Annual Report
2022
including Financial Statements and
Corporate Responsibility Report
Forward-looking statements
This Annual Report contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US
Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results or outcomes of RELX PLC
(together with its subsidiaries, “RELX”, “we” or “our”) to differ materially from those expressed in any forward-looking statement. We consider any statements that
are not historical facts to be “forward-looking statements”. The terms “outlook”, “estimate”, “forecast”, “project”, “plan”, “intend”, “expect”, “should”, “could”, “will”,
“believe”, “trends” and similar expressions may indicate a forward-looking statement. Important factors that could cause actual results or outcomes to differ
materially from estimates or forecasts contained in the forward-looking statements include, among others: compromises of RELX cyber security systems or other
unauthorised access to our databases; regulatory and other changes regarding the collection, transfer or use of third-party content and data; changes in law and legal
interpretations affecting RELX intellectual property rights and internet communications; current and future geopolitical, economic and market conditions; changes
in economic cycles, communicable disease epidemics or pandemics, severe weather events, natural disasters and terrorism; changes in tax laws and uncertainty in
their application; changes in the payment model for RELX products; competitive factors in the industries in which RELX operates and demand for RELX products and
services; failure of third parties to whom RELX has outsourced business activities; breaches of generally accepted ethical business standards or applicable laws;
significant failure or interruption of RELX systems; inability to realise the future anticipated benefits of acquisitions; inability to retain high-quality employees and
management; exchange rate fluctuations
and other risks referenced from time to time in the filings of RELX PLC with the US Securities and Exchange Commission.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. Except as may be required by law, we
undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this
announcement or to reflect the occurrence of unanticipated events.
RELX
is a global provider of information-based
analytics and decision tools for professional and business
customers, enabling them to make better decisions,
get better results and be more productive.
that help researchers advance scientific knowledge;
doctors and nurses improve the lives of patients; lawyers
promote the rule of law and achieve justice and fair results
for their clients; businesses and governments prevent
fraud; consumers access financial services and get fair
prices on insurance; and customers learn about markets
Our purpose guides our actions beyond the products that
we develop. It defines us as a company. Every day across
RELX our employees are inspired to undertake initiatives
that make unique contributions to society and the
communities in which we operate.
About us
Annual Report 2022
1
Strategic report
Overview
2
2022 Highlights
3
Chair’s statement
4
Chief Executive Officer’s report
5
RELX business overview
Market segments
12
Risk
16
Scientific, Technical & Medical
20
Legal
24
Exhibitions
Corporate responsibility
28
Introduction
35
Our unique contributions
40
CR governance
44
People
50
Customers
55
Community
59
Supply chain
63
Environment
73
CR disclosure standards
Financial review
82
Chief Financial Officer’s report
88
Principal and emerging risks
Governance
Governance
98
Board Directors
100 RELX senior executives
102
Chair’s introduction to corporate governance
103 Corporate governance review
119
Report of the Nominations Committee
121 Directors’ remuneration report
143
Report of the Audit Committee
147 Directors’ report
Financial statements
and shareholder information
Financial statements
154 Independent auditor’s report
162 Consolidated financial statements
206
RELX PLC company only financial statements
214
Summary consolidated financial information in euros
215
Summary consolidated financial information in US dollars
216 Alternative performance measures
Shareholder information
226 Shareholder information
IBC 2023 financial calendar
RELX
Annual Report 2022
Contents
To download the full Annual Report and for
further information about our Company
visit
relx.com
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
2
RELX
Annual Report 2022 | Overview
RELX financial summary
ADJUSTED FIGURES
2021
£m
2022
£m
Change
Change at
constant
currencies
Change
underlying
For the year ended 31 December
Revenue
7,244
8,553
+18%
+11%
+9%
Operating profit
2,210
2,683
+21%
+14%
+15%
Operating margin
30.5%
31.4%
Profit before tax
2,077
2,489
+20%
+13%
Net profit attributable to shareholders
1,689
1,961
+16%
+10%
Cash flow
2,230
2,709
+21%
+13%
Cash flow conversion
101%
101%
Return on invested capital
11.9%
12.5%
Earnings per share
87.6p
102.2p
+17%
+10%
DIVIDEND
Ordinary dividend per share
49.8p
54.6p
+10%
REPORTED FIGURES
2021
£m
2022
£m
Change
For the year ended 31 December
Revenue
7,244
8,553
+18%
Operating profit
1,884
2,323
+23%
Profit before tax
1,797
2,113
+18%
Net profit attributable to shareholders
1,471
1,634
+11%
Net margin
20.3%
19.1%
Net debt
6,017
6,604
Earnings per share
76.3p
85.2p
+12%
RELX corporate responsibility summary
REPORTED FIGURES
2021
2022
Change
For the year ended 31 December
Percentage of women senior leaders
30
%
31%
Market value of cash and in-kind donations (£m)
20.6
22.6
+10%
Number of supplier code signatories
3,670
4,467
+22%
Scope 1 + Scope 2 (location-based) emissions (tCO
2
e)
49,695
42,481
-15%
Waste sent to landfill (t)
150
73
-51%
The shares of RELX PLC are traded on the London, Amsterdam and New York stock exchanges. RELX PLC and its subsidiaries, joint ventures and associates are together
known as ‘RELX’.
RELX uses adjusted and underlying figures as additional performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets and
other items related to acquisitions and disposals, and the associated deferred tax movements. Reconciliations between the reported and adjusted figures are set out on
pages 216 to 224. Underlying growth rates are calculated at constant currencies, excluding the results of acquisitions until 12 months after purchase, and excluding the
results of disposals and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling. Constant currency growth rates are based on 2021 full-year
average and hedge exchange rates.
2022 Highlights
§
Revenue £8,553m (£7,244m), underlying growth of +9%
§
Adjusted operating profit £2,683m (£2,210m), underlying growth +15%
§
Adjusted profit before tax £2,489m (£2,077m), constant currency growth +13%
§
Reported operating profit £2,323m (£1,884m)
§
Reported profit before tax £2,113m (£1,797m)
§
Adjusted EPS 102.2p (87.6p), constant currency growth +10%
§
Reported EPS 85.2p (76.3p)
§
Proposed full year dividend 54.6p (49.8p) +10%
§
Net debt/EBITDA 2.1x (2.4x); adjusted cash flow conversion 101% (101%)
§
Scope 1 + Scope 2 emissions (tCO
2
e) 42,481 (49,695)
§
SDG Resource Centre unique users 155,082 (133,832)
Prior year comparatives are represented in brackets.
RELX
Annual Report 2022
3
Environment, Social and Governance
Corporate responsibility (CR) remains a key priority for RELX.
During the year, the Board reviewed the company’s CR activities,
including its progress on environmental, social and governance
(ESG) objectives and unique contributions to society as described
in the CR Report, which this year we have made an integral part of
the Annual Report for the first time.
We are pleased to continue to receive positive recognition for our
ESG performance. ESG ratings from external parties including a
AAA MSCI ESG rating for a seventh consecutive year and inclusion
in MSCI’s UK ESG Leaders Index; ranking 11th out of more than
14,000 companies globally and first in our sector by Sustainalytics;
fourth in the Responsibility100 Index, an assessment of the FTSE
100 on performance against the UN Sustainable Development
Goals; while remaining a constituent of the Dow Jones
Sustainability Index and Bloomberg Gender Equality Index.
On behalf of the Board, I would like to thank RELX employees
for their many achievements throughout 2022. I have every
confidence that with their expertise and commitment RELX
will continue to be successful in the year ahead.
Paul Walker
Chair
Chair’s statement
We continued to execute against our strategy
in 2022 which was reflected in our strong
financial performance. We also continued
to build on our strong environmental,
social and governance performance, which
was recognised by many external agencies.
Paul Walker, Chair
RELX continues to execute well on its strategic priorities aimed at
achieving better customer outcomes, a higher growth profile and
improving returns, while having a positive impact on society.
Underlying revenue growth was 9 percent, with underlying
adjusted operating profits up 15 percent, as we continued to grow
revenues ahead of costs. Adjusted earnings per share grew
10 percent at constant currencies to 102.2p (87.6p). Reported
earnings per share were 85.2p (76.3p).
This was an excellent performance in an uncertain economic
environment. RELX enjoys very high levels of employee
engagement, which is a driver of growth in the business.
The strong culture encourages innovation and creativity, and
investment in new products and analytical tools that provide ever
greater value for our customers, while also making a valuable
contribution to society and the communities in which we operate
Dividends
We are proposing a full-year dividend increase of 10% to 54.6p.
The long-term dividend policy is unchanged.
Balance sheet
Net debt was £6.6bn at 31 December 2022. Net debt/EBITDA
including pensions was 2.1x, compared with 2.4x in 2021.
Capital expenditure represented 5% of revenues.
Share buybacks
In 2022 we deployed £500m on share buybacks. We intend to
deploy a total of £800m in 2023.
The Board
Wolfhart Hauser, who has been on the board since 2013, will be
stepping down as a Non-Executive Director after the next Annual
General Meeting. He has been the Senior Independent Director
since 2016 as well as chair of the Remuneration Committee.
I would like to thank Wolfhart for his support and advice over many
years. In 2022, Suzanne Wood will become the Senior Independent
Director and Robert MacLeod will become Chair of the
Remuneration Committee.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
4
RELX
Annual Report 2022 | Overview
Chief Executive Officer’s report
RELX delivered strong revenue and profit
growth in 2022. The improving long-term
growth trajectory is being driven by the
ongoing shift in our business mix towards
higher growth analytics and decision tools
that deliver enhanced value to our customers
across market segments.
Erik Engstrom, Chief Executive Officer
2022 progress
RELX delivered strong revenue and profit growth in 2022. The
improving long-term growth trajectory is being driven by the
ongoing shift in our business mix towards higher growth analytics
and decision tools that deliver enhanced value to our customers
across market segments.
Underlying revenue growth was 9%. Underlying adjusted
operating profit growth was 15%. All four business areas grew
well, with underlying adjusted operating profit growth in line with,
or ahead of, underlying revenue growth. Adjusted earnings per
share growth was 10% at constant currencies. Cash conversion
was 101%, contributing to a further reduction in leverage to 2.1x.
In recognition of our strong cash flow and financial position, we are
proposing a 10% increase in the full-year dividend, and we intend
to deploy a total of £800m on share buybacks in 2023.
Corporate responsibility
We also performed well on our corporate responsibility priorities
during the year, making good progress with our unique
contributions to society, further improving our key performance
metrics, and again being recognised by a number of external
agencies through high Environmental, Social and Governance
(ESG) ratings.
Our unique contributions are where in the conduct of our business
we deploy our resources and skills to make a positive impact on
society. They include advancing science and health, protection
of society, and promotion of the rule of law and access to justice.
In Risk, we expanded financial inclusion pilots in low-income
countries and used our products to reduce online fraud and
identity theft. In Scientific, Technical and Medical, we championed
inclusive health and research through global partnerships.
In Legal, we conducted legislative reviews to support the fight
against online exploitation of children. In Exhibitions, we worked
with peers on efforts to advance net zero and the transition
to a low-carbon economy.
Recognising that across RELX we have products, services,
tools and events that advance the United Nations’ 17 Sustainable
Development Goals (SDG), we continued to expand the free
RELX SDG Resource Centre with all four business areas
contributing content.
We further improved on our key performance metrics. We
ensured 100% of our electricity came from renewable sources and
renewable energy certificates, and we reduced our Scope 1 and 2
carbon emissions by 15%. We also increased the number of
suppliers signing our Code of Conduct which sets out our
expectations for suppliers’ ethical behaviour.
RELX received external recognition for its ESG performance.
It achieved a AAA MSCI ESG rating for the seventh consecutive
year; a first place sector ranking on ESG by Sustainalytics; and
was a constituent of the Bloomberg Gender Equality Index for the
fourth consecutive year.
Strategic Direction
Our strategic direction remains unchanged. We focus on
the organic development of increasingly sophisticated
information-based analytics and decision tools that deliver
enhanced value to our professional and business customers
across market segments.
Across all market segments, the improving long-term growth
trajectory is being driven by the ongoing shift in our business
mix towards higher growth analytics and decision tools. When
combined with our strategy of driving continuous process
innovation to manage cost growth below revenue growth, the result
is continued strong earnings growth, with improving returns.
Our priorities for use of cash are unchanged. Organic development
remains our number one priority. Second, we augment that
organic development with selective acquisitions, with the level
of spend typically being the most significant variable in our uses
of cash. Third, over the longer term, we grow dividends broadly
in line with adjusted earnings per share while targeting cover of
at least two times. Fourth we maintain leverage in a comfortable
range; and finally, we use any remaining cash to buy back shares.
Outlook
Momentum remains strong across the group, and we expect
underlying growth rates in revenue and adjusted operating
profit to remain above historical trends, driving another year
of strong growth in adjusted earnings per share on a constant
currency basis.
Erik Engstrom
Chief Executive Officer
5
RELX
Annual Report 2022
RELX business model
RELX is a global provider of information-based analytics and decision tools for professional and business customers. We leverage deep
customer understanding, combining leading content and data sets with powerful global technology platforms, to build sophisticated
analytics and decision tools that deliver enhanced value to our customers.
These products are generally sold through dedicated sales forces direct to customers and are priced on a subscription or transactional
basis, often under multi-year contracts, and are predominantly delivered in electronic format.
Our products often account for less than 1% of our customers‘ total cost base but can have a significant and positive impact on the
economics of the remaining 99%. Our objective is to continue to enhance the value that we deliver to our customers and over time to grow
our own total cost base below our rate of revenue growth on an underlying basis.
RELX business overview
RELX strategic direction
Our number one strategic priority continues to be the organic development of increasingly sophisticated information-based analytics
and decision tools that deliver enhanced value to professional and business customers across the industries that we serve.
Our goal is to help our customers make better decisions, get better results and be more productive. We do this by leveraging a deep
understanding of our customers to create innovative solutions which combine content and data with analytics and technology on
global platforms.
We aim to build leading positions in long-term global growth markets and leverage our skills, assets and resources across RELX,
both to build solutions for our customers and to pursue cost efficiencies.
We are systematically migrating all of our information solutions across RELX towards higher value-add decision tools, adding broader
data sets, embedding more sophisticated analytics and leveraging more powerful technology, primarily through organic development.
We are adding decision tools and analytics, transforming our core business, building out new products and expanding into higher
growth adjacencies and geographies. We are supplementing this organic development with selective acquisitions of targeted data
sets and analytics, and assets in high-growth markets that support our organic growth strategies, and are natural additions to our
existing businesses.
By focusing on evolving the fundamentals of our business we believe that, over time, we are improving our business profile and the
quality of our earnings. This has led to a higher growth profile as we expand in higher growth segments and increase decision tools and
analytics as a proportion of the business; and improved returns by focusing on organic development with strong cash generation while
delivering better customer outcomes and a positive impact on society.
R
evenue by format
Revenue by geographical market
Revenue by type
£8,553m
£8,553m
£8,553m
Electronic
Face-to-face
Print
6%
11%
83%
North America
Europe
Rest of world
19%
21%
60%
Subscription
Transactional*
46%
54%
* Includes long-term contracts with volumetric elements
§
Develop increasingly sophisticated information-based analytics and decision tools that deliver enhanced value
to professional and business customers across market segments
§
Primary focus on organic growth, supported by targeted acquisitions
Better customer outcomes
|
Higher growth profile
|
Improving returns
|
Positive impact on society
Risk
§
Sustain strong long-
term growth profile
Scientific, Technical & Medical
§
Continue on improved
growth trajectory
Legal
§
Continue on improved
growth trajectory
Strategy
Growth objectives
Outcomes
Exhibitions
§
Capture growth
opportunity from
reopening and digital
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
2022
2018
2020
2021
2019
2022
2018
2020
2021
2019
2022
2018
2020
2021
2019
2022
2018
2020
2021
2019
2022
2018
2020
2021
2019
2022
2018
2020
2021
2019
+4%
+4%
+6%
+5%
+7%
+7%
13.2%
13.6%
96%
96%
+7%
+9%
-15%
-9%
-18%
10.8%
97%
+3%
Percentages represent underlying growth
Percentages represent underlying growth
Percentages represent constant currency growth
Percentages represent growth
£bn
£bn
Pence
15%
120%
10
10
120
0%
0
0
0
+17%
+7%
+9%
+13%
Pence
120
0
0%
11.9%
12.5%
101%
+15%
101%
+6%
+10%
+10%
Revenue
R
eturn on invested capital
Adjusted operating profit
Adjusted cash flow conversion
Adjusted earnings per share
Dividend per share
6
RELX
Annual Report 2022 | Overview
Key performance indicators
RELX’s key performance indicators (KPIs) track progress against long term priorities. At the group level, given the diverse nature of our end
markets, we look at the continued migration of the business towards electronic delivery, the increasing introduction of electronic decision
tools, group level financial metrics, and corporate responsibility and sustainability metrics. The executive directors’ remuneration policy
includes measures linked to financial and corporate responsibility KPIs and may also include other non-financial metrics (see pages 121 to
142 for details). In addition, we track KPIs within each market segment, at the product level, relevant to the performance of the specific
business areas. Significant group financial and corporate responsibility KPIs are set out below. Additional corporate responsibility and
sustainability performance metrics and targets are set out on pages 28 to 80 in the Corporate Responsibility section.
Financial KPIs
2022
2018
2020
2021
2019
2022
2018
2020
2021
2019
2022
2018
2020
2021
2019
3,082
3,202
83
78
59
3,457
Percentage of women managers
Total number of supplier code of
conduct signatories
Scope 1 + Scope 2 (location-based) emissions
tCO
2
e 1,000s
100%
5,000
100
0%
0
0
50
44%
42%
42%
42%
44%
3,670
4,467
42
People
Socially responsible suppliers
Emissions
Corporate responsibility KPIs
Revenue by format
Print
Face-to-face
Electronic
2001
2000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2018
2017
22%
22%
28%
30%
32%
35%
37%
48%
50%
59%
61%
63%
64%
66%
66%
70%
74%
74%
14%
14%
12%
12%
12%
13%
12%
15%
17%
14%
14%
15%
15%
15%
16%
15%
15%
64%
64%
60%
58%
56%
52%
51%
37%
33%
27%
25%
22%
21%
19%
18%
15%
11%
16%
10%
2021
2022
2020
2019
75%
16%
9%
86%
7%
7%
83%
11%
6%
87%
5%
8%
72%
15%
13%
Scientific, Technical
& Medical
Risk
Legal
Exhibitions
Pro forma last 12-month revenues for December 2022 portfolio (adjusted for acquisitions and disposals in year)
Business services
Insurance
Specialised industry data services
Government
Academic & government primary research
Corporate primary research
Databases, tools & electronic reference
STM print
Law firms &
corporate legal
Government & academic
News & business
Legal print
Exhibitions
11%
Risk
34%
Legal
21%
STM
34%
7
RELX
Annual Report 2022 | RELX business overview
Market segments
RELX is a global provider of information-based analytics and decision tools for professional and business customers. RELX serves
customers in more than 180 countries and has offices in about 40 countries. It employs more than 35,000 people over 40% of whom
are in North America.
RELX revenue by segment
Financial summary by market segment
Market
position
2022
revenue
£m
Change
underlying
2022
adjusted
operating
profit
£m
Change
underlying
Risk
provides customers with information-based analytics
and decision tools that combine public and industry-specific
content with advanced technology and algorithms to assist
them in evaluating and predicting risk and enhancing
operational efficiency
Key verticals #1
2,909
+8%
1,078
+8%
Scientific, Technical & Medical
provides information and
analytics that help institutions and professionals progress
science, advance healthcare and improve performance
Global #1
2,909
+4%
1,100
+5%
Legal
provides legal, regulatory and business information
and analytics that help customers increase their productivity,
improve decision-making and achieve better outcomes
US #2
Outside US #1
or # 2
1,782
+5%
372
+8%
Exhibitions
combines industry expertise with data and digital
tools to help customers connect digitally and face-to-face, learn
about markets, source products and complete transactions
Global #2
953
+64%
162
nm*
*The change in underlying adjusted operating profit growth is not meaningful (nm) for Exhibitions.
RELX uses adjusted and underlying figures as additional performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets and other
items related to acquisitions and disposals, and the associated deferred tax movements. Reconciliations between the reported and adjusted figures are set out on pages 216 to
224. Underlying growth rates are calculated at constant currencies, excluding the results of acquisitions until 12 months after purchase, and excluding the results of disposals
and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling. Constant currency growth rates are based on 2021 full-year average and hedge
exchange rates.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
8
RELX
Annual Report 2022 | Overview
Technology at RELX involves creating actionable insights from big data – large volumes
of data in different formats being ingested at high speeds.
We take this high-quality data from thousands of sources in
varying formats – both structured and unstructured. We then
extract the data points from the content, link the data points and
enrich them to make it analysable. Finally, we apply advanced
statistics and algorithms, such as machine learning and natural
language processing, to provide professional customers with
the actionable insights they need to do their jobs. That could be a
university benchmarking its performance; a doctor deciding the
best way to treat a patient; a litigator assessing whether to take
a case to court; a retailer deciding if a transaction is genuine; or
an insurance underwriter assessing the likelihood of a claim.
Technology is a key enabler at RELX and we leverage our
resources, capabilities and infrastructure across the
organisation. We are continually building new products and
data and technology platforms, re-using approaches and
technologies across the company to create platforms that are
reliable, scalable and secure. Even though we serve different
segments with different content sets, the nature of the
problems solved and the way we apply technology has
commonalities across the company. We also leverage
technology to improve operational efficiencies.
Around 10,000 technologists, over half of whom are software engineers,
work at RELX. Annually, the company spends $1.6bn on technology.
The combination of our rich data sets, technology infrastructure and
knowledge of how to use next generation innovation allow us to create
effective solutions for customers.
Harnessing technology across RELX
DELIVERING TO CUSTOMERS IN SINGLE POINT OF EXECUTION
§
Hundreds of thousands of sources
§
Billions of device and asset
identities
§
Hundreds of millions of records
added daily
§
Public
records
§
Contributory
§
Licensed
§
Proprietary
§
Grid computing with low-cost servers
§
Linking algorithms that generate high precision and recall
§
Machine learning algorithms to cluster, link and learn from
the data
§
High speed data ingestion, recall, and processing
§
Rapid development cycles
§
Patented algorithms
§
Predictive modeling
§
Machine learning
and artificial
intelligence
§
Modular product
suites
§
Flexible delivery
platforms
Unstructured and structured content
Big data platforms
Analysis
applications
Customer single
point of execution
Batch
services
Real-time
API services
Visualisation
integration
Profile & Clean
Standardise
Relate &
Analyse
Decreasing content volume
Increasing content quality
Data
Sources
CASE STUDY
CIRIUM
Calculating flight emissions with precision using Cirium from Risk
9
RELX
Annual Report 2022 | RELX business overview
Virgin Atlantic operates one of the youngest
and most fuel-efficient fleets across the
Atlantic. Accurate measuring, monitoring,
and forecasting of CO
2
emissions is critical as
we target and monitor progress to Net Zero
2050, allowing us to better understand our
environmental impact. Importantly, it also
provides a tool to empower our customers
to track and choose airlines with the lowest
carbon footprint. Cirium is leading the way
in this field, building data and forecasting
capabilities that are the most accurate we
have seen to date, as verified against our
own historical fuel burn and emissions data.
Measuring flight emissions is straightforward: multiply fuel
consumed by 3.16. The number is a constant representing the
amount of CO
2
produced by burning a tonne of aviation fuel.
The problem is fuel consumption is considered sensitive
information and not disclosed by airlines. To overcome the
issue, the UK’s Department for Environment, Food and Rural
Affairs (DEFRA) devised a methodology to estimate emissions
based on distance travelled. This has become the global
standard for companies wanting to measure their emissions
from business travel. Unfortunately, it is not precise. There
are many other factors that affect emissions.
Cirium has developed a new methodology based on fuel-burn
rather than distance-travelled. It factors in an array of
variables, including actual flight time (more relevant than
distance in determining how much fuel was used), aircraft
model, aircraft age, engine type, number of seats, passenger
load, cargo load, weather, taxi time – even how long a plane idles
on the runway or circles in the air. This enables Cirium clients to
view the emissions by operator, aircraft type or geographical
region and on a historical, or predictive basis, solving a variety
of use cases. The emissions data can also be merged with
passenger booking information to provide companies with
insights into their own carbon footprint associated with
business travel.
The level of precision and accuracy of Cirium’s CO
2
exceeds
estimates generally available today. American Airlines and
Virgin Atlantic commend the accuracy of Cirium’s fuel burn
estimates in pre-market evaluations.
To reduce our emissions and reach Net Zero
by 2050, we’re taking action to run a more
fuel-efficient operation with more
fuel-efficient aircraft powered increasingly
by low-carbon fuel. And we’re holding
ourselves accountable by becoming the
first airline in the world with a 2035 target
validated by the Science Based Targets
initiative. Reducing aviation’s emissions
will require partnership among the airlines,
our suppliers and our customers – and it’s
important to build those partnerships on
sound emissions data and calculations.
Cirium brings deep aviation expertise to
the table on this important topic, and the
approach they’ve taken considers numerous
variables of an aircraft and its operations.
HOLLY BOYD-BOLAND
JILL BLICKSTEIN
Vice President, Corporate
Development at Virgin Atlantic
Head of ESG,
at American Airlines
We’re taking a data-driven approach to emissions
Working with airlines, manufacturers and industry organisations
on a more accurate approach
1
Physical Aircraft
Variation of types,
engines and other
modifications to
improve emissions
2
Flight Operations
Actual flight time is
far more relevant
than distance in
determining fuel burn
3
Seat Dimension
Seat configurations
and dimensions for the
same aircraft type can
vary greatly by airline
Flight Weight Estimation
+
Flight Operations
+
Fuel Model
Fuel Burn
+
Carbon
Allocation
Carbon
Per Seat
1.
Aircraft Weight
Estimation
4.
Carbon
Allocation
2.
Flight
Operations
3.
Fuel
Model
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
10
10
RELX
Annual Report 2022
Market
segments
In this section
12
Risk
16
Scientific, Technical & Medical
20
Legal
24
Exhibitions
11
11
RELX
Annual Report 2022
Market segments
Overview
Corporate Responsibility
Financial review
Governance
Financial statements and
other information
12
RELX
Annual Report 2022 | Market segments
Business overview
Risk provides customers with information-based analytics and
decision tools that combine public and industry-specific content
with advanced technology and algorithms to assist them in
evaluating and predicting risk and enhancing operational
efficiency.
LexisNexis Risk Solutions, headquartered in Alpharetta, Georgia,
has principal operations in California, Florida, Illinois, New York
and Ohio in North America as well as London and Paris in Europe,
Sāo Paulo in Latin America and Beijing and Singapore in Asia
Pacific. It has 10,800 employees and serves customers in more
than 180 countries.
Revenues for the year ended 31 December 2022 were £2,909m,
compared with £2,474m in 2021 and £2,417m in 2020. In 2022, 80%
of revenue came from North America, 13% from Europe and the
remaining 7% from the rest of the world. Subscription revenue
represented 39% of the total and transactional revenues,
including long term contracts with volumetric elements,
represented 61%.
LexisNexis Risk Solutions comprises the following market-facing
industry/sector groups: Business Services, Insurance Solutions,
Specialised Industry Data Services (including energy and
chemicals, aviation, agriculture and human resources) and
Government Solutions.
Business Services
, representing around 45% of revenue, enables
global financial transparency and inclusion by providing holistic
and actionable insights for all risk and compliance segments.
We help customers address some of the greatest challenges
facing businesses today, including identifying fraud, cybercrime,
bribery and corruption, human trafficking, economic sanctions,
global terrorism and abusive practices. The combination of our
proprietary data sets, public records, contributory data, licenced
data and advanced analytics, powered by Machine Learning (ML)
and other Artificial Intelligence (AI) technologies, deliver
actionable insights that improve decisions and operations
efficiency for customers globally.
The primary driver of the Business Services growth strategy
is to increase penetration in our current markets across our
customers’ workflows and through international expansion.
In 2022, Business Services added functionality to its global fraud
and identity portfolio through the acquisition of BehavioSec,
a behavioural biometrics technology provider; we released
LexisNexis Decision Trust to decrease fraud while promoting
financial inclusion and also extended consumer verification
capabilities into Brazil by launching LexisNexis
Identity
Verification Solution; and launched LexisNexis FraudPoint UK,
a machine learning fraud tool developed specifically for the
UK market.
Business Services launched LexisNexis RiskView UK, a market
scoring solution using alternative data, and LexisNexis RiskView
6.0 Attributes to give US customers expanded consumer insights
for an enhanced perspective on credit risk. Business Services
also expanded its financial crime compliance solution portfolio
globally with the launch LexisNexis RiskNarrative, a cloud-based
orchestration platform that detects, prevents and reports
financial crime. In 2022, LexisNexis Risk Solutions completed a
strategic investment in Quod, the Brazilian provider of credit
risk analysis solutions that Business Services helped establish
beginning in 2017, to align our global focus on financial inclusion
and strengthen strategic ties with Quod.
Insurance Solutions
, representing just under 40% of revenue,
provides comprehensive data, analytics and decision tools for
personal auto and home, commercial and life insurance carriers
to improve critical aspects of their business. Information solutions
help insurers assess risks, improve customer experience,
increase efficiency in pricing and underwriting insurance policies,
and settle claims in the US and other key markets. Industry-
leading products provide real-time information on policy holders,
identify insurance coverage details and lapses in coverage, and
give insurers access to vehicle and behaviour-centric data,
standardised across automakers for the underwriting and claims
processes. Innovative decision tools are delivered through a
single point of access within an insurer’s infrastructure.
Insurance Solutions drive more consistency and efficiency in
claims, providing data and decisions for challenging total losses at
first notice of loss and throughout the claim life cycle. Life insurers
use predictive models, public and motor vehicle records to better
understand mortality risk and make life insurance more
accessible. In 2022, Insurance Solutions acquired Flyreel, a
property insurtech that uses AI and ML to enable self-service
property inspections. This innovation provides additional visibility
into a property’s interior and exterior to improve new business or
renewal underwriting and claims processes and is an example of
continued focus on enhanced risk assessment.
Specialised Industry Data Services
, representing just over 10%
of revenue, provides critical business intelligence, data, software
and analytics solutions to professionals in many of the world’s
largest industries. Our brands include: ICIS, an independent
source of data and intelligence for the global chemical and energy
markets; Cirium, the aviation analytics company; XpertHR, a
compliance, benchmarking and pay-equity data and analytics
business driving global HR topics; and Nextens, a provider of
workflow solutions, content and analytics for tax professionals.
Risk
We combine data and analytics with deep industry expertise to help customers
make better decisions and manage risk. We help detect and prevent online
fraud and money laundering and deliver insight to insurance companies.
We provide digital tools that help industries from aviation to banking improve
their operations.
13
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Annual Report 2022 | Risk
Government Solutions
, representing just over 5% of revenue,
has helped US agencies, especially during the pandemic, shift
from identity verification to authentication. Front-end identity
authentication is central to how the government dispenses
hundreds of billions of dollars in entitlements, stimulus,
benefits and contracts to people and businesses.
Our solution synthesises thousands of data sources and billions
of relationships into modernised interfaces, providing agencies
immediate access to identity and authentication analytics. It
creates near-frictionless identity verification and authentication
for everything from unemployment insurance claims and remote
government workforce access to matching of patient data,
providing a snapshot in time for public health researchers.
Market opportunities
We operate in markets with strong long-term growth in demand
for high-quality advanced analytics based on industry information
and insight, including: insurance underwriting transactions;
insurance acquisition, retention and claims handling; tax and
public benefits fraud; financial crime compliance; business risk;
fraud and identity solutions; due diligence requirements
surrounding customer enrolment; security and privacy
considerations; and data and advanced analytics for the banking,
energy and chemicals, aviation and human resources sectors.
Expansion of mobile and digital use cases continue to drive
opportunity for Business Services solutions that incorporate
global data and drive efficiency in risk decision-making. As
criminals continuously adjust attack vectors targeting financial
transactions, organisations are utilising our solutions to evolve
their fraud detection and prevention, financial crime and
compliance, and consumer and business credit programmes.
Mounting costs from fraud schemes, anti-money laundering
programmes, sanctions compliance, anti-bribery and corruption
enforcement, consumer and business credit expansion, and
heightened regulatory scrutiny also provide growth opportunities.
We are seeing new use cases for our solutions continue to emerge
for corporations within the gaming and buy now, pay later segments.
In Insurance, growth is supported by customer experience
advances in the auto, home, commercial and life insurance
markets and the increasing adoption by insurance carriers of
more sophisticated data and analytics in the prospecting,
underwriting and claims evaluation processes, to assess risk,
increase competitiveness and improve operating cost efficiency.
Transactional activity is driven by growth in insurance quoting
and policy switching, as consumers seek better policy terms. This
activity is stimulated by competition among insurance companies,
increased loss ratios and consumer interest in insurance internet
quoting and policy binding. We see opportunities across the
insurance continuum using data and analytics to play a critical role
in assisting the insurer and consumer decision-making process
and make it easier for consumers and businesses to transact
with insurers throughout the policy life cycle.
We deliver solutions that bridge insurers and automakers,
utilising connectivity and data from connected cars to insert
vehicle data into insurer workflows and empower consumers
with a deeper understanding of driving behaviour. Our deepening
relationships with automakers reflect the need to improve and
digitise the consumer experience through ownership
management and connected services solutions, while creating
efficiencies within automakers’ operations.
In Specialised Industry Data Services, growth in the global energy
and chemicals markets is led by changing trade patterns, a drive
to embrace sustainability and demand for more sophisticated
supply chain solutions. Aviation is recovering, with businesses
such as airlines focusing on digital transformation, new market
opportunities are emerging, and the industry is focusing on CO
2
emissions data and ESG reporting. An increasing need for
employers to use data and analytics to attract, retain and develop
a diverse workforce is accelerating growth in HR management.
With over 7,500 federal, state and local agencies using our
services, Government Solutions continues its mission of
preventing fraud, fighting crime, reducing risk, and providing
citizens with immediate, equitable access to digital-based
services. The $2,000bn CARES Act increased the demand for
online access to government services and highlighted the need for
robust fraud prevention tools as criminals continued to
compromise these systems, leveraging both online and mobile
access technologies. This problem has proven to be pronounced
and sophisticated as government investigations into fraud have
increased. Data integrity and fraud prevention for businesses and
people plays an increasingly important role in accessing
government services and receiving entitlements as agencies
continue to adopt private sector technologies. The level and timing
of demand in this market is influenced by government funding and
revenue considerations.
Strategic priorities
Our strategic goal is to help customers make better decisions by
offering greater insight into the risks and opportunities associated
with individuals, businesses, devices, transactions and
regulations. We assist customers by providing high quality data
and decision tools to help them understand their markets,
manage risks efficiently and control cost effectively. We enable
this by focusing on: delivering innovative products; expanding the
range of data and analytics solutions across adjacent markets;
addressing international opportunities to meet local needs;
continuing to strengthen our content, technology and analytical
capabilities; and investing in sales and marketing.
LexisNexis Risk Solutions has been developing AI and ML
techniques for a number of years to generate actionable insights
that help our customers make accurate, better informed and
more timely decisions. The successful deployment of AI and ML
techniques starts with a deep understanding of customer needs
and leverages the breadth and depth of our data sets, coupled with
the expertise and domain knowledge to discern which AI/ML
algorithm to use, in what context, to solve our customers’ business
problems most effectively.
Business model, distribution channels and competition
We sell our products direct-to-client, with pricing predominantly
on a transactional basis in the Business Services and Insurance
segments and largely on a subscription basis in Specialised
Industry Data Services and Government. We also utilise a
robust partner distribution channel.
Principal competitors in the Business Services and Government
Solutions segments include the major credit bureaus, which in
many cases address various capabilities within each solution
offering. In the insurance sector, Verisk sells data and analytics
solutions to insurance carriers but largely addresses different
activities to ours.
Specialised Industry Data Services competes with a number
of information providers on a service and title-by-title basis
including S&P Global Platts, Thomson Reuters and IHS Markit
as well as a number of niche and privately owned competitors.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
14
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Annual Report 2022 | Market segments
Strong fundamentals driving underlying revenue growth
Underlying revenue growth remained strong at +8%.
Underlying adjusted operating profit growth was slightly ahead
of underlying revenue growth, leading to a modest improvement
in adjusted operating margin, with minor dilution from recent
acquisitions offset by small positive currency movements.
In Business Services, which represents around 45% of
divisional revenue, strong growth was driven by Financial Crime
& Compliance and fraud prevention analytics and decision tools,
with digital identity solutions growing particularly strongly.
Business Risk & Alternative Credit also grew strongly.
In Insurance, which represents just under 40% of divisional
revenue, momentum improved over the course of the year.
In auto insurance, driving patterns and claims improved from
the beginning of the year, whilst other market factors, including
shopping activity, saw improving trends during the second half.
New sales continued to grow strongly.
Specialised Industry Data Services, which represents just
over 10% of divisional revenue, delivered strong growth,
with improved growth trends across segments. Commodity
intelligence was particularly strong and aviation returned
to historical growth trends.
In Government, strong growth was driven by the continued
development and roll-out of analytics and decision tools.
2023 outlook
We expect another year of strong underlying revenue growth,
in line with historical trends, with underlying adjusted operating
profit growth broadly matching underlying revenue growth.
2022 financial performance
2021
£m
2022
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
2,474
2,909
+8%
0%
+10%
+18%
Adjusted operating profit
915
1,078
+8%
-1%
+11%
+18%
£2,909m
Revenue
2022
2,909
2,474
Underlying growth
+8%
2021
£1,078m
Adjusted operating profit
2022
1,078
915
Underlying growth
+8%
2021
Electronic
99%
Face-to-face & print
Rest of world
7%
Europe
13%
North
America
80%
Transactional
61%*
Subscription
39%
£2,909m
£2,909m
£2,909m
Revenue by format
Revenue by geographical market
Revenue by type
*c90% under long term contracts with volumetric elements
1%
15
RELX
Annual Report 2022 | Risk
Financial Crime Compliance Portfolio
Fraud and Identity Management Portfolio
Integrated financial crime compliance
offerings deliver comprehensive solutions
for addressing financial crime risk.
Digital, physical, device and behavioral risk signals
to help organisations better assess consumers,
prevent fraudulent transactions, improve
operational efficiencies and protect accounts
while minimising friction for trusted users.
LexisNexis Telematics OnDemand
LexisNexis
Claims Compass
A solution that seamlessly integrates
telematics-based driving behaviour data from
connected vehicles and other telematics
service providers directly into insurer rating
and underwriting workflows for use at point
of quote and renewal.
Data analytics platform delivering LexisNexis
Claims Datafill, VINsights, Claims Clarity
and LexisNexis Police Records solutions to
improve the claims process from first notice
of loss, triage, investigation and resolution,
through recovery.
For more information
visit relx.com
§
We do business with 92% of the Fortune 100; 78% of the
Fortune 500;
nine of the world’s top ten banks and 20 of the
world’s top 25
insurers
§
The LexisNexis Digital Identity Network analyses more than
250m transactions daily and more than 93bn transactions
annually
§
More than 179,000 websites and mobile applications around
the world implement the LexisNexis Digital Identity Network
§
Our solutions detected 443m human initiated attacks and
1.7bn automated bot attacks for customers in H1 2022
§
86% of new US auto insurance policies issued to consumers
in 2022
benefited from our products
§
More than 7,500 federal, state and local government
agencies use our solutions to prevent fraud and allow
citizens faster access to digital-based services, maintain
program integrity, reduce risk and fight crime
§
ICIS partners with 90% of the world’s top 100 chemical
companies and its recycling supply tracker profiles over
2,700 recycling plants globally, covering mechanical and
chemical technologies, that support industry as it strives for
plastics circularity as part of the sustainability agenda
§
Cirium serves the majority of the top 100 airline groups,
representing over 90% of the world’s 2022 airline passenger
traffic, and four out of five of the Big Five Tech Firms.
It tracks 99% of flights globally in real time
CASE STUDY
LexisNexis Telematics OnDemand
Driving a next-generation business
strategy
Automakers have traditionally been in the business of building
cars, but today they have the unique opportunity to evolve
into the emerging digital space by making the most of data.
Many are partnering with LexisNexis Risk Solutions, which
understands that consumers are becoming increasingly
aware of the advantage of sharing their driving and vehicle
data for insurance discounts.
Mitsubishi Motors is using LexisNexis Risk Solutions as
a centrepiece of a digital strategy for attracting, engaging
and converting consumers to its lineup of cars. “We’re a
challenger brand, and we want to make sure that we’re
delivering,” says Bryan Arnett, director of digital product
strategy at Mitsubishi Motors R&D of America. “We are
seeking to provide digital solutions that offer immediate,
real-world benefit to our customers.”
Using LexisNexis Risk Solutions as its core, the company
developed a Mitsubishi RoadAssist+ app. The smartphone app
collects driving data and sends it to the LexisNexis Telematics
Exchange where it is analysed and returned to give drivers
feedback on driving behaviour. In the exchange, the data is also
normalised and incorporated into insurance solutions such as
LexisNexis Telematics OnDemand that help insurers with risk
assessment, helping to provide drivers ways to save money on
purchasing or maintaining car insurance. The app also provides
feedback to drivers to help them improve their driving and
understand risky behaviours such as speeding, hard braking,
and hard acceleration.
$1,500+
Over $1,500 saving for young driver using
Connected Car Telematics driving monitor
“Our customer engagement is phenomenal and has surpassed
expectations,” said Arnett. “It’s reducing the cost of ownership
for our customers and giving people a way to save money
on car insurance, particularly in areas where rates are high.
“I think that with a partner like LexisNexis Risk Solutions, we
can use the connected car to, for the first time, hear the voice
of the consumer. And as a manufacturer, we can do something
meaningful with that voice. We can deliver something that they
want and need,” Arnett said.
Young driver Katie Brewer-Calvert recently purchased her
own policy in the state of Georgia and says her safer driving
has translated into savings: “I’ve had my driving monitor for
15 months, and I’ve already saved more than $1,500.”
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
16
RELX
Annual Report 2022 | Market segments
Business overview
Scientific, Technical & Medical helps researchers and healthcare
professionals advance science and improve health outcomes by
combining quality information and data sets with analytical tools
to facilitate insights and critical decision-making.
Elsevier is headquartered in Amsterdam, with principal sites in
Boston, New York, Philadelphia, St. Louis and Berkeley in North
America; London, Oxford, Frankfurt, Munich, Madrid and Paris
in Europe; Beijing, Chennai, Delhi, Singapore and Tokyo in Asia
Pacific, and Rio de Janeiro in South America. It has 9,500
employees with customers in over 170 countries.
Revenues for the year ended 31 December 2022 were £2,909m,
compared with £2,649m in 2021 and £2,692m in 2020. In 2022, 48%
of revenue came from North America, 21% from Europe and the
remaining 31% from the rest of the world. Subscription revenue
represented 74% of total revenue and transactional revenues
represented 26%.
Elsevier’s customers are scientists, research leaders, librarians,
medical researchers, doctors, nurses, allied health professionals
and students, as well as hospitals, academic and research
institutions, health insurers, managed healthcare organisations,
research-intensive corporations, funders, and governments.
Elsevier’s services across Academic & Government, Corporate
and Health markets focus on: Databases & Tools including
e-Reference content; Primary Research; and Print products.
In each of these markets, our objective is to be a trusted partner
to the customers we serve and be known for quality.
Databases & Tools and electronic reference
accounts for
close to 40% of revenues. Elsevier offers tools for Academic
& Government, Corporate and Health organisations helping
them to solve critical and complex problems. Solutions include
Scopus, SciVal, Pure, Interfolio, ClinicalKey, ClinicalPath, Reaxys,
SciBite, HESI, Sherpath, Shadow Health, Complete Anatomy,
Osmosis and Gravitas.
In the research space, Elsevier’s intelligence portfolio of
products combines quality structured data, advanced data
science, an array of indicators and clear visualisations to enable
researchers, university management, policy-makers, funders
and corporate research and development (R&D) executives to
generate insights, set and implement research strategies and
make decisions with confidence.
From curated and connected data in solutions such as Scopus, and
artificial intelligence technology in SciVal, to the interoperability
driven by Application Programming Interface technologies (APIs),
the research intelligence portfolio integrates with and enhances
the systems institutions rely on. In 2022, Elsevier acquired
Interfolio, a provider of faculty information solutions for higher
education, expanding offerings for academic institutions.
For corporates, SciBite tools and the Data-as-a-Service
proposition follow Elsevier’s ontology-led approach and support
corporate R&D customers in extracting scientific insights from
vast amounts of unstructured text and databases.
In 2022, Reaxys, Elsevier’s chemistry research platform
enhanced its market leading position in chemistry patent coverage
by extending its collaboration with LexisNexis PatentSight. Reaxys
won the Data Engineering Excellence Award at the Data Science
Excellence Awards, with the judges highlighting Reaxys Content
Catalyst, and AI-powered, automated content enrichment
production pipeline.
In health, Elsevier’s clinical solutions include digital solutions for
nurses, care teams and patients. Its clinical reference platform,
ClinicalKey, is designed to help doctors, nurses and students find
clinically relevant answers through a range of trusted content
across specialties. This includes Elsevier’s collection of medical
reference content, including over 1,400 clinical overviews, over
5.8m images and over 80,000 medical videos in one integrated site.
In 2022, we introduced ClinicalKey Now in India.
ClinicalPath provides pathways for cancer treatment, disease
screening, with personalised, evidence-based oncology guidance
for healthcare workers at the point of care.
Elsevier also serves students of medicine, nursing, and allied
health professions. Sherpath, an adaptive teaching and learning
solution, provides personalised learning paths at over 600
institutions, supporting more than 200,000 course enrolments,
while ClinicalKey Student is used in over 310 medical schools
globally. In 2022 Complete Anatomy, our 3D anatomy platform,
launched the world’s most advanced full female anatomy model
and the first model with diverse skin tones and facial features to
better represent populations worldwide. Shadow Health's Digital
Clinical Experiences allow nursing students to perfect clinical
reasoning skills using Digital Standardized Patients, including
modules for LGBTQI patients.
In commercial healthcare, identity, claims and provider data
is combined with patient information to assist healthcare
providers, pharmacies and insurers in delivering improved
health outcomes, ensuring accurate and complete provider
data and regulatory compliance.
In electronic reference, Elsevier provides authoritative
reference content to scientific, technical and medical
professionals. Flagship titles include Gray’s Anatomy, Nelson’s
Pediatrics and Netter’s Atlas of Human Anatomy. 2022 saw the
expansion of the new digital and print-on-demand MedReprints
service, responding to demand from pharmaceutical and
healthcare companies.
Scientific, Technical & Medical
We help researchers share knowledge, collaborate, find funding opportunities
and make discoveries. We deliver analysis and insights that help universities,
research institutions, governments and funders achieve their strategic goals.
We help doctors and nurses improve the lives of patients, providing insights
and tools to find the right clinical answers.
17
RELX
Annual Report 2022 | Scientific, Technical & Medical
Primary Research
accounts for around half of revenues.
Elsevier helps researchers validate, improve and disseminate
their scientific findings through its more than 2,800 journals,
enhancing the record of scientific knowledge by applying high
standards of quality and ensuring trusted research can be
accessed, shared and built upon. In collaboration with 32,000
editors and almost 1.4m reviewers worldwide, many Elsevier
journals are the foremost publications in their field, including
flagship families of journals like Cell Press and The Lancet,
now the number one journal globally in the general and internal
medicine category, measured by citations. Research content is
distributed and accessed via ScienceDirect, the world’s largest
platform dedicated to peer-reviewed primary scientific and
medical research.
In 2022, Elsevier received almost 2.7m article submissions,
publishing over 600,000 new research articles following peer
review, with the global scientific community accessing over
1.8bn articles across its journal platforms. The latest available
long-term comparison with the market showed that Elsevier
journal articles accounted for around 18% of global research
output and 28% of citations, demonstrating Elsevier’s
commitment to quality significantly ahead of the industry
average. Elsevier published over 150,000 open access articles,
a year-on-year increase of over 26%, and launched 88 new
journals the majority of which were Gold open access, growing
the Elsevier portfolio to over 700 Gold open access journals.
Elsevier has invested in other research solutions, such as SSRN
an open access online preprint community where researchers
post early-stage research, Scopus Author Profiles showing
preprints to provide an early view into a researcher’s focus areas
and Digital Commons helping academic libraries showcase and
share their institutions’ research via institutional repositories
for greatest impact.
Print
accounted for 11% of Elsevier revenues serving demand
for primary research and reference content in print format and
providing some print-based commercial marketing services
in pharma & life science promotion.
Market opportunities
Scientific, technical and medical information markets have
positive long-term growth characteristics. Investment in R&D
is critical for nations and corporations to create competitive
advantage, drive innovation, economic growth and solve societal
issues such as climate change. This leads to long-term growth in
R&D spending and sustained increases in researchers worldwide.
As people live longer and aim to live healthier lives, health
expenditure and the number of physicians and nurses also
continues to grow strongly.
As a significant proportion of scientific research and healthcare
is funded directly or indirectly by governments, spending is
influenced by policy and budgetary considerations. Commitments
to research and health provision remain high, even in difficult
budgetary environments.
Strategic priorities
Elsevier’s strategic priorities are to help our customers solve
critical and complex problems, by expanding content quality,
coverage and utility; combining content with analytics and
technology to build integrated solutions and decision tools that
utilise advanced Machine Learning (ML) and Artificial Intelligence
(AI) to improve productivity and outcomes, and enable insights
underpinning critical decisions, benchmarking and evaluation.
In Databases & Tools, Elsevier is applying advanced linking
capabilities to our vast research information, patent, research
grant, drug information and medical claims data sets to develop
products that help our academic & government, corporate and
health customers make the right decisions based on their needs.
For example, within health, Elsevier is developing clinical decision
support applications using cognitive technologies and large image
and text content repositories, leveraging its proprietary health
graph. These applications will enhance delivery of content in care,
helping health professionals make more accurate diagnoses,
ensure appropriate care delivery and save lives.
In Primary Research, Elsevier’s priority is to support
researchers by finding a home for every sound science article
submitted, and providing choice in payment model, quality tier,
and scientific discipline. We aim to deliver above industry average
journal and article quality, at below average article download cost,
leveraging our scale and expertise. Elsevier works with
customers to help them reach their research goals through
excellence in content, service and value. Elsevier is building on
its premium brands, enhancing quality through peer review,
and increasing article volume through new journal launches,
the expansion of open access journals and growth from emerging
markets; and broadening the range and quality of insights
across research solutions.
We continue to improve customer experience while driving
operational efficiency and effectiveness; and collaborate to
advance open science, inclusive research and inclusive health and
support the UN SDGs, through our business and the Elsevier
Foundation. In 2022, Elsevier published its Inclusion and Diversity
Advisory Board Report; won several awards for company culture;
and won the Customer Centric Culture category at the European
Customer Centricity Awards. We also published our 2022 Climate
Action report outlining our journey to a more sustainable future.
Business model, distribution channels and competition
In Databases & Tools, solutions like Scopus, ClinicalKey and
Reaxys, are generally sold direct to institutional, healthcare and
corporate customers through a global sales force. Reference and
educational content is sold directly to institutions and individuals
and accessed on Elsevier platforms.
In Primary Research, science and medical research is
distributed via the ScienceDirect platform, supported by two
separate payment models to suit author preferences: pay-to-read
articles funded by payments for reading made by individuals or
institutions; and pay to publish (commonly known as open
access) funded by payments for publishing, made by authors,
their institution or funding bodies. Elsevier offers a range of pay
to read and pay to publish options, both subscription-based and
transactional, to fit the diverse needs of institutions, funders,
and researchers worldwide. As of 2022, Elsevier serves over
1,800 institutions worldwide with transformative deals that
support open access to research. Nearly all of Elsevier's over
2,800 journals enable open access publishing, with more than
700 dedicated author pays journals, the largest portfolio of open
access titles.
Elsevier is a founding and driving partner of Research4Life,
a United Nations initiative, providing free or low-cost access
to research for publicly funded institutions in the world’s
least resourced countries. Over 11,000 institutions in 125
countries participate.
Printed books are sold through retailers, wholesalers and
directly to users.
Competition within science and medical reference content is
generally on a title-by-title and product-by-product basis,
typically with learned society publishers and professional
information providers, such as Springer Nature, Clarivate and
Wolters Kluwer. Decision tools face similar competition, plus
software companies and customer home-grown solutions.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
18
RELX
Annual Report 2022 | Market segments
Further development of analytics continuing to drive
improved underlying revenue growth
Underlying revenue growth improved to +4%, driven by further
evolution of the business mix, with the higher growth segments
representing an increasing proportion of divisional revenue,
and electronic formats now representing around 90% of
overall revenue.
Underlying adjusted operating profit growth was +5%, slightly
ahead of underlying revenue growth, leading to unchanged
margins after minor dilution from recent acquisitions and
small negative currency movements.
Databases, Tools & Electronic Reference, and corporate
Primary Research, which together represent around 45% of
divisional revenue, delivered strong growth across research,
clinical, and commercial markets, driven by content
development and high value analytics and decision tools.
In Primary Research academic & government segments, which
also represent around 45% of divisional revenue, growth was
driven by higher volumes of articles submitted and published,
with pay-to-publish open access articles growing particularly
strongly, and by increasingly sophisticated analytics and
evolving technology platforms.
2023 outlook
We expect underlying revenue growth to remain above
historical trends, with underlying adjusted operating profit
growth slightly exceeding underlying revenue growth.
2022 financial performance
2021
£m
2022
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
2,649
2,909
+4%
0%
+6%
+10%
Adjusted operating profit
1,001
1,100
+5%
-1%
+6%
+10%
£2,909m
Revenue
2022
2,909
2,649
Underlying growth
+4%
2021
£1,100m
Adjusted operating profit
2022
1,100
1,001
Underlying growth
+5%
2021
Electronic
89%
Transactional
26%
Subscription
74%
£2,909m
£2,909m
£2,909m
Revenue by format
Revenue by geographical market
Revenue by type
Print
11%
Rest of
world
31%
Europe
21%
North
America
48
%
19
RELX
Annual Report 2022 | Scientific, Technical & Medical
The world’s largest platform dedicated
to peer-reviewed primary scientific and
medical research
Clinical knowledge solution helping healthcare
professionals and students find the most clinically
relevant answers through a wide breadth and
depth of trusted content across specialties
An innovative and comprehensive chemistry
research information system that supports
chemists and data scientists across the chemicals,
pharmaceutical and academic segments by
providing access to chemistry and bioactivity data
from journal literature and patents
The world’s most advanced 3D anatomy
platform, Complete Anatomy is revolutionising
how students, educators, health professionals
and patients understand and interact with
anatomy and in 2022 introduced the first full
female anatomical model
For more information
visit relx.com
§
We help ensure quality research accelerates progress for
society by organising the review, editing and dissemination
of around 18% of the world’s scientific articles
§
Elsevier’s over 2,800 journals published more than 600,000
articles in 2022, from almost 2.7m submitted
§
224 of 225 science and economics Nobel Prize winners since
2000 have published in an Elsevier journal
§
ScienceDirect, the world’s largest platform dedicated to peer-
reviewed primary scientific and medical research, hosts over
20m pieces of content from over 4,600 journals and over 45,000
e-books, and has over 18m monthly unique visitors. Its Ahref
ranking places it as one of the Top 200 platforms on the internet
§
SciVal is a web-based analytics solution that provides insights
into the research performance of over 22,000 academic,
industry and government research institutions
§
Scopus is an expertly curated abstract and citation database
with content from over 27,000 journals from more than
7,000 publishers to help researchers track and discover
global knowledge in all fields
§
ClinicalKey, the flagship clinical reference platform, is used
by doctors, nurses, medical students and educators at over
5,000 institutions in over 90 countries and territories
§
Reaxys, Elsevier’s chemistry research platform, utilises data
on 260m substances, 61m reactions, with 103m documents
and 37m patents
§
Sherpath, an adaptive teaching and learning solution,
provides personalised learning paths at over 600 institutions,
supporting more than 200,000 course enrolments
CASE STUDY
ELSEVIER
How Elsevier adds value to science
and researchers’ careers through
the publication process
Getting published in a scientific journal is never easy. But it’s
worth it:
the rigours of the review process lead to stronger
science; the journal’s dissemination ensures the findings
reach
the relevant audience; researchers’ networks are
strengthened; collaborations develop across geographies,
sectors and disciplines; and further funding can be secured.
Professor Robert Aldridge, professor of public health data
science at the Institute of Health Informatics at University College
London, recalls the bracing process involved in publishing a
paper in The Lancet, the number one journal globally in the
general and internal medicine category, measured by citations:
“I remember going into the office and meeting with Richard
Horton, editor-in-chief, and the peer reviewers for one paper.
It was brutal. They tore it to bits! We left the meeting feeling
despondent, but ultimately it really improved it and made it a lot
better. There’s no doubt it pushed us and got us thinking about
the topic in a different way.”
Researchers want to ensure their findings reach the right
audience and the decision-makers with power to change or
influence policy. Professor Aldridge’s past work on tuberculosis
and migration, published in The Lancet, had significant policy
implications on the issue of screening migrants arriving in
high-income countries from poor nations. Aldridge believes
The Lancet’s reach and reputation helped support the
dissemination and uptake of his findings.
In the competitive world of academia, publishing in an
Elsevier journal also helps career researchers build networks.
“I’m a postdoc and I think all postdocs have the same feeling:
we are under extreme pressure because we want to prove that we
are worthy as independent scientists,” says Liudmila Andreeva,
a structural immunologist and biochemist who published a paper
in Cell. "Because my paper was published in Cell, my network just
boomed, everybody saw my name and everybody saw my work.
That was very rewarding."
Elsevier journals also connect geographically disparate experts.
Networks and collaborations are key in research, with papers
frequently including multiple authors and institutions. Professor
Kei Sato, professor at the Institute of Medical Science in the
University of Tokyo, published ground-breaking research in Cell
Host & Microbe, sister journal of Cell, on how mutations in viral
genes influenced infectivity and immunity. Those papers helped
him to secure a $1m grant from the Japan Agency for Medical
Research and Development.
The research community visits ScienceDirect
1.3bn times each year, performs 600K searches
per day on ScienceDirect and accesses 1.8bn
articles across our journal platforms
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
20
RELX
Annual Report 2022 | Market segments
Business overview
Legal provides legal, regulatory, and business information and
analytics that help customers increase their productivity, improve
decision-making, and achieve better outcomes.
LexisNexis Legal & Professional is headquartered in New York
and has further principal operations in Dayton, Raleigh, and
Toronto in North America, London and Paris in Europe, and cities
in several other countries in Africa and Asia Pacific. It has 11,300
employees worldwide and serves customers in over
150 countries.
Revenues for the year ended 31 December 2022 were £1,782m,
compared with £1,587m in 2021 and £1,639m in 2020. In 2022,
68% of revenue came from North America, 20% from Europe,
and the remaining 12% from the rest of the world. Subscription
represented 77% of revenue and transactional revenues
represented 23%.
LexisNexis Legal & Professional is organised in market-facing
groups, focused on law firms & corporate legal, government &
academic, and news & business markets. Services are delivered
primarily in electronic format, with print formats available where
there is customer demand. Content and tools are tailored to the
specific geographic markets served, supported by global shared
services organisations providing platform and product
development, operational and distribution services, and other
support functions.
Law Firms & Corporate Legal
, representing over 60% of
revenue, provides legal professionals across law firms and
corporate legal departments with electronic reference, decision
tools, and analytics to help make better informed decisions in
the practice of law.
Standard products for legal research and analytics include
Lexis and Lexis+, which provide statutes and case law with
analysis and expert commentaries from secondary sources,
such as Matthew Bender. Lexis and Lexis+ include the leading
citation service, Shepard’s, which advises on the continuing
relevance of case law precedents.
Lexis+ was introduced in the US in 2020 and is a premium solution
that integrates previously standalone products including
research, guidance, news, analytics, and brief analysis while
delivering a step-change in visual design. In 2022, LexisNexis
further enhanced Lexis+ US, adding over 3m trial orders and
briefs, pleadings, and motions and launching Fact & Issue Finder,
which uses state-of-the-art technology to help litigators find
materials with speed and precision.
In 2022, LexisNexis launched Lexis+ in the UK and Canada.
Lexis+ UK offers over 250 leading practitioner texts, and unique
content such as Halsbury’s Law of England and Stair Memorial
Encyclopaedia, in addition to over 630,000 cases, with LexisNexis
being the only provider to carry The ICLR Official Law Reports,
The ICLR Weekly Law Reports and The All England Law Reports.
Lexis+ Canada offers the most complete collection of legal
information including legal research, practical guidance,
analytical tools, brief analysis, and bill tracking capabilities.
In 2022, LexisNexis continued to broaden the reach of its decision
tools and analytics. Lex Machina launched Appellate Analytics,
which provides analytics on the federal courts of appeals and adds
over 400,000 circuit court cases from all 13 federal circuits.
Intelligize launched Accounting Analytics, which enables users to
research the latest disclosure trends and surface peer language
as new topics and emerging standards are disclosed. LexisNexis
also launched its API Developer Portal, enabling customers to
connect LexisNexis data to local workflow activities.
LexisNexis also continued to expand legal news coverage with
Law360 in 2022, with deeper reporting across the US, Canada,
and UK including the launch of Real Estate Authority. It also
enhanced legal technology coverage with Pulse Legal Tech
and benchmarking with sector rankings such as Law360’s
Pulse Leaderboard.
LexisNexis continued to enrich core solutions across global
segments in 2022. In the UK, TolleyLibrary and TolleyGuidance
products in Tax were enhanced with new workflow features.
In France, LexisNexis expanded offerings in Lexis 360 Intelligence,
the integrated legal research, guidance, and analytics solution
launched in 2021, including an innovative partnership with French
fintech Harvest.
LexisNexis continued to enhance offerings in Practical Guidance,
the company’s ‘how to’ service (previously Lexis Practical
Advisor) that provides guidance on litigation and transactional
legal topics. Practical Guidance further expanded Market
Standards benchmarking and launched new Workflow
Extensions, including Automated Forms, and a Video Center
which offers a new format for guidance.
LexisNexis continued to develop Knowable, a Machine
Learning-enabled enterprise contracts intelligence platform.
Knowable’s legal text to data conversion processes are used
to create structured data, powering solutions such as Market
Standards. In the Intellectual Property (IP) analytics space,
LexisNexis acquired IPlytics, a leading IP market intelligence tool
that allows companies to understand the patent landscape around
modern technologies like WiFi, 5G, and USB that are driven by
Standard Essential Patents (SEPs).
LexisNexis expanded offerings in LexisNexis Regulatory
Compliance in 2022, with new modules including Sanctions and
Retail Banking in the US and Retail Energy in the Pacific. In China,
LexisNexis launched Compliance Intelligence, with analytics and
visualisations that support risk assessments.
Legal
We help lawyers win cases, manage their work more efficiently, serve their
clients better, and grow their practices. We assist corporations in better
understanding their markets and monitoring relevant news. We partner with
leading global associations and customers to help advance the Rule of Law
across the world.
21
RELX
Annual Report 2022 | Legal
In 2022, LexisNexis also launched Lexis Create across the UK and
Australia. Lexis Create is a Microsoft Word based tool that helps
lawyers draft efficiently, with the ability to snip and insert clauses,
proofread legal documents, and redact sensitive data. LexisNexis
also launched Lexis Clause Intelligence, an AI-enabled tool that
recommends relevant clauses and can be used in Lexis Create,
in the UK and Asia Pacific.
LexisNexis also supplies Legal Business Solutions such as legal
spend management, matter management, and client engagement
software. In 2022, LexisNexis acquired Parley Pro, a top contract
life cycle management solution, to complement CounselLink,
LexisNexis’ enterprise legal management platform.
Supporting its Rule of Law mission, LexisNexis volunteers, in
partnership with the Ukrainian National Bar Association and the
LexisNexis Rule of Law Foundation, built a new Legal Aid Portal,
which enables law firms and companies around the world to offer
jobs and legal assistance to Ukrainian lawyers and their families
at no cost.
LexisNexis also introduced the US Voting Laws & Legislation
Center, which provides free access to a comprehensive collection
of existing and proposed state and federal voting laws, using data
from LexisNexis State Net and codes from Lexis+. The Voting Laws
Center gives legal professionals, non-profit organisations, and
the public timely data on voting and election laws and supports
the Rule of Law mission through transparency of law.
Government & Academic
, representing around 20% of
revenue, serves customers across government organisations
and law schools.
LexisNexis legal research and analytics tools empower legal
professionals across major US federal agencies and state and
local government in upholding the rule of law. Products such as
Lexis+ and Practical Guidance enable efficient research, while
CaseMap helps manage and collaborate on legal cases.
LexisNexis Reed Tech also provides patent data and document
management services to the US Patent and Trademark Office,
with over 50 years of partnership.
LexisNexis actively engages with law school users, reaching
faculty and students across about 200 law schools in 2022.
Initiatives include product training, law course integrations,
and support in legal employment preparation. Through these
activities, LexisNexis helps students build search dexterity and
use leading legal analytics tools to tackle complex research,
deliver quality drafts, and track key issues in the practice of law.
News & Business
, representing just under 10% of revenue,
provides customers across industries with news and business
information and insights, including company information and
US Public Records.
The flagship product is Nexis, which provides an easy way to
search across a deep corpus of content of over 36,000 licensed
sources, including a 45-year news archive across 45 different
languages. Other core products include Nexis Newsdesk, an
analytics-driven solution for media monitoring, and Nexis
Diligence, an all-in-one diligence solution for risk assessments
across use cases.
In 2022, Nexis Diligence launched ESG ratings to support customers’
evolving diligence needs, tracking over 31,000 companies across
North America, Europe, and Asia. Nexis also launched a new
Donor Profile feature in Nexis for Development Professionals
(NDP), which provides a singular view across key donor data,
such as demographics, donation history, and contact connections.
Print
, representing about 10% of revenue, provides traditional
print materials as well as e-books with case law, statutes, and
other primary law sources that include leading brands such as
Matthew Bender, Mealey’s, Michie, LexisNexis A.S. Pratt and
LexisNexis Sheshunoff.
LexisNexis provides practice area and jurisdiction specific
analytical treatises and practice guides, and publishes practice
area focused newsletters with insight into key legal issues. Expert
authors maintain our collection of treatises, forms, and automated
templates that drive efficiency and accuracy for customers.
In 2022, LexisNexis continued to provide print formats to customers
while supporting transitions to digital books, particularly through
the Digital Library Platform which provides access to virtually all
LexisNexis print titles. LexisNexis also began cloud migration of
products to a solution hosted on the Lexis+ service.
Market opportunities
Longer term growth in legal and regulatory markets worldwide is
driven by increasing levels of legislation, regulation, regulatory
complexity and litigation, and an increasing number of lawyers.
Additional market opportunities are presented by the increasing
demand for online information solutions, legal analytics, and other
solutions, along with decision support solutions that improve the
quality and productivity of research, deliver better legal outcomes,
and improve business performance. Notwithstanding this, legal
activity and legal information markets are also influenced by
economic conditions and corporate activity.
Strategic priorities
LexisNexis Legal & Professional’s strategic goal is to enable
better legal outcomes and be the leading provider of workflow
and productivity enhancing information, analytics, and
information-based decision tools in its market. To achieve this,
LexisNexis is focused on introducing next-generation products
and solutions on the global New Lexis platform and infrastructure;
incorporating advanced technologies including Machine
Learning and Natural Language Processing; driving long-term
international growth; and upgrading operational infrastructure,
improving process efficiency, and gradually improving margins.
Across segments, LexisNexis is focused on the ongoing
development of advanced legal research and practice solutions
that help lawyers make data-driven decisions with greater
accuracy and efficiency. Global functions and presence enable
LexisNexis to effectively launch and scale products such as Lexis+
across segments, leveraging shared assets from product design
to back-end functionality.
LexisNexis is also continuing its mission to advance the Rule of
Law around the world through the efforts of the LexisNexis Rule
of Law Foundation, a non-profit entity, which conducts projects
globally to promote transparency of the law, access to legal remedy,
equal treatment under the law, and independent judiciaries.
Business model, distribution channels and competition
LexisNexis Legal & Professional products and services are
generally sold directly to law firms and to corporate, government
and academic customers on a paid subscription basis, with
subscriptions often under multi-year contracts.
Principal competitors for LexisNexis in US legal markets are
Westlaw (Thomson Reuters), CCH (Wolters Kluwer), and
Bloomberg. In news and business information, key competitors
are Bloomberg, Factiva (News Corporation) and Reuters News
(Thomson Reuters).
Significant international competitors include Thomson Reuters,
Wolters Kluwer and Factiva.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
22
RELX
Annual Report 2022 | Market segments
Further improvement in underlying revenue growth
driven by legal analytics
Underlying revenue growth improved to +5%, driven by the
continuing shift in business mix as legal analytics drives higher
growth in electronic revenue, which now represents almost
90% of the divisional total.
Underlying adjusted operating profit growth of +8% was
ahead of underlying revenue growth, driving a 40 basis point
improvement in adjusted operating margin after minor dilution
from portfolio changes was partly offset by small positive
currency movements.
Law firms & corporate legal markets, which accounts for over
60% of divisional revenue, saw strong growth as we continued
to roll out enhancements in the functionality of our integrated
research products and market leading analytics, supported by
broader datasets and the application of machine learning and
natural language processing technologies. Lexis+ continues
to perform well, with increasing adoption and usage from
customers across market segments.
Government & Academic, which accounts for around
20% of divisional revenue, and News & Business, just under
10% of divisional revenue, both delivered good growth.
Renewals remain strong and new sales continue to show
positive momentum across all key segments.
2023 outlook
We expect underlying revenue growth to remain above
historical trends, with underlying adjusted operating profit
growth continuing to exceed underlying revenue growth.
2022 financial performance
2021
£m
2022
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
1,587
1,782
+5%
0%
+7%
+12%
Adjusted operating profit
326
372
+8%
-2%
+8%
+14%
£1,782m
Revenue
2022
1,782
1,587
Underlying growth
+5%
2021
£372m
Adjusted operating profit
2022
372
326
Underlying growth
+8%
2021
£1,782m
£1,782m
£1,782m
Revenue by format
Revenue by geographical market
Revenue by type
Transactional
23%
Subscription
77%
Print
11%
Electronic
89%
Rest of world
12%
Europe
20%
North
America
68%
23
RELX
Annual Report 2022 | Legal
Provides integrated research, practical
guidance, and data-driven insights via
one premium legal solution
Provides guidance on litigation and
transactional legal topics with Market
Standards benchmarking
Comprehensive online legal research
tool that transforms the way legal
professionals conduct research
Litigation solution providing legal
language analytics on judges and
expert witnesses
For more information
visit relx.com
$350k
annual saving from utilising Legislative
Tracking API
§
LexisNexis hosts over 144bn legal and news documents
and records
§
On average, 1.2m new legal documents are added daily from
over 72,000 sources, generating over 146bn connections
with over 27m legal documents processed per day
§
Nexis news and business content includes over 39,000
premium sources in 45 languages, covering over 180
countries. It includes over 503m company profiles with
a content archive that dates back 45 years
§
PatentSight includes ratings on the innovative strength
of over 144m patent documents from over 100 countries
§
LexisNexis content includes more than 293m court
dockets and documents, over 159m patent documents,
4.25m State Trial Orders, and 1.45m jury verdict and
settlement documents
§
In 2022, Law360 produced over 55,000 news and analysis
articles
§
Lex Machina has normalised over 102m counsel mentions
and over 54m party mentions since 2016
§
LexisNexis is committed to advancing the Rule of Law
through operations and solutions that provide transparency
into the law in over 150 countries
CASE STUDY
LexisNexis LEGISLATIVE TRACKING API
Ballard Spahr saves more than
$350,000 annually with Legislative
Tracking Application Programming
Interface (API) from LexisNexis
To create long lasting client relationships, responsiveness
counts. With more than 650 attorneys in 15 offices, Ballard
Spahr, a US national law firm, responds wherever and
whenever clients need them. Ballard Spahr devises
forward-thinking solutions for the best client results.
Clients receive top-tier, data-driven business solutions through
the Client Value and Innovation (CVI) team Ballard Spahr formed
in 2018. Described as a “client experience innovator” and a “law
firm technology leader,” the CVI team is widely considered one
of the nation’s best.
At the beginning of the pandemic, there were executive orders
and bills coming from every state that directly affected clients’
business operations. Ballard’s CVI team wanted to find a way
to automate Covid legislative developments in real time.
Once a template was created to track Covid-19 updates, Ballard
leveraged its technology along with the LexisNexis State Net
API, which helps law firms stay on top of legislative tracking and
regulatory compliance at the local, state and federal levels.
The team developed legislation trackers covering cannabis,
labour and employment, and consumer finance.
Consumer financial services is an extremely volume heavy
practice. Managing this large amount of information manually
was nearly impossible for the firm. LexisNexis helped
Ballard Spahr take its data to the next level to make
actionable recommendations for its clients.
The CVI team built a Consumer Financial Services (CFS)
Tracker utilising an API to pull in regulatory information from
LexisNexis State Net. Working with the State Net API and the
tagging service Ballard deployed, Ballard provided custom
solutions and tangible value to its clients.
The Consumer Financial Services Tracker initiative has been
yielding great results for Ballard Spahr and its clients. Clients
are impressed with the trackers and overall feedback has
been positive. By automating the tracking and tagging of key
regulatory content, Ballard Spahr was able to replace a
manual process that did not yield the best results. The efforts
of the CVI team were able to save the firm more than
$350,000 annually.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
24
RELX
Annual Report 2022 | Market segments
Business overview
Exhibitions (RX) combines industry expertise with data and digital
tools to help customers connect digitally and face-to-face, learn
about markets, source products and complete transactions.
RX has its headquarters in London and has further principal
offices in Paris, Vienna, Düsseldorf, Norwalk (Connecticut),
Mexico City, São Paulo, Beijing, Shanghai, Tokyo, Singapore and
Sydney. RX has 3,300 employees worldwide and its portfolio of
events serves 42 industry sectors.
Revenues for the year ended 31 December 2022 were £953m
compared with £534m in 2021 and £362m in 2020. In 2022, 19%
of RX’s revenue came from North America, 47% from Europe
and the remaining 34% from the rest of the world on an event
location basis.
Over 4.1m participants welcomed the opportunity to build their
businesses at our face-to-face events with few remaining
restrictions or reservations. RX ran 254 face-to-face events
in 22 countries, up from 215 events* in 2021. 2022 was a year
of recovery, with the revenue performance of events relative
to pre-Covid equivalents improving through the year, and a
number of events such as JCK, Infosecurity Europe and
Cannes Yachting Festival trading above pre-pandemic levels.
By the end of the year, RX was operating without disruption in
almost all geographies.
RX continued to grow the number of digital products and their
usage by customers in 2022. As face-to-face revenues recovered,
digital products grew strongly in 2022 with electronic accounting
for 7% of revenue.
RX organises influential events in key markets focused on
addressing the needs of the industry, where participants from
around the world meet face-to-face to do business, to network
and to learn. Its events encompass a wide range of sectors.
They include construction, cosmetics, electronics, energy and
alternative energy, engineering, entertainment, gifts and
jewellery, healthcare, hospitality, interior design, logistics,
manufacturing, media, pharmaceuticals, real estate,
recreation, security and safety, transport and travel.
RX makes selective acquisitions to enter or increase presence
in attractive sectors with high growth potential. RX acquired
Big Data London to access the high growth market in data and
analytics, and secured the rights to produce the E3 show,
strengthening its position in the attractive gaming and
interactive entertainment market.
Similarly RX made selective launches to enter new attractive
sectors (e.g. Femtech, Tokyo) or extend successful value
propositions into new markets (such as Interphex into Korea)
or additional calendar slots (such as Nepcon and Admin,
HR & Accounting Week into the Autumn).
Market opportunities
RX is well positioned for growth in face-to-face events. This
will occur in parallel with an increased use of, and revenue
from, digital tools and platforms, both standalone and as part of
multi-channel events. These events combined with digital tools
and platforms are a key lever for RX customers’ businesses and
national economies to expand.
Growth in the exhibitions market is influenced both by
business-to-business marketing spend and by business
investment. Historically, these have been driven by levels of
corporate profitability, which in turn has followed overall growth
in gross domestic product. Emerging markets and higher growth
sectors provide additional opportunities. RX’s broad geographical
footprint and sector coverage allows it to respond effectively to
changes in global trade and capture growth opportunities as
they emerge.
As some events are held other than annually, growth in any one
year is affected by the cycle of non-annual exhibitions. This cycle
has been disrupted, but a new one is being established with fewer
events postponed or changing dates.
Strategic priorities
RX’s long-term strategic goal is to enable industry communities
to conduct business, network and learn through a range of
market-leading events and digital tools and platforms in all major
geographic markets and higher growth sectors. This allows
exhibitors to target and reach new customers quickly and cost
effectively, under one roof and with an integrated set of digital
tools, resulting in measurably higher value and improved
outcomes for its customers.
Exhibitions
Our business leverages industry expertise, large data sets and technology to
enable our customers to build their businesses by connecting face-to-face and
digitally. This enables innovation and generates billions of dollars of revenues
for the economic development of local markets and national economies
around the world.
* excluding around 50 subsidiary events now counted as part of larger events
RELX
Annual Report 2022 | Exhibitions
25
Organic growth will be achieved by continuing to generate
greater customer value by combining the best of face-to-face
events with data and digital tools and platforms. RX will continue
to seek organic growth through launches that are tightly focused
on industries and geographies that are best placed for long
term growth.
RX focuses on three main areas that position it for long-term
success.
§
Digital initiatives: digital tools and platforms have been widely
deployed and enhanced to increase the value from restarted
face-to-face events
§
Operational efficiency: a leaner and more nimble structure is
in place, better able to respond to changing circumstances and
customer needs. This new structure, RX’s global technology
platforms and more specialist functions allow RX to accelerate
revenue growth, while controlling costs and embedding
sustainability throughout the organisation. It also enables a
faster and more agile deployment of digital products, new
events and process innovation
§
Portfolio optimisation: RX actively continues to shape its
portfolio through a combination of new launches, strategic
partnerships and selective acquisitions in faster growing
sectors and geographies
RX is committed to continuously improving customer solutions
and experience by developing global technology platforms
based on industry databases, digital tools and data analytics.
By providing a variety of services, including its integrated web
platform, the company continues to increase customer value
and satisfaction by proactively putting the right buyers and sellers
together on the event floor. Increasingly, digital and multi-channel
services such as active matchmaking are becoming a normal
part of the customer expectation and product offering,
enhancing the value delivered through attendance at the event.
Using customer insights, RX has developed an innovative product
offering that underpins the value proposition for exhibitors by
broadening their options in terms of the type and location of
stand they take and the channels through which they can
address potential buyers.
RX’s digital tools and platforms are being enhanced by a new data
lake that integrates internal data with external sources to provide
better insights for its customers.
Business model, distribution channels and competition
Over 70% of RX’s revenue is derived from exhibitor fees, with the
balance primarily consisting of admission charges, conference
fees, sponsorship fees and online and offline advertising.
Exhibition space is sold directly or through local agents where
applicable. RX often works in collaboration with trade
associations, which use the events to promote access for
members to domestic and export markets, and with governments,
for which events can provide important support to stimulate
foreign investment and promote regional and national economic
activity. Increasingly, RX is offering visitors and exhibitors the
opportunity to interact before and after the show using digital
tools and platforms such as online directories, matchmaking
and mobile apps.
RX is one of the largest global event organisers in a fragmented
industry, holding a global market share of less than 10%. Other
international exhibition organisers include Informa, Clarion and
some of the larger German Messen, including Messe Frankfurt,
Messe Düsseldorf and Messe Munich. Competition also comes
from industry trade associations and convention centre and
exhibition hall owners.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
26
RELX
Annual Report 2022 | Market segments
£953m
£953m
£953m
Revenue by format
Revenue by geographical market
Events revenue by source
Face-to-face
93%
Electronic
7%
Rest of
world
34%
Europe
47%
North
America
19%
Admissions
and other
29%
Exhibitor
fees
71%
£953m
Revenue
2022
953
534
2021
Underlying growth
+64%
£162m
Adjusted operating profit
Underlying growth
nm
2022
2021
2022
162
10
2021
nm – not meaningful
Strong revenue growth and a recovery in profitability
Revenue growth was driven by a significant increase in
face-to-face activity as exhibition venues reopened across
most geographies.
During the year, we continued to manage our event schedule
flexibly, responding to changes in local government policies.
By the end of the year we were operating without material
disruption in most geographies. We made good progress
on digital initiatives, with a growing range of digital tools
supporting our physical events.
The improvement in profitability reflects the increased activity
levels and a lower cost structure in a streamlined portfolio.
2023 outlook
We expect a year of strong underlying revenue growth.
The operating result will continue to benefit from the
structurally lower cost base, with margins expected
to be close to pre-pandemic levels.
2022 financial performance
2021
£m
2022
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
534
953
+64%
+12%*
+2%
+78%
Adjusted operating profit
10
162
nm
nm
nm
nm
nm - not meaningful
* includes cycling effects of +14%
RELX
Annual Report 2022 | Exhibitions
27
Location:
France
The world’s property
market
Location:
UK
Premier global event
for the travel industry
Location:
US
The North American
jewellery industry’s
premier event
Location:
Italy
International exhibition for
companies in the industry
of HVAC+R, renewable
energy and energy efficiency
Location:
France
International exhibition for
personal care ingredients
Location:
China
One of the largest
business gifts & home
fairs in China
Location:
US
The East Coast’s
largest pop culture
convention
Location:
Germany
International trade
show for fitness,
wellness & health
Location:
Japan
Japan’s one-stop shop for
office related products
and services
03 06
OCT
PARIS EXPO
PORTE DE
VERSAILLES
Location:
France
International trade fair for
the building industry
Location:
UAE
The Middle East’s meeting
place for the travel trade
Location:
Thailand
Machine tools and
metalworking exhibition
serving ASEAN
Location:
US
International Security
Conference & Exhibition
Location:
Japan
One of the largest & longest
standing electronics
manufacturing trade shows
CASE STUDY
EUROBLECH
Great success in challenging
market conditions
Bystronic is a global leader in sheet metal processing
technology, specialising in the automation of the entire
cutting and bending process chain. Based in Switzerland,
the company is represented in 40 countries and listed on the
SIX Swiss Exchange (SIX: BYS).
Bystronic has exhibited at EuroBLECH every year since
1984, regarding it as an important showcase for innovation,
demonstration and international sales. Held in Hanover, Germany,
EuroBLECH is the world’s largest international event for the
sheet metal processing industry. Following the postponement
of the 2020 edition due to Covid, the global industry came
together for the first time in four years at EuroBLECH 2022
(25-28 October) to discover the latest developments in software,
automation and sustainable solutions.
Bystronic took the opportunity to present its new sheet metal
processing software, smarter and more powerful laser cutting
systems, two new mobile pressbrakes, and a consistent focus on
sustainability along the entire cutting and bending process chain.
Among other highlights the company unveiled its first
sustainability report offering detailed insights into
environmental, social and governance activities with a strong
focus on driving the decarbonisation of the sheet metal industry.
It drew large crowds to its ‘Flying Theatre’, an immersive
cinema experience that showcases Bystronic’s vision to position
sheet metal as a material of the future through digitalisation
and sustainability. And it was delighted to win the EuroBLECH
Award in the Automation & Handling category.
Compared to the last EuroBLECH in 2018, interest in Bystronic
proved to be robust and stable. Feedback from customers
showed a strong interest in software and automation solutions,
as well as in Bystronic’s sustainability efforts. By equipping its
systems with features and energy-saving components,
Bystronic is helping its customers to make their production
even more efficient and therefore more sustainable.
Attendees and exhibitors were excited to meet in person again
and to take the pulse of the global industry after a challenging
few years. The total number of visitors was 38,076, of which
44.5% came with the intention to invest. Despite the difficult and
uncertain economic and geopolitical environment, the majority
of attendees were positive about new investments, albeit with
greater caution.
§
In 2022 RX ran 254 face-to-face events in 22 countries,
up from 215 events* in 2021
§
These RX events helped participants build their businesses
by finding new products, suppliers and customers, learning
about their industry’s innovations and networking effectively
§
RX’s face-to-face events and brands all have digital and data
tools and platforms to extend the reach of the event beyond
the exhibition hall and increase the value of participating
§
42 industry sectors are served in 22 countries across
the globe
* excluding around 50 subsidiary events now counted as part of larger events
+3,800
More than 3,800 people experienced the
4D journey of the Bystronic vision and efforts
of a sustainable sheet metal industry in the
‘Flying Theatre’
For more information
visit relx.com
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
28
RELX
Annual Report 2022
In this section
28
Introduction
35
Our unique contributions
40
CR governance
44
People
50
Customers
55
Community
59
Supply chain
63
Environment
73
CR disclosure standards
Corporate
responsibility
Contact details
Your views are important to us.
Please send your comments to:
corporate.responsibility@relx.com
Or write to:
Dr Márcia Balisciano
Global Head of ESG and Corporate Responsibility
RELX
1–3 Strand
London
WC2N 5JR
United Kingdom
For more information, visit:
www.relx.com/corporateresponsibility
This report contains the RELX PLC Non-Financial
Information Statement for the purposes of
Section 414CB of the Companies Act 2006.
29
Financial statements and
other information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
RELX
Annual Report 2022
Our approach to corporate responsibility
prescriptive set of activities, it is how we do what we do on a daily
basis. It is the responsibility of everyone at RELX.
CR gives us long-term sustainable competitive advantage. It inspires
confidence in our stakeholders, and provides a ‘license to operate’
in the communities in which we live and work. It underpins our
business strategy to deliver improved outcomes for our customers
by combining content and data with analytics and technology across
global platforms and helps us build leading positions in our markets
by leveraging our skills and assets.
We align the objectives we set for our unique contributions, as
well as those for the significant areas that affect all companies –
governance, people, customers, community, supply chain and
environment – with the United Nations Sustainable Development
Goals (SDGs) to support the achievement of these 17 global goals
by 2030.
We believe in timely, comprehensive reporting (see CR Disclosure
Standards 2 and 3 for how we align with key standards, including the
Sustainability Accounting Standards Board and the Global Reporting
Initiative). Key non-financial metrics for environment, people and
supply chain are assured by EY. Corporate Citizenship assure our
community disclosures against the Business for Societal Impact
(B4SI) Framework. Full assurance statements are available at
www.relx.com/additional-cr-resources
. CR is an integral part of
the statements of the Chair, CEO and CFO (see pages 3, 4, and 82-87).
We pursue robust governance of CR and ESG issues for which the
CEO is directly responsible to the Board. The leaders of our four
businesses are held to account by the CEO, reinforced by objective
setting and monitoring by our CR Forum and the involvement of
over 3,500 colleagues in our internal CR networks (page 33).
CR and risk
In this report we outline our principal risks, which map to our
CR priorities, including meeting customer needs, attracting
and retaining the right people, maintaining an ethical supply
chain and managing climate risks as presented in our
Taskforce for Climate-related Financial Disclosure (see
CR Disclosure Standards 1). We also indicate our alignment
with the Sustainability and Accounting Standards Board
(see CR Disclosure Standards 2).
We review the implications of our identified risks to ensure
appropriate mitigation. For example, one strategic risk is
customer acceptance of our products and services; we must
therefore make certain they are reliable and high quality,
responding to the views expressed through customer
feedback programmes, including Net Promoter Score, and
access initiatives to ensure those who might benefit from our
products and services can do so. In this way, we minimise
risk of financial loss and damage to our corporate reputation.
Corporate responsibility (CR) and environmental, social and
governance (ESG) performance begins with the purpose of
the company.
RELX is a global provider of information-based analytics and
decision tools for professional and business customers,
enabling them to make better decisions, get better results and
be more productive.
Our purpose is to benefit society by developing products that help
researchers advance scientific knowledge; doctors and nurses
improve the lives of patients; lawyers promote the rule of law and
achieve justice and fair results for their clients; businesses and
governments prevent fraud; consumers access financial services
and get fair prices; and customers learn about markets and
complete transactions.
Our purpose guides our actions beyond the products that we
develop. It defines us as a company. Every day across RELX our
employees are inspired to undertake initiatives that make unique
contributions to society and the communities in which we operate.
To be a leading company requires acting with CR; that is, with the
highest ethical standards, while channelling our strengths to make
a positive difference for society. To us, CR is not a programme or
Sustainable Development Goals (SDGs)
We’re committed to doing our part to advance these essential
objectives for the world. Throughout the Corporate
Responsibility section of this report, SDG icons highlight
the SDGs relevant to the content.
Visit the RELX SDG Resource Centre
www.sdgresources.relx.com
Our focus on corporate responsibility and
ESG performance underpins the long-term
financial health of our business and
helps us meet the expectations of all
our stakeholders.
Dr Márcia Balisciano
Global Head of ESG and Corporate Responsibility, RELX
30
RELX
Annual Report 2022 | Corporate responsibility
Non-financial information statement
RELX is required to comply with the reporting requirements of
Sections 414CA and 414CB of the Companies Act 2006, which
relate to non-financial information. The list below outlines where
this information can be found:
Reporting requirement:
Environmental matters
63-72, 73-78
Employees
44-49
Social matters
32-39
Human rights
32-39, 44-49,
59-62
Anti-corruption and anti-bribery matters
40-43, 59-62
Policies, due diligence processes
and outcomes
40-43, 59-62
Description and management of principal and
emerging risks and impact of business activity
88-95
Description of business model
5-9
Non-financial metrics
31
Directors’ duties and Section 172 Statement
The Directors of RELX PLC – and those of all UK companies –
must act in accordance with their duties under the Companies
Act 2006 (the Act). These include a fundamental duty to
promote the success of the Company for the benefit of its
members as a whole. The Board of RELX PLC, and its individual
members, consider that they have done so for the year ending
31 December 2022.
Details of how the Board and its Directors have fulfilled these
duties can be found throughout this 2022 Report, and therefore
the following sections have been incorporated by reference into
this Section 172 Statement and, where necessary, the RELX
2022 Strategic Report:
Business model and strategy
5-9
Corporate responsibility report
28-80
Principal risks
88-95
Culture and workforce policies
104-106
Board decision-making
106-108
Stakeholder engagement
109-112
Section 172 of the Act requires the Directors to have regard to,
among other matters, the interests of the Company’s
stakeholders in working to promote the success of the
company. The Board recognises the importance of building and
maintaining sound relationships with RELX’s key stakeholders
in order to achieve its business aims. Among the Group’s many
and varied stakeholders, the Board has identified investors,
employees, customers, suppliers and the communities in
which we operate, as the Company’s key stakeholders. Given
its size, diversity and global business, stakeholder engagement
takes place at all levels across the Group. To ensure adequate
visibility of key stakeholder views, the Board received a detailed
overview in the year covering engagement channels and
activities the Company has with each of its key stakeholders.
In 2022, the Board also continued to oversee our substantial
corporate responsibility activities, and maintained its focus
on RELX’s environmental, social and governance (ESG)
performance. The Board’s oversight on ESG matters is detailed
on page 107 as part of Board activities, and page 111 as part of the
Board’s engagement with the communities in which we operate.
The Corporate Responsibility Report is an integral
part of our Annual Report and Financial Statements.
This section highlights performance against our 2022
corporate responsibility objectives.
31
RELX
Annual Report 2022 | Introduction
Financial statements and
other information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
2022 key corporate responsibility data
2018
2019
2020
2021
2022
Revenue (£m)
7,492
7,874
7,110
7,244
8,553
People
Number of full-time equivalent employees (year end)
32,100
33,200
33,200
33,500
35,700
Percentage of women employees (%)^
51
50
50
50
50
Percentage of women managers (%)^
42
42
42
44
44
Percentage of women senior leaders (%)
1
^
28
30
28
30
31
Percentage of ethnic minority US/UK managers (%)^
17
19
19
Percentage of ethnic minority US/UK senior leaders (%)
1
^
9
10
12
Community
2
Total cash and in-kind donations (products, services and time (£m))
8.7
9.2
9.2
10.4
12.3
Market value of cash and in-kind donations (£m)
17.6
18.7
17.6
20.6
22.6
Percentage of staff volunteering (%)
3
42
45
26
32
36
Total number of days volunteered in company time
11,720
12,127
6,821
10,362
12,830
Health and safety (lost time)
4
Incident rate (cases per 1,000 employees)^
0.28
0.50
0.11
0.07
0.17
Frequency rate (cases per 200,000 hours worked)^
0.03
0.06
0.01
0.01
0.02
Severity rate (lost days per 200,000 hours worked)^
0.69
0.69
0.07
0.02
0.36
Number of lost time incidents (>1 day)^
8
14
3
2
5
Socially Responsible Suppliers (SRS)
Number of key suppliers on SRS database
5
^
348
354
412
359
724
Number of independent external audits^
84
93
99
111
119
Percentage signing Supplier Code of Conduct (%)
6
^
89
91
91
96
87
Environment
7
Total energy (MWh)^
190,145
176,682
142,098
125,095
117,997
Renewable electricity purchased (MWh)
8
^
125,707
135,710
120,710
105,793
98,013
Percentage of electricity from renewable sources (%)
8
^
78
91
100
100
100
Waste sent to landfill (t)
9
^
962
804
210
150
73
Percentage of waste diverted from landfill (%)
9
^
83
81
91
93
97
Water usage (m
3
)^
346,408
344,304
226,509
183,575
156,734
Climate change (tCO
2
e)
7
Scope 1 (direct) emissions^
8,126
8,498
5,217
5,644
5,211
Scope 2 (location-based) emissions^
75,194
69,616
53,740
44,051
37,270
Scope 2 (market-based) emissions^
16,818
18,384
11,384
8,321
8,952
Scope 3 (business flights) UK BEIS methodology
10
^
68,363
62,254
18,652
5,032
21,616
Scope 3 (business flights) Cirium methodology
10
34,163
37,142
8,561
3,133
10,417
Scope 1 + Scope 2 (location-based) emissions^
83,320
78,114
58,957
49,695
42,481
Scope 1 + Scope 2 (location-based) + Scope 3 (flights) emissions^
151,683
140,368
77,610
54,727
64,097
Scope 1 + Scope 2 (market-based) + Scope 3 (flights) emissions^
93,306
89,136
35,254
18,996
35,779
Paper
Production paper (t)^
35,555
34,599
36,259
40,910
28,466
Sustainable content (%)
11
^
90
96
92
98
99
1
We define senior leaders as colleagues with a management grade of 17 and above. People figures for 2020 and 2021 have been restated accordingly. Previously we defined
senior leaders as either a) colleagues with a management grade of 17 and above, based on our job architecture framework developed with external input and b) colleagues
with a management grade of 16 (and above) with a hierarchy of 4 (or 5 in some circumstances) reporting levels from the CEO.
2
Data reporting methodology assured by Business for Societal Impact (B4SI). Reporting period covers 12 months from December 2021 to November 2022.
See B4SI assurance statement at www.relx.com/additional-cr-resources.
3
All Group employees can take up to two days off per year, coordinated with line managers, to work on community projects that matter to them. Number of staff
volunteering reflects the number of staff using their two days, as well as those who participated in other Company-sponsored volunteer activities.
4
Accident reporting covers approximately 82% of global employees.
5
We continue to refine our supplier classification and hierarchy data, contributing to changes in the number of suppliers we track year-on-year.
6
Signatories to the RELX Supplier Code of Conduct include suppliers who have not signed the Supplier Code, but have equivalent codes. These suppliers are subject
to the same audit requirements as Supplier Code signatories.
7
We compensated for emissions in Scope 1, Scope 2 and Scope 3 (work-related flights, hotels, cloud computing, home-based working and commuting) by purchasing
offsets. Climate change and environmental data (carbon, energy, water, waste) covers the 12 months from December 2021 to November 2022. Previous years have
been restated to include the one RX managed event venue.
8
We purchase renewable electricity on green tariffs at locations in the UK and the Netherlands. US Green-e certified Renewable Energy Certificates (RECs) are applied
to electricity consumption in the US. US Green-e certified RECs are also purchased to equal 100% of the electricity consumption outside the US; we do not apply any
market-based emissions factors on this portion of electricity consumption.
9
Waste sent to/ diverted from landfill from reporting locations excluding estimates.
10
Covers all flights booked through our corporate travel partner. BEIS methodology uses the UK Government RF Conversion factors. Further details on the
Cirium methodology are available on page 9.
11
Percentage of paper in Book Chain Project graded 3 or 5 (known and responsible sources) or certified to FSC or PEFC.
^
Data assured by EY.
Reporting guidelines and methodology are available on
www.relx.com/additional-cr-resources
32
RELX
Annual Report 2022 | Corporate responsibility
Engagement
Employees are our primary internal stakeholders and we involve more than 3,500 colleagues across RELX in our CR networks,
who in turn reach more people across the Company. Examples of how we engage with our stakeholders are available at
www.relx.com/additional-cr-resources
.
Our external stakeholders
Prioritising key issues
To understand which issues we should focus on, we consider our business priorities and engage regularly with stakeholders.
Examples of our stakeholder engagement can be found at
www.relx.com/additional-cr-resources
.
Every two years, we formally ask stakeholders to assess our impact areas. In 2021 CR consultancy, Carnstone, contacted over
270 stakeholders – including investors, employees and suppliers – to rank 14 issues we consider important to the business.
All 14 CR priorities were rated as either significant or very significant by 26% or more of respondents (as a minimum), indicating
that we are focusing on issues they believe are critical for us. Their ranking of our top priority issues are reflected in the table below.
Investors
Government
Customers
NGOs
Local
communities
Suppliers
Industry
networks
Impact on society and the environment
Impact on RELX
Ranking no.
Priority issues:
Priority issues:
1
RELX unique contributions to society
Having the right people
2
Access to information
Data privacy and security
3
Managing environmental impacts
Responding to customer needs
4
Health, safety and well-being
RELX unique contributions to society
5
Responding to customer needs
Governance and ethical practice
6
Having the right people
Health, safety and well-being
7
Promoting diversity
Editorial standards
8
Governance and ethical practice
Promoting diversity
9
Transparent, comprehensive reporting
Access to information
10
Data privacy and security
Transparent, comprehensive reporting
11
Editorial standards
Managing environmental impacts
12
Sustainable supply chain
Tax, pensions and investments
13
Supporting our communities
Sustainable supply chain
14
Tax, pensions and investments
Supporting our communities
#1
Unique contributions
Ranked by stakeholders as our primary
impact on society and environment
#1
Having the right people
Ranked by stakeholders as the primary
impact for RELX
33
RELX
Annual Report 2022 | Introduction
Financial statements and
other information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
Our internal stakeholders
Commitment to the United Nations Global Compact
The United Nations Global Compact (UNGC) links businesses
around the world with UN agencies, labour and civil society in
support of Ten Principles encompassing human rights, labour,
the environment and anti-corruption. Each year, we work to
further UNGC principles within RELX and in our supply chain.
In the year we demonstrated leadership as one of 850 early
adopters of the new Enhanced Communication on Progress,
among more than 18,000 signatories. We contributed to the
UNGC Expert Network and key SDG working groups on Modern
Slavery, Diversity, Equality and Inclusion and Transformational
Governance and shared our expertise as panelists at UNGC
events, including the 2022 UK Climate Action Summit. Our
Global Head of ESG and CR serves as the Chair of the UNGC
UK Network and on the Board of the Foundation for the Global
Compact, which provides financial, operational and
programmatic support to the UNGC.
The UNGC is a partner of the RELX SDG Resource Centre, which
features UNGC content. The UNGC UK Network was a partner on
the virtual RELX SDG Inspiration Day, which brought together over
400 representatives from business, the investor community,
academia, non-profit organisations and civil society to inspire
action and collaboration to advance the global goals.
For how we put the Ten Principles into practice over
the past year, see our Communication on Progress at
www.unglobalcompact.org/what-is-gc/participants/7909.
3,500
participants in CR networks
31
countries
Accessibility
Working
Group
Well-being
Champions
Mental Health
First Aiders
Socially
Responsible
Supplier Group
Disaster and
Emergency Relief
Working Group
SDG Champions
Inclusion Council
Rule of Law
Working Group
RX
Sustainability
Steering Group
RELX Cares
Champions
Customer Quality
Assurance Network
Employee
Resource Groups
Modern Slavery Act
Working Group
Environmental
Champions
Green Teams
CR for
Customers
Examples of
our internal
stakeholders
Inclusion
Working Group
Carbon Fund
Governance Group
Elsevier
Accessibility Guild
34
RELX
Annual Report 2022 | Corporate responsibility
2022 awards for excellence
Our employees, products and shows are regularly recognised for excellence. In 2022, for example:
Risk
Scientific, Technical & Medical
LexisNexis Risk Solutions was
named Best Cybersecurity
Provider by Waters Rankings
for LexisNexis ThreatMetrix
LexisNexis Risk Solutions
was awarded Best Solution
Anti-fraud at the Regulation
Asia Awards for Excellence
2022
Elsevier’s Reaxys won Data
Engineering Excellence at
Analytics India Magazine’s Data
Science Excellence Awards
Elsevier won the Customer
Centric Culture category at
the European Customer
Centricity Awards
Legal
Exhibitions
LexisNexis Legal &
Professional’s Center for
Automation and Process
Excellence (CAPE) won
Best Digital Transformation
Project at the Global
OPEX Awards
The CEO of LexisNexis Legal
& Professional South Africa,
Videsha Proothveerajh,
received the Woman in
Tech award at the 2022
Africa Tech Week Awards
RX won three awards for Best
Global Culture, Best
Marketing Team and Best
Leadership Team at the
Comparably Awards
RX won the Trade Show News
Network Comeback Award
for JCK, the world’s largest
jewelry trade show
16%
2022 ESG recognition
MSCI ESG Ratings
• AAA rating
Sustainalytics ESG Risk Rating
• Global universe: 11th out of
14,000+
• Sector (media): 1st out of 284
S&P Global Sustainability
Yearbook
• Bronze class distinction
Tortoise Responsibility100
Index
• 4th out of 100
Dow Jones Sustainability
Index
Included in
• World
FTSE4Good Index
Included in:
• FTSE4Good Europe Index
• FTSE4Good UK Index
STOXX Global ESG
Leaders Indices
• Included
ECPI Indices
• Included
CDP
• Climate programme score: B
• Water programme score: B
SOCOTEC ISO14001
• Group certification
Workplace Pride Global
Benchmark
• Awarded Advocate status
Bloomberg’s Gender-Equality
Index
• Included
Relevant
SDGs
35
RELX
Annual Report 2022
Lack of access to sustainable credit
is one of the biggest challenges in
fighting poverty and increasing
economic opportunity in emerging
markets. Our products are helping
to address this challenge.
Santiago Espinoza
Director, Market Planning
LexisNexis Risk Solutions
Our unique contributions
Our unique contributions are how we make a positive impact on society
in the conduct of our business.
Risk
LexisNexis Risk Solutions’ (LNRS) products and services align
with SDG 16 (Peace, Justice and Strong Institutions) and SDG 10
(Reduced Inequalities), among others. Our products and services
help citizens access vital government benefits, protect society by
detecting and preventing fraud across a range of business sectors
and at US government levels, and help law enforcement keep
communities safe. We have established data privacy principles,
governance structures and control programmes designed to
ensure data privacy requirements are met and personally
identifiable information is protected, and individuals’ privacy
concerns are addressed across all jurisdictions where we
operate. We work with established privacy advocacy groups,
federal and state legislators and other interested parties and
always operate within relevant legal, regulatory, ethical and
best practice frameworks.
In 2022 Risk combined Artificial Intelligence (AI) with a host of
complex fraud signals to better predict when an online banking
user is about to send a payment to a fraudster. Following trials
with two major UK banks, there was a 120% increase in
2022 PERFORMANCE
Meaningful support of SDG 10 by
expanding financial inclusion pilots in
low-income countries; use of products
and services to reduce online fraud and
identity theft
Financial inclusion is essential to the SDGs. With adequate
wages and access to appropriate financial tools, citizens are
lifted out of poverty, (SDG 1); avoid hunger (SDG 2); have better
health (SDG 3); are more likely to receive quality education
(SDG 4); and more women are likely to aid the financial
well-being of their communities (SDG 5), among other
SDG benefits.
However, according to Global Findex estimates, published
by the World Bank in 2021, 1.7bn adults in the world lack
an account with a financial institution or a mobile money
provider. A joint study by McKinsey and the IFC estimates
that micro and small enterprises face a $2tn credit gap,
which slows economic growth. The challenge of financial
inclusion is often magnified in low-income countries, given
gaps in identity verification and credit risk assessment.
Risk uses alternative credit data, such as professional licenses,
asset ownership, higher education data and other public
records to help lenders better assess borrowers ensuring
consumers are not underestimated while addressing the
problem of ‘credit invisible’ people, those with no credit record.
In 2022, Risk launched Decision Trust, leveraging global
intelligence on consumer behaviour to help lenders determine
the fraud risks associated with a credit application; enabling
greater financial inclusion for those lacking sufficient credit
history with local credit bureau databases. Alternative data
modelling has allowed customers to increase their acceptance
rates by up to 500% because they now have visibility into
previously excluded population groups. Decision Trust is opening
up opportunities for customers to engage with otherwise
credit-invisible candidates who represent roughly 75% of the
adult population in emerging markets around the world. Decision
Trust has a pipeline of 58 initiatives across various markets,
including Chile, Colombia, Indonesia, Mexico, Peru, South Africa
and Vietnam.
Universal, sustainable access
to information
Advance of science and health
Protection of society
Promotion of the rule of
law & access to justice
Fostering communities
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
36
RELX
Annual Report 2022 | Corporate responsibility
detection of in-progress authorised push payment fraud among
online banking customers. In 2022, LexisNexis Financial Crime
Digital Intelligence, a financial crime compliance solution that
leverages digital identity data to transform compliance
workflows, was recognised with Aite-Novarica Group’s 2022
Anti-Money Laundering Impact Award which recognises
organisations and vendors for new and disruptive financial crime
solutions that most effectively and efficiently counter escalating
financial crime threats.
The ADAM programme was developed and donated by LNRS
in 2000 to help the National Center for Missing and Exploited
Children (NCMEC) find missing children. ADAM technology,
which is maintained and enhanced by LNRS employees,
distributes missing child alert posters to law enforcement,
hospitals, retail, businesses and the public within specific
geographic search areas. In 2022, ADAM distributed 1.5m poster
alerts in over 1,880 missing child cases that helped NCMEC
resolve over 1,300 missing child cases.
Scientific, Technical & Medical
Elsevier plays an important role in advancing human welfare and
economic progress through its science and health information,
which spurs innovation and enables critical decision-making.
Among others, Elsevier makes a significant contribution to
SDG 3 (Good Health and Well-Being), SDG 5 (Gender Equality),
SDG 10 (Reduced Inequalities) and SDG13 (Climate Action).
To broaden access to its content, Elsevier supports programmes
in places where resources are often scarce. Among them
is Research4Life, a partnership with UN agencies and over
200 publishers; we provide core and cutting-edge scientific
information to researchers in 125 low-and middle-income
countries. As a founding partner and leading contributor, Elsevier
provides around 15% of the material available in Research4Life,
encompassing approximately 5,000 journals and 30,000 e-books.
In 2022, there were over 1.5m Research4Life downloads
from ScienceDirect. In serving the global scientific research
community, Elsevier published over 600,000 articles in 2022.
In 2022, the Elsevier Foundation advanced Research4Life’s
new Country Connectors initiative which aims to heighten
awareness and use of Research4Life content, building
communities of users by establishing national focal points
in Bhutan, Eswatini, Ghana, Kenya, Liberia, Sierra Leone
and Tanzania. Connectors are creating tailored networking,
information skills building and promotion, empowering
users to drive change in their communities.
To bridge the clinical practice gap in low-income countries,
the Elsevier Foundation continued its partnership with Amref
HealthAfrica’s LEAP programme which scales mobile learning
for healthcare workers in Ethiopia. Elsevier data scientists are
working with long-standing partner, Datakind, to build
predictive analytics capacity to help Amref understand how
its platform engages learners and health outcomes.
SSRN is Elsevier’s preprint and early-stage research platform.
It enables researchers around the world to openly share their
work so that it’s freely available to others in their field and the
wider research community, promoting discussion, collaboration
and the exchange of ideas. In 2022, SSRN exceeded 1m papers
on the platform with over 200m content downloads.
1.5m+
Research4Life downloads from Elsevier’s ScienceDirect
5,000+
Elsevier journals available through Research4Life
2022 PERFORMANCE
Meaningful support of SDG 3 and SDG 10
by championing inclusive health and
research through global partnerships
Focus on a range of projects including the Sansum Diabetes
Research Institute’s Latino community scientists and the
Black Women’s Health Alliance to improve health care
outcomes and reduce health disparities for African
American and other minority women and families
in Philadelphia.
The Elsevier Foundation works to help underserved
communities around the world achieve better health
outcomes and a more sustainable research ecosystem.
Latino communities in the United States are
disproportionately burdened by obesity and type 2 diabetes,
and the many serious associated medical complications.
Between 2020 and 2022, the Elsevier Foundation partnered
with the Sansum Diabetes Research Institute to evaluate the
therapeutic benefits, acceptability and dissemination of a
culturally tailored, diet-focused lifestyle therapy
programme. The project trained bilingual community health
workers (Especialistas) to conduct diabetes outreach within
Latino communities. They provided wearable digital health
technologies, such as continuous glucose monitoring devices
and activity and sleep trackers, and explained processes and
results in lay terms. Using validated questionnaires to capture
associated psycho social data from participants, the studies are
assessing the clinical effectiveness of lifestyle therapy
programmes among Latino adults.
The Black Women’s Health Alliance aims to improve healthcare
outcomes and reduce health disparities for African American
and other minority women and families in Philadelphia through
advocacy, education, research and support services. Its
Millennial Sister Circle uses holistic approaches to health and
well-being to support African American women in Philadelphia,
aged 18-39 years. In 2022, they introduced a four-chapter
curriculum covering a range of issues including stress
management, trauma and depression, and financial health,
with an emphasis on health-prioritised lifestyle. A dedicated
app, e-modules, and a resource guide supported five virtual
sessions in the year.
37
RELX
Annual Report 2022 | Our unique contributions
Legal
LexisNexis Legal & Professional (LNL&P) advances SDG 16
(Peace, Justice and Strong Institutions) through its products and
services that promote the Rule of Law. The LNL&P global legal
and news database contains 144bn documents and records
providing transparency of the law in more than 150 countries,
with some 1.2m new legal documents added daily.
Through its content, data and analytics, LNL&P supports the
four components of the Rule of Law: transparency of law,
equality under the law, independent judiciaries and accessible
legal remedy.
Legal has partnered with the International Bar Association (IBA)
on the eyeWitness to Atrocities App, which allows human rights
defenders to document and report human rights abuses
in a secure and verifiable way so information can be used as
admissible evidence in relevant forums such as the International
Criminal Court of Justice. LNL&P utilises its premium data
hosting capabilities to provide a secure repository for the
information collected, with over 40,000 photos and videos
uploaded to date, including over 20,000 relating to allegations
of Human Rights abuses and crimes against humanity in Ukraine.
In 2022, we provided support for the creation of a Ukrainian
language version of the app.
In 2022, Legal, in partnership with the LexisNexis Rule of Law
Foundation (LNROLF) and the Ukrainian National Bar Association,
developed the LexisNexis Legal Aid Portal – Ukraine. The portal
allows law firms and corporations to offer legal jobs and
complimentary legal assistance to Ukrainian lawyers, enabling
them to receive help from anywhere in the world.
Legal, in partnership with the LNROLF, also launched the LexisNexis
US Voting Laws and Legislation Centre in 2022. This tool, created by
a LexisNexis team of over 50 employees, provides free public
access to over 40,000 US state and federal voting laws and related
legislative changes, providing unbiased, non-partisan information
for understanding current laws, and changes over time.
Legal launched a new ESG tracker in 2022 that leverages Nexis
Newsdesk to allow users to explore ESG trends and conduct
customisable searches. It includes a search bar delivering the
top 15 ESG-related news stories sourced in real time, drawing
on nearly 100,000 news sources written in over 90 languages.
The ESG tracker allows users to create comparisons between
their ESG efforts and those of competitors.
In 2022, the LNROLF completed a multi-year project in support
of the Defence Bar of Indonesia. Along with experts from the
International Legal Foundation and the Attorney General
Alliance, LNROLF facilitated training for defence lawyers and
prosecutors on why input from both are essential to a fair trial.
In addition, legal colleagues reviewed and supported the
relaunch of a Human Rights Assessment Tool for Oxfam which
allows citizens to protect their rights by providing details on
their human rights status to government authorities.
Since 2008, LNL&P has partnered with industry associations to
recognise individuals and organisations for their commitment
to the Rule of Law. 2022 award honourees include Ghana’s Yorm
Ama Abledu, recipient of the Outstanding Young Lawyer Award,
jointly established by LNL&P and the IBA Young Lawyers
Committee, for her demonstrable passion for mentoring the
next generation of African legal professionals. In 2022, LNL&P
also partnered with the IBA to establish the IBA Rule of Law
Forum/LexisNexis Rule of Law Lifetime Achievement Award,
which was presented to Benjamin B. Ferencz, for his dedication
to the Rule of Law.
40,000+
Photos and videos uploaded to eyewitness to Atrocities
1.2m+
New legal documents added daily to LexisNexis
2022 PERFORMANCE
Meaningful support of SDG 16 through
advancing a legislative review project
with the UK National Crime Agency and
the International Centre for Missing and
Exploited Children on child sexual abuse
reporting and data sharing across
nine countries
The LexisNexis Global Legal Team volunteered their time and
expertise to develop a research piece on the legislation that
companies operate within that may impact child sexual abuse
reporting and data sharing. The team included colleagues
from Australia, Canada, Germany, Hong Kong, the Philippines,
Singapore, South Africa, the UK and the US. Research was
conducted on data protection sharing and legal reporting
obligations in 84 jurisdictions across the globe in support of
a project that the UK National Crime Agency coordinated with
the International Centre for Missing and Exploited Children.
This project is a great example of
how we leverage our core business
assets, our people, their expertise,
and their passion, to advance the
Rule of Law.
Nigel Roberts
VP Global Associations, LexisNexis Legal & Professional
and VP LexisNexis Rule of Law Foundation
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
38
RELX
Annual Report 2022 | Corporate responsibility
Exhibitions
RX events strengthen communities and supports the SDGs,
including SDG 11 (Sustainable Cities and Communities) and SDG 10
(Reduced Inequalities). In addition, RX events support SDG 13
(Climate Action) by allowing customers to conduct business more
efficiently in a single setting, avoiding the need to travel and expend
more emissions in order to see customers individually.
RX saw a strong return to face-to-face events in 2022. According
to RX’s 2022 Customer Mindset Tracking Study, face-to-face
business remains a key priority for customers looking to rebuild
supply chains, renew their order books, and grow their businesses
in a post/late Covid-19 world. 75% of small and medium
enterprises which have been hardest hit by the absence of live
marketplaces over the past two years, said trade events offered
them something that they cannot get elsewhere. Returning
customers also took advantage of new RX digital and data analysis
tools to source business solutions and suppliers, capture more
leads, and analyse and improve their event performance.
In 2022, as part of its five-year, $1m commitment to racial equity,
RX supported two new charity partners: The Research in Color
Foundation, a US-based, non-profit organisation which seeks to
diversify economics through mentoring and financial support; and
the GO Foundation in Australia, which creates opportunities for
indigenous youth through educational scholarships, cultural
connection days and mentoring.
At the 2022 MIPTV television market, RX France presented its
third annual MIP SDG Award which honours media companies
for their contribution to delivering the SDGs. The 2022 award
was presented to Association of Commercial Television and VOD
Services in Europe, in recognition of its work combatting the
spread of online disinformation. Junk Kouture received the first
MIP SDG Innovation Award for encouraging young people to
create high fashion from recycled materials. The event also
features the MIPCOM Diversify TV Excellence Awards, now in
their sixth year, to honour the most compelling creators,
characters and stories promoting diversity and inclusion
on-screen. Among them were Pour toi Flora, a Radio Canada
drama that explores the legacy of the trauma inflicted on
Canada’s indigenous communities and Exceptional, a teen
drama about a girl with autism, from Israel’s Kan 11.
Building on the success of its US programme for guests with
disabilities, ReedPop introduced an accessibility programme at
MCM Comic Con London for the first time in 2022 to ensure all
fans had an equally rewarding experience. This included special
assistance stickers and carer passes, special assistance lanes
for entry to the venue, show floor and main stages, and British
Sign Language interpreters for selected panels. The team also
provided a dedicated ‘Reset Room’, staffed by volunteers from
the mental health charity Gaming the Mind, for anyone feeling
anxious, overstimulated or simply needing time out.
2022 PERFORMANCE
Meaningful support of SDG 11 including
a focus on show content supporting net
zero and the transition to a low-
carbon economy
As a founding signatory of the UFI Net Zero Carbon Events
initiative, RX attended COP 27 in Sharm El Sheik in November
to launch the global event industry’s Sustainable Roadmap. In
the year, RX also established an internal Global Sustainability
Council to drive its own roadmap to net zero and published a
sustainability playbook for event teams.
Sustainability topics are embedded into a range of shows. For
example, the National Hardware Show, Las Vegas, featured
HABITAT, a new curated showcase for sustainable ideas and
technologies at home. HABITAT educated buyers on what to
look for when sourcing sustainable products and flagged
opportunities for retailers in this rapidly growing market.
The Sustainability Corner at In-cosmetics Global provided
an interactive educational area where participants could
present sustainable ingredients and technologies to
potential partners. The 2022 edition in Paris welcomed
over 44 exhibitors (up from 29 in 2019), reflecting growing
momentum towards a more conscious beauty industry.
Ahead of Batimat, the world’s largest event dedicated to
building and construction, RX embarked on a Low Carbon
Construction Tour of 12 European and African cities to
raise awareness of low-carbon solutions for the
construction industry.
Working in partnership with the China Nonferrous Metals
Processing Industry Association, Aluminium China 2022
delivered its annual ‘Aluminium Packaging Public Welfare
Zone’ to showcase sustainable advantages of aluminium
packaging. The zone featured interactive can recycling, and
visitors were invited to redeem environmentally friendly
aluminium cans. As they did, they helped illuminate a carbon
footprint tree. Some 1,000 cans were collected during the
three day event.
Our global portfolio of energy
business events offer a platform for
thought leadership, and a showcase
for clean energy transition.
Helen Sheppard
Sustainability Director, RX
39
RELX
Annual Report 2022 | Our unique contributions
2023 objectives
By 2030
Protection of society
– SDG 10 (Reduced Inequalities):
Expansion of financial inclusion efforts in Africa and APAC
working to provide lenders with improved risk information
from alternative credit data to benefit more people
Advance of science and health
– SDG 10 (Reduced
Inequalities and SDG 13 (Climate Action): Global
partnerships to advance an inclusive approach to climate
action, including with the World Academy of Sciences
to support women scientists in the Global South working
to address climate change
Promotion of the rule of law and access to justice
– SDG 16
(Peace, Justice and Strong Institutions): Advance the United
Nations Global Compact’s SDG 16 Business Framework on
Inspiring Transformational Governance to promote business
understanding and implementation of SDG 16
Fostering communities
– SDG 13 (Climate Action): Progress
Net Zero Carbon Events initiative, including by reporting the
net zero pathway for RX shows
Universal, sustainable access to information
– Increase the
number of unique users of the RELX SDG Resource Centre by
15% over 2022
Use our products and expertise to advance the SDGs,
among them:
SDG 3 (Good Health And Well-Being)
SDG 10 (Reduced Inequalities)
SDG 13 (Climate Action)
SDG 16 (Peace, Justice And Strong Institutions)
Enrich the SDG Resource Centre to ensure essential content,
tools and events on the SDGs are freely available to all
Across RELX
Recognising that across RELX we have products, services, tools
and events that advance the UN’s 17 SDGs, we created the free
RELX SDG Resource Centre in 2017 to advance awareness,
knowledge and implementation. Since 2017, we have made
over 1,500 journal articles and book chapters free to access
via the RELX SDG Resource Centre which would have
otherwise cost over £3m to make open access.
We held our annual RELX SDG Inspiration Day in the year with a
focus on SDG16, Peace, Justice and Strong Institutions, giving
thought leaders, corporate representatives, investors,
governments, and NGOs a common platform to discuss
challenges and opportunities for collaboration. Keynote
speakers included former Secretary General of the United
Nations, Ban Ki-moon, and legendary musician and political
activist, Sir Bob Geldof.
2022 marked the twelfth year of the RELX Environmental
Challenge, focused on providing improved and sustainable
access to water and sanitation where it is presently at risk. The
$50,000 first prize winner was Caminos de Agua, a US charity
operating in Mexico which develops low-cost, community-run
groundwater treatment systems that remove arsenic and
fluoride from community water supplies. The $25,000 second
prize winner was MSABI, a Tanzanian organisation with a
subscription-based model for maintaining community water
pumps. For more information see page 69.
2022 PERFORMANCE
Advance the SDGs by increasing the
number of research articles available
on the RELX SDG Resource Centre
In 2022 we increased the number of research articles on
the RELX SDG Resource Centre by 24% and added 650 new
content items. We published 18 special issues in 2022
featuring curated articles, book chapters and other content
on specific topics. This included a humanitarian special issue
in the wake of the invasion of Ukraine and other crises which
had more than 27,000 page views. Ahead of COP27 in
November we also released a climate change special issue,
which included a curated list of 110 Elsevier journal articles
and book chapters to inspire positive environmental action
and further climate research. We closed the year with more
than 155,082 unique users, a 16% increase over 2021.
3,200+
Research articles available on the RELX SDG Resource Centre
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
Relevant
SDGs
40
RELX
Annual Report 2022 | Corporate responsibility
CR Governance and reporting
Our Board recognises the importance of maintaining high
standards of corporate governance, which underpins our ability
to deliver consistent financial performance, and value to our
stakeholders, consistent with RELX’s culture of integrity.
The Board has oversight responsibility of RELX’s corporate
governance and their role and function is explained fully in the
Corporate governance section (see pages 98 to 151). The Audit
Committee of the Board regularly reviews ethics issues. In
addition, the Chief Legal Officer (CLO) and Company Secretary is
responsible for ethics issues as a member of the RELX executive
committee. The Chief Compliance Officer and Corporate General
Counsel reports to the CLO and presents to the Board annually
on the status of our ethics policies and implementation.
Governing policies set out our stance on key issues and are
publicly available at
www.relx.com/cr-downloads
. These
include the RELX Code of Ethics and Business Conduct, the
Code of Ethics for Senior Financial Officers, the Supplier Code
of Conduct, Tax Principles, Privacy Principles, Inclusion and
Diversity Policy, Health and Safety Policy, Editorial Policy,
Quality First Principles and Product Donation Policy.
Our values
We monitor the progress of each business in embedding our values.
Corporate responsibility governance
Good governance allows us to make appropriate decisions in a manner that
weighs economic considerations alongside the risk and impact on our
business operations and our stakeholders.
Strong corporate governance
ensures a business has effective
decision-making processes and
controls in place so that the interests
of all stakeholders are balanced.
It is fundamental to the way RELX
operates, and this is clearly visible
in our culture of integrity and trust.
Hitomi Hibino
Assistant Company Secretary,
RELX
CEO
Business area CEOs
CR
Forum
Global
Head of ESG
and Corporate
Responsibility and
CR Team
Compliance
Committees
RELX CR
networks
Board
Valuing our
people
Innovation
Boundary-
lessness
Passion
for winning
Customer
focus
Our CR governance framework
The CEO has responsibility to the Board for CR. They and senior
management, as well as the CR Forum, chaired by a senior leader
and involving individuals representing key functions and business
areas, set and monitor CR performance. This includes our annual
and longer term CR objectives, which reflect the views of a range
of internal and external stakeholders. More information can be
found on
www.relx.com/additional-cr-resources
. The Global
Head of ESG and CR provides formal updates to the Board and
engages on key issues with senior managers, who have
CR-related Key Performance Objectives (see page 126).
41
RELX
Annual Report 2022 | Corporate responsibility governance
The Code and a related supplemental policy also address
corporate political contributions, which are strictly prohibited
except in the US, where such contributions and activities are
permitted in certain states within allowable limits, if they comply
with stringent reporting and disclosure regulations. Employees
must obtain senior management approval for any proposed
corporate political contributions; all corporate contributions
are reported as required by law. Contributions are made on
a bipartisan basis to support the progression of the company
and no funds are donated for presidential campaigns.
We remained diligent in our ongoing efforts to comply with
applicable bribery and sanctions laws and mitigate risks in
these areas. Our anti-bribery and sanctions programmes
include detailed, risk-based internal policies and procedures
on topics such as doing business with government officials, gift
and entertainment limits, gift registers, and complex sanctions
requirements. Relationships with third parties and acquisition
targets are evaluated for risk using one or more of the following
methods, including; questionnaires, references, detailed
electronic searches, and Know Your Customer screening tools.
We monitor and assess the implementation of our anti-bribery
and sanctions programmes by continually reviewing and updating
our policies and procedures; conducting periodic programmatic
risk assessments; and conducting quality reviews and internal
monitoring and audits of the operational aspects of the programmes.
Helping our people pursue the highest
ethical standards
RELX is committed to fostering a culture of integrity. Doing the
Right Thing is more than a phrase at RELX, it embodies principles
that represent RELX’s culture of integrity. It includes ensuring
respect for one another, incorporating ethics in all our actions;
growing our business with integrity; holding ourselves and
each other accountable; and taking time to ask questions
and report concerns.
Doing the Right Thing is underpinned by clear actions for
employees, among them, being honest in our dealings with others;
respecting the law, our policies and colleagues; and courageously
speaking out for what is right. RELX in turn provides supporting
training and resources; enables a culture where people can feel
comfortable speaking up and experience no retaliation when they
do; and ensures concerns are listened to and acted on in a fair
and timely manner.
The pillars of our compliance activities are risk assessment;
policies and procedures; training and communications;
investigations and remediation; and monitoring of internal
controls. Accordingly, the RELX Operating and Governance
Principles describe the processes, policies, and controls to
manage risk. We engage in a legal and compliance risk
assessment twice a year to identify the top legal and compliance
risks to the Company.
Our Code of Ethics and Business Conduct (the Code) sets the
standards of behaviour for all RELX employees. Among other
topics, the Code addresses fair competition, anti-bribery,
conflicts of interest, employment practices, data protection and
appropriate use of company property and information. It also
encourages reporting of violations – with an anonymous reporting
option where legally permissible.
We offer several reporting channels to report Code-related
concerns, including an Integrity Line, available to employees,
suppliers, and other reporting persons. The Integrity Line is
managed by an independent third party and accessible by
telephone or online 24 hours a day, 365 days a year. The Integrity
Line also includes an Ask A Question feature which allows
employees to seek ethical advice before taking action. Reports
of violations of the Code or related policies are promptly
investigated, with careful tracking and monitoring of violations
and related mitigation and remediation efforts.
The number of reports received is publicly available on our
website
www.relx.com/investors/corporate-governance/
code-of-ethics
We maintain a comprehensive set of other compliance policies and
procedures in support of the Code and our risk areas, which are
reviewed and updated periodically to ensure they remain current
and effective. We formally audit the compliance programme,
including the Code, every three years. Our policies, including
our anti-bribery policies, also comprise part of our adequate
procedures for compliance with applicable laws. Full and
part-time employees receive mandatory training on the Code – both
as new hires and regularly throughout their employment – on topics
such as maintaining a respectful workplace, preventing bribery
and anti-competitive activity, and protecting personal and
company data. Mandatory periodic training covers key Code topics
and is supplemented by advanced in-person training for those in
higher-risk roles or regions. Temporary staff and apprentices are
also assigned training.
Key points:
Ethics and compliance policies,
training and tracking
Read our Code of Ethics and Business Conduct at
www.relx.com/
cr-downloads
To help employees comply with applicable laws, we
supplement the Code with other policies in areas critical
to our business, including anti-bribery, competition, data
privacy and security, trade sanctions and workplace conduct.
To facilitate understanding
of the Code and our other
policies we require cyclical
mandatory training and use
a range of communication
tools, including video
We maintain compliance
committees for all RELX
business areas which help
set and implement
compliance initiatives for
each business
We provide specialised
training and webinars for
colleagues in higher-risk
roles and locations
The Code stipulates
protection against
retaliation if a suspected
violation of the Code or
law is reported
99.5%
Completion rate for all
courses within 90 days
of issuance
13
Our Code of Ethics and
Business Conduct is
available in 13 languages
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
42
RELX
Annual Report 2022 | Corporate responsibility
We engage with our employees about compliance through
written communications and other media, such as short videos.
To celebrate Compliance Week 2022, we developed articles and
activities to demonstrate how employees contribute to our culture
of integrity by highlighting specific examples from across our
business areas.
Our Code of Ethics and Business Conduct supports the principles
of the United Nations Global Compact (UNGC) and stresses our
commitment to human rights. In accordance with the UN’s Guiding
Principles on Business and Human Rights, we consider where and
how we operate to avoid human trafficking and modern slavery in
our direct operations and in our supply chain.
Our Modern Slavery Act Statement, available at
www.relx.com
, provides further details.
As a signatory to the UNGC, we support its principles,
encompassing human rights, labour, environment and
anti-corruption, in key policies including our Code and our
Supplier Code.
Data privacy
Our commitment to data privacy remained a critical RELX priority
during 2022. We conducted audits on the use of our Risk products
by our customers, and continued to ensure that we structured
relevant contracts to govern appropriate use of our products to
protect individuals.
Dedicated privacy teams implemented requirements for
compliance with emerging data protection regulations around the
globe. In addition, RELX continued to advocate for clear national
privacy laws that protect consumers, bolster consumer trust and
allow businesses to invest in data-driven activities that serve the
public interest.
Cyber security
We observed Cyber Security Awareness Month with both central
and business specific initiatives aimed at improving security
understanding for employees. This included an Ask Me Anything
session with Chief Information Security Officers from across the
Company and our fifth annual phishing awareness challenge for
employees. Furthermore, in recognition of International Fraud
Awareness Week, we hosted various employee events including
a quiz and daily challenges. Throughout the year, we also
contributed to industry knowledge by sharing appropriate
learnings with the external security awareness community.
Pensions and investments
The Statement of Investment Principles for our UK pension
scheme demonstrates that the Trustee recognises that
consideration of financially material factors, including ESG and
climate risk, is relevant at different stages of the investment
process. As long-term investors, the Trustee embeds
consideration of ESG factors in its investment decision-making as
ESG factors can have a material impact on risk and return. The
Trustee has produced a Responsible Investment Policy which has
been shared with all managers. Throughout the year, the Trustee
Board received presentations from ESG experts and set up a
dedicated Responsible Investment Sub-Group.
Corporate responsibility issues are also relevant to the
investment decisions made by RE Venture Partners, RELX’s
corporate venture arm. RE Venture has invested in sustainable
food production, environmental education and the creation of
inclusive content.
2022 PERFORMANCE
Support of SDG 16 through global
activities for employees to raise
awareness of data privacy and protection,
including for Data Privacy Day
We increased activities during 2022 to bolster employee
awareness of our commitment to data privacy and how they
can act as responsible stewards of personal information
we hold.
To promote Data Privacy Day 2022 we created and distributed
a promotional video by our data protection officers and Chief
Privacy Officer. On the day we also announced the winners of
the annual RELX Privacy Champions contest and sponsored a
Data Privacy Day quiz to spur colleagues to demonstrate their
privacy knowledge.
We undertook additional Data Privacy Day awareness
activities which included leadership messages and articles.
Employee awareness privacy promotions continued during
the year, with messaging in May about Privacy Awareness
Week in the Asia Pacific region and globally about the fourth
anniversary of the GDPR framework in the European Union.
2022 PERFORMANCE
Support of SDG 16 by expanding National
Institute of Standards and Technology
Cybersecurity Framework assessment
reporting
All four operating divisions completed independent
third-party assessments of their cybersecurity programmes
measured against the National Institute of Standards and
Technology Cybersecurity Framework during the year. RELX
continues to enhance its controls in the five pillars of NIST
CSF - Identify, Protect, Detect, Respond, and Recover. These
assessments involve questionnaires and inspection of our
cybersecurity governance and control implementation to
judge efficacy and maturity.
During 2022, we enhanced our security programme,
adding additional monitoring capabilities and implementing
more mechanisms to ensure threat intelligence is shared
in a meaningful way. We also enhanced our technical
resilience capabilities to enhance our ability to respond
to cyber-attacks.
43
RELX
Annual Report 2022 | Corporate responsibility governance
2022 PERFORMANCE
Support of SDG 16 through continued
advancement of African tax law
codification pilots
Taxes provide governments with the essential revenue
necessary for public services that benefit their citizens.
Governments need codified tax laws to know when, how much
and from whom they should be collecting. Citizens need
codified and transparent tax laws to understand their liabilities
and to advocate for fair collection and use of their remittances.
Unfortunately, in many countries around the world, it is difficult
for tax authorities and taxpayers alike to access tax law in a
complete, up-to-date and consolidated form.
Working with LexisNexis Legal & Professional South Africa
and the LexisNexis Rule of Law Foundation, in 2022, we
progressed a project to produce and maintain a set of freely
available consolidated tax laws in Ethiopia, our first pilot
country, with a view to making tax laws more transparent and
accessible to the government and its citizens. We aim to have
substantially completed the project and expand to a second
country in 2023.
2023 objectives
By 2030
Security
– SDG 16 (Peace, Justice and Strong Institutions):
Successful completion and testing of technical resilience
enhancement initiatives across business units
Privacy
– SDG 16 (Peace, Justice and Strong Institutions):
Increase efficiency in fulfilling privacy requests at scale.
Responsible tax
– SDG 16 (Peace, Justice and Strong
Institutions): Continue to advance African tax law
codification projects
Continued progressive actions that advance excellence in
corporate governance within our business and the marketplace
A responsible taxpayer
Taxation is an important issue for us as well as our stakeholders,
including our shareholders, governments, customers,
suppliers, employees and the global communities in which
we operate. We are transparent about our approach to tax.
At
www.relx.com/go/TaxPrinciples
we provide details about
our tax principles and global tax contribution – broken down
by regions and categories – along with our tax risk control
framework. There are also case studies showing how RELX has
made a positive contribution in tax-related areas to benefit society
as a whole. RELX is a signatory to the B Team’s Responsible
Tax Principles.
Globally, in 2022, RELX paid £495m in corporate taxes, but also
paid and collected much more in payroll taxes and indirect taxes.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
Relevant
SDGs
44
RELX
Annual Report 2022 | Corporate responsibility
Our people
One of our five RELX values is
valuing our people and for us that
means creating an environment where our employees can do their
best work and achieve our business objectives. This, in turn, helps
us be an employer of choice, so that we can recruit and retain the
best people.
We conduct regular employee opinion surveys across RELX and
our 2022 Pulse Survey had the highest response to date with
almost 30,000 employees responding. Our Net Promoter Score
is a key indicator, as it asks employees if they would recommend
working at RELX, which continues to improve. We have also
maintained employee engagement at 98%. Through these
surveys we continually ask for feedback and ensure we respond
accordingly to keep RELX an excellent place to work for all
our people.
All four of our business areas were included in the 2022
Comparably Best Global Company culture list, Elsevier was 5th,
LexisNexis Legal & Professional 18th, RX 31st and LexisNexis Risk
Solutions 36th. LexisNexis Legal & Professional was cited in
Comparably’s top 25 companies for career growth and LexisNexis
Risk Solutions and RX received awards for best leadership teams.
Kumsal Bayazit, CEO of Elsevier and Mike Walsh, CEO of
LexisNexis Legal & Professional, were cited as two of the best
CEOs for women and diversity.
Our workforce consists of over 35,000 people and seven years is
the average length of service. 97% of our employees are full-time
and 3% part-time, with the oldest employee being 86 years old.
1% of employees are temporary workers and we engage over
1,000 contingent workers. We estimate the total hours worked
by all employees to be more than 63m in the year.
In 2022, our total turnover rate was 15.5%; the voluntary turnover
rate was 13.1% and the involuntary rate was 2.4% reflecting the
buoyancy of international labour markets.
People
We owe our success to RELX’s talented employees, including researchers,
technologists, event managers, product engineers, data scientists and many
others. We depend on our employees and they count on us to create a fair,
challenging, rewarding and supportive work environment where they can
achieve their potential.
Ronda Bazley Moore
Chief Inclusion and Diversity
Officer, LexisNexis Legal &
Professional
Building a positive workplace,
one that is diverse and inclusive, is
important because it means we can
all be our best. It allows everyone
to use their knowledge and skills
to contribute to the success
of the business while achieving
their full career potential without
unnecessary barriers.
35,000+
Employees worldwide
7
Average length of service
in years
$15m
Investment in training
400,000
Number of training hours
across RELX
98%
Employee engagement
score in 2022 RELX
Employee Pulse Survey
500+
Number of mentoring
relationships through
NetWorx
45
RELX
Annual Report 2022 | People
Training and development
We are proactive in helping our people to develop. Each year
we undertake an organisational talent review that involves the
CEO and other senior leaders identifying employee advancement
opportunities. Employees have access to our global job board
and can view and apply for available openings across the world.
Enabling Performance is our approach to personal development
which reviews skills and achievements and identifies
opportunities for recognition and advancement. Enabling
Performance encourages regular and impactful performance,
development and career conversations for all employees.
In 2022, we invested approximately $15m in training (including
courses, seminars, one-to-one instruction and tuition
reimbursement) to develop the capabilities and future potential
of our people. RELX employees engaged in approximately 400,000
training hours in the year, including time spent on our online
learning platforms. We invest in leading digital learning for all
employees to support their personal and professional
development via mobile and other devices.
Career development is further supported by a global mentorship
programme, NetWorx, that involves participants from across our
business areas. The digital mentoring platform recommends
matches based on individual profiles and specific goals, creating
six month long mentoring relationships. In 2022, the platform
supported more than 500 active mentoring pairs.
By the close of 2022, approximately 100 of RELX’s top executives
had either completed a Management Development Process or had
their existing development plan revisited. This leads to precise
actions for attaining present and future career objectives;
provides an insightful view of the individual; and encourages
openness, as sensitive issues are addressed in a spirit of
confidentiality and respect. The Management Development
Process involves in-depth interviews to assess strengths and
development areas; agreeing an action plan with the individual
and their manager on present role, skills and knowledge; and
future career aspirations. Plans may include gaining international
experience, focused coaching and engagement outside RELX
where appropriate. Progress against development plans is
regularly updated and checked by the CEO.
Reward
2022 PERFORMANCE
Advance reward education for people
managers encompassing pay equity
Cascade newly developed, on-demand, reward eLearning
modules to managers for real time access.
Reward education for people managers encompassing pay
equity took place across our four business areas in the year.
In addition, we launched on-demand reward eLearning
modules for all people managers, with content added to
onboarding materials for new managers.
We made online learning tools available across the business,
which were referenced as part of the reward cycle and other
leader and HR communications.
We have robust and well-established reward mechanisms across
RELX, with a strong emphasis on performance, fairness and
equity. In 2022, we introduced a programme of reward education
for people managers to explain how our reward mechanisms
operate and help build trust in reward.
In 2022, 45% of employees were eligible for variable pay through
an annual incentive or commission plan.
We operate a number of different employee share plans including
all-employee share purchase programmes in the UK and the
Netherlands, which together represent approximately 20% of our
employees. We will be rolling out a similar plan in the US in 2023,
subject to shareholder approval at the 2023 AGM.
Performance targets associated with CR are embedded within our
annual incentive framework to progress our annual and
multi-year CR objectives.
Well-being and support
The global pandemic has had a long-lasting effect on how people
work and we have many employees who are working from home
most of the time. With this in mind, we have prioritised the physical
and mental health of our people. We highlighted dedicated health
and well-being resources available to all employees across RELX,
maintained a network of more than 130 Well-being Champions,
and marked World Wellbeing Week 2022 with events which
highlighted health and well-being programmes and resources
available to all RELX colleagues, including the Headspace app with
mindfulness resources, and virtual fitness classes.
We offer employee assistance programmes to all our employees,
providing professional counselling to help them and their family
members with personal or work-related issues that may impact
their health or well-being. This service is available 24 hours a day,
365 days a year.
Leave benefits
Our global HR information system covers approximately 99%
of our workforce, allowing us to track absence. In the UK and the
Netherlands, there was an absence rate of 1.14% (number of
unscheduled absent days out of total days worked in 2022) for
reasons such as sick, compassionate and unpaid leave.
In the US, there were 1,381 cases under the US Family Medical
Leave Act, which provides up to 12 weeks of unpaid job protected
leave in a 12-month period, including for the birth or adoption of a
child, or to care for a family member or an employee’s own serious
health condition. RELX also offers a Modern Family Leave benefit
to eligible US employees which provides up to 14 weeks of paid
leave following the birth of a child or the placement of a child with
the employee for adoption and up to 8 weeks of paid leave to care
for an eligible family member with a serious health condition.
In the US, maternity leave is 14 weeks at full pay. In the UK it is
26 weeks’ ordinary maternity leave.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
46
RELX
Annual Report 2022 | Corporate responsibility
Inclusion and diversity
2022 PERFORMANCE
Progress RELX inclusion goals, including
reviewing external best practices for
voluntary disclosures of gender identity,
sexual orientation and disability
During 2022, we progressed our inclusion goals by
introducing targeted initiatives encompassing training,
development and recruitment. We commenced reviewing
external best practices for voluntary disclosure by employees
of personal diversity information. That review is continuing in
2023. In 2022, Elsevier launched a self-ID project for authors,
building on an industry-wide initiative colleagues helped
develop. More than 2.7m researchers chose to provide
gender, race and ethnicity data as part of Elsevier’s journal
article submission process.
The importance of inclusion and diversity is enshrined in our
Code of Ethics and Business Conduct. We prohibit discrimination.
We recruit, hire, develop, promote and provide conditions of
employment without regard to race, colour, creed, religion,
national origin, gender, gender identity or expression, sexual
orientation, marital status, age, disability or any other category
protected by law. This includes accommodating employees’
disabilities and religious beliefs and practices.
At RELX, inclusion and diversity is also about encouraging,
supporting and promoting diversity of thought across the Company.
This includes diversity of national origin, ethnic, and cultural
backgrounds, as well as the other characteristics mentioned
above such as gender, race, sexual orientation and religious
beliefs. We derive competitive advantage from the breadth of
backgrounds, diverse perspectives, opinions and differing ways
of thinking that our employees bring to everything they do.
Our Inclusion and Diversity Policy builds on this and explains our
commitment to a diverse workforce and an environment that
respects individuals and their contributions. Practical action is
driven by our inclusion strategy, and we have an Inclusion Council,
composed of leaders from across our company, supported by a
broader Inclusion Working Group with 240 participants. Our
2020-2025 inclusion goals, covering all aspects of diversity,
guide our inclusion and diversity efforts. During 2022, we have
progressed our inclusion goals through targeted initiatives
encompassing training, development and recruitment.
Employee Resource Groups
RELX Employee Resource Groups (ERGs) encourage employees
to collaborate, advocate and engage communities, furthering
inclusion and diversity at RELX. In recognition of the important
roles ERGs play in advancing a culture of inclusion, all employees
have two days paid time-off per year to use for ERG-sponsored
activities. In 2022, ERG recorded hours recorded grew to 11,000
hours. In 2022, certain ERGs were consolidated to maximise focus
and impact. There are currently 69 active networks, focused on a
range of inclusion priorities, including gender, race, ethnicity, age,
LGBTQ+ and disability. Over 2,400 employees participated in our
virtual inclusion and diversity conference, Be You, Belong, which ran
over two days during Diversity Awareness Month. The event focused
on how we can cultivate a sense of belonging across the Company.
The event featured 97 speakers and over 21 hours of coverage,
receiving an average employee satisfaction score of 9.3/10 and
attendance increased by 124% compared to the previous year.
50%
50%
Gender of employees
Men
Women
44%
56%
Gender of managers
Men
Women
31%
69%
Gender of senior leaders
Men
Women
57%
20%
23%
Employee age split
30 and under
31 to 50
51 and over
240
Participants in our Inclusion
Working Group
99.1%
RELX score in Workplace
Pride Benchmark (LGBTQ+)
69
Number of active Employee
Resource Groups
11,000+
Employee hours engaged
in ERG sponsored activities
47
RELX
Annual Report 2022 | People
13%
8%
7%
<1%
2%
4%
66%
Ethnicity of US/UK employees
Unknown
Other
White
Black
Asian
Hispanic
Multi-Racial
or Indigenous
4%
10%
9%
<1%
2%
3%
72%
Ethnicity of US/UK managers
Unknown
Other
White
Black
Asian
Hispanic
Multi-Racial
or Indigenous
2%
7%
7%
<1%
1%
2%
81%
Ethnicity of US/UK senior leaders
Unknown
Other
White
Black
Asian
Hispanic
Multi-Racial
or Indigenous
Gender
In 2022, the gender diversity of our senior leader population
increased from 30% women at the end of 2021 to 31%, while our
women people managers remained at 44%. With respect to our
Board of Directors, at year end 2022, women comprised 40% of
the Board, and Non-Executive Director Marike van Lier Lels
serves as our Workforce Engagement Director.
We have implemented a range of initiatives to enhance the
career development opportunities for women. In Risk, a
bespoke Leadership Development Programme, Ignite &
Accelerate, provided mentoring, coaching and sponsorship for
16 high-potential women in the year to move cross functionally
and vertically, as well as into commercial roles. Since the
programme started in 2019, 60% of the 45 women involved have
been promoted, with a 90% retention rate. Risk also continued
their women’s mentorship programme which connected 400
people in the year. Elsevier kicked off the fourth cohort of the
Developing Talent for Gender Equity programme and won the
Women of the Future Corporate Award, with specific recognition
for prioritising and aligning internal and external-facing initiatives
encompassing advancing inclusion, diversity and equity in
research and healthcare.
With some 10,000 technologists in our business, we need to
attract the best talent for our current and future work. Of the
approximately 8,000 technologists we employ, 25% are women.
In 2022, we continued our Women in Technology internal
mentoring programme. Senior women and men in technology
serve as mentors to help high-potential women technologists
advance. In 2022, there were 248 participants, a 143% increase
from 2021. RELX is a signatory of the Tech Talent Charter, a
non-profit organisation working to address inequality in the UK
tech sector and in the year we contributed data in support of their
Diversity in Tech report.
RELX is a signatory to the Women’s Empowerment Principles,
a United Nations Global Compact and UN initiative to help
companies empower women and promote gender equality.
We comply with employee-related reporting requirements, and
our business areas publish UK gender pay gap reports as required
by UK legislation. They can be found at
www.relx.com/
corporate-responsibility/engaging-others/policies-and-
downloads/local-reporting-requirements
.
We marked International Women’s Day 2022 with a panel
discussion featuring Feraye Ozfescioglu, CEO of the World
Humanitarian Forum, Philippa Scarlett, Head of Global
Government Affairs at RELX, and Gemma Hersh, SVP, Global
Academic and Government Sales at Elsevier who discussed
their career paths, future ambitions, and practical advice to
help women achieve their ambitions.
Race and ethnicity
Ethnic minority representation in the US and UK was 27%,
two key jurisdictions which account for approximately 57% of
our employee base. Ethnic minority senior leaders increased
to 12% while ethnic minority managers stayed consistent at
19% in 2022. With respect to our Board of Directors, at least one
member is from a minority ethnic background, in line with the
UK Parker Review.
We have a number of initiatives underway that focus on race and
ethnicity. Risk launched Emerge and Evolve, a talent development
programme for ethnically diverse talent with 31 employees in the
first cohort. The programme will enable visibility, enhance core
leadership skills and offer coaching to prepare employees for
more senior roles in the organisation.
Elsevier implemented a Developing Talent for Minority Equity
programme for 36 colleagues from nine countries designed
to expand opportunities in senior leadership for
underrepresented talent.
In 2022, Legal expanded its fellowship programme in partnership
with its African Ancestry Network ERGs and the LexisNexis Rule
of Law Foundation, with a 50% increase to 18 fellowship
candidates and funding of $180,000 to Historically Black College
or University Law School Consortium students. The Fellows spent
nine months developing their leadership skills and working with
LexisNexis colleagues on projects focused on eliminating systemic
racism in our legal system and advancing the Rule of Law.
Exhibitions partnered with two organisations to increase the
diversity of its talent searches: OneTen in the US sources Black
candidates who have outstanding work experience but no college
degree and Black Young Professionals (BYP) Network helps raise
awareness of the RX brand in order to attract Black talent to the
business. Senior leaders from RX in the UK and US will mentor
ten BYP job candidates through the network’s Mentorship
Programme in 2023.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
48
RELX
Annual Report 2022 | Corporate responsibility
Inclusive workplace
Across the business, inclusive workplace training encompassed
inclusive leadership, as well as unconscious bias with small group
discussions to highlight situations that can adversely impact
colleagues and team achievements. In the year, psychological
safety facilitators delivered workshops for managers and their
teams. We capture psychological safety data through surveys with
a support process to aid teams with low scores and additional
intranet resources available for all participants.
Our Inclusion and Diversity Policy is available at
www.relx.com/cr-downloads.
2020-2025 Inclusion goals
Gender:
Increase the percentage of women in management,
senior leadership and technology roles over time
Race and ethnicity:
Increase the racial and ethnic diversity of
our workforce over time
LGBTQ+:
Foster an LGBTQ+ supportive workplace tracked
through employee surveys
Disability:
Foster a disability supportive workplace tracked
through employee surveys
Inclusive workplace:
Establish minimum global standards
in areas such as flexible working and leave benefits; continue
impactful global inclusion training and track effectiveness,
including through employee surveys; engagement on inclusion
across RELX, with leadership involvement and grassroots
employee participation, including through ERGs
LGBTQ+
RELX scored 99.1% in the 2022 Workplace Pride Benchmark,
receiving the Advocate designation for LGBTQ+ workplace
inclusion. We celebrated Pride Month 2022 with ERG activities
across the Company including participation in the London, Atlanta
and Chennai Pride Parades, and a panel discussion hosted by
Mark Kelsey, CEO LexisNexis Risk Solutions, on the importance
of LGBTQ+ visibility at senior levels.
We are a member of the Open for Business Coalition which
promotes the economic case for LGBTQ+ inclusion. In 2022,
we supported the Coalition’s South East Asia programme aimed
at improving the social and legal situation for LGBTQ+ people in
the region, gathering local data and insights to support
LGBTQ+ inclusion.
The 2022 Elsevier Rising TIDE (Tomorrow, Inclusion, Diversity, and
Equity) for Pride programme took place with 44 participants. New
and early-career Elsevier employees who identify as members of
the LGBTQ+ community are paired with more senior colleagues
who identify as LGBTQ+ or allies for mentoring and support during
a six-month period.
In 2022, RELX signed The Business Coalition for the Equality Act,
a group of leading employers in the US that support the Equality
Act, federal legislation to provide the same basic protections to
LGBTQ+ people as are provided to other protected groups under
federal law.
The Human Rights Campaign gathered signatures
from over 500 companies which have signed the Business
Statement Opposing Anti-LGBTQ State Legislation opposing
legislation aimed at restricting the rights of LGBTQ+ people.
Disability
Our Enabled ERGs champion disability inclusion across our
business areas through training, events and mentoring. Disability
Fundamentals is our online interactive training for managers and
colleagues to learn about disability awareness, disclosures and
accommodations.
The RELX CEO is a signatory to the Valuable 500, a global CEO
community revolutionising disability inclusion. In 2022, we
celebrated the International Day of Persons with Disabilities
with sessions looking at how to create a safe and welcoming work
environment for people with disabilities, including making
meetings accessible for all colleagues.
In 2022, Risk signed up to the Neurodiversity in Business charter,
a business forum for organisations to share industry good practice
on neurodiversity recruitment, retention and empowerment.
Elsevier launched their Enabled Mentoring Programme in the
year, matching seven pairs of employees who have a disability,
including those who are new to the organisation or those who have
been recently diagnosed with a disability. The aim is to foster
confidence at work. Elsevier also continued its partnership with
the Business Disability Forum which works to remove barriers
to inclusion.
Legal earned the top score of 100% in the 2022 Disability Equality
Index. It runs Project Empowerment, global training on how to
successfully embed accessibility into our products. In 2022,
13 training sessions focused on improving product inclusion
and since launching in 2021, over 300 people have been trained.
49
RELX
Annual Report 2022 | People
Health and safety
2022 PERFORMANCE
Review safety risk assessment and
training modules to cover three working
models – office, home and hybrid
In the year, we reviewed various modes of working
post-pandemic. We moved to a new training provider to allow
each user to complete just one risk assessment based on a
personalised profile of their working arrangements, whether
that is working from home, the office or hybrid. The new
system is also linked to our global HR information system,
Workday, to improve efficiencies. We will expand a 2022 trial
across the UK and Netherlands and other geographies.
The importance of employee health and safety is emphasised
in the RELX Code of Ethics and Business Conduct and also
in the RELX Health and Safety Policy, both available on
www.relx.com
. These documents commit us to providing
a healthy and safe workplace for all employees, as well as safe
products and services for clients. The CEO is responsible for
health and safety on behalf of the Board.
Good health and safety practice is reinforced through a network
of Health and Safety Champions reporting to business area CEOs.
They receive support from health and safety managers and other
colleagues in the business, encompassing bimonthly calls, a
Health Resources page on our intranet site, and an annual Health
and Safety Champions meeting. We consult with employees
globally on health and safety through staff and works councils.
Adopting a risk-based approach, we have dedicated safety
committees at relevant locations that meet monthly (or as
needed) to review safety concerns and any incidents.
We provide tailored health and safety training to employees
at higher risk of injury in the workplace, including warehouse,
facilities and sales employees who regularly lift or carry products.
In the US, we engage a third-party specialist to inspect locations
that had high incident rates in the previous year. Locations outside
the US must follow local regulatory frameworks and we continue
to harmonise local reporting with our global health and safety
reporting guidelines.
We provide employee support following any incident. For example,
in the US, we work with a third-party resource to assign a nurse
case manager to each complex or severe claim, who works with
the employer, employee and treating physician to get an employee
back to health in the shortest possible time.
With many employees continuing to work from home, we ensured
regular communication to help employees understand the
importance of good posture, correct home set-up and positive
working routines. Increased home working and reduced travel
due to the pandemic resulted in significantly lower accidents in
the year. There were no work-related deaths reported in 2022.
In our Exhibitions business we have specific safety risks, including
working at height, heavy lifting and using forklifts. At UK-based
exhibitions we run accredited health and safety management
training for operational staff to ensure they can appropriately
respond to any incident.
Working across many different countries where health and safety
standards vary is a challenge in the events industry. Together with
peers, Exhibitions endorses the g-Guide which sets out standards
to safeguard the health and safety of people working at or visiting
an event or exhibition, and uses illustrations to reinforce key
points and overcome language barriers.
2022 H&S performance (frequency rate)
2022
2018
2020
2021
2019
0.03
0.06
0.01
0.01
0.02
0
0.1
20%
40%
40%
2022 H&S performance (lost time)
cases by type
Manual handling/
repetitive strain
Slip trip fall
Use of tools
or equipment
Accident reporting covers 82% of employees
2023 objectives
By 2030
Inclusion
– SDG 10 (Reduced Inequalities): Expand Women in
Tech Mentoring programme with more pairings
Well-being
– SDG 3 (Good Health and Well-Being): Relaunch
Fit2Win global employee fitness competition
Continued high-performing and satisfied workforce
through talent development, D&I and well-being
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
Relevant
SDGs
50
RELX
Annual Report 2022 | Corporate responsibility
Improving customer outcomes
Our goal is to improve outcomes for our customers by providing
information-based analytics and decision tools for professional
and business customers that benefit their daily work.
In 2022, electronic products and services accounted for
83% of revenue, up from 37% in 2006.
Editorial standards
Maintaining the integrity of what we publish is vital to the trust of
customers and other stakeholders. Our Editorial Policy, available
to all staff (and publicly available on
www.relx.com/corporate-
responsibility/engaging-others/policies-and-downloads
),
makes clear our respect for human rights and encourages
pluralism of sources, ideas and voices.
To ensure the quality of scientific papers submitted to Elsevier,
primary research journals undergo peer review. This means that
once received from an author, editors send papers to specialist
researchers in the field. In most disciplines, this is done
anonymously. In some cases, the process is ‘double blind,’ where
both the reviewer and the author are anonymous, to limit bias
based on an author’s gender, country of origin, academic status or
previous publication history. It may also help ensure that articles
written by renowned authors are considered on the content of
their papers, rather than their reputation.
In 2022, Elsevier launched the Peer Review Workbench
(PRW), a new tool for the growing field of research on research.
Researchers and academics can use the platform to apply to
access metadata for manuscripts in Elsevier journals in order
to run systematic analyses on peer review processes in different
disciplines at scale. The PRW aims to address the need
for further transparency in, and evidence-based studies on,
the journal editorial and peer review process, in pursuit of
continuous improvement for research, science and society.
In the year, Elsevier enabled the automatic sharing of peer review
metadata by offering a feed of peer review information from our
submission and peer review system Editorial Manager (EM) to
Open Researcher and Contributor ID (ORCID) after the peer
review process has been completed. ORCID is a not-for-profit,
cross-publisher organisation that enables transparent and
trustworthy connections between researchers, their
contributions, and their affiliations. It provides researchers
with a unique ID which they can connect with their professional
information. The peer review section on an author’s record
lists their peer review activities across journals and publishers,
a simple way to showcase their reviewing work to peers and
institutions. Data is supplied directly by participating publishers
and cannot be entered manually, which ensures data is reliable
and valid.
Read more about peer review at
www.elsevier.com/
reviewers/what-is-peer-review
Customers
We recognise that the growth and future of our company is dependent on
our ability to deliver information-based analytics and decision tools in a
sustainable way to customers.
Artificial Intelligence (AI) has the
potential to transform lives,
improve diagnostics and deliver
education. It’s exciting to be able to
use it as a force for good but with
opportunity comes responsibility.
Our customers need to trust us, and
to know that we are thoughtful and
serious in how we deploy AI and that
is why our use of AI is governed by
our responsible AI Principles.
Elizabeth Crossick
Head of Government Affairs,
EU, RELX
83%
In 2022, electronic products and services accounted for
83% of revenue, up from 37% in 2006
51
RELX
Annual Report 2022 | Customers
Digital knowledge and innovation:
advancing customer goals
Across RELX, we work to address customer challenges through
digital innovation.
Risk
ICIS, part of Risk, is a global provider of chemical and energy
market intelligence. In 2022 ICIS launched Supplier Carbon
Footprints to help companies measure, manage and identify
opportunities to reduce global supply chain emissions for
chemicals and plastics with ground-breaking emission data by
supplier, plant, and product. Developed in partnership with
Carbon Minds, Supplier Carbon Footprints provides emissions
insights for 71 chemicals and plastics. Because emissions vary
widely between supplier, region and plant, the tool provides more
accurate findings than emissions calculated solely on a regional
or country basis. With Supplier Carbon Footprints, organisations
can clearly measure and compare the climate impact of their
supply chains.
Scientific, Technical & Medical
Elsevier continued to improve its flagship clinical reference
solution, ClinicalKey, to further streamline access to evidence-
based information clinicians need to make informed decisions.
In addition to single sign-on access added in the year, its
auto-suggest capability was improved to include direct links
to books and journals to enrich the user’s search experience.
126 new topics were added to the clinical overviews feature,
medical topic synopses to assist in decision-making at the
point of care, bringing the total to over 1,500.
Legal
In 2022, Legal enhanced Lexis+ with Fact & Issue Finder, a
practice-specific feature that enables legal professionals to build
legal strategies centred around the facts, issues and topics of their
case, allowing litigators to generate precise, actionable search
results and reducing time spent researching and compiling data
from multiple sources.
Developed using feedback from customer interactions, Fact
& Issue Finder mimics the processes that legal professionals
perform when researching cases, enhancing the research
experience with the use of search and machine-learning
technologies, streamlined workflows and data visualisations.
A single search can gather case law, practical guidance,
verdicts and settlements, expert witness analytics, and unique
practice-specific content, with the aggregated information
displayed via an interactive dashboard.
Exhibitions
RX enhanced the power of its face-to-face events by launching
Emperia in 2022, its smart, contactless mobile app for fast
lead capture. Exhibitors can record visitors’ contact details
and interests by scanning their badge. They can also rate leads
according to priority and download them in real time for faster
follow-up. At the 2022 PGA Show in Orlando, the industry’s biggest
annual golf business event, over three-quarters of exhibitors used
Emperia, generating over 40,000 connections. The average
number of leads was 97, and the highest over 600.
2022 PERFORMANCE
Support of SDG 17 by publishing and
launching the RELX Responsible Artificial
Intelligence Principles
As data science and artificial intelligence (AI) are increasingly
applied across RELX to improve customer outcomes and
business processes, we have created the RELX Responsible
AI Principles to guide their use. These were published in 2022
and are publicly available at
www.relx.com/corporate-
responsibility/engaging-others/policies-and-downloads
.
We also published a RELX position paper on AI to set out our
position on a number of public policy challenges related to AI,
and launched an address alongside the AI Principles which
anyone can use to provide feedback or raise queries:
ResponsibleAI@relx.com.
Publication of the AI Principles is an important aspect of being
responsible stewards of data, while supporting our customers
in making responsible decisions. They are being implemented
across our business areas. For example, the Responsible AI &
Data Science (RAIDS) team at Elsevier have trained over
50 RAIDS Champions in 2022, developed an algorithmic impact
assessment and produced a self-service resource hub to assist
team leaders in deploying the principles.
Because AI is evolving at unprecedented speed and scale, the
AI Principles will be updated over time, based on colleague and
customer feedback and experience, as well as industry and
legislative trends.
The RELX Responsible AI Principles
enable teams throughout the solution
lifecycle to create better customer
outcomes and build trust.
Emili Budell-Rhodes
Lead Evangelist, Engineering Culture
LexisNexis Legal & Professional
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
52
RELX
Annual Report 2022 | Corporate responsibility
Responding to customer needs
Listening to our customers allows us to deepen our understanding
of their needs and drive improvements. We do this through regular
surveys, customer dashboards and feedback mechanisms. With
input from customer insight teams across our Company, we
calculated a RELX-wide customer satisfaction metric showing
that in 2022, 87.5% of customers would recommend working
with RELX.
Access to information
In Primary Research we offer two separate payment models for
our science and medical journals to suit author preferences:
pay-to-read articles funded by payments for reading made by
individuals or institutions; and pay-to-publish (commonly known
as open access) funded by payments for publishing made by
authors, their institutions or funding bodies, with the research
freely available to read by all upon publication. We offer a range
of pay to read and pay to publish options, both subscription-based
and transactional. Nearly all of our over 2,800 STM journals
enable open access publishing. We welcome debate in
government, academic and library communities regarding the
mechanisms by which scientific outputs should be openly
available and continue to create new access options together
with industry partners.
Our authors also have the option to make their accepted
manuscript available. In addition, we are a founding partner of
Clearinghouse for Open Research (CHOR) which enables public
access to funded research. CHOR utilises publishers’ existing
infrastructure for discoverability, search, archiving and
preservation of scientific and medical research articles, and it is
now integrated into the ScienceDirect platform. Furthermore,
members of the public can read Elsevier’s peer-reviewed content
through walk-in access at public and academic libraries around the
world. Our ScienceDirect platform is available to the public through
onsite user access from any participating university library or UK
public library via the Access to Research programme.
Providing access in countries with low resources is a priority for
us. Through Research4Life, more than 10,500 institutions in over
125 low-and middle-income countries receive affordable access
to up to 194,000 peer-reviewed resources. Elsevier is a founding
partner, providing around 15% of the content in Research4Life,
as well as access to our abstract and citation database Scopus.
Since the programme began, our trainers have run over 90
workshops for Research4Life librarians to ensure that they
are equipped to make effective use of the resources provided
through the programme. The Head of the Elsevier Foundation
and VP Corporate Responsibility, served as Vice Chair of the
Research4Life partnership from June 2020 to June 2022.
Bringing science into society
We work closely with journalists to ensure that research findings
are accurately and effectively communicated to the public, and
that authors receive credit for their work. A number of journalists
receive free access to all Elsevier publications via Elsevier’s Media
Access programme.
Researchers who published an outstanding peer-reviewed article
that has significantly impacted people’s lives around the world, or
has the potential to do so, are recognised with the Elsevier Atlas
Award. The articles are made freely available and translated into
everyday language, while author interviews are made public to
encourage the dissemination or implementation of their findings.
Content is linked to the SDGs and is featured on the RELX SDG
Resource Centre.
2022 PERFORMANCE
Support of SDG 8 and SDG 16 by creating
tools to enable customer-facing staff to
share information about RELX and CR
During 2022, we launched a story summarising our approach
to CR with key performance information available to employees
and others at
www.stories.relx.com/corporate-
responsibility-2021/index.html
.
We have also worked with Elsevier’s Osmosis, an innovative
digital health education platform, on an engaging film to enable
our colleagues to discuss our focus on CR with customers and
peers. The focus is on articulating how CR underpins how and
what we do, beginning with our unique contributions as a
business, and what we can uniquely contribute to our
customers and society. It makes the link with the 17 UN SDGs
and highlights how we set, measure and report on annual and
longer-run ESG targets.
In the year, we also created a new SDG 16 (Peace, Justice and
Strong Institutions) gateway on the RELX SDG Resource Centre
which brings together examples of tools and projects across
the business that can help advance the Rule of Law.
See
www.sdgresources.relx.com/sdg-goal-16-peace-
justice-and-strong-institutions
.
RELX’s strong commitment to
advancing SDG 16 is a spur to corporate
action on the transformational
governance needed to foster integrity,
fairness and inclusion.
Michelle Breslauer
Senior Manager, Governance & Peace, UN Global Compact
53
RELX
Annual Report 2022 | Customers
We partner with the US National Library of Medicine on the
Emergency Access Initiative to provide temporary free access
to full text articles to healthcare professionals, librarians and
members of the public affected by disasters, providing essential
resources in times of emergency. The Elsevier information
centre on the novel coronavirus (SARS-CoV-2) and Covid-19 allows
researchers, clinicians and patients free access to early-stage
and peer-reviewed research on Covid-19. The Monkeypox
Information Centre is helping healthcare professionals navigate
outbreaks and includes evidence-based clinical resources,
including clinical overviews, patient education and drug
monographs; all content is freely available and regularly updated.
In the year, to aid Ukrainian researchers, Elsevier sponsored
personal research support via a grant administrated by the
Polish National Academy of Sciences. We offer free resources
to Ukrainian researchers via our Ukrainian Academic Support
resource page where researchers can access waived and reduced
author publishing charges for open access journals and get
access to publishing resources on Researcher Academy. They can
also register for free access to ScienceDirect, Scopus, and SciVal
as well as clinical resources such as ClinicalKey, Complete
Anatomy and Osmosis. To support Ukrainian journal editors, we
worked with the Polish Academy and the Ukrainian Council of
Young Scientists to deliver a workshop, covering editorial skills,
ethics, peer review and journal promotion.
Elsevier’s Library Connect programme, including a website,
newsletter, events and online social media channels, as well as
a new Library Connect Academy, provides library and information
science (LIS) professionals worldwide with opportunities for
knowledge sharing. As of 2022, we have 60,000 LIS professionals
globally subscribed to our Library Connect Newsletter,
a complimentary publication covering LIS best practices,
trends and technology. More than 28,000 people subscribed to
the Library Connect webinar channel and approximately 1,800
people attended live or recorded Library Connect webinars.
During 2022, the Library Connect website, containing articles,
infographics, videos and other resources, received over 30,000
visitors. The Library Connect website is currently ranked sixth in
the top 90 librarian blogs and websites for librarians by Feedspot,
a content aggregator for blogs and websites. Librarians and
researchers continued to enrol in Library Connect Academy
receiving training in a range of LIS fields.
Accessibility
We strive to empower all people, including persons with
disabilities, by ensuring our products and services are accessible
and easy to use by everyone. Our commitment to accessibility is
embedded across RELX and advances our Inclusion Policy.
We follow the Web Content Accessibility Guidelines (WCAG
2.1 level AA).
We maintain an Accessibility Policy that highlights industry
standards and tools to embed accessibility into our products
and our business operations. We apply best practice from the
RELX Accessibility Policy across hundreds of digital products
and websites.
Our Accessibility Policy is available on
www.relx.com/
cr-downloads.
Risk employees continued enhancing our A11yCAT tool to help
developers address accessibility bugs in real time.
Elsevier’s Health Education Systems Incorporated (HESI) Delivery
Operations team continued to work with HESI testing candidates
that register to take a HESI exam remotely via our remote
proctoring vendors. Since 2019, the team has processed more
than 600 candidate accommodation requests, ensuring that
these candidates have an accessible and inclusive experience.
In 2022, members of the Accessibility Working Group logged over
240 accessibility projects and Elsevier’s Global Books Digital
Archive fulfilled more than 3,300 disability requests, 87% of them
through AccessText.org, a service we helped establish. Elsevier
continued to enhance the accessibility of EPUB books by
partnering with Benetech to move toward Global Certified
Accessible status. Additionally, we continued work towards
providing fully inclusive journal articles and book chapters in
PDF format.
We worked with disability services offices, procurement officials,
and instructors across the world to provide Voluntary Product
Accessibility Template (VPAT) and Accessibility Conformance
Reports. Customers can also utilise the accessibility@relx.com
inbox to connect with an accessibility expert and make VPAT and
report requests. In the year, LNL&P’s Accessibility UX team
generated VPATs for 36 products (21 of them new). We also
offered a VPAT service package to help internal teams understand
where they rank against accessibility standards compared with
other products.
In 2022, ScienceDirect marked the 21st anniversary of including
people with disabilities in design and usability testing with a new
study to improve the user experience for people with visual
impairments and launched new accessible features such as the
first open access video journal, ScienceTalks, with closed captions
and a fully accessible media player, the AblePlayer. Colleagues
also released the first batch of accessibly tagged PDFs for 400
journal titles.
We promoted accessibility to outside companies and vendors
throughout the year. RELX accessibility teams partnered with
external content providers, including Highcharts, OAK, and
Pendo, to advance accessible solutions for public benefit. Elsevier
has collaborated with Highcharts for over seven years to
continually improve the accessibility of its widely used chart
library. In the year, we conducted research into scatter plots and
large data sets and experimented with sonification, tactile
displays and AI descriptions.
In 2022 we also celebrated the fourth RELX Accessibility
Leadership Awards to showcase employees who demonstrate
exceptional leadership in advancing accessibility, with winners
announced on the International Day of Persons with Disabilities.
240+
Accessibility projects logged by the Accessibility Working
Group
3,300+
Elsevier’s Global Books Digital Archive fulfilled 3,383
disability requests
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
54
RELX
Annual Report 2022 | Corporate responsibility
2022 PERFORMANCE
Support of SDG 10 by advancing cross-
business, on-demand accessibility training
2023 objectives
By 2030
Customer engagement
– SDG 17 (Partnership for the Goals):
Strengthen Corporate Responsibility and sales team
engagement
Quality
– SDG 8 (Decent Work and Economic Growth): Roll out
AI Principles across the business
Accessibility
– SDG 10 (Reduced Inequalities): Expand
Accessibility Champions model across RELX
Continue to expand customer base across our four business
areas through excellence in products and services, active
listening and engagement, editorial and quality standards,
and accessibility; a recognised advocate for ethical
marketplace practices
In the year, accessibility training took place across the business
areas.
Elsevier continued its belting programme in 2022 with
37 employees completing 14 training modules to receive yellow
belts. Over the last five years, 244 Elsevier colleagues earned
yellow belt accessibility status, equating to over 6,000 hours of
training across 25 locations. The accessibility team launched
an introduction to web accessibility module in the year, as part
of the onboarding process for new technology hires, and
hosted an accessibility guild with a Slack accessibility channel
for over 300 members.
To equip teams to use inclusive design best practices in their
daily work, Elsevier ran inclusive design training sessions open
to anyone whose work touches product, content, or platform
development. In 2022, over 190 employees participated,
including software engineers, content authors and product
managers. An Inclusive Design Toolkit also launched to provide
practical tools that can be embedded into product workflows
to create more opportunities for inclusion.
Legal conducted Project Empowerment training for teams
globally, with over 300 people taking part across 13 sessions
in 2022. Project Empowerment focuses on embedding
accessibility throughout agile workflows and ensuring
products and services comply with applicable accessibility
laws and international standards to support those with
accessibility needs.
Project Empowerment is an
important cultural change within our
organisation. By learning more about
accessibility, it empowers our agile
teams, and leverages shared strengths
through creative uses of technology
and better understanding of social
inclusion for people with disabilities.
Min Xiong
Chief of Staff, User Experience, and Chair and Founder
of LexisNexis Enabled Disability ERG
LexisNexis Legal & Professional
Relevant
SDGs
55
RELX
Annual Report 2022 | Community
RELX Cares, our global community programme, supports
employee volunteering and giving that makes a positive
impact on society. In 2022, we made a gradual return to
face-to-face volunteering and fundraising, while also
continuing remote activities.
The mission of RELX Cares is education for disadvantaged young
people that advances one or more of our unique contributions as
a business. Employees have up to two days’ paid leave per year for
their own community work. A network of over 240 RELX Cares
Champions ensures the vibrancy of our community engagement.
In 2022, we held the 12th Recognising Those Who Care Awards to
highlight colleagues who made outstanding contributions to their
community during the pandemic. The winners – eight individuals
and two teams – each received a cash sum to donate to the charity
of their choice and were awarded additional volunteering days.
Each September, we hold RELX Cares Month to celebrate our
commitment to our communities around the world. During the
Month, over 3,000 colleagues across the Company took part in
hundreds of volunteering and fundraising events.
During RELX Cares Month, colleagues engaged in activities
ranging from fitness challenges including Risk’s You Move,
We Donate; Elsevier India’s visit to a primary school to distribute
stationery items for low-income children; US legal colleagues
used Cares hours for beach clean-ups; and RX China colleagues
held a walkathon to support educational services for children
with autism.
In the wake of the Russian war in Ukraine, we gave approximately
$1m, including to UNICEF, Red Cross, World Central Kitchen,
the LexisNexis Rule of Law Foundation, and Hope and Homes
for Children, to provide vital humanitarian assistance. We also
provided refugee assistance and in-kind product access to people
affected by the conflict. Elsevier colleagues received three extra
RELX Cares day in order to volunteer for charities aiding Ukraine.
Community
Contributing to our local and global communities is a responsibility and
an opportunity.
I am passionate about giving back to
the community since I feel providing
education and healthcare to the
disadvantaged helps improve their
lives, society and the environment
in general.
240+
A network of over 240 RELX Cares Champions ensures the
vibrancy of our community engagement
The mission of RELX Cares is education for
disadvantaged young people that furthers
one or more of our unique contributions
as a business, including universal,
sustainable access to information.
Ganesh Venkatesan
VP, Orders Renewals and
Fulfilment and RELX Cares
Champion, Elsevier
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
56
RELX
Annual Report 2022 | Corporate responsibility
2022 PERFORMANCE
Continue to improve impact
measurement of our charitable donations
Giving
Our central donations programme aligns with the RELX Cares
mission. Employees serve as sponsors for charities seeking
funding, which must in turn indicate how they meet one or more
of RELX’s unique contributions as a business including protection
of society and reducing inequalities, advancing science and
improving health outcomes, furthering the Rule of Law and
access to justice and fostering communities.
RELX Cares Champions vote on the submissions using decision
criteria such as value to the beneficiary and opportunities for
staff engagement. In 2022, RELX Cares Champions donated
$250,000 to 22 charities supporting over 15,000 young people.
Projects included:
§
Creation of a children’s corner in a library in Zambia where
42% of the population are living in extreme poverty
§
Legal advocacy and education for low-income children and
families from underprivileged communities in Los Angeles,
USA
§
Improving learning for young people in rural India affected
by school closures during the pandemic
§
A weekly group intervention programme designed to support
pregnant and parenting teen girls in Philadelphia, USA
§
Providing girls in rural areas of Ghana with education in STEM
(science, technology, engineering and maths) education
§
A mentoring programme for at-risk young people in New South
Wales, Australia
The LexisNexis Rule of Law Foundation (LNROLF) continued work
with the Liberian charity, Agents of Positive Change, focused
on children’s rights and solving illiteracy. The LNROLF built on
an initial $10,000 RELX central donations grant with additional
employee contributions, which allowed a shipping container
to become a library for a rural Liberian village in 2021; in 2022,
in response to the local community’s changing needs LNROLF
worked with a US partner to train teachers and transform
the space into a school for 52 students.
In managing community involvement, we apply the same rigour
as in other aspects of our business. Following the B4SI – formerly
LBG methodology - a global standard for measuring and reporting
corporate community investment, we conduct an annual Group
Community Survey with RELX Accounting Services and RELX
Cares Champions. It divides our aggregate giving into short-term
charitable gifts, ongoing community investment and commercial
initiatives of direct business benefit.
During the year, we worked with B4SI, where we are members,
to ensure we effectively apply the organisation’s methodology for
valuing in-kind contributions; B4SI subsequently assured our use
of the reporting methodology. The assurance statement is
available at
www.relx.com/additional-cr-resources
.
We donated £6.5m in cash (including through matching gifts),
and £15.7m in products, services and staff time in 2022. Some
36% of employees, despite continuing pandemic restrictions in
some locations, were engaged in volunteering through RELX
Cares. According to 2022 B4SI data, the average volunteering
rate was 21% for our sector and 7.3% for all sectors.
We continued to engage in skills-based volunteering, applying
business knowledge and expertise to benefit communities in the
year. For example, in the US, Legal colleagues volunteered over
1,100 hours to support the second cohort of the LexisNexis African
Ancestry Network and LexisNexis Rule of Law Foundation
Fellowship. Volunteers supported Fellows in areas such as editing
and content development and helped them publish their projects
in the journal, Increasing Equity in the Legal System.
Measuring the impact of community
investment is vital to ensure that
a company understands the
difference they are making to the
communities they are supporting.
Clodagh Connolly
B4SI Global Director
As part of our ongoing efforts to understand the impact of our
charitable contributions, in the year we explored how we can
better capture outcomes resulting from our giving. We used
the annual Business for Societal Impact (B4SI) Global
Benchmark, to which we contribute, as a reference point.
The Benchmark provides insight into global trends in
community investment and allows us to assess our
performance against other companies.
We expanded impact data we collected to encompass a
broader range of our giving and will widen it further in 2023.
Impacts included how grants allowed charities to improve
existing services or provide new ones, spend more time
with clients, and improve their external profile.
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RELX
Annual Report 2022 | Community
Throughout 2022, we encouraged in-kind contributions, such as
product and equipment donations, aligned with our Product
Donation Policy (available at www.relx.com/cr-downloads).
We also contributed over 146,000 books to Book Aid International
(BAI) and Books for Africa worth over $10m. In addition, 25 Risk
colleagues helped with preparing content for publication and
testing their new website.
Community involvement
2022
Total
cost
£12.3m
2022
Total
value
£22.2m
88.9%
52.8%
8.7%
32.5%
2.5%
14.7%
Community investment
Charitable gifts
Commercial initiatives
14.7%
52.8%
32.5%
What we contributed in 2022 (cost)
Time
Cash
In-kind
Engagement
Given the ongoing need to work remotely in many parts of the world
in 2022, we continued to allow employees to use RELX Cares hours
to volunteer in creative ways, relaxing the requirement that they
only be used in connection with registered charities, and looked at
ways to encourage people to continue to volunteer.
In the year, we held our 17th RELX Cares Challenge to encourage
employees to use their two volunteer days to make a difference
and foster broader participation in the local community.
Colleagues from across the Company submitted ideas for new or
extended business-sponsored volunteer activities that fit the
RELX Cares mission and five were chosen by RELX Cares
Champions. Two winners were Elsevier Chennai, which won
$4,000 for the Hope Foundation to provide free English lessons
to primary school pupils and RX Ho Chi Minh which won $4,000 for
Go Vap District Association of the Blind which supports the visually
impaired to access education and employment.
We asked colleagues who used their RELX Cares hours to
record videos to encourage others to do the same. We used the
video clips for a launch film for our global RELX Cares Month
in September.
During RELX Cares Month, we resumed our Global Book Drive
competition encouraging colleagues to donate books for local
charities. Employees donated more than 2,500 books; Legal in
Paris collected the most books and won $500 for the charity of
their choice and the Risk office in Duluth collected the most books
per employee and won $1,000 for their chosen charity.
Jeffrey P Mladenik and Andrew Curry-Green
Memorial Scholarship
As a lasting memorial to our colleagues Jeffrey Mladenik and
Andrew Curry-Green, who lost their lives on 9/11, we offer
scholarships in their name to children of eligible employees.
Kira Young (left) is the daughter of Mani Young, VP Product
Management for Risk in Alpharetta, Georgia. At her high school,
Kira was the president of their chapter of the Family, Career and
Community Leaders of America, the National Honour Society
and Habitat for Humanity. She was an active member of a range
of societies and clubs including the Georgia School Boards
Association’s Youth Advisory Council, and she received a Human
Services/Education School Student of the Year Award. Kira has
created her own website focusing on Mental Health Awareness
called The Power of Okay. Kira is attending Emory University
in 2022.
Brennan Patterson (right) is the daughter of Brent Patterson,
a Technical Consultant for Risk in Springfield, Ohio. Brennan
graduated as valedictorian from her high school where she was
the president of the Leo Club, The National Honour Society and
The Student Government. Brennan is an active fundraiser and
advocate for congenital heart disease (CHD), hosting charity
5k runs, and staff vs student volleyball games to raise funds for
Conquering CHD Ohio, she also succeeded in getting a CHD
awareness week recognised by the Mayor of Springfield. Brennan
is attending Purdue University in Indiana where she is studying
psychology and forensics in the hopes of becoming a prosecutor.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
58
RELX
Annual Report 2022 | Corporate responsibility
2022 PERFORMANCE
Establish new strategic global fundraising
partnership
The RELX Cares Global Fundraising Partnership allows
us to make a significant, long-term positive impact by
collectively raising funds across RELX for a charity which
significantly benefits disadvantaged young people.
In 2022, we announced a new three-year partnership with
Save the Children. We have committed to raising $150,000
to support their work, which includes improving nutrition and
access to school meals; preventing child labour and child
marriage; and supporting children’s mental health. In 2021,
the most recent year for which data is available, their
endeavours reached approximately 43m children.
Colleagues will take part in local and global fundraising
events to help reach the target.
We will also work with Save the Children on emergency
response appeals. Since the partnership began in September
2022, we have made donations to support children affected
by floods in Pakistan and Hurricane Ian in the US and
contributed to their Children’s Emergency Fund which allows
them to respond to disasters around the world as they arise.
Save the Children is delighted to be
named as RELX’s new global
fundraising partner. We are looking
forward to working together to raise
vital funds to support our ambition
to help keep children safe, healthy
and learning, giving children around
the world the chance of the future
they deserve.
Caroline Whatley
Director of Partnerships, Save the Children UK
Impact
In accordance with the B4SI model, we monitor the short and
long-term benefits of the projects with which we are involved.
We ask beneficiaries to report on their progress to increase
transparency and engagement.
In addition, we survey RELX Cares volunteers on the impact
the programme has on their work via an automated survey
link following each volunteer activity. In 2022, we received over
15,000
responses; 90% of respondents said their motivation and
pride in the Company had increased as a result of volunteering.
88% said they had experienced a positive change in behaviour
or attitude as a result of volunteering.
2023 objectives
By 2030
Employee community engagement
– SDG 17 (Partnership for
the Goals): Create new opportunities to engage remote
workers in RELX Cares
Philanthropic giving
– SDG 17 (Partnership for the Goals):
Undertake fundraising for Save the Children to help achieve
the three-year target of $150,000
Through our unique contributions, significant, measurable
advancement of education for disadvantaged young people;
investments with partners for maximum impact
In 2022, for the third year, we helped the Ban Ki-moon Centre
for Global Citizens empower 17 young African leaders through
their Global Citizen Scholarship Programme in association with
the University of Bordeaux and MCI Innsbruck. The scholars,
change-makers in their communities and beyond, developed SDG
micro-projects, using the RELX SDG Resource Centre as a source.
Projects undertaken by this year’s scholars addressed 11 different
SDGs and ranged from portable filtration systems in Ethiopia, a
climate-smart agricultural waste management system in Ghana,
to eco-friendly permeable pavers to mitigate urban heat islands
in Kenya.
Relevant
SDGs
59
RELX
Annual Report 2022 | Supply chain
Managing an ethical
supply chain
RELX has a diverse supply chain with suppliers located in over
150 countries across multiple categories, including technology
(e.g. software, cloud, hardware and telecom), indirect (e.g.
consulting, marketing, contingent labour and travel), and direct
(e.g. data/content and production services, print/paper/bind
and distribution).
Given the importance of an ethical supply chain, we maintain a
Socially Responsible Supplier (SRS) programme encompassing
all our business areas, supported by colleagues with expertise in
operations and procurement and a dedicated SRS Director from
our global procurement function.
Monitoring suppliers
We have a comprehensive Supplier Code of Conduct (Supplier
Code), available on
www.relx.com
in 16 languages, which
we ask suppliers to adhere to and display prominently in the
workplace. It commits them to following applicable laws and
best practice in areas such as human rights, labour and the
environment. It also asks our suppliers to require the same
standards in their supply chains, including requesting
subcontractors to enter into a commitment to uphold the
Supplier Code. The Supplier Code states that, where local
industry standards are higher than applicable legal requirements,
we expect suppliers to meet the higher standards. Our SRS
programme is a key aspect of our work to prevent modern slavery
and human trafficking in our supply chain as described below.
Through our SRS database, we track suppliers with whom
we spend more than $1m annually, suppliers identified as critical
by the business, and those located in medium and high-risk
countries (as designated by our third-party developed supplier
risk tool) with a spend of more than $200,000 for the most recent
consecutive two-year period. The tool incorporates 11 indicators,
including human trafficking information from the US State
Department and Environmental Performance Index results
produced by Yale University and Columbia University in
collaboration with the World Economic Forum. In 2022,
80% of our global spend was risk assessed utilising the
supplier risk tool.
Supply chain
Our customers depend on us to provide them with ethically sourced and
produced products and services. Therefore, our suppliers need to meet
the same high standard we set for our own behaviour.
Kerri Dwars
VP Direct Procurement
RELX
An ethical supply chain provides
products and services utilising
socially responsible and sustainable
sourcing and operations. Working
with suppliers that align with our
ethical and environmental standards
is critical to RELX and our customers.
16
Our Supplier Code of Conduct is available in 16 languages
North America
59.9%
South
America
0.9%
Middle
East
0.6%
Asia &
Pacific
8.6%
Europe
29.3%
Africa
0.7%
RELX supplier locations (% of supplier spend)
Based on four quarters ending Q3 2022
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
60
RELX
Annual Report 2022 | Corporate responsibility
The tracking list changes year-on-year based on the suppliers
we engage to meet the needs of our business and/or changes in
country risk designations within our third-party risk tool. In 2022,
there were 724 suppliers on the SRS tracking list, 54 of which
were in high-risk countries and 557 in medium-risk countries.
This increase in suppliers on our tracking list compared to 2021
(359 suppliers) was due to changes in risk country classifications,
which reduced the proportion of suppliers that are signatories
to our Supplier Code or have an equivalent code (87% in 2022
compared to 96% in 2021) although the number of tracking list
signatories increased significantly. We work with non-signatories
to gain agreement to our Code, and/or assess whether they have
equivalent standards in place. In 2022, there were 4,467
signatories to our Supplier Code, or have an equivalent code,
representing an increase of 22% from the 3,670 signatories
in 2021.
We engage a specialist supply chain auditor who undertook
119 external audits on our behalf in 2022: 28 onsite and virtual
onsite audits and 91 desktop audits. During a desktop audit, the
supplier responds to an online questionnaire and uploads relevant
supporting documents followed by a third-party auditor review.
For virtual onsite audits, facility representatives wear a video
and audio source located in a lightweight harness to allow
remote interaction with a qualified auditor. The auditor can then
evaluate the facility, conduct interviews, and review the necessary
documentation in real time, just as if conducting an in-person
audit. During an onsite audit, the auditor will select employees
from a full roster to interview (and may select employees on the
work floor during the facility walkthrough). Employee interviews
are private and confidential and facility management is not
allowed to be present. All information gathered from employee
interviews is anonymised. When the auditor communicates
non-compliance to facility management, they are not allowed
to disclose information which could identify the employee or
employees to avoid retaliation against them, which is forbidden
in the Supplier Code.
Incidents of non-compliance trigger continuous improvement
reports summarising audit results and remediation plans.
The audit covers critical dimensions of the Supplier Code such
as: labour (including child/forced labour, discrimination,
discipline, harassment/abuse, freedom of association, labour
contracts); wages and hours (including wages and benefits and
working hours); health and safety (including general work facility,
emergency preparedness, occupational injury, machine safety,
safety hazards, chemical and hazardous material, dormitory and
canteen); management systems (including documentation and
records, worker feedback and participation, audits and corrective
action process); environment (including legal compliance,
environmental management systems, waste and air emissions);
anti-corruption and data security. During 2022 audit locations
included Australia, Brazil, Bulgaria, Canada, China, Croatia,
Cyprus, France, Hong Kong, India, Ireland, Malaysia, Netherlands,
Nicaragua, Pakistan, Philippines, Poland, Romania, Singapore,
United Kingdom, United States and Vietnam.
To minimise the risks of deforestation in our production paper
supply chain, we utilise the Forest Sourcing module of The Book
Chain Project, a shared industry resource for sustainable paper
we helped establish, to assess the forest sources of our papers.
By year end 2022, 99% of RELX’s production paper was graded by
The Book Chain Project as known and responsible (sustainable)
sources or certified to FSC or PEFC.
In the year we held a RELX Supplier Session, inviting suppliers
from across the world to join us in a conversation exploring
supplier diversity and business and human rights. The session
featured speakers from the UN Global Compact on their Business
and Human Rights Accelerator and MSDUK, the UK’s leading
supplier diversity advocacy network.
Promoting human rights through the
Supplier Code
As stated above, the Supplier Code sets out expectations for
our suppliers’ ethical conduct.
In accordance with the UK’s Modern Slavery Act 2015, our Supplier
Code specifically prohibits participation in any activity related to
human trafficking, based on the American Bar Association’s
Model Business Conduct Standards to Eradicate Labor Human
Rights Impacts in Hiring and Supply Chain Practices.
In 2022, we updated our RELX Modern Slavery Act Statement
(MSA), available from
www.relx.com,
which states how we are
working to avoid human trafficking and modern slavery in our
direct operations and in our supply chain.
The Supplier Code stipulates that, where required by law,
suppliers will have employment contracts signed with all
employees and it requires mechanisms for reporting grievances.
It additionally contains a provision on involuntary labour that
states unequivocally that suppliers cannot directly or indirectly
use, participate in, or benefit from, involuntary workers, including
human trafficking-related activities. Suppliers have access to our
new Modern Slavery Awareness training, which we make
available to suppliers in 16 languages. In addition, we held training
for RELX employees with the Slave-Free Alliance on the nature
and forms of modern slavery, how to recognise signs and
indicators, and steps to take if a victim or incident is identified. We
did not receive any reports or audit findings which violated human
rights or the Modern Slavery Act in 2022.
The Supplier Code states, “Failure to comply with any RELX
term, condition, requirement, policy or procedure…may result
in the cancellation of all existing orders and termination of the
business relationship between RELX and supplier.” It further
states that suppliers must not tolerate any retaliation against any
employee who makes a good faith report of abuse, intimidation,
discrimination, harassment or any violation of law or of the
Supplier Code or who assists in the investigation of any such report.
119
Independent audits completed, including onsite,
virtual onsite and desktop
3.8%
US spend with Veteran, Minority or Woman-owned
businesses. In total, including spend with small businesses,
15.4% of US spend was with diverse suppliers
61
RELX
Annual Report 2022 | Supply chain
Supplier Code of Conduct signatories
2022
2018
2020
2021
2019
3,082
3,202
3,457
3,670
4,467
0
5
,000
Target
Measure
Results
2020
Actual
2021
Actual
2022
Actual
Increase # of
suppliers as
Code
signatories
Total # of Code
signatories
3,457
3,670
4,467
Total # suppliers on
tracking list
412
359
724
% of suppliers on
tracking list as Code
signatories
91%
96%
87%
Continue using
audits to ensure
continuous
improvement
in supplier
performance
and compliance
# of independent
audits completed
99
111
119
Onsite/virtual
onsite
25
28
28
Desktop
74
83
91
Average overall
audit score (0-100)*
Onsite/virtual
onsite
85
92
94
Desktop
33
60
56
Continue to
advance the US
Supplier
Diversity and
Inclusion
Programme
% of total US spend
with diverse
suppliers (Veteran,
Minority,
Woman-owned, and
small businesses)
12.9%
12.9%
15.4%
% of total US spend
with diverse
suppliers excluding
small businesses
2.8%
3.1%
3.8%
* Average score for all audits scored within the year
2022 PERFORMANCE
Advance Supplier Diversity and Inclusion
Programme
We are committed to proactive engagement with suppliers
to ensure that our supply chain reflects the diversity of our
communities. In the year, we continued to focus on our US
supplier diversity programme while expanding outside of the
US. In 2022, 3.8% of our US spend was with Veteran, Minority
or Woman-owned businesses. In total, including spend with
small businesses, 15.4% of US spend was with diverse
suppliers. We use an independent supplier diversity database
to classify diverse suppliers.
Diverse-owned businesses interested in working with RELX
can register on the RELX Supplier Diversity Registration
Portal. While registration does not provide preferred
supplier status or guarantee of business, it provides visibility
within RELX to potential opportunities. Find out more at
www.relx.com/corporate-responsibility/being-a-
responsible-business/supply-chain.
Our supplier diversity and inclusion mission is to establish
and implement a sustainable Supplier Diversity and Inclusion
programme that creates value by:
§
promoting the sourcing of goods and services from
high-performing, competitive diverse suppliers
§
monitoring and measuring the Supplier Diversity and
Inclusion Programme effectiveness
§
participating in outreach programmes/activities to
support diverse suppliers
We received recognition as a WEConnect 2022 Bronze Top
Global Supplier Diversity & Inclusion Champion. Bronze level
represents a commitment to global supplier diversity and
inclusion through inclusive spend, policies and procedures.
Supplier diversity and inclusion was also featured during
RISE, our 2022 Employee Resource Group conference, to
highlight ways to engage diverse suppliers across RELX.
4,467
Suppliers who have signed
the Supplier Code or have an
equivalent code
724
Suppliers tracked
94%
Average score for all onsite/
virtual onsite audits scored
in 2022; higher than our
external auditor’s global
average of 81%
87%
Suppliers on the tracking list
who were either signatories to
our Supplier Code or have an
equivalent code, covering 97%
of the tracking list spend
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
62
RELX
Annual Report 2022 | Corporate responsibility
2023 objectives
By 2030
Responsible Supply Chain
– SDG 8 (Decent Work and
Economic Growth): Increase number of suppliers as Code
signatories; continue using audits to ensure continuous
improvement in supplier performance and compliance
Supplier Diversity
– SDG 10 (Reduced Inequalities):
Advance Supplier Diversity and Inclusion Programme
Reduce supply chain risks related to human rights, labour, the
environment and anti-bribery by ensuring adherence to our
Supplier Code of Conduct through training, auditing and
remediation; drive supply chain innovation, quality and
efficiencies through a strong, diverse network of suppliers
ALIGNING WITH GOOD PARTNERS
KMS Technology
Consistently named in Best Places to Work, KMS Technology
and KMS Healthcare, global companies with deep roots in
Vietnam, have built a culture of nurturing client success
while upholding social responsibility through established
standards. As software development and consulting firms,
the KMS entities are dedicated to people-centric values in
their operations and communities.
KMS Technology has attained ISO 27001, an international
standard to manage information security. It also holds a good
manufacturing practice certification, which designates that
company products are produced in alignment with
quality standards.
With its focus on healthcare, KMS Healthcare supported
hospitals during the Covid-19 outbreak. Teams in Vietnam
donated more than 175 ventilators to patients facing severe
medical conditions and 500 necessity packages with
protective equipment to medical workers.
The KMS Gives programme annually pledges 1% equity,
1% profits, and 1% time to its communities. KMS regularly
engages with non-profit partners such as 48in48, Fulbright
University Vietnam, and Per Scholas Atlanta to assist with
website development, mentoring and educational initiatives,
consistently encouraging individual and team volunteerism.
Despite economic uncertainties, KMS remains determined to
provide consistent global support to maximise the success of
its customers and partners while pursuing initiatives that can
make the world a better place.
When KMS was founded over a
decade ago, I wanted to ensure we
would foster community well-being.
We have built company morale from
the top, and I could not be more
proud of our teams for enforcing
our company values while finding
self-fulfilment in their philanthropic
efforts across the globe.
Josh Lieberman
President and Co-Founder, KMS Technology
Relevant
SDGs
63
RELX
Annual Report 2022 | Environment
A positive environmental impact
We make a positive environmental impact through our products
and services which inform debate, aid decision makers and
encourage research and development.
The CEO is responsible to the Board for environmental
performance; the CEOs of our business areas are responsible for
complying with environmental policy, legislation and regulations
and the CFO is our most senior environmental advocate. Our
Global Head of ESG and Corporate Responsibility engages with
the Board on environmental issues and our Environmental
Champions network, led by the global environment manager,
includes employees in key operational areas of the business. We
work with Environmental Champions and dedicated engineering,
design and real estate specialists to improve efficiency wherever
possible in our portfolio.
In 2022, we continued our support of the Climate Pledge, aiming
to achieve net zero across all carbon scopes by 2040 at the latest.
Part of the UN Race to Zero, we have committed to measure and
report greenhouse gas emissions, implement decarbonisation
strategies for emissions reductions and address residual
emissions with high-quality offsets. We offset the latter in Scope 1,
Scope 2 and Scope 3 (work-related flights, hotels, cloud
computing, home-based working and commuting), purchasing
offsets that met strict criteria and which are subject to
certification and reporting requirements. Details of
our net zero transition plans are available on pages 67 and 74 .
We support progressive environmental legislation and in 2022
continued our membership in the Aldersgate Group, an alliance
of leaders from business, politics and civil society, chaired by
former UK Prime Minister Theresa May, that drives action for
a sustainable economy. In the year, we chaired a panel discussion
on engaging SME suppliers on carbon reductions at RX’s All
Energy event in Glasgow, and became a member of the Net Zero
Supply Chains initiative with other companies and NGO partners
organised by Pineapple Partnerships.
We are a Taskforce for Climate-related Financial Disclosure
(TCFD) supporter and have expanded our TCFD disclosure
(see page 73) and remain signatories of We Are Still In, a network
of more than 3,900 businesses, universities, cities, states and
other organisations, committed to combatting climate change.
Environment
We work to increase the positive impact we have on the environment
through our products and services which provide essential insight and bring
stakeholders together, while also striving to reduce our environmental
footprint across our business and value chain.
David van Rossem
VP, Internal Climate
Programme
Elsevier
Sustainability is important for our
business, because a company that
ignores environmental issues is
simply not future-proof. Having a
genuine commitment to climate
action is important to our colleagues,
investors and customers; it is a golden
opportunity to continually operate
more efficiently.
Group certification
to ISO14001 Environmental Management System achieved
in 2022
74%
reduction in Scope 1 and Scope 2 (location-based) emissions
since 2010
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
64
RELX
Annual Report 2022 | Corporate responsibility
Our key environmental impact:
environmental knowledge
In creating our products and services we have an impact on
the environment in areas such as carbon emissions, energy
and water usage. But arguably bigger and more important is
our growing portfolio of environmental research, products
and services, which spread good practice, encourage debate
and aid researchers and decision makers. The most recent
results from Scopus show our share of citations in
environmental science represented 53% of the total market.
Risk
In 2022, ICIS launched their first hydrogen price assessments.
The ICIS European renewable hydrogen assessments are the
first structured to be compliant with European Union and UK
government standards for producing renewable hydrogen, and
provide market participants with confidence to make strategic
investment plans.
In the year, Cirium, our aviation analytics business, added new
carbon emissions capabilities to its comprehensive aircraft
fleet analysis solution, Fleet Analyzer. This expansion allows
lessors and other industry participants to consider the carbon
emissions of aircraft in their fleet decisions.
Cirium compiles one of the leading datasets on flight emissions.
As fuel consumption is considered sensitive information and is
not disclosed by airlines, Cirium developed a new methodology
based on fuel-burn that factors in an array of variables,
including actual flight time (which is more relevant than
distance in determining how much fuel was used) aircraft
model, aircraft age, engine type, number of seats, passenger
load, cargo load, weather, taxi time and runway idling or circling
in the air.
Scientific, Technical & Medical
Elsevier organised a free-to-attend webinar series, Becoming
Net Zero, which covered topics such as net zero pathways and
carbon capture innovation.
The Lancet issued their 2022 Lancet Countdown which tracks
the relationship between health and climate change across
43 indicators. The report found that in 2020 extreme heatwaves
were associated with 98m more people suffering from food
insecurity than the annual average between 1981-2010,
and that weather conditions are increasingly leading to the
spread of infectious diseases such as Dengue Fever, the
likelihood of which increased by 12% over the period.
To mark COP27 in Egypt, Elsevier produced a special issue on
climate change which was made freely available on the RELX
SDG Resource Centre. The special issue contained over 110
book chapters and journal articles covering a range of key
issues and innovations, as well as an episode with Corey
Peterson, Chief Sustainability Officer at the University of
Tasmania, Australia on the site’s World We Want podcast.
Legal
LexisNexis launched a new ESG microsite, based on the
LexisNexis Newsdesk platform, with more than 380
topics categorised to collate media reports including on
the environment.
In the UK, LexisNexis issued practice notes detailing legal
information and briefings on environmental topics such as the
2030 Climate and Energy Framework, planning, greenhouse
gas reporting and renewable energy.
Intelligize issued the results of an analysis on SEC comment
letters to evaluate the SEC’s approach to corporate climate
disclosure. It found that before 2021, SEC action focused
on information which had not been included in a public
disclosure, however from 2021, the focus shifted to accuracy
of reported information.
Exhibitions
Held in Glasgow six months after the UN COP26 Summit,
Exhibitions’ All-Energy 2022 tradeshow showcased solutions
for an array of renewable energy challenges. Over 500 speakers
took part in the free-to-attend conference, which featured
contributions from Scotland’s First Minister Nicola Sturgeon
and COP26 President Alok Sharma. Alongside All-Energy,
Dcarbonise, supported by the Scottish government and
Energy Saving Trust, offered end-users advice and technology
to help them decarbonise their buildings, businesses and
transport systems.
World Future Energy Summit (WFES), held in Abu Dhabi in
January 2022, spotlit five critical industries shaping
sustainability and driving investment globally. The Solar &
Clean Energy, EcoWASTE, Water, Smart Cities, and Climate &
Environment forums featured more than 275 industry leaders,
who shared their insights with Middle East investors, policy
makers, business leaders, project owners and technology
pioneers. Attendees could network, do business and share
knowledge about issues critical to sustainable development.
Exhibitions’ World Travel Market has the largest responsible
tourism programme of its kind in the world – an international
forum that aims to engage businesses, government, decision
makers and others in spreading sustainable practices and
ethical methods across the travel industry. Panel discussions
on sustainable and future travel at World Travel Market London
in November focused on the business case, and growing
customer demand, for responsible tourism; during the
programme, the 19th World Travel Market Responsible
Tourism Awards recognised 26 businesses and destinations
from 21 countries for having a responsible impact on tourism.
65
RELX
Annual Report 2022 | Environment
Environmental risks and
opportunities
The assessment, prioritisation and mitigation of environmental
risks are integrated into our overall company-wide risk
management process which considers current and emerging
risks to achieving RELX’s strategic goals. The Board assesses the
risk level and mitigation strategies and monitors implementation
by senior managers.
Our Environmental Champions network, together with colleagues
throughout the business, as well as external stakeholders such as
NGOs and investors, help us monitor and rank our environmental
risks and opportunities. They are reviewed quarterly by the
Environmental Checkpoint Committee, chaired by the CFO,
during the year.
Our Global Environmental Policy is available on
www.relx.
com/cr-downloads
and applies to all areas of the business and
states that we must consider, among other risks, those that
require legislative compliance, have significant cost implications
for the business and/or may affect our reputation. The Global
Environment Policy is supported by a global Environmental
Management System (EMS), certified to the ISO 14001
environmental standard.
We provide our facilities teams an online EMS Implementation
Pack containing documentation, training and audit materials to
aid the certification process. In 2022, we achieved Group
certification to the ISO 14001:2015 standard across the business.
The EMS covers the assessment of existing and emerging
regulatory requirements related to climate change, including
carbon pricing, taxes and additional reporting requirements.
It includes transition and physical risks and has informed our TCFD
report, including transitioning to a lower carbon economy and risks
related to physical impacts of climate change. See page 73.
Green Teams, employee-led environmental groups representing
53% of employees in 44 key facilities, help us implement our EMS and
achieve environmental improvements at the local level. We are also
aided by consistent dialogue with stakeholders including employees,
government and NGOs. We participate in sector initiatives, such as
the Publishers’ Database for Responsible Environmental Paper
Sourcing (PREPS), part of the Book Chain Project, and further our
understanding through environmental benchmarking activities, such
as CDP, where we were scored B in the Climate Change programme
and B in the Water Security programme.
Assessing our environmental impact
Although all our environmental impacts are important, we
prioritise climate change, minimising the use of natural
resources and waste from our own operations. Throughout
2022, we worked to reduce our direct environmental impact
by minimising the use of natural resources and efficiently
employing sustainable materials and technologies.
We consider upstream and downstream impacts as part of a
lifecycle approach to our operations. This includes risks related
to the forest sources and production of pulp and paper for our
printed products (see further information on page 71), while
opportunities include the donation of unsold or returned printed
products and IT equipment to development charity partners,
decreasing waste and increasing societal benefit, particularly
in less-developed nations. See page 70 for further details.
Third-party verification of our environmental data gives us
confidence in its reliability and improves our reporting.
Book donations: supporting education
While print is a relatively small portion of our revenue, we
must continue to minimise the impact of printed product.
We focus on techniques such as print on demand or print
run control to better match production to demand.
We donate excess product to charity partners such as
Book Aid International or Books for Africa to avoid waste
and benefit communities.
In 2022, RELX donated 146,000 books with a value of over
$10m to our charity partners.
Book Aid International
RELX has been a Book Aid International partner for over
30 years through regular book donations, financial support
and staff fundraising and volunteering. RELX donations of
medical books are critical to educating the next generation
of healthcare providers around the world.
In 2022, we donated 65,945 new higher education and
medical books, as well as a grant to help Book Aid
International and its partners create a Children’s Corner at
Mbala Library in Zambia. This will give local children a safe,
welcoming space where they can discover the joy of reading
and become readers. Librarians are also being trained to
support younger children and school students wishing to
use the space to study.
At a time when books and access to
information are needed more than ever, our
partnership with RELX in 2022 enabled us
to share the power of books with thousands
of the world’s most marginalised children
and adults. Thanks to RELX, we are
inspiring children to discover books
through our Children’s Corners project
in libraries, and ensuring medical
professionals have access to the books they
need to improve their knowledge and skills.
Alison Tweed, Chief Executive
Book Aid International
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
66
RELX
Annual Report 2022 | Corporate responsibility
2022 Environmental Performance
Absolute performance
Intensity ratio (absolute/£m revenue)
2021
variance
2022
2021
variance
2022
Scope 1 (direct emissions) tCO
2
e
5,644
-8%
5,211
0.78
-22%
0.61
Scope 2 (location-based emissions) tCO
2
e
44,051
-15%
37,270
6.08
-28%
4.36
Scope 2 (market-based emissions) tCO
2
e
8,321
8%
8,952
1.15
-9%
1.05
Total energy (MWh)
125,095
-6%
117,997
17.27
-20%
13.80
Water (m
3
)
183,575
-15%
156,734
25.34
-28%
18.33
Waste sent to landfill (t)*
150
-51%
73
0.02
-59%
0.01
Sustainable production paper (%)
98
1%pt
99
–
–
–
* From reporting locations only, excluding estimated data
Actual environmental data covers approximately 79% of occupied floor space based on electricity reporting. When we are unable to obtain reliable data, for example
from small serviced offices, we estimate energy consumption and water usage on actual data from our portfolio. In this way, our reported data covers all operations,
for which we have operational control for a 12-month period, December 2021 to November 2022.
Scope 2 (location-based) emissions are calculated using grid average carbon emissions factors for all electricity sources.
Scope 2 (market-based) emissions are calculated using supplier-specific carbon emissions factors (where available) for renewable energy purchases.
Climate change
Our Climate Change Statement supports the scientific
community’s opinion that human activity is contributing to
climate change; we support the Paris Agreement’s intention
to limit climate change to 1.5°C.
The RELX Climate Change Statement is available at
www.relx.com/cr-downloads.
Changes to working preferences following the Covid-19 pandemic
have contributed to decreases in reported carbon emissions since
2020, with many of our people working from home or on a hybrid
basis, with more limited business travel. To show trends, we
report data over a longer time sequence.
In the year, we added the one events venue managed by RX
to our climate reporting. The venue was responsible for
approximately 3% of Scope 1 and Scope 2 (location-based)
emissions in 2022. We have restated figures since 2015 to
include this space. See methodology notes for full details on
www.relx.com/additional-cr-resources.
We use the Radiative Forcing emissions factors provided by
the UK Department for Business, Energy and Industrial Strategy
for calculating business travel emissions which take into account
the full environmental impact of air travel, such as water vapour,
contrails and nitrogen oxide emissions.
Total Scope 1 emissions decreased by 8% in the year due to lower
levels of driving in the company car fleet. Car fleet emissions have
decreased 78% since 2010 and by 62% in overall Scope 1 emissions.
Scope 2 (location-based) emissions decreased by 15% in the year
due to office space consolidations, as well as lower power
consumption at our data centres.
Scope 3 business travel data covers all air travel booked and
collected through our travel provider, BCD. While resumption of
business travel in 2022 led to an increase in emissions over 2021,
since 2010, we have reduced travel emissions by 67%.
2022 climate change performance
Absolute Scope 1 and Scope 2 emissions
Scope 1
Scope 2 (location-based) emissions
2022
2015
2017
2018
2019
2020
2021
2016
7,984
97,152
92,925
8,636
85,528
8,930
75,194
8,126
69,616
8,498
53,740
5,217
44,051
5,644
37,270
5,211
0
120,000
tCO
2
e
Intensity Scope 1 and Scope 2 emissions
1.34
1.25
1.21
1.08
1.08
0.73
0.78
0.61
Scope 1
Scope 2 (location-based) emissions
2022
2015
2017
2018
2019
2020
2021
2016
16.27
13.48
11.63
10.04
8.84
7.56
6.08
4.36
tCO
2
e/£m revenue
0
20
67
RELX
Annual Report 2022 | Environment
Our Net Zero Commitment
As a signatory to the Climate Pledge, we are committed to
becoming net zero by 2040 at the latest. The main tenets of the
initiative, a community of more than 370 organisations working to
address climate change, is measuring and reporting greenhouse
gas emissions and implementing decarbonisation strategies for
significant emissions reductions.
Since 2010, we have reduced our Scope 1 and 2 location-based
carbon emissions by 74%. In the year, we submitted a carbon
target for verification to the Science Based Targets Initiative and
are awaiting their review. This aligns with the 1.5°C goal of the
Paris Climate Agreement and will require us to continue reducing
greenhouse gas emissions, maintain our internal carbon pricing
scheme, among other measures.
As stated, we compensated for emissions in Scope 1, Scope 2
and Scope 3 (work-related flights, hotels, cloud computing,
home-based working and commuting) by purchasing offsets in
2022 with investments in REDD+ forestry projects in Kenya and
Indonesia and a soil sequestration project in the United Kingdom.
We do not utilise offsets in our carbon performance reporting.
Road Map
RELX’s emissions are aligned with the 1.5°C pathway. We aim to
maintain this performance by pursuing further emissions
reductions in two primary ways:
1.
Company operations: By setting and achieving science-based
reduction targets that bring us to net zero no later than 2040.
Read more about our carbon reduction targets and our carbon
performance on pages 66-72.
2.
Value chain: By engaging with our suppliers on setting and
attaining their own science-based carbon reduction targets and
addressing emissions from other Scope 3 categories.
Read more about how we engage with suppliers on pages 59-62.
RELX will continue to advance wider action on climate change
through:
1.
The continued development of leading-edge products, services
and events on climate change and net zero transition
2.
Industry partnerships such as the Responsible Media Forum’s
Climate Pact and Net Zero Events, an initiative for the global
events industry
3.
Climate advocacy supporting responsible climate-related
initiatives through organisations such as the United Nations
Global Compact, The Aldersgate Group, and RE100
4.
Sharing climate knowledge with society through
offerings such as the free RELX SDG Resource Centre
www.sdgresources.relx.com
We will continue to advance our net zero efforts through an
internal carbon price payable by all business areas for Scope 1, 2
and select Scope 3 emissions. The current price is $30/tCO
2
e and
will increase over time.
Climate objectives are monitored by the RELX CR Forum,
chaired by the Head of Corporate Affairs, which meets twice per
year to agree and assess progress on ESG targets and objectives.
Read more about CR governance on pages 40-43.
Executive remuneration is linked to achieving environmental
targets including our Scope 1 and 2 carbon reduction target.
Read more about executive remuneration on page 126.
Scope 3
In 2022, we continued to advance our understanding of our
Scope 3 emissions beyond business flights, identifying key
areas, refining our methodology and our direct engagement
with suppliers. We used the RELX CO2 Hub, an internal
analytics platform, to help quantify our Scope 3 emissions.
Supply chain (excluding business travel, cloud computing
services and events)
We estimated indirect supplier emissions through an
improved methodology by collecting data on key suppliers
to derive carbon intensity factors. The factors are then
extrapolated by spend category to cover our full supply chain.
Our supply chain emissions were approximately two times
larger than our total Scope 1, Scope 2 (location-based) and
Scope 3 (flights) emissions in 2022.
Cloud computing services
While RELX continues to undertake energy efficiency
projects at its own data centres, some of the energy and
carbon reductions at these facilities have been achieved by
moving content to third-party cloud services. With data
provided by our primary IaaS cloud providers, we estimated
2022 market-based carbon emissions associated with all
cloud computing services provided to RELX to be
approximately 160 tCO
2
e, a significant reduction on previous
years as a primary supplier switched to renewable power.
Home-based employees
Using location-specific emissions factors and office
attendance data, we estimated emissions from home working
in the year to be approximately 12,000 tCO
2
e.
Commuting
Through RELX’s Environmental Standards programme,
locations are encouraged to develop a local travel plan.
Actions from travel plans include publishing information on
public transport links, promoting commuter loan schemes
and encouraging carpooling. Using daily refreshed office
attendance data, we estimated emissions in the year to be
approximately 4,000 tCO
2
e.
Events
RX has partnered with peers on Net Zero Carbon Events.
Launched at COP27 the initiative aims to develop
methodologies to quantify and reduce emissions associated
with the events industry. Attendance at one of our events can
replace the need for multiple business trips. We are looking
to better gather emissions data associated with an event’s
value chain, which we expect to be a sizeable component of
our Scope 3 emissions.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
68
RELX
Annual Report 2022 | Corporate responsibility
Energy
As our business predominantly occupies leased locations with few
opportunities for onsite generation, we rely on green tariffs and
renewable energy certificates (RECs) to purchase renewables
equal to 100% of our global electricity consumption. In 2022, RECs
were purchased from sources in Texas, including Peyton Creek
Wind Farm (pictured right).
Energy consumption at our offices decreased in 2022 due to
ongoing office space consolidation. Data centre energy decreased
in line with our long-term trend.
Energy use at our data centres is responsible for 39% of total
energy usage (offices account for 50% and warehouses 11%).
To advance data centre efficiency, we undertake hardware and
other upgrades and have dedicated engineering services.
We expect energy consumption at the event venue managed by
RX to increase in 2023, as in-person events continue to return.
2022 energy performance
Energy consumption (Absolute)
2022
2015
2017
2018
2019
2020
2021
2016
218,459
176,682
142,098
125,095
117,997
207,006
196,640
190,145
MWh
0
250,000
Energy leadership
We are a member of RE100, a global initiative bringing together
businesses committed to 100% renewable electricity.
59%
Reduction in energy and fuels consumption since 2010
69
RELX
Annual Report 2022 | Environment
RELX Environmental Challenge
2022 marked the twelfth year of the RELX Environmental
Challenge, focused on providing improved and sustainable
access to water and sanitation where it is presently at risk.
The $50,000 first prize winner was Caminos de Agua, a
Mexican organisation installing groundwater treatment
systems to remove harmful contaminants such as arsenic
and fluoride from groundwater supplies. The community of
Los Ricos (top right) have successfully adopted this low-cost,
community-managed system.
The $25,000 second prize winner was MSABI’s True Life Water
Points. Based in Tanzania, the organisation has developed a
low-cost mobile phone-based insurance model to ensure the
maintenance of local water systems (bottom right),
particularly in remote regions.
Winning the RELX Environmental
Challenge gives us the resources we need
to scale our solution for removing arsenic
and fluoride from drinking water which
will benefit more than 10,000 people in the
next five years. It will also allow us to
create a model which government and
other actors can replicate in communities
facing similar water quality challenges
around the world.
Dylan Terrell, Founder & Executive Director
Caminos de Agua
Water
The majority of our sites use water from municipal supply and are
in developed countries with a high capability for water adaptation
and mitigation.
Our water usage decreased 15% between 2021 and 2022 due to
ongoing office space consolidation and reduced use of cooling
water at data centres.
We engage with internal water experts who produce water-
related content for our customers. In 2022, we offered customers
35 peer-reviewed journals in aquatic sciences, including Water
Research.
68%
Reduction in water use from 2010 to 2022
2022 water performance
Water usage (Absolute)
2022
2015
2017
2018
2019
2020
2021
2016
359,766
346,408 344,304
226,509
183,575
156,734
353,932
353,486
m
3
0
400,000
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
70
RELX
Annual Report 2022 | Corporate responsibility
A new life for old equipment
We dispose of defunct hardware and other electronic
waste according to local regulations and recycle only
if equipment cannot be reused.
In the year, we continued our partnership with Camara
Education to donate equipment to help disadvantaged
students. Camara Education refurbishes our donated
equipment which it uses to establish eLearning centres
at schools in Ethiopia, Kenya, Tanzania and Zambia.
Any equipment that cannot be refurbished is
appropriately recycled.
In 2022, Camara Education generated over £53,000 from
equipment donated by RELX, enough to fully equip eight new
eLearning centres and train teachers to use them effectively.
Our 2022 donations saved almost 600 tonnes of CO
2
and kept
2,700kg of waste from going to landfill.
The ongoing support we receive from
RELX has helped enormously as schools
in Africa recover post Covid-19; it has
helped as we develop ambitious plans to
increase our impact, providing training
and resources to even more young
people in need.
Aidan Tallon
CEO, Camara Education
Waste
Total waste generated by our locations increased by 8% in 2022,
primarily due to the partial return of employees to offices. Of
waste generated at all of our locations, 82% was recycled and
93% diverted from landfill through recycling, composting and
energy generation from waste. Of the waste produced at our
reporting locations, excluding estimated data, 86% was recycled.
Where reliable measurements are not available, we calculate
waste based on weight sampling and by counting waste containers
leaving our premises. Although local municipalities most often
carry out sorting and recycling, we report all waste as going
to landfill unless we have robust evidence. For this reason,
performance against our recycling target is linked to our
reporting locations.
We do not produce any material amounts of hazardous waste.
We also continued to work toward our target to reduce waste sent
to landfill from reporting locations. In the period, waste sent to
landfill from reporting locations, excluding estimated data,
decreased by 51%.
We work to reduce packaging waste from our physical products.
In the UK, we provide information on packaging waste in line with
the UK government’s Producer Responsibility Obligations
(Packaging Waste) Regulations 2007. As a member of the Biffpack
compliance scheme, we report the amount of obligated packaging
we generate through selling, pack and fill and importation of
our products.
2022 waste performance
2%
82%
9%
7%
Waste (all locations)
Energy from waste
Recycling
Compost
Landfill
2%
86%
9%
3%
Waste (reporting locations)
Energy from waste
Recycling
Compost
Landfill
Reporting locations are those from which we are able to capture primary data
and excludes estimated data. ‘All locations’ includes non-reporting locations,
such as serviced offices, where data is estimated.
71
RELX
Annual Report 2022 | Environment
Paper
The quantity of production paper purchased in 2022 decreased by
30% over 2021 and by 57% since 2010 as we deliver more of our
products online, reflecting a circular economy approach to
conducting our business. Some of this year’s decrease is also
attributed to the use of the new reporting tool, see below. 99% of
RELX production papers were graded in PREPS as known and
responsible sources or certified to FSC or PEFC. We continue to
reduce waste and the environmental impact of producing our
products through measures such as smaller print runs, litho over
digital printing, print on demand and lighter papers where
possible.
2022 paper performance
Sustainable production paper
90
96
92
98
99
2022
2018
2019
2020
2021
0
100
%
Focus on sustainable paper
We are a founding member of the Bookchain Project’s paper
module (PREPS) and helped create the PREPS database
which identifies the pulps and forest sources of papers.
Each paper is given stars according to sustainability criteria:
one (unknown or unwanted material), three (known
and responsible), or five (recycled, Forest Stewardship
Council or Programme for the Endorsement of Forest
Certification certified).
The grading system was initially developed by PREPS
member Egmont UK Ltd and sustainability consultants
Carnstone, along with input from Greenpeace and WWF.
The RELX Sustainable Production Paper Policy commits
us to purchase only sustainable papers - graded three or five
by Bookchain, or certified to FSC or PEFC.
In 2022, we used approximately 102 tonnes of office paper.
To reduce paper use at sites with higher consumption levels,
we have set specific targets.
2022 PERFORMANCE
Launch new online reporting tool for
sustainable production paper
Printed products are responsible for 6% of revenues, a share
which has been declining as our digital product offerings grow.
The potential environmental impacts of paper use in our
products such as books or journals remains a focus area
for RELX.
In the year, we continued efforts to ensure the paper we use is
sourced from sustainably managed forests to eliminate the risk
of deforestation from our paper supply chain.
As members of the Bookchain Project we trace the forest
sources of the papers we purchase and restrict our supplier
to only those papers assessed as grade 3 or 5 (known and
responsible sources).
In 2022, we updated our Paper Policy to better support our 100%
sustainable paper target. We are committed to purchasing only
papers which are graded 3 or 5 in the Bookchain Project, or are
certified to FSC or PEFC.
Our historic challenge has been in tracking the papers we use
across our supply chain. It resulted in papers that did not meet
our evidence criteria to be classed as sustainable. To overcome
this, in the year we developed an online paper reporting module
using the Ecometrica platform we use to track our
environmental data.
This allows suppliers to log in regularly to update details of the
paper they use, automatically verifying sustainability
credentials against the Book Chain Project ratings and paper
certifications. It also enables a more accurate classification of
papers to ensure reporting is scoped to papers used in the
production of our print products.
The new reporting regime resulted in quarterly performance
reporting allowing procurement managers to identify papers
which could not be proven sustainable, to liaise with suppliers
for more detail.
This new approach means 99% of the papers we purchase are
now rated as sustainable, with ongoing efforts to increase this
to 100% by 2025 in line with our target.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
72
RELX
Annual Report 2022 | Corporate responsibility
Targets and standards
Our focus is on delivering continuous improvement in our
environmental performance year-on-year. We also set longer
term targets to reflect our ambition over time.
We set our carbon reduction target using the Science Based
Target Methodology designed by CDP, the UN Global Compact,
the World Resources Institute and WWF. It aligns our carbon
reductions with those deemed necessary by climate scientists in
order to avoid the worst impacts of climate change. Performance
against the target is measured in Scope 1 and Scope 2
(location-based) emissions, which means no carbon has been
subtracted from our emissions (including for the renewable
electricity we purchase).
Our carbon target applies to combined Scope 1 and Scope 2
(location-based) emissions as defined by the Greenhouse Gas
(GHG) Protocol. We continue to report on our indirect Scope 3
emissions. See Climate change above for more information.
We set other targets for reducing energy and fuel consumption,
increasing the amount of renewable electricity we purchase and
decreasing the amount of waste we generate.
In the year, the Risk Solutions Group Green Team held quizzes and
competitions focused on saving energy and reducing food waste,
single-use plastics and commuting emissions. The Elsevier
Amsterdam Green Team planted the first trees for a biodiverse
Elsevier forest in Overijssel, Netherlands. Colleagues around the
globe made donations: for every tree Elsevier plants in the
Netherlands, another is planted in Uganda’s Kibale National
Park. Elsevier’s Climate Action Board advise on key actions
and initiatives.
We are a founding signatory to the Responsible Media Forum’s
Media Climate Pact which requires signatories to set a
science-based carbon reduction target and commit to furthering
climate awareness and positive action through their content.
As a signatory to the SDG Publishers Compact, we advocate for
climate action within our products and the content we publish.
Environmental targets
Focus area
Targets – 2025
2022
performance
Climate
change
Reduce Scope 1 and 2 (location-
based) carbon emissions by 46%
against a 2015 baseline
-60%
Energy
Reduce energy and fuel consumption
of our locations by 30% against a
2015 baseline
-46%
Energy
Continue to purchase renewable
electricity equivalent to 100% of
RELX’s global electricity
consumption
100%
Waste*
Decrease waste sent to landfill from
reporting locations to 35% below
2015 levels
-94%
Production
paper
100% of RELX production papers to
be graded in PREPS as ‘known and
responsible sources’, or certified to
FSC or PEFC by 2025
99%
* From reporting locations, excluding estimated data.
Environmental
management
system
Achieve Group
certification to the
ISO14001 standard
across the business
Group certification
across the business
achieved in 2022
100% of new office
fit-outs to achieve RELX
Sustainable Fit-Out
standard by 2025
RELX Sustainable
Fit-Out standard
developed
Content
Meet our responsibility
under the Media
Climate Pact to
advance climate
knowledge through
our content
Content to support
climate awareness
and positive action
(see page 64)
We have reported on all emission sources required under the Companies Act 2006
(Strategic Report and Directors’ Report) Regulations 2013. We have included
emissions from all RELX operating companies. Environmental data covers 12 months
from December 2021 through November 2022.
We have used the GHG Protocol Corporate Accounting and Reporting Standard
(revised edition) and the data has been assured by an independent third party, EY.
2023 objectives
By 2030
Environmental responsibility
– SDG 12 (Responsible
Consumption and Production): Review global car fleet
policies with the aim to move to more fuel-efficient vehicles
Carbon reduction
– SDG 13 (Climate Action): Expand climate
risk assessment of products by the Climate Product
Working Group
Further environmental knowledge and positive action
through our products and services and, accordingly,
conduct our business with the lowest environmental
impact possible
73
RELX
Annual Report 2022 | CR Disclosure Standards
CR Disclosure Standards 1
Taskforce on Climate-related Financial Disclosure (TCFD)
RELX makes the following disclosures, consistent with the
recommendations of the Taskforce on Climate-related
Financial Disclosure (TCFD) All Sector Guidance as required
by the Listing Rules (Disclosure of Climate-Related Financial
Information) (No 2) Instrument 2021.
I. Governance
a. Board oversight of climate-related risks and opportunities
This statement has been reviewed and approved by the Board.
The RELX Board oversees the internal controls and risk
management practices as described on page 88. In addition,
climate risk and opportunity is subject to our CR governance
processes, see pages 40-43. In the year, the Company’s approach
to managing its climate change risks and opportunities was
covered by the Board at multiple points including in discussions
with and papers from the Chief Financial Officer (CFO),
responsible to the Board for performance against climate targets;
the Head of ESG and Corporate Responsibility; and the Head of
Group Insurance and Risk, as part of the RELX Audit Committee
review of the Company’s risk management process.
The result of these undertakings is that the Board has found
climate change has no material impact on RELX’s business in the
short term and will be unlikely to have a significant impact in the
medium and longer term. This is based on the review of RELX’s
low sector exposure to climate change and consideration of
climate change by the business in its strategy, activities, policies,
annual budgets, and business plans, setting and monitoring of
performance objectives, major capital expenditures, acquisitions
and divestitures.
Moreover, this view is predicated on strong climate action by the
business in 2022 and over time to mitigate the effect of transition
and physical climate change risks as described in this statement
and in this report.
b.
Management’s role in assessing and managing climate-
related risks and opportunities
Management in each business area is responsible for identifying
customer needs and developing relevant products related to
climate change. This ranges from launching and advancing
scientific journals with articles on climate change, energy
efficiency, and other climate-related topics; providing data and
analytics that support customers in reducing their environmental
impact; providing information and analytics on laws and
regulations related to the environment; and holding exhibitions
focused on renewable energy and low carbon solutions.
As RELX’s senior environmental champion, the CFO leads the
RELX Environmental Checkpoint Committee which sets strategy
and targets for measuring and reducing the group’s own
environmental impact. The group monitors performance
throughout the year, tracking emissions across all scopes and
performance relative to our target to reduce Scope 1 and 2
(location based) carbon emissions by 46% by 2025 against a
2015 baseline.
Management in each operational area support our environmental
goals. They are responsible for ensuring the continuity of the
group’s operations, including resilience to events caused by
extreme weather events. The Business Continuity Forum brings
together specialists from across the group to identify risks,
assess continuity and incident response plans, learn from
incidents and spread best practice.
We recognise climate change intersects with other environmental
and sustainability issues. For this reason, climate change is also
considered by the RELX Corporate Responsibility (CR) Forum,
with oversight by the Head of Corporate Affairs, a member of the
executive committee, and led by the Head of ESG and Corporate
Responsibility. The CR Forum meets twice per year and comprises
more than 100 participants including function heads and business
area leads from across the Company.
Management is informed about climate-issues through quarterly
business climate reporting, the certified ISO14001 Environmental
Management System and by engagement with internal and
external networks.
II. Strategy
a.
Climate-related risks and opportunities in the short,
medium, and long term
While we are in a low carbon intensive sector, the Board and the
Environmental Checkpoint Committee continued to consider our
climate-related risks and opportunities based on the scenarios in
section c below. Examples of our findings for various timeframes
are outlined below. The long term time horizon aligns with the
timeframe of the Paris Climate Agreement and the medium term
with our ambition to achieve net zero by 2040.
Short (<10 years) – Transition risks: Policy and legal requirements
relative to climate change will continue to increase as they have
over the last six years requiring us to ensure adequate disclosure;
there will be increasing stakeholder pressure requiring us to
ensure our products and services help accelerate the green
transition for our customers in carbon intensive and other
industries. Physical risks: Variability in weather patterns and
more frequent extreme weather events mean we must advance
both mitigation and adaptation strategies, including through our
business continuity planning. See page 77 for further information
on TCFD risks.
Medium (10 to 20 years) – Transition risks: There will likely be
increased pricing of GHG emissions and enhanced reporting
obligations, particularly in areas like supply chain emissions;
reputational damage could result if we do not show medium-term
results for meeting our obligations as a signatory of The Climate
Pledge and similar initiatives. Physical risks: Gradual increase of
average temperatures will affect businesses we operate in some
locations more than others, so we are developing country and
local response plans; mean temperature rise will likely affect our
suppliers as well and we will continue our due diligence related to
exposure in our supply chain.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2022 | Corporate responsibility
74
Long term (20 years +) – Transition risks: Stigmatisation could
result if our products and services are not seen as part of the
solution to climate change; this creates an opportunity for us to
increase offerings that support a lower carbon future. Physical
risks: Sea level rise will be varying but worse under the business
as usual scenario which will increase risk of business interruption
and damage to property; we recognise that this must be part of our
planning for the places where we will operate.
Risks and opportunities have been identified through the risk
assessment process, as described in Governance above and
detailed on pages 88-95, and through working groups such as
the Climate Product Group, CR Forum and other networks.
Our carbon action hierarchy is to first, reduce our carbon
emissions; second, to purchase increasing amounts of green
tariff energy as availability improves in global markets where
we operate; and third, to purchase certified renewable energy
certificates where necessary. Our performance reporting is
based on our gross emissions, and we also purchase high-quality,
verified offsets for residual emissions. We offset residual
emissions in Scope 1, Scope 2 and Scope 3 (work-related flights,
hotels, cloud computing, home-based working and commuting)
purchasing offsets that met strict criteria, and which are subject
to certification and reporting requirements. RELX is committed
to achieving net zero emissions following our carbon action
hierarchy across all scopes by 2040 at the latest, including
through our participation in The Climate Pledge, part of the
UN Race to Zero campaign.
b.
Impact of climate-related risks and opportunities on our
business, strategy, and financial planning
In 2022, energy represented less than 1% of the RELX cost base.
Although energy costs, and associated carbon costs, may increase
substantially, the impact on RELX’s financial results is likely to
remain limited.
While we do not believe climate risk will have a material impact on
our revenue, there is careful review within the relevant businesses
to assess impacts of providing products and services that help
customers with their energy transition as traditional sector
activities may not be viable in the longer term.
While we will continue to advance our efforts to achieve net zero,
we do not believe they will have a material impact on RELX
financial planning as described in Governance above.
We are using the climate scenarios we outline below to inform
strategy and financial planning at both the Board and business
area level. One example is our work with finance and other teams
across the business to price carbon, which we raised to $30 tCO
2
e
in the year (which will increase over time). Proceeds will be used
for, among other measures, internal climate action projects where
possible. In the year, we began a cross-business review of climate-
related product risks. Printed and face to face products,
responsible for 17% of total revenue, face more exposure to risks
such as weather-related logistics disruption than do our digital
offerings; see Principal Risks on page 88.
We are factoring climate change into strategy planning for our
portfolio as our scientific research information, analysis of
environmental law, tracking of carbon and recycling markets,
among other products and services, becomes increasingly
important for our customers, investors and other stakeholders in
their own responses to climate change. A small proportion of
customers operate in carbon intensive industries, including
agriculture and aviation, and we are committed to supporting
them, and those in other industries, with their energy transition.
There are no technology-related dependencies in realising
opportunities to help customers reduce their carbon impact,
though new opportunities may arise as technology advances.
In Risk, products such as Cirium, which serves the aviation sector, is
deploying an improved methodology for calculating flight
emissions; helping airlines better plan and conduct maintenance of
their fleet to ensure efficient operation; and identifying flight routes
for maximum occupancy so emissions per passenger are lower.
Elsevier is working to support clean energy. In 2022, Elsevier
launched a free report titled Pathways to Net Zero: global south
research in the transition to clean energy. The books team further
implemented its Energy with Purpose mission statement to only
commission new content that advances the energy transition and
reduction of CO2 emissions. Leadership made the decision to
close one hydrocarbon journal and transition remaining titles with
updated aims and scope, explicitly calling for research related to
UN Sustainable Development Goal (SDG) 7, Affordable and Clean
Energy. Colleagues are recruiting editorial board members who
specialise in specific renewable technology areas and working to
increase global south representation. Elsevier’s Geofacets, which
provides geological and geophysical data to academic and
corporate customers, only added new content, features and
functionality that support the energy transition and other related
SDGs, including sustainable mineral mining projects essential for
renewable technologies such as battery and solar cells. The
remaining use cases focused on discovering efficiencies in
established energy projects rather than new fossil fuel
exploration.
LexisNexis Legal & Professional provides LexisPSL Environment
to help clients identify environmental liabilities, understand the
commercial implications of environmental law and keep track
of current developments with daily news feeds on new cases,
legislation, and consultations as well as practice notes, Q&As,
and legal precedents.
RX holds World Future Energy Summit, a portfolio of events
specifically designed to combat climate change, in line with the
United Nations Sustainable Development Goals (SDGs) and the
Paris Agreement. Ahead of Batimat, the world’s largest event
dedicated to building and construction, RX embarked on a Low
Carbon Construction Tour of 12 European and African cities to
raise awareness of low-carbon solutions for the construction
industry. Of the approximately 400 shows we organise, less than
5% are in carbon-intensive industries.
All RELX business areas are contributing content to the RELX SDG
Resource Centre which provides free access to news, research,
tools and events on the SDGs, including SDG 7 Clean and
Affordable Energy and SDG 13 Climate Action. The site also
incorporates relevant content from key partners, including the
UN Global Compact (UNGC). In support of COP27, we released
a climate change special issue on the free RELX SDG Resource
Centre, a curated list of 110 journal articles and book chapters
to inspire positive environmental action and further
climate research.
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c.
Resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios,
including a 2°C or lower scenario
We have a threefold strategy to address climate-related risks:
1.Minimising our environmental impact through measures such
as energy efficiency, renewable energy, reducing waste and
other measures. This reduces our exposure to future legislation
and the rising price of carbon
2. Providing products and services which support customers
through their transition to a low-carbon economy. We anticipate
demand for these offerings to continue to increase over time
3. Supporting wider action on climate change through
collaboration, partnerships and initiatives such as the Digital
Impact of Media Project in conjunction with the Responsible
Media Forum, comprised of industry peers, and Bristol
University
The Board and the Audit Committee as part of robust risk control
measures covering our products and operations (including our
property portfolio and supply chain) ensures management of both
the transition and physical risks of climate change. The
Environmental Checkpoint Committee provides data on climate
change metrics and advice to the Board and also engages people
throughout the business. We gain and share best practice through
engagement with the UNGC, Race to Zero, Media Climate Pact,
Net Zero Carbon Events, and the Science-based Targets initiative,
among others.
We have considered three possible future scenarios and
estimated possible timeframes. They are not exact descriptions
of an expected future, but provide an outline description of each
based on certain assumptions. In scenarios where extreme
weather events occur more frequently, we may see increased
incidents that disrupt our operations, necessitating additional
measures, with some potential cost, to ensure our operational
resilience. However, in the context of RELX’s overall cost base,
we would not expect any such incremental cost to be significant.
We believe our strategy will be resilient even in the most
challenging future scenario.
Scenario 1: Business as usual (RCP 8.5). In this scenario, carbon
emissions continue to increase at current rates and temperature
increases exceed 4°C by the year 2100.
Short term: While some policies could be introduced to reduce
carbon emissions, action is limited. Some countries may price
carbon emissions and set standards for building and vehicle
energy efficiency.
Medium term: The availability of renewable energy may grow,
but the share of energy from fossil fuels will remain sizeable.
With this level of warming, extreme and severe weather events
will likely increase. Drought and increased precipitation will
impact agriculture. Severe storms will interfere with our supply
chains and logistics. The heightened need for innovation in
climate adaptation infrastructure may increase demand for
our environmental products and services for the scientific,
technical and other communities.
Long term: Rising sea levels will affect land use of coastal
and low-lying regions where we may have operations, requiring
investment to protect or relocate key Company facilities to
ensure business continuity. Significant government investment
will be required to mitigate the impacts, for example in
strengthening flood and coastal defences or securing reliable
water supplies, with follow-on effects for places where we and
future customers operate.
Political instability in some regions may increase as populations
compete for resources such as fresh water supplies and as large
numbers of people move from regions most heavily impacted by
climate change. Global economic uncertainty will likely become
the norm, with limited growth at best and decline at worst.
There will likely be significant health impacts as well. As
impacts become more apparent, public sentiment may favour
organisations such as RELX that have taken action to limit
the impact of climate change.
We would continue to pursue measures such as science-based
carbon reductions, implementation of innovative technological
solutions, carbon sequestration and (re)forestation, but without
the catalyst of global government investment in these areas.
Scenario 2: 2°C climate change (RCP 2.6). In this scenario, carbon
emissions are halved by 2050 and climate change does not exceed
2°C by the year 2100.
Short term: Countries would introduce more challenging carbon
targets as they update their Nationally Determined Contributions
under the 2015 Paris Climate Agreement. A range of new policies
would most likely be introduced across many countries to control
carbon emissions including carbon pricing, higher standards on
building and vehicle energy efficiency, with increased renewable
energy generation in global power grids. Such developments will
be reflected in our policies and procedures, and could increase the
demand for our climate-related products and services.
Medium term: There would likely be public and private
investment in greater carbon sequestration, capture and storage,
(re)forestation, and other measures – all of which would aid action
in these areas within our business.
Long term: The frequency of extreme weather events will increase
but not as much as under Scenario 1. There will still be disruption
to transport and logistics through storms, but sea level rise will be
more limited, as will costs we may face associated with adaptation
and mitigation projects. With reduced climate impacts, political
and economic instability will be lessened. Climate-related
migration will still be a factor but to a smaller degree than
anticipated under Scenario 1.
Scenario 3: 1.5°C climate change (RCP1.9). In this scenario,
to achieve a 66% chance of avoiding more than 1.5°C warming
by 2100, inclusive and sustainable development will be a key
consideration for policy makers with high levels of
international cooperation.
Short term: Emissions must peak in the early 2020s to achieve net
zero emissions by 2050, These ambitious carbon reductions would
be supported by new policies (with carbon prices reaching as
much or more than four times the price under the 2°C scenario)
and strong regulation.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
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Annual Report 2022 | Corporate responsibility
76
Medium term: Buildings will be subject to tougher standards to
achieve carbon reductions of nearly three times those under the
2°C degree scenario. Energy costs and associated carbon costs
could be higher than in Scenario 1 or 2, but this is unlikely to have a
major impact for RELX as energy is not a significant part of our
cost base as indicated above.
The transport sector will see significant change, with the majority
of vehicles powered by alternative sources. Nature-based
solutions to climate change, such as forestation, are also likely
to play an important role. In this scenario, RELX efforts to reduce
emissions, seek technology-driven carbon solutions and the
pursuit of nature-based decarbonisation will be magnified.
Long term: By 2050, approximately 80% of global energy should
be from renewable sources. Use of coal will decrease significantly
and oil will drop to very low levels by 2060, which may impact
the energy costs paid by RELX. After 2050, technologies such
as bioenergy and carbon capture and storage will need to be
widespread to remove excess carbon from the atmosphere
to ensure emissions are net negative.
III. Risk management
a.
Our processes for identifying and assessing climate-
related risks
The principal and emerging risks facing the business, which have
been assessed by the Audit Committee and Board, are described
on pages 88-95. The directors have considered the risk of climate
change to the business, including the positive contribution that
RELX makes through activities such as supporting academic
research, pricing recyclable materials, and enabling customers
to access our products electronically.
Climate-related risks are assessed as part of the RELX risk
management process. Risks are formally reviewed every six
months. Each risk is assigned a significance based on the potential
impact to revenue and the likelihood of that risk being realised.
As part of our Environmental Management System, climate risk
assessment covers transition and physical risks as described
above and below, and also includes the assessment of existing
and emerging regulatory requirements related to climate change.
These include carbon pricing schemes, taxes and additional
reporting requirements.
b.
Our processes for managing climate-related risks
Climate change responsibilities are assigned to key roles,
including the CFO at the executive level. Performance is monitored
and evaluated throughout the year by the environmental
checkpoint group, chaired by the CFO, and new programmes are
introduced as required to control climate-related transition and
physical risks.
On legislative and product trends, we gain insights through our
Government Affairs teams, external fora such as the Aldersgate
Group, and ISO 14001 environmental certification of our EMS. We
speak with experts in the business, our climate-related employee
resource groups including Green Teams and Elsevier’s Climate
Board, and learn through industry specific networks such as the
Responsible Media Forum’s Climate Pact and cross-sector
networks like the CR and Sustainability Council of the Conference
Board, chaired by our Head of ESG and Corporate Responsibility.
The business continuity programme, under the direction of the
RELX Business Continuity Forum, oversees mitigations of climate
change physical risks on our operations through business
continuity plans which include remote working and detailed
employee information.
We mitigate potential climate-related risks on our supply
chain through supplier management practices in the Global
Procurement team, the Supplier Resiliency Working Group,
the Business Continuity Forum and the Socially Responsible
Supplier programme, which includes supplier engagement on
their activities and policies, and a risk-based programme of
supplier audits and remediation.
High-level net zero roadmap
RELX carbon emissions are in line with the reductions required
to ensure climate change of no more than 1.5ºC.
To achieve net zero across all Scopes by 2040 at the latest, we
are following a broad programme of action to achieve further
reductions. This will include developing products and services
that support the transition to a net zero economy, alongside
actions to reduce our emissions.
Short term
§
Continue office space consolidation in line with the working
preferences of colleagues
§
Migration from owned data centres to more energy efficient
third party cloud providers
§
Purchase of renewable energy equal to RELX’s global electricity
consumption
§
Continue to quantify and report on Scope 3 emissions from our
supply chain and value chain
§
Engage suppliers to adopt 1.5ºC aligned carbon reduction targets
§
Purchase of high quality carbon offsets to equal our residual
emissions
Medium term
§
Transition company car fleet to zero emission (e.g. electric)
vehicles
§
RELX renewable energy purchases in more markets
§
Encourage purchase of renewable energy by suppliers
Longer term
§
Purchase of carbon neutralisation offsets for residual
emissions
IV. Metrics and targets
We aim to provide additional insight into revenue from products
and services designed for a low carbon economy in subsequent
disclosures. Scope 1 + 2 (location-based) emissions reduction
targets and energy reduction targets are set out on page 72 of this
report. The remuneration of the CEO and the CFO is linked to the
achievement of environment targets. These included in 2022,
a key performance objective to reduce Scope 1 and Scope 2
(location-based) carbon emissions by 36% against a 2015 baseline,
with 60% achievement; to reduce energy and fuel consumption
by 25% against a 2015 baseline, with 47% achievement; and to
purchase renewable energy equivalent to 100% of RELX’s global
electricity consumption. See page 126 for further details.
In the year, we entered into a new $3bn committed bank facility
which has pricing linked to three ESG performance targets.
The cost of the facility is reduced if two or more ESG targets
are achieved in each year and increased if two or more ESG targets
are missed in each year. The targets relate to carbon emissions
reduction, as well as increasing the unique users of the RELX SDG
Resource Centre and increasing the content available on the
RELX SDG Resource Centre. See page 39.
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TCFD Risks
We have considered climate-related risk areas detailed in the TCFD guidance as detailed below. While we do not believe climate-related
risks will have a material impact on our business, we have highlighted risks areas which present the most opportunity for us to support
the net zero transition.
Risk group
Type
Climate-related risk
Implication
Opportunity
Transition
risks
Policy and
legal
Increased pricing of GHG
emissions: The rapid transition
to a low carbon energy system
could require higher energy
prices and a higher carbon
price to disincentivise the use
of fossil fuels
RELX has low exposure to energy and carbon pricing (less than
1% of total spend) and has achieved significant reductions in energy
consumption since 2010. For this reason, moderate to significant
increases in energy costs will have a limited impact on RELX.
There will be an increased need for
information on energy and carbon
pricing; research on energy transition
and zero carbon; and events which bring
stakeholders together to showcase
related technological innovation are
likely to increase the demand for
RELX products and services.
Enhanced emissions-reporting
obligations: An increasing
number of governments are
likely to impose requirements
on business to achieve the low
carbon transition. New
requirements are likely to
include additional reporting and
transparency requirements for
GHG emissions
RELX has processes in place for carbon reporting and disclosure
aligned with various best practice frameworks. Additional
reporting requirements are expected to have insignificant
financial implications.
Widespread introduction of different reporting regimes in the
countries where we operate could increase the risk of
non-compliance (and therefore the risk of fines). However,
RELX operates an environmental management system certified
to ISO14001 which requires a compliance assessment with
environmental legislation. This reduces the risk of non-
compliance with future reporting regulations.
As new regulations are introduced, there
will be a greater need for guidance; this
could result in an increased demand for
our risk, science, legal and other
products and services.
Mandates and regulation
affecting existing products and
services: New regulations may
be introduced for products to
support the transition to a
low-carbon economy
RELX delivers products and service primarily in three ways: i) online/
digital; ii) printed products; iii) in-person events. Increasing regulation on
products in these areas could result in a increased cost for providing those
products and services.
Online/digital: Products served by RELX-owned data centres are covered
by the purchase of renewable electricity and RELX’s net zero commitment.
RELX is engaging with Scope 3 suppliers for greater transparency on our
share of their carbon emissions and renewable energy.
Printed products: Revenue from printed products has decreased
significantly since 2010 as more product offerings are made online.
Paper used in RELX’s printed products complies with the RELX
Sustainable Paper Policy which requires all papers are from known
and sustainable sources and/or certified to a recognised standard.
In person: Exhibitions is part of an events industry initiative, Net Zero
Carbon Events, working to achieve net zero by 2040. This commitment
requires significant reductions in carbon emissions and partnerships
with other industries to minimise events-related emissions.
A small proportion of our customers operate in carbon-intensive
industries, and less than 1% of the journals we produce specifically
cover content related to hydrocarbon; we continue to ensure they
focus on supporting relevant customers in their energy transition.
New regulations on products will, in
many cases, be best addressed through
industry collaboration. Our convening
power in the markets we serve can
support such industry collaboration.
Technology
Substitution of existing
products and services with
lower emissions options
RELX has largely transitioned from printed physical products to
online/digital products and services. This avoids the emissions
associated with the manufacture and distribution of printed
products but introduces emissions associated with the use of data
centres for the digital offerings.
RELX-owned data centres are covered by renewable electricity and
RELX’s net zero commitment. As described, we are engaging with
our cloud providers for greater transparency on carbon emissions
and renewable energy.
Our products, services and events aid
the low-carbon transition benefiting our
customers and society.
Costs to transition to lower
emissions technology
The cost implications for transitioning to new technology are
primarily in our supply chain.
Printed products are manufactured and distributed by suppliers
on behalf of RELX. RELX engages its suppliers through the Socially
Responsible Suppliers programme and has processes in place for
reporting on its supply chain-related emissions.
Detailed energy and carbon market
insights we can provide through our
products, services and events will allow
companies to better assess the risks and
costs of transitioning to lower emissions
technologies.
Market
Changing customer behaviour
Significant increases to the cost of air travel due to the factoring in of
carbon charges may discourage business travel in favour of virtual
meetings. This could lead to a reduction in the number of attendees
at in-person events effecting our events business. We offer virtual
attendance options and in-person participation allows exhibitors
and attendees to hold numerous meetings during one event.
The ability for an exhibitor or event
attendee to maximise engagement by
attending one event, for example, with
customers, prospects, and suppliers,
can become more valuable as the cost
of travel increases.
Uncertainty in market signals
As businesses take action to combat climate change, they might
need to change business models or practices to ensure their
success in a low-carbon economy. Some of these changes may raise
questions for investors or other stakeholders and reduce visibility
of the business’s strategy. RELX provides detailed and transparent
disclosure on climate change to provide clarity to investors and
other stakeholders.
Businesses can develop new disclosures
to effectively communicate plans with
stakeholders. The demand for our
products which provide company and
market insights could grow as investors’
requirements for reliable information
and data increases.
Increased cost of raw materials:
Low-carbon requirements on
the use, and distribution, of raw
materials could lead to an
increase in their cost
RELX does not manufacture products from raw materials.
An increase in the cost of raw materials would primarily impact
RELX via higher prices in our supply chain.
Pricing insights in key supply chains such
as chemicals and plastics are provided
within our Risk business. If cost and
price volatility increases, there could
be a greater demand for such products
and services.
Reputation
Shifts in consumer preferences
Business customers may become more aware of environmental
concerns and expect a high standard of performance from
companies. Over time, this may lead to a decrease in demand
for carbon intensive products as consumers move to low
emission alternatives.
While we do not produce consumer
products, we do serve a variety of
industries and can support their efforts
to decarbonise through our products,
services and events.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
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78
Risk group
Type
Climate-related risk
Implication
Opportunity
Stigmatisation of sector:
Products and services offered
to carbon-intensive industries
could result in negative
public reaction
We offer products and services across a wide range of industries,
some of which are carbon-intensive industries. We are working to
support these industries in their transition to a low-carbon economy.
Industries which face the greatest
challenges in decarbonisation will need
support, information and tools. We will
continue developing new products and
services to assist these industries in
their decarbonisation efforts.
Increased stakeholder concern
or negative stakeholder
feedback: Poor performance
could result in negative
feedback from stakeholders
such as investors or colleagues
RELX sets environmental targets on a five-year cycle and has a
science-based carbon reduction target which aligns its emissions
reductions with those required to meet the 1.5°C ambition of the
Paris Agreement.
Maintaining good environmental
performance provides a reputational
benefit with our stakeholders,
including investors. Strong
environmental performance and
commitments may be reflected in
improved or lower cost financing.
Physical
risks
Acute
Increased severity of extreme
weather events such as
cyclones and floods: severe
weather could interrupt normal
business operations
RELX operates a comprehensive business continuity programme to
ensure colleagues can work remotely and be informed should a
location be impacted by severe weather conditions. This allows the
business to function despite the impact of the severe weather. As
risks associated with weather events increases, insurance
premiums paid by RELX could increase.
We provide products that help to assess
and quantify insurance perils. As
insurance premiums increase, demand
for these products will likely grow as
insurance providers seek more accurate
weather-related risk assessments.
Chronic
Changes in precipitation
patterns and extreme variability
in weather patterns: Such
changes could affect
agricultural processes
Printed products require supply of wood from sustainable forest
sources. Changes in precipitation and weather patterns could
disrupt the growth in forest sources known to be sustainably
managed which could increase the price of sustainable paper. RELX
has flexibility in the types of paper used and the forest sources of
these papers which allows purchases to be made elsewhere should
the need arise. As a member of the Book Chain Project, we assess
the sustainability of a large number of papers, allowing us to
consider alternatives.
We offer products that use data analytics
to help increase the efficiency of land use
in areas such as water consumption and
fertiliser use. Demand for such products
could grow as a response to decreasing
yields due to weather.
Rising mean temperatures:
The gradual increase of average
temperatures is a factor of
climate change
Climate change will affect temperatures differently in different
locations. This means that, over time, the operation of some offices
will become less efficient as they may need to maintain physical
working conditions close to or outside the range for which they were
designed. This could lead to an increase in operational costs as more
energy will be required for cooling.
Rising mean temperatures will require
government to review, and businesses to
implement, new building standards and
guidelines. Our business areas would
produce guidance to assist customers to
interpret associated new standards and
planning regimes.
Rising sea levels
If sea levels rise significantly there is increased risk of property
damage to any RELX locations in low-lying coastal regions. This
could increase insurance premiums or disrupt the working
arrangements of colleagues in those locations. We have a
comprehensive business continuity programme in place to mitigate
such impacts and consider climate risk in the siting of our offices.
We offer products that help to assess and
quantify insurance perils risk. As
insurance premiums increase, demand
for these products could grow.
CR Disclosure Standards 2
Sustainability Accounting Standards Board (SASB) disclosure
SASB Standards enable businesses around the world to identify, manage and communicate financially material sustainability
information to their investors. The SASB standards are industry specific and identify the minimal set of financially material
sustainability topics and their associated metrics for the typical company in an industry
SASB assigns RELX to the Professional and Commercial Services sector. The following disclosure is made according to the
SASB standard for that sector.
Topic
Accounting metric
Code
Disclosure location
Data security
Description of approach to identifying and addressing data
security risks
SV-PS-230a.1
See page 42
Description of policies and practices relating to collection,
usage and retention of customer information
SV-PS-230a.2
See page 42
(1) Number of data breaches, (2) percentage involving
customers' confidential business information (CBI) or
personally identifiable information (PII), (3) number of
customers affected
SV-PS-230a.3
Except as a matter of public
record, RELX does not disclose
this information for reasons of commercial
confidentiality
Workforce diversity and
engagement
Percentage of gender and racial/ethnic group representation
for (1) executive management and (2) all other employees
SV-PS-330a.1
See pages 46-47
(1) Voluntary and (2) involuntary turnover rate for employees
SV-PS-330a.2
See page 44
Employee engagement as a percentage
SV-PS-330a.3
See page 44
Professional integrity
Description of approach to ensuring professional integrity
SV-PS-510a.1
See pages 40 and 43
Total amount of monetary losses as a
result of legal proceedings associated
with professional integrity
SV-PS-510a.2
Except as a matter of public
record, RELX does not disclose
this information for reasons of commercial
confidentiality
Activity metrics
Number of employees by (1) full-time and part-time, (2)
temporary, and (3) contract
SV-PS-000.A
See page 44
Employee hours worked, percentage billable
SV-PS-000.B
See page 44
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Annual Report 2022 | CR Disclosure Standards
CR Disclosure Standards 3
Global Reporting Initiative (GRI) Content Index
This report has been prepared in accordance with the GRI Standards: Core option
GRI Standard
Number
GRI Standard Title
Disclosure Title
Page number
GRI 102
General Disclosures
Name of the organization
Title page
GRI 102
General Disclosures
Activities, brands, products, and services
5-7
GRI 102
General Disclosures
Location of headquarters
28
GRI 102
General Disclosures
Location of operations
7
GRI 102
General Disclosures
Ownership and legal form
147
GRI 102
General Disclosures
Markets served
7
GRI 102
General Disclosures
Scale of the organization
7
GRI 102
General Disclosures
Information on employees and other workers
44-49
GRI 102
General Disclosures
Supply chain
59-62
GRI 102
General Disclosures
Significant changes to the organization and its supply chain
59-60
GRI 102
General Disclosures
Precautionary Principle or approach
63-77
GRI 102
General Disclosures
External initiatives
33
GRI 102
General Disclosures
Membership of associations
33
GRI 102
General Disclosures
Statement from senior decision-maker
4
GRI 102
General Disclosures
Values, principles, standards, and norms of behaviour
29, 40-41, 44-49
GRI 102
General Disclosures
Governance structure
31, 40, 102-106
GRI 102
General Disclosures
List of stakeholder groups
32-33, 109-112
GRI 102
General Disclosures
Collective bargaining agreements
44-48
GRI 102
General Disclosures
Identifying and selecting stakeholders
32-33, 109
GRI 102
General Disclosures
Approach to stakeholder engagement
32-33, 109
GRI 102
General Disclosures
Key topics and concerns raised
32
GRI 102
General Disclosures
Entities included in the consolidated financial statements
162-165
GRI 102
General Disclosures
Defining report content and topic Boundaries
28, 32
GRI 102
General Disclosures
List of material topics
32
GRI 102
General Disclosures
Restatements of information
31
GRI 102
General Disclosures
Changes in reporting
31
GRI 102
General Disclosures
Reporting period
31
GRI 102
General Disclosures
Date of most recent report
23/2/23
GRI 102
General Disclosures
Reporting cycle
Annual
GRI 102
General Disclosures
Contact point for questions regarding the report
28
GRI 102
General Disclosures
Claims of reporting in accordance with the GRI Standards
29
GRI 102
General Disclosures
External assurance
56
GRI 103
Management Approach
Explanation of the material topic and its Boundary
32, 72
GRI 103
Management Approach
The management approach and its components
29-33
GRI 103
Management Approach
Evaluation of the management approach
29-33, External assurance 56 and 80
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
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Annual Report 2022 | Corporate responsibility
80
Scope
We have been engaged by RELX Group plc (“RELX”) to perform
a ‘limited assurance engagement,’ as defined by the International
Standards on Assurance Engagements, here after referred to as the
engagement, to report on RELX’s corporate responsibility data
indicated with a ‘^’ symbol contained in page 31 of RELX’s Annual
Report (the “Subject Matter”) for the year ended 31st December 2022
(referred to as the “Report”).
This data is reported under the following headings in the Report:
§
People
§
Health and safety
§
Socially Responsible Suppliers
§
Environment
§
Climate change
§
Paper
§
Our unique contributions (SDGs)
Other than as described in the preceding paragraph, which sets
out the scope of our engagement, we did not perform assurance
procedures on the remaining information included in the Report,
and accordingly, we do not express a conclusion on this information.
Criteria applied by RELX
In preparing the Subject Matter, RELX applied their corporate
responsibility reporting guidelines, comprising the ‘RELX Reporting
Guidelines and Methodology 2022’ (Criteria).
RELX’s responsibilities
RELX’s management is responsible for selecting the Criteria,
and for presenting the Subject Matter in accordance with that Criteria,
in all material respects. This responsibility includes establishing and
maintaining internal controls, maintaining adequate records and
making estimates that are relevant to the preparation of the Subject
Matter, such that it is free from material misstatement, whether due
to fraud or error.
EY’s responsibilities
Our responsibility is to express a conclusion on the presentation
of the Subject Matter based on the evidence we have obtained.
We conducted our engagement in accordance with the International
Standard for Assurance Engagements Other Than Audits or Reviews
of Historical Financial Information (‘ISAE 3000’), and the terms of
reference for this engagement as agreed with RELX on 16th January
2023. Those standards require that we plan and perform our
engagement to express a conclusion on whether we are aware of any
material modifications that need to be made to the Subject Matter in
order for it to be in accordance with the Criteria, and to issue a report.
The nature, timing, and extent of the procedures selected depend
on our judgment, including an assessment of the risk of material
misstatement, whether due to fraud or error.
We believe that the evidence obtained is sufficient and appropriate
to provide a basis for our limited assurance conclusion.
Our Independence and Quality Control
We have maintained our independence and confirm that we have met
the requirements of the Code of Ethics for Professional Accountants
issued by the International Ethics Standards Board for Accountants,
and have the required competencies and experience to conduct this
assurance engagement.
EY also applies International Standard on Quality Control 1,
Quality Control for Firms that Perform Audits and Reviews of
Financial Statements, and Other Assurance and Related Services
Engagements, and accordingly maintains a comprehensive system
of quality control including documented policies and procedures
regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in
nature and timing from and are less in extent than for a reasonable
assurance engagement. Consequently, the level of assurance obtained
in a limited assurance engagement is substantially lower than the
assurance that would have been obtained had a reasonable assurance
engagement been performed. Our procedures were designed to obtain
a limited level of assurance on which to base our conclusion and do not
provide all the evidence that would be required to provide a reasonable
level of assurance.
Although we considered the effectiveness of management’s internal
controls when determining the nature and extent of our procedures,
our assurance engagement was not designed to provide assurance on
internal controls. Our procedures did not include testing controls or
performing procedures relating to checking aggregation or calculation
of data within IT systems.
A limited assurance engagement consists of making enquiries,
primarily of persons responsible for preparing the Subject Matter
and related information and applying analytical and other
appropriate procedures.
Our procedures included:
1.
Performed detailed testing on the ESG Data Sets and carried out the
following activities to assess the Subject Matter:
a.
Conducted interviews with key personnel to understand the
process for collecting, collating and reporting the Subject Matter
during the reporting period
b.
Reviewed certain documentation related to guidance and training
for the Subject Matter, and minutes outlining relevant initiatives
c.
Undertook analytical review procedures to understand the
appropriateness of the data
d.
Performed testing, on a sample basis, against underlying source
information to check the accuracy and completeness of the data
and the appropriate application of the Criteria
e.
Understood global estimation methodology to determine how it
should be applied correctly and consistently
f.
Assessed the Report for the appropriate presentation of the data,
including limitations and assumptions
We also performed such other procedures as we considered necessary
in the circumstances.
Emphasis of matter
RELX reported 100% of its electricity purchased from renewable
sources for 2022, relying on green tariffs and renewable energy
certificates (RECs). However, it should be noted that, for 2022, 23% of
this percentage reported related to US RECs that have been applied to
countries outside the United States. This means that the location of the
purchased RECs differs from the location where they have been applied.
This does not affect our conclusion on the Report as set out below.
Conclusion
Based on our procedures and the evidence obtained, we are not aware
of any material modifications that need to be made to the Subject Matter
as of 31st December 2022 in order for it to be in accordance with
the Criteria.
Use of Our Assurance Statement
We disclaim any assumption of responsibility for any reliance on this
assurance report or its conclusions to any persons other than RELX, or
for any purpose other than that for which it was prepared. Accordingly,
we accept no liability whatsoever, whether in contract, tort or otherwise,
to any third party for any consequences of the use or misuse of this
assurance report or its conclusions.
Ernst & Young LLP
15 February 2023
London
Independent Assurance Statement to
RELX PLC Management
81
RELX
Annual Report 2022
Financial review
Financial
review
In this section
82
Chief Financial Officer’s report
88
Principal and emerging risks
Financial statements and
other information
Governance
Corporate Responsibility
Overview
Market segments
In 2022, underlying revenue growth was
9% and underlying adjusted operating
profit growth was 15%, and adjusted
earnings per share grew at 10% at
constant currency.
Nick Luff, Chief Financial Officer
Revenue
Underlying revenue growth was 9%, with all four market segments
contributing to underlying growth. The underlying growth rate
reflects strong growth in electronic and face-to-face revenues,
partially offset by continued print revenue declines. Risk continued
to deliver strong growth, while both STM and Legal improved their
growth rates. Exhibitions saw a strong recovery in revenue.
Acquisitions and disposals together had a broadly neutral impact
on revenue, while exhibition cycling effects had a positive impact,
giving revenue growth at constant currency of 11%. The impact of
currency movements was to increase revenue growth by 7%.
Reported revenue including the effects of exhibition cycling and
currency movements, was £8,553m (2021: £7,244m), up 18%.
Profit
Underlying growth in adjusted operating profit was 15%, with
growth in each of Risk, STM and Legal in line with or ahead of
revenue growth, and the improvement in profitability in Exhibitions
reflecting the increased activity levels and a lower cost structure.
Acquisitions and disposals combined had a small negative impact
on adjusted operating profit growth, giving growth at constant
currency of 14%. Currency effects increased adjusted operating
profit by 7%.
Total adjusted operating profit, including the impact of acquisitions
and disposals and currency effects, was £2,683m (2021:
£2,210m), up 21%.
Operating costs on an underlying basis grew 9%, reflecting
investment in global technology platforms, the launch of new
products and services and the increased activity levels within
Exhibitions, partly offset by the benefits of continued process
innovation. Actions continue to be taken across the Company to
improve cost-efficiency. Total adjusted operating costs, including
the impact of acquisitions, disposals and currency effects, were
up 16%. This includes the benefit of lower unallocated central
costs and other operating items.
Such items include foreign
exchange gains and losses related to translation of working capital
items into relevant functional currencies (see below).
The overall adjusted operating margin of 31.4% was 0.9
percentage points higher than in the prior year. On an underlying
basis, including cycling effects, the margin improved by 1.2
percentage points with portfolio changes reducing margins by 0.3
percentage points and currency being neutral on margins.
Reported operating profit was £2,323m (2021: £1,884m) up 23%,
reflecting the increase in adjusted operating profit.
The amortisation charge in respect of acquired intangible assets,
including the share of amortisation in joint ventures, was £296m
(2021: £298m) including an impairment of £1m (2021: £13m).
Acquisition-related costs were £62m (2021: £21m), higher than
the prior year as a result of increased acquisition activity and the
absence of an offsetting gain (£27m) recognised in 2021.
Adjusted operating profit
2,346
2,491
2,076
2,210
£m
2,683
2022
2019
2021
2020
2018
Revenue
7,492
7,874
7,110
7,244
£m
8,553
2022
2019
2021
2020
2018
Chief Financial Officer’s report
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Annual Report 2022 | Financial review
Financial statements and
other information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
Change
2021
2022
at constant
Change
£m
£m
Change
currencies
underlying
Adjusted figures
Revenue
7,244
8,553
18%
11%
9%
Operating profit
2,210
2,683
21%
14%
15%
Operating margin
30.5%
31.4%
Profit before tax
2,077
2,489
20%
13%
Net profit attributable to shareholders
1,689
1,961
16%
10%
Net margin
23.3%
22.9%
Cash flow
2,230
2,709
21%
13%
Cash flow conversion
101%
101%
Return on invested capital
11.9%
12.5%
Earnings per share
87.6p
102.2p
17%
10%
D
i
i
v
v
i
i
d
d
e
e
n
n
d
d
Ordinary dividend per share
49.8p
54.6p
10%
Reported figures
Revenue
7,244
8,553
18%
Operating profit
1,884
2,323
23%
Profit before tax
1,797
2,113
18%
Net profit attributable to shareholders
1,471
1,634
11%
Net margin
20.3%
19.1%
Net debt
6,017
6,604
Earnings per share
76.3p
85.2p
12%
RELX uses adjusted and underlying figures as additional performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets
and other items related to acquisitions and disposals, and the associated deferred tax movements. Reconciliations between the reported and adjusted figures are set
out on pages 216 to 224. Underlying growth rates are calculated at constant currencies, excluding the results of acquisitions until 12 months after purchase, and
excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling. Constant currency growth rates are
based on 2021 full-year average and hedge exchange rates.
Adjusted net interest expense was £194m (2021: £133m), with
the increase reflecting higher average interest rates and currency
translation effects. The adjusted interest expense excludes the net
pension financing charge of £5m (2021: £9m).
Adjusted profit before tax was £2,489m (2021: 2,077m), up 20%.
Reported profit before tax was £2,113m (2021: £1,797m) up
18%, reflecting a net loss on disposals and other non-operating
items of £9m compared to a gain of £55m in the prior year,
mainly related to our ventures portfolio and the higher
acquisition-relate costs.
The adjusted tax charge was £530m (2021: £384m). The adjusted
effective tax rate was 21.3% (2021:18.5%). This excludes
movements in deferred taxation assets and liabilities related to
goodwill and acquired intangible assets, but includes the benefit of
tax amortisation where available on those items. The 2021 charge
reflected the benefit of tax credits arising from the substantial
resolution of prior year tax matters.
Adjusted operating profits, interest and taxation are grossed up
for the equity share of interest and taxes in joint ventures. The
application of tax law and practice is subject to some uncertainty
and amounts are provided in respect of this. Discussions with tax
authorities relating to cross-border transactions and other matters
are ongoing. Although the outcome of open items cannot be
predicted, no significant impact on profitability is expected.
The reported tax charge was £481m (2021: £326m), including tax
associated with the amortisation of acquired intangible assets,
disposals and other non-operating items. The UK corporation tax
rate will increase from 19% to 25% from 1 April 2023.
The adjusted net profit attributable to shareholders was £1,961m
(2021: £1,689m), up 10% at constant currency and up 16% after
changes in exchange rates. Adjusted earnings per share was up
10% at constant currency, and after changes in exchange rates
was up 17% at 102.2p (2021: 87.6p).
Adjusted cash flow conversion
96%
96%
97%
101%
101%
2022
2019
2021
2020
2018
Adjusted operating profit margin
31.3%
31.6%
29.2%
30.5%
31.4%
2022
2019
2021
2020
2018
RELX
Annual Report 2022 | Chief Financial Officer’s report
83
The reported net profit attributable to shareholders was £1,634m
(2021: £1,471m). Reported earnings per share was 85.2p
(2021: 76.3p).
Cash flows
Adjusted cash flow was £2,709m (2021: £2,230m), up 21%
compared with the prior period. The rate of conversion of
adjusted operating profit to adjusted cash flow was 101%
(2021: 101%).
CONVERSION OF ADJUSTED OPERATING PROFIT INTO
CASH
YEAR TO 31 DECEMBER
2021
2022
£m
£m
Adjusted operating profit
2,210
2,683
Depreciation and amortisation
487
491
EBITDA
2,697
3,174
Capital expenditure
(337)
(436)
Repayment of lease principal (net)*
(76)
(78)
Working capital and other items
(54)
49
Adjusted cash flow
2,230
2,709
Adjusted cash flow conversion
101%
101%
*
Excludes repayments and receipts in respect of disposal-related vacant
property and is net of sublease receipts.
Capital expenditure was £436m (2021: £337m), including £400m
(2021: £309m) in respect of capitalised development costs,
reflecting sustained investment in new products. Capital
expenditure was 5.1% of revenue (2021: 4.7%) and excludes
pre-publication costs of £94m (2021: £73m) that were capitalised
as current assets and principal lease repayments under IFRS 16
of £78m (2021: £76m). Depreciation and other amortisation
charged within adjusted operating profit was £491m (2021:
£487m) and represented 5.7% of revenue (2021: 6.7%). This
includes amortisation of internally developed intangible assets of
£309m (2021: £295m) and depreciation of property, plant and
equipment of £47m (2021: £52m) which combined represent
4.2% (2021: 4.8%) of revenue.
Interest paid (net) of £165m (2021: £118m) was higher due to
increases in interest rates compared to the prior year. Tax paid of
£495m (2021: £342m) was lower than the current tax charge,
with the difference reflecting timing of tax payments.
In 2022, the cash outflow relating to Exhibitions exceptional costs
charged in 2020 was £25m (2021: £52m). Payments made in
respect of acquisition-related items amounted to £54m (2021:
£46m).
Free cash flow before dividends was £1,970m (2021: £1,672m).
Ordinary dividends paid to shareholders in the year, being the
2021 final dividend and 2022 interim dividend, amounted to
£983m (2021: £920m). Free cash flow after dividends was
£987m (2021: £752m).
FREE CASH FLOW
YEAR TO 31 DECEMBER
2021
2022
£m
£m
Adjusted cash flow
2,230
2,709
Interest paid (net)
(118)
(165)
Cash tax paid*
(342)
(495)
Exceptional costs in Exhibitions
(52)
(25)
Acquisition-related items
(46)
(54)
Free cash flow before dividends
1,672
1,970
Ordinary dividends
(920)
(983)
Free cash flow post dividends
752
987
*
Net of cash tax relief on acquisition-related items and including cash tax
impact of disposals.
RECONCILIATION OF NET DEBT YEAR-ON-YEAR
YEAR TO 31 DECEMBER
2021
2022
£m
£m
Net debt at 1 January
(6,898)
(6,017)
Free cash flow post dividends
752
987
Net disposal proceeds
190
3
Acquisition cash spend (including
borrowings in acquired businesses)
(262)
(463)
Share repurchases
–
(500)
Purchase of shares by the Employee Benefit
Trust
(1)
(50)
Other*
28
(4)
Currency translation
174
(560)
Movement in net debt
881
(587)
Net debt at 31 December
(6,017)
(6,604)
*
Distributions to non-controlling interests, pension deficit recovery payments,
leases, share option exercise proceeds.
Total consideration on acquisitions completed in the year was
£443m (2021: £255m). Cash spent on acquisitions was £460m
(2021: £262m), excluding £3m (2021: nil) of borrowings in
acquired businesses and including deferred consideration of
£21m (2021: £19m) on past acquisitions and investments in
joint ventures and associates and venture capital investments of
£66m (2021: £8m). Net cash inflow from disposals after timing
differences and separation and transaction costs was £3m
(2021: £190m).
Share repurchases in 2022 were £500m (2021: nil) with a further
£150m repurchased in 2023 as at 15 February. In addition, the
Employee Benefit Trust purchased shares of RELX PLC to meet
future obligations in respect of share based remuneration totalling
£50m (2021: £1m). Proceeds from the exercise of share options
were £26m (2021: £32m).
Exchange rates
RELX undertakes transactions with its customers and suppliers
through a range of currencies, and RELX subsidiaries have
different functional currencies for accounting purposes. The key
currencies for RELX are the US dollar and the euro. While RELX
manages its exposure to different currencies through its hedging
and treasury strategies, year-on-year movement in exchanges
rates can have some effect on the financial results. In 2022,
changes in exchange rates, mainly the relative strength of the
US dollar, increased revenues by £543m and adjusted operating
profit by £167m. In 2022, unallocated central costs and other
operating items (as shown in note 2 to the financial statements on
page 169) deducted in arriving at adjusted operating profit includes
a charge of £24m from exchange rate movements from translation
of working capital items into relevant functional currencies.
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Annual Report 2022 | Financial review
Financial statements and
other information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
Changes in exchange rates during the year increased net debt by
£560m (see below) and assets (net of other liabilities) by £987m,
with the net effect of these resulting in an increase in shareholders’
equity of £427m. Constant currency adjusted measures
presented by RELX exclude the effect of these year-on-year
exchange rate movements.
Funding
Debt
Net debt at 31 December 2022 was £6,604m, an increase of
£587m since 31 December 2021. The majority of our borrowings
are denominated in US dollars and euros, and as sterling was
weaker against the US dollar and euro at the end of the year, our
net borrowings increased when translated into sterling. Excluding
currency translation effects, net debt increased by £27m.
Expressed in US dollars, net debt at 31 December
2022 was
$7,991m, a decrease of $132m.
Gross debt of £6,730m (2021: £6,167m) is comprised of bank
and bond borrowings of £6,548m (2021: £5,959m) and lease
liabilities under IFRS 16 of £182m (2021: £208m). The fair value
of related derivative liabilities was £213m (2021: net assets of
£35m), finance lease receivables totalled £5m (2021: £2m)
and cash and cash equivalents totalled £334m (2021: £113m).
In aggregate, these give the net debt figure of £6,604m
(2021: £6,017m).
The effective interest rate on gross bank and bond borrowings
was 2.9% in 2022 (2021: 2.0%). As at 31 December 2022, gross
bank and bond borrowings had a weighted average life remaining
of 4.4 years and a total of 58% of them were at fixed rates, after
taking into account interest rate derivatives. The ratio of net debt
(including pensions) to EBITDA (adjusted earnings before
interest, tax, depreciation and amortisation) was 2.1x (2021:
2.4x), calculated in US dollars. Excluding pensions, the ratio was
2.1x (2021: 2.3x). The reduction in these leverage ratios reflects
the growth in earnings and EBITDA in the year.
Liquidity
During April 2022, the Group’s undrawn committed bank facilities,
maturing in 2023 and 2024, were cancelled and replaced with a
new $3bn facility maturing in April 2025. This committed facility,
which provides security of funding for short-term debt, is
undrawn. The new facility does not include a financial covenant
(the previous facility included a covenant limiting the ratio of
debt to EBITDA). The facility has pricing linked to three ESG
performance targets.
In May 2022, $500m of US dollar-denominated fixed rate term
debt was issued with a coupon of 4.75% and a maturity of ten
years. The Group has ample liquidity and access to debt capital
markets, providing the ability to repay or refinance debt as it
matures and to fund ongoing requirements.
Invested capital and returns
Net capital employed was £11,089m at 31 December 2022
(2021: £9,810m), an increase of £1,279m with £1,077m of the
increase due to changes in exchange rates. The carrying value
of goodwill and acquired intangible assets increased by £1,058m.
An amount of £125m (2021: £156m) was capitalised in the year
in respect of acquired intangible assets and £269m (2021:
£131m) was recorded as goodwill. These additions were offset
by amortisation and impairment of acquired intangible assets.
SUMMARY BALANCE SHEET
AS AT 31 DECEMBER
2021
2022
£m
£m
Goodwill and acquired intangible assets*
9,419
10,477
Internally developed intangible assets*
1,251
1,435
Property, plant and equipment*,
right-of-use assets* and investments
504
557
Net pension obligations
(269)
(55)
Working capital
(1,095)
(1,325)
Net capital employed
9,810
11,089
*
Net of accumulated depreciation and amortisation.
The net pension obligations (i.e. pension obligations less pension
assets), as measured on an accounting basis, decreased to
£55m (2021: £269m). The decrease in the net obligation balance
is due to rising interest rates which has resulted in higher discount
rates being applied to value future pension obligations. There was
a positive accounting balance (i.e. pension assets less pension
obligations) of £127m (2021: £8m negative balance) in respect
of funded schemes, which were on average in excess of 100%
funded at the end of the year on an IFRS basis.
The post-tax return on average invested capital in the year was
12.5% (2021: 11.9%). The increase is largely due to growth
in adjusted operating profit, partly offset by a higher effective
tax rate.
RELX term debt maturities at 31 December 2022
819
803
857
736
950
750
1,036
7
0
850
1,285
2025
2024
2023
2026
2027
2028
2029
2030
2031
>2032
2032
$m
Term debt translated at 31 December 2022 exchange rates, stated at par value
Return on invested capital
13.2%
13.6%
10.8%
11.9%
12.5%
2022
2019
2021
2020
2018
RELX
Annual Report 2022 | Chief Financial Officer’s report
85
RETURN ON INVESTED CAPITAL
AS AT 31 DECEMBER
2021
2022
£m
£m
Adjusted operating profit
2,210
2,683
Tax at adjusted effective rate
(409)
(571)
Adjusted effective tax rate
18.5%
21.3%
Adjusted operating profit after tax
1,801
2,112
Average invested capital*
15,108
16,920
Return on invested capital
11.9%
12.5%
*
Average of invested capital at the beginning and the end of the year,
retranslated at average exchange rates for the year. Invested capital is
calculated as net capital employed, adjusted to add back accumulated
amortisation and impairment of acquired intangible assets and goodwill and
to exclude the gross up to goodwill in respect of deferred tax, and to add
back exceptional restructuring costs.
Dividends and share repurchases
2021
2022
£m
£m
Change
Adjusted earnings per share
87.6p
102.2p
17%
Reported earnings per share
76.3
85.2
12%
Ordinary dividend per share
49.8p
54.6p
10%
The final dividend proposed by the Board is 38.9p per share.
This gives total dividends for the year of 54.6p (2021: 49.8p),
10% higher than the prior year.
Dividend cover, being the number of times the total interim and
proposed final dividends for the year is covered by the adjusted
earnings per share, is 1.9x (2021: 1.8x). Dividend cover by the
reported earnings per share is 1.6x (2021: 1.5x). The dividend
policy of RELX PLC is, over the longer term, to grow dividends
broadly in line with adjusted earnings per share, while targeting
cover of at least two times.
During 2022, a total of 21.7m RELX PLC shares were
repurchased at an average price of 2,303p. Total consideration
for these repurchases was £500m. A further 2.2m (2021: 61,040)
shares were purchased by the Employee Benefit Trust. As at
31 December 2022, total shares in issue, net of shares held in
treasury and shares held by the Employee Benefit Trust,
amounted to 1,909.5m. A further 6.3m shares have been
repurchased in 2023 as at 15 February.
Distributable reserves and parent
company balance sheet
As at 31 December 2022, RELX PLC had distributable reserves
of £6.5bn (2021: £7.0bn). In line with UK legislation, distributable
reserves are derived from the non-consolidated RELX PLC
balance sheet. The consolidated reserves reflect adjustments
such as the amortisation of acquired intangible assets that are
not taken into account when calculating distributable reserves.
The parent company balance sheet net assets are higher than
those of the group due to the investment in RELX Group plc
being carried at a value of £18bn which is not reflected on the
consolidated balance sheet. The parent company balance sheet
can be found on page 208. Further information on the distributable
reserves can be found in the parent company financial statements
on page 209.
Alternative performance measures
RELX uses a range of alternative performance measures (APMs)
in the reporting of financial information, which are not defined by
generally accepted accounting principles (GAAP) such as IFRS.
These APMs are used by the Board and management as they
believe they provide relevant information in assessing the Group
’
s
performance, position and cash flows, enable investors to track
more clearly the core operational performance of the Group, and
provide a clear basis for assessing RELX’s ability to raise debt and
invest in new business opportunities.
Management also uses these financial measures, along with IFRS
financial measures, in evaluating the operating performance of
the Group as a whole and of the individual business areas. These
measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance with
IFRS. The measures may not be directly comparable to similarly
reported measures by other companies.
Reconciliations of adjusted measures are set out on pages
216
to
225.
Accounting policies
The consolidated financial statements are prepared in
accordance with UK adopted International Accounting Standards
in conformity with the requirements of the Companies Act 2006
and International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB) following
the accounting policies shown in the notes to the financial
statements on pages 162 to 211. The accounting policies and
estimates which require the most significant judgement relate
to the identification of separate intangible assets on acquisition,
the capitalisation of development spend, taxation and accounting
for defined benefit pension schemes.
Further detail is provided in the accounting policies on pages 167
and 168 and in the relevant notes to the accounts.
Tax Principles
Taxation is an important issue for us and our stakeholders,
including our shareholders, governments, customers, suppliers,
employees and the global communities in which we operate. We
have set out our approach to tax in our global tax strategy. This
incorporates our Tax Principles along with additional disclosures
around where we pay taxes and our broader contribution to
society. This is all made publicly available on our website:
www.relx.com/go/taxprinciples. We maintain an open dialogue
with tax authorities, and are vigilant in ensuring that we comply
with current tax legislation. We have clear and consistent tax
policies and tax matters are dealt with by a professional tax
function, supported by external advisers. We proactively seek
to agree arm’s-length pricing with tax authorities to mitigate tax
risks of significant cross-border operations. We actively engage
with policy makers, tax administrators, industry bodies and
international institutions to provide informed input on proposed
tax measures, so that we and they can understand how those
proposals would affect our business. In addition, we participate in
consultations with the Organisation for Economic Co-operation
and Development (OECD), European bodies and the United
Nations.
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Financial statements and
other information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
Treasury policies
The Board of RELX PLC agrees policies for managing treasury
risks. The key policies address security of funding requirements,
the target fixed/floating interest rate exposure for debt and foreign
currency hedging and place limits on counterparty exposures.
A more extensive summary of these policies is provided in note 17
to the financial statements on pages 189 to 194. Financial
instruments are used to finance the RELX businesses and to
hedge transactions. The Group’s businesses do not enter into
speculative transactions.
Liquidity management
The capital structure is managed to support RELX’s objective
of maximising long-term shareholder value through appropriate
security of funding, ready access to debt and capital markets,
cost-effective borrowing and flexibility to fund business and
acquisition opportunities while maintaining appropriate leverage
to ensure an efficient capital structure.
Over the long-term, RELX seeks to maintain cash flow conversion
of 90% or higher and credit rating agency metrics that are
consistent with a solid investment grade credit rating. These
metrics, as defined by the rating agencies, include net debt to
EBITDA, including and excluding pensions, and various measures
of cash flow as a
percentage of net debt. Further detail on liquidity
management is provided on pages 189 and 190.
Capital management
RELX uses the cash flow it generates to fund capital expenditure
required to drive organic growth, to make selective acquisitions
and to provide a growing dividend to shareholders, while retaining
balance sheet strength to maintain access to cost-effective
sources of borrowing. Share repurchases are undertaken to
maintain an efficient balance sheet. Further detail on capital
management is provided on pages
189 and 190.
Corporate responsibility
Our concentration on high standards of corporate responsibility
reduces environmental, social and governance (ESG) risks.
Among these is climate change risk. While the nature of our
operations mean we have a limited, direct impact on the
environment, we have set robust reduction targets including
for energy and carbon emissions.
As we state in our Taskforce on Climate-Related Financial
Disclosure (TCFD) on page 73, increased severity of extreme
weather events could interrupt normal business operations (which
is also reflected in our statement of principal risks related to
technology and business resilience on page 90). To counter this,
we operate comprehensive business continuity programmes.
And to help our customers and other stakeholders, we produce
information, data and analytics that can support their carbon
reductions. One example is more accurate flight emissions data
produced by Cirium in our Risk business, which we have also
used in calculating our own business flight data (see page 31).
I chair our Environmental Checkpoint Committee which met
regularly through the year to ensure progress on our key metrics
including for Scope 1 and 2 emissions. Among other measures,
to progress our commitment to achieving net zero emissions by
2040 at the latest as a signatory to the Climate Pledge, we raised
the internal carbon price paid by our businesses to $30 tCO
2
e,
which will rise higher in future years.
In 2022, we achieved group-wide certification of our
Environmental Management System (EMS). Green Teams,
employee-led environmental groups representing 53% of
employees in 44 facilities, helped us implement our EMS and
achieve local environmental improvements.
Refer to the Corporate Responsibility Report on pages 29 to 80
for further information.
Nick Luff
Chief Financial Officer
RELX
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Principal and emerging risks
RELX has a sophisticated risk management framework that is embedded
into the operations of the business and continuously reviewed and overseen
by the Audit Committee.
Risk identification, evaluation and management
RELX has established a well-embedded risk management
framework based on the Internal Control-Integrated Framework
(2013) by the Committee of Sponsoring Organisations of the
Treadway Commission (COSO). Through this framework risks
are identified, assessed, mitigated, and monitored in an effective
and consistent way across the business.
RELX uses the 3 Lines of Defence model and aligns its systems of
risk management and internal control with the COSO framework.
Business Areas are required to maintain systems of risk
management and internal control which are appropriate to the
nature and scale of their activities and address all significant
strategic, operational, financial, legal and regulatory compliance
and reputational risks that they face. The RELX PLC Board
monitors the system of internal control and risk management
and performs an annual assessment of its effectiveness.
Consideration of current and emerging risks
Our risk management process considers the likelihood and
impact of risks, the timeline over which a risk could arise, the
direction in which risks are trending and the effectiveness of our
mitigation efforts. In addition to consideration of current risks,
we also identify emerging risks which could impact our business
in the next 3-5 years. Examples of emerging risks include evolving
privacy laws across global jurisdictions and data localisation
requirements. We mitigate these risks by maintaining a dialogue
with regulatory authorities and ensuring a robust data privacy and
governance structure. Another set of emerging risks are climate
related risks which are further described on pages 73 to 78 in the
Corporate Responsibility section of this report.
Covid-19 pandemic
The impact of the Covid-19 pandemic on RELX’s business
continues to depend on a range of factors which we are not able
to accurately predict, including the duration and scope of the
pandemic, and the duration and extent of containment measures,
such as quarantines or other travel restrictions and site closures.
These measures have had and may continue to have an impact
on face-to-face events in our Exhibitions business with ongoing
changing government restrictions on in-person events,
in particular in China.
The principal and emerging risks facing the business, which
have been assessed by the Audit Committee and Board,
are described below.
EXTERNAL RISKS
Risk
Description and impact
Mitigation
Geopolitical,
economic
and market
conditions
Demand for our products and services, and our ability to
operate internationally, may be adversely impacted by
geopolitical, economic and market conditions beyond
our control. These include acts of war and civil unrest;
political conflicts and tensions; international sanctions;
the impact of the effect of changes in inflation and
interest rates in major economies; trading relations
between the United States, Europe, China and other
major economies; as well as levels of government
and private funding for our markets.
Our business is focused on professional markets which
have generally been more resilient in periods of economic
downturn. We deliver information solutions, many on a
subscription and recurring revenue basis,
which are important to our customers’ effectiveness
and efficiency. We operate diversified business areas in
terms of sectors, markets, customers, geographies and
products and services. We have multi-year contracts
in place for much of the revenue base, and underlying
demand drivers in many areas are not directly exposed
to economic growth (e.g. scientific research, healthcare,
fraud risk, financial crime compliance). Since the last
major global recession after the 2008 financial crisis,
RELX is significantly less dependent on revenue streams
that were impacted in that period (e.g. advertising,
employment screening). We have extended our position
in long-term global growth markets through organic
new launches supported by the selective acquisitions.
We continuously monitor economic and political
developments to assess their impact on our strategy which
is designed to mitigate these risks. In response to specific
uncertainties, our business areas engage in scenario
planning and develop contingency plans where relevant
and consider exiting business areas and markets that no
longer fit our strategy.
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EXTERNAL RISKS
Risk
Description and impact
Mitigation
Intellectual
property
rights
Our products and services include and utilise intellectual
property. We rely on trademark, copyright, patent, trade
secret and other intellectual property laws to establish
and protect our proprietary rights in this intellectual
property. There is a risk that our proprietary rights could
be challenged, limited, invalidated or circumvented,
which may impact demand for and pricing of our
products and services. Copyright laws are subject to
national legislative initiatives, as well as cross-border
initiatives such as those from the European Commission
and increased judicial scrutiny in several jurisdictions in
which we operate. This creates additional challenges
for us in protecting our proprietary rights in content
delivered through the internet and electronic platforms.
We actively engage in developing and promoting the legal
protection of intellectual property rights. Our subscription
contracts with customers contain provisions regarding the
use of proprietary content. We are vigilant as to the use of
our intellectual property and, as appropriate, take legal
action to challenge illegal content distribution sources.
Data Privacy
Our business relies extensively on content and data from
public records, governmental authorities, publicly
available information and media, customers, end users
and other information companies, including competitors.
Changes in data privacy legislation, regulation, and/or
enforcement could impact our ability to collect and
utilise data, potentially affecting the effectiveness of our
products. Failure or perceived failure to comply with
requirements for proper collection, use, storage and
transfer of data, by ourselves, or our third-party service
providers, or other data loss incidents may damage our
reputation, divert time and effort of management and
other resources, and expose us to risk of loss, fines and
penalties, litigation and increased regulation.
We maintain an active dialogue with regulatory authorities
on privacy and other data-related issues, and promote,
with others, the responsible use of data.
We have established data privacy principles, governance
structures and control programmes designed to ensure
data privacy requirements are met and which protect data
and individuals’ privacy across all jurisdictions where we
operate. We have put in place and test response plans to
manage incidents where data privacy might be
compromised. We embed our data privacy principles in
agreements with third parties.
We have assurance programmes to monitor compliance
and conduct training and awareness programmes to
ensure that we comply with relevant legislative, regulatory
and contractual requirements.
Payment
model
evolution
Traditionally our Scientific, Technical & Medical (STM)
primary research content publishing business has
operated on a pay to read model, where readers or their
institutions, as users of the content pay, and authors
publish for free. Over time, an alternative model has
gained traction where authors or their institutions or
funding bodies prefer to pay to publish their research,
so it is freely available to read. The latter model is
commonly referred to as Open Access. There is
continued debate in government, academic and library
communities, regarding the payment models and the
extent to which research content should be freely
available to read, either immediately on publication or in
some form after a period following publication. Changes
in customer choice or regulation in this area could
impact the mix and overall level of revenue generated
by our primary research publishing business.
We engage extensively with stakeholders in the STM
community to better understand their needs and deliver
value to them. We provide both pay to read and pay to
publish models for our services as well as combinations
of the two to support our customers diverse needs and
preferences. Combined deals can include several
components: pay to read, pay to publish and databases and
tools, and are often on a subscription basis. Both payment
models are available on a subscription or transactional
basis. We aim to serve our customers in any way that they
would like, and we work collaboratively with them and
support them to achieve their research goals.
We focus on the integrity and quality of research through
the editorial and peer review process; we invest in efficient
editorial and distribution platforms and in innovation in
platforms and tools to make content and data more
accessible and actionable; and we develop our research
systems to provide capabilities to manage different
payment models. We ensure vigilance on plagiarism
and the long-term preservation of research findings.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
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STRATEGIC RISKS
Risk
Description and impact
Mitigation
Customer
acceptance
of our
products
Our business is dependent on the continued demand by
our customers for our products and services and the
value placed on them. They operate in highly competitive
and dynamic markets, and the means of delivery,
customer demand for, and the products and services
themselves, continue to change in response
to rapid technological innovations, legislative and
regulatory changes, the entrance of new competitors,
and other factors. Failure to anticipate and quickly adapt
to these changes, or to deliver enhanced value to our
customers, could impact demand for our products and
services and consequently adversely affect our revenue
or the long-term returns from our investment in
electronic product and platform initiatives.
We are focused on the needs and economics of our
customers. We gain insights into the markets that we
serve, evolving customers’ needs, the potential application
of new technologies and business models, and the actions
of competitors and disrupters. These insights inform our
strategic and operational priorities. We continuously invest
significant resources in our products and services, and the
infrastructure to support them. We leverage user centred
design and development methods and customer analytics
and invest in new and enhanced technologies to provide
content and innovative solutions that help them achieve
better outcomes and enhance productivity.
Acquisitions
We supplement our organic development with selected
acquisitions. If we are unable to generate the anticipated
benefits such as revenue growth and/or cost savings
associated with these acquisitions, it could adversely
affect return on invested capital and financial condition
or lead to an impairment of goodwill or intangibles.
Acquisitions are made within the framework of our
overall strategy, which emphasises organic development.
We have a well formulated process for reviewing and
executing acquisitions and for managing the post-
acquisition integration. This process is underpinned with
clear strategic, financial and ethical criteria. We closely
monitor the integration and performance of acquisitions.
OPERATIONAL RISKS
Risk
Description and impact
Mitigation
Technology
and business
resilience
Our business is dependent on electronic platforms and
networks, primarily the internet, for delivery of our
products and services. These could be adversely
affected if our electronic delivery platforms, networks or
supporting infrastructure experience a significant
failure or interruption. Climate change may increase the
intensity and frequency of severe weather events which
increases the risk of significant failure.
We have established procedures for the protection of our
business and technology assets. These include the
development and testing of business continuity plans,
including technical resilience plans and back-up delivery
systems, to reduce business disruption in the event of
major technology or infrastructure failure, terrorism or
adverse weather incidents.
Face-to-face
events
Face-to-face events are susceptible to economic cycles,
communicable diseases, severe weather events and
other natural disasters, terrorism and assignment of
venues to alternative uses. Each or any of these may
impact exhibitors’ and visitors’ desire and ability to travel
in person to events and the availability of event venues.
These factors each have the potential to reduce
revenues, increase the costs of organising events and
adversely affect cash flows and reputation.
We actively review our ability to host events considering
the availability of venues and national and local regulations
including those related to health, travel and security.
Where regulations permit us to hold events, we take
appropriate measures for the well being and safety of
exhibitors, visitors and employees. The physical events
being run are supported by enhanced digital services,
including remote participation by both exhibitors
and attendees.
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OPERATIONAL RISKS
Risk
Description and impact
Mitigation
Cyber
security
Our business maintains and uses online databases and
platforms delivering our products and services, which
we rely on, and provide data to third parties, including
customers and service providers. These databases and
information are a target for compromise and face a risk
of unauthorised access and use by unauthorised parties
including through cyber, ransomware and phishing
attacks on us or our third-party service providers.
Our cyber security measures, and the measures used by
our third-party service providers, may not detect or
prevent all attempts to compromise our systems, which
may jeopardise the security of the data we maintain or
may disrupt our systems. Failures of our cyber security
measures could result in unauthorised access to our
systems, misappropriation of our or our users’ data,
deletion or modification of stored information or other
interruption to our business operations. As techniques
used to obtain unauthorised access to or to sabotage
systems change frequently and may not be known until
launched against us or our third-party service providers
we may be unable to anticipate or implement adequate
measures to protect against these attacks and our
service providers and customers may likewise be
unable to do so.
Compromises of our or our third-party service
providers’ systems could adversely affect our financial
performance, damage our reputation and expose us to
risk of loss, fines and penalties, litigation and increased
regulation.
We have established security programmes which are
constantly reviewed and updated to address developments
in the threat landscape with the aim of ensuring our ability
to prevent, respond to and recover from a cyber-attack
or ransomware attack, that data is protected and our
business infrastructures and those of our third-party
service providers continue to operate.
We have governance mechanisms in place to design
and monitor common policies and standards across
the Company.
We invest in appropriate technological and physical
controls which are applied across the enterprise in a
risk-based security programme which operates at the
infrastructure, application and user levels. These controls
include, but are not limited to, infrastructure vulnerability
management, application scanning and penetration
testing, network segmentation, encryption and logging
and monitoring. We provide regular training and
communication initiatives to establish and maintain
awareness of risks at all levels of our Company. We have
appropriate incident response plans to respond to threats
and attacks which include procedures to recover and
restore data and applications in the event of an attack.
We maintain appropriate information security policies
and contractual requirements for our Company and
run programmes monitoring the application of our data
security and resilience policies by third party service
providers. We use independent internal and third-party
auditors to test, evaluate, and help enhance our
procedures and controls.
Supply chain
dependencies
Our organisational and operational structures depend
on suppliers including outsourced and offshored
functions, as well as cloud service providers. Poor
performance, failure or breach of third parties to whom
we have contracted could adversely affect our business
performance, reputation and financial condition.
We source content to enable information solutions for
our professional customers. The disruption or loss of
data sources, either because of data localisation
regulations, or because data suppliers decide not to
supply them, may impose limits on our collection and use
of certain kinds of information and our ability to
communicate, offer or make such information available
or useful to our customers.
We select our vendors with care and establish contractual
service levels that we closely monitor, including through
key performance indicators and targeted supplier audits.
We have developed business continuity plans to reduce
disruption in the event of a major failure by a vendor. We
have a formal supplier resilience program to identify and
manage critical suppliers across the business. A risk
register is used to document any unique supplier risks and
associated mitigation plans, due diligence is performed
annually, regular resilience discussions are held, and our
contractual terms enable us to audit supplier resilience
plans/procedures.
We have a multitude of data sources that we use to develop
solutions for our customers and regularly monitor the
market for new data sources in order to minimize
dependence on any single provider. Where content is
supplied to us by third parties, we aim to have contracts
which provide mutual commercial benefit.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
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OPERATIONAL RISKS
Risk
Description and impact
Mitigation
Talent
The implementation and execution of our strategies and
business plans depend on our ability to recruit, motivate,
develop and retain a diverse population of skilled
employees and management. We compete globally
and across business sectors for diverse talented
management and skilled individuals, particularly
those with technology and data analytics capabilities.
An inability to recruit, motivate or retain such people
could adversely affect our business performance.
Failure to recruit and develop talent regardless of
gender, race or other characteristics could adversely
affect our reputation and business performance.
We monitor capability needs and remuneration schemes
are tailored to attract and motivate the best talent available
at an appropriate level of cost. We actively seek feedback
from employees, which feeds into plans to enhance
employee engagement, motivation and development.
Our focus on an inclusive culture results in a diverse
workforce and environment that respects individuals
and their contributions.
FINANCIAL RISKS
Risk
Description and impact
Mitigation
Pensions
We operate a number of pension schemes around the
world, including local versions of the defined benefit type
in the UK and the United States. The US scheme is closed
to future accruals. The UK scheme has been closed to
new hires since 2010. The members who continue to
accrue benefits now represent a small and reducing
portion of the overall UK based workforce. The assets
and obligations associated with these pension schemes
are sensitive to changes in the market values of the
scheme’s investments and the market-related
assumptions used to value scheme liabilities. Adverse
changes to asset values, discount rates, longevity
assumptions or inflation could increase funding
requirements.
We have professional management of our pension
schemes and we focus on maintaining appropriate asset
allocation and plan designs. We review our funding
requirements on a regular basis with the assistance of
independent actuaries and ensure that the funding plans
are appropriate. We seek to manage pension liabilities by
reviewing pension benefits provided to staff as well as the
structure of scheme arrangements.
Tax
Our business operates globally, and our profits are
subject to taxation in many different jurisdictions and at
differing tax rates. Tax laws that currently apply to our
business may be amended by the relevant authorities or
interpreted differently by them, and these changes could
adversely affect our reported results.
We maintain an open dialogue with tax authorities and
are vigilant in ensuring that we comply with current tax
legislation. We have clear and consistent tax policies and
tax matters are dealt with by a professional tax function,
supported by external advisers. As outlined in the Chief
Financial Officer’s report on pages 82 to 87 we engage
with tax authorities and international organisations.
We continue to monitor legislative developments in
the jurisdictions in which we operate and consider
the potential impacts of proposed regulation changes
under various scenarios. The principles we adopt in our
approach to tax matters can be found on our website at
www.relx.com/go/taxprinciples
.
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FINANCIAL RISKS
Risk
Description and impact
Mitigation
Treasury
The RELX PLC consolidated financial statements
are expressed in pounds sterling and are subject to
movements in exchange rates on the translation of the
financial information of businesses whose operational
currencies are other than sterling. The United States is
our most important market and, accordingly, significant
fluctuations in the US dollar exchange rate could
significantly affect our reported results. We also earn
revenues and incur costs in a range of other currencies,
including the euro and the yen, and significant
fluctuations in these exchange rates could also
significantly impact our reported results.
Macroeconomic, political and market conditions may
adversely affect the availability and terms of short and
long-term funding, volatility of interest rates, the credit
quality of our counterparties, currency exchange rates
and inflation. The majority of our outstanding debt
instruments are, and any of our future debt instruments
may be, publicly rated by independent rating agencies.
Our borrowing costs and access to capital may be
adversely affected if the credit ratings assigned to our
debt are downgraded.
Our approach to capital structure and funding is described
in the Chief Financial Officer’s report on pages 82 to 87. The
approach to the management of treasury risks is described
in note 17 to the consolidated financial statements.
REPUTATIONAL RISKS
Risk
Description and impact
Mitigation
Ethics
As a global provider of professional information
solutions we, our employees and major suppliers are
expected to adhere to high standards of integrity and
ethical conduct, including those related to anti-bribery
and anti-corruption, fraud, sanctions, competition and
principled business conduct. A breach of generally
accepted ethical business standards or applicable laws
could adversely affect our business performance,
reputation and financial condition.
Our Code of Ethics and Business Conduct is provided
to every employee and is supported by training and
communication. It encompasses such topics as competing
fairly, prohibiting corrupt business practice and fair
employment practices and encouraging open and
principled behaviour. We have well-established processes
for monitoring, reporting and investigating instances
of unethical conduct. Our major suppliers are required
to adhere to our Supplier Code of Conduct.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
94
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Annual Report 2022 | Financial review
Viability statement
The UK Corporate Governance Code requires Directors to
assess the viability of the Group over an appropriate period
of time. The Directors have made the assessment that given
the nature of the Group’s business with a high proportion of
recurring revenue, a typical contract length of three years in
many of its subscription agreements and a balanced debt
maturity profile, a viability period of three years, aligned with
the Group’s annual strategy plan, is suitable to assess the risks
outlined on pages 88 to 93.
Assessing the Group’s Prospects
The Group develops information-based analytics and decision
tools for professional and business customers in the Risk,
Scientific, Technical & Medical (STM), Legal and Exhibitions
sectors. The Market Segments section describes each area’s
business model, strategic priorities, market opportunities and
competition, showing how the Group is positioned to create
value for shareholders over the longer term.
The Group’s prospects are assessed annually through the
strategic planning process which includes a review of
assumptions made and an assessment of each business area’s
longer-term plan. The resulting three-year strategy plan forms
the basis for Group and divisional targets and in-year budgets.
Objectives are set with consideration given to the economic
and regulatory environment, and to customer trends, as well
as incorporating risks and opportunities. The most recent
three-year strategy business plan was agreed by the Directors
in September 2022 and updated in February 2023. Separate
from the annual strategy plan, the Directors periodically receive
updates from business area management on their operations,
prospects and risks. Whilst these reviews and discussions
naturally focus more closely on the more immediate risks facing
the business within the three-year strategy planning period,
they also cover the risks described in the principal risks section
on pages 88 to 93.
Assessing the Group’s Viability
The three-year strategy plan for our business areas includes
management’s assessment of the anticipated operational risks
affecting the business. Management then considered the
viability of the business in various downside scenarios, the most
severe of which assumes the simultaneous occurrence of Cyber
security, Intellectual property rights and Face-to-face events
risks resulting in a decline of around 30% in adjusted operating
profit in each of 2023 to 2025, and the closure of the debt capital
markets preventing the refinancing of scheduled liabilities. It is
assumed that the first extension option on the Group’s undrawn
$3bn revolving credit facility will be exercised in April 2023,
taking the maturity to April 2026. The resulting analysis, which
assumed no share buybacks, modest acquisition activity and
a growing dividend, determined that the Group would have
sufficient liquidity to refinance all maturing term debt.
The impact of the Covid-19 pandemic on our three largest
business areas, Risk, STM and Legal, which contribute
approximately 90% of the Group’s revenue, was limited, with
continued growth in revenues and profits since the start of the
pandemic in 2020. The impact on Exhibitions was significant,
with only limited activity for a period, followed by a recovery as
venues re-opened. Face-to-face events have now resumed in
almost all major geographies, but there remains an ongoing risk
of cancellation or rescheduling of events. This risk has been
considered as part of the downside scenarios described above.
We remain focused on successfully pursuing our strategic
priority of organically developing increasingly sophisticated
information-based analytics and decisions tools that deliver
enhanced value to our customers, supplemented by selective
acquisitions that support our organic growth. We believe the
combination of compelling structural opportunities combined
with an appropriate capital structure will continue to drive
long-term value.
Based on this assessment and the scenario modelling that
shows sufficient liquidity even with the simultaneous
occurrence of principal risks and the closure of the debt capital
markets, the Directors confirm that they have a reasonable
expectation that the Group will be able to continue its operations
and meet its liabilities as they fall due over the next three years
and are not aware of any longer-term operational or strategic
risks that would result in a different outcome from the
three-year review.
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The Strategic Report, as set out on pages 2 to 95, has been approved by the Board of RELX PLC.
By order of the Board
Registered Office
Henry Udow
1-3 Strand
Company Secretary
London
15 February 2023
WC2N 5JR
Going concern
The Directors have adopted the going concern basis in
preparing these accounts after assessing the potential impact
on the business of the principal risks over the 18 months to
30 June 2024 and during the longer period over which the
Group’s viability has been assessed, as described on page 94.
Management forecasts reflect a downside scenario which
includes the simultaneous occurrence of principal risks, which
combined would reduce adjusted operating profit by around
30%. We have also assumed an inability to access the debt
capital markets. Under this scenario, the Group will still have
substantial liquidity headroom on its undrawn $3bn revolving
credit facility (which was refinanced during 2022 and no longer
contains a financial covenant). Having considered this downside
scenario, the Directors believe that the Group is well-positioned
to manage its business risks and that adequate resources
exist for the Group to continue in operational existence for the
foreseeable future. They therefore consider it is appropriate
to adopt the going concern basis in preparing the 2022
financial statements.
A commentary on the Group’s cash flows, financial position and
liquidity for the year ended 31 December 2022 is set out in the
Chief Financial Officer’s report on pages 82 to 87. This shows that
after taking account of available cash resources and committed
bank facilities that back up short-term borrowings, all of the
Group’s borrowings that mature in the period to 30 June 2024
can be repaid in full. The Group’s policies on liquidity, capital
management and management of risks relating to interest
rate, foreign exchange and credit exposures are set out on
pages 189 to 194. The principal risks facing the Group are set
out on pages 88 to 93.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
96
96
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In this section
98
Board Directors
100
RELX Senior Executives
102
Chair’s introduction to corporate governance
103
Corporate Governance Review
119
Report of the Nominations Committee
121
Directors’ Remuneration Report
143
Report of the Audit Committee
147
Directors’ Report
Governance
RELX
Annual report including corporate responsibility report and financial statements 2022 |
97
97
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Annual Report 2022
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
98
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Annual Report 2022 | Governance
Executive Directors
Non-Executive Directors
Erik Engstrom (59)
Chief Executive Officer
Appointed:
Chief Executive Officer of RELX since
November 2009. Joined as Chief Executive Officer
of Elsevier in 2004.
Other appointments:
Non-Executive Director
of Smith & Nephew plc.
Past appointments:
Prior to joining was a partner
at General Atlantic Partners. Before that was
President and Chief Operating Officer of Random
House Inc and President and Chief Executive
Officer of Bantam Doubleday Dell, North America.
Began his career as a consultant with McKinsey.
Education:
Holds a BSc from Stockholm School
of Economics, an MSc from the Royal Institute of
Technology in Stockholm, and gained an MBA from
Harvard Business School as a Fulbright Scholar.
Nationality:
Swedish
Nick Luff (55)
Chief Financial Officer
Appointed:
September 2014
Other appointments:
Non-Executive Director of
Rolls-Royce Holdings plc.
Past appointments:
Prior to joining the Group was
Group Finance Director of Centrica plc from 2007.
Before that was Chief Financial Officer at The
Peninsular & Oriental Steam Navigation Company
(P&O) and its affiliated companies. Began his
career as an accountant with KPMG. Formerly a
Non-Executive Director of QinetiQ Group plc and
Lloyds Banking Group plc.
Education:
Has a degree in Mathematics from
Oxford University and is a qualified UK Chartered
Accountant.
Nationality:
British
Paul Walker (65)
R
N
C
Chair
Appointed:
March 2021
Other appointments:
Chair of Ashtead Group plc.
Past appointments:
Chair of Halma plc and Chief
Executive Officer and Chief Financial Officer of
Sage Group plc. Non-Executive Director of
Experian plc, Diageo plc, Sophos Group plc and
Mytravel Group plc.
Education:
Has a degree in Economics from York
University, and is a qualified UK Chartered
Accountant.
Nationality:
British
Board Directors
June Felix (66)
A
C
R
Non-Executive Director; Independent
Appointed:
October 2020
Other appointments:
Chief Executive Officer
of IG Group Holdings plc. Member of the Board
of Advisers of the London Technology Club.
Past appointments:
Served as a Non-Executive
Director of IG Group Holdings plc from 2015 until the
time of her appointment as Chief Executive Officer
in October 2018. Previously held various executive
management positions at a number of large
multinational businesses in Hong Kong, London and
New York, including Verifone, IBM, Citibank and
Chase Manhattan. Earlier in her career, was a
strategy consultant with Booz Allen Hamilton.
Nationality:
American
Wolfhart Hauser (73)
R
N
C
Non-Executive Director; Independent
Senior Independent Director
Chair of the Remuneration Committee
Appointed:
April 2013
Other appointments:
Non-Executive Director of
Associated British Foods plc.
Past appointments:
Chair of FirstGroup plc until
July 2019. Chief Executive Officer of Intertek Group
plc from 2005 until 2015. Prior to that he was
Chief Executive Officer of TÜV Sud AG between
1998 and 2002 and Chief Executive Officer of TÜV
Product Service GmbH for ten years. Formerly
a Non-Executive Director of Logica plc.
Education:
Holds a master’s degree in Medicine
from Ludwig-Maximilian-University Munich and
a Medical Doctorate from Technical University
Munich.
Nationality:
German
Charlotte Hogg (52)
A
C
Non-Executive Director; Independent
Appointed:
December 2019
Other appointments:
Executive Vice President and
Chief Executive Officer for the European Region of
Visa Inc. Executive Director of Visa Europe Limited.
Non-Executive Director of NowTeach and a
Director of Kettlethorpe Sport Horses Limited.
Past appointments:
Chief Operating Officer at
the Bank of England. Before that Head of Retail
Banking for Santander UK, Managing Director UK
and Ireland for Experian plc, and held senior roles
at Morgan Stanley in New York and London.
Nationality:
British, American and Irish
RELX
Annual Report 2022 | Board Directors
99
Board Committee membership key
A
Audit Committee
R
Remuneration Committee
N
Nominations Committee
C
Corporate Governance Committee
Committee Chair
Andrew Sukawaty (67)
A
C
Non-Executive Director; Independent
Appointed:
April 2019
Other appointments:
Chair of Inmarsat. Director
of Hg Capital LLP and Matrix 42. Founding Partner
of Corten Capital.
Past appointments:
Was formerly the Senior
Independent Director of Sky plc between 2013
and 2018. Previously was Chair of Ziggo NV,
Xyratex Group Ltd,and Telenet Group holdings NV,
and deputy Chair of O2 plc. Also served as a
Non-Executive Director of Telefonica Europe
(following its acquisition of O2 plc) and Powerwave
Technologies Inc, and additionally as Chief
Executive of Inmarsat plc, Sprint Corp and NTL
Group Ltd.
Nationality:
American
Robert MacLeod (58)
R
N
C
Non-Executive Director; Independent
Appointed:
April 2016
Other appointments:
None.
Past appointments:
Was previously Chief
Executive of Johnson Matthey plc for eight years
after five years as Group Finance Director. Prior to
this spent five years as Group Finance Director of
WS Atkins plc, having joined as Group Financial
Controller in 2003. From 1993 to 2002, held a
variety of senior finance and M&A roles with
Enterprise Oil plc in the UK and US. Formerly
a Non-Executive Director of Aggreko plc.
Nationality:
British
Marike van Lier Lels (63)
N
C
Non-Executive Director; Independent
Workforce Engagement Director
Appointed:
July 2015
Other appointments:
Member of the Supervisory
Boards of NS (Dutch Railways), Dura Vermeer,
Post NL and Innovation Quarter.
Past appointments:
Member of the Supervisory
Boards of TKH Group NV, Royal Imtech NV, Maersk
BV, KPN NV, USG People NV and Eneco Holding NV,
and Executive Vice President and Chief Operating
Officer of the Schiphol Group. Prior to joining
Schiphol Group, was a member of the Executive
Board of Deutsche Post Euro Express and held
various senior positions with Nedlloyd. Member
of various Dutch governmental advisory boards.
Nationality:
Dutch
Suzanne Wood (62)
A
C
Non-Executive Director; Independent
Chair of the Audit Committee
Appointed:
September 2017
Other appointments:
Non-Executive Director of
Ferguson plc.
Past appointments:
Served as Senior Vice
President and Chief Financial Officer of Vulcan
Materials Company from September 2018 until
September 2022. Served as Group Finance
Director of Ashtead Group plc from 2012 to 2018.
Chief Financial Officer of Ashtead Group’s largest
subsidiary, Sunbelt Rentals Inc, from 2003 until
2012. Previously, also served as Chief Financial
Officer of two US publicly listed companies,
Oakwood Homes Corporation and Tultex
Corporation.
Nationality:
American
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
100
RELX
Annual Report 2022 | Governance
RELX Senior Executives
Mark Kelsey
Chief Executive Officer
Risk
Kumsal Bayazit
Chief Executive Officer
Scientific, Technical
& Medical
Mike Walsh
Chief Executive Officer
Legal
Hugh M Jones IV
Chief Executive Officer
Exhibitions
Joined in 1983. Appointed
to current position in 2012.
Joined in 2004. Appointed
to current position in 2019.
Joined in 2003. Appointed
to current position in 2011.
Joined in 2011. Appointed
to current position in 2020.
Has held a number of senior
positions across the Group over
the past 30 years. Previously
Chief Operating Officer and
then Chief Executive Officer
of Reed Business Information.
Studied at Liverpool University
and received his MBA from
Bradford University.
Previously President, Exhibitions
Europe, Chief Strategy Officer,
RELX, Chair, RELX Technology
Forum and Executive Vice
President of Global Strategy
and Business Development for
LexisNexis. Prior to that worked
with Bain & Company in New York,
Los Angeles, Johannesburg
and Sydney. Holds an MBA from
Harvard Business School and
is a graduate of the University
of California at Berkeley.
Previously CEO of LexisNexis
US Legal Markets and Director
of Strategic Business Development
Home Depot. Prior to that was
a practising attorney at Weil,
Gotshal and Manges in Washington
DC and served as a consultant
with The Boston Consulting Group.
Holds a Juris Doctor degree from
Harvard Law School and is a
graduate of Yale University.
Previously Group Managing
Director, Accuity, ICIS, Cirium,
and EG within Risk. Prior to that
was Chief Executive Officer,
Accuity. Holds an MBA from the
Ross School of Business at the
University of Michigan and is a
graduate of Yale University.
RELX
Annual Report 2022 | RELX Senior Executives
101
Rose Thomson
Chief Human Resources
Officer
Vijay Raghavan
Chair, RELX Technology
Forum and Chief
Technology Officer, Risk
Henry Udow
Chief Legal Officer
and Company Secretary
Jelena Sevo
Chief Strategy Officer
Youngsuk ‘YS’ Chi
Director of RELX
Corporate Affairs
and Chair, Elsevier
Joined in 2021.
Appointed to current
position at that time.
Joined in 2002. Appointed
to current position in 2019.
Joined in 2011.
Appointed to current
position at that time.
Joined in 2011. Appointed
to current position in 2019.
Joined in 2005. Appointed
to current position in 2011.
Previously Chief Human
Resources Officer at
Standard Life Aberdeen.
Before that, held various
senior human resources
roles at Travelport
International, Barclays
Bank, The Coca-Cola
Company, Coles Group
and The Walt Disney
Company.
Holds an MA in business
management from
Macquarie University
Graduate School of
Management and a
BA in Psychology,
Macquarie University.
Previously Vice President
of Technology, LexisNexis
Insurance Solutions. Prior
technology executive
positions at ChoicePoint,
Paragon Solutions,
Primus Knowledge
Solutions, and McKesson.
Holds a bachelor’s
degree in electrical and
electronics engineering
from the Birla Institute of
Technology and Science,
Pilani, a master’s degree
in cybersecurity from
the Georgia Institute
of Technology, and
completed an advanced
management program for
executives at MIT Sloan
School of Management.
Previously Chief Legal
Officer and Company
Secretary of Cadbury plc
having spent 23 years
working with the company.
Prior to that worked at
Shearman & Sterling
in New York and London.
Holds a Juris Doctor
degree from the
University of Michigan
Law School and a
bachelor’s degree from
the University of Rochester.
Previously Director of Tax
Markets for LexisNexis
UK. Prior to that, various
senior management roles
in LexisNexis and Elsevier.
Previously a consultant at
Bain & Co and Booz Allen
Hamilton. Holds an MBA
from Harvard Business
School, a master’s degree
in law from Georgetown
University and a degree
in law from the
University of Belgrade.
Previously was President
and Chief Operating Officer
of Random House, founding
Chairman of Random
House Asia and Chief
Operating Officer for
Ingram Book Group.
Holds an MBA from
Columbia University
and is a graduate
of Princeton University.
Market segments
Governance
Financial statements and
other information
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Corporate Responsibility
Overview
102
RELX
Annual Report 2022 | Governance
Chair’s introduction to corporate governance
Board decision-making
The Board actively takes into account the views of the Company’s
stakeholders when making decisions. Stakeholder engagement
remains a key area of focus for the Board. We listen to our customers,
communities, shareholders, regulators, suppliers and employees
and the insights from this engagement help to shape our strategy
and the decisions we take as a Board.
The Board’s significant decisions during the year, and its considerations
in making them, are set out on pages 107 to 108. These pages are
incorporated into the Directors’ section 172 Statement, which is set
out on page 30, and therefore into the RELX Strategic report. This
statement explains how the Board’s decision-making during the year
has promoted the success of the Company having regard, amongst
other things, to those matters set out in section 172 of the Companies
Act 2006.
Remuneration Policy
Our proposed Directors’ Remuneration Policy which is intended
to apply for the coming three years, will be put to shareholders for
approval at the 2023 AGM. The current policy and subsequent annual
remuneration reports received strong support from shareholders
and in preparing the proposed policy we engaged with shareholders
representing approximately 60% of our share capital. The Board
believes that our remuneration structure remains appropriate, and we
are not, therefore, proposing any significant changes in the new policy.
Details of the proposed policy and the implementation of the current
policy during the year, can be found in the Directors’ Remuneration
Report on pages 121 to 142.
Board changes and effectiveness
Following the conclusion of the 2022 AGM, Linda Sanford retired from
the Board, having served as a Director since 2012. The Board would like
to thank Ms Sanford for the valuable contribution she made to the work
of the Board and the Committees on which she served.
The 2023 AGM will mark the retirement of Dr Wolfhart Hauser
from the Board. Dr Hauser has served as a Director since 2013, and
currently holds the roles of Senior Independent Director and Chair of
the Remuneration Committee. On behalf of the Board, I would like to
thank Dr Hauser for the valued contribution he has made in both roles.
As previously announced, following the conclusion of the 2023 AGM,
Suzanne Wood, will succeed Dr Hauser as Senior Independent
Director, and Robert MacLeod will take on the role of Chair of the
Remuneration Committee.
As Chair, I am responsible for ensuring that the effectiveness of the
Board, its Committees and each individual Director is evaluated
annually. For 2022, an internal evaluation process was carried out with
the support of the Company Secretary. The outcome of the evaluation
confirmed that the Board and Committees continue to operate
effectively, and that all of our Directors continue to demonstrate
commitment to their role. For further detail on the Board evaluation
process this year and its outcomes, please see page 116.
Paul Walker
Chair
15 February 2023
RELX has a long-established, structured
and disciplined approach to governance
that is fully embedded in the Company’s
culture and values.
Introduction
On behalf of the Board, I am pleased to introduce the Corporate
Governance Review for the year ended 31 December 2022. This report
sets out our approach to effective corporate governance and outlines
the key areas of focus of the Board and its activities during the year as
we continue to drive long-term value creation for all our stakeholders.
This is my second year as your Chair, and I am pleased to report that,
following the relaxation of the social distancing measures introduced
in response to the Covid-19 pandemic, we have been able to resume
face-to face Board and Committee meetings and activities, and, in
April 2022, to hold our first in-person Annual General Meeting (AGM)
since 2019. However, while the uncertainties of the pandemic may have
receded, other global economic and political challenges have emerged.
RELX has responded to these challenges effectively, driving strong
growth and financial performance to ensure the continued delivery
of the Company’s strategy. I would like to thank my fellow Directors,
the Senior Executives and all of RELX’s employees for their resilience
and commitment during this time.
Our governance framework
As a premium listed company on the London Stock Exchange, RELX
reports in accordance with the 2018 UK Corporate Governance Code
(the Code). Please see page 103 for further details on the Company’s
compliance with the Code. The Company is committed to ensuring
that a robust corporate governance environment is in place. It has a
long-established, structured and disciplined approach to governance
that is fully embedded in the Company’s culture and values.
Effective governance practices are fundamental to RELX’s culture
of acting with integrity in all that we do, and support the Company’s
purpose to benefit society through its unique contributions, as set
out on page 104. The Board believes pursuing the highest levels of
corporate responsibility and delivering excellent financial performance
should be pursued in tandem, and that doing so will result in long-term,
sustainable shareholder value creation. It also provides confidence
to our stakeholders that the governance of RELX is appropriate for its
size and profile as a listed company, helps to manage our risks and
opportunities, ensures that our key stakeholders are appropriately
considered in the decisions that we make, and maintains our
corporate reputation.
Stakeholder engagement
Balancing stakeholders’ needs and views is a key part of Board
decision-making. Throughout 2022, the Board remained focused on
supporting our colleagues, our customers and the wider communities
in which we operate, whilst providing solutions and services that meet
the evolving needs of our customers. The Board continued to oversee
our substantial corporate responsibility programme, with specific
focus on RELX’s ESG activities. Please see pages 109 to 112 for our
stakeholder engagement activities.
103
RELX
Annual Report 2022
Corporate Governance Review
Compliance with the UK Corporate
Governance Code
RELX PLC is subject to the principles and provisions of the
2018 UK Corporate Governance Code (the Code), a copy of
which is available on the FRC’s website,
www.frc.org.uk
.
For the year ended 31 December 2022, the Board considers
that the Company fully applied the principles and complied
with the provisions of the Code, except for the pension
alignment required under provision 38, where full compliance
was achieved from 1 January 2023. The value of pension
benefits for current Executive Directors has decreased over
the last several years and, from 1 January 2023, are in line
with the level of benefit provided to the wider workforce under
the Company’s regular defined contribution plans (currently
capped at 11% of base salary in the UK), consistent with the
recommendations of the Investment Association. 2022
represented the final year of the phased reduction in Executive
Director pension benefits. Pension benefits received by the
Executive Directors during 2022 were in line with the terms of
the Directors’ Remuneration Policy approved by shareholders
in 2020. An updated Directors’ Remuneration Policy (set out on
pages 136 to 142 (inclusive)) will be put to shareholders for
approval at the Company’s 2023 AGM.
Our governance framework
RELX has in place a corporate governance framework of
leadership bodies, processes and supporting documentation
to ensure that RELX is appropriately directed, led and controlled
at all levels. The framework brings clarity to those who work for
and on behalf of RELX, in respect of what they are expected to
deliver, through strategic and financial objectives, and by clearly
setting out the values, standards and principles which form the
foundation of RELX’s business conduct. It provides the structure
within which RELX can deliver its strategy and safeguard the
long-term success of the Company for the benefit of its members
as a whole. The governance framework enables our organisation
to operate efficiently by providing clear guidelines for
decision-making and a range of workforce policies and practices.
Our governance supports our business areas as they grow and
develop and provides for effective use of resources and
appropriate levels of oversight and involvement from the Board
and its Committees, and senior leadership.
The framework takes into consideration the appropriate
implementation of systems and processes which define the
rights, responsibilities and accountabilities of individuals across
RELX, compliance applicable statutory and regulatory
requirements, the protection of our reputation and meeting our
own expectations to act with integrity in all that we do. It seeks to
allow our four business areas to operate with the speed, agility
and flexibility required to address the needs of their customers
in a timely and effective manner. Our internal control and risk
management arrangements, described on page 117, are a
central part of our governance framework and are monitored
by the Audit Committee and overseen by the Board.
Board leadership
The Board is responsible for promoting the long-term,
sustainable success of the Company. Through a programme of
scheduled meetings, it oversees RELX’s financial performance
and ensures its systems of risk management, internal control and
corporate governance are fit for purpose and effectively underpin
the delivery of its strategy.
RELX’s annual strategy review process comprehensively
assesses RELX’s strategic position and its key strategic options,
considering opportunities for and risks to its future success and
the long-term sustainability of our business model. At RELX,
there is a process in place to manage the Board’s annual agenda
to ensure that all necessary items are submitted for its
consideration at the appropriate time with sufficient supporting
information, and the Board has adequate time to discuss and
challenge strategic proposals. Board discussions are informed by
regular updates and presentations from senior management at
Board and Committee meetings and deep-dive sessions into
individual business areas, segments, and topics of strategic
relevance.
The Board sets RELX’s purpose and values as set out on page 104.
The Board regularly reviews the Group’s Operating and
Governance Principles, which provide an overview of the
processes, policies and controls in place to manage risk and
serves as a first point of reference for management in each
business area. The Board also approves RELX’s Code of Ethics
and Business Conduct (the Ethics Code) which sets out the
standards and principles with which the organisation expects
those who represent it to adhere, and provides clear direction and
guidance for building and maintaining the desired culture. The
Ethics Code outlines confidential procedures enabling employees
to report any concerns about compliance, or RELX’s financial
reporting practices, and is available on our website at
www.relx.com
.
The Board monitors RELX’s workforce policies and practices
to ensure that they are aligned with its values and continue to
support RELX’s long-term, sustainable success. Our workforce
policies and practices are explained in detail on pages 41 to 49.
Delegated authorities and Board Committees
The Board delegates certain responsibilities to each of its
principal Committees, which provide focused oversight and
report to the Board on material and relevant matters, as
appropriate. The Committees’ roles and responsibilities are set
out in each Committee’s Terms of Reference, available on our
website at
www.relx.com
. Each Committee’s responsibilities
are
summarised
on page 106 and further information is in the
respective Committee reports which start on pages 119, 121 and
143 and provide details on the work of each Committee during
the year.
There is a structure of delegated authorities in place from the
Board to the Chief Executive Officer (CEO) and other members
of the senior leadership
which enables efficient day-to-day
management of the business by ensuring decisions can be taken
by the right people at the right time and with appropriate controls
to ensure they remain consistent with the risk appetite agreed by
the Board. The senior leadership team supports the CEO in the
performance of his duties. Further delegation authorities and
rules are applied to each business area.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
104
RELX
Annual Report 2022 | Governance
Our purpose, strategy, values and culture statement
Purpose
RELX is a provider of information-based analytics and decision tools for professional and business customers, enabling them to
make better decisions, get better results and be more productive.
Our
purpose is to benefit society by developing products that help researchers advance scientific knowledge; doctors and nurses
improve the lives of patients; lawyers promote the rule of law and achieve justice and fair results for their clients; businesses
and
governments prevent fraud; consumers access financial services and get fair prices on insurance, and customers learn
about
markets and complete transactions.
Our purpose guides our actions beyond the products that we develop. It defines us as a company. Every day across RELX our
employees are inspired to undertake initiatives that make unique contributions to society and the communities in which we operate.
Strategy
Our number one strategic priority is the organic development of increasingly sophisticated information-based analytics and
decision tools that deliver enhanced value to professional and business customers. We aim to achieve leading positions in
long-term global growth markets and leverage our skills, assets and resources across RELX, both to build solutions for our
customers and to pursue cost efficiencies. We are systematically migrating all of our information solutions across RELX towards
higher value-add decision tools, adding broader data sets, embedding more sophisticated analytics and leveraging more powerful
technology, primarily through organic development. We are transforming our core business, building out new products and
expanding into higher growth adjacencies and geographies. We are supplementing this organic development with selective
acquisitions of targeted data sets and analytics, and assets in high-growth markets that support our organic growth strategies
and are natural additions to our existing business.
By focusing on evolving the fundamentals of our business we believe that, over time, we are improving our business profile and
the quality of our earnings. This strategy has led to more predictable revenues through a better asset mix and geographic balance;
improved returns by focusing on organic development with strong cash generation; and a higher growth profile as we expand in
higher growth segments, exit from structurally challenged businesses, and gradually reduce the drag from print format declines.
Values
We strive to do business with integrity. Our principle ‘Do the Right Thing’ embraces behaviours such as being honest in dealing
with others, respecting each other, and courageously speaking out for what is right; thereby guiding our commitment to achieve
business goals in an open, honest, ethical, and principled way. We ask our suppliers to meet the same standards, and provide
support for them to do so as necessary.
Culture
As an information-based analytics and decision tool provider, our corporate culture is fact-based, data-driven and analytical.
We are transparent and non-political in our decision-making. We are passionate about making a positive impact on society through
our unique contributions as a business and our employees feel a strong sense of engagement with the business and its purpose.
We focus on improving customer outcomes while emphasising corporate responsibility and acting with integrity and advancing
inclusiveness and diversity. Our culture encourages community engagement, environmental responsibility and the well-being of
our people.
RELX
Annual Report 2022 | Corporate Governance Review
105
How the Board monitors culture
RELX places significant emphasis and importance on the way
it does business. We are clear and unequivocal about our
commitment to do so with integrity and in accordance with the
highest ethical standards. We take corporate responsibility
seriously and are committed to advancing inclusiveness and
diversity in our working practices. We do this while striving to
continually improve customer outcomes through a culture that is
fact-based, data-driven and analytical. RELX’s standards and
values are defined on a group-wide basis, however the Board
acknowledges that cultural practices and preferred ways of
working can vary across the geographies of its business.
The Board helps to build the culture of the organisation from the
top down, by ensuring that it takes decisions that are aligned to
RELX’s values. The Board regularly reviews RELX’s policies to
ensure RELX has the right framework in place to operate with
integrity, and that its working practices promote a culture of
strong engagement with our business and purpose, and with our
communities. The Board reviews and approves the Ethics Code,
which sets out RELX’s core standards and principles and provides
clear guidance for building and maintaining the desired culture.
There are a number of ways in which the Board monitors and
assesses culture:
Workforce engagement
The Board has appointed a Non-Executive Workforce Engagement
Director to engage directly with employee representatives from
across RELX and to report to the Board on the progress of RELX’s
workforce initiatives, together with the challenges, concerns and
priorities of employees. This provides the Board with in-depth
insight into how culture is embedded across our different business
areas and functions, and any issues that need to be addressed.
The views of employees are measured through an annual
employee engagement survey, and a broader triennial opinion
survey, designed to gauge how employees feel about the
organisation, how well they understand its direction, and their
level of satisfaction and engagement with their work. An analysis
of the results of employee surveys is presented to the Board.
See page 110 for more information regarding workforce
engagement.
Board presentations
The Board receives regular reports about RELX’s corporate
responsibility activities across each of our business areas, to
support its understanding of how culture is embedded across the
organisation. Such reports include progress against our people
objectives during the year, including areas such as well-being, pay
equity and reducing inequalities through inclusion. RELX uses a
range of methods including surveys and assessments to monitor
progress towards our corporate responsibility objectives, and to
understand the experiences of our workforce, customers and
other stakeholders across our business areas. Further
information is available on pages 44 to 49.
Presentations from senior management to the Board during the
year have provided culture-related employee data from across the
Group’s different business areas. This contributes to the Board’s
ability to assess the Group’s culture and provides a context against
which it has taken a number of its principal decisions during
the year.
The Board’s activities and examples of key decisions taken during
the year are set out on pages 107 to 112.
Audit Committee
The Head of Internal Audit and Assurance regularly presents the
results of internal audits across our business areas to the Audit
Committee. These provide the Board with an insight into business
and control practices across RELX’s different business areas.
Through the activities of the Audit Committee, the Board also
receives periodic updates from RELX’s Chief Compliance Officer
on alleged and substantiated violations of the Ethics Code, and
significant matters raised through reporting channels, including
the Integrity Line. The updates covered the volume, type and
circumstances surrounding substantiated violations, actions and
lessons learnt and enabled the Board to assess culture with
regard to governance
and compliance.
More information about the work of the Audit Committee is in its
report on pages 143 to 146.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
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RELX
Annual Report 2022 | Governance
Board activities
The Board is collectively responsible for effective oversight of the
Company’s performance. It determines RELX’s strategy and
objectives and monitors and oversees its governance and risk
management and internal controls processes to ensure the
ongoing viability of its business areas. There are processes in
place to ensure that the Board receives relevant information at the
right time and with the appropriate level of detail to inform its
decision-making and effectively monitor management’s progress
in accordance with agreed strategy. The Board is further informed
by engagement with its key stakeholders, examples of which are
set out on pages 109 to 112.
The Board’s annual programme is designed to enhance its
understanding of RELX’s business areas. An overview of the
Board’s activities and key decisions taken in the year is set out on
pages 107 to 108.
Matters reserved to the Board
There is a clearly defined schedule of matters over which the
Board retains responsibility and endorses all final decisions,
which is available to view at
www.relx.com/investors
.
Such matters include:
§
Approval of RELX’s strategy and annual budget and changes to
the corporate or capital structure of the Company
§
RELX’s risk appetite, risk management framework and
internal control systems
§
Corporate governance arrangements, including Board and
Committee composition and Terms of Reference
§
Approval of the Company’s Annual Report and periodic
financial statements and trading updates
§
Oversight of the Ethics Code reporting channels, including the
Integrity Line, for our workforce to raise concerns
§
Other matters deemed material to the delivery of RELX’s
strategy or future financial performance, such as approval of
material acquisitions, major capital expenditure and
investments and its dividend policy
The Board
Board and Committees
The Board’s principal Committees and a summary of their key responsibilities are set out below. Each Committee has written
Terms of Reference, which are available on our website,
www.relx.com
.
Board Committees are principally supported by the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer and
Company Secretary, and the Chief Human Resources Officer, although senior managers within the Group are invited to attend
meetings where appropriate. The Board’s annual programme and the agendas for the Committees are prepared by their
respective Chairs with support from the Company Secretary.
Audit Committee
Responsible for the oversight
of financial reporting, risk
management and internal
control policies, and the
effectiveness of the internal
and external audit processes.
The Committee comprises only
independent Non-Executive
Directors.
Remuneration Committee
Responsible for approving the
remuneration policy for, and
setting the remuneration of,
the Group’s Executive Directors,
the Chair, and Senior Executives
below Board level. The
Committee comprises only
Non-Executive Directors.
Nominations Committee
Responsible for keeping under
review the composition of the
Board and its Committees; the
recruitment of new Directors;
ensuring orderly succession
plans for both the Board
and senior management;
and overseeing the
implementation of the Board’s
Inclusion and Diversity Policy.
The Committee comprises only
Non-Executive Directors.
Corporate Governance
Committee
Responsible for developing
and recommending corporate
governance principles to the
Board; reviewing ongoing
developments and best practice
in corporate governance,
and monitoring the structure
and operation of the Board
Committees. The Committee
comprises only Non-Executive
Directors.
Report of the Audit
Committee
page 143
Directors’ Remuneration
Report
page 121
Report of the Nominations
Committee
page 119
Senior leadership
The Board delegates the day-to-day management of RELX to the Chief Executive Officer and a team of senior leaders, shown on
pages 100 to 101.
RELX
Annual Report 2022 | Corporate Governance Review
107
Board activities during the year
Purpose and strategy
The Company’s
purpose, strategy,
culture and values
statement is on
page 104
Read more about
RELX’s strategy and
business model on
pages 5 to 9
§
In addition to regular management updates, a two-day strategy meeting
was held in September 2022, to
debate and approve the three-year strategic plan for the Group for 2023 to 2025. RELX’s strategic priority
continues to be the promotion of organic growth. The Board reviewed RELX’s value creation, capital
expenditure and areas for potential acquisitions across all four business areas and robust operational
plans for delivery across RELX’s business areas for implementation by management.
§
Acquisitions form part of RELX’s strategy to support organic growth by expanding and developing its
product offering. The Board monitors capital expenditure and acquisition activities and reviews and
approves significant and key strategic transactions. Such acquisitions approved during the year included
Interfolio, a provider of faculty information solutions for higher education which expands offerings for
academic institutions, and BehavioSec, an advanced behavioural biometrics technology provider which
enhances Risk’s device and digital identity-focused offerings.
§
The Board conducted reviews of RELX’s invested capital and capital structure during the year, including
financial performance, potential and completed acquisitions, net debt, returns on invested capital, credit
ratings, forecasts and financial market conditions and approved the annual budget.
§
The Board reviewed and approved the Company’s purpose, strategy, values and culture statement,
confirming that, in the context of its engagement with stakeholders and information received from
management, it continues to represent why and how RELX operates and the standards to which those
who work for and who represent RELX are held in the course of conducting our business and operations.
People, culture
and values
Information about
Board engagement
with our workforce
is on page 110
Read about how we
invest in and
reward our
workforce on
pages 44 to 49
Information about
our I&D policies is
on pages 44 to 49
and 120
§
The RELX and Board Inclusion and Diversity policies were reviewed to ensure they remain fit for purpose
and continue to align with our desired culture and support our purpose and strategy. The Board received
inclusion and diversity-related data throughout the year.
§
The Board considers and approves all Board and Committee changes and has an ongoing succession
planning process for Director and senior leadership roles. For further information about succession
planning on page 120.
§
The Board received updates on ongoing organisation and talent reviews across the business and
functional areas and monitored progress towards developing talent. Periodic updates were received
from management to give visibility over the development of leadership capabilities across RELX and the
Board was satisfied that there are solid succession pipelines in place for management and leadership
roles.
§
The Board received presentations summarising data on our workforce, such as levels of employee
engagement, employee turnover, and demographics by location, division, gender, tenure, age, and
ethnicity (where data is available); and reviewed our policies and practices relating to recruitment, talent
development and remuneration, to ensure that these are consistent with our values and continue to
support our long-term sustainable success.
Environment, Social
and Governance
(ESG)
Information about
RELX’s ESG activities
is available in our
Corporate
Responsibility Report
on pages 28 to 80
§
RELX’s corporate responsibility activities formed a significant part of the Board’s agenda during the year
and these are overseen by the Board on an ongoing basis. Detailed information about RELX’s corporate
responsibility objectives and its progress towards these, together with our TCFD disclosures, are
included in the Corporate Responsibility Report within this Annual Report, as approved by the Board.
§
The Board undertook its biennial review of the Group’s Operating and Governance Principles, which set
out the processes, policies, controls, and related assurance activities in place to manage risk and which
apply to all RELX employees.
§
The Board reviewed and approved the Company’s Modern Slavery Act Statement, which describes the
steps taken by the Company and its subsidiaries to ensure that modern slavery and human trafficking
were not taking place in the context of RELX’s business operations and its supply chain during the
previous year. Further information about how RELX manages an ethical and socially responsible supply
chain is available on pages 59 to 62.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
108
RELX
Annual Report 2022 | Governance
Risk management
and internal control
The Company’s
principal and emerging
risks and mitigation
strategies are set out
on pages 88 to 93
The Company’s
Viability Statement is
on page 94
Further information
about the Group’s
internal controls is on
pages 117, 118 and 145
§
Through the work of the Audit Committee, and regular updates received from the Head of Internal Audit
and Assurance, the Board reviewed and agreed RELX’s principal and emerging risks and mitigation
strategies. Following a robust and thorough assessment of the risks identified, together with a detailed
review of the Group’s financial position, the Board considered RELX’s ongoing viability and approved the
Company’s Viability Statement, as set out in this Annual Report.
§
The Board reviewed the systems of risk management and internal control in operation during the 2022
financial year and determined that RELX’s control systems provide reasonable assurance against
material inaccuracies or loss and have functioned properly throughout the year.
§
The Board and Audit Committee oversaw the merger of the Group’s Audit and Risk Management (A&RM)
and Regulatory Controls and IT Security Assurance teams to create a combined Internal Audit and
Assurance (IAA) function. The new structure enables greater knowledge sharing across the function and
promotes concise and effective reporting to the Audit Committee. Risk management work previously
undertaken by A&RM is now undertaken by the Group Insurance and Risk team, enabling IAA to focus on
third line assurance matters, in line with best practice.
§
In line with feedback received during the 2021 Board evaluation, the Board continued to receive regular
updates on material cybersecurity risks and the Group’s mitigation strategies and received periodic
reports from the Head of Information Security and Data Protection. These covered protection, detection,
mitigation and response capabilities, cybersecurity capital expenditure and key cybersecurity priority
areas.
Shareholder matters
Details of the Board’s
engagement with
investors during the
year are on page 109
Information about the
Company’s dividend
policy is on page 86
§
The Board took the decision to suspend the Company’s share buyback programme in April 2020 due to
the uncertain business environment created by the Covid-19 pandemic. Following strong EBITDA
recovery over the course of 2021, the Board considered the Company’s financial position and budget
forecasts and determined it was appropriate to resume the programme in 2022. During the year, £500m
of RELX PLC shares were repurchased by the Company to be held in treasury. In December 2022, the
Board approved a further share buyback programme of up to
£150m worth of ordinary shares between
3 January 2023 and 13 February 2023.
§
Following consideration of the growth prospects of the Company, together with relevant market factors
and the financial position of RELX, the Board declared an increased interim dividend for the year, and an
increased final dividend for 2021.
§
The Board considered and approved the proposed resolutions to be put to shareholders at the 2022 AGM,
which included the distribution of a final dividend for the year ended 31 December 2021 and re-approval
of the Company’s authority to purchase its own shares. Each of the proposed resolutions were
subsequently approved by shareholders at the meeting.
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Annual Report 2022 | Corporate Governance Review
109
Stakeholder engagement
During the year, the Board undertook a review of the Company’s key stakeholders and concluded that they remain unchanged from the
previous year. The Board received a detailed overview of stakeholder engagement channels and activities, and confirmed that it has
adequate visibility of the views of key stakeholders, which are taken into consideration in its decision-making. Further information about
the nature and outcomes of the RELX’s engagement with its stakeholders are detailed throughout this Annual Report and examples of
the Board’s engagement with key stakeholders are set out on the following pages.
Investors
Why effective engagement
is important
Forms of stakeholder engagement, their outcomes and how this has impacted Board
decision-making
Engagement with our
investors helps them to
understand our strategy,
performance and governance
arrangements, and to make
informed decisions
concerning the Company. It
also makes clear our
prioritisation of the
long-term in our
decision-making and focus
on delivery of consistent
financial performance.
Our investors provide us with
input and feedback
concerning the development
and implementation of our
strategy, and we consider
their views when making
investment decisions.
Engagement with our investors is undertaken by members of the Board and at business level by
senior management and our Investor Relations, Corporate Responsibility and Treasury teams. The
Board is updated with feedback and commentary received from investors through business
engagement, investor roadshows and meetings with institutional shareholders in respect of our
recent and proposed activities. The Board receives regular reports on the Company’s share price
and shareholder return performance and a review of analyst commentary in response to
the
Company’s market announcements and results publications.
Executive Directors and senior management gave a number of investor and analyst presentations
during the year to provide further detail and context to our published results and strategy plans. In
2022, senior leaders led a focused seminar on the STM business, covering our product offering and
strategy for delivering growth in this area, which builds on our teach-in sessions on Risk Business
Services and Legal Analytics from the previous year. Our investor presentations are available at
www.relx.com/investors
.
The Company’s AGM is a valuable opportunity for the Board to interact directly with shareholders, to
hear their views and answer questions about the business of the meeting. The Company’s AGM in
2022 was held as an in-person meeting for first time since the Covid-19 pandemic. An audiocast was
made available on the day of the meeting and the Chair answered questions from shareholders.
Decisions and outcomes of engagement include:
§
Our engagement processes confirmed that investors in the main continue to understand and
support our organic growth strategy. The Board considered this when approving RELX’s
three-year strategic plan for 2023 to 2025, which leaves our strategic focus, and our priorities for
uses of cash generated by RELX, broadly unchanged
§
Following consultation with shareholders representing approximately 60% of RELX’s issued
share capital, the Remuneration Committee oversaw development of the 2022 Directors’
Remuneration Policy (set out on pages 136 to 142 (inclusive)), which will be put to shareholders
for approval at the Company’s AGM in 2023
§
RELX’s material communications to investors, including trading updates, the Annual Report and
Notice of AGM were reviewed and approved by the Board prior to release
§
In respect of shareholder returns, the Board considered a range of investor and analyst views,
balancing the impact of returning capital to shareholders with stakeholder interests in other key
RELX financial metrics. The Board approved the quantum of the Company’s share buyback
programme for 2022 and recommended an interim and final dividend payment during the year.
See pages 108 and 147 for further information
§
The views of the wider investment community were considered when approving areas of focus
for RELX’s ESG activities, which are described in detail in our Corporate Responsibility Report on
pages 28 to 80
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
110
RELX
Annual Report 2022 | Governance
Employees
Why effective engagement
is important
Forms of stakeholder engagement, their outcomes and how this has impacted Board
decision-making
Our people’s well-being and their
commitment to the work they do are
essential to our future growth and
our aim to successfully build
long-term leading positions in
global growth markets.
RELX actively seeks feedback from
employees to understand their key
challenges and concerns and where
we can work to address these.
Hearing their views on what we do
well, and what we can do better, is
an important driver for
improvement and enables us to take
action to retain our best talent.
Effective engagement helps to
mitigate the risk of not being able to
recruit, motivate and retain skilled
employees and management, which
is recognised as a principal risk that
could impact RELX (detailed on
page 92).
During the year, our Non-Executive Workforce Engagement Director, Marike van Lier Lels, met
with European, US and Asia-Pacific workforce representatives to learn about the experiences of
employees while working at RELX. Ms van Lier Lels reported to the Board on the matters
discussed,
which included views on opportunities for personal and career development at
RELX, flexible working arrangements, responses to inclusion and diversity (I&D) initiatives, and
the ongoing support and communication from senior leaders and management.
Employee engagement routinely takes place at business level and matters of concern are
cascaded up through RELX’s management framework. The Board received regular reports
from management containing a range of employee data, including employee turnover and
demographic analysis, employee engagement survey results, compliance with RELX policies,
and concerns raised through Ethics Code reporting channels, including the Integrity Line. The
Board takes the time to review employee engagement and workforce data and takes this into
consideration during wider discussions.
The Company has a dedicated intranet for employees which is kept updated with news and
updates from across RELX and key messages from senior leadership.
Decisions and outcomes of engagement include:
§
Feedback from employee panels on recent initiatives in the US aimed at recruiting and
developing diverse talent, indicated that these had been well received, and the Board
supported initiatives to further promote recruitment and talent development programmes
with specific focus on diversity. Further information is available on pages 44 to 49
§
Results of employee consultations showed a favourable response to flexible hybrid working
arrangements and the Board supported senior management’s approach to continue to
actively consult with employees to find optimal, balanced and effective ways of working
§
The Board approved the introduction of the RELX PLC Employee Share Purchase Plan in the
US to enable a greater proportion of RELX employees the opportunity to purchase ADRs at a
discounted price. The plan, together with the existing Company share schemes which have
been refreshed and approved for renewal by the Board, will be put to shareholders for
approval at the Company’s AGM in 2023
§
The Board was updated on the positive impact of mentoring programmes which support
our I&D and talent development initiatives. For example, the RELX Women in Technology
Mentoring Programme
was one of the main drivers of a 33% increase in the rate of
promotion of female technologists within RELX and the Board endorsed the Company’s
introduction of a new Women in Product mentoring programme
§
The Board received a presentation from the Head of Corporate Communications on focus
areas for 2022, to determine how to effectively deliver key information about the business to
the wider workforce
§
The welfare and security of our people remains a priority. The Board receives updates on the
support provided to colleagues affected by the conflict in Ukraine, the winding down of our
operations in Russia, and our ongoing compliance with the relevant sanctions imposed by the
international community
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Annual Report 2022 | Corporate Governance Review
111
Customers
Why effective engagement
is important
Forms of stakeholder engagement, their outcomes and how this has impacted Board
decision-making
Our goal is to help customers
make better decisions, get
better results and be more
productive. We do this by
leveraging a deep
understanding of their needs
and views to create innovative
solutions.
Collaborating closely with our
customers is crucial for us to
understand where and how we
can improve the quality of our
services and products, and
enables us to make targeted
investment decisions, such as to
develop new or emerging
technologies or complement
our existing capabilities
through acquisition activity.
Our engagement with customers takes place at an operational level across our business areas,
through our dedicated sales and operations teams and through customer training and workshops.
Material customer issues are cascaded up to the appropriate senior management. The Board
received presentations during the year from customer-facing employees which detailed the nature
of our customer engagement and the actions taken by the business areas as a result. In 2022, the
Board received analysis of customers by sector and geography and data concerning the resilience of
the markets in which we operate. The Board reviewed customer survey data, Net Promoter Scores,
and customer usage volumes across our business areas.
Decisions and outcomes of engagement include:
§
Feedback from our customers informed the Board and management’s assessment of the areas
in which RELX should build out new products and services, the speed at which this should be
undertaken, and where it should look to expand into higher growth adjacencies and geographies
over varying time horizons
§
The Board continued to monitor current and anticipated future customer demand and market
activity together with customer feedback, to understand how our product offerings address
customer requirements. This information informed the areas of focus for product development
and acquisitions and the level of investment required. The Board approved several significant
acquisitions during the year that complement RELX’s existing product range and enhance value
for our customers. More information about acquisitions during the year can be found on pages 10
to 27
Suppliers
Why effective engagement
is important
Forms of stakeholder engagement, their outcomes and how this has impacted Board
decision-making
RELX has a diverse supply chain
with suppliers located in over
150 countries across multiple
categories, which RELX
categorises as content
suppliers and non-content
suppliers.
Collaboration and two-way
dialogue with our suppliers
helps ensure that we are able to
maintain and improve the
quality of products and services
we provide to our customers.
Effective engagement
underpins our ability to maintain
an ethical supply chain, giving
us visibility of our suppliers’
commitment to good practices.
Engagement with our content suppliers, which include the companies we licence content or data
from, as well as authors, editors, content reviewers and product designers, takes place principally
through ongoing dialogue with the relevant business area to which the content is provided. Content
supplier feedback is collected through direct relationships and regular business reviews, and
presented to the Board through updates from our business area leaders.
Our non-content suppliers represent more typical vendor-type relationships, such as IT software
and cloud service providers, or third parties to whom we have outsourced support function
activities. Engagement takes place at various levels throughout RELX. Feedback is reported to the
Board by business area leaders and the Global Head of Purchasing and Property.
Decisions and outcomes of engagement include:
§
Feedback from content suppliers, including Net Promoter Scores and the outcomes of business
reviews, were considered by the Board and contributed to its consideration of the Group’s
three-year strategy plan for 2023 to 2025, and its assessment of mitigations in place for our
principal risks of customer acceptance of products and supply chain dependencies
§
Our Supplier Code of Conduct has been translated into 16 languages for use across the Group.
As a result of continuing engagement, 99% of our core suppliers are now signatories to our code
§
The Board received reports on the outcomes of engagement with suppliers to inform its
discussions relating to supply chain risks and the assessment of the processes in place to
mitigate these. The Board continues to support our Socially Responsible Supplier (SRS)
programme. More details on the programme are on pages 59 to 62. The Board also reviewed and
approved our Modern Slavery Act Statement, available from
www.relx.com
, which sets out
the steps taken by the Company and its subsidiaries to prevent modern slavery and human
trafficking in its business and supply chain
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
112
RELX
Annual Report 2022 | Governance
Community
Why effective engagement
is important
Forms of stakeholder engagement, their outcomes and how this has impacted Board
decision-making
Our focus on community includes
those where we, our customers and
suppliers work around the world, as
well as the communities we serve,
including in science, academia, risk,
law and many other fields.
We prioritise positive dialogue with
our community stakeholders as we
believe they, collectively, provide
our ‘licence to operate’. Our efforts
are informed by our commitment to
the United Nations Global Compact
and its ten principles, focused on
human rights, labour, the
environment and anti-corruption –
all issues with wide societal impact.
We engage with our community stakeholders through our unique contributions to society (see
pages 35 to 39), and through our comprehensive global community programme, RELX Cares.
The RELX Cares mission is the education of disadvantaged young people. Further information
about our RELX Cares projects and its contributions to the communities in which we operate is
on pages 55 to 58.
In accordance with the Business for Societal Impact model, we monitor the short- and
long-term benefits of our community engagement. We survey RELX Cares volunteers to
understand the impact of the programme on their personal development and how it affects
the way they feel about working at RELX. The Board received comprehensive updates on
community engagement during the year, including key metrics, objectives and outcomes. Board
feedback and support for community engagement shapes the direction of the programmes and
future plans.
Relevant ESG considerations are incorporated into business review and strategy papers
reviewed by the Board.
Decisions and outcomes of engagement include:
§
The Board continues to endorse RELX’s volunteering policy through which RELX employees
receive two days paid leave each year to undertake community volunteering work
§
The Board considered RELX’s environmental performance and supported new and ongoing
initiatives for minimising our environmental impact, including endorsing our commitment to
our reaching net zero by 2040. More information is in our Corporate Responsibility Report on
pages 63 to 72
§
The Board supports the businesses utilising their unique product offerings to support
causes in their communities. For example, during the year, STM provided researchers,
healthcare professionals and students in Ukraine free access to ScienceDirect, ClinicalKey,
Complete Anatomy and Osmosis products to help them continue their vital work during this
challenging time. More information is in our Corporate Responsibility Report
on pages 28
to 80
RELX
Annual Report 2022 | Corporate Governance Review
113
Division of responsibilities
Chair and Chief Executive Officer
There is a clear separation of the roles of the Chair, who leads the Board, and the Chief Executive Officer, who is responsible for
the day-to-day management of the Group. The table below summarises the key responsibilities of each of the director roles on the Board.
Key roles of the Directors
Chair
§
Provides leadership of the Board, and is responsible
for its overall effectiveness in directing the Company
§
Ensures that all Directors are sufficiently apprised of
matters to make informed judgements, through the
provision of accurate, timely and clear information
§
Promotes high standards of corporate governance,
demonstrates objective judgement and promotes a
Board culture of openness and debate
§
Sets the agenda and chairs meetings of the Board
§
Chairs the Nominations and Corporate Governance
Committees
§
Facilitates constructive Board relations and the
effective contribution of all of the Directors
§
Ensures effective dialogue with shareholders
§
Ensures the performance of the Board, its Committees
and individual Directors is assessed annually
§
Ensures effective induction and development of Directors
Chief Executive Officer
§
Day-to-day management of the Group, within the delegated
authority limits set by the Board
§
Develops the Group’s strategy for consideration and
approval by the Board
§
Ensures that the decisions of the Board are implemented
§
Informs and advises the Chair and Nominations Committee
on executive succession planning
§
Leads communication with shareholders
§
Promotes and conducts the affairs of the Company
with the highest standards of integrity, probity and
corporate governance
Chief Financial Officer
§
Day-to-day management of the Group’s financial affairs
§
Responsible for the Group’s financial planning, reporting
and analysis
§
Ensures that a robust system of internal control and risk
management is in place
§
Maintains high-quality reporting of financial and
environmental performance internally and externally
§
Supports the Chief Executive Officer in developing
and implementing strategy
Senior Independent Director
§
Leads the Board’s annual assessment of the performance
of the Chair
§
Available to meet with shareholders on matters where
usual channels are deemed inappropriate
§
Deputises for the Chair, as necessary
§
Serves as a sounding board for the Chair and acts as an
intermediary between the other Directors, when necessary
Non-Executive Directors
§
Bring an external perspective, and constructively
challenge and provide advice to the Executive Directors
§
Effectively contribute to the development of strategy
§
Scrutinise the performance of management in
meeting agreed goals and monitor the delivery of
the Group’s strategy
§
Serve as members of Board Committees and chair
the Audit and Remuneration Committees
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
114
RELX
Annual Report 2022 | Governance
Attendance at meetings of the Board and Board Committees
The following table shows the attendance by Directors at Board and Committee meetings during the year. Attendance is expressed as
the number of meetings each Director attended out of the number they were eligible to attend.
Director
Committee
appointments
Board
(1)
Audit
Remuneration
Nominations
Corporate
Governance
Paul Walker (Chair)
R
N
C
7/7
–
5/5
5/5
5/5
Erik Engstrom
–
7/7
–
–
–
–
Nick Luff
–
7/7
–
–
–
–
Wolfhart Hauser
R
N
C
7/7
–
5/5
5/5
5/5
Marike van Lier Lels
N
C
7/7
–
–
5/5
5/5
Robert MacLeod
R
N
C
7/7
–
5/5
5/5
5/5
Linda Sanford
(2)
R
C
2/2
–
1/2
–
1/1
Andrew Sukawaty
A
C
7/7
4/4
–
–
5/5
Suzanne Wood
A
C
7/7
4/4
–
–
5/5
Charlotte Hogg
A
C
7/7
4/4
–
–
5/5
June Felix
(3)
A
A
R
C
7/7
3/4
3/3
–
5/5
Board Committee membership key
A
Audit
R
Remuneration
N
Nominations
C
Corporate
Governance
Committee Chair
(1)
In addition to the seven scheduled meetings, serving Directors also attended two full-day strategy and business review meetings.
(2)
Linda Sandford retired from the Board and stepped down from the Remuneration and Corporate Governance Committees with effect from the conclusion of the Company’s
AGM 21 April 2022.
(3)
June Felix joined the Remuneration Committee with effect from 21 April 2022. Ms Felix was unable to attend the July Audit Committee meeting.
Director independence and conflict of interest
The Board has in place formal procedures to evaluate and review the external commitments of each Director. Through the activities of
the Nominations Committee, the Board is satisfied that each Director has sufficient time to devote to their role at RELX in light of their
external appointments. In making its assessment, the Nominations Committee assessed both the number and nature of these external
commitments, and the positions that each Director holds on the RELX Board Committees, their current familiarity and experience with
RELX and how it operates, and our wider culture of encouraging inclusivity and diversity both at RELX and across wider society. Our
Non-Executive Letter of Appointment sets out the time commitment required by the Company from its Non-Executive Directors. When
receiving recommendations from the Nominations Committee for the appointment of any new Non-Executive Director, the Board always
takes into account the other demands on a potential Director’s time.
The Board has formal procedures to appropriately manage any actual or potential conflict of interest identified and monitors each
Director’s independence to ensure there is no third-party influence that could potentially compromise their independent judgement.
In accordance with the Company’s Articles of Association, the Board reviews, and authorises as appropriate, situations where a Director
has an interest that conflicts, or may possibly conflict, with those of RELX, and may impose conditions on such authorisations.
Additionally, where there are new external appointments, any related commercial relationships with RELX are reviewed, and any
potential conflicts of interest are dealt with following formal procedures.
RELX
Annual Report 2022 | Corporate Governance Review
115
Balance of Executive/Non-Executive Directors
Non-Executive: 7
Executive: 2
Chair: 1
Gender diversity
Male: 6
Female: 4
Length of tenure of Non-Executive Directors and Chair
6–9 years: 2
Over 9 years: 1
0–3 years: 2
3–6 years: 3
Nationality of Directors
German: 1
British, American, Irish: 1
Swedish: 1
Dutch: 1
American: 3
British: 3
Composition, succession and evaluation
Board composition
As at the date of this Annual Report, the Board comprised the
Chair, two Executive Directors and seven Non-Executive
Directors, who bring a wide range of skills, experience, industry
expertise and professional knowledge to their roles. An overview
of the gender balance, length of tenure and nationalities on the
Board is provided below.
Board skills and expertise
The Board collectively has a diverse range of skills and business
experience, which includes the following:
§
Corporate strategy and governance
§
Expertise in the finance and technology sectors
§
Operational experience in RELX’s product markets
§
Executive board and leadership experience in large
international listed groups
§
Audit, risk and regulatory expertise
§
Workforce relations management and engagement
§
Executive remuneration
For further information on the skills of each individual Director,
please see pages 9 to 11 of the Notice of Meeting for our 2023 AGM.
Board changes during 2022
Linda Sandford stepped down from the Board from the conclusion
of the Company’s AGM on 21 April 2022, having served as a
Director since 2012. Board composition throughout 2022 is set out
in the table on page 114.
Board appointment procedure
The Company has in place a rigorous procedure for the
appointment of new Directors to the Board. This involves the
preparation of a search specification by the Nominations
Committee and the engagement of an external search firm to
identify and propose candidates based on that specification.
Potential candidates are interviewed by a number of Board
members, including the Chair and the Chief Executive Officer,
together with the Chief Legal Officer and Company Secretary.
The candidates are considered in detail by the Nominations
Committee, and a recommendation is made to the Board
regarding any Director appointment. The Board then has a further
opportunity to discuss, and if deemed fit, approve the appointment.
The Board acknowledges the benefits of diversity on the
effectiveness of Board discussions and quality of Board
decision-making, through the incorporation of different
perspectives and ideas. In line with our Board Inclusion and
Diversity Policy, diversity is taken into consideration when
evaluating the skills, knowledge and experience desirable to fill
each Board vacancy.
Board composition as at 31 December 2022
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
116
RELX
Annual Report 2022 | Governance
The Board may appoint Directors (subject to a maximum upper
limit) to fill a vacancy at any time, although any Director so
appointed shall only hold office until the following AGM of the
Company, at which his or her election shall be voted upon by
shareholders. Directors are then required to seek re-election by
shareholders at each subsequent AGM of the Company. The
Notice of Meeting for the 2023 AGM provides information about the
Directors standing for election or re-election, including their
skills and contributions to the Company’s long-term success, as
required by the Code.
As a general rule, letters of appointment for Non-Executive
Directors provide that, subject to annual re-election by
shareholders, individuals will serve for an initial period of three
years, and are typically expected to be available to serve for a
second three-year period. If invited to do so, they may also serve
for a third three-year period. The notice period applicable to the
Non-Executive Directors is one month.
Board induction and development
Following appointment, and as required, all Directors receive a
full, formal induction tailored to individual requirements based on
existing knowledge and experience. The Chair and Company
Secretary are responsible for ensuring an effective induction
programme for all new Directors.
For Directors to effectively discharge their responsibilities, it is
important that they regularly refresh and update their skills and
knowledge. The Board’s annual programme is designed with this
in mind, and includes deep dive reviews into different business
areas each year. During 2022, the Directors took part in a deep
dive into the Risk and STM business areas, covering financial and
operational performance by segment, product development and
strategic plans. During the year, the Board also reviewed legal
matters, HR strategy and cybersecurity risks and mitigation,
among others.
During the year, the Audit Committee undertook a deep dive into
capital investment in Legal. The session was led by the Chief
Financial Officer of Legal and covered infrastructure/cloud
migration and product development.
Board information and support
Each of the Directors has access to the services of the Company
Secretary, who is responsible for the accurate and timely flow of
information to the Board. The Company Secretary advises the
Board on all corporate governance matters, and ensures that all
Board procedures are followed correctly. The Directors also have
access to other members of RELX’s management, staff and
external advisers. They may take independent professional advice
in the furtherance of their duties to the Company, at the
Company’s expense.
Each of the Directors is expected to attend all meetings of the
Board and Committees of which they are a member. However,
where a Director is unable to attend a Board or Committee
meeting, they are provided with the papers relating to that
meeting and are able to discuss matters arising with the
respective Chair and with other Board and Committee members.
They are also provided with a copy of the minutes after each
meeting.
The Directors are provided with papers ahead of all scheduled
Board and Committee meetings, containing relevant information
from management, and supporting information from external
agencies and experts, as appropriate.
Board evaluation
The Directors consider the evaluation of the Board, its
Committees and members to be an important aspect of corporate
governance. The Board undertakes an annual evaluation of its
own effectiveness and performance, and that of its Committees
and individual Directors.
Actions from the 2021 Board evaluation
The 2021 Board evaluation process concluded that the Board and
its Committees were operating effectively and did not highlight
any significant areas for improvement. The Board agreed that they
would continue to focus on succession planning at senior
management level, and that material cybersecurity risks faced by
the Group would continue to form part of the Board’s annual
agenda. The Board confirms that these actions have been
appropriately addressed through the Board’s annual programme,
with presentations and deep dives provided from senior
leadership throughout the year.
Further information about Board activities is on pages 107 and
108.
2022 Board evaluation
In 2022, the Board evaluation process was conducted internally,
supported by the Company Secretary. Questionnaires were
completed by all Directors to provide feedback and commentary
on the following areas:
§
Board composition and effectiveness
§
Quality of information provided by management
§
Boardroom culture and dynamics
§
Effectiveness of the Board’s oversight of strategy
development, setting and monitoring the RELX’s culture and
values, financial performance, market developments,
stakeholder relations (including the Board’s understanding
and visibility of the views of RELX’s stakeholders and how
these inform its decision-making process), talent and
succession, inclusion and diversity, risk and governance
§
The structure, leadership and overall effectiveness of each of
the Board’s Committees
The Chair conducted individual performance reviews with each
Non-Executive Director and the Senior Independent Director led
the appraisal of the Chair’s performance by the other Directors.
Individual Director performance
Individual Director performance and contributions were assessed
through one-to-one meetings with the Chair. The evaluation
facilitated reflection on personal development and discussion and
feedback on Board matters. The evaluation found that each
Director continues to contribute positively and effectively to Board
and Committee discussions, providing external insights and
constructive challenge to management on matters of strategy and
governance.
RELX
Annual Report 2022 | Corporate Governance Review
117
Through the evaluation process it was also confirmed that each
Non-Executive Director (with the exception of the Chair) remains
independent. Each Director was also found to continue to have
sufficient time to devote to their role.
Chair’s assessment
The performance of the Chair was evaluated by the Senior
Independent Director, with feedback provided by each of the
Directors. Directors felt the transition to a new Chair had been
well handled. They reported that he provided strong leadership to
the Board during the course of the year, facilitates effective
contributions from Non-Executive Directors and open and
constructive communication between Board members. He had
also established constructive relationships with members of
senior management. He further promoted constructive
relationships between Board members and senior leadership.
Conclusions of the 2022 Board evaluation
Overall the evaluation found a high level of satisfaction collectively
among the Directors with the way in which the Board and its
Committees
operate. Strategy discussions were found to be
effective in developing a deeper understanding of the Group’s
strategic, financial and business objectives among Board
members. The Directors thought that the Board’s composition,
including its diversity and collective skills, and the
group’s
dynamics and culture of openness and debate, all contributed to
highly effective meetings, which were found to be well governed.
Board papers were thought to be appropriate and timely, and
Board agendas effectively covered critical issues.
The outcome of the Board assessment exercise confirmed that the
Board and
its Committees continue to function effectively and
collaboratively with an appropriate level of engagement with
management.
The importance of a continued focus on the
competitor landscape and on the key risks facing the Group,
including cyber and data security, was recognised.
Maintaining
effective levels of engagement with RELX’s key stakeholders and
continuing to promote constructive relationships between the
Non-Executive Directors and management should remain
priorities for the Board. While there were no specific areas
identified where significant improvement is required, continued
focus on key issues with open and transparent dialogue are
recognised as key drivers of the Board’s effectiveness.
Audit, risk and internal control
Internal control and risk management
The Board has overall responsibility for overseeing RELX’s
systems of risk management and internal control and monitoring
the processes for identifying, assessing and managing the
principal and emerging risks faced by the Company. These
systems are designed to manage and mitigate, rather than totally
eliminate, risks to the business. Accordingly, they can provide
reasonable, but not absolute, assurance against material
misstatement or loss. These processes were in place throughout
the year ended 31 December 2022, and up to the date of approval of
the 2022 Annual Report. Further details of RELX’s risk
management systems and the principal and emerging risks facing
the Company, together with our mitigation strategies are set out
on pages 88 to 93 of this Report.
Risk management and control procedures are embedded into the
operations of the business and include the monitoring of progress
in areas for improvement that come to management and Board
attention.
To provide reasonable assurance against material inaccuracies or
loss, and of the effectiveness of the systems of internal control and
risk management, RELX has adopted the three lines of defence
assurance model as set out below.
System of Internal Control
1st line of defence
RELX businesses maintain systems of internal
control which are appropriate to the nature and
scale of their activities and address all significant
strategic, operational, financial, legal and
compliance risks that they face
2nd line of defence
Central functions that are responsible for
1) designing policies, 2) introducing and sharing best
practice, 3) monitoring and evaluating compliance
with RELX policies and relevant legislation and
regulation and appropriate remediation
RELX Operating and Governance Principles
3rd line of defence
Internal audit provides independent assurance on
the effectiveness of the 1st and 2nd lines of defence
The Board and Audit Committee
Note: In addition to RELX’s internal controls, RELX is also audited externally.
The report of the external auditor has been included from pages 154 to 161.
The risks facing RELX are regularly reported to and assessed by
the Audit Committee and the Board, as appropriate.
RELX
operates authorisation and approval processes throughout its
operations. Access controls exist where processes have been
automated to ensure the security of data. Management
information systems have been developed to identify risks and to
enable assessment of the effectiveness of the systems of internal
control. With the close involvement of operating management and
central functions, the risk management and control procedures
aim to ensure that RELX is managing its business risks effectively
and in a coordinated manner across the business areas with
clarity on the respective responsibilities and interdependencies.
Litigation, and other legal and regulatory matters, are managed by
legal directors in the business areas.
The Audit Committee has responsibility for monitoring the Group’s
risk management and internal control procedures and reports to
the Board as appropriate. The Audit Committee received periodic
updates from RELX’s Chief Compliance Officer on alleged and
substantiated violations of the Ethics Code, and related training,
monitoring and communications programmes. Such updates
covered the volume, type and circumstances surrounding
substantiated violations, subsequent actions and lessons learnt.
Further information about the work of the Audit Committee is set
out in the Audit Committee report on pages 143 to 146.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
118
RELX
Annual Report 2022 | Governance
US certificates
As required by Section 302 of the US Sarbanes-Oxley Act 2002
and by related rules issued by the US Securities and Exchange
Commission (the Commission), the Chief Executive Officer and
Chief Financial Officer of the Company certify in the 2022 Annual
Report on Form 20-F to be filed with the Commission that they are
responsible for establishing and maintaining disclosure controls
and procedures and that they have:
§
designed such disclosure controls and procedures to ensure
that material information relating to RELX is made known to
them
§
evaluated the effectiveness of RELX’s disclosure controls and
procedures
§
based on their evaluation, disclosed to the Audit Committee
and the external auditors, all significant deficiencies in the
design or operation of disclosure controls and procedures and
any frauds, whether or not material, that involve management
or other employees who have a significant role in RELX’s
internal controls
§
presented in the 2022 Annual Report on Form 20-F their
conclusions about the effectiveness of the disclosure controls
and procedures
§
designed internal controls over financial reporting, or caused
such internal control over financial reporting to be designed
under their supervision, to provide reasonable assurance
regarding the reliability of financial reporting
A Disclosure Committee, comprising the Company Secretary and
other senior managers, provides assurance to the Chief Executive
Officer and Chief Financial Officer regarding their Section 302
certifications.
Section 404 of the US Sarbanes-Oxley Act 2002 requires the
Chief Executive Officer and Chief Financial Officer of the Company
to certify in the 2022 Annual Report on Form 20-F that they are
responsible for maintaining adequate internal control structures
and procedures for financial reporting and to conduct an
assessment of their effectiveness. The conclusions of the
assessment of internal control structures and financial reporting
procedures, which are unqualified, are presented in the 2022
Annual Report on Form 20-F.
119
This report has been prepared by the Nominations Committee
and has been approved by the Board.
Membership
The Nominations Committee comprises only Non-Executive
Directors, the majority of whom are deemed to be
independent, in accordance with the requirements of the UK
Corporate Governance Code (the exception being the Chair,
who was independent upon his appointment to the Board).
The Directors who served on the Committee during the
year were:
§
Paul Walker (Chair of the Committee)
§
Wolfhart Hauser
§
Robert MacLeod
§
Marike van Lier Lels
Role of the Nominations Committee
The role and responsibilities of the Nominations Committee
are set out in written Terms of Reference which are available
on the Company’s website at
www.relx.com
.
The principal role of the Committee is to provide assistance
to the Board by identifying individuals qualified to become
Directors and recommending to the Board the appointment
of such individuals. Its key responsibilities include:
§
Reviewing the size and composition of the Board ensuring
that it maintains an appropriate balance of skills,
experience, knowledge and diversity
§
Reviewing the external commitments of each Director to
ensure that he/she has sufficient time to devote to their
role at RELX
§
Ensuring plans are in place for orderly Board and senior
management succession and to oversee a diverse pipeline
for such succession
§
Overseeing recruitment of new Directors and
recommending candidates to the Board
§
Reviewing Committee membership and succession
planning
§
To make recommendations to the Board in relation to
the re-appointment of any Non-Executive Director at
the conclusion of his/her specified term of office and
the election or re-election of Directors following a
review of the performance of individual Directors from
the Board evaluation process
§
Reviewing the Board and Group Inclusion and Diversity
policies, to ensure they continue to be effective and fit
for purpose
§
Making recommendations to the Board about the
authorisation of Directors’ conflicts of interest, including
any terms to be imposed in relation to a Director’s conflict
of interest
Activities of the Committee during the year
The Committee met five times in 2022.
The activities of the Committee during the year included:
§
Considering and recommending the re-appointment of
Charlotte Hogg, Robert MacLeod and Andrew Sukawaty at
the conclusion of their respective specified terms of office
§
Reviewing Board and Committee size, composition and balance
following the retirement of Linda Sanford as a Non-Executive
Director at the conclusion of the Company’s 2022 AGM, and
recommending a successor for Linda Sandford’s role on the
Remuneration Committee
§
Succession planning for the roles of Senior Independent
Director and Remuneration Committee Chair in anticipation
of Dr Wolfhart Hauser’s retirement from the Board at the
conclusion of the Company’s AGM in 2023
§
Ongoing succession planning for Board and senior
management roles
§
Monitoring Directors’ actual and potential conflicts of interest
§
Recommending to the Board the suitability of Directors’
external director appointments
§
Reviewing the Committee’s Terms of Reference and
determined that these continue to be fit for purpose and
effective
§
Recommending to the Board the inclusion of this Committee
Report in the 2022 Annual Report and Financial Statements
Board and Committee composition
The Nominations Committee is responsible for keeping under
review the structure, size and composition of the Board and its
Committees and making recommendations to the Board for
any changes that may be deemed necessary or beneficial. The
Committee aims to ensure that the Board and its Committees
have an appropriate balance of skills, knowledge and experience
to effectively lead the Group both now, and in the future,
with due regard to the Board’s Inclusion and Diversity Policy.
This is achieved through effective succession planning and
talent development, and an understanding of the changing
competencies required to support the Company’s strategy,
purpose, culture and values.
Linda Sandford retired from the Board with effect from the
conclusion of the Company’s 2022 AGM, at which time she also
stepped down from her role on the Remuneration Committee. The
Nominations Committee reviewed the size and composition of the
Remuneration Committee in light of Linda Sandford’s departure
and considered which of the Non-Executive Directors was best
placed to join the Remuneration Committee. It determined that
June Felix has a broad range of appropriate skills and experience
to enhance Remuneration Committee discussions and would
have sufficient capacity to undertake an additional Committee
membership. The Committee recommended to the Board that
June Felix be appointed to replace Linda Sandford.
As at 31 December 2022, the Board comprised 40% women and,
in line with the recommendations of the Parker Review, has at
least one Board member from a minority ethnic background.
Further details about Board composition are set out on page 115.
Report of the Nominations Committee
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2022
120
RELX
Annual Report 2022 | Governance
Independence of the Non-Executive Directors
Each year, the Committee reviews the independence of the
Company’s Non-Executive Directors, including whether a
Director’s length of service has or may impact his or her ability
to remain independent in character and judgement while
performing his or her duties.
A robust assessment was undertaken in February 2022,
with regard to Dr Wolfhart Hauser remaining on the Board for
longer than nine years, which is a circumstance the Code deems
could impair the independence of a Non-Executive Director.
The assessment concluded that Dr Wolfhart Hauser continues
to make valuable contributions to the Board, continues to
constructively challenge management and members of the
Board as appropriate, and that there was no impairment to his
independence resulting from his tenure. It was further considered
to be in the best interests of the Company that Dr Wolfhart Hauser
continue in his role as Senior Independent Director to support the
recent transition of Board Chair. The Committee recommended to
the Board that Dr Wolfhart Hauser remain on the Board until the
conclusion of the Company’s AGM in 2023, to which he agreed.
This will enable an orderly succession for the roles of Senior
Independent Director and Remuneration Committee Chair.
The Board considers that each of the Non-Executive Directors,
with the exception of the Chair whose independence was not
assessed, but who was deemed to be independent upon on his
appointment to the Board, to be independent of management
and free from any business or other relationship which could
materially interfere with their ability to exercise independent
judgement.
In line with the requirements of the Code, each of the Directors
will retire at the AGM in 2023 and, with the exception of Dr Wolfhart
Hauser who will be retiring from the Board, be recommended
by the Board for re-election by shareholders.
Board and Committee succession planning
When reviewing Board composition, the Nominations Committee
considers, amongst other things, length of tenure and the need
for and benefits of membership being regularly refreshed.
In addition, it is cognisant of the skills and experience required for
an effective Board, RELX’s Board Inclusion and Diversity (I&D)
Policy and recent amendments to the UK Listing Rules designed
to promote greater female and ethnic minority representation.
All appointments to the RELX Board, and each of its Committees,
are based primarily on merit and the suitability of an individual for
any given role. The Committee continues to keep under review, on
an ongoing basis, the structure, size and composition of the Board
and its Committees, making recommendations to the Board as
appropriate. Effective succession planning contributes to the
delivery of the Group’s strategy by ensuring the desired mix of
skills and experience of Board members now and in the future.
Board succession planning and refreshment was a regular
agenda item at the Committee’s meetings during 2022, and
Russell Reynolds Associates has been engaged to support the
Board in the search for an additional Non-Executive Director.
The Board confirms that none of the Directors have any connection
with executive search firms utilised by the Company. Following
the retirement of Dr Wolfhart Hauser, Suzanne Wood will take
on the role of Senior Independent Director, and Robert MacLeod
will take on the role of Chair of the Remuneration Committee,
with effect from the conclusion of the Company’s AGM in 2023.
Executive and management succession planning
The Board is committed to recognising and nurturing talent
across the Group and overseeing the development of a strong
talent pipeline to senior leadership and executive roles.
The Committee received detailed updates during the year
from the Chief Executive Officer on succession plans for senior
management roles. This included broad views on potential
timings and implications for diversity in those positions.
The Committee is satisfied that appropriate succession planning
arrangements were in place during the year to facilitate
appropriate and effective succession across senior management
roles, supported by a strong pipeline of candidates.
Board Inclusion and Diversity Policy
The Committee is responsible for monitoring progress towards
the Board’s diversity objectives, as set out in the Board Inclusion
and Diversity Policy. The Policy states that the Board should
be structured with an effective balance of skills, experience
and knowledge to advance the Group’s strategy for all of its
stakeholders. The benefits of all aspects of diversity should be
considered, including, but not limited to, gender and ethnicity,
and with due regard to merit measured against objective criteria.
The Policy requires that, when searches for an appointment to the
Board are conducted by the Company or by external search firms,
they will identify and present a gender-balanced list of diverse
and qualified potential candidates.
Group Inclusion and Diversity Policy
The Group I&D Policy fosters a positive environment where
employees feel valued regardless of their gender, national origin,
ethnicity, religion, sexual orientation and/or identity, age or
disability status. It advances the Company’s strategy by ensuring
the engagement of all employees; fosters innovation by
harnessing the collective strength of their diverse backgrounds
and experiences to generate innovative products and solutions
that drive value for our customers; and helps us attract and
retain employees who are important to our future.
During the year, RELX has continued to implement its inclusion
strategy to advance progress towards its 2020-2025 inclusion
goals. This covers all aspects of diversity and aims to translate
the Group I&D Policy into tangible and measurable actions.
Full details of the strategy and progress towards fulfilling our
I&D initiatives is set out in our Corporate Responsibility Report
on pages 44 to 49.
A breakdown of gender diversity across RELX’s management
and senior leadership is set out on page 47.
Committee evaluation
The evaluation of the Committee determined that it was well
governed and effective in carrying out its role in accordance with
its Terms of Reference.
Details of the full Board evaluation process are on pages 115 to 117.
121
RELX
Annual Report 2022
Directors’ Remuneration Report
The Directors’ Remuneration Report has been prepared by the Remuneration Committee (the Committee) in accordance with the
UK Corporate Governance Code, the UK Listing Rules and Schedule 8 of the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008, as amended (the UK Regulations). The Report was approved by the Board.
The current remuneration policy was approved by shareholders at the 2020 Annual General Meeting (AGM) for three years and can be
found on pages 90 to 96 of the 2019 Annual Report and Financial Statements available on relx.com. An updated remuneration policy is
therefore being proposed to shareholders for approval (by way of a binding vote) at the 2023 AGM, with the first awards under the new
policy to be granted in the first quarter of 2024. The updated remuneration policy, which would apply for three years, is set out on
pages 136 to 142.
The implementation of the current policy during 2022 is detailed in the Annual Remuneration Report on pages 122 to 135. Shareholders
will be invited to vote (by way of an advisory vote) on the 2022 Annual Remuneration Report at the 2023 AGM.
Proposed Remuneration Policy
The Committee reviewed the current remuneration policy during 2022. In doing so, it sought to ensure that executive remuneration is
aligned to the Company’s purpose and values and is clearly linked to the successful delivery of its long-term strategy. The Committee
also considered the feedback received from investors and proxy agencies since the adoption of the current policy and market practice
trends in FTSE 30 and considered the fact that, as a global data analytics and technology-driven business with over half of its revenue
derived from the US market, the Group primarily competes for talent with global information and technology companies.
The current Policy was approved by shareholders with 93.42% voting in favour and remuneration reports over the past three years have
received over 90% support.
In 2017, the Company simplified the incentive structure by reducing the number of plans to one Annual Incentive Plan (AIP) (with a share
deferral element added) and one Long Term Incentive Plan (LTIP).
Further significant changes were made in 2020, where we:
§
aligned the value of pension benefits for newly appointed Executive Directors with the value of those benefits provided to the broader
workforce and committed to a pathway for achieving the same alignment for current Executive Directors by 31 December 2022;
§
reduced the AIP payout at target performance to 135% of base salary;
§
increased the proportion of the AIP payment deferred into shares to 50% of the AIP earned;
§
increased the minimum weighting of financial measures in the AIP to 85% with any non-financial measures focused on sustainability;
§
increased the CEO’s shareholding requirement to 450% of base salary; and
§
amended the shareholding requirements to make executive directors subject to their full shareholding requirement for two years
after leaving the Company.
In 2022, the Committee undertook a review of workforce remuneration and related policies and the alignment of incentives and rewards
with culture. Further detail is set out on page 122. The Committee took this into account when considering the proposed new
remuneration policy for Executive Directors.
The Committee was also mindful to ensure that the remuneration policy is transparent, easy to understand, and provides an appropriate
link to long-term performance.
Our long-term strategic priority is unchanged: the organic development of increasingly sophisticated information-based analytics
and decision tools that deliver enhanced value to our customers, supplemented by targeted acquisitions. The Committee believes that
the current remuneration structure effectively supports the strategy. Performance measures in the incentive plans align with the
strategy and the financial key performance indicators on page 6 of the Annual Report, by focusing on sustained earnings growth, return
on invested capital and shareholder returns in the LTIP. The AIP is based on revenue, profit, cash flow and sustainability metrics and
focuses on annual objectives and milestones and creates a platform for sustainable future performance.
The Committee considers that the current remuneration structure provides clear line of sight and understandable outcomes. It is
designed to promote long-term success and the pay mix is therefore focused on long-term variable pay. AIP deferral, LTIP holding
period post vesting, shareholding requirement (including post leaving) and malus and clawback provisions all provide further alignment
with long-term sustainable performance.
The Committee therefore determined to propose only minor changes to the current policy:
§
reduce the level of vesting for threshold performance in the LTIP from 25% of the maximum opportunity to 20%;
§
expand the list of malus and clawback triggers, which will apply for three years following the AIP cash payment and five years from
the start of each LTIP performance period, and enable the Committee to delay vesting and the application of malus and clawback in
case a participant is subject to an internal investigation regarding a serious breach of any of the triggers.
Earlier this year, we engaged with shareholders representing c60% of our issued capital and shareholder representative bodies on the
proposed Policy. The feedback received to date was positive.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
122
RELX
Annual Report 2022 | Governance
Annual Remuneration Report
As you have seen from the financial results presented earlier in the annual report, the Company achieved a very strong performance
in 2022. Underlying revenue growth accelerated to 9%. Underlying adjusted operating profit grew by 15% and at constant currencies,
adjusted EPS grew by 10%. We are proposing an increase in the full-year dividend of 10%. Our Total Shareholder Return outperformed
the FTSE 100 over the last three, five and ten year periods as shown on page 132.
The purpose of RELX is to benefit society by developing products that help researchers advance scientific knowledge; doctors and
nurses improve the lives of patients; lawyers promote the rule of law and achieve justice and fair results for their clients; businesses and
governments prevent fraud; consumers access financial services and get fair prices on insurance; and customers learn about markets
and complete transactions. Our purpose guides our actions beyond the products that we develop. It defines us as a company. Every day
across RELX our employees are inspired to undertake initiatives that make unique contributions to society and the communities in which
we operate. We see what we do as a company as being an integral part of our commitment to environmental, social and governance (ESG)
performance. We have set corporate responsibility objectives which reflect our focus on our unique contributions to society and
align to the United Nations Sustainable Development Goals (SDGs) to do our part to advance this ambitious global agenda by 2030.
We are continuing to reduce our environmental impact to meet our 2025 environmental targets. Our performance continues to be
recognised by external rating agencies. RELX maintains its AAA ESG rating with MSCI for the seventh consecutive year and is fourth
in the Responsibility 100 Index of FTSE 100 companies measured against the United Nations SDGs. Sustainalytics ranked us first
globally in our sector for our ESG performance. More information can be found on pages 28 to 72.
2022 outcomes
Consistent with the approach taken last year and disclosed in last year’s report, the targets of RELX excluding Exhibitions (RX) were
separated from those of RX for purposes of the 2022 AIP and the 2020-2022 LTIP cycle, assigning a weight of 90% in the AIP for RELX
excluding RX and 10% for RX. The Committee also set a cap on the payout of the AIP of 90% of maximum if RX’s adjusted operating profit
in 2022 did not exceed 2021, and set a cap on overall 2020-2022 LTIP payout at 90% of the maximum. The targets remain unchanged from
when these were set at the beginning of the cycle.
All business areas have delivered strong organic revenue and adjusted operating profit growth rates. These results drove an AIP payout
of 76% of the maximum. Details of our targets and achievements for the year are shown on pages 125 and 126.
The three largest business areas performed strongly during the entire performance period and TSR outperformed our UK and
European peer groups. Whilst RX continued its strong recovery in 2022, it was impacted by government-imposed restrictions affecting
its ability to run events during the performance period. As a result, the LTIP payout is 70% of the maximum. Details of our targets and
achievements are shown on page 127.
In determining the level of payout under the annual and the multi-year incentives, the Committee took into account RELX’s overall
business performance and value created for shareholders and other relevant factors and determined that the outcomes were fair
and appropriate and applied no discretion to the payouts.
Broader employee considerations
In 2022, the Committee reviewed information on workforce remuneration and related policies, including:
§
key statistics on the composition of the RELX workforce such as location, gender, ethnicity, age and length of service;
§
pay philosophy and the evolution of our pay practices, including pay equity processes;
§
annual salary increase guidelines globally;
§
details of the pension plan arrangements in our top five countries by number of employees;
§
participation data on annual incentives (sales and non-sales) and share plans;
§
employee surveys conducted during the year. In addition, our designated Non-Executive Director responsible for workforce
engagement, Marike van Lier Lels, continued to meet with employee representatives from Europe, US and Asia Pacific during 2022
and reported back to the Board. Further information on the workforce engagement process is provided in the Governance section
on page 110.
When determining the remuneration for Executive Directors and Senior Executives, the Committee considers business and individual
performance as well as other factors including broader employee reward.
The Committee is satisfied that the overall remuneration for Executive Directors is appropriate and fair having considered external
and internal relativities.
The Committee is satisfied that the incentive schemes drive the desired behaviours to support the Company’s purpose, values
and strategy.
The Committee also considers broader performance factors when determining payouts.
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RELX
Annual Report 2022 | Directors’ Remuneration Report
Implementation of the Remuneration Policy in 2023
The Committee has approved 2023 salary increases for the Executive Directors of 2.5%.
As outlined in previous reports, from 1 January 2023, the CEO and CFO receive cash in lieu of pension of 11% of their salary, in line with
the regular defined contribution plans (currently capped at 11% in the UK).
Targets for the 2023 AIP and the 2021-2023 LTIP are no longer split between RELX excluding RX and RX.
Further details regarding the implementation of the policy in 2023 can be found on page 134.
This will be my last Directors’ Remuneration Report as I will be stepping down from the Board after the AGM. Robert MacLeod will take
over the role of Remuneration Committee Chair, having served on the Committee for six years. It has been a pleasure to work with my
fellow Committee members, both past and present, over the past 10 years. I would also like to thank shareholders for their feedback and
engagement on remuneration whilst I have been Chair.
Wolfhart Hauser
Chair, Remuneration Committee
Market segments
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Financial statements and
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Overview
124
RELX
Annual Report 2022 | Governance
Annual Remuneration Report
Single Total Figure of Remuneration – Executive Directors (audited)
(a)
(b)
(c)
(d)
(e)
(f)
Annual incentive
Share based
awards
(3)
Pension
(4)
Total
£’000
Salary
Benefits
(1)
Cash
Deferred
Shares
(2)
Total fixed
remuneration
(5)
Total variable
remuneration
(5)
Erik Engstrom
2022
1,345
82
1,023
1,023
4,600
141
8,214
1,568
6,646
2021
1,312
82
1,134
1,134
5,262
635
9,560
2,030
7,531
Nick Luff
2022
792
15
602
602
2,257
127
4,395
933
3,462
2021
773
15
668
668
2,582
139
4,844
926
3,918
(1)
Benefits are typically comprised of a car allowance, private medical/dental insurance and the cost of tax return preparation.
(2)
50% of the AIP is paid in shares deferred for three years. Dividend equivalents accrue on these shares.
(3)
The 2022 figures reflect the vesting of the 2020–2022 cycle of the LTIP. As the LTIP vests after the approval date of this Report, the
average share price for the last quarter of 2022 has been used to arrive at an estimated figure in respect of these awards, in line with
the methodology prescribed by the UK Regulations.
The estimated figures for 2021 disclosed in last year’s Report have been restated to reflect the actual amount of the 2019-2021 cycle
of the LTIP vested and the actual share price, which decreased the 2021 disclosed figure by £73k for the CEO and by £36k for the
CFO. The vesting percentage was determined on 11 February 2022 and was in line with the one disclosed on page 105 of the 2021
Remuneration Report.
For Erik Engstrom, the amount that directly reflects share price appreciation is £1.1m for 2021 and £0.4m for 2022. For Nick Luff,
these numbers are £0.5m for 2021 and £0.2m for 2022.
The awards are due to vest in February 2023 and the 2022 figures will be restated in next year’s report to reflect actual values
at vesting.
(4)
Erik Engstrom was a member of the legacy UK defined benefit pension plan until 31 March 2022, at which time he opted out of the
plan. For the remainder of 2022, he received cash in lieu of pension of 14% of his base salary, in line with the policy for all participants
opting out of the plan, and this amount is reflected in the table. From 1 January 2023, his cash in lieu of pension reduced to 11% of
base salary. At the time he opted out of the legacy defined benefit plan, his accrued annual pension was £618,770. During the first
quarter of 2022, the Company contributed £12,221 and Mr Engstrom paid £113,251 in total contributions and fees in respect of his
participation in the defined benefit plan for the quarter in which he was still a member of that plan. Since Mr Engstrom’s total
contributions and fees that he paid to the plan were greater than the difference in accrued pension as calculated according to the UK
Regulations, there is no value to be shown for the defined benefit element in the single figure, and it therefore solely reflects the
cash in lieu received from 1 April 2022 to the end of the year.
Nick Luff received cash in lieu of pension of 16% of base salary in 2022, which reduced to 11% from 1 January 2023.
(5)
Total fixed remuneration includes base salary, benefits and pension. Total variable remuneration includes annual incentive
and share based awards.
Some figures and subtotals add up to different amounts than the totals due to rounding.
The total remuneration for Directors is set out in note 25 to the consolidated financial statements.
The AIP and LTIP performance measures and targets are shown on the following pages.
125
RELX
Annual Report 2022 | Directors’ Remuneration Report
2022 Annual Incentive
As noted in last year’s report, the Committee had determined to continue to separate the targets of RELX excluding RX from those of RX
in the AIP, assigning a weight of 90% for RELX excluding RX and 10% for RX. Given RX’s faster than anticipated recovery during 2022,
the split of the AIP resulted in a lower AIP payout than would have been the case had the targets not been split.
The Committee had also determined to set a cap on the payout of 90% of maximum in case RX’s adjusted operating profit in 2022 did
not exceed 2021. And as always, the Committee retained the right to consider if the resulting payouts are fair and appropriate in the
circumstances at that time and, if not, potentially exercise its discretion to adjust the payouts.
Set out below is a summary of performance against each financial and non-financial measure and the resulting payout for 2022:
Performance measure
Relative
weighting
% at target
Financial targets
(1)
Achievement
Achievement
% vs target
Payout %
vs target
Payout %
of max
(2)
Threshold
Target
Maximum
Revenue
RELX excl RX
27.0%
7,094
7,547
7,925
7,600
100.7%
107.0%
71.3%
RX
3.0%
550
733
990
953
130.0%
142.9%
95.3%
Revenue – Total
30.0%
110.6%
73.7%
Adjusted net profit after tax
RELX excl RX
27.0%
1,748
1,860
1,953
1,836
98.7%
80.5%
53.7%
RX
3.0%
44
93
143
125
134.6%
132.6%
88.4%
Adj net profit after tax – Total
30.0%
85.7%
57.1%
Cash flow
RELX excl RX
27.0%
2,197
2,337
2,454
2,517
107.7%
150.0%
100.0%
RX
3.0%
146
178
211
192
107.7%
119.3%
79.5%
Cash flow – Total
30.0%
146.9%
98.0%
Financial measures
90.0%
114.4%
76.3%
Non-financial measures
10%
A detailed description of the non-financial measures
and achievement against those is set out on the
next page.
97.5%
65.0%
Total
100%
112.7%
76.1%
(1)
Targets are set on an underlying basis for revenue and on a constant currency basis for adjusted net profit, and reflect targeted growth, with cash flow based on the targeted
cash conversion. Target amounts presented in sterling reflect actual movements in exchange rates relative to their equivalent constant currency amounts.
(2)
The maximum for each measure is 150% of on target. The overall maximum is 200% of salary.
As highlighted earlier, underlying revenue growth was 9%. Underlying adjusted operating profit grew by 15% and at constant currencies, adjusted EPS grew by 10%.
Some figures add up to different amounts than the totals due to rounding.
50% of the AIP will be paid in cash in Q1 2023 and the remainder is paid in Deferred Shares which will be released in Q1 2026. The release
of Deferred Shares is not subject to any further performance conditions but is subject to malus and clawback.
Market segments
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Overview
126
RELX
Annual Report 2022 | Governance
Non-financial measures
As mentioned earlier, we have set corporate responsibility objectives which reflect our focus on our unique contributions to society,
as well as ESG issues more broadly. We align all our objectives to the United Nations Sustainable Development Goals (SDGs) to do our
part to advance this ambitious global agenda by 2030. Among the ways we have progressed our unique contributions is by increasing
the amount of content on the free RELX SDG Resource Centre with special issues coinciding with the UN calendar including World
Environment Day, International Women’s Day, and World Health Day. Ahead of COP27 in November, we released a climate change
special issue, which included a curated list of 110 Elsevier journal articles and book chapters to inspire positive environmental action
and further climate research. The number of SDG Resource Centre unique users has increased by 16% to over 155,000.
Our environmental targets align with our 2025 targets. Whilst carbon reduction and paper usage and waste targets were significantly
exceeded, the Committee applied its judgment to limit the payout to 90% of target given that performance was partially supported by
office closures. More information can be found on pages 28 to 72.
Non-financial measures represent 10% of the AIP. Of this component, achievements and payouts were as follows:
Non-financial measures
Relative
weighting
Target
Achievement
Payout %
of target
Payout %
of max
Carbon reduction
25%
§
Reduce Scope 1 (direct) and Scope 2
(location-based) carbon emissions
by 36% against a 2015 baseline.
§
Reduce energy and fuel
consumption by 25% against a
2015 baseline.
§
Purchase renewable electricity
equivalent to 100% of RELX’s
global electricity consumption
§
Carbon emissions reduced by 60%.
§
Energy and fuel consumption
reduced by 46%.
§
Purchased renewable electricity
equivalent to 100% of RELX’s
global electricity consumption.
90%
60%
Paper usage and
waste
25%
§
Decrease total waste sent to landfill
from reporting locations by 34%
against a 2015 baseline.
§
98% of RELX production papers,
graded in PREPS, to be rated as
‘known and responsible sources’
or certified FSC or PEFC.
§
Total waste sent to landfill reduced
by 94%.
§
99% of RELX production papers
graded in PREPS, rated as ‘known and
responsible sources’ or certified FSC
or PEFC.
90%
60%
Socially responsible
suppliers
25%
§
Increase the number of suppliers
as Code signatories to 3,800.
§
Increase number of independent
external audits of suppliers to 115.
§
Suppliers Code signatories increased
to 4,467.
§
119 audits of suppliers completed.
110%
73.3%
Universal access to
information
25%
§
Increase content on the free RELX SDG
Resource Centre by 500 new content
items.
§
Add three strategic partners to the
RELX SDG Centre.
§
Content on the free RELX SDG
Resource Centres increased by 650.
§
Three new strategic partners: World
Bank, UN University, World
Humanitarian Forum
100%
66.7%
Total
100%
97.5%
65%
127
RELX
Annual Report 2022 | Directors’ Remuneration Report
2020
–
2022 LTIP
Set out below is a summary of performance against each measure of the LTIP cycle 1 January 2020–31 December 2022.
As highlighted earlier, the targets remained unchanged from when these were set at the beginning of 2020. The Committee determined
to measure the performance with respect to EPS and ROIC separately for RELX excluding RX and RX, on a 90%/10% basis and to cap
the overall payout at 90% of the maximum. As noted in the Chair letter, the three main business areas continued to perform strongly and
RX continued its strong recovery. Significant value was generated for shareholders through share price appreciation and dividends
over the performance period. RELX outperformed the UK and European peer groups over the period. The payout is 69.7% of maximum.
Performance measure
Weighting
Performance range and
vesting levels set at grant
(1)
Achievement against the performance range
Resulting vesting
percentage
TSR over the three-year
performance period
20%
below median
median
upper quartile
0%
25%
100%
UK group: upper quartile;
European group: just below upper quartile;
US group: below median
62.3%
Average growth in adjusted EPS over
the three-year performance period
(2)
40%
below 5% p.a.
5% p.a.
6% p.a.
7% p.a.
8% p.a.
9% p.a.
10% p.a.
11% p.a. and above
0%
25%
50%
65%
75%
85%
92.5%
100%
RELX excl RX:7.2%; vesting:67%
RX: below threshold; vesting 0%
60.3%
ROIC in the third year of the
performance period
(3)
40%
below 12.0%
12.0%
12.4%
12.8%
13.2%
13.6%
14.0%
14.4% and above
0%
25%
50%
65%
75%
85%
92.5%
100%
RELX excl RX:13.6%; vesting:85%
RX: 12.7%; vesting 61.3%
82.6%
Total vesting percentage:
69.7%
(1)
Calculated on a straight-line basis for performance between the points.
(2)
EPS for ‘RELX excluding RX’ is calculated as net income (after tax) excluding net income attributable to ‘RX’, divided by the weighted average number of shares outstanding
in the applicable year, with the share count adjusted to reflect the impact of maintaining consistent leverage before changes in the results of RX over the three-year
performance period.
(3)
ROIC for ‘RELX excluding RX’ reflects the performance of the Group for 2022 with adjustments made to remove the effect on ROIC of changes in exchange rates, pension
deficits, accounting standards and the results and invested capital of RX over the three-year performance period.
The performance measures used in incentive plans are based on adjusted figures as they provide relevant information in assessing
the Company’s performance, position and cash flows and we believe they track the core operational performance of RELX and how it
contributes to shareholder value creation. The Annual Report includes a reconciliation of adjusted measures to IFRS measures.
Market segments
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Financial statements and
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Financial review
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Overview
128
RELX
Annual Report 2022 | Governance
Single Total Figure of Remuneration – Non-Executive Directors (audited)
Total fee
Benefits
(1)
Total
2021
2022
2021
2022
2021
2022
Paul Walker
(2)
£541,667
£650,000
£718
£862
£542,385
£650,862
June Felix
£107,500
£123,667
£107,500
£123,667
Wolfhart Hauser
£160,000
£164,500
£160,000
£164,500
Charlotte Hogg
£97,494
£112,000
£97,494
£112,000
Marike van Lier Lels
£127,506
£122,000
£840
£840
£128,346
£122,840
Robert MacLeod
£117,500
£122,000
£117,500
£122,000
Linda Sanford
(3)
£107,500
£33,077
£840
£840
£108,340
£33,917
Andrew Sukawaty
£107,500
£112,000
£107,500
£112,000
Suzanne Wood
£120,000
£124,500
£120,000
£124,500
(1)
Benefits comprise the notional benefit of tax filing support provided to Non-Executive Directors for filings outside their home country resulting from their directorships
with RELX. The incremental assessable benefit charge per tax return for 2022 was £840 (unchanged from 2021) for a UK tax return. Paul Walker’s benefits relate to private
medical insurance. Further, the Company meets all reasonable travel, subsistence, accommodation and other expenses, including any tax where such expenses are
deemed taxable, incurred by the Non-Executive Directors and the Chair in the course of performing their duties.
(2)
Appointed on 1 March 2021. His 2021 fees therefore reflect part year.
(3)
Retired from the Board on 21 April 2022.
The total remuneration for Directors is set out in note 25 to the consolidated financial statements.
Non-Executive Directors’ fees
The fees in the Single Total Figure table for Non-Executive Directors reflect the following fees in 2022:
Annual fee 2022
Annual fee 2023
Chair
£650,000
£650,000
Non-Executive Directors
£90,000
£90,000
Senior Independent Director
£30,000
£30,000
Chair of:
– Audit Committee
£30,000
£30,000
– Remuneration Committee
£30,000
£30,000
Workforce engagement fee
£17,500
£17,500
Committee membership fee:
– Audit Committee
£17,500
£17,500
– Remuneration Committee
£17,500
£17,500
– Nominations Committee
£10,000
£10,000
In addition, an intercontinental travel fee of £4,500 was payable to any Non-Executive Director (excluding the Chair) in respect of each
transatlantic journey made in order to attend a RELX Board or Committee meeting during 2022. In 2023, this fee will remain at £4,500.
Fees may be reviewed annually, although in practice they have changed on a less frequent basis. The last review took place in
December 2021.
129
RELX
Annual Report 2022 | Directors’ Remuneration Report
Statement of Directors’ shareholdings and other share interests (audited)
Shareholding requirement
The Committee believes that a closer alignment of interests can be created between senior management and shareholders if executives
build and maintain a significant personal stake in RELX. The shareholding requirements applicable to the Executive Directors are set out
in the table below. Shares that count for this purpose are (i) any type of RELX security of which the Director, their spouse, civil partner or
dependent child has beneficial ownership of and (ii) AIP deferred shares which are within their three-year deferral period, on a notional
net (after tax) basis. There has been no change to the interests reported below between 31 December 2022 and 15 February 2023.
Meeting the shareholding requirement is both a vesting condition for LTIP awards granted and a requirement to maintain eligibility for
future LTIP awards. On termination of employment, Executive Directors are to maintain their full shareholding requirement (or, if lower,
their actual level of shareholding at the time of leaving) for two years after leaving employment.
On 31 December 2022, the Executive Directors’ shareholdings were as follows:
Shareholding requirement
(% of 31 December 2022 annual base salary)
Shareholding as at
31 December 2022 (% of 31 December 2022
annual base salary)
(1)
Erik Engstrom
450%
2096%
Nick Luff
300%
906%
(1)
Includes AIP deferred shares which are within their three-year deferral period, on a notional net (after tax) basis (58,399 for Erik Engstrom and 34,365 for Nick Luff).
For disclosure purposes, any PLC ADRs held are included as ordinary shares.
Share interests (number of RELX ordinary shares held)
1 January 2022
31 December 2022
Erik Engstrom
1,029,503
(1)
1,172,929
(1)
Nick Luff
276,898
(1)
279,235
(1)
Paul Walker
(2)
16,000
16,000
June Felix
4,100
6,100
Wolfhart Hauser
14,633
14,633
Charlotte Hogg
4,750
4,750
Marike van Lier Lels
11,452
11,718
Robert MacLeod
6,950
6,950
Linda Sanford
(3)
9,700
N/A
Andrew Sukawaty
30,000
30,000
Suzanne Wood
5,100
5,100
(1)
Number excludes AIP deferred shares which are within their three-year deferral period. If these were included on a notional net (after tax) basis, the totals at 31 December
2022 would be 1,231,328 for Erik Engstrom and 313,600 for Nick Luff.
(2)
Appointed effective 1 March 2021.
(3)
Retired from the Board on 21 April 2022.
Scheme interests awarded during the financial year (audited)
LTIP – PERFORMANCE SHARE AWARDS
Basis on which
award is made
Face value of
award at grant
(1)
Value of awards
if vest in line with
expectations
(2)
Percentage of maximum that
would be received if threshold
performance achieved
End of
performance
period
Erik Engstrom
450% of salary
£5,904,387
£2,952,193
If each measure pays out at
threshold, the overall payout is 25%
31 December
2024
Nick Luff
375% of salary
£2,897,415
£1,448,707
AIP – DEFERRED SHARES
Erik Engstrom
1/2 of 2021 AIP payout
£1,134,250
N/A. The release of AIP deferred shares in Q1 2025 is not subject to any
further performance conditions, but is subject to malus and clawback.
Nick Luff
1/2 of 2021 AIP payout
£667,910
(1)
The face value of the LTIP awards and AIP deferred shares granted in February 2022 was calculated using the middle market quotation of a PLC ordinary share (£22.725).
This share price was used to determine the number of awards granted.
(2)
Vesting in line with expectations for LTIP is as per the performance scenario chart disclosed on page 93 of the 2019 Remuneration Report, i.e. 50%.
The LTIP awards granted in 2022 are based on ROIC, EPS and TSR weighted 40%:40%:20% respectively and assessed independently.
The targets and vesting scales applicable to these awards are set out on page 113 of the 2021 Remuneration Report.
Market segments
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130
RELX
Annual Report 2022 | Governance
Multi-year incentive interests (audited)
The tables below and on the next page set out vested but unexercised and unvested options, unvested share awards and AIP deferred
shares held by the Executive Directors including details of awards granted, options exercised and awards vested during the year
of reporting.
All outstanding unvested options and share awards are subject to performance conditions. For disclosure purposes, any PLC ADRs
awarded under the multi-year incentive plans are included as ordinary shares. Between 31 December 2022 and the date of this Report,
there have been no changes in the options or share awards held by the Executive Directors.
Erik Engstrom
SHARES
(1) (2) (3)
Year of
grant
No. of
unvested
shares
held on
1 Jan 2022
No. of
shares
awarded
during
2022
Market
price per
share at
award
No. of
shares
vested
during
2022
Market
price per
share at
vesting
No. of
unvested
shares
held on
31 Dec 2022
End of
performance
period
Date of
vesting
LTIP
2022
259,819
£22.725
259,819
Dec 2024
Feb 2025
2021
308,702
£18.660
308,702
Dec 2023
Feb 2024
2020
271,164
£20.725
271,164
Dec 2022
Feb 2023
2019
309,807
£17.698
218,413
£22.725
Total
889,673
259,819
218,413
839,685
(1)
In addition, Mr Engstrom has 35,860 AIP deferred shares (pre-tax) awarded in 2019 with a market price at award of £17.698. The release of these AIP deferred shares
in February 2022 was not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2019 to
345,667 and the number of unvested shares held on 31 December 2019 to 984,649.
(2)
In addition, Mr Engstrom has 30,777 AIP deferred shares (pre-tax) awarded in 2020 with a market price at award of £20.725. The release of these AIP deferred shares
in February 2023 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2020 to
301,941 and the number of unvested shares held on 31 December 2020 to 1,005,408.
(3)
In addition, Mr Engstrom has 29,498 AIP deferred shares (pre-tax) awarded in 2021 with a market price at award of £18.66. The release of these AIP deferred shares
in February 2024 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2021 to
338,200 and the number of unvested shares held on 31 December 2021 to 985,808.
(4)
In addition, Mr Engstrom has 49,912 AIP deferred shares (pre-tax) awarded in 2022 with a market price at award of £22.725. The release of these AIP deferred shares
in February 2025 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2022 to 309,731
and the number of unvested shares held on 31 December 2022 to 949,872.
OPTIONS
Year of
grant
No. of
options
held on
1 Jan
2022
No. of
options
granted
during
2022
Option
price on
date of
grant
No. of
options
exercised
during
2022
Market
price per
share at
exercise
No. of
options
held on
31 Dec
2022
Unvested
options
vesting on
Options
exercisable
until
2017
85,356
£14.945
85,356
27 Feb 27
90,116
€16.723
90,116
27 Feb 27
2016
101,421
£12.550
101,421
15 Mar 26
107,380
€15.285
107,380
15 Mar 26
2015
114,584
£11.520
114,584
02 Apr 25
120,886
€15.003
120,886
02 Apr 25
2014
145,604
£9.245
145,604
07 Apr 24
158,166
€10.286
158,166
07 Apr 24
Total
923,513
923,513
131
RELX
Annual Report 2022 | Directors’ Remuneration Report
Nick Luff
SHARES
(1) (2)(3)
Year of
grant
No. of
unvested
shares
held on
1 Jan 2022
No. of
shares
awarded
during
2022
Market
price per
share at
award
No. of
shares
vested
during
2022
Market
price per
share at
vesting
No. of
unvested
shares
held on
31 Dec 2022
End of
performance
period
Date of
vesting
LTIP
2022
127,499
£22.725
127,499
Dec 2024
Feb 2025
2021
151,487
£18.660
151,487
Dec 2023
Feb 2024
2020
133,066
£20.725
133,066
Dec 2022
Feb 2023
2019
152,029
£17.698
107,180
£22.725
Total
436,582
127,499
107,180
412,052
(1)
In addition, Mr Luff has 21,269 AIP deferred shares (pre-tax) awarded in 2019 with a market price at award of £17.698. The release of these AIP deferred shares in February
2022 was not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2019 to 173,298 and the
number of unvested shares held on 31 December 2019 to 489,783.
(2)
In addition, Mr Luff has 18,079 AIP deferred shares (pre-tax) awarded in 2020 with a market price at award of £20.725. The release of these AIP deferred shares in February
2023 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2020 to 151,145 and the
number of unvested shares held on 31 December 2020 to 500,024.
(3)
In addition, Mr Luff has 17,370 AIP deferred shares (pre-tax) awarded in 2021 with a market price at award of £18.66. The release of these AIP deferred shares in February
2024 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2021 to 168,857 and the
number of unvested shares held on 31 December 2021 to 493,300.
(4)
In addition, Mr Luff has 29,391 AIP deferred shares (pre-tax) awarded in 2022 with a market price at award of £22.725. The release of these AIP deferred shares in February
2025 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2022 to 156,890 and the
number of unvested shares held on 31 December 2022 to 476,892.
OPTIONS
Year of
grant
No. of
options
held on
1 Jan
2022
No. of
options
granted
during
2022
Option
price on
date of
grant
No. of
options
exercised
during
2022
Market
price per
share at
exercise
No. of
options
held on
31 Dec
2022
Unvested
options
vesting on
Options
exercisable
until
ESOS
2017
40,210
£14.945
40,210
27 Feb 27
42,452
€16.723
42,452
27 Feb 27
2016
47,778
£12.550
47,778
15 Mar 26
50,586
€15.285
50,586
15 Mar 26
2015
53,979
£11.520
53,979
02 Apr 25
56,948
€15.003
56,948
02 Apr 25
2014
65,656
£9.900
65,656
02 Sep 24
72,228
€11.378
72,228
02 Sep 24
Total
429,837
429,837
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
132
RELX
Annual Report 2022 | Governance
Performance graphs
The graphs below show total shareholder returns for RELX calculated on the basis of the average share price in the 30 trading days
before the respective year end and assuming dividends were reinvested. RELX’s performance is compared with the FTSE 100.
The three-year chart covers the performance period of the 2020–2022 cycle of the LTIP.
3 years
5 years
10 years
75
100
125
150
%
+33%
+12%
Dec-22
RELX vs FTSE 100 – 3-YEAR TSR
Dec-19
Dec-21
Dec-20
Δ=
21%
RELX
FTSE 100
%
+51%
Dec-17
Dec-18
Dec-19
Dec-22
Dec-21
Dec-20
75
100
125
150
175
200
RELX
FTSE 100
+21%
Δ=30%
RELX vs FTSE 100 – 5-YEAR TSR
RELX
FTSE 100
Dec-12
Dec-15
Dec-14
Dec-13
Dec-17
Dec-16
Dec-22
Dec-21
Dec-20
Dec-19
Dec-18
%
Δ=283%
+85%
0
100
200
300
400
500
600
+368%
RELX vs FTSE 100 – 10-YEAR TSR
CEO historical pay table
The table below shows the historical CEO pay over a ten-year period.
£’000
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Annualised base salary
1,077
1,104
1,131
1,160
1,189
1,218
1,249
1,280
1,312
1,345
Annual incentive payout
as a % of maximum
70%
71%
70%
68%
69%
78%
77%
65%
86%
76%
Multi-year incentive
vesting as a % of maximum
96%
(1)
90%
(1)
97%
(1)
97%
(1)
92%
(1)
81%
(1)
81%
(1)
6%
71%
70%
CEO total
5,463
17,447
(2)
11,416
(3)
11,399
(4)
8,748
(5)
9,141
(6)
9,346
(7)
3,980
(8)
9,560
(9)
8,214
(10)
(1)
The 2019, 2018, 2017, 2016 and 2015 percentages reflect BIP, LTIP and ESOS. The 2014 percentage reflects the final tranche of the Reed Elsevier Growth Plan (REGP),
BIP and ESOS. The 2013 percentage reflects BIP and ESOS only.
(2)
The 2014 figure includes the vesting of the second and final tranche of the REGP and includes £8.8m attributed to share price appreciation.
(3)
The 2015 figure includes £4.4m attributed to share price appreciation.
(4)
The 2016 figure includes £4.2m attributed to share price appreciation.
(5)
The 2017 figure includes £1.7m attributed to share price appreciation.
(6)
The 2018 figure includes £2.2m attributed to share price appreciation.
(7)
The 2019 figure includes £2.2m attributed to share price appreciation.
(8)
The 2020 figure includes £80k attributed to share price appreciation.
(9)
The 2021 figure includes £1.1m attributed to share price appreciation. The share award value has been restated for actual share prices and exchange rates applicable
on the dates of vesting.
(10)
The 2022 figure includes £0.4m attributed to share price appreciation.
133
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Annual Report 2022 | Directors’ Remuneration Report
Comparison of change in Directors’ pay with change
in employee pay
The UK Regulations require companies to disclose the percentage
change in remuneration from 2021 to 2022 for each director
compared with the employees of the listed company, excluding
directors. RELX PLC has no employees and Executive Directors
are the only employees of RELX Group PLC. We therefore have
no data to report but have chosen to continue to report data on
changes in base salary of the CEO compared with changes in base
salary of a broader employee population. As in the previous year,
the salary increase for the CEO of 2.5% was in line with the salary
increase budget for the UK and the US where the majority of our
employees are based.
UK pay ratios
The UK Regulations require the disclosure of the ratio of total
CEO remuneration to median (P50), 25th percentile (P25) and 75th
percentile (P75) UK employee total remuneration (calculated on
a full-time equivalent basis). UK employees represent less than
20% of our global employee population.
Pay ratios for total remuneration are likely to vary, potentially
significantly, over time, since the CEO’s total remuneration each
year is driven largely by his performance-related pay outcomes
and is affected by share price movements. We have therefore
also shown the UK ratios for the salary component.
For the purposes of the ratios below, the CEO’s 2022 total
remuneration is the total single figure and salary as disclosed
on page 124. The P25, P50 and P75 were selected from the UK
employee population as at 1 October 2022. Ratios for prior
years are as disclosed in the respective reports.
Total remuneration
Pay ratios
All UK employees £’000
Year
Method
P25
P50
P75
P25
P50
P75
2022
A
188:1
129:1
89:1
£44
£64
£93
2021
A
223:1
151:1
104:1
£43
£64
£92
2020
A
98:1
67:1
46:1
£40
£59
£86
2019
A
225:1
149:1
100:1
£39
£58
£86
Salary
Pay ratios
All UK employees £’000
Year
Method
P25
P50
P75
P25
P50
P75
2022
A
34:1
25:1
18:1
£39
£55
£76
2021
A
35:1
25:1
18:1
£38
£52
£74
2020
A
35:1
25:1
18:1
£37
£52
£72
2019
A
35:1
25:1
18:1
£35
£51
£71
Slight differences compared with ratios calculated using data
shown in the tables are due to rounding.
The ratios are calculated using Option A, meaning that the
median, 25th and 75th percentiles were determined based on total
remuneration using the single total figure valuation methodology,
except for annual incentives (other than sales incentives) which
are based on estimated payout as individual final payout levels are
still to be finalised.
We chose Option A as we believe it is the most robust and accurate
way to identify the median, 25th percentile and 75th percentile
UK employee.
The Committee is satisfied that the overall picture presented
by the 2022 pay ratios is consistent with the pay, reward and
progression policies for the Group’s UK employees.
§
Salaries for all UK employees, including the Executive
Directors, are set based on a wide range of factors, including
market practice, scope and impact of the role and experience.
§
The provision of certain benefits and the level of benefit
provided vary depending on the role and level of seniority.
§
Participation in annual incentive plans varies by business and
reflects the culture and the nature of the business, as well
as role.
§
Whilst none of the comparator employees participate in the
executive share plans, they do have the opportunity to receive
company shares via the UK Sharesave Option Plan. A greater
proportion of performance-related variable pay and share
based awards applies to more senior executives, including
the Executive Directors, who have a greater influence over
performance outcomes.
Relative importance of spend on pay
The following table sets out the total employee costs for all
employees, as well as the amounts paid in dividends and
share repurchases.
2021
£m
2022
£m
% change
Employee costs
(1)
2,549
2,906
14%
Dividends
920
983
7%
Share repurchases
0
500
N/A
(1)
Employee costs include wages and salaries, social security costs, pensions and
share based and related remuneration.
Payments to past Directors and payments for loss of office
(audited)
There have been no payments for loss of office in 2022.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
134
RELX
Annual Report 2022 | Governance
Implementation of remuneration policy in 2023
Salary:
The Committee has awarded a salary increase of 2.5% to
each Executive Director, which means that, from 1 January 2023,
Erik Engstrom’s salary rose to £1,378,511 and Nick Luff’s salary
to £811,761. This is below the average increase for the broader
UK workforce and significantly below increases for our lower
paid employees.
Benefits:
The benefits provided to the Executive Directors are
unchanged for 2023.
Annual incentive:
The AIP payout at target performance is 135%
of base salary and the maximum 200% of base salary, with 50%
of the AIP earned deferred into shares. Revenue, adjusted net
profit after tax and cash flow each have a weight of 30% and
non-financial a weight of 10%. Non-financial measures are
focused on sustainability metrics. Details of the 2023 annual
financial targets and non-financial metrics will be disclosed
in the 2023 Remuneration Report.
Pension:
Erik Engstrom and Nick Luff will receive cash in lieu of
pension of 11% of their salary.
Share based awards:
As in 2022, we will be granting LTIP awards
with face values of 450% of salary to Erik Engstrom and 375%
to Nick Luff in 2023. The awards are subject to a three-year
performance period and the net (after tax) vested shares are
to be retained for a further two-year holding period.
The following metrics, weightings, targets and vesting scales
apply to LTIP awards granted in 2023 for the 2023–2025 cycle.
The vesting of LTIP awards is dependent on three separate
performance measures: ROIC, EPS and TSR weighted
40%:40%:20% respectively and assessed independently.
The TSR measure comprises three comparators (sterling,
euro and US dollar) reflecting the fact that RELX accesses equity
capital markets through three exchanges – London, Amsterdam
and New York – in three currency zones. RELX’s TSR performance
is measured separately against each comparator group and
each ranking achieved will produce a payout, if any, in respect
of one-third of the TSR measure. The proportion of the TSR
measure that vests will be the sum of the three payouts.
The averaging period applied for TSR measurement purposes is
the three months before the start of the financial year in which the
award is granted and the last three months of the third financial
year of the performance period.
The companies for the TSR comparator groups for the 2023–2025
LTIP cycle were selected on the following basis (substantially
unchanged from prior year):
(a)
they were in a relevant market index or were the largest
listed companies on the relevant exchanges at the end of the
year before the start of the performance period: the FTSE 100
for the sterling group; the Euronext100 for the euro group; and
the S&P 500 for the US dollar group;
(b)
certain companies were then excluded:
§
those with mainly domestic or single country revenues
(as they do not reflect the global nature of RELX’s
customer base);
§
those engaged in extractive industries (as they are
exposed to commodity cycles); and
§
financial services companies (as they have a different
risk/reward profile).
(c)
the remaining companies were then ranked by market
capitalisation and, for each comparator group, around
50 companies with market capitalisations above and
below that of RELX were taken; and
(d)
relevant listed global peers operating in businesses similar
to those of RELX, but not otherwise included, were added.
Vesting percentage of each third
of the TSR tranche
(1)
TSR ranking within the relevant
TSR comparator group
0%
Below median
25%
Median
100%
Upper quartile
(1)
Vesting is on a straight-line basis for performance between the minimum and
maximum levels.
The calculation methodology for the EPS and ROIC measures
is set out in the 2013 Notices of Annual General Meetings, which
can be found on RELX’s website. The targets and vesting scales
applicable to the EPS and ROIC are set out below.
Vesting percentage
of EPS and ROIC
tranches
(1)
Average growth
in adjusted EPS over
the three-year performance
period
ROIC in the third
year of the
performance period
0%
below 5% p.a.
below 11.0%
25%
5% p.a.
11.0%
50%
6% p.a.
11.5%
65%
7% p.a.
12.0%
75%
8% p.a.
12.5%
85%
9% p.a.
13.0%
92.5%
10% p.a.
13.5%
100%
11% p.a. or above
14% or above
(1)
Vesting is on a straight-line basis for performance between the stated average
adjusted EPS growth/ROIC percentages.
135
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Annual Report 2022 | Directors’ Remuneration Report
Remuneration Committee advice
The Committee consists of independent Non-Executive Directors
and the Chair of RELX. Details of members and their attendance
are contained in the Corporate Governance Review on page 114.
The Chief Legal Officer and Company Secretary attends meetings
as secretary to the Committee. At the invitation of the Chair of the
Committee, the CEO attends appropriate parts of the meetings.
The CEO is not in attendance during discussions about his
remuneration.
The Chief Human Resources Officer advised the Committee
during the year.
Willis Towers Watson is the external adviser, appointed by the
Committee through a competitive process. Willis Towers Watson
also provided actuarial and other human resources consultancy
services to some RELX companies during the year. The Committee
is satisfied that the firm’s advice continues to be objective and
independent, and that no conflict of interest exists. The individual
consultants who work with the Committee do not provide advice
to the Executive Directors or act on their behalf. Willis Towers
Watson is a member of the Remuneration Consultants’ Group and
conducts its work in line with the UK Code of Conduct for executive
remuneration consulting. During 2022, Willis Towers Watson
received fees of £3,000 for advice given to the Committee,
charged on a time and expense basis.
Shareholder voting at 2022 Annual General Meeting
At the Annual General Meeting of RELX PLC on 21 April 2022, votes cast by proxy and at the meeting in respect of the Directors’
Remuneration Report were as follows:
Resolution
Votes For
% For
Votes Against
% Against
Total votes cast
Votes Withheld
Remuneration Report (advisory)
1,373,261,824
91.85%
121,919,012
8.15 %
1,495,180,836
1,557,175
At the Annual General Meeting of RELX PLC on 23 April 2020, votes cast by proxy and at the meeting in respect of the Directors’
Remuneration Policy were as follows:
Resolution
Votes For
% For
Votes Against
% Against
Total votes cast
Votes Withheld
Remuneration Policy (binding)
1,507,700,939
93.42%
106,174,539
6.58%
1,613,875,478
690,971
Wolfhart Hauser
Chair, Remuneration Committee
15 February 2023
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
136
RELX
Annual Report 2022 | Governance
Set out in this section is the Company’s proposed new remuneration policy for Directors, which, subject to approval by shareholders,
will apply for three years from the conclusion of the RELX PLC AGM to be held on 20 April 2023. The key changes from the previous
Remuneration Policy (which was first published on pages 90 to 96 of the 2019 Annual Reports and Financial Statements and was
approved by shareholders at the April 2020 Annual General Meeting) and the rationale for the changes are explained in the Committee
Chair’s introduction on page 121. Some minor editorial changes have also been made.
Remuneration policy table – Executive Directors
ANNUAL BASE SALARY
Purpose and link to strategy
To recruit and retain the best executive talent globally to execute our strategic objectives at appropriate cost.
Operation
Salaries for Executive Directors are set and reviewed annually by the Remuneration Committee (the Committee) with changes typically
taking effect on 1 January. In exceptional circumstances, the Committee may review salaries more frequently.
When reviewing salaries, the Committee considers the executive’s role and sustained value to the Company in terms of skill, experience
and overall contribution and the Company’s guidelines for salaries for all employees for the year. Periodically, competitiveness with
companies which are comparable in respect of industry, size, international scope and complexity is also considered in order to ensure
the Company’s ability to attract and retain executives.
Performance framework
N/A
Maximum value
Salary increases will continue to be aligned with the range of increases for the wider employee population and subject to annual
all-employee guidelines. However, as for all employees, the Committee has discretion to exceed this to take account of individual
circumstances such as change in responsibility, increases in scale or complexity of the business or alignment to market level.
Recovery of sums paid
No provision.
RETIREMENT BENEFITS
Purpose and link to strategy
Retirement plans are part of remuneration packages designed to recruit and retain the best executive talent at appropriate cost.
Operation
Executive Directors receive pension benefits up to the value equivalent to the maximum level of pension benefits provided under the
Company’s regular defined contribution pension plans as may be in effect or amended from time to time (currently 11% of base salary
in the UK). The defined contribution pension plans are designed to be competitive and sustainable long-term. Any amount payable may
be paid wholly or partly as cash in lieu.
Performance framework
N/A
Maximum value
The maximum value is equivalent to the maximum level of pension benefits provided under the Company’s regular defined contribution
pension plans as may be in effect or amended from time to time (currently capped at 11% of base salary in the UK).
Recovery of sums paid
No provision.
Remuneration Policy Report
137
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Annual Report 2022 | Directors’ Remuneration Report
OTHER BENEFITS
Purpose and link to strategy
To provide competitive benefits at appropriate cost.
Operation
Other benefits, subject to periodic review, may include private medical and dental cover, life assurance, tax return preparation costs,
car benefits, directors’ and officers’ liability insurance, relocation benefits and expatriate allowances and other benefits available to
employees generally, including, where appropriate, the tax on such benefits.
Performance framework
N/A
Maximum value
The maximum for ongoing benefits for Executive Directors will not normally exceed 10% of salary (excluding any one-off items,
such as immigration support or relocation benefits, and any tax related charge on benefits which is met by the Company). However,
the Committee may provide reasonable benefits beyond this amount in exceptional situations, such as a change in the individual’s
circumstances caused by the Company, or if there is a significant increase in the cost of providing the agreed benefit.
ANNUAL INCENTIVE PLAN (AIP)
Purpose and link to strategy
The annual incentive provides focus on the delivery of annual financial targets and the achievement of annual objectives and milestones
which are chosen to align with the Company’s strategy and create a platform for sustainable future performance. The compulsory
deferral of 50% of any annual incentive earned into RELX shares for three years promotes longer-term alignment of Executive Directors’
interests with shareholders’ interests, including an element of post-termination shareholding.
Why performance measures are chosen and how targets are set
Performance measures include a balanced set of financial measures which are appropriately weighted and which support current
strategy and incentivise the Executive Directors to achieve the desired outcomes without undue risk of focusing on any one financial
measure. The financial targets are designed to be challenging and are set with reference to the previous year’s performance and
internal and external forecasts for the following year.
Performance measures may also include non-financial measures, for example linked to sustainability.
Operation
The Committee reviews and sets the financial targets and, if applicable, non-financial targets, annually, taking into account internal
forecasts and strategic plans. Following year end, the Committee compares actual performance with the financial targets and assesses
the achievement of any non-financial targets. The targets and outcomes are fully disclosed in the Remuneration Report published after
year end.
50% of any annual incentive earned is paid in cash to the Executive Director and the remaining 50% is deferred into RELX shares, which
are released to the Executive Director after three years. Dividend equivalents accrued during the deferral period are payable in respect
of the shares. On a change in control, the default position is that deferred shares are released to the Executive Director. Alternatively,
the Committee may determine that deferred shares will instead be exchanged for equivalent share awards in the acquiring company.
Performance framework
The AIP includes financial measures with a weighting of at least 85% and may also include non-financial measures with a weighting of up
to 15%. Each measure is assessed separately.
§
The minimum payout is zero.
§
Each measure is assessed independently and payout for each measure at threshold is 10% of the maximum opportunity for that
measure.
§
Payout for target performance is 135% of salary.
Following an assessment of financial achievement, and scoring of any non-financial measures, the Committee agrees the overall level
of earned incentive for each Executive Director.
Committee discretion applies.
1,2,3
Maximum value
The maximum potential annual incentive is 200% of annual base salary. This includes the deferred share element but excludes dividend
equivalents payable in respect of the deferred shares.
Recovery of sums paid
Clawback applies.
4
Market segments
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138
RELX
Annual Report 2022 | Governance
LONG-TERM INCENTIVE PLAN (LTIP)
Purpose and link to strategy
The Long-Term Incentive Plan (LTIP) is designed to provide a long-term incentive for Executive Directors to achieve the key performance
measures that support the Company’s strategy, and to align their interests with shareholders.
Why performance measures are chosen and how targets are set
Our strategic focus is on continuing to transform the core business through organic investment and the build-out of new products into
adjacent markets and geographies, supplemented by selective portfolio acquisitions and divestments. The performance measures in
the LTIP are chosen to support this strategy by focusing on sustained earnings growth, return on invested capital and shareholder return.
Targets are set with regard to previous results and internal and external forecasts for the performance period and the strategic plan for
the business. They are designed to provide exceptional reward for exceptional performance, whilst allowing a reasonable expectation
that reward at the lower end of the scale is attainable, subject to robust performance.
Operation
Annual awards of performance shares, with vesting subject to:
§
performance measured over three financial years
§
continued employment (subject to the provisions set out in the Policy on payments for loss of office section)
§
meeting shareholding requirements (450% of salary for the CEO and 300% of salary for the CFO)
Executive Directors are to retain their net (after tax) vested shares for a holding period of two years after vesting. Dividend equivalents
accrued during the performance period are payable in respect of the performance shares that vest.
On a change of control, the default position is that awards vest on a pro-rated basis, subject to an assessment of performance against
targets at that time. Alternatively, the Committee may determine that the awards will not vest and will instead be exchanged for
equivalent awards in the acquiring company.
Performance framework
The performance measures are EPS, ROIC and relative TSR, weighted 40%:40%:20% respectively and assessed independently,
such that a payout can be received under any one of the measures (or, for TSR, in respect of one of the three comparator groups).
§
The minimum payout is zero.
§
Each measure is assessed independently and payout for each measure at threshold is 20% of the maximum opportunity for
that measure.
§
Payout in line with expectations is 50% of the maximum award.
Dividend equivalents are not taken into account in the above payout levels.
Committee discretion applies.
1,2,3
Maximum value
The maximum grant in any year is up to 450% of base salary for the CEO and up to 375% of base salary for other Executive Directors
(not including dividend equivalents).
Recovery of sums paid
Clawback applies.
4
Notes to the Remuneration policy table
(1)
Discretion in respect of AIP and LTIP payout levels:
In determining the level of payout under the AIP and vesting under the LTIP, the
Committee takes into account RELX’s overall business performance and value created for shareholders over the period in review
and other relevant factors. It has discretion to adjust the vesting and payout levels (subject always to the maximum individual limits)
if it believes this would result in a fairer outcome. This discretion will only be used in exceptional circumstances and the Committee will
explain in the next Remuneration Report the extent to which it has been exercised and the reasons for doing so.
(2)
Discretion to vary performance measures under the AIP and the LTIP:
The Committee may vary the financial measures applying to a
current annual incentive year and performance measures for LTIP awards already granted if a change in circumstances leads it to believe
that the arrangement is no longer a fair measure of performance. Any new measures will not be materially less, or more, challenging than
the original ones.
(3)
Discretion on termination of employment under the AIP and the LTIP:
The Committee’s discretion on termination of employment is
described under the ‘Policy on payments for loss of office’ section.
(4)
Malus and clawback under the AIP and the LTIP:
Under the AIP and the LTIP, the Committee has discretion to apply malus and clawback in
case of material misstatement of results or erroneous calculation in incentive payout; breach of post-termination restrictive covenants;
misconduct; fraud or conduct which results in (i) significant reputational damage; (ii) material adverse effect on the financial position of the
Company; or (iii) corporate failure. These apply for three years following the AIP cash payment and five years from the start of each LTIP
performance period and, in the case of a breach of restrictive covenants, to the end of the restriction period. If a participant is subject to an
internal investigation regarding a serious breach of any of the above matters, the vesting of their awards and the application of malus and
clawback may be delayed until the outcome of that investigation.
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Annual Report 2022 | Directors’ Remuneration Report
(5)
Explanation of differences between the Company’s policy on Executive Directors’ remuneration and the policy for other employees:
A larger percentage of Executive Directors’ remuneration is performance related than that of other employees. All managers participate
in an annual incentive plan. Participation levels, measures and targets vary according to their role, seniority and local business priorities.
Senior executives may also participate in multi-year equity plans. Grant levels under the plans vary according to roles and seniority.
The range and level of retirement and other benefits provided to employees vary according to local market practice.
Remuneration outcomes in different performance scenarios
The Committee considers the level of remuneration that may be paid in the context of the performance delivered and value added for
shareholders. The charts below are an illustration of how the CEO’s and CFO’s regular annual remuneration could vary under different
performance scenarios. The salary, benefits and pension levels are the same in all three scenarios in each chart and are based on 2023
salary, benefits as shown in the 2022 Single Total Figure table and cash in lieu of pension of 11% of base salary. Annual incentive amounts
include the portion which is subject to compulsory deferral into RELX shares for three years. The performance assumptions which
have been used are as follows: Minimum means no AIP payout and no LTIP vesting. In line with expectations means AIP payout at 135%
of salary (of which 50% is deferred into shares) and LTIP vesting at 50% of the award. Maximum means AIP payout at 200% of salary
(of which 50% is deferred into shares) and LTIP vesting at 100% of the award. The three bars in each chart assume no share price
movement. As required by the UK Regulations, assuming maximum performance achievement (as described above) and 50% share
price growth over the performance period, the CEO’s maximum remuneration would increase to £13.7 m and the CFO’s maximum
remuneration to £7.1m. Any dividend equivalents payable in respect of the AIP deferred shares and the LTIP are not included.
LTIP
AIP cash and deferred shares
Salary, benefits, pension
CEO remuneration (£’000)
Minimum
In line with
expectations
Maximum
100%
25%
15%
28%
47%
26%
59%
1,612
6,575
10,572
LTIP
AIP cash and deferred shares
Salary, benefits, pension
CFO remuneration (£’000)
Minimum
In line with
expectations
Maximum
100%
26%
16%
31%
43%
29%
55%
916
3,534
5,583
Shareholding requirement
The Executive Directors are subject to shareholding requirements. These are a minimum of 450% of annual base salary for the CEO and
300% of annual base salary for other Executive Directors. On joining or promotion to the Board, Executive Directors are given a period of
time, typically up to five years, to build up to their requirement. On termination of employment, Executive Directors are to maintain their
full shareholding requirement (or, if lower, their actual level of shareholding at the time of leaving) for two years after leaving employment.
Shares which count for shareholding purposes are shares beneficially owned by the Executive Director, their spouse, civil partner or
dependent child and AIP deferred shares which are within their three-year deferral period, on a notional net of tax basis.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
140
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Annual Report 2022 | Governance
Approach to recruitment remuneration – Executive Directors
When agreeing the components of a remuneration package on the appointment of a new Executive Director, or an internal promotion
to the Board, the Committee would seek to align the package with the remuneration policy stated in the policy table.
The Committee’s general principle on recruitment is to offer a competitive remuneration package to attract high-calibre candidates
from a global talent pool. Basic salary would be set at an appropriate level for the candidate, taking into account all relevant factors.
As a data analytics and technology-driven business, with over half of its revenue in the US, the Company primarily competes for talent
with global information and technology companies.
The various components and the Company’s approach are as follows:
REMUNERATION COMPONENTS
The remuneration would include base salary, retirement benefits, other benefits, AIP and LTIP in line with the policy table, taking into
account the principles set out above.
COMPENSATION FOR FORFEITED ENTITLEMENTS
The Committee may make awards and payments on hiring an external candidate to compensate him or her for entitlements forfeited
on leaving the previous employer. If such a decision is made, the Committee will attempt to reflect previous entitlements as closely as
possible using a variety of tools, including cash and share based awards. Malus and clawback provisions will apply where appropriate.
If necessary to facilitate the grant of awards, the Committee may rely on the one person exemption from shareholder approval in the
UK Listing Rules.
RELOCATION ALLOWANCES AND EXPENSES
The type and size of relocation allowances and expenses will be determined by the specific circumstances of the new recruit.
Policy on payments for loss of office
In line with the Company’s policy, the service contracts of the existing Executive Directors contain 12-month notice periods.
The circumstances in which an Executive Director’s employment is terminated will affect the Committee’s determination of any payment
for loss of office, but it expects to apply the principles outlined in the table on the next page. The Committee reserves the right to depart
from these principles where appropriate in light of any taxation requirements to which the Company or the Executive Director is subject
(including, without limitation, section 409A of the US Internal Revenue Code), or other legal obligations.
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Annual Report 2022 | Directors’ Remuneration Report
Policy on payments for loss of office (continued)
GENERAL
(1)
INCENTIVES
Mutually agreed termination/termination by the Company other than for cause
(2)
(includes retirement with customary notice)
The Executive Director would be entitled to salary, benefits
and other contractual payments in the normal way up to the
termination date and would be paid for any accrued but
untaken holiday.
Salary:
Payment of up to 12 months’ salary to reflect the notice
period or payment in lieu of notice.
Other benefits:
Where possible, benefits would be continued for
up to the duration of any unworked period of notice (not exceeding
the maximum stated in the policy table) or the Executive Director
would receive a cash payment (not exceeding the cost to the
Company of providing those benefits).
Pension:
Deferred or immediate pension in accordance with
scheme rules, with a credit in respect of, or payment for up to,
the full period of any unworked period of notice. There is provision
under the defined benefit pension scheme for members leaving
Company service by reason of permanent incapacity to make
an application to the scheme trustee for early payment of
their pension.
Other:
The Company may pay compensation in respect of any
statutory employment rights and may make other appropriate
and customary payments.
The Company would have due regard to principles of mitigation
of loss. Reductions would be applied to reflect any portion of the
notice period that is worked and/or spent on gardening leave.
On injury, disability, ill-health or death, the Committee reserves
the right to vary the treatment outlined in this section.
Annual incentive:
Any unpaid annual incentive for the previous year
and a pro-rata payment in respect of the part of the financial year
up to the termination date would generally be payable (subject
to the deferral provisions), with the amount being determined
by reference to the original performance criteria. However, the
Committee has discretion to decide otherwise depending on
the reason for termination and other specific circumstances.
The Company would not pay any annual incentive in respect of any
part of the financial year following the termination date (e.g. for
any unworked period of notice). AIP deferred shares would be
released to the Executive Directors in full at the end of the deferral
period. The annual incentive clawback provisions would apply.
LTIP:
The default position is that unvested LTIP awards would be
pro-rated to reflect time employed and would vest subject to
performance measured at the end of the relevant performance
period and subject to the Executive Director continuing to
meet their full shareholding requirement for two years after the
termination date. The Committee has discretion to allow unvested
LTIP awards to vest earlier and to adjust the application of time
pro-rating and performance conditions, subject to the plan rules.
The requirement to retain net (after tax) vested LTIP shares for
a holding period of two years after vesting ceases to apply on
termination of employment.
Employee instigated resignation
The Executive Director would not receive any payments for
loss of office. The Executive Director would be entitled to salary,
benefits and other contractual payments in the normal way up
to the termination date and would be paid for any accrued but
untaken holiday.
Pension:
A deferred or immediate pension would be payable
in accordance with the scheme rules.
Annual incentive:
The Executive Director would be entitled to
receive an annual incentive for a completed previous year (subject
to the deferral provisions), but not a pro-rated annual incentive
in respect of a part year up to the termination date, unless the
Committee decides otherwise in the specific circumstances. Any
AIP deferred shares would be released to the Executive Director
in full at the end of the deferral period. Annual incentive clawback
provisions would apply.
LTIP:
All outstanding LTIP awards would lapse on the date of notice.
Dismissal for cause
The Executive Director would be entitled to salary, benefits
and other contractual payments in the normal way up to the
termination date and would be paid for any accrued but untaken
holiday but would not receive any payments for loss of office.
Pension:
A deferred or immediate pension would be payable
in accordance with the scheme rules.
Annual incentive:
The Executive Director would not receive any
unpaid annual incentive. Any AIP deferred shares lapse on the
date of dismissal.
LTIP:
All outstanding LTIP awards would lapse on the date
of dismissal.
(1)
In addition to what is set out in this section, on termination for any reason, Erik Engstrom will be entitled to payment of amounts held in his ‘Retirement Account’.
(2)
In cases where the approved leaver treatment applies, the AIP and LTIP have a default position as well as giving the Committee discretion to adjust the default treatment
within certain parameters. The Committee would only expect to exercise such discretion where the Committee believes the personal circumstances of the Executive
Director so require.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
142
RELX
Annual Report 2022 | Governance
Remuneration policy table – Non-Executive Directors
FEES
Purpose and link to strategy
To enable RELX to recruit Non-Executive Directors with the right balance of personal skills and experience to make a major contribution
to the Board and Committees of a global business which is listed in London, Amsterdam and New York.
Operation
RELX Chair:
Receives an aggregate annual fee with no additional fees, for example, Committee Chair fees. The Committee determines
the Chair’s fee on the advice of the Senior Independent Director.
Other Non-Executive Directors:
Receive an annual fee with additional fees payable as appropriate for specific roles and duties.
These additional fees include fees for the Senior Independent Director and Committee Chairs, for membership of Board Committees,
as well as a workforce engagement fee and international travel fees. In future, other fees may be payable, for example attendance fees.
The Board determines the level of fees, subject to applicable law.
Fees may be reviewed annually, although in practice they have changed on a less frequent basis. When reviewing fees, consideration is
given to the time commitment required, the complexity of the role and the calibre of the individual. Periodically, comparative market data
is also reviewed, the primary source for which is the practice of FTSE 30 companies.
Maximum value
The aggregate annual fee limit for fees paid to the Chair and the Non-Executive Directors is £2m. Additional fees for membership of or
chairing Board Committees and assuming additional responsibilities such as acting as Senior Independent Director, are not subject to
this maximum limit.
OTHER BENEFITS
Purpose and link to strategy
To provide competitive benefits at appropriate cost.
Operation
Other benefits for Non-Executive Directors are reviewed periodically and may include private medical cover, tax return preparation
costs, secretarial benefits, car benefits, travel and related subsistence costs, including, where appropriate, the tax on such benefits.
Maximum value
There is no prescribed maximum amount.
Approach to recruitment remuneration – Non-Executive
Directors
Following recruitment, a new Non-Executive Director will
be entitled to fees and other benefits in accordance with the
Company’s remuneration policy. No additional remuneration
is paid on recruitment. However, any reasonable expenses
incurred during the recruitment process will be reimbursed.
Policy on payments for loss of office – Non-Executive Directors
In addition to unpaid accrued fees, the Non-Executive Directors
are entitled to receive one month’s fees for loss of office if their
appointment is terminated before the end of its term.
Service contracts and letters of appointment
There are no further obligations in the Directors’ service contracts
and letters of appointment which are not otherwise disclosed in
this Report which could give rise to a remuneration payment or
loss of office payment. All Directors’ service contracts and letters
of appointment are available for inspection at the Company’s
registered office. The Executive Directors’ service contracts do
not have a fixed expiry date.
Consideration of employment conditions elsewhere in
the Company
When the Committee reviews the Executive Directors’ salaries
annually, it takes into account the Company’s guidelines for
salaries for all employees in the Company’s major operating
locations for the forthcoming year. The Committee also considers
market practice in the FTSE 30 as well as pay practices of other
global information and technology companies when determining
the quantum and structure of Directors’ pay.
The Committee annually reviews various aspects of workforce
remuneration and related policies in order to deepen its
understanding of pay structures throughout the organisation.
Our designated Non-Executive Director responsible for workforce
engagement meets with employees representing our global
employee population in order to understand a wide range of
employee views on a variety of topics. The feedback is reported
back to the Board at least once per year and forms part of the
Board’s discussions and decision making. As part of this process,
the Non-Executive Director explains how executive remuneration
aligns with wider pay policy.
Consideration of shareholder views
Our practice is to consult shareholders and consider their views
when formulating, or changing, our policy. The Committee took
into account feedback received from shareholders since the prior
policy was approved when reviewing the current policy.
Previous remuneration policies and prior commitments
Any payments which are still to be made under arrangements
made and awards granted under previous remuneration policies
will be made consistent with the applicable policy. The provisions
of the previous policies which relate to arrangements and awards
granted under those previous policies will therefore continue to
apply until all payments in relation to those arrangements and
awards have been made. The Committee also reserves the right
to make any remuneration or loss of office payments if the terms
were agreed prior to the approval of the 2013 or 2016 policy or prior
to an individual being appointed as a Director.
Minor amendments
The Committee may make minor amendments for regulatory,
tax or administrative purpose.
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Annual Report 2022
Report of the Audit Committee
This report has been prepared by the Audit Committee and has been approved by the Board. It provides an overview of the membership,
responsibilities and activities of the Committee.
Membership
The Committee comprises at least three independent
Non-Executive Directors. The members of the Committee
who served during the year were:
§
Suzanne Wood (Chair)
§
Andrew Sukawaty
§
June Felix
§
Charlotte Hogg
Of the current members of the Committee, Suzanne Wood,
a US chartered accountant, is considered to have significant,
recent and relevant financial experience.
The Committee as a whole is deemed to have competence
relevant to the sectors in which RELX operates.
Please see pages 98 and 99 for full profiles of Audit
Committee members.
Responsibilities
The main role and responsibility of the Committee is to assist
the Board in fulfilling its oversight responsibilities regarding:
§
the integrity of the interim and full-year financial
statements and financial reporting processes
§
risk management and internal controls, and effectiveness
of internal auditors
§
the performance of the external auditors and the
effectiveness of the external audit process, including
monitoring the independence and objectivity of
Ernst & Young LLP (EY)
The Committee reports to the Board on its activities,
identifying any matters in respect of which it considers
that action or improvement is needed and making
recommendations as to the steps to be taken.
The terms of reference of the Audit Committee are reviewed
annually and a copy is published on the RELX website,
www.relx.com
Financial reporting
In discharging its responsibilities in respect of the 2022 interim and full-year financial statements, the Committee reviewed the following:
AREAS OF SIGNIFICANT JUDGEMENT AND ESTIMATION
NOTE AND PAGE
REFERENCE
IN ANNUAL REPORT
Specific areas of significant accounting judgement and estimation, as set out in note 1 on page 167, reviewed and
challenged by the Committee were:
§
Capitalisation of internally developed intangible assets: The capitalisation of costs related to the development
of new products and business infrastructure, together with the useful economic lives applied to the resulting
assets, requires the exercise of judgement. The Committee received reports from the Group Financial
Controller on the amounts capitalised and asset lives selected for major projects and outcome of impairment
assessment performed
§
Taxation: The valuation of provisions in relation to uncertain tax positions involves estimation. The Committee
received and discussed reports from the Head of Tax on the potential liabilities identified and assumptions used
§
Defined benefit pension obligation: The valuation of certain pension scheme liabilities and assets is subject to
judgement and estimation. The Committee received and discussed regular reports from the Group Financial
Controller on the methodology and the basis of the assumptions used including the recognition of a surplus for
the UK defined benefit scheme for the first time as at 30 June 2022. The Committee discussed and challenged
management’s assessment to recognise this surplus with support from external legal and actuarial advisers
The Committee was satisfied that all judgements and estimations had been appropriately made and the financial
statement disclosures were appropriate.
Note 14
185-187
Note 9
178-181
Note 6
174-178
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
144
RELX
Annual Report 2022 | Governance
OTHER AREAS OF FOCUS
PAGE REFERENCE
IN ANNUAL REPORT
Other areas discussed by the Committee during the year were:
§
Carrying value of goodwill and intangible assets: The judgements and estimates in respect of asset
carrying values relate to the assumptions underlying the value in use calculations such as discount rates and
long-term growth assumptions. The Committee received and discussed reports from the Group Financial
Controller on the methodology, the basis of assumptions used and headroom resulting from the annual
impairment assessment
§
Acquired intangible assets: The identification of separate intangible assets on acquisition requires judgement.
Estimation is required in determining the future cash flows and discount rates used to value these assets.
The Committee received and discussed reports from the Group Financial Controller on the methodology
and the basis of the assumptions used
§
Financing: Judgement is required in assessing the sufficiency and adequacy of current and future liquidity and
funding requirements of the Group. The Committee received and discussed reports from the Group Treasurer
on the Group’s financing including the replacement of the existing undrawn committed bank facilities,
maturing in 2023 and 2024, with a new $3bn facility maturing in April 2025 and issue of $500m US dollar-
denominated term debt and maturity of ten years. See below for further information in respect of the
Committee’s review of the going concern and viability assessments and related disclosure
The Committee was satisfied that all the above items had been appropriately considered and presented in
the Annual Report.
185 - 187
185 - 187
189-190
DISCLOSURE AND PRESENTATION
PAGE REFERENCE
IN ANNUAL REPORT
As well as considering the Annual Report as a whole (see ‘Fair, balanced and understandable’ section below)
the Committee focused on the following areas of disclosure and presentation:
§
Reviewed the critical accounting policies and compliance with applicable accounting standards, reviewed
other disclosure requirements and received regular update reports on accounting and regulatory
developments
§
Reviewed the disclosures made in relation to internal control, risk management, the going concern statement
and the viability statement. The Committee received and discussed reports from the Group Treasurer on the
processes undertaken and assumptions used in formulating these disclosures
§
The going concern and viability statements were subject to an in-depth review, including a detailed review and
challenge of the various adverse scenarios modelled to ensure that the statements made in relation to going
concern and viability are robust
§
Considered the calculation and presentation of alternative performance measures in the Annual Report and
Financial Statements and results announcement, including associated reconciliations to GAAP measures
§
Reviewed the disclosures made in the Annual Report which incorporates the Corporate Responsibility Report
for the first time. This includes disclosures in respect of the Task Force on Climate-Related Financial
Disclosures (TCFD) recommendations
The Committee was satisfied that all relevant disclosures have been appropriately made.
167-168
88-95
94-95
216-224
28-80
FAIR, BALANCED AND UNDERSTANDABLE
The Committee considered whether the 2022 Annual Report is fair, balanced and understandable. In making this assessment,
the Committee considered the following areas:
§
The process for preparing the Annual Report, including the contributors, the internal review process and how feedback is
addressed throughout the process
§
The business review narratives presented for each business area
§
The discussion of reported and underlying results throughout the report
The Committee was satisfied that, taken as a whole, the Annual Report is fair, balanced and understandable. This conclusion has
been reported to the Board.
The Committee also received detailed written reports from the external auditors on these matters and discussed all areas with both
management and the external auditors. The Committee was satisfied with the explanations provided and conclusions reached.
145
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Annual Report 2022 | Report of the Audit Committee
External audit effectiveness and independence
The Group has a well-established policy on audit effectiveness
and independence of auditors that sets out among other things:
the responsibilities of the Audit Committee in the selection of
auditors to be proposed for appointment or re-appointment and
for agreement on the terms of their engagement, scope and
remuneration; the auditor independence requirements and the
policy on the provision of non-audit services; the rotation of audit
partners and staff; and the conduct of meetings between the
auditors and the Audit Committee.
The Committee’s policy on the use of the external auditor to
provide non-audit services is in accordance with applicable laws
and takes into account the relevant ethical guidance for auditors.
Any permissible non-audit services must be pre-approved by
the Chief Financial Officer and above £50,000, by the Chair of the
Audit Committee. All non-audit services provided and fees are
presented to the Committee on a regular basis.
The policy is available on the website,
www.relx.com
.
The Committee has conducted its review of the performance of
the external auditors and effectiveness of the external audit
process for the year ended 31 December 2022. The review included:
§
an assessment of the quality of the auditor’s reporting to and
interaction with the Audit Committee
§
review of the completion of the audit plan and changes to risks
identified or work performed
§
a discussion with EY on data analytics tools used in the audit;
§
consideration of public reports by regulatory authorities on
key EY member firms and their view on the effectiveness of
EY’s audits
§
a survey of key stakeholders across RELX evaluating the
performance of each audit team
The Audit Committee holds private meetings with the external
auditor to encourage open and transparent feedback. The Chair
of the Committee also met with the external auditors outside
of Committee meetings supporting effective and timely
communication.
Based on this review, the Audit Committee was satisfied with
the performance of the auditors and the effectiveness of the
audit process. The external auditors have confirmed their
independence and compliance with the policy on auditor
independence to the Audit Committee.
Risk management and internal controls
With respect to their oversight of risk management and internal
controls, the Committee has:
§
received and discussed regular reports summarising the
status of the Group’s risk management activities, including the
impact of Covid-19, identification of emerging risks and actions
to mitigate risks, and the findings from internal audits and
status of actions agreed with management. Areas of focus in
2022 included: cyber security (including the ability to prevent,
respond to and recover from a cyber-attack or ransomware
attack); data privacy; the operational, financial and IT control
environment; the use of technology including machine
learning; regulatory compliance; business continuity and
resilience (including supplier resilience and plans for extreme
weather events); the ability to adapt to geopolitical, economic
and market conditions; integrity of published Corporate
Responsibility data; and continued compliance with the
requirements of Section 404 of the US Sarbanes-Oxley Act
relating to the documentation and testing of internal controls
over financial reporting
§
received regular updates from the Group Financial Controller
and Group Treasurer on the Group’s financial position including
on liquidity, renegotiation of its revolving credit agreement,
bond issue, credit ratings and ability to access debt capital
markets, risk management and compliance with treasury
policies and pension arrangements and funding
§
received presentations from the Head of Tax on tax matters
and the Group’s tax principles
§
received presentations explaining the creation of the Internal
Audit & Assurance (IAA) function which combined the
Information Security assurance function with the Internal
Audit function
§
reviewed and approved the internal audit plan for 2023 and
monitored execution of the 2022 plan, including progress in
respect of actions agreed
§
received presentations from the Chief Compliance Officer
on the compliance programmes, including the operation
of the RELX Code of Conduct, training programmes and
whistleblowing arrangements
§
received presentations from the Chief Legal Officer on legal
issues and claims
Committee meetings
The Committee met four times during 2022. The Audit Committee
meetings are typically attended by the Board Chair, the Chief
Executive Officer, the Chief Financial Officer, the Group Financial
Controller, the Chief Legal Officer, the Head of IAA, and audit
partners from the external auditors.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
146
RELX
Annual Report 2022 | Governance
Internal audit
The Audit Committee’s terms of reference requires an annual
review of internal audit effectiveness. RELX has an established
Internal Audit function governed by a formal charter which
requires an external assessment at least once every five years to
consider and report on conformance with the Institute of Internal
Auditors International Professional Practices Framework (IPPF)
and UK Chartered Institute of Internal Auditors Internal Audit
Code of Practice (CoP).
An external assessment of internal audit was carried out in 2022.
Consistent with the recommendations from this assessment to
continue to develop a stronger control and risk environment, it
was decided that a second line of defence Information Security
Assurance function should be combined with the existing internal
audit function to create Internal Audit & Assurance (IAA). These
changes are expected to further strengthen the third line of
defence and have also focused assurance activity and streamlined
interaction with and reporting to stakeholders, including the Audit
Committee. The risk management activities have more clearly
separated from assurance activities and are now led by the Group
Insurance & Risk function which oversees insurable risk and
non-insurable risk.
The Audit Committee annually receives and considers a report
from the Head of IAA on: the independence of the internal audit
activity; a review of the IAA Charter; conformance with the
mandatory elements of the IPPF and CoP; and the results of its
quality assurance and improvement programme.
Audit Committee effectiveness
The effectiveness of the Audit Committee was reviewed as part
of the 2022 evaluation of the Board which confirmed that the
Committee continues to function effectively. Details of the
evaluation are set out on page 116.
Suzanne Wood
Chair of the Audit Committee
15 February 2023
Non-audit services
The external auditors are precluded from engaging in non-audit
services that would compromise their independence or violate
any professional requirements or regulations affecting their
appointment as auditors. The auditors may, however, provide
non-audit services which do not conflict with their independence.
The Committee has, each quarter, reviewed and agreed the
non-audit services provided in 2022 together with the associated
fees. The non-audit services provided in 2022 were very limited
and, in line with the latest FRC guidance, linked to audit work such
as a bond issue and corporate responsibility data assurance.
The total fees payable to EY for the year ended 31 December 2022
were £9.7m of which £0.6m related to non-audit work. Further
details are provided in note 4 to the financial statements.
The non-audit fees remain below the 70% threshold as per the
most recent FRC guidance.
Auditor appointment
EY were first appointed auditor of RELX PLC for the financial year
ended 31 December 2016. The auditor is required to rotate the lead
audit partner responsible for the engagement every five years.
The year ended 31 December 2022 was the second year for the
lead audit partner, Colin Brown. The Audit Committee confirms
that they were in compliance with the provisions of The Statutory
Audit Services for Large Companies Market Investigation
(Mandatory Use of Competitive Tender Processes and Audit
Committee Responsibilities) Order 2014 during the financial year
ended 31 December 2022. In accordance with the terms of this
Order, RELX anticipates that it will conduct a competitive tender
process in respect of the external audit no later than 2025.
Having considered the summary set out above relating to the
effectiveness and independence of EY, the Committee was
satisfied and has recommended to the Board that a Resolution to
re-appoint EY as auditors for the year ending 31 December 2023
be proposed at the 2023 AGM which the Board has accepted
and endorsed.
147
RELX
Annual Report 2022
Directors’ Report
The Directors present their report, together with the financial
statements of the Company, and the consolidated financial
statements of the Group, for the year ended 31 December 2022.
The Company is a public company, limited by shares, and
registered in England and Wales under registered number 77536.
The Company’s registered office is 1-3 Strand, London WC2N 5JR.
This Directors’ report has been prepared in accordance with the
requirements outlined within the Large and Medium-sized
Companies and Groups (Accounts and Reports) Regulations 2008.
For the purposes of this Directors’ Report, and the Corporate
Governance Review from pages 103 to 118, RELX PLC and its
subsidiaries, joint ventures and associates are together known
as ‘RELX’ or the ‘Group’.
Group financial statements
This Directors’ Report and the financial statements of the Group
and Company should be read in conjunction with the other reports
set out on pages 2 to 146. A review of the Group’s performance
during the year is set out on pages 5 to 87, the principal and
emerging risks facing the Group are set out on pages 88 to 95,
and the Group statement on corporate responsibility is set out
on pages 28 to 80.
In addition to the reported figures, adjusted figures are presented
as additional performance measures used by management to
assess the performance of the business. These exclude the
Group’s share of amortisation of acquired intangible assets,
acquisition-related items, tax in joint ventures, disposal gains,
finance income and losses, and other non-operating items and
related tax effects. They also exclude movements in deferred tax
assets and liabilities related to goodwill and acquired intangible
assets, but include the benefit of tax amortisation where available
on goodwill and acquired intangible assets.
Company financial statements
The individual company financial statements of the Group are
presented on pages 206 to 211, and were prepared under Financial
Reporting Standard 101 (FRS 101). Distributable reserves as at
31 December 2022 were £6,465m (2021: £7,042m), comprising
reserves less shares held in treasury. Shareholders’ funds as at
31 December 2022 were £19,637m (2021: £20,182m).
Strategic Report
The Companies Act 2006 requires the Company to present a fair
review of the Group during the financial year. The Strategic report,
which includes a review of the Group’s business areas, a financial
review, the principal and emerging risks facing the Group, any
important events affecting the Group since 31 December 2022,
and the likely future developments in the Group’s business, is set
out on pages 2 to 95. The Directors’ Report, together with the
Strategic report, forms the management report for the purposes
of the Financial Conduct Authority’s Disclosure and Transparency
Rules 4.1.5R(2) and 4.1.8R.
Dividends
The Board is recommending a final dividend of 38.9p (2021: 35.5p)
per ordinary share to be paid on 7 June 2023 to shareholders
appearing on the Register of Members at the close of business on
28 April 2023. Payment of this final dividend remains subject to the
approval of the Company’s shareholders at its 2023 AGM. Together
with the interim dividend of 15.7p (2021: 14.3p) per ordinary share,
paid in September 2022, the total ordinary dividend payable for the
year will be 54.6p (2021: 49.8p) per ordinary share.
Details of our dividend policy are set out on page 86.
Corporate governance statement
The Company has complied throughout the year with the
provisions of the 2018 UK Corporate Governance Code (the Code),
with the exception of provision 38 (rates of contribution for
executive pensions), where full compliance was achieved from
1 January 2023. Details of how the Code has been applied, together
with the Company’s corporate governance framework and the
Directors’ statement on internal control and risk management are
in the Corporate Governance Review which is set out on pages 103
to 146 (inclusive) and incorporated into this Directors’ Report
by reference.
The Code is publicly available on the Financial Reporting Council’s
website
www.frc.org.uk
.
Streamlined Energy and Carbon Reporting (SECR)
Absolute performance
Intensity ratio
(per £m revenue)
2021
Variance
2022
2021
Variance
2022
Global Scope 1
(direct
emissions) tCO
2
e
5,644
-8%
5,211
0.78
-22%
0.61
Global Scope 2
(indirect
location-based
emissions) tCO
2
e
44,051
-15%
37,270
6.08
-28%
4.36
Global energy
MWh*
134,453
-8%
123,325
18.56
-22%
14.42
UK energy MWh*
12,591
-11%
11,220
1.74
-25%
1.31
UK Scope 1 and
Scope 2
emissions tCO
2
e
2,686
-16%
2,250
0.37
-29%
0.26
*
Energy figures include vehicle fuels for SECR reporting. Previous years have been
restated to include the one RX managed event venue.
We report on all global operations for which we have operational
control following the GHG Protocol Corporate Accounting and
Reporting Standard (revised edition) for the reporting year
December 2021 to November 2022.
Directors
The names of the Directors who served on the Board during the
year are set out on pages 98, 99 and 114 and incorporated into this
Directors’ Report by reference.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
148
RELX
Annual Report 2022 | Governance
Share capital
The Company’s issued share capital comprises a single class
of ordinary shares of 14
51
⁄
116
p each, all of which are listed on the
London and Amsterdam stock exchanges. The Company also has
securities in the form of American Depositary Shares traded on
the New York Stock Exchange. All issued shares are fully paid up
and carry no additional obligations or special rights. Each share
carries the right to one vote at general meetings of the Company.
In a general meeting, subject to any rights and restrictions
attached to any shares, on a show of hands every member who is
present in person shall have one vote and every proxy present who
has been duly appointed by one or more members entitled to vote
on the resolution has one vote (although a proxy has one vote for
and one vote against the resolution if: (i) the proxy has been duly
appointed by more than one member entitled to vote on the
resolution; and (ii) the proxy has been instructed by one or more
of those members to vote for the resolution and by one or more
other of those members to vote against it). Subject to any rights
or restrictions attached to any shares, on a vote on a resolution
on a poll every member present in person or by proxy shall have
one vote for every share of which he/she is the holder.
Proxy appointments and voting instructions must be received by
the registrars not less than 48 hours before a general meeting.
There are no specific restrictions on the size of a holding nor on
the transfer of shares, which are both governed by the general
provisions of the Articles and prevailing legislation. The Company
is not aware of any agreements between shareholders that may
result in restrictions on the transfer of shares or on voting rights
attached to the shares. At the 2022 AGM shareholders passed
a resolution authorising the Directors to issue shares for cash
on a non-pre-emptive basis up to a nominal value of £13.9m,
representing less than 5% of the Company’s issued share capital,
and authorising the Directors to issue up to an additional 5% of
the issued share capital for cash on a non-pre-emptive basis in
connection with an acquisition or specified investment. Since the
2022 AGM, no shares have been issued under this authority. The
shareholder authority also permits the Directors to issue shares
in order to satisfy entitlements under employee share plans and
details of such allotments are described below.
During the year, 1,918,456 ordinary shares in the Company were
issued in order to satisfy entitlements under employee share
plans as follows: 566,698 under the UK SAYE Share Option Scheme
at prices between 1,032.0p and 1,392.8p per share; 124,546 under
the legacy Dutch Debenture Scheme at prices between 7.441 EUR
and 19.39 EUR , which is satisfied by way of Company shares;
and 1,227,212 under executive share option schemes at prices
between 515.5p and 2,072.5p per share. The issued share capital
as at 31 December 2022 is shown in note 23 to the consolidated
financial statements.
Authority to purchase own shares
At the Company’s 2022 AGM, shareholders passed a resolution
authorising the purchase of up to 198.5 million ordinary shares
in the Company (representing approximately 10% of the issued
ordinary shares) by way of market purchase. This authority
will expire at the 2023 AGM, at which a resolution to renew
the authority to purchase Company shares will be submitted
to shareholders.
During the year, 21,712,388 ordinary shares of 14
51
⁄
116
p each
(representing 1.1% of the ordinary shares in issue on 31 December
2022) were purchased for a total consideration of £500m,
including expenses, and subsequently transferred to be held in
treasury. A further 6,251,507 shares were purchased between
3 January 2022 and the date of this report.
The Company cancelled 20 million and 32 million ordinary shares
held in treasury on 21 April and 8 December 2022, respectively.
Therefore, as at 31 December 2022 there were 19,800,067 ordinary
shares held in treasury, representing 1% of the ordinary shares
in issue.
Substantial share interests
As at 31 December 2022, the Company had received the following
notifications of interests in voting rights of its issued share
capital pursuant to Rule 5 of the Disclosure and Transparency
Rules (DTRs):
% of voting rights
Date of notification
BlackRock, Inc
9.67%
17 May 2022
Invesco Ltd.
4.99%
1 October 2019
The percentage interests stated above are as disclosed at the date
on which the interests were notified to the Company and, as at the
date of this report, the Company had not received any further
notifications under DTR 5. These percentages do not reflect
changes to the Company’s total voting rights since the date of
notification or any subsequent changes to share interests not
notified to the Company under DTR 5 and therefore may not
reflect the interests held as at 31 December 2022, or at the date
of this report.
Employee Benefit Trust
The trustee of the Employee Benefit Trust held an interest in
5,553,401 ordinary shares in the Company (representing 0.3% of
the issued ordinary shares) as at 31 December 2022. The trustee
may vote or abstain from voting any shares it holds in any way it
sees fit.
Significant agreements – change of control
There are a number of borrowing agreements including credit
facilities that, in the event of a change of control of RELX PLC and,
in some cases, a consequential credit rating downgrade to
sub-investment grade may, at the option of the lenders, require
repayment and/or cancellation as appropriate. There are no
arrangements between the Company and its Directors or
employees providing for compensation for loss of office or
employment that occurs specifically because of a takeover,
merger or amalgamation with the exception of provisions in the
Company’s share plans which could result in options or awards
vesting or becoming exercisable on a change of control.
Articles
The Company’s Articles of Association (the Articles) may only
be amended by a special resolution of shareholders passed
at a general meeting of the Company.
149
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Annual Report 2022 | Directors’ Report
Appointment and replacement of directors
The appointment, re-appointment and replacement of Directors
is governed by the Articles, the Companies Act 2006 and related
legislation. Shareholders maintain their right to appoint and
re-appoint Directors by way of an ordinary resolution in
accordance with the Articles. The Directors may appoint
additional or replacement Directors, who may only serve until the
following AGM of the Company, at which time they must retire and,
if appropriate, seek election by the Company’s shareholders.
A Director may be removed from office by the Company as
provided for by applicable law, in certain circumstances set out
in the Articles, and at a general meeting of the Company by the
passing of an ordinary resolution.
The Articles provide for a Board of Directors consisting of not
fewer than five, but not more than 20 Directors, who manage
the business and affairs of the Company.
Powers of directors
Subject to the provisions of the Companies Act 2006, the Articles
and any directions given by special resolutions, the business of the
Company shall be managed by the Board which may exercise all
the powers of the Company.
Directors’ indemnity
In accordance with its Articles, the Company has granted its
Directors an indemnity, to the extent permitted by law, in respect
of liabilities incurred as a result of their office. This indemnity
was in place for Directors that served at any time during the 2022
financial year, and also for each serving Director as at the date
of approval of this report. The Company also purchased and
maintained throughout the year directors’ and officers’ liability
insurance in respect of itself and its Directors.
Related party transactions
Internal controls are in place to ensure that any related party
transactions involving Directors or their connected persons are
carried out on an arm’s-length basis and are properly recorded
and disclosed where appropriate.
Conflicts of interest
Under the Companies Act 2006, the Directors have a duty to
avoid situations in which they have, or could have, a direct or
indirect interest that conflicts with the interests of the Company.
The Board has established formal procedures for identifying,
assessing and reviewing any situations where a Director has an
interest that conflicts, or may possibly conflict, with the interests
of the Company.
The Nominations Committee considers any such conflict or
potential conflict and makes a recommendation to the Board
on whether to authorise it, as permitted under the Company’s
Articles. In reaching its decision, the Board is required to act
in a way it considers would be most likely to promote the
success of the Company and may impose limits or conditions
when giving its authorisation, if it thinks this is appropriate.
Actual or potential conflicts of interest are reviewed annually
by the Nominations Committee.
No contract existed during the year in relation to the Company’s
business in which any Director was materially interested.
Financial instruments
The Group’s financial risk management objectives and policies,
including hedging activities and exposure to risks, are described
in note 17 to the consolidated financial statements on pages 189
to 194.
Political donations
RELX does not make donations to UK or European Union (EU)
political organisations or incur UK or EU political expenditure.
In the US, Group companies donated £142,047 (2021: £112,967) to
political organisations. In line with US law, these donations were
not made at the federal level, but only to candidates and political
parties at state and local levels.
Employee relations
During 2022, the Group employed over 35,000 (2021: 33,000)
employees worldwide, of whom 5,600 (2021: 5,400) were
employed in the UK. The Group is committed to employee
involvement and participation. Where appropriate, major
announcements are communicated to employees through
internal briefings. Information on performance, development,
organisational changes and other matters of interest is
communicated through briefings and electronic bulletins.
The Company is an equal opportunity employer and does not
discriminate on the grounds of race, gender or other
characteristics in its recruitment or employment policies.
The Group conducts a triennial global Employee Opinion Survey,
which was last undertaken in 2021, and also undertakes regular
employee engagement surveys. For information about the 2022
employee engagement survey and the feedback received from
employees please see pages 44 to 49 and 110. Certain employees
throughout the Group are eligible to participate in the Group’s
share incentive plans.
Engagement with suppliers, customers and others
For further information relating to how the Group has engaged
with its suppliers and customers during the course of the year,
and the effect of that engagement on the principal decisions
taken by the Company, please see pages 50 to 54, 59 to 62 and 111.
Employment of disabled persons
RELX is committed to the fair treatment of people with disabilities
in relation to recruitment, hiring, training, promotion and career
development. Under our Ethics Code and RELX’s Inclusion and
Diversity Policy, discrimination is prohibited and we commit to
providing conditions of employment without regard to protected
characteristics such as race, colour, creed, religion, national
origin, gender, gender identity or expression, sexual orientation,
marital status, age, disability, or any other category protected
by law.
When existing employees become disabled, our policy is to
provide continuing employment, support and training wherever
practicable. Further information about RELX’s approach to
disability inclusion is available in our Corporate Responsibility
Report on pages 46 and 48.
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
150
RELX
Annual Report 2022 | Governance
Disclosures required under UK Listing Rule 9.8.4
The information required by Listing Rule 9.8.4 is set out on the
pages below:
Information required
Page
(1)
Interest capitalised by the Group
n/a
(2)
Publication of unaudited financial information
n/a
(4) Long-term incentive schemes
n/a
(5)
Waiver of emoluments by a director
n/a
(6)
Waiver of future emoluments by a director
n/a
(7)
Non pro-rata allotments for cash (issuer)
n/a
(8)
Non pro-rata allotments for cash (major subsidiaries)
n/a
(9)
Parent participation in a placing by a listed subsidiary
n/a
(10) Contracts of significance
n/a
(11) Provision of services by a controlling shareholder
n/a
(12) Shareholder waiver of dividends
184
(13) Shareholder waiver of future dividends
184
(14) Agreements with controlling shareholders
n/a
Financial statements and accounting records
The Directors are responsible for preparing the Directors’ Report
and the financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
are required to prepare the consolidated financial statements in
accordance with UK adopted International Accounting Standards
in conformity with the requirements of the Companies Act 2006
and International Financial Reporting Standards (IFRS), following
the accounting policies shown in the notes to the financial
statements on pages 167 and 168. The Directors have elected
to prepare the individual company financial statements in
accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework. Under company law the Directors must
not approve the accounts unless they are satisfied that they
give a true and fair view of the state of affairs of the Company
and of the profit or loss of the Company for that period.
In preparing the individual company financial statements,
the Directors are required to: select suitable accounting policies
and then apply them consistently; make judgements and
accounting estimates that are reasonable and prudent; state
whether Financial Reporting Standard 101 Reduced Disclosure
Framework has been followed, subject to any material departures
being disclosed and explained in the financial statements;
and prepare the financial statements on a going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
In preparing the Group financial statements, IAS 1 requires that
Directors: properly select and apply accounting policies; present
information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable
information; provide additional disclosures when compliance
with the specific requirements of IFRS are insufficient to enable
users to understand the impact of particular transactions
or other events and conditions on the entity’s financial position
and financial performance; and make an assessment of the
Company’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the Company and enable them to ensure
that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Directors’ responsibility statement
Each of the Directors, whose names and roles can be found on
pages 98 and 99, confirms that, to the best of their knowledge:
§
the consolidated financial statements, prepared in accordance
with UK adopted International Accounting Standards in
conformity with the requirements of the Companies Act 2006
and International Financial Reporting Standards (IFRS),
following the accounting policies shown in the notes to the
financial statements on pages 167 and 168, give a true and fair
view of the assets, liabilities, financial position and profit or loss
of the Group
§
the individual company financial statements, prepared in
accordance with Financial Reporting Standard 101 ‘Reduced
Disclosure Framework’ (FRS 101), gives a true and fair
view of the assets, liabilities, financial position and profit
or loss of the Company
§
the management report includes a fair review of the
development and performance of the business and the position
of the Group, together with a description of the principal and
emerging risks and uncertainties that it faces
Having taken into account all of the matters considered by the
Board and brought to the attention of the Board during the year,
the Directors are satisfied that the Annual Report and
Financial Statements, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Company’s position and performance,
business model and strategy.
Neither the Company nor the Directors accept any liability to any
person in relation to the Annual Report except to the extent that
such liability could arise under English law. Accordingly, any
liability to a person who has demonstrated reliance on any untrue
or misleading statement or omission shall be determined in
accordance with Section 90A of the Financial Services and
Markets Act 2000.
151
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Annual Report 2022 | Directors’ Report
Disclosure of information to auditors
In accordance with Section 418 of the Companies Act 2006, each
Director in office at the date this Directors’ Report is approved,
confirms that:
§
so far as the Director is aware, there is no relevant audit
information of which the Company’s auditors are unaware
§
he/she has taken all the steps that he/she ought to have taken
as a Director to make himself/herself aware of any relevant
audit information and to establish that the Company’s auditors
are aware of that information
Viability statement and going concern
The Directors’ Viability Statement and statement of going concern
are set out on pages 94 and 95 respectively of the Strategic report.
Auditors
Resolutions for the re-appointment of Ernst & Young LLP as
auditors of the Company and to authorise the Audit Committee,
on behalf of the Board, to determine their remuneration will be
submitted to shareholders at the 2023 AGM.
Annual General Meeting
This year’s AGM will be held at 9.30am on Thursday, 20 April 2023
at Lexis House, 30 Farringdon Street, London EC4A 4HH. Further
information on the arrangements for the AGM are set out in the
Notice of Meeting.
By order of the Board
Henry Udow
Company Secretary
15 February 2023
Registered Office
1-3 Strand
London
WC2N 5JR
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
152
152
RELX
Annual Report 2022
Financial
statements and
other information
In this section
154
Independent auditor’s report
162
Consolidated financial statements
167
Notes to the consolidated financial statements
205
5 year summary
153
153
RELX
Annual Report 2022
Financial review
Financial statements and
other information
Governance
Corporate Responsibility
Overview
Market segments
OPINION
In our opinion:
§
RELX PLC’s group financial statements and parent company financial statements (the “financial statements”) give a true and fair
view of the state of the group’s and of the parent company’s affairs as at 31 December 2022 and of the group’s profit for the year
then ended;
§
the group financial statements have been properly prepared in accordance with UK adopted international accounting standards and
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB);
§
the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
§
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of RELX PLC (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended
31 December 2022 which comprise:
Group
Parent company
Consolidated income statement for the year ended
31 December 2022
Statement of financial position as at 31 December 2022
Consolidated statement of comprehensive income for the
year then ended
Statement of changes in equity for the year then ended
Consolidated statement of cash flows for the year then ended
Related notes 1 to 4 to the financial statements including
a summary of significant accounting policies
Consolidated statement of financial position as at 31 December 2022
Consolidated statement of changes in equity for the year then ended
Related notes 1 to 28 to the financial statements, including a
summary of significant accounting policies
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and UK
adopted international accounting standards and International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board.
The financial reporting framework that has been applied in the preparation of the parent company
financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure
Framework”(United Kingdom Generally Accepted Accounting Practice).
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
INDEPENDENCE
We are independent of the group and parent in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain
independent of the group and the parent company in conducting the audit.
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group and parent company’s
ability to continue to adopt the going concern basis of accounting included:
§
Confirming our understanding of management’s going concern assessment process, in conjunction with our walkthrough of the
Group’s financial close process.
§
Obtaining management’s going concern assessment, including the cash forecast for the going concern period which covers
18 months from the balance sheet date to 30 June 2024. The Group has modelled a base case and a stress case of their cash
forecasts in order to incorporate unexpected changes to the forecasted liquidity of the Group. We have challenged management
on if they have considered all key factors in their assessment. We have reviewed the historical accuracy of management’s forecasts
and verified that these are consistent with forecasts used for other purposes in the audit. We have challenged the factors and
assumptions included in each modelled scenario for reasonableness.
Additionally, we tested the clerical accuracy of cash flow
calculations and determined through inspection and testing of the methodology and calculations that the methods utilised were
appropriately sophisticated to be able to make an assessment for the entity.
§
Considering the mitigating factors included in the stress case that are within control of the Group. This includes review of the Group’s
non-operating cash outflows and evaluating the Group’s ability to control these outflows as mitigating actions if required.
§
Verifying the credit facilities available to the Group including inspection of the renegotiated signed $3bn revolving credit facility for
the absence of financial covenants. Additionally, we obtained independent external confirmation that the facility remains undrawn.
Independent auditor’s report to the members
of RELX PLC
154
RELX
Annual Report 2022 | Financial statements and other information
§
Reviewing management’s reverse stress testing in order to assess the likelihood of factors that would lead to the Group running out of
all available liquidity during the going concern period.
§
Reviewing the Group’s going concern disclosures included in the annual report in order to assess that the disclosures are consistent
with the basis upon which the Board have concluded,
and in conformity with the reporting standards.
In management’s base case and stress case scenarios, there is significant headroom without taking into consideration the benefit of any
identified mitigations.
Within management’s stress case scenario, which assumes no access to the capital markets, the Group would still have substantial
liquidity on its undrawn $3bn revolving credit facility (which was renegotiated in 2022 and no longer contains a financial covenant).
We have not identified going concern to be a key audit matter.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually
or collectively, may cast significant doubt on the group and parent company’s ability to continue as a going concern for a period of
18 months from the balance sheet date to 30 June 2024.
In relation to the group and parent company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this
report.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group’s ability
to continue as a going concern.
OVERVIEW OF OUR AUDIT APPROACH
§
Audit scope
§
We performed an audit of the complete financial information of six components and audit procedures on specific
balances for a further six components. We also instructed one additional location to perform specific audit
procedures over manual journal entries to revenue.
§
The components where we performed full or specific audit procedures accounted for 78% of profit before tax on
an absolute basis, 83% of revenue and 81% of total assets.
Key audit matters
§
Uncertain tax positions – risk that the tax provisions may be incorrectly quantified, impacting the effective tax
rate, and that the tax provision is improperly disclosed.
§
Revenue recognition – risk that there is an opportunity to commit fraud impacting revenue through manual
adjustments or override of controls by management.
Materiality
§
Overall Group materiality of £100m which represents 4.73% of profit before tax.
AN OVERVIEW OF THE SCOPE OF THE PARENT COMPANY AND GROUP AUDITS
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope
for each company within the Group. Taken together, this enables us to form an opinion on the consolidated financial statements. We
take into account size, risk profile, the organisation of the group and effectiveness of group-wide controls, changes in the business
environment, the potential impact of climate change and other factors such as recent internal audit results when assessing the level of work
to be performed at each component.
The group has centralised processes for key judgements and determination of accounting policies. One key audit matter, namely
revenue recognition are more decentralised processes delineated by business area. We have tailored our response accordingly and
procedures were performed or directed by the group audit team.
In assessing the risk of material misstatement to the Group financial statements, and to ensure we had adequate quantitative coverage
of significant accounts in the financial statements we selected twelve components covering entities within United Kingdom, Netherlands,
United States, France and Japan, which represent the principal business units within the Group.
Of the twelve components selected, we performed an audit of the complete financial information of six components (“full scope
components”) which were selected based on their size or risk characteristics. For the remaining six components (“specific scope
components”), we performed audit procedures on specific accounts within that component that we considered had the potential for the
greatest impact on the significant accounts in the financial statements either because of the size of these accounts or their risk profile.
We also instructed one additional location to perform specific audit procedures over manual journal entries to revenue.
The reporting components where we performed full and specific audit procedures accounted for 78% (2021: 80%) of the Group’s profit
before tax on an absolute basis, 83% (2021: 83%) of the Group’s revenue and 81% (2021: 78%) of the Group’s total assets. For the
current year, the full scope components contributed 64% (2021: 60%) of the Group’s profit before tax on an absolute basis, 75% (2021:
77%) of the Group’s revenue and 68% (2021: 69%) of the Group’s total assets. The specific scope component contributed 14% (2021:
20%) of the Group’s profit before tax on an absolute basis, 8% (2021: 6%) of the Group’s revenue and 13% (2021: 9%) of the Group’s
total assets. The audit scope of these components may not have included testing of all significant accounts of the component but will
have contributed to the coverage of significant accounts tested for the Group. We also instructed one location to perform specified
procedures over manual journal entries related to revenue, as described in the Risk section above.
Of the remaining components that together represent 22% (2021: 20%) of the Group’s profit before tax on an absolute basis, none are
individually greater than 1% (2021: 1%) of the Group’s profit before tax on an absolute basis. For these components, we performed
other procedures, including analytical review, review of internal audit reports, testing of entity level and group wide controls, testing of
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
155
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Annual Report 2022 | Independent auditor’s report to the members of RELX PLC
consolidation journals, intercompany eliminations and foreign currency translation recalculations at the group level to respond to any
potential risks of material misstatement to the Group financial statements.
The charts below illustrate the coverage obtained from the work performed by our audit teams.
(1) Coverage of profit before tax measure on an absolute basis for each component (components with a loss would be added to both the numerator and
denominator).
Changes from the prior year
The full scope and specific scope components have not changed from the prior year as these components remain the most significant
to the Group, by size and risk, and the coverage of the Group was consistent with the prior year audit. Our audit has been completed
using a hybrid approach with virtual and in-person meetings where appropriate.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the
components by us, as the primary audit engagement team, or by component auditors from other EY global network firms operating
under our instruction. Of the six full scope components, audit procedures were performed on three of these directly by the primary
audit team. For the three full scope components and the six specific scope components where the work was performed by component
auditors, we determined the appropriate level of involvement to enable us to determine that sufficient audit evidence had been obtained
as a basis for our opinion on the Group as a whole.
The Group audit team continued to follow a programme of planned visits that has been designed to ensure that the Senior Statutory
Auditor or another Group audit partner, visit all full scope and specific scope locations over a one year cycle.
During the current year’s
audit cycle, visits were undertaken by the primary audit team to the component teams in United Kingdom, United States, the Philippines,
the Netherlands, and France. These visits involved meetings with local management, and discussions with the component team on the
audit approach and any issues arising from their work. Oversight of audit work executed in Japan was performed virtually. The primary
team interacted regularly with the component teams where appropriate during various stages of the audit, reviewed relevant working
papers and were responsible for the scope and direction of the audit process. This, together with the additional procedures performed at
Group level, gave us appropriate evidence for our opinion on the Group financial statements.
CLIMATE CHANGE
There has been increasing interest from stakeholders as to how climate change will impact companies. The Group has determined that
the most significant future impacts from climate change on its operations will be from global warming and extreme weather events.
These are explained on pages 73-79 in the required Task Force for Climate related Financial Disclosures, which form part of the “Other
information,” rather than the audited financial statements. Our procedures on these unaudited disclosures therefore consisted solely of
considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or
otherwise appear to be materially misstated in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any potential
consequential material impact on its financial statements.
The Group has explained in Note 1, Basis of Preparation, how they have assessed assets with indefinite and long lives which could be
impacted by measures taken to address global warming. Management concluded that the Group’s operations and the use of the
Group’s products have a relatively low environmental impact, and no issues were identified by management that would impact the
carrying value of such assets or have any other material impact on the financial statements.
Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating management’s
assessment of the impact of climate risk and their climate commitments. This included evaluation, with the support of our internal
climate specialists, of management’s assessment of the risk of impairment due to climate change did not constitute a significant
judgement or estimate. We also performed a risk assessment to determine whether there were other risks of material misstatement from
climate change in the financial statements which needed to be considered in our audit.
We also challenged the Directors’ considerations of climate change in their assessment of going concern and viability and associated
disclosures.
Based on our work we have not identified the impact of climate change on the financial statements to be a key audit matter or to impact
a key audit matter.
Profit before tax
(on an absolute basis)
22%
14%
64%
Full scope components
Specific scope components
Other procedures
Revenue
17%
8%
75%
Total assets
19%
13%
68%
156
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Annual Report 2022 | Financial statements and other information
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we
identified. These matters included those which had the greatest effect on the overall audit strategy, the allocation of resources in the
audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
RISK
OUR RESPONSE TO THE RISK
KEY OBSERVATIONS COMMUNICATED TO THE
AUDIT COMMITTEE
Uncertain tax positions
As described in note 9 to the consolidated
financial statements, note 1 in the
accounting
policies and in the audit
committee report (page 143), the Group is
subject to tax in numerous jurisdictions.
Provisions related to tax totalled £239m as
at 31 December 2022 (2021: £228m). The
Group’s operational structure gives rise to
potential tax expo
sures that require
management to exercise judgement in
making determinations as to the amount of
tax that is payable. The Group reports
cross
-border transactions undertaken
between subsidiaries on an arm’s
-length
basis in tax returns in accordance with
Org
anisation for Economic Co-operation
and Development (OECD) guidelines.
Transfer pricing relies on the exercise of
judgement and it is reasonably possible for
there to be a significant range of potential
outcomes.
As a result, the Group has recognised
a n
umber of provisions against uncertain
tax positions, the valuation of which
requires significant estimation uncertainty,
as described in note 9.
We focused on this area due to the
complexity and the subjectivity in the
quantification of the provision and
the
judgement around the trigger for
recognition or release impacting the
provision and the effective tax rate
.
Our procedures included obtaining an
understanding of the tax provisioning
processes and evaluating the design of, as
well as testing, internal
controls over the tax
provisioning process. We tested controls
over management’s review of the uncertain
tax position provisions recorded, including
the controls over the development of
significant assumptions and judgements.
Our procedures on the uncert
ain tax
positions were performed centrally by the
group team and supported by overseas
teams including professionals with
specialised skills.
Procedures included: (i)
meeting
with members of management responsible
for tax to understand the Group’s cross
-
border transactions, status of significant
provisions, and any changes to
management’s judgements in the year;
(ii) reading correspondence with tax
authorities and external advisors and
obtaining an understanding of all matters
considered by management to
inform our
assessment of recorded estimates and
evaluate the completeness of the provisions
recorded; (iii) independently assessing
management’s significant assumptions and
judgements to record or release provisions
following tax audits, settlements and t
he
expiry of timeframes with reference to other
similar tax positions the Group has
historically held and our knowledge of
developments in the jurisdictions in which
RELX maintain tax provisions; (iv) testing
the underlying schedules for arithmetic
accurac
y, as well as with reference to
applicable tax laws; and (v) evaluating
the adequacy of tax disclosures.
We reported to the Audit Committee that we
challenged the robustness of the key
management judgements around the trigger
for recognition or release im
pacting the
provision and the effective tax rate. We
confirmed that we were satisfied that
management’s judgements in relation to the
quantum of provisions for uncertain tax
positions are appropriate. We noted further
that there continues to be a high degr
ee of
uncertainty about the eventual outcome of
many of these provisions. The notes to the
financial statements appropriately include
disclosure of the estimation uncertainty
related to uncertain tax positions.
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
157
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Annual Report 2022 | Independent auditor’s report to the members of RELX PLC
RISK
OUR RESPONSE TO THE RISK
KEY OBSERVATIONS COMMUNICATED TO THE
AUDIT COMMITTEE
Revenue recognition
Revenue
recognition is described in note 2
to the consolidated financial statements.
The Group recognises revenue (£8.6bn
recorded in 2022, compared to £7.2bn
recorded in 2021) from a variety of sources
among the different business areas,
including annual subscrip
tions,
transactional usage and exhibition fees.
The nature of the risk associated with the
accurate recording of revenue varies.
We recognise that revenue is a key metric
upon which the group is judged, that the
group has annual internal targets, and that
the group has incentive schemes that are
partially impacted by revenue growth.
We have determined that there is a risk
in each
of the business areas related to
the opportunity to commit fraud in the
respective revenue streams through
manual adjustments or override of controls
by management.
We performed full and specific scope audit
procedures over revenue in 12 locations,
which
covered 83% of revenue. We
performed procedures to address the
specific risk in each business area.
Procedures included: (i) assessing the
processes and testing controls over each
significant revenue stream; (ii) evaluating
the appropriateness of journal e
ntries
impacting revenue, as well as other
adjustments made in the preparation
of the financial statements; (iii) evaluating
management’s controls over such
adjustments; (iv) inspecting a sample of
contracts to check that revenue recognition
was in accord
ance with the contract terms
and the group’s revenue recognition
policies, which is in line with IFRS 15; (v)
testing a sample of transactions around
period end to test that revenue was
recorded in the correct period; (vi) for
revenue streams that have jud
gemental
elements, evaluating management’s
assumption and critically challenging these
assumptions against contractual terms and
underlying financial information; (vii) for
certain revenue streams we obtained audit
evidence through the execution of data
an
alytics procedures, including a
correlation of revenue to cash.
The procedures we performed over the
remaining 17% of revenue included:
(i) testing of entity level and group wide
controls; (ii) analytical review of year over
year movements in revenue; (i
ii) review for
evidence of material contracts that would
require further testing.
Revenue has been recognised appropriately
in the year ended 31 December 2022 in
accordance with IFRS 15: Revenue from
Contracts with Customers.
OUR APPLICATION OF MATERIALITY
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the
audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the
economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our
audit procedures.
We determined materiality for the Group to be £100 million (2021: £90 million), which is 4.73% (2021: 5%) of profit before tax.
We
believe that profit before tax provides the most relevant performance measure to the stakeholders of the entity and therefore have
determined materiality based on this number.
During the course of our audit, we reassessed materiality as the actual adjusted profit before tax was higher than the Group’s initial
estimate we used at planning. However, due to the status of our procedures we did not change our materiality from £100 million to
reflect this increase.
We determined materiality for the Parent Company to be £100 million (2021: £90 million), which is 0.5% (2021: 0.4%) of equity.
Performance materiality
The application of materiality at the individual account or balance level.
It is set at an amount to reduce to an appropriately low level the
probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was that
performance materiality was 75% (2021: 75%) of our planning materiality, namely £75m (2021: £68m).
We have set performance
materiality at this percentage due to our assessment of the control environment and the historic lack of significant audit findings.
Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts is
undertaken based on a percentage of total performance materiality. The performance materiality set for each component is based on
the relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component.
In the current year, the range of performance materiality allocated to components was £15m to £65.3m (2021: £6.5m to £52m).
158
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Annual Report 2022 | Financial statements and other information
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £5m (2021: £4.5m),
which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on
qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other
relevant qualitative considerations in forming our opinion.
OTHER INFORMATION
The other information comprises the information included in the annual report set out on pages 1-151, including the Strategic Report
and Governance report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other
information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise
to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there
is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
§
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
§
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the
audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,
in our opinion:
§
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
from branches not visited by us; or
§
the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
§
certain disclosures of directors’ remuneration specified by law are not made; or
§
we have not received all the information and explanations we require for our audit
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance
Statement relating to the group and company’s compliance with the provisions of the UK Corporate Governance Code specified for our
review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit:
§
Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 95;
§
Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is
appropriate set out on page 95;
§
Director’s statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its
liabilities set out on page 95;
§
Directors’ statement on fair, balanced and understandable set out on page 144;
§
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 88;
§
The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out
on page 117; and;
§
The section describing the work of the audit committee set out on page 143
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
159
RELX
Annual Report 2022 | Independent auditor’s report to the members of RELX PLC
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 150, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view,
and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the directors are responsible for assessing the group and parent company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high
level
of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is
higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including
fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the
company and management.
§
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the
most significant are those that relate to the reporting framework (UK adopted International Accounting Standards, FRS 101, the
Companies Act 2006, UK Corporate Governance Code, the US Securities and Exchange Act of 1934 and the Listing Rules of the UK
Listing Authority) and relevant tax compliance regulations in the jurisdictions in which the Group operates and the EU General Data
Protection Regulation (GDPR).
§
We understood how RELX PLC is complying with those frameworks by making inquiries of management, internal audit, those
responsible for legal and compliance procedures and the company secretary. We corroborated our enquiries through our review of
Board minutes and papers provided to the Audit Committee, observations in Audit Committee meetings, as well as consideration of
the results of our audit procedures across the Group.
§
We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by
meeting the finance and operational management from various parts of the business to understand where it considered there was
susceptibility to fraud. We also considered performance targets and their propensity to influence on efforts made by management to
manage earnings. We considered the programmes and controls that the Group has established to address risks identified, other that
otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk
was considered to be higher, specifically manual journal entries to revenue, we performed audit procedures to address the identified
fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial
statements were free from fraud or error.
§
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our
procedures involved journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual
transactions based on our understanding of the business; enquiries of legal counsel, Group management, internal audit, business
area management at all full and specific scope management; and focused testing. In addition, we completed procedures to conclude
on the compliance of the disclosures in the annual report and accounts with all applicable requirements.
Any instances of non-compliance with laws and regulations were communicated by/to components and considered in our audit
approach, if applicable.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
160
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Annual Report 2022 | Financial statements and other information
OTHER MATTERS WE ARE REQUIRED TO ADDRESS
§
Following the recommendation from the audit committee we were appointed by the company on 21 April 2016 to audit the financial
statements for the year ending 31 December and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and reappointments is seven years, covering the years
ending 2016 to 2022.
§
The audit opinion is consistent with the additional report to the audit committee.
USE OF OUR REPORT
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
Colin Brown (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
15 February 2023
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
161
RELX
Annual Report 2022 | Independent auditor’s report to the members of RELX PLC
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
Note
£m
£m
£m
Revenue
2
Cost of sales
(2,487 )
(2,562 )
(3,045 )
Gross profit
Selling and distribution costs
(1,212 )
(1,197 )
(1,385 )
Administration and other expenses
(1,901 )
(1,630 )
(1,819 )
Share of results of joint ventures
Operating profit
2, 3
Finance income
7
Finance costs
7
(175 )
(150 )
(205 )
Net finance costs
(172 )
(142 )
(201 )
Disposals and other non
-operating items
8
(9 )
Profit before tax
Current tax
(264 )
(422 )
(534 )
Deferred tax
(11 )
Tax expense
9
(275 )
(326 )
(481 )
Net profit for the year
Attributable to:
Shareholders
Non
-controlling interests
(16 )
(2 )
Net profit for the year
Earnings per share
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
Basic earnings per share
RELX PLC
10
p
p
p
Diluted earnings per share
RELX PLC
10
p
p
p
Consolidated income statement
162
RELX
Annual Report 2022 | Financial statements and other information
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
Note
£m
£m
£m
Net profit for the year
Items that will not be reclassified to profit or loss:
Actuarial (losses)/gains on defined benefit pension schemes
6
(155 )
Tax on items that will not be
reclassified to profit or loss
9
(48 )
(43 )
Total items that will not be reclassified to profit or loss
(116 )
Items that may be reclassified subsequently to profit or loss:
Exchange
differences on translation of foreign operations
(265 )
Fair value movements on cash flow hedges
17
(6 )
(18 )
Transfer to profit from cash flow hedge reserve
17
(9 )
(17 )
Tax on items that may be
reclassified to profit or loss
9
(4 )
(1 )
Total items that may be reclassified to profit or loss
(253 )
Other comprehensive (loss)/ income for the year
(369 )
Total comprehensive income for the year
Attributable to:
Shareholders
Non
-controlling interests
(16 )
(2 )
Total comprehensive income for the year
Consolidated statement of comprehensive income
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
163
RELX
Annual Report 2022
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
Note
£m
£m
£m
Cash flows from
operating activities
Cash generated from operations
11
Interest paid (including lease interest)
(179 )
(119 )
(169 )
Interest received
Tax paid (net)
(496 )
(342 )
(495 )
Net cash
from operating activities
Cash flows from investing activities
Acquisitions
11
(869 )
(254 )
(394 )
Purchases of property, plant and equipment
(43 )
(28 )
(36 )
Expenditure on
internally developed intangible assets
(319 )
(309 )
(400 )
Purchase of investments
(2 )
(8 )
(66 )
Proceeds from disposals of property, plant and equipment
Gross proceeds from business disposals and sale of
investments
Payments on business disposals
(25 )
(30 )
(15 )
Dividends received from joint ventures
Net cash used in investing activities
(1,173 )
(384 )
(859 )
Cash flows from financing activities
Dividends paid to shareholders
13
(880 )
(920 )
(983 )
Distributions to non
-controlling interests
(6 )
(10 )
(9 )
Decrease in short
-term bank loans, overdrafts and commercial paper
11
(436 )
(200 )
(101 )
Issuance of term debt
11
Repayment of term debt
11
(1,233 )
(431 )
(35 )
Repayment of leases
11
(105 )
(93 )
(79 )
Receipts in respect of subleases
11
Disposal of
non-controlling interest
(1 )
Repurchase of ordinary shares
23
(150 )
(500 )
Purchase of shares by Employee Benefit Trust
23
(37 )
(1 )
(50 )
Proceeds on issue of ordinary shares
Net cash used in
financing activities
(474 )
(1,606 )
(1,334 )
(Decrease)/increase in cash and cash equivalents
11
(51 )
Movement in cash and cash equivalents
At start of year
(Decrease)/increase in cash and cash equivalents
(51 )
Exchange translation differences
(1 )
At end of year
Consolidated statement of cash flows
164
RELX
Annual Report 2022 | Financial statements and other information
AS AT 31 DECEMBER
2021
2022
Note
£m
£m
Non
-current assets
Goodwill
14
Intangible assets
14
Investments in joint ventures and associates
15
Other investments
15
Property, plant and equipment
16
Right
-of-use assets
22
Other receivables
Deferred tax assets
9
Net pension assets
6
Derivative financial instruments
17
Current assets
Inventories and pre
-publication costs
18
Trade and other receivables
19
Derivative financial instruments
17
Cash and cash equivalents
11
Total assets
Current liabilities
Trade and other payables
20
Derivative financial instruments
17
Debt
21
Taxation
9
Provisions
Non
-current liabilities
Derivative financial instruments
17
Debt
21
Deferred tax liabilities
9
Net pension obligations
6
Other payables
Provisions
Total liabilities
Net assets
Capital and reserves
Share capital
23
Share premium
Shares held in treasury
23
(876 )
(414 )
Translation reserve
Other reserves
24
Shareholders’ equity
Non
-controlling interests
(8 )
(22 )
Total equity
The consolidated financial statements were approved by the Board of Directors and authorised for issue on 15 February 2023. They
were signed on its behalf by:
N L Luff
Chief Financial Officer
Consolidated statement of financial position
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
165
RELX
Annual Report 2022
Non-
Share
Share
Shares held
Translation
Other
Shareholders’
controlling
Total
capital
premium
in treasury
reserve
reserves
equity
interests
equity
Note
£m
£m
£m
£m
£m
£m
£m
£m
Balance at 1 January 2020
(834 )
Total comprehensive income for the
year
(265 )
(16 )
Dividends paid
13
(880 )
(880 )
(6 )
(886 )
Issue of ordinary shares, net of
expenses
23
Repurchase of ordinary shares
(87 )
(87 )
(87 )
Increase in share based
remuneration reserve (net of tax)
Settlement of share awards
(34 )
Acquisitions
(2 )
Exchange differences on translation
of capital and reserves
Balance at 1 January 2021
(887 )
Total comprehensive income for the
year
Dividends paid
13
(920 )
(920 )
(10 )
(930 )
Issue of ordinary shares, net of
expenses
23
Repurchase of ordinary shares
(1 )
(1 )
(1 )
Increase in share based
remuneration reserve (net of tax)
Settlement of share awards
(12 )
Balance at 1 January 2022
(876 )
(8 )
Total comprehensive income for the
year
(2 )
Dividends paid
13
(983 )
(983 )
(9 )
(992 )
Issue of ordinary shares, net of
expenses
23
Repurchase of ordinary shares
(650 )
(650 )
(650 )
Purchase of shares by the employee
benefit trust
23
(50 )
(50 )
(50 )
Cancellation of shares
23
(7 )
(1,120 )
Increase in share based
remuneration reserve (net of tax)
Settlement of share awards
(35 )
Disposal of non-controlling interest
(1 )
(1 )
(1 )
Exchange differences on translation
of capital and reserves
(3 )
(3 )
Balance at 31 December 2022
(414 )
(22 )
Consolidated statement of changes in equity
166
RELX
Annual Report 2022 | Financial statements and other information
The shares of RELX PLC London , Amsterdam and New York stock exchanges. RELX PLC and its subsidiaries, joint
ventures and associates are together known as ‘RELX’. In preparing the consolidated financial statements, subsidiaries are accounted
for under the acquisition method and investments in associates and joint ventures are accounted for under the equity method. All intra-
On acquisition of a subsidiary, or interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are
attributed to the net assets, including identifiable intangible assets acquired. Adjustments are made to bring accounting policies into line
with those of the Group. The results of subsidiaries sold or acquired are included in the consolidated financial statements up to or from
the date that control passes from or to the Group. Non-controlling interests in the net assets of the Group are identified separately from
shareholders’ equity. Non-controlling interests consist of the amount of those interests at the date of the original acquisition and the non-
controlling share of changes in equity since the date of acquisition.
operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the
considered the sufficiency of the group’s liquidity resources, including committed credit facilities, over the 18 month period to 30 June
2024. Please refer to page 95 for further disclosure in respect of going concern.
In preparing the Group financial statements management has considered the impact of climate change, taking into account the relevant
disclosures in the Strategic Report, including those made in accordance with the recommendations of the Taskforce on Climate-related
Financial Disclosure. This included an assessment of assets with indefinite and long lives and how they could be impacted by measures
taken to address global warming. Recognising that the Group's operations, and the use of the Group's products, have a relatively low
environmental impact, no issues were identified that would impact the carrying values of such assets or have any other material impact
on the financial statements.
The 2022 annual report and accounts presents multi-year data with the earliest period on the left and the latest period on the right. This
The Group’s consolidated financial statements are prepared in accordance with UK adopted International Accounting Standards in
conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB). The accounting policies under IFRS are included in the relevant notes to the
consolidated financial statements. The accounting policies below are applied throughout the financial statements and are unchanged
The consolidated financial statements are presented in sterling.
Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transaction. Non-monetary assets
and liabilities that are measured at historical cost in foreign currencies are translated using the exchange rate at the date of the
transaction. At each statement of financial position date, monetary assets and liabilities that are denominated in foreign currencies are
retranslated at the rate prevailing on the statement of financial position date. Exchange differences arising are recorded in the income
statement other than where hedge accounting applies, as set out on pages 189 to 194.
Assets and liabilities of foreign operations are translated at exchange rates prevailing on the statement of financial position date. Income
and expense items and cash flows of foreign operations are translated at the average exchange rate for the period. Significant individual
items of income and expense and cash flows in foreign operations are translated at the rate prevailing on the date of transaction.
Exchange differences arising are classified as equity and transferred to the translation reserve. When foreign operations are disposed
of, the related cumulative translation differences are recognised within the income statement in the period.
The Group uses derivative financial instruments, primarily forward contracts, to hedge its exposure to certain foreign exchange risks.
Critical judgements and key sources of estimation uncertainty
The preparation of financial statements requires management to make judgements and estimates in the application of accounting
policies used to report the financial position, results and cash flows of the Group. The actual outcome may differ to these estimates.
The critical judgements and key sources of estimation uncertainty are summarised below. Further detail is provided in the notes to the
financial statements as referenced.
Critical judgements
■
Capitalisation of development spend: assessing the potential value of a development project and determining the costs which are
eligible for capitalisation (see note 14)
Key sources of estimation uncertainty
■
Taxation: the valuation of provisions related to uncertain tax positions (see note 9)
■
Defined benefit pension obligation: determining an appropriate rate at which the future pension payments are discounted, mortality
and inflation assumptions (see note 6)
Notes to the consolidated financial statements
for the year ended 31 December 2022
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
1 Basis of preparation and accounting policies (continued)
Other areas of judgement and accounting estimates
The consolidated financial statements include other areas of judgement and accounting estimates. While these do not meet the
definition under IAS 1 of critical judgements or significant accounting estimates, key areas of judgement in estimating the values in use
of businesses are the growth in cash flows over a forecast period of up to five years, the long-term growth rate assumed thereafter and
the discount rate applied to the forecast cash flows. These calculations require the use of estimates in respect of forecast cash flows
and discount rates.
■
Goodwill: The assessment of the carrying value of goodwill requires management judgement and estimation to determine the
value in use of the businesses (see note 14).
■
Acquired intangible assets: Judgement is involved in identification of separate intangible assets on acquisition and estimation is
required to determine future cashflows and discount rates used in valuation (see note 14).
Other significant accounting policies
The accounting policy in respect of revenue recognition is also significant in determining the financial condition and results of the Group.
The application of this policy is straightforward and is included in note 2.
The interpretations and amendments to IFRS effective for 2022 have not had a significant impact on the Group’s accounting policies or
A number of amendments and interpretations have been issued which are not expected to have any significant impact on the
Adjusted operating profit is the key segmental profit measure used by the Group in assessing performance. Adjusted operating
profit is reconciled to operating profit on page 171.
Revenue arises from the provision of products and services under contracts with customers. In all cases, revenue is recognised to
depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services, and is recognised when the customer obtains control of the goods
or service.
Revenue is stated at the transaction price, which includes allowance for anticipated discounts and returns and excludes customer
sales taxes and other amounts to be collected on behalf of third-parties.
Where the goods or services promised within a contract are distinct, they are identified as separate performance obligations and are
accounted for separately.
Where separate performance obligations are identified, total revenue is allocated on the basis of relative standalone selling prices or
management’s best estimate of relative value where standalone selling prices do not exist. Management estimates may include a
cost-plus method or comparable product approach, but must be supported by objective evidence. A residual approach may be
applied where it is not possible to derive a reliable management estimate for a specific component.
Our subscription and exhibition related revenue streams generally require payment in advance of the service being provided.
Payment terms offered to customers are in line with the standard in the markets and geographies we operate in, and contracts do
not contain significant financing components. Contracts for our transactional electronic revenue streams generally have payments
that vary with volume of usage. Other than that, our contracts do not involve variable consideration.
Revenue is recognised for the various categories as follows:
■
Subscriptions – revenue comprises income derived from the periodic distribution or update of a product. Subscription revenue is
generally invoiced in advance and recognised systematically over the period of the subscription. Recognition is either on a
straight-line basis where the transaction involves the transfer of goods and services to the customer in a consistent manner over
a specific period of time; or based on the value received by the customer where the goods and services are not delivered in a
consistent manner
■
Transactional – revenue is recognised when control of the product is passed to the customer or the service has been performed.
For exhibitions, revenue primarily comprises income from exhibitors and attendees at exhibitions. Exhibition revenue is
2 Revenue, operating profit and segment analysis (continued)
RELX is a global provider of information-based analytics and decision tools for professional and business customers. Operating in four major
market segments: Risk provides customers with information-based analytics and decision tools that combine public and industry-specific
content with advanced technology and algorithms to assist them in evaluating and predicting risk and enhancing operational efficiency;
Scientific, Technical & Medical provides information and analytics that help institutions and professionals progress science, advance
healthcare and improve performance; Legal provides legal, regulatory and business information and analytics that helps customers increase
their productivity, improve decision-making and achieve better outcomes; and Exhibitions combines industry expertise with data and digital
tools to help customers connect digitally and face-to-face, learn amount markets, source products and complete transactions.
ANALYSIS BY BUSINESS SEGMENT
Revenue
Adjusted operating profit
2020
2021
2022
2020
2021
2022
£m
£m
£m
£m
£m
£m
Risk
2,417
2,474
2,909
894
915
1,078
Scientific, Technical & Medical
2,692
2,649
2,909
1,021
1,001
1,100
Legal
1,639
1,587
1,782
330
326
372
Exhibitions
362
534
953
(164)
10
162
Sub
-total
7,110
7,244
8,553
2,081
2,252
2,712
Unallocated central costs and other operating
items
–
–
–
(5)
(42)
(29)
T
o
o
t
t
a
a
l
l
7,110
7,244
8,553
2,076
2,210
2,683
Exceptional costs excluded from adjusted operating profit in 2020 are disclosed on page 171. In 2021, unallocated central costs and
other operating items includes a £35m one-off charge relating to reductions in our corporate real estate footprint. In 2022, this includes
a charge of £24m relating to STM incurred from exchange rate movements from the translation of working capital items such as
accounts receivable and payable, and intercompany balances, into relevant functional currencies and the outcome of STM’s hedging
programme. The net effect of these amounts was higher in 2022 due to the extent and timing of exchange rate movements in the year
and such amounts were insignificant in 2021 and 2020.
2020
Scientific, Technical
Risk
& Medical
Legal
Exhibitions
Total
Revenue by geographical market
North America
1,921
1,224
1,119
43
4,307
Europe
327
621
338
83
1,369
Rest of world
169
847
182
236
1,434
Total revenue
2,417
2,692
1,639
362
7,110
Revenue by format
Electronic
2,387
2,326
1,422
44
6,179
Face
-to-face
19
1
7
318
345
Print
11
365
210
–
586
Total revenue
2,417
2,692
1,639
362
7,110
Revenue by type
Subscriptions
944
2,048
1,287
–
4,279
Transactional
1,473
644
352
362
2,831
Total revenue
2,417
2,692
1,639
362
7,110
2021
Scientific,
Technical
Risk
& Medical
Legal
Exhibitions
Total
Revenue by geographical market
North America
1,957
1,215
1,049
100
4,321
Europe
342
602
341
187
1,472
Rest of world
175
832
197
247
1,451
Total revenue
2,474
2,649
1,587
534
7,244
Revenue by format
Electronic
2,453
2,334
1,385
58
6,230
Face-to-face
13
2
9
476
500
Print
8
313
193
–
514
Total revenue
2,474
2,649
1,587
534
7,244
Revenue by type
Subscriptions
989
1,970
1,255
–
4,214
Transactional
1,485
679
332
534
3,030
Total revenue
2,474
2,649
1,587
534
7,244
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
2 Revenue, operating profit and segment analysis (continued)
2022
Scientific, Technical
Risk
& Medical
Legal
Exhibitions
Total
Revenue by geographical market
North America
2,317
1,391
1,213
180
5,101
Europe*
384
614
357
445
1,800
Rest of world
208
904
212
328
1,652
Total revenue
2,909
2,909
1,782
953
8,553
Revenue by format
Electronic
2,890
2,573
1,582
67
7,112
Face
-to-face
11
5
10
886
912
Print
8
331
190
–
529
Total revenue
2,909
2,909
1,782
953
8,553
Revenue by type
Subscriptions
1,135
2,139
1,381
–
4,655
Transactional
1,774
770
401
953
3,898
Total revenue
2,909
2,909
1,782
953
8,553
*
Europe includes revenue of £544m from the United Kingdom (2021: £476m; 2020: £464m).
Over half of RELX’s revenue comes from subscription arrangements, and revenue for these is generally recognised on a straight-line
basis over the time period covered by the agreement, in line with the provision of services.
There are a number of multi-year contracts, mainly in Risk, where revenue is recognised on the achievement of delivery milestones or
other specified performance obligations. As at 31 December 2022, the aggregate amount of the transaction price of such contracts
which relates to performance obligations which have not yet been delivered was approximately £100m (2021: £95m). It is expected that
revenue will be recognised in relation to this amount over the next six years.
ANALYSIS OF REVENUE BY GEOGRAPHICAL ORIGIN
2020
2021
2022
£m
£m
£m
North America
4,192
4,204
5,002
Europe
2,436
2,547
2,974
Rest of world
482
493
577
Total
7,110
7,244
8,553
Revenue by geographical origin from the United Kingdom in 2022 was £1,481m (2021: £1,248m; 2020: £1,176m).
ANALYSIS BY BUSINESS
SEGMENT
Expenditure on
acquired goodwill and
Capital expenditure
Amortisation of acquired
Total depreciation and
intangible assets
additions
intangible assets
other amortisation
2020
2021
2022
2020
2021
2022
2020
2021
2022
2020
2021
2022
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Risk
822
208
155
93
83
122
192
186
204
98
93
94
Scientific, Technical &
Medical
169
58
206
94
87
103
65
63
60
148
144
119
Legal
–
12
33
153
145
186
68
27
12
210
220
229
Exhibitions
6
9
–
24
24
28
51
22
20
73
30
49
Total
997
287
394
364
339
439
376
298
296
529
487
491
Capital expenditure comprises additions to property, plant and equipment and internally developed intangible assets.
Amortisation of acquired intangible assets includes amounts in respect of joint ventures of £1m (2021: £1m; 2020: nil) in Exhibitions.
Depreciation and other amortisation includes depreciation on property, plant and equipment and right-of-use assets and amortisation of
internally developed intangible assets and pre-publication costs.
In 2020, £38m of depreciation and other amortisation was classified as exceptional in Exhibitions. Excluding this amount gives total
depreciation and other amortisation of £491m for 2020.
2 Revenue, operating profit and segment analysis (continued)
ANALYSIS OF NON-CURRENT ASSETS BY GEOGRAPHICAL LOCATION
2021
2022
£m
£m
North America
8,657
9,821
Europe
2,123
2,193
Rest of world
413
460
Total
11,193
12,474
Non-current assets held in the United Kingdom totalled £1,253m (2021: £1,299m; 2020: £1,158m). Non-current assets by
geographical location exclude amounts relating to deferred tax, pension assets and derivative financial instruments.
Operating profit is reconciled to adjusted operating profit as follows:
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT
2020
2021
2022
£m
£m
£m
Operating profit
1,525
1,884
2,323
Adjustments:
Amortisation of acquired intangible assets
376
298
296
Acquisition-related items
(12)
21
62
Reclassification of tax in joint ventures
5
7
4
Reclassification of finance income in joint ventures
(1)
–
(2)
Exceptional costs in Exhibitions
183
–
–
Adjusted operating profit
2,076
2,210
2,683
In 2020, Exhibitions incurred exceptional costs of £183m. Of the £183m exceptional costs, £135m were cash costs, of which £25m
were paid in 2022 (2021: £52m; 2020: £51m). All costs were included within administration and other expenses in the income
statement.
Acquisition-related items in 2021 included a gain of £27m from the revaluation of a put and call option arrangement relating to a non-
controlling interest in a subsidiary within Legal.
The share of post-tax results of joint ventures of £19m (2021: £29m; 2020: £15m) included in operating profit comprised £10m
(2021: £19m; 2020: £10m) relating to Exhibitions, £7m (2021: £6m; 2020: £4m;) relating to Legal and £2m (2021: £4m; 2020: £1m)
Operating profit is stated after charging/(crediting) the following:
2020
2021
2022
Note
£m
£m
£m
Total staff costs
5
2,555
2,549
2,906
Depreciation and amortisation
Amortisation of acquired intangible assets
14
376
297
294
Share of joint ventures’ amortisation of acquired
intangible assets
–
1
2
Amortisation of acquired intangible assets including joint ventures’ share
376
298
296
Amortisation of internally developed intangible assets
14
319
295
309
Depreciation of property, plant
and equipment
16
60
52
47
Depreciation of right
-of-use assets
88
80
63
Pre-publication amortisation
62
60
72
Total depreciation and other amortisation
2
529
487
491
Total depreciation and amortisation (including amortisation of acquired
intangibles)
905
785
787
Other expenses and income
Cost of sales including pre
-publication costs and inventory expenses
2,487
2,562
3,045
Short-term and low value lease expenses
21
21
19
Operating lease rentals income
(1)
(1)
(1)
The amortisation of acquired intangible assets is included within administration and other expenses. In 2020, £38m of depreciation and
other amortisation was classified as exceptional in Exhibitions. Excluding this amount gives a total depreciation and other amortisation of
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
2020
2021
2022
£m
£m
£m
Auditor’s remuneration
Payable to the auditors of RELX PLC
0.9
0.9
0.9
Payable to the auditors of the Group’s subsidiaries
8.3
7.7
8.2
Audit services
9.2
8.6
9.1
Audit
-related assurance services
0.8
0.5
0.6
Total auditor’s remuneration
10.0
9.1
9.7
Amounts payable to the auditors of the Group’s subsidiaries include amounts for the audit of internal controls over financial reporting in
accordance with the US Sarbanes-Oxley Act. The increase in the 2022 audit fee is mainly due to foreign exchange movements. The
previously reported 2021 fees paid to EY for audit services have been revised to include additional amounts for expenses incurred and
The fair value of share based remuneration is determined at the date of grant and recognised as an expense in the income statement
on a straight-line basis over the vesting period, taking account of the estimated number of shares that are expected to vest. Market
based performance criteria are taken into account when determining the fair value at the date of grant. Non-market based
performance criteria are taken into account when estimating the number of shares expected to vest. The fair value of share based
remuneration is determined by use of a binomial or Monte Carlo simulation model as appropriate. All of the Group’s share based
2020
2021
2022
Note
£m
£m
£m
Staff costs
Wages and salaries
2,173
2,157
2,453
Social security costs
232
214
257
Pensions
6
125
133
150
Share based
remuneration
25
45
46
Total staff costs
2,555
2,549
2,906
The Group provides a number of share based remuneration schemes to directors and employees. The principal share based
remuneration schemes are the Executive Share Option Schemes (ESOS), the Long-Term Incentive Plan (LTIP) and the Retention Share
Plan (RSP). Share options granted under ESOS are exercisable after three years and up to ten years from the date of grant at a price
equivalent to the market value of the respective shares at the date of grant. Conditional shares granted under LTIP and RSP are
exercisable after three years for nil consideration if conditions are met. Other awards principally relate to all employee share based
saving schemes in the UK and the Netherlands. Further details are provided in the Remuneration Report on pages 121 to 142.
NUMBER OF PEOPLE EMPLOYED: FULL-TIME
EQUIVALENTS*
At 31 December
Average during the year
2020
2021
2022
2020
2021
2022
Business segment
Risk
9,700
10,000
10,800
9,600
9,800
10,400
Scientific, Technical & Medical
8,600
8,700
9,500
8,300
8,600
9,300
Legal
10,400
10,500
11,300
10,500
10,300
10,900
Exhibitions
3,700
3,500
3,300
4,200
3,600
3,300
Sub
-total
32,400
32,700
34,900
32,600
32,300
33,900
Corporate/shared functions
800
800
800
800
800
800
Total
33,200
33,500
35,700
33,400
33,100
34,700
Geographical location
North America
14,200
14,000
14,900
14,200
13,900
14,500
Europe
9,500
9,300
9,800
9,600
9,400
9,500
Rest of world
9,500
10,200
11,000
9,600
9,800
10,700
Total
33,200
33,500
35,700
33,400
33,100
34,700
* Reported to the nearest 100.
The number of UK full-time equivalents as at 31 December 2022 was 5,800 (2021: 5,400; 2020: 5,400) and the average during
6 Pension schemes
The expense of defined benefit pension schemes and other post-retirement employee benefits is determined using the projected
unit credit method and charged in the income statement as an operating expense, based on actuarial assumptions reflecting market
conditions at the beginning of the financial year. Actuarial gains and losses are recognised in full in the statement of comprehensive
income in the period in which they occur.
Past service costs and credits are recognised immediately at the earlier of when plan amendments or curtailments occur and when
related restructuring costs or termination benefits are recognised. Settlements are recognised when they occur.
Net pension obligations in respect of defined benefit schemes are included in the statement of financial position at the present value
of scheme liabilities, less the fair value of scheme assets. Where schemes are in surplus, i.e. assets exceed liabilities, the net
pension assets are separately included in the statement of financial position. Any net pension asset is limited to the extent that the
asset is recoverable.
The expense of defined contribution pension schemes and other employee benefits is charged in the income statement as incurred.
At 31 December 2022, the Group operates defined benefit pension schemes in the UK and the US. These schemes require
management to exercise judgement in: estimating the ultimate cost of providing post-employment benefits, especially given the
length of each scheme’s liabilities and; for funded schemes in an accounting surplus position, whether the surplus can be
recognised.
Key source of estimation uncertainty
Accounting for defined benefit pension schemes involves judgement and estimation about uncertain events, including the life
expectancy of the members, inflation and the rate at which the future pension payments are discounted. Estimates for these factors
are used in determining the pension cost and liabilities reported in the financial statements. The estimates made around future
developments of each of the critical assumptions are made in conjunction with independent actuaries. Each scheme is subject to a
periodic review by independent actuaries. The discount rate, inflation rate and mortality assumptions may have a material effect in
determining the defined benefit pension obligation and costs which are reported in the financial statements. Information regarding
A number of pension schemes are operated around the world. The largest defined benefit schemes as at 31 December 2022 were in
the UK and the US, and are summarised below.
Major defined benefit schemes in place at 31 December 2022
The UK scheme is a final salary scheme and is closed to new hires. Members accrue a portion of their final pensionable earnings based
on the number of years of service. The US scheme is a cash balance scheme and was closed to future accruals effective 1 January 2019.
Each of the major defined benefit schemes is administered by a separate fund that is legally separated from the Group. The trustees of
the pension funds in the UK and plan fiduciaries of the US scheme are required by law to act in the interest of the funds’ beneficiaries.
In the UK, the trustees of the pension fund are responsible for the investment policy with regard to the assets of the fund. The board of
trustees consists of an equal number of company-appointed and member-nominated Directors. In the US, the fiduciary duties for the
scheme are allocated between committees which are staffed by senior employees of the Group; the investment committee has the
primary responsibility for the investment and management of plan assets. The funding of the Group’s major schemes reflects the
different rules within each jurisdiction.
In the UK, the level of funding is determined by statutory triennial actuarial valuations in accordance with pensions legislation. Where the
scheme falls below 100% funded status, the Group and the scheme trustees must agree on how the deficit is to be remedied. The UK
Pensions Regulator has significant powers and sets out in codes and guidance the parameters for scheme funding. As a result of the
2021 triennial valuation, the Group’s remaining deficit funding contributions to the scheme over the period 2023 to 2024 are £76m.
The US scheme has an annual statutory valuation which forms the basis for establishing the employer contribution each year (subject to
ERISA and IRS minimums). Should the statutory funded status fall to below 100%, the US Pension Protection Act requires the deficit to
be rectified with additional contributions over a seven-year period. The US scheme’s funded status is in excess of 100%.
Employer cash contributions to defined benefit pension schemes in respect of 2023 are expected to be approximately £63m including a
£50m pension deficit funding contribution relating to the UK scheme recovery plan.
The pension expense (excluding interest amounts) recognised in the income statement consists of:
2020
2021
2022
£m
£m
£m
Defined benefit pension expense
11
24
19
Defined contribution pension expense
114
109
131
Total
125
133
150
£150m (2021: £133m; 2020: £125m) of the total pension cost is recognised within operating profit.
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
6 Pension schemes (continued)
The amounts recognised in the income statement in respect of defined benefit pension schemes during the year are presented by major
scheme as follows:
2020
2021
2022
UK
US
Total
UK
US
Total
UK
US
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
Service cost
21
3
24
21
3
24
16
3
19
Settlement and past service credits
–
(13)
(13)
–
–
–
–
–
–
Defined benefit pension expense
21
(10)
11
21
3
24
16
3
19
Net interest on net defined benefit obligation
9
1
10
8
1
9
4
1
5
Net defined benefit pension expense
30
(9)
21
29
4
33
20
4
24
In 2020, the past service credit relates to changes to the US scheme allowing in-service distributions to be made.
Net interest on net defined benefit pension scheme liabilities is presented within net finance costs in the income statement.
The significant valuation assumptions, determined for each major scheme in conjunction with the respective independent actuaries,
are presented below. The net defined benefit pension expense for each year is based on the assumptions and scheme valuations set at
31 December of the prior year.
AS AT 31 DECEMBER
2020
2021
2022
UK
US
UK
US
UK
US
Discount rate
1.45
%
2.45
%
1.95
%
2.80
%
4.90
%
5.35
%
Inflation
2.80
%
2.50
%
3.30
%
2.50
%
3.20
%
2.50
%
Discount rates are set by reference to high-quality corporate bond yields.
Mortality assumptions make allowance for future improvements in longevity and have been determined by reference to applicable
mortality statistics. The average life expectancy assumptions are set out below:
AS AT 31 DECEMBER 2022
Male average life
Female average
expectancy
life expectancy
UK
US
UK
US
Member currently aged 60 years
85
86
89
88
Member
currently aged 45 years
87
86
90
89
6 Pension schemes (continued)
The amount recognised in the statement of financial position in respect of defined benefit pension schemes at the start and end of
the year and the movements during the year were as follows:
2021
2022
UK
US
Total
UK
US
Total
£m
£m
£m
£m
£m
£m
Defined benefit obligation
At start of year
(4,668)
(1,062)
(5,730)
(4,629)
(992)
(5,621)
Service cost
(21)
(3)
(24)
(16)
(3)
(19)
Interest on pension scheme liabilities
(67)
(25)
(92)
(89)
(29)
(118)
Actuarial gain on financial assumptions
155
38
193
1,809
224
2,033
Actuarial loss arising from experience assumptions
(152)
(1)
(153)
(81)
(7)
(88)
Contributions by employees
(9)
–
(9)
(8)
–
(8)
Benefits paid
133
69
202
127
54
181
Exchange
translation differences
–
(8)
(8)
–
(112)
(112)
At end of year
(4,629)
(992)
(5,621)
(2,887)
(865)
(3,752)
Fair value of scheme assets
At start of year
4,076
1,077
5,153
4,390
1,007
5,397
Interest income on plan assets
59
24
83
85
28
113
Return on assets excluding amounts included in
interest income
318
(39)
279
(1,573)
(247)
(1,820)
Contributions by employer
61
6
67
69
6
75
Contributions by employees
9
–
9
8
–
8
Benefits paid
(133)
(69)
(202)
(127)
(54)
(181)
Exchange translation differences
–
8
8
–
114
114
At end of year
4,390
1,007
5,397
2,852
854
3,706
Opening net balance
(592)
15
(577)
(239)
15
(224)
Service cost
(21)
(3)
(24)
(16)
(3)
(19)
Net interest on net defined benefit obligation
(8)
(1)
(9)
(4)
(1)
(5)
Contributions by employer
61
6
67
69
6
75
Actuarial gains/(losses)
321
(2)
319
155
(30)
125
Exchange translation differences
–
–
–
–
2
2
Net pension balance
(239)
15
(224)
(35)
(11)
(46)
Impact of asset ceiling
(3)
(42)
(45)
(5)
(4)
(9)
Overall net pension balance
(242)
(27)
(269)
(40)
(15)
(55)
As at 31 December 2022, the defined benefit obligations comprised £3,569m (2021: £5,360m) in relation to funded schemes and
£183m (2021: £261m) in relation to unfunded schemes.
The weighted average duration of defined benefit scheme liabilities is 15 years in the UK (2021: 19 years) and 9 years in the US
(2021: 11 years). Net deferred tax assets of £14m (2021: £68m) are recognised in respect of the net pension balance.
A net pension asset has been recognised in relation to the UK and US funded scheme after considering the guidance in IAS 19 –
Employee Benefits and IFRIC 14. The UK funded scheme moved into a surplus position for the first time at the interim reporting date of
30 June 2022. The split between net pension obligations and net pension assets is as follows:
2021
2022
£m
£m
Net pension asset recognised
46
129
Net pension obligation
(315)
(184)
Overall net pension balance
(269)
(55)
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
6 Pension schemes (continued)
Amounts recognised in the statement of comprehensive income are set out below:
2020
2021
2022
£m
£m
£m
Gains and losses arising during the year:
Experience gains/(losses) on scheme liabilities
47
(153)
(88)
Experience gains/(losses) on scheme assets
426
279
(1,820)
Actuarial (losses)/gains on the present value of
scheme liabilities due to changes in:
– discount rates
(671)
463
2,000
– inflation
127
(290)
32
– other actuarial assumptions
(47)
20
1
(118)
319
125
Net cumulative losses at start of year
(828)
(946)
(627)
Net cumulative losses at end of year
(946)
(627)
(502)
In addition, a gain of £39m (2021: £2m) is recognised in the statement of comprehensive income in relation to the asset ceiling. As at
31 December 2022, the impact of the asset ceiling on the overall net pension obligation is £9m (2021: £45m). In 2022 there was a £4m
(2021: nil) foreign exchange gain on the asset ceiling.
The major categories and fair values of scheme assets at the end of the reporting period are as follows:
FAIR VALUE OF SCHEME ASSETS
2021
2022
UK
US
Total
UK
US
Total
£m
£m
£m
£m
£m
£m
Equities
1,595
5
1,600
272
4
276
Liability matching assets
1,704
977
2,681
899
802
1,701
Property funds and ground leases
743
–
–
743
651
–
651
Direct lending
208
–
–
208
241
–
241
Cash and cash equivalents
127
25
152
788
17
805
Other
13
–
13
1
31
32
Total
4,390
1,007
5,397
2,852
854
3,706
Included within liability matching assets of the UK scheme are asset backed securities totalling £375m (2021: £593m), other credit
assets of £199m (2021: £205m) and government bonds totalling £1,721m (2021: £1,715m) offset by interest rate swaps of £115m
(2021: £2m) and short-term sale and repurchase agreements totalling £1,284m (2021: £808m) whereby the UK scheme funds the
purchase of government bonds using existing bonds as security.
Assets and obligations associated with the schemes are sensitive to changes in the market values of assets and the market-related
assumptions used to value scheme liabilities. In particular, adverse changes to asset values, discount rates or inflation could increase
future pension costs and funding requirements.
Typically, the Group’s schemes are exposed to: investment risks, whereby actual rates of return on plan assets may be below those
rates used to determine the defined benefit obligations; and interest rate risks, whereby scheme deficits may increase if bond yields in
the UK and the US decline and are not offset by returns in liability matching and other assets. The schemes are also exposed to other
risks, such as unanticipated future increases in member longevity patterns and inflation, all potentially leading to an increase in scheme
liabilities.
Investment policies of each scheme are intended to ensure continuous payment of defined benefit pensions in the short term and long
term. Efforts are made to limit risks on marketable securities by adopting investment policies that diversify assets across geographies
and among equities, liability matching assets, property funds, cash and other assets. Asset allocations are dependent on a variety of
factors including the duration of scheme liabilities and the funded position of the plan. The primary UK scheme uses a liability driven
investment (LDI) approach for part of the portfolio, investing primarily in government bonds so that the value of scheme assets change
in the same way as the scheme’s liabilities and achieve a matching effect for the most significant plan liability assumptions of interest
rates and inflation rates.
All equities and bonds have quoted prices in active markets.
6 Pension schemes (continued)
Sensitivity analysis
The valuation of the Group’s pension scheme liabilities involves significant actuarial assumptions, being the life expectancy of the
members, inflation and the rate at which the future pension payments are discounted. Differences arising from actual experience or
future changes in assumptions may materially affect future pension charges. In particular, changes in assumptions for discount rates,
inflation and life expectancies that are reasonably possible would have the following approximate effects on the defined benefit pension
obligations:
£m
Increase/decrease of 0.5% in discount rate
225
Increase/decrease of 0.25% in the expected inflation rate
64
Increase/decrease of one year in assumed life expectancy
95
The above analysis has been calculated on the same basis used to determine the defined benefit obligation recognised in the statement
of financial position. There has been no change in the methods used to prepare the analysis compared with prior years. This sensitivity
analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that changes in the above
Interest on borrowings is expensed as incurred. The cost of issuing borrowings is generally expensed over the period of borrowing
2020
2021
2022
£m
£m
£m
Interest on short
-term bank loans, overdrafts and commercial paper
(17)
(11)
(19)
Interest on term debt
(122)
(106)
(157)
Interest on lease liabilities
(12)
(8)
(6)
Total borrowing costs
(151)
(125)
(182)
Losses on loans and derivatives not designated as hedges
(13)
(16)
(9)
Fair value losses on designated fair value hedge relationships
–
–
(9)
Net financing charge on defined benefit pension schemes and other
(11)
(9)
(5)
Finance costs
(175)
(150)
(205)
Interest on bank deposits
2
1
4
Interest income on net finance lease receivables
1
–
–
–
Fair value gains on designated fair value hedge relationships
–
–
7
–
Finance income
3
8
4
Net finance costs
(172)
(142)
(201)
Gains of £2m (2021: losses of £1m; 2020: gains of £3m) on derivatives designated as cash flow hedges were recognised in other
comprehensive income and accumulated in the hedge reserve, and may be reclassified to the income statement in future periods.
Assets of businesses that are available for immediate sale in their current condition and for which a sales process is considered
highly probable to complete are classified as assets held for sale and are carried at the lower of carrying value and fair value less
costs to sell. Fair value is based on anticipated disposal proceeds, typically derived from firm or indicative offers from potential
acquirers. Non-current assets are not amortised or depreciated following their classification as held for sale. Liabilities of businesses
held for sale are also separately classified on the statement of financial position. Fair value movements in the venture capital
2020
2021
2022
£m
£m
£m
Revaluation of investments
151
16
9
(Loss)/gain on disposal of businesses and assets held for sale
(21)
39
(18)
Net gain/(loss) on disposals and other non-operating items
130
55
(9)
The revaluation of investments relates mainly to venture fund investments, further details of which are provided in note 15.
During the year, net proceeds of £9m were received on the disposal of venture fund investments. In 2021, an investment in Palantir
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
Tax expense comprises current and deferred tax. Current and deferred tax are charged or credited in the income statement except
to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, outside the
income statement (either in other comprehensive income, directly in equity, or through a business combination), in which case the
tax appears in the same statement as the transaction that gave rise to it.
Current tax is the amount of corporate income taxes expected to be payable or recoverable based on the profit for the period as
adjusted for items that are not taxable or not deductible, and is calculated using tax rates and laws that were enacted or
substantively enacted at the date of the statement of financial position. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established where
appropriate on the basis of amounts expected to be paid to the tax authorities.
Current tax includes amounts provided in respect of uncertain tax positions when management expects that, upon examination of
the uncertainty by a tax authority in possession of all relevant knowledge, it is more likely than not that an economic outflow will
occur. Changes in facts and circumstances underlying these provisions are reassessed at the date of each statement of financial
position, and the provisions are remeasured as required to reflect current information.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying
amounts in the statement of financial position. Deferred tax is calculated using tax rates and laws that have been enacted or
substantively enacted at the end of the reporting period, and which are expected to apply when the related deferred tax asset is
realised or the deferred tax liability is settled.
Deferred tax liabilities are generally recognised for all taxable temporary differences but not recognised for taxable temporary
differences arising on investments in subsidiaries, associates and joint ventures where the reversal of the temporary difference can
be controlled and it is probable that the difference will not reverse in the foreseeable future.
Deferred tax assets are recognised to the extent it is probable that taxable profits will be available against which the deductible
temporary differences can be utilised, and are reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. The availability of
suitable taxable profit is considered probable when an entity has taxable temporary differences (i.e. deferred tax liabilities) relating to
the same taxation authority and the same taxable entity, that are expected to reverse in the same period as the deductible
temporary difference or unused tax losses or credit.
Deferred tax assets and liabilities are not recognised in respect of temporary differences that arise on initial recognition of assets
and liabilities acquired other than in a business combination. Deferred tax is not discounted.
When the acquisition of an asset qualifies to be accounted for as a business combination, deferred tax is generally required to be
recognised on the difference between the tax base and the book base of the assets and liabilities acquired and assumed. The
assets acquired often include identifiable intangible assets as well as goodwill. In many jurisdictions, the manner in which a business
combination is effected will impact the tax deductibility and therefore the deferred tax recognised in relation to such intangibles and
goodwill.
In an ‘asset acquisition’, where the buyer acquires the trade and assets of a business, there is often a tax deduction available for the
amortisation of the identifiable intangible assets and sometimes for the goodwill. In this situation, deferred tax is recognised on the
difference between the tax base and the book base of the assets.
In a ‘share acquisition’, where the buyer acquires the share capital of a legal entity that continues to own the trade and assets, tax
deductions for amortisation are usually not available. Intangibles which do not qualify for tax deductions therefore give rise to a
deferred tax liability. However, deferred tax liabilities are not recognised on temporary differences that arise from goodwill where
that is not deductible for tax purposes.
Key source of estimation uncertainty
The Group is subject to tax in numerous jurisdictions, giving rise to complex tax issues. As a multinational enterprise, our tax returns
in the countries in which we operate are subject to tax authority audits as a matter of routine. While the Group is confident that tax
returns are appropriately prepared and filed, amounts are provided in respect of uncertain tax positions that reflect the risk with
respect to tax matters under active discussion with tax authorities, or which are otherwise considered to involve uncertainty.
The valuation of provisions required in relation to uncertain tax positions involves estimation. Provisions against uncertain tax
positions are measured using one of the following methods, depending on which of the methods management expects will better
predict the amount it will pay over to the tax authority:
■
The Single Best Estimate – where there is a single outcome that is more likely than not to occur. This will happen, for example,
where the tax outcome is binary (such as whether an entity can deduct an item of expenditure) or the range of possible
outcomes is narrow or concentrated on a single value. The most likely outcome may be that no tax is expected to be payable, in
which case the provision is nil; or
■
A Probability-Weighted Expected Value – where, on the balance of probabilities, something will be paid to the tax authority but
the possible outcomes are widely dispersed with low individual probabilities (i.e. there is no single outcome more likely than not
to occur). In this case, the provision is the sum of the probability-weighted amounts in the range.
9 Taxation (continued)
In assessing provisions against uncertain tax positions, management uses in-house tax experts, professional firms and previous
experience to inform the evaluation of risk. However, it remains possible that uncertainties will ultimately be resolved at amounts
greater or smaller than the liabilities recorded.
In particular, although we report cross-border transactions undertaken between Group subsidiaries on an arm’s-length basis in tax
returns in accordance with OECD guidelines, transfer pricing relies on the exercise of judgement and it is frequently possible for
there to be a range of legitimate and reasonable views. This means that it is impossible to be certain that the returns basis will be
sustained on examination. Discussions with tax authorities relating to cross-border transactions and other matters are ongoing in a
number of our major trading jurisdictions. Although the timing and amount of final resolution of these uncertain tax positions cannot
be reliably predicted, no significant impact on the results of the Group is expected in the next year or foreseeable future.
Estimation of income taxes also includes assessments of the recoverability of deferred tax assets, consistent with the Group’s
forecasts and annual strategy plan used in the preparation of the annual report and accounts. Deferred tax assets are only
recognised to the extent that they are considered recoverable based on existing tax laws and forecasts of future taxable profits
against which the underlying tax deductions can be utilised. The recoverability of these assets is reassessed at the end of each
2020
2021
2022
£m
£m
£m
Current tax
United Kingdom
(80)
(46)
(102)
Rest of world
(184)
(376)
(432)
Total current tax charge
(264)
(422)
(534)
Deferred tax
(11)
96
53
Tax expense
(275)
(326)
(481)
Cash tax paid (net) in the year was £495m (2021: £342m; 2020: £496m), which is different to the tax expense for the year set out
above.
There are a number of reasons why the cash tax payments in a particular year will be different from the tax expense in the accounts:
■
Tax payments relating to a particular year’s profits are typically due partly in the year and partly in the following year. In 2020 there
was an acceleration of instalment payments in the UK.
■
Tax expense includes deferred tax, an accounting adjustment where an item is included in the income statement in one year but is
taxed in another year. The acquisition of intangible assets often results in deferred tax liabilities, the unwind of which does not result
in tax payments.
■
Current tax expense is the best estimate at the end of the period of cash tax expected to be paid. To the extent the final tax liability is
different, any cash tax impact will occur in a later period.
■
Some of the benefits of tax deductions related to share based payments, pensions and hedging are credited to equity or other
comprehensive income rather than to tax expense.
Set out below is a reconciliation of the difference between tax expense for the period and the theoretical expense calculated by
multiplying accounting profit by the applicable tax rate.
We believe the most meaningful applicable rate is that obtained by multiplying the accounting profits and losses of all consolidated
entities by the applicable domestic rate in each of those entities’ jurisdictions.
The net tax expense charged on profit before tax differs from the theoretical amount that would arise using the weighted average of tax
rates applicable to accounting profits and losses of the consolidated entities, as follows:
2020
2021
2022
£m
%
£m
%
£m
%
Profit before tax
1,483
1,797
2,113
Tax at average applicable rates
(331)
22.3
%
(418)
23.3
%
(498)
23.6
%
Tax effect of share of results of joint ventures
3
(0.2)
%
6
(0.3)
%
3
(0.1)
%
Income not taxable and expenses not deductible
18
(1.2)
%
24
(1.4)
%
21
(1.0)
%
Non
-deductible costs of share based remuneration
(2)
0.1
%
(2)
0.1
%
(1)
0.0
%
Non
-deductible disposal-related gains and losses
(2)
0.1
%
1
(0.1)
%
(2)
0.1
%
Deferred tax assets of the period not recognised
(19)
1.3
%
(8)
0.4
%
(17)
0.8
%
Change in recognition and measurement of
deferred tax
14
(0.9)
%
25
(1.4)
%
5
(0.2)
%
Movements in provisions and prior year items
44
(3.0)
%
46
(2.5)
%
8
(0.4)
%
Tax expense
(275)
18.5
%
(326)
18.1
%
(481)
22.8
%
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
9 Taxation (continued)
The weighted average applicable tax rate for the year was 23.6% (2021: 23.3%; 2020: 22.3%), reflecting the applicable rates in the
countries where the Group operates. The Group’s future tax charge will be sensitive to the geographic mix of profits and losses and the
tax rates and laws in force in the jurisdictions in which we operate.
In the US, the Inflation Reduction Act enacted in August 2022 introduced a corporate alternative minimum tax. Based on initial
guidance, this is not expected to have any material impact on the Group. We will continue to monitor developments.
In the UK, an increase in the corporation tax rate from 19% to 25% from April 2023 was enacted in 2021. In the Netherlands, an
increase in the corporation tax rate from 25% to 25.8% from 2022 and changes to loss recognition rules were also enacted in 2021. In
total, the deferred tax effect of changes in tax rates for the year was a tax credit of £3m (2021: £8m; 2020: £14m) in the income statement.
The effective tax rate of 22.8% (2021: 18.1%; 2020: 18.5%) was lower than the weighted average applicable rate of 23.6%. Income not
taxable and expenses not deductible include a credit of £13m (2021: £15m; 2020: £16m) relating to research and development and nil
(2021: £7m; 2020: £19m) relating to the revaluation of a put and call option arrangement. In 2021, the change in recognition and
measurement of deferred tax includes the deferred tax effect of tax rate increases in the UK and the Netherlands of £8m and changes
to loss recognition rules in the Netherlands of £15m. In 2020 and 2021, there were tax credits arising from the substantial resolution of
prior year tax matters.
The following tax has been recognised in other comprehensive income or directly in equity during the year:
2020
2021
2022
£m
£m
£m
Tax on items that will not be
reclassified to profit or loss
Tax on actuarial movements on defined benefit pension schemes
39
(48)
(43)
Tax on items that may be reclassified to profit or loss
Tax on fair value movements on cash flow
hedges
(4)
(1)
8
Net tax (charge)/credit recognised in other comprehensive income
35
(49)
(35)
Tax credit on share based remuneration recognised directly in equity
5
12
–
The £43m tax charge (2021: £48m) on actuarial movements on defined benefit pension schemes includes a £2m tax charge (2021:
£13m tax credit) reflecting the revaluation of pension related deferred tax balances to the UK corporation tax rate of 25% (previously
19%) enacted in 2021.
2021
2022
£m
£m
Current tax assets
10
15
Current tax liabilities
(192)
(249)
Total
(182)
(234)
Current tax assets and liabilities are net amounts in countries where there is a legally enforceable right to offset assets and liabilities on a
net basis.
The Group maintained provisions for uncertain tax positions. The total carrying amount of these provisions of £239m (2021: £228m) is
comprised of a number of individually immaterial amounts. It is not expected that any resolution of the matters to which the provisions
relate, or changes in assumptions relating to the provisions, will have a material impact on the Group’s financial results in the next year.
2021
2022
£m
£m
Deferred tax
assets
210
146
Deferred tax liabilities
(591)
(590)
Total
(381)
(444)
9 Taxation (continued)
Movements in deferred tax liabilities and assets (before taking into consideration the offsetting of balances within the same jurisdiction)
are summarised as follows:
Deferred tax liabilities
Deferred tax assets
Acquired
Other
Acquired
Tax losses
Other
intangible
temporary
intangible
carried
Pension
temporary
assets
differences
assets
forward
balances
differences
Total
£m
£m
£m
£m
£m
£m
£m
Deferred tax (liability)/asset at 1 January
2021
(710)
(283)
174
99
125
200
(395)
Credit
/(charge) to profit
53
86
(9)
4
(8)
(30)
96
(Charge)/credit to equity/other
comprehensive income
–
–
–
–
–
–
–
–
(48)
7
(41)
Acquisitions
(33)
–
–
6
–
–
(27)
Exchange translation differences
(4)
1
(8)
(2)
(1)
–
(14)
Deferred tax (liability)/asset at 1 January
2022
(694)
(196)
157
107
68
177
(381)
Credit/(charge) to profit
62
20
(30)
(17)
(10)
28
53
(Charge)/credit to equity/other
comprehensive income
–
(32)
–
–
(10)
3
(39)
Acquisitions
(32)
–
–
19
–
–
(13)
Exchange translation differences
(71)
(23)
5
9
1
15
(64)
Deferred tax (liability)/asset at 31
December 2022
(735)
(231)
132
118
49
223
(444)
The closing deferred tax liability balance of other temporary differences includes those relating to capitalised development costs of
£165m (2021: £161m) and pension surplus of £32m (2021: nil). The closing deferred tax asset balance of other temporary differences
includes those relating to accruals and provisions of £118m (2021: £92m), share based remuneration provisions of £41m (2021: £41m)
and intercompany interest of £14m (2021: £13m).
As a result of exemptions on dividends from subsidiaries and capital gains on disposal there are no significant taxable temporary
differences associated with investments in subsidiaries, branches, associates and interests in joint arrangements.
While a number of entities in Exhibitions suffered losses due to the impact of Covid-19 over the last few years, in no individual country
were they material. Following the return to profitability in the Exhibitions business, it is expected that the remaining trading losses will be
the majority of which are expected to have been utilised by 2031.
Deferred tax assets in respect of tax losses and other deductible temporary differences have only been recognised to the extent that it is
more likely than not that sufficient taxable profits will be available to allow the asset to be recovered.
Tax losses and temporary differences for which no deferred tax asset was recognised:
2021
2022
£m
£m
£m
£m
Gross amount
Tax effected
Gross amount
Tax effected
Trading losses and temporary differences expiring
Within 10 years
100
29
123
35
More than 10 years
–
–
1
–
Available indefinitely
187
50
208
58
Total
287
79
332
93
State and local tax losses expiring
Within 10 years
27
2
19
1
More than 10 years
46
4
89
6
Available indefinitely
–
–
–
–
Total
73
6
108
7
Capital losses expiring
Within 10
years
–
–
–
–
More than 10 years
–
–
–
–
Available indefinitely
22
5
22
5
Total
22
5
22
5
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
Earnings per share (EPS) is calculated by taking the reported net profit attributable to shareholders and dividing this by the total
weighted average number of shares.
The diluted figures are calculated after taking account of potential additional ordinary shares arising from share options and
conditional shares.
Adjusted earnings per share is calculated by dividing adjusted net profit attributable to RELX PLC shareholders by the total weighted
EARNINGS PER SHARE – FOR
THE YEAR
2020
2021
2022
ENDED 31 DECEMBER
Weighted
Weighted
Weighted
Net profit
average
Net profit
average
Net profit
average
attributable to
number
attributable to
number
attributable to
number
shareholders
of shares
EPS
shareholders
of shares
EPS
shareholders
of shares
EPS
£m
(millions)
(pence)
£m
(millions)
(pence)
£m
(millions)
(pence)
Basic earnings per share
1,224
1,926.2
63.5
p
1,471
1,928.0
76.3
p
1,634
1,918.5
85.2
p
Diluted earnings per share
1,224
1,937.8
63.2
p
1,471
1,939.4
75.8
p
1,634
1,929.3
84.7
p
ADJUSTED EARNINGS
PER SHARE
2020
2021
2022
Adjusted net
Weighted
Adjusted net
Weighted
Adjusted net
Weighted
profit
average
profit
average
profit
average
attributable to
number
Adjusted
attributable to
number
Adjusted
attributable to
number
Adjusted
shareholders
of shares
EPS
shareholders
of shares
EPS
shareholders
of shares
EPS
£m
(millions)
(pence)
£m
(millions)
(pence)
£m
(millions)
(pence)
Adjusted earnings per
share
1,543
1,926.2
80.1
p
1,689
1,928.0
87.6
p
1,961
1,918.5
102.2
p
RECONCILIATION OF ADJUSTED NET PROFIT ATTRIBUTABLE TO RELX PLC SHAREHOLDERS
2020
Pre-tax
Tax on
adjustment
adjustment
Total
£m
£m
£m
Net profit attributable to shareholders
1,224
Adjustments:
Amortisation of acquired intangible assets
360
35
395
Other deferred tax credits from intangible assets*
–
(78)
(78)
Acquisition-related items
(12)
(6)
(18)
Net interest on net defined benefit pension obligation and other
11
(2)
9
Disposals and other non-operating items
(130)
3
(127)
Exceptional costs in Exhibitions
183
(45)
138
A
d
d
j
j
u
u
s
s
t
t
e
e
d
d
n
n
e
e
t
t
p
p
r
r
o
o
f
f
i
i
t
t
a
a
t
t
t
t
r
r
i
i
b
b
u
u
t
t
a
a
b
b
l
l
e
e
t
t
o
o
s
s
h
h
a
a
r
r
e
e
h
h
o
o
l
l
d
d
e
e
r
r
s
s
1,543
2021
Pre-tax
Tax on
adjustment
adjustment
Total
£m
£m
£m
Net profit attributable to shareholders
1,471
Adjustments:
Amortisation of acquired intangible assets
294
22
316
Other deferred tax credits from intangible assets*
–
(61)
(61)
Acquisition-related items
21
(11)
10
Net interest on net defined benefit pension obligation and other
9
(2)
7
Disposals and other non-operating items
(55)
1
(54)
Adjusted net profit attributable to shareholders
1,689
2022
Pre-tax
Tax on
adjustment
adjustment
Total
£m
£m
£m
Net profit attributable to shareholders
1,634
Adjustments:
Amortisation of acquired intangible assets
296
30
326
Other deferred tax credits from intangible assets*
–
(64)
(64)
Acquisition-related items
62
(13)
49
Net interest on net defined benefit pension obligation and other
5
(1)
4
Disposals and other non-operating items
9
3
12
Adjusted net profit attributable to shareholders
1,961
*
Cash and cash equivalents comprise cash balances, call deposits and other short-term highly liquid investments and are held in the
RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS
2020
2021
2022
£m
£m
£m
Operating profit
1,525
1,884
2,323
Share of results of joint ventures
(15)
(29)
(19)
Amortisation of acquired intangible assets
376
297
294
Amortisation of internally developed intangible assets
319
295
309
Amortisation of pre
-publication costs
62
60
72
Depreciation of property, plant and equipment
60
52
47
Depreciation of right-of-use assets
88
80
63
Share based remuneration
25
45
46
Total non-cash items
930
829
831
Increase in inventories and pre
-publication costs
(80)
(73)
(103)
(Increase)/decrease in receivables
149
(103)
(251)
(Decrease)/increase in payables
(245)
(32)
280
Increase in working capital
(176)
(208)
(74)
Cash generated from operations
2,264
2,476
3,061
CASH FLOW ON ACQUISITIONS
2020
2021
2022
Note
£m
£m
£m
Purchase of
businesses
12
(864)
(235)
(373)
Deferred payments relating to prior year acquisitions
(5)
(19)
(21)
Total
(869)
(254)
(394)
RECONCILIATION OF NET DEBT
Related
Cash and
derivative
Finance
cash
financial
lease
2020
2021
equivalents
Debt
instruments
receivable
2022
£m
£m
£m
£m
£m
£m
£m
At start of year
(6,191)
(6,898)
113
(6,167)
35
2
(6,017)
(Decrease)/increase in cash and cash
equivalents
(51)
26
208
–
–
–
208
Decrease in short-term bank loans,
overdrafts and commercial paper
436
200
–
101
–
–
101
Issuan
ce of term debt
(2,342)
–
–
(397)
–
–
(397)
Repaym
ent of term debt
1,233
431
–
35
–
–
35
Repaym
ent of leases
90
76
–
79
–
(1)
78
Change in net debt resulting from cash
flows
(634)
733
208
(182)
–
(1)
25
Borrowings in acquired businesses
(3)
–
–
(3)
–
–
(3)
Remeasurement and derecognition of leases
(8)
(4)
–
(5)
–
–
(5)
Incept
ion of leases
(24)
(24)
–
(34)
–
5
(29)
Fair value and other adjustments to debt and
related derivatives
(4)
2
–
230
(245)
–
(15)
Exchan
ge translation differences
(34)
174
13
(569)
(3)
(1)
(560)
At end of year
(6,898)
(6,017)
334
(6,730)
(213)
5
(6,604)
Net debt comprises cash and cash equivalents, loan capital, lease liabilities and receivables, promissory notes, bank and other loans
and derivative financial instruments that are used to hedge certain borrowings. The Group monitors net debt as part of capital and
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
Goodwill, being the excess of the consideration over the net tangible and intangible assets acquired, represents benefits which do
not qualify for recognition as intangible assets, including: the ability of a business to generate higher returns than individual assets;
skilled workforces; and acquisition synergies that are specific to the Group. In addition, goodwill arises on the recognition of
During the year, a number of acquisitions were made. The net assets of the businesses acquired are incorporated at their fair value to
the Group. The fair values of the consideration given and of the assets and liabilities acquired are summarised below.
Fair value
Fair value
Fair value
2020
2021
2022
£m
£m
£m
Goodwill
570
131
269
Intangible assets
427
156
125
Property, plant and equipment
3
1
1
Other non
-current assets
1
–
3
Current assets
20
4
8
Current liabilities
(24)
(16)
(21)
Borrowings
(3)
–
(3)
Deferred tax
(90)
(27)
(13)
Net assets acquired
904
249
369
Consideration (after taking account of £6m net cash acquired (2020: £29m;
2021: £8m))
904
249
369
Change in consideration deferred to
future years and changes in contingent consideration
relating to prior year acquisitions
(40)
(14)
4
Net cash flow
864
235
373
During 2022, RELX completed several acquisitions for total consideration of £443m (2021: £255m), or £437m (2021: £249m) adjusted
for cash acquired. This includes the acquisition of investments in joint ventures and associates of £61m. Refer to note 15 for further
details.
The businesses acquired in 2022 contributed £19m to revenue, decreased adjusted operating profit by £5m, decreased net profit by
£24m (after charging £19m of integration costs and amortisation of acquired intangibles) and decreased net cash inflow from operating
activities for the part year under the Group’s ownership and before taking account of acquisition financing costs by £4m. Had the
businesses been acquired at the beginning of the year, on a pro forma basis the Group revenues, adjusted operating profit and net
profit attributable to RELX PLC shareholders for the year would have been £8,567m, £2,679m and £1,626m respectively, before taking
ORDINARY DIVIDENDS PAID IN THE YEAR
2020
2021
2022
£m
£m
£m
RELX PLC
880
920
983
Ordinary dividends declared and paid in the year ended 31 December 2022, in amounts per ordinary share, comprise: a 2021 final
dividend of 35.5p (2021: 33.4p; 2020: 32.1p) and a 2022 interim dividend of 15.7p (2021: 14.3p; 2020: 13.6p), giving a total of 51.2p
(2021: 47.7p; 2020: 45.7p;).
The Directors of RELX PLC have proposed a final dividend of 38.9 p (2021: 35.5 p; 2020: 33.4 p), giving a total for the financial year of
54.6p (2021: 49.8p; 2020: 47.0p). The total cost of funding the proposed final dividend is expected to be £743 m, for which no liability
has been recognised at the statement of financial position date.
The Employee Benefit Trust has currently waived the right to receive dividends on RELX PLC shares. This waiver has been applied to
On acquisition of a subsidiary or business, the purchase consideration is allocated between the net tangible and intangible assets
other than goodwill on a fair value basis, with any excess purchase consideration representing goodwill. Goodwill is carried at fair
value as at the date of acquisition less impairment charges. Acquired intangible assets are carried at their fair value as at the date of
acquisition less accumulated amortisation (including impairment). On disposal of a subsidiary or business, the attributable amount of
goodwill is included in the determination of profit or loss recognised in the income statement.
Management judgement is required to identify intangible assets acquired as part of business combinations which comprise: market-
related assets (e.g. trademarks, imprints, brands); customer-related assets (e.g. subscription bases, customer lists, customer
relationships); editorial content; software and systems (e.g. application infrastructure, product delivery platforms, in-process
research and development); and other intangible assets mainly comprising contract and rights-related assets.
The valuation of acquired intangible assets represents the estimated economic value in use, using standard valuation
methodologies, including as appropriate, discounted cash flow and comparable market transactions. Judgements involved in
estimating valuation of the intangible assets include growth in cash flows over the forecast period, the long-term growth rate
assumed thereafter and the discount rate applied to the forecast cash flows.
The selection of appropriate amortisation periods for acquired intangible assets requires management to assess the longevity of
brands and imprints, the strength and stability of customer relationships, the market positions of the acquired intangible assets and
the technological and competitive risks that they face. Certain intangible assets are in relation to acquired science and medical
publishing businesses that have been determined to have indefinite lives. The longevity of these assets is evidenced by their long-
established and well regarded journal titles, and their characteristically stable market positions. Intangible assets, other than journal
titles determined to have indefinite lives, are amortised on a straight-line basis over their estimated useful lives. The estimated useful
lives of intangible assets with finite lives are:
■
Market-related assets – 1 to 40 years
■
Customer-related assets – 1 to 20 years
■
Editorial content – 1 to 40 years
■
Software and systems – 1 to 10 years
■
Other – 3 to 20 years
Journal titles determined to have indefinite lives are not amortised and are subject to impairment review at least annually, including a
review of events and circumstances to ensure that they continue to support an indefinite useful life.
Internally developed intangible assets typically comprise software and systems development where an identifiable asset is created
that is probable to generate future economic benefits and are carried at cost less accumulated amortisation. Internally developed
intangible assets are amortised on a straight line basis over their estimated useful lives of three to 15 years. Impairment reviews are
carried out at least annually or where indicators of impairment are identified.
Goodwill and acquired intangible assets with an indefinite life are allocated to cash generating units (CGUs) and tested for
impairment at least annually or when there is an indicator that the asset may be impaired. An impairment loss is recognised in the
income statement in administration and other expenses to the extent the carrying value of goodwill exceeds its recoverable amount
and not subsequently reversed. The recoverable amount is the higher of fair value less costs to sell and value in use. The carrying
amounts of all other intangible assets are reviewed where there are indications of possible impairment.
An impairment review involves a comparison of the carrying value of the asset with estimated values in use based on the latest
management cash flow projections, approved by the Board. Key areas of judgement in estimating the values in use of businesses
are the growth in cash flows over a forecast period of up to five years, the long-term growth rate assumed thereafter and the
discount rate applied to the forecast cash flows. These calculations require the use of estimates in respect of forecast cash flows
and discount rates. Where the asset does not generate cash flows that are independent from other assets, value in use estimates
Critical judgements and key sources of estimation uncertainty
Acquired intangible assets
In 2022, the identification of intangible assets was not considered to be a critical judgement and estimates used in determination of
future cash flows and discount rate used in the valuation of intangible assets were not considered to be a key source of estimation
uncertainty which could give rise to a risk of material adjustment in the next 12 months given the size and quantum of acquisitions
completed during the year.
Development spend
Development spend encompasses investment in new products and other initiatives, ranging from the building of online delivery
platforms, to launch costs of new services, to building new infrastructure and applications. Launch costs and other ongoing
operating expenses of new products and services are expensed as incurred. The costs of building product applications, platforms
and infrastructure are capitalised as internally generated intangible assets, where the investment they represent has demonstrable
value and the technical and commercial feasibility is assured. Costs eligible for capitalisation must be incremental, clearly identified
and directly attributable to a particular project. The resulting assets are amortised over their estimated useful lives. Judgement is
required in the assessment of the potential value of a development project, the identification of costs eligible for capitalisation and
the selection of appropriate asset lives. Where indicators of impairment are identified, estimates relating to the future cash flows and
discount rates used in calculating the value in use of the intangible asset may have a material effect on the reported amounts of
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
14 Intangible assets (continued)
Total
Total
Total
internally
intangible
Software
acquired
developed
assets
Market
Customer
Editorial
and
intangible
intangible
excluding
related
related
content
technology
Other
assets
assets
goodwill
Goodwill
£m
£m
£m
£m
£m
£m
£m
£m
COST
As at 1 January 2021
7,224
2,391
1,750
614
688
2,381
7,824
3,251
11,075
Acquisitions
131
11
78
11
51
5
156
–
156
Additions
–
–
–
–
–
–
–
310
310
Disposals and other
(3)
(2)
2
(7)
–
(23)
(30)
(19)
(49)
Exchange translation differences
14
15
10
2
1
(13)
15
(31)
(16)
At 1 January 2022
7,366
2,415
1,840
620
740
2,350
7,965
3,511
11,476
Acquisitions
269
18
43
27
37
–
125
–
125
Additions
–
–
–
–
–
–
–
402
402
Disposals and other
–
(2)
(4)
–
–
(9)
(15)
(84)
(99)
Exchange translation differences
753
268
197
43
68
177
753
291
1,044
At 31 December 2022
8,388
2,699
2,076
690
845
2,518
8,828
4,120
12,948
ACCUMULATED AMORTISATION
As at 1 January 2021
–
1,323
1,054
514
414
2,338
5,643
2,007
7,650
Charge for the year*
–
109
79
39
54
16
297
295
592
Disposals and other
–
(2)
(6)
1
–
(23)
(30)
(19)
(49)
Exchange translation differences
–
8
5
2
(1)
(12)
2
(23)
(21)
At 1 January 2022
–
1,438
1,132
556
467
2,319
5,912
2,260
8,172
Charge for the year*
–
121
78
29
53
13
294
309
603
Disposals and other
–
(2)
(4)
(5)
5
(9)
(15)
(78)
(93)
Exchange translation differences
–
161
126
37
47
177
548
194
742
At 31 December 2022
–
1,718
1,332
617
572
2,500
6,739
2,685
9,424
NET BOOK AMOUNT
At 31 December 2021
7,366
977
708
64
273
31
2,053
1,251
3,304
At 31 December 2022
8,388
981
744
73
273
18
2,089
1,435
3,524
* Includes impairments of
acquired intangible assets of £1m (2021: £13m; 2020: £42m in Legal and £23m in Exhibitions) and an impairment of internally developed
intangible assets of £13m in Exhibitions (2021:nil; 2020: £29m). Refer to note 2 for further detail on the exceptional costs in Exhibitions in 2020.
The carrying amount of goodwill is shown after cumulative amortisation of £1,253m (2021: £1,144m), which was charged prior to the
adoption of IFRS, and £9m (2021: £8m) of subsequent impairment charges recorded in prior years.
The Legal business has £735m (2021: £663m) of capitalised development costs associated with platforms and infrastructure.
Included in market-related intangible assets are £125m (2021: £112m) of journal titles relating to Scientific, Technical & Medical
determined to have indefinite lives based on an assessment of their historical longevity and stable market positions.
There were no charges for impairment of goodwill or indefinite lived intangible assets in 2022 (2021: nil).
Goodwill and indefinite lived intangible assets are compiled and assessed among groups of CGUs, which represent the lowest level at
which goodwill is monitored by management. Typically, acquisitions are integrated into existing business areas, and the goodwill arising
is allocated to the groups of CGUs that are expected to benefit from the synergies of the acquisition. As the business areas have
become increasingly integrated and globalised, the current CGU allocation reflects the global leverage of assets, skills, knowledge and
technology platforms, and the monitoring of goodwill by management.
GOODWILL
2021
2022
£m
£m
Risk
3,675
4,167
Scientific, Technical &
Medical
1,683
2,015
Legal
1,406
1,572
Exhibitions
602
634
Total
7,366
8,388
14 Intangible assets (continued)
The key assumptions used for each group of CGUs are disclosed below:
KEY ASSUMPTIONS
2021
2022
Nominal
Nominal
Pre-tax
long-term
Pre-tax
long-term
discount
market
discount
market
rate
growth rate
rate
growth rate
Risk
9.8
%
3
%
11.2
%
4
%
Scientific, Technical & Medical
9.1
%
3
%
10.5
%
3
%
Legal
9.9
%
2
%
10.9
%
3
%
Exhibitions
11.7
%
3
%
13.0
%
4
%
The pre–tax discount rates used are based on the Group’s weighted average cost of capital, adjusted to reflect a risk premium specific
to each business. A post-tax discount rate was applied to post-tax cash flows. The equivalent pre-tax discount rate has been estimated
by grossing up the post-tax rate.
The Group’s weighted average cost of capital is derived from a risk free rate, a market risk premium,
a risk adjustment (beta) and a cost of debt adjustment. The discount rates and the cash flow projections are in nominal terms and
therefore, take into account the impact of inflation. The Group’s weighted average cost of capital was calculated as at 30 September 2022
when the impairment review was performed, and there were no indicators of impairment in the intervening period to 31 December 2022.
The key assumptions within the forecast growth in the cash flows over a forecast period of up to five years are revenue growth,
operating margin and cash conversion. Revenue growth and operating profit margin forecasts for each CGU are derived from past
results adjusted by management based on salient current and future considerations. Cash conversion rates for each CGU are based on
historical cash conversion rates. Nominal long-term market growth rates, which are applied after the forecast period of up to five years,
do not exceed the long-term average growth prospects for the sectors and territories in which the businesses operate.
A sensitivity analysis has been performed based on changes in key assumptions considered to be reasonably possible by management:
increases in the discount rate of 1.5%; a decrease in the compound annual growth rate for cash flow in the five-year forecast period of
2.0; a decrease in the nominal long-term market growth rates of 1%; and a combined increase in discount rate of 1% and a decrease in
the nominal long-term market growth rates of 1%. These sensitivity analyses show that no impairment charges would result from these
Investments, other than investments in joint arrangements and associates, are stated in the statement of financial position at fair
value. Changes in the fair value of investments held as part of the venture capital portfolio are reported in disposals and other non-
operating items in the income statement. All items recognised in the income statement relating to investments, other than
investments in joint arrangements and associates, are reported as disposals and other non-operating items.
Venture capital investments and equity investments represent interests in listed and unlisted securities. The fair value of listed
securities is based on quoted prices in active markets. The fair value of unlisted securities is based on management’s estimate of
fair value based on standard valuation techniques, including market comparisons and discounts of future cash flows, having regard
to maximising the use of observable inputs and adjusting for risk. Advice from valuation experts is used as appropriate.
All joint arrangements are classified as joint ventures because the Group shares joint control and has rights to the net assets of the
arrangements. Investments in joint ventures and associates are accounted for under the equity method and stated in the statement
of financial position at cost as adjusted for post-acquisition changes in the Group’s share of net assets, less any impairment in value.
2021
2022
£m
£m
Investments in joint ventures and associates
105
159
Venture capital investments
107
127
Total
212
286
The value of venture capital investments and equity investments has been determined by reference to quoted prices in active markets,
other observable market inputs or, when these are not available, by reference to inputs we believe would reflect the assumptions market
participants would use.
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
15 Investments (continued)
An analysis of changes in the carrying value of investments in joint ventures and associates is set out below:
2021
2022
£m
£m
At start of year
103
105
Share of results of joint ventures
29
19
Dividends received from joint ventures
(20)
(33)
Acquisitions
–
62
Disposals and other
(4)
1
Exchange translation differences
(3)
5
At end of year
105
159
Summarised aggregate information in respect of the Group’s share of joint ventures and associates is set out below:
RELX’s share
2021
2022
£m
£m
Revenue
78
55
Net profit for the year
29
19
Total assets
136
190
Total liabilities
(70)
(75)
Net assets
66
115
Goodwill
39
44
Total
105
159
The Group’s consolidated other comprehensive income includes no income or losses relating to joint ventures and associates in 2022
Property, plant and equipment are stated in the statement of financial position at cost less accumulated depreciation. No
depreciation is provided on freehold land. Freehold buildings and long leaseholds are depreciated over their estimated useful lives
up to a maximum of 50 years. Short leases are written off over the duration of the lease. Depreciation is provided on other assets on
a straight-line basis over their estimated useful lives as follows:
■
land and buildings: land – not depreciated; leasehold improvements – shorter of life of lease and 10 years
■
fixtures and equipment: plant – 3 to 20 years; office furniture, fixtures and fittings – 5 to 10 years; computer systems,
2021
2022
Land and
Fixtures and
Land and
Fixtures and
buildings
equipment
Total
buildings
equipment
Total
£m
£m
£m
£m
£m
£m
Cost
At start of year
206
527
733
167
516
683
Acquisitions
–
1
1
1
–
1
Capital expenditure
5
23
28
3
33
36
Disposals
(43)
(32)
(75)
(19)
(140)
(159)
Exchange translation differences
(1)
(3)
(4)
14
43
57
At end of year
167
516
683
166
452
618
Accumulated depreciation
At start of year
143
428
571
111
441
552
Charge for the year
6
46
52
6
41
47
Disposals
(37)
(31)
(68)
(12)
(142)
(154)
Exchange translation differences
(1)
(2)
(3)
10
37
47
At end of year
111
441
552
115
377
492
Net book amount
56
75
131
51
75
126
Included in land and buildings is freehold land of £10m (2021: £10m).
Financial instruments comprise investments (other than investments in joint ventures or associates), trade receivables, cash and
cash equivalents, payables and accruals, borrowings and derivative financial instruments.
Investments (other than investments in joint ventures and associates) are described in note 15. The fair value of such investments is
based on standard valuation techniques, including market comparisons and discounts of future cash flows, having regard to
maximising the use of observable inputs and adjusting for risk. (These investments are typically classified as either Level 2 or 3 in
the IFRS 13 fair value hierarchy.)
Trade receivables are carried in the statement of financial position at invoiced value less allowance for expected credit losses.
recorded initially at fair value and subsequently carried at amortised cost (other than fixed rate borrowings in designated hedging
relationships for which the carrying amount of the hedged portion of the borrowings is subsequently adjusted for the gain or loss
attributable to the hedged risk).
Derivative financial instruments are used to hedge interest rate and foreign exchange risks. Where an effective hedge is in place
against changes in the fair value of fixed rate borrowings, the hedged borrowings are adjusted for changes in fair value attributable
to the risk being hedged with a corresponding income or expense included in the income statement within finance costs. The
offsetting gains or losses from remeasuring the fair value of the related derivatives are also recognised in the income statement
within finance costs. When the related derivative expires, is sold or terminated, or no longer qualifies for hedge accounting, the
cumulative change in fair value of the hedged borrowing is amortised in the income statement over the period to maturity of the
borrowing using the effective interest method.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows are
recognised (net of tax) in other comprehensive income and accumulated in the hedge reserve. The fair value amounts relating to
foreign currency basis spreads are recorded in a separate component of equity in the cost of hedging reserve. If a hedged firm
commitment or forecasted transaction results in the recognition of a non-financial asset or liability, then, at the time that the asset or
liability is recognised, the associated gains or losses on the derivative that had previously been recognised in other comprehensive
income are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of an asset or
a liability, amounts deferred in the hedge reserve are recognised in the income statement in the same period in which the hedged
item affects net profit or loss. Any ineffective portion of hedges is recognised immediately in the income statement.
Cash flow hedge accounting is discontinued when a hedging instrument expires or is sold, terminated or exercised, or no longer
qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in other
comprehensive income is either retained in the hedge reserve until the firm commitment or forecasted transaction occurs, or, where
a hedged transaction is no longer expected to occur, is immediately credited or expensed in the income statement.
Derivative financial instruments that are not designated as hedging instruments are recorded in the statement of financial position at
fair value, with changes in fair value recognised in the income statement.
The fair values of derivative financial instruments represent the replacement costs calculated using observable market rates of
interest and exchange. The fair value of long-term borrowings is calculated by discounting expected future cash flows at observable
The main financial risks faced by the Group are liquidity risk, market risk – comprising interest rate risk and foreign exchange risk – and
credit risk. Financial instruments are used to finance the Group’s businesses and to manage interest rate and foreign exchange risks.
The Group’s businesses do not enter into speculative derivative transactions. Details of financial instruments subject to liquidity, market
and credit risks are described below.
The Group maintains a range of borrowing facilities and debt programmes to fund its requirements at competitive rates.
The balance of long-term debt, short-term debt and committed bank facilities is managed to provide security of funding, taking into
account the cash generation cycle of the business and the uncertain size and timing of acquisition spend. To accommodate the
significant free cash flow generated by the Group and to capitalise on an inexpensive source of funding, a meaningful portion of the
overall debt portfolio is typically kept short term as long as there exists acceptable liquidity in the commercial paper markets and
sufficient capacity under committed credit lines. The Group’s treasury policies ensure adequate liquidity by requiring that (a) no more
than $2bn of term debt matures in any 12-month period, (b) the sum of term debt maturing over the ensuing 12 months plus short-term
borrowings is less than the sum of available cash plus committed facilities and (c) minimum levels of borrowing with maturities over
three and five years are maintained.
The treasury policies ensure debt efficiency by (a) targeting certain levels of short-term borrowings across a given year, (b) maintaining
a weighted average maturity of the gross debt portfolio of approximately five years and (c) minimising surplus cash balances. From time
to time, based on cash flow and market conditions, the Group may redeem term debt early or repurchase outstanding debt in the
open market.
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
17 Financial instruments (continued)
Debt is issued to meet the funding requirements of various jurisdictions and in the currencies that are needed. It is recognised that debt
can act as a natural translation hedge of earnings, net assets and net cash flow in currencies other than the reporting currency. For this
reason, the majority of the Group’s net debt is denominated in US dollars and euros, reflecting the Group’s largest geographical
markets. There were no changes to the Group’s long-term approach to capital and liquidity management during the year.
The remaining contractual maturities for borrowings and derivative financial instruments are shown in the table below. The table shows
undiscounted principal and interest cash flows and includes contractual gross cash flows to be exchanged as part of cross-currency
interest rate swaps and forward foreign exchange contracts where there is a legal right of set-off.
AT 31 DECEMBER 2021
Contractual cash flow (including interest)
Carrying
Within
More than
amount
1 year
1-2 years
2-3 years
3-4 years
4-5 years
5 years
Total
£m
£m
£m
£m
£m
£m
£m
£m
Borrowings
Fixed rate borrowings
(5,828)
(156)
(741)
(1,106)
(704)
(709)
(3,126)
(6,542)
Floating rate borrowings
(131)
(131)
–
–
–
–
–
(131)
Lease liabilities
(208)
(75)
(63)
(43)
(25)
(4)
(31)
(241)
Derivative financial liabilities
Cash inflows
371
86
103
2
–
–
562
Cash outflows
(374)
(88)
(105)
(2)
–
–
(569)
Forward foreign exchange contracts
(7)
(3)
(2)
(2)
–
–
–
(7)
Interest rate derivatives
(5)
–
–
(1)
(2)
(2)
(7)
(12)
Cross
-currency interest rate swaps
(2)
(32)
(34)
(14)
(501)
–
–
(581)
Derivative financial assets
Cash inflows
1,399
312
107
26
–
–
1,844
Cash outflows
(1,367)
(294)
(102)
(25)
–
–
(1,788)
Forward foreign exchange contracts
48
32
18
5
1
–
–
56
Interest rate derivatives
19
22
10
4
–
–
–
36
Cross
-currency interest rate swaps
16
29
26
7
511
–
–
573
Total
(6,098)
(314)
(786)
(1,150)
(720)
(715)
(3,164)
(6,849)
AT 31 DECEMBER 2022
Contractual cash flow (including interest)
Carrying
Within
More than
amount
1 year
1-2 years
2-3 years
3-4 years
4-5 years
5 years
Total
£m
£m
£m
£m
£m
£m
£m
£m
Borrowings
Fixed rate borrowings
(6,446)
(847)
(1,188)
(772)
(769)
(704)
(3,212)
(7,492)
Floating rate borrowings
(102)
(102)
–
–
–
–
–
(102)
Lease liabilities
(182)
(80)
(58)
(36)
(17)
(6)
(34)
(231)
Derivative financial liabilities
Cash inflows
835
242
122
8
–
–
1,207
Cash outflows
(870)
(262)
(127)
(8)
–
–
(1,267)
Forward foreign exchange contracts
(53)
(35)
(20)
(5)
–
–
–
(60)
Interest rate derivatives
(158)
(48)
(29)
(20)
(18)
(17)
(43)
(175)
Cross
-currency interest rate swaps
(58)
(56)
(31)
(567)
–
–
–
(654)
Derivative financial assets
Cash inflows
665
199
126
24
1,014
Cash outflows
(645)
(192)
(123)
(23)
(983)
Forward foreign exchange contracts
32
20
7
3
1
–
–
31
Interest rate derivatives
–
2
–
–
–
–
–
2
Cross
-currency interest rate swaps
–
29
7
538
–
–
–
574
Total
(6,967)
(1,117)
(1,312)
(859)
(803)
(727)
(3,289)
(8,107)
The carrying amount of derivative financial liabilities comprises £215m (2021: £5m) in relation to fair value hedges, £32m (2021: £7m)
in relation to cash flow hedges and £22m (2021: £2m) not designated as hedging instruments. The carrying amount of derivative
financial assets comprises nil (2021: £35m) in relation to fair value hedges, £24m (2021: £36m) in relation to cash flow hedges and £8m
(2021: £12m) not designated as hedging instruments.
The Group has ample liquidity and access to debt capital markets, providing the ability to repay or refinance borrowings as they mature
and to fund ongoing requirements. At 31 December 2022, the Group had access to a $3.0bn committed bank facility maturing in April
2025, which was undrawn. This facility backs up short-term borrowings, and has pricing linked to three ESG performance targets. All
borrowings that mature within the next two years can be covered by the facility and by utilising available cash resources. The committed
17 Financial instruments (continued)
The Group’s primary market risks are interest rate fluctuations and exchange rate movements. Derivatives are used to manage the risks
associated with interest rate and exchange rate movements and the Group does not enter into speculative derivatives. Where the
impact of derivatives on the income statement and the statement of financial position could be significant, hedge accounting is applied
(subject to satisfying the required criteria) as described in ‘Hedge accounting’ below. Derivatives used by the Group for hedging a
particular risk are not specialised and are generally available from numerous sources. The Group is also exposed to changes in the
market value of its venture capital investments as described in note 15. The impact of market risks on net post-employment benefit
obligations and taxation is excluded from the following market risk sensitivity analysis.
Interest rate exposure management
The Group’s interest rate exposure management policy aims to minimise interest costs with an acceptable level of year-on-year
volatility. To achieve this, the Group uses fixed rate term debt and interest rate swaps to give a target mix of fixed rate and floating rate
borrowings. Interest rate derivatives are used only to hedge an underlying risk and no net market positions are held.
At 31 December 2022, including the effect of interest rate swaps, 58% of gross bank and bond borrowings were at fixed rates.
A 100 basis point reduction in short-term interest rates would result in an estimated decrease in annual net finance costs of £25m
(2021: £21m), based on the composition of financial instruments including cash, cash equivalents, bank loans and commercial paper
borrowings at 31 December 2022. A 100 basis point rise in short-term interest rates would result in an estimated increase in net finance
costs of £25m (2021: £21m).
The impact on net equity of a theoretical change in interest rates as at 31 December 2022 is restricted to the change in carrying value
of floating rate to fixed rate interest rate derivatives in a designated cash flow hedge relationship and undesignated interest rate
derivatives. A 100 basis point reduction in interest rates would result in an estimated decrease in net equity of nil (2021: nil) and a 100
basis point increase in interest rates would increase net equity by an estimated amount of nil (2021: nil). The impact of a change in
interest rates on the carrying value of fixed rate borrowings in a designated fair value hedge relationship would be offset by the change
in carrying value of the related interest rate derivative. Fixed rate borrowings not in a designated hedging relationship are carried at
amortised cost.
The Group has assessed the impact of the Interbank Offered Rates (IBOR) reform and concluded that there will be no significant impact
on the financial statements. The Group is primarily exposed to IBOR through its derivatives which swap fixed rate bond issuances to a
floating rate of interest and which are designated in fair value hedge relationships. The table on page 192 details these interest rate
derivatives which swap £1,917m of bonds with weighted average maturity of 3.3 years to a floating rate of interest referencing US dollar
LIBOR (3 months) and swap £443m of bonds with weighted average maturity of 1.2 years to a floating rate of interest referencing
Euribor (3 months). The Group has adopted the ISDA fallback protocol in respect of these derivatives and the fair value hedge
designations are expected to remain highly effective throughout the transition to alternative risk free rates.
Foreign currency exposure management
Translation exposures arise on the earnings and net assets of individual businesses whose operational currencies are other than
sterling. Some of these exposures are offset by denominating borrowings in US dollars, euros and other currencies. Currency exposures
on transactions denominated in a foreign currency are generally hedged using forward contracts. In addition, recurring transactions and
future investment exposures may be hedged, in advance of becoming contractual. The precise policy differs according to the specific
circumstances of the individual businesses. Highly predictable future cash flows may be covered for transactions expected to occur
during the next 24 months (50 months for the Scientific, Technical & Medical subscription businesses) within limits defined according to
the period before the transaction is expected to become contractual. Cover takes the form of foreign exchange forward contracts.
Further information is provided in ‘Cash flow hedges’ below.
A theoretical weakening of all currencies by 10% against sterling at 31 December 2022 would decrease the carrying value of net
assets, excluding net borrowings, by £892m (2021: £781m). This would be offset to a degree by a decrease in net borrowings of
£671m (2021: £677m). A strengthening of all currencies by 10% against sterling at 31 December 2022 would increase the carrying
value of net assets, excluding net borrowings, by £892m (2021: £781m) and increase net borrowings by £671m (2021: £677m).
A retranslation of the Group’s net profit for the year, assuming a 10% weakening of all foreign currencies against sterling but excluding
transactional exposures, would reduce net profit by £126m (2021: £112m). A 10% strengthening of all foreign currencies against
The Group seeks to manage interest rate risk and limit foreign exchange risks described above by the use of financial instruments and
as a result has a credit risk from the potential non-performance by the counterparties to these financial instruments, which are
unsecured. The amount of this credit risk is normally restricted to the amounts of any hedge gain and not the principal amount being
hedged. The Group also has a credit exposure to counterparties for the full principal amount of cash and cash equivalents. Credit risks
are controlled by monitoring the credit quality of these counterparties, principally licensed commercial banks and investment banks with
strong long-term credit ratings, and the amounts outstanding with each of them.
The Group has treasury policies in place which do not allow concentrations of risk with individual counterparties and do not allow
significant treasury exposures with counterparties which are rated lower than A-/A3 by Standard & Poor’s, Moody’s and Fitch.
At 31 December 2022, cash and cash equivalents totalled £334m (2021: £113m), of which 96% (2021: 89%) was held with banks
rated A-/A3 or better.
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
17 Financial instruments (continued)
The Group also has credit risk with respect to trade receivables due from its customers, which include national and state governments,
academic institutions and large and small enterprises including insurance companies, law firms and life science companies. The
concentration of credit risk from trade receivables is limited due to the large and broad customer base. Trade receivable exposures are
managed locally in the business areas where they arise. Where appropriate, business areas seek to minimise this exposure by taking
payment in advance and through management of credit terms. Expected credit losses are based on management’s assessment of the
risk taking into account the ageing profile, experience and circumstance. The maximum exposure to credit risk is represented by the
carrying amount of each financial asset, including derivative financial instruments, recorded in the statement of financial position.
Included within trade receivables are the following amounts which are past due, after considering loss allowance:
2020
2021
2022
£m
£m
£m
Up to one month
170
156
265
2 to 3 months
83
96
115
4 to 6 months
34
35
46
Greater than 6 months
46
18
23
Total past due
333
305
Hedge accounting
The hedging relationships that are designated under IFRS 9 – Financial Instruments are described below.
Fair value hedges
The Group has entered into interest rate swaps and cross-currency interest rate swaps to hedge the exposure to changes in the fair
value of fixed rate borrowings due to interest rate and foreign currency movements which could affect the income statement. The table
below details the designated fair value hedge relationships that were in place at 31 December 2022, swapping fixed rate term debt
issues denominated in US dollars (USD) and euros to floating rate USD and euro debt respectively for the whole or part of their term,
together with the related fixed and floating rates.
FAIR VALUE HEDGE RELATIONSHIPS
31
December
31
December
2021
2022
Principal
Principal
amount
amount
£m
£m
Fixed rate
Floating rate
$700m bond and $700m interest rate swaps maturing 2023
(517)
(579)
3.5
%
USD LIBOR+0.8%
€500m bond and €500m interest rate swaps maturing 2024
(421)
(443)
1.0
%
Euribor+0.7%
€600m bond and €600m/$669.3m cross
-currency interest rate
swaps maturing 2025
(494)
(553)
1.3
%
USD LIBOR+1.3%
$200m bond and $200m interest rate swaps maturing 2027
(148)
(165)
7.2
%
USD LIBOR+5.8%
$750m bond and $750m interest rate swaps maturing 2030
(554)
(620)
3.0
%
USD
LIBOR+1.6%
$500m bond and $500m interest rate swaps maturing 2032
–
(413)
4.75
%
USD SOFR+2.0%
(2,134)
(2,773)
The gains and losses on the borrowings and related derivatives designated as fair value hedges, which are included in the income
statement as part of finance costs, together with the total carrying values of the borrowings and related derivatives included in the
statement of financial position, for the three years ended 31 December 2020, 2021 and 2022 were as follows:
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES
AND CARRYING VALUES
Fair value
1 January
movement
Exchange
31 December
Carrying
2020
gain/(loss)
gain/(loss)
2020
values
£m
£m
£m
£m
£m
USD debt
(13)
(25)
2
(36)
(701)
Related interest rate swaps
13
25
(2)
36
36
–
–
–
–
(665)
EUR debt
(39)
(47)
3
(83)
(1,467)
Related interest rate swaps
39
47
(3)
83
83
–
–
–
–
(1,384)
Total relating to USD and EUR debt
(52)
(72)
5
(119)
(2,168)
Total related interest rate swaps
52
72
(5)
119
119
Net gain on borrowings and related
derivatives/total
carrying value
–
–
–
–
(2,049)
17 Financial instruments (continued)
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES
AND CARRYING VALUES
Fair value
1 January
movement
Exchange
31 December
Carrying
2021
gain/(loss)
gain/(loss)
2021
values
£m
£m
£m
£m
£m
USD debt
(36)
35
–
(1)
(1,221)
Related interest rate swaps
36
(28)
–
8
8
–
7
–
7
(1,213)
EUR debt
(83)
55
1
(27)
(940)
Related interest rate swaps
83
(55)
(1)
27
27
–
–
–
–
(913)
Total relating to USD and EUR debt
(119)
90
1
(28)
(2,161)
Total related interest rate
swaps
119
(83)
(1)
35
35
Net gain on borrowings and related derivatives/total
carrying value
–
7
–
7
(2,126)
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES
AND CARRYING VALUES
Fair value
1 January
movement
Exchange
31 December
Carrying
2022
gain/(loss)
gain/(loss)
2022
values
£m
£m
£m
£m
£m
USD debt
(1)
140
2
141
(1,630)
Related interest rate swaps
8
(149)
(2)
(143)
(143)
7
(9)
–
(2)
(1,773)
EUR debt
(27)
96
1
70
(924)
Related interest rate swaps
27
(96)
(1)
(70)
(70)
–
–
–
–
(994)
Total relating to USD and EUR debt
(28)
236
3
211
(2,554)
Total related interest rate swaps
35
(245)
(3)
(213)
(213)
Net gain/(loss) on borrowings and related
derivatives/total carrying value
7
(9)
–
(2)
(2,767)
All fair value hedges were highly effective throughout the three years ended 31 December 2022.
Gross borrowings as at 31 December 2022 included £10m (2021: £12m) in relation to fair value adjustments to borrowings previously
designated in a fair value hedge relationship which were de-designated in 2008. The related derivatives were closed out on de-
designation with a cash inflow of £62m. £3m (2021: £3m) of these fair value adjustments were amortised in the year as a reduction to
finance costs.
Cash flow hedges
As part of the Group’s interest rate exposure management, it has entered into certain cross-currency interest rate derivatives, individual
components of which have been accounted for as cash flow hedges (with the remaining components accounted for as fair value
hedges, as described above). These comprised interest rate derivatives which swapped a fixed rate €600m bond, issued in May 2015
and maturing in May 2025, to floating rate USD debt for the whole of its term. The component relating to the swap of the euro credit
margin to USD is being accounted for as a cash flow hedge under IFRS 9, with the amount associated with foreign currency basis
spreads recorded in the cost of hedging reserve.
As part of the Group’s foreign currency exposure management, it has entered into forward foreign exchange contracts which fix the
exchange rate on a portion of future foreign currency subscription revenues forecast by the businesses for up to 50 months. These have
been accounted for as cash flow hedges under IFRS 9 of the forecast foreign currency revenues, with gains and losses on the forward
contracts deferred in the hedge reserve until the related revenue is recognised, at which time the accumulated gains and losses are
reclassified to the income statement.
Movements in the hedge reserve and the cost of hedging reserve in 2021 and 2022, including gains and losses on cash flow hedging
instruments, were as follows:
Cost of
Foreign
Interest rate
hedging
currency
hedge reserve
reserve
hedge reserve
Total
£m
£m
£m
£m
Hedge reserve at 31 December 2020: gains/(losses) deferred
4
(8)
27
23
(Losses)/gains arising in 2021
(3)
2
11
10
Amounts recognised in income statement
–
–
(9)
(9)
Hedge reserve at 31 December 2021: gains/(losses) deferred
1
(6)
29
24
(Losses)/gains arising in 2022
(3)
5
(20)
(18)
Amounts recognised in income statement
1
–
(18)
(17)
Exchange translation differences
(1)
–
1
–
Hedge reserve at 31 December 2022: losses deferred
(2)
(1)
(8)
(11)
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
17 Financial instruments (continued)
All cash flow hedges were highly effective throughout the two years ended 31 December 2022.
A deferred tax credit of £3m (2021: debit of £5m) in respect of the above gains and losses at 31 December 2022 was also deferred in
the hedge reserve.
Of the amounts recognised in the income statement in the year, gains of £18m (2021: £9m) were recognised in revenue, and losses of
£1m (2021: nil) were recognised in finance costs. A tax debit of £4m (2021: £2m) was recognised in relation to these items.
The deferred gains and losses on foreign currency cash flow hedges at 31 December 2022 are currently expected to be recognised in
the income statement in future years as shown in the table below, together with the principal amount of hedges relating to each year
and their total carrying values included within derivative assets and liabilities in the statement of financial position:
Foreign
Principal
currency
amount of
Carrying
hedge reserve
hedges
values
£m
£m
£m
2023
4
673
(11)
2024
(10)
459
(10)
2025
(2)
250
(2)
2026
–
36
–
Total
(8)
1,418
(23)
The cash flows for these hedges are expected to occur in line with the recognition of the gains and losses in the income statement, or in
Inventories and pre-publication costs are stated at the lower of cost, including appropriate attributable overhead, and estimated net
realisable value. Such costs typically comprise direct internal labour costs and externally commissioned editorial and other fees.
Pre-publication costs, representing costs incurred in the origination of content prior to publication, are expensed systematically
reflecting the expected sales profile over the estimated economic lives of the related products, generally up to five years.
2021
2022
£m
£m
Raw materials
2
3
Pre
-publication costs
218
264
Finished goods
33
42
Total
253
309
During the year, pre-publication costs of £94m (2021: £73m) were capitalised. The related amortisation charge was £72m (2021:
2021
2022
£m
£m
Trade receivables
1,738
2,193
Loss allowance
(106)
(118)
1,632
2,075
Prepayments and accrued income
316
310
Current tax receivable
10
15
Net finance lease receivable
2
5
Total
1,960
2,405
Trade receivables are predominantly non-interest bearing and their carrying amounts approximate to their fair value.
19 Trade and other receivables (continued)
The movements in the loss allowance during the year were as follows:
2021
2022
£m
£m
At
start of year
99
106
Charge for the year
17
11
Trade receivables written off
(8)
(7)
Exchange translation differences
(2)
8
At end of year
106
Deferred income is recognised when either a customer has paid consideration, or RELX has an unconditional right to an amount of
consideration, in advance of the goods and services being delivered.
2021
2022
£m
£m
Trade payables
109
129
Accruals
718
844
Social security and other taxes
141
159
Other payables
351
517
Deferred income
1,956
2,368
Total
3,275
4,017
Trade and other payables are predominantly non-interest bearing and their carrying amounts approximate to their fair value.
Borrowings are recorded initially at fair value and subsequently carried at amortised cost, other than fixed rate borrowings in
designated hedging relationships for which the carrying amount of the hedged portion of the borrowings is subsequently adjusted
for the gain or loss attributable to the hedged risk. When the related derivative in such a hedging relationship expires, is sold or
terminated, or no longer qualifies for hedge accounting, the cumulative change in fair value of the hedged borrowing is amortised in
2021
2022
Falling
due
Falling due
Falling
due
Falling
due in
within
in
more than
within
more than
1 year
1 year
Total
1 year
1 year
Total
£m
£m
£m
£m
£m
£m
Financial liabilities measured at amortised cost:
Short-term bank loans, overdrafts and commercial paper
131
–
131
102
–
102
Term debt
32
3,410
3,442
–
3,641
3,641
Lease liabilities
69
139
208
67
115
182
Term debt in fair value hedging relationships
–
2,161
2,161
576
1,978
2,554
Term debt previously in fair value hedging relationships
–
–
225
225
125
126
251
Total
232
5,935
6,167
870
5,860
6,730
The total fair value of financial liabilities measured at amortised cost (excluding lease liabilities) is £3,451m (2021: £3,746m). The total
fair value of term debt in fair value hedging relationships is £2,688m (2021: £2,268m). The total fair value of term debt previously in fair
value hedging relationships is £257m (2021: £255m).
RELX PLC has given guarantees in respect of certain long-term and short-term borrowings issued by subsidiaries. Included within term
debt above are debt securities issued by RELX Capital Inc., a 100% indirectly owned finance subsidiary of RELX PLC, which have been
registered with the US Securities and Exchange Commission. RELX PLC has fully and unconditionally guaranteed these securities,
which are not guaranteed by any other subsidiary of RELX PLC.
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
21 Debt (continued)
Analysis by year of repayment
2021
2022
Short-term
Short-term
bank
loans,
bank loans,
overdrafts
overdrafts
and
and
commercial
Lease
commercial
Lease
paper
Term debt
liabilities
Total
paper
Term debt
liabilities
Total
£m
£m
£m
£m
£m
£m
£m
£m
Within 1 year
131
32
69
232
102
701
67
870
Within 1 to 2 years
–
641
40
681
–
1,045
24
1,069
Within 2 to 3 years
–
1,012
37
1,049
–
623
25
648
Within 3 to 4 years
–
628
29
657
–
660
24
684
Within 4 to 5 years
–
626
17
643
–
595
17
612
After 5 years
–
2,889
16
2,905
–
2,822
25
2,847
After 1 year
–
5,796
139
5,935
–
5,745
115
5,860
Total
131
5,828
208
6,167
102
6,446
182
6,730
Short-term bank loans, overdrafts and commercial paper were backed up at 31 December 2022 by a $3.0bn (£2.5bn) committed bank
facility maturing in 2025. The committed bank facility was undrawn.
Analysis by currency
2021
2022
Short-term
Short-term
bank
loans,
bank loans,
overdrafts
overdrafts
and
and
commercial
Lease
commercial
Lease
paper
Term debt
liabilities
Total
paper
Term
debt
liabilities
Total
£m
£m
£m
£m
£m
£m
£m
£m
US dollar
68
2,691
79
2,838
2
3,160
65
3,227
Pound sterling
–
–
–
–
51
51
–
–
40
40
Euro
15
3,137
47
3,199
–
3,286
57
3,343
Other currencies
48
–
–
31
79
100
–
20
120
Total
131
5,828
208
6,167
102
6,446
182
6,730
Included in the US dollar amounts for term debt above is £498m (2021: £515m) of debt denominated in euros (€600m) (2021: €600m)
that was swapped into US dollars on issuance and against which there are related derivative financial instruments, which, as at 31
All leases where RELX is the lessee (with the exception of short-term and low-value leases) are recognised in the statement of
financial position. A lease liability is recognised based on the present value of the future lease payments, and a corresponding right-
of-use asset is recognised. The right-of-use asset is depreciated over the shorter of the lease term or the useful life of the asset.
Lease payments are apportioned between finance charges and a reduction of the lease liability.
Low-value items and short-term leases with a term of 12 months or less are not required to be recognised on the balance sheet and
payments made in relation to these leases are recognised on a straight-line basis in the income statement.
The leases held by the Group can be split into two categories: property and non-property. The Group leases various properties,
principally offices, which have varying terms and renewal rights that are typical to the territory in which they are located.
22 Lease arrangements (continued)
Right-of-use assets
2021
2022
£m
£m
At
start of year
216
161
Additions
25
34
Acquisitions
–
–
3
Remeasurement
9
8
Disposals
(5)
(8)
Depreciation
(66)
(63)
Impairment
(14)
–
Exchange translation differences
(4)
10
At end of year
161
145
Lease liability
2021
2022
£m
£m
Current
Property
(67)
(65)
Non
-property
(2)
(2)
Non-current
Property
(136)
(113)
Non
-property
(3)
(2)
Total
(208)
(182)
Interest expense on the lease liabilities recognised within finance costs was £6m (2021: £8m; 2020: £12m).
As at 31 December 2022, RELX was committed to leases with future cash outflows totalling £32m (31 December 2021: £5m) which
had not yet commenced and as such are not accounted for as a liability as at 31 December 2022. A liability and corresponding right-of-
use asset will be recognised for these leases at the lease commencement date.
RELX subleases vacant space available within its leased properties. IFRS 16 specifies conditions whereby a sublease is classed as a
finance lease for the sub-lessor. The finance lease receivable balance held is as follows:
2021
2022
£m
£m
Net finance lease receivable
2
5
Short-term and low-value lease expenses have been included in note 3.
Shares of RELX PLC that are repurchased and not cancelled are classified as shares held in treasury. The consideration paid,
including directly attributable costs, is recognised as a deduction from equity. Shares of RELX PLC that are purchased by the
RELX PLC
CALLED UP SHARE CAPITAL
– ISSUED AND FULLY PAID
2021
2022
No. of shares
£m
No. of shares
£m
At start of year
1,982,299,312
286
1,984,961,632
286
Issue of ordinary shares
2,662,320
–
1,918,456
–
Cancellation of ordinary shares
–
–
(52,000,000)
(7)
At end of year
1,984,961,632
286
1,934,880,088
279
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
23 Share capital and shares held in treasury (continued)
NUMBER OF ORDINARY SHARES
Year ended 31 December
2021
2022
Shares in
Shares in
issue net of
issue net of
treasury
Shares in
Treasury
treasury
shares*
issue
shares
shares*
(millions)
(millions)
(millions)
(millions)
RELX PLC
At start of year
1,926.0
1,985.0
(55.6)
1,929.4
Issue of ordinary shares
2.7
1.9
–
1.9
Repurchase of ordinary shares
–
–
(21.7)
(21.7)
Net release/(purchase) of shares by the Employee Benefit Trust
0.7
–
(0.1)
(0.1)
Cancellation of ordinary shares
–
(52.0)
52.0
–
At end of year
1,929.4
1,934.9
(25.4)
1,909.5
*
At 31 December 2022 the total shares in issue net of treasury shares is 1,909,526,620 (2021: 1,929,425,389).
During the year, RELX PLC repurchased 21.7m (2021: nil; 2020: 7.8m) RELX PLC ordinary shares for an average price of 2,303p;
repurchased shares are held in treasury. In 2022 the total consideration for the RELX PLC repurchases was £500m (2021: nil;
2020: £150m).
The Employee Benefit Trust purchases RELX PLC shares which, at the trustees’ discretion, can be used in respect of the exercise of
share options and to meet commitments under conditional share awards. During the year, the Employee Benefit Trust purchased 2.2m
shares for a total cost of £50m (2021: £1m; 2020: £37m). At 31 December 2022, shares held by the Employee Benefit Trust were
£101m (2021: £86m; 2020: £97m) at cost.
The issue of ordinary shares in the year relates to the exercise of share options.
All of the RELX PLC ordinary shares rank equally with respect to voting rights and rights to receive dividends, except for shares held in
treasury, which do not attract voting or dividend rights. There are no restrictions on the rights to transfer shares.
At 31 December 2022, RELX PLC shares held in treasury related to 5,553,401 (2021: 5,448,564; 2020: 6,192,953) RELX PLC ordinary
shares held by the Employee Benefit Trust; and 19,800,067 (2021: 50,087,679; 2020: 50,087,679) RELX PLC ordinary shares held by
the parent company. During 2022, 52m (2021: nil; 2020: nil) RELX PLC ordinary shares held in treasury were cancelled.
On 9 December 2022, RELX PLC announced a non-discretionary programme to repurchase further ordinary shares up to the value of
£150m. At 31 December 2022, an accrual of £150m was recognised in respect of this non-discretionary commitment. A further 6.3m
Translation
Hedge
Other
Total
reserve
reserve
reserves
Total
2021
2022
2022
2022
2022
£m
£m
£m
£m
£m
At start of year
1,241
250
19
2,062
2,331
Profit attributable to shareholders
1,471
–
–
1,634
1,634
Dividends paid
(920)
–
–
(983)
(983)
Actuarial gains on defined benefit pension schemes
321
–
–
164
164
Fair value movements on cash flow hedges
10
–
(18)
–
(18)
Transfer to profit from cash flow hedge reserve
(9)
–
(17)
–
(17)
Tax recognised in other comprehensive income
(49)
–
8
(43)
(35)
Exchange differences on translation of foreign operations
223
427
–
–
427
Cancellation of shares
–
–
–
(1,120)
(1,120)
Increase in share based remuneration reserve (net of tax)
55
–
–
47
47
Settlement of share awards
(12)
–
–
(35)
(35)
Disposal of non
-
controlling interests
–
–
–
(1)
(1)
At end of year
2,331
677
(8)
1,725
2,394
Other reserves principally comprise retained earnings and the share based remuneration reserve. Movements in reserves during the
period includes the effects of profits generated during the period, share repurchases, changes in exchange rates and other items.
Dividends paid during 2022 were £983m (2021: £920m). Refer to note 13 for further details.
52m (2021: nil) RELX PLC ordinary shares held in treasury were cancelled resulting in a transfer of £1.1bn between other reserves and
shares held in treasury.
The increase of £427m in the translation reserve is due to the net effect of changes in exchange rates during the period which
Transactions with related parties were made on normal market terms of trading.
Transactions between RELX PLC and subsidiaries of the Group have been eliminated within the consolidated financial statements.
Transactions with joint ventures comprise sales of goods and services of £0.4m (2020: nil; 2021: nil) and the rendering and receiving of
goods and services of nil (2021: £0.2m; 2020: £0.1m). As at 31 December 2022, amounts owed by joint ventures were £4.2m (2021:
£2.4m; 2020: £0.8m) and amounts due to joint ventures were £1.2m (2021: £1.4m; 2020: £0.4m). See note 6 for details of the Group’s
participation in defined benefit pension schemes.
Key management personnel are also related parties as defined by IAS 24 – Related Party Disclosures and comprise the Executive and
Non-Executive Directors of RELX PLC. Key management personnel remuneration is set out below. For reporting purposes, salary,
benefits and annual incentive payments are considered short-term employee benefits.
KEY MANAGEMENT PERSONNEL REMUNERATION
2020
2021
2022
£m
£m
£m
Salaries, other short-term employee benefits and non-executive fees
6
7
7
Post
-employment benefits
1
1
–
Share based remuneration*
1
8
7
Total
8
16
14
EXECUTIVE DIRECTORS
Annual
Share based
Salary
Benefits
incentive
remuneration*
Pension*
Total
£’000
£’000
£’000
£’000
£’000
£’000
Total Executive Directors
2020
2,034
99
2,623
595
687
6,038
2021
2,085
97
3,604
7,953
774
14,513
2022
2,137
97
3,251
6,857
268
12,610
*
The figures for share based awards are calculated in accordance with the methodology set out in the UK Regulations. The figure for performance-related share
based awards includes share price appreciation since the date the award was granted. Please see page 124 for further details. Pension is calculated in
accordance with the methodology set out in the UK Regulations.
NON-EXECUTIVE DIRECTORS
2020
2021
2022
£’000
£’000
£’000
Fees and benefits
1,558
1,598
1,566
The remuneration of non-executive directors comprises fees for services, and benefits primarily relating to tax filing support in respect
of filings resulting from their directorships. No deemed benefits were provided during 2022 to former directors (2021: nil; 2020: nil).
No loans, advances or guarantees have been provided on behalf of any director. The aggregate gains made by Executive Directors on
the exercise of options during 2022 were nil (2021: nil; 2020: nil).
The following exchange rates have been applied in preparing the consolidated financial statements:
Statement of
Income statement
financial position
2020
2021
2022
2021
2022
Euro to sterling
1.12
1.16
1.17
1.19
1.13
US dollar to sterling
1.28
1.38
1.24
1.35
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
28 Related undertakings
A full list of related undertakings (comprising subsidiaries, joint ventures, associates and other significant holdings) is set out below.
All are 100% owned directly or indirectly by the Group except where percentage ownership denoted in (x%).
Share
Reg
Company name
class
office
Australia
LNRS Data Services (Australia) Pty Ltd
Ordinary
AUS1
Reed Exhibitions Australia Pty Ltd
Ordinary
AUS2
Reed International Books Australia Pty Ltd
Ordinary
AUS2
RELX Australia Pty Ltd
Ordinary
AUS2
ThreatMetrix Pty Ltd
Ordinary
AUS2
Austria
LexisNexis Verlag ARD ORAC GmbH & Co KG
Partnership Interest
AUT2
ORAC GmbH
Ordinary
AUT2
RELX Austria GmbH
Ordinary
AUT3
RX CEE GmbH
Ordinary
AUT1
RX Salzburg GmbH
Ordinary
AUT3
RX Wien GmbH
Ordinary
AUT1
Standout GmbH
Ordinary
AUT4
Belgium
LexisNexis BV
Ordinary
BEL1
Brazil
Elsevier Editora Ltda
Quotas
BRA1
Fircosoft Brasil Consultoria e Servicos de Informatica Ltda
Quotas
BRA2
Gestora de Inteligência de Crédito S.A. (20%)
Common, Preferred
BRA8
LexisNexis Informações e Sistemas Empresariais Ltda
Quotas
BRA6
LexisNexis Serviços de Análise de Risco Ltda
Quotas
BRA7
MLex Brasil Midia Mercadologica Ltda
Quotas
BRA4
Reed Exhibitions Alcântara Machado Ltda
Quotas
BRA3
SST Software do Brasil Ltda
Quotas
BRA5
Canada
Elsevier Canada Inc.
Common
CAN2
LexisNexis Canada Inc.
Class B
CAN1
RELX Canada Ltd
Common
CAN1
China
Bakery China Exhibitions Co., Ltd (25%)
Ordinary
CHN1
Beijing Medtime Elsevier Education Technology Co., Ltd
(49%)
Common
CHN2
C
-One Energy (Guangzhou) Co., Ltd
Ordinary
CHN5
ICIS Consulting (Beijing) Co., Ltd
(Liquidation in progress)
Ordinary
CHN18
KeAi Communications Co., Ltd (49%)
Ordinary
CHN15
LexisNexis Information Technology Co. Ltd
Ordinary
CHN19
LexisNexis Risk Solutions (Shanghai) Information
Technologies Co.
Ltd
Common
CHN7
LNRS Data Services (Shanghai) Co Ltd
Ordinary
CHN13
Reed Elsevier Information Technology (Beijing) Co., Ltd
Common
CHN3
Reed Exhibitions (China) Co., Ltd
Ordinary
CHN4
Reed Exhibitions Hengjin Co., Ltd (51%)
Ordinary
CHN12
Reed Exhibitions (Shanghai) Co., Ltd
Ordinary
CHN10
Reed Huabai Exhibitions (Beijing) Co., Ltd (51%)
Ordinary
CHN4
Reed Huabo Exhibitions (Shenzhen) Co., Ltd (65%)
Ordinary
CHN16
Reed Huaqun Exhibitions Co., Ltd (52%)
Ordinary
CHN4
Reed Exhibitions Kuozhan (Shanghai) Co., Ltd (60%)
Ordinary
CHN8
Reed Sinopharm Exhibitions Co., Ltd (50%)
Ordinary
CHN4
RELX (China) Investment Co., Ltd
Ordinary
CHN9
RX (Shenzhen) Co., Ltd
Ordinary
CHN6
Shanghai Datong Medical Information Technology Co., Ltd
Ordinary
CHN17
Shanghai SinoReal Exhibitions Co., Ltd (27.5%)
Ordinary
CHN11
Z&R Exhibitions Co., Ltd (27.5%)
Ordinary
CHN14
Colombia
LexisNexis Risk Solutions SAS
Ordinary
COL1
Denmark
Elsevier A/S
Ordinary
DNK1
Egypt
Elsevier Egypt LLC
Ordinary
EGY1
Share
Reg
Company name
class
office
France
Closd SAS
Ordinary
FRA9
Elsevier Holding France SAS
Ordinary
FRA1
Elsevier Masson SAS
Ordinary
FRA1
Evoluprint SAS
Ordinary
FRA2
Fircosoft SAS
Ordinary
FRA8
GIE EDI Data (83%)
Ordinary
FRA3
GIE Juris Data
Ordinary
FRA3
LexisNexis Business Information Solutions SA
Ordinary
FRA3
LexisNexis Business Information Solutions Holding SA
Ordinary
FRA5
LexisNexis International Development & Services SAS
Ordinary
FRA3
LexisNexis SA
Ordinary
FRA3
Reed Exhibitions ISG SARL
Ordinary
FRA6
RELX France SA
Ordinary
FRA6
RELX France Services SAS
Ordinary
FRA8
RX France SAS
Ordinary
FRA4
SAFI SA (50%)
Ordinary
FRA7
Germany
BehavioSec GmbH
Ordinary
DEU7
Elsevier GmbH
Ordinary
DEU3
Elsevier Information Systems GmbH
Ordinary
DEU2
IPlytics GmbH
Ordinary
DEU8
LexisNexis GmbH
Ordinary
DEU4
PatentSight GmbH
Ordinary
DEU6
RELX Deutschland GmbH
Ordinary
DEU1
RX Deutschland GmbH
Ordinary
DEU1
Tschach Solutions GmbH
Ordinary
DEU5
Greece
Mack Brooks Hellas SA (87.36%)
(Liquidation in progress)
Ordinary
GRE1
Hong Kong
Ascend China Holding Ltd
Ordinary
HNK4
JC Exhibition and Promotion Ltd (65%)
Ordinary
HNK4
JYLN Sager Ltd
Ordinary
HNK2
LNRS Data Services (China) Ltd
Ordinary
HNK1
Reed Exhibitions Ltd
Ordinary
HNK4
RELX (Greater China) Ltd
Ordinary
HNK3
India
FircoSoft India Private Ltd
Ordinary
IND2
Next Events Private Ltd
Ordinary
IND1
Parity Computing India Private Ltd
Ordinary
IND3
Reed Elsevier Publishing (India) Private Ltd
Ordinary
IND1
Reed Manch Exhibitions Private Ltd
Ordinary
IND1
Reed Triune Exhibitions Private Ltd (72%)
Ordinary
IND4
RELX India Private Ltd
Ordinary
IND1
Indonesia
PT Reed Exhibitions Indonesia (70%)
Class A Preferred
IDN1
Class B Common
PT RELX Information Analytics Indonesia
Ordinary
IDN2
Irish Republic
Elsevier Services Ireland Ltd
Ordinary
IRL2
LexisNexis Risk Solutions (Europe) Ltd
Ordinary
IRL1
LexisNexis Risk Solutions (Ireland) Ltd
Ordinary
IRL1
3D4Medical Ltd
Ordinary
IRL3
Israel
LexisNexis Israel Ltd
Ordinary
ISR1
Italy
Elsevier SRL
Registered Capital
ITA1
ICIS Italia SRL
Ordinary
ITA2
RX Italy SRL
Ordinary
ITA1
28 Related undertakings (continued)
Share
Reg
Company name
class
office
Japan
Ascend Japan KK
Ordinary
JPN1
Elsevier Japan KK
Ordinary
JPN2
LexisNexis Japan KK
Ordinary
JPN2
PatentSight Japan Inc.
Common
JPN2
RX Japan KK
Ordinary
JPN3
Korea (Republic of)
Elsevier Korea LLC
Ordinary
KOR1
LexisNexis Legal and Professional Service Korea Ltd
Ordinary
KOR2
Reed Exhibitions Korea Ltd
Ordinary
KOR3
Reed Exporum Ltd (60%)
Ordinary
KOR4
Reed K. Fairs Ltd (70%)
Ordinary
KOR3
Macau
Reed Exhibitions Macau Ltd
Ordinary
MAC1
Malaysia
LexisNexis Malaysia Sdn Bhd
Ordinary
MYS1
Mexico
Masson-Doyma Mexico, S.A.
Ordinary
MEX1
Reed Exhibitions Mexico S.A. de C.V.
Fixed
MEX2
Netherlands
AGRM Solutions C.V.
Partnership Interest
NLD1
Caselex B.V.
Ordinary
NLD1
Elsevier B.V.
Ordinary
NLD1
ICIS Benchmarking Europe B.V.
Ordinary
NLD1
LexisNexis Business Information Solutions B.V.
Ordinary
NLD1
LNRS Data Services B.V.
Ordinary
NLD1
Misset Uitgeverij B.V. (49%)
Ordinary
NLD2
RELX Employment Company B.V.
Ordinary
NLD1
RELX Finance B.V.
Ordinary
NLD1
RELX Holdings B.V.
Ordinary
NLD1
RELX Nederland B.V.
Ordinary
NLD1
RELX Overseas B.V.
Ordinary RE
NLD1
New Zealand
LexisNexis NZ Ltd
Ordinary
NZL1
Philippines
Reed Elsevier Shared Services (Philippines) Inc.
Common
PHL1
Poland
AI Digital Contracts Sp. z.o.o. (75%)
Ordinary
POL1
Elsevier Sp. z.o.o.
Ordinary
POL2
Russia
Elsevier LLC
(Liquidation in progress)
Participation Shares
RUS2
LexisNexis LLC
(Liquidation in progress)
Participation Shares
RUS3
Real Estate Events Direct LLC
(80%)
(Liquidation in
progress)
Participation Shares
RUS1
RELX LLC
(Liquidation in progress)
Participation Shares
RUS1
Singapore
Elsevier (Singapore) Pte Ltd
Ordinary
SGP1
Lexis-Nexis Philippines Pte Ltd
Ordinary-B, Preference
SGP2
LNRS Data Services Pte Ltd
Ordinary
SGP3
RE (HAPL) Pte Ltd
Ordinary
SGP1
RELX (Singapore) Pte Ltd
Ordinary
SGP2
South Africa
Globalrange SA (Pty) Ltd
Ordinary
ZAF1
LexisNexis (Pty) Ltd (78%)
A-Ordinary
ZAF2
LexisNexis Risk Management (Pty) Ltd (78%)
Ordinary
ZAF2
LexisNexis South Africa Shared Services (Pty) Ltd
Ordinary
ZAF2
Share
Reg
Company name
class
office
Reed Events Management (Pty) Ltd (90%)
Ordinary
ZAF2
Reed Exhibitions (Pty) Ltd (90%)
Ordinary
ZAF2
Reed Exhibitions Group (Pty) Ltd (90%)
Ordinary
ZAF2
Reed Venue Management (Pty) Ltd
(90%)
Ordinary
ZAF2
RELX (Pty) Ltd
Ordinary
ZAF2
Spain
Elsevier Espana SL
Participations
ESP1
Sweden
Behaviometrics AB
Ordinary
SWE1
Switzerland
Fircosoft Schweiz GmbH
(Liquidation in progress)
Ordinary
CHE1
Taiwan
Elsevier Taiwan LLC
Ordinary
TWN1
Thailand
Reed Tradex Company Ltd (49%)
Ordinary, Preference
THA1
RELX Holding (Thailand) Co., Ltd
Ordinary
THA2
RELX Information Analytics (Thailand) Co., Ltd
Ordinary
THA3
Turkey
Elsevier STM Bilgi Hizmetleri Limited Şirketi
Ordinary
TUR1
Mack Brooks Fuarcilik A.S.
Registered Capital
TUR3
Reed Tüyap Fuarcilik A.S. (50%)
A Ordinary, B Ordinary
TUR2
United Arab Emirates
Reed Exhibitions FZ-LLC
Ordinary
UAE1
RELX Middle East
FZ-LLC
Ordinary
UAE2
United Kingdom
3rd Street Group Ltd
Ordinary
GBR3
Butterworths Ltd
Ordinary
GBR4
Cordery Compliance Ltd (71%)
Ordinary
GBR4
Cordery Ltd (71%)
Ordinary
GBR4
Crediva Ltd
Ordinary
GBR5
Digital Foundry Network Ltd
(50%)
Ordinary
GBR3
E & P Events LLP (50%)
Membership Interest
GBR3
Elsevier Ltd
Ordinary
GBR6
Emailage Ltd
Ordinary
GBR5
Gamer Network Ltd
Ordinary
GBR3
Gapsquare Ltd
A Ordinary, B Ordinary
GBR2
Hookshot Media Ltd (23.5%)
Ordinary
GBR8
Interfolio UK Ltd
Ordinary
GBR10
LexisNexis Risk Solutions UK Ltd
Ordinary
GBR5
LNRS Data Services Holdings Ltd
Ordinary
GBR1
LNRS Data Services Ltd
Ordinary
GBR2
Mack
-Brooks Exhibitions Ltd
Ordinary
GBR3
MCM Expo Ltd
Ordinary
GBR3
Mendeley Ltd
Ordinary
GBR6
MLex Ltd
Ordinary
GBR4
Offshore Europe (Management) Ltd
Ordinary
GBR3
Offshore Europe Partnership (50%)
Partnership Interest
GBR3
Out There Gaming Ltd (70%)
Ordinary
GBR3
Oxford Spires Management Co; Ltd (55%)
Ordinary
GBR7
RE (HPL) Ltd
Ordinary
GBR1
RE (RCB) Ltd
Ordinary
GBR1
RE Secretaries Ltd
Ordinary
GBR1
RE (SOE) Ltd
Ordinary
GBR3
Reed Events Ltd
Ordinary
GBR3
Reed Exhibitions Ltd
Ordinary
GBR3
Reed Nominees Ltd
Ordinary
GBR1
RELX Finance Ltd
Ordinary
GBR1
RELX Group plc
Ordinary
GBR1
RELX (Holdings) Ltd
Ordinary
GBR1
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
28 Related undertakings (continued)
Share
Reg
Company name
class
office
RELX (Investments) plc
Ordinary
GBR1
RELX Overseas Holdings Ltd
Ordinary
GBR1
RELX (UK) Ltd
Ordinary
GBR1
REV GP (UK) LLP
Membership Interest
GBR1
REV Venture Partners Ltd
Ordinary
GBR1
REV V LP
Partnership Interest
GBR1
SciBite Ltd
A Ordinary, B
Ordinary, C Ordinary
GBR9
Tracesmart Ltd
Ordinary
GBR5
TruNarrative Ltd
Ordinary
GBR5
United States
Accuity Asset Verification Services Inc.
Common Stock
USA1
Accuity Inc.
Common Stock
USA1
American Textile Machinery Exhibition
International Inc.
(40%)
Common Stock
USA3
Aries Systems Corporation
Common Stock
USA3
BehavioSec Inc
Common Stock
USA2
Crop Data Management Systems, Inc.
Common Stock
USA2
Dunlap
-Hanna Publishers (50%)
Partnership Interest
USA7
Elsevier Holdings Inc.
Common Stock
USA3
Elsevier Inc.
Common Stock
USA3
Elsevier Medical Information LLC
Membership Interest
USA3
Elsevier STM Inc.
Common Stock
USA3
Emailage Corp.
Common Stock
USA2
Enclarity, Inc.
Common Stock
USA2
Flyreel Inc.
Common Stock
USA2
Gaming Business Asia LLC
(50%)
Membership Interest
USA3
Health Market Science, Inc.
Common Stock
USA2
ID Analytics LLC
Membership Interest
USA2
IDG-RBI China Publishers LLC (50%)
Membership Interest
USA3
Interfolio, Inc.
Common Stock
USA3
Interfolio Data 180, LLC
Membership Interest
USA3
Knovel Corporation
Common Stock
USA3
Knowable Inc (75%)
Common Stock
USA3
Legal InQuery Solutions Inc.
Common Stock
USA8
LexisNexis Claims Solutions Inc.
Common Stock
USA2
LexisNexis Coplogic Solutions Inc.
Common Stock
USA2
LexisNexis of Puerto Rico Inc.
Common Stock
USA8
LexisNexis Risk Data Management LLC
Membership Interest
USA2
LexisNexis Risk Holdings Inc.
Common Stock
USA2
LexisNexis Risk Solutions Inc.
Common Stock
USA2
LexisNexis Risk Solutions FL Inc.
Common Stock
USA2
LexisNexis Special Services Inc.
Common Stock
USA6
LexisNexis VitalChek Network Inc.
Common Stock
USA2
LNRS Data Services Inc.
Common Stock
USA5
Matthew Bender & Company, Inc.
Common Stock
USA3
MLex US, Inc.
Common Stock
USA3
Parley Pro Inc.
Common Stock
USA3
PCLaw Time Matters LLC (51%)
Membership Interest
USA3
Portfolio Media, Inc.
Common Stock
USA3
Reed Technology and Information Services
LLC
Membership Interest
USA3
RELX Capital Inc.
Common Stock
USA4
RELX Inc.
Common Stock
USA3
RELX Risks Inc.
Common Stock
USA9
REV IV Partnership LP
Partnership Interest
USA4
SAFI Americas LLC (50%)
Membership Interest
USA3
SageStream LLC
Membership Interest
USA2
The Reed Elsevier
Ventures 2005 Partnership
LP
Partnership Interest
USA4
The Reed Elsevier Ventures 2011 Partnership
LP
Partnership Interest
USA4
The Reed Elsevier Ventures 2013 Partnership
LP
Partnership Interest
USA4
The Remick Publishers (50%)
Partnership
Interest
USA7
ThreatMetrix, Inc.
Common Stock
USA2
World Compliance, Inc.
Common Stock
USA4
Vietnam
Reed Tradex Vietnam LLC
(49%)
Membership Interest
VIE1
Registered offices
Australia
AUS1:
Building B, Level 2, Unit 11, 1 Maitland Place, Baulkham Hills, NSW 2153
AUS2:
Tower 2, Level 1, 475 Victoria Avenue, Chatswood NSW 2067
Austria
AUT1:
Messeplatz 1, 1020, Vienna
AUT2:
Trabrennstrassee 2ª,1020, Vienna
AUT3:
Am Messezentrum 6, 5020, Salzburg
AUT4:
Am Messezentrum 7, 5020, Salzburg
Belgium
BEL1:
Oudenaardseheerweg 129, 9810 Nazareth
Brazil
BRA1:
Rua da Assembleia no 100, 6th Floor, RJ Centro, Rio de Janiero, 20011
-904
BRA2:
Rua Bela Cintra 2305, São Paulo, 01415-009
BRA3:
Rua Bela Cintra no. 1200, 10th floor, São Paulo, 01415-001
BRA4:
Avenida Paulista, 2300
-Piso Pilotis room 28, São Paulo, 01310-300
BRA5:
Rua Cel Fonseca, 203 A-Centro, Botucatu, São Paulo, 18600-200
BRA6:
Rua Funchal, 538, conjunto 42, Vila Olímpia, São Paulo - CEP 04551-060
BRA7:
Alameda Rio Negro, 161 Alphaville Industrial, Barueri, São Paulo 06.455-000
BRA8:
Alphaville, Conjuntos 81
-84, Centro Empresarial Araguaia, Barueri, São Paulo
2104, 8-9 Andar
Canada
CAN1:
111 Gordon Baker Road, Suite 900,
Toronto, Ontario, M2H 3R1
CAN2:
26E-1501 av. McGill College, Montreal, Quebec, H3A 3N9
China
CHN1:
Zhongkun Building, Room 612, Gaoliangqiaoxie Street, No. 59, Haidan District,
Beijing, 100044
CHN2:
Room 516, 5th Floor, Building 22, Area 11, No. 38, Xueyuan Road, Haidian
District, Beijing
CHN3:
Oriental Plaza, No. 1 East Chang An Ave, Tower W1, 7th Floor, Unit
1-7,
Dong
Cheng District, Beijing, 100738
CHN4:
Ping An International Finance Center, Room 1504, 15th Floor, Tower A-
101,
3-24 floor, Xinyuan South Road, Chaoyang District, Beijing, 100027
CHN5:
Unit
B1303-1
& 1305, 13F Center Plaza, 161 Linhe Road West, Tianhe District
Guangzhou
CHN6:
Unit 303, 3F, Tower 3 Kerry Plaza ,No.1 Zhong Xin Si Road, Fu Tian District, Fu
Tian Distri
ct, Shenzhen
CHN7:
Room 5106, Raffle City, 268 Middle Xizang Road, Huangpu District, Shanghai,
200001
CHN8:
Intercontinental Center, 42F, 100 Yutong Road, Zhabei District, Shanghai,
200070
CHN9:
Room 319, 238 Jiangchangsan Road, Jing’an
District, Shanghai
CHN10:
Room 304, Sanlian Building, No.8, Huajing Road, Pudong District, Shanghai,
200070
CHN11:
Building 2, Room No. 3895, Changjiang Avenue, No. 161, Changliang Farm,
Chongming County, Shanghai
CHN12:
Floor 2, No.979, Yunhan Road, Nicheng Town, Pudong New District, Shanghai
CHN13:
4/F Block 3, No 999 Jingzhong Road, Changning District, Shanghai
CHN14:
A0208, 1st floor, building 2, Yard 66, Yanfu Road, Yancun Tow, Fangshan
District Beijing
CHN15:
16 Donghuangchenggen North Street, Beijing, 100717
CHN16:
Shenzhen International Chamber of Commerce Tower, Room 1801-1802,
1805, Fuhua 3rd Road, Futian District, Shenzhen, 518048
CHN17:
5/F Unit A, Digital China Centre No. 567 Tianshan West Road, ChangNing
District, Shanghai, 200335
CHN18:
Room 12B, 7th Floor, Oriental Plaza, 1 East Chang An Avenue, Beijing, 100738
CHN19:
404 F4, No.9 Shangdi 9th Street, Haidian District, Beijing, 100085
Colombia
COL1:
Philippe Prietocarrizosa & Uria Abogados, Carrera 9 No. 74-08 Oficina 105,
Bogota, d.c., 76600
Denmark
DNK1:
Niels Jernes Vej 10, 9220, Aalborg East
Egypt
EGY1:
Land Mark Office Building, 2nd Floor, 90th Street, City Center, 5th Settlement,
New
Cairo, Cairo
28 Related undertakings (continued)
Registered offices
France
FRA1:
65, rue Camille Desmoulins, 92130, Issy les Moulineaux
FRA2:
Parc Euronord, 10 rue du Parc, 31150, Bruguieres
FRA3:
141 rue de Javel, 75015, Paris
FRA4:
52 Quai de Dion Bouton, 92800, Puteaux
FRA5:
Immeuble Technopolis, 350 rue Georges Besse, 30000, Nimes
FRA6:
27-33 quai Alphonse Le Gallo, 92100, Boulogne-Billancourt
FRA7:
6-8 Rue Chaptal, 75009, Paris
FRA8:
151-155 Rue de Bercy, 75012, Paris
FRA9:
168 Rue Saint-Denis, 75002, Paris
Germany
DEU1:
Volklinger Strasse 4, 40219, Dusseldorf
DEU2:
St. Martin Tower, Wing, 2nd floor, Franklinstrasse 61-63, 60486,
Frankfurt am Main Hessen
DEU3:
Bernhard-Wicki-Strasse 5, 80636, Munich
DEU4:
Heerdter Sandberg 30, 40549, Dusseldorf
DEU5:
Steinhauserstrasse 9, 76135, Karlsruhe
DEU6:
Joseph-Schumpeter-Allee 33, 53227, Bonn
DEU7:
Fritz-Haber-Strasse 9 OG 13, 06217 Merseburg
DEU8:
Schopenhauer Strasse 93 e, 14129, Berlin
Greece
GRE1:
188A, Filolaou Str., Athens. 11632
Hong Kong
HNK1:
5/F, Manulife Place, 348 Kwun Tong Road, Kowloon
HNK2:
Flat 1506, 15/F, Lucky Center, No. 165-171 Wan Chai Road, Wan Chai
HNK3:
11/F Oxford House, Taikoo Place, 979 King’s Road, Quarry Bay
HNK4:
17th Floor, One Island East, Taikoo Place, 18 Westlands Road, Quarry
Bay
India
IND1:
818, 8th Floor, Indraprakash Builing, 21 Barakhamba Road, New Delhi,
Delhi, 110001
IND2:
Ascendas International Tech Park, Crest Building 12th Floor, Taramani
Road, Taramani, Chennai, 600113
IND3:
99/100, Prestige Towers Unit No. 505, Fifth Floor, Residency Road,
Bangalore, Karnataka, 560025
IND4:
25, 3rd floor, 8th Main Road, Vasanthnager, Bangalore, Karnataka,
560052
Indonesia
IDN1:
APL Tower Central Park 26th Floor Unit T3 Jl. S. Parman Kav., 28,
Grogol, Pertamburan Jakarta Barat 11470
IDN2:
Gedung World Trade Center, 3 LT 20 Spaces JL Jend Sudirman Kav 29
-
31 RT/RW 008/003, Karet Kuningan, Setiabudi, Jakarta Selatan, DKI
Jakarta 12940
Irish Republic
IRL1:
80 Harcourt Street, Dublin 2, Dublin, D02 F449
IRL2:
Suite 4320, Atlantic Avenue, Westpark Business Campus, Shannon,
Clare, V14 YX01
IRL3:
1F Cedarhurst Building, Arkle Road, Sandyford Business Park, Dublin,
D18 X6N2
Israel
ISR1:
Meitar, Attorneys at Law, 16 Abba Hillel Rd. Ramat Gan 5250608
Italy
ITA1:
Via Marostica 1, 20146, Milan
ITA2:
Studio Colombo e Associati, Via Cino del Duca 5, 20122, Milan
Japan
JPN1:
Kyodo Tsushin Kaikam 2F, 2-2-5 Toronomon, Minato-ku, Tokyo, 105-
0001
JPN2:
1
-9-15, Higashi Azabu, Minato-ku Tokyo, 106-0044
JPN3:
Shinjuku
-Nomura Bldg., 1-26-2 Nishi-shinjuku, Shinjuku-ku, Tokyo, 163-
0525
Korea (Republic of)
KOR1:
Chunwoo Building, 4th floor, 534
Itaewon-dong, Yongsan-gu, Seoul,
140
-861
KOR2:
206 Noksapyeong-daero, Yongsan-gu, Seoul, 140-861
KOR3:
1622-24 Block A Terra Tower 2, 201 Songpa-daero, Songpa-gu, Seoul
KOR4:
4th floor at 195
-6 Jamsil-dong, Songpagu, Seoul
Macau
MAC1:
Rua De
Xangai, No. 175 Edif. Associacao Comercial de Macau, 11
Andar, Bloco K
Malaysia
MYS1:
Suite 29
-1, Level 29, Vertical Corporate, Tower B, Avenue 10, The
Vertical, 59200 Bangsar South City, Kuala Lumpur
Registered offices
Mexico
MEX1:
Masson-Doyma Mexico S.A., Av Insurgentes Sur 1388 Piso 8, Col
Actipan Mixcoac Del. Benito Juarez, Mexico DF, CP 03230
MEX2:
Avenida Paseo de la Reforma 243, Piso 15, Col. Cuauhtemoc, Mexico
City, 06500
Netherlands
NLD1:
Radarweg 29, 1043 NX Amsterdam
NLD2:
Hanzestraat 1, 7006RH Doetinchem
New Zealand
NZL1:
Level 1, 138 The Terrace, P.O. Box 472, Wellington 6011
Philippines
PHL1:
Building H, 2nd Floor, U.P. Ayalaland TechnoHub, Commonwealth
Avenue, Quezon City, Metro
Manila, 1101
Poland
POL1:
Plac Grunwaldzki 23
-27, 50-365 Wroclaw
POL2:
Al. JJana Pawla II, 22, 00-133, Warszawa
Russia
RUS1:
2nd Syromyatnichesky per, bld.1, Space I, Room 13, 105120,
Moscow
RUS2:
Building 1, Facility 1, Room 80, 9/26 Shchipok St., Municipal District
Zamoskvorechye, 115054, Moscow
RUS3:
Building 1, facility 1, Room 5, 9/26 Shchipok St., Municipal District
Zamoskvorechye, 115054, Moscow
Singapore
SGP1:
3 Killiney Road, #08
-01 Winsland House 1, 239519
SGP2:
80 Robinson Road, #02-00, 068898
SGP3:
1 Changi Business Park Crescent, #06
-01 Plaza 8 & CBP, 48602551
South Africa
ZAF1:
Ground Floor, Pebble Beach, Fourways Golf Park, Roos Street,
Fourways Sandton, Johannesburg, Gauteng 2068
ZAF2:
Building 8,
Country Club Estate Office Park, 21 Woodlands Drive,
Woodmead, Gauteng, 2191
Spain
ESP1:
C/ Josep Tarradellas 20
-30, 1º / 20029, Barcelona
Sweden
SWE1:
Aurorum 8A 977 75 Lulea
Switzerland
CHE1:
Bahnhofstrasse 100, 8001 Zurich
Taiwan
TWN1:
Rm N818, 8F, Chia Hsin Building II, No. 9, Lane 3, Minsheng West
Road, Taipei 10449
Thailand
THA1:
Sathorn Nakorn Building, Floor 32, No. 100/68-69 North Sathon Road,
Silom, Bangrak, Bangkok, 10500
THA2:
14th Floor, CTI Tower,
191/70-73 Ratchadapisek Road, Khwaeng
Klongtoey, Khet, Klongtoey, Bangkok
THA3:
2 Ploenchit Centre, Room 7, Floor G., Sukhumvit Road, Klongtoey,
Bangkok, 10110
Turkey
TUR1:
Maslak Mah. Bilim Sokak Sun Plaza Kat:13 Sisli-Maslak, Istanbul
TUR2:
Tuyap Fuar ve Kongre Merkezi, Cumhuriyet Mahallesi Eski Hadimkoy
Yolu 9/4, 34500 Buyukcekmece, Istanbul
TUR3:
Esentepe Mah. Ali Kaya SK. Polat Plaza B Blok No: 1/1B Sisli, Istanbul
United Arab Emirates
UAE1:
Office 0225 Podium 2, Yas
Creative Hub Tower 2, Abu Dhabi, PO
BOX 77899
UAE2:
Al Sufouh Complex, Office nos. 404, 405, 406 & 407, Dubai Media
City, Dubai
United Kingdom
GBR1:
1-3 Strand, London, WC2N 5JR
GBR2:
Quadrant House, The Quadrant, Sutton, Surrey, SM2 5AS
GBR3:
Gateway House, 28 The Quadrant, Richmond, Surrey, TW9 1DN
GBR4:
Lexis House, 30 Farringdon Street, London, EC4A 4HH
GBR5:
Global Reach, Dunleavy Drive, Cardiff, CF11 0SN
GBR6:
The Boulevard, Langford Lane, Kidlington, Oxford, OX5 1GB
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
Registered offices
GBR7:
40 Kimbolton Road, Bedford, MK40 2NR
GBR8:
5 Oakwood Drive, Loughborough, LE11 3QF
GBR9:
Biodata Innovation Centre Wellcome Genome Campus, Hinxton, Cambridge,
CB10 1DR
GBR10:
The Barn, Horningsea Road, Cambridge, CB5 8SZ
United States
USA1:
1007 Church Street, Evanston IL 60201
USA2:
1000 Alderman Dr., Alpharetta, GA 30005
USA3:
230 Park Ave, New York, NY 10169
USA4:
1105 North Market St, Wilmington, DE 19801
USA5:
3355 West Alabama Street, Houston, TX 77098
USA6:
1150 18th St, NW, Washington, DC 20036
USA7:
313 Washington Street, Suite 400, Newton, MA 02458
USA8:
9443 Springboro Pike, Miamisburg, OH 45342
USA9:
76 St. Paul Street, Suite 500, Burlington, VT 05401-4477
Vietnam
VIE1:
2nd Floor, Kova Center, 92G-92H Nguyen Huu Canh Street, Ward no. 22,
District.
Binh Thanh, Ho Chi Minh City
The following UK subsidiaries will take advantage of the audit
exemption set out with in Section 479A of the Companies Act
2006 supported by guarantees issued by RELX PLC over their
liabilities for the year ended 31 December 2022.
Registration
Company name
number
Butterworths Limited
2826955
Crediva Limited
6567484
E&P Events LLP
OC328529
Emailage Limited
9282165
Interfolio UK Limited
7820803
Mack-Brooks Exhibitions Limited
967560
MCM Expo Limited
8421024
MLex Limited
5488651
Offshore Europe (Management) Limited
2318214
RE (SOE) Limited
2330299
Reed Events Limited
5893942
RELX (Holdings) Limited
5807690
RELX (Investments) plc
5810043
RELX Overseas Holding Limited
9489059
REV GP (UK) LLP
OC437653
REV
Venture Partners Limited
4226986
SciBite Limited
7778456
Tracesmart Limited
3827062
TruNarrative Limited
204
RELX
Annual Report 2022 | Financial statements and other information
2018
2019
2020
2021
2022
£m
£m
£m
£m
£m
RELX consolidated financial information
Growth rates
Un
derlying revenue growth
+4
%
+4
%
-9
%
+7
%
+9
%
Underlying adjusted operating profit growth
+6
%
+5
%
-18
%
+13
%
+15
%
Adjusted earnings per share growth (at constant currency)
+7
%
+7
%
-15
%
+17
%
+10
%
Adjusted figures
Re
venue
7,492
7,874
7,110
7,244
8,553
Operating profit
2,346
2,491
2,076
2,210
2,683
Operating margin
31.3
%
31.6
%
29.2
%
30.5
%
31.4
%
Pr
ofit before tax
2,145
2,200
1,916
2,077
2,489
Net profit attributable to shareholders
1,674
1,808
1,543
1,689
1,961
Net margin
22.3
%
23.0
%
21.7
%
23.3
%
22.9
%
Cash flow
2,243
2,402
2,009
2,230
2,709
Cash flow conversion
96
%
96
%
97
%
101
%
101
%
Return on invested capital
13.2
%
13.6
%
10.8
%
11.9
%
12.5
%
Ea
rnings per share
84.7
p
93.0
p
80.1
p
87.6
p
102.2
p
Dividend
Ordinary dividend per share
42.1
p
45.7
p
47.0
p
49.8
p
54.6
p
Re
ported figures
Re
venue
7,492
7,874
7,110
7,244
8,553
Operating profit
1,964
2,101
1,525
1,884
2,323
Profit before tax
1,720
1,847
1,483
1,797
2,113
Net profit attributable to shareholders
1,422
1,505
1,224
1,471
1,634
Net margin
19.0
%
19.1
%
17.2
%
20.3
%
19.1
%
Ne
t debt
6,177
6,191
6,898
6,017
6,604
Earnings per share (pence)
71.9
p
77.4
p
63.5
p
76.3
p
85.2
p
(1)
Adjusted figures are presented as additional performance measures used by management. Further details on the adjusted measures can be found in the
Alternative performance measures section on pages 216 to 224.
(2)
Dividend per ordinary share is based on the interim dividend and proposed final dividend for the relevant year.
5 year summary
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
205
RELX
Annual Report 2022 | Notes to the consolidated financial statements
206
206
RELX
Annual Report 2022
RELX PLC
company only
financial statements
RELX
Annual Report 2022
In this section
208
RELX PLC statement of financial position
209
RELX PLC statement of changes in equity
210
RELX PLC acounting policies
211
Notes to the RELX PLC financial statements
207
207
RELX
Annual Report 2022
RELX
Annual Report 2022
Financial review
Governance
Corporate Responsibility
Overview
Market segments
Overview
Market segments
Corporate Responsibility
Financial statements and
other information
Governance
AS AT 31 DECEMBER
2021
2022
Note
£m
£m
Non
-current assets
Investments in subsidiary undertakings
1
18,327
18,333
18,327
18,333
Current assets
Trade and other receivables
1
–
Receivables: amounts due from subsidiary undertakings
1,857
1,469
Total assets
20,185
19,802
Current liabilities
Taxation
–
1
Other payables
3
154
Payables: amounts owed to subsidiary undertakings
–
10
3
165
Net assets
20,182
19,637
Capital and reserves
Share capital
286
279
Share premium
1,491
1,517
Shares held in treasury
(789)
(312)
Capital redemption reserve
36
43
Other reserves
177
183
Merger reserve
11,150
11,150
Net profit
1,046
1,056
Reserves
6,785
5,721
Shareholders’ equity
20,182
19,637
The RELX PLC Company financial statements were approved by the Board of Directors and authorised for issue on 15 February 2023.
They were signed on its behalf by:
N L Luff
Chief Financial Officer
RELX PLC statement of financial position
208
RELX
Annual Report 2022 | Financial statements and other information
Shares
Capital
Share
Share
held in
redemption
Other
Merger
Net
capital
premium
treasury
reserve
(1)
reserves
(2)
reserve
(1)
profit
Reserves
(3)
Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
Balance at 1 January 2021
286
1,459
(789)
36
172
11,150
1,051
6,654
20,019
Total comprehensive income for
the year
–
–
–
–
–
–
1,046
–
1,046
Dividends paid
(4)
–
–
–
–
–
–
–
(920)
(920)
Issue of ordinary shares, net of
expenses
–
32
–
–
–
–
–
–
32
Equity instruments granted to
employees of the Group
–
–
–
–
5
–
–
–
5
Transfer of net profit to reserves
–
–
–
–
–
–
(1,051)
1,051
–
Balance at 1 January 2022
286
1,491
(789)
36
177
11,150
1,046
6,785
20,182
Total comprehensive income for
the year
–
–
–
–
–
–
1,056
–
1,056
Dividends paid
(4)
–
–
–
–
–
–
–
(983)
(983)
Repurchase of ordinary shares
–
–
(650)
–
–
–
–
–
(650)
Cancellation of shares
(7)
–
1,127
7
–
–
–
(1,127)
–
Issue of ordinary shares, net of
expenses
–
26
–
–
–
–
–
–
26
Equity instruments granted to
employees of the Group
–
–
–
–
6
–
–
–
6
Transfer of net profit to reserves
–
–
–
–
–
–
(1,046)
1,046
–
Balance at 31 December 2022
279
1,517
(312)
43
183
11,150
1,056
5,721
19,637
(1)
The capital redemption and merger reserve do not form part of the distributable reserves balance.
(2)
Other reserves relate to equity instruments granted to employees of the Group under share based remuneration arrangements, and do not form part of the
distributable reserves balance.
(3)
Distributable reserves at 31 December 2022 were £6,465m (2021: £7,042m) comprising net profit and reserves, net of shares held in treasury.
(4)
Refer to note 13 of the RELX consolidated financial statements on page 184 for further dividend disclosure.
RELX PLC statement of changes in equity
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
209
RELX
Annual Report 2022 | RELX PLC company only financial statements
Basis of preparation
RELX PLC meets the definition of a qualifying entity under FRS 100 (Financial Reporting Standard 100) issued by the Financial
Reporting Council (FRC). Accordingly, the financial statements are prepared in accordance with FRS 101 (Financial Reporting Standard
101) – Reduced Disclosure Framework as issued by the Financial Reporting Council, incorporating the Amendments to FRS 101 issued
by the FRC in July 2015 and the amendments to company law made by The Companies, Partnerships and Groups (Accounts and
Reports) Regulations 2015.
As permitted by FRS 101, RELX PLC has taken advantage of the disclosure exemptions available under that standard in relation to
share based payments, financial instruments, capital management, presentation of comparative information in respect of certain assets,
presentation of a cash flow statement, standards not yet effective, impairment of assets and related party transactions.
The RELX PLC financial statements have been prepared on the historical cost basis.
Unless otherwise indicated, all amounts in the financial statements are in millions of pounds.
The RELX PLC financial statements should be read in conjunction with the Group consolidated financial statements and notes
presented on pages 162 to 205, which are also presented as the RELX PLC consolidated financial statements. See the Basis of
preparation of the consolidated financial statements on page 167.
The RELX PLC financial statements are prepared on a going concern basis, as explained on page 95.
As permitted by Section 408 of the Companies Act 2006, and in compliance with The Companies, Partnerships and Groups (Accounts
and Reports) Regulations 2015, the Company has not presented its own profit and loss account but has presented the net profit for
the year on the statement of financial position.
The RELX PLC accounting policies under FRS 101 are set out below.
Investments
Fixed asset investments are stated at cost, less provision, if appropriate, for any impairment in value. The fair value of the award of
share options and conditional shares over RELX PLC ordinary shares to employees of the Group are treated as a capital contribution.
Other assets and liabilities are stated at historical cost, less provision, if appropriate, for any impairment in value.
Shares held in treasury
The consideration paid, including directly attributable costs, for shares repurchased is recognised as shares held in treasury and
presented as a deduction from total equity. Details of share capital and shares held in treasury are set out in note 23 of the Group
consolidated financial statements.
Foreign exchange translation
Transactions entered into in foreign currencies are recorded at the exchange rates applicable at the time of the transaction.
Taxation
Refer to note 9 on pages 178 to 181 of the consolidated financial statements for the taxation accounting policies.
RELX PLC accounting policies
210
RELX
Annual Report 2022 | Financial statements and other information
1 Investments
Subsidiary
undertaking
Total
£m
£m
At 1 January 2021
18,322
18,322
Equity instruments granted to employees of the Group
5
5
At 1 January 2022
18,327
18,327
Equity instruments granted to employees of the Group
6
6
At 31 December 2022
18,333
18,333
2 Related party transactions
All transactions with subsidiaries and the Group’s employees, which are related parties of RELX PLC, are reflected in these financial
statements. Transactions with key management personnel including share based remuneration costs are set out in note 25 of the
Group consolidated financial statements and details of the Directors’ remuneration are included in the Directors’ Remuneration Report
on pages 110 to 142.
3 Contingent liabilities
There are contingent liabilities in respect of debt of subsidiaries guaranteed by RELX PLC as follows:
2021
2022
£m
£m
Contingent liabilities
5,679
6,518
Financial instruments disclosures in respect of the debt covered by the above guarantees are given in note 17 of the Group’s
consolidated financial statements.
Notes to the RELX PLC financial statements
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
211
RELX
Annual Report 2022 | RELX PLC company only financial statements
212
212
RELX
Annual Report 2022
Other financial
information
In this section
214
Summary consolidated financial information in euros
215
Summary consolidated financial information in US dollars
216
Alternative performance measures
v
213
213
RELX
Annual Report 2022
Financial review
Financial statements and
other information
Governance
Corporate Responsibility
Overview
Market segments
Basis of preparation
The Group’s consolidated financial information is presented in sterling. The summary financial information is a simple translation of the
Group’s consolidated financial statements into euros at the stated rates of exchange.
EXCHANGE RATES FOR TRANSLATION
Income statement
Statement of
financial position
2020
2021
2022
2020
2021
2022
Euro to
sterling
1.12
1.16
1.17
1.12
1.19
1.13
Consolidated income statement
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
€m
€m
€m
Revenue
7,963
8,403
10,007
Operating profit
1,708
2,185
2,718
Profit before tax
1,661
2,085
2,472
Net profit attributable to shareholders
1,371
1,706
1,912
Adjusted operating profit
2,325
2,564
3,139
Adjusted profit before tax
2,146
2,409
2,912
Adjusted net
profit attributable to shareholders
1,728
1,959
2,294
Adjusted earnings per ordinary share
€0.897
€1.016
€1.196
Basic earnings per ordinary share
€0.712
€0.885
€0.997
Net dividend per ordinary share paid in the year
€0.512
€0.553
€0.599
Net dividend per ordinary share paid and proposed in relation to the financial year
€0.526
€0.578
€0.639
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
€m
€m
€m
Net cash from operating activities
1,788
2,338
2,809
Net cash used in investing activities
(1,314)
(445)
(1,005)
Net cash used in financing activities
(531)
(1,863)
(1,561)
(Decrease)/increase in cash and cash
equivalents
(57)
30
243
Movement in cash and cash equivalents
At start of year
163
99
134
(Decrease)/increase in cash and cash equivalents
(57)
30
243
Exchange translation differences
(7)
5
0
At end of year
99
134
377
Adjusted cash flow
2,250
2,587
3,170
Consolidated statement of financial position
AS AT 31 DECEMBER
2020
2021
2022
€m
€m
€m
Non
-current assets
13,295
13,686
14,419
Current assets
2,547
2,805
3,468
Total assets
15,842
16,491
17,887
Current liabilities
4,899
4,460
5,861
Non
-current liabilities
8,590
8,194
7,783
Total liabilities
13,489
12,654
13,644
Net assets
2,353
3,837
4,243
Summary consolidated financial information
in euros
214
RELX
Annual Report 2022 | Financial statements and other information
Basis of preparation
The Group’s consolidated financial information is presented in sterling. The summary financial information is a simple translation of the
Group’s consolidated financial statements into US dollars at the stated rates of exchange. It does not represent a restatement under US
GAAP which would be different in some significant respects.
EXCHANGE RATES FOR TRANSLATION
Statement of
Income statement
financial position
2020
2021
2022
2020
2021
2022
US dollars to sterling
1.28
1.38
1.24
1.37
1.35
1.21
Consolidated income statement
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
$m
$m
$m
Revenue
9,101
9,997
10,606
Operating profit
1,952
2,600
2,881
Profit before tax
1,898
2,480
2,620
Net profit attributable to shareholders
1,567
2,030
2,026
Adjusted operating profit
2,657
3,050
3,327
Adjusted profit before tax
2,452
2,866
3,086
Adjusted net profit attributable to
shareholders
1,975
2,331
2,432
Adjusted earnings per American Depositary Share (ADS)
$1.025
$1.209
$1.268
Basic earnings per ADS
$0.814
$1.053
$1.056
Net dividend per ADS paid in the year
$0.585
$0.658
$0.635
Net dividend per ADS paid and proposed in relation to the financial year
$0.602
$0.687
$0.677
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
2020
2021
2022
$m
$m
$m
Net cash from
operating activities
2,043
2,782
2,977
Net cash used in investing activities
(1,501)
(530)
(1,065)
Net cash used in financing activities
(607)
(2,216)
(1,654)
(Decrease)/increase in cash and cash equivalents
(65)
36
258
Movement in cash and cash equivalents
At start of year
184
121
153
(Decrease)/increase in cash and cash equivalents
(65)
36
258
Exchange translation differences
2
(4)
(7)
At end of year
121
153
404
Adjusted cash flow
2,572
3,077
3,359
Consolidated statement of financial position
AS AT 31 DECEMBER
2020
2021
2022
$m
$m
$m
Non
-current assets
16,263
15,526
15,440
Current assets
3,115
3,182
3,713
Total assets
19,378
18,708
19,153
Current liabilities
5,992
5,060
6,276
Non
-current liabilities
10,508
9,296
8,334
Total liabilities
16,500
14,356
14,610
Net assets
2,878
4,352
4,543
Summary consolidated financial information
in US dollars
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
215
RELX
Annual Report 2022 | Summary consolidated financial information
RELX uses a range of alternative performance measures (APMs) in the reporting of financial information, which are not defined by
generally accepted accounting principles (GAAP) such as IFRS. These APMs are used by the Board and management as they believe
they provide relevant information in assessing the Group’s performance, position and cash flows, enable investors to track more clearly
the core operational performance of the Group, and provide a clear basis for assessing RELX’s ability to raise debt and invest in new
business opportunities.
Management also uses these financial measures, along with IFRS financial measures, in evaluating the operating performance of the
Group as a whole and of the individual business areas. These measures should not be considered in isolation from, or as a substitute
for, financial information presented in compliance with IFRS. The measures may not be directly comparable to similarly reported
measures by other companies.
See below for a list of key APMs used by the Group, along with a description of each measure, its purpose, details of the closest
equivalent IFRS measure (where applicable) and a reference to where it has been used in the financial statements.
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS MEASURE
PURPOSE
ANNUAL REPORT AND
ACCOUNTS
REFERENCE
I
n
n
c
c
o
o
m
m
e
e
s
t
t
a
a
t
t
e
e
m
m
e
e
n
n
t
t
Constant
currency
growth
No direct
equivalent
Constant currency growth measures are
calculated using the previous financial year’s full
-
year average and hedge exchange rates.
Provides a measure of
year
-on-year growth
excluding the impact
of exchange rate
movements.
Financial highlights
Chair’s statement
CEO report
Business overview
Market segments
Financial review
Directors’ remuneration
report
Underlying
growth
No
direct
equivalent
Underlying growth rates are calculated at
constant currencies, excluding the results of
acquisitions until 12 months after purchase, and
excluding the results of disposals and assets
held for sale. Underlying revenue growth rates
also ex
clude exhibition cycling.
This is a key financial
measure as it provides
an assessment of year
-
on
-year growth
excluding the impact of
acquisitions, disposals,
exhibition cycling and
exchange rate
movements.
Financial highlights
Chair’s statement
CEO
report Business
overview
Market segments
Financial review
Directors’ remuneration
report
2021
2022
2021
2022
Note
£m
£m
%
%
Reported revenue growth
2
134
1,309
2%
18%
Components of
reported revenue growth
Underlying revenue growth
481
656
7%
9%
Exhibitions cycling
48
1
1
0
0
6
6
1%
2%
Acquisitions
47
3
3
8
8
1%
0%
Disposals
(28)
(34)
(1)%
0%
Total revenue growth at constant
currency
548
7
7
6
6
6
6
8%
11%
Currency effect
(414)
5
5
4
4
3
3
(6)%
7%
Reported revenue growth
134
1
1
,
,
3
3
0
0
9
9
2%
18%
Alternative performance measures
216
RELX
Annual Report 2022 | Financial statements and other information
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS MEASURE
PURPOSE
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Underlying
growth
(continued)
2021
2022
2021
2022
Note
£m
£m
%
%
Reported adjusted operating profit growth
134
473
6%
21%
Components of adjusted operating profit growth
Underlying adjusted operating profit growth
269
326
13%
15%
Acquisitions
11
(6)
1%
0%
Disposals
(8)
(14)
(1)%
(1)%
Total adjusted operating profit growth at constant
currency
272
306
13%
14%
Currency impact
(138)
167
(7)%
7%
Reported adjusted operating profit growth
134
473
6%
21%
Adjusted
operating
profit
Operating
profit
Operating profit before amortisation of acquired
intangible assets, acquisition
-related items,
and grossed up to exclude the equity share of
finance income, finance costs and taxes in
joint ventures.
This is the key financial
measure used by
management to
evaluate performance
and allocate resources.
Financial highlights
Chair’s statement
CEO report
Business overview
Market segments
Financial review
Directors’ remuneration
report
Note 2
2021
2022
Note
£m
£m
Operating profit
2,3
1,884
2,323
Adjustments:
Amortisation of acquired intangible assets
2
298
296
Acquisition-related items
21
62
Reclassification of tax in joint ventures
7
4
Reclassification of net finance income in joint ventures
–
(2)
Adjusted
operating profit
2,210
2,683
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
217
RELX
Annual Report 2022 | Alternative performance measures
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS MEASURE
PURPOSE
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Adjusted
operating
margin
No
direct
equivalent
Calculated as adjusted operating profit divided
by revenue.
As above.
Financial highlights
Financial review
Earnings
before
interest, tax,
depreciation
and
amortisation
(EBITDA)
No direct
equivalent
Calculated as adjusted
operating profit before
depreciation of property, plant and equipment
(PPE) and right
-of-use assets and amortisation
of internally developed intangible assets,
including pre
-publication costs.
Provides a measure of
the operating
performance of the
business that is widely
used by relevant
stakeholders in
evaluating company
performance.
Chair’s statement
Financial review
2021
2022
Note
£m
£m
Adjusted operating profit
2
2,210
2,683
Total depreciation and
other amortisation*
2,3
487
491
EBITDA
2,697
3,174
*
Excludes amortisation of acquired intangibles.
Adjusted
interest
expense
Interest
expense
Reported interest expense, less the pension
financing charge, plus the share of
net finance
income from joint ventures.
Provides a measure of
the Group’s interest
expense for the funding
of business operations
that is comparable from
year to year.
Financial review
2021
2022
Note
£m
£m
Interest expense
7
142
201
Pension financing charge
6
(9)
(5)
Share of net finance income from joint ventures
–
(2)
Adjusted interest expense
133
194
Adjusted
profit before
tax
Profit
before
tax
Profit before tax before amortisation of acquired
intangible assets, acquisition
-related items,
reclassification of taxes in joint ventures, net
interest on the net defined benefit pension
obligation and disposals and other non
-
operating
it
ems.
Provides a measure
used by management to
evaluate performance
and allocate resources.
Financial highlights
Financial review
2021
2022
Note
£m
£m
Profit before tax
1,797
2,113
Adjustments:
Amortisation of acquired intangible assets
2
298
296
Acquisition-related items
2
21
62
Reclassification of tax in joint ventures
7
4
Net interest on net defined benefit pension obligation and other
6
9
5
Disposals and other non
-
operating items
8
(55)
9
Adjusted profit before tax
2,077
2,489
218
RELX
Annual Report 2022 | Financial statements and other information
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS
MEASURE
PURPOSE
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Adjusted tax
charge
Income tax
expense
Tax expense excluding the deferred tax
movements associated with goodwill and
acquired intangible assets, tax on other
acquisition
-related items, reclassification of tax
on joint ventures, tax on net interest payments
on the net defined benefit pension obligation and
on disposals and other non
-operating items.
Provides a measure
of the Group’s tax
expense relating to
operating activities.
Financial review
2021
2022
Note
£m
£m
Tax charge
9
(326)
(481)
Adjustments:
Deferred tax movements on goodwill and acquired intangible assets*
22
30
Other deferred tax credits from intangible assets**
(61)
(64)
Tax on acquisition-related items
(11)
(13)
Reclassification of tax in joint ventures
(7)
(4)
Tax on net interest on net defined benefit pension obligation and other
(2)
(1)
Tax on disposals and other non-operating items
1
3
Adjusted tax charge
(384)
(530)
*
The adjusted tax charge excludes the movements in deferred tax assets and liabilities related to goodwill and acquired intangible assets, but includes the benefit of
tax amortisation where available on acquired goodwill and intangible assets.
*
* Movements on deferred tax liabilities arising on acquired intangible assets that do not qualify for tax amortisation.
Effective tax
rate
Income tax
rate
Income tax expense expressed as a percentage
of profit before tax.
For a reconciliation between the net tax expense
charged on profit before tax and the theoretical
amount that would arise using the weighted
average of tax rates applicable to accounting
profits and losses of the consolidated entities,
refer to note 9.
Prov
ides a measure of
the Group’s tax charge
relative to its profit
before tax that is
comparable from year
to year.
Financial review
Note 9
Adjusted
effective tax
rate
No direct
equivalent
Calculated as the adjusted tax charge as a
percentage of adjusted profit before tax.
Provides a measure of
the Group’s tax charge
relative to its profit
before tax that is
comparable from year
to year.
Financial review
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
219
RELX
Annual Report 2022 | Alternative performance measures
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS MEASURE
PURPOSE
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Adjusted net
profit
attributable to
shareholders
Net profit
attributable to
shareholders
Net profit attributable to
shareholders before
amortisation of acquired intangible assets, other
deferred tax credits from intangible assets and
items treated as exceptional, acquisition
-related
items, net interest on the net defined benefit
obligation, disposals and other non
-operating
items.
Provides a measure of
the Group’s profitability
after tax attributable to
shareholders.
Financial highlights
Financial review
Note 10
2021
2022
Note
£m
£m
Net profit attributable to shareholders
1,471
1,634
Adjustments (post
-tax):
Amortisation of acquired intangible assets
316
326
Other deferred tax credits from intangible assets*
(61)
(64)
Acquisition-related items
10
49
Net interest on net defined benefit pension obligation and other
7
4
Disposals and other non-operating items
(54)
12
Adjusted net profit attributable to shareholders
1,689
1,961
*
Movements on deferred tax liabilities arising on
acquired intangible assets that do not qualify for tax amortisation.
Adjusted
earnings per
share
Earnings per
share
Adjusted net profit attributable to shareholders
divided by the weighted average number of
shares.
Provides a
measure of
the Group’s earnings
per share that is
comparable from year
to year.
Financial highlights
Chair’s statement
CEO report
Business overview
Financial review
Note 10
Note
2021
2022
Adjusted net profit
attributable to shareholders (£m)
10
1,689
1,961
Weighted average number of shares (m)
10
1,928.0
1,918.5
Adjusted earnings per share (p)
87.6
102.2
220
RELX
Annual Report 2022 | Financial statements and other information
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS MEASURE
PURPOSE
FINANCIAL STATEMENT
REFERENCE
Cash flow statement
Adjusted
cash flow
Cash
generated
from
operations
Cash generated from operations plus dividends
from joint
ventures less net capital expenditure
on property, plant and equipment (PPE) and
internally developed intangible assets,
repayment of lease principal and sublease
payments received and excluding pension deficit
payments and payments in relation to
acquisit
ion-
related items. Exceptional cash costs
in the Exhibitions business have also been
excluded.
Provides a measure of
the Group’s operating
cash flow that is
comparable from year
to year.
Financial highlights
Financial review
2021
2022
Note
£m
£m
Cash generated from operations
11
2,476
3,061
Adjustments:
Dividends received from joint ventures
15
20
33
Purchases of PPE
16
(28)
(36)
Proceeds from disposals of PPE
5
–
Expenditure on internally developed intangible assets
(309)
(400)
Payments in relation to acquisition-related items
46
54
Pension recovery payment
44
50
Repayment of lease principal*
(77)
(79)
Sublease payments received
1
1
Exceptional costs in Exhibitions
52
25
Adjusted cash flow
2,230
2,709
*
Excludes repayments and receipts in respect of disposal-related vacant property and is net of sublease receipts.
Adjusted
cash flow
conversion
No direct
equivalent
Adjusted cash flow divided by adjusted
operating profit.
Provides a measure of
turning operating profit
into cash.
Financial highlights
Business overview
Financial review
2021
2022
Note
£m
£m
Adjusted cash flow
2,230
2,709
Adjusted operating profit
2
2,210
2,683
Adjusted cash flow conversion
101%
101%
Free cash
flow
Cash inflow
from
operating
activities
Adjusted cash flow less net interest paid, cash
tax paid, acquisition
-related payments and
exceptional costs paid in relation to the
Exhibitions business.
Provides a measure of
cash flows that could be
used f
or organic
investment in the
business, acquisitions,
distribution of dividends,
share buybacks or the
repayment of debt.
Financial review
Note 17
2021
2022
Note
£m
£m
Adjusted cash flow
2,230
2,709
Interest paid (net)
(118)
(165)
Cash tax paid*
9
(342)
(495)
Exceptional costs in Exhibitions
(52)
(25)
Acquisition-related items
(46)
(54)
Free cash flow
1,672
1,970
*
Net of cash tax relief on acquisition-related items and including cash tax impact of disposals.
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
221
RELX
Annual Report 2022 | Alternative performance measures
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS MEASURE
PURPOSE
FINANCIAL STATEMENT
REFERENCE
Dividend
cover
No direct
equivalent
The number of times the total interim and
proposed final dividends for the year is covered
by the adjusted earnings per share.
It is
calculated as adjusted earnings per share
divided by ordinary
dividends per share.
Provides a measure of
the Group’s earnings
relative to ordinary
dividend payments.
Financial review
Directors’ report
Note
2021
2022
Adjusted earnings per share
10
87.6p
102.2p
Ordinary
dividends per share
13
49.8p
54.6p
Dividend cover
1.8x
1.9x
Note
2021
2022
Basic earnings per share
10
76.3
85.2
Ordinary dividends per share
13
49.8p
54.6p
Basic dividend cover
1.5x
1.6x
Net capital
employed
No direct
equivalent
Net goodwill and acquired intangible assets, net internally
developed intangible assets, net property, plant and
equipment, right
-of-use assets and investments less net
pension obligations and working capital.
Provides a
measure of the
capital used in
operations.
Financial review
2021
2022
Note
£m
£m
Goodwill and acquired intangible assets*
9,419
10,477
Internally developed intangible assets*
14
1,251
1,435
Property, plant and equipment*, right
-of-use assets* and investments
504
557
Net pension obligations
6
(269)
(55)
Working capital
(1,095)
(1,325)
Net capital
employed
9,810
11,089
* Net of accumulated depreciation and amortisation.
Invested
capital/
capital
employed
No direct
equivalent
Net capital employed, adjusted to add back
accumulated amortisation and impairment of
acquired intangible assets and goodwill, to
remove non
-operating investments and the
gross up to goodwill in respect of deferred tax,
and other items.
Used to calculate the
return on invested
capital (see below).
Financial review
Directors’ report
2021
2022
Note
£m
£m
Net capital employed
9,810
11,089
Accumulated amortisation and impairment of acquired intangible assets and goodwill
7,065
8,000
Non-operating investments
15
(107)
(127)
Deferred tax on goodwill and other
(1,234)
(1,392)
Invested capital/capital employed
15,534
17,570
222
RELX
Annual Report 2022 | Financial statements and other information
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS
MEASURE
PURPOSE
FINANCIAL STATEMENT
REFERENCE
Return on
invested
capital
(ROIC)
No direct
equivalent
Post tax adjusted operating profit expressed as a
percentage of average capital employed.
This is a key financial
measure used by
management that
demonstrates the
efficiency of the use
of capital.
Financial highlights
Business overview
Financial review
Note
2021
2022
Adjusted operating profit
2
2,210
2,683
Tax at adjusted effective rate
(409)
(571)
Adjusted effective tax rate
18.5%
21.3%
Adjusted operating profit after tax
1,801
2,112
Average invested capital*
15,108
16,920
ROIC
11.9%
12.5%
*
Average of invested capital at the beginning and the end of the year, retranslated at average exchange rates for the year.
Capital
expenditure
No direct
equivalent
Additions to property, plant and equipment and
internally developed intangible assets.
Provides a m
easure of
the amounts invested in
new products and
related infrastructure
across the business.
Chair’s statement
Financial review
Directors’ report
Governance
Note 2
2021
2022
Note
£m
£m
Additions to property,
plant and equipment
16
28
36
Additions to internally developed intangible assets
14
309
400
Capital expenditure
337
436
Financial statements and
other information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
223
RELX
Annual Report 2022 | Alternative performance measures
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS
MEASURE
PURPOSE
FINANCIAL STATEMENT
REFERENCE
Statement of financial position
Net debt
excluding
pensions /
net debt
including
pensions
No direct
equivalent
Net debt excluding pensions: debt less cash and
cash equivalents, related
derivative financial
instruments and finance lease receivables.
Provides a measure of
the Group’s level of
indebtedness.
Financial highlights
Chair’s statement
Financial review
Governance
Directors’ report
Note 17
2021
2022
Note
£m
£m
Debt
11,21
6,167
6,730
Cash and cash equivalents
11
(113)
(334)
Related derivative financial instruments
11
(35)
213
Finance lease receivables
11
(2)
(5)
Net debt excluding pensions
11
6,017
6,604
Pension deficit
6
315
184
Net debt including pensions
6,332
6,788
Leverage
ratios
No direct
equivalent
For details of the closest equivalent IFRS
measures to net debt and EBITDA, see above.
For the purpose of calculating leverage ratios,
share of results in joint ventures, the equity
share of finance income, finance costs,
taxes and amortisation in joint ventures,
and acquisition
-related items are deducted
from EBITDA.
Provides a measure of
the financial leverage of
the Group.
Chair’s statement
Financial review
Governance
2021
2022
2021
2022
Note
£m
£m
$m*
$m*
EBITDA
2,697
3,174
3,722
3,936
Less joint venture adjusted operating profit
(37)
(22)
(51)
(27)
Acquisition
-related items**
2
(48)
(62)
(66)
(77)
EBITDA for leverage ratio
2,612
3,090
3,605
3,832
Net debt excluding pensions (A)
6,017
6,604
8,123
7,991
Net debt including pensions (B)
6,332
6,788
8,548
8,213
EBITDA for leverage ratio (C)
2,612
3,090
3,605
3,832
Leverage ratio excluding pensions (A/C)
2.3x
2.1x
Leverage ratio including pensions
(B/C)
2.4x
2.1x
*
EBITDA and net debt have been translated from sterling to US dollars using, respectively, average and year end exchange rates, as shown on page 215.
** In 2021, this excludes gains of £27m from the revaluation of a put and call option arrangement relating to a non-controlling interest in a subsidiary within Legal.
224
RELX
Annual Report 2022 | Financial statements and other information
225
225
RELX
Annual Report 2022
Shareholder
information
In this section
226
Shareholder information
228
Shareholder information and contacts
IBC
2023 financial calendar
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
Overview
226
RELX
Annual Report 2022 | Financial statements and other information
Shareholder information
2022 Annual Report including Corporate Responsibility Report
and Financial Statements (the Annual Report)
The Annual Report for RELX PLC (the Company) for the year
ended 31 December 2022 is available on the Company’s website,
and from the registered office of RELX PLC shown on page 228.
Additional financial information, including the interim
and full-year results announcements, trading updates and
presentations, is also available on the Company’s website
www.relx.com
.
The consolidated financial statements set out in the Annual Report
are expressed in sterling, with summary financial information
expressed in Euro and US dollars.
Share price information
RELX PLC’s ordinary shares are traded on the
London Stock Exchange.
PLC
Trading symbol
REL
ISIN
GB00B2B0DG97
RELX PLC’s ordinary shares are traded on the
Euronext Amsterdam Stock Exchange.
PLC
Trading symbol
REN
ISIN
GB00B2B0DG97
RELX PLC’s ordinary shares are traded on the
New York Stock Exchange in the form of American Depositary
Shares (ADSs), evidenced by American Depositary Receipts (ADRs).
PLC ADRs
Ratio to ordinary shares
1:1
Trading symbol
RELX
CUSIP code
759530108
The RELX PLC ordinary share price and the ADS price may be
obtained from the Company’s website, other online sources and
the financial pages of some newspapers.
For further information visit the ‘Investor Centre’ section
of the Company’s website
www.relx.com/investorcentre
Information for registered
ordinary shareholders
Shareholder services
The RELX PLC ordinary share register is administered by Equiniti
Limited. Equiniti provides a free online portal for shareholders
at
www.shareview.co.uk
. Shareview allows shareholders
to monitor the value of their shareholdings, view their dividend
payments and submit dividend mandate instructions.
Shareholders can also submit their proxy voting instructions
ahead of Company meetings and update their personal contact
details. Shareview Dealing provides a share purchase and sale
facility. Equiniti’s contact details are shown on page 228.
Electronic communications
While hard copy shareholder communications continue to be
available to those shareholders requesting them, in accordance
with the Companies Act 2006 and the Company’s Articles of
Association, the Company uses its website as the main method of
communicating with shareholders. By registering their details
online at Shareview, shareholders can be notified by email when
shareholder communications are published on the Company’s
website. Shareholders can also use the Shareview website to
appoint a proxy to vote on their behalf at shareholder meetings.
Shareholders who hold their Company shares through CREST
may appoint proxies for shareholder meetings through the CREST
electronic proxy appointment service by using the procedures
described in the CREST manual.
Dividend mandates
Shareholders are encouraged to have their dividends paid
directly into a UK bank or building society account. This method
of payment reduces the risk of delay or loss of dividend cheques
in the post and ensures the account is credited on the dividend
payment date. A dividend mandate form can be obtained online at
www.shareview.co.uk
, or by contacting Equiniti at the address
shown on page 228.
Equiniti has established a service for overseas shareholders
in over 90 countries, which enables shareholders to have
their dividends automatically converted from sterling and
paid directly into their nominated bank account. Further
details of this service, and the fees applicable, are available
at
www.shareview.co.uk/info/ops
or by contacting Equiniti
at the address shown on page 228.
Dividend Reinvestment Plan
Shareholders can choose to reinvest their Company dividends by
purchasing further shares through the Dividend Reinvestment
Plan (DRIP) provided by Equiniti. Further information
concerning the DRIP facility, together with the terms and
conditions and an application form can be obtained online at
www.shareview.co.uk/info/drip
or by contacting Equiniti
at the address shown on page 228.
227
RELX
Annual Report 2022 | Shareholder information
Share dealing service
A telephone and internet dealing service is available through
Equiniti, which provides a simple way for UK resident shareholders
to buy or sell their shares. For telephone dealing call 0345 603
7037 between 8.30am and 5.30pm (UK time), Monday to Friday
(excluding public holidays in England and Wales ), and for
internet dealing log on to
www.shareview.co.uk/dealing
.
You will need your shareholder reference number as shown on
your dividend confirmation.
ShareGift
The Orr Mackintosh Foundation operates a scheme for
shareholders with small shareholdings, that may be too small
to sell economically, to make donations of shares. Details of
the scheme can be obtained from the ShareGift website at
www.sharegift.org
, or by telephoning ShareGift
on 020 7930 3737.
Sub-division of ordinary shares and share consolidation
On 28 July 1986, each RELX PLC ordinary share of £1 nominal
value was sub-divided into four ordinary shares of 25p each.
On 2 May 1997, each 25p ordinary share was sub-divided into two
ordinary shares of 12.5p each. On 7 January 2008, the ordinary
shares of 12.5p each were consolidated on the basis of 58 new
ordinary shares of 145
1⁄
116
p nominal value for every 67 ordinary
shares of 12.5p each held.
Capital gains tax
The mid-market price of RELX PLC’s £1 ordinary shares on
31 March 1982 was 282p. Adjusting for the sub-divisions and
share consolidation referred to above results in an equivalent
mid-market price of 40.72p for each existing ordinary share of
145
1⁄
116
p nominal value.
Warning to shareholders – unsolicited
investment advice
§
From time to time shareholders may receive unsolicited calls
from fraudsters
§
Fraudsters use persuasive and high-pressure tactics to lure
investors into scams, sometimes known as boiler room scams
§
They may offer to sell shares that turn out to be worthless or
non-existent, or to buy shares at an inflated price in return for
an upfront payment
§
While high profits are promised, if you buy or sell shares in this
way you will probably lose your money
§
Thousands of people contact the Financial Conduct Authority
(FCA) about investment fraud each year
How to avoid share fraud and boiler room scams
The FCA has issued some guidance on how to recognise and avoid
investment fraud:
§
Legitimate firms authorised by the FCA are unlikely to contact
you unexpectedly with an offer to buy or sell shares
§
If you receive an unsolicited phone call, do not get into a
conversation, note the name of the person and firm
contacting you and then end the call
§
Check the Financial Services Register available at
register.fca.org.uk
to see if the person and firm contacting
you is authorised by the FCA. If you wish to call the person or
firm back, only use the contact details listed on the Register
§
Call the FCA on 0800 111 6768 if the firm does not have any
contact details on the Register, or if you are told that they are
out of date
§
Search the list of unauthorised firms to avoid at
www.fca.org.uk/consumers/unauthorised-firms-
individuals#list
§
If you do buy or sell shares through an unauthorised firm,
you will not have access to the Financial Ombudsman Service
or the Financial Services Compensation Scheme
§
Consider obtaining independent financial and professional
advice before you hand over any money. If it sounds too good
to be true, it probably is
How to report a scam
If you are approached by fraudsters, please tell the FCA using
the share fraud reporting form at
www.fca.org.uk/
consumers/report-scam-unauthorised-firm
, where you
can find out more about investment scams. You can also call
the FCA Consumer Helpline on 0800 111 6768.
If you have already paid money to share fraudsters, you should
contact Action Fraud on 0300 123 2040 or use its online tool:
www.actionfraud.police.uk/report_fraud
Market segments
Governance
Financial statements and
other information
Financial review
Corporate Responsibility
Overview
228
RELX
Annual Report 2022 | Financial statements and other information
Shareholder information and contacts
Information for holders of ordinary shares
held through Euroclear Nederland
Shareholders with enquiries concerning RELX PLC ordinary
shares that are not held directly on the Register of Members and
are ultimately held through Nederlands Centraal Instituut voor
Giraal Effectenverkeer BV (Euroclear Nederland) should direct
their enquiries to the broker, financial intermediary, bank or
other financial institution that holds the shares on their behalf.
Dividend Reinvestment Plan
Shareholders can choose to reinvest Company dividends by
purchasing shares through the Dividend Reinvestment Plan
(DRIP) provided by ABN AMRO Bank NV. Further information
concerning the DRIP facility can be obtained via as.exchange.
agency@nl.abnamro.com.
Information for ADR holders
ADR shareholder services
Enquiries concerning RELX PLC ADRs should be addressed
to the ADR Depositary, Citibank NA, at the address shown below.
Dividend payments on RELX PLC ADRs are converted into US
dollars by the ADR Depositary.
Annual Report on Form 20-F
The RELX Annual Report on Form 20-F is filed electronically
with the United States Securities and Exchange Commission.
A copy of the 2022 Annual Report on Form 20-F is available on the
Company’s website, or from the ADR Depositary at the address
shown below.
Dividend currency elections
Shareholders appearing on the Register of Members or holding
their shares through CREST will continue to receive their
dividends in Pounds Sterling, but will have the option to elect
to receive their dividends in Euro. Euro payments will be made
by cheque only.
Shareholders who appear on the Register of Members and wish
to receive their dividend in Euro should contact our Registrar,
Equiniti on 0371 384 2960 (UK) or +44 (0) 121 415 0165 (from outside
the UK) for a dividend election form and further information
regarding the Euro dividend option. Alternatively, shareholders
can view and update their current dividend elections by registering
for a Shareview Portfolio at
www.shareview.co.uk/register
.
Shareholders who hold their shares through CREST and wish to
receive their dividend in Euro, must do so by following the CREST
Elections process.
Shareholders who hold RELX PLC shares through Euroclear
Nederland (via banks and brokers), will automatically receive their
dividends in Euro, but will have the option to elect to receive their
dividends in Pounds Sterling.
Shareholders who hold their shares through Euroclear Nederland
and wish to receive their dividends in Pounds Sterling should
contact their broker, financial intermediary, bank or other
financial institution that holds the shares on their behalf.
Contacts
RELX PLC
Head Office and Registered Office
London WC2N 5JR
Tel: +44 (0)20 7166 5500
Fax: +44 (0)20 7166 5799
Auditor
Ernst & Young LLP
1 More London Place
London SE1 2AF
United Kingdom
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing BN99 6DA
West Sussex
United Kingdom
www.shareview.co.uk
Tel: 0371 384 2960 (UK callers)
Tel: +44 121 415 0165 (callers outside the UK)
Listing/paying agent for shares listed on Euronext Amsterdam
held through Euroclear Nederland
ABN AMRO Bank NV
Department Corporate Broking and Issuer Services HQ7212
Gustav Mahlerlaan 10
1082 PP Amsterdam
The Netherlands
Email: as.exchange.agency@nl.abnamro.com
RELX PLC ADR Depositary
Citibank Shareholder Services
PO Box 43077
Providence, RI 02940-3077
USA
www.citi.com/dr
Email: citibank@shareholders-online.com
Tel: +1 877 248 4237
+1 781 575 4555 (callers outside the US)
Credits
Designed and produced by
Conran Design Group
Photography:
Board by
Douglas Fry, Piranha Photography
Printed by
Pureprint Group, ISO14001, FSC
®
certified and CarbonNeutral
®
Printed on Revive 100 Silk which is made from 100% recovered
waste. All of the pulp is bleached using an elemental chlorine
free process (ECF). Printed in the UK by Pureprint using its
environmental printing technology; vegetable inks were used
throughout. Pureprint is a CarbonNeutral
®
company. Both
manufacturing mill and printer are ISO14001 registered and are
Forest Stewardship Council
®
(FSC
®
) chain-of-custody certified.
2023 financial calendar
16 February
Results announcement for the year ended 31 December 2022
20 April
Trading update issued in relation to the 2023 financial year
20 April
Annual General Meeting
27 April
Ex-dividend date – 2022 final dividend, ordinary shares and ADRs
28 April
Record date – 2022 final dividend, ordinary shares and ADRs
17 May
Dividend currency and DRIP election deadline
23 May
Euro dividend equivalent announcement
7 June
Payment date – 2022 final dividend, ordinary shares
12 June
Payment date – 2022 final dividend, ADRs
27 July
Interim results announcement for the six months to 30 June 2023
3 August
*
Ex-dividend date – 2023 interim dividend, ordinary shares and ADRs
4 August
*
Record date – 2023 interim dividend, ordinary shares and ADRs
*
Please note that these dates are provisional and subject to change. The 2023 interim dividend payment dates in respect of ordinary shares and ADRs will be confirmed by the
Company in its 2023 Interim Results announcement, currently scheduled for release on 27 July 2023.
Dividend history
The following tables set out dividends paid (or proposed) in relation to the three financial years 2020–2022.
ORDINARY SHARES
Pence per PLC
ordinary share
Euro equivalent
(€)
Payment date
Final dividend for 2022**
38.9
***
7 June 2023
Interim dividend for 2022
15.7
0.186
8 September 2022
Final dividend for 2021
35.5
0.419
7 June 2022
Interim dividend for 2021
14.3
0.167
8 September 2021
Final dividend for 2020
33.40
0.387
3 June 2021
Interim dividend for 2020
13.60
0.151
2 September 2020
**
Proposed dividend, to be submitted for approval at the Annual General Meeting of RELX PLC in April 2023.
*** Payment will be determined using the appropriate £/€ exchange rate on 23 May 2023.
ADRS
$ per PLC ADR
Payment date
Final dividend for 2022**
****
12 June 2023
Interim dividend for 2022
0.1801880
13 September 2022
Final dividend for 2021
0.4442820
10 June 2022
Interim dividend for 2021
01965820
13 September 2021
Final dividend for 2020
0.4706720
8 June 2021
Interim dividend for 2020
0.18081
8 September 2020
****Payment will be determined using the appropriate £/US$ exchange rate on 7 June 2023.
