London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks
GHG Emissions Target Disclosure
In October 2021, FTSE Russell published guidance to support the consistent disclosure of climate targets. Its aim is to increase comprehensive andstandardised 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 and our methodology.
Target ID
Overall number of active GHG emissions targets:

1

Target number:

1

Target type:

Absolute (near-term)
targetDate the target was set:

09/12/2021

Near-term science-basedtarget, approved by SBTi
Date that the target
was last revised:

09/12/2021

Target Information
Scope(s) covered

Scope 1 & 2 (market-based) + 3 (fuel and energy-related activities,business travel, employee commuting)

Percentage of in-scope emissions
covered by the target:

100%
91,518 tCO2e

Base year:

2019

Base year emissions:Target year:

2030

Target year projected
emissions:45,759 tCO2e

Targeted reduction from base year (%)

50%

Targeted reduction from current year (%)

0%

Current emissions:35,107 tCO2e (2022)

Target Methodology
Verified by an independent third party.
Source that describes how the percentage
of in-scope emissions covered by the target
has been calculated.
Source that describes transition plan
outlining how this target will be met.
For Scope 3 targets, source that describes
the methodology used to calculate the
Scope 3 emissions covered by the target.
Indicate the % of the target to be achieved
through offsets and provide a source thatspecifies their type and the offset provider.
For intensity targets, source that describes
the methodology used to calculate thecarbon intensity.

01

Yes
Sustainability Report 2021 (footnote 5)

Verified actual emissionsfor 2022 exceeds
reduction target by 23%.
Verified by SBTi.

Climate Transition Plan
Sustainability Report 2021 (footnote 5)

0%

n/a

In accordance with SBTi
criteria.

London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
Sustainability Accounting Standards Board (SASB)
The table below summarises LSEG’s SASB alignment to the Security & Commodity Exchanges standard.
Unit ofMeasureTopic

Accounting Metric

Category

PromotingTransparent& Efficient
CapitalMarkets

1) Number and (2) average duration of(a) halts related to public release of
information and (b) pauses related
to volatility.

Quant

Number/Minutes

Disclosure
No volatility reported following release of information.

Description of alert policy regarding
timing and nature of public releaseof information.

Quant

Percentage

As a provider of execution services and associated platform
connectivity infrastructure, the entire process is consideredelectronic, utilising various forms of automated strategies andprocesses. If we define this as the monthly averages by value
traded by proprietary trading firms directly accessing theLondon Stock Exchange order book in their own capacity as
member firms, then over the course of 2022 this varied
between 29% and 32%.

Description of alert policy regarding
timing and nature of public releaseof information.

D&A

N/A

We do not provide any advice to our clients about the content
or timing of their disclosures. All responsibility for content andtiming rests with the client.

Description of policy to encourage or
require listed companies to publicly
disclose environmental, social, andgovernance (ESG) information.

D&A

N/A

Publication of TCFD-aligned climate reporting guidance
to educate the market and encourage best practiceclimate-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 toinvestors.
Application of FTSE Russell data and Transition Pathway
Initiative methodology to provide listed companies with anassessment of their carbon management practices, helping
identify areas for improvement in their climate disclosure andintegration of climate risks and opportunities into businessstrategy (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 andsectors.
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 andregulatory trends in ESG and climate disclosure.

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Group Sustainability Data 2022

Reporting frameworks continued
Unit ofMeasureTopic

Accounting Metric

Category

Managing
Conflicts ofInterest

Total amount of monetary losses
because of legal proceedings
associated with fraud, insider trading,anti-trust, anti-competitive behaviour,market manipulation, malpractice, orother related financial industry laws
or regulations.

Quant

ReportingCurrency

Disclosure
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.

Discussion of processes for identifying
and assessing conflicts of interest.

D&A

N/A

LSEG PLC maintains a Group Conflicts of Interest Policy(‘the Policy’) which is subject to an annual review.
The policy:• Provides guidance to assist in the identification of both
personal and business conflicts.
• Sets our requirements to clearly identify all conflicts and if
possible, take appropriate steps to avoid them.
• Where conflicts cannot be avoided, mandates that they
will be disclosed or recorded and effectively managed tomitigate any associated risk that a Group entity or employee
might be, or perceived to be, unduly influenced because of
their existence.
• Mandatory Conflicts training is provided to all employees
annually to ensure the provisions set out in the Policy arecommunicated, 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 toescalation to the Executive Committee.

Managing
Business
Continuity &Technology
Risks(1) Number of significant market
disruptions and (2) duration of
downtime.

Quant

Number/Hours

One incident due to a software defect in a FX Matchingvendor product. This impacted customers for 1 hour and19 minutes. The issue has been remediated.

(1) Number of data breaches,(2) percentage involving personallyidentifiable information (PII) and(3) number of customers affected.

Quant

Number/
Percentage

In 2022, LSEG did not record any reportable incident of PII
where customers were impacted directly.

Description of efforts to prevent
technology errors, security breaches,and market disruptions.

D&A

N/A

LSEG aims to proactively detect and/or prevent technology
errors and security breaches to minimise the risk of disruption
to the business and safeguard data. LSEG has establishedlayers of defence to mitigate against security breaches,ranging from protecting the externally facing perimeterto defending the internal network. Our Global Security
Operations Centre monitors and rapidly responds tosecurity alerts.

Accounting Metric

Category

Unit ofMeasureAverage daily number of trades executed, by productor asset class

Quant

Average daily volume traded by product or asset classQuant

SASB Activity Metric
Disclosure

Number/Minutes

LSE order book = £217,574,960 (valued by the million)

ReportingCurrency

LSE order book = 870300

Turquoise Integrated = £144,194,752
Turquoise Plato = 23,705,734
Turquoise Integrated = 561,069
Turquoise Plato = 92,249

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London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
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 the template and structure developed by the SSE. This is LSEG’s eighth report on progress.

1

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

Our CEO’s message, sustainability strategy and materiality review on page 3 of the Sustainability Report and 6
to 8 in the Annual Report respectively, demonstrate our rationale for sustainability and our role in promoting it.

2

How does your exchange’s
senior leadership andorganisational structure
support the promotion of
corporate sustainability inits market(s)?

The Sustainability Committee is a senior-level committee, chaired by the Chief Corporate Affairs & Marketing
Officer. The Committee is responsible for providing strategic direction on the Group’s sustainability ambition
and the strategy, approving sustainability KPIs and targets and monitoring progress against strategy.

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

This year, the overarching objective related to advancing sustainability was to become a strategic enabler ofsustainable economic growth. Our sustainability strategy has three strategic priorities.

3

We support the promotion of sustainability across the financial markets and are committed to resourcing
sustainability sufficiently. The team in the Capital Markets division dedicated to sustainable finance innovation
continues to grow and has also expanded its remit to cover the Post Trade division.

1) Accelerate the just transition to net zero- Enable more companies and issuers to access the capital needed
to finance the transition to a low-carbon economy. Improve transparency and understanding of risks
associated with the transition by promoting clear, comparable and comprehensive data.
2) Enable the growth of the green economy- Provide the market infrastructure to support the growth in green
capital channelled towards sustainability solutions, clean growth and sustainable economic activity.
Leverage our research capabilities and promote market collaboration to support the growth of the green
economy.
3) Create inclusive economic opportunity- We aim to empower economies, communities and individuals
by championing inclusion and access to economic opportunity.

Transparency and issuer reporting

4

Describe your exchange’s
approach to promoting
sustainability disclosure
by companies.

We advocate for best practice disclosure on all elements of ESG including climate-related risks andopportunities and TCFD recommendations.
Last year we played a pivotal role as Co-Chair to the development of the UN SSE 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 ismaterial to investors.
In ESG reporting, we maintain an updated ESG Reporting Guidance document to help companies understandleading global frameworks, reporting formats, and recommended disclosures per industry. Our online ESG
Disclosure Tool allows companies to identify industry-specific disclosures that are considered best practice.
Applying FTSE Russell’s data and the Transition Pathway Initiative’s (TPI) Management Quality methodology, we
provide companies with an assessment of their carbon management practices, through a ‘Climate Governance
Score’. This helps to identify areas for improvement in their climate disclosure and integration of climate risks
and opportunities into business strategy. Our accompanying online tool enables companies to receive
personalised recommendations on how to improve their carbon management practices and progress throughthe TPI levels.
To help companies navigate the implementation of TCFD recommendations, earlier this year we worked inpartnership with the UN SSE to provide training on various aspects of climate reporting as well as holding two
interactive online sessions.

5

What is your exchange’s
process for reviewing listing
standards in general?
Are there opportunities forstakeholders 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 duringconsultations on listing rules. The London Stock Exchange is responsible for the Admission and DisclosureStandards and where there are proposed changes, we would consult with the market for comments. For
example, ahead of launching our Voluntary Carbon Market and publishing Schedule 8 of the Admission andDisclosure Standards, we launched a public consultation and refined the rules to include operating companies
as a result.
The London Stock Exchange is responsible for the rules and regulation of AIM, our growth market. The
rulebooks are updated via a consultation between the Exchange and the AIM community, to ensure theyremain appropriate and pragmatic for growing companies.

6

How do you tracksustainability reporting ofyour listed companies?

The London Stock Exchange reviews the data comprising its Climate Governance Score to assess how well
public companies 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.
Issuers on the Sustainable Bond Market must comply with mandatory annual post-issuance reporting
requirements to demonstrate continued eligibility for the Sustainable Bond Market over the lifetime of
the issuance.
Listed companies can track how their sustainability performance compares to their peers through access toRefinitiv ESG data on the Issuer Services platform; best practice disclosures and reporting will be reflected instrong ESG scores.

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London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
Transparency and issuer reporting continued

7

What incentives (i.e. publicrecognition/awards) andsanctions do you have inplace to encourage disclosureand discourage noncompliance/lower levels oftransparency?

Refinitiv offers one of the most comprehensive ESG databases in the industry. Issuers have access to Refinitiv’s
ESG Data and Scores through the Issuer Services platform which provides more than 600 metrics from 14,000
companies globally. Issuers are encouraged to use this feature to assess their performance against peers andidentify areas for improvement.
The 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 torecognised industry standards such as TCFD and TPI.
FTSE Russell assesses ESG and green revenues disclosure and performance of companies globally andprovides this analysis to investors around the world. This data is also used to construct the FTSE ESG IndexSeries, which highlights companies that meet good practice standards. The Green Economy Mark cohort must
disclose their green revenues and the exchange may remove their designation if they fail to provide sufficientgreen revenue disclosures. In our policy manifesto, we encourage policymakers to require disclosure ofcorporate revenues derived from products and services providing green solutions to help inform investors
seeking to shift capital towards companies making a positive contribution.
Sustainable Bond Market issuers are required to provide annual disclosures and failure to do so would resultin the instrument being removed from the platform.

8

What connections have you
made between nationalsustainable development
frameworks and goals, andyour exchange’s existingStandard and norms?

The ESG Reporting Guidance builds on disclosure standards across the UK.
In 2021, the FCA mandated TCFD-aligned disclosures by some public companies. The London Stock
Exchange’s TCFD Climate Reporting Guidance aids companies understanding of the disclosure 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 the global voluntary carbon market.
We responded to their recommendations by launching a Voluntary Carbon Market to increase the flow ofcapital into new climate mitigation projects worldwide.
LSEG also has representatives that are members of the Green Taxonomy Advisory Group (GTAG) which iscontributing to the development of a UK green taxonomy, a common framework for sustainable investment.
The exchange participates in several ICMA working groups that are responsible for establishing and reviewing
frameworks in the fixed income market. These ICMA principles form some of the International Principles werequire issuers to adhere to list on our SBM.
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.

Issuer capacity building

9

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

During the development phase for the 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 ofissuers.
Our guidance was based on the UN SSE Model Guidance on Climate-related Disclosure, in addition toincorporating UK regulatory considerations and practical examples. We continue to monitor global policy
and regulatory developments to ensure the guidance remains relevant.
During the development phase for our Climate Transition Offering (which comprises data, guidance andtraining), we engaged with a number of companies, financial market participants, and advisory groups, toinform its creation.
The established Sustainable Bond Market Advisory Group participated in the development of the disclosure
criteria for the Transition Bond Segment.
After we announced our intention at COP26 to develop a Voluntary Carbon Market, we convened an External
Delivery Group of experts from across the financial sector and carbon markets including lawyers, fundmanagers, project developers, and companies. These participants were instrumental in shaping and refining
the product ahead of launch in October 2022.

1005

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

LSEG ESG guidance recommends enhancing the credibility of ESG information through internal and/or external
assurance (see ‘Investment Grade Data’ chapter of the guidance).

London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
Collaboration and engagement

11

Who does your exchange view
as its key stakeholders andhow does it engage andcollaborate (or plan to do so)with these and potentiallyother stakeholders?

As a stock exchange which sits at the centre of financial markets, we have several stakeholders, and webelieve it is important to communicate and collaborate with them. These include private companies, publiccompanies (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 the World Federation of
Exchanges (WFE) to share best practice. Through our involvement with the UN SSE, we co-chaired(alongside the Johannesburg Stock Exchange) the development of the UN SSE Model Guidance on
Climate-related Disclosure.
• We respond to regulator consultations and have responded positively to consultations related to nonfinancial disclosure.
• We host events for public companies and prospective issuers which cover key sustainability and climate
related topics.
• We actively participate in industry initiatives and external working groups.
• We provide Refinitiv’s ESG Data and Scores to our London-listed issuers to enable them to assess theirperformance against peers and identify areas of improvement.
• We are working in a range of ways to support the growth and development of sustainable finance: LSEG isa partner of the Climate Bonds Initiative, part of ICMA’s Green Bond Principles and Social Bond Principles
Advisory Council and has created a forum in the Sustainable Bond Market Advisory Group.

Sustainable products

12

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

From the pioneers who are leading the green economy to the more carbon-intensive industry sectors making
the transition to lower-carbon operating models, the London Stock Exchange is committed to supporting
issuers with access to capital and sustainable finance products and services across a range of asset classes.
In October 2022, we launched our Voluntary Carbon Market. This is a designation for funds or operatingcompanies on AIM or Main Market that are intent on financing climate change mitigation projects which are
expected to yield carbon credits. This provides an alternative solution to procurement for corporates seeking
access to a supply of carbon credits to augment their decarbonisation strategies.
Our Green Economy Mark recognises companies and funds on our markets with 50% or more of theirrevenues derived from products and services that contribute to the global green economy. It helps toincrease the visibility of issuers on London’s markets that are contributing to achieving positive environmental
objectives. More than 100 companies and funds with a combined market cap of £150bn+ currently hold theGreen Economy Mark.
The Sustainable Bond Market allows issuers of qualifying sustainable debt instruments to display bonds on
the platform, providing access to the largest, most sophisticated, and long-term oriented investor base forsustainable debt finance.
Through our Issuer Services platform, London-listed companies can access the ESG Data and Scores ofRefinitiv, one of the industry’s most comprehensive ESG databases covering 14,000 companies. Through thisdatabase, issuers can gain a global view of ESG performance in their sector and understand best practice ESG
disclosure.
Our Climate Transition Offering helps companies to prepare for the transition to low-carbon through accessto tools, resources and education. Our Climate Governance Score and Tool helps companies to assess theircarbon management practices. The Climate Reporting Guidance and complementary training videos helps
companies discover best practice climate reporting and TCFD implementation.
The 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 establishedFTSE4GOOD index series which measures the performance of companies demonstrating strong ESG
credentials and the FTSE TPI Climate Transition Index Series which includes five key climate data inputs fromthe TPI core assessments and FTSE Russell’s climate framework.
There are more than 330 ESG ETF listings in London, assets invested into London-listed ESG ETFs stand at
more than $227bn.

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London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
Exchange needs

13

Are there any specificresources that you would likefrom the SSE or other relevantgroups to help you in yoursustainability work?

The UN SSE should support exchanges to mobilise strategies in relation to achieving their commitments madeunder the Net Zero Financial Services Providers Alliance. The UN SSE can also use its convening power topromote engagement between exchanges around other important topics including social impact, diversity andcarbon markets.

14

Are there any specificrequests you have ofinvestors, issuers andregulators in terms of
their role in advancing
sustainability in the market?

LSEG looks forward to continuing to collaborate with investors, issuers, and regulators on the sustainablefinance and investment agenda.
It is key to the continued success of ESG disclosure that issuers understand how investors are transitioning
capital allocations in response to ESG considerations. Therefore, we’ll keep placing emphasis on theimportance of investor-issuer dialogue on ESG issues, as a complement to high-quality ESG data flows.
We recognise the importance 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.
Our policy advocacy asks that policymakers introduce mandatory disclosures that align with ISSB and areconsistent across private and public companies. We are also calling for greater disclosure of green revenues
data and mandatory transition plans.

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London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
UN Global Compact: The Ten Principles
Human rights

Page

Principle 1

Businesses should support and respect the protection of internationallyproclaimed human rights; andPage 35 of the Sustainability Report and page 53of the Annual Report

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

Page 35 of the Sustainability Report and page 53of the Annual Report

Principle 3

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

Pages 24 to 27 and 39 of the Sustainability
ReportPrinciple 4

The elimination of all forms of forced and compulsory labour;

Please see link to Modern Slavery Statement

Labour

https://www.lseg.com/en/sustainability-strategy/
disclosures-and-reports
Principle 5

The effective abolition of child labour; andPlease see link to Modern Slavery Statement
https://www.lseg.com/en/sustainability-strategy/
disclosures-and-reports

Principle 6

The elimination of discrimination in respect of employment and occupation.

Please see link to Modern Slavery Statement
https://www.lseg.com/en/sustainability-strategy/
disclosures-and-reports

Environment
Principle 7

Businesses should support a precautionary approach to environmental
challenges;

Pages 10 to 21 of the Sustainability Report

Principle 8

Undertake initiatives to promote greater environmental responsibility; andPages 10 to 21 of the Sustainability Report

Principle 9

Encourage the development and diffusion of environmentally friendly
technologies.

Pages 10 to 21 of the Sustainability Report

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

Page 33 of the Sustainability Report and page 53of the Annual Report

Anti-corruption
Principle 10

Please see link to Modern Slavery Statement
https://www.lseg.com/en/sustainability-strategy/
disclosures-and-reports

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London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
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 sustainablefinance agenda. Below we summarise our efforts to promote the principles progressively in accordance with our circumstances and priorities.
Principles

Principles in action

Principle 1• In partnership with the UN SSE, we hosted interactive training sessions to support London listed companies with theirclimate reporting and TCFD compliance.

Exchanges will work to
educate participants inthe exchange ecosystem
about the importance ofsustainability issues• We provide training videos on climate reporting through our Issuer Services platform so companies can develop theirskills at their own pace.
• We have published Climate Reporting Guidance to help issuers understand and implement TCFD recommendations.
This guidance can also provide best practice for AIM companies and funds which are not yet in scope of TCFD.
• 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 use of the Transition Pathway Initiative’s (TPI) 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 update this on an ad hoc basis to reflect changes instandards and regulation.
• The London Stock Exchange holds regular events and webinars and publishes content pieces to educate the market
on sustainability issues and sector themes.

Principle 2

Exchanges will promote
the enhanced availabilityof investor-relevant,decision-useful ESG
information• We provide issuers with access to Refinitiv’s ESG Data and Scores through our Issuer Services platform covering
more than 600 metrics from companies globally, so they can compare their ESG performance against their peers anddiscover best practice disclosure for their industry.
• Utilising FTSE Russell’s Green Revenues Classification System, we provide a mechanism to identify companies
contributing to the global green economy via the 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 ESG Reporting Guidance and Climate Reporting Guidance helps issuers to produce decision-useful ESG andclimate-related information aligned with investors’ expectations.
• Through our Issuer Services platform, companies have access to webinars and thought leadership pieces on key
ESG themes.

Principle 3• Our stakeholder engagement is outlined in pages 30 to 31 of our Sustainability Report.

Principle 4• The Green Economy Mark, as outlined above, helps investors identify an investible universe of green equities acrossa range of industries.

Exchanges will actively
engage with stakeholders
to advance the sustainablefinance agenda
Exchanges will provide
markets and products that
support the scaling-up ofsustainable finance andreorientation of financial flows• The Sustainable Bond Market provides a platform to list green, social, sustainability, and sustainability-linked, andtransition bonds. Last year we expanded the Sustainable Bond Market and established the Transition Bond Segment,
which helps more carbon-intensive companies raise finance to fund credible transition plans.
• Last year, we launched our Climate Transition Offering which 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 climatechange considerations into business strategies. Our Climate Reporting Guidance and complementary training videos
helps companies discover best practice climate reporting and TCFD implementation.
• In October, we launched our Voluntary Carbon Market. The designation is for funds or operating companies on AIM
or the Main Market which are intent on financing climate change mitigation projects that are expected to give rise tocarbon credits.

Principle 5

Exchanges will establish
effective internal governanceand operational processes
and policies to support theirsustainability efforts09• We continue to assess the materiality of ESG and related risks to LSEG and to increasingly integrate these
considerations into our Enterprise-wide Risk Management framework.
• A description of our sustainability governance can be found in our sustainability report page 37.

London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
World Economic Forum’s Stakeholder Capitalism Index
As an advocate for greater transparency, LSEG is committed to providing meaningful sustainability information to our stakeholders. We continue toenhance our sustainability reporting with our second 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.
MetricDisclosure/Theme

Indicator

Response and Reference

Principles ofGovernanceMetrics

Governing purpose

Setting purpose
The company’s stated purpose, as the expression of themeans by which a business proposes solutions to economic,
environmental and social issues. Corporate purpose should
create value for all stakeholders, including shareholders.

LSEG’s purpose statement is available
on our website and in our Sustainability
ReportGovernance 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 and commitments,
and the nature of the commitments; gender; membership ofunder-represented social groups; stakeholder representation.

LSEG Sustainability Report 2022:
see Governance and management

Stakeholder engagement

Material issues impacting stakeholders
A list of the topics that are material to key stakeholders andthe company, how the topics were identified and how the
stakeholders were engaged.

LSEG Sustainability Report 2022: seesustainability materiality on page 9

Ethical behaviour

Anti-corruption
1.	Total percentage of governance body members, employees
and business partners who have received training on theorganisation’s anticorruption policies and procedures,
broken down by region.

This is covered in our Annual Reportand Accounts 2022, pages 53 and 74
to 84

Quality of governing bodya) Total number and nature of incidents of corruption
confirmed during the current year, but related toprevious years; andb) Total number and nature of incidents of corruption
confirmed during the current year, related to this year.

www.lseg.com and https://www.lseg.
com/en/sustainability-strategy/
disclosures-and-reports

https://www.lseg.com/en/sustainabilitystrategy/disclosures-and-reports

We have in place an Anti-bribery
and Corruption Policy – UK Bribery
Act | LSEG
We currently do not break down our
performance data in the format required
for this metric.

2.	Discussion of initiatives and stakeholder engagement toimprove the broader operating environment and culture,in order to combat corruption.
Ethical behaviour

Protected ethics advice and reporting mechanisms
A description of internal and external mechanisms for:1. Seeking advice about ethical and lawful behaviour andorganisational integrity; andPlease see https:
http://www.lseg.com/en/policies/
whistleblowing

2. Reporting concerns about unethical or unlawful behaviour
and lack of organisational integrity.
Risk and opportunity
oversight

10

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 theserisks 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.

LSEG Sustainability Report 2022:
see page 9
Refer to LSEG Climate Reporthttps://www.lseg.com/en/sustainabilitystrategy/disclosures-and-reports

London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
MetricDisclosure/Theme

Indicator

Response and Reference

PlanetMetrics

Climate change

Greenhouse gas (GHG) emissions
For all relevant greenhouse gases (e.g. carbon dioxide,
methane, nitrous oxide, F-gases etc.), report in metric tonnesof 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.

LSEG Sustainability Report 2022:
Pages 17 and 41

TCFD implementation
Fully implement the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD). If necessary,
disclose a timeline of at most three years for full
implementation. Disclose whether you have set, or havecommitted to set, GHG emissions targets that are in line withthe goals 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 – and to achieve net-zero emissions
before 2050.

LSEG Sustainability Report 2022:
Page 14

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).

Not applicable

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 in regions 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.

Not Applicable

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 orcompulsory labour. Such risks could emerge in relation to: a)type of operation (such as manufacturing plant) and type of
supplier; and b) countries or geographic areas with operations
and suppliers considered at risk.

LSEG Sustainability Report, page 35

Health and well being

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 ofwork-related injury; and the number of hours worked. An
explanation of how the organisation facilitates workers’ accessto non-occupational medical and healthcare services, and thescope of access provided for employees and workers.

LSEG Sustainability Report 2022,
pages 33 and 39

Dignity and equality

Diversity and inclusion (%)
Percentage of employees per employee category, by age
group, gender and other indicators of diversity (e.g. ethnicity).

LSEG Sustainability Report 20222:
page 25

Dignity and equality

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

We currently do not break down our
performance data in the format required
for this metric.

Dignity and equality

Wage level (%)
Ratios of standard entry level wage by gender compared to
local minimum wage. Ratio of the annual total compensationof the CEO to the median of the annual total compensation of
all its employees, except the CEO.

Please refer to Pay Equity Report here:
https://www.lseg.com/en/sustainabilitystrategy/disclosures-and-reports

Skills for the future

Training provided (#, $)Average hours of training per person that the organisation’s
employees have undertaken during the reporting period, bygender and employee category (total number of hours of
training provided to employees divided by the number of
employees). Average training and development expenditure
per full time employee (total cost of training provided to
employees divided by the number of employees).

LSEG Sustainability Report 2022:
see pages 25 and 33

Climate change

Nature loss

Freshwater availability

PeopleMetrics

11

Dignity and equality

LSEG 2022 submission to CDP,
available here: https://www.lseg.com/en/
sustainability-strategy/disclosures-andreports

LSEG 2022 Climate Report available
here: https://www.lseg.com/en/
sustainability-strategy/disclosures-andreports

We currently do not report on thisindicator

We currently do not report on thisindicator

LSEG Human Rights Statement
LSEG Modern Slavery Statement
LSEG Supplier Code of Conduct

Refer to Pay Equity Report here:
https://www.lseg.com/en/sustainabilitystrategy/disclosures-and-reports

London Stock Exchange Group PLC
Group Sustainability Data 2022

Reporting frameworks continued
MetricDisclosure/Theme

Indicator

Response and Reference

PlanetMetrics

Employment and wealthgeneration

Absolute number and rate of employment
1.	Total number and rate of new employee hires during thereporting period, by age group, gender, other indicatorsof diversity and region.

LSEG Sustainability Report 2022:
see pages 23 and 25

2. Total number and rate of employee turnover during thereporting period, by age group, gender, other indicatorsof diversity and region.
Community and social
vitality

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, andother taxes that constitute costs to the company, by categoryof taxes.

LSEG Annual Report and Accounts
pages 105 to 110

Employment and wealthgeneration

Economic contribution
1. 	Direct economic value generated and distributed (EVG&D),
on an accrual’s basis, covering the basic components forthe organisation’s global operations, ideally split out by:

Not applicable– Revenues– Operating costs– Employee wages and benefits– Payments to providers of capital– Payments to government– Community investment

We currently do not break down our
performance data in the format required
for this metric.

2. Financial assistance received from the government:
total monetary value of financial assistance received
by the organisation from any government during thereporting period.
Innovation of better
products and services

Total R&D expenses ($)
Total costs related to research and development.

More information about LSEG’s
approach to research and development
can be found in the LSEG Strategic
Report.
https://www.lseg.com/en/investorrelations#investor-info

Employment and wealthgeneration

Financial investment contribution
1. Total capital expenditures (CapEx) minus depreciation,
supported by narrative to describe the company’s
investment strategy.

See Annual Report page 40
Financials statement, page 48

2.	Share buybacks plus dividend payments, supported bynarrative to describe the company’s strategy for returnsof capital to shareholders.

12

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