Moscow Exchange MICEX RTS : Sustainability report of Moscow Exchange 2022

SUSTAINABILITY REPORT | 2022

MOEX.COM

RESILIENCE AMID CHALLENGES

MOEX.COM | SUSTAINABILITY REPORT | 2022

MOSCOW EXCHANGE 2022

SUSTAINABILITY REPORT

Overview of Moscow Exchange Group's reporting suite ���������������������������������������������������������2

2022 SUSTAINABILITY PERFORMANCE HIGHLIGHTS ����11

Statement from the Chief Executive Officer ����� 12 Integrating ESG principles

into the 2024 Group Strategy������������������������������ 13

Moscow Exchange Group Profile������������������������ 21

2022 Sustainability Milestones �������������������������� 24

Climate agenda����������������������������������������������������� 26

MOEX Group's focus areas: 'GREAT' ����������������� 35

G | Genuine corporate governance

and business ethics 35

R | Respect for human rights,

equal opportunities and staff engagement 45

E | Environmentally friendly

and trusted market infrastructure 49 Resource efficiency

and environmental impact 54

A | Advanced practices

of responsible investing 56

T | Trusted relations

with local communities 64

SUSTAINABILITY DATA ���������������71

Genuine corporate governance

and business ethics�����������������������������������������������72

Respect of human rights, equal opportunities

and engagement of staff ������������������������������������� 76

Environmentally friendly

and trusted market infrastructure���������������������� 86 Resource efficiency

and environmental impact �����������������������������������88

Advanced practices

of responsible investing �������������������������������������� 94

Trusted relations

with local communities���������������������������������������� 98

SUSTAINABILITY

APPROACHES

AND PROCEDURES�������������������� 101

MOEX Group's focus areas: 'GREAT' ����������������102

G | Genuine corporate governance

and business ethics 102

R | Respect for human rights,

equal opportunities and staff engagement 115

E | Environmentally friendly

and trusted market infrastructure 121 Resource efficiency

and environmental impact128

A | Advanced practices

of responsible investing 130

T | Trusted relations with local communities 138

APPENDIXES������������������������������ 149

Appendix 1. Statement

of Moscow Exchange on compliance with the principles

of the UN Global Compact ���������������������������������150

Appendix 2. Statement of Moscow Exchange on respect for human rights and counteracting

modern slavery���������������������������������������������������� 153

Appendix 3. GRI content index �������������������������� 155

Appendix 4. SASB metrics ��������������������������������� 172

Appendix 5. Independent Auditor's Report������ 174

Appendix 6. Glossary������������������������������������������ 176 Appendix 7. Contact Details������������������������������� 179

MOEX.COM | SUSTAINABILITY REPORT | 2022

OVERVIEW OF		2022 SUSTAINABILITY		SUSTAINABILITY DATA		SUSTAINABILITY		APPENDIXES
MOSCOW EXCHANGE		PERFORMANCE				APPROACHES
GROUP'S REPORTING SUITE		HIGHLIGHTS				AND PROCEDURES

OVERVIEW OF MOSCOW EXCHANGE GROUP'S REPORTING SUITE

Structure of the report

For the convenience of the Report's users,

the Group has decided to use a similar structure to that of its 2021 Sustainability Report; accordingly, there are three main sections: "2022 Sustainability Performance Highlights",

Statements

Moscow Exchange Group supports a number of international initiatives and organizations; it shares their principles, integrating their requirements and recommendations into its activities. The "Statements" appendix outlines the Group's

2022 Annual Report

The2022 Annual Reportprovides comprehensive information on the business model, strategic priorities, products, corporate governance system, and operational

THE 2022 SUSTAINABILITY REPORT

2-32-14

Moscow Exchange published its fourth sustainability report (the "Report") not later than June 30, 2023,

"Sustainability Data", "Sustainability Approaches and Procedures". The appendices include, "Moscow Exchange's Contribution to the UN SDGs", "Statements", "GRI Content Index", "SASB metrics", "Independent Auditor's Report", "Glossary", and "Contact Details".

position on a number of vital issues, including:

• Moscow Exchange's statement on compliance with the Principles of the UN Global Contract;
• Moscow Exchange's statement on observance of the anti-slavery policy and the protection of human rights.

and financial results of Moscow Exchange Group for the year ended 31 December 2022.

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2022 financial statements

The2022 financial statementsdescribe Moscow Exchange Group's financial position as of 31 December 2022.

Investor presentations

The2022 investor presentationsoutline trends in Moscow Exchange Group's key operational and financial results, describe products

and services for customers, and present the Group's position on the global market.

which contains information on its responsible business practices in the calendar year ended 31 December 2022. It is an important tool for communicating

with stakeholders.

The Report also provides information on the mission and strategy of Moscow Exchange, management approaches, and key events in the reporting year.

It sheds light on significant topics1 such as responsible investment, decent working conditions, sustainable financial infrastructure, financing, and corporate governance. Likewise, it describes the position

of the Group regarding climate change, discerning use of resources, charity, and other environmental and social issues.

The Group publishes a sustainability report every year. The previous report was published in June of 2022.

In accordance with the Charter of the Moscow Exchange, the authority to approve the report is vested in the Executive Board.

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The 2022 Moscow Exchange Sustainability Report was made with professional assurance of FBK LLC, an independent auditor, to insure2 that the qualitative and quantitative information disclosed in the Report is disclosed accordance with the GRI Standards and the SASB Security & Commodity Exchanges standard (for selected information). The auditor's report, which provides limited assurance regarding selected information, is included as an appendix to this Report.

2022 Sustainability

Performance Highlights

This section presents key initiatives

and achievements of Moscow Exchange in 2022. These were implemented in line with the Group's Sustainability Roadmap. The section also describes measures taken to apply ESG principles in accordance with the 2024 Group Strategy.

The section contains information on Moscow Exchange's plans and objectives for 2023 and in the midterm.

Sustainability Data

The section discloses the key metrics

of the company's sustainability performance in 2019, 2020, 2021 and 2022. The structure of this section corresponds to the section "2022 Sustainability Performance Highlights", as well as the section "Sustainability Approaches and Procedures".

Sustainability Approaches and Procedures

This section provides information on the approach of Moscow Exchange at the management

level to key areas of sustainable development, including an overview of corporate policies, codes, procedures, and responsible departments. The information in this section supplements the section "2022 Sustainability Performance Highlights", the section "Sustainability Data", and Moscow Exchange's 2022 Annual Report.

GRI Content Index

This index consolidates all the GRI disclosures published in the Report, allowing for easier navigation through its sections. It also contains remarks

on the disclosures.

SASB metrics

This index includes metrics pertinent to the SASB Security & Commodity Exchanges standard.

Guidelines and standards used in preparing the Report

This Report has been prepared in accordance with the GRI Standards: Core option; however, the requirements and recommendations of other standards and guidelines were taken into account as well. These include the WFE ESG Guidance & Metrics (2018), the SASB Security & Commodity Exchanges standard (2018), and the Task Force on Climate-related Financial Disclosures (2017).

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When preparing the 2022 Report the Group the following changes were made:

• the "Sustainability Data" section includes
  the volume and number of trades on the National Mercantile Exchange due to the inclusion of certain data of this subsidiary in the reporting perimeter;
• the indicator "The share of percentage of trades generated from automated trading systems
  in the foreign exchange market" is calculated from the volumes in the spot foreign exchange market instead of calculating the share of the total volumes in the spot and swap segments of the foreign exchange market.

1. For detailed information on material topics, see the section "MOEX Group's approach to materiality".
2. The audit was carried out in accordance with ISAE 3000 (revised): "Assurance Engagements Other than Audits or Reviews of Historical Financial Information".

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MOEX.COM | SUSTAINABILITY REPORT | 2022

OVERVIEW OF		2022 SUSTAINABILITY		SUSTAINABILITY DATA		SUSTAINABILITY		APPENDIXES
MOSCOW EXCHANGE		PERFORMANCE				APPROACHES
GROUP'S REPORTING SUITE		HIGHLIGHTS				AND PROCEDURES

• The indicator "Percentage of employees
  at the end of the year who passed a formalized performance assessment" GRI 404-3 for 2022 was calculated from the number of all employees of the Moscow Exchange Group, and the same indicator for 2019-2021 was calculated from those employees who were assigned a formalized performance assessment, not including employees on parental leave, trainees and those laid off before the assessment is completed.

Reporting boundaries

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The reporting boundaries include the following entities of Moscow Exchange Group: Moscow Exchange, the National Settlement Depository (NSD), and the National Clearing Centre (NCC) and the National Mercantile Exchange (NAMEX).

The Report does not include 7 other companies, the financial results of which are included

in the consolidated financial statements

of the Moscow Exchange Group, due to the fact that these companies employ less than 0.5% of the Group's headcount.

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In this Report, "Moscow Exchange" and "MOEX" mean the organization whose full corporate name as stated in its Articles of Association is Public Joint- Stock Company Moscow Exchange MICEX-RTS. "Moscow Exchange Group", or simply the "Group", means the pool of companies that are part of Moscow Exchange Group; they fall within the scope of this Report.

The information about shareholders owning five or more percent of MOEX shares is included

in the chapter "Share Capital" of the section "Information for Shareholders and Investors" of current Annual Report for 2022.

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The boundaries of the indicators are indicated

in the section "Sustainability Data". Any information that pertains to different combinations of subsidiaries is accompanied by appropriate disclaimers.

The reporting information is disclosed within two reporting perimeters:

Δ the first perimeter comprises information pertinent

to Moscow Exchange, NSD, NCC and NAMEX;

the second perimeter comprises information

Step 1

Defining the context of the activities

• Analysis of all sustainable development objectives of the MOEX Group
• Linking objectives to the UN Sustainable Development Goals
• Analysis of the proposed topics in the GRI and SASB standarts
• Identification of the stakeholders affected by each objective
• Identification of 29 potential substainability topics related to Moscow Exchange business

Step 2

Identifying of actual and potential impacts

Analysis of the sourses of feedback from the following stakeholders:

• Regulators and government authorities: Bank of Russia recommendations, SD legislation and bylaws
• Stakeholders and investors: Investor perception surveys
• Professional associations and ESG agencies: assessment criteria for ESG agencies
  and recommendations from assosiations
• Employees: employee angagemant assessments and other staff surveys
• Market participants and their clients: resulting satisfaction score
• Issuers: issuer survey on ESG awareness

Δ

pertinent to Moscow Exchange.

Step 3

Assessing the significance

of actual and potential impacts

Step 4

Defining priorities

MOEX GROUP'S APPROACH TO MATERIALITY

3-13-22-14

Conducted a survey of 12 managers of the MOEX Group Sustainability Goals Working Group

to identify:

Δ	Testing and validation of material topics
	by the expert group
Δ	Approval of material topics by the SDG

Determining material topics for the Report is an essential part of preparing non-financial statements as per the GRI Standards. The purpose of this procedure is to study and identify

the economic, environmental, and social issues that are most impacted by Moscow Exchange on its stakeholders.

The new GRI standards that came into force required a new prioritisation of material topics based on a combination of negative and positive impacts on stakeholders. The Moscow Exchange Group Sustainable Development Goals Working Group (SDG WG), formed by the Executive Board's decision of 16 November 2021 (Minutes No. 84), conducted a four-step procedure to identify material topics.

• potential and actual positive impacts on stakeholders
• potential and actual negative impacts on stakeholders

Working Group

Δ Disclosure and professional assurance

of indncators of material topics

in the Sustainability Report

The list of analysed topics was expanded from	New substantive topics have been converted into 22
16 in the 20201 analysis to 29 topics; of these, 17	objectives of the 2023 Sustainability Roadmap.
were recognised as material based on the stakeholder
impact criterion. Based on the results of prioritisation,
the list of material sustainability topics was approved
by a decision of the Moscow Exchange Executive
Board dated 25 April 2023 (Minutes No. 29).

1 The matrix and the list of material topics for the last reporting period may be found in Sustainability Report of Moscow Exchange 2021: https://fs.moex.com/files/24514/

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MOEX.COM | SUSTAINABILITY REPORT | 2022

Materiality Matrix

• The new GRI Standards (2021) require to distinguish the sustainability topics by the significance of actual and potential, negative and positive impacts on the stakeholders.
• The integral rating of the material topic is calculated as the sum of the levels of positive and negative impact on the stakeholders.
• All of the material topics with an integral impact rating above 5.5 are rated as material.
• Indicators of non-material topics may be disclosed in the sustainability report, but are not covered by professional assurance.

		5.00
	high
	Critically	4.00
																																					1
	high																																		3		2
																																	4
	Extremely																														7, 9		5, 6
																										10
		3.00																							11
																						13				8, 12
																		18, 19			14, 16, 17
negativeimpact																	21
																				15
Tangible														22		20
											25, 26, 27
2.00										23, 24
potentialand	Insignificant									28
						29
		1.00
of actual	Absent
Level	0.00
				0.00			1.00					2.00											3.00										4.00		5,00
				Absent	Insignificant	Tangible								Extremely high					Critically high
				Level of actual and potential positive impact
	Area of material topics
Material topics
1	Information Security												10	Fair Labour Relations
2	Sustainable Technological Development							11 Ensuring Diversity and Equal Opportunities for staff
3 Compliance with laws and regulations							12 Sustainability sector and ESG-indices
4 Ensuring the health, safety and well-being of staff							13	Carbon Units Market
5	Financial literacy												14 Staff Training and Development
6 Quality of Corporate Governance												15 Equal opportunities and Human Rights
7 Public and Regulator Policy Influence												16 Management of sustainable development risks
8 Development of business ethics and compliance culture							17 Investments to Innovation, small and medium-sized
9	Stimulating ESG-practices														enterprises
Non-material topics
18	Sustainable Supply Chain												24 Respect for human rights by security personnel
19	Sustainable Development Partnerships							25 Support for freedom of association and collective bargaining
20 Marketing communications												26 Recycling and reuse of materials
21 Economic impact on the region of presence							27 Customer Health and Safety
22 Charity and sponsorship												28 Biodiversity conservation activities
23 Achievement of Environmental Efficiency							29 Rights of Indigenous Peoples
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OVERVIEW OF		2022 SUSTAINABILITY		SUSTAINABILITY DATA		SUSTAINABILITY		APPENDIXES
MOSCOW EXCHANGE		PERFORMANCE				APPROACHES
GROUP'S REPORTING SUITE		HIGHLIGHTS				AND PROCEDURES

Material topics

Impact

Topic name

Impacted stakeholders

GRI and SASB standards

rating1

8.58

1. Information Security

Market participants and their clients

: Customer Privacy (2016)

GRI 418

FN-EX-550a.2

7.92

2. Sustainable

Market participants and their clients

FN-EX-410a.1

Technological

Moscow Exchange shareholders

FN-EX-550a.1

Development

and investors

FN-EX-000.A

FN-EX-000.B

7.75

3. Compliance with laws

Regulators and state authorities

and regulations

(Bank of Russia, Federal Executive

and Legislative Bodies)

7.17

4. Ensuring the health,

Employees

: Professional Health and Safety

GRI 403

safety and well-being

(2018)

of staff

7.17

5. Financial literacy

Market participants and their clients

: Local Communities (2016)

GRI 413

Residents of the region of presence

: Indirect Economic Impacts (2016)

GRI 203

7.08

6. Quality of Corporate

Moscow Exchange shareholders

Governance

and investors

6.67

7. Public and Regulator

Regulators and state authorities

: Public Policy (2016)

GRI 415

Policy Influence

(Bank of Russia, Federal Executive

and Legislative Bodies)

Professional Associations

and ESG-Agencies

Development institutions

and International Organizations

6.58

8. Development

Employees

: Anti-corruption (2016)

GRI 205

of business ethics

GRI 206

: Anti-competitive Behavior (2016)

and compliance culture

FN-EX-510a.1

FN-EX-510a.2

6.33

9. Stimulating

Issuers

: Indirect Economic Impacts (2016)

GRI 203

ESG-practices

Professional Associations

FN-EX-410a.3

and ESG-Agencies

FN-EX-410a.4

FN-EX-510a.1

6.33

10. Fair Labor Relations

Employees

: Employment (2016)

GRI 401

: Labor Management Relations

GRI 402

(2016)

1 The integral rating of a material topic is calculated as the sum of the levels of positive and negative impact on stakeholders

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