Managing the Business Effectively and Sustainably
Total Page:16
File Type:pdf, Size:1020Kb
Managing the Business Effectively and Sustainably 31 December 2014 Group Corporate Responsibility Report London Stock Exchange Group plc Corporate Responsibility Report 31 December 2014 01 Contents Message from our Group Chief Executive, Xavier Rolet 02 Part 1: London Stock Exchange Group CR Strategy Our corporate responsibility strategy 04 Progress on our commitments 06 The UN Sustainable Stock Exchange (SSE) Initiative 07 Pillar 1 – Our Markets 08 Pillar 2 – Our Services 13 Pillar 3 – Our People 17 Pillar 4 – Our Communities 21 Part 2: Our Overall CR Performance Methodology overview 30 Environment 31 Social 35 Governance 37 Looking ahead 42 Contacts and further details 45 London Stock Exchange Group plc Corporate Responsibility Report 31 December 2014 02 Welcome to our latest Corporate Responsibility report London Stock Exchange Group is firmly committed to This report includes more detail about our approach developing its Corporate Responsibility (CR) approach to CR, our achievements in recent months and our and reporting. Core to our strategy is ensuring that CR aims for the future. In particular, I would highlight: is aligned to our overarching business strategy and governance principles. In our last report, we explained — FTSE’s development of Low Carbon Economy that we had revised our CR strategy, to reflect the way and environmental, social and governance (ESG) the Group has expanded, both geographically and in services, which help investors make decisions terms of business diversification. During the course of based on ESG criteria; 2014, we further developed our CR strategy, which the — our continued work to support small and medium- Group Board has recently reviewed and endorsed. Our sized enterprises, through a range of initiatives, approach is founded on four pillars, which are the areas including our ELITE programme in the UK and where we believe we can have the most impact and add Italy, which prepares SMEs to access long-term Xavier Rolet the most value. These pillars are closely tied to how we equity finance as part of the funding ladder; CEO, London Stock Exchange Group operate as a business: Our Markets, Our Services, Our People and Our Communities. As our business evolves, — our first Group-wide employee engagement our approach to sustainability will respond, so that it survey, as part of our ongoing work to develop remains relevant to the political, economic and our people; and, social environments in which we operate. “ AS OUR BUSINESS EVOLVES, OUR — our continued support and involvement with our communities, through charitable donations and APPROACH TO SUSTAINABILITY We play a central role in global capital markets, which other opportunities. WILL RESPOND, SO THAT IT gives us a unique platform for promoting sustainability and CR. Our core economic function in providing trusted, Thank you for your interest. REMAINS RELEVANT TO THE stable and efficient financial market infrastructure has ENVIRONMENTS IN WHICH a significant impact on business activity in our markets, helping to create wealth and jobs. This benefit arises WE OPERATE.” from; sustainable equity funding, which is immensely important to economic growth; from the risk management services we provide to make markets safer through our post trade businesses; and from our Xavier Rolet index and benchmarking services, which enable better CEO, London Stock Exchange Group informed investment decisions. Our ability to promote good practices through corporate governance initiatives continues to be highly relevant, as corporate ethics and sustainability remain under close scrutiny. Part 1 London Stock Exchange Group CR Strategy London Stock Exchange Group plc Corporate Responsibility Report 31 December 2014 04 Our corporate responsibility strategy “ OUR CORPORATE RESPONSIBILITY Our approach to CR strategy including establishing a talent management team. The Our Communities section of this report provides The LSEG Board approved our approach to Details are included later in the Our People section. information on the Foundation’s progress during the GOAL IS TO PLAY AN ESSENTIAL CR in March 2014 and has subsequently agreed reporting period. AND SUSTAINABLE ROLE IN an implementation plan. Cross-functional teams In 2010, the Group established the London Stock have been established in each pillar, along with an Exchange Group Foundation (the Foundation) as a In addition, we have a number of management teams, GLOBAL ECONOMIC GROWTH” overall roadmap giving clear milestones to deliver corporate charitable trust. The Foundation provides working groups and committees that are engaged Xavier Rolet improvements in CR performance. Each pillar a single channel for the Group’s charitable giving and in CR strategy implementation. These include our CEO, London Stock Exchange Group strategy in turn supports the achievement and for promoting and facilitating our staff’s community Environmental Management Group, which is on-going development of our overall strategic engagement. The Foundation is administered by developing climate change initiatives, and our Group goals and is a means of communicating with a committee, made up of representatives from Procurement Team, which is targeting sustainability and engaging employees and other stakeholders. corporate and business functions from the Group’s choices with our suppliers. To support the delivery of main operational countries. During the period, our CR strategy, we have developed a ratings tracker Corporate responsibility is core to our business Strategy implementation significant effort has gone into developing a to monitor performance, continue to drive rating growth strategy Our customers increasingly require products and common, scalable charitable giving framework. improvements and ensure we use the most We play an essential role in global economic growth services to support the integration of environmental, This will allow FTSE and LCH.Clearnet’s charitable appropriate benchmarks for our performance as and recognise the responsibilities and expectations social and governance (ESG) factors into their giving programme to transition to the LSEG thinking evolves. We acknowledge the importance that come with this. For more than 200 years, we have investment decisions and stewardship approach. We Foundation in 2015, with a view to subsequently of global standards for measuring and reporting operated under the banner of “My word is my bond”. remain at the forefront of developing products such as integrating Russell Indexes on the same basis. This CR performance and will be developing additional Reflecting this, our corporate responsibility (CR) ESG indices and analytics. In the countries in which we will enable focused and strategically aligned charitable measures to complement the ratings that we strategy is centred on our commitment to providing operate, we aim to be the pre-eminent market for giving across the expanding Group. currently use to inform our strategic goals. open, trusted, reliable, independent and user-neutral facilitating sustainable economic growth. This requires markets and services. Our CR goal is to play an us to support the growth of smaller companies and to essential and sustainable role in global economic set the highest standards for corporate behaviour. LSEG STRATEGIC PILLARS growth and to create long-term value for our Supporting SME funding and development through Building best in class capabilities Creating a global business Developing opportunities stakeholders. This is fully aligned with our business programmes such as ELITE remains key to our growth We are building a strong, efficient and We are expanding We are targeting growth opportunities in sustainable business, positioned for in the US and other multiple business lines and continue to strategy and principles and we are progressively strategy and opens up exciting and profitable continued growth growth markets deliver synergies across Group business working to embed this strategic aim throughout opportunities for customers and stakeholders. the Group. Our markets We also have an important goal in sharing our We develop markets that can sustain the long-term prosperity of the economies we serve Throughout the reporting period, we have had a strong expertise in capital markets infrastructure and focus on developing our CR strategy, with several of services with new and developing markets globally, Our services our Executive Committee (ExCo) members, leading such as our partnership with Borsa Istanbul, covering We aim to help investors, traders and market intermediaries make informed and sustainable cross-business working groups, focused on specific derivatives and index products, and the strategic investment decisions and to execute them efficiently, safely and cost effectively targets and action plans in each of the four pillars of co-operation agreement between LSEG and our CR strategy. These pillars reflect our core business Casablanca Stock Exchange, covering trading Our people functions and key stakeholders. Demonstrating the and market surveillance technology. We develop our employees’ talent, commitment and critical thinking benefits of this integrated approach, LSEG has made a for our long-term success. significant improvement in external CR ratings, Our People strategy has been a particular focus PILLARSCR STRATEGY Our communities moving from third to first quartile against its peer in 2014. We have created a series of employee We turn our market presence into opportunities for those we connect with and carefully group in the