2 Emissions purchase of electricity and heat by the Group for its own use. Market-based emissions use supplier-based emission
factors, and energy attribute certificates for where 100% renewable supplier tariffs are not in place.
4.	Scope 3 includes emissions from purchased goods and services, fuel-and-energy related emissions, air travel, rail travel, taxis, hotels andground transfers, waste, water, employee commuting (including home working) and upstream leased assets.
5.	D EFRA UK Government GHG Conversion Factors are used for our UK sites, and all business travel, water, waste, upstream leased assets
and extrapolated data. US EPA factors are used for United States electricity and employee commute factors. IEA and GHG Protocol
emissions factors are used to calculate Scope 1, 2 and Scope 3 fuel-and-energy-related emissions for international sites where available.
Defra IO factors have been adjusted to reflect reporting year consumer index pricing to estimate emissions related to purchased goods andservices. US and UK National Travel Surveys have been used to inform our estimations for employee commuting. Emissions related toworking from home have been based on EcoAct’s ‘Homeworking emissions whitepaper’ (2020).
6.	Scope 3 emissions are not separately reported by UK and Rest of Group, due to the collection of travel, purchased goods and services andother data at the Group level.
7.	Energy attribute certificates have been purchased to claim renewable electricity consumption for all sites where 100% renewable suppliertariffs are not in place. These certificates have been sourced from an internationally recognised trader who is an IETA member and gold
partner of CDP.
8.	2019 and 2020 total carbon emissions have been restated to reflect the acquisition of Refinitiv.
9.	% Change is calculated between 2021 and 2019, the Group’s target baseline year.
10.Emissions from sites not included within the reporting boundary relate to the divestment of Borsa Italiana and have been published fortransparency.
11. The revenue figures for 2019, 2020 and 2021 are based on a ‘pro-forma’ approach to align with our global GHG inventory.

19

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Climate Transition Plan
We are pleased to publish our first
Climate Transition Plan in a separate
report. This sets out how we are
reducing our emissions in line with
our science-based targets and how
we are enabling a market-wide
transition to a low-carbon economy.
As more businesses set out their commitments to
reduce and remove their emissions across their value
chain, we believe that the publication of climatetransition plans will play an increasingly important role.
Climate transition plans explain how commitments
translate into action, enabling more informed
investment decision-making, deeper engagement
between companies and investors and marketwide collaboration.

At present there is limited consensus around what
constitutes best practice with respect to preparing
a climate transition plan. This is LSEG’s first plan
where we explain our commitments and approach,covering both our near-term targets and how wewill identify actions required beyond 2030.
We support the evolution and adoption of bestpractice guidance for climate transition plans andwill review and refine our own Climate Transition
Plan over time.
Please click here for further information on our
Climate Transition Plan

Sustainability
governance

Additional
disclosures20

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Task Force on Climate-related Financial Disclosures (TCFD)
LSEG has been a signatory andsupporter of TCFD since its launch
in 2017 and has disclosed climatechange as an emerging risk in both
our annual and sustainability reports
since 2019. Each year, we disclose
information on how we expect
climate change, and the associatedtransition to a low-carbon economy,
to impact our business in the nearto long term. We are committed toenhancing our disclosure in line with
TCFD’s recommendations andembedding this across our business.

2021 approach and evolution of TCFD
Since the disclosure in our 2020 annual report, andfollowing the acquisition of Refinitiv in January 2021,
we have enhanced our models for both physical andtransition risks to reflect the newly combinedorganisation. In line with the increased disclosure
requirements for corporations and financial markets
participants, we continue taking proactive steps todevelop our methodology to define and model how
climate change impacts our operations and business.
For 2021, we have published a stand alone TCFD reportand include a summary from that report in this section.
Please click here to see LSEG’s full TCFD report

Our TCFD report details our approach, the identified
risks, opportunities and areas of focus in 2022. We
have worked with internal stakeholders and sought
external expertise to improve our understanding of thefinancial implications of climate-related risks andopportunities to our business, and will continue toiterate and improve the scenarios used to assess ourphysical risk to operations and the opportunities andrisks associated with market shifts in the transition toa low-carbon economy.

It is our intention to reinforce the Group’s resilience toclimate-related physical risks; to address transition risks
and opportunities; to meet existing future reporting
requirements and to protect the Group’s reputation.
UK Climate Financial Risk Forum
LSEG is a member of the Climate Financial Risk Forum(CFRF), an industry forum jointly convened by the
Prudential Regulation Authority (PRA) and the Financial
Conduct Authority (FCA) to build capacity and share
best practice. Since its inception in March 2019, the
CFRF has published a report with industry best practiceon disclosure, scenario analysis, risk management
and innovation.

21

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Task Force on Climate-related Financial Disclosures (TCFD) continued
Summary of the TCFD recommendations
A summary of our approach and activities alignedwith the TCFD recommendations is included below,
more detail can be found in our TCFD reportwww.lseg.com/investor-relations/sustainability

Section

TCFD recommendation

LSEG approach

2021 Enhancements

Reference

GovernanceThe board’s oversight ofclimate-related risks andopportunities• LSEG Board has ultimate oversight of thesustainability agenda and strategy• Updated at least bi-annually on sustainabilityrelated issues including climate risks andopportunities• The LSEG Board has oversight of the Group
Sustainability Policy• Board Risk Committee has oversight of
the Group’s Risk Framework including
sustainability risks• Following the acquisition of Refinitiv, the LSEG
Board approved the updated Sustainability
Policy and received briefings on LSEG’ssustainability approach

Sustainability Policy

Management’s role inassessing and managing
climate-related risks andopportunities• Sustainability Committee is chaired by Chief
Corporate Affairs & Marketing Officer. The Chief
Risk Officer and Chief Operating Officer are also
members of the Sustainability Committee• The Environmental Management Group (EMG)
reports into the Sustainability Committee. The
EMG meets quarterly, sets the environmental
ambition for LSEG, chaired by Chief
Operating Officer• Sustainability Committee membershiprefreshed to reflect new leadership andownership• EMG membership refreshed to reflect newleadership and enhanced accountability

Identification of climaterelated risks andopportunities• Led by Group Risk, sample models havebeen developed with input and validation ofsome of the underlying assumptions by thebusiness, to identify and manage future risks
and opportunities that have a material impact on
physical locations and our business model• Physical Climate Risk Model has been
expanded to incorporate Refinitiv’s locations• Continued socialisation with business partners
to incorporate Refinitiv’s business into LSEG’s
Transition Risk models

Impact of climate-relatedrisks and opportunities
on the organisation’s
businesses, strategy, andfinancial planning• LSEG’s business purpose and commitment
to sustainable growth reflects our approachand consideration of climate-related risks andopportunities in our products and services andbusiness operations• The EMG works across the business to activate
our environmental ambition and ensure
adequate future planning• New business purpose gives a strategic anchor LSEG 2021 TCFD Reportto sustainability which is integrated acrossobjectives at all divisions and functions of LSEG

Resilience of strategy
under varying climaterelated scenarios• Group Risk devised impact pathways to show
• LSEG’s preliminary transition risk model was
operations and business exposure amid external
replicated to a second business unit. Additionalchanges in climate and weather patterns andwork is underway to include Refinitiv’s
subsequent impacts on the business in terms of
exposure into the model
costs and revenue• Initial modelling shows that temperature rises
and weather events would present both risks
and opportunities to LSEG’s business operations
as well as business model

Strategy

LSEG 2021 Sustainability
ReportLSEG 2021 Annual Reportand Accounts (page 20)
LSEG 2021 TCFD Report

Sustainability Policy
LSEG 2021 Sustainability
ReportLSEG 2021 Annual Reportand Accounts (page 20)

22

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Task Force on Climate-related Financial Disclosures (TCFD) continued
Summary of the TCFD recommendations (continued)
Section

TCFD recommendation

LSEG approach

2021 Enhancements

Reference

Risk
management

Processes for identifying
and assessing climaterelated risks• Our Enterprise Risk Management Framework
includes and embeds sustainability risks which
are raised and owned by the business• LSEG’s Risk Taxonomy was updated

Sustainability Policy

Processes for managing
climate-related risks• Risks are managed day-to-day by businessowners with support from Group Risk as secondline of defence• Executive Committee and Sustainability
Committee have oversight and management ofsustainability-related risks and opportunities• New risks identified by business

Integration of climaterelated risks into overallrisk management• Climate-related risks are embedded within theEnterprise Risk Management Framework• Group Risk are represented at every part of ourgovernance structure

Metrics to assessclimate-related risks andopportunities• Accurate data collection in place to support
interim targets and facilitate the accurate andtimely gathering of data
• Strategic external partnerships to drive
accountable net zero metrics for the industry

Disclosure of scope 1,
scope 2, and scope 3
greenhouse gas (GHG)
emissions and the relatedrisks• Combined data inventory reflecting legacy
business emissions for 2019, 2020 and 2021 has
been verified and published• Data collection tool enhanced to cover new
Sustainability Policy
business footprint and ambition• Members of GFANZ and NZSPA with executive LSEG 2021 Sustainability
Reportrepresentation
LSEG 2021 Annual Reportand Accounts (page 20)• Data inventory reflects combined business
operations and considers reductions/increases LSEG 2021 TCFD Report
impacted by Covid

Targets used to manage
climate-related risks
and opportunities andperformance against
targets• New near-term science-based targets approved
with 2026 and 2030 target dates. We havealso set a long-term target to achieve net zeroby 2040

Metrics andtargets

LSEG 2021 Sustainability
ReportLSEG 2021 Annual Reportand Accounts (page 20)
LSEG 2021 TCFD Report• SBTi approved target following re-baseliningof data• Internal working groups established to act onemissions reductions• New net zero target approved, and work isunderway to map relevant reduction pathways

23

OUR STRATEGIC PRIORITIESEnabling the
growth of thegreen economy
To deliver sustainable economic
growth, we need to increase theproportion of economic activity focusedon creating, scaling and deliveringsolutions to the world’s environmental
and social challenges. At the centre ofcapital markets, LSEG has a pivotal rolein helping capital to flow towards
sustainable economic activity.

24

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governanceOur second strategic priority is to enable
the growth of the green economy and
we are focused on the following threeobjectives to make this happen:

OBJECTIVES

Green finance
Provide market infrastructure needed to grow green financedirected towards key sustainability challenges, clean growthand sustainable economic activity.
See page 25

Research
Leverage our research capabilities to support the growth of thegreen economy.
See page 27

Engagement
Promote and support market collaboration, innovation and public
policy to scale green economic growth globally.
See page 28

Additional
disclosures25

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Green finance
We provide market infrastructureneeded to grow green financedirected towards key sustainability
challenges, clean growth andsustainable economic activity.

New Green Economy Mark issuers in 2021
In July 2021 we launched the third annual cohort ofGreen Economy Mark companies. There are now 115
companies with the Green Economy Mark, which
recognises firms with over 50% of their revenues
coming from products and services that contribute to
the global green economy. Together, they have amarket capitalisation of over £165 billion, approximately
3% of the total market capitalisation of the London Stock
Exchange and an increase of 30% from the Green
Economy Mark cohort in 2020.
Throughout 2021 we saw a number of key deals bysustainable businesses, with eight initial public offerings(IPOs) from green companies and funds. VH Global
Sustainable Energy Opportunities raised over £242
million at its IPO in February 2021, whilst Hydrogen One
became the first hydrogen fund to list in London.

Energy storage and clean fuel company, ITM Power
raised £250 million on the London Stock Exchange tohelp build a new factory to make electrolysers, which
are key to energy transition.

Sustainable Bond Market
The London Stock Exchange’s dedicated Sustainable
Bond Market (SBM) champions innovative issuers insustainable finance, and improves access, flexibility andtransparency for investors. As demand from investors
and companies to manage climate risks and create
impact becomes ever more important, our expanded
SBM offers a wide range of opportunities for green,sustainable and social bonds, in addition to bonds fromgreen economy issuers and, most recently,
sustainability-linked bonds.
UK Green gilt
In September 2021 the UK Government issued its firstGreen gilt on the London Stock Exchange’s Sustainable
Bond Market. The £10 billion Gilt was the largest
inaugural green issuance by any sovereign, which willfund green government projects like zero-emissions
buses, offshore wind and schemes to decarbonise
homes and buildings.

Green Economy Mark company:
musicMagpie
Since it was founded in 2007, musicMagpie has grown into aleader in ‘re-commerce’, providing UK and US consumers witha smart, sustainable and trusted way to buy, rent and sell
refurbished consumer technology, disc media and books.
When selling to musicMagpie, customers are offered a fixedvaluation via its website or App, provided with free logistics toship the products and receive payment for their product on the
day of arrival at the warehouse. After the products have been
refurbished, all consumer technology items are sold on with afree 12-month warranty.
According to the company’s CEO, only 1% of the world’s
smartphones are recycled and in 2019, the world generated
53.6 metric tonnes of e-waste. The trend towards buying‘pre-owned’ consumer technology products is accelerating,driven in part by growing consumer acceptance of thecircular economy and by the rising prices of new, highspecification products.
With almost all its revenues qualifying as green revenues,
musicMagpie received the Green Economy Mark at IPO in 2021.
Its £95 million offer was over-subscribed, and the company’smarket valuation exceeded £200 million.
The IPO has enabled musicMagpie to finance two major
initiatives: a smartphone monthly subscription/rental service;and the roll-out of SMARTdrop kiosks in ASDA supermarkets,
via which shoppers can get cash for their old phone in as little
as four minutes. In addition, the company plans to startoffering brands ‘Magpie Circular’, a technology recycling
service for businesses.

26

Introduction

London Stock Exchange Group plc
Group Sustainability Report 2021

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Green finance continued
GREEN COMPANIES DEMONSTRATED RESILIENCY DURING THE COVID-19 PANDEMIC
COVID-19 Volatility Period (Jan 20 – March 20)

GEM companies outperform
GEM companies outperform the FTSE All Share by 115% over last five years.
Although the Green Economy Mark was launched in 2019, this GEM index covers the priceperformance of the current GEM cohort of companies for the last five years.

-13.61%-20.16%

Average of Green
Economy Mark cohort

S&P 500-35.00%Strong drivers of the recent
outperformance of the GEM cohort
are companies working in emerging
energy industries such as hydrogen
and waste to energy tech as well
as funds investing in transition
methodologies and clean meat

GEM Index
FTSE All-ShareFTSE All-Share

COVID-19 Bounce Back (March 20 – March 21)

43.34%

39.94%

38.74%GEM Index
Price
performanceby year
FTSE
All-Share

Average of Green
Economy Mark cohort

STOXX Europe 600

Sources: LSEG, July 2021
*Price performance is as of 25 June 2021

+33%
-5Y

-10%
-4Y

+9%

FTSE All-Share

Sources: LSE, Refinitiv, December 2021
Price performance is rebased as at 1/12/2016

-3Y

-4%

-2Y

+4%

+26%

+23%

+21%

-1Y

-10%

Present+13%

27

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Leveraging our research capabilities
We leverage our researchcapabilities to support the growthof the green economy.
FTSE Russell Green Revenues data
FTSE Russell has been researching and developing
green industry taxonomies for more than a decade.
Our Green Revenues 2.0 data model enables a better
understanding of the green economy, defining what it
is and determining the companies and activities thatcomprise it. The data set is designed to ensure broad
global coverage, comprehensive classification of green
activities and granular data. The Green Revenues data
model is applied to nearly 99% of total global market
capitalisation, capturing over 16,000 public companies
across 48 developed and emerging markets frommicro-cap to mega-cap. This ensures coverage of
FTSE Russell’s broadest equity indexes, including thefull range of indices in the FTSE Global Equity IndexSeries and the Russell US Indexes.
The EU Taxonomy and FTSE Russell’s Green Revenues
Classification System are highly aligned on core
activities to give investors an effective tool with which
to identify companies involved in the green economy
and quantify the share of their revenues that is likely toqualify under the EU Taxonomy.

Sustainable investment research publications
This area of the market is evolving quickly and researchis helpful in understanding the new trends and insights.
Examples of some of our research reports produced
in 2021 are: Anticipating climate change risks onsovereign bonds Achieving scale in active ownership and engagement
through index investing
COP26: Bridging the gap of climate ambition
Benchmarking the Green Bond market
Sustainability in the UK Cross border carbon and potential carbon
border taxes
Towards investor-orientated carbon targets data
COP26 Net Zero Atlas
Navigating the EU Taxonomy Regulation FTSE4Good 20th anniversary special report How to build a climate-adjusted government bond index

Sustainability
governance

Additional
disclosures28

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Engagement
We promote and support market
collaboration, innovation and public
policy to scale green economic
growth globally.
UN Sustainable Stock Exchanges initiative
LSEG has been a member of the UN Sustainable Stock
Exchanges (SSE) initiative since 2014. The SSE initiative
is a UN Partnership Programme organised by UNCTAD,
the UN Global Compact, UNEP FI and the Principles
for Responsible Investment. The SSE’s mission is toprovide a global platform for exploring how exchanges,
in collaboration with investors, companies (issuers),
regulators, policymakers and relevant internationalorganisations, can enhance performance on ESG
issues and encourage sustainable investment, including
the financing of the UN Sustainable Development
Goals. The SSE seeks to achieve this mission throughan integrated programme of conducting evidencebased policy analysis, facilitating a network and forum
for multi-stakeholder consensus-building, and providing
technical assistance and advisory services.

Green Technical Advisory Group
LSEG is a member of Green Technical Advisory Group(GTAG) which is the technical expert group advising the
UK Government on the development of its green
taxonomy. It advises on market, regulatory and scientificconsiderations for developing and implementing a UK
taxonomy which facilitates more informed investment
decisions. The taxonomy will be a common framework
defining what investments can be classed asenvironmentally sustainable. This will help tackle
potential greenwashing, improve understanding ofenvironmental impact help companies and investors
make informed choices, support investment
in sustainable projects and boost efforts to tackle
climate change.
Green Sukuk Taskforce and high-levelworking group
LSEG is a member of the Green Sukuk working group,
which includes the United Nations, and governmentsfrom the Middle East and UK, to coordinate international
efforts to develop and promote green and sustainablesukuks as a viable financial instrument that can attract
capital at scale for green projects that support theachievement of Nationally Determined Contributions
and the broader Sustainable Development Goals.
The work aims to increase alignment of the Islamic
finance industry with the global green and sustainablefinance movement.

LSEG labs sustainable finance innovation unit
In September 2021, LSEG launched a dedicatedsustainable finance innovation unit in Singapore,
focused on creating sustainable finance capabilities
to accelerate innovation and advanced technology
across the country’s fintech ecosystem, supported by
the Monetary Authority of Singapore. The unit provides
a strong combination of data science, data engineeringand ESG expertise which is focused on topics suchas accelerating investment into green infrastructure
projects, measuring climate risks and enhancing
ESG disclosure.
UK Green Finance Institute
LSEG is an active member of the Green FinanceInstitute. 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.

29

OUR STRATEGIC PRIORITIESCreating inclusive
economicopportunity
Inclusive economies enable more
people to participate in, and benefit from,
economic growth, regardless of theirgender, ethnicity, social background,political or religious beliefs. We aim toempower economies, communities andindividuals by championing inclusion
and access to economic opportunity.

30

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Our third strategic priority is to create
inclusive economic opportunity and
we are focused on the following threeobjectives to make this happen:

OBJECTIVES

Inclusive culture at LSEG
Embed an inclusive culture at LSEG that values diverse
perspectives and embraces diversity of every kind.

23,000peopleSee page 31

Inclusive markets
Use our central position within global capital markets to promote
inclusion within companies, industry and society more widely
through market collaboration, research and greater disclosure.

operating in
70 countries

See page 36

Economic empowerment
Support economic empowerment through access to education,
employment and enterprise opportunities to build a secure
future. A key way we do this is through our activity in thecommunity via the LSEG Foundation.

40,000
customers

See page 37

in over
190 countries

31

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Creating inclusive
economic opportunity

Enabling the growthof the green economy

Sustainability
governance

Additional
disclosures

Inclusive culture at LSEG
Our culture
We are committed to embedding an inclusive culture at LSEG
that values diverse perspectives and embraces diversity of
every kind. The culture we are seeking to build is built on
three key pillars:• Connect: we work as one company to serve our customers.
We unify to get the best from our people and to deliver thegreatest value for our customers. We break down silos,
bringing together data, products, people and partners
globally in new and better ways. We behave as a truly
global organisation, creating inclusive teams who work in
partnership with our customers and stakeholders• Create opportunity: we have the courage to think differently.
We are proud of our heritage, yet not constrained by it. We’recurious and willing to disrupt ourselves. We expand ourhorizons and recognise that brilliant ideas and perspectives
can come from anywhere. We shape markets in ways thatcreate sustainable value for society and create an impact
we’re proud of• Deliver excellence: we execute to the highest standards.
We deliver on our commitments and take ownership of every
aspect of our work. We know that financial communities
depend on the integrity of our infrastructure and data, andnever compromise on stability and resilience

Headcount by country – where we operate
5,987

4,117

3,283
2,992

2,013
1,541
1,166

1,001
541

India

UnitedKingdom

Other
territories

United Philippines
States ofAmerica

Sri
Lanka

China

PolandThailand386

349

FranceRomania32

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Inclusive culture at LSEG continued
Inclusive leadership
We expect leaders to build strong, engaged andinclusive teams. We have defined five behaviours thatcreate clear expectations of leaders:• Attract and develop: leaders who go out of their way
to engage talented and inclusive professionals, whoaren’t afraid of hiring people better than themselvesand championing their development• Connect to achieve: leaders who reach across theorganisation to bring together the right people, help
others and influence with skill and insight• Deliver outstanding execution: leaders who holdthemselves and others to the highest standards, takeownership of outcomes and constantly seek ways
to improve• Bring thought leadership: leaders who are curious
and stretch their own thinking through external
connections, and who show courage and credibility• Think strategically to create lasting opportunities:
leaders who are long-sighted and can prioritise withsound judgement and clear direction to deliver
sustainable value
Performance enablement
In 2021, we launched a number of initiatives focusedon culture, leadership, learning, development andperformance. We launched a new strategy for
performance enablement, driving a high-performance
culture with clear alignment to reward and our purpose.

We implemented initial phases of our Total Reward
and Career Frameworks, giving our people further
consistency and transparency on how to grow andprogress their careers. In support of our continuous
learning culture, we launched a new global platformto act as a focal point for all employee learning. All
employees can register their interests, and browse
recommended courses, as well as ensure theirregulatory training is up to date.
Wellbeing
Our goal is to create a healthy and resilient organisation,
where people can perform at their best and are
motivated to contribute to organisational success, withan enhanced sense of their own wellbeing, particularly
in light of the ongoing pandemic. In 2021, we
introduced a single, confidential and anonymous
Employee Assistance Programme (EAP) with 24/7
dedicated counselling, practical information, live anddigital content to support wellbeing. The EAP isavailable to employees, contractors and membersof their household.
We also relaunched our global Mental Health
Awareness Champions to help us improve mental
health literacy and build confidence to support healthy
behaviours in the workplace. We now have 170
Champions across the Group.

Employee engagement
We continue to build a strong foundation for listening
across the business, using both qualitative andquantitative research to understand colleague
sentiment at different stages of the employee
experience. LSEG Engage, a new Group-wide
engagement survey, was launched in 2021 to help
us understand what’s working well and what we cando better. The results are used by people leaders to
support team conversations and drive action acrossthe Group.
In 2021, 81% of the organisation participated in thefirst LSEG Engage (this is up 7% compared with theemployee survey conducted in May 2021). Overall
engagement remained stable throughout the year,
reflecting our strong commitment to listening andcreating an environment in which diverse perspectives
are valued and where people feel they can share
their views.
In 2021, we launched LSEG Onboarding and LSEG
Leavers surveys to gather important feedback fromnew joiners and leavers about their experiencesat LSEG.

33

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Inclusive culture at LSEG continued
LSEG Onboarding is sent to new colleagues, 30 days
after their start date and is designed to understand thereasons they joined LSEG and to gather initial feedbackon their early experiences. In 2021, 62% of new joiners(c.2,000 people) shared their views.
LSEG Leavers is sent to colleagues leaving LSEG 60
days prior to their leave date and is designed to better
understand their experience and reasons for leaving. In
2021, 56% of leavers (c.1,100 people) shared their views.

Diversity and inclusion strategy
We are committed to creating a culture of openness
and inclusion, and to building a workplace thatembraces diversity of every kind.
While we have made good progress in some areas, werecognise that there is more work to be done. In 2021,
we designed and implemented a new global diversity
and inclusion (D&I) framework, with four key priorities:
1. Create a culture that fosters belonging
2. Build a diverse leadership team
3. Accelerate progression of underrepresented talent
4. Shape inclusion in our industry and develop specific,
measurable action plans for each priority
Employee networks
We have a number of active employee networks which
support our diversity and inclusion agenda:• Accessibility network• Asian affinity network• Black employee inspired network• Latinos for empowerment, advancement anddevelopment• Multi-cultural network• Multi-faith network• Pride network• Veterans support network• Women inspired network

2021 Highlights• We formalised leader accountability for D&I by setting aGroup Strategic Objective (GSO) that holds the Executive
Committee and Group Leaders accountable for progress
on D&I• We introduced new targets, applicable to the wholeGroup: for gender diversity – 40% women in seniorleadership roles by end of 2022; and for racial and ethnic
diversity – 25% underrepresented groups in seniorleadership roles by end of 2025
• We enhanced our talent development processes andprovided training for people leaders to help themrecognise and manage potential biases in performanceenablement activity• We have made public commitments on race and disability
equality through the Race at Work Charter and theValuable 500 and grown our Inclusion Networks

34

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Inclusive culture at LSEG continued
2021 PERFORMANCE METRICS
Recruitment and onboarding

Talent and mobility % of roles filled internally

45%

95%

84%

Diversity and inclusion

a total of 8,427 hires in 2021; 3,803
positions were filled internally% of leavers that cited work-life balance
as primary reason for leaving

74%
of new joiners say they are
comfortable being themselves at workof new joiners agree that LSEG’s role
as a sustainable business was animportant factor in their decision tojoin the organisation11%of respondents to LSEG Engage agreed
that LSEG has a climate in which diverse
perspectives are valuedof leavers cited work-lifebalance as one of the main
reasons for leaving

35

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Inclusive culture at LSEG continued
Gender pay gap report
We conduct equal pay analysis as part ofour annual pay review process and are
confident that we do not differentiate pay
between men and women who perform
equivalent roles. We have a Group-wide
reward framework, which establishes thecompensation structure, elements, andleverage for each stage in our careerframework. This is used to review any
potential gender bias as part of our annual
pay review process.
Further detail can be found in our
Gender pay gap report.

Gender
33% women in Senior Leadership1 as at 31 December 2021, with a target of 40% by end of 2022.
2021 (Combined company)

2020 (H LSEG)

GenderFemale%Male%

Female%Male%

LSEG plc Board
LSEG Subsidiary Boards1
Senior Leadership (Exco and Group Leaders)2People Leaders (Line Managers)
All employees

6
90
34
1,024
9,920

46%
28%
33%
33%
43%

7
234
69
2,046
13,341

54%
72%
67%
67%
57%

4
28
172
420
1,934

44%
20%
37%
30%
35%

5
110
298
1,001
3,652

56%
80%
63%
70%
65%

1 This covers the combination of all LSEG subsidiaries boards
2	In 2021, Senior Leaders refers to ExCo and Group Leaders. In 2020, this referred to ExCo and their leadership teams.
Data as of 31 December 2021.

Race and ethnicity
We have made it possible for employees to disclose their ethnicity using government/census categories that are locally and culturally relevant,where it is appropriate for us to collect this information.
16% racial and ethnic minorities in senior leadership as at 31 December 2021, with a target of 20% by end of 2023 and 25% by end of 2025.
2021

Race and ethnicity

White

%

Racialand ethnic
minorities

Senior Leadership (ExCo and Group Leaders) (Global)3, 4
People Leaders (Line Managers) (US and UK only)5
All employees (US and UK only)5

76
952
4,197

84%
78%
69%

14
273
1,859

3 Global representation.
4 Senior leadership refers to ExCo and Group Leaders; only includes Senior Leaders based in countries where we collect race/ethnicity information.
5 Representation in the UK and US, where we have high levels of self-disclosure.

%

Disclosure
rate

16%
22%
31%

90%
86%
84%

36

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Inclusive markets
We aim to use our central position
within global capital markets topromote inclusion within companies,
industry and society more widely
through market collaboration,
research and greater disclosure.

• During 2021 we published ‘Accelerating Black
Inclusion’ in partnership with New Financial• We partnered with London School of Economics topublish ‘Good Finance’, a research report on theexperiences of women in financial services• We continued our membership of the Valuable 500
and LSEG became one of the group’s 13 ‘Iconic
Leaders’ that will co-fund, co-build and co-test rapid
solutions which deliver meaningful progress on
disability inclusion• We provide D&I data through Eikon and via Refinitiv
Knowledge Direct feed. The diversity and inclusion ranking
compares over 11,000 companies globally and identifies the
top 100 publicly traded companies with the most diverse andinclusive workplaces, as measured by 24 separate metrics
across four key pillars• We participated as an Advisory Board member on the City of
London Taskforce on Socio-Economic Diversity. It aims toboost the socio-economic diversity at senior levels in UK
financial and professional services

37

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Economic empowerment
We support economic
empowerment through accessto education, employment andenterprise opportunities to build
a secure future. A key way we dothis is through our activity in thecommunity via the LSEG Foundation.

In 2021 we integrated the heritage LSEG and Refinitiv
charitable entities and approaches into one combined
LSEG Foundation, aligning its mission with LSEG’s
purpose and making it the unified focal point for our
global work in the community.

As an independent charitable entity, the LSEG
Foundation is governed by a dedicated trustee board
and management team, leveraging LSEG’s expertise,reach, resources and partnerships in financial markets
to address critical challenges facing society.

The LSEG Foundation delivers its mission by focusing
on three key strands of activity:

To drive employee engagement across LSEG, we haveestablished local Community Action Teams andRegional Charity Committees to ensure all areas of thebusiness are involved, reflected and supported in our
global approach.

• Fund: engaging a small portfolio of organisations,selected to deliver economic empowerment
programmes across the world, through multi-year
strategic partnerships• Engage: providing grants to a range of regional andlocally selected charities, tackling the issues thatmatter most in the communities where we operate.
We encourage LSEG’s employees to support the
LSEG Foundation’s work through matched fundraisingand by using their two volunteer days to give theirtime and skills to our charity partners or other causesthat matter most to them
• Convene: funding a select number of non-commercial
initiatives which unlock the power of finance to drive
positive sustainability outcomes. This could include,for example, funding leading academic analysis toaccelerate sustainable finance or developing global
sustainability standards and infrastructure

The LSEG Foundation receives its funds through LSEG
plc donations, corporate and employee fundraising and
London Stock Exchange fines.

FOUNDATION

38

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Economic empowerment continued
2021 Highlights• LSEG donated over £2 million to the LSEG Foundation• Over 875 employees were engaged in the global
community investment programme• More than 400 charities were positively impacted
through the LSEG Foundation, employee matchedfundraising and volunteering initiatives• LSEG is a founding supporter of UNICEF UK’s
VaccinAid campaign, providing equitable access to
Covid-19 vaccines for all participating countries,
regardless of their ability to pay. We also helped toprovide additional medical support in India and Sri
Lanka via our partnership with UNICEF, increasing
access to life-saving oxygen and testing• We provided funding and CEO secondee role toenhance the operations and delivery of Urban
Synergy, a youth empowerment charity with a
mission to inspire, guide and ignite the ambitionsof young people• We also continued support for long-standing
partnerships such as:– School Home Support (SHS): focusing on
disadvantaged children and families, providing
access to the education and life skills young
people need so that they can go on to lead secure
adult lives– City Harvest: New York City’s largest food rescue
organisation, helping to feed more than 1.5 million
New Yorkers and building a path to a food-secure
future in the city

Community contributions
LSEG community investment

2021
£’000

2020
£’000

2019
£’000

Donations to LSEG Foundation
Donations to other charities
Management costs*
Total

1,930
242
16
2,188

1,764
3,173
158
5,095

1,616
130
131
1,877

*	Management costs calculated differently in 2021 compared to previous years, given the sale of Borsa Italiana and subsequent reconfiguration of the teamassociated with the operational governance and processes involved with the LSEG Foundation.

– Crée Ton Avenir France: increasing this charity’s
reach by providing funds and volunteering for
programmes helping young students fromdisadvantaged backgrounds reach their fullpotential and identify future career paths– Leonard Cheshire: funding initiatives that help
support, upskill and provide meaningfulemployment to disabled women in Northern
Sri Lanka

39

Sustainability
governance40

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Sustainability governance
LSEG Board
The Board has ultimate oversight of the sustainability
agenda and strategy, ensuring long-term success of thecompany and that stakeholder expectations are met
through our commitments and approach.

Environmental Management Group
This group is responsible for LSEG’s net zerocommitments and delivery plans. It is chaired by theGroup Chief Operating Officer and reports to the
Sustainability Committee on progress.

Executive Committee
The Group CEO has ultimate accountability for
LSEG’s sustainability approach. The Executive
Committee collectively set the strategic ambition for
the Group on sustainability and progress towards thisis embedded in the executive remuneration for all
Executive Committee members. The Chief Corporate
Affairs & Marketing Officer is the Executive Committeesponsor for sustainability.

Sustainability Working Group
This group is responsible for shaping and delivering
the sustainability strategy. The group comprises
sustainability subject matter experts from across thebusiness divisions and functions. It is chaired by theGroup Head of Sustainability who also sits on theGroup Sustainability Committee.

Sustainability Committee
This is a senior-level committee, chaired by the Chief
Corporate Affairs & Marketing Officer, that provides
strategic direction on the Group’s sustainability strategy
and approves programmes of work. It comprises sevenmembers of the Executive Committee as well as
several other senior executives. The Sustainability
Committee monitors progress and performance andreports to the Executive Committee.

LSEG Foundation Trustee Board
This Board oversees the work of the LSEG
Foundation, which is a charitable incorporatedorganisation (CIO) registered and regulated by theCharities Commission for England and Wales. It ischaired by LSEG’s Chief Corporate Affairs & Marketing
Officer and comprises independent trustees andtrustees who are LSEG employees.

Executive remuneration
The link between sustainability performance andexecutive pay is an important issue for shareholders.
We reward high performance that leads to businesssustainability, as well as linking incentives for executive
directors to sustainability performance.
Executive Committee compensation is linked to thedelivery of our Group strategic objectives, one of which
commits LSEG to being a strategic enabler ofsustainable growth.

41

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governanceEngagement with stakeholders
As a global financial markets
infrastructure and databusiness, LSEG works
across the marketplace withinvestors, issuer companies,
policy makers, regulators,
academics and otherstakeholders to support
global financial stability andsustainable economic growth.
Stakeholder engagement and collaboration is
crucial in how we conduct our business, andwe recognise that stakeholder concerns canonly be truly addressed through effective
stakeholder engagement.
The Board views customers, regulators andemployees as key stakeholders. Here we
provide a brief commentary on our
engagement with our stakeholders in 2021.
More information on our stakeholder
engagement can be found in the Annual
Report on page 61.

Our customers
We engage with our customers across ourbusiness in a number of different of ways.
During 2021, the Group CEO engaged withcustomers in ways including:• An extensive outreach programme to key
customers at and following deal close• Individual meetings in person and in virtual
formats with particular emphasis on settingout the expanded LSEG proposition acrossthe capital markets value chain and to hearfrom customers directly• Attendance at the FTSE Russell World
Investment Forum in California to meet asset
owners and asset managers in person
We also engage regularly with our customers inmeetings, at roundtable events, market openings,
market close sessions and conferences. In 2021,
much of this engagement continued to take placevirtually due to the Covid-19 pandemic; however,when safe to do so, we welcomed a number ofcustomers to the office in Paternoster Square formarket open and market close sessions, whichwere well attended.
Workforce
Employee engagement continues to be ofparamount importance to the Group. Details of
how we have engaged with our people in theyear can be found on page 32.

Shareholders
The Company maintains an active shareholder
engagement programme, managed through theGroup’s Investor Relations (IR) function. The IR
programme provides regular opportunity for the
Board to have contact with existing and potential
shareholders. In 2021, IR held meetings with over
700 investors.
Suppliers
Our suppliers are also important stakeholders of
the Group. LSEG completes a risk assessment on
all new suppliers prior to onboarding, as requiredby LSEG’s Group Procurement Policy. Suppliers
are segmented as low, medium or high risk basedon range of risk factors. Further details can befound in our Modern Slavery Statement.
Regulators and policy makers
LSEG is committed to using its position at theheart of financial markets to contribute to thedevelopment of effective and proportionate
sustainable finance policy.
LSEG regularly engages with policy makers andregulators in key jurisdictions, including HM
Treasury, Financial Conduct Authority, Bank ofEngland, European Commission, Council of the
EU and European Parliament, US Commodity
Futures Trading Commission, China Securities
Regulatory Commission, People’s Bank of China,
Japan Financial Services Agency and otherauthorities and international organisations suchas IOSCO to discuss legislative proposals andcontribute to the development of sustainablefinance policy.

Additional
disclosures42

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Operating responsibly
Our sustainability approach isunderpinned by a series of policies
and standards which apply to LSEG’s
global operations. The policies
ensure we effectively manage
relevant environmental, social andgovernance issues.
Business ethics
We are committed to the highest standards of integrity.
The standards and behaviours expected of all LSEG
employees, regardless of geography or discipline,
are set out in the LSEG Code of Conduct. The Codereflects the way employees work, collaborate
and engage with colleagues, customers andother stakeholders.
Employees are required to conduct mandatory training
annually on the Code. In 2021, 85% employees
completed the training (the remainder represents
employees on long-term leave).

Financial crime, bribery and corruption
LSEG is committed to supporting government, law
enforcement and international bodies to combat theuse of the financial services sector to facilitate financial
crime. LSEG has a zero-tolerance approach to financial
crime as it undermines the rule of law, democratic
processes, the wellbeing and human rights of citizens,and distorts free trade and competition. Our Financial
Crime policy sets out requirements to minimise financial
crime, which encompasses, but may not be limited to,money laundering, terrorist financing, breach ofinternational trade sanctions, bribery and corruption,
fraud and false accounting, insider trading, market
abuse, theft or misuse of confidential information orother malpractice. LSEG also has a dedicated policy on
anti-bribery and corruption which applies globally andis aligned with the UK Bribery Act and the US Foreign
Corrupt Practices Act.

Health and safety
The Group focused its health and safety strategy on
both the management of Group activities around
Covid-19 and the integration following the acquisition of
Refinitiv. We built on the work in 2020 to ensure robust
processes focusing on the safety of our colleagues
within our sites in addition to supporting thosecontinuing to work from home. We ensured that oursites have appropriate risk assessments and that
adequate controls are in place to support the returnto offices across the Group and applied stringent
measures to ensure the safety of all those visiting our
locations. We have aligned our processes and ensured
we are following best practice guidance. As a part ofthis, we reviewed and launched our new Health, Safety
and Environment policy. In addition, we have started toalign our IT health and safety systems to provide
consistency across the business, which includes
systems for workstation assessment, incident reporting,environmental data collection and auditing.
In 2021 there were eight reported health and safetyincidents, none of which resulted in a fatality. No
enforcement action was brought as a result of thereported health and safety incidents.

43

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Operating responsibly continued
Human rights
We recognise our duty to respect human rights within
our workforce, supply chain and by reducing financial
crime, bribery and corruption. We have a number ofpolicies which directly or indirectly seek to respecthuman rights and are aligned with international humanrights standards and principles. These include our
Employee Code of Conduct, Supplier Code of Conduct,and our financial crime policies. We monitor all current
and emerging human rights-related regulation and as a
UK-headquartered business are committed to adhere
to the UK Modern Slavery Act 2015.

Our Modern Slavery Act statement is available on
www.lseg.com/investor-relations/sustainability
Information security
Information security is a significant risk to LSEG, itscustomers and business partners. Our Information
Security Policy sets out the responsibilities of
employees and the expectations for maintaining thesecurity of customers and business information, as wellas adhering to legal and regulatory requirements in theregions in which we operate. The policy seeks tomanage risks to information assets from unauthorised
access or modification, malicious or accidental
disclosure and/or destruction, and to maintain theirconfidentiality, integrity and availability.

Sustainability Policy
Our Sustainability Policy sets out the requirements for
LSEG to ensure it identifies, manages and improves its
sustainability performance. The policy is supported byseveral standards including community investment,
human rights, environmental management, anddiversity and inclusion.
Tax strategy
LSEG recognises that payment of tax is an important
contribution to well-functioning economies andsocieties. We believe in the obligation to pay our fairshare of tax due in any country at the right time. We
comply with all relevant laws and regulations related tothe payment of tax and maintain appropriate systems,
processes and controls to enable us to fulfil our tax
obligations. The Group’s underlying effective tax rate
for the period in respect of continuing underlying
operations and excluding the effect of prior year
adjustments was 20.7% (2020: 24.4%).

LSEG’s global tax strategy is available on
www.lseg.com/about-lseg

Whistleblowing
We are committed to providing an open environment
where our colleagues, contractors and other third
parties feel comfortable raising concerns aboutadherence to our Code of Conduct, relevant laws andregulations or if they consider something unethical or
potentially harmful. Colleagues can raise concerns
independently through LSEG’s Speak Up confidential
24-hour hotline or online to lseg.ethicspoint.com. Allconcerns are treated in confidence and are fully
investigated and, where appropriate, actions will betaken to address any concerns raised and to improvethe environment in which we work.
The Group’s whistleblowing policy provides a methodof addressing concerns while at the same time offering
whistleblowers statutory protection from demotion or
the withholding of promotion, reduction of wages,
discrimination, victimisation, harassment or unjustifiabledisciplinary proceedings.

44

Additional
disclosures45

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Additional
disclosures

Sustainability
governanceSocialEmployment by region

By contract typeCountry
India
United Kingdom
United States of America
Philippines
Sri Lanka
China
PolandThailandFranceRomania
Singapore
Japan
South Africa
Malaysia
Hong Kong
Russian Federation
United Arab Emirates
Costa Rica
Australia
TaiwanGermany
CanadaOther
Total

Headcount

%

5,987
4,117
2,992
2,013
1,541
1,166
1,001
541
386
349
311
288
285
261
219
147
145
133
132
131
119
113
999
23,37625.61%
17.61%
12.80%
8.61%
6.59%
4.99%
4.28%
2.31%
1.65%
1.49%
1.33%
1.23%
1.22%
1.12%
0.94%
0.63%
0.62%
0.57%
0.56%
0.56%
0.51%
0.48%
4.27%
100.00%Time type
Full TimePart Time
Fixed Term

Headcount%

23,0409224498.56%
0.39%
1.04%

Health and safety
Number of health and safety incidents
Employees covered by collective bargaining
agreements
Employees voluntary turnover81
4.72
13.60%

1	No fatal incidents occurred at LSEG in 2021. No enforcement action was brought forward as a result of any incidents.
2	The figure reflects the position following the acquisition of Refinitiv and we will enhance our data disclosure in
future reports.

Gender diversity by country

Country
India
United Kingdom
United States of America
Philippines
Sri Lanka
China
PolandThailandFranceRomania
Singapore
Japan
South Africa
Malaysia
Hong Kong
Russian Federation
United Arab Emirates
Costa Rica
Australia
TaiwanGermany
CanadaOther

Female %Male %

40.84%
33.81%
36.60%
54.69%
33.61%
66.04%
57.64%
38.26%
32.38%
32.09%
47.91%
50.69%
70.88%
64.37%
52.97%
62.59%
31.72%
42.11%
36.36%
56.49%
31.09%
23.89%
42.12%

59.16%
65.70%
63.27%
44.86%
66.39%
33.79%
42.36%
61.74%
65.28%
67.34%
52.09%
49.31%
28.42%
35.63%
47.03%
37.41%
68.28%
57.89%
63.64%
42.75%
68.91%
73.45%
57.41%

2021
Gender diversity byorganisational level
LSEG plc Board
LSEG Subsidiary Board
ExCo and Leadership Teams*
All colleagues
Employees by age group

Female

%

Male

%

6
90
34
9,920

46%
28%
33%
43%

7
234
69
13,341

54%
72%
67%
57%

Age group HeadcountUnder 30
30–50Over 50
Total

6,961
13,855
2,548
23,376%29.78%
59.27%
10.90%
100.00%*	Figures as of year end 31 December 2021. Due to rounding, some totals may not correspond with the sum of
separate figures.

46

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Environmental
Overall performance
Total group carbon footprint (tCO2e)1, 5
per m2
per FTEper £m revenue11
Scope 12
Scope 2 market based3
Scope 2 location based
Renewable electricity (%)7
Scope 34, 5, 6
1. Purchased goods and services
3. Fuel-and energy-related activities (FERA)
5. Waste
5. Water
6. Business travel
7. Employee commuting
7. Home working
8. Upstream leased assets
Exclusions (market-based)10
Exclusions (location-based)10

2021
571,885
1.35
24
80
1,000
3,138
106,566100%
567,747
550,861
5,659
185
80
3,169
1,907
5,805
81
767
1,886

20208
640,693
1.50
27
90
1,960
6,492
111,64498%
634,175
603,613
6,371
369
1,166
9,593
4,745
8,236
81
1,933
4,264

20198
657,008
1.54
27
96
2,163
10,189143,206
96%
646,569
564,107
9,082
1,879
1,282
42,662
27,422
55
80
1,914
4,829

% Change9
-13%
-12%
-10%
-17%
-54%
-69%
-25%
4%
-12%
-2%
-37%
-90%
-94%
-93%
-93%
10455%
1%
-15%
-60%

1.	All Group totals and electricity breakdowns use market-based Scope 2 emission factors. Group carbon footprint includes tenant consumption, excludes client-based workers.
2.	Scope 1 Emissions combustion of fuel and operation of facilities – includes natural gas, diesel, LPG, fugitive emissions and fleet vehicles
3.	Scope 2 Emissions purchase of electricity and heat by the Group for its own use. Market-based emissions use supplier-based emission factors, and energy attribute certificates for where
100% renewable supplier tariffs are not in place.
4.	Scope 3 includes emissions from Purchased goods and services, fuel-and-energy related emissions, air travel, rail travel, taxis, hotels and ground transfers, waste, water, employee
commuting (including home working) and upstream leased assets.
5.	DEFRA UK Government GHG Conversion Factors are used for our UK sites, and all business travel, water, waste, upstream leased assets and extrapolated data. US EPA factors are used
for United States electricity and employee commute factors. IEA and GHG Protocol emissions factors are used to calculate Scope 1, 2 and Scope 3 fuel-and-energy-related emissions forinternational sites where available. Defra IO factors have been adjusted to reflect reporting year consumer index pricing to estimate emissions related to purchased goods and services.
US and UK National Travel Surveys have been used to inform our estimations for employee commuting. Emissions related to working from home have been based on EcoAct’s‘Homeworking emissions whitepaper’ (2020)
6.	Scope 3 emissions are not separately reported by UK and Rest of Group, due to the collection of travel, purchased goods and services and other data at the group level.
7.	Energy attribute certificates have been purchased to claim renewable electricity consumption for all sites where 100% renewable supplier tariffs are not in place. These certificates havebeen sourced from an internationally recognised trader who is an IETA member and gold partner of CDP.
8.	2019 and 2020 total carbon emissions have been restated to reflect the acquisition of Refinitiv.
9.	% Change is calculated between 2021 and 2019, the Group’s target baseline year.
10.	Emissions from sites not included within the reporting boundary relate to the divestment of Borsa Italiana and have been published for transparency.
11. The revenue figures for 2019, 2020 and 2021 are based on a ‘pro-forma’ approach to align with our global GHG inventory.

Sustainability
governance

Additional
disclosures47

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Environmental continued
Business travel
Overall performance
Total group carbon footprint (tCO2e)1
per FTEper £m revenue
Total air travel (tCO2e)
Total air travel (km)Total rail travel (tCO2e)
Total rail travel (passenger/km)
Taxis, ground transfers & hotels (tCO2e)
1 Total Scope 3 business travel emissions from air travel, rail travel, taxis, hotels and ground transfers.
2 2019 and 2020 total carbon emissions have been restated to reflect the acquisition of Refinitiv.
3 % Change is calculated between 2021 and 2019, the Group’s target baseline year.

2021
3,169
0.14
0.47
2,531
7,216,507
4
136,706
634

20202
9,593
0.40
1.35
7,745
26,427,554
12571,238
1,836

20192
42,662
1.76
6.26
40,845133,187,417
42
1,848,286
1,775% Change3
-93%
-92%
-93%
-94%
-95%
-90%
-93%
-64%

Sustainability
governance

Additional
disclosures

48

London Stock Exchange Group plc
Group Sustainability Report 2021

Environmental
continued

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Regional
Overall performance
Total group carbon footprint (tCO2e)1, 2
per FTEper £m revenue
Scope 3 other3
UK
Total (tCO2e)3per FTE
Electricity (kWh)Natural Gas (kWh)
LPG (tonnes)
Diesel (litres)
Fugitives (kg)
Waste (tonnes)
Water (m3)
EMEA
Total (tCO2e)3per FTE
Electricity (kWh)Natural Gas (kWh)
LPG (tonnes)
Diesel (litres)
Fugitives (kg)
Waste (tonnes)
Water (m3)AmericasTotal (tCO2e)3per FTE
Electricity (kWh)Natural Gas (kWh)
LPG (tonnes)
Diesel (litres)
Fugitives (kg)
Waste (tonnes)
Water (m3)
APAC
Total (tCO2e)3per FTE
Electricity (kWh)Natural Gas (kWh)
LPG (tonnes)
Diesel (litres)
Fugitives (kg)
Waste (tonnes)
Water (m3)Exclusions tCO2e

2021
571,88524
80561,057
1,869
0.41
50,510,465
3,712,339
0
16,824155
212
52,931860
0.27
9,131,424
3,221,374
0
100
0
273
18,1335,240
1.48
722,566
10,246,078
0
38,2750369
62,971
2,092
0.16
36,246,691
1,875,264
0100,6180
224
54,184
767

20204
640,69327
90622,402
3,108

20194
657,00827
96
630,500
4,404% Change5
-13%
-10%
-17%
-11%
-58%

75,754,157
4,402,757
037,294
191
283
379,615
1,184
0.31
10,710,047
3,366,544
0
100
0
215
82,6875,820
1.47
837,1449,000,819
0
116,235
0272
256,4226,246
0.54
43,484,215
3,143,5502
270,367
0784
385,753
1,933

112,039,072
6,440,175
044,95087
1,792
408,594
1,911
0.48
38,541,457
4,340,881
0
0
0
1,232
95,051
12,292
2.83
149,735,972
8,234,858
0
52,717
0
1,828
280,583
5,989
0.51
44,056,250
3,020,116
10
89,737
0
3,595
426,506
1,914

-55%
-42%
–
-63%
78%
-88%
-87%
-55%
-45%
-76%
-26%
–
–
–
-78%
-81%
-57%
-48%
-100%
24%
–
-27%
–
-80%
-78%
-65%
-68%
-18%
-38%
-100%
12%
–
-94%
-87%

1.	All Group totals and electricity breakdowns use market-based Scope 2 emission factors.
Group carbon footprint includes tenant consumption, excludes client-based workers.
2.	DEFRA UK Government GHG Conversion Factors are used for our UK sites, and allbusiness travel, water, waste, upstream leased assets and extrapolated data. US EPA
factors are used for United States electricity and employee commute factors. IEA and GHG
Protocol emissions factors are used to calculate Scope 1, 2 and Scope 3 fuel-and-energyrelated emissions for international sites where available. Defra IO factors have beenadjusted to reflect reporting year consumer index pricing to estimate emissions related topurchased goods and services. US and UK National Travel Surveys have been used to
inform our estimations for employee commuting. Emissions related to working from homehave been based on EcoAct’s ‘Homeworking emissions whitepaper’ (2020).
3.	Total tCO 2 e by region includes Scope 1, Scope 2 and Scope 3 water, waste and fuel-andenergy-related activities emissions. The remaining emissions are summarised by ‘Scope 3
Other’ which includes Scope 3 emissions from Purchased Goods & Services, BusinessTravel, Employee Commuting, Home Working and Upstream Leased Assets. Excluded
emissions have been included for transparency.
4.	2019 and 2020 total carbon emissions have been restated to reflect the acquisition of
Refinitiv.
5.	% Change is calculated between 2021 and 2019, the Group’s target baseline year.

Methodology and verification
We report all of the emission sources required under theCompanies Act 2006 (Strategic Report and Directors’ Reports)
Regulations 2013. These sources fall within our consolidated
statement. We do not have responsibility for any emission
sources that are not included in our consolidated statement.
Our emissions are calculated according to an ‘operational
control’ boundary using GHG Protocol Corporate Accounting
and Reporting Standard (revised edition) and UK Government
Environmental Reporting Guidelines: Including streamlined
energy and carbon reporting guidance (March 2019).
London Stock Exchange Group’s Scope 1, 2 and 3 emissions
disclosed here and in our Annual Report have been externallyverified by Cameron-Cole against the requirements of the
WRI/WBCSD GHG Protocol, GHG Protocol Corporate
Accounting and Reporting Standard (revised edition), GHG
Protocol Scope 2 Guidance: An amendment to the GHG
Protocol Corporate Standard, The GHG Protocol Corporate
Value Chain (Scope 3) Standard. Conduct of the verification
met the requirements of ISO 14064-3:2006(E).

49London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

UN SSE: communication to stakeholders
Having joined the UN Sustainable Stock Exchanges (SSE) initiative in 2014, LSEG has committed to report to SSE stakeholders on an annual basis. The report provided below is in line with thetemplate and structure developed by the SSE. This is LSEG’s seventh report on progress.
Business strategy
How does your exchange define and view1
the rationale for corporate sustainability andthe exchange’s role in promoting it?

Our CEO’s message, sustainability strategy and materiality review on pages 3, 6 and 8 respectively, demonstrate our rationale for sustainability and our role in promoting it.

2

How does your exchange’s senior leadership Our sustainability strategy is developed and reviewed by our Executive Committee and Board, while our organisational structure is set out on page 2.
and organisational structure support theWe support the promotion of sustainability across the financial markets and are committed to resourcing sustainability sufficiently. In the past year, LSEG has onboarded an
promotion of corporate sustainability in its
experienced Group Head of Sustainability as well as creating three new roles in its Capital Markets division dedicated to sustainable finance innovation.
market(s)?

3What goals/objectives does your exchange
have in regards to advancing sustainability
in your market?

Transparency and issuer reporting
Describe your exchange’s approach to
4
promoting sustainability disclosure
by companies.

Our work on sustainability comprises three main pillars that support the advancement of sustainability on our markets.
1) Growing the green economy: product innovations that support the growth of businesses that are directly contributing to the creation of a more sustainable economy as wellas achieving positive environmental outcomes.
2) Supporting the low-carbon transition: helping businesses in more carbon-intensive industries transition to low-carbon business models through tools, education and accessto capital.
3) Data and disclosure: quality ESG data and disclosure is the cornerstone of sustainable investing. We’re supporting capital flows into sustainable companies by encouraging
high-quality disclosure from London-listed businesses through tools, resources and education.
We encourage best practice disclosure on all elements of ESG including climate-related risks and opportunities and TCFD recommendations.
Earlier this year we played a pivotal role as Co-Chair to the development of the UN SSE’s Model Guidance on Climate-related Disclosures. We subsequently published our own
version of the guidance which is specific to the UK regulatory landscape and designed to educate the market on what climate-related information is material to investors.
In ESG reporting, we maintain an updated ESG reporting guide to help companies understand leading global frameworks, reporting formats and recommended disclosures perindustry. Our online ESG disclosure tool allows companies to identify industry-specific disclosures that are considered best practice.
Applying FTSE Russell data and the Transition Pathway Initiative’s management quality methodology, we provide listed companies with an assessment of their carbon
management practices to help identify areas for improvement in their climate disclosure and integration of climate risks and opportunities into business strategy. Our
accompanying online tool enables issuers to receive personalised recommendations on how to improve their carbon management practices.
To help issuers navigate the implementation of TCFD recommendations, we worked in partnership with the UN SSE to provide training videos on various aspects of climate
reporting as well as organising two interactive online sessions.

5

What is your exchange’s process forreviewing listing standards in general?
Are there opportunities for stakeholders
to comment during the process?

The UK’s Financial Conduct Authority (FCA) is responsible for setting listing standards in the UK, not the London Stock Exchange.
The London Stock Exchange is a stakeholder in the policies set by the FCA and therefore contributes during consultations on listing rules. London Stock Exchange is responsible
for the Admission and Disclosure standards and where there are proposed changes we would consult with the market for comments.
London Stock Exchange is responsible for the rules and regulation of AIM, our market for entrepreneurial growth.

6

How do you track sustainability reportingof your listed companies?

The London Stock Exchange harnesses the data that comprises its Climate Governance Score to assess how well companies on its markets are integrating climate change
considerations into their business strategies. We will assess this on an annual basis to track how disclosure is improving market wide.

50

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

UN SSE: communication to stakeholders continued
Transparency and issuer reporting continued
What incentives (i.e. public recognition/
7
awards) and sanctions do you have in place
to encourage disclosure and discourage
non-compliance/lower levels oftransparency?

8

What connections have you made between
national sustainable development
frameworks and goals, and your exchange’s
existing standard and norms?

Issuer capacity building
If your exchange offers sustainability
9
guidance for companies, please provide a
description of the process for its creation.

10

Do you and/or your regulator provide
guidance on externally assuring ESG
disclosures? In your market, how common isexternal assurance of ESG disclosures?

Issuers have access to Refinitiv’s ESG data through the issuer services platform which comprises more than 400 metrics from 10,000 companies as well as ESG scores. Issuers
are encouraged to use this feature to assess their performance against peers and identify areas for improvement.
London Stock Exchange provides access to an online ESG disclosure tool which allows companies to identify industry-specific disclosures that are considered best practice.
The online climate governance tool helps companies understand their climate disclosure and carbon management practices in relation to recognised industry standards such
as TCFD and TPI.
FTSE Russell assesses ESG and green revenues disclosure and performance of companies globally and provides this analysis to investors around the world. This data is also
used to construct the FTSE ESG Index Series, which highlight companies that meet good practice standards, and the Environmental Markets and Green Revenues Index Series.
Refinitiv also offers one of the most comprehensive ESG databases in the industry.
LSEG’s ESG reporting guidance builds on national disclosure standards and norms across the UK.
In 2021, the FCA mandated TCFD disclosures by some listed companies. London Stock Exchange’s TCFD climate reporting guidance aids companies understanding of thedisclosure requirements and regulatory landscape with the intention of improving disclosure standards on our markets.
We have representatives that are members of both the Voluntary Carbon Markets Integrity Council and the UK Voluntary Carbon Markets Forum which are focused on scaling up
the Voluntary Carbon Markets. We responded by announcing the intention to build a Voluntary Carbon Market designation on our markets designed to channel capital into newcarbon projects worldwide.
We also have representatives that are members of the Green Taxonomy Advisory Group (GTAG) which are contributing to the development of a UK green taxonomy, a common
framework for sustainable investment.
At COP26, the UK government announced that it expects large companies to publish credible transition plans. We are committed to providing access to finance when thesetransition plans require capital expenditure.
Through our membership and engagement with GFANZ and the Net Zero Financial Service Providers Alliance we are contributing to this transformative step in embedding net
zero across the whole financial system. We have committed to aligning all relevant services and products to net zero by 2050. Members will set science-based targets for theiremissions including interim targets for 2030 and report on their progress against those targets annually, including disclosures using existing frameworks such as TCFD.
During the development phase for LSEG’s climate reporting guidance, which was published in 2021, we consulted market participants who reviewed the document to ensure it
met the needs of a broad range of issuers.
As part of our Climate Transition Offering, we provide companies on our markets with a Climate Governance score based on data that is provided by FTSE Russell, which isaligned to methodology created by TPI. As we were developing this new data tool, we engaged with a number of issuers and our advisory groups around the construct anddesign of this initiative.
The established Sustainable Bond Market Advisory Group participated in the development of the disclosure criteria for the Transition Bond Segment.
Assurance of ESG disclosure is mandated in 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).

51

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

UN SSE: communication to stakeholders continued
Collaboration and engagement
11
Who does your exchange view as its key
stakeholders and how does it engage andcollaborate (or plan to do so) with these andpotentially other stakeholders?

Sustainable products
How has your exchange supported the12development of financial products that
address sustainability-related issues (e.g.
ESG Indices, carbon markets, social/environmental bonds, sustainable
development funds, etc)?

As a stock exchange which sits at the centre of financial markets, we have several stakeholders, and we believe it is important to communicate and collaborate with them. These
include private companies, public companies (across asset classes), advisers, brokers, and investors, as well as regulators, policy makers, and national government organisations.
We do this in a range of ways including:• We engage with other exchanges around the world through the UN SSE and World Federation of Exchanges to share best practice. Through this involvement, we co-chaired(alongside the Johannesburg Stock Exchange) the development of the UN SSE’s Model Guidance on Climate Disclosure• We respond to regulator consultations and have responded positively to consultations regarding issuer non-financial disclosure in the past
• We host events for listed companies and prospective issuers related to ESG considerations and disclosure• We provide Refinitiv’s ESG data and scores to our issuers to enable them to assess their performance against peers and identify areas for improvement. They can also use thisas an investor engagement tool to demonstrate their ESG credentials• Through FTSE Russell we are involved in a large number of investor ESG collaborative bodies and initiatives including the UN backed PRI, UK SIF, US SIF, Forum per la Finanza
Sostenibile (ITA SIF), Euro SIF, Japan SIF, RIA Canada, RIAA and IIGCC• We are working in a range of ways to support the growth and development of sustainable finance: LSEG is a partner of the Climate Bonds Initiative and joined ICMA’s Green
Bond Principles and Social Bond Principles Advisory Council
From the pioneers who are leading the green economy to the more carbon-intensive industry sectors making the transition to lower-carbon operating models, London Stock
Exchange is committed to supporting issuers with access to sustainable finance products and services across a range of asset classes.
In 2021, we announced the intention to create a Voluntary Carbon Market designation on our markets designed to channel capital into new projects worldwide. Using existing
market infrastructure, supplemented by specific requirements relevant to carbon credit projects, we will enable funds to be listed that will undertake these projects. The work tobuild the market infrastructure is taking place in 2022 in collaboration with market participants.
Our Green Economy Mark recognises London-listed companies and funds with 50% or more of their revenues derived from products and services that contribute to the global
green economy. It helps to increase the visibility of issuers on London’s markets that are contributing to achieving positive environmental objectives. More than 115 companies
and funds with a combined market capitalisation of over £165 billion hold the Green Economy Mark.
London Stock Exchange’s Sustainable Bond Market allows issuers of qualifying sustainable debt finance instruments to display bonds on the platform, providing access to thelargest, most sophisticated and long-term oriented investor base for sustainable debt finance.
Through our Issuer Services platform, London-listed companies can access the ESG data and scores of Refinitiv, one of the industry’s most comprehensive ESG databases
covering 10,000 companies across 76 countries including more than 400 different ESG metrics.
Our Climate Transition Offering helps companies to prepare for the transition to low-carbon through access to tools, resources and education. Our Climate Governance Score
and Climate Governance Tool helps companies to assess their carbon management practices and incorporation of climate change considerations into business strategies.
Our climate reporting guidance and complementary training videos help companies discover best practice climate reporting and TCFD implementation. Our Transition Bond
Segment offers a solution for companies requiring access to capital to mobilise transition plans.
FTSE Russell, an LSEG business, provides more than 180 ESG and sustainable indices, including its established FTSE4GOOD index series which measures the performance ofcompanies demonstrating strong ESG credentials.
There are more than 250 ESG ETF listings in London, following 90 new listings in 2021. Assets invested into London-listed ESG ETFs stand at more than $227 billion.

52

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

UN SSE: communication to stakeholders continued
Exchange needs
13
Are there any specific resources that you
would like from the SSE or other relevantgroups to help you in your sustainability
work?
14

Are there any specific requests you haveof investors, issuers and regulators in termsof their role in advancing sustainability inthe market?

The agenda of the SSE has already moved beyond disclosure, also addressing sustainable finance, climate and the role of regulators. The next step should be focused on how
we mobilise as a group of exchanges under the Net Zero Financial Services Providers Alliance.

LSEG looks forward to continuing to collaborate with investors, issuers, and regulators on the sustainable finance and investment agenda.
It is key to the continued success of ESG disclosure that issuers understand how investors are shifting capital allocations in response to ESG considerations.
Therefore, we’ll keep placing emphasis on the importance of investor-issuer dialogue on ESG issues, as a complement to high-quality ESG data flows. We recognise theimportance of data and disclosure in directing capital towards sustainable economic activity and welcome the establishment of the International Sustainability Standards Board(ISSB) which should deliver a comprehensive global baseline of sustainability-related disclosure.

53

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

UN Global Compact: The Ten Principles
Human rights
Principle 1

Businesses should support and respect the protection of internationally proclaimed human rights; and

Page
43

Principle 2Make sure that they are not complicit in human rights abuses.

43

LabourPrinciple 3

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Page
62

Principle 4

The elimination of all forms of forced and compulsory labour;43

Principle 5

The effective abolition of child labour; and43

Principle 6

The elimination of discrimination in respect of employment and occupation.

33

Environment
Principle 7

Businesses should support a precautionary approach to environmental challenges;

Page
19

Principle 8

Undertake initiatives to promote greater environmental responsibility; and20

Principle 9

Encourage the development and diffusion of environmentally friendly technologies.

24

Anti-corruption
Principle 10

Businesses should work against corruption in all its forms, including extortion and bribery.

Page
42

54

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

World Economic Forum Stakeholder Capitalism Metrics
As an advocate for greater transparency, LSEG is committed to providing meaningful sustainability information to our stakeholders. We continue to enhance our sustainability reporting,
beginning our first ever disclosure aligned to the World Economic Forum report: Measuring Stakeholder Capitalism – Towards Common Metrics and Consistent Reporting of Sustainable
Value Creation.
The table below summarises LSEG’s current 21 core metrics alignment.
MetricPrinciples ofGovernance Metrics

Disclosure/Theme
Governing purpose

Quality of governing body

Stakeholder engagement

Ethical behaviour

Ethical behaviour

Risk and opportunity oversight

Indicator
Setting purpose
The company’s stated purpose, as the expression of the means by which a business proposes solutions to economic, environmental andsocial issues. Corporate purpose should create value for all stakeholders, including shareholders
Governance body composition
Composition of the highest governance body and its committees by: competencies relating to economic, environmental and social topics;
executive or non-executive; independence; tenure on the governance body; number of each individual’s other significant positions andcommitments, and the nature of the commitments; gender; membership of underrepresented social groups; stakeholder representation.
Material issues impacting stakeholders
A list of the topics that are material to key stakeholders and the company, how the topics were identified and how the stakeholders were
engaged.
Anti-corruption
1. Total percentage of governance body members, employees and business partners who have received training on the organisation’s
anti-corruption policies and procedures, broken down by region. a) Total number and nature of incidents of corruption confirmed
during the current year, but related to previous years; and b) Total number and nature of incidents of corruption confirmed during thecurrent year, related to this year.
2. Discussion of initiatives and stakeholder engagement to improve the broader operating environment and culture, in order to combat
corruption.

Protected ethics advice and reporting mechanisms
A description of internal and external mechanisms for: 1. Seeking advice about ethical and lawful behaviour and organisational integrity;and 2. Reporting concerns about unethical or unlawful behaviour and lack of organisational integrity.
Integrating risk and opportunity into business process
Company risk factor and opportunity disclosures that clearly identify the principal material risks and opportunities facing the company
specifically (as opposed to generic sector risks), the company appetite in respect of these risks, how these risks and opportunities have
moved over time and the response to those changes. These opportunities and risks should integrate material economic, environmental
and social issues, including climate change and data stewardship.

Response and Reference
LSEG’s purpose statement isavailable on our website and in our
Sustainability Report
Sustainability Report 2021: see
Governance and management on
Page 40
Sustainability Report 2021: see
Sustainability materiality on page 8
We have in place an Anti-bribery andCorruption Policy
This is also covered in our Annual
Report and Accounts 2021, page 26
Please also refer to
UK Bribery Act | LSEG.
We currently do not break down our
performance data in the format
required for this metric
Please see Whistleblowing Policy

LSEG Sustainability Report 2021: see
Risk management on page 20 andAssessing climate change risks andopportunities on page 21

55

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

World Economic Forum Stakeholder Capitalism Metrics continued
MetricPlanet Metrics

Disclosure/Theme
Climate change

Climate change

Nature loss

Freshwater availability

People Metrics

Dignity and equality

Health and wellbeing

Dignity and equality
Dignity and equality

Indicator
Greenhouse gas (GHG) emissions
For all relevant greenhouse gases (e.g. carbon dioxide, methane, nitrous oxide, F-gases etc.), report in metric tonnes of carbon dioxide
equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 emissions. Estimate and report material upstream and downstream (GHG Protocol
Scope 3) emissions where appropriate.
TCFD implementation
Fully implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). If necessary, disclose a timelineof at most three years for full implementation. Disclose whether you have set, or have committed to set, GHG emissions targets that are inline with the goals of the Paris Agreement – to limit global warming to well below 2°C above pre-industrial levels and pursue efforts to limit
warming to 1.5°C – and to achieve net-zero emissions before 2050.
Land use and ecological sensitivity
Report the number and area (in hectares) of sites owned, leased or managed in or adjacent to protected areas and/or key biodiversity
areas (KBA).
Water consumption and withdrawal in water stressed areas
Report for operations where material: megalitres of water withdrawn, megalitres of water consumed and the percentage of each inregions with high or extremely high baseline water stress, according to WRI Aqueduct water risk atlas tool. Estimate and report the same
information for the full value chain (upstream and downstream) where appropriate.
Risk for incidents of child, forced or compulsory labour
An explanation of the operations and suppliers considered to have significant risk for incidents of child labour, forced or compulsory
labour. Such risks could emerge in relation to: a) type of operation (such as manufacturing plant) and type of supplier; and b) countries orgeographic areas with operations and suppliers considered at risk.
Health and safety (%)
The number and rate of fatalities as a result of work-related injury; high-consequence work-related injuries (excluding fatalities); recordable
work-related injuries; main types of work-related injury; and the number of hours worked. An explanation of how the organisation
facilitates workers’ access to non-occupational medical and healthcare services, and the scope of access provided for employees andworkers.
Diversity and inclusion (%)
Percentage of employees per employee category, by age group, gender and other indicators of diversity (e.g. ethnicity).

Response and Reference
LSEG Sustainability Report 2021:
Page 18
LSEG 2021 submission to the CDP,
available here
LSEG Sustainability Report 2021:
Page 21
LSEG 2021 TCFD Report

Pay equality (%)
Ratio of the basic salary and remuneration for each employee category by significant locations of operation for priority areas of equality:
women to men, minor to major ethnic groups, and other relevant equality areas.

We currently do not break down our
performance data in the format
required for this metric
Please refer to our Gender Pay Gap
ReportNot applicable
We currently do not report on thisindicator
Not Applicable
We currently do not report on thisindicator
Please refer to:
LSEG Sustainability Report, page 43
LSEG Modern Slavery Statement
LSEG Supplier Code of Conduct
LSEG Sustainability Report 2021: see
Health, safety, and wellbeing at workon page 42

LSEG Sustainability Report 2021:
Page 62

56

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

World Economic Forum Stakeholder Capitalism Metrics continued
MetricPeople Metrics
continued

Disclosure/Theme
Dignity and equality

Skills for the future

Prosperity Metrics

Employment and wealthgeneration

Community and social vitality

Employment and wealthgeneration

Innovation of better products
and services

Employment and wealthgeneration

Indicator
Wage level (%)
Ratios of standard entry-level wage by gender compared to local minimum wage. Ratio of the annual total compensation of the CEO
to the median of the annual total compensation of all its employees, except the CEO.
Training provided (#, $)Average hours of training per person that the organisation’s employees have undertaken during the reporting period, by gender andemployee category (total number of hours of training provided to employees divided by the number of employees). Average training anddevelopment expenditure per full time employee (total cost of training provided to employees divided by the number of employees).
Absolute number and rate of employment
1. Total number and rate of new employee hires during the reporting period, by age group, gender, other indicators of diversity and region.
2. Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity and region.

Total tax paid
The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable VAT and other sales taxes,
employer-paid payroll taxes, and other taxes that constitute costs to the company, by category of taxes.
Economic contribution
1. Direct economic value generated and distributed (EVG&D), on an accrual’s basis, covering the basic components for the organisation’s
global operations, ideally split out by: – Revenues – Operating costs – Employee wages and benefits – Payments to providers ofcapital – Payments to government – Community investment.
2. Financial assistance received from the government: total monetary value of financial assistance received by the organisation from any
government during the reporting period.
Total R&D expenses ($)
Total costs related to research and development.

Financial investment contribution
1. Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company’s investment strategy.
2. Share buybacks plus dividend payments, supported by narrative to describe the company’s strategy for returns of capital to shareholders.

Response and Reference
Please refer to our Gender Pay
Gap Report
We currently do not break down
our performance data in the format
required for this metric
LSEG Sustainability Report 2021:
see page 58
We currently do not break down
our performance data in the format
required for this metric
LSEG Annual Report and Accounts
see page 33
Not applicable
We currently do not break down
our performance data in the format
required for this metricMore information about LSEG’s
approach to research anddevelopment can be found in the
LSEG Strategic Report: see page 111
See Annual Report and Accounts,
financial statement, page 31

57

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

World Federation of Exchanges (WFE) principles
Having joined the World Federation of Exchanges (WFE) in 2018, LSEG has committed to take on a leadership role in promoting the sustainable finance agenda. Below we summarise our efforts
to promote the principles progressively in accordance with our circumstances and priorities.
Principles
Principle 1
Exchanges will work to educate participants in theexchange ecosystem about the importance ofsustainability issues

Principle 2
Exchanges will promote the enhanced availability ofinvestor-relevant, decision-useful ESG information

Principles in action• We provide training for issuers on climate reporting through our issuer services platform• We have published climate reporting guidance to help issuers understand and implement TCFD recommendations• We provide two online tools for companies to get insights into best practice ESG disclosure and climate reporting, harnessing data from FTSE Russell and expanding the useof the Transition Pathway Initiative’s Management Quality methodology to help companies measure their carbon management practices• In ESG reporting, we have produced guidance to help companies understand leading global frameworks, reporting formats, and recommended disclosures per industry.
We regularly update this to reflect changes in standards and regulation• London Stock Exchange holds regular events and webinars and publishes content pieces related to educating the market on sustainability issues and sector themes• We provide issuers with access to free ESG data through our issuer services platform covering more than 400 metrics so they can compare against their peers and discover
best practice disclosure in their industry• Utilising FTSE Russell’s green revenues data, we provide a way to identify green companies listed on our markets via our green economy accreditation (Green Economy Mark)This allows investors to identify an investible universe of green equities across a range of industries on AIM and the Main Market• Our reporting guidance helps issuers to produce investor-relevant, decision-useful ESG information• Our stakeholder engagement is outlined in this report on page 41

Principle 3
Exchanges will actively engage with stakeholders toadvance the sustainable finance agenda
Principle 4• Our Sustainable Bond Market (SBM) provides a platform to list green, social, sustainability, and sustainability-linked bonds
Exchanges will provide markets and products that support • In an expansion of the SBM, we established a Transition Bond Segment which helps more carbon-intensive companies raise finance to fund credible transition plans
the scaling-up of sustainable finance and reorientation of • In October, we launched our Climate Transition Offering which helps companies to prepare for the transition to low-carbon through access to tools, resources and education.
financial flow
Our Climate Governance Score and Climate Governance Tool helps companies to assess their carbon management practices and incorporation of climate change
considerations into business strategies. Our climate reporting guidance and complementary training videos help companies discover best practice climate reporting and TCFD
implementation• In November, we announced the development of a Voluntary Carbon Markets designation for listed funds. This will enable investors to invest into eligible carbon offsetting
projects as well as offering a solution to scaling up the Voluntary Carbon Markets which are an important step in meeting our global net zero targets• Our Green Economy Mark accreditation helps investors identify an investible universe of green equities across a range of industries
Principle 5• We continue to assess the materiality of ESG and related risks to LSEG and to increasingly integrate these considerations into our Enterprise-wide Risk Management framework
Exchanges will establish effective internal governance• A description of our sustainability governance can be found in this report on page 40
and operational processes and policies to support theirsustainability efforts

58

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Sustainability Accounting Standards Board (SASB)
Topic
PromotingTransparent &Efficient CapitalMarkets

Code
FN-EX-410a.1

FN-EX-410a.2

FN-EX-410a.3
FN-EX-410a.4

Indicator(1) Number and (2) average duration of (a) halts
related to public release of information and (b)pauses related to volatility
Percentage of trades generated from automatedtrading systems

Description of alert policy regarding timing andnature of public release of information
Description of policy to encourage or require
listed companies to publicly disclose
environmental, social, and governance (ESG)
information

Details
No volatility reported following release of information.

As a provider of execution services and associated platform connectivity infrastructure, the entire process is considered electronic by definition,utilising various forms of automated strategies and processes. If we define this as the monthly averages by value traded by proprietary trading
firms directly accessing the London Stock Exchange order book in their own capacity as member firms, then over the course of 2021 this varied
between 29% and 32%.
We do not provide any advice to our clients about the content or timing of their disclosures. All responsibility for content and timing rests withthe client.
• Publication of TCFD-aligned climate reporting guidance to educate the market and encourage best practice climate-related disclosure• Publication of ESG reporting guidance to educate the market and encourage best practice disclosure• Provision of an online ESG disclosure tool for companies to identify industry-specific disclosures that are material to investors• Application of FTSE Russell data and Transition Pathway Initiative methodology to provide listed companies with an assessment of their carbon
management practices to help identify areas for improvement in their climate disclosure and integration of climate risks and opportunities intobusiness strategy (Climate Governance Score)• Provision of an online tool for issuers to receive personalised recommendations on how to improve climate-related disclosure (Climate
Governance Tool)• Partnership with the UN Sustainable Stock Exchanges initiative to provide training on climate disclosure and TCFD implementation to educate
listed companies• Provision of one of the industry’s most comprehensive ESG data feeds (Refinitiv ESG data) directly to London’s issuers via the Issuer Services
platform• Regular webinars from LSEG experts and industry specialists on the importance of ESG disclosure, covering regions and sectors• Established green economy equities classification (Green Economy Mark) to incentivise disclosure of revenues contributing to the growth of
the green economy• Annual report on green revenues trends and performance• Direct engagement with issuers on market development and regulatory trends in ESG and climate disclosure

59

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Sustainability Accounting Standards Board (SASB) continued
Topic
Managing
Conflicts ofInterest

Code
FN-EX-510a.1

FN-EX-510a.2

Managing
Business
Continuity &Technology
Risks

FN-EX-550a.1
FN-EX-550a.2

FN-EX-550a.3

Average daily
FN-EX-000.A
number of trades
executed, by productor asset class

Indicator
Total amount of monetary losses as a result oflegal proceedings associated with fraud, insider
trading, anti-trust, anti-competitive behaviour,market manipulation, malpractice, or other related
financial industry laws or regulations
Discussion of processes for identifying andassessing conflicts of interest

Details
LSEG did not sustain any monetary losses in the reporting period as a result of legal proceedings associated with fraud, insider trading,anti-trust, anti-competitive behaviour, market manipulation, malpractice, or other relevant financial industry laws or regulations related to fraud,insider trading, anti-trust, anti-competitive behaviour, market manipulation, or malpractice.

LSEG plc maintains a Group Conflicts of Interest Policy (‘the Policy’) which is subject to annual review.
The Policy:• provides guidance to assist in the identification of both personal and business conflicts;• sets out the requirement to clearly identify all conflicts and, if possible, take appropriate steps to avoid them;• where conflicts cannot be avoided, mandates that they be disclosed or recorded and effectively managed to mitigate any associated risk thata Group entity or employee might be, or perceived to be, unduly influenced as a result of their existence.

Mandatory Conflicts training is provided to all employees annually to ensure the provisions set out in the Policy are communicated, reinforced
and understood. To confirm their comprehension of the training, all employees must pass a test before being considered to have successfullycompleted the course. Any non-completion is subject to escalation to the Executive Committee.
(1) Number of significant market disruptions and (2) There was no downtime of the Trading platforms in 2021.
duration of downtime(1) Number of data breaches, (2) percentage
In 2021, LSEG did not record any loss of PII or data where customers were directly impacted.
involving personally identifiable information (PII),(3) number of customers affected
Description of efforts to prevent technology errors, LSEG aims to proactively detect and/or prevent technology errors and security breaches to minimise the risk of disruption to the business andsecurity breaches, and market disruptions
safeguard data. LSEG has established layers of defences to mitigate against security breaches; ranging from protecting the externally facing
perimeter to defending the internal network. Our Global Security Operations Centre monitors and rapidly responds to security alerts.
Average daily number of trades executed, by
Average daily number of trades executed:
product or asset class• UK order book: 922,239• CurveGlobal 35,675• Turquoise Integrated 581,751• Turquoise Plato™ 127,136

60

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

Greenhouse gas emissions reduction targets disclosure
In October 2021, FTSE Russell
published guidance to support theconsistent disclosure of climate targets.
Its aim is to increase comprehensive
and standardised disclosures to furnish
investors with robust carbon targets
data, which can provide a critical input
into analytical tools and investment
products helping investors address
climate risk. Using this standardised
template, LSEG has disclosed
information on our emissions reduction
targets, progress towards targets andour methodology.

Target ID
Overall number of active GHG emissions targets:
Target number:
Target type:1
1
Absolute (near-term) target

Date the target was set:

09/12/2021

Target Information
Scope(s) covered

Percentage of in-scope emissions covered by the target:
Base year:
Target year:

Targeted reduction from base year (%)
Targeted reduction from current year (%)

Date that the target
was last revised:

Scope 1 & 2 (market-based) + 3 (fuel andenergy-related activities, business travel,
employee commuting)
100%
2019
Base year
91,518 tCO2eemissions:
2030
Target year
45,759 tCO2e
projected
emissions:50%
10%
Current
14,946 tCO2e(2021)
emissions:Target Methodology
Verified by an independent third party.
Yes
Source that describes how the percentage of in-scope emissions covered by Sustainability
the target has been calculated.
Report 2021
(footnote 5)
Source that describes transition plan outlining how this target will be met.
ClimateTransition
Plan
For Scope 3 targets, source that describes the methodology used to
Sustainability
calculate the Scope 3 emissions covered by the target.
Report 2021
(footnote 5)
Indicate the % of the target to be achieved through offsets and provide a0%source that specifies their type and the offset provider.
For intensity targets, source that describes the methodology used ton/acalculate the carbon intensity.

Near-term science-based target, approved by
SBTi
09/12/2021

Verified actual emissions for 2021 exceeds 10%
reduction target
Verified by SBTi

In accordance with SBTi criteria

61

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

GRI Index
The table below summarises our governance disclosures mapped to GRI Standards indicators:
Disclosure

Indicator
Name of the organisation

ProfileLondon Stock Exchange Group plc.

Reference
Annual Report 2021, page 1

Activities, brands, products, andservices

We describe our business model, the components of our Group and how they link together, and how we add value.
We also show an overview by business for our services and their associated customers.

Annual Report 2021, pages 15–17

102–3

Location of headquarters

10 Paternoster Square, London, EC4M 7LS.

Annual Report 2021, page 1

102–4

Location of operations

LSEG is now truly global with a significant presence in North America, Europe, Asia and emerging markets, operating Annual Report 2021, page 2
in 70 countries.

102–5

Ownership and legal form

LSEG is a public limited company registered in England and Wales (No. 5369106).

Annual Report 2021, page 1

102–6

Markets served

The markets we serve, revenue distribution by business and geographic area, as well as customer profiles areincluded in our Annual Report.

Annual Report 2021, pages 15–18

102–7

Scale of the organisation

Financial information (including revenues and assets and liabilities) is provided in the Annual Report. The number of
employees is provided in the Sustainability Report.

Annual Report 2021, page 116
Sustainability Report 2021, page 31

102–8

Information on employees and otherworkers

We provide an overview of employee statistics in our Sustainability Report including breakdowns of information byregion, contract type, gender, organisational level and age group.

Sustainability Report 2021, page 58

102–9

Supply chain

An overview of our supply chain and of the way in which we collaborate with our suppliers is contained in our 2021
Modern Slavery Act Statement. In addition, our Supplier Code of Conduct is published on our website.

2021 Modern Slavery Act Statement
and Supplier Code of Conduct

102–10

Annual Report 2021, pages 31–49 and211

102–11Significant changes to the organisation We provide a financial review and a list of substantial shareholders.
and its supply chain
Precautionary Principle or approach
Given the nature of our product portfolio, we deem this aspect not material.

102–12External initiatives

We are signatories of the following initiatives: letter of support for the recommendation from the Financial Stability
Board’s Task Force on Climate-related Financial Disclosures (TCFD); Valuable 500 initiative, BITC race at work charter,
WFE, GRI, UN SSE, WEF, UNGC and SASB. FTSE Russell partnered with the UN to provide data and analysis thatenables the quality of ESG disclosure across exchanges and collaborates with the Transition Pathway Initiative (TPI).
A number of other initiatives are listed in our Sustainability Report.

Sustainability Report 2021, pages
21–22, 33 and 45–46

Membership of associations

We are a member of: the Green Finance Task Force; the Green Finance Institute; the FC4S Network; a number ofinvestor ESG collaborative bodies and initiatives including the UN backed PRI, UK SIF, US SIF, Euro SIF, ICGN, JapanSIF and RIAA.

Sustainability Report 2021, pages
13–14 and 47

102–1
General –Organisational Profile 102–2

62

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

GRI Index continued
Disclosure
102–14

Indicator
Statement from senior decision-makerProfileA message from our CEO, David Schwimmer, is included in the Sustainability Report and Annual Report.

102–15Key impacts, risks, and opportunities

An overview of key impacts and opportunities is described in the Sustainability Report, where our Impact
Framework is described. In terms of ESG risks, we are working to further integrate these considerations into.

General – Ethics andIntegrity

102–16

Values, principles, standards, andnorms of behaviour

General –Governance102–18Governance structure

102–19Delegating authority

The values and the principles to which we adhere in carrying out our activities are clearly stated in the governancesection of our Sustainability Report. The Code of Conduct then further explains the ethical framework that we
expect our employees to operate in.
An overview of our sustainability governance is presented in our Sustainability Report; further explanation isprovided in our Group Sustainability Policy.
Sustainability governance is provided in the Sustainability Report.

102–20Executive-level responsibility foreconomic, environmental and social
topicsConsulting stakeholders on economic,
environmental and social topics
Composition of the highest
governance body and its committees

This information is presented in our published Group Sustainability Policy.

Group Sustainability Policy

We discuss some of our sustainability-related stakeholder engagement in our Sustainability Report.

Sustainability Report 2021, page 41

The Board structure and changes are reported in the Annual Report.

Annual Report 2021, pages 67–71

102–23Chair of the highest governance body

The Chairman of the Group is independent on appointment.

Annual Report 2021, page 69

102–24

Nominating and selecting the highest
governance body
Conflicts of interest

We include the Report of the Nomination Committee in the Annual Report.

Annual Report 2021, pages 81–82

We have established procedures whereby actual and potential conflicts of interest are regularly reviewed.

Annual Report 2021, page 76

102–32Highest governance body’s role insustainability reporting

Sustainability Report, page 40

102–35

Remuneration policies

102–36

Process for determining remuneration

The Board reviews and approves the Sustainability Report.
An overview of our sustainability governance is presented in our Sustainability Report; further explanation isprovided in our Group Sustainability Policy.
A full summary of compensation and remuneration within the Group can be found in the Directors’ Report on
Remuneration in our Annual Report.

102–37

Stakeholders’ involvement inremuneration
Annual total compensation ratio

General – Strategy

102–21
102–22

102–25

102–38
102–39Percentage increase in annual totalcompensation ratio

Reference
Annual Report 2021, pages 8–9
Sustainability Report 2021, pages 3–4
Annual Report 2021, pages 29 and 30
Sustainability Report 2021, pages
21–22
Sustainability Report 2021, page 42

Sustainability Report 2021, page 40
Sustainability Report 2021, page 40

Annual Report 2021, pages 80–91

63

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

GRI Index continued
Disclosure

General –Stakeholder
Engagement

General –Reporting Practice

102–40Indicator
List of stakeholder groups

ProfileThe list of our key stakeholders is provided in our published Code of Conduct. Details on our relationship withstakeholders are described in our Annual Report, including our Section 172(1) statement.
We report on the number of employees covered by collective bargaining agreements.

Reference
Annual Report 2021, pages 61–66
LSEG Code of Conduct
Sustainability Report 2021, page 58

102–41

Collective bargaining agreements

102–42

Identifying and selecting stakeholders

Stakeholder engagement is mainly project and product based. Details on our relationship with stakeholders aredescribed in our Annual Report, including our Section 172(1) statement.
Stakeholder engagement is mainly project and product based, however, the way in which we engage with different
stakeholder groups depends on their specific characteristics. Details on our relationship with stakeholders aredescribed in our Annual Report, including our Section 172(1) statement.
Details on our relationship with stakeholders are described in our Annual Report, including our Section 172(1)statement.
A list of the Group’s subsidiaries as at 31 December 2021 is included in the ‘Notes to the financial statements’.
On 29 January 2021, the all-share acquisition of Refinitiv was completed. A list of the Combined Group’s
subsidiaries is provided in the 2021 Annual Report.

Annual Report 2021, pages 61–66

102–43

Approach to stakeholder engagement

102–44

Key topics and concerns raised

102–45

Entities included in the consolidated
financial statements

102–46

Defining report content and topic

Prior to reporting, all initiatives and activities from across the year are assessed for their materiality within our
strategic framework. Items are cross-referenced using both internal and external evaluators; internally, initiatives areevaluated on their relevance to six impact areas and externally against the UN Sustainable Development Goals(SDGs) and Global Reporting Initiative (GRI) materiality definitions. If the item is deemed to be material against thisframework, it is reported.

Sustainability Report 2021, page 8–10

102–47

List of material topics

Sustainability Report 2021, page 8–10

102–48

Restatements of information

102–49Changes in reporting

On the basis of our materiality assessment six impact areas are considered as material to LSEG, they are listed anddescribed in our Sustainability Report.
Restatements of our 2018 and 2019 GHG emissions took place during 2020. Details of this can be found in our
Sustainability Report.
Details of our changes to GHG reporting can be found in our Sustainability Report.

102–50

Reporting period

We report on calendar year 2021 basis for both the Annual Report and Sustainability Report.

Sustainability Report 2021, page 1

102–51

Date of most recent report

31 December 2021.

102–52

Reporting cycle

We report annually.

102–53

Contact point for questions regarding
the report

Contact details are provided in our Sustainability Report.

Annual Report 2021, pages 61–66

Annual Report 2021, pages 61–66
Annual Report 2021, pages 116–128

Sustainability Report 2021, page 18
Sustainability Report 2021, page 18

Sustainability Report 2021, page 1

64

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

GRI Index continued
Disclosure
General – Reporting
Practice

102–54

102–55
102–56

Indicator
Claims of reporting in accordance with
the GRI Standards

GRI content index
External assuranceManagement Approach 103–1

Explanation of the material topic andits Boundary

103–2

The management approach andits components
Direct economic value generated
and distributed
Financial implications and otherrisks and opportunities due toclimate change
Defined benefit plan obligations andother retirement plans

Economic Performance

201–1
201–2

201–3

ProfileThis report references the following GRI Standards:

Reference

GRI 102 General Disclosure
GRI 103 Management Approach
GRI 201: Economic PerformanceGRI 205: Anti-Corruption
GRI 302: Energy
GRI 303: Water and EffluentsGRI 305: Emissions
GRI 306: Effluents and Waste
GRI 401: Employment
GRI 403: Occupational Health and Safety
GRI 404: Training and Education
GRI 405: Diversity and Equal Opportunity
GRI 406: Non discrimination
GRI 408: Child Labour
GRI 409: Forced or Compulsory Labour
GRI 415: Public Policy
The present GRI content index has been prepared in accordance with the disclosure requirements.
Our Annual Report 2021 was subject to both internal and external verification. Our Sustainability Report 2021 was
submitted to an internal verification process. Environmental data was externally verified.
Prior to reporting, all initiatives and activities from across the year are assessed for their materiality within our
strategic framework. Items are cross-referenced using both internal and external evaluators; internally, initiatives areevaluated on their relevance to six impact areas and externally against the UN Sustainable Development Goals(SDGs) and Global Reporting Initiative (GRI) materiality definitions. If the item is deemed to be material against thisframework, it is reported.
For each material topic, we provide an overview of our management approach, including commitments, actions andinitiatives, in our Sustainability Report.
Our financial review is set out in the Annual Report. Our community investments are summarised in the
Sustainability Report.
In June 2017 LSEG signed a statement of support for the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). Details on LSEG's alignment to TCFD recommendations are reported in our Annual
Report and our Annual Report.
The Group operates defined benefit and defined contribution pension schemes.

Sustainability Report 2021
Sustainability Report 2021, page 40
Annual Report 2021, page 31
Sustainability Report, page 41
Sustainability Report 2021, page 18
Sustainability Report 2021, page 18
Sustainability Report 2021, page 18
Sustainability Report 2021, page 18
Sustainability Report 2021, page 62
Sustainability Report 2021, page 62
Sustainability Report 2021, page 33
Sustainability Report 2021, page 33
Sustainability Report 2021, page 33
Sustainability Report 2021, page 43
Sustainability Report 2021, page 43
Sustainability Report 2021, page 41
Sustainability Report 2021, page 48
Sustainability Report 2021, page 8

Sustainability Report 2021, page 8
Annual Report 2021 pages 31–49
Sustainability Report 2021, page 38
Annual Report 2021, pages 29–30
Sustainability Report 2021, pages
21–22
Annual Report 2021, pages 98–100

65

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

GRI Index continued
Disclosure

Anti-corruption

205–1
205–2

205–3

Anti-corruption

Environmental
Category – Energy

205–1

Indicator
Operations assessed for risks related
to corruption
Communication and training about anticorruption policies and procedures
Confirmed incidents of corruption andactions taken
Operations assessed for risks related
to corruption

ProfileThe Group continues to maintain systems and controls to mitigate compliance risk.

Reference
Annual Report 2021, page 58

In compliance with the UK Bribery Act, we make clear the specific responsibilities of all of our employees andbusiness partners and we require all our employees, partners, agents, suppliers and customers to comply with theregulation. Accordingly, there have been no breaches of this policy material to LSEG in 2021.
No employees were disciplined or dismissed due to non-compliance with anti-corruption policies in 2021.

Annual Report 2021, page 26
Sustainability Report 2021,
pages 42–43
Sustainability Report 2021,
pages 42–43
Annual Report 2021, pages 55 and 58

The Group continues to maintain systems and controls to mitigate compliance risk.

205–2

Communication and training about anti- In compliance with the UK Bribery Act, we make clear the specific responsibilities of all of our employees andcorruption policies and procedures
business partners and we require all our employees, partners, agents, suppliers and customers to comply with theregulation. Accordingly, there have been no breaches of this policy material to LSEG in 2021.

Annual Report 2021, page 28
Sustainability Report 2021,
pages 42–43

205–3

Confirmed incidents of corruption andactions taken
Energy consumption within theorganisation

We report all of the emission sources required under the Companies Act 2006 (Strategic Report and Directors’
Reports) Regulations 2013.

302–3

Energy intensity

We include this in the Environment section of the Sustainability Report.

302–4

Reduction of energy consumption

We include this in the Environment section of the Sustainability Report.

Water consumption

We include this in the Environment section of our Sustainability Report.

Sustainability Report 2021,
pages 42–43
Sustainability Report 2021, pages 18
and 46–48
Annual Report, page 27
Sustainability Report 2021, pages 18
and 46–48
Sustainability Report 2021, pages 18
and 46–48
Sustainability Report 2021, pages 18
and 46–48

Direct (Scope 1) GHG emissions

We include this in the Environment section of the Sustainability Report.

302–1

303–5
Environmental
Category – Water
and Effluents
305–1
Environmental
Category – Emissions 305–2

305–4

Energy indirect (Scope 2) GHG
emissions
Other indirect (Scope 3) GHG
emissions
GHG emissions intensity

305–6

Reduction of GHG emissions

305–3

No employees were disciplined or dismissed due to non-compliance with anti-corruption policies in 2021.

Sustainability Report 2021, pages 18
and 46–48

66

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

GRI Index continued
Disclosure

Environmental
Category – Effluentsand Waste
Labour Practices
and Decent Work
Category –Employment
Labour Practices
and Decent Work
Category:
Occupational Healthand Safety

Indicator
Waste by type and disposal method

ProfileWe include this in the Environment section of the Sustainability Report, under ‘Waste’.

Reference
Sustainability Report 2021, pages 18
and 46–48

401–1

New employee hires and employee
turnoverWe report three year time series of comparable data of employee-based indicators.

Sustainability Report 2021, pages 18
and 46–48

401–2

Benefits provided to full-time
employees that are not provided totemporary or part-time employees

We offer a number of rewards, and career opportunities and development for employees.

Sustainability Report 2021,
pages 30–34

403–1

Occupational health and safety
management system
Occupational health services

In compliance with local legal requirements, a health and safety management system is implemented at the Grouplevel. An update on H&S policy and systems improvements is presented in the Sustainability Report.
LSEG is committed to high standards of health and safety management. Updates on how the Group ensures thequality of H&S services are presented in our Sustainability Report.
LSEG workforce is represented in formal joint management-worker health and safety committees.

Sustainability Report 2021, page 42

306–2

403–3
403–4

Worker participation, consultation, andcommunication on occupational healthand safety
Promotion of worker health
We have implemented a broad wellbeing programme for our employees, spanning across five different areas:
financial, mental, physical, social purpose, and work-life balance.
Work-related injuries
We include this information in the Social Performance section of our Sustainability Report.

Sustainability Report 2021, page 40

404–3

Percentage of employees receiving
regular performance and careerdevelopment reviews

We report three year time series of comparable data on training and education.

Sustainability Report 2021,
pages 30–34

405–1

Diversity of governance bodies andemployees

We include initiatives on diversity and inclusion, and report three-year time series of comparable data on diversity
and equal opportunity.

Sustainability Report 2021,
pages 30–34

406–1

Incidents of discrimination andcorrective actions taken

We report three year time series of comparable data on non-discrimination.

408-1

Operations and suppliers in which theright to freedom of association andcollective bargaining may be at risk

In compliance with the Modern Slavery Act 2015, every year LSEG publishes a Modern Slavery Act Statement,
reaffirming its commitments of combating every form of modern slavery and human trafficking by improving its
supply chain management and procurement process. The Statement, while providing a description of our approach
to risk assessment, gives also an overview of due diligence process.

403–6
403–9

Labour Practices
and Decent Work
Category – Training
and Education
Labour Practices
and Decent Work
Category – Diversity
and Equal
Opportunities
Human Rights
Category –Non discrimination
Human Rights
Category –Child Labour

Sustainability Report 2021, page 42

Sustainability Report 2021,
pages 30–34
Sustainability Report 2021, page 45

Modern Slavery Act Statement

67

London Stock Exchange Group plc
Group Sustainability Report 2021

Introduction

Transition
to net zero

Enabling the growthof the green economy

Creating inclusive
economic opportunity

Sustainability
governance

Additional
disclosures

GRI Index continued
Disclosure
409–1
Human Rights
Category – Forced orCompulsory LabourSociety Category –Public Policy

415–1

Indicator
Operations and suppliers at significant
risk for incidents of forced orcompulsory Labour
Political contributions

ProfileIn compliance with the Modern Slavery Act 2015, every year LSEG publishes a Modern Slavery Act Statement,
reaffirming its commitments of combating every form of modern slavery and human trafficking by improving its
supply chain management and procurement process. The Statement, while providing a description of our approach
to risk assessment, gives also an overview of due diligence process.
We report three year time series of political contributions.

Reference
Modern Slavery Act Statement

Annual Report 2021, page 109© March 2022
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