Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity & Inclusion
• Environmental Sustainability
• Governance

Environmental Achievements

• Focus on office estate and flexible working to reduce emissions
• Reduced the need to travel for learning by providing learning systems to 10.6 million people in 44 countries

Social Achievements

• Rolled out internal programs around D&I and unconscious bias training using Affirmity’s solutions
• Providing Environmental, Social and Governance learning content for 3 million people globally
• Helping over 1,100 companies achieve workforce equity through solutions that optimize affirmative action and diversity and inclusion programs

Governance Achievements

• Increased focus and priority given to ESG monitoring and improvement initiatives
• Detailed D&I tracking and pulse surveys have informed numerous initiatives in 2020

Climate Goals & Targets

Environmental Challenges

• Content & Services division revenues fell 24% due to clients postponing projects because of COVID-19 uncertainties

Mitigation Strategies

• Anticipate a stronger services performance in 2021, returning towards 2019 levels

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Supporting clients in making a positive ESG impact
• Taking care of our people
• Effective environmental sustainability
• Continuing improvement in privacy and security standards
• Meeting stakeholder expectations on governance

Environmental Achievements

• Reduced leased office space by an additional 18% (49% reduction since 2019), resulting in a reduction in carbon footprint.
• Scope 1 emissions decreased by 9.6%, Scope 2 emissions decreased by 53.4%, and Scope 3 emissions decreased by 51% (on a like-for-like basis, assuming GP Strategies was in the 2021 base for the full 12 months).

Social Achievements

• Launched inclusion learning pathway.
• Delivered in-house People Leader Essentials programme.
• Achieved 85.5% completion rate across LTG technology product companies for performance conversations, leadership development, and end-of-year appraisal process.
• Invested almost $2 million in colleague training initiatives.
• GP Strategies received the Community Partnership Award from General Motors.

Governance Achievements

• Successfully aligned GP Strategies ESG management framework with LTG Group ESG framework.
• Expanded ISO 27001 (Information Security) certification to include the majority of SaaS businesses.
• No breaches of the Code of Business Conduct at LTG, and no violations of GP Strategies’ Business Conduct & Ethics policy.

Climate Goals & Targets

Environmental Challenges

• Increased voluntary staff turnover (20% in 2021 to 24% in 2022).
• Integrating ESG framework across a broader business base following the acquisition of GP Strategies.
• Maintaining high standards of data privacy and security in a growing global organization.
• Managing climate-related risks and opportunities, including Scope 3 emissions.

Mitigation Strategies

• Implemented several policies within the sustainability space.
• Aligned customer and supplier agreements on data protection to Schrems II requirements.
• Expanded ISO 27001 certification to include the majority of SaaS businesses.
• Developed a Group-wide environmental policy, standardized data collection, and improved formal environmental reporting.
• Developed a Group-wide Sustainable Procurement Policy.
• Enhanced offering to support colleagues suffering from stress.
• Implemented a new supplier security management program.

Supply Chain Management

Responsible Procurement

• Developing a Group-wide Sustainable Procurement Policy.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea level rise

Transition Risks

• Carbon pricing
• Pressure from customers to decarbonise
• Reputational risks linked to sustainability performance and reporting
• Limitations restricting LTG from achieving its net zero ambition

Opportunities

• Managing resource efficiency
• Online training provision to enable customers to reduce their carbon footprint
• Renewable energy

Reporting Standards

Frameworks Used: UNGC, SECR, TCFD (voluntary reporting), SASB

Certifications: ISO 27001 (majority of SaaS businesses), ISO 9001 (GP Strategies)

Sustainable Products & Innovation

• Virtual and online training solutions

Awards & Recognition

• GP Strategies Community Partnership Award from General Motors
• youfirst programme received Gold “Best technology-based onboarding programme” at Learning Technologies Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Enterprise risk management, data privacy and security
• Climate-related Financial Disclosure

Environmental Achievements

• Closed our largest in-house physical data centre in March 2023, further reducing operating emissions (Scope 2).
• 13.5% decrease in total GHG emissions in 2023 driven primarily by rationalised office usage and a reduction in business and commuting travel.
• Launched a Group-wide Sustainable Procurement Policy

Social Achievements

• Implemented a Group-wide Sustainable Procurement Policy, incorporating material sourcing risks and ESG commitments and/or operational objectives for suppliers.
• GP Strategies launched its pilot Sustainable Procurement Survey.
• Re-launched an enterprise-wide engagement survey and implemented a comprehensive action planning process
• Delivered development of our in-house designed People Leader Essentials programme.

Governance Achievements

• Brought all of our SaaS businesses under ISO 27001 (Information Security) certification.
• Cyber Essentials Plus certification obtained within GP Strategies.
• Obtained an ISO 27701 Privacy Certificate for all LTG SaaS brands and business units.

Climate Goals & Targets

Environmental Challenges

• Integrating acquisitions
• Attracting and retaining talented staff
• Macroeconomic factors
• Currency, debt and interest rate risk
• Legal and regulatory changes
• Sustainability
• Pressure from customers to decarbonise
• Reputational risks linked to sustainability performance and reporting
• Limitations restricting LTG from achieving its net zero ambition

Mitigation Strategies

• assigns account executives to foster relationships with key clients
• Competitive re-compete initiatives are forecast and managed to maximise success.
• Regulated market sectors are regularly monitored to maintain compliance with legislative requirements.
• Through operational and legal review, the Group ensures well defined contract terms and obligations and skilled Project Managers are assigned to ensure quality and deliver results.
• In acquired businesses, client contractual risks are assessed during acquisition due diligence and addressed as part of the transformation and integration work stream for acquired businesses.
• The Board has approved the creation of a new government subsidiary to ensure compliance with the Foreign Ownership, Control, or Influence regulations (FOCI) within a ringfenced business unit.
• The Group has a collaborative and transparent approach with clients and external partners, and aims to continuously meet customers’ operational specifications, quality standards and delivery schedules.
• The Group strives to exceed customer expectations and maintain its reputation as a leader in the learning and talent management marketplace by offering a diverse set of superior platforms, content and services.
• Strategic planning is undertaken to forecast and execute activities that will develop and maintain client demand.
• The Group continually evaluates its performance, seeks feedback from customers, employees and shareholders, performs market research, and utilises trade group research to anticipate client needs and develop action plans to continually improve its services.
• The Group formulates accurate and clear messaging to prevent misinformation from spreading and is delivering AI innovation across both services and products through targeted R&D and selective partnering and acquisitions.
• administrative and technical controls employed by the IT, Software and Platform companies and Legal teams to monitor and mitigate risks, and ensure platforms and products are robust, reliable and secure.
• Data protection policies and protocols are enforced to safeguard data and meet data protection standards across jurisdictions in which the Group operates.
• The Group has a central data privacy team in place.
• Access to sensitive data is restricted and closely monitored.
• Staff are required to complete information security and data protection training programmes annually.
• Business processes are kept under review and the IT function carries out internal and external audits including penetration testing and random phishing testing.
• The Group holds an appropriate level of cyber-insurance.
• A cyber security programme of work has been created and is under constant review at Board level to ensure plans are optimised to best mitigate cyber risks.
• To mitigate financial risk, the Oracle NetSuite ERP system is entering its final phase to replace smaller and older legacy systems within the LTG SaaS businesses.
• Within GP Strategies the majority of the company use the Oracle Cloud Fusion ERP system, with the business benefitting from the system’s aligned processes.
• Integration of APAC region entities to Oracle Fusion is ongoing to ensure all entities are using one platform within GP strategies.
• professional advisors are consulted by the Group’s finance, legal, HR, IT and executive teams to assist in evaluating the risks and benefits prior to developing a business and capital allocation plan for Board approval.
• The Group structures acquisition purchase terms to incentivise and retain key staff.
• Integration plans are developed to provide efficient operating procedures, deploy best practices and ensure delivery of expected benefits.
• Plans are implemented by experienced cross- functional teams of stakeholders and subject matter experts to maximise likelihood of success.
• We routinely benchmark ourselves against our peers and adapt best practices to ensure success in recruiting, hiring and maintaining a highly competent and engaged workforce.
• To manage hiring for specialist roles we have activated several successful strategies to source top talent, including expansion of our presence on hiring platforms, external talent pooling and hiring in other countries.
• We continue to focus on appointing high quality candidates to replace leavers or fill new roles, and continuously focus on employee development through training and other employee engagement measures.
• We employ technology solutions to improve the employee experience in areas such as performance enablement, engagement surveys and new HR programmes.
• The Group monitors the changing macroeconomic environment and continually evaluates potential risks.
• Due to the Group’s increased global presence, action can be taken to reallocate resources and work where needed to minimise disruption, maintain quality, preserve financial performance and ensure the safety of our people.
• The Group regularly monitors its ongoing compliance with the terms of its loan facility.
• The Group avoids over-reliance on single-source customers, suppliers and banking relationships.
• A treasury function is maintained to monitor cash and liquidity and ensure optimum returns on cash balances.
• Contracts are transacted and cash balances are maintained in the functional currency of the local operation, which serves as a natural hedge.
• The Group continually monitors its outstanding Accounts Receivable.
• The Group’s executive team together with the legal team take a global approach and take appropriate actions to monitor regulatory requirements, develop compliance strategies and implement risk-mitigating policies and procedures including whistleblower hotlines, mandatory contract reviews, corporate responsibility and business sanctions policies, security standards and privacy reviews.
• Management appoints individuals to key roles within the business who are sufficiently knowledgeable in the legal aspects of their function to ensure requirements are met or guidance is sought when needed.
• The Group’s key roles include members of the Executive teams and a designated data protection team.
• The Group has a broad reaching ESG response in place, as detailed in the Group’s ESG report, which we are enhancing further through a number of initiatives aimed at improving our sustainability ratings.
• We have set an ambition of being net zero by 2050 or sooner.
• The Company’s ability to reduce its Scope 3 emissions relies on our data centre suppliers decarbonising successfully.
• Further, other Scope 3 value chain emissions is reliant on development of new green technologies.
• Residual emissions are also dependent on a developed carbon dioxide removals market.
• We are undertaking the necessary steps to develop our transition plan to reduce emissions in line with a Paris Agreement-aligned pathway.
• The Group continues to improve the resilience and business continuity of its office network and supply chain and has transitioned to virtual and hybrid-working models as deemed appropriate.
• LTG intends to explore the voluntary carbon market in FY24.
• LTG has piloted initiatives to instigate transparency with our supply chain, by seeking renewable energy options and surveying suppliers’ relevant emissions reduction projects.
• LTG launched a pilot of a sustainable procurement survey, and launched our Group-wide Sustainable Procurement Policy.
• In FY23 the Group hired an ESG manager to assist with the external interface of Group sustainability reporting.

Supply Chain Management

Responsible Procurement

• Group-wide Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Transition Risks

• Carbon pricing in our operations and our value chain
• Pressure from customers to decarbonise
• Reputational risks linked to sustainability performance and reporting
• Limitations restricting LTG from achieving its net zero ambition

Opportunities

• Managing resource efficiency
• Online training provision to enable customers to reduce their carbon footprint
• Renewable energy

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 27001, Cyber Essentials Plus, ISO 27701

Awards & Recognition

• The Lovie Awards (Connectivity category)