Encouraging Growth. Expanding Opportunities
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Encouraging growth. Expanding opportunities. Group Corporate Responsibility Report 31 December 2016 London Stock Exchange Group plc Corporate Responsibility Report 2016 Contents Contents For further information, visit: Part 1: London Stock Exchange Part 2: 2016 Review Part 3: Our Overall CR Performance www.lseg.com Group CR Strategy 10 Key initiatives 33 Data reporting overview 3 Message from our Group Chief 6 Our corporate 12 Pillar 1 – Our Markets 34 Environment Or contact: Executive, Xavier R Rolet, KBE responsibility strategy 17 Pillar 2 – Our Services 38 Social Investor Relations 4 Report at a glance 8 Materiality review 21 Pillar 3 – Our People 41 Governance London Stock Exchange Group plc 9 Progress on our commitments 27 Pillar 4 – Our Communities 44 Looking ahead 10 Paternoster Square 45 Appendix London EC4M 7LS Email: [email protected] For a glossary of terms, visit: www.lseg.com/investor-relations/ group-glance/glossary 2 London Stock Exchange Group plc Corporate Responsibility Report 2016 Message from our Group Chief Executive, Xavier R Rolet, KBE Welcome to our 2016 Corporate Responsibility Report “ We have a strong commitment and clear plans to run our business on a responsible basis for the benefit of our clients, colleagues, shareholders and a range of other stakeholders.” Xavier R Rolet, KBE Chief Executive, London Stock Exchange Group We recognise the important role that London Stock As a global markets infrastructure business, our core efficiencies for our clients. And just recently, we launched Exchange Group plays in supporting sustainable global purpose is to directly enable wealth and job creation: our new ESG Reporting Guidance to encourage and economic growth, both through the way we manage our the markets we operate facilitate equity and debt funding, facilitate clear, comprehensive, consistent and relevant business and through the services we provide to financial providing small, medium and larger businesses with access reporting of ESG matters. Our CR principles are being markets. We have a strong commitment and clear plans to to capital and thereby giving them the chance to grow, embedded across our business. run our business on a responsible basis for the benefit of create jobs and contribute to the broader economies This report provides the latest annual update on our Group our clients, colleagues, shareholders and a range of other in which they operate. Our FTSE Russell index and CR strategy, highlighting the developments and progress stakeholders. Our Group corporate responsibility (CR) policy benchmarking services help investors make informed we have made across the year. We outline our approach, sets out the way we conduct our business to ensure investment decisions based on a range of criteria, including define what we think is relevant, and also look ahead to long-term value creation as a commercial organisation, environmental, social and governance (ESG) factors, and the further improvement of our activities and disclosures. We value diversity as a driver for development and innovation. taking into account our environmental and social impacts, this year, FTSE Russell added Low Carbon Economy In 2016, we invited Brenda Trenowden, 30% Club Global Chair, and Caroline Dinenage, Parliamentary Under Secretary of State and incorporating good practice governance. products to help investors in the transition to a ‘green’ Thank you for taking the time to read this report. This year, for Women, Equalities and Early Years, to open the market. The economy. Our Post Trade businesses promote financial we have enhanced and expanded the report and we hope purpose of the 30% Club Investor Group is to help coordinate the market stability through risk and balance sheet it gives you further insight into the way we approach CR investment community’s approach to the issue of gender diversity. management services, while offering significant throughout our Group. Xavier R Rolet, KBE 3 London Stock Exchange Group plc Corporate Responsibility Report 2016 Report at a glance Report at a glance This report provides an annual update of the Our CR Strategy is defined by a series of six impact areas and Group’s approach, aims and achievements across is executed through four pillars: Our Markets, Our Services, all aspects of CR. Our sustainability performance Our People and Our Communities. The structure is set for 2016 is demonstrated through both out and explained in more detail on p.6-7. quantitative KPIs and description of various initiatives and programmes that were put in place to implement our strategy and reach our targets. HIGHLIGHTS Our Markets Our Services Our People Our Communities Global Sustainable Investment Centre 1. Change 3. Disclose 5. Develop 6. Sustain launched in November 2016 2. Grow 4. Manage risk ESG Reporting Guidance developed throughout 2016 and launched in February 2017 – ELITE has grown to include over 460 – FTSE Russell introduced new sustainable – The second Group-wide employee – LSEG Foundation donated over companies from 25 different countries investment data models and indexes, engagement survey received an 82% £1.3 million in 2016, and the impact and celebrated 15th anniversary of the response rate with an overall engagement of donations is closely aligned to its Environment – The ‘Companies to Inspire’ report FTSE4Good Index Series score of 82%, an increase of 6% on our core mission of empowering people series extended from UK to cover previous survey and enriching communities Europe and Africa – Key partnerships were established with emerging markets, especially – In 2016 LSEG became part of the first – Mahoga platform was launched in – LSEG became one of the founding -9% Asia and Africa cohort of participating firms of the Sri Lanka, attributed to the voluntary members of the City of London’s Green Overall carbon footprint per FTE HM Treasury Women in Finance Charter, work of our employees to connect Finance Initiative, promoting sustainable – Our markets demonstrated resilience and we won the Corporate Women social investors, intermediaries and financial products and services with 100% uptime in 2016, while Social of the Future award end beneficiaries LCH compression service reached a milestone of $1 quadrillion in notional – We successfully rolled out our inclusive – New volunteering policy grants two compressed and Monte Titoli celebrated mind-set training to our leadership paid days off per employee per year its 30th anniversary population, delivering 10 sessions to support charities of choice 40% across four offices and three countries Stretch target of female representation for senior management and overall population by 2020 Governance 100% LSEG businesses certified as compliant with our Anti-Bribery and Corruption policies 4 Part 1: London Stock Exchange Group CR Strategy London Stock Exchange Group plc Corporate Responsibility Report 2016 LSEG CR Strategy Our corporate responsibility strategy “We aim to play an essential role in enabling sustainable global economic growth, and ensure our behaviour and actions are consistent with CR good practice.” Xavier R Rolet, KBE CEO, London Stock Exchange Group Our business and CR strategy are consistent with last year that our overall approach remains unchanged, while we LSEG STRATEGIC PILLARS are committed to refining our CR strategy continuously. In the past year we launched the Group’s ESG Reporting Delivering best in class capabilities Driving global growth Developing our partnership approach Guidance and the Global Sustainable Investment Centre as part of our strategy to create a sustainable investment We continue to further develop our skills, tools and assets Three words that convey our commitment to continuing A crucial difference between the Group and our major environment and to be recognised as a global leader in to ensure we are able to capitalise on emerging customer dynamic expansion across the value chain, products competitors. Through our Open Access philosophy, and sustainability performance. needs – driving increased operational efficiency so we and geographies, and maximise value across the driven by continued innovation, partnership creates optionality always execute on time, and to budget. Group’s business. to develop commercial and corporate opportunities amidst constant industry and regulatory change. STRATEGY IMPLEMENTATION Our approach to CR Our CR strategy is defined by six impact areas (explained in the materiality review page) and is executed through the four – To play an essential role in enabling sustainable global pillars below: economic growth – To ensure our behaviour and actions are consistent with good CR practice while generating long-term value creation 1. Our Markets 2. Our Services Corporate responsibility is core supporting the sustainable growth enabling informed investment to our business growth strategy of companies for long-term decisions and transparent Believing that good CR practice underpins the delivery of economic prosperity markets operations an enhanced business performance, we set our twin CR objectives, quoted above, directly from our business strategy. Our business works within and supports prosperity and growth within local economies, and plays an integral role in 3. Our People 4. Our Communities sustaining the environment. This brings about continued long-term development of our business, while providing recruiting and developing diversified empowering people, wider opportunities to the global community. talent to fulfil their potential enriching communities A clear and comprehensive