Climate Change Data

Jefferies Financial Group Inc.

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:11,188 tCO2e (Scope 1 & Location-Based Scope 2) / 9,745 tCO2e (Scope 1 & Market-Based Scope 2) in 2019
Scope 1 Emissions:3,078 tCO2e (2019)
Scope 2 Emissions:8,110 tCO2e (Location-Based) / 6,667 tCO2e (Market-Based) in 2019
Renewable Energy Share:100% carbon neutrality achieved through carbon offsets (2020)
Total Energy Consumption:21,108 MWh in 2019

ESG Focus Areas

  • Climate Change
  • Energy Management
  • Diversity, Equity, and Inclusion
  • Employee Wellbeing
  • Community Investment
  • Governance
  • Risk Management
  • Data Security and Customer Privacy
  • Human Rights
  • Supplier Responsibility

Environmental Achievements

  • Achieved net-zero energy by offsetting 100% of operational footprint (2020)
  • Conducted first complete carbon assessment of operations and set baseline for carbon disclosure

Social Achievements

  • Donated $21.1M in 2020 and 2021 to over 200 charities
  • Supported Jefferies’ COVID-19 heroes
  • Founded Empowerment and Inclusion Capital
  • Added two new employee resource groups
  • Launched Jefferies Diversity Council

Governance Achievements

  • Developed new ESG corporate policies (Human Rights Statement, Health and Safety Policy)
  • Expanded operational risk oversight and training
  • LAM published Sustainable Investment Policy
  • ESG/DEI Committee of the Board elevated

Climate Goals & Targets

Long-term Goals:
  • Net-zero status for operations

Environmental Challenges

  • Data limitations in energy consumption calculations (fewer than 10 employees in some offices, missing electricity usage data, data from Merchant Banking portfolio excluded)
  • COVID-19 pandemic impact on office occupancy and energy use
Mitigation Strategies
  • Used greenhouse gas estimates based on 2018 and 2019 data for carbon offset and REC purchases
  • Implemented work-from-home policies and plans for business continuity and technology

Supply Chain Management

Supplier Audits: Periodic supplier risk assessment program based on internal and external questionnaires

Responsible Procurement
  • Risk-based approach to assess modern slavery and human trafficking

Climate-Related Risks & Opportunities

Opportunities
  • Deploying capital for green energy and a more circular economy

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: Sustainable Forestry Initiative (Idaho Timber)

UN Sustainable Development Goals

  • Goal 3: Ensure healthy lives and promote well-being for all at all ages
  • Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
  • Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all
  • Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
  • Goal 10: Reduce inequalities within and among countries
  • Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable
  • Goal 13: Take urgent action to combat climate change and its impacts
  • Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
  • Goal 5: Achieve gender equality and empower all women and girls

The report details how various initiatives contribute to these goals.

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:0 mtCO2e (net, after offsets)
Scope 1 Emissions:1,186 tCO2e (2020)
Scope 2 Emissions:5,656 tCO2e (2020, location-based)
Scope 3 Emissions:88,500 tCO2e (2020, estimated)
Renewable Energy Share:98% (2020)
Total Energy Consumption:19,508 MWh (2020)

ESG Focus Areas

  • Environmental Stewardship
  • Giving Back
  • Human Capital
  • Responsible Business Practices
  • Sustainable Finance
  • Diversity, Equity and Inclusion

Environmental Achievements

  • Achieved 100% carbon neutrality for operations by purchasing carbon offsets and RECs equivalent to calculated Scope 1 and Scope 2 emissions.
  • Completed Scope 3 emissions calculations for two categories for 2018-2020, with plans to expand to 2021 in 2022.

Social Achievements

  • Donated over $16 million in 2021 to nearly 400 charities.
  • Launched firmwide ESG training.
  • 308 employee-partners participated in the ERG Mentoring Program.
  • 100% of employee-partners completed Unconscious Bias Training.
  • Adopted Supplier Code of Conduct, strengthening supplier risk governance.
  • Launched two targeted recruitment programs (Career Relaunch and Job Switch) to diversify lateral hires.
  • Increased Board diversity to 42% (56% of independent directors).

Governance Achievements

  • Established a global ESG Working Group.
  • Expanded ESG Committee to include DEI.
  • Implemented a Sustainable Investment Statement.
  • Implemented a Whistle Blower Policy.
  • Implemented a Political Contribution Compliance Policy.

Climate Goals & Targets

Environmental Challenges

  • Data limitations in calculating Scope 3 emissions and historical energy consumption data due to COVID-19.
  • Supply chain disruptions (implied, not explicitly stated).
Mitigation Strategies
  • Engaged a third-party expert for in-depth analysis of Scope 1 and Scope 2 emissions, with plans to expand to Scope 3.
  • Used greenhouse gas estimates based on 2018 and 2019 data for carbon offset and REC purchases in 2020 due to lower energy use and occupancy rates.
  • Strengthened supplier risk governance through the adoption of a Supplier Code of Conduct and periodic supplier risk assessments.

Supply Chain Management

Responsible Procurement
  • Jefferies Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 13

The report maps various initiatives to these SDGs.

Reporting Period: 2022

Environmental Metrics

Scope 1 Emissions:2,462 tCO2e/year
Scope 2 Emissions:8,117 tCO2e/year (location-based), 447 tCO2e/year (market-based)
Scope 3 Emissions:4,423 tCO2e/year (Business Travel), 2,486 tCO2e/year (Fuel and Energy-Related Activities)
Renewable Energy Share:100% (through EAC purchases)
Total Energy Consumption:24,031 MWh/year

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion (DEI)
  • Governance
  • Sustainable Finance
  • Human Capital
  • Responsible Business Practices
  • Environmental Stewardship
  • Social Impact

Environmental Achievements

  • Achieved carbon neutrality in operations with available energy use data through energy efficiency, renewable energy, and carbon offsetting.
  • 100% renewable energy goal met through purchase of environmental attribute certificates.

Social Achievements

  • Donated over $18 million to over 240 charities.
  • 80% employee participation in inclusion-focused engagement survey.
  • 546 employee-partners participated in the 2022 ERG Mentoring Program.
  • Launched Global Fertility, Surrogacy and Adoption Program.

Governance Achievements

  • Increased Board and Executive Team involvement in ESG/DEI initiatives.
  • Adopted a Sustainable Investment Statement.
  • 100% of employee-partners completed Unconscious Bias Training.
  • Began publishing EEO-1 data externally.

Climate Goals & Targets

Short-term Goals:
  • Set emissions reduction targets aligned with limiting warming to 1.5°C.

Environmental Challenges

  • Need for greater diversity among senior leaders.
  • Scope 3 emissions reporting needs expansion.
Mitigation Strategies
  • Commitment to building a more diverse firm.
  • Plan to expand Scope 3 reporting to include all relevant categories in 2023.
  • Conducting a racial equity audit in 2023.

Supply Chain Management

Responsible Procurement
  • Jefferies Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 13
  • Goal 15

Alignment with SDGs is described in the Appendix.

Reporting Period: 2023

Environmental Metrics

Scope 1 Emissions:4,223 tCO2e/year
Scope 2 Emissions:10,052 tCO2e/year (location-based), 1,813 tCO2e/year (market-based)
Scope 3 Emissions:196,275 tCO2e/year (location-based)
Renewable Energy Share:100% of total energy use (through EAC purchases)
Total Energy Consumption:24,766 MWh/year

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion (DEI)
  • Governance
  • Social Responsibility
  • Environmental Stewardship
  • Sustainable Finance

Environmental Achievements

  • Expanded GHG inventory to include several Scope 3 categories.
  • Improved the quality of Greenhouse Gas (GHG) assessment using new software and third-party consultants.
  • Purchased Green-e Renewable Energy Credits (RECs) to address emissions associated with grid electricity.
  • Purchased carbon offsets from renewable solar installations in India certified by Verified Carbon Standard (VCS).

Social Achievements

  • Raised over $22 million in charitable donations.
  • Engaged 224 unique clients from 84 firms through 12 client-targeted employee resource group events.
  • 831 employee-partners participated in the fourth annual Jefferies Cross-Divisional Mentoring Program.
  • Inclusion-focused employee engagement survey resulted in an engagement score of 82%.
  • Conducted a racial equity and gender equity diagnostic with Management Leadership for Tomorrow (MLT).

Governance Achievements

  • Jefferies began the process of aligning with the Task Force on Climate-related Financial Disclosures (TCFD) framework.
  • Board’s ESG/DEI Committee has oversight of Jefferies’ sustainability and diversity, equity, and inclusion programs.
  • Expanded measurement of Scopes 1, 2, and 3 emissions.

Climate Goals & Targets

Short-term Goals:
  • Set emissions reduction targets and pursue 100% renewable electricity goal.

Environmental Challenges

  • Navigating evolving ESG and DEI landscapes and addressing criticisms of these initiatives.
  • Expanding Scope 3 emissions accounting.
  • Increasing ethnic and racial diversity at Jefferies.
Mitigation Strategies
  • Focusing on long-term value creation and responsible business practices.
  • Expanding Scope 3 accounting for fiscal year 2022 inventory.
  • Purchasing RECs and carbon offsets to address emissions.
  • Engaging Management Leadership for Tomorrow (MLT) for a racial equity diagnostic and certification program.

Supply Chain Management

Supplier Audits: Periodic supplier risk assessment program

Responsible Procurement
  • Jefferies Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Business disruption
Transition Risks
  • Policy/regulatory change
  • Market sentiment
  • Technology advancements
  • Supply/demand/price
  • Financial costs
Opportunities
  • Reduced operating costs through resource efficiency
  • Reduced exposure to fossil fuel prices
  • Enhanced reputational benefits
  • Increased revenues and new opportunities from new products and services

Reporting Standards

Frameworks Used: SASB, TCFD

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 11
  • Goal 12
  • Goal 16

See page 56 for details.