Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Economy Growth
• Inclusive Economic Opportunity

Environmental Achievements

• Reduced total group carbon footprint by 13% from 2019 baseline (657,008 tCO2e to 567,747 tCO2e)
• Reduced Scope 1 emissions by 54% from 2019 baseline
• Reduced Scope 2 (market-based) emissions by 69% from 2019 baseline
• Achieved 100% renewable electricity consumption through green tariffs and energy attribute certificates

Social Achievements

• Launched a new global diversity and inclusion framework with four key priorities
• Launched LSEG Engage, a Group-wide employee engagement survey with 81% participation
• Donated over £2 million to the LSEG Foundation, impacting over 400 charities

Governance Achievements

• Established a Sustainability Committee chaired by the Chief Corporate Affairs & Marketing Officer
• Linked Executive Committee compensation to the delivery of Group strategic objectives, including sustainable growth
• Published climate reporting guidance aligned with TCFD recommendations

Climate Goals & Targets

Environmental Challenges

• Increased emissions from homeworking due to the pandemic
• Anticipated increase in business travel emissions as restrictions ease
• Need for improved data collection from suppliers to accurately calculate Scope 3 emissions

Mitigation Strategies

• Improved office attendance data for more accurate homeworking and commuting emission calculations
• Plans to manage expected increases in emissions from travel and office occupancy to stay on track with 2030 targets
• Set a supplier engagement target to ensure 67% of suppliers (by emissions) set science-based targets by 2026

Supply Chain Management

Responsible Procurement

• Risk assessment of all new suppliers
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Temperature rises
• Weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, SASB, World Economic Forum Stakeholder Capitalism Metrics

Certifications: CarbonNeutral®

Third-party Assurance: Cameron-Cole

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Contributions through various initiatives detailed in the report

Sustainable Products & Innovation

• Sustainable Bond Market
• Green Economy Mark
• Climate Transition Offering

Environmental Metrics

ESG Focus Areas

• Accelerating the just transition to net zero
• Enabling the growth of the green economy
• Creating inclusive economic opportunity

Environmental Achievements

• Reduced absolute Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 55% from 2019 baseline
• Reduced Scope 3 GHG emissions (Fuel and energy-related activities, business travel and employee commuting) by 63% from 2019 baseline
• 100% of electricity from renewable sources, including the use of Energy Attribute Certificates

Social Achievements

• Achieved 40% women in leadership roles
• Launched four strategic, multi-year charity partnerships with Room to Read, Girls Who Code, Skills Builder and Women’s World Banking
• 86% employee participation in LSEG Engage survey, showing a two-point increase in engagement

Governance Achievements

• Published first Climate Transition Plan, receiving 98.6% shareholder support
• Linked executive compensation to sustainability performance through Group Strategic Objectives
• Completed Inclusive Leadership Programme training for all Executive Committee members and their direct reports

Climate Goals & Targets

Environmental Challenges

• Increased employee commuting emissions despite reduced homeworking emissions
• Reporting gaps in corporate carbon disclosure
• Need for greater capacity building across issuers, investors and professional services to scale the green sukuk market

Mitigation Strategies

• Refining data for employee commuting and homeworking emissions in 2023
• Advocating for mandatory disclosure of climate data
• Working with HM Treasury, the Islamic Development Bank, the Republic of Indonesia and the Global Ethical Finance Initiative to develop and promote green and sustainable sukuk

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Science-based target setting for key suppliers
• Prompt Payment Code (UK)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, GRI, SASB, UN Global Compact, UN SSE, World Economic Forum Stakeholder Capitalism Metrics

Third-party Assurance: Cameron-Cole

UN Sustainable Development Goals

• 4
• 5
• 8
• 10
• 13
• 16
• 17

Actions under the sustainability strategy directly contribute to these SDGs.

Awards & Recognition

• Large Brand of the Year at The Bank of London Rainbow Honours
• Company of the Year at the European Diversity Awards
• Gold status in the India Workplace Equality Index
• Anna Manz as CFO of the Year at the Women in Finance Awards

Environmental Metrics

ESG Focus Areas

• Climate transition
• Growth of the green economy
• Inclusive economic opportunity

Environmental Achievements

• Reduced carbon emissions by 29% vs a 2019 baseline

Social Achievements

• Increased female representation at senior leadership to 42%
• LSEG Engage engagement index remained at 75 (out of 100), with 88% of colleagues participating in the survey.
• LSEG Foundation gave almost £4 million in grants to 103 charity partners.

Governance Achievements

• Met the Parker Review recommendations and FTSE Women Leaders Review recommendations.
• Completed a £750 million directed share buyback in Q3 2023 and returned a total of £1.5 billion to shareholders via buybacks since August 2022.

Climate Goals & Targets

Environmental Challenges

• Like many companies, a natural increase in carbon emissions was observed post-pandemic as physical activity levels normalized.
• Did not achieve the goal of 20% representation of underrepresented ethnic and racial groups within the leadership community, reaching 14% by the end of 2023.

Mitigation Strategies

• Remain well on track to achieve all of our Science-Based Target initiative (SBTi)-approved targets.
• Continuing to grow the global Leadership Development programmes and introduced inclusive hiring training for all people leaders.

Supply Chain Management

Responsible Procurement

• Engaging with suppliers to adopt science-based emission reduction targets (67% coverage by 2026).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting properties and data centers
• High temperatures impacting operations in Southeast Asia and the Middle East

Transition Risks

• Regulatory changes impacting operations and compliance costs
• Technology changes impacting operations
• Market shifts impacting demand for products and services

Opportunities

• Growing demand for sustainability-related market data and infrastructure

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• ESG indices
• Green Economy Mark
• Sustainable Bond Market

Environmental Metrics

ESG Focus Areas

• Climate Change
• ESG
• Sustainable Investing

Environmental Achievements

• Significant carbon intensity reductions (-42% to -58%) achieved by Global Choice indices.
• Significant carbon intensity reduction (-51% to -33%) and ESG score uplift (19% to 11%) achieved by ESG Low Carbon Target indices.
• Strong reduction in carbon intensity (-55% to -32%) and significant increase in TPIMQ score (28% to 12%) achieved by TPI Climate Transition indices.

Social Achievements

• Significant ESG score uplifts (22% to 3%) achieved by FTSE 4Good indices.
• High active green revenues (absolute increase of 45% to 28%) achieved by Environmental Opportunities (EO) indices.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Continued pressure on sustainable investing in Q1 2024 due to record high global temperatures.
• Over-capacity in renewable energy and EV markets leading to falling prices and equity market underperformance.
• Continued pressure on SI fund flows, particularly in SI equities.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed