CDP. Module: Introduction. Page: Introduction. CDP 2016 Climate Change 2016 Information Request CC0.1

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1 CDP CDP 2016 Climate Change 2016 Information Request Deutsche Börse AG Module: Introduction Page: Introduction CC0.1 Introduction Please give a general description and introduction to your organization. Deutsche Börse Group is one of the world s largest exchange organisations. We organise markets characterised by integrity, transparency and safety for investors who invest capital and for companies that raise capital. Our product and service portfolio covers the entire process chain from the monitored execution of trading orders, clearing, netting and transaction settlement through to post-trade custody of securities as well as liquidity management. This portfolio is rounded off by the necessary electronic infrastructure and the provision of market information. Deutsche Börse sets standards with its superior risk management and its innovative collateral management to enable customers to effectively use their capital. Our clear vision is to turn Deutsche Börse Group into the global market infrastructure provider of choice, being top-ranked in all its activities. We operate to the most exacting standards to create products and services to meet the needs of international financial markets. As a listed company we work to create value for our customers and our shareholders. Europe and the US are the core areas of the Group s business and it is continuously increasing its global reach, particularly in Asia and South America. The range of our offerings is constantly broadened by new products in existing and new asset classes, e.g. foreign exchange. Deutsche Börse has been a listed company since February As an issuer, it competes for investors capital on the capital market. At the same time, Deutsche Börse AG s membership in the DAX since December 2002 has increased its visibility on the international capital markets, thus strengthening its competitive position. CC0.2

2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(dd)/month(mm)/year(yyyy) (i.e. 31/01/2001). Enter Periods that will be disclosed Thu 01 Jan Thu 31 Dec 2015 CC0.3 Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response. Select country Germany Luxembourg Ireland Czech Republic United Kingdom Rest of world CC0.4

3 Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. EUR( ) CC0.6 Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire. If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please respond@cdp.net. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see Further Information Module: Management Page: CC1. Governance CC1.1 Where is the highest level of direct responsibility for climate change within your organization? Board or individual/sub-set of the Board or other committee appointed by the Board CC1.1a

4 Please identify the position of the individual or name of the committee with this responsibility (i) CEO (ii) Since February 2016 the Group Sustainability team is now reporting to Jens Hachmeister, Managing Director of Chief of Staff at Deutsche Börse Group. The area is directly reporting to the CEO. Carsten Kengeter is the CEO of Deutsche Börse Group and now the responsible Board Member for Sustainability within Deutsche Börse Group. The Head of Unit for Group Sustainability is Kristina Jeromin. This unit, which now comprises 3 persons (or 2.75 full time equivalents), systematically develops sustainability efforts, and the Group's understanding thereof, implements new processes and structures as well as it enhances our impact and stakeholder dialogue. The topic of sustainability includes climate change issues. With the decision in 2012 to integrate quantitative CR data and qualitative CR statements into the financial report of Deutsche Börse Group, its relevance and importance have been augmented at all levels of the organisation. Reducing our environmental footprint is one element of the Group s sustainability approach. Implementation of respective measures and the enhancement of our performance is an on-going process and subject to reviews in regular intervals at the Executive Board level. CC1.2 Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes CC1.2a Please provide further details on the incentives provided for the management of climate change issues Who is entitled to benefit from these incentives? The type of incentives Incentivized performance indicator Comment Facility managers Monetary reward Efficiency target One of the core responsibilities of our Facility Management Department is to plan, optimize, monitor and control capacity related purchases, system utilization and efficient usage of resources. The overall efficiency targets are hence related to the performance of the overall department rather than the goals of a single person. Nevertheless employees are rewarded

5 Who is entitled to benefit from these incentives? The type of incentives Incentivized performance indicator Comment Corporate executive team Environment/Sustainability managers Monetary reward Monetary reward Other: Product Development Target Behaviour change related indicator with a yearly bonus if they perform very well in their respective jobs. Deutsche Börse Group holds a majority shareholding in EEX AG - the European Energy Exchange with registered office in Leipzig. The product and service offerings of EEX AG and its subsidiaries focus on energy and energy-related markets (e.g. power, gas, emission allowances). By providing liquid, secure and transparent markets, EEX Group plays an important role for improving the efficient functioning of these markets that are directly linked to questions of climate change. This includes the continuous development of new products and services, providing market solutions to support the long-term transition of Germany s and Europe s energy system towards a higher share of carbon-free, renewable energy sources. EEX is constantly developing new support within the framework of the German Energiewende and wider EU climate and energy policy. This includes the long-term 2030 and 2050 climate and energy policy targets. Besides power markets, EEX operates a regulated market for emissions allowances and hosts the central auction platform for the EU ETS, organizing regular auctions on behalf of 27 EU Member States including 25 countries which form a EU-wide auction platform to be coordinated by the European Commission as well as Germany and Poland. Furthermore, it provides an exchange-traded market in Guarantees of Origin (GoOs) for electricity from renewable energy sources and is developing new hedging instruments to address the effects of increasing power generation from renewables The executive team of EEX AG and the heads of unit are rewarded based on the successful introduction of new products and services and increase of market shares in existing products and services as well as broadening the membership base, thereby generating business solutions closely tied to climate change issues. In the on-going transition to an energy system with a higher share of renewables, EEX is taking an active role by introducing new products to support this process, and adapting existing products. One example for the latter is the introduction of shorter lead times for power trading, thereby supporting the integration of renewable energy. Through extending its membership base, EEX is actively supporting new players in the power market, which is a core requirement for an efficient transition of the energy system. Individual goals of the Sustainability team are related to communicating climate change issues internally and externally. Reaching those goals is incentivized through bonus payments. Further Information

6 Page: CC2. Strategy CC2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes CC2.1a Please provide further details on your risk management procedures with regard to climate change risks and opportunities Frequency of monitoring To whom are results reported? Geographical areas considered How far into the future are risks considered? Comment Six-monthly or more frequently Board or individual/subset of the Board or committee appointed by the Board All world regions > 6 years Each business area is responsible for identifying risks and reporting them promptly to the risk management team. All new and existing risks are assessed and reported on a quarterly basis (ad-hoc when necessary) to the Executive Board. The relevance of climate change at the Group level is comparatively low but still considered to be an operational risk, e.g. through damage to physical assets. For the majority shareholding in EEX AG climate change and related national, European and international policies have a potentially high impact on EEX s strategy and risk/opportunity profile. Business opportunities may arise from developing solutions that help to attain climate policy objectives. The relevance for EEX is high and monitored very closely on a continuous basis. For energy and climate policies, long-term developments have to be taken into account. To give an example, the European Commission launched the consultation process for the EU 2030 climate and energy targets in March CC2.1b

7 Please describe how your risk and opportunity identification processes are applied at both company and asset level Company level: Assessment of climate risk is embedded in the overall risk management approach. Risk management is an integral component of management and control within the Group and aims at safeguarding the Group s continued existence and at achieving its long term corporate goals. The Group-wide risk strategy and risk management concept defines roles, processes and responsibilities and is binding for all staff and organizational entities within the Group. At the same time, an opportunity management is implemented to identify, evaluate and assess opportunities and to transform them into business solutions. Expected future developments in the industry sector are taken into account. The Group ensures that appropriate measures are taken to avoid, mitigate and transfer, or intentionally accept such risks. The principles apply to all business segments. Asset level: Assessment of climate risk is embedded in the overall risk management approach and is centrally managed. Roles, processes and responsibilities defined by Risk Management are binding for all staff and organizational entities within the group. At the same time, an opportunity management is implemented to identify, evaluate and assess opportunities and to transform opportunities into business solutions. The Group includes 3 financial institutions, which are subject to banking supervision and corresponding statutory requirements, and therefore meet the strictest requirements for risk management. All other companies in the Group are aligned with the highest standard for comparable companies ( best-in-class ). Accordingly, Deutsche Börse Group s subsidiaries have their own risk and opportunities management in place within the overall Group framework. At Clearstream for example, the Audit, Compliance and Risk Management Committee covers all areas of risk and regularly receives compliance status and risk reports from executive management at least once a year. CC2.1c How do you prioritize the risks and opportunities identified? The Group's risk strategy is aligned with its business model and business strategy. The Group consciously assumes risks in order to satisfy market needs and maximize business opportunities. Various quantitative and qualitative risk management approaches and methods are used to monitor and manage the Group s risk profile. The Group assesses and reports operational, financial and business risk using the same approach and uniform measure for all its units (value at risk (VaR)), including the unregulated ones. This value quantifies the risks and represents the upper limit of the cumulative loss that the Group may incur within a specified period of time, e.g. for the next twelve months. The risk limitation principle above also defines a confidence level for each of the orderly liquidation and the going concern. In addition, the regulatory capital requirements for the financial institutions within the Group are also determined. Furthermore, Deutsche Börse Group applies stress tests to analyse its risks. Within Deutsche Börse Group s five-stage risk management system, risk exposure is assessed. Deutsche Börse Group assigns indicators to each risk exposure to estimate how likely it is to occur and what financial effect it could have. It distinguishes four probability levels and four financial impact levels. Accordingly, risks are prioritized based on a combination of the estimated likelihood and the possible financial impacts. On the opportunity side, suggestions from the Group s business areas for new products, services and technologies serve as starting point for further analysis and to develop a business plan and profitability analysis. If approved, growth areas are prioritized and budgets made available accordingly subject to the general business performance. Budgeting involves reserving a full-year budget in the form of expenditures and expenses for each selected growth initiative. Progress is regularly monitored and reviewed.

8 CC2.1d Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future Main reason for not having a process Do you plan to introduce a process? Comment CC2.2 Is climate change integrated into your business strategy? Yes CC2.2a Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process The main motivation to consider aspects of climate change for the business strategy came through evaluation of opportunities and risks along the value chain of Deutsche Börse Group s business activities. Deutsche Börse Group meets its corporate responsibility comprehensively and maintains a steady dialogue with its various stakeholder groups. This exchange forms an important pillar for the strategic direction of its sustainability strategy. It comprises three practical leitmotifs (Build trust; Set an example; Create awareness) with the objective of strengthening and securing the economical and social value of the Group in a sustainable way. As a market place organiser, Deutsche Börse Group considers ensuring transparency on the capital markets as its direct responsibility. The most substantial business decisions related to climate change were made within EEX AG. For instance, new product offerings in commodities derivatives trading were assessed in This initiative resulted in the strategic investment in EEX AG and full consolidation in EEX is a key driver in developing Europe wide power markets for power and energy commodities, thereby contributing to the attainment of German and European climate change policy and emissions reduction goals. Deutsche Börse Group develops sustainable indices in order to offer responsible investment options to investors, according to environmental, social and economic (ESG) criteria. An important aspect of this is climate change. The Group continues to develop products, which facilitate SRI investment decisions. Products e.g. include the ÖkoDAX, DAXglobal Alternative Energy, STOXX

9 ESG Leaders and Sustainability Index families, Photovoltaik Global 30, plus EEX emissions and electricity markets. STOXX Ltd., a subsidiary of Deutsche Börse AG, offers a wide variety of transparent sustainability indices. At present, 30 indices are available, including the index families STOXX Global ESG Leaders and STOXX Sustainability. The STOXX Global ESG Leaders indices are based on sustainability ratings covering the ESG criteria. The STOXX Sustainability indices track the performance of sustainable companies. In 2015, STOXX and Sustainalytics, a leader in sustainability research and analysis, released a study entitled Global ESG Leaders (?) Nachhaltigkeit im DAX. This study evaluates companies whose shares are constituents of the German DAX blue-chip index, and ranks them according to their overall sustainability profile as a group on a global level and within Germany. It is based on STOXX Global ESG Leaders underlying data. The most important initial influence factors to business strategy were regulatory changes: the introduction of the EU Emissions Trading Scheme (EU-ETS) in particular as well as the European climate policy in general and the German energy transition. All activities Deutsche Börse Group engages with are closely linked to business opportunities, changes in the competitive landscape, and new products and services needs (new exchange trading patterns) resulting from new regulatory or other compliance requirements. Another important aspect to engage in new activities is stakeholder expectations and especially those related to the public-service mission of Deutsche Börse Group. This translates into campaigning for greater transparency of sustainable information on the global capital markets and promoting best practice. All elements that influence the long term strategy of the Group are also reflected in the short term activities and measures. At Group level, an important short-term step was taken with the 2012 corporate report, which for the first time was a fully integrated report. Internally, the Group s environmental focus is on energy-efficient IT management and resource-efficient business ecology. For its strategic investment in EEX relevant short-term factors are mainly regulatory changes concerning the EU ETS, energy policy in general and renewable energy policy in particular. Those pieces of legislative provide the basis, inter alia, for trading in emission allowances and Guarantee of Origin (GoO) certificates and for coupling of European energy markets and have a strong influence on the trading power in general. The introduction of a market for Guarantees of Origin in 2013 is one example how climate change policy has influenced corporate strategy. Deutsche Börse Group has defined long term objectives in its strategic business planning and is systematically working towards achieving them step-by-step. The main driving force remains new financial market regulations. This applies to traditional financial as well as to commodity markets, including climate-related sub-asset classes. Ongoing climate change can lead to regulation which can then result in a business opportunity for Deutsche Börse Group. Important international regulatory developments are taking place outside of Europe. Against this background Deutsche Börse Group as well as EEX are trying to establish themselves as players in those new or future markets. Especially for markets closely connected to climate topics, EEX has dedicated staff to develop business operations in those regions in the long term. At the European level, EEX continued to be a key driver for the integration of energy markets, in particular for power and gas, which is a key enabling factor for achieving the climate goals of the EU. To this end, EEX has launched a number of new products. In addition, EEX supports market development and integration by offering trading and clearing infrastructure and services to a growing number of exchange organizations all across Europe. Over the last few years, the financial services industry has been faced with a large number of new regulatory requirements and developments, which at first had a negative impact on existing operations of Deutsche Börse Group. Only by adapting to the new business environment and by diversifying into new products, services, asset classes and markets does Deutsche Börse Group continue to be ranked among the world s top exchange organizations. The strategy, which is designed to take advantage of structural growth opportunities, including those induced by climate change, is paying off. This applies to the overall organization as well as to EEX, which was able to provide strong results in 2015 by more than doubling sales revenue (+147%) and which is well positioned within the competitive landscape

10 of energy exchanges. One element for this success is the constant development of products and markets to adapt them to better serve Germany s and Europe s power system in their transition towards a higher share of renewable energy and lower emissions, but also a consequent diversification of business fields towards further commodity product. CC2.2b Please explain why climate change is not integrated into your business strategy CC2.2c Does your company use an internal price of carbon? No, and we currently don't anticipate doing so in the next 2 years CC2.2d Please provide details and examples of how your company uses an internal price of carbon CC2.3 Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply) Direct engagement with policy makers Trade associations Other

11 CC2.3a On what issues have you been engaging directly with policy makers? Focus of legislation Corporate Position Details of engagement Proposed legislative solution Cap and trade Support EEX engages directly with European and national policy makers and market participants to foster a dialogue and support market based solutions and support structural reform of the EU ETS. This supports the attainment of the EU 2030 and 2050 emissions reduction targets national emissions reductions targets as part of climate policy. In early 2015 EEX responded to the EU Consultation on revision of the EU Emission Trading System (EU ETS) Directive where EEX states its support of the proposal to align the EU ETS cap with the EU s 2050 long-term ambition and the adjustment of the linear reduction factor. Especially the proposed Market Stability Reserve is believed to send strong political signals and to increase trust in the EU ETS as a whole. This was followed up by the EEX s answer to the consultation on the EU ETS Auctioning Regulation in March The EU ETS has established an EU-wide price signal for the emissions market, providing efficient signals to the market and reducing emissions. With DG Climate being the responsible administration for the joint EU auctioning platform and the German Ministry for Environment the responsible administration for the German auctioning platform EEX is in regular contact with both administrations to guarantee smooth operation of the auctioning platform it operates. In addition, EEX is a member of the EU working group of IETA (International Emissions Trading Association). IETA is in regular contact with members of the EU Commission, Parliament, Presidency, and individual Member States to give a market perspective on policy developments with respect to climate change. IETA subscribes to the objectives of the UNFCCC and ultimately climate protection; advocates the establishment of effective market-based trading systems for greenhouse gas emissions; and maintaining societal equity and environmental integrity while establishing these systems. As an active member of EUROPEX (European Association of Energy Exchanges) EEX contributes through specialized working groups. Through its Environmental Market Working Group, EUROPEX is voicing energy exchanges positions on carbon and Deutsche Börse Group and EEX in particular are convinced that the EU ETS as the EU s main climate policy instrument is the most efficient means to reduce CO2 emissions in the European Union at the lowest costs as a market-based trading scheme. The current oversupply of allowances in the marketplace has a negative effect on prices for CO2 and hence on investments in low carbon energy generation and mitigation measures. EEX is in favor of solutions that minimize market intervention by regulatory bodies. The scarcity of certificates that needs to be restored could be achieved by an increase in the cap at the European level until 2030 or other appropriate measures and needs to be coordinated with other measures in the field of renewable energy and integration of the European energy market. EEX is well aware that any political changes on the energy market are always directly reflected on the exchange and takes an active role in the policy process, regularly providing input to consultations. In October 2015, EEX proposed a plan for the further development of European power markets through the Public Consultation on the New Energy Market Design. Key elements are strengthening the role of market prices in the market design, the integration of renewable energies into the market, and stronger regional coordination of policy making. Another example is the eight energy policy cornerstones which should be considered in the future power market design, including European emissions trading, regardless of its detailed design from the perspective of the energy exchange. The turnaround in the energy sector is too complex to be controlled by central guidelines and with a limited, national focus. Instead, both competition and market mechanisms and the potential of the European internal energy market should be used in order to make the implementation efficient from a macroeconomic perspective. Energy markets need a reliable political framework Commitment to free, competitive, supervised and transparent markets The further expansion of renewable energies should be market-based Guarantees of origin create

12 Focus of legislation Corporate Position Details of engagement Proposed legislative solution Energy efficiency Support wider environmental markets policy issues and developments. From this background, EEX has contributed to the publication of a EUROPEX position paper on principles for the further development of carbon and wider environmental markets and other position papers. EEX is engaging with policy makers on the possible design of future energy markets and the integration of renewable energies in such a model. The topic has many different aspects to it. Against this background EEX regularly provides input to public consultation processes and through political position papers. With that it responded in February 2013 to the public consultation of the European Commission (DG Energy) on generation adequacy, capacity mechanisms and the internal market in electricity. It is important to EEX to provide input from a market based perspective so that this approach is also considered when tackling the challenges from a European perspective in order to sustain a reliable electricity system. EEX also provides input and communicates its point of view via position papers and all related energy market topics. The EEX Paper on Energy Policy Cornerstones: Factors for the Success of the Energy Turnaround published in June 2013 as mentioned above is one of the key documents outlining its position on the design and framework for energy markets. The position paper published jointly by EEX and EPEX SPOT in Spring 2014 covers the further development of the renewable support schemes in Germany - the German Renewable Energy Act (EEG). In early 2015 EEX published a concept paper on the development of so-called Energiewende products (such as Cap Futures and Wind Power Futures). The fundamental assumption for these products is that the market price signal has a control function in the short run and a financing function for flexibility in the long run. A short-term demand for flexibility is created by the generation of renewable energies which cannot be planned with absolute reliability. Market players need tools enabling them to adjust their positions in the short run and to avoid imbalances be-tween generation and consumption. With a view to the long- term financing of flexibility, the challenge is to assess risks arising from short-term volume fluctuations and to transfer these into financial risks which can be controlled with the help of long-term trading products for the hedging of risks. In transparency and confirm the willingness to pay for green power Capacity mechanisms only as the ultima ratio no further subsidisation mechanism Stronger demand side management creates more flexibility on the market Energy policy with a European perspective The foundation of EEX s positioning is the strengthening of the market price signal, and the further integration of European energy markets. Strengthening the market price signal allows energy supply to more closely follow demand, thereby increasing the efficiency of the system. Wholesale market participants should be enabled whenever possible to react to market signals. This is most efficiently achieved in an integrated, European market bringing together a wide variety and great number of actors. EEX is convinced that efficient energy markets need to be organized at a European level and require full integration of markets. It advocates that renewable energies need to be integrated in the future design of energy markets. The position EEX took on the February 2013 Consultation of DG Energy was that Renewable energy sources need to be fully integrated in the overall energy market Market prices need to be strengthening Demand flexibility and price elasticity need to be fostered Energy grids need to be expanded at a European level The definition of and guarantee for a secure supply of energy needs to be determined at the European level. The EEX and EPEX SPOT joint position paper calls for stronger market integration of renewable energies which should go beyond today s options for direct marketing. In this respect, EEX and EPEX SPOT agree with the Federal Minister of Economic Affairs and Energy Gabriel s reform proposals, going one step further in their demands for market integration. EEX is aware that any political changes on the energy market are always directly reflected on the exchange. For this reason, EEX proposes eight energy policy cornerstones which should be considered in the future power market design, including European emissions trading, regardless of its detailed design from the perspective of the energy exchange. In this context, all cornerstones refer to the two dimensions market and Europe which should form the frame of reference for a future market design from the perspective of EEX. EEX believes that the transition in the

13 Focus of legislation Corporate Position Details of engagement Proposed legislative solution 2015, EEX participated extensively in the German Ministry of Economic Affairs consultation process on the further development of the energy market design. EEX provided input to both the green and white papers published as part of this process. energy sector is too complex to be controlled by central guidelines and with a limited, national focus. Instead, both competition and market mechanisms and the potential of the European internal energy market should be used in order to make the implementation efficient from a macroeconomic perspective. In its position paper laying out the cornerstones of energy policy cornerstones, the guarantees of origin play a key role. They are considered to create transparency and confirm the willingness to pay for green power Guarantees of origin confirm the willingness to pay for the green property of renewable energies. As a result of the separate marketing of these, revenue which can reduce the EEG levy can be generated. The possibility should be created to separately market the green property of plants funded under EEG through guarantees of origin. Clean energy generation Support EEX is actively promoting and advocating the implementation of Trading in Guarantees of Origin based on the EU Renewable Energies Directive (2009/28/EG), which specifies clear regulations and requirements which are uniform throughout Europe. EEX has also contributed extensively to the policy process on the review of the Renewable Energy Directive (REDII). CC2.3b Are you on the Board of any trade associations or provide funding beyond membership? Yes CC2.3c Please enter the details of those trade associations that are likely to take a position on climate change legislation Trade association Is your position on climate change consistent with theirs? Please explain the trade association's position How have you, or are you attempting to, influence the position? econsense - Forum Consistent econsense is an association of leading, globally active Kristina Jeromin, Head of Group Sustainability at Deutsche

14 Trade association Is your position on climate change consistent with theirs? Please explain the trade association's position How have you, or are you attempting to, influence the position? for Sustainable Development of German Business companies and organizations of German business specializing in the area of sustainable development and corporate social responsibility (CSR). Founded in 2000 on the initiative of the Federation of German Industries (BDI), the goal of econsense is to provide a dialogue platform and think tank, with the dual objectives of advancing sustainable development in business and assuming social responsibility. Sustainability and CSR have become globally guiding principles. In an open dialogue, the members of econsense strive to further advance the implementation of economic, social and ecological objectives, with the awareness that business with strengths in innovation and investment also assumes certain responsibility for the success of sustainable development. At the same time, companies can only discern their corporate social responsibility when supportive and reliable political framework conditions offer them a good environment. Uniting all econsense members is the conviction that sustainable development offers a strategy for companies to increase their long-term competitiveness and, thus, to remain future proof. The objectives of econsense are: - To pool corporate activities on sustainability topics, such as climate protection and demographic change, and to jointly further develop these projects; - To actively shape the political and social discourse; - To credibly communicate the solution competence of the economy; - To strengthen the open dialogue between political and social groups; - To highlight the possibilities and limitations of corporate responsibility; and - To promote sustainability concepts and CSR in the business community and raise awareness of policymakers for framework conditions that promote innovation and competitiveness. The main topics covered by the association with respect to climate change include: Making Sustainability Measurable (Ratings/ Rankings/ Reporting), Sustainability along the Value Chain, Resource Efficiency, and Managing Climate Protection. Börse AG, is member of the steering committee of econsense. Together with the Management of the association, the steering committee is responsible for both the strategic alignment of econsense and the collaboration with the economy, politics, society and the media.

15 Trade association Is your position on climate change consistent with theirs? Please explain the trade association's position How have you, or are you attempting to, influence the position? EUROPEX Consistent EUROPEX is a not-for-profit association of European energy exchanges. It represents the interests of 24 exchange-based wholesale electricity, gas and environmental markets and provides a European discussion platform on developments of the European regulatory framework for wholesale energy trading. Activities include: Promoting the role of energy exchanges as a way of increasing competition by creating price transparency and implementing the European single electricity and gas market Supporting the liberalization of the different European electricity and gas systems Dealing with the issue of international trading, with special emphasis on providing a market solution to the congestion problems Maintaining a dialogue with the European Union authorities and with other European electricity, gas and environmental markets related entities Increasing co-operation between European energy exchanges and to promote free trade Collecting information, preparing reports and providing advice in matters related to the aforementioned objectives Assessing the need for recommendations regarding market information dissemination and market rules especially related to market power abuse Through its Environmental Market Working Group, EUROPEX voices its positions on carbon and wider environmental markets policy issues and developments. In its answer to the EU Consultation on revision of the EU Emission Trading System (EU ETS) Directive in March 2015, it stated that it supports the proposal to bring the EU ETS cap in line with the EU s 2050 long-term ambition and the adjustment of the linear reduction factor to achieve this. The unambiguous commitment to this ambitious reduction path also contributes to decreasing insecurity due to interaction effects with other policies. Of course, these interaction effects with other policies have only to a limited extent been the cause of the current allowance surplus in the ETS, which is mainly a result of economic development. EUROPEX welcomes the discussion on structural reform at the European level. The proposed Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT, and Egbert Laege, CEO of Powernext, both EEX Group companies, are Board Members of EUROPEX. They support the overall strategic positioning and approach of EUROPEX. In addition, EEX staff is an active member of EUROPEX specialized Environmental Market working group, EEX also contributes at the operative level and has actively supported to the publication of a EUROPEX position paper on principles for the further development of carbon and wider environmental markets and other position papers.

16 Trade association Is your position on climate change consistent with theirs? Please explain the trade association's position How have you, or are you attempting to, influence the position? IETA (International Emissions Trading Association) Consistent Market Stability Reserve (MSR) can send a strong political signal and contribute to increasing trust in the EU ETS as a whole. To function efficiently, an emissions market requires scarcity to create a price signal in addition to long-term predictability of rules and targets. IETA subscribes to the objectives of the UNFCCC and ultimately climate protection; advocates the establishment of effective market-based trading systems for greenhouse gas emissions; and maintaining societal equity and environmental integrity while establishing these systems. EEX is an active member of IETA, regulatory participating in the EU working group of IETA. IETA is in regular contact with members of the EU Commission, Parliament, Presidency, and individual Member States to voice member opinions on policy developments with respect to climate change. CC2.3d Do you publicly disclose a list of all the research organizations that you fund? CC2.3e Please provide details of the other engagement activities that you undertake Deutsche Börse Group engages with its stakeholders in many different ways on ESG topics. The goal is to continuously improve transparency on global capital markets and to empower market participants to better understand ESG issues, to apply an ESG approach within their own companies and to share information on ESG activities of listed companies. Against this background, these activities only indirectly influence policy on climate change (mainly reporting of non-financial information) but all contribute to increase the awareness within financial markets and the corporate world and hence foster reporting and information activities of market participants. At the same time measuring the performance of actively engaged companies through e.g. indices supports sustainable investment strategies. High transparency in the exchange trading segments Deutsche Börse Group has set up different transparency standards. For instance, companies listed in the Prime Standard of the Frankfurt Stock Exchange have to meet and comply with the highest international transparency requirements.

17 Information portal for sustainable securities On individual company master data sheets, Deutsche Börse s online information portal for sustainable securities provides market participants not only with financial data but also with sustainability key figures for 1,800 companies from all over the world included in STOXX indices. Series of workshops on sustainability topics for listed companies The stocks & standards workshops, developed for issuers and potential issuers, cover a multitude of topics regarding going & being public, including The importance of sustainability in the context of capital market communication of exchange-listed companies. Cooperation with international ESG organisations As a central interface between capital market participants, Deutsche Börse Group created a platform, which explains various ESG approaches. Deutsche Börse thus enables market participants and the public to gain an overview of different transparency initiatives and to exchange ideas with each other. Cooperation with the Global Reporting Initiative (GRI) Deutsche Börse Group hosts workshops mainly for publicly listed companies on the implementation of the new GRI reporting guidelines, hence supports establishing standards in financial and non-financial reporting. Cooperation with the International Integrated Reporting Council Deutsche Börse Group is a participant in the IIRC Pilot Program and became the world s first exchange organization to be actively involved in the development of a new integrated reporting system. The IIRC s aim is to develop an integrated reporting system with an international focus, which ensures that a company s key facts and figures are communicated clearly, concisely and transparently. Positioning and further development of the ESG Best Practice Guide The ESG Practice Guide contains seven recommendations on a comprehensive approach to capital market communications regarding sustainability. The guide supports transparency and standardization. Qualified supervisory board member training course and exam This initiative was designed to increase the quality of the work of supervisory board members and to enable them to make competent decisions based on the insights (including ESG insights) gained in the training sessions. It targets current and prospective members of a supervisory board (non-executive directors). As part of its corporate sustainability concept, EEX focus on supporting academic research and development in the energy field. With its Excellence Award individual students are rewarded for outstanding scientific papers that deal with current technical, economic or political questions in the fields of energy and exchange trading. Awards of EUR 1,000 are given for up to five suitable thesis or scientific research papers that are convincing on account of their creative approach and that provide new solutions to the problem cited, in addition to their containing an in-depth discussion. In addition, EEX supports the technical university RWTH Aachen and its Faculty of Electrical Engineering and Information Technology. EEX is a sponsoring member of the university s research association (FGH -Forschungsgemeinschaft für elektrische Anlagen und Stromwirtschaft e.v.), a non-profit research association of electricity supply industry and electrical industry. The association s aim is to develop and provide competence and practice-oriented technical knowledge in both regulated electricity networks and liberalized markets hence designing the future energy supply. Furthermore, EEX is an active member of IETA (the International Emissions Trading Association), an NGO that serves businesses engaged in the new field of carbon markets. IETA s objective is to build international policy and market frameworks for reducing greenhouse gases at low cost. IETA considers emissions trading as key tool to achieve that.

18 CC2.3f What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? Deutsche Börse Group has a centralised Public Affairs area, which is responsible for numerous projects relating to changes in Deutsche Börse Group s political and strategic environment. The core responsibility for Public Affairs related to energy markets at large is delegated directly to EEX. The working methods are identical and closely inter-coordinated. The overall approach is to take on a specific position in close consultation with the management of the business areas of the entire Group. For matters relating to corporate sustainability or climate change, the Group Sustainability Unit in the Chief of Staff area of Deutsche Börse Group is directly involved in the process. Moreover, Public Affairs at Deutsche Börse and EEX support and monitor political processes. On an ongoing basis, staff also make strategic assessments and prepare briefing documents on regulatory and policy matters for key decision makers of Deutsche Börse Group. The centralised teams guarantee that position papers and other activities such as reports or presentations are developed together and hence are consistent and in line with the strategy of Deutsche Börse Group. CC2.3g Please explain why you do not engage with policy makers Further Information Page: CC3. Targets and Initiatives CC3.1 Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year? Intensity target

19 CC3.1a Please provide details of your absolute target ID Scope % of emissions in scope % reduction from base year Base year Base year emissions covered by target (metric tonnes CO2e) Target year Is this a sciencebased target? Comment CC3.1b Please provide details of your intensity target ID Scope % of emissions in scope % reduction from base year Metric Base year Normalized base year emissions covered by target Target year Is this a science-based target? Comment Int1 Scope 1+2 (marketbased) 100% 0% Other: Metric tonnes of CO2 per workplace No, but we anticipate setting one in the next 2 years This is an annual rolling target CC3.1c Please also indicate what change in absolute emissions this intensity target reflects

20 ID Direction of change anticipated in absolute Scope 1+2 emissions at target completion? % change anticipated in absolute Scope 1+2 emissions Direction of change anticipated in absolute Scope 3 emissions at target completion? % change anticipated in absolute Scope 3 emissions Comment Int1 No change 0 No change 0 Target does not impact scope 3 CC3.1d Please provide details of your renewable energy consumption and/or production target ID Energy types covered by target Base year Base year energy for energy type covered (MWh) % renewable energy in base year Target year % renewable energy in target year Comment CC3.1e For all of your targets, please provide details on the progress made in the reporting year ID % complete (time) % complete (emissions or renewable energy) Comment Int1 100% 100% The rolling target of tonnes of CO2 per workplace decreased by 5% between 2014 and 2015 (Total Scope 1+2 emissions per total number of workplaces). In 2014 the ratio was In 2015 it was

21 ID % complete (time) % complete (emissions or renewable energy) Comment CC3.1f Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years CC3.2 Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions? Yes CC3.2a Please provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions