London Stock Exchange Group PLC
Group Sustainability Data 2022

TCFD
Governance

TCFD recommendation LSEG approach2022 Enhancements

Reference

The board’s oversightof climate-related risksand opportunities.

• The LSEG board has
oversight of the Group
Sustainability Policy.

LSEG 2022 Sustainability
Report (page 37)

Management’s rolein assessing andmanaging climaterelated risks andopportunities.

• The LSEG Board has ultimate oversight ofthe sustainability agenda and strategy.
• Updated bi-annually on sustainability-related
issues including climate risks andopportunities.

• The Sustainability Committee is chaired bythe Chief Corporate Affairs and Marketing
Officer. The Chief Risk Officer and Chief
Operating Officer are members of theSustainability Committee.
• The Climate Transition Steering Committee isresponsible for providing strategic direction
on the Group’s climate strategy and monitoring
progress against targets, and it reports to the
Sustainability Committee. The Committee
meets monthly, and is chaired by the Group
Head of Sustainability and Group Head ofOperations.

Strategy

Identification ofclimate-related risks
and opportunities.

• Led by Group Sustainability, engagement
occurs across our business units to identify
and manage future climate-related risks andopportunities that have a material impact on
our physical locations and our business model.

• The Board Risk Committee
has oversight of the Group
Risk Framework including
sustainability risks.
• Review initiated into Net
Zero operational delivery
governance structure.
• Operational lead appointed
for delivery of climatetransition plan.

• Extensive physical climate
risk reviews of property
portfolio are ongoing,
including initiation of detailed
environmental assessment.
• Plan to conduct reviews at acountry and regional level, toidentify areas of higher short
to medium term risk forclimate related incidents.

Impact of climaterelated risks andopportunities on
the organisation’s
businesses, strategy,and financial planning.

• LSEG’s business purpose and commitment
to sustainable growth reflects our approachand consideration of climate-related risks andopportunities in our products and services
and business operations.
• The Climate Transition Steering Committee
works across the business to activate on
climate ambition and ensure future planning.

• 2022 saw continuing
evolution in approach toclimate risk, developing andenhancing our capability foraddressing both physicaland transition risks.
• Progress on physical climate
risk as described above.
• Covering aspects oftransitional climate risk,
our Capital Markets division
dedicated to sustainablefinance innovation continues
to grow and expanded its
remit to cover Post Trade.

Resilience of strategy
under varying
climate-related
scenarios.

01• Group Sustainability leads and co-ordinates
projects to understand climate-related risks
and opportunities against impact pathways toshow operations and business exposure amid
external changes in climate and subsequent
impacts on the business in terms of costs
and revenue.

LSEG 2022 Annual Reportand Accounts (page 54)• Developed our assessment
modelling capability to model
emissions and impact.
• For long-term global
exposure analysis, work
has begun to rank locations
based on risk levels
identified and conduct a
portfolio level analysis of
exposure to natural hazards
and climate change, utilising
specific climate scenarios
over discrete time horizons.

LSEG 2022 Sustainability
Report (page 9)
LSEG 2022 Annual Reportand Accounts (page 51)

London Stock Exchange Group PLC
Group Sustainability Data 2022TCFD continued

Riskmanagement

TCFD recommendation LSEG approach2022 Enhancements

Reference

Processes for
identifying andassessing climaterelated risks.

• Our Enterprise Risk Management Framework
includes and embeds sustainability risks
which are raised and owned by the business.

• Project to review the Group’s
risk taxonomy, building arisk driven RACI matrix andreviewing the sustainability
risk management framework
launched in 2022.

LSEG 2022 Sustainability
Report (page 9)

Processes for
managing climaterelated risks.

• Risks are managed day-to-day by businessowners with support from Group Risk as
second line of defence.

• Engagement of business units as BAU whilst
executing transition plan.

• Executive Committee and Sustainability
Committee have oversight and managementof sustainability-related risks and opportunities.

Metrics andtargets

02• As per above, this projectwill allow us to develop a
consistent view of climate
and sustainability-relatedrisks.

Integration ofclimate-related risks
into overall riskmanagement.

• Climate-related risks are embedded within theEnterprise Risk Management Framework.

• Group Risk continue to bewell represented acrossour governance structure.

Metrics to assessclimate-related risks
and opportunities.

• Accurate data collection in place to support
interim targets.

• Significant progress indeveloping carbon
accounting capability acrossthe Group, enabling accurate
capture and calculation ofemissions.

Disclosure of scope 1,
scope 2, and scope 3
greenhouse gas(GHG) emissions andthe related risks.

• Combined data inventory reflecting legacy
business emissions for 2019, 2020, 2021
and 2022 has been verified and published.

Targets used to
manage climaterelated risks andopportunities andperformance against
targets.

• New near-term science-based targets
approved with 2026 and 2030 target dates.
A long-term ambition to achieve net zero by2040 has business support.

• Strategic external partnerships to drive
accountable net zero metrics for the industry.

LSEG 2022 Annual
Report and Accounts(pages 56, 74 and 111
to 112)• Significant progress indeveloping divisional-level
carbon emission reporting
capability.
• Detailed analysis of
our supply chain anddevelopment of a robust,effective engagement
strategy.
• Detailed evaluation of 2040
net-zero ambition and impact
across our glidepaths inprogress.

www.lseg.com

LSEG 2022 Sustainability
Report (pages 17 & 41)
LSEG 2022 Annual
Report and Accounts(pages 15 and 58)