Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Social mobility
• Diversity and inclusion
• Corporate governance
• Modern slavery

Environmental Achievements

• Reduced greenhouse gas emissions by 44% through office portfolio rationalization.

Social Achievements

• ICAP Charity Day raised £4.6m in 2019.
• Partnership with National Numeracy helped improve numeracy skills for 126,467 people.

Governance Achievements

• Completed the three-year ICAP integration program, generating £80m in synergy savings.
• Implemented a new risk framework.
• Developed ESG policies.

Climate Goals & Targets

Environmental Challenges

• Mixed geopolitical environment.
• Challenging market conditions with muted volatility.
• Increased regulatory oversight.
• Technological advances requiring adaptation.
• Brexit uncertainty.

Mitigation Strategies

• Developed a new Enterprise Risk Management Framework (ERMF).
• Implemented a Brexit plan.
• Increased investment in technology upgrades.
• Proactive client engagement.
• Set up TP ICAP Europe in Paris to address Brexit.

Supply Chain Management

Responsible Procurement

• Updated procurement policy to address modern slavery risks.
• New supplier onboarding process includes sanctions and modern slavery checks.

Climate-Related Risks & Opportunities

Awards & Recognition

• GivX Award for charitable giving, volunteering, and community support.

Environmental Metrics

ESG Focus Areas

• Carbon emissions
• Energy use
• Employee Diversity & Inclusion
• Charitable donations
• Staff turnover rates
• Share of temporary staff
• Employee training hours
• Incorporation of ESG factors in brokerage activities
• Business Ethics – Professional integrity
• Systemic risk management
• Promoting transparent and efficient capital markets
• Managing conflicts of interest
• Managing business continuity and technology risks
• Political contributions
• ESG fines

Environmental Achievements

• Reduced total emissions (including Scope 3) by 10%
• Reduced emissions per employee to 2.0tCO2e from 2.3tCO2e in 2019

Social Achievements

• Increased ratio of female employees in Senior Management teams to 26% (2.4 percentage points higher year on year)
• Raised £3.6m for over 100 charities globally through a virtual Charity Day
• Launched a Global Mentoring Programme
• Rolled out various well-being sessions globally

Governance Achievements

• Established a new ESG Reporting Framework with 15 data disclosure areas
• Strengthened ESG governance with a new ESG subcommittee
• Appointed Tracy Clarke as Non-executive ESG Engagement Director
• Embedded a new Enterprise Risk Management Framework

Climate Goals & Targets

Environmental Challenges

• Reduced secondary volumes in the wider interdealer broker market due to difficult macroeconomic backdrop and decreased client risk appetite (especially during the summer months)
• COVID-19 pandemic impacting operations and market conditions
• Brexit transition period uncertainty
• Increased regulatory oversight and complexity

Mitigation Strategies

• Adapted business quickly to manage the pandemic by deploying new workflows and technology, enabling many staff to work from home
• Invested in electronification and aggregation strategy
• Continued to invest in and execute our electronification and aggregation strategy, while diversifying and growing our non-Global Broking businesses
• Enhanced the enablers of our strategy, including a new Global Risk Framework and implementing a new ESG Reporting Framework
• Incorporated a new EU subsidiary to hold EU-based business
• Changes to operating model to maintain UK-EU liquidity and regulatory compliance
• Proactive engagement with European regulators and clients

Supply Chain Management

Responsible Procurement

• Structured policy framework for managing supply chain risk, including modern slavery risks
• Enhanced governance surrounding modern slavery checks and controls during supplier onboarding
• Inclusion of a check for suitable contractual provisions covering modern slavery during contract approval governance
• Ongoing monitoring to confirm no law enforcement actions against suppliers in relation to modern slavery

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, CDP, PRI

Awards & Recognition

• ICAP voted number one in Environmental Finance 2020 Market Rankings for Best broker Weather risk management – North America, Best broker Weather risk management – Europe, Best broker Catastrophe risk management – Global broker

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance

Environmental Achievements

• Consolidated four London offices, reducing office footprint from 22,955m2 to 19,701m2
• Completed a landmark solar power deal in Australia

Social Achievements

• Launched TP ICAP Accord initiative, establishing five employee networks
• Rolled out Agile Working Policy for non-broking teams
• Increased gender representation in senior management to 27.8% by September 2021

Governance Achievements

• Appointment of Tracy Clarke as Non-executive ESG Engagement Director
• Appointment of Group Head of Sustainability
• Established Group ESG Forum
• Incorporated ESG requirements into the Group’s ERMF

Climate Goals & Targets

Environmental Challenges

• Subdued market activity in the first half of 2021 due to low interest rates, flat yield curve, and quantitative easing
• Impact of COVID-19 restrictions on travel and Brexit transition plans
• Scope 3 emissions are more challenging to measure
• Brokerage industry headwinds in diversity metrics due to low employee turnover
• Incorporation of ESG factors into brokerage activities is complex as an intermediary

Mitigation Strategies

• Investing in and executing growth strategy, integrating Liquidnet
• Improving operational efficiency through cost-saving programs and debt refinancing
• Working with independent experts to capture and analyze Scope 3 emissions data
• Focusing on increasing diversity in non-broking workforce
• Incorporating mandatory ESG scoring into the evaluation and approval process for new business initiatives

Supply Chain Management

Responsible Procurement

• Monitoring of supplier engagement and supply chain CSR, ESG, and expenditure

Climate-Related Risks & Opportunities

Transition Risks

• Changes to products brokered, market expectations, and regulatory landscape

Opportunities

• Development of sustainability-linked products and services

Reporting Standards

Frameworks Used: SASB, GRI

Sustainable Products & Innovation

• Liquidnet Primary Markets
• Fusion electronic platform
• Fusion Energy platform
• Environmental Data Package
• Bond Evaluated Pricing
• Wholesale spot trading venue for cryptoassets (planned)

Awards & Recognition

• Inter-dealer Broker of the Year (GlobalCapital’s 2021 Global Derivative Awards)
• Outstanding Market Data Provider (The Trade)
• Best Post Trade Company 2021 (European Markets Choice Awards)
• Best Algorithmic Trading Provider (Waters Technology’s ‘2021 Waters Rankings’)