MOEX GROUP’S APPROACH TO MATERIALITY

3-1 3-2 2-14

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), as part of the preparation of the Sustainability Report 2022 conducted a four-step procedure to identify material topics.

Step 1Defining the context of the activities Analysis of all sustainable development objectives of the MOEX GroupLinking of objectives to the UN Sustainable Development GoalsAnalysis of the proposed topics in the GRI and SASB standartsIdentification of the stakeholders affected by each objectiveIdentification of 29 potential substainability topics related to Moscow Exchange business

The list of analysed topics was expanded from 16 in the 2020 The matrix and the list of material topics for 2020 reporting period may be found in Sustainability Report of Moscow Exchange 2021: https://fs.moex.com/files/24514/ analysis to 29; of these, 17 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).

Materiality Matrix
Materiality Matrix

Material topics

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

Topic name

Impacted stakeholders

GRI and SASB standards

8.58

1. Information Security

Market participants and their clients

GRI 418 Customer Privacy (2016)

FN-EX-550a.2

7.92

2. Sustainable Technological Development

Market participants and their clients

Moscow Exchange shareholders and investors

FN-EX-410a.1

FN-EX-550a.1

FN-EX-000.A

FN-EX-000.B

7.75

3. Compspanance with laws and regulations

Regulators and state authorities (Bank of Russia, Federal Executive and Legislative Bodies)

7.17

4. Ensuring the health, safety and well-being of staff

Employees

GRI 403 Professional Health and Safety (2018)

7.17

5. Financial literacy

Market participants and their clients

Residents of the region of presence

GRI 413 Local Communities (2016)

GRI 203 Indirect Economic Impacts (2016)

7.08

6. Quality of Corporate Governance

Moscow Exchange shareholders and investors

6.67

7. Public and Regulator Policy Influence

Regulators and state authorities (Bank of Russia, Federal Executive and Legislative Bodies)

Professional Associations and ESG-Agencies

Development institutions and International Organisations

GRI 415: Public Policy (2016)

6.58

8. Development of business ethics and compliance culture

Employees

GRI 205: Anti-corruption (2016)

GRI 206: Anti-competitive Behaviour (2016)

FN-EX-510a.1

FN-EX-510a.2

6.33

9. Stimulating ESG-practices

Issuers

Professional Associations and ESG-Agencies

GRI 203: Indirect Economic Impacts (2016)

FN-EX-410a.3

FN-EX-410a.4

FN-EX-510a.1

6.33

10. Fair Labor Relations

Employees

GRI 401: Employment (2016)

GRI 402: Labour Management Relations (2016)

6.17

11. Ensuring Diversity and Equal Opportunities for staff

Employees

GRI 405: Diversity and Equal Opportunity (2016)

GRI 406: Non-discrimination (2016)

6.17

12. Sustainability sector and ESG-indices

Issuers

Market participants and their clients

GRI 203: Indirect Economic Impacts (2016)

5.92

13. Carbon Units Market

Issuers

Market participants and their clients

Regulators and state authorities (Bank of Russia, Federal Executive and Legislative Bodies)

Development institutions and International Organisations

GRI 203: Indirect Economic Impacts (2016)

5.83

14. Staff Training and Development

Employees

GRI 404: Training and Education (2016)

5.83

15. Equal opportunities and Human Rights

Issuers

Employees

GRI 408: Child Labour (2016)

GRI 409: Forced or Compulsory Labor (2016)

5.83

16. Management of sustainable development risks

Moscow Exchange shareholders and investors

Regulators and state authorities

GRI 201: Economic Performance (2016)

5.75

17. Investments to Innovation, small and medium-sized enterprises

Issuers

Development institutions and International Organisations

GRI 203: Indirect Economic Impacts (2016)

Other material topics that can be disclosed selectively

5.25

18. Sustainable Supply Chain

Suppliers and contractors

GRI 414 Supplier Social Assessment (2016)

GRI 308 Supplier Environmental Assessment (2016)

5.25

19. Sustainable Development Partnerships

Professional Associations and ESG-Agencies

Development institutions and International Organisations

5.00

20. Economic impact on the region of presence

Residents of the region of presence

Regulators and state authorities (Bank of Russia, Federal Executive and Legislative Bodies)

GRI 201: Economic Performance (2016)

GRI 202: Market Presence (2016)

GRI 207: Taxes (2019)

4.75

21. Charity and sponsorship

Residents of the region of presence

GRI 203: Indirect Economic Impacts (2016)

4.50

22. Achievement of Environmental Efficiency

Residents of the region of presence

GRI 302: Energy (2016)

GRI 303: Water and Effluents (2018)

GRI 305: Emissions (2016)

GRI 306: Waste (2020)

4.42

23. Support for freedom of association and collective bargaining

Employees

GRI 407: Freedom of associations and collective bargaining (2016)

4.42

24. Recycling and reuse of materials

Residents of the region of presence

3.83

25. Measures for the conservation of biodiversity

Residents of the region of presence

GRI 304: Biodiversity (2016)