World Economic
Forum's
Stakeholder
Capitalism
Metrics
In 2019 the World Economic Forum (WEF) launched the 'Measuring Stakeholder Capitalism Initiative' to improve how companies measure and demonstrate their performance against environmental, social and governance (ESG) indicators and track their positive contributions towards achieving the Sustainable Development Goals (SDGs) on a consistent basis. The initiative promotes disclosure against 21 core and 34 expanded metrics focused on four themes: People, Planet, Prosperity and Principles of Governance.
The table below summarises how LSEG reports against the 21 core indicators.
Metric | Disclosure/theme | Indicator | Disclosure/reference | |
Governing purpose | Setting purpose | LSEG's purpose statement is available on our | ||
The company's stated purpose, as the expression of the means by which a business proposes solutions | website and our Sustainability Report | |||
to economic, environmental and social issues. Corporate purpose should create value for all stakeholders, | www.lseg.comSustainability Report page 6 | |||
including shareholders | ||||
Quality of governing body | Governance body composition | LSEG Sustainability Report 2023, | ||
Composition of the highest governance body and its committees by: competencies relating to economic, | Governance on page 7 | |||
Metrics | environmental and social topics; executive or non-executive; independence; tenure on the governance body; | Sustainability Databook 2023, pages 9-10 | ||
number of each individual's other significant positions and commitments, and the nature of the commitments; | sustainability issues on page 5 | |||
A list of the topics that are material to key stakeholders and the company, how the topics were identified and | ||||
gender; membership of under-represented social groups; stakeholder representation | ||||
Governance | Stakeholder engagement | Material issues impacting stakeholders | LSEG Sustainability Report 2023, key | |
how the stakeholders were engaged | LSEG Annual Report 2023: pages 74-76 for | |||
material risks | ||||
Ethical behaviour | Anti-corruption | Anti-bribery and Corruption Policy - UK Bribery | ||
1. Total percentage of governance body members, employees and business partners who have received | Act | LSEG | |||
training on the organisation's anti-corruption policies and procedures, broken down by region | Sustainability Databook 2023, pages 8 and 14 | |||
a) Total number and nature of incidents of corruption confirmed | during the current year but related to previous | |||
of | years; and | |||
b) Total number and nature of incidents of corruption confirmed | during the current year, related to this year | |||
Principles | 40 | |||
1. Seeking advice about ethical and lawful behaviour and organisational integrity; and | ||||
2. Discussion of initiatives and stakeholder engagement to improve the broader operating environment and | ||||
culture, in order to combat corruption | ||||
Ethical behaviour | Protected ethics advice and reporting mechanisms | Please see Whistleblowing at LSEG | ||
A description of internal and external mechanisms for | LSEG Sustainability Report 2023: pages 34 and | |||
2. Reporting concerns about unethical or unlawful behaviour and lack of organisational integrity | ||||
Risk and opportunity oversight | Integrating risk and opportunity into business process | LSEG Sustainability Report 2023, | ||
Company risk factor and opportunity disclosures that clearly identify the principal material risks and | page 38 | |||
opportunities facing the company specifically (as opposed to generic sector risks), the company appetite in | LSEG Annual Report 2023, | |||
respect of these risks, how these risks and opportunities have moved over time and the response to those | pages 65-67 for material risks | |||
changes. These opportunities and risks should integrate material economic, environmental and social issues, | ||||
including climate change and data stewardship |
2 World Economic Forum's Stakeholder Capitalism Index
Metric | Disclosure/theme | Indicator | Disclosure/reference | |
Climate change | Greenhouse gas (GHG) emissions | LSEG Sustainability Databook 2023, page 4 | ||
For all relevant greenhouse gases (e.g., carbon dioxide, methane, nitrous oxide, F-gases etc.), report in metric | ||||
tonnes of carbon dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 emissions. Estimate and report | ||||
material upstream and downstream (GHG Protocol Scope 3) emissions where appropriate | ||||
Metrics | Climate change | TCFD implementation | LSEG Sustainability Report 2023, page 15 | |
Fully implement the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). If | ||||
necessary, disclose a timeline of at most three years for full implementation. Disclose whether you have set, or | ||||
have committed to set, GHG emissions targets that are in line with the goals of the Paris Agreement - to limit | ||||
global warming to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C - | and | |||
Planet | to achieve net-zero emissions before 2050 | |||
Nature loss | Land use and ecological sensitivity | Sustainability Report 2023, page 22 | ||
Report the number and area (in hectares) of sites owned, leased or managed in or adjacent to protected areas | ||||
and/or key biodiversity areas (KBA) | ||||
Freshwater availability | Water consumption and withdrawal in water-stressed areas | Sustainability Report 2023, page 22 | ||
Report for operations where material mega litres of water withdrawn, mega litres of water consumed and | ||||
the percentage of each in regions with high or extremely high baseline water stress, according to WRI | ||||
Aqueduct water risk atlas tool. Estimate and report the same information for the full value chain (upstream and | ||||
downstream) where appropriate |
3 World Economic Forum's Stakeholder Capitalism Index
Metric | Disclosure/theme | Indicator | Disclosure/reference |
Dignity and equality | Risk for incidents of child, forced or compulsory labour | LSEG Sustainability Report, page 40 | |
An explanation of the operations and suppliers considered to have significant risk for incidents of child labour, | LSEG Human Rights Statement | ||
forced or compulsory labour. Such risks could emerge in relation to type of operation (such as manufacturing | LSEG Modern Slavery Statement | ||
plant) and type of supplier; or countries or geographic areas with operations and suppliers considered at risk | LSEG Supplier Code of Conduct | ||
Health and wellbeing | Health and safety (%) | LSEG Sustainability Databook 2023, | |
The number and rate of fatalities as a result of work-related injury; high-consequencework-related injuries | page 12 | ||
(excluding fatalities); recordable work-related injuries; main types of work-related injury; and the number of | |||
Metrics | hours worked. An explanation of how the organisation facilitates workers' access to non-occupational medical | ||
Percentage of employees per employee category, by age group, gender and other indicators of diversity (e.g., ethnicity) | |||
and healthcare services and the scope of access provided for employees and workers | |||
Dignity and equality | Diversity and inclusion (%) | LSEG Sustainability Databook 2023, pages 7-11 | |
People | |||
Dignity and equality | Pay equality (%) | LSEG Sustainability Databook 2023, pages 10-11 | |
Ratio of the basic salary and remuneration for each employee category by significant locations of operation for | |||
priority areas of equality: women to men; minor to major ethnic groups; and other relevant equality areas | |||
Dignity and equality | Wage level (%) | LSEG Sustainability Report 2023, pages 27-28 | |
Ratios of standard entry level wage by gender compared to local minimum wage. Ratio of CEO's total annual | |||
compensation to median total annual compensation of all employees (excluding the CEO) | |||
Skills for the future | Training provided | LSEG Sustainability Databook 2023, page 8 | |
Average hours of training per person that the organisation's employees have undertaken during the reporting | |||
period, by gender and employee category (total number of hours of training provided to employees divided by | |||
the number of employees). Average training and development expenditure per full time employee (total cost of | |||
training provided to employees divided by the number of employees) |
4 World Economic Forum's Stakeholder Capitalism Index
Metric | Disclosure/theme | Indicator | Disclosure/reference | |
Employment and wealth generation | Absolute number and rate of employment | LSEG Sustainability Report 2023, page 7 | ||
1. Total number and rate of new employee hires during the reporting period, by age group, gender, other | ||||
indicators of diversity and region | ||||
2. Total number and rate of employee turnover during the reporting period, by age group, gender, other | ||||
indicators of diversity and region | ||||
Community and social vitality | Total tax paid | LSEG Annual Report and Accounts page 171 | ||
The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable | ||||
VAT and other sales taxes, employer-paid payroll taxes and other taxes that constitute costs to the company, by | ||||
Metrics | category of taxes | |||
Employment and wealth generation | for the organisation's global operations, ideally split out by: - Revenues - Operating costs - Employee wages and | See Annual Report and Accounts 2023 page 48 | ||
Economic contribution | ||||
1. Direct economic value generated and distributed (EVG&D), on an accrual basis, covering the basic components | ||||
Prosperity | benefits - Payments to providers of capital - Payments to government - Community investment | |||
2. Financial assistance received from the government - total monetary value of financial assistance received | by | |||
the organisation from any government during the reporting period | ||||
Financial investment contribution | See Annual Report 2023, pages 46-49 and 56 | |||
1. Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company's | ||||
investment strategy | ||||
2. Share buybacks plus dividend payments, supported by narrative to describe the company's strategy for | ||||
returns of capital to shareholders | ||||
Innovation of better products | Total R&D expenses | 2023 Sustainability Databook, page 14 | ||
and services | Total costs related to research and development | More information about LSEG's approach to | ||
research and development can be found in the | ||||
LSEG Strategic Report: | ||||
https://www.lseg.com/en/investor- | ||||
relations#investor-info |
5 World Economic Forum's Stakeholder Capitalism Index
LSG3419008-WEF_Metrics_2023/3-24
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London Stock Exchange Group plc published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 12:49:25 UTC.