London Stock Exchange : Sustainability Report 2022

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

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	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.

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	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.

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	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

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	Group Sustainability Report 2022