CORPORATESUSTAINABILITYREPORT 2023

LMAX Exchange Group Limited, Yellow Building, 1A Nicholas Road, London W11 4AN
www.LMAX.com | info@LMAX.com | +44 20 3192 2555
LMAX Exchange Group Limited is the holding company
of LMAX Exchange, LMAX Global and LMAX Digital© 2024 LMAX GroupCORPORATE SUSTAINABILITY REPORT 2023

OVERVIEWABOUT THIS REPORTA MESSAGE FROM OUR CEO
WHO WE ARE
LMAX GROUP AT A GLANCE
GOVERNANCEOUR COMPANY BOARD & EXECUTIVE LEADERSHIP
ESG AT LMAX GROUP
ESG LEADERSHIPTHE SUSTAINABLE DEVELOPMENT GOALSOUR PEOPLEEMPOWERING OUR PEOPLE
DIVERSITY, EQUITY & INCLUSIONOUR PARTNERSHIPSENGAGING OUR COMMUNITIESCHARITABLE PARTNERSHIPSKENSINGTON & CHELSEA FOUNDATION
THE PHILIPPINE REEF & RAINFOREST CONSERVATION FOUNDATION, INC.
PROJECT ACE: ACTIONS FOR COMMUNITIES AND ENVIRONMENTSUSTAINABILITY SCHOLARSOUR PLANETOUR ENVIRONMENTAL MANAGEMENT SYSTEM
REDUCING WASTE
GREENHOUSE GAS REPORTING
EMISSIONS SUMMARYEMISSIONS BY ACTIVITYFURTHER ACTIONSIN CONCLUSIONCONTENTSCORPORATE SUSTAINABILITY REPORT 2023

ABOUT THIS REPORTThis sustainability report, the first for LMAX Group and its subsidiaries, was published inJune 2024 and covers the twelve-month period ended December 31, 2023.
The progress represented in this report reflects initiatives that were either started, continued,
or completed in 2023 and sets out our sustainability objectives for 2024 and beyond.
In formulating this report, we evaluated multiple disclosure frameworks and ultimately settled
on a blend of metrics that we feel are most relevant to LMAX Group, a people centric businesspositioned at the intersection of financial services and technology.
Given this assessment, this report is prepared using the frameworks and standards of theGreenhouse Gas (GHG) Protocol. This report also references the United Nations Sustainable
Development Goals.
As our reporting evolves and is refined over time, including as a result of new government
regulations, changing stakeholder expectations, and other developments in the ESG reporting
industry, we will continue to strive to be transparent in our disclosure of our ESG strategy andassociated metrics.
We will endeavor to present our findings in a way that is digestible for our stakeholders,providing evidence-based, market-informing, and decision-useful information relevant to ourbusiness and audiences.
This report discloses information that LMAX Group believes to be of interest to the readers of
this document, primarily our clients and investors, as well as other stakeholders, including ourcurrent and future employees, and the broader market.
The information provided in this report reflects LMAX Group’s approach to ESG as of the dateof this report and is subject to change without notice.

OVERVIEWCORPORATE SUSTAINABILITY REPORT 2023

A MESSAGE FROM OUR CEO

2023 has been a year of growth for LMAX Group as we remained
focused on our mission of building fairer markets.
We continually work towards this core mission, and in line with our values, recognise thatsustainability, inclusion and diversity in all forms make us stronger as a team and as a business.
Consequently, last year we invested heavily in our corporate sustainability, diversity, equity
and inclusion initiatives, establishing independent functions to deliver on our objectives.
At LMAX Group, we are acutely aware of our role as a potential agent for change. We
understand how the market position that we hold, especially on an international scale, can bewielded to facilitate positive societal change. We take this responsibility seriously and use that
influence effectively.
It is our duty as members of society to support and drive positive social and environmental
impact. By doing so, we hope to address some of the most pressing sustainability challenges
including inequality in the workplace, inequality in access to education and employment, andclimate related issues.
I am immensely proud of the projects that have been delivered in 2023, as we continue tounderstand our own impact while actively investing in positively impacting both people andplanet. Our outreach has meant that hundreds of people have benefited from access tofurther education, creating more accessibility in our market and creating a legacy for all.
This is just the beginning for LMAX Group. I look forward to sharing our journey and our
positive impact in 2024 and beyond.

David Mercer,
CEO, LMAX GroupOVERVIEWWHO WE ARECORPORATE SUSTAINABILITY REPORT 2023

Award-winning technology

WHO WE ARE

LMAX GROUP AT A GLANCE

LMAX Group is a global financial technology company and the leading independent
operator of multiple institutional execution venues for FX and digital assets trading.
With c. 300 people across offices worldwide and a global client base, the Group builds andruns its own high performance, ultra-low latency exchange infrastructure, which includes
matching engines in London, New York, Tokyo and Singapore.
Our rapidly expanding global institutional and professional client base is a testament to our
distinctive business model that delivers efficient market structure and transparent, precise,consistent execution to all market participants.

The institutional exchange for global FX
LMAX Exchange operates multiple global institutional FX exchanges, an FCA regulated MTF(Multilateral Trading Facility) and MAS regulated Recognised Market Operator. A central limit
order book (CLOB) execution model offers streaming firm limit order liquidity from top tierbanks and non-bank institutions, transparent price discovery, no ‘last look’ rejections and fullcontrol over trading strategy and costs.

Regulated broker for global FX
LMAX Global is a leading regulated broker for FX, metals and commodities worldwide. Servicing
retail brokers and professional traders, LMAX Global offers access to deep institutional FX
liquidity, tight spreads and transparent, precise execution with no ‘last look’ rejections.

The institutional crypto currency exchange
LMAX Digital is a leading institutional spot digital assets exchange. Based on proven,
proprietary technology from LMAX Group, LMAX Digital allows global institutions to acquire,
trade and hold digital assets such as BTC, ETH, LTC, BCH, XRP, SOL, PYTH, MATIC and LINK
safely and securely. LMAX Digital is regulated by the Gibraltar Financial Services Commission(GFSC) as a DLT (Distributed Ledger Technology) provider for execution and custody services.

WHO WE ARECORPORATE SUSTAINABILITY REPORT 2023

GOVERNANCE

The Board of Directors is responsible for agreeing the Group’s strategy and for monitoring
progress with the execution of the firm’s strategy against agreed targets. The Board has overall
responsibility for promoting the long-term sustainable success of the Group for the benefit of
its members as a whole, providing leadership and direction, including in relation to culture,ethics and values, and ensuring effective engagement with and encouraging participation fromshareholders and other stakeholders.
Risk management
Risk management is central to the long-term success of the Group and to the resilience of ouroperations. LMAX Group has well-established processes for identifying and managing risks.
The Board sets the risk appetite and monitors how well risks within each business are
mitigated and controlled. The emphasis of risk management within the Group is to support asustainable business model with the capacity to manage all the risks it faces, and to be able tocontinue to offer its services under sustained financial market volatility and stressed conditions.
Regulatory compliance
LMAX Group operates in a number of geographic regions which affects how it is able to market
and provide its services to clients. The regulations relating to the products and markets inwhich the business operates are continually evolving. The Group welcomes any movement byregulators to improve client outcomes, and also recognises some changes adversely impact itor the activities of its clients as the industry adapts.

› LMAX Exchange and LMAX Broker Ltd are regulated under the Investment Firm Prudential
Regime, a regulatory framework introduced by the Financial Conduct Authority specificallyfor investment firms.

› LMAX Broker Europe Limited is subject to the EU equivalent rulebook, the Investment Firm
Directive and Regulation (IFD/IFR).

› LMAX Digital Broker Ltd is regulated under the Financial Services (Distributed Ledger
Technology Providers) Regulations 2020, the regulatory framework introduced by the
Gibraltar Financial Services Commission.

Risk assessment
LMAX Exchange, LMAX Broker Ltd and LMAX Broker Europe Limited undertake an annual
Internal Capital Adequacy & Risk Assessment Process (ICARA) through which they assess theircapital and liquidity requirements, including the application of a series of stress-testing
scenarios, to its base capital projections.
LMAX Digital undertakes an annual Financial and Non-Financial Resources Assessment (FNRA),
which also assess a Group’s capital and liquidity requirements, including the application of aseries of stress-testing scenarios, to its base financial projections. The assessments are reviewed,
challenged and approved by the Boards of each subsidiary annually.

WHO WE ARECOMPANY BOARD & EXECUTIVE LEADERSHIP

Strong governance is essential in the running and execution of
our business.
Taking responsibility for our actions is critical to the meeting of our business goals
and objectives.
Our Board members have experience that includes wide-ranging governance and leadershipexpertise as well as specific skills such as understanding of purposeful business, sustainability,
finance, technology and digital. The Board has ultimate responsibility for reviewing,
monitoring, and guiding the strategy of the Company, as well as its conduct.
Audit & risk committee

Board of directors

Remuneration committeePeter Yordan
Edmond Warner
Edward Wray
David MercerPeter Yordan
Edmond Warner
Edward Wray
David Mercer
Grant Pomeroy
Thierry PorteThierry Porte
Edmond Warner
Edward Wray
David Mercer

Executive Leadership metrics

48.2

30%

AVERAGE AGE

IDENTIFY AS FEMALE

10%11.5 YEARSIDENTIFY AS VISIBLE DIVERSITYAVERAGE TENURE* We recognise that these metrics demonstrate a need for us at LMAX Group to be more
ambitious with our DE&I targets so that future executive leadership metrics are more
representative.

WHO WE ARE

Our people are our driving force, that’s
why we encourage new and disruptiveideas from all levels of the business
AAISHA KNIGHTS-IHEDIWA | CHIEF PEOPLE OFFICERCORPORATE SUSTAINABILITY REPORT 2023

ESG AT LMAX GROUP

LMAX Group is committed to building an open, transparent and fairer marketplace for all.
To achieve this, we are striving towards creating a positive impact both in the workplace andin the communities and environment in which we operate. Put simply, we believe that it is theright thing to do. The ESG strategy of LMAX Group is built around three key pillars and thevalues of our business and our people:› Empowering our people to contribute positively to the world around them.
› Utilising our specialism to create impact in the local community.
› Focusing on sustainability through programmes that support education, employability andthe environment.

We are responsible
As a global firm we feel an obligation to play our role in helping to address global societal
issues and drive positive change where we are able.
We are dynamic
Our people are our driving force, that’s why we encourage new and disruptive ideas fromall levels of the business. Sustainability issues cannot be addressed in silo, that’s why weencourage our people to question, challenge, and change for the better our societal andenvironmental impacts across the business.
We are trusted
We are a trusted global partner because of our principles of openness, transparency, andaccountability. These values guide us in our connection to the world- to our colleagues,
customers and communities.
We are visionary
Our business model is positioned to shape the future of industry at a turning point incapital markets. Our vision is to build fairer markets and to achieve this we need toposition sustainability at the forefront of decision-making and education.
A growth mindset
Strong results can only be achieved through sustainable pursuit of strategic initiatives. We
understand that the strength of our model is dependent on all market conditions including
sustainability and environmental impact.
A meritocracy
Our people, culture and technology give us industry edge, helping us to standout fromthe competition. Together, we work in a collaborative, fair and transparent way to solve
challenges and make a real difference.
WHO WE ARECORPORATE SUSTAINABILITY REPORT 2023

ESG LEADERSHIP

Sustainability goals are not achieved by one person or one teamContinuous oversight and accountability are key to making a lasting impact on people andplanet. That’s where our Group-wide ESG Steering Committee comes into play.
The Steering Committee, which meets on a bi-annual basis, collaborates to get to the root ofany sustainability challenges within LMAX Group.
Through open dialogue committee members meet to consider how sustainability risks might
impact their teams and use their unique experience to influence change inside and outside
our organisation.

Steering committee members
Simon Maisey, Managing Director, Strategic Partnerships (Executive Sponsor)
Aaisha Knights-Ihediwa, Chief People Officer (Executive Sponsor)
Andrew Phillips, Chief Technology Officer (Executive Sponsor)
Marcelo Ramos, Head of Security
Omy Lawal, Head of People Business Partnering
Sara Smith, Head of Operational Risk
Ruta Mehta, Group Company Secretary
Aidan Alberico, Senior Corporate Responsibility Partner

Other Members across LMAX Group, LMAX Exchange, LMAX Global and LMAX Digital
including: People Operations, Facilities, Marketing, Finance, Technology, Governance,
Compliance, Security.

WHO WE ARE

CORPORATE SUSTAINABILITY REPORT 2023

When we review our impact as anorganisation it’s important to address
the complexity and interconnectionof sustainability challenges.
SIMON MAISEY | MANAGING DIRECTOR STRATEGIC PARTNERSHIPS

WHO WE ARE

THE SUSTAINABLE DEVELOPMENT GOALS

In order to better shape, steer, communicate and report our strategies, goals and activities wehave joined the UN Global Compact in support of the Sustainable Development Goals.
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member Statesin 2015, provides a shared blueprint for peace and prosperity for people and the planet, now
and into the future.
The 17 Sustainable Development Goals (SDGs) are an urgent call for action by all countries ina global partnership. They recognise that ending poverty and other deprivations must go
hand-in-hand with strategies that improve health and education, reduce inequality, and spur
economic growth – all while tackling climate change and working to preserve our oceans
and forests.
Achieving these goals requires collective action across governments, civil society, private
sector and dedicated individuals and communities and needs to be matched with the necessary
resources, innovation capacity and partnerships to drive implementation.
As members of the private sector, in this context, we recognise that we are indispensable
partners and have a critical role to play on the journey to sustainability.

WHO WE ARE

OUR PEOPLECORPORATE SUSTAINABILITY REPORT 2023

LMAX Group is a people centric business. Our people are critical to our future success.
The array of benefits, training and development opportunities and culture that we havecultivated aren’t there to simply attract the best talent, they are there to retain our talent for
the long-term, ensuring that LMAX Group is an organisation where careers can be built andcontinuously developed.
Employee benefits
In 2023, we focused on global alignment of our benefits to ensure all employees, regardless ofgeographical location, had access to competitive and robust benefits.
In 2024, we will focus on enhancing our family-friendly policies and retirement options topositively impact gender gaps and promote a holistic approach to the workplace.
Benefits & support

LEARNING & DEVELOPMENTCATALOGUEPENSION/RETIREMENTOPTIONSWELLBEING ALLOWANCESPRIVATE MEDICAL COVER

MENTAL HEALTH SUPPORT(VIRTUAL THERAPY SESSIONS)ELECTRIC VEHICLE SCHEMEREMOTE WORKING

GIVE AS YOU EARNFLU VACCINES

VOLUNTEERING DAYSCRITICAL ILLNESS COVER

LIFE INSURANCEDENTAL INSURANCESOCIAL EVENTS*Benefits available where applicable across locations
OUR PEOPLEEMPOWERING OUR PEOPLE

Employee engagement
When employee engagement is high, employees feel satisfied with their contributions andimpact. They have a connection to their performance and the company they work for.
Since 2021, LMAX Group has completed an annual engagement survey to capture theattitudes and opinions of our employees on a global scale. These results are used to influence
future policies and procedures and are shared on a team basis to further explore differences indynamics and culture.
We use quarterly all-hands meetings, in addition to monthly newsletters, to share these
attitudes and opinions and connection to overall company performance.
Employee development
At LMAX Group we believe whole-heartedly in a growth mindset. Through this, all our abilities
on a personal and professional level can be developed through dedication and hard work.
In line with this belief, we have launched LMAX Academy. The LMAX Academy delivers training
across all offices on topics such as managerial skills, environmental education and inclusion so
our employees can grow and expand their knowledge and skills everyday.
Paying a living wage
Due to the cost-of-living crisis, it's important for businesses to face the effects of today’s
turbulent and unpredictable economic reality on employee's families and welfare.
We believe it is critical in creating a sustainable business that all employees receive a wage
which is sufficient to allow a reasonable standard of living.
Currently only 24% of businesses pay a living wage to employees globally (Global Living Wage
Report, PWC, 2023).
As responsible employers who are committed to the financial-wellbeing for our employees, weare proud that 100% of LMAX Group employees, regardless of location, receive above aliving wage. In line with this commitment, we perform regular benchmarking activities acrossmarkets toensure our employees total compensation is competitive.
As part of our commitment to the Sustainable Development Goals of no poverty, genderequality, reduced inequalities, and decent work and economic growth we will cascade thispolicy to our supply chain.
The ultimate goal being to influence our business partners, contractors and suppliers toadapt the same policies and practices globally.

OUR PEOPLECORPORATE SUSTAINABILITY REPORT 2023

DIVERSITY, EQUITY & INCLUSION

As a global financial services and technology organisation, we are committed to building afairer market. Through the innovation of our products and services we will meet the diverse
needs of the market and of our clients.
Women in technology and finance
The Technology and Finance industries face the biggest challenges when it comes to genderbalance. Our goal is to close the gap and ensure that there is gender balance at all levels ofmanagement.
As of December 2023, only 28% of our employees identify as female. This figure represents a
2% increase in female population year on year. As an industry standard, women account for
only 26% of employees in technology (Tech Nation. 2021. Job and Skills Report).
Currently, only 7% of our female employees are in managerial positions. This is in comparison
to 21% of our male employees. These figures, while on par with the market, demonstrate theneed of LMAX Group to bridge the gap in gender inequality by enhancing our practices,
policies and procedures.
In order to address this gap, we are focusing our attention on fair compensation for work
regardless of gender with clear structure for career progression. This year, we implemented
job grading to mitigate bias in our compensation strategy and regular inclusion training for all
employees.
In 2024, we will enhance our performance management structure and gender pay gap
analyses to further drive fairness, transparency and consistency across the business.
Diverse talent
We have been working to create a workforce that reflects the diversity of the market, ourclients and community. We are proud to have implemented equitable hiring practices such as:› Advanced Applicant Tracking System (ATS) to guarantee candidate profile anonymity.
› Updated job descriptions with gender-neutral language to foster a fair and level playing
field for all applicants and to further eliminate biases.

› Better collaboration with hiring managers to proactively identify diversity gaps.
Inclusive workplace
Improving practices that promote an inclusive behaviour, and that create an environment forour people to grow and flourish.
We are proud to have launched our first Employee Resource Group (ERG) dedicated to
women in the business, with the aim to empower and support women in the workplacethrough community, networking, and education.

OUR PEOPLE

At LMAX Group, we value the diversityof our people. We believe fostering an
inclusive behaviour will empower
collaboration, innovation, and growth.
OMY LAWAL | HEAD OF PEOPLE BUSINESS PARTNERINGOUR PARTNERSHIPSCORPORATE SUSTAINABILITY REPORT 2023

ENGAGING OUR COMMUNITIES

Doing well by doing good
We have a desire to address societal issues and drive measurable and positive change where
we are able. Through these efforts, we hope to address some of the most pressing
sustainability challenges including inequality in the workplace, inequality in access to
education and employment, and climate related issues.
In 2023, we launched our global Volunteering Policy. The purpose of this policy is to enable
LMAX Group employees to take part in volunteer work during normal working hours either via
internal initiatives or external charitable organisations.
Volunteering benefits employees both personally and professionally through team building,developing skills and interests, improving morale, physical and mental health and encourages
work-life balance. That’s why all our employees are entitled to take up to 2 days per annum fortheir own initiatives and up to 5 days per annum for our partnered charities and LMAX Group
organised events.
Currently 12.8% of our employees utilise our volunteering policy on an ongoing basis. The
average uptake of volunteering policies is 14.3% (London Benchmarking Group, 2020).
In 2024 we will look to increase our engagement with more opportunities for involvement
globally.

FROM 2022

2023 volunteering+68.5%+68.5%+87.5%

396

49.5

15

HOURS

DAYS

EVENTS ATTENDEDOUR PARTNERSHIPSCORPORATE SUSTAINABILITY REPORT 2023

CHARITABLE PARTNERSHIPSAt LMAX Group our mission is focused on building fairer markets,
creating a positive impact, and helping to level the playing field
across the locations in which we operate.
As a global firm, we understand that it is our responsibility to use our influence in helping toaddress issues with which our world is faced, particularly in our local communities.
In order to identify the root causes of some of the world's most pressing societal issues andunderstand the role of business in creating lasting impact in these areas, you need to first open
the conversation and listen to those around you.
That’s why we are proud to have developed integrated partnerships with charities such as theKensington & Chelsea Foundation and The Philippine Reef & Rainforest Conservation
Foundation, Inc. to collaborate and lend more than just resources, but expertise and creativity,
to impact people and planet on a global scale.
These partnerships embody our mission and culture at LMAX Group. Programmes that enableengagement from our employees to share their skills, combine technology and further
education to create a fairer, more diverse, market, establishing a legacy for all.

› Positive impact in our communities.
› Utilising our technologies and specialisms.
› Supporting sustainability initiatives(Education, social mobility, employability & the environment).

OUR PARTNERSHIPSCORPORATE SUSTAINABILITY REPORT 2023

Kensington & Chelsea Foundation
LMAX Group is headquartered in Kensington & Chelsea, a London borough among the top
10% most prosperous local economies in the UK.
However, more than one in five of the neighbourhoods are amongst the poorest in Englandand Wales. One in four children are living in poverty and unemployment is at an all-time high.
The disparity experienced in the borough means that many are not able to access theresources needed as they simply do not exist.
That’s why we have partnered with Kensington & Chelsea Foundation since 2020. Throughour sponsorship of specific projects aimed at improving lives and opportunities in our local
community we are able to see tangible results.

We are enormously grateful for our partnership with LMAX Group, which hasenabled us to have a real impact on the lives of some of our most vulnerable anddisadvantaged residents, improving their mental health, education outcomes andemployment opportunities.
LMAX Group has taken a really refreshing approach to understanding the needs
and challenges of the local community, offering not only significant financial
support, but involving staff in meaningful volunteering activities and upskilling local
people for better career opportunities.
Victoria Steward Todd | Director, The Kensington and Chelsea Foundation

OUR PARTNERSHIPSKENSINGTON & CHELSEA FOUNDATION

We are proud to have partnered with Kensington & Chelsea Foundation to:40

6£1,000,000+

PROJECTSFUNDED

SPEAR COHORTS
FUNDED

DONATEDTO DATE

50,0005

RESIDENTS
REACHEDAPPRENTICESHIREDThe Children's Book project
An initiative tackling book poverty by giving every child the opportunity to own their own book.
The Refettorio Felix project
An initiative aimed at increasing dignity and essential resources for vulnerable people in ourcommunity through a sit-down lunch service, sourced from surplus items.
All ChildSupporting at risk young people with tailored development plans to improve social, economic
and academic skills. Tackling issues around identity, empowerment and self-esteem.
The Clement James Centre
An initiative taking a holistic approach to supporting entire families. Offering employment andeducation support, drop-in therapy and adult learning.
Kids On The GreenAn after-school support programme for at risk young people that provides inclusivity andopportunity through art and media mentorship.
Future Men
An early intervention programme focused on developing positive social behaviour andrelationships for boys facing discrimination and disadvantage.

OUR PARTNERSHIPSKENSINGTON & CHELSEA FOUNDATIONThe Spear programme is an initiative aimed at helping young people aged 16-24 years old who
are facing barriers into work or education due to personal circumstance (for example: mental
health challenges, poverty, or criminal record). Through Spear Programme events, such ascompany visits, career workshops, mock interviews, and education, the programme helps tobuild confidence, motivation and the vital skills needed to succeed in long-term employment.
Each Spear Programme event is made possible by LMAX Group employees volunteering theirtime and skills to connect with a young person in their community. These volunteering events
have led to multiple hires across our business, primarily in the technology team due to the
networking capabilities of the mock interview sessions.

Following one of our Spear Programme cohorts, our employees found there was an appetite
amongst these young people to learn how to code using Python (a popular programming
language), which was the foundation of our coding camp.
Hoping these lessons would provide these young people with an introduction to programmingand teach them enough fundamentals to help them progress into more formal training or acareer in computing, our employees created a six-week Coding Camp to be offered to all in theKensington & Chelsea network.
The Coding Camp has now become a bi-annual programme. Our Coding Camp graduates havegone on to explore education and careers in technology, paths they had not previously
considered.
At LMAX Group, we believe in fairer and more inclusive access to capital markets and coding
camp is one way to do this.
We believe technological advancement is critical to this vision. But technology alone won’t get
us there. What will, is our ability to reimagine traditional market structures through the eyes ofa fairer and more equitable tomorrow. We are building fairer markets together.

OUR PARTNERSHIPSCORPORATE SUSTAINABILITY REPORT 2023

PRRCFIThe Philippine Reef & Rainforest Conservation Foundation, Inc.
The Philippine Reef and Rainforest Conservation Foundation, Inc. (PRRCFI) is non-profit
organisation focused on environmental conservation.
Established in 1994 by a group of divers who chose to save and conserve the 48-hectare islandof Danjugan when destructive and unsustainable fishing degraded its reefs. The island hassince become a safe-haven for biodiversity conservation and is nature’s perfect classroom.
Danjugan has 5 lagoons, white sand beaches, bat caves, lush limestone and mangrove forestsand is surrounded by vast seagrass beds, fringing coral reefs and is part of the largest marine
protected area in the Southern Negros Marine Key Biodiversity Area (SNMKBA).
Over the last 30 years, the island has become a safe-haven for not only 947 wildlife species but
also a vital source of inspiration for the future generation. Environmental education is one of
the core strengths of the foundation with the hope of transforming today’s youth to become
tomorrow’s conservationists.
The partnership between PRRCFI is made possible through the UK based charity
Communities for Nature, who connects forward-thinking corporate entities looking to takedirect action on biodiversity, conservation or sustainable development with established NGOs
and co-create projects that tackle conservation and environmental challenges.

OUR PARTNERSHIPS

CORPORATE SUSTAINABILITY REPORT 2023

PROJECT ACE

Project ACE: Actions for Communities and Environment
Since 2022, we have partnered with The Philippine Reef & Rainforest Conservation
Foundation, Inc. to create Project ACE: Actions for Communities and Environment.
Through Project ACE, we are helping protect and sustain an island in the Philippines, Danjugan
Island, for conservation and its biodiversity, raise and train a new generation ofconservationists and citizen scientists, and open opportunities for communities to have asustainable future through education, livelihood and development.
Bulata, the coastal community located across from the Danjugan is made up of nearly 6,000
people who primarily rely on fishing and tourism for their livelihood. Of the community in
Bulata, 50% have self-identified as "Poor" on the economic scale. This means they can’t afford
to feed or send their children to school, have no permanent job, have houses made of lightmaterials, and can’t afford medical needs.
One of the primary goals of Project ACE is to also engage these communities and aid them inbuilding sustainable practices that increase livelihoods and protect their ecosystem.

In 2023 we achieved:› Sponsorship of the education and equipment needs of 5 sustainability scholars› Underwater mapping exercises: for the protection of marine life
› Ecotourism operations education: such as using bamboo for sustainable solutions andecological solid waste management› Giant clam surveys: to monitor and protect this endangered species› Marine and wildlife camps: engaging more than 100 youth in conservation activities› Training of community rescuers: to protect the community› An inaugural sea patrol boat: Bagis II (the local translation of “shark”) was launched to help
patrol and protect the Danjugan Marine Reserve and Sanctuaries and will help to protect
the island from illegal fishing, poaching, and pollution

OUR PARTNERSHIPSCORPORATE SUSTAINABILITY REPORT 2023

Meet our future change-makers!
Our Project ACE Sustainability Scholars are now thriving in their second year of college, they
are also in their second year of scholarship under the project, embodying the transformative
impact of education on empowering communities. Together, we're shaping a brighter
tomorrow through knowledge and determination.
Over the past year, our scholars actively participated in mentorship activities, joined theculminating fluvial parade of ACE year 1, contributed to the establishment of our mangrove
nursery, engaged with visiting scientists, participated in marine and wildlife camps, and took
part in various citizen science training. These collaborative efforts enriched the community'senvironmental awareness, knowledge base, and skills. The mentorship activities not only
celebrated achievements but also showcased a successful partnership fostering holistic
community development.

Ryan Ellanic | BACHELOR OF SCIENCE IN FORESTRY“I took up forestry to learn more about native tree species and to help bring back the forest in
my community that was affected by a typhoon.”
When Ryan finishes his course in forestry, his goal is to help deepen his community’sunderstanding of our natural resources– especially the forests in the surrounding mountains
near where he lives. He wants to do what he can to be part of the protection of the endangered
species in Negros. Due to the climate crisis, he is also concerned about the state of the forests.
The lungs of the earth must be protected, and Ryan is one of its brave defenders.
Kristian Myle Gascon | BACHELOR OF SCIENCE IN AGRICULTURAL AND BIOSYSTEMS ENGINEERING“I hope to help my community by developing and innovating machineries to make farming
easier and more productive.”
Myle lives where sugarcane, rice fields, and small farms are abound. It’s no wonder that her
dream course is one that focuses on innovations that can help farmers. Through thesustainability scholarship, it has been easier for Myle to focus on her studies, as it helps in
paying for her boarding house fees and other bills. She believes that someday, she can greatly
contribute to her community by helping facilitate agricultural advancements.

Rica Mae Cabanero | BACHELOR OF SCIENCE IN AGRIBUSINESS“I would like to study business and agriculture to boost the livelihood of my community.”
Through the scholarship and her engagement with Project ACE in Danjugan Island, Rica
shared that she has become a better version of herself– one that her past self would be proudof. Hailing from Hinoba-an in Negros Occidental, Rica graduated from high school with honors
and went on to pursue a degree in Agribusiness. She is inspired by where she came from,
where the source of livelihood are mainly farming and fishing.

OUR PARTNERSHIPSSUSTAINABILITY SCHOLARSAngelica Nicole Entrealgo | BACHELOR OF SCIENCE IN AGRICULTURAL & BIOSYSTEMS ENGINEERING“I hope to help address the challenges faced by farmers in my community through agricultural
innovations.”
Upon finishing her studies, Angela hopes to help and support her family to give them an easy
and peaceful life with all their needs met. Her hopes for her community is a reflection of this.
She wants to contribute to the agricultural field by designing and constructing equipment andmachinery, for the ease of the people working hard to put food on our plates. Angela also
dreams of coming up with innovative solutions to pollution and other environmental issues.

John Christian Matia-ong | BACHELOR OF SCIENCE IN FISHERIES“I will use my knowledge and skills to teach my community about the importance of fisheries
and their sustainability.”
Born and raised in Bulata by a single mother of three, John believes that the scholarship has
been greatly helping their family financially by supporting his dreams of being a fisheries
professional. He was a Marine and Wildlife camper when he was 15 years old, and now
3 years later, he is part of the regular mentorship program in Danjugan Island that goes withhis scholarship. Upon graduating, John’s desire is to help teach the future generations in his
community regarding the importance of fisheries– balancing the emphasis on sustainability
and livelihood. He hopes that in the future, there are still fishes for his family to catch.

OUR PARTNERSHIPSOUR PLANETCORPORATE SUSTAINABILITY REPORT 2023 OUR ENVIRONMENTAL MANAGEMENT SYSTEM

ISO 14001
The international standard ISO 14001:2015 provides a framework for identifying andmanaging environmental concerns such as the prevention of pollution and preservation of thenatural world. It requires organisations to develop and implement their own environmental
policies and objectives, stressing the importance of continual improvement and meeting legal
obligations.
ISO 14001:2015 requires organisations to have a demonstrable Environmental Management
System that evidences:› The roles and responsibilities of top managers’ involvement in the implementation,

maintenance, and continual improvement of the environmental management system.

› The organisations specific context, risks, and opportunities.
› The awareness and competency of employees engaged in the business’s ESG strategy.
› The process for monitoring, measuring, analysing, and evaluating our environmental

management system and how to address any non-conformities through corrective actions.

Adopting the ISO 14001:2015 standard for environmental management further
demonstrates our commitment to measure and improve our environmental impact to support
the global greenhouse gas emissions target of 1.5 degrees as prescribed by the United
Nations. We look forward to extending the scope of our ISO 14001:2015 certification to
include all offices by 2025.

LONDONSINGAPORE
NEW YORKALL OTHERLOCATIONSACHIEVEDIN SCOPE

IN SCOPE

Q1 2024

Q4 2024

ONWARDOUR PLANETCORPORATE SUSTAINABILITY REPORT 2023

REDUCING WASTE

In 2023 we launched our global responsible waste and single-use
plastic policies in line with our environmental management system.
The purpose of this policy is to embed a culture of responsibility within the organisation andimplement circular design principles in operational workflow. As we continue to grow thesepolicies we will report on impact in terms of waste recovered year on year.
Responsible waste policy
This policy sets the principles for waste management and how to mitigate unnecessary
impacts. It outlines the LMAX Group commitment to positive environmental impact throughour waste hierarchy. The waste hierarchy ranks waste management based on its
environmental impact. Careful consideration will be given to preventing waste in the firstplace. In the unavoidable case that waste is created, this policy will provide guidance on how to
prepare waste for re-use, recycling, recovery, and last of all disposals.
Single-use plastic policy
Sets the principles for our single-use plastic use to achieve our sustainability goals and targets.
Single use plastic causes significant environmental damage and harm to wildlife. An average
employee can use over 1,000 pieces of single use plastic per year at work alone. Considering it
takes a single plastic cup about 450 years to disintegrate in the environment, single use plastic
is creating a long-term challenge to the world we live in. As part of this policy we’ve committed
to remove single-use plastic from all key categories of spend in our supply chain by 2025.
Electrical waste
Due to the nature of our industry, electronic waste is inevitable. We ensure all our electronic
waste is handled according to Waste Electrical and Electronic Equipment Directive (WEEE)
and what can be recycled or salvaged for future use is handled according to our Responsible
Waste Policy. That’s why we partnered with global charities like Turing Trust to save over
2 tonnes of electrical waste from landfills. The Turing Trust refurbishes IT equipment, installinga range of educational software and provides it to those who need it most. Since 2009, they
have enabled access to computers for over 252,000 students across Africa, Asia and the UK.
Office refurbishments
This year we completed office refurbishments in our London and Singapore hubs. These
refurbishments were focused on enhancing our space to better collaborate, focus andsocialise. Throughout the processes we kept sustainability at the heart of the project. We
ensured that all materials were selected with consideration given to their sustainableattributes and all unwanted items were recycled according to our responsible waste policy.
For these measures we have received the SKA Silver Rating for our London office and are in
the process of receiving a Green Mark Certification for our Singapore location.

OUR PLANETCORPORATE SUSTAINABILITY REPORT 2023

Solving the climate equation
Reaching planetary decarbonisation goals requires that all businesses track and report theiremissions. Currently, only 25% of global Greenhouse Gas Emissions are tracked and managed.
As a business, we have made a conscious effort to not just talk the talk. We are committed todoing the work.
That’s why LMAX Group has embarked on our own decarbonisation journey in partnershipwith Greenly.
Our scope
We choose as an organisation to review our impact on as granular level as possible in order toposition sustainability at the forefront of all our decision-making. That’s why we report on notjust our direct emissions but across all scopes of our value chain.

Scope 1
Direct emissions

GHG emissions generated directly by
the organisation and its activities.
Examples:combustion of fossil fuels,
refrigerant leaks, etc.

Scope 3
Other indirect emissions

Emissions related to theorganisation’s upstream anddownstream operations and activities.
Examples:transportation, purchased goods andservices, sold products, etc.

OUR PLANET

Scope 2
Indirect emissions related toenergy consumption
Emissions related to theorganisation’s consumption ofelectricity, heat or steam.
Examples:
electricity consumption, etc.

GREENHOUSE GAS REPORTING

Our methodology
We used the official and approved GHG Protocol methodology; GWP 100. To computeemissions, we measured our activity, applied the right emission factor and got the total ofemissions.
Activity metrics x emissions factors = CO2 Eq. emissions
Our emission factors come from:

Our activity metrics
Come from a combination of activity-based and expense-based data was used. Activity-based
data is more accurate than expense-based, it takes longer to gather but gives you a more
precise view of the carbon emissions. That is why we prioritised activity-based data as ourprimary source for our assessment. In the case that the activity-based data was not available(due to a lack of retrospective tracking) we reverted to expense-based.

› Accounting files.
› Employee survey.
› The awareness and competency of employees engaged in the business’s ESG strategy.
› Buildings and energy consumption data (including RECs).
› IT inventory, SaaS and software data, Cloud usage and Data Centre data.
Our disclosure approach
Market-based v location-based: We have chosen to disclose on a Market-Based approach.
Market-based Method of calculating CO2e emissions linked to electricity consumption, using
emissions factors related to the supplier from whom the company buys its electricity. In
comparison to location-based which uses emissions factors linked to the average electricity
mix in the country where the company is located.

OUR PLANETCORPORATE SUSTAINABILITY REPORT 2023

EMISSIONS SUMMARY

Total emissions of LMAX Groupby scope (% tCO2e)

Scope 1 & 2›

132 tCO2e› 0.5 t/employee ›1.1 t/M£

Scope 3›

4.8 ktCO2e› 19 t/employee ›41 t/M£

Total›

4.9 ktCO2e› 19 t/employee ›42 t/M£

Scope 1

1.5%

Scope 2

1.2%

Scope 3

97.3%

4.9k

LMAX GrouptCO2e/employee

tCO2e
Scope 1

0.3

Scope 2

0.2

Scope 319

We are proud to report that our data centre usage for2022 is powered by 100% Renewable Energy.

OUR PLANET

Potential for
reduction

EMISSIONS BY ACTIVITY

Total emissions of LMAX Groupby activity (% tCO2e)
LMAX GrouptCO2e

Per employee
tCO2e/employee

Travel and commute

1.7k

6.4

Technologies and services

1.1k

4.4

Services purchase

1.1k

4.3

Activities and events

321

1.2

Product purchase

205

0.8

Food and drinks

199

0.8

Others*294

1.1*assets, energy, waste, etc.
Sector benchmark: 14 tCO2e/employee | scope 1, 2 & 3
It should be noted that for the year 2022, LMAX Group was over the benchmark for ourindustry in comparison to 53 companies in our sector (19 t/employee in comparison to
14 t/employee).
These emissions are our baseline before any intervention or formal sustainability strategy.
4.9 ktCO2e is equivalent to› 2.9k London to New York round trips*› The annual emissions of 410 British people*› The amount of CO2 sequestered annually by 449 hectares of growing forest**Sources: Labos1Point5, ExioBase, French National Forests Office
Results subject to the correct categorisation and validation of expenses of
LMAX Group Categorisation score of 87% on this reportOUR PLANETCORPORATE SUSTAINABILITY REPORT 2023

FURTHER ACTIONSAt LMAX Group, we are striving to align our strategy with theParis Agreement and meet the challenges of Net Zero.
To achieve this, we commit to building a strategy to reduce our GHG emissions annually acrossthe supply chain and reach reduction rates compatible with 1.5 degrees C of total warming
over the next 10 years.
The 2022, carbon emission report completed by Greenly is our first exercise in assessing ourenvironmental impact as an organisation and is the baseline before any intervention or formal
strategy from the Corporate Sustainability function. Looking forward to 2023, 2024 andbeyond, we will review our processes of data collection to continuously improve and refine ourmethodology to ensure highest level of accuracy in our results.

Focus areas for 2024

› Review our business travel strategy to prioritise low-carbon options and videoconferencing.

› Review our digital emissions to make reductions in our marketing mix, data centres, cloudstorage, etc.

› Review and enhance our purchasing policies and supplier review process.
› Implement energy efficiency programmes globally.
› Streamline our direct emission tracking.

OUR PLANETIN CONCLUSION

CORPORATE SUSTAINABILITY REPORT 2023

IN CONCLUSION

The LMAX Group Corporate Sustainability Report encompasses all of the non-financial
performance metrics for the group.
For more information on our financial performance please visit the LMAX Group website andreview our annual report.
For any further information on the topics covered in this report, please see our Corporate
Sustainability page or email sustainability@lmax.com.

LMAX Exchange Group Limited, Yellow Building, 1A Nicholas Road, London W11 4AN
www.LMAX.com | info@LMAX.com | +44 20 3192 2555
© 2024 LMAX Group