LPL Financial : Sustainability Report (2024 sustainability report)

Published: 2025-05-01 09:46:16 ET LPLA

Published on 05/01/2025 at 09:46

‌Corporate Sustainability Report

People & Culture

People & Culture 2024 Highlights

Employee Benefits

Culture and Inclusion

Employee Resource Groups

Employee and Advisor Training

Advisor Engagement

Societal Impact

Societal Impact 2024 Highlights

Sustainable Investing

Financial Inclusion

Service Affordability

LPL Foundation and Community Impact

Environmental Stewardship

Environmental Stewardship 2024 Highlights

Climate Action

Appendix

I: Governance

II: ESG Consolidated Data Sheet

III: TCFD Index

IV: GRI Content Index

SASB Content Index

‌Contents

Introduction 1

About The 2024 Sustainability Report 2

Words from Our CEO 3

About LPL Financial & Our Vision 4

Bringing Our Vision to Life 5

Sustainability & Transparency 6

Sustainability Overview & Vision 7

Our Strategic Pillars 8

Stakeholder Engagement 9

Sustainability Governance 10

LPL at a Glance 11

Awards and Recognition 12

Responsible Business 13

Responsible Business 2024 Highlights 14

Government Relations 15

Business Ethics and Compliance 16

Managing Bribery, Corruption, and Money Laundering 17

Product Risk 18

Consumer and Advisor Protection 19

Enterprise Risk Management 20

Cybersecurity and Data Privacy 21

Responsible Sourcing 23

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‌About the 2024

Reporting guidelines and content

This report was prepared using reporting industry standard frameworks and guidance documents, including the Global

Report boundaries

This report describes our approach to managing our most material ESG topics, offering both qualitative and quantitative disclosures.

Sustainability

Report

LPL's 2024 Sustainability Report focuses on environmental, social, and governance (ESG) topics, which are informed through stakeholder perspectives. We continue to advance our sustainability strategy and programs by leveraging our pillars that align to our business:

Responsible business

People and culture

Societal impact

Environmental stewardship

Reporting Initiative (GRI) Sustainability Reporting Standards and the Sustainability Accounting Standards Board (SASB) sector standards for Asset Management and Custody, Consumer Finance, and Investment Banking and Brokerage. A mapping of our disclosures

to both GRI and SASB frameworks is outlined in Appendix IV of this report. Throughout this report, we highlight the key areas where we believe both our competencies as a firm and our sustainability initiatives can help advance the United Nations Sustainable Development Goals (SDGs).

When we use the terms "LPL Financial," "LPL," "we," "us," "our," and the "company," we mean LPL Financial Holdings Inc., a Delaware corporation, and its consolidated subsidiaries taken as a whole, unless the context indicates otherwise. The intended audience

of this communication is the general public, and the purpose is to communicate the business operations of LPL Financial. Throughout this communication, the terms "financial advisors" and "advisors" include registered representatives and investment advisor representatives affiliated with LPL Financial LLC or LPL Enterprise, LLC, which are each a SEC-registered broker-dealer and investment advisor.

When we refer to "materiality" and other similar terms, we refer to it specifically in the context of ESG and sustainability topics; we are not employing these terms as they are used under securities laws or any other laws of the United States or any other jurisdiction, nor are we using them in the context of financial statements and financial reporting. Our focus is on addressing ESG and sustainability matters relevant to our role as an independent broker-dealer, investment advisory firm, and custodian.

In early 2023, we conducted a refresh of our ESG materiality assessment, the results of which were used to define the content for this report.

This report and the data presented cover January 1, 2024, through December 31, 2024. For additional information, please visit LPL's Social Responsibility page.

Reporting uncertainties

For more information about LPL Financial, please see our other reports

2024 Annual Report

2025 Proxy Statement Human Rights Policy Vendor Code of Conduct Privacy Policy

Nonfinancial information is subject to measurement uncertainties resulting from limitations inherent in the nature and the methods used for determining such data. Various measurement techniques can result in materially different measurements, and the precision of different measurement techniques may also vary.

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‌Words from our CEO

Rich Steinmeier

Our vision at LPL is clear:

we aspire to be the best firm in wealth management. For us to meet that bold goal, and to drive the success of a rapidly growing advisor and employee base, we must create a company that is sustainable for a range

of stakeholders.

Sustainable for advisors

It is our responsibility to provide our advisors and institutions with the tools and support they need, so they can focus on delivering personalized financial advice to millions of Americans. As a trusted partner, it is imperative we run a responsible business and put governance at the core of our operations. Our data security, risk management, legal responsibilities, and compliance operations remain front of mind with everything we do, so advisors and their clients can feel secure, well-informed, and protected.

Sustainable for employees

To support our advisors, and institutions, and execute on our strategic goals, it takes a team of highly motivated employees focused on client service. Our corporate culture and strong values that guide how we work are foundational to the success of our company and achieving our goals. We are focused on hiring, retaining, and developing the best talent in the industry to ensure the sustainability of our business.

We are committed to being a great place to work, and fostering a respectful, rewarding workplace in which all our employees are positioned to succeed.

Sustainable for shareholders

From the volunteer work we do in our communities across the country, to the donations our advisors and employees contribute to meaningful causes, to minimizing the environmental footprint we leave behind, we take our societal and environmental impact to heart. We recognize the responsibility we have outside our four walls, and we continue to look for meaningful ways to create a brand our shareholders continue to be proud to support.

You can learn more detail about the various ways LPL approaches each of these topics throughout this report, which is outlined by our sustainable strategic pillars:

Responsible Business

People and Culture

Societal Impact

Environmental Stewardship

In summary, we will continue to inspire employees to elevate their performance on our journey to be the best firm in wealth management. By doing so, we can preserve a company that supports the needs of advisors and institutions, and the clients they serve, that will continue to thrive long after we are gone.

Sincerely,

Rich Steinmeier CEO, LPL Financial

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‌About LPL and Our Vision

Founded on a vision that took shape more than three decades ago, LPL Financial has become a cornerstone in supporting nearly 29,000 financial advisors, and the wealth management practices of approximately 1,200 financial institutions, who serve approximately 6 million Americans.

Driven by the belief that financial advisors should have autonomy to shape their businesses and guide clients toward financial security, our founders laid the groundwork for a firm that places the advisor at the forefront of everything we do. Today, we remain steadfast

in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial advisor.

At our core, we provide financial advisors with the freedom they deserve to choose the business model, services, and technology resources that allow them to run a thriving business. Independence extends beyond operations to encompass the management of client relationships, recognizing advisors' unique understanding of

their clients' needs. For more information regarding our business operations and financial results, please visit the About LPLand Investor Relations pages on our website.

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Disclaimer

LPL Financial Holdings Inc. published this content on May 01, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2025 at 13:45 UTC.