Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer privacy
• Data security
• Ethical conduct of business
• Diversity, equity & inclusion
• Human capital development
• Employee health & wellbeing

Environmental Achievements

• Began measuring Scope 1, 2, and some Scope 3 emissions in January 2022.
• Responded to the minimum version of CDP’s climate change questionnaire in July 2021.
• Two of three US data centers have LEED Silver certification, with electricity from 100% renewable sources.
• NYC headquarters is LEED Gold-designed building.
• London office is in a BREEAM-certified building.

Social Achievements

• Launched Diversity Dealer Initiative (DDI) to facilitate trading with minority-, women-, and veteran-owned broker-dealers.
• Launched “Trading for Trees” program, resulting in over 255,000 trees planted in 2021.
• MarketAxess Charitable Foundation made $445,000 in donations and matched $58,000 in employee donations.
• Established three employee resource groups (ERGs): Elevate, Women at MarketAxess, and Women in Technology.
• Improved employee onboarding processes for remote employees during the COVID-19 pandemic.

Governance Achievements

• Completed a comprehensive ESG materiality and prioritization assessment.
• 85% of Board members are independent.
• Implemented a framework for linking diversity and human capital goals to executive compensation (effective 2022).
• Maintained ISO/IEC 27001:2013 certification for information security.
• Strong stockholder engagement program with regular updates on progress.

Climate Goals & Targets

Environmental Challenges

• Challenges regarding the acceptance and implementation of ESG initiatives.
• Economic, competitive, social, and regulatory factors.
• Measuring and managing carbon footprint (initially a lower priority).

Mitigation Strategies

• Engaged a consulting partner to measure and manage carbon footprint.
• Developed and implemented a comprehensive ESG strategy.
• Established clear goals and reporting mechanisms.
• Ongoing stakeholder engagement to address concerns.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Risk Management and Procurement Policy (includes criticality assessment and review of regulatory and compliance status).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, GRI, UN Global Compact

Certifications: ISO/IEC 27001:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 8 (Decent Work and Economic Growth)

Community involvement activities through the MarketAxess Charitable Foundation align with SDG 4 and SDG 8.

Sustainable Products & Innovation

• Diversity Dealer Initiative (DDI)
• Trading for Trees program

Awards & Recognition

• Top 10 Best Places to Work in New York City
• Top 5 Best Large Places to Work in New York City (Built In NYC)

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environment

Environmental Achievements

• Launched "Trading for Trees" initiative, resulting in over 316,000 trees planted in 2022.
• Ranked as the largest electronic corporate and municipal green bond marketplace in the US (based on TRACE-reported data).

Social Achievements

• Increased investment in learning and development for all employees and launched a centralized learning management system.
• Launched programs to ensure a culture where diverse employees thrive.
• Expanded philanthropic and community partnerships through the MarketAxess Charitable Foundation.
• Launched Diversity Dealer Initiative (DDI) to facilitate trading with minority-, women-, and veteran-owned broker-dealers.

Governance Achievements

• Board oversight of ESG strategy and initiatives.
• ISO/IEC 27001:2013 certified for information security.
• Received independent audit attestation regarding SOC 2 Type 1 compliance (working towards Type 2).

Climate Goals & Targets

Environmental Challenges

• Climate-related physical risks (floods, changing temperatures) and transition risks (reputational risks related to sustainability practices).
• Data security breaches (although no material breaches in the last three years).

Mitigation Strategies

• Developed a Business Continuity Plan (BCP) to address disruptions, including those caused by extreme weather events.
• Robust information security policies and procedures, including ISO/IEC 27001:2013 certification and SOC 2 compliance efforts.
• Regular monitoring of data systems and employee training on data security.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Risk Management and Procurement Policy (includes criticality assessment and regulatory/compliance review).

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Changing temperatures

Transition Risks

• Reputational risk related to sustainability practices

Opportunities

• Expanding capabilities to advise clients on sustainability and climate-related needs.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO/IEC 27001:2013

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Diversity Dealer Initiative (DDI)
• "Trading for Trees" program

Awards & Recognition

• Built In’s Best Places to Work awards (2023)

Environmental Metrics

ESG Focus Areas

• Customer privacy
• Cybersecurity
• Ethical conduct of business
• Diversity, equity & inclusion
• Employee health & well-being
• Human capital development

Environmental Achievements

• Began purchasing renewable energy-related transferable tax credits under the Inflation Reduction Act, lowering the effective tax rate while supporting renewable energy producers.
• Trading for Trees program surpassed 1 million trees planted since its inception.

Social Achievements

• Improved representation of women in leadership positions; Global Management Team will be 30.8% female following a new CFO hire.
• Launched UK Apprenticeship program, hiring three female apprentices.
• Launched Amplify ERG for LGBTQ+ employees and allies.
• Enhanced fertility coverage for US employees to provide up to a $25,000 lifetime maximum benefit.
• Increased employer match on US 401(k) contributions from $10,000 to $17,500 per year.

Governance Achievements

• Appointed Nancy Altobello as Lead Independent Director.
• Board is 83.3% independent and 41.7% diverse.
• Adopted MarketAxess Holdings Inc. Erroneously Awarded Compensation Recovery Policy and Incentive-Based Compensation Recovery Policy.

Climate Goals & Targets

Environmental Challenges

• Acute physical risk from floods affecting the eastern coast of the US and potentially disrupting business operations (medium-term risk).
• Chronic physical risk from changing temperatures increasing utility operating costs (medium-term risk).
• Reputational risk from sustainability practices and ESG disclosures (long-term risk).

Mitigation Strategies

• Developed a Business Continuity Plan (BCP) to address significant disruptions to business, including those caused by extreme weather events.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Risk Management and Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Changing temperatures

Transition Risks

• Reputational risk

Opportunities

• Expanding capabilities to advise clients on sustainability and climate-related needs

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO/IEC 27001:2013

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Diversity Dealer Initiative (DDI)
• Trading for Trees program

Awards & Recognition

• Built In’s Best Places to Work awards (three years in a row)