London Stock Exchange : Sustainability Report 2022 3.5MB •

LONDON STOCK EXCHANGE GROUP PLC GROUP SUSTAINABILITY REPORT 2022

Enabling sustainable growth

Introduction	Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
priorities	engagement	responsibly	governance	disclosures

Contents

ACCELERATING THE JUST TRANSITION TO NET ZERO See page 10

ENABLING THE GROWTH OF THE GREEN ECONOMY See page 18

Introduction	02
Who we are and our purpose	02
Message from our CEO	03
Our sustainability strategy	05
UN Sustainable Development Goals	08
Materiality assessment	09

Our sustainability priorities	10
Accelerating the just transition to net zero	10
Transition capital	11
Data and disclosure	12
Reducing our impact	14
TCFD compliance statement	17
Enabling the growth of the green economy	18
Green finance	19
Research and data	20
Engagement	21
Creating inclusive economic opportunity	22
Inclusive culture	23
Inclusive markets	27
Economic empowerment	28
Stakeholder engagement	30
Operating responsibly	32
Sustainability governance	36
Additional disclosures	38
Social data	39
Environmental data	41

CREATING INCLUSIVE ECONOMIC OPPORTUNITY See page 22

Further information on London Stock Exchange Group can be found at: www.lseg.com

01	London Stock Exchange Group plc
	Group Sustainability Report 2022

			Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
		Introduction	priorities	engagement	responsibly	governance	disclosures

Introduction

About the photography in this report

In March 2022, employees and contractors across the globe helped to bring LSEG's sustainability strategy to life through our Picture our Priorities photography competition.

The photographs reflect the three pillars of our sustainability strategy:

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

Many of the images used in this report are photographs submitted as part of that competition.

WHO WE ARE

LSEG is a leading global financial markets infrastructure and data provider. We play a vital social and economic role in the world's financial system. With our trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities.

LSEG is headquartered in the United Kingdom, with significant operations in

65 countries across EMEA, North America, Latin America and Asia Pacific. We employ 24,000+ people globally.

OUR PURPOSE

Driving financial stability, empowering economies and enabling customers to create sustainable growth.

02	London Stock Exchange Group plc
	Group Sustainability Report 2022

			Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
		Introduction	priorities	engagement	responsibly	governance	disclosures

Message from our CEO

Positioned at the centre of global financial markets, LSEG is uniquely placed to be a strategic enabler of sustainable growth.

David Schwimmer

Chief Executive Officer

At LSEG, we speak often about our purpose as an organisation

• driving financial stability, empowering economies and enabling our customers to create sustainable growth. We are committed to making a positive impact on those we serve, the economies that rely on us and the communities in which we live and work.

In the coming decades, world economies must transform to ensure that economic progress is effectively balanced with environmental protection and social inclusion. Positioned at the centre of global financial markets, LSEG is uniquely placed to be

a strategic enabler of sustainable growth. In 2022, we took significant steps to further embed sustainability into our business and drive progress on critical social and environmental issues.

Transparency is vital to an effective climate transition.

2022 was an important year for advancing climate disclosure standards, and I was honoured to serve on the UK Transition Plan Taskforce. Convened by HM Treasury, this taskforce is charged with creating the gold standard climate transition plans that will become mandatory for UK companies. I was also delighted to continue our work with GFANZ, leading its work on real economy transition pathways alongside AXA and Allianz. Our efforts resulted in clear, action-oriented guidance to help companies of all sizes, industries and geographies produce credible and comprehensive transition plans.

LSEG is also committed to using our position at the heart of financial markets to contribute to development of effective policy frameworks. This year, we set out our policy recommendations calling for advances in corporate sustainability disclosure - across both public and

private companies.

LSEG is hard at work to uphold our own high standards. In March, we published our first Climate Transition Plan, which received strong shareholder support at our Annual General Meeting. The plan sets out how we will achieve our target of halving our carbon emissions by 2030 - you can see our progress against this plan in our follow-up Climate Report which can be found here.

As the global economy decarbonises, there is a clear role for carbon markets, and LSEG is proud to play its part. In 2022, the London Stock Exchange launched its voluntary carbon market designation. This designation will enable companies and investors to augment credible net zero transition strategies by financing carbon mitigation projects to offset unavoidable carbon emissions during the path to net zero.

Alongside transition, we must effectively allocate capital to the green economy. LSEG continued to play a key role in growing this part of the market through our Green Revenues data model. By the close of the year, £12 billion had been raised on our Sustainable Bond Market, and 108 companies and funds received the Green Economy Mark.

03	London Stock Exchange Group plc
	Group Sustainability Report 2022

			Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
		Introduction	priorities	engagement	responsibly	governance	disclosures

Message from our CEO continued

While LSEG has played a major role in advancing sustainable objectives through external initiatives and taskforces, we have also achieved important social inclusion milestones within our business and in our communities around the world.

At LSEG we have doubled down on our efforts to build an inclusive culture. We have made great progress - by the end of the year we achieved our goal to have 40% of senior leadership roles filled by women. However, we still have more to do. In the year ahead, we will continue to sustain our efforts to achieve our goals for the executive pipeline and underrepresented ethnic groups.

Finally, I am proud to see the evolution of the LSEG Foundation which is making a difference

to people's lives through its economic empowerment work and partnerships. In 2022,

The LSEG Foundation developed four strategic, multi-year charity partnerships with Room to Read, Girls Who Code, Skills Builder and Women's World Banking. We have real confidence in these organisations' ability to empower and elevate individuals around the world and look forward to supporting them in the years

to come. The Foundation also supports scores of local charities in our communities and made significant contributions in response to the invasion of Ukraine, the economic crisis

in Sri Lanka and the major floods in Pakistan.

2022 was a strong year for LSEG's sustainability goals. As we look to 2023, there is more to be done to secure a sustainable future, and LSEG is committed to playing a key role every step of the way.

We look forward to sharing our progress in the future.

David Schwimmer

Chief Executive Officer

LSEG and Microsoft

At the end of 2022, LSEG and Microsoft announced a ten-year strategic partnership on next generation data and analytics and cloud infrastructure solutions. This partnership will enable LSEG's data infrastructure to

be accessible via the Microsoft Cloud, and to jointly develop new products and services. This will build on the integration of LSEG and Refinitiv and will enhance our position as a world-leading financial markets infrastructure and data provider.

The Microsoft Cloud, and its artificial intelligence (AI) capabilities, significantly advances LSEG's strategy to build its Data

• Analytics business and deliver next-generation services for a range of customers across the financial markets.

Click here for more information

04	London Stock Exchange Group plc
	Group Sustainability Report 2022

Introduction	Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
priorities	engagement	responsibly	governance	disclosures

Our sustainability strategy

Our purpose is driving financial stability, empowering economies and enabling customers to create sustainable growth. We are committed to supporting sustainable economic development, which requires the harmonisation of economic growth with social inclusion and environmental protection.

STRATEGIC PRIORITIES

Our sustainability strategy focuses on those issues of greatest relevance to our business and our stakeholders, and where we can have the greatest positive impact. We are working towards three strategic sustainability priorities, while embedding sustainability into our customer propositions, market engagement and our own operations.

Priority 1	Priority 2	Priority 3
Accelerating the	Enabling the	Creating inclusive
just transition to	growth of the	economic
net zero	green economy	opportunity

Read more on pages 10 and 11

Read more on pages 18 and 19

Read more on pages 22 and 23

ENABLING ACTIVITY

Supporting customers to create sustainable growth

Market engagement and policy advocacy

Embedding sustainability into our operations

05	London Stock Exchange Group plc
	Group Sustainability Report 2022

			Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
		Introduction	priorities	engagement	responsibly	governance	disclosures

Our sustainability strategy continued

2022 IN NUMBERS

We achieved a 55% reduction in our absolute Scope 1 and Scope 2 greenhouse

55%gas (GHG) emissions from 2019 baseline

Proportion of electricity from renewable sources, including the use of Energy

100%Attribute Certificates

37% of the emissions from the goods and services we buy are from suppliers who

37%have set their own science-based targets

98.6% shareholder support for LSEG

98Climate Transition .Plan6%at 2022 AGM

Raised on the Green and Sustainable £Bond segments22bnin 0

Companies and funds with the

108Green Economy Mark

Companies researched to assess

16,000green revenues

In 2022, over 77 bonds were admitted to

77the Sustainable Bond Market (SBM)

bonds

40%Proportion of women in leadership roles

Proportion of leadership from

15%underrepresented ethnic groups

24,872Volunteer hours

£Grants to4mcharity partners

06	London Stock Exchange Group plc
	Group Sustainability Report 2022

			Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
		Introduction	priorities	engagement	responsibly	governance	disclosures

Our sustainability strategy continued

OUR THREE STRATEGIC SUSTAINABILITY PRIORITIES

Priority 1

Accelerating the just transition to net zero

Decarbonising the global economy is critical to minimise the worst social and environmental impacts of climate change. This requires a large-scale reallocation of capital globally while ensuring that the costs and benefits of transition are shared fairly between countries. LSEG uses its unique market position, capabilities, products and services to support and accelerate

a just transition.

Our objectives

Transition capital

Enable more companies and issuers to access the capital needed to finance the transition to a low-carbon economy and enable investors to build transition- aligned portfolios.

Data and disclosure

Improve transparency and understanding of environmental, social and financial risks associated with the transition by promoting clear, comparable and comprehensive data, analytical tools and research to inform investment decision-making, deeper engagement between companies and investors, and market-wide collaboration.

Reducing our impact

Fulfil our commitment to the UN Race to Zero to reduce LSEG's carbon emissions by 50% by 2030, with a long-term ambition to reach net zero by 2040.

Priority 2

Enabling the growth of the green economy

Sustainable economic growth requires more economic activity to be focused on creating, scaling and delivering solutions to the world's environmental and social challenges.

At the centre of capital markets, LSEG has a pivotal role in helping capital to flow towards sustainable economic activity.

Our objectives

Green finance

Provide the market infrastructure needed to enable more capital to flow towards sustainable economic activity.

Research and data

Leverage our research and data capabilities to support the growth of the green economy.

Engagement

Support market collaboration, innovation and public policy to scale green economic growth globally.

Priority 3

Creating inclusive economic opportunity

An inclusive economy enables people to participate in, and benefit from, economic activity, regardless of their gender, ethnicity, religion, social background, disability,

or any other characteristic. We empower economies, communities, and individuals by championing inclusion and creating access to education, employment and enterprise.

Our objectives

Inclusive culture

Embed an inclusive culture at LSEG that values diverse perspectives and embraces diversity of every kind.

Inclusive markets

Use our central position within global capital markets to promote inclusion within companies, industry and society more widely through market collaboration, research and greater disclosure.

Economic empowerment Support economic empowerment by enabling access to education, employment and enterprise opportunities.

Read more on pages 10 and 11	Read more on pages 18 and 19	Read more on pages 22 and 23
07	London Stock Exchange Group plc
	Group Sustainability Report 2022

			Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
		Introduction	priorities	engagement	responsibly	governance	disclosures

UN Sustainable

Development Goals

The UN Sustainable Development Goals (SDGs) set a global framework for countries, businesses and other stakeholders to address society's most important challenges, working together in accordance with their different roles. The SDGs informed our strategy development, and we broadly mapped how we make

a direct or indirect contribution to achieving them. The actions we take under our sustainability strategy directly contribute most to seven of the SDGs.

UN SDG	Our sustainability approach
SDG 4	- Strategic priority: Creating
Quality Education	inclusive economic opportunity.
Ensure inclusive and	- Objective: Economic
equitable quality education
empowerment (particularly
and promote lifelong
via the LSEG Foundation).
learning opportunities
for all.
SDG 5	- Strategic priority: Creating
Gender Equality	inclusive economic opportunity.
Achieve gender	- Objectives: Inclusive culture;
equality and empower
Inclusive markets; and
all women and girls.
Economic empowerment.
SDG 8	- Strategic priorities: Transition to
Decent Work &	net zero; Enabling the growth of
Economic Growth	the green economy; Creating
Promote sustained,	inclusive economic opportunity.
inclusive and sustainable	- Multiple objectives within our
economic growth, full and
sustainability strategy link to this
productive employment
SDG as well as our work on
and decent work for all.
protecting human labour rights.
SDG 10	- Strategic priority: Creating
Reduced Inequalities	inclusive economic opportunity.
Reduce inequality within	- Objectives: Inclusive
and among countries.
culture; Inclusive markets; and
	Economic empowerment.
SDG 13	- Strategic priority: Transition
Climate Action	to net zero.
Take urgent action to	- Objectives: Transition
combat climate change
capital; Data and disclosure;
and its impacts.
Reducing our impact.
SDG 16	- We contribute to this SDG
Peace, Justice and	by ensuring we operate as
Strong Institutions	a responsible business, for
Promote peaceful	example, our policies on bribery
and inclusive societies,	and corruption, human rights,
providing access to justice	modern slavery, financial crime,
for all and building	code of conduct and supplier
effective, accountable	code of conduct.
and inclusive institutions
at all levels.
SDG 17	- We contribute to this
Partnerships for the goals	SDG through our extensive
Strengthen the means	sustainability-related
of implementation	engagement with companies,
and revitalise the	policy-makers, market
global partnership for	participants, and
sustainable development.	wider stakeholders.

08	London Stock Exchange Group plc
	Group Sustainability Report 2022

			Our sustainability	Stakeholder	Operating	Sustainability	Data and additional
		Introduction	priorities	engagement	responsibly	governance	disclosures

Materiality assessment

We carried out a comprehensive materiality assessment in 2021 to ensure that our sustainability approach encompasses the topics that are most important to our business and its long-term performance.

The exercise, undertaken by an independent party, included a broad review of relevant regulations, disclosure frameworks and other information. It also involved interviews

to gather perspectives from stakeholders such as employees, customers, shareholders, suppliers, policy-influencers and media. The relative prioritisation of topics was evaluated, accounting for internal and external stakeholder perceptions.

Material sustainability topics can present risks, costs, or revenue opportunities, and therefore affect our long-term shareholder value creation. The resulting topics are listed here, in order of relative importance.

Material sustainability topics

1. Sustainable finance
2. Climate risk management
3. Talent attraction and retention
4. Information security and data privacy
5. Diversity and inclusion
6. Corporate governance
7. Environmental management and GHG emissions (operational)
8. Human rights
9. Workplace health, safety and wellbeing
10. Business ethics
11. Community engagement

The relevance of the most material sustainability issues is expanded below:

Topic	Relevance to LSEG
Sustainable finance	This helps us serve our customers
LSEG's role in driving	and creates revenue opportunities
a sustainable economy through	for LSEG. In this report we
the development of products and	summarise a range of our
solutions that can accelerate the	sustainable finance products
transition to a low-carbon and	and services.
sustainable economy.

Climate risk management LSEG's preparedness for the impacts of climate change on the business - response to climate change risks and opportunities, understanding and preparedness for impacts (financial and economic loss, physical pressures on assets and supply chains) and response to legislation.

This topic is relevant to LSEG as it relates to the management of operational and transitional climate risks which can have a material impact on our customers and our business.

Talent attraction and retention	Effective management of this
LSEG's approach to recruitment	topic affects our ability to run
and retention, including learning	a successful business; failure to
and development opportunities and	address it adequately creates
activities that support employee	business continuity risks.
satisfaction and fosters a positive
workplace culture.

Information security and data privacy

LSEG's handling of customer and commercial data in a secure and safe way, including managing LSEG's exposure to evolving privacy regulations as well as vulnerability to data breaches and processes in place to protect data.

Related to corporate governance, a failure to protect data and provide information security creates risk for us, such as exposure to financial crime, and costs for our customers.

09	London Stock Exchange Group plc
	Group Sustainability Report 2022