OPEN MAKES MORE POSSIBLE

Partnering
to securea sustainable
futureLONDON

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Contents
Introduction

03

Governance33

CEO introduction

04

Business conduct

34

Sustainability approach

05

Information security and data privacy

36

Sustainability framework

06

Government relations

37

Sustainability governance07

Sustainability risk management

38

Sustainable finance and investment

08

Products and solutions

09

Market and policy engagement

12

Climate change

14

Climate risk overview

15

Transition risk assessment

16

Physical risk assessment

18

Progress against our targets

20

Nature and carbon offsets

22

People23

Culture, values and engagement

24

Learning and development

25

Equity, diversity and inclusion

26

Pay equity

27

Wellbeing

29

Health and safety

30

Human rights

31

Community

32

Skills and competence39

Supply chain

40

Glossary41

See our companion Sustainability Databook for all performance figures
OPEN MAKES MORE POSSIBLE

London Stock Exchange Group plc
Group Sustainability Databook 2023

Measuring
our sustainability
performance

Who we are
LSEG is a leading global financial markets infrastructure and data provider.
We play a vital social and economic role in the world’s financial system.
With our trusted expertise and global scale, we enable the sustainablegrowth and stability of our customers and their communities.
Our purpose
Driving financial stability, empowering economies and enabling customers
to create sustainable growth.
Our businessWe are leaders in data and analytics; capital formation and trade execution;clearing and risk management. Our businesses are discussed in depth in
our Annual Report and Accounts on pages 34-43.
Our customers
We are dedicated partners to our customers across the entire trade
lifecycle, with an open model and commitment to excellence.
We serve 45,000+ customers in 170 countries.
Our people
Our 25,000+ strong workforce are based in over 60 countries. The breadthof our offering requires our people to have a diverse range of specialisms,
from capital markets to data, technology, clearing, risk and beyond.

Other reports, policies and documents
Other documents which should be read alongside thisAnnual Sustainability Report include:— LSEG Sustainability Databook— LSEG Annual Report and Accounts 2023
— Modern Slavery Statement— Sustainability-related policies, statements and reporting frameworks
available on lseg.com

Further information on London Stock Exchange Groupcan be found at: www.lseg.com
02

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernanceIntroduction
In this section

03

CEO introduction

04

Sustainability approach05

Sustainability framework

06

Sustainability governance07

London Stock Exchange Group plc
Annual Sustainability Report 2023

GlossaryIntroduction

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Climate change

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Glossary

CEO introduction
We are also deeply committed to using our position at the heart of financial
markets to contribute to the development of effective policy frameworks. During
the year we supported the development of the UK’s Transition Plan Taskforce(TPT) Disclosure Framework, which could play a key role in facilitating moreconsistent climate-related information and transition planning across the economy.
We also provided guidance throughout the development of the Net-Zero Data
Public Utility (NZPDU), as a member of the Technical Advisory Board, which waslaunched at COP28. This global, centralised and open repository of verifiableprivate sector climate transition-related data will enable a wide range ofstakeholders to more effectively monitor and advance progress toward net zero.

As we look to 2024, there ismore to be done to securea sustainable future, andLSEG is committed to doing
its part every step of the way.
David Schwimmer
Chief Executive Officer

The vital social and economic role that LSEG plays is key to enabling sustainablegrowth for our customers, partners and the communities we operate in. During2023, we focused on delivering our sustainability strategy through three channels:
market engagement and policy advocacy; products and services; and operations.
This year, we supported significant efforts to drive an effective climate transition.
In June, we hosted the International Sustainability Standards Board (ISSB) at ourheadquarters in London to mark the launch of its inaugural sustainability standards,
IFRS S1 and IFRS S2. At the event, the Principles for Responsible Investment,a network of more than 5,000 financial institutions, joined LSEG in calling forthe global, economy-wide adoption of the ISSB’s standards by 2025.
04

2023 was a significant year for capital allocation to the green economy and
LSEG played a major role in growing this part of the market. By the end of the year,£232 billion had been raised by bonds on our Sustainable Bond Market since
inception and 110 companies and funds had the London Stock Exchange’s Green
Economy Mark. FTSE Russell also launched the UK ESG-Risk Adjusted IndexSeries and the FTSE Fixed Income EU Climate Benchmarks series to help
investors integrate sustainability into their investment strategies.

Percentage of Scope 3 (purchased goods and services) emissions witha science-based target

44%£232bnCapital raised on our Sustainable Bond Market since inception

While LSEG is very committed to enabling sustainable growth through our external
initiatives and offerings, we also have a strong focus on embedding sustainability
within our business. LSEG’s new values, which were launched in September, willfurther strengthen our culture and in 2023, we exceeded our goal of maintaining
a minimum of 40% women in our senior leadership community, closing the year
at 42%. However, more progress is needed with respect to underrepresented
ethnic and racial groups, in particular in our leadership community.
With respect to our climate transition plan we have engaged with suppliers
extensively, ending the year with 44% of our Scope 3 emissions (purchased goods
and services) covered by a science-based target, against our 2026 goal of 67%.
In relation to operational emissions, we’ve seen a decrease in our Scope 1 and 2
emissions compared to 2022, but an increase in emissions from businesstravel and employee commuting. However, we remain well positioned relative
to our 2030 targets and continue to take steps to reduce our emissions fromour operations.
I am pleased with our progress this year but as we look to 2024, there is more to
be done to secure a sustainable future, and LSEG is committed to doing its partevery step of the way. We look forward to updating you on our progress.
David Schwimmer
Chief Executive Officer

42%

Proportion of women in senior leadership roles

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

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Climate change

PeopleGovernance

Glossary

Sustainability approach
Our approach to sustainability is guided by LSEG’s purpose to drive financial
stability, empower economies and enable customers to create sustainablegrowth. This shapes everything we do and helps us to deliver long-term value
for our stakeholders.

Key sustainability issues
Description

Relevance

We engage with our stakeholders – including our customers, colleagues,
suppliers, investors and regulators – to understand what sustainability issues
are most important to them. This helps us evolve our approach, to ensure it
remains focused on material topics.

Talent attraction and retention
LSEG’s approach to recruitment and retention, including
learning and development opportunities and activities
that support colleague satisfaction and foster a positive
workplace culture.

Our ability to attract and retain talent impacts the effective
execution of our business strategy. Creating a culture andworking environment where our colleagues can thrive isvital to the long-term success of the business.

Climate risk management
LSEG’s preparedness for the impacts of climate changeon the business including its response to climate-relatedrisks and opportunities, understanding and preparedness
for impacts (financial and economic loss, physicalpressures on assets and supply chains) and response
to legislation.

Management of physical and transition risks which could
create operational costs, regulatory costs and business
continuity issues. Climate change also presents
opportunities for the Group, most notably to provide
sustainable finance and investment products andsolutions for customers.

Sustainable finance and investment
LSEG’s ability to support our customers' need forsustainable finance and investment solutions including
sustainability and climate data, analytics, indexes andcapital raising.

LSEG’s customers' needs are evolving in relation tosustainability, as they require market infrastructure anddata to help them achieve their sustainability goals. This
creates an opportunity for LSEG to evolve its products
and solutions and be a trusted partner to our customers.

Information security and data privacy
LSEG’s handling of customer and commercial data ina secure and safe way, including management of LSEG’s
exposure to privacy regulations and information security.

Safeguarding customer data and ensuring information
security helps to protect the Group against the riskof financial crime, bribery and corruption andreputational risk.

Key sustainability issues
To help us identify priority sustainability issues we commissioned an independent
materiality assessment in 2021. This sought views from key stakeholder groups
including customers, colleagues, suppliers and investors. It also reflected a wider
review of the regulatory landscape applicable to LSEG. Further detail about theassessment can be found on page 8 of our Annual Sustainability Report 2021.
Material sustainability issues are those which can affect our long-term value
creation as they can affect our business strategy, revenues, operating costs,
business continuity and reputation. We are updating our materiality assessment,
considering the impact of LSEG on society and the environment, as well as therisks and opportunities to our business from sustainability. We will share theresults of this in future reports.
A full list of sustainability issues is included in the 2021 report, however thefour of greatest significance include talent attraction and retention, climate risk
management, sustainable finance and investment, and information security
and data privacy.

05

Further detail

London Stock Exchange Group plc
Annual Sustainability Report 2023

See page 25

See page 14

See page 8

See page 36

Introduction

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Climate change

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Glossary

Sustainability framework

Building on our materiality assessment, our sustainability framework
identifies three priority themes where we seek to amplify our impact throughour customer solutions, market engagement, operations and supply chain
and our community work. Within each theme we have three supporting
objectives. These are delivered through a blend of our products andsolutions, market engagement and policy advocacy, and our operations.

Priority themes

Supporting objectives

Accelerating the justtransition to net zero
LSEG uses its market
position, capabilities,
products and services
to support and acceleratea just climate transition.

Transition capital
Enable greater access to capital for climate transition.

Enabling the growth of
the green economy
LSEG has a pivotal role inhelping capital to flow towards
sustainability solutions togrow the green economy.

Data and disclosure
Improve information needed to underpin
climate transition.
Reducing our impact
Fulfil our science-based climate targets.
Green finance
Provide the market infrastructure needed tofinance sustainability solutions.
Research and data
Leverage our research and data capabilities tosupport the growth of the green economy.
Engagement
Support market collaboration, innovation and public
policy to scale green economic growth globally.

Creating inclusive
economic opportunity
We empower people andcommunities by championing
inclusion and creating accessto education, employment
and enterprise.

06

Products & solutions

Inclusive culture
Embed an inclusive culture at LSEG thatvalues diversity.
Inclusive markets
Promote inclusion and diversity in the market
more widely.
Economic empowerment
Empower communities through education,
employment and enterprise opportunities.

London Stock Exchange Group plc
Annual Sustainability Report 2023

Market engagement &policy advocacy

Operations

Introduction

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Climate change

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Glossary

Sustainability governance
LSEG has established a robust governance structure which oversees theGroup’s sustainability approach.
LSEG Board
The Board is composed of the Chair, two Executive Directors, seven independent
Non-Executive Directors and two Non-Executive Directors. More detail about
the Board can be found in the Annual Report and Accounts. Sustainability isembedded into the Matters Reserved for the Board and typically the Board
agenda includes sustainability at least twice a year.
The LSEG Board has ultimate oversight and approval of the organisation’ssustainability strategy, including its management of climate-related risks andopportunities and its climate transition plan. The Board is responsible for holding
executive management to account for the delivery of its sustainability strategy.
During 2023 sustainability was on the Board agenda twice, covering key market
trends, progress against our sustainability strategy and sustainability reporting.
Board Risk Committee
The Board Risk Committee is responsible for overseeing and advising the Boardon the current risk exposures and profile of the Group including sustainability risks,
emerging risks and future risk strategy and risk culture. The Terms of Reference
can be found here: https://www.lseg.com/en/about-us/corporate-governanceDuring 2023, sustainability was on the Risk Committee agenda twice,covering sustainability risk and greenwashing risk.

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Board Audit Committee
The Board Audit Committee is responsible for overseeing the Group’s
corporate reporting which includes sustainability-related disclosures.
In 2023, the Audit Committee received training on climate-related reporting
requirements and future regulations. The Terms of Reference can befound here: https://www.lseg.com/en/about-us/corporate-governance

Executive Risk Committee
This is a sub-committee of the Executive Committee, which is responsible forthe consideration and oversight of risk matters, including those which relate tosustainability. The Committee focuses on risk culture, risk profile oversight, risk
policy oversight, risk appetite and risk disclosure and reporting. The Committee
is chaired by the Group Risk Officer.

During 2023, sustainability was on the Audit Committee agenda twice, covering
climate-related reporting and third-party assurance of sustainability reporting.

During 2023, sustainability was on the Executive Risk Committee agenda twice
covering greenwashing and the Sustainability Risk Framework.

Board Remuneration Committee
The Board Remuneration Committee is responsible for overseeing
LSEG’s approach to linking executive compensation to sustainability
as a Group Strategic Objective (GSO). The Committee is chaired byan independent Director. The Terms of Reference can be found here:
https://www.lseg.com/en/about-us/corporate-governanceGroup Sustainability Committee
This is a sub-committee of the Executive Committee, responsible for providing
direction and oversight of the Group’s overall sustainability strategy andprogrammes, including LSEG’s Climate Transition Plan. The Committee
incorporates strategic input from the Executive Committee, to which theCommittee reports. It oversees and helps coordinate the work undertaken
across the Group to ensure the Group’s sustainability objectives are achieved.
The Committee is chaired by the Chief Risk Officer. The Committee meetsat least four times a year, or more frequently as required. The Committee reports
to the Executive Committee half yearly and the Board at least twice a year.

Board Nomination Committee
The Board Nomination Committee is responsible for ensuring the Board
retains an appropriate balance of skills to support the strategic
objectives of the Group. The Terms of Reference can be found here:
https://www.lseg.com/en/about-us/corporate-governance
Executive Committee
The Executive Committee is responsible for setting the Group’s sustainability
ambition and strategy, monitoring progress and approving sustainability reporting.
The Committee is chaired by the Group CEO. The Executive Sponsor for
Sustainability is the Group Corporate Affairs and Marketing Officer. During 2023,
sustainability was on the Executive Committee agenda three times covering
sustainable finance strategy, sustainability reporting and Group and Divisional
Strategic Objectives.

Climate Transition Steering Committee
The Climate Transition Steering Committee provides strategic direction andoversight of the Group’s climate transition strategy. It monitors progress against
LSEG’s climate-related policies, objectives and targets and as appropriate
recommends updates to the Group’s climate strategy. The Committee isco-chaired by the Group Head of Sustainability and the Group Head of Operations
and Corporate Functions. The Committee meets monthly and reports into theGroup Sustainability Committee.

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Sustainable finance and investment
In this section

08

Products and solutions

09

Market and policy engagement

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London Stock Exchange Group plc
Annual Sustainability Report 2023

GlossaryIntroduction

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Climate change

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Glossary

Products and solutions
LSEG seeks to meet customers' sustainability needs through the provision ofsustainable finance and investment products and solutions which span data,
analytics, indexes, capital raising and corporate services. For over 20 years,
we have been playing a leading role in sustainable finance – bringing together
expertise powered by transparent, robust industry data, for our customers andmarket participants.
Our customers can access comprehensive cross-asset data and analytics toinform their decision-making, manage risks, raise capital and navigate newsustainability regulations. Examples of some of our sustainable finance andinvestment products and solutions are shown in this section.
Sustainability data
We provide sustainability data on ESG topics covering equity, corporate debt,
private markets, sovereigns, funds and other asset classes.
Our climate and ESG data sets and analytics solutions are designed to informbusiness and investment decision-making covering public equities, as well
as funds, fixed income and sovereigns, renewables and carbon markets dataand sustainable finance bonds data. Our solutions focus on delivering transparent
and robust data and analytics across a range of sustainable finance andinvestment challenges, including climate transition and regulation.
Building on our extensive multi-asset class data sets, we provide:— ESG data on 16,000 public and private companies— ESG data on 700,000 bonds— Green revenues— Lipper funds solutions— EU taxonomy and SFDR solutions to support regulatory reporting requirements; and16,000ESG data on public and private companies

LSEG Workspace is a client-centric desktop solution providing access to financial
data, news and content in a highly customised workflow experience, throughwhich LSEG provides a rich ESG data set as well as analytical and regulatory
reporting capabilities.
FTSE Russell’s Green Revenues 2.0 data model enables a better understandingof the green economy, classifying green products and services with environmental
benefits, and assessing companies’ revenue from them. The data model is applied
to over 98% of total global (equity) market capitalisation, capturing over 18,000
small, medium and large public companies across more than 50 developed andemerging markets.

18,000

Our green revenues data model is highly aligned with the EU taxonomy, and in
2023 we published our fourth annual update on the size of the green economy
globally. LSEG's data and analytics division also provides customers with an EU
taxonomy data solution.

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Other examples include the FTSE EU Climate Benchmark Index series, where
the weights of index constituents vary to account for risks and opportunities
associated with the transition to a low carbon economy. Similarly, FTSE Russell’s
climate sovereign indexes – the Climate WGBI/EGBI range – capture transition,
physical and resilience risks related to climate transition, thereby enabling fixedincome investors to manage these exposures at the portfolio level. To gain
exposure to the green economy, investors can access the FTSE Environmental
Markets Index Series and FTSE Russell Green Revenue Indexes.

Green revenues: number of companies covered

FTSE Russell ESG indicesSustainability-related indices
FTSE Russell maintains a growing range of ESG indicies, with 121 as at the end of2023. These include the FTSE TPI Climate Transition Index series, which capturesassessments of corporate decarbonisation commitments by the Transition Pathway
Initiative (TPI), and exposure to green revenues and carbon risks.

— Beyond Ratings covering sovereign ESG assessment and risk management.

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London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

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Glossary

Products and solutions continued
Capital raising
We provide trading venues and markets to enable sustainability-related
capital raising.
Sustainable Bond Market: Our dedicated Sustainable Bond Market (SBM) offers
issuers a wide range of opportunities to raise capital and improve access, flexibility
and transparency for investors. The SBM has a number of segments including
Green, Sustainable, Social and Transition. In 2023, over £64 billion of capital
was raised by new and existing bonds on the SBM through 119 issuances.
In total, since inception, £232.3 billion has been raised by bonds on the SBM.
Issuers can raise capital on the Transition segment to fund climate transition plans.
Eligible issuers must publish a transition framework prepared in accordancewith the ICMA Climate Transition Finance Handbook; disclose in line with theprinciples outlined by the Task Force on Climate-related Financial Disclosuresor another global recognised standard, or commit to do so within a reasonable
timeframe; confirm their commitment to the goals of the Paris Agreement,
including approved targets to achieve net zero emissions by 2050; and commit
to report annually on their transition performance.

Sustainable Bond Market
Sustainable Bond Market

Issuer-level classification
Bonds by issuers whose core business activity isaligned with the green economy or where thesustainable nature of the instrument is not basedon distinct and predefined use of proceeds.

Transition
Transition bonds are a subset of sustainabledebt instruments whereby the issuer is raisingfunds in debt markets for climate and/or justtransition-related purposes.

Certified Use of Proceeds*
Independent external review:— Second Opinion.
— Third Party Verification aligned with ICMA
Principles or other eligible standards.

They can take the following forms:— Use of Proceeds instruments aligned to
the Green and Social Bond Principles or
Sustainability Bond Guidelines.
— General Corporate Purpose instruments aligned
to the Sustainability-Linked Bond Principles.
Issuers must demonstrate credibility throughpreparation of a transition framework aligned to
guidelines set out in the Climate Transition FinanceHandbook on a best-efforts basis.

Green Sukuk: Closely resembling green bonds, Green Sukuk is a Shari’ahcompliant financial instrument which provides a significant opportunity within
Islamic finance to raise funds by sovereign nations, financial institutions andcorporates for projects that have a positive climate impact. As a global centre forIslamic finance, there has been growing activity and appetite for Green Sukukissuance in London’s markets.
Green Revenues
Issuers demonstrating
they have greater than orequal to 90% of revenues
derived from green
revenues as outlinedin the London Stock
Exchange's criteria.

Sustainability-Linked
Bonds
Forward looking
performance based
bond instruments where
the issuer is committing tofuture improvements insustainability outcomes
within a predefined
timeline, in accordancewith relevant international
standards.

GreenThe proceeds will be
exclusively applied tofinance projects with clear
environmental benefits.

Sustainability
The proceeds will be
exclusively applied tofinance a combinationof both Green andSocial Projects.

* Please refer to the SBM Factsheet for detailed technical information
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London Stock Exchange Group plc
Annual Sustainability Report 2023

SocialThe proceeds will be
exclusively applied tofinance in part or in full new
and/or existing eligible
Social Projects.

Introduction

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Products and solutions continued
Voluntary Carbon Market: The London Stock Exchange Voluntary Carbon Market(VCM) was launched to address the urgent need to scale global voluntary carbon
markets. While the VCM is at an early stage of its development, it is a potentiallysignificant way to enable funds and operating companies to raise capital to bechannelled into emissions reduction projects that are expected to generate
carbon credits.
We see several benefits for corporate decarbonisation plans, as companies could
offset emissions through investing in VCM funds or in companies that generate
carbon credits as dividends. We require specific disclosures related to project
development and performance within our admission and disclosure standards
which can help investors understand the investment they are making.
Corporate services
We provide a range of services for corporate customers, for example the
Climate Governance Tool is available to over 450 corporates listed on the
London Stock Exchange. This tool provides an assessment of a company’s
approach to climate management relative to peers, alongside access toresources to help them enhance and develop their climate management.
We also provide companies and funds with the Green Economy Mark which
is provided to issuers where 50% or more of their revenue is derived fromenvironmental products and services. In 2023, we published the new cohort ofcompanies and funds receiving the Green Economy Mark, which now total 110,amounting to £159.8 billion market capitalisation, equivalent to 3% of the equity
listed on the London Stock Exchange.

In 2023, we published the fourth edition of our Green Economy Report, including insights into the role of financial markets in the global green economy, trends
in sustainable investment in key sectors and technologies, and details on how investors are shifting their focus towards sustainable investment strategies.

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London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

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Climate change

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Glossary

Market and policy engagement
LSEG plays an active role in shaping the policy and operating environment.
A particular area of focus for us is around corporate sustainability disclosure;in 2022, we published our policy recommendations on the adoption of global
reporting standards. The recommendations can be found on lseg.com.

Chapter Zero
We are working with Chapter Zero to support non-executive directors toengage more deeply in climate transition planning. The LSEG Foundation
has funded the development of a Transition Plan toolkit for non-executives
which was launched in November 2023 and which can be found here:
https://chapterzero.org.uk/spotlight/spotlight-transition-planning/

LSEG is also involved in numerous groups which support global policy andmarket developments.
Glasgow Financial Alliance for Net Zero
We continued to be involved in the Glasgow Financial Alliance for Net Zero
(GFANZ) which is a coalition of financial institutions committed to supporting
the global economy to transition to net zero. As a founding member, LSEG plays
an active role in GFANZ workstreams and LSEG's CEO, David Schwimmer,
is a member of the GFANZ Principals Group, which sets the strategic direction
and priorities and monitors progress.
Net Zero Financial Service Providers Alliance
We also continued our membership of the Net Zero Financial Service Providers
Alliance (NZFSPA) which is accredited by the UN Race to Zero campaign andis a member of GFANZ. This encompasses a global group of financial service
providers committed to supporting the goal of net zero in line with the ambition
to limit the global temperature increase to 1.5°C from pre-industrial levels.
As a diversified financial market infrastructure and data provider, LSEG’s
engagement in the Alliance is coordinated across several workstreams
including Research & Data, Indexes, and Stock Exchanges.
During the year the Alliance worked to establish frameworks for target setting
in relation to products and services, and engagement, aligned with net zero.
Alliance members are required to interpret the frameworks into company-specifictargets. We aim to publish details of targets in 2024.
Transition Pathway Initiative
We support the work of the Transition Pathway Initiative (TPI) which assesses
the climate transition plans of large corporations. FTSE Russell provides the data
which creates the TPI climate management quality score and the LSEG Foundation
provided a donation to establish the TPI Global Climate Transition Centre within
the London School of Economics and Political Science. This funding is helping
to scale TPI research to cover thousands of companies around the world.

12

Further work to support the usage of the toolkit and implementation by corporateboards will continue in 2024.

LSEG continued its participation with the Transition Plan Taskforce (TPT) todevelop the gold standard for private sector climate transition plans in the
UK which was launched and hosted at our London offices in October 2023.

Net Zero Financial Service Providers Alliance ambition to limit the
global temperature increase to

1.5°C

Climate Investment Summit
We hosted the 2023 Climate Investment Summit held during London Climate
Week. This brought together key members of the Climate Investment Coalition,a group of Nordic and UK pension funds which set out their own climate
commitments at COP26 involving allocating $130 billion to clean energy andclimate investments by 2030.
International Sustainability Standards Board
As a keen advocate of the International Sustainability Standards Board (ISSB)
standards we were honoured to host the launch of these standards (IFRS S1 andS2) with ISSB in June 2023. These standards mark an important milestone forcorporate reporting. We believe that sustainability disclosure rules can be criticalin unlocking information that the financial sector needs to drive the global
transition. The ISSB standards offer the potential for more consistent, interoperable
reporting globally. LSEG advocates for the adoption of ISSB standards, a view thatwas set out in our policy recommendations.
Transition Plan Taskforce
LSEG continued its participation with the Transition Plan Taskforce (TPT) todevelop the gold standard for private sector climate transition plans in the UK,
which was launched and hosted at our London offices in October 2023.
LSEG proactively supports TPT through our membership of the Steering Groupand the Delivery Group, and through co-chairing the work of the sector-specificguidance that was launched in November 2023.

Climate Investment Coalition commitments to clean energy andclimate investments$130bnLondon Stock Exchange Group plc
Annual Sustainability Report 2023

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Market and policy engagement continued
UK Voluntary Carbon Markets Forum
LSEG is represented on the UK Voluntary Carbon Markets (VCM) Forum which
supports the implementation of the recommendations of the global Taskforce on
Scaling Voluntary Carbon Markets (TSVCM), ensuring that the UK remains a global
hub for voluntary carbon markets. The Forum seeks to provide a high integrity
market ecosystem that aims to develop verifiable and effective offset solutions.

Climate Financial Risk ForumThe Climate Financial Risk Forum (CFRF) is an industry forum convened by the
PRA and FCA which aims to build capacity, share best practice and develop
practical tools and approaches to address climate-related financial risks.
The Forum is chaired by the Bank of England and LSEG is represented on
the CFRF alongside banks, insurers, asset managers and pension funds.

Green Technical Advisory Group
LSEG was also a member of the Green Technical Advisory Group (GTAG) until
June 2023 when it concluded its two-year mandate. GTAG was the technicalexpert group advising the UK Government on market, regulatory and scientificconsiderations for developing and implementing a UK taxonomy which facilitates
more informed investment decisions. The taxonomy will be a common framework
defining what investments can be classed as environmentally sustainable.

ESG Data and Ratings Working Group
LSEG was also a member of the ESG Data and Ratings Working Group (DRWG)
that was convened by the Financial Conduct Authority (FCA) and was represented
on the four person steering committee. Over the course of 2023, the Groupdeveloped a voluntary Code of Conduct for ESG Data and Ratings providers
which was published in December 2023. It is based very closely on IOSCO's
recommendations and aims to provide a template that can be used internationallyto avoid diverging codes across jurisdictions.

Green Finance Industry Taskforce
LSEG was also a member of the Green Finance Industry Taskforce (GFIT) until
it concluded its mandate in April 2023. This was convened by the Monetary
Authority of Singapore, to provide recommendations on the development ofa green taxonomy and improving disclosure in Singapore.
Green Finance Institute
The Green Finance Institute (GFI), of which LSEG is an active member, is a UK-led
initiative to accelerate the transition to a clean, resilient and environmentally
sustainable economy by channelling capital at pace and scale towards
real-economy outcomes that will create jobs and increase prosperity for all.
Green and Sustainability Sukuk
LSEG is a founding member of the High-Level Working Group (HLWG) on Greenand Sustainability Sukuk with HM Treasury, the Islamic Development Bank, theRepublic of Indonesia and the Global Ethical Finance Initiative. The objectiveof the HLWG is to develop and promote green and sustainable Sukuk through ourmarkets and data, allowing governments, multilateral agencies and companies toaccess finance in a manner consistent with their faith and values.
Net-Zero Data Public Steering Committee
LSEG is a member of the Net-Zero Data Public Utility (NZDPU) Steering Committee,
working with the United Nations and market participants, to address data gaps,
inconsistencies, and inaccessibility that slow climate action by making the data
openly available to all.

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UN Sustainable Stock Exchanges Initiative
LSEG has been a member of the UN Sustainable Stock Exchanges (SSE) initiative
since 2014. The SSE Initiative is a UN Partnership Programme organised by theUnited Nations Conference on Trade and Development (UNCTAD), the United
Nations Global Compact, the United Nations Environment Programme FinanceInitiative (UNEP FI) and the UN-supported Principles for Responsible Investment(PRI). The SSE’s mission is to provide a global platform for exploring how
exchanges, in collaboration with investors, companies (issuers), regulators,
policymakers and relevant international organisations, can enhance performanceon ESG issues and encourage sustainable investment, including the financing of
the UN Sustainable Development Goals. The SSE seeks to achieve this mission
through an integrated programme of conducting evidence-based policy analysis,
facilitating a network and forum for multi-stakeholder consensus building, andproviding technical assistance and advisory services.

LSEG has been a member of the UN Sustainable Stock Exchanges (SSE)
initiative since 2014. The SSE Initiative is a UN Partnership Programmeorganised by UNCTAD, the UN Global Compact, UNEP FI and the PRI.

Future of Sustainable Data Alliance
Originally set up by LSEG (Refinitiv) at the World Economic Forum in 2020, theobjective of the Future of Sustainable Data Alliance (FoSDA) is to strengthen theevolution of sustainable finance by providing insights and data-driven expertise topolicy makers, standard setters, regulators and market participants. Designed as
an independent body, it represents the sustainable data and analytics ecosystemand has a wide range of data providers as members. LSEG is represented on the
Board of FoSDA and co-chairs its policy and regulatory working group.

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Climate change
In this section

14

Climate risk overview

15

Transition risk assessment

16

Physical risk assessment

18

Progress against our targets

20

Nature and carbon offsets

22

London Stock Exchange Group plc
Annual Sustainability Report 2023

GlossaryIntroduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Climate risk overview
Climate change presents both risks and opportunities, which impact LSEG in a numberof ways over different timeframes: short-term (0-3 years), medium-term (3-10 years)
and long-term (10-30 years). The actual or potential impact on LSEG of these risks andopportunities vary in magnitude. When identifying and assessing climate-related risks
or opportunities we define ‘substantive financial or strategic impact’ according to themagnitude of the financial cost or reputational impact on the Group, as well as thelikelihood that the risk will occur. These are likely to impact business strategy andoperations, our product portfolio, client target and/or resource mix.
Transition-related risks and opportunities arise from the transition to a low carbon
economy; while not an exhaustive list, examples of some of those relevant to
LSEG are as follows:— Policy and legal: introduction of regulation, such as those related to disclosure,
impacts LSEG as we are required to comply with international and national reporting
requirements, or those associated with climate-related products and services.
These introduce new director duties, increase operational and compliance costs,
and impact the management of our climate-related risks and opportunities. These
regulatory changes also affect our customers which in turn creates an opportunity
for LSEG to support them with appropriate market data and infrastructure.
— Technology: we rely on technology to provide LSEG’s products and services tocustomers, including data management in data centres. Changes to technology,energy prices or carbon costs could potentially impact LSEG’s operations and isa sustainability-related impact.
— Market: as we transition towards a net zero economy our customers’ needs arechanging. There is growing demand for sustainability-related market data andinfrastructure that help investors, corporates and financial institutions inform
decision making around strategy, capital raising and allocation and investment.
LSEG provides a large and growing range of sustainable financial investment
products and services to its customers. Further information about our products
and services can be found on pages 9–11.
We have conducted analysis of transition risk specifically looking at the potential costsof carbon under three recognised climate scenarios from the Network for Greening
the Financial System (NGFS). Further detail about this can be found on pages 16–17.
Physical risks arise from changing weather patterns associated with climatechange; examples of those that affect LSEG are as follows:— Acute physical risks: the notable increase in the frequency and severity of
extreme weather events, such as floods, windstorm and drought, are relevant
to LSEG’s international property portfolio. Extreme weather events could
adversely impact our properties, data centres, our employees or surrounding
infrastructure, which could cause business interruption.
15— Chronic physical risks: increasing global average temperatures could
negatively impact LSEG. Some parts of our international property portfolio
are at greater risk of extreme temperatures which in turn could require greater
cooling to ensure business continuity, which adds to operational costs.
We have conducted an analysis of physical risks to LSEG by using recognised
climate scenarios from the Intergovernmental Panel on Climate Change (IPCC).
Further detail about this can be found on pages 18–19. We published our first
Climate Transition Plan in 2022 which set out how we are aligning with the goalsof the Paris Agreement in our operations, market engagement and our products
and services. We have set targets to address our operational emissions andengagement with our supply chain, and we are in the process of setting targets
related to our market engagement, products and services, through ourmembership of the Net Zero Financial Service Provider Alliance (NZFSPA).

Climate reporting
During 2023, there were key developments with respect to corporate
disclosure regarding sustainability and climate. Notably the International
Sustainability Standards Board (ISSB) launched its sustainability andclimate reporting standards, which incorporate TCFD, in June 2023.
LSEG has been a supporter of TCFD since its launch in 2017 and has
disclosed climate change as an emerging risk in both our annual andsustainability reports since 2019. The UK’s Transition Plan Taskforce (TPT)
Disclosure Framework was also published in October 2023. While this is
yet to be fully embedded in UK law, we seek to align to this to the extent
possible in our reporting. A TCFD summary can be found in the Annual
Report and Accounts on page 65.

The sustainability section of the Annual Report and Accounts contains LSEG’s
disclosure aligned with the Task Force on Climate-Related Financial Disclosures(TCFD), and the Companies Act 2006 as amended by the Companies (Strategic
Report) (Climate-related Financial Disclosure) Regulations 2022 (CFD).
Climate governance
We have developed a robust governance framework to oversee and manage
sustainability, including climate-related risks and opportunities, which is describedon page 7. This governance framework comprises Board level oversight withspecific responsibilities for the full LSEG Board, the Board Risk Committee, theAudit Committee and the Nomination Committee. The framework also comprisesof executive level bodies responsible for the management of climate-related risks
and opportunities including the Executive Committee, the Executive Risk
Committee, the Sustainability Committee and the Climate Transition Steering
Committee. The Group Sustainability team is responsible for identifying andassessing climate-related risks with the business and designing and leading theGroup’s Climate Transition Plan. The Plan is regularly reviewed and updated as
required based on climate-related risks and opportunities. The Climate Transition
Plan is approved by the Board and overseen by the Climate Transition steering
Committee which reports to the Sustainability Committee.
The Sustainability team works with other functions across the business to guideand support implementation of actions required to deliver the Plan. Key functions
involved include procurement, third party risk management, property, travel,
finance, government relations, Group risk and the teams involved in sustainablefinance and investment solutions. Sustainability risks – including those specificallyrelated to climate change – are embedded in the Group Risk Taxonomy. The
Group Risk function is involved in the oversight of climate risk management as
described on page 7. The Internal Audit team provides further oversight andincorporates sustainability as appropriate in its annual audit schedule.

What do we mean by net zero?
In this report we refer to the term ‘net zero’. We adopt the definition in
the SBTi Corporate Net Zero Standard V1.1 2023 as follows: “A state of
net zero emissions involves: (a) reducing Scope 1, 2 and 3 emissions tozero or a residual level consistent with reaching net-zero emissions at
the global or sector level in eligible 1.5°C scenarios or sector pathwaysand (b) neutralizing any residual emissions at the net zero target date –and any GHG emissions released into the atmosphere thereafter.”London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Transition risk assessment
NGFS scenarios
Disorderly

Too little, too lateHigh

Many countries are putting in place policies to lower their greenhouse gas(GHG) emissions and transition to a low carbon economy. To assess our potential
financial risk exposure of this transition we use three NGFS scenarios. These varyin their assumptions about future climate policies, technological innovations
and carbon prices. Using these scenarios, we can stress test our resilience andprojected financial exposure, across short, medium and long-term time horizons.

We explored the following two possible future emissions pathways for LSEG:

The transition scenarios we use include:
Net Zero 2050
— This is an ambitious scenario that limits global warming to 1.5°C by 2100
through stringent climate polices and innovation, reaching net zero emissions
around 2050.
— This assumes ambitious, immediate and smooth policy action and fast
technological change. This scenario results in an orderly transition.

Fragmented World— This assumes a delayed and divergent climate policy response among
countries globally, leading to high physical and transition risks.
— Countries with net zero targets achieve them only partially (80% of the target),while the other countries follow current policies.

Transition risks

Delayedtransition

1. Reduced emissions: In this pathway LSEG reduces its operational emissions
in line with our planned trajectory to achieve our emission reduction targets.

Fragmented
world

Net Zero
2050(1.5°C)

Below
2°C

Current
policiesLow
demandOrderlyLow

NDCs

Hot house world
Physical risks

Low

Delayed Transition— This assumes global annual emissions do not decrease until 2030 and new
climate policies are not introduced until then. The level of action differs acrosscountries and regions based on current implemented policies.
— In this scenario there is a higher carbon price than in the Net Zero 2050
scenario. This scenario results in a disorderly transition.

Key findings
Under the three NGFS scenarios selected we considered possible future
GHG emissions pathways for LSEG, covering our Scope 1, 2 and selected
Scope 3 (business travel, FERA and employee commuting) emissions to assesstransition risk.

2. Business as usual: In this pathway, our operational emissions grow 3% per year
from the 2019 baseline.
In our analysis we use the predicted carbon price in each NGFS scenario
in the short, medium and long-term, to estimate the costs associated with
LSEG’s possible emission pathways; assuming we pay for all emissions in
scope of the analysis.
The results of this analysis, shown overleaf, confirm that the costs of carbon could
be material for LSEG unless we reduce our emissions. Under the NGFS Net Zero
2050 scenario, if we fail to reduce our emissions as planned (i.e. the ‘business as
usual’ pathway), the cost of carbon could reach almost $35 million a year in themedium term (3-10 years). In the context of our enterprise risk management
framework, this is categorised as a significant financial risk. This reinforces theneed to reduce our emissions in line with our targets.

High

Positioning of scenarios is approximate, based on an assessment of physical and transition risks
out to 2100. Source: Network for Greening the Financial System (NGFS) Phase IV

16

London Stock Exchange Group plc
Annual Sustainability Report 2023

Sustainable financeand investment

Introduction

Climate change

PeopleGovernance

Glossary

Transition risk assessment continued
Carbon pricing based on NGFS
scenarios, adjusted to generateannual carbon prices

00ActualNet Zero 2050

Delayed transition

2037

2035

2033

2027

2024

Baseline 3% growth

LSEG Operational Emissions (as per LSEG Transition Plan, tn CO2e

20,000
2040

50
2039

40,000

2038

100

2036

60,000

2034

150

2032

80,000

2031

200

2030

100,000

2029

250

2028

120,000

2026

300

2025

140,000

2023

350

2022

160,000

2021

400

2020

180,000

SBTi target

Under the NGFS Net Zero
2050 scenario, if we failto reduce our emissions asplanned (i.e. the ‘business as
usual’ pathway), the annual
cost of carbon could reachalmost $35 million in themedium term.

Cumulative cost exposure undercarbon pricing levels indicated

450

2019

Cumulative exposure, $m & Carbon Prices ($/tn CO2e)

LSEG – Emissions & Cost exposure under NGFS carbon pricing scenarios
Emissions tn CO2e

Fragmented world

Estimated costs of carbon for LSEG under three NGFS scenarios and two emission pathways from 2025–2040
Scenario: Net Zero 2050

Time frame

ReducedemissionsprofileCarbonannualprice
cost$/tnCO2($m)

Scenario: Delayed Transition

BAU
Cum
profile exposure
annual
from
cost
2025
($m)
($m)

ReducedemissionsprofileannualCarbon
cost
price
($m)
$/tnCO2

Scenario: Fragmented WorldBAU
Cum
profile exposure
annual
from
cost
2025
($m)
($m)

ReducedemissionsprofileannualCarbon
cost
price
($m)
$/tnCO2

BAU
Cum
profile exposure
annual
from
cost
2025
($m)
($m)

Short

15.6

1.0

1.7

0.7

–

–

–

–

–

–

–

–

Medium

128.6

5.9

34.8

133.6

–

–

–

–

–

–

–

–

Long

401.5

1.7

68.4

385.3

150.7

0.6

25.7

114.3

63..4

0.3

10.8

47.6

17

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Physical risk assessment
With the notable increase in the frequency and severity of extreme weather
events and rising average temperatures, it is important to understand the risk
to LSEG in more detail.

How the amount of carbon in the atmosphere results in different temperature rises over time
5

Scenario analysis provides a flexible ‘what if’ framework for exploring risks,
allowing for economic outcomes and financial risks under a range of different
future pathways.
For this assessment, climate scenarios were used, based on theIntergovernmental Panel on Climate Change (IPCC) Representative Concentration
Pathways (RCP) from their Fifth Assessment Report (AR5), mapped to the latest
IPCC AR6 report's Shared Socioeconomic Pathways (SSPs). There is a high degreeof certainty that some combination of climate risks will materialise, however theexact outcomes are uncertain and depend on short-term actions.

43

We worked with Willis Towers Watson (WTW) to conduct the physical risk
assessment using state-of-the-art models and databases used within the insurance
industry to price risk, as well as climate models and research from the IPCC.
The climate hazards considered included:— Acute risks: windstorm, tornado, river flood, flash flood, coastal flood, hailstorm,
lightning, wildfire.
— Chronic risks: heat stress, precipitation, drought, fire weather, sea level rise.

The scenarios considered included the following:‘Hothouse world’ greenhouse gas emissions scenario > 4°C— Emissions follow the IPCC SSP5-RCP8.5 scenario, which is associated with
> +4°C temperature rise from pre-industrial times by the end of the century.
— Low transition risk in both the short and long-term as the world fails totransition to a low carbon economy.
— Physical risks become increasingly frequent and severe in the long term.
‘Middle of the Road’ greenhouse gas emissions scenario 2-3°C

2

1

We assessed the climate-related risk to our global property and physical asset
footprint, comprising over 200 locations.

— Emissions follow the IPCC SSP2-RCP4.5 scenario, which is associated with
2-3°C temperature rise from pre-industrial times by the end of the century.
— Moderate transition risk in the short and long term as the world fails
to transition to net zero by 2100.
— Physical risks become increasingly frequent and severe in the long term
but less so than in the high greenhouse gas emission scenario.
Net Zero 2050 scenario ~1.5°C

SSP1-1.19

SSP1-2.6

SSP2-4.5

SSP3-7.0

SSP5-8.5

2100

2090

2080

2070

2060

2050

2040

2030

2020

2010

2000

1990

1980

1970

1960

1950

0

-1

— Emissions follow the IPCC SSP1-RCP1.9/2.6 scenario, which is associatedwith ~1.5°C temperature rise from pre-industrial times by the end of
the century.
— Scenario assumes stringent carbon taxation, stricter building codes andpublic and private investment in low emission technologies.
— High transition risk in the short term associated with aggressive mitigation
actions to reduce emissions.
— As a result of the transition, physical risks are less severe and somewhat
similar to the current climate.

Source: Global surface temperature changes relative to 1850-1900, degrees C, under the five core emissions scenarios used in AR6. Source: IPCC (2021) Figure SPM.8a18

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Physical risk assessment continued
Methodology
Our assessment identifies current and future climate exposures of our global
portfolio, and quantifies the consequences and potential financial impacts.

Number of locations

The approach of the assessment uses scenario analysis and considers three
climate change scenarios promoted by the IPCC. These scenarios are based on
Representative Concentration Pathways (RCP) which include a 1.5°C, 2-3°C and>4°C increase, respectively, in the global average surface temperature by 2100.
Each scenario sets out the likely impacts in the short, medium and longer term.
Our property portfolio, including offices and data centres, were analysed on anasset-by-asset basis for a range of climate hazard exposures at the present day as
well as for future projections under the selected scenarios where data is available.
For acute hazards such as flood and windstorm, this was further supplemented
using probabilistic modelling to forecast the plausible financial impacts basedon a simulation of many thousands of extreme weather events, which wastranslated into likelihood and impact in line with our risk severity impact scales.
For regional chronic hazards such as heat and drought stress, the hazard
exposure and assumed daily reduction in operations have been utilised toindicate the impact of operational downtime caused by these hazards.
Key findings
Drought
Under current climate conditions drought is not considered a material risk to ourproperty portfolio. However, by 2050, under the "Hot house world" scenario ofhigh emissions, over 40% of the current total insured value would potentially be
exposed to a moderate/high/very high risk of drought stress. The potential
consequences include disruption of operations caused by lack of water supply
or energy in regions depending on hydro power.

However, it is likely that climate change will increase the likelihood of more
extreme events and hence a 1:200 is likely becoming closer to a 1:100 type
event in future decades, especially for flood risk, meaning that the current
1:200 event with a moderate financial impact (based on our Enterprise Risk
Management (ERM) scale used for VaR) is increasingly likely to become the1:100 event loss under the RCP 8.5 scenario by 2050.
Conclusions and next steps
This assessment generally considers physical climate risk in the short to medium
term a lower risk to LSEG than transition risk due to the nature of LSEG’s businessand operations.

Asia 95 (40%)
Europe 70 (30%)
North America 48 (20%)
Africa 9 (4%)
Oceania 8 (3%)
South America 8 (3%)

Heat stress
Under current climate conditions, over a quarter of the total insured value is
exposed to a high or very high level of heat stress, resulting from more than
80 heatwave days in a year with temperatures in excess of 30˚C. The facilities
exposed to very high heat stress are predominantly located in Southeast Asiaand the Middle East.
By 2050, under the "Hot house world" scenario of high emissions, heat stress is
projected to become a high or very high risk for over 130 locations, equating toapproximately two-thirds of portfolio value. This trend would mean that increased
cooling of buildings and machinery could be needed to reduce the risk ofoperational disruption and improve working conditions for employees.

The majority of our buildings are leased, so LSEG has limited financial risk, whereproperty damage is concerned. In addition, since the Covid-19 pandemic, there
has been more capacity for employees to work-from-home, thereby reducing theimpact on business operations if properties are affected by acute climate events.
The financial impact to acute hazards, flood and windstorm are currently
considered in the limited range of LSEG’s ERM risk severity impact scales,
increasing to moderate under the high emissions scenario.
For chronic hazards of heat stress and drought, the results of this assessment
will be integrated across our businesses to inform business continuity plans.
Ultimately, we will use this analysis to inform location strategy, with the next steps
including deeper dive assessments for assets particularly exposed to thechanging climate, considering adaptation measures and testing the resilienceof assets.

Flood and windstorm
We conducted a directional Value-at-Risk (VaR) analysis to consider the potential
financial impacts to physical assets, which provided us with a view of residual VaR
as annualised modelled damages. This means that good, bad and catastrophic
years are taken into account in an average annualised view, which typicallywould be covered either by insurance or directly by our own risk retention.
Based on the assessment, it was found that the exposure to flood andwindstorm perils only shifts slightly for LSEG’s portfolio between the different
scenarios modelled.
19

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Progress against our targets
Through the 2015 Paris Agreement, world governments committed to limiting
global temperature rise to well-below 2°C above pre-industrial levels and pursuingefforts to limit warming to 1.5°C. In 2018, the Intergovernmental Panel on Climate
Change (IPCC) warned that global warming must not exceed 1.5°C above
pre-industrial temperatures to avoid the catastrophic impacts of climate change.
To achieve this, greenhouse (GHG) emissions must halve by 2030 and drop to
net zero by 2050.
Our climate targets
We have set science-based targets, aligned with the goal of the Paris Agreement,
approved by the Science Based Targets initiative (SBTi). The targets are:
— Reduce absolute Scope 1 and 2 GHG emissions 50% by 2030 from a 2019base year.
— Reduce absolute Scope 3 GHG emissions from fuel and energy related
activities (FERA), business travel, and employee commuting 50% by 2030
from a 2019 base year.
— 67% of Scope 3 emissions from purchased goods and services covered byscience-based target by 2026.
We have a work programme in place to monitor, manage and reduce ouremissions covered by these targets. This programme is organised into thefollowing four glidepaths:— Places: emissions from property and data centres (Scope 1 and 2 emissions).
— People: emissions from homeworking and employee commuting.
— Travel: emissions from business travel by air, rail, and road (Scope 3 emissions).
— Procurement: emissions from purchased goods and services(Scope 3 emissions).
A net zero ambition
While we have an ambition to reach net zero by 2040 we have not set a formal,
SBTi-approved target in this respect to date as we have been prioritising
work on our near-term targets. In future we will review whether, and if so when,
LSEG should formalise our net zero ambition into an SBTi-approved target.
A dependency exists between this and the progress made with respect to our
supplier engagement target.

20

Our progress
Overall, our Group carbon footprint has increased by 13% relative to 2022.
This is principally due to increased levels of office occupancy and business travel,
returning to more normal levels following the global pandemic. There has also
been a material increase to the official Government emission factors which areused to calculate air travel emissions.
With respect to our target on Scope 1 and 2 (market) emissions we closed the year
having reduced 90%, against our 2019 baseline. For our target on Scope 3
emissions from business travel, home working and employee commuting, weclosed the year having reduced 13% against our 2019 baseline. When including
FERA, this meant that by the end of 2023, we had reduced our carbon emissions
addressed by our Climate Transition Plan by 29% from a 2019 baseline.
Places glidepath
Absolute emissions from our properties and data centres have decreased
4% relative to 2022, however with the purchase of Energy Attribute Certificates(EACs), this decrease is 79%. Emissions have been driven by property disposals
predominantly in the US and UK, combined with a move away from natural gas,
diesel and purchased heat usage. During the year, we enhanced the quality ofemissions data captured from LSEG sites and we onboarded a third-party provider
to support with our decarbonisation planning, transactions framework and design
and build standards. This will enable us to create more robust investment models
and plans for our decarbonisation activity. LSEG has put particular focus on
decreasing our emissions from our data centres, as well as our own office space,
and we have increased efficiency in software energy demands.

We have also mobilised a plan to enhance the procurement of renewableenergy. During the year we continued to explore renewable energy options andrecommended any new energy contract to be a green tariff where available.
LSEG is a member of RE100, which is a corporate renewable energy initiative
bringing together hundreds of businesses committed to sourcing 100% of theirenergy from renewable sources. LSEG continues to support RE100 and targets
100% renewable energy through a mix of direct renewable procurement andEnergy Attribute Certificates.
People glidepath
During the year, we saw a 46% increase in emissions from employee commuting
and homeworking relative to 2022. This is largely due to the implementationof our Global Hybrid Working Policy which has increased the frequency of
employees travelling to work in LSEG offices, and therefore increasing emissions
associated with commuting. The programme has been exploring dataenhancement as this is reliant on estimated data.

Scope of targets
The following emissions scopes are included in our SBTi approved targets:
Scope 1 direct emissions e.g. from burning fuels such as natural gas forheating, Scope 2 indirect emissions from purchased electricity, cooling,heat or steam and Scope 3 purchased goods and services, fuel andenergy-related activity (FERA), business travel, and employee commuting.
The following emissions scopes are not included in our SBTi approved
targets: Scope 3 waste generated in operations, capital goods, upstream
transportation and distribution, downstream transportation and distribution,
upstream leased assets, downstream leased assets, processing of soldproducts, use of sold products, end of life treatment of sold products,
franchises and investments.

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Progress against our targets continued
Travel glidepath
In 2023, we saw a significant increase in business travel emissions, up 136%
relative to 2022. This is due to higher levels of business travel throughout theyear, following a period of very limited business travel due to the global pandemic.
There has also been a significant change to the Government emission factors
used to calculate emissions from air travel, for example, for long-haul flights thishas increased by over 50% relative to previous factors.

Progress against our targets tCO2e
100,000

During the year, we enhanced our data capture and analysis to enable team-level
reporting. This will be used to raise awareness of travel-related emissions and toestablish team-level carbon budgets. We have also been exploring an internalcarbon price which could be applied to business travel, which, if adopted, could
help to influence travel patterns.

80,000

Procurement glidepath
Scope 3 emissions from purchased goods and services account for over 90% of
our total carbon footprint. In order to reduce these emissions, we are focused on
engaging with our supply chain.

60,000

Our target is to ensure that suppliers responsible for at least 67% of our Scope 3(purchased goods and services) emissions have adopted their own science-based
emission reduction targets by end 2026. We are on target to achieve this, closing
the year at 44%.

Places (market)

21

People

SBTi emission target

FERA

TravelLondon Stock Exchange Group plc
Annual Sustainability Report 2023

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2020

20,0002019

During the year, we continued our engagement with key suppliers responsible
for the majority of our Scope 3 emissions to encourage and support them toadopt science-based emission reduction targets if they haven’t done so already.
All procurement category managers undertook tailored training to equip them toengage with suppliers regarding our climate targets. We also hosted a series ofwebinars for suppliers focused on LSEG’s climate transition plan, requirements ofsuppliers regarding our climate targets, carbon reduction methods and climatechange training. Guidance documents have been provided for those suppliers
who we expect to adopt science-based targets including: Step-by-step Guide to
Science-Based Targets; Reduction Strategies to Achieve Science-Based Targets
for Scopes 1, 2 and 3 emissions and Scope 1 and 2 Greenhouse Gas Inventory &Target-Setting Basics.

40,0000Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary

Nature and carbon offsets
Nature and biodiversity
Nature-related dependencies and impacts present risks and opportunities tobusiness. However, to date, there has not been a common framework forbusinesses to assess and report​nature-related matters.

Global map showing regional sensitivity

The Taskforce on Nature-related Financial Disclosures (TNFD) publishedrecommendations in 2023 which provide a framework to helporganisations understand and report nature-related matters.

Quality certified offset projects are a vital way for us to support
nature-based projects and offset our emissions as we work to ournear-term science-based targets and long-term net zero ambition.

​ SEG is an early adopter of the TNFD, and we aim to enhance our reporting in lineLwith the framework in the future.
Ahead of this, during 2023 we took steps to incorporate nature more explicitly
into our climate transition plan. We conducted a baseline assessment to better
understand LSEG’s nature-related risks, opportunities, dependencies and impacts.
How do we categorise our locations in relation to natureand biodiversity?
— Sensitive locations are those of nature importance (e.g., high ecosystem
integrity, biodiversity importance, water stress, air quality).​— Material locations are defined as those where LSEG has high emissions,water, or waste consumption. ​— High priority locations are defined as those that overlap between
sensitive and material locations.​

Policy on carbon credits
We recognise that carbon offsets – however credible – do not replace
the urgent need to reduce emissions along a trajectory aligned withclimate science. While reducing our emissions is the primary focus of ourdecarbonisation strategy, we also recognise the need to take responsibility
for the emissions that we are generating in our day-to-day activities.

Our action in 2023
LSEG is a certified CarbonNeutral® company in accordance with The
CarbonNeutral Protocol, the leading global framework for carbon neutrality.
This means we have offset our emissions from Scope 1, Scope 2 and Scope
3 (FERA, business travel, employee commuting).

High
MediumLow

In the first phase of this work, regional and country-level locations were assessed,with a more granular site analysis to come. In the next phase of this work, key
factors will be considered in relation to LSEG's operations including: ecosystem
integrity, water stress, air quality, and LSEG activities related to emissions, water,
and waste. This analysis produces site-specific insights into nature-related impacts,
dependencies, risks, and opportunities which can be reported on. In the future,
it will be possible to set goals and enhance our disclosure.

In order to source high quality carbon offsets, we have worked with Climate
Impact Partners to ensure that all the projects we support, at a minimum are:
— Verified to industry recognised carbon-crediting programmes, such as
the Verified Carbon Standard (VCS) and Gold Standard.
— Supportive of a robust and credible approach which aligns with the
CarbonNeutral Protocol.
— Considerate of the impacts in the communities and locations we operatein, ensuring that those most impacted by climate change on the groundsee the benefits.

Initial results show that high risk areas are concentrated in South and Southeast
Asia, in particular​Sri Lanka, India, Thailand, Malaysia, Philippines, and South Africa.

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Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernancePeopleIn this section

23

Culture, values and engagement

24

Learning and development

25

Equity, diversity and inclusion

26

Pay equity

27

Wellbeing

29

Health and safety

30

Human rights

31

Community

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Glossary

Culture, values and engagement
People drive our performance and productivity. Our inclusive culture and values
set us apart, leading the way to meet the needs of our customers andstakeholders, advancing technology and creating a workforce that is future
ready. With over 25,000 people in 60 countries, we work with ambition
and accountability.
Culture and values
This year we made further progress to embed our culture with the introductionof our new values. These set the standard for everything we do, every day.
Underpinning our purpose, they articulate how we work with our customers,
our partners and each other.
LSEG’s new values were established through a comprehensive approach whichcollated feedback from 20,000 colleagues via our engagement survey, combinedwith 32,000 comments from 13,500 colleagues who participated in our Values
Survey. This feedback was further refined through virtual and in-person focus
group sessions which involved 300 colleagues around the world. We also sought
input from 10 of our key customers, held interviews with six media partners andbenchmarked against over 250 companies. The new values were launched in
September 2023 through a global event watched by over 19,00 colleagues in
the first 24 hours, followed by 94 in-person workshops in 12 locations around theworld. They are now being embedded into our people processes and procedures
including recognition, recruitment and performance assessments.
Governance
The LSEG Board oversees the Group’s culture and people strategy to ensure it
supports the long-term success of the organisation. The Chief People Officer
is a member of the Executive Committee and is accountable for all aspects of ourPeople strategy, including talent attraction, reward, compensation and benefits,
training, development, equity, diversity and inclusion, colleague wellbeing,
employment regulation and worker rights including collective bargaining.
LSEG’s approach to these areas are codified through comprehensive policies andguidance on Code of Conduct, Equity, Diversity and Inclusion, Pay and Benefits,
Health and Wellbeing, Family Support, Leave, Hybrid Working, Anti-Harassment
and Bullying, Menopause Support and Transition and Change to Gender
Expression Guidelines.

24

LSEG's values
Integrity

We stand by our principles and deliver on our promises.
We earn trust by acting responsibly.

Partnership

Our open model is integral to how we do business.
We forge long-term relationships; we work together tosolve evolving needs and deliver strategic outcomes.

Excellence

Our breadth of capabilities sets us apart, globally. We
achieve industry-leading outcomes by combining unique,diverse perspectives and knowledge across markets.

ChangeWe embrace change. We combine human ingenuity,
technology, risk management, and insight to create theproducts and services that lead and shape the industry.

Colleague listening
We listen to our colleagues and solicit their views and sentiment at different
stages of the colleague lifecycle, from onboarding surveys, colleague
engagement surveys to exit interviews.
LSEG Engage, our Group-wide survey, helps us to confirm what is working
well and identify areas where we need to improve. Results from past
surveys indicated that while we were continuing to make good progresson our cultural transformation journey, continued focus was needed on
simplification of our systems and processes for colleagues as well as
greater clarity around decision-making.
In 2023, we responded to this feedback by enhancing:— The onboarding process through the launch of a new global portal.
— Technology tools and improving support to resolve issues.
— Data & Analytics order management processes.
— Technology approval forums and governance.

LSEG Engage 2023
In September 2023, LSEG Engage saw an increase in participation with 88%
of the organisation responding to the survey. We also saw the engagement scoreremain flat at 75, against an external environment which saw declining levels of
overall engagement.
Highlights from the 2023 survey include a greater understanding of LSEG's
strategy and excitement about the future, together with continued improvement inopportunities to learn and grow. Support that our people get from their leaders is
also driving positive sentiment.
Areas for improvement included reducing barriers that slow down execution
and an opportunity to make sure our people feel better recognised for the work
they deliver.
Colleague engagement with senior leadership
Global townhall meetings are held several times a year which all colleagues
can join to hear senior management provide updates on key topics, such as
financial results. Other engagement channels include local, divisional orfunctional townhalls where members of the Executive Committee will
engage with colleagues from across the business. Smaller face-to-face sessions("ExCo Exchanges") create an opportunity for two-way engagement in small
group discussions between colleagues, the CEO and members of the Executive
Committee. During 2023, there were 12 sessions with a typical group size of
14 people. Examples of topics covered in these sessions include businessand location strategy, brand and marketing, values, leadership and careerdevelopment. Where Executive Committee members travel to LSEG locations,colleague engagement is incorporated in the schedule wherever possible.
More recently, the Executive Committee has been communicating withcolleagues through Viva Engage, our internal social and community channel.
Another key element of ensuring we have effective dialogue between Senior
Leaders and our colleagues is our ongoing roundtables between colleagues
and the LSEG Board. In 2023, we had four sessions joined by 57 colleagues.
The sessions covered topics such as culture, values, inclusion, wellbeing andcareer development.

Further detail about this can be found in the Annual Report and Accounts,
Board Engagement with Stakeholders pages 69-74.

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Glossary

Learning and development
We aim to attract and retain the very best people by tailoring the opportunities weprovide and partnering with colleagues to build long-term careers. LSEG’s scaleand global presence provides the opportunity for our colleagues to broaden theirskills and experience.

Learning
At LSEG, there are a wide range of opportunities to develop skills and knowledge.
This includes mandatory training which all colleagues are required to complete,
as well as a wealth of voluntary options through platforms such as LinkedIn
Learning, Workday Learning or Sustainability Unlocked.

Talent attraction, retention and development are overseen by the Group Head of
Global Talent Strategy who reports to the Chief People Officer, a member of the
Executive Committee.

Colleagues can also enter into more formalised training and certification
programmes with external providers depending on their role and particular needs.

In 2023, 36% of vacancies were filled internally and we continue to look for ways
to drive internal mobility. Externally, to strengthen and build LSEG’s global talentreach, we targeted priority marketplaces to roll out our new employer brand.
In 2023, we built on campaigns in Bucharest, Bengaluru, Bangkok and Manila,
adding Gdynia, Hyderabad and Colombo to these locations.
Career development
Ensuring the Group has the necessary skills and capabilities to execute theGroup's business strategy effectively is vital. LSEG’s career framework outlines
all roles at LSEG, organised by job families, career stages and global grade,with functional competencies and technical skills aligned to each role profile.

To complement existing training this year we launched skills-based mentoring
which focuses on supporting an individual to develop or enhance a specific skill.
These skills form part of their personal development plan, which will be relevantto their current role or future aspirations. Skills-based mentoring is available to all
LSEG colleagues, at all levels across the Group.
LSEG has launched the Career Navigator to help colleagues to define
and achieve their career ambitions. Through the personalised platform,
colleagues can identify the gap between their current skills and capabilities
and build a personal development plan.

This year we also expanded our commitment to identifying future leaders andexperts, assessing 4,163 people including 2,311 Senior Managers for the first time,
as well as rolling out a new global early careers strategy with 213 next generation
leaders in nine key locations joining this year. We also held leadershipdevelopment programmes with over 1,500 people participating.

To ensure LSEG has the necessary skills, and to help colleagues to define
and achieve their career ambitions, LSEG has launched Career Navigator.
This is a personalised platform that enables colleagues to create their personal
profile, identify gaps in skills and capabilities for different roles across LSEG,
potential career paths, and search for internal roles and opportunities.

Mandatory training
All colleagues are required to complete annual mandatory training on a range of
topics including: the Code of Conduct; risk management; financial sanctions andexport controls; privacy and data protection; financial crime and tax evasion;
information security; UK market abuse; and operational resilience.

Once a career ambition is defined colleagues can build a personal development
plan on Career Navigator and take the development steps necessary to progress.

Topics in the Code of Conduct include our culture and values; stakeholders;personal conduct (including professional behaviour, bullying, harassment anddiscrimination, conflicts of interest, insider dealing and market abuse, gifts andentertainment); leadership; fair competition; financial crime; government, politicaland religious affairs; the environment; human rights; equity, diversity and inclusion;
health, safety and security; information security; financial records; media andsocial media.

Each quarter, colleagues have a Quarterly Connect conversation with their people
leader. This reviews progress against their personal objectives, outlines focus
areas for the coming period and looks at their personal development.

This year we launched skills-based mentoring which focuses on supporting
an individual to develop or enhance a specific skill. These skills form part oftheir personal development plan, which will be relevant to their current roleor future aspirations.

25

Further detail about learning and development can be found in the
Sustainability Databook.

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Glossary

Equity, diversity and inclusion
Equity, diversity and inclusion (EDI) strategy
We aim to create a culture of belonging, a workplace that is truly representativeof all sections of society and our customers, that is fair and inclusive for all,where diverse perspectives are valued and leveraged throughout the Group.
We have four ambitions that support our philosophy:— Build a sense of belonging for all.
— Creating equitable and inclusive processes that enable the attraction, retention
and promotion of a global diverse pipeline of talent.
— Building a global and diverse leadership team that’s held accountable forcreating an inclusive culture.
— Lead the industry in progressing the EDI agenda.
We use four levers to pursue our ambitions:— Data: We use data and insights to identify opportunities and potential inequities.
— Workplace of the future: With an inclusive infrastructure and environment
through equitable policies and processes, we hire and retain global talent.
— Education and awareness: We build knowledge of EDI to enable our people
and leaders to confidently embrace inclusive behaviours and decisions.
— Narrative and voice: We have a clear perspective and framework.
Annual reviews of the strategy and goals are shared with the LSEG Board, andthe Executive Committee is given quarterly updates on EDI.
Progress against our EDI goals
In 2023, we developed an enhanced methodology to help us review our EDI
goals to ensure they remain relevant and can be appropriately measured globally.
Therefore, to help us monitor progress we have updated our diversity goals for2024 and beyond relating to gender and ethnicity for our senior leadershipcommunity.
Gender— Goal: Maintain at least 40% women in senior leadership (ExCo and Group
Leaders) going forward.
— Progress: By the end of 2023 we had exceeded our goal with 42% womenin senior leadership.

26

Ethnicity— Goal: 25% underrepresented ethnic groups in senior leadership roles(ExCo and Group Leaders) by 2027.
— Progress: We did not achieve our goal of 20% from underrepresented racialand ethnic groups by the end of 2023, closing the year at 14%, however weremain firmly focused in closing this gap and achieving our updated 2027 goal.
Initiatives such as our inclusive hiring practices and talent accelerator
programmes will help to drive our progression.
Alongside the above goals we continue our focus on increasing diversity among
the wider leadership group (Group Director and Director Leaders), to build a morediverse pipeline of future senior leaders.
2023 highlights
In 2023, we continued to focus on our priorities. The key developments andareas of focus during the year included:— We launched a data disclosure campaign to increase self-reported colleague
data, which increased our average data disclosure rate across categories
such as ethnicity, gender, disability and sexual orientation from 42% to 69%.
— We introduced inclusive hiring training for all people leaders in 2023 andcreated a global framework for all employees and people leaders to build theirknowledge and understanding in relation to EDI which will be launched in 2024.
— We launched new global leave policies to support colleagues affected bycaring, transitioning and bereavement.
— We continue to invest in creating an inclusive environment for our diverse
talent through our talent accelerator programmes.
— Our eight inclusion networks continued to drive engagement with our EDI
agenda and are open to all colleagues. The networks include LEAD (Latin@s
for Empowerment, Advancement and Development), BEING (Black Employee
Inspired Network Group), Asian Affinity, Pride, WIN (Women Inspired Network),
Accessibility, Multi-faith and Veterans Support Network (ViSioN).

External initiatives
We are active participants in a number of industry-wide initiatives, including thefirst ever sector-wide Socio-Economic Diversity Taskforce and the HM Treasury
Women in Finance Charter. We’ve been recognised through a number of awards
including Company of the Year at the European Diversity Awards and Large Brandof the Year at the Bank of London Rainbow Honours. We were also rated Gold in
the India Workplace Equality Index and we are a member of the Valuable 500.
Non-discrimination
We are committed to complying with applicable laws, rules and regulations
governing non-discrimination wherever we do business. We are committed toencouraging equity, diversity and inclusion among our workforce, and eliminating
discrimination in recruitment, training, promotion and conditions of service.
We do not tolerate discrimination on the basis of: age; being pregnant or
on maternity leave; citizenship status; disability; gender identity or expression;
marital status; race including colour; nationality; ethnic or national origin; parental
status; religion or belief; sex; sexual orientation; trade union membership andactivities; or veteran status. In addition to the list of protected characteristics,
certain countries have additional “protected characteristics” which will beprotected in that country, as set out in local policies.

For further information please see our EDI Policy
Please see our Sustainability Databook for further information on the progression
towards our targets.

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Pay equity
We continue to be committed to achieving pay which is free of bias and to building
an equitable and inclusive environment for all. This means ensuring that nodiscrepancies in pay result from differences in personal characteristics,
such as gender, ethnicity, age and nationality.
We take a data-driven approach and apply the same level of scrutiny to pay equity
reporting as we do to financial reporting. We believe that transparency around pay
and a forward strategic commitment to pay equity reporting is fundamental tocontinued and sustainable advancement for those who have historically faced
discrimination in the labour market. This strengthens our ability to attract andretain the best and most diverse talent.
Our pay and performance policies are globally adopted and regularly reviewed
by LSEG’s Executive Committee and Remuneration Committee, with the aim of
ensuring market alignment and compliance.
Our annual compensation review process enables people leaders to ensure
there is no bias in the levels of salary increases or bonus awards. This includes
consideration of personal characteristics so that we can identify and rectify
any anomalies.
Underpinned by our Equity, Diversity and Inclusion (EDI) Policy, we remaincommitted to eliminating unlawful discrimination in recruitment, training, promotion
and conditions of service, such as pay. Responsibility for pay equity rests with
the Group Head of Total Reward, Inclusion & Performance, who reports to theChief People Officer.

Pay equity review
We conducted a pay equity review this year which followed the same
methodology applied in the 2022 review.
We engaged a specialist third party to analyse our pay data, on a job-by-job basis
for our global colleague population as at 5 April 2023. This is an enhancementon the simple, single country comparison of mean and median hourly pay.
The study’s deep statistical analysis of pay considers many identifiable factors
known to impact compensation, including but not limited to seniority, location,
job role, experience, business sector and performance. This enables us tounderstand how much of a headline (raw) pay differentiation is due to identifiablefactors, and how much is due to non-identifiable factors.
The "Raw pay gap" is the comparison of the mean and median pay between
gender/ethnicity groups across LSEG. From this, statistical analysis is used to
calculate both the Identifiable pay gap and the Non-Identifiable pay gap:
— The Identifiable pay gap shows the gap in pay between two groups that canbe attributed to explainable and objective factors. These factors may include
seniority, job role, location, business sector, experience and performance.
— The Non-Identifiable pay gap shows the remaining pay gap once identifiablefactors have been accounted for. The remaining pay difference is unexplainedby the factors considered in our modelling.

1.2%

Non-Indentifiable gender pay gap

By understanding both Identifiable and Non-Identifiable pay gaps, we can identify
the factors contributing to any pay gaps, helping us to understand why they exist
and how we can take targeted action.
Scope
The scope of the 2023 review was the same as for 2022. It included genderrelated pay data in all the countries where we have colleagues, as well as our
ethnicity-related pay data where we are able to collect sufficient amounts of
information, which is the UK and US. We use the recommended government
census categories when collecting ethnicity data and underrepresented ethnic
groups are defined as all ethnicities other than white.

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Annual Sustainability Report 2023

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Glossary

Pay equity continued
Performance
Detailed performance data from the pay gap review can be found in the
Sustainability Databook.
 enderG
Overall, we made broad-based progress across three key metrics as we
continued our focus on closing the gender pay gap. Our Raw mean gender
pay gap fell 3.4% from 32.6% to 29.2%. This includes a decrease of 3.1%
from 31.1% to 28.0% within the Identified component of the mean gender
pay gap, which resulted in the Non-Identifiable mean gender pay gap
falling 0.3%, from 1.5% to 1.2%.
Ethnicity
We also made strong progress in 2023 in addressing our ethnicity pay
gaps. In the UK and US, the Raw mean ethnicity pay gap fell 4.4% from 17.8%
to 13.4% while the Identified mean ethnicity pay gap fell 3.9% from 18.1% to14.2%, which resulted in the Non-Identifiable mean ethnicity pay gap falling
1.1% to -0.8%, in favour of underrepresented groups.
As part of the annual compensation review process, we provide internalreporting that shows the average level of salary increase and bonus
awarded to men and women based on geography, grade and performance.
We will continue to focus on pay equity and will encourage colleagues
to disclose diversity data where permissible so we can develop ourunderstanding across LSEG. We intend to expand our pay equity analysis
to other countries and other underrepresented groups in future where thedata permits.

Key drivers of LSEG’s identifiable pay gaps
Listed in descending order of impact the key drivers are:
1. Role and location – career stage is a major factor impacting pay andby far the strongest of all drivers. The grade-related pay increment is higher
in senior grades when compared to junior grades. Location and job family
are recognised as important factors in the model.
2. Experience – prior experience (proxied by age) and organisational specificexperience (proxied by tenure) are positively recognised in the majorityof the business divisions by rewarding more job-specific tenure andexternal experience.
3. Business sector – business area impacts pay in a moderate way,e.g. colleagues in technology usually have higher pay than colleagues
in other areas of the business.

Gender pay gap
GlobalRaw
29.2%
Identifiable28.0%
Non-Indentifiable
1.2%

4. Performance – our data shows elements of a ‘pay for performance’ reward
approach. Low performance seems to consistently reduce pay outcomeswhile better performance is rewarded.

Positive figures indicate pay is in favour of men

5. Hiring and promotion – colleagues recently hired are in general paid
comparably to incumbents.

Ethnicity pay gap
UK and US

6. Supervision – data doesn’t indicate that being in a supervisory roleis a strong factor impacting pay. This finding is most likely because
the job and grading structures have already taken supervisory roles
into account.

Raw
13.4%
Identifiable
14.2%
Non-Indentifiable-0.8%

All underrepresented ethnic groups

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Wellbeing
Our goal is to create a healthy and resilient organisation. We want ourcolleagues to be motivated to perform at their best and contribute toorganisational success. Day-to-day management of colleague wellbeing
rests with the Group Head of Total Reward, Inclusion & Performance,
who reports to the Chief People Officer.

Menopause guidance and support
LSEG’s menopause guidance aims to support colleagues who are directly or
indirectly affected by the menopause and raise awareness of menopause among
the colleague community. It strives to address how menopause can have an
impact in the workplace, creating and promoting an environment in whichcolleagues and their people leaders feel confident to openly discuss
menopausal issues.

We take a holistic approach to wellbeing, with a wide range of resources available
to support colleagues' emotional, physical, financial and social wellbeing.
Employee assistance programme
All colleagues have access to the employee assistance programme (EAP) which isan anonymous, free service and accessible 24/7. This service provides dedicatedcounselling, practical information, live and digital content and wellbeing resources
to support emotional, physical, financial and social wellbeing. It helps colleagues
and their household members on a wide range of issues where practical oremotional support is needed. The EAP is available to colleagues, contractors,
and members of their households, and it is confidential and anonymous.
Colleagues also have access to WorkLife Central which has a wide range ofresources and daily webinars on careers, families, inclusion and wellbeing.
Colleagues in the UK are also able to access the Peppy Digital Health Appthat helps people take control of their health, including support with fertility,
menopause and mental health.

LSEG now has 40 menopause champions and provides webinars, guides,
reading materials and internal local contacts. Necessary adjustments andaccommodations can be made to support colleagues experiencing
menopausal symptoms in the workplace.

All colleagues have access to the employee assistance programme
which is an anonymous, free service and accessible 24/7. This service
provides dedicated counselling, practical information, live and digitalcontent and wellbeing resources to support emotional, physical,
financial and social wellbeing.

Parents and carers
We support families and parents by ensuring our policies and practices support
work-life balance, equality of opportunity and an inclusive culture. For example,
our UK Family Support Policy sets out the type of leave and benefits available andenables time off for those with caring responsibilities for dependent children or
adults. In some countries we provide parental leave and pay entitlement above
the statutory minimum. We provide emergency backup childcare in the UK and US
through Bright Horizons while in India, we provide statutory day care assistancefor female and male colleagues.

Mental health awareness champions
LSEG now has 170 champions across the Group. Colleagues experiencing
mental health challenges can speak in confidence to a champion who has been
trained to provide friendly, non-judgemental listening and support.
Financial wellbeing
Colleagues have access to the Money Habits platform which is our financial
wellbeing programme from AON. Money Habits has resources and materials
to support colleagues with budgeting, saving, investing and managing debt.

LSEG now has 170 mental health champions across the Group.
Colleagues experiencing mental health challenges can speak in
confidence to a champion who has been trained to provide friendly,
non-judgemental listening and support.

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HIV/AIDS guidance and support
We support colleagues affected by HIV/AIDS, raise awareness and create anenvironment in which colleagues and people leaders feel confident discussing
related issues, and feel that they are treated fairly and offered appropriate
support. While programmes may be locally based and designed to meet
local conditions, the guidance applies to all colleagues.

Bereavement, dependants, carers, flexible working
We offer global bereavement leave which provides up to six weeks of paid leave
if an employee loses a child, partner or spouse. We also offer access to a minimumof ten days’ paid leave to support individuals with caring responsibilities globally.
In addition, local policies allow for paid and unpaid leave, such as Special Leave
policies, which cover time off for supporting dependants, bereavement or caring
emergencies. Other policies are in place allowing for other types of leaveassociated with family, sickness absence and sabbaticals.
We also have a Global Hybrid Working Policy which offers flexibility to colleagues,
enabling them to work both from home, in the office or with clients depending on
their role, which aims to support colleagues' work-life balance (in line with local
laws in each country).
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Health and safety
LSEG is committed to protecting our employees, customers, visitors andcontractors from the risk of injury and ill-health.
PolicyLSEG’s Environment, Health and Safety (EHS) Policy aims to promote a healthyand safe working environment across the Group. It mandates minimum EHS
arrangements to ensure compliance with legal requirements, continual
improvement of performance, and defines EHS responsibilities across theGroup. The Policy, which is sponsored and signed by the Chief Operating Officer,
applies to all personnel and relates to all LSEG work activities.
Management system
LSEG operates a structured management system to execute EHS compliancerequirements, and set targets with the aim of continually improving performance,
monitoring and communicating progress. LSEG’s EHS management system
has been developed to align to the ISO 45001 health and safety management
standard and continually evolves and improves to support the business needs.
LSEG also holds ISO 14001 certification for its environmental management systemat the London global headquarters.

AuditsAs part of a wider EHS Assurance process there are a number of levels ofinspection and audit in place to support safe people, processes and places.
All premises are subject to periodic workplace inspections carried out locallyagainst a standard template to highlight any immediate risks or deficiencies.
In addition to this, Legal Compliance Reviews are carried out to focus on ensuringlocal arrangements and processes are compliant with local legislation. To provide
a specific focus on LSEG’s EHS Management System, teams also carry out anannual compliance review to ensure that key plant and systems are suitably
maintained and certificated where required.
In 2023, LSEG carried out a number of inspections and audits, all of which
provided data to support the generation of site risk profiles, completed forevery LSEG property. Improvement actions were recorded and managed
through a structured process to remedy, control or mitigate any risks and clarify
local regulatory requirements. Processes are in place to ensure that, where
necessary, risks can be escalated in line with our Group Risk Framework.

All new joiners at LSEG are required to complete mandatory EHS training
and periodically thereafter to refresh their knowledge.

Training
All new joiners at LSEG are required to complete mandatory EHS training andperiodically thereafter to refresh their knowledge. Mandatory training covers
the elements of EHS management within LSEG, employee responsibilities,
reporting of accidents, incidents and unsafe situations as well as fire evacuationand first aid. This is supported locally through specific information andarrangements provided at induction and supporting documentation suchas emergency response plans.
For departments where specific EHS training is required this is managed throughtraining needs analysis for key positions and delivery is supported by the
EHS team, e-learning and external training providers. All employees haveaccess to information and guidance on the Company intranet as well as accessto competent persons within the central EHS team to provide assistance andguidance as required.

Please see the Sustainability Databook for health and safety statistics.

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Human rights
We are committed to respecting and promoting the human rights of all colleagues
and contractors. Our Human Rights Policy is aligned with the UN International
Labour Organization Standards and commits us to: uphold the freedom of
association and the effective recognition of collective bargaining; eliminate allforms of forced and compulsory labour, abolish child labour and eliminate
discrimination in respect of employment and occupation.

Modern slavery
We regard all forms of modern slavery and human trafficking as a crime and a
violation of fundamental human rights. We are committed to implementing andpromoting practices which combat modern slavery in all its forms. Our updated
risk assessment conducted in 2022 indicated that LSEG operates in an industry
where the risk of modern slavery and human trafficking in the workforce isinherently low. However, as a UK headquartered business we are committed
to adhere to the UK Modern Slavery Act 2015 and other local legislation.
Our Modern Slavery Act Statement can be found on lseg.com.

Our Code of Conduct incorporates expectations of our people on protecting andrespecting human rights and all colleagues are required to complete mandatory
training on the Code. The Chief People Officer, reporting to the Group CEO, isaccountable for overseeing human rights amongst LSEG’s workforce.
Freedom of association
LSEG colleagues have the right to establish or join independent trade unions,representative groups or collective bargaining agreements and this right forms
part of the employment contract. LSEG supports the effective exercise of tradeunion rights for all colleagues and does not condone discrimination against
workers’ representatives or bodies in any form. Colleagues can communicate
any concerns regarding collective bargaining to their people leader, relevantcolleague forum or via the LSEG Speak Up hotline.
LSEG management works closely with colleague representative bodies,maintaining open dialogue and positive relations via in-person and virtual
meetings alongside consultations and statutory and voluntary issues at a local
and national level. We operate a European Works Council. Its aim is to promotesocial dialogue between the senior management of LSEG and our colleagues.
Made up of 21 colleague representatives, it provides a voice for staff based inEurope. During 2023, we went through re-elections which led to an increase
in representatives in line with the changing shape of the LSEG business. At anindividual country level, we have collective body relationships, ranging from union
recognition through to employee welfare committees which help to ensure ourcolleagues have a collective voice.

LSEG is a Living Wage Foundation-accredited employer in the UK and assuch all UK colleagues are paid on or above the living wage.

Living wage
LSEG is a Living Wage Foundation-accredited employer in the UK and as such all
UK colleagues are paid on or above the living wage. Our contracts with suppliers
that have staff working on LSEG premises in the UK (including temporary andcontract workers) include a clause mandating the payment of the National Living
Wage or London Living Wage as applicable.
Responsible workforce restructuring
Whilst we hope to avoid redundancies wherever possible, organisational changes
may be required from time to time that result in some roles being made redundant.
Where this is the case, it is conducted in a responsible manner in line with allapplicable local laws. While local approaches may vary, impacted colleagues canaccess a range of information, support and guidance to help them navigate theprocess and identify new employment opportunities. For example, we provide
outplacement services to help colleagues find opportunities outside of theGroup and impacted colleagues can also access support through the employee
assistance programme to help with emotional, financial, physical andsocial wellbeing.

Day-to-day management of collective bargaining is the responsibility of
the Head of Employee Relations, who reports to the Chief People Officer.
We disclose the proportion of our workforce covered by such agreementsin the Sustainability Databook.

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Community
The LSEG Foundation is the main channel for our community investment andengagement. Its mission is aligned with LSEG's purpose and is focused on
enabling inclusive and sustainable economies and communities. Working withcharity and NGO partners, it delivers a range of programmes across the globe
enabling economic empowerment through education, employment and enterprise.

Governance
The LSEG Foundation is an independent entity regulated by the Charity
Commission for England and Wales. It is governed by a Board comprising of
six internal and two independent trustees. The Board meets quarterly and ischaired by LSEG’s Chief People Officer. The independent trustees are Tom Jones,
COO of Women’s World Banking and Abha Thorat-Shah, Executive Director,
Social Finance, of the British Asian Trust.

The LSEG Foundation receives its funding through LSEG plc donations andcorporate and colleague fundraising. It delivers its mission by focusing on thefollowing key strands of activity:

Day-to-day management of the charity is the responsibility of the Head of the
LSEG Foundation, who is supported by a small dedicated team and three regional
charity committees for the Americas, EMEA and Asia Pacific. Community Action
Teams mobilise colleagues locally for fundraising and volunteering activities.

Strategic partners: Multi-year high-impact partnerships deliver economic
empowerment programmes across the world. Current partners are Room to Read,
Girls Who Code, Skills Builder and Women's World Banking.
Regional partners: Annual project and volunteering grants are given to a range ofregional and local charities, tackling the issues that matter most in the communities
where we operate.
Sustainable economy: The LSEG Foundation funds a small number of noncommercial initiatives which support a just transition to net zero. The current
partners are the London School of Economics’ Transition Pathway Initiative (TPI),IFRS Foundation’s International Sustainability Standards Board (ISSB) and
Chapter Zero.

We encourage LSEG’s colleagues to support the LSEG Foundation’s
work through matched fundraising and by using their two annual volunteer
days, to give their time and skills to our charity partners or other causes in
the community.

Charity selection and grant process
Proposals for new strategic partnerships are developed by the LSEG Foundation
management team and prospective partners are invited to apply and present
to the Board of trustees. The proposal is then assessed and determined by the
Board. Prospective regional charity partners are able to apply for grants during
the annual application window, after which the application is assessed using
a scorecard approach, on factors such as its alignment with the LSEG Foundation’s
objectives, clarity on programme delivery and impact measurement, and level ofengagement across LSEG communities.
Monitoring impact
Strategic, regional and sustainable economy partners are required to track andreport on the impact of their work on behalf of the LSEG Foundation. We monitor
key performance indicators for each charity and aggregate these metrics at theend of the year.

Disaster relief: The LSEG Foundation partners with the International Rescue
Committee to provide humanitarian relief caused by conflict or natural disasters.
During the year, relief funding was given to those impacted by earthquakes in
Turkey and Syria, floods in Libya, and the conflicts in Ukraine, Israel and Palestine.

Volunteering
We encourage LSEG colleagues to support the LSEG Foundation’s work throughmatched fundraising and by using their two annual volunteer days, to give theirtime and skills to our charity partners or other causes that matter most to them.
Further detail of the LSEG Foundation’s grants, colleague volunteering and impact
measures are provided in the Sustainability Databook.
Multi-year high-impact partnerships deliver economic empowerment
programmes across the world. Current partners are Room to Read,
Girls Who Code, Skills Builder and Women's World Banking.

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GovernanceIn this section

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Business conduct

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Information security and data privacy

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Government relations

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Sustainability risk management

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Skills and competence39

Supply chain

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Business conduct
Employee Code of Conduct
The Code of Conduct sets out the standards and behaviours expectedof all LSEG colleagues and contractors globally. It is freely available to allcolleagues and contractors on the Company intranet in ten languages.
It is also available externally on LSEG.com. Adherence to the Code is
mandatory and forms part of the employment agreement. Failure toadhere to the Code would be reflected in a colleague’s performanceappraisal and could lead to termination of employment.
All colleagues are required to complete mandatory training on the
Code each year and attest to understanding and complying with it.
Responsibility for the Code of Conduct rests jointly with the Group
Chief Compliance Officer and the Group Head of Total Reward,
Inclusion & Performance. They report to the Group General Counsel
and Chief People Officer respectively, both of whom are members of
the Executive Committee and report to the Group CEO.
The Code covers a range of topics including professional behaviour,bullying, harassment and discrimination, conflicts of interest, market
abuse and insider dealing, gifts and entertainment, fair competition,bribery and corruption, sanctions, money laundering and terrorist
financing, tax evasion, fraud, government, political and religious affairs,
human rights, modern slavery, diversity and inclusion, the community
and the environment, health, safety and security, information security,
records management, the media and using social media responsibly,and Speak Up.

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Raising concerns
We are committed to providing an open environment where our colleagues,
contractors and other third parties feel comfortable raising concerns aboutadherence to our Code of Conduct, relevant laws and regulations or if they
consider something unethical or potentially harmful. LSEG’s Speak Up Policy
sets out how LSEG employees, contractors and other third parties can raise
concerns confidentially while offering individuals protection from retaliation suchas demotion, withholding of promotion, reduction of wages, discrimination,
victimisation, harassment or unjustifiable disciplinary proceedings.
The process for raising concerns is:— Report: individual selects their preferred channel for raising a concern, which
could be with their manager, their manager’s manager or HR, via the confidential
and anonymous 24-hour Speak Up hotline (phone and online) which is
independent from LSEG, or with their legal & compliance or risk contact.
No proof is required to submit a report, just reasonable grounds for believing
an issue exists.
— Investigate: the Speak Up team will acknowledge receipt of the report withinseven days and will investigate the concern fully. To the extent possible,
and in line with local laws, the person raising the concern will be informed
when the investigation is complete.
— Action: depending on the investigation’s findings appropriate and proportionate
action will be taken.
— Complaints: if the person raising a concern has a complaint regarding
its handling, that person can raise this with the Speak Up team, Chief
Internal Auditor, or the Whistleblowing Champion who is the Chair of the
Audit Committee.
— Board review: all whistleblowing reports are reviewed by the Audit Committee.

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Business conduct continued
Financial crime, bribery and corruption
LSEG is committed to supporting government, law enforcement andinternational bodies to combat the use of the financial services sector
to facilitate financial crime.

Global tax strategy
The payment of tax is an important contribution to the economies and societiesthat LSEG operates in, and we believe in the obligation to pay our fair share oftax legally due in any country at the right time.

Financial crime, including bribery and corruption, is an identified risk to LSEG
in the Group Risk Taxonomy. The Group has a very low appetite for financial
crime breaches as it undermines the rule of law, democratic processes and thewellbeing and human rights of citizens, and distorts free trade and competition.

LSEG’s Tax Governance Policy sets out the Group’s approach on tax complianceand reporting, risk management and planning. In line with this, the Group does
not undertake tax positions that would damage the brand and reputation of theGroup or undermine the Group’s Tax Strategy and/or governance. Similarly, LSEG
does not undertake purely artificial transactions to obtain a tax benefit and will
under no circumstance knowingly evade tax. To that end, we are committed toensuring that our transfer pricing and intercompany transactions reflect theeconomic substance of the business to achieve fair and appropriate allocation of
profits in all the jurisdictions we operate. Finally, we ensure the Group complies
with all relevant tax laws and regulations, considering policy intent. The Group
Chief Financial Officer is the executive responsible for the Global Tax Policy andthe Audit Committee is responsible for its oversight.

Our Financial Crime Policy sets out requirements to minimise financial crime, which
encompasses, but may not be limited to, money laundering, terrorist financing,breach of international trade sanctions, bribery and corruption, fraud and false
accounting, insider trading, market abuse, theft or misuse of confidential
information or other malpractice.
LSEG also has a dedicated policy on anti-bribery and corruption which applies
globally and is aligned with the UK Bribery Act and the US Foreign Corrupt
Practices Act.

LSEG is committed to supporting government, law enforcement andinternational bodies to combat the use of the financial services sector tofacilitate financial crime.

The LSEG Anti-Bribery and Corruption Policy makes clear the specificresponsibilities of all colleagues and business partners and we require
all our colleagues, partners, agents, suppliers and customers to comply.
Involvement in the activities covered by the Bribery Act by any of our suppliers,
customers, partners and agents can lead to termination of all the relevant
agreements and relationships with our Group. LSEG has zero-tolerance towards
breaching bribery regulations that is fully backed throughout the business andby the Board of Directors and the Executive Committee.
LSEG’s process for managing bribery and corruption risk includes:— Use of proportionate procedures including preventative and detective controls
and conducting risk assessments.
— Mandatory bribery and corruption training for all employees.
— Senior leadership communication of LSEG’s zero tolerance for bribery
and corruption.
— Appropriate due diligence on third parties.
— Monitoring of anti-bribery and corruption measures and controls
to test effectiveness.

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Information security and data privacy
Cyber security
Information security is a significant risk to LSEG, its customers and business partners.
Information security is the accountability of the Chief Information Officer (CIO) who
is a member of the Executive Committee and reports to the CEO. The day-to-day
management is the responsibility of the Chief Information Security Officer (CISO)
who leads our dedicated Cyber Security function which defines the information
security strategy and provides appropriate controls and capabilities to the Group.
Each business division within LSEG is supported by embedded BusinessInformation Security Officers (BISOs) who ensure security risks are identified
and managed in line with Group standards and controls. BISOs are part of the
Cyber Security leadership team.
Policies
LSEG maintains a comprehensive set of Group internal policies endorsed by the
Board and Executive Committee. The policies outline key principles and take into
consideration relevant industry standards and regulatory requirements relating to
information security and data privacy.
Information security policy
LSEG's Information Security Policy sets out the overarching enterprise-wide
information security guidance through which information security risks are
identified and managed. It describes the policy positions and guidance that mustbe followed when handling information or using LSEG assets and resources.
The Information Security Policy and its supporting security standards are aligned
to global industry standards, including those defined by the National Institute ofStandards and Technology and the Financial Services Sector Coordination Council(NIST FSSCC). Regulatory requirements are monitored and incorporated in thepolicy as required.

Data privacy policy and privacy programme
LSEG's Privacy and Data Protection Policy sets out the Group’s policy on dataprotection and privacy compliance. This applies to all personal data that iscollected, maintained, and used in any format by any division, business unit oraffiliate of LSEG. The Group takes data protection and privacy seriously and seeks
to ensure that personal data that is processed during the course of its business
is used fairly, lawfully and in compliance with all applicable data protection andprivacy legislation. The Policy outlines the principles, governance structure, roles,
and responsibilities, and underpins the LSEG Privacy Programme which has
embedded controls and processes to help manage data privacy risk. Privacy by
Design is an integral part, meaning privacy is built into our systems and processes
from the outset. The key data privacy principles that underpin the policy include:— Lawfulness, fairness and transparency.
— Lawful basis.
— Purpose limitation.
— Data minimisation.
— Accuracy.
— Data retention.
— Security, integrity and confidentiality.
LSEG’s Data Privacy Programme is based on the Centre for Information Policy
Leadership (CIPL) Privacy Framework, which aligns with guidance published byregulators and industry guidelines such as NIST. Senior leadership maintains
oversight in the implementation of the Privacy Programme.
Data classification and handling
The LSEG data classification and handling standard mandates the rules forthe classification and handling of data held by the Company. Data is classified
according to its sensitivity to determine the level of controls required.
This includes, but is not limited to, encryption, for example where sensitive
data is transmitted over public networks or held in off-site backup locations.
Cryptographic requirements are defined in the LSEG Cryptographic Standard.
Details include:— Usage of industry standard encryption methods and LSEG approved algorithms.
— Usage of LSEG approved solutions for transferring data between the Group andthird parties.
— Establishment and documentation of key management processes.
— Public Key Infrastructure, certificate management and authorities.

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Training and awarenessAll colleagues are required to complete mandatory training and an assessment
regarding information security and data privacy each year. All colleagues andcontractors complete mandatory information security training on joining LSEG,
and at least annually on an ongoing basis, to ensure they are made aware of their
responsibilities, common information security threats, asset and data classification
systems and usage, risk indicators and reporting of incidents.
LSEG performs regular phishing simulations and provides follow-up training whereclick rates are deemed higher than they should be. Specialist and focused trainingis also mandated for staff operating within certain designated high-risk roles.
Monitoring of effectivenessThe performance and effectiveness of LSEG’s information security and data
privacy controls are regularly tested using a variety of means. These include:— Executive reporting and senior management committees— Group Risk oversight and challenge of information security risk
management activities— Design and operating effectiveness testing of key information security controls— Internal and external audit engagements to evaluate LSEG's security risk profileand controls— Periodic assessments of key data centres against industry certifications andaccreditations such as ISAE 3000 or ISO 27001— Engagement of independent third parties to perform SOC2 security
assessments for selected applications.
Business continuity arrangements
LSEG’s Business Continuity Policy is aligned to ISO 22301 and business continuity
plans are established and tested periodically in line with agreed standards andrequirements. Each LSEG business unit has business continuity procedures inplace. These allow important services to be continued at alternate locations in theevent business continuity plans are initiated. Employees are trained to be aware ofand understand their roles and responsibilities in the event of a disruptive incident.

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Government relations
Political donations
LSEG does not express support for any particular political party, politicalorganisation or political candidate. We do not make direct financial donations
to political parties.
Colleagues may choose to make donations from their own personal funds(including those to a Political Action Committee (PAC) in the US) provided that all
regulatory and legal requirements are met, and that they are not made on behalfof the Group or made with the intention of appearing to be on behalf of the Group.
For instance, LSEG has established a US PAC which is a voluntary pool of eligible
employee personal contributions. LSEG’s PAC supports bipartisan candidates for
US Congress and does not participate in state, local, or presidential races. LSEG’s
PAC is strictly governed by the rules of the US Federal Election Commission (FEC)
and is legally required to file publicly available reports disclosing all receipts anddisbursements.
Advocacy
LSEG engages with governments, regulators, policymakers and political parties on
various issues that might impact our business, our customers, and the businessenvironment in which we operate. When engaging with these groups we clearly
identify ourselves as representing LSEG and follow applicable lobbying andantitrust laws, restrictions and regulations. LSEG’s Government Relations andRegulatory Strategy (GRRS) team works to support the development of policy andregulation globally and in the jurisdictions in which LSEG operates. All colleagues
must contact the GRRS team before engaging with government officials, regulatorsor politicians or speaking publicly about policy matters on behalf of LSEG.

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Trade associations
LSEG participates in many trade associations and industry groups globally.
We believe that it is important for LSEG to contribute to discussions relevant topublic policy and other issues that impact the financial sector and wider business
community. However, LSEG’s involvement does not imply that we support every
collective position taken by these organisations.
Policy consultation responses and thought leadership
Each year LSEG responds to a large number of consultations; many of those
responses are published by the respective policy makers. In 2023, examples
of some of the more prominent sustainability-related consultations to which
we responded include:— International Sustainability Standards Board (ISSB) Consultation on Agenda
Priorities. Available here.
— European Commission Consultation on Proposal for a Regulation on theTransparency and Integrity of ESG Rating Activities. Available here.
LSEG also shares select perspectives on policy and regulation via our website.
2023 examples of our policy insights on sustainability include:— Now is the time to make climate transition plans “business as usual”.
Available here.
— ISSB is the catalyst to accelerate sustainable investment. Available here.

LSEG engages with governments, regulators, policymakers and politicalparties on various issues that might impact our business, our customers,
and the business environment in which we operate.

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Sustainability risk management
Sustainability risk management framework
The Group is subject to a variety of risks which may have an impact on our ability
to deliver our strategic plan. These include sustainability-related risks which havebeen integrated into LSEG’s risk management processes and procedures and arereflected in our risk taxonomy and Enterprise Risk Management Framework. The
requirements for the management of sustainability risk specifically are definedwithin the Sustainability Risk Management Framework, newly published in 2023.
Sustainability is a specific strategic risk, manifesting in product risk strategy,
greenwashing, ESG ratings and climate transition. Sustainability risks are also
embedded within a wide range of other existing strategic and non-strategic risks
within our risk taxonomy, including operational resilience; people; regulatory,compliance, legal, corporate disclosure and financial and model risks.
All business functions and divisions within the Group are responsible for
identifying and assessing their risks, inclusive of sustainability risks. Risks are
identified through a variety of means, including horizon scanning, emerging risk
exercises and ongoing periodic reviews of the risk profile. These are thenassessed on an ongoing basis, as well as through specific activities, such as theannual risk and control assessment and third-party risk assessments. Risks andopportunities with a potential substantial impact will be raised and factored intobusiness strategy and operations. Principal risks are those considered to havethe highest potential financial or strategic impact and are defined based on
magnitude of financial costs to the Group as well as reputational impact.
In addition to ongoing assessment, climate risks are specifically assessedas part of climate risk modelling activities.

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Sustainability risk management teamThis team sits within the Group Risk function. It provides guidance and training on
the requirements of the Sustainability Risk Framework and supports Divisional/
Functional Risk Coverage teams to review and challenge the sustainability risk
profile of Divisions and Functions. The team is also responsible for developing
a Group-wide view of the management and status of sustainability risks.
The Sustainability Risk Team reports to the Non-Financial Risk Committee (NFRC)
when specific issues arise, and to the Board Risk Committee no less than annually
and as needed.
The Board Risk Committee has oversight of the Group’s Risk Framework andrisk appetite. Sustainability risks, including those related to climate change, areembedded in and raised through this forum. Sustainability risks are also discussed
at the Sustainability Committee, as appropriate; for example these may stem from
regulatory changes, reputational risks or climate-related risks.
Promoting a positive risk culture
A positive risk culture is developed at LSEG in a number of ways. One of
LSEG’s Group Strategic Objectives is ‘Resilience’ which is focused on driving
risk awareness and management, improving infrastructure and delivering
long-term resilience, compliance and sustainable growth. Risk management
criteria are incorporated into colleagues' annual performance reviews via theiralignment to the Group’s Strategic Objectives which in turn are linked tocolleague remuneration.
Awareness and understanding of the Group Enterprise Risk Framework, including
sustainability risks, is developed through training and awareness raising exercises
such as the Annual Risk Culture Week, quarterly webinars on risk themes, and an
Enterprise Risk Management intranet page which helps colleagues understandtheir roles in implementing effective risk management at LSEG.

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Skills and competence
It is important that those involved in overseeing and delivering LSEG’ssustainability strategy have the appropriate skills and competencies. In 2023
we introduced new learning resources to ensure colleagues can develop theirsustainability knowledge.
Sustainability Campus
Available to all colleagues on the Group intranet, the LSEG Sustainability Campus
is a central information hub to help colleagues build their sustainability knowledge
at their own pace. The Campus houses a wide range of resources such as videos,interviews, podcasts, and reading materials. It also provides two modular learning
pathways which each take around five hours to complete. These are easy tofollow curated learning pathways comprising online video and reading content.
The Foundation Pathway
A modular course that builds sustainability knowledge on key material topics,
taking a total time of five hours to complete:— Introduction: LSEG’s commitment to sustainable growth— ​Module one: climate— Module two: biodiversity— Module three: human rights— Module four: take action— Understand key sustainability terms
The LSEG Pathway
This develops a deeper understanding of LSEG’s sustainability strategy
and programmes, taking a total time of five hours to complete:— Module one: introduction to LSEG sustainable growth— Module two: our ambition and strategy— Module three: our action on climate— Module four: inclusive economies and the LSEG Foundation— Module five: reporting on our progress— LSEG sustainable finance and investment— Sustainability glossary

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Sustainability Unlocked
For colleagues who need to develop a deeper level of knowledge than available
through the Sustainability Campus, in 2023 we introduced an online sustainability
learning portal, Sustainability Unlocked. This is managed by a third party and gives
access to 350+ videos on a range of sustainability topics. These videos arepresented by experts in their field and are accompanied by graphics and shorttests to support learning journeys. The portal is constantly updated to help people
navigate the fast-moving sustainability agenda.
We have identified almost 2,000 colleagues who, due to the nature of their role,are eligible to complete training on this platform enabling them to develop theirsustainability skills and competence. Each colleague in scope has assigned
learning, tailored for their role, for which they can collect Continuing Professional
Development (CPD) points.
All members of the Executive Committee, Executive Risk Committee, Sustainability
Committee and Climate Transition Steering Committee and Group Leaders haveaccess to Sustainability Unlocked. Other groups with access to this platform
include colleagues in Finance, Legal & Compliance, Procurement, Risk, People,
Sales and Account Management, Property & Facilities, Communications,Marketing, Government Relations and Regulatory Strategy, and Sustainability
and Sustainable Finance roles.

In 2023, we introduced an online sustainability learning portal, Sustainability
Unlocked. This is managed by a third party and gives access to 350+
videos on a range of sustainability topics. These videos are presented byexperts in their field and are accompanied by graphics and short tests to
support learning journeys.

Board sustainability experience and skills
A Board effectiveness review is carried out annually in line with the UK Corporate
Governance Code with a review being externally facilitated every three years.
The last externally facilitated review was conducted in 2022 which included
sustainability considerations. This led to training in 2023 for the Audit Committee
regarding climate-related reporting requirements and regulations.
The 2023 Board effectiveness review was conducted internally using
a questionnaire provided by Lintstock building on the 2022 review.
The review included considerations regarding sustainability which will
inform Board insight sessions on sustainability in 2024.

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Supply chain
Supply chain governance
LSEG works with over 5,000 suppliers. We are committed to maintaining highstandards of integrity and risk management in our supply chain as set out in ourGroup Procurement Policy and our Third-Party Risk Management (TPRM) Policy.
All suppliers are required to comply with our Supplier Code of Conduct whichsets out our expectations of suppliers. The Code covers bribery and corruption,
payment of taxes, labour and human rights, modern slavery, diversity and inclusionand environmental management. Supplier contracts contain standard clauses
regarding sustainability matters such as environment, human rights and modern
slavery, as well as the requirement to adhere to LSEG’s Supplier Code of Conduct.
The Supplier Code of Conduct can be found on lseg.com.

Raising concerns
Where concerns arise regarding a third party’s adherence to LSEG’s Supplier
Code of Conduct, relevant laws or regulations, these can be reported in line with
LSEG’s Speak Up Policy. All LSEG colleagues, all suppliers, and all supply chain
workers are provided the means to raise concerns via our whistleblowing system.
The confidential 24-hour Speak Up hotline (phone and online) is managed
independently from LSEG and concerns can be raised anonymously if preferred.
Failure to comply with the Supplier Code of Conduct or with applicable laws,
and regulation may result in termination as an LSEG supplier, where this right has
been contractually agreed in advance by both parties, and referral of the matterto local authorities.

Integration of sustainability into supply chain
We have embedded sustainability considerations into all stages of our supply
chain process, from sustainability questions in our RFP process, inherent riskquestionnaire, and due diligence through to minimum control requirements
making clear what we expect to see in place for all third parties, including humanrights, diversity and inclusion, environment, legal compliance and grievancemechanisms. Ongoing screening of all suppliers is carried out continuously toidentify any business conduct controversies that may arise. Identified issues areinvestigated to determine the appropriate course of action, which may involve
further analysis or engagement with the supplier. Ultimately LSEG could terminate
a supplier contract if the issue is not satisfactorily resolved. No contracts havebeen terminated due to sustainability concerns during the year.

Climate targets
As part of our Climate Transition Plan, we have set a supply chain engagementtarget. Our target is approved by SBTi and aims to ensure that suppliers
responsible for at least 67% of our Scope 3 (purchased goods and services)emissions have adopted their own science-based emission reduction targets.
All category managers have undertaken tailored training to equip them to engage
with suppliers regarding our climate targets. Also during the year we hosted
a series of webinars for suppliers focused on LSEG’s Climate Transition Plan,
requirements of suppliers regarding our climate targets, carbon reduction
methods and climate change training.

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67%

Suppliers by emissions to have set science-based targets by 2026

Guidance documents have been provided for those suppliers who we
expect to adopt science-based targets including: Step-by-step Guide to
Science-Based Targets; Reduction Strategies to achieve Science-Based Targets
for Scopes 1, 2 and 3 emissions; Scope 1 and 2 Greenhouse Gas Inventory andTarget-Setting Basics.

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Glossary
Biodiversity
The biological diversity of flora and fauna species on Earth, a complex web oflife that underpins the natural life processes on the planet.
Carbon neutral
Refers to an activity or a company which offsets the same amount of carbon
or greenhouse gases that it emits. Carbon neutral means that emissions
produced and offset are equivalent.
Carbon offset or credit
A carbon offset broadly relates to a reduction in greenhouse gas emissions –or an increase in carbon storage – that is used to compensate for emissions that
occur elsewhere, created from carbon dioxide-saving projects or programmes.
Climate change
Climate change refers to long-term shifts in temperatures and weather patterns
which may occur due to natural forces, such as variations in the solar cycle orvolcanic eruptions but, are also driven by persistent anthropogenic (caused byof influenced by people) factors such as the burning of fossil fuels, agriculture
and industrial processes.
Climate change adaptation
Policies and actions to increase resilience to the effects of climate change.
Climate change mitigation
Policies and actions to reduce the emissions of greenhouse gases, such as
reducing the amount and intensity of fossil fuel burnt.
Climate risk
The risks associated with a changing climate, including physical risks – such as
those arising from changes in weather patterns, rising temperatures, sea-levelrise, and extreme weather events – and transition risks, arising from changes
associated with the transition to a low carbon economy, such as policy,
regulatory and technology change.
Climate transition planA plan setting out how an organisation will contribute to, and prepare for,the global transition towards a low carbon economy.

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COP
Under the UN Framework Convention on Climate Change (UNFCCC) theacronym ‘COP’ stands for ‘Conference of the Parties’. The COP is the supremedecision-making body of the UNFCCC. All States that are Parties to theConvention are represented at the COP, at which they review the implementationof the Convention and any other legal instruments that the COP adopts andtake decisions necessary to promote the effective implementation of theConvention, including institutional and administrative arrangements.
Equity, diversity and inclusion (EDI)
Equity refers to the fair treatment of all people ensuring equal access, opportunity,
treatment, outcomes and impact in employment and service delivery. Diversity is
the differences between people in terms of gender, ethnicity, abilities, age, beliefs,
socioeconomic background, marital or partnership status and sexual orientation.
Inclusion is the practice of including people in a way that is fair for all, values
everyone’s differences and empowers and enables each person to be themselves
and achieve their full potential.
Energy attribute certificate (EAC)
Certificates that provide information about the environmental attributes ofelectricity per megawatt hour. EACs label electricity that has not emitted carbon
in its generation as renewable (solar, wind, biomass) and are the most credible
way of ensuring a business is purchasing from a viable source, other than throughdirect procurement from a local renewable source. Renewable generators cansell EACs together with the electricity itself (bundled) – often in the form of
a green tariff – or separately to the electricity (unbundled). Both methods
are valid, robust ways to track and claim renewable electricity sourcing.

GHG emissions: Scopes 1, 2, and 3
Scope 1: all emissions from the direct activities of an organisation owned orcontrolled by them such as fuel combustion on site from generators or gas boilers.
Scope 2: indirect emissions from energy purchased and used by the organisation.
Scope 3: all other indirect emissions from activities of the organisation, occurringfrom sources not under their ownership or control. Scope 3 emissions often form
the greatest share of an organisation’s carbon footprint, covering upstream anddownstream emissions associated with purchased good and services, businesstravel, products and services, waste and water.
Green tariffs
Programmes in regulated electricity markets offered by utilities that allow
commercial, industrial and household customers to buy bundled renewableelectricity from a specific project through a special utility tariff rate.
Greenwashing
Greenwashing involves providing misleading or false information, or omitting
information in public communications such as product descriptions, marketingor advertising. This can occur intentionally or unintentionally and can havesignificant reputational, commercial or regulatory consequences.
Human rights
Human rights are the basic rights and freedoms that belong to all human beings,
regardless of race, sex, nationality, ethnicity, language, religion, or any otherstatus. These include the right to life and liberty, freedom from slavery and torture,
freedom of opinion and expression, the right to work and education, and many
more. Everyone is entitled to these rights, without discrimination.

GFANZ
Glasgow Financial Alliance for Net Zero (GFANZ) is a global coalition of leading
financial institutions committed to accelerating the decarbonisation of theeconomy to achieve the objectives of the Paris Agreement.

ISSB
The ISSB (International Sustainability Standards Board) maintains standards forhigh-quality, comprehensive global baseline sustainability disclosures focusedon the needs of investors and the financial markets.

Greenhouse gas (GHG) emissions
Gases that contribute to the greenhouse effect by absorbing infrared radiationin the Earth’s atmosphere. Carbon dioxide and methane are examples ofgreenhouse gases. These are released into the atmosphere as a result of
power generation, transportation, agriculture and other industrial processes.

Net zeroNet zero means reducing all greenhouse gas emissions as much as humanly
possible and offsetting only the emissions that cannot be eliminated. Net zero
GHG emissions are designed to keep us on track for a global temperature riseof less than 1.5°C compared with pre-industrial levels.

London Stock Exchange Group plc
Annual Sustainability Report 2023

Introduction

Sustainable financeand investment

Climate change

PeopleGovernance

Glossary continued
Materiality
A materiality assessment identifies and prioritises the sustainability issues
that matter most to an organisation and its stakeholders. The relevance ofsustainability issues evolve in light of global events, regulations and changing
stakeholder interests.

Science-based targets
Carbon emissions targets that are in line with reductions necessary to meet thegoals of the Paris Agreement to limit global warming to well-below 2°C above
pre-industrial levels and pursue efforts to limit warming to 1.5°C. The sciencebased targets initiative (SBTi) approves targets which are science-based.

Modern slavery
An umbrella terms for extreme forms of exploitation such as human trafficking,slavery and slavery-like practices such as servitude, forced or bonded labour,
forced marriage and child exploitation.

Sustainability
Sustainability refers to the capacity to maintain or support a process continuously
over time. In business and policy contexts, sustainability seeks to avoid thedepletion of natural resources, maintaining a balance between environmental,social and economic goals. The 1987 UN Brundtland Commission defines
sustainable development as “meeting the needs of the present withoutcompromising the ability of future generations to meet their own needs”.

Paris Agreement
The Paris Agreement, adopted within the United Nations Framework Convention
on Climate Change (UNFCC) in December 2015, aims to strengthen the global
climate change response by increasing the ability of all to adapt to adverse
impacts of climate change and foster climate resilience. It aims to hold the levelof average global warming well below 2°C and pursue efforts to hold it well
below 1.5°C.
UN Race to Zero
Race To Zero is a global campaign to rally leadership and support frombusinesses, cities, regions and investors for a healthy, resilient, zero carbon
recovery that prevents future threats, creates decent jobs, and unlocks
inclusive, sustainable growth.
Renewable energy
Also referred to as clean or green energy which is sourced by means that are
naturally replenished, such as solar and wind, as opposed to finite fossil fuels.
Residual emissions
Emissions sources that remain unabated after mitigation.
RE100
A global corporate leadership initiative bringing together businesses committed
to 100% renewable electricity. Companies joining RE100 set a public goal tosource 100% of their global electricity consumption from renewable sources by aspecified year, either by purchasing it directly or using energy attribute certificates.

43

Sustainable Finance and Investment (SFI) solutions
LSEG’s products and solutions including sustainability-related data, analytics,
indices, capital raising and corporate services.
Taxonomy
Sustainable finance taxonomies are the criteria that enable an evaluation ofwhether, and to what extent, a company’s products and services contributeto sustainability goals.
TCFD
The Taskforce on Climate-related Financial Disclosures (TCFD) provides
recommendations regarding the corporate disclosure of an organisation’s
management of climate change.
TNFD
The Taskforce on Nature-related Financial Disclosures (TNFD) provides
recommendations regarding the corporate disclosure of an organisation’s
management of nature and biodiversity.
Voluntary carbon market
Markets where carbon credits are purchased, usually by organisations,
to offset their emissions.

London Stock Exchange Group plc
Annual Sustainability Report 2023

Glossary

For more information please visit our website
www.lseg.com or email sustainability@lseg.com

MANILA

London Stock Exchange Group plc
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London EC4M 7LS
Telephone +44 (0)20 7797 1000