2023
Annual Report
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: regulatory and other changes regarding the collection or
use of personal 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 the payment model for RELX scientific, technical and medical research products; competitive factors in the
industries in which RELX operates and demand for RELX products and services; inability to realise the future anticipated benefits of acquisitions; compromises of
RELX cyber security systems or other unauthorised access to our databases; changes in economic cycles, communicable disease epidemics or pandemics, severe
weather events, natural disasters and terrorism; failure of third parties to whom RELX has outsourced business activities; significant failure or interruption of RELX
systems; inability to retain high-quality employees and management; changes in tax laws and uncertainty in their application; exchange rate fluctuations; adverse
market conditions or downgrades to the credit ratings of our debt; changes in the market values of defined benefit pension scheme assets and in the market-related
assumptions used to value scheme liabilities; breaches of generally accepted ethical business standards or applicable laws; 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 Annual Report. 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 Annual Report or to reflect the occurrence of unanticipated events.
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 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 2023
1
Strategic report
Overview
2
2023 highlights
3
Chair’s statement
4
Chief Executive Officer’s report
5
RELX business overview
Market segments
14
Risk
20
Scientific, Technical & Medical
26
Legal
32
Exhibitions
Corporate responsibility
38
Introduction
45
Our unique contributions
50
CR governance
54
People
60
Customers
65
Community
69
Supply chain
73
Environment
82
CR disclosure standards
Financial review
92
Chief Financial Officer’s report
98
Principal and emerging risks
Governance
Governance
108 Board Directors
110
RELX senior executives
112
Chair’s introduction to corporate governance
113
Corporate governance review
125
Report of the Nominations Committee
128
Directors’ remuneration report
149
Report of the Audit Committee
153 Directors’ report
Financial statements
and shareholder information
Financial statements
158 Independent auditor’s report
166
Consolidated financial statements
214
RELX PLC company only financial statements
220
Summary consolidated financial information in US dollars
221
Summary consolidated financial information in euros
222 Alternative performance measures
Shareholder information
232 Shareholder information
235
2024 financial calendar
RELX
Annual Report 2023
Contents
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
To download the full Annual Report and for
further information about our Company
visit
relx.com
2
RELX
Annual Report 2023 | Overview
RELX financial summary
ADJUSTED FIGURES
2022
£m
2023
£m
Change
Change at
constant
currency
Change
underlying
For the year ended 31 December
Revenue
8,553
9,161
+7%
+7%
+8%
EBITDA
3,174
3,544
Operating profit
2,683
3,030
+13%
+12%
+13%
Operating margin
31.4%
33.1%
Profit before tax
2,489
2,716
Net profit attributable to shareholders
1,961
2,156
Cash flow
2,709
2,962
Cash flow conversion
101%
98%
Return on invested capital
12.5%
14.0%
Earnings per share
102.2p
114.0p
+12%
+11%
DIVIDEND
2022
2023
Change
For the year ended 31 December
Ordinary dividend per share
54.6p
58.8p
+8%
REPORTED FIGURES
2022
£m
2023
£m
Change
For the year ended 31 December
Revenue
8,553
9,161
+7%
Operating profit
2,323
2,682
+15%
Profit before tax
2,113
2,295
Net profit attributable to shareholders
1,634
1,781
Net margin
19.1%
19.4%
Cash generated from operations
3,061
3,370
Net debt
6,604
6,446
Earnings per share
85.2p
94.1p
+10%
RELX corporate responsibility summary
REPORTED FIGURES
2022
2023
Change
For the year ended 31 December
Percentage of women senior leaders
31%
31%
Market value of cash and in-kind donations (£m)
22.6
23.4
+4%
Number of supplier code signatories
4,467
5,322
+19%
Scope 1 + Scope 2 (location-based) emissions (tCO
2
e)
42,481
40,933
-4%
Waste sent to landfill (t)
73
45
-38%
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 222 to
230. Underlying growth rates are calculated at constant currency, 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 2022 full-year average and hedge
exchange rates.
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’.
2023 highlights
RELX financial highlights
§
Revenue £9,161m (£8,553m), underlying growth +8%
§
Adjusted operating profit £3,030m (£2,683m), underlying growth +13%
§
Adjusted EPS 114.0p (102.2p), constant currency growth +11%
§
Reported operating profit £2,682m (£2,323m)
§
Reported EPS 94.1p (85.2p)
§
Proposed full-year dividend 58.8p (54.6p) +8%
§
Net debt/EBITDA 2.0x (2.1x); adjusted cash flow conversion 98% (101%)
Prior year comparatives are represented in brackets.
RELX
Annual Report 2023
3
was appointed a Non-Executive Director. Alistair served as Chief
Executive of Hays from 2007 until 2023, and Chief Executive of Xansa
from 2002 to 2007. He was formerly a Non-Executive Director of Just
Eat and 3i. Suzanne Wood became Senior Independent Director and
Robert MacLeod became Chair of the Remuneration Committee.
Marike van Lier Lels, who has been on the Board since 2015, will be
stepping down as a Non-Executive Director after the Annual General
Meeting. Bianca Tetteroo will become a Non-Executive Director from
July 2024, subject to her election by shareholders at the Annual
General Meeting. Bianca is Chief Executive and Chair of the Executive
Board of Achmea, a leading Netherlands-based financial services
organisation, a role she has held since 2021. She previously spent
13 years with Fortis Group.
I would like to thank Wolfhart and Marike for their support and
advice. I am delighted to welcome Alistair to the Board and look
forward to Bianca joining us.
Remuneration Policy
In 2023, following an in-depth review, the Board presented
an updated Directors’ Remuneration Policy for shareholder
consideration. The updated policy received strong support
from shareholders.
Governance
RELX maintains a strong corporate governance framework and
believes doing so is critical to achieving long-term, sustainable
growth. Corporate Responsibility remains a priority for RELX. During
the year, the Board reviewed the company’s Corporate Responsibility
activities, including progress on RELX’s unique contributions to
society as well as its Corporate Responsibility governance, people,
customers, community, supply chain and environment.
Our performance was again recognised by external agencies: RELX
achieved a AAA MSCI Environmental, Social and Governance rating
for an eighth consecutive year; was ranked second in our sector by
Sustainalytics; maintained fifth place in the Responsibility100 Index,
and was a constituent of the Bloomberg Gender Equality Index for
the fifth consecutive year.
On behalf of the Board, I would like to thank RELX employees for their
many contributions throughout 2023. I am confident that with their
knowledge and commitment, RELX will continue to be successful
in the year ahead.
Paul Walker
Chair
Chair’s statement
RELX had another year of strong growth
in 2023 as it continues to execute well on its
strategic priorities. As RELX has continued
to execute its strategy, it has also delivered
strong shareholder returns and received
external recognition for its Corporate
Responsibility performance.
Paul Walker, Chair
RELX had another year of strong growth in 2023 as the company
continues to execute well on its strategic priorities. I am particularly
pleased that all business areas have performed strongly.
Underlying revenue growth was 8%, with underlying adjusted
operating profit growth of 13%. Adjusted earnings per share grew
11%
at constant currency to 114.0p (102.2p). Reported earnings per
share were 94.1p (85.2p). As RELX has continued to execute its
strategy, it has also delivered strong shareholder returns. In the
decade to the end of 2023, RELX has delivered Total Shareholder
Returns of 347%, compared with 67% for the FTSE100 over the
same period.
Culture and Employee Engagement
RELX places significant emphasis on the way we do business and
on acting with integrity and in accordance with the highest ethical
standards. Our commitment is set out in our statement on Purpose,
strategy, values and culture on page 116 of this report and we strive
to ensure decisions taken are aligned with RELX’s values. We
also believe maintaining high levels of employee engagement
is an important driver of growth in the business. The Board draws
insights about culture and employee engagement from a range
of sources including annual employee opinion surveys and the
activities of our dedicated Non-Executive Director responsible
for employee engagement, which facilitate a direct link with the
Board and allow it to further understand and consider the views
of employees. Employee engagement scores from the annual
survey remained at very high levels.
Dividends
In recognition of our strong performance and outlook for the
company we are proposing an 8% increase in the full year dividend
of 58.8p (54.6p).
Balance sheet
Net debt was £6.4bn at 31 December 2023. Net debt/EBITDA
including pensions was 2.0x, compared with 2.1x in 2022.
Capital expenditure represented 5% of revenues.
Share buybacks
We deployed £800m on share buybacks in 2023. In recognition of
our strong financial position and cash flow we intend to deploy a
total of £1,000m on share buybacks in 2024, of which £150m has
already been completed.
The Board
At the 2023 Annual General Meeting, Wolfhart Hauser, the Senior
Independent Director and Chair of the Remuneration Committee,
retired from the Board having served since 2013, and Alistair Cox
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
4
RELX
Annual Report 2023 | Overview
Chief Executive Officer’s report
RELX delivered strong revenue and profit
growth in 2023, driven by the ongoing shift in
business mix towards higher growth
information-based analytics and decision
tools that deliver enhanced value to our
customers across market segments
Erik Engstrom, Chief Executive Officer
2023 progress
RELX delivered strong revenue and profit growth in 2023,
driven by the ongoing shift in business mix towards higher
growth information-based analytics and decision tools
that deliver enhanced value to our customers across
market segments.
We have been able to develop and deploy these tools across
the company for well over a decade by leveraging deep customer
understanding to combine leading content and data sets with
powerful technologies. We are confident that our ability to
leverage artificial intelligence and other technologies, as they
evolve, will continue to be an important driver of customer
value and growth in our business for many years to come.
Electronic revenue, representing 83% of the total grew 7%,
with strong growth in face-to-face activity more than offsetting
the print decline, bringing the overall group underlying revenue
growth rate to 8%. Underlying adjusted operating profit grew
13%. Our strategy of driving continuous process innovation to
manage cost growth below revenue growth, together with the
recovery in face-to-face activity, resulted in an improvement in
the group adjusted operating margin to 33.1% compared with
31.4% in 2022.
Corporate responsibility
We performed well on our Corporate Responsibility priorities in
2023, on our unique contributions to society, and on our key
metrics. Our unique contributions are where we make a positive
impact on society in the conduct of our business, encompassing
protection of society, advancing science and health, promotion of
the rule of law and access to justice, and fostering communities.
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 contributing to a 21% increase in content.
We further improved on our key Corporate Responsibility
performance metrics. We advanced inclusion and belonging,
including through our Women in Tech Mentoring programme;
rolled-out the RELX Responsible Artificial Intelligence Principles
across the business; increased the number of suppliers that
signed our Supplier Code of Conduct; and continued to ensure all
of our electricity came from renewable sources and renewable
energy certificates, while reducing our Scope 1 and 2 carbon
emissions.
2024 Outlook
We continue to see positive momentum across the group, and we
expect another year of strong underlying growth in revenue and
adjusted operating profit, as well as strong growth in adjusted
earnings per share on a constant currency basis.
Erik Engstrom
Chief Executive Officer
5
RELX
Annual Report 2023
RELX business overview
RELX strategy
Our strategic direction is unchanged. Our objective is to help our customers make better decisions, get better results and be more
productive. We do this by leveraging deep customer understanding to combine leading content and data sets with powerful technologies
in global platforms to build increasingly sophisticated information-based analytics and decision tools that deliver enhanced value to
professional and business customers across market segments.
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 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.
Our 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.
RELX business model
RELX is a global provider of information-based analytics and decision tools for professional and business 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.
§
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
§
Continue on improved
long-term growth profile
2023 Revenue £9,161m
Format
Geographical market
Type
Print
5%
Face-to-face
12%
Electronic
83%
Rest of world
20%
Europe
21%
North America
59%
Transactional*
46%
Subscription
54%
* Includes long-term contracts with volumetric elements
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
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
128 to 148 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 39 to 90 in the Corporate Responsibility section.
6
RELX
Annual Report 2023 | Overview
2023
2019
2021
2022
2020
2023
2019
2021
2022
2020
2023
2019
2021
2022
2020
3,202
3,457
78
59
50
3,670
Percentage of women managers
Total number of supplier code of conduct signatories
Scope 1 + Scope 2 (location-based) emissions (tCO
2
e 1,000s)
42
44%
44%
42%
42%
45%
4,467
5,322
41
People
Socially responsible suppliers
Emissions
2023
2019
2021
2022
2020
+4%
-9%
+7%
Percentages represent underlying growth
£bn
10
0
+9%
+8%
Revenue
2023
2019
2021
2022
2020
+5%
-18%
+13%
Percentages represent underlying growth
£bn
10
0
+15%
+13%
Adjusted operating profit
2023
2019
2021
2022
2020
13.6%
10.8%
11.9%
12.5%
14.0%
Return on invested capital
2023
2019
2021
2022
2020
96%
97%
101%
101%
98%
Adjusted cash flow conversion
2023
2019
2021
2022
2020
+7%
-15%
Percentages represent constant
currency growth
Pence
120
0
+17%
+10%
+11%
Adjusted earnings per share
2023
2019
2021
2022
2020
+9%
+3%
+6%
Percentages represent growth
Pence
120
0
+10%
+8%
Dividend per share
2023
2019
2021
2022
2020
37.3%
36.1%
37.2%
37.1%
38.7%
EBITDA margin
2023
2019
2021
2022
2020
31.6%
29.2%
30.5%
31.4%
33.1%
Adjusted operating margin
Financial KPIs
Corporate responsibility KPIs
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
2023
2020
2019
75%
16%
9%
86%
7%
7%
83%
12%
5%
83%
11%
6%
87%
5%
8%
72%
15%
13%
Revenue by format
7
RELX
Annual Report 2023 | RELX business overview
Pro forma last 12-month revenues for December 2023 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 and
Electronic Reference
STM Print
Law Firms &
Corporate Legal
Government & Academic
News & Business
Legal Print
Exhibitions
12%
Risk
34%
Legal
20%
STM
34%
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 36,000 people over 40% of whom
are in North America.
RELX revenue by segment
Financial summary by market segment
Market
position
2023
revenue
£m
Change
underlying
2023
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
3,133
+8%
1,165
+9%
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
Global #1
3,062
+4%
1,165
+4%
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
1,851
+6%
393
+8%
Exhibitions
combines industry expertise with data and digital
tools to help customers connect face-to-face and digitally, learn
about markets, source products and complete transactions
Global #2
1,115
+30%
319
+100%
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 222
to 230. Underlying growth rates are calculated at constant currency, 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 2022 full-year average and hedge
exchange rates.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
8
RELX
Annual Report 2023 | 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
algorithms such as machine learning and natural language
processing to provide professional customers with the
actionable insights they need to do their jobs, for example,
in the form of extractive AI insights to help them make speedy
and accurate decisions, or generative AI output to reduce or
automate their workload. 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.
Harnessing technology
across RELX
Around 11,000 technologists, over half of whom are software engineers,
work at RELX. Annually, the company spends $1.7bn 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.
HOW RELX DELIVERS INSIGHTS AND ANALYTICS TO CUSTOMERS
§
Over 40 petabytes of data across
RELX
§
Tens of billions of public records
§
Billions of device and asset
identities
§
More than 90m scientific
publication records
§
More than 138bn legal and news
documents and records
§
Public records
§
Contributory
§
Digital
§
Machine
generated
§
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
§
Platforms to facilitate extractive AI and generative AI
§
Patented algorithms
§
Predictive modelling
§
Machine learning
and artificial
intelligence
§
Large language
models
§
Modular product
suites
§
Flexible delivery
platforms
Unstructured and structured content
Big data platforms
Analysis
applications
Customer single
point of execution
Machine to
machine
Machine to
human
Real-time
API services
Batch
services
Profile & Clean
Standardise
Relate &
Analyse
Decreasing content volume
Increasing content quality
Data
Sources
Delivery
method
9
RELX
Annual Report 2023 | RELX business overview
The US property insurance market has seen
record underwriting losses in recent years,
and the need to capture and analyse
ground-level data to understand, segment and
manage risk has never been greater. By using
the best of today’s technology, our AI-driven
solution unlocks new opportunities for
property insurers to deliver world-class
experiences to policyholders while acting as
a force multiplier, enabling underwriters to
capture more comprehensive data while acting
on that data more efficiently than before.
Cole Winans
VP & GM Home Insurance, LexisNexis Risk Solutions
About Total Property Understanding:
The LexisNexis Total Property Understanding solution
provides US home insurance companies with a comprehensive
solution to identify risk across their books of business while
capturing interior, exterior, and aerial data about those risks
to make more informed underwriting decisions. Core to the
solution is LexisNexis Flyreel, an AI-driven property survey
solution that guides home and business owners through their
own property assessment.
Property insurers had been experiencing
significant claims losses due to a rise
in catastrophic events and increasing costs of
repairing damages. These claims losses have
outpaced the rise in insurance premiums.
When underwriting a new policy, insurance companies rely
on a manual and cost intensive process and in attempts to
manage their profit, they’re selective on where they perform
inspections. Between 10 to 20 percent of homes are typically
inspected when underwriting a new policy with even fewer being
inspected when a policy is renewed. These inspections don’t
always capture the property characteristics that insurers need
to properly assess risk. This means insurance companies often
don’t have a good understanding of the risk across their book of
business. LexisNexis Risk Solutions is addressing this challenge
through the combination of data and artificial intelligence.
LexisNexis Risk Solutions aggregates significant intelligence
on a property’s building characteristics, claims history and
ownership. It supplements this with aerial imagery, which
helps it better understand a property’s footprint and condition,
particularly the roof condition, which is often an area of large
claims losses. With the acquisition of Flyreel, it has added a
detailed understanding of risks within the property and on the
home’s exterior. Leveraging advanced analytics, it can now
score the risk of a property for an insurance company as it is
underwriting a new policy, as well as help them analyse risks
within their existing book of business.
Total Property Understanding is an end-to-end AI powered
workflow that enables insurance companies to select the
properties they should invest time and resources into
inspecting. It captures data on these properties at scale with
an artificial intelligence assistant that provides the insured with
step-by-step instructions through a friendly and intuitive user
experience, guiding them through a process of capturing video
and imagery of their property for underwriting analysis.
The AI amplifies the abilities of the underwriters by automatically
flagging risks as well as potential hazards in their inspections,
enabling them to act on this data more efficiently at scale.
LexisNexis Risk Solutions has developed proprietary computer
vision models that automatically detect over 200 property
attributes to improve the underwriting process and risk
management altogether. The mobile AI assistant guides
homeowners through comprehensive scans of the property
with advanced computer vision capabilities. The AI automatically
identifies materials, condition, risks and hazards. It even has the
capability of servicing risk and recall information for appliances
that often cause losses like hot water heaters and refrigerators,
washing machines, as well as recalled circuit breakers that can
lead to deadly house fires. On the exterior, it identifies trees that
pose a risk to the roof, analyses the condition of shingles to
determine whether they’re curling and could lead to a leak.
The homeowner’s experience when using the mobile AI assistant
is simple and intuitive, with a 94 percent homeowner satisfaction
rate and above 70 percent completion for customers who are
adopting our best practices. While it is not a market requirement,
LexisNexis Risk Solutions also took the initiative to develop its
own proprietary and patented method for face blurring in case
individuals and children appear in the footage.
94%
Homeowner satisfaction rate when using the mobile
AI assistant
Harnessing technology:
LexisNexis Total Property Understanding
An AI-driven property intelligence solution that enables US home
insurance companies to better manage and evaluate risk.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
10
RELX
Annual Report 2023 | Overview
This is a moment unlike any we’ve seen in the
legal industry, delivering generative AI that
will safely and securely accelerate our
customers’ success. Lexis+ AI gives legal
professionals a significant competitive
advantage by driving improved speed,
productivity, and work quality gains
for law firms and their clients.
Sean Fitzpatrick
CEO of LexisNexis North America, UK, and Ireland
About Lexis+ AI:
Lexis+ AI is a generative AI solution designed to transform legal
work, featuring conversational search, intelligent legal drafting,
insightful summarisation, and document upload and analysis
capabilities. The solution is supported by state-of-the-art
encryption and privacy technology to keep sensitive data secure.
Lexis+ AI delivers trusted and comprehensive legal results with
linked hallucination-free legal citations that combine the power
of generative AI with proprietary LexisNexis search technology,
Shepard’s Citations functionality, and authoritative content.
Lexis+ AI answers are grounded in one of the world’s largest
repositories of accurate and exclusive legal content from
LexisNexis, minimising the risk of invented content
or hallucinations, and checking all citations against Shepard’s,
a powerful legal citation tool to ensure citation validation.
Lexis+ AI has been developed with commercial preview users
from leading global law firms, corporate legal departments,
US small law firms, and US courts, and the company plans to
expand its commercial preview program to legal professionals
in Canada, the UK, France and Australia in 2024.
LexisNexis Legal & Professional has been a
long-time leader in deploying AI technologies
to the legal market to improve productivity,
efficiency, and the overall business and
practice of law.
LexisNexis Legal & Professional’s first-hand experience
using AI language models dates back to 2018 with Google BERT.
Over the past ten years, the company has spent over $1bn
investing in technology. Today, LexisNexis is working directly
with Large Language Model (LLM) creators and trusted cloud
providers to develop faster, more accurate, transparent,
and secure generative AI offerings.
Traditional Large Language Models have often struggled with
legal use cases. The content supporting the models can be
dated, lack citation authority, and be prone to factual and
conceptual hallucinations.
Lexis+ AI excels at transforming legal work because it uses
subject matter experts – attorneys – to fine-tune models for
specific legal use cases; prompt engineering that analyses a
customer’s question and provides additional instructions to
improve the model; and integrates vast amounts of caselaw,
legal data, news and other content capabilities using
Retrieval-Augmented Generation (RAG) to extend the capability
of a model. Thanks to its high-quality content and pristine data,
LexisNexis Legal & Professional is uniquely positioned to
partner with LLM creators to jointly develop models for
legal industry use.
As such, the company has adopted a flexible, multi-model
approach, using the best model for the best use case. This
approach includes Anthropic’s Claude 2, hosted on Amazon
Bedrock from Amazon Web Services (AWS), OpenAI’s GPT-4
hosted on Microsoft Azure, and others.
Customers indicate that security and privacy are among the
highest barriers to generative AI adoption. Lexis+ AI offers
industry-leading data security and attention to privacy. LexisNexis
leverages ‘privacy by design’ practices in Lexis+ AI to ensure that
customer activity and model interactions are limited to the
individual and are not used to train the model.
LexisNexis is responsibly developing legal AI solutions with
human oversight. The deployment of Lexis+ AI is guided by the
RELX Responsible AI Principles, considering the real-world
impact of its solutions on people and taking action to prevent
the creation or reinforcement of unfair bias.
New solution delivers linked hallucination-free legal
citations and provides the highest levels of security
and privacy
Harnessing technology:
Lexis+ AI
A generative AI solution designed to transform legal work.
11
RELX
Annual Report 2023 | RELX business overview
About Scopus AI:
Scopus AI is a next-generation tool that combines Elsevier’s
Scopus, an expertly curated abstract and citation database
of peer reviewed research, with responsible AI to help
researchers discover global knowledge in all fields. Scopus
brings together content from over 29,000 journals from more
than 7,000 publishers worldwide, with over 2.4bn citations,
and over 19m research author profiles.
Researchers, especially those early in
their careers and those working across
disciplines face significant challenges and
complexity in their daily work, including an
ever-growing volume of data, prevalent
misinformation and increasing workloads.
Scopus AI helps them understand and explore a particular topic
quickly, make connections across disciplines and collaborate
with others to ensure the research has greater academic and
societal impact.
Large Language Models (LLMs) have captured the world’s
imagination with their ability to generate content, but they
also have shortcomings such as lack of transparency and
hallucinations which can undermine trust in the results delivered.
Scopus AI provides easy to read digestible summaries, with
links to research papers and the ability to go deeper in seconds.
Notably, our advanced prompt engineering limits the risk of
hallucinations by grounding content generation in trusted and
verified Scopus content, the world’s largest data base of curated
scientific literature.
Content is rigorously vetted and selected by an independent
review board of 17 world-renowned scientists, researchers
and librarians who represent the major scientific disciplines.
Scopus AI uses OpenAI’s GPT and other LLM technology in
combination with Elsevier’s own technologies. It uses fine-tuned
mini language models for vectorising abstracts and is hosted on
Azure. Its front end is built with a mix of JavaScript and CSS,
while Python, Java, Elasticsearch and Langchain are utilised
in the backend.
Customer-driven innovation is core to Elsevier’s research and
product development to ensure our solutions help them achieve
their goals. Ahead of its full launch in January 2024, Scopus AI
has been tested by and benefits from the feedback of thousands
of researchers globally. Their feedback has reinforced that
researchers want trustworthy, cited information that is relevant
and highly personalised.
Researchers need to understand unfamiliar
topics, often with little time to do so. We are
combining generative AI with our trusted
and vetted content, data and domain expertise
to help them in their critical work. Elsevier
has been committed to working with the
community and using AI responsibly for many
years, from creating quality data-led insights
to support decision making in research, to
helping our customers assess the risks of
potential new drug treatments. This is an
important next step as we build more
sophisticated solutions that will support
our customers in the future.
Maxim Khan
Senior Vice President of Analytics Products
and Data Platform, Elsevier
16,000
Scopus AI has been tested with more than 16,000
researchers during its development
Harnessing technology:
Scopus AI
Providing deeper insights faster for the research community.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
12
RELX
Annual Report 2023
Market
segments
In this section
14
Risk
20
Scientific, Technical & Medical
26
Legal
32
Exhibitions
13
RELX
Annual Report 2023
Market segments
Overview
Corporate Responsibility
Financial review
Governance
Financial statements
and shareholder information
14
RELX
Annual Report 2023 | 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,
São Paulo in Latin America and Beijing and Singapore in Asia
Pacific. It has 11,100 employees and serves customers in more
than 180 countries.
Revenues for the year ended 31 December 2023 were £3,133m,
compared with £2,909m in 2022 and £2,474m in 2021. In 2023, 79%
of revenue came from North America, 14% from Europe and the
remaining 7% from the rest of the world. Subscription revenue
represented 40% of the total and transactional revenues,
including long-term contracts with volumetric elements,
represented 60%.
LexisNexis Risk Solutions comprises the following market-facing
industry/sector verticals: Business Services, Insurance,
Specialised Industry Data Services 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 today’s greatest societal
challenges, including identifying fraud, cybercrime, bribery,
corruption, human trafficking, economic sanctions, global
terrorism and abusive practices. The combination of our
proprietary insights and advanced analytics powered by Artificial
Intelligence (AI) and Machine Learning (ML) delivers actionable
intelligence to customers to help improve decisions and
operational efficiency.
The cornerstone of our growth strategy in Business Services is
maximising penetration in our current markets across our
customers’ workflows and through international expansion.
In 2023, Business Services further established itself as a platform
provider with industry analyst recognition for both its Dynamic
Decision Platform and RiskNarrative platform. Across solutions
we were recognised as leaders in 16 industry analyst reports,
including Forrester Research for both Identify Verification and
Fraud Detection Management, Chartis Research for Payment
Risk Solutions, KuppingerCole for Fraud Reduction Intelligence
Platforms and Juniper Research for Financial Crime Prevention.
Business Services has introduced a number of product
enhancements and launches, including a cloud-enabled version
of its Firco Continuity transaction screening solution and new
behavioural biometrics functionality within its global fraud and
identity portfolio following the completion of its BehavioSec
integration. Business Services UK enhanced its FraudPoint
solution to provide more robust protection from increasingly
prevalent risks such as synthetic identity fraud. It also enhanced
its IDU identity verification product with Remote Check to enable
seamless digital onboarding across industries.
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.
§
We do business with 92% of the Fortune 100;
84% of the Fortune 500; nine of the world’s top
ten banks and 21 of the world’s top 25 insurers
§
The LexisNexis Digital Identity Network
analyses more than 300m transactions daily
and more than 100bn transactions annually
§
More than 180,000 websites and mobile
applications around the world implement the
LexisNexis Digital Identity Network
§
Our solutions detected 579m human initiated
attacks and 2.1bn automated bot attacks for
customers in H1 2023
§
We delivered more than 500m US consumer
credit assessments in 2023
§
86% of new US auto insurance policies issued to
consumers in 2023 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 important government systems, maintain
program integrity, reduce risk and fight crime
§
ICIS has been providing pricing data and insight
on the recycled plastics market for over 15 years,
helping customers architect a sustainable
future in the transition to a circular economy
§
Cirium powers the data and analytics needs of
the majority of the top 100 airline groups,
representing over 90% of the world’s 2023
airline passenger traffic, and four out of five of
the Big Five Tech Firms. It tracks 99% of flights
globally in real time
Risk
15
RELX
Annual Report 2023 | Risk
Insurance
, 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 seamlessly integrate into
an insurer’s workflow and 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.
Insurance solutions provide comprehensive interior, exterior and
aerial data for home insurers and offers AI-enabled insights
to fast-track decision making for new business or renewal
underwriting and claims processes. Life insurers use predictive
models, public and motor vehicle records to better understand
mortality risk and make life insurance more accessible. In 2023
we acquired Human API, a provider of consumer-driven health
data via a proprietary platform, enabling more efficient
underwriting processes for life insurers.
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. These solutions include: ICIS, an independent
source of data and intelligence for the global commodities and
chemicals 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.
Government,
representing just over 5% of revenue, has helped
US agencies shift from identity verification to authentication
to confront fraud, waste, and abuse. 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 allows recipients fast and secure access to critical government
benefit programmes through 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: financial crime compliance; business risk;
fraud and identity solutions; due diligence requirements
surrounding customer enrolment; security and privacy
considerations; insurance underwriting transactions; insurance
acquisition, retention and claims handling; data and advanced
analytics for the banking, commodities and chemicals, aviation
and human resources sectors; and tax and public benefits fraud.
Expansion of mobile and digital use cases and the growing mix
of consumer payment options continue to drive opportunity for
Business Services solutions that 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,
compliance and consumer and business credit programmes.
Financial Crime Compliance Portfolio
Fraud and Identity Management Portfolio
Our integrated financial crime compliance
offerings deliver comprehensive solutions
for addressing financial crime risk. Business
Services released the latest version of its
cloud-based transaction screening tool,
Firco Continuity, with capabilities that help
reduce false positive alerts and provide
traceable, auditable and explainable
retrospective proof to auditors and
regulators of compliance policies
We provide 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. Fraud and Identity launched
additional behavioural biometrics capabilities
in 2023 with the completed integration of
BehavioSec
Credit Portfolio
LexisNexis Claims Compass
LexisNexis Total Property Understanding
Our Credit Risk solutions use differentiated
content technology to develop more robust
consumer and business credit assessments
and drive financial inclusion. We fully
integrated ID Analytics into new versions of
our flagship credit scores, RiskView Spectrum
6.0 and RiskView Optics 6.0, and significantly
increased our fill rates for firmographic
attributes to improve performance of
BusinessPeople Link, one of our commercial
lending assessment offerings
Our data analytics platform delivers
LexisNexis Claims Datafill, VINsights,
Carrier Discovery, Claims Clarity and
LexisNexis Police Records solutions directly
into insurer workflows to improve the claims
process from first notice of loss, triage,
investigation and resolution, through recovery
Our complete property risk assessment
solution helps home insurance underwriters
more easily identify properties with risk or
coverage opportunities and survey those
priority properties using consumer-friendly,
configurable AI-driven property assessment
technology that delivers actionable insights
into the underwriting workflow
For more information
visit relx.com
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
16
RELX
Annual Report 2023 | Market segments
Electronic
99%
Print & face-to-face
Rest of world
7%
Europe
14%
North America
79%
Subscription
40%
Other transactional
Format
Geographical market
Type
1%
Transactional
60%
Long-term contracts
with volumetric elements
2023 Revenue £3,133m
effective and profitable business models in businesses such as
airlines, with a particularly strong focus on CO
2
emissions data
and ESG reporting. The rapidly changing workforce environment
is driving employers to better utilise data and analytics to attract,
retain and develop a diverse workforce which is further
accelerating growth in human resource management.
With over 7,500 federal, state and local agencies using our
services, the Government business continues its mission of
preventing fraud, fighting crime, reducing risk, and providing
citizens with immediate, equitable access to government systems.
The 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 improper payments have
increased. Data integrity and fraud prevention for businesses
and people play 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 goals are anchored in helping customers achieve
better business outcomes utilising greater insight into the risks
and opportunities associated with individuals, businesses,
devices and transactions. We provide data and decision tools to
help customers understand their markets, manage risks and
control costs. We enable this by focusing on: delivering innovative
products; expanding our more established risk management
solutions across adjacent markets; addressing international
opportunities to meet local needs; expanding our analytics
capabilities; and investing in technology to complement
organic innovation.
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.
Mounting costs from fraud schemes, anti-money laundering
programmes, fast changing sanctions, anti-bribery and
corruption enforcement, financial transparency and inclusion
initiatives, and heightened regulatory scrutiny also provide
growth opportunities. We are seeing new use cases for our
solutions emerge for corporations, e-commerce, travel, gaming/
gambling, telecommunications, trade compliance and new
alternative digital payment methods such as digital wallet
applications and Buy Now, Pay Later, particularly mule account
setup detection. Continued rapid digitalisation of emerging
markets provides growth opportunity for fraud and identity in
digital channels. We are also seeing revived demand in third-party
collections and non-prime lending.
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, improve operating cost efficiency
and address profitability challenges.
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,
this helps consumers and businesses 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
commodities and chemicals markets is led by changing trade
patterns, a drive to embrace sustainability and demand for more
sophisticated supply chain solutions to better utilise precious
resources. The recovery of the aviation industry post pandemic
has led to a focus on digital transformation, to drive more efficient,
17
RELX
Annual Report 2023 | Risk
Revenue
2023
3,133
2,909
Underlying growth
+8%
2022
£m
Adjusted operating profit
2023
1,165
1,078
Underlying growth
+9%
2022
£m
Strong fundamentals continuing to drive underlying
revenue growth
Underlying revenue growth of +8% continues to be driven by our
deeply embedded analytics and decision tools across segments.
Underlying adjusted operating profit growth was +9%, with
a small increase in adjusted operating margin after
portfolio effects.
In Business Services, which represents around 45% of
divisional revenue, growth continued to be driven by Financial
Crime Compliance and digital Fraud & Identity solutions, with
new sales strengthening in the second half of the year.
In Insurance, which represents just under 40% of divisional
revenue, strong growth reflected the further extension of
solution sets across insurance markets, continued new
sales momentum, and positive market factors.
Specialised Industry Data Services, which represents just
over 10% of divisional revenue, delivered strong growth, led
by Commodity Intelligence and Aviation.
In Government, growth continued to be driven by the
development and roll-out of analytics and decision tools.
2024 outlook
We expect continued strong underlying revenue growth with
underlying adjusted operating profit growth slightly exceeding
underlying revenue growth.
2023 financial performance
2022
£m
2023
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
2,909
3,133
+8%
0%
0%
+8%
Adjusted operating profit
1,078
1,165
+9%
-1%
0%
+8%
Business model, distribution channels and competition
We sell our products direct-to-client, priced either on a
subscription or transactional with volumetric element basis.
We also utilise a robust partner distribution channel.
Principal competitors in Business Services include data and
analytics companies such as the major credit bureaux, which
in many cases address various capabilities within each solution
offering. In Insurance, data and analytics competitors such
as Verisk sell solutions to insurance carriers but largely
address different activities to ours. Principal competitors in the
Government segment include data providers such as the major
credit bureaux. Specialised Industry Data Services competes with
a number of information providers on a service by service basis
including S&P Global Platts and Thomson Reuters as well as
a number of niche and privately owned competitors.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
18
RELX
Annual Report 2023 | Market segments
About LexisNexis
Risk Solutions:
LexisNexis Risk Solutions is a global
provider of information-based
analytics and decision tools for
professional and business customers.
It harnesses the power of data,
sophisticated analytics platforms and
technology solutions to provide
insights that help businesses and
governmental entities reduce risk and
improve decisions to benefit people
around the globe. Its LexisNexis
RiskView Credit Solutions products
enable more unbanked and
underserved consumers to gain
broader access to traditional
credit and financial products.
LexisNexis Risk Solutions:
How alternative data
unlocks the doors to
homeownership
19
RELX
Annual Report 2023 | Risk
Habitat for Humanity was founded
in 1976 and is a global nonprofit
housing organisation working in local
communities across all 50 states in the
US and in more than 70 countries.
Families in need of decent, affordable
housing apply for homeownership
with their local Habitat for Humanity.
Its homeowners help build their own
homes alongside volunteers and pay
an affordable mortgage.
Most banks assess a consumer’s lending risk by using a
traditional credit score, which relies on a consumer’s debt
repayment history and total amount of debt. A good score
is required for consumers to access mainstream financial
products and services, including home mortgages, car
loans and credit cards.
Without a strong FICO score, consumers face difficulties in
obtaining these financial services and often resort to payday
lenders and other high-interest credit sources for short-term
funds. Habitat for Humanity sought to move beyond traditional
credit scores to identify consumers it could provide loans to at
affordable rates.
LexisNexis RiskView uses non-credit events to assess a
consumer’s stability, asset profile and numerous non-
derogatory data signals, such as education history, personal
property ownership and professional licence data. It provides
lenders, such as Habitat for Humanity, an alternative method
for evaluating loan affordability and the likelihood of debt
repayment. Consequently, they can expand their customer
base safely, while consumers gain access to more affordable
and dependable credit.
Jalynnka Harris, a single mother of two working as a packing
instructor in Indianapolis, approached Habitat for Humanity
to help purchase a home for her family after repeated rent
increases for their apartment. Despite having a steady job,
no outstanding debts and a college degree, she lacked a credit
rating because she had paid for everything she owned in cash
or by cheque. Habitat for Humanity used alternative data from
LexisNexis Risk Solutions to take a holistic view of Harris’
credit risk and approved her for a mortgage of approximately
$500 per month over 20 years, which was less than her previous
rent payments.
We look more holistically at their
entire credit profile: Their ability
to pay, their willingness to partner,
versus just looking at their credit
report and saying, ‘You know
what? They don’t fit this guideline
profile that we’re trying to go by,
so we can’t help them’. Instead,
we look at how long they have been
in their job, doing their tax returns,
their ability to pay. We’re looking at
life stability.
Jennifer Brammer
Vice president for homeownership and mortgage
services, Greater Indianapolis Habitat for Humanity
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
20
RELX
Annual Report 2023 | 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, Shanghai, Chennai, Delhi, Chatswood,
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 2023 were £3,062m,
compared with £2,909m in 2022 and £2,649m in 2021. In 2023,
47% of revenue came from North America, 22% 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 segments focus on: Databases, Tools and Electronic
Reference; 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, together with Corporate Primary
Research, accounts for around 45% of STM revenues, with
Academic & Government Primary Research accounting for a
similar amount, all in electronic format. The remaining 10% of
revenues is derived from Print sales.
Databases, Tools & Electronic Reference
. Elsevier offers tools
for Academic & Government, Corporate and Health organisations
helping them to solve complex problems and make critical
decisions. Solutions include Scopus, SciVal, Pure, ClinicalKey,
ClinicalPath, Embase, Engineering Village, Interfolio, Reaxys,
SciBite, HESI, Sherpath, Shadow Health, Complete Anatomy,
Osmosis and Gravitas.
Elsevier’s research intelligence portfolio of products combines
quality, curated content with extensive data sets and responsible
AI and large language model technology to help researchers,
academic leaders, policy-makers, funders and R&D-led
corporations to generate insights, set and implement research
strategies, evaluate impact, drive innovation and make critical
decisions with confidence.
This portfolio integrates with and enhances the systems
institutions rely on, using curated and connected data,
artificial intelligence technologies, and interoperability driven
by Application Programming Interface technologies (APIs). In
2023 Elsevier announced Scopus AI, a generative AI-enhanced
research tool integrated into the Scopus platform to help
early-career academics and researchers get deeper research
insights faster, navigate and understand different disciplines
more easily and support interdisciplinary collaboration.
For corporate R&D, 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 2023 Elsevier
launched EmBiology, a research tool that draws on more than
We help researchers share knowledge,
collaborate, find funding opportunities,
make discoveries and accelerate innovation.
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.
§
We help ensure quality research accelerates
progress for society by helping validate,
improve and disseminate over 17% of the
world’s scientific articles
§
Elsevier’s over 2,900 journals published more
than 630,000 articles in 2023, from almost
3m submitted
§
233 of 234 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 21m pieces
of content from over 4,700 journals and over
46,000 e-books, and has over 20m 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 24,000 academic, industry
and government research institutions
§
Scopus is an expertly curated abstract and
citation database with content from over 29,000
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 80 countries and territories
§
Reaxys, Elsevier’s chemistry research
platform, utilises data on 275m substances,
64m reactions, with 109m documents and
40m patents
§
Sherpath, an adaptive teaching and learning
solution, provides personalised learning paths
at over 600 institutions, supporting more than
250,000 course enrolments
Scientific, Technical & Medical
21
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Annual Report 2023 | Scientific, Technical & Medical
150,000 clinical trials and includes 1.49m biological entities and
over 18.6m biological relationships extracted from literature to
help researchers to gain a rapid understanding of disease biology
and focus on critical evidence.
In health, Elsevier’s clinical solutions include digital solutions for
doctors, nurses, care teams and patients. Its clinical reference
platform, ClinicalKey, helps 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 1,700 clinical overviews, over 6m images and
over 99,000 medical videos in one integrated site. In 2023, we
announced ClinicalKey AI, a next-generation clinical decision support
tool combining trusted, validated content with responsible AI.
ClinicalKey AI supports clinical decision making at the point-of-care
by providing quick access to the latest evidence-based medical
knowledge through conversational search.
In 2023 the new product ClinicalPath Primary Care was
approved as a Class A medical device in India – a first for Elsevier.
ClinicalPath Primary Care is a point-of-care clinical decision
support platform which empowers Frontline Healthcare Workers
such as ASHAs (Accredited Social Health Activists) to screen
and identify patients so that treatment can be improved due to
early intervention.
ClinicalPath Oncology presents evidence-based oncology
pathways embedded in the clinical workflow, and the associated
analytics, to help oncology care teams make consistent,
well-informed decisions for high quality care. In 2023, Elsevier’s
teaching platform Complete Anatomy introduced globally the
world’s first 3D human anatomy model featuring different skin
tones and facial features to tackle racial bias in healthcare,
building on the first female anatomy model that was released
in 2022.
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 250,000 course
enrolments, while ClinicalKey Student is used in over 340
medical schools globally.
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.
Primary Research
. Elsevier helps researchers improve and
disseminate their scientific findings through its more than 2,900
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 33,000
editors and over 1.5m reviewers worldwide, many Elsevier
journals are the foremost publications in their field, including
flagship families of journals like Cell Press and The Lancet,
which celebrated its 200th anniversary in 2023. Research content
is distributed and accessed via ScienceDirect, the world’s largest
platform dedicated to peer-reviewed primary scientific and
medical research.
In 2023, Elsevier received almost 3m article submissions, publishing
over 630,000 new research articles following peer review, with the
global scientific community accessing its articles over 2bn times
across its journal platforms. The latest available long-term comparison
with the market showed that Elsevier journal articles accounted for over
17% of global research output and 28% of citations, demonstrating
Elsevier’s commitment to quality significantly ahead of the industry
average. Elsevier is a global leader in open access publishing. With
nearly all our journals offering open access options, in 2023 we
published over 190,000 open access articles, an increase of over 23%
over last year, and launched 59 new fully open access journals, bringing
that total to over 800.
The world’s largest platform dedicated to
peer-reviewed primary scientific and
medical research
An expertly curated abstract and citation
database with content from over 7,000
publishers to help track and enhance
researcher and institutional data and discover
global research in all fields
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
The world’s most advanced 3D anatomy
platform, Complete Anatomy is revolutionising
how students, educators, health professionals
and patients understand and interact with
anatomy
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
Leading the way by pioneering the combination
of the latest in machine learning with an
ontology-led approach, SciBite’s semantic
infrastructure answers business-critical
questions in real-time by releasing the value
and full potential of unstructured data
For more information
visit relx.com
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
22
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Annual Report 2023 | Market segments
Electronic
90%
Transactional
26%
Subscription
74%
Format
Geographical market
Type
Print & face-to-face
10%
Rest of world
31%
Europe
22%
North America
47%
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 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 2023 the homepage of ScienceDirect, our flagship
platform dedicated to peer-reviewed primary scientific and
medical research was recognised as the most accessible
homepage by WebAIM among 1m websites. We also published
the white paper ‘Demystifying Sustainability Assessment and
Reporting Frameworks’ to help institutions plan and implement
their societal impact initiatives.
Business model, distribution channels and competition
In Databases, Tools and Electronic Reference, 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 2023, Elsevier serves over 2,600
institutions worldwide with transformative deals that support
open access to research. Nearly all of Elsevier’s over 2,900
journals enable open access publishing, with more than 800
dedicated author pays journals, the largest portfolio of open
access titles.
Elsevier has invested in other research solutions, such as SSRN
an open access online pre-print community where researchers
post early-stage research, Scopus Author Profiles showing
pre-prints 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
includes primary research and reference content in print
format and 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 and 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 continue to grow strongly.
As a proportion of R&D 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 and artificial intelligence
to improve productivity and outcomes, and enable insights
underpinning critical decisions, benchmarking and evaluation.
In Databases, Tools and Electronic Reference, 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.
2023 Revenue £3,062m
23
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Annual Report 2023 | Scientific, Technical & Medical
Further development of analytics continuing to drive
underlying revenue growth
Underlying revenue growth of +4% continues to be driven by the
evolution of the business mix, with higher growth segments
representing an increasing proportion of divisional revenue.
Underlying adjusted operating profit growth was +4%, with a
small increase in adjusted operating margin after portfolio
changes and currency effects.
Databases, Tools & Electronic Reference and Corporate
Primary Research, which together represent around 45% of
divisional revenue, continued to deliver strong growth, driven by
content development and further evolution of higher value-add
analytics and decision tools.
Primary Research Academic & Government segments, which
also represent around 45% of divisional revenue, continue to be
driven by volume growth. Article submissions returned to
strong growth, with pay-to-publish open access articles
continuing to grow particularly strongly.
2024 outlook
We expect continued good underlying revenue growth with
underlying adjusted operating profit growth slightly exceeding
underlying revenue growth.
2023 financial performance
2022
£m
2023
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
2,909
3,062
+4%
0%
+1%
+5%
Adjusted operating profit
1,100
1,165
+4%
-1%
+3%
+6%
Revenue
2023
3,062
2,909
Underlying growth
+4%
2022
£m
Adjusted operating profit
2023
1,165
1,100
Underlying growth
+4%
2022
£m
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. In 2023, Elsevier announced a geographic pricing
pilot for its article publishing charges to support authors in low-
and middle-income countries with equitable open access
publishing choices.
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 shareholder information
Financial review
Corporate Responsibility
Overview
24
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Annual Report 2023 | Market segments
About ClinicalPath:
An evidence-based clinical decision
support tool directly embedded into
the clinical workflow.
ClinicalPath:
Helping improve patient
outcomes while reducing
the cost of care
25
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Annual Report 2023 | Scientific, Technical & Medical
Advances in digital healthcare information
and technology help hospitals to deliver
better patient outcomes while managing
healthcare costs.
When Cone Health Cancer Center deployed Elsevier’s ClinicalPath,
an evidence-based oncology pathways clinical decision support
tool, as part of their clinical workflow, they embarked on a journey
that would improve patient outcomes at lower cost.
Monica Schmidt MPH, PhD, Executive Director of Health
Economics and Health Equity Analytics at Cone Health, explains:
“We wanted to look at whether the ClinicalPath product… could
reduce care variation, improve patient outcomes in terms of
short-term survival and reduce the cost of care,” Dr. Schmidt
said. “We hypothesised that giving our providers this kind of
evidence-based guidance directly in the clinical workflow would
result in achieving all three goals.”
The cancer center is part of Cone Health’s private, not-for-profit
integrated healthcare network in North Carolina. It prides itself
on providing state-of-the-art treatments and interventions for a
variety of cancers in a compassionate community-hospital setting
and recognises the importance of supporting its clinicians with
the tools needed to make consistent, well-informed decisions for
high-quality care.
To measure whether ClinicalPath could help reduce care variation,
Cone Health Cancer Center looked at costs and outcomes for more
than 6,700 patients treated between 2017 and 2022. The research
team documented patient survival rates at three, six and 12 months,
as well as the variable direct costs of care for the patients in the
study. The group also measured the contribution margin, or the
amount of revenue available after both variable and fixed costs
of care were covered by recouped payments.
The results showed the impact of ClinicalPath, as Dr Schmidt
explains: “…from the time patients received their first treatment
for their cancer, they were more likely to survive all the way
through 12 months if their oncologist managed care with decision
support from ClinicalPath pathways.”
The group of patients documented as on-pathway in ClinicalPath
were half as likely to die within three, six or 12 months of when the
treatment began compared to cases in which it was not used or
not followed through the entire clinical care pathway.*
When researchers looked at care costs they found that the use
of ClinicalPath increased the overall cost of care for patients.
The higher direct variable costs were due to the drugs or other
treatments recommended by the care pathway.
However, the same evidence-based guidelines present in the
pathway also influence reimbursement by providing reasoning
around treatment decisions. On average, contribution margin
increased by 74% when oncologists used ClinicalPath to guide
treatment*. The recouped payments meant that cases guided
by ClinicalPath were more profitable for the cancer center.
“Even though we were providing more care at a higher cost,
we were seeing higher reimbursements to cover those costs,”
Dr Schmidt said. Timothy Finnegan, MD Chief of Oncology,
Cone Health Cancer Center agreed, saying, “Using ClinicalPath
and collaborating with Elsevier has been a positive experience
for both clinicians and patients. Patient-centric focus is of
utmost importance.”
12 months
Patients were more likely to survive
through 12 months if their oncologist
managed care with decision support from
ClinicalPath pathways*
This collaboration has been a
positive experience for both
clinicians and patients.
Patient‑centric focus is of
utmost importance.
Timothy Finnegan, MD
Chief of Oncology,
Cone Health Cancer Center
Even though we were providing
more care at a higher cost, we were
seeing higher reimbursements to
cover these costs.
Monica Schmidt MPH, PhD
Executive Director of Health Economics and
Health Equity Analytics, Cone Health Cancer Center
*
Schmidt, M. (2023, 2-6 June).
The impact of using Elsevier ClinicalPath oncology treatment
pathways on survival and cost of care
. Poster presented at the ASCO Annual Conference,
McCormick Place. Available from: https://meetings.asco.org/abstracts-
presentations/221866
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
26
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Annual Report 2023 | 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
11,800 employees worldwide and serves customers in almost
150 countries and territories.
Revenues for the year ended 31 December 2023 were £1,851m,
compared with £1,782m in 2022 and £1,587m in 2021. In 2023,
68% of revenue came from North America, 21% from Europe,
and the remaining 11% from the rest of the world. Subscription
represented 79% of revenue and transactional revenues
represented 21%.
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,
Lexis+, and Lexis+ AI which provide statutes and case law with
analysis and expert commentaries from secondary sources, such
as Matthew Bender. Lexis, Lexis+ and Lexis+ AI include the leading
citation service, Shepard’s, which advises on the continuing
relevance of case law precedents.
Lexis+ AI was introduced in the US in 2023 and is a generative
AI platform designed to transform legal work. It is built and
trained on one of the world’s largest repositories of accurate
and exclusive legal content, leveraging an extensive collection
of documents and records to provide customers with trusted,
comprehensive legal results with unmatched speed and precision
and backed by verifiable, citable authority. The new Lexis+
AI technology features conversational search, insightful
summarisation, and intelligent legal drafting capabilities, all
supported by state-of-the-art encryption and privacy technology
to keep sensitive data secure. Conversational search simplifies
the complex and time-consuming legal research journey,
providing a search experience for diverse legal questions
with citations, facilitating lawyers’ ability to complete research
effectively and efficiently. Summarisation provides a custom
summary of legal documents to provide quick and insightful
analysis. Drafting guides customers throughout the legal drafting
process, generating a first draft of a legal document and allowing
users to change the language and tone from a simple prompt.
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.
§
LexisNexis hosts over 138bn legal and news
documents and records
§
On average, over 2.2m new legal documents
are added daily from over 50,000 sources,
generating over 158bn connections with over
35m legal documents processed per day
§
Nexis news and business content includes over
39,000 premium sources in over 50 languages,
covering around 180 countries. It includes over
540m company profiles with a content archive
that dates back 45 years
§
PatentSight includes ratings on the innovative
strength of over 152m patent documents from
over 100 countries
§
LexisNexis content includes more than 307m
court dockets and documents, over 168m
patent documents, over 4.75m State Trial
Orders, and over 1.5m jury verdict and
settlement documents
§
In 2023, Law360 produced over 65,000 news
and analysis articles
§
Lex Machina has normalised over 127m counsel
mentions and over 134m party mentions
since 2016
§
LexisNexis is committed to advancing the Rule
of Law through operations and solutions that
provide transparency into the law in almost
150 countries and territories
§
More than 875,000 Lexis+ users across nine
countries including the US, Canada, UK,
Australia, Singapore, Hong Kong, South Africa,
Malaysia and New Zealand
Legal
27
RELX
Annual Report 2023 | Legal
Lexis+ is the cornerstone of online research and is being rolled out
in additional countries and enhanced in existing countries. Lexis+
Canada was enhanced in 2023 with the introduction of Legal News
Hub which brings together legal news stories, case summaries,
analysis, podcasts, and more. In 2023, LexisNexis launched
Lexis+ in Australia, Hong Kong, Singapore, and South Africa.
The enhanced platform aims to deliver greater efficiency and
better outcomes, with data-driven insights to generate precise
recommendations and search suggestions. Lexis+ Australia
enables customers to quickly identify the key cases in relation
to a specific legislative provision.
In 2023, LexisNexis continued to broaden the reach of its decision
tools and analytics. Lex Machina, incorporated in Lexis+,
expanded its API to provide access to Legal Analytics for State and
Federal Appellate cases. Intelligize launched Board Profiles &
Compensation, which analyses datapoints from proxy statements
across thousands of companies and enables benchmarking in
areas such as pay versus performance and board diversity.
LexisNexis also continued to expand legal news coverage with
Law360 in 2023, with deeper reporting across the US, Canada, and
UK including the launch of Bankruptcy Authority, UK Intellectual
Property, and enhanced US jurisdictional coverage.
LexisNexis continued to enrich core solutions across global
segments in 2023. In France, it completed the acquisition of
Case Law Analytics, a French legal technology company that
specialises in modelling legal risk data using AI. In Malaysia,
Case Target was launched – an innovative, AI tool that synthesises
a user’s search results, providing concise summary of the most
authoritative cases within the practice area, complete with the
most pertinent judicial reasonings.
In 2023, Practical Guidance released the Federal Government
module, which provides practitioners with guidance on
government contracting, agency law, administrative law,
information law, and labour and employment law.
In the Intellectual Property (IP) analytics space, LexisNexis
acquired Cipher, which utilises AI and supervised machine
learning to classify patents using custom and industry standard
taxonomies, helping customers uncover insights into complex
patent landscapes and support strategic decisions.
LexisNexis Regulatory Compliance is positioned to support our
clients in key regions globally, including the US and UK, assisting
them in maintaining compliance registers across numerous
topics including Cybersecurity, Banking, Gambling, ESG and
more. The continuously expanding content portfolio is focusing on
key legal obligations content in highly regulated industries and
areas of law.
LexisNexis also supplies Legal Business Solutions such as legal
spend management, matter management, and client engagement
software. It launched InterAction+, a new cloud-based legal
customer relationship management solution that unites a feature-
rich business development tool with a modern user experience,
cloud infrastructure, and exclusive content from LexisNexis to
help lawyers manage relationships and identify opportunities and
at-risk clients.
Supporting its Rule of Law mission, the LexisNexis Rule of Law
Foundation today partners with organisations in over 35 countries
with more than 160 projects and activities since inception.
Supporting its Rule of Law mission, LexisNexis, in partnership
with the African Ancestry Network, has provided scholarships to
45 students at the six Historically Black Colleges and Universities
law schools to examine issues of systemic racism in the justice
system. The programme is expanding to include fellows from
South African universities.
LexisNexis is also working with the Bangladesh Legal Aid
Services Trust (BLAST) to enhance an app which allows workers
to examine employment rights and laws on their phone and seek
legal aid assistance if needed. The collaboration has enabled the
app to address two new industries – construction and tannery –
to those already covered.
Government & Academic
, representing around 20% of revenue,
serves customers across government organisations and
law schools.
Lexis+ AI is a generative AI platform designed to
transform legal work with an initial emphasis on
enhanced search, summarisation and drafting
Lexis+ is a legal analytics ecosystem that uses
AI and superior search technology to deliver
legal research and news, data-driven insights,
and practical guidance seamlessly into legal
workflows
Intelligize is the leading provider of content,
news, regulatory insights, and analytics for
compliance, transactional and financial
reporting professionals
Lex Machina provides Legal Analytics to
law firms and companies, enabling them to
craft successful strategies, win cases, and
close business
CounselLink is the leading enterprise legal
management solution designed to help
corporate legal departments gain 100% visibility
into their work, matters, and invoices
Nexis is a comprehensive research and content
tool for business professionals that curates the
most robust global collection of trusted news,
company profiles, legal content, public records,
and industry information
For more information
visit relx.com
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
28
RELX
Annual Report 2023 | Market segments
Format
Geographical market
Type
Transactional
21%
Subscription
79%
Print & face-to-face
10%
Electronic
90%
Rest of world
11%
Europe
21%
North America
68%
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 advent of
Generative AI and 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 generative AI; 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+
AI 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 that conducts
projects globally to promote transparency of the law, access
to legal remedy, equal treatment under the law, and
independent judiciaries.
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.
With the release of the Federal Government Practice Area,
Practical Guidance usage in the Federal Government Segment
grew over 20% in 2023 compared to 2022. 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 over 200 law schools in 2023.
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 39,000 licensed
sources, including a 45-year news archive across over 50 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 2023, Nexis Solutions launched Nexis Diligence+, a global due
diligence solution with high-volume screening and advanced
negative news analytics, delivering significant process
efficiencies for risk professionals. It also launched Nexis Hub,
a new workflow tool enabling users to gather information and
organise and prioritise it in a single place, driving significant time
savings and reduced risk of information loss.
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.
2023 Revenue £1,851m
29
RELX
Annual Report 2023 | Legal
Further improvement in underlying revenue growth
driven by legal analytics
Underlying revenue growth improved to +6%, driven by the
continuing shift in business mix towards higher growth legal
analytics.
Underlying adjusted operating profit growth was +8%, with
underlying cost growth below underlying revenue growth,
leading to a continued improvement in adjusted operating
margin.
Law Firms & Corporate Legal markets, which account for over
60% of divisional revenue, saw strong growth. Lexis+, our
integrated platform with leading analytics based on extractive
AI functionality, continues to see increasing customer adoption
and usage across markets. In October, we announced the
commercial launch of Lexis+ AI, our new platform leveraging
generative AI functionality. Initial customer reaction has been
positive, and the roll-out has started well.
Government & Academic, which accounts for around 20% of
divisional revenue, and News & Business,which accounts for
just under 10% of divisional revenue, both delivered good
growth.
Renewals and new sales remain strong across all key
segments.
2024 outlook
We expect continued strong underlying revenue growth with
underlying adjusted operating profit growth exceeding
underlying revenue growth.
2023 financial performance
2022
£m
2023
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
1,782
1,851
+6%
-1%
-1%
+4%
Adjusted operating profit
372
393
+8%
-1%
-1%
+6%
Revenue
2023
1,851
1,782
Underlying growth
+6%
2022
£m
Adjusted operating profit
2023
393
372
Underlying growth
+8%
2022
£m
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 shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023 | Market segments
30
Lexis+:
a comprehensive resource
for fast and accurate case
law research
About Lexis+:
Lexis+ Singapore is a premium
all-in-one ecosystem of integrated
legal solutions, complete with
superior research, practical
guidance and gold standard
drafting tools.
31
RELX
Annual Report 2023 | Legal
Up to 20%
We estimate that Lexis+ has made our legal
research at least 10 to 20% more efficient based
on how easy we’re able to identify and focus on the
materials relevant to our research, allowing us
more time to focus on analysing the outcome of
our legal research.
Rajah & Tann’s legacy is built on a
commitment to excellence and to
care for its colleagues, clients, and
community. Founded in 1976 to pursue
social justice through law, Rajah & Tann
Singapore is now one of the ‘big four’
full-service firms in Singapore and a
founding member of Rajah & Tann Asia,
a network of legal practices which
boasts over 970 fee earners across
10 countries. They are known for being
early technology adopters and were one
of the first large law firms to adopt
Lexis+ in the region.
In a technology-driven, ‘always-on’ professional world, clients
now expect legal services to be immediately accessible at all
times, while their legal and regulatory questions are becoming
increasingly complex. Rajah & Tann’s ambition is to be unrivalled
in its responsiveness to client demands, while continuously
seeking new opportunities to deepen its foothold in Asia. The
company also acknowledges that this vision must be pursued
in a sustainable manner, without compromising on their values
of fairness, integrity, generosity, and compassion, especially
toward the well-being of their colleagues. Rajah & Tann firmly
believes that leveraging technology in the delivery of legal
services is necessary to meet both client expectations and the
needs of their team members.
Through a combination of market-leading AI search technology,
large proprietary content-sets, and superior data visualisation
features, Lexis+, launched in June 2023 with case digests of
Singapore supreme court judgements for the first time, cuts
down the time needed for lawyers to conduct legal research
while maintaining the accuracy and quality of the research output.
Rajah & Tann lawyers can now use Lexis+ as the first port of call
when conducting case law research. The solution’s user-friendly
features have made legal research ‘less stressful’, as they can
now simply ‘browse through the sections of the materials
containing the search terms without having to open each search
result. This makes it much easier to filter, identify and zoom in
to the materials likely to be useful for their research’.
The benefits are not limited to fee-earners: the Knowledge
Management team now spend less time training lawyers on
using the system. For example, the innovative ‘Search Tree’
feature is particularly appreciated among younger lawyers,
replacing the need to memorise and deploy traditional Boolean
search techniques. This faster uptake in usage means a quicker
return on investment on the firm’s subscription to Lexis+.
For Rajah & Tann, the future of legal services hinges on the firm’s
success in technology adoption, and Lexis+ is a key element in the
delivery of the firm’s growth strategy.
The pace of legal practice has
accelerated in recent years,
influenced by client expectations
for prompt and accessible legal
services and the rapidly evolving
legal and regulatory landscape.
Rajah & Tann is constantly
assessing and deploying
technological solutions and
innovations to help our lawyers
work more efficiently to keep up
with this pace, while maintaining
a healthier work-life harmony.
Lexis+ is one such solution that
has helped our lawyers reduce
research time and make legal
research a less ‘stressful’ task.
Rajesh Sreenivasan
Head, Technology, Media & Telecommunications
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
32
RELX
Annual Report 2023 | Market segments
Business overview
Exhibitions (RX) combines industry expertise with data and digital
tools to help customers connect face-to-face and digitally, 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 3,500 employees worldwide and its portfolio of
events serves 42 industry sectors.
Revenues for the year ended 31 December 2023 were £1,115m
compared with £953m in 2022 and £534m in 2021. In 2023,
20% of RX’s revenue came from North America, 38% from Europe
and the remaining 42% from the rest of the world on an event
location basis.
Over 6m participants welcomed the opportunity to build their
businesses at RX face-to-face events. RX ran 286 face-to-face
events in 25 countries, up from 254 events in 2022.
2023 was a year of growth, with RX and its customers operating
without major disruption throughout the year and in all
geographies. Performance relative to pre-pandemic level
improved through the year with the majority of events trading
above pre-pandemic revenue levels.
In 2023, RX improved the range of digital products offered,
increasing their sophistication and the value delivered to
customers. RX’s digital products extended the reach of the event
beyond the exhibition hall and increased the value of participating.
Digital products grew in 2023 with electronic revenue accounting
for 8% of revenue, up from 7% in 2022.
RX organises influential events in key markets focused on
addressing the needs of each particular 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, data
analytics, 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. In 2023 RX acquired
Big Data & AI Paris expanding its access to the high growth market
in data, analytics and artificial intelligence (AI). Combined with
Big Data London (acquired in 2021 and growing strongly) and
the scheduled launch of Data Universe in New York in 2024,
RX can now effectively and efficiently support this segment in
three key geographies.
Similarly RX made selective launches to enter new attractive
sectors (e.g. Renodays for green building renovation, Paris)
or extend successful value propositions into new markets
(e.g. Agri Week expanding into Kyushu, Japan; BCB for the drinks
industry expanding into Singapore) or additional calendar slots
(e.g. Content Tokyo into the winter).
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.
§
In 2023 RX ran 286 face-to-face events in
25 countries, up from 254 events in 2022
§
In 2023, over 6m participants welcomed
the opportunity to build their businesses at
RX events
§
42 industry sectors are served in 25 countries
across the globe
RELX
Annual Report 2023 | Exhibitions
33
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 stand-alone 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
was disrupted by Covid-19 but re-established in 2023.
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 both buyers and sellers.
RX focuses on four main areas that position it for long-term success.
Value to customers: RX constantly looks for ways to increase the
value generated for customers, by innovating the offering and
format of its events, and by deploying digital tools and platforms
to enhance the face-to-face experience.
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.
Best practice innovation: RX continues to drive best practices
in a number of activities which increase the value generated for
customers and improve its business performance, including
marketing excellence, sales techniques, and the use of analytics
to generate insights both for RX and its customers.
Operational efficiency: a lean, nimble structure is in place, able
to respond to changing circumstances and customer needs.
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.
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 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 shareholder information
Financial review
Corporate Responsibility
Overview
34
RELX
Annual Report 2023 | Market segments
Format
Geographical market
Source
Face-to-face
92%
Electronic
8%
Rest of world
42%
Europe
38%
North America
20%
Visitors
and other
28%
Exhibitors
72%
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:
US
International Security
Conference & Exhibition
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:
Japan
Japan’s one-stop shop for
office related products
and services
Location:
Australia
Australia’s trade event
for the retail industry
Location:
Japan
Japan’s comprehensive
exhibition for smart and
renewable energy
Location:
Spain
Global event for the meetings,
incentives, conferences and
events industry
Location:
Thailand
Machine tools and
metalworking exhibition
serving ASEAN
Location:
France
International exhibition of
environmental equipment,
technologies and services
Location:
Brazil
International trade fair
for autoparts, equipment
and services
Location:
Japan
Japan’s manufacturing
industry trade event
Location:
Germany
International trade show for
fitness, wellness & health
For more information
visit relx.com
2023 Revenue £1,115m
RELX
Annual Report 2023 | Exhibitions
35
Revenue
2023
1,115
953
2022
Underlying growth
+30%
£m
Adjusted operating profit
2023
2022
319
162
£m
Underlying growth
+100%
Strong underlying revenue growth and profitability
improvement
Strong underlying revenue growth was driven by a significant
increase in face-to-face activity across geographies, with
average like-for-like event revenue across the portfolio
ahead of pre-pandemic levels.
We continue to make good progress on digital initiatives, with
increased usage of a growing range of value enhancing digital
tools for the customers of our face-to-face events.
The improvement in profitability reflects the higher activity
levels and the structurally lower cost base of the streamlined
event portfolio, with the adjusted operating margin now above
pre-pandemic levels.
2024 outlook
We expect strong underlying revenue growth with a further
improvement in adjusted operating margin.
2023 financial performance
2022
£m
2023
£m
Change
underlying
Portfolio
changes
Currency
effects
Change
Revenue
953
1,115
+30%
-11%*
-2%
+17%
Adjusted operating profit
162
319
+100%
+5%
-8%
+97%
* includes cycling effects of -11%
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
36
RELX
Annual Report 2023 | Market segments
Big Data London:
Where data-driven
businesses go for growth
About Big Data London:
Big Data London is a leading data,
analytics and AI conference and
exhibition. The 2023 event, held from
20-21 September, was the largest in
its eight year history, featuring over
180 exhibiting technology providers
and consultants, and 300 global data
experts speaking across 15 theatre
stages. A record 15,617 attendees
came to discover the latest tools and
techniques and hear from pioneers
and industry leaders about the most
effective data driven strategies.
RX is taking Big Data London’s
successful format to the US, with
the launch of Data Universe 2024
in New York City in April 2024.
RELX
Annual Report 2023 | Exhibitions
37
550 qualified
leads
Starburst data welcomed over 2,400 visitors to
its stand at Big Data London 2023 and attracted
1,600 attendees to its plenary keynote. It also
delivered approximately 200 demos, held 90 meetings,
and generated more than 550 qualified leads for
follow-up.
Founded in 2017, and headquartered in
Boston, Massachusetts, Starburst Data
is focused on solving the pains of data
access. Its solution, a full featured data
lake analytics platform built on open
source Trino, gives data-driven
companies the capabilities they require
to discover, organise, and consume data
without the need for time-consuming
and costly migrations. In just six years,
Starburst has grown into an industry-
leading data mesh enterprise, trusted
by companies like Sky, EMIS Health
and Société Générale.
Starburst Data’s partnership with Big Data London began in
2021 when the company participated as a Platinum Sponsor
to establish its presence in the UK and European market. It
has since come to regard the event as a strategic point in the
calendar, providing the perfect platform to introduce and
showcase its solutions, amplify its voice, and position the
company as the industry leader in data lake analytics.
As a Diamond Sponsor of Big Data London 2023, with the largest
exhibiting footprint on the show floor, Starburst’s objectives
were clear-cut. The company strategically unveiled its
partnership with Dell Technologies and used the platform
to announce several pivotal updates for Starburst Galaxy.
It brought HSBC and 7Bridges to the event to share their
data lake house customer journeys. And it shared its latest
co-engineered solutions with Dell Technologies, Oakland
Group, and Turin Tech AI.
Starburst believes that Big Data London has had a
transformative influence on its business as a catalyst for growth
and collaboration in the world of data analytics and AI, fostering
not only client relationships but also strategic partnerships.
It has now joined forces with RX as the Title Sponsor for a
ground-breaking new event, Data Universe 2024 New York,
modelled on Big Data London’s winning event format. In addition
to a premier presence on the experiential expo floor, Starburst
will deliver content curation for a dedicated data lake theatre
at Data Universe 2024, offering use cases, presentations,
and hands on workshops over the two days.
Big Data London never ceases
to amaze us. The rich content,
diverse attendee profile, the sheer
size and shape of the event, and
the exceptional team behind its
success make it an unrivalled
platform for us to engage with our
audience and drive our business
goals. Big Data London really is
a true barometer for the rapidly
growing data and AI industry.
Matt Browning
VP Marketing EMEA and APAC
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
38
RELX
Annual Report 2023
In this section
38
Introduction
45
Our unique contributions
50
CR governance
54
People
60
Customers
65
Community
69
Supply chain
73
Environment
82
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
Chief Sustainability Officer and Global Head
of 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 and
Sustainability Information Statement for the purposes
of Section 414CA and 414CB of the Companies Act 2006.
39
RELX
Annual Report 2023 | Introduction
Financial statements
and shareholder information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
Non-financial and sustainability 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 and sustainability information. The list
below outlines where this information can be found:
Reporting requirement:
Environmental matters
73-81, 82-87
Employees
54-59
Social matters
45-49
Human rights
45-49, 54-59,
69-72
Anti-corruption and anti-bribery matters
50-53, 69-72
Policies, due diligence processes
and outcomes
50-53, 69-72
Description and management of principal and
emerging risks and impact of business activity
98-107
Description of business model
4-13
Non-financial metrics
41
Climate-related financial information
82-87
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
Directors, consider that they have done so for the year ending
31 December 2023.
Details of how the Board and its Directors have fulfilled these
duties can be found throughout this 2023 Report, and therefore
the following sections have been incorporated by reference into
this Section 172 Statement and, where necessary, the RELX 2023
Strategic Report:
Business model and strategy
4-13
Corporate responsibility report
38-90
Principal risks
98-107
Culture and workforce policies
113-125
Board decision-making
113-125
Stakeholder engagement
113-125
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 2023, the Board also continued to oversee our substantial
corporate responsibility activities, and maintained its focus
on RELX’s Sustainability performance. The Board’s oversight on
these matters is detailed on page 117 as part of Board activities,
and page 119 as part of the Board’s engagement with the
communities in which we operate.
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.
The Corporate Responsibility Report is an integral
part of our Annual Report. This section highlights
performance against our 2023 corporate responsibility
objectives.
40
RELX
Annual Report 2023 | Corporate responsibility
Our approach to corporate responsibility
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 Global Reporting Initiative). Key non-financial metrics for
environment, people and supply chain are independently
assured. 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 92-97). RELX is subject to the European Union’s Corporate
Sustainability Reporting Directive (CSRD) from January 2024 and
our first CSRD Sustainability Statement will feature in this section
of our 2024 Annual Report.
We pursue robust governance of CR issues for which the CEO is
responsible to the Board. The leaders of our four business areas
and our Functional leaders all have accountability for our CR
performance, reinforced by objective setting and monitoring
by our CR Forum and the involvement of over 4,400 colleagues
in our internal CR networks.
CR priorities
In this report we outline our approach to Corporate
Responsibility (CR), our principal CR risks and how they map
to our CR priorities, including operating with the highest
standards, 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). This Report also sets out
alignment with the Sustainability and Accounting Standards
Board (see CR Disclosure Standards 2).
Corporate responsibility 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, source
products 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 we must act with the highest responsible
standards, while channelling our strengths to make a positive
difference for society. To us, CR is not a programme or 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 ‘licence 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.
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
We set annual and longer-term objectives to
ensure we continue to increase the positive
impact we have on society through our
business.
Dr Márcia Balisciano
Global Head of ESG and Corporate Responsibility, RELX
41
RELX
Annual Report 2023 | Introduction
Financial statements
and shareholder information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
2023 key corporate responsibility data
2019
2020
2021
2022
2023
Revenue (£m)
7,874
7,110
7,244
8,553
9,161
People
Number of full-time equivalent employees (year end)
33,200
33,200
33,500
35,700
36,500
Percentage of women employees (%)^
50
50
50
50
51
Percentage of women managers (%)^
42
42
44
44
45
Percentage of women senior leaders (%)
1
^
30
28
30
31
31
Percentage of ethnic minority US/UK managers (%)^
17
19
19
20
Percentage of ethnic minority US/UK senior leaders (%)
1
^
9
10
12
15
Community
2
Total cash and in-kind donations (products, services and time (£m))
9.2
9.2
10.4
12.3
12.4
Market value of cash and in-kind donations (£m)
18.7
17.6
20.6
22.6
23.4
Percentage of staff volunteering (%)
3
45
26
32
36
36
Total number of days volunteered in company time
12,127
6,821
10,362
12,830
16,529
Health and safety (lost time)
4
Incident rate (cases per 1,000 employees)^
0.50
0.11
0.07
0.17
0.30
Frequency rate (cases per 200,000 hours worked)^
0.06
0.01
0.01
0.02
0.03
Severity rate (lost days per 200,000 hours worked)^
0.69
0.07
0.02
0.36
0.41
Number of lost time incidents (>1 day)^
14
3
2
5
9
Socially Responsible Suppliers (SRS)
Number of key suppliers on SRS database
5
^
354
412
359
724
796
Number of independent external audits
6
^
93
99
111
119
125
Percentage signing Supplier Code of Conduct (%)
7
^
91
91
96
87
87
Environment
8
Total energy (MWh)^
176,682
142,098
125,095
117,997
110,750
Renewable electricity purchased (MWh)
9
^
135,710
120,710
105,793
98,013
92,621
Percentage of electricity from renewable sources (%)
9
^
91
100
100
100
100
Waste sent to landfill (t)
10
^
804
210
150
73
45
Percentage of waste diverted from landfill (%)
10
^
81
91
93
97
97
Water usage (m
3
)^
344,304
226,509
183,575
156,734
142,374
Climate change (tCO
2
e)
8
Scope 1 (direct) emissions^
8,498
5,217
5,644
5,211
4,317
Scope 2 (location-based) emissions^
69,616
53,740
44,051
37,270
36,616
Scope 2 (market-based) emissions^
18,384
11,384
8,321
8,952
8,598
Scope 3 (flights) Cirium’s EmeraldSky flight emissions methodology
11
^
40,544
8,961
3,402
15,879
16,999
Scope 1 + Scope 2 (location-based) emissions^
78,114
58,957
49,695
42,481
40,933
Scope 1 + Scope 2 (location-based) + Scope 3 (flights) emissions^
118,658
67,918
53,097
58,360
57,932
Scope 1 + Scope 2 (market-based) + Scope 3 (flights) emissions^
67,426
25,562
17,367
30,042
29,914
Paper
Production paper (t)^
34,599
36,259
40,910
28,466
22,561
Sustainable content (%)
12
^
96
92
98
99
100
SDG Resource Centre
Unique users^
89,902
133,832
155,082
220,815
New content items^
717
970
658
822
1
We define senior leaders as colleagues with a management grade of 17 and above.
2
Data reporting methodology assured by Business for Societal Impact (B4SI). Reporting period covers 12 months from December 2022 to November 2023.
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 volunteering hours, 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
For 2023, RELX moved to a new third party audit platform, which allows sharing of supplier audits across the platform therefore increasing the total number of audits.
7
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.
8
Climate change and environmental data (carbon, energy, water, waste) covers the 12 months from December 2022 to November 2023.
9
We purchase renewable electricity on green tariffs at locations in the UK and Europe. 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 any non-renewable electricity consumed outside the US; we do not apply any
market-based emissions factors on this portion of electricity consumption.
10
Waste sent to/ diverted from landfill from reporting locations excluding estimates.
11
Covers all flights booked through our corporate travel partner in the calendar year. Uses the proprietary Cirium fuel-derived methodology. Further details are available on
page 76. Previous figures restated following independent assurance.
12
Percentage of paper graded as known and responsible sources by the Book Chain Project or certified to FSC or PEFC. Includes less than 0.5% of paper not yet graded
or certified.
^
Independently assured. See Independent Assurance Statement.
Reporting guidelines, methodology and independent assurance statements are available on
www.relx.com/additional-cr-resources
42
RELX
Annual Report 2023 | Corporate responsibility
2023 awards for excellence
Our employees, products and shows are regularly recognised for excellence. In 2023, for example:
Risk
Scientific, Technical & Medical
Kimberly Sutherland,
Vice President of Fraud and
Identity at LexisNexis Risk
Solutions won gold for
Cybersecurity Woman of the
Year at the Cybersecurity
Excellence Awards
LexisNexis Risk Solutions
was awarded Best Practices
Company of the Year for
global fraud detection and
prevention by Frost & Sullivan
Elsevier won gold at the
Employer Brand Management
Awards Europe for Best
Employee Experience
Elsevier’s SciBite won the
Innovative Practices Award
at Bio-IT World
Legal
Exhibitions
LexisNexis Legal &
Professional’s US Voting
Laws & Legislation Centre
won the Justice Technology
award at the Legalweek
Leaders in Tech Law Awards
LexisNexis Legal &
Professional won Best
Business Intelligence
Solution for CaseMap Cloud
and Best Legal Solution for
Lexis+ at the SIIA CODiE
Awards
RX won four awards for Best
Company Leadership, Best
Career Growth, Best CEOs for
Diversity and Best CEOs for
Women at the Comparably
Awards
RX won the Greatest Trade
Show award for JCK and the
Best Use of Technology award
for G2E Global Gaming Expo
at the Trade Show Executive
Gold 100 Awards
2023 ESG recognition
MSCI ESG Ratings
• AAA rating
Sustainalytics ESG Risk
Rating
• Sector (media): 2nd out of 296
S&P Global Sustainability
Yearbook
• Included
Tortoise Responsibility100
Index
• 5th out of 100
Dow Jones Sustainability
Index
Included in
• World
FTSE4Good Index
Included in:
• FTSE4Good UK Index
STOXX Global ESG
Leaders Indices
• Included
ECPI Indices
• Included
CDP
• Programmes: Climate,
Forests, Water
SOCOTEC ISO14001
• Group certification
Workplace Pride Global
Benchmark
• Awarded Advocate status
Bloomberg’s Gender-Equality
Index
• Included
43
RELX
Annual Report 2023 | Introduction
Financial statements
and shareholder information
Governance
Financial review
Corporate Responsibility
Market segments
Overview
Our external stakeholders
Prioritising key issues
To consistently understand the issues we should focus on, we consider our business priorities and engage regularly with both internal
and external stakeholders. Employees are our primary internal stakeholder and we involve more than 4,400 colleagues across RELX in
our CR networks, who in turn reach more people across the company. Examples of our stakeholder engagement in the year can be found
at
www.relx.com/additional-cr-resources
.
The basis of our 2024 CSRD disclosure will be a double materiality assessment (DMA) which identifies key issues for our stakeholders
and those which meet a test of financial materiality, encompassing both risk and opportunity. In 2023, we engaged CR consultancy,
Carnstone to assist with the DMA, supported by an internal DMA/CSRD Review Group comprised of 27 colleagues. The methodology and
results of this undertaking will be part of our 2024 CSRD disclosure.
For our previous stakeholder assessment Carnstone contacted over 270 stakeholders – including investors, employees and suppliers –
to rank 14 issues we consider important to the company. All 14 CR priorities were rated as either significant or very significant by 26% or
more of respondents (at a minimum), indicating that we are focusing on issues they believe are critical for us.
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
44
RELX
Annual Report 2023 | Corporate responsibility
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.
We demonstrated leadership as one of 900 early adopters of the
Enhanced Communication on Progress (CoP) in 2022, among
more than 20,000 signatories and completed the CoP again in
2023. We contributed to the UNGC Leaders Summit and served as
a sponsor of their Transformational Governance initiative. In the
year, our Chief Sustainability Officer and Global Head of Corporate
Responsibility completed her three year term as Chair of the
UNGC UK Network and served 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. UNGC Executive Director and
UN Assistant Secretary-General, Sanda Ojiambo delivered
keynote remarks during the 2023 RELX SDG Inspiration Day,
which virtually brought together over 1,500 representatives
from business, the investor community, academia, non-profit
organisations and civil society to inspire action and collaboration
to advance the global goals.
For our standing with the UNGC, visit:
www.unglobalcompact.org/what-is-gc/participants/7909
Accessibility
Working
Group
Well-being
Champions
Mental Health
First Aiders
Socially Responsible
Supplier Group
ESG Product Risk Group
SDG Champions
Inclusion Council
Rule of Law
Working Group
RX
Sustainability
Steering Group
RELX Cares
Champions
Customer Quality
Assurance Network
Employee
Resource Groups
Human Rights
Working Group
Environmental
Champions
Green Teams
CR for
Customers
Examples of
our internal
stakeholders
Inclusion
Working Group
Carbon Fund
Governance Group
Elsevier
Accessibility Guild
Relevant
SDGs
45
RELX
Annual Report 2023
Our events foster the meeting of people and
ideas which is essential for finding solutions
to global challenges. Our teams work to
ensure our events are organised in a
sustainable way: taking steps to reduce our
environmental impact, promote inclusion
and diversity and support local communities.
The UN Sustainable Development Goals are
our roadmap to shape our industry and make
a difference.
Anne-Manuele Herbert
Portfolio and Show Director
RX
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 protect society by detecting and preventing fraud across a
range of business sectors and at US government levels, citizens
access vital government benefits, and law enforcement keep
communities safe. Our data privacy principles, governance
structures and control programmes help ensure data privacy
requirements are met and personally identifiable information is
protected. We prioritise individuals’ privacy concerns 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.
A number of Risk products aim to reduce online fraud
and identity theft, helping customers recognise trusted
transactions and reduce fraud losses. In the year LexisNexis
Financial Crime Digital Intelligence (FCDI) won Best Overall
Digital Identity Solution Provider at the FinTech Breakthrough
Awards. FCDI is a digital sanctions evasion intelligence tool
designed to help businesses balance customer online
2023 PERFORMANCE
Meaningful support of SDG 10 by
expanding financial inclusion efforts in
Africa and APAC, including by providing
lenders with improved risk information
from alternative credit data to benefit
more people
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.
Worldwide, the World Bank estimates that 1.4bn adults lack
access to formal financial services, without access to basic
transaction accounts they are excluded from financial
opportunities because of a lack of a traditional credit record.
The challenge of financial inclusion is often magnified in
low-income countries, given gaps in identity verification and
credit risk assessment.
Risk’s DecisionTrust uses transactions across a global digital
identity network giving enriched insights to help lenders better
assess borrowers, ensuring consumers are not underestimated
while addressing the problem of ‘making visible the historically
invisible’ – people with no credit record. In 2023, Risk ran
DecisionTrust tests in 15 countries in Africa, Latin America,
Eastern Europe and Asia. The testing took place with fintechs,
banks and lending companies, which have historically struggled
to incorporate lower income populations into the regular banking
system. The tests show that applications (or reapplications) for
credit would be granted in approximately 20% of cases as
opposed to outright rejections previously.
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 shareholder information
Financial review
Corporate Responsibility
Overview
46
RELX
Annual Report 2023 | Corporate responsibility
experience with heightened digital sanctions evasion risk.
LexisNexis BehavioSec uses behavioural biometrics, the habits
and patterns in the behaviour of device users, to recognise trusted
transactions versus fraudulent activity. Working behind digital
interactions, the solution ensures genuine users have a
frictionless online experience while simultaneously enabling
rapid responses to real risks and user anomalies. With the
increasing use of digital devices and online transactions,
behavioural biometrics is becoming an essential tool for
businesses and organisations to build trust and reduce fraud.
The ADAM programme was developed by Risk 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, quickly distributes missing child
alerts to law enforcement, hospitals, businesses and the public in
specific geographic search areas. In 2023, ADAM distributed over
1.1m alerts featuring 1,670 missing children which helped NCMEC
resolve 1,140 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).
In serving the global scientific research community, Elsevier
published over 630,000 articles in 2023. 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 21% of the material available in Research4Life,
encompassing approximately 5,200 journals and 31,900
e-books. In 2023, there were over 1.4m Research4Life
downloads from ScienceDirect.
In 2023, the Elsevier Foundation supported Research4Life’s
Country Connectors initiative, heightening awareness and use
of Research4Life content, building communities of users
through national focal points in Bhutan, Ghana, Kenya, Liberia,
Sierra Leone and Tanzania. Connectors have created tailored
networking, promoting information skills building and
empowering users to drive change in their communities.
To ensure that vulnerable young people and minority groups
can take control of their health through accessible HIV-related
information, counselling and lifesaving care, the Elsevier
Foundation continued its partnership with Aidsfonds’ Tanya
Marlo project for young people tackling the HIV epidemic in
Indonesia, by providing easy access to information and care.
SSRN is Elsevier’s preprint and early-stage research platform.
It enables researchers around the world to openly share their
work so that it is freely available to others in their field and the
wider research community, promoting discussion, collaboration
and an exchange of ideas. In 2023, over 1,000 Elsevier journals
offered researchers the opportunity to simultaneously submit
a paper for publication and also post it as a preprint on SSRN.
40%
Increase in Research4Life downloads from Elsevier’s
ScienceDirect since 2021
2023 PERFORMANCE
Meaningful support of SDG 10 and SDG 13
through global partnerships to advance an
inclusive approach to climate action
Elsevier works to build capacity and equity in research and
health for an inclusive and sustainable future.
The Elsevier Foundation’s Chemistry for Climate Action
Challenge supports green and sustainable chemistry and
diversity to advance climate action in the global south. Two
projects were selected from 94 entrants across 47 countries,
with each winning project receiving €25,000 in funding. The
first in the Philippines focuses on biodegradable packaging
using agro-industrial waste supporting farming communities
by providing them with an additional source of income. The
second in Somalia produces methane gas from fruit waste
and cow manure as a cheaper and cleaner alternative to
traditional charcoal.
Also in the year, we held a workshop for winners of The World
Academy of Sciences-Elsevier Foundation Climate Action
Grants. Among eight women-led projects focused on innovative
solutions to climate change is one in Guatemala focused on food
security and resilience by restoring traditional home gardens;
another in Bangladesh enhancing climate-resilient
groundwater supply; and one in Uganda using aquifer storage
and recovery to enable local women to advance a climate
resilient food supply.
The Elsevier Foundation supported the Women Breakthrough
Awards at the 2023 Falling Walls Science Summit in Berlin,
celebrating women scientists focusing on gender equity and
broader equality in science. The innovation award went to
Atinuke Chineme and Marwa Shumo for their work
incorporating black soldier flies into circular economy models
for biowaste conversion and animal feed production; Sudeshna
Das received the Gender Mainstreaming award for her work on
AI to identify gender bias in school textbooks; and Simangele
Shakwane won in the Empowerment category for her work in
developing a culturally sensitive model for intimate care
facilitation in nursing care.
47
RELX
Annual Report 2023 | Our unique contributions
Legal
LexisNexis Legal & Professional advances SDG 16 (Peace, Justice
and Strong Institutions) through its products and services that
promote the Rule of Law. The LexisNexis Legal & Professional
global legal and news database contains 138bn documents and
records providing transparency of the law in almost 150 countries
and territories, with some 2.2m new legal documents added daily.
Through its content, data and analytics, LexisNexis Legal &
Professional supports the four components of the Rule of Law:
transparency of law, equality under the law, independent
judiciaries and accessible legal remedy.
LexisNexis Legal & Professional partners 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. LexisNexis Legal
& Professional utilises its data hosting capabilities to provide a
secure repository for the information collected. Over 60,000
photos and videos have been captured with the app since 2015.
In 2023, eyeWitness was selected as a game-changing digital
solution contributing to advancing the SDGs by the United
Nations Development Programme in their SDG Digital
Acceleration Agenda.
In 2023 the LexisNexis Legal & Professional US Voting Laws and
Legislation Center won the Legalweek Leaders in Tech Law award
for Justice Technology. The Center is a free resource offering
public access to over 40,000 federal and state election and voting
laws, including changes to laws over time, as part of an ongoing
effort to advance transparency of the law.
LexisNexis Legal & Professional does in-depth research and
produces reports on key legal industry developments, including
the LexisNexis Legal Aid Deserts report. Access to legal
representation is a fundamental element of the Rule of Law, but
many have neither the resources to engage a lawyer nor qualify
for legal aid. The report mapped resources throughout the UK that
can help those without means, particularly in areas such as
criminal, family or employment law. In 2023 the LexisNexis Rule of
Law Foundation (LNROLF) also launched the fourth in its series of
reports on 50:50 by 2030 which seeks to achieve gender equity in
the legal profession with a focus on Nigeria.
In 2023, the LNROLF began work to launch a judgement writing
tool for justices, judges and magistrates across the Ugandan
judiciary. The tool will assist in alleviating court delays and will
allow judicial officers to access information from the Uganda
case management and repository systems and write
judgements on templates curated from research from six
different global jurisdictions. It will allow judicial officers to
access this material within Microsoft Word, working offline
and while away from both internet and electricity, a common
occurrence in rural areas of the country.
Legal team members volunteered their time and expertise in
the year to support a global project to identify laws around the
world that discriminate against individuals who have suffered
from leprosy. Results were provided by 14 volunteers on 24
countries in partnership with the International Federation of
Anti-Leprosy Associations, providing critical knowledge
needed to target discriminatory laws through advocacy.
Since 2008, LexisNexis Legal & Professional has partnered
with industry leading associations to recognise individuals
and organisations for their commitment to the Rule of Law.
2023 award honourees include Filipino lawyer Raphael
Pangalangan, recipient of the IBA Outstanding Young Lawyer
of the Year Award, jointly established by Legal and the IBA Young
Lawyers Committee, to honour young lawyers who have shown
excellence in their career to date, commitment to professional
and ethical standards, and dedication to the community at large.
Winners included Argentinian lawyer Maria Fernanda Mierez,
recipient of the IBA Pro Bono Award; French lawyer Céline
Bardet, recipient of the Union Internationale des Avocats/
LexisNexis Rule of Law Award; and Guyana lawyer Melinda
Janki, recipient of the Commonwealth Law Conference/
LexisNexis Rule of Law Award.
300%
Increase in number of photos and videos uploaded to
eyewitness to Atrocities since 2021, over 60,000 photos
and videos uploaded to date
2023 PERFORMANCE
Meaningful support of SDG 16 by advancing
the United Nations Global Compact’s
SDG 16 Business Framework on Inspiring
Transformational Governance
The United Nations Global Compact states that
‘Transformational Governance is a principles-based
philosophy – not a new legal concept – that calls on
business to be more accountable, ethical, inclusive and
transparent to drive responsible business conduct, improve
environment, social and governance performance and
strengthen public institutions, laws and systems.’
During 2023, as a sponsor of the UNGC’s SDG 16 Business
Framework on Inspiring Transformational Governance, we
supported the creation of a Transformational Governance
Corporate Toolkit, including bringing together key
stakeholders at an event we hosted during 2023 UN General
Assembly week in New York. It was also a theme at the RELX
Rule of Law Café which we convene quarterly involving
members of the legal community, bar associations, NGOs
and peers.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
48
RELX
Annual Report 2023 | Corporate responsibility
2023 PERFORMANCE
Meaningful support of SDG 13 by
progressing the Net Zero Carbon Events
Initiative and developing the net zero
pathway for RX shows
Exhibitions
RX events strengthen communities and support the SDGs,
including SDG 5 (Gender Equality), SDG 9 (Industry Innovation
and Infrastructure), SDG 10 (Reduced Inequalities), SDG 12
(Responsible Consumption and Production) and SDG 17
(Partnerships for the Goals). In addition, RX supports SDG 13
(Climate Action) through our Net Zero Events commitments and
by using our event platforms to drive industry engagement in a net
zero carbon future. RX is committed to using its event platforms
to support and drive the SDG agenda by stimulating conversations
and collaboration, and educating and influencing the industries
it serves.
RX saw a strong return to face-to-face events in 2023 across all
geographies. A number of events set all-time attendance records,
highlighting the importance participants place on connecting and
doing business in person, allowing them to see many customers
and suppliers at one time. Increasing numbers of customers took
advantage of new RX digital and data analysis tools to source
business solutions and suppliers, capture and qualify more
leads, and analyse and improve their event performance.
In 2023, as part of its five-year, $1m commitment to racial equity,
RX continued to support nine global not-for-profit partners who
are working to grow racial equity in RX communities. During
the year, RX also announced partnerships with Black Young
Professionals Network to advance the careers of black
professionals in events; and Women in Exhibitions which aims
to empower women in the exhibitions industry and help nurture
the next generation of female leaders.
At the 2023 MIPTV television market, RX France presented its
fourth annual MIP SDG Award which honours media companies
for their contribution to delivering the SDGs. The 2023 award
was presented to Silverback for their work supporting UN goals
directed at climate action and the conservation of life below
water and life on land. RX France is part of the UN SDG Media
Compact which seeks to inspire news and entertainment
organisations to leverage their resources and talent to amplify
and accelerate progress towards achieving the goals.
In 2023, RX’s World Travel Market launched the inaugural
Diversity and Inclusion Summit and pledged to ensure that
50% of speakers within the conference programme come from
under-represented groups ensuring broad perspectives and
knowledge are passed on to WTM attendees.
Arabian Travel Market, hosted in Dubai, presented its new
Sustainable Stand Award to Hilton for their work on engaging
local suppliers in the creation of the stand and commitment
to repurpose materials over the next three years.
RX’s in-cosmetics published its first Global Sustainability
Trends Barometer, and a second regional report on
sustainability in the APAC region. Both addressed the
challenges and opportunities facing the cosmetics and
personal care industry in its ongoing journey to reduce its
carbon footprint.
MIPIM, the international property show in Cannes, launched
a new Road to Zero area, combining 400 sqm of exhibition,
networking and conference space, with a focus on ground-
breaking methods to decarbonise the real estate industry.
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 of the SDGs. Since 2017, we
have made over 1,800 journal articles and book chapters free
to access via the RELX SDG Resource Centre which would have
otherwise cost nearly £4m to make open access.
Highlighting the importance of industry collaboration in driving
climate change action, RX partnered with Elsevier at the 2023
London Book Fair on a new Sustainability Hub, which delivered
three days of programming designed to raise awareness about
climate change and encourage publishers to adopt sustainable
responses across the supply chain. Elsevier and RX also
partnered to calculate the emissions associated with Elsevier’s
exhibition stand and highlight their carbon emissions label.
RX will build on this work to calculate further stand emissions
and educate exhibitors on sustainable practices.
In February 2023, RX published a Carbon Reduction Playbook
to accelerate best practice across our event and operations
teams in order to help them make more sustainable choices.
To promote engagement with the Playbook, the RX Head of
Sustainability undertook a roadshow and held online events
that attracted 500+ attendees. This work will continue in 2024
with the publication of a Pathway to Net Zero roadmap, setting
out RX’s carbon reduction strategy to achieve net zero by 2040,
with key milestones for all shows.
During the year, as a member of the Net Zero Carbon Events
taskforce, RX participated in working group sessions to advance
industry measurement of event-related carbon emissions,
including event energy, waste, and production inputs. In the
year, 56 venues covering 141 face-to-face events reported
energy and/or waste data across RX. Additionally, we conducted
carbon footprints of ten events to understand what data is
available and get a fuller picture of emissions categories such
as logistics and production. These footprints have formed the
basis for specific event strategies to target reductions.
49
RELX
Annual Report 2023 | Our unique contributions
2024 objectives
By 2030
Protection of society
– SDG 10 (Reduced Inequalities):
Complete four new financial inclusion pilots in low-income
countries, working to provide lenders with improved risk
information from alternative data to benefit more people
Advance of science and health
– SDG 10 (Reduced
Inequalities) and SDG 13 (Climate Action): Advance inclusive
research and health by engaging key partners and convening
changemakers to advance health equity
Promotion of the rule of law and access to justice
– SDG 16
(Peace, Justice and Strong Institutions): Support
dissemination of the United Nations Global Compact’s
Transformational Governance Corporate Toolkit, including by
engaging customers
Fostering communities
– SDG 13 (Climate Action): Launch
carbon reduction action plan in support of RX’s Pathway to
Net Zero Roadmap and introduce exhibitor education on
sustainable stands
Universal, sustainable access to information
– Increase the
number of unique users of the RELX SDG Resource Centre by
15% over 2023
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
We held our annual RELX SDG Inspiration Day during the year with
a focus on nature and biodiversity, 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 ethologist,
environmentalist and UN Messenger of Peace, Dr Jane
Goodall, DBE.
Since 2011, the RELX Environmental Challenge has been
awarded to projects that best demonstrate how they can
provide sustainable access to safe water and sanitation where
it is presently at risk. In 2023 the awards were presented at
Pollutec, an RX France event for innovative solutions in waste
management, recycling, circular economy, water and energy.
The $50,000 first prize winner was Lombrifiltro by CPlantae,
a sanitary engineering firm and social enterprise based in
Mexico that has developed and commercialised prefabricated
vermifilters for onsite wastewater treatment, providing a
solution for communities without access to a sewer system.
The $25,000 second prize winner was TU Delft Water For
Impact for their development of electroagulation, a method
to treat surface water using solar power. For more information
see page 78.
2023 PERFORMANCE
Advance the SDGs by increasing the
number of unique users of the RELX SDG
Resource Centre
In 2023, we added 822 new content items to the RELX SDG
Resource Centre bringing the total number of content items
available to 4,729, an increase of 21% over 2022. We published
19 special issues in 2023 featuring curated articles, book
chapters and other content on specific topics. This included
a nature and biodiversity special collection to coincide with
the RELX SDG Inspiration Day, providing the over 1,500
attendees, and others, with additional resources on
the subject.
The RELX SDG Resource Centre also features the World We
Want podcast; recordings in the year included Robert
Skinner, Deputy Director and Chief of Partnerships and
Global Engagement in the United Nations Department of
Global Communications; David Emmett, head of biodiversity
partnerships at the Hempel Foundation; Dr Gabriel Filippelli,
Chancellor’s Professor of Earth Sciences and Executive
Director of the Indiana University Environmental Resilience
Institute; and Kume Chibsa CEO & Co-Founder of Afrovalley.
We closed the year with more than 220,000 unique users, a 42%
increase over 2022, exceeding our target of 15%.
65%
Increase in unique users of the RELX SDG Resource Centre
since 2021
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
Relevant
SDGs
50
RELX
Annual Report 2023 | 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, aligned 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 113 to 124. 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 ensure our approach to and implementation
of corporate responsibility initiatives is effective and consistent with our
stated objectives, our values and culture.
High quality assurance is crucial
for RELX as it ensures that internal
processes are operating efficiently
and effectively. With a robust
assurance process, we can identify
potential risks and opportunities
for improvement, enabling us to
optimise our operations and
achieve long-term objectives.
Jasdeep Gill
Financial and Operational
Audit Manager, RELX
CEO
Business area CEOs
CR
Forum
Chief Sustainability
Officer 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 Chief
Sustainability Officer and Global Head of Corporate Responsibility
provides formal updates to the Board and engages on key issues
with senior managers, who have CR-related Key Performance
Objectives (see page 132).
51
RELX
Annual Report 2023 | Corporate responsibility governance
We engage in policy discussions that matter to our business and
our customers. Strategic decisions about policy are made at
senior levels of the company to help advocate particular policies
and/or to share our expertise. We strive to help policymakers
around the world understand our business, innovations and
contributions to the public interest.
RELX employees may engage in direct advocacy. We also engage
through trade associations, policy organisations and third parties.
Lobbying activities done on behalf of RELX Inc. are managed by
the RELX Government Affairs team, and, in coordination with our
legal teams, are vetted, tracked and reported as required by law.
Consistent with our commitment to fostering a culture of integrity
including through good governance, RELX has a supplemental
policy and training for our employees that specifically relate to
engagement with government officials and agencies.
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.
Corporate political contributions require senior level review
and approval. Corporate contributions are reported as required
by law. Contributions are made on a bipartisan basis and no
funds are donated for presidential campaigns or any other
federal-level campaigns.
We remained diligent through the year 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.
Helping our people pursue the highest
standards 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 relevant
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 include conducting
periodic compliance risk assessments; implementing effective
policies, procedures, training and communications; overseeing
misconduct reporting channels, investigations processes and
remediation efforts; and monitoring and auditing internal
controls. We engage in a legal and compliance risk assessment
twice a year to identify the top legal and compliance risks to the
Company. The RELX Operating and Governance Principles further
describe the process, policies and controls to manage risk.
Our Code of Ethics and Business Conduct (the Code) sets the
standards of behaviour for all RELX employees and is reviewed
regularly. 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 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.
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%
�
Completion rate for all
courses within 90 days
of issuance
13
Our Code of Ethics and
Business Conduct is available
in 13 languages
^ Independently assured
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
52
RELX
Annual Report 2023 | Corporate responsibility
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.
We engage with our employees about compliance through digital
communications and other media, including videos and animation.
To raise awareness during Compliance Week 2023 we held
challenges and quizzes, and recognised outstanding employee
contributions to our culture of integrity with Integrity Hall of
Fame inductions.
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 our supply chain.
As stated in our Modern Slavery Act Statement, available at
www.relx.com
, we stand against all forms of slavery and
human trafficking. We do not tolerate it in any part of our business,
including our supply chain. As a UNGC signatory we uphold its Ten
Principles related to human rights, fair and non-discriminatory
labour practices, the environment, and anti-corruption. Our
policies are also informed by the Universal Declaration of Human
Rights, the OECD Guidelines for Multinational Enterprises, the
UN Guiding Principles on Business and Human Rights, the ILO
Declaration on Fundamental Principles and Rights at Work and
the Women’s Empowerment Principles. We have consulted widely
on a RELX Human Rights Policy which we will launch in 2024.
Data privacy
Data is integral to the solutions we provide that further our unique
contributions as a business, including protecting consumers from
the risk of fraud; allowing secure online transactions; improving
access to financial, healthcare and government benefits; and
delivering high quality medical care.
Recognising concerns and sensitivities around personal data,
our commitment to data privacy remained a critical RELX priority
in 2023 and continues to be supported by strong governance,
transparency and accountability. Dedicated privacy teams
implemented requirements for compliance with personal data
protection regulations around the globe. In the United States,
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.
Certain US RELX companies have self-certified their participation
in the Data Privacy Framework programme.
We proactively take into account privacy concerns in developing
and offering our solutions. Our Privacy Principles, available at
www.relx.com/corporate-responsibility/being-a-
responsible-business/privacy-principles,
guide our approach
to the responsible collection and use of personal data and are
supplemented by internal privacy policies and guidance that are
updated by our privacy offices to respond to new requirements,
best practices and expectations.
We undertake activities and training that deepen employee
awareness about data privacy. For Data Privacy Day 2023, we
organised internal panel discussions focused on privacy, AI and
trust. We also celebrated the winners of the annual RELX Privacy
Principles Champions Competition, which recognises the
achievements of employees in protecting personal data and
implementing our Privacy Principles.
2023 PERFORMANCE
Support of SDG 16 by increasing efficiency
in fulfilling privacy requests at scale
As laws granting individuals more privacy rights continue to
emerge around the world, RELX is receiving more privacy
rights requests. In 2023, RELX privacy teams improved the
forms and mechanisms used to intake such requests in
order to increase efficiency in responding to the requests.
These measures enable more streamlined services so that
individuals are empowered to exercise their privacy rights as
quickly and as easily as possible.
Cyber security
We observed Cyber Security Awareness Month with both central
and business specific initiatives aimed at improving security
understanding for employees. The theme for 2023 was Get Your
Cyber Priorities Straight. Events included a new Cyber Security
Escape Room Challenge; educational sessions on AI and Security,
webinars on cyber security for all ages, and avoiding traps on
social media. We also launched our bespoke video advice series,
RELX Cyber Security Experts Say. In the year, 100%� of employees
were included in monthly phishing simulation exercises. During
2023, we continued to enhance our security efforts with additional
infrastructure monitoring capabilities both internally and through
third parties.
In addition to more than 1,000 questionnaires and audits by our
customers annually, we also engage third parties to perform
independent audits on certain of our products and services.
These audits help build trust and assurance in our target markets,
especially where sensitive personal information is involved.
For example, we have completed SOC 2 audits on our Risk US
datacenters and our Lexis+ product, in addition, our UK Risk
products have been ISO 27001 certified. 84% of our product
revenue in Risk is covered by a third-party audit.
2023 PERFORMANCE
Support of SDG 16 through successful
completion and testing of technical
resilience enhancement initiatives across
the business areas
We invested more than $9.3m in 2023 across our business to
enhance our technical resilience posture. This included
initiatives in application dependency analysis, defining triage
recovery order, implementation of resilient backups, and
recovery testing, both desk-based and technical. Additional
efforts will follow in 2024 to expand the scope of technical
resilience applications and perform robust recovery testing.
^ Independently assured
53
RELX
Annual Report 2023 | Corporate responsibility governance
2023 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.
Work is currently underway on a pioneering Rule of Law
project aiming to produce and maintain a set of freely
available consolidated tax laws in Africa. RELX Tax,
LexisNexis South Africa and the LexisNexis Rule of Law
Foundation have worked closely with the Ministry of Finance
in Ethiopia and made substantial progress in 2023. The
project is close to completion and targeted for publication on
the Ethiopia Ministry of Finance’s website in the first half of
2024. In 2023, we secured the approval from the Rwanda
Revenue Authority to commence a similar project in Rwanda.
2024 objectives
By 2030
Security
– SDG 16 (Peace, Justice and Strong Institutions):
Continued enhancement of our technical resilience posture
across the business and expansion of applications and products
covered by independent third-party assessments
Privacy
– SDG 16 (Peace, Justice and Strong Institutions):
Enhance processes for conducting privacy and data protection
impact assessments
Responsible tax
– SDG 16 (Peace, Justice and Strong Institutions):
Continue to advance African tax law codification pilots
Continued progressive actions that advance excellence in
corporate governance within our business and continue
providing information, tools and analytics that promote high
standards of corporate governance by our customers
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 such factors in its
investment decision-making as they can have a material impact on
risk and return. The Trustee has produced a Responsible
Investment Policy which has been shared with all investment
managers. Throughout the year, the Trustee Board received
presentations from corporate responsibility (CR) experts and the
Responsible Investment Sub-Group met on a number of occasions.
Furthermore, the Trustee submitted its first Taskforce on
Climate-Related Financial Disclosures (TCFD) report in the year.
CR issues are also relevant to the investment decisions made
by RE Venture Partners, RELX’s corporate venture arm. REV
continues to invest in ethical AI, sustainable food technology
and the creation of inclusive content for language learning.
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. The B Team is a group of business leaders
committed to sustainability, equality and accountability.
Globally, in 2023, RELX paid £619m in corporate taxes, but also
paid and collected much more in payroll taxes and indirect taxes.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
Relevant
SDGs
54
RELX
Annual Report 2023 | Corporate responsibility
Our people
At RELX, we understand that people value a sense of real purpose
at work: knowing that their actions are contributing toward
something positive for themselves, their colleagues, their
customers, the environment, and society. The nature of our
business means our people experience this in a number of
ways, including advancing the rule of law, improving outcomes
for patients, or helping customers achieve their goals; it’s at
the heart of the relationship between RELX and its people.
Supporting our employees is a core principle. We strive to
create an inclusive, diverse and collaborative workforce and an
environment which encourages employees to seek improvements
in all they do. We have 130 Employee Resource Groups that allow
colleagues to collaborate, advocate and engage communities,
furthering inclusion and diversity at RELX. We conduct annual
company-wide employee opinion surveys to understand what
is working well and where we can do better to support our
employees’ experience.
In 2023, our employee survey
received responses from
approximately 88% of
our global
employee population.
Training and Development
RELX has always ensured I have the training
and support to succeed in my job and
progress to the next stage of my career.
Suzanne Perry
Group Treasurer, RELX
At RELX, we provide our people with resources, tools and
experiences to help them perform and grow. In 2023, we
invested over $15m and more than 506,000 hours in learning
and development opportunities that are regularly refreshed
based on employee feedback and business impact. The
effectiveness of these development options is tracked through
our employee opinion survey, which monitors internal mobility
and employee satisfaction with learning provision.
In 2023, we had two key cross-RELX focus areas for skills
development. Knowing that people manager capability is a factor
in driving employee performance and engagement, we created
the Manager CORE programme to enhance manager skills. More
than 800 managers participated in 2023 and rollout will continue
through 2024. As a technology-driven business, we have also
continued our focus on technology skills development in the year,
covering topics like artificial intelligence. Learning opportunities
are designed to ensure employees do not only gain knowledge, but
also have an opportunity to experiment and test their capabilities.
Our CEO and executive committee members care deeply about
helping our people to develop and each year work alongside other
senior leaders to conduct organisational talent reviews. This is
underpinned by Enabling Performance, 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.
Many of RELX’s most senior leaders benefit from active focus
on their present and future career objectives through our
Management Development Process, which involves skills
assessment and the creation of a personal development plan.
Progress against development plans is regularly updated to
ensure that career aspirations are being met and factored into
succession planning, through the annual Organisation Talent
Review Process, led by the CEO and Chief HR Officer.
We offer a global mentorship programme, NetWorx,
which is open to all on request. This digital mentoring platform
recommends matches based on individual profiles and specific
goals, creating six month long mentoring relationships. In 2023,
the platform supported more than 1,800 active mentoring pairs.
People
We owe our success to RELX’s talented employees, including technologists,
researchers, event directors, product managers, data scientists and many
others. They are driven by a strong sense of purpose, and they count on us
to create a fair, challenging, rewarding and supportive work environment
where they can achieve their potential.
Heather Williams
Director, Product
Management
Elsevier
We get to work on meaningful
problems and contribute to
important outcomes. I can go to
sleep at night feeling like what I do
makes a difference to the world.
2023 Comparably Best Global Company Culture list
§
7th – Elsevier
§
8th – LexisNexis Legal & Professional
§
10th – RX
§
Comparably Best Work-Life Balance Award –
LexisNexis Risk Solutions
55
RELX
Annual Report 2023 | People
Inclusion and Diversity
I have found true allyship here at RELX
and an open, free, comforting space
to be yourself.
James Berry
Senior Technical Writing Analyst, LexisNexis Risk Solutions
At the heart of our approach to inclusion, is the belief that
everybody should be able to succeed and grow in a business that
values them. Feeling you work for a company, a manager and a
team that really sees and embraces who you are is what inclusion
is all about. Inclusion is to feel heard, to be valued, to contribute
and to access opportunity equally, regardless of personal
characteristics. We encourage and promote diversity of all types
and believe that RELX derives competitive advantage from the
breadth of backgrounds, diverse perspectives, opinions and
differing ways of thinking that our people bring to everything
they do.
This is underpinned by our Code of Ethics and Business Conduct,
where we prohibit discrimination and 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.
RELX Employee Resource Groups (ERGs) encourage colleagues
to collaborate, advocate and engage communities, furthering
inclusion and diversity at RELX.
ERGs help advance a culture of
inclusion, and this is further supported by allowing all employees
to take two days paid time-off per year for ERG-sponsored
activities. In 2023, there were 130 active ERGs and employees
recorded over 19,000� ERG hours.
A highlight of our 2023 ERG activity was the Inspiring Inclusion
series of virtual events, designed to help colleagues understand
and embrace the diversity of our global business. More than 3,200
employees participated and external speakers included Makaziwe
Mandela, a social and political justice advocate highlighting issues
affecting African communities and trans activist Max Siegel.
Our 2020-2025 inclusion goals, covering all aspects of diversity,
guide our efforts and in the year we progressed them through a
variety of targeted initiatives.
Business area initiatives include:
LexisNexis Risk Solutions’ Ignite and Accelerate
is a bespoke
leadership development programme with mentoring, coaching
and sponsorship for over 61 high-potential women to date, to help
further their career development. Since 2019, 62% of participants
have been promoted, with an 83% retention rate.
Elsevier’s Rising TIDE Internship Programme
is an ongoing
internship programme, where college students and recent
graduates from diverse backgrounds received paid internships
to join technology, product development, publishing, marketing,
and finance teams. There were 24 participants in 2023. Elsevier
was named best company for diversity by Comparably in the year.
LexisNexis Legal & Professional
was recognised as a Best Place
to Work for Disability Inclusion in the year, receiving a top score of
100 from the Disability Equality Index. The Project Empowerment
scheme continued which provides global training on how to
successfully embed product accessibility.
RX
was awarded the Race Equality Matters’ Trailblazer status
in recognition of its work to address racial inequality within
the organisation through training and recruitment initiatives.
It recognised RX’s actions to create a more psychologically safe
environment, increase representation of people of colour in the
workforce, and improve the diversity of its candidate pipeline.
Gender
In 2023, the gender diversity of our senior leader population was
steady at 31% women senior leaders, while our women people
managers increased from 44% in 2022 to 45%. In 2023, women
comprised 40% of the Board.
We have implemented a range of initiatives to enhance career
development opportunities for women, particularly those who have
the potential to grow into senior leadership roles. These vary by
business area but typically involve mentoring, coaching and
sponsorship to support career journeys.
For example, Elsevier’s
Developing Talent for Gender Equity
programme started in 2019, with
220 alumni to date.
Individuals who have completed the programme
are more likely to appear on a succession plan, be promoted or have
a job move, demonstrating improved talent outcomes.
Our business relies heavily on technologists and we need to
attract the best talent to support our business ambitions.
We directly employ approximately 8,000 technologists, 26%� of
whom are women and we aim to increase that number through
a variety of initiatives including the Women in Tech Mentoring
programme, Tech Talent Charter
and participation in events
such as the Grace Hopper conference.
Employees
50%
50%
50%
50%
51%
2023
2020
2022
2021
2019
Managers
42%
42%
44%
44%
45%
2023
2020
2022
2021
2019
Senior leaders
30%
28%
30%
31%
31%
2023
2020
2022
2021
2019
Gender (% women)
^ Independently assured
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
56
RELX
Annual Report 2023 | Corporate responsibility
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
.
Women
Men
Senior leaders*
141
31%
310
69%
All employees**
18,615
51%
17,885
49%
*
As defined by our internal job architecture.
** Full-time equivalent.
2023 PERFORMANCE
Expand the Women in Tech mentoring
programme with more pairings
The Women in Tech Mentoring programme aims to increase
the representation of women in technology by developing
their capabilities and empowering them to make conscious
career decisions. The programme invites women who are
interested in moving into a technology field or role to apply.
They are paired with women and men with experience in
technology who serve as mentors for nine months; 358
employees participated in the programme in 2023, a 44%
increase over 2022.
Race and ethnicity
Ethnic minority representation in the US and UK was 29%,
two key jurisdictions which account for approximately 56% of our
employee base. Ethnic minority senior leaders increased from
12% in 2022 to 15% in the year, and ethnic minority managers also
increased from 19% in 2022 to 20% in 2023. At least one member
of our Board of Directors 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 and support career advancement including talent
development programmes such as Risk’s Emerge and Evolve
that provided 31 employees with coaching, leadership skills
and enhanced visibility, preparing them for more senior roles.
Our ongoing fellowship programme in partnership with the
African Ancestry Network ERG and the LexisNexis Rule of Law
Foundation selected 15 fellows from Historically Black College
or University Law School Consortium students to further develop
their leadership skills with support from LexisNexis colleagues.
17%
13%
<1%
3%
4%
1%
61%
Employees
UK
14%
9%
<1%
<1%
2%
6%
<1%
67%
E
mployees
US
23%
7%
2%
<1%
1%
1%
66%
Managers
13%
5%
5%
<1%
<1%
<1%
1%
75%
Managers
3%
2%
<1%
Senior leaders
74%
20%
<1%
White
Asian
Black
Multi-racial
Other
Prefer not
to disclose
Unknown
10%
4%
5%
1%
Senior leaders
79%
<1%
<1%
White
Asian
Black
Hispanic
Multi-racial
Indigenous
Prefer not
to disclose
Unknown
Ethnicity data is 98% self-reported in the US and 100% self-reported in the UK.
Ethnicity
57
RELX
Annual Report 2023 | People
LGBTQ+
RELX scored 97% in the 2023 Workplace Pride Global Benchmark,
receiving the Advocate designation for LGBTQ+ workplace
inclusion for a fourth consecutive year. We also scored 100% in the
Human Rights Campaign Foundation’s 2023 Corporate Equality
Index, the national US benchmarking tool on LGBTQ+ corporate
policies, practices and benefits on workplace equality.
We launched the Proud to be RELX mentorship programme
which brings together the LGBTQ+ community and its allies
across RELX, inspiring personal growth, career development,
and a greater sense of inclusion. 77 colleagues signed up for
the programme, forming 38 mentoring pairs. To ensure we
are recruiting diverse talent, we joined myGwork, the largest
recruiting platform for the LGBTQ+ community.
We are a member of the Open for Business Coalition which
constructs and promotes the economic and business case
for LGBTQ+ inclusion.
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. Our CEO is a signatory to the Valuable 500,
a global CEO community revolutionising disability inclusion.
We continue to strengthen and embed disability inclusion for our
employees. Risk launched its disability allyship track which aims
to educate on what it means to be a stronger ally to the Disabled
and Neurodiverse community. Elsevier launched its Enabled
Mentoring Programme in 2023, a programme designed to
empower individuals with disabilities and create a more inclusive
work environment. Legal was recognised as a Best Place to Work
for Disability Inclusion in the year, receiving a top score of 100 from
the Disability Equality Index. RX partnered with health and safety
and legal teams to develop an Accessible Events Survey, to help
identify accessibility improvements that can be made at future
RX shows.
Inclusive workplace
Throughout the organisation there is an
ingrained culture of trust, collaboration and
respect, which is exemplified by the flexible
working conditions that help to ensure a
comfortable work-life balance.
George Spice
Head of eSales, Elsevier
We have developed Ways of Working policies in the US, UK and
the Netherlands to establish a framework for hybrid and flexible
working that balances the needs and wishes of employees with
the requirements of our business and to help managers
make decisions.
We have established policies for parental leave across RELX.
In the US our Modern Family Leave benefit offers up to 14 weeks
of paid leave following the birth of a child or adoption and up to
8 weeks of paid leave to care for an eligible family member with a
serious health condition. In the UK we have recently implemented
a new parental leave policy across all business areas covering
maternity, adoption, partner and shared parental leave. It applies
to all, regardless of sexual orientation or gender and offers 26
weeks enhanced maternity leave and six weeks of partner leave.
Across the business, we have provided training which
encompasses inclusive leadership, unconscious bias, as well
as psychological safety workshops for managers and teams.
We measure how psychologically safe our employees feel
through regular surveys and make intranet resources
available to everyone.
2020-2025 Inclusion goals
Gender:
Increase 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
Our Inclusion and Diversity Policy is available at
www.relx.com/cr-downloads.
41 to 50
23%
30 and under
23%
51 and over
20%
31 to 40
34%
Employee age split
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
58
RELX
Annual Report 2023 | Corporate responsibility
Health and safety
The importance of employee health and safety is emphasised
in the RELX Code of Ethics and Business Conduct and 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 customers. The CEO is responsible for health and
safety on behalf of the Board.
We consult with employees globally on health and safety through
staff and works councils and reinforce good health and safety
practice through regular communications, including a dedicated
intranet site with relevant information.
We also hold regular
Health and Safety Committee meetings.
We provide tailored health and safety training to employees
and use the services of third parties to assist us in ensuring
compliance with local health and safety rules and to promote best
practice. This is particularly important for employees at higher
risk of injury in the workplace, including those that work in our
book warehouses and exhibitions. Where necessary, we engage
local specialists to conduct safety reviews or air quality tests at
specific locations. We also provide employee support following
any incident or health concern. There were no work related
deaths reported in 2023.
With a number of employees continuing hybrid working
arrangements (working from both an office location and home),
we provide health and safety support for both office and home
working, and over 5,000 employees have completed our Healthy
Working programme which includes personalised risk
assessments and action plans.
We regularly monitor and ensure our buildings are maintained
and comply with relevant health and safety legislation and
standards, in conjunction with third parties and landlords,
where appropriate.
RX has instituted an internal programme of recording, reviewing
and continual learning from health and safety-related incidents to
enhance safety across our events, given the safety risks during the
construction and dismantling of an exhibition event. The business
regularly reviews mitigations to ensure hazards are appropriately
managed, and engages with local and global exhibition industry
associations, working together to drive best practice and safety
standards at all our events.
Health and Safety Performance
2023
2019
2021
2022
2020
0.06
0.01
0.01
0.03
0.02
Lost time incidents per 200,000 hours worked
Slip trip fall
67%
Use of tools
or equipment
22%
Manual handling/repetitive strain
11%
Lost time incidents by type
Accident reporting covers approximately 82% of global employees.
59
RELX
Annual Report 2023 | People
Well-being and support
What I love about RELX’s well-being
programmes is that they provide a platform
for people to connect and make work a
happier place.
Mai Trinh
Head of Tax Risk, Reporting and Reputation, RELX
We support the physical and mental health of our people, with
dedicated health and well-being resources available to all employees
including a well-being hub with free access to the Headspace mental
health app, and fitness classes, as well as training courses.
Additionally, we have a network of more than 90 Well-being
Champions.
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.
2023 PERFORMANCE
Relaunch Fit2Win global employee fitness
competition
In 2023 we relaunched the RELX Fit2Win competition where
employees worked in teams to climb a virtual mountain by
logging their activities on an app; running, cycling, swimming,
or walking over a two-week period.
Over 100 teams took part, with more than 400 participants
logging 7,553 activity hours. The winning teams received cash
donations ($1,000, $750, $500) to charitable causes of their
choice, which included the Center for Animal Rescue and
Enrichment of St. Louis, World Bicycle Relief and UNICEF.
Reward
We have robust and well-established reward mechanisms across
RELX, with a strong emphasis on performance, fairness, equity
and market competitiveness. We provide reward education for
people managers across our four business areas which includes
training on pay equity; they also have access to on-demand reward
eLearning modules with content added to onboarding materials
for new managers. In 2023, we continued our efforts to help
employees understand more about reward practices with
materials explaining market benchmarking and how we make
sure rewards are competitive.
RELX is a Living Wage accredited employer in the UK, certified
by the Living Wage Foundation. We regularly review our global
salary benchmarking data, using a variety of data sources. We
make adjustments based on market competitiveness and pay
equity and we formally review wages at least once a year.
2023
RELX people in numbers
FTE employees
36,500
Full-time employees (%)
95%
Part-time employees (%)
5%
Average length of service (years)
8
Total hours worked by all employees in the year
64m
Temporary workers (%)
2%
Contingent workers
1,300
Employees represented by a collective bargaining
agreement (%)
13%
Global HR information system coverage
100%
Turnover
Total turnover rate
11.9%
Voluntary turnover rate
8.4%
Involuntary turnover rate
3.5%
Training and development
Investment in training
$15m
Training hours
506,000
Employee engagement
68%
Reward
Employees with variable pay opportunities
58%
Employees with access to share purchase
programmes (US/UK/NL)
60%
Absence
Absence rate (number of unscheduled absent days
out of total days worked in 2023, UK and NL)
1.31%
US Family Medical Leave Act requests
1,723
2024 objectives
By 2030
Inclusion
– SDG 10 (Reduced Inequalities): Continue to
engage colleagues globally through our Inspiring Inclusion
programme
Pay equity
– SDG 8 (Decent Work and Economic Growth):
Continue to assess pay competitiveness and pay equity
Well-being
– SDG 3 (Good Health and Well-Being): Expand
World Well-being Week activities across RELX through
enhanced programming with greater reach
Continued high-performing and satisfied workforce
through talent development, D&I and well-being
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
Relevant
SDGs
60
RELX
Annual Report 2023 | 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.
Peer Review
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 reputation.
Elsevier’s Peer Review Workbench (PRW) provides researchers
and academics, upon application, access to Elsevier journal
manuscript metadata to allow systematic analyses of peer review
processes at scale. PRW advances transparency and evidence-
based studies in the journal editorial and peer review process.
Elsevier also enables the automatic sharing of peer review
metadata with a feed of peer review information from our
submission and peer review system Editorial Manager to Open
Researcher and Contributor ID (ORCID) once the peer review
process has been completed. ORCID is a not-for-profit,
cross-publisher organisation that fosters trustworthy connections
between researchers and their institutions. Researchers receive
a unique ID they can connect to their peer review activities across
journals and publishers to showcase their reviewing work. Data
is supplied directly by participating publishers and cannot be
entered manually ensuring reliability.
Read more about peer review at
www.elsevier.com/
reviewers/what-is-peer-review
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, pluralism of sources,
ideas and voices.
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.
The first question we ask ourselves
when developing our products is,
will this help our customers solve
a problem? Through a continuous
process of customer feedback and
engagement, we gain the insights
we need to ensure our solutions
can help our customers answer
questions, solve problems and
plan for the future.
Gemma
Hersh
SVP Global Academic and
Government Sales
Elsevier
61
RELX
Annual Report 2023 | Customers
Digital knowledge and innovation:
advancing customer goals
Across RELX, we work to address customer challenges
through digital innovation.
In 2023, electronic products and services accounted for
83% of revenue, up from 30% in 2003.
Risk
ICIS, part of Risk, is a global provider of chemical and energy
marketing intelligence. In 2023, ICIS launched the first Pyrolysis
Oil Pricing Indices to address increasing consumer demand for the
pricing of chemical recycling outputs. The new price series sits
alongside ICIS’ comprehensive coverage of key recycling chains.
Supplier Carbon Footprints, which harnesses ICIS’
understanding of chemical markets combined with carbon
footprint data from lifecycle data providers Carbon Minds,
enables companies to identify, measure, and manage
opportunities to reduce global supply chain emissions for
chemicals and plastics, with ground-breaking GHG emission
data by supplier, region and plant. For many businesses, Scope 3
emissions in particular account for most of the overall carbon
footprint of a company. ICIS customers are now able to report
emissions and identify areas of focus, empowering customers
to make supply chain decisions that could significantly reduce
their Scope 3 emissions.
Scientific, Technical & Medical
Elsevier announced Scopus AI in 2023 which provides summaries
and relevant references in response to natural language
questions about research topics. Scopus AI combines generative
artificial intelligence with Scopus’ trusted content and data to help
researchers gain deeper insights faster, facilitate collaboration,
and increase the societal impact of research. Scopus AI provides
summaries based on abstracts, allows navigation for extended
exploration, and cites sources. Elsevier ensures that the content
used in Scopus AI is rigorously vetted, based on over 29,000
academic journals from more than 7,000 publishers worldwide.
Elsevierannounced an early access launch of ClinicalKey AI in the
year, which helps physicians access accurate evidence-based
information at the point of care, by combining Elsevier’s large
corpus of trusted medical information with advanced AI
technology. It features conversational search to accelerate access
to evidence-based clinical information and adheres to industry
data privacy and security standards and the RELX Responsible
AI principles.
Also in 2023, Elsevier launched EmBiology, an AI-driven research
tool that provides visualisations of biological relationships, giving
researchers a rapid understanding of disease biology and
allowing them to focus on critical evidence. Researchers working
in drug discovery and development are able to intuitively explore
biological relationships and concepts to improve drug target and
biomarker identification and prioritisation, enabling more
confident decision making about what targets to pursue.
2023 PERFORMANCE
Support of SDG 8 by rolling out the RELX
Responsible AI Principles across the
business areas
As data science and artificial intelligence (AI) are increasingly
applied across RELX to improve customer outcomes and
business processes, we created the RELX Responsible AI
Principles to guide their use. The Principles were published
in 2022 and are publicly available at
www.relx.com/
corporateresponsibility/engaging-others/policies-and-
downloads.
The Principles are accompanied by a RELX position
paper on AI and a dedicated address that anyone can use to
provide feedback or raise queries: ResponsibleAI@relx.com
The Principles state: We consider the real-world impact of our
solutions on people, we take action to prevent the creation or
reinforcement of unfair bias, we can explain how our solutions
work, we create accountability through human oversight,
we respect privacy and champion robust data governance.
The Responsible AI & Data Science (RAIDS) team works
to implement the RELX Responsible AI Principles across
the company. They are responsible for developing policy,
processes, tools, resources and training to support teams
working with data science, machine learning and AI in
embedding the Principles in their day-to-day activities.
In 2023, we published the RAIDS policy and accountability
framework which is integrated into our new Data Science
Project Review governance process and supported the
business with rollout and adoption. The purpose of the
policy is to support colleagues in implementing the RELX
Responsible AI Principles in their business area, drawing on
best practice from within our business and other organisations.
Four primary RAIDS Champions, embedded across the
company, provide ad-hoc training and support in priority areas,
particularly around generative AI projects, as well as a wider
network of more than 85 colleagues working on integration
of the Principles in products and workflows. In 2023, they
collectively supported more than 30 projects, held tailored
workshops and training sessions and published a suite of
self-service resources and training videos. Feedback from the
workshops will inform a review and update to the Principles in
2024, reflecting the speed and scale at which AI is evolving.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
62
RELX
Annual Report 2023 | Corporate responsibility
Legal
Legal introduced Lexis+ AI in 2023, a generative AI product
designed to streamline legal research and drafting. The new
platform delivers trusted results in an easy-to-use interface
with hallucination-free, linked legal citations, combining AI
technology with proprietary LexisNexis search technology.
It features conversational search, intelligent legal drafting,
insightful summarisation and document upload capabilities,
all supported by encryption and privacy technology to keep
sensitive data secure.
In 2023, Legal launched InterAction+, a cloud based legal CRM
solution to help lawyers manage relationships and identify
opportunities and at-risk clients. With exclusive content from
LexisNexis Legal and Professional, US customers can view
litigation events by firm, practice area and jurisdictions of
clients and prospects.
Exhibitions
Digital event technology continued to transform the way RX’s
customers connect and do business by enabling them to create
and capture more value. Emperia is RX’s badge scanning mobile
app that enables exhibitors to capture and qualify leads. In 2023
60% of exhibitors used Emperia at events where it was available
and at RX’s ISC West and Interphex 2023 shows adoption rates
reached 100%.
RX collects and uses behavioural data to help its customers make
better decisions. It’s Exhibitor Dashboard brings together event
data and insights in real time, allowing customers to analyse their
results, improve their event performance and justify financial
investment. In 2023, the dashboard was made available to over
29,000 exhibitors at 104 RX events, of which 33% used the tool.
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 2023, 86% 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 Elsevier’s 2,900 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.
During 2023, Elsevier announced a geographical pricing pilot
to support authors in low- and middle-income countries with
equitable open access publishing options. The pilot will run
across 143 of Elsevier’s Gold Open Access journals and tailor
pricing structures according to Gross National Income per
capita. The model aims to reduce financial barriers that hinder
researchers and institutions from low- and middle-income
countries from publishing research in Gold Open Access
Journals. Elsevier continues to waive article publishing
charges for authors in the lowest economic band.
2023 PERFORMANCE
Support of SDG 17 by strengthening
Corporate Responsibility and Sales team
engagement
In 2023, we developed materials to help sales teams build
awareness of our CR priorities with their customers. This
included an animated video highlighting how RELX products
and services impact society and contribute to advancing the
SDGs. The video was featured at the RELX global senior
management conference and a longer version will be part of
RELX onboarding materials and a new toolkit launching in 2024.
We presented our Annual RELX SDG Customer Awards
during the RELX SDG Inspiration Day. These included Neste,
nominated by ICIS and Proagrica, part of LexisNexis Risk
Solutions. Neste is pioneering more sustainable aviation fuel
and has committed to supporting customers to reduce
greenhouse gas emissions by at least 20 million tonnes of
CO
2
e annually by 2030. Solvay, a global leader in materials,
chemicals and solutions, was nominated by Elsevier for its
One Planet roadmap covering three categories; climate,
resources and better life, with ten measurable commitments
where the company has the biggest positive impact. Panasonic,
nominated by LexisNexis Legal & Professional, aims to reduce
CO
2 emissions by more than 300 million tonnes, or about 1%
of the current total global emissions, by 2050. RX nominated
Silverback Films, using the power of film-making and
story-telling to reveal the urgent truth of our changing planet to
a global audience.
We published visual stories for internal and external audiences
to mark the SDG midway point and included a summary of
tools and reports from across RELX that advance the SDGs
such as LexisNexis Legal and Professional’s Exploring the
Global Sustainable Innovation Landscape: The Top 100
Companies and Beyond Report, Elsevier’s Biodiversity
Research in the Netherlands and Worldwide Report,
and The RX Sustainability Playbook.
Customers are increasingly engaged in corporate
responsibility matters and to address this increased interest
the CR team supports sales teams in responding to customer
surveys and requests for information. Such requests have
increased by more than 300% since 2021.
63
RELX
Annual Report 2023 | Customers
Elsevier is a partner of Clearinghouse for Open Research
(CHORUS) which enables public access to funded research.
CHORUS 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 11,500 institutions in over
125 low- and middle-income countries receive affordable access
to over 200,000 peer-reviewed resources. Elsevier is a founding
partner, providing around 21% of the content in Research4Life,
as well as access to our abstract and citation database Scopus.
Elsevier offers free media access to over 2,000 journalists through
our newsroom. In addition, Patient Access provides patients and
caregivers with access to individual papers related to medicine
and healthcare at no cost, upon request, within 24 hours.
Elsevier publishes a suite of nine journals, called Research
Elements, which focus on research methods, data and equipment.
Openly sharing and describing the methodologies and data
generated by experiments improves the reproducibility of
published research. Researchers who have published in these
journals note benefits such as reaching new readers, sharing
innovative technologies and making research more accessible.
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.
We provide essential resources in times of emergency, making
full text articles free to access for healthcare professionals,
researchers, librarians and members of the public affected by
disasters. While the World Health Organisation has now ended the
Public Health Emergency of International Concern categorisation
for Covid-19 and Mpox, all related content published through July
2023 will remain freely available, encompassing early-stage and
peer-reviewed research, as well as evidence-based clinical
overviews, patient education and drug monographs.
In 2023, Elsevier continued to offer free resources to Ukrainian
researchers via a Ukrainian Academic Support page online where
researchers can access waived and reduced author publishing
charges for open access journals. They also have access to
publishing resources on Researcher Academy, which provides
researchers free e-learning modules developed by global experts
and career advice. 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 and authors, we worked with the Polish
Academy and the Ukrainian Council of Young Scientists to deliver
two workshop series, one for editors and another for authors.
The Lancet celebrated its bicentennial in the year with a
commitment to ensuring that medicine improves lives and that
knowledge transforms society for the better. The Lancet affirmed
its five key priorities – universal health coverage, mental health:
climate health, health research, and child and adolescent health;
emphasising collaboration with the medical community to
advance healthcare and increase the social impact of science.
Elsevier’s Library Connect programme, with a website,
newsletter, events, social media offerings, as well as a new
Library Connect Academy, provides library and information
science professionals worldwide with opportunities for
knowledge sharing. As of 2023, there were 60,000 Library and
Information Science (LIS) professionals globally subscribed to
the Library Connect Newsletter, a complimentary publication,
covering LIS best practices, trends and technology.
During 2023, the Library Connect website, containing articles,
infographics, videos and other resources, received approximately
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.
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 at
www.relx.com/
cr-downloads.
Risk employees continued enhancing our A11yCAT tool to help
developers address accessibility bugs in real time while edition
2.0 was successfully beta tested in the year for release in 2024.
It will highlight code to help developers discover errors.
Elsevier empowers all learners by providing features such as
full-text search, marked tables, magnifiable content, screen
reader compatibility and high-contrast text. Its 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 800 candidate accommodation
requests, ensuring that these candidates have an accessible and
inclusive experience.
In 2023, members of the Accessibility Working Group logged over
275 accessibility projects and Elsevier’s Global Books Digital
Archive fulfilled more than 3,200 disability requests, 91% of them
through AccessText.org, a service we helped establish. In 2023,
Elsevier was designated a Global Certified Accessible publisher by
Benetech, a non-profit organisation based in Palo Alto, California.
The certification recognises publishers that meet specific
accessibility criteria to support readers with disabilities and
learning differences. Relevant file testing received 100% scores
in all categories.
In 2023, Elsevier’s ScienceDirect achieved zero errors on its
homepage with the WAVE accessibility testing tool, making the
research platform number one of the top 1m websites ranked
in the 2023 WebAIM Million accessibility report.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
64
RELX
Annual Report 2023 | Corporate responsibility
2023 PERFORMANCE
Support of SDG 10 by expanding the
Accessibility Champions model across
RELX
2024 objectives
By 2030
Customer engagement
– SDG 17 (Partnership for the Goals):
Create internal Sustainability Hub to support customer
enquiries and engagement
Quality
– SDG 8 (Decent Work and Economic Growth): Update
RELX Responsible AI Principles to keep pace with evolving
technology
Accessibility
– SDG 10 (Reduced Inequalities): Develop
accessibility specialist career track for RELX employees
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 responsible
marketplace practices
RELX is committed to creating products that are usable by
everyone including people who experience some type of
disability. A network of Accessibility Champions advance the
RELX Accessibility Policy and encourage teams to incorporate
accessibility requirements from the start and to use best
practices to ensure an optimal experience for disabled users.
The RELX Accessibility Leadership Advisory Board convened
during the year to address challenges and approaches
to accessibility.
We expanded the accessibility training model across the
four business areas during the year. We also released an
Introduction to Accessibility video accompanied by a quick
start guide for product managers, ensuring accessibility
requirements are embedded in our products.
In 2023, we celebrated the fifth annual RELX Accessibility
Leadership Awards, introducing a new award category for
team leadership. Winners received a glass award with a braille
inscription and featured in an all-employee news article.
We also made a donation to the charity of their choice.
Nominees were honoured for product enhancements to key
products which led to the two highest Web Content Accessibility
Guidelines (WCAG 2.1) compliance scores in Elsevier history
and for improving accessibility for internal colleagues.
In 2023, Elsevier signed the UK Publishers Association
Accessibility Action Group Accessible Publishing Charter and
also worked closely with university disability services offices,
launching a survey and interviews to understand how to better
serve students with disabilities. In the sixth year of Elsevier’s
Accessibility Belting programme, 85 additional colleagues
received belts (more than 340 people have completed the
programme since inception). Additionally, the Elsevier Digital
Accessibility Team provided awareness trainings for new hires as
part of onboarding. They also conducted research into automated
text descriptions and sonification to help users with disabilities
better understand trends in data, holding six sessions with
visually impaired people to better understand how to develop
useful text descriptions for speech technologies.
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 2023, Risk completed 26 VPATs; Legal’s
Accessibility UX team resolved over 100 customer enquiries
and generated VPATs for 30 products.
We promoted accessibility to outside companies and vendors
throughout the year. RELX accessibility teams partnered with
external content providers, including Highcharts, to advance
accessible solutions for public benefit. Elsevier has collaborated
with Highcharts for over eight years to continually improve the
accessibility of its widely used chart library.
275+
Accessibility projects logged by the Accessibility Working
Group, an increase of 83% since 2021
3,200+
Elsevier’s Global Books Digital Archive fulfilled 3,235
disability requests
Relevant
SDGs
65
RELX
Annual Report 2023 | Community
RELX Cares, our global community programme, supports
employee volunteering and giving that makes a positive
impact on society.
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 245 RELX Cares
Champions ensures the vibrancy of our community engagement.
In 2023, we held the 13th Recognising Those Who Care Awards
to highlight colleagues who have made outstanding contributions
to RELX Cares. The eight winners of the individual award travelled
to London to take part in volunteering projects with RELX charity
partners. Two other individuals and teams were given the
opportunity to make a donation to the charity of their choice.
Each September, we hold RELX Cares Month to celebrate our
commitment to our communities around the world. During the
Month, over 3,300 colleagues across the Company took part in
hundreds of volunteering and fundraising events. This included
You Move, We Donate organised by Risk where colleagues were
encouraged to get active in return for a company donation to
charity; a mentoring activity for school and university students
at Elsevier India; support for local food banks by US Legal
colleagues; and preparing care packages for vulnerable
women at LexisNexis South Africa.
In the wake of disasters and emergencies in the year, including
flooding in Libya, earthquakes in Morocco and Turkey and the war
in the Middle East, we donated approximately $150,000 to Save the
Children; Turkish charity Ahbap; World Central Kitchen and the
British and International Red Cross.
Community
Contributing to our local and global communities is a responsibility
and an opportunity.
It is very important to help those
in need. Assisting someone or
supporting a worthy cause gives
me immense satisfaction to know
I am making a real difference.
245+
A network of over 245 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.
Deidre Collins
Executive Assistant and RELX
Cares Champion
LexisNexis Legal &
Professional
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
66
RELX
Annual Report 2023 | Corporate responsibility
2023 PERFORMANCE
Create new opportunities to engage
remote workers in RELX cares
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 submissions using decision
criteria such as value to the beneficiary and opportunities for
staff engagement. In 2023, RELX Cares Champions donated
$317,000 to 26 charities supporting over 40,000 young people.
Projects included:
§
Providing a programme for girls in West Bengal, India, to keep
them in education and out of child marriage
§
Funding a Book Buzz programme to inspire pre-school children
in remote indigenous communities in Australia to enjoy reading
§
Helping underprivileged children living in poverty-stricken
areas of Quezon City in The Philippines
§
Expanding availability of school supplies at no cost to teachers
and students in need at under funded schools in Dayton, Ohio
§
Offering support to vulnerable families experiencing
challenges such as isolation, bereavement and financial
worries in Sutton, United Kingdom
§
Supporting a weekly group intervention programme for
pregnant and parenting teen girls in Philadelphia, Pennsylvania
The LexisNexis Rule of Law Foundation’s ABCs of the Rule of
Law colouring books teach children basic elements of the Rule of
Law. An additional colouring book, The Rule of Law Coloring and
Activity Book, was published in the year, aimed at older children
to bolster their literacy skills, highlighting the main elements of
the rule of law in contemporary society and throughout history.
In managing community involvement, we apply the same rigour
as we do to other aspects of our business. Following the B4SI
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 methodology. Their assurance statement is available at
www.relx.com/additional-cr-resources
.
We donated £5.7m in cash (including through matching gifts),
and £17.7m in products, services and staff time in 2023. Some
36% of employees were engaged in volunteering through RELX
Cares. According to 2023 B4SI data, the average volunteering
rate was 13.6% for our sector and 9.2% for all sectors.
Setting up a home-based RELX Cares
network has created a wonderful
opportunity to get to know other Florida
home-based colleagues ensuring more
colleagues can take advantage of using
their RELX Cares hours to make an
impact in their community.
Tatiana Morales
Marketing Operations Manager, LexisNexis Legal & Professional
We extended the RELX Cares Central Donations programme
to home-based employees encouraging them to submit
grants for charities that they wanted to support. Until 2023
only office-based colleagues could nominate a charity. This
resulted in a number of applications, two of which we funded
following a vote by RELX Cares Champions. We will continue
to expand this engagement in 2024.
In the year, a network of home-based Legal employees
who wish to get involved in RELX Cares activities established
a new network. The network is facilitated by a home-based
LexisNexis Legal & Professional RELX Cares Champion.
They contacted other home-based RELX employees to invite
them to participate, learn about opportunities and to take part
in volunteering and other RELX Cares activities. Over 230
colleagues joined the network and so far there have been two
activities, including volunteering at a charity that provides
grief support to children and doing a beach clean up.
67
RELX
Annual Report 2023 | Community
In 2023, we continued to engage in skills-based volunteering,
applying business knowledge and expertise to benefit
communities. For example, in the US, Risk colleagues created
an Online Safety for Kids programme to educate parents and
protect children. The team devoted more than 200 hours to the
project which has been delivered to 467 Risk employees and
approximately 1,500 parents, teachers, school administrators
and community leaders.
Throughout 2023, 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 139,000 books to Book Aid International
(BAI) and Books for Africa worth over $11m. In addition, eight Risk
colleagues volunteered to transcribe audio interviews that Book
Aid International had collected from partners in Kenya in support
of it’s new Generation Reader campaign. The 2023 Recognising
Those Who Cares winners who travelled to London spent the day
volunteering in the Book Aid International warehouse preparing
books to be sent to partners.
Engagement
In 2023, we continued to provide opportunities for colleagues to
get involved in RELX Cares. In monthly calls for RELX Cares
Champions across the company, we shared updates about our
local RELX Cares activities and featured guest speakers.
Additionally, we shared RELX Cares stories in all employee
communications throughout the year.
For a story to launch our global RELX Cares Month in September,
we interviewed colleagues about how they used their RELX Cares
hours to volunteer. This included serving as a museum trustee,
volunteering at a local library and helping women and their children
who have been displaced from their homes with practical support.
During the Month, we ran our Global Book Drive competition.
Employees donated nearly 2,000 books for local charities.
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.
Evan Robert Quering (left), son of Allison Quering, National Sales
Manager for Legal in Pennsylvania, graduated from Madonna
High School in Weirton, West Virginia in 2022 where he placed in
the top ten of his class. Evan was also awarded several sport and
academic honours during his high school career before attending
the University of Pittsburgh with a major in pre-medicine. He
is currently studying nursing at Robert Morris University and
finished his first year earning Dean’s List status and plans to
go on to complete a PhD in Nurse Anesthesia. In response to
receiving the scholarship Evan said the funding was “not only an
acknowledgement of my hard work and determination, but it also
serves to fuel my passion for helping others in the medical field”.
Carina Wang (right), daughter of Xiaoming Wang, Senior Software
Engineer for Risk in Florida. Carina has a passion for using
technology to address societal challenges. She served as
co-president of her high school’s nationally ranked Speech and
Debate team, co-president of the American Heritage robotics
team that was a division finalist in the 2023 World Championships,
president of the Inter-Club Council and played on the Varsity
Volleyball team. She has been recognised as the National Speech
and Debate Association Academic All-American, National Merit
Finalist, and received the President’s Volunteer Service Award.
In high school, Carina dedicated over 1,300 hours to community
service including volunteering with seniors in hospice centres to
write their life biographies. She later went on to design a speaker
device for nursing homes. After presenting this innovation at the
Global Conrad Innovation Challenge, she won Top 5 in her category
and the Outstanding Presentation Award. Carina has previously
interned at LexisNexis and plans to continue her education at
Cornell University.
In-kind
53%
Cash
24%
Time
23%
What we contributed in 2023 (market value)
Market value cash, in-kind and time donations (£m)
Community involvement
Market value cash, in-kind and time donations (£m)
2023
2019
2021
2022
2020
18.7
17.6
20.6
23.4
22.6
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
68
RELX
Annual Report 2023 | Corporate responsibility
2023 PERFORMANCE
Undertake fundraising for Save The
Children to help achieve the three year
target of $150,000
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 2022,
the most recent year for which data is available, the Save the
Children global movement directly supported 48.8m children
in 116 countries around the world.
To date, we have raised over half of our total fundraising
target. Fundraising activities included a global holiday
sweater day, quiz nights and cause related marketing at an
Elsevier conference in the US.
We have shared communications with colleagues about how
our funds are benefitting children, and in the year, a member
of the Save the Children team spoke to RELX Cares
Champions about the impact of their work.
We have also worked with Save the Children to help focus
our response to disasters and emergencies.
We are hugely grateful to RELX and
their continued generous support
with our three-year partnership.
RELX colleagues have raised an
incredible amount so far which is
already having an impact and helping
children get the future they deserve.
Alicia Wiltshire
Senior Corporate Manager, Save the Children
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 following each volunteer
activity. In 2023, we received over 17,800 responses, 90% of
respondents said their motivation and pride in the company
had increased as a result of volunteering and 88% said they
had experienced a positive change in behaviour or attitude as a
result of volunteering.
2024 objectives
By 2030
Employee community engagement
– SDG 17 (Partnership
for the Goals): Increase internal and external information
about our global community activities
Philanthropic giving
– SDG 17 (Partnership for the Goals):
Strengthen our cross business area philanthropic response
to disasters and emergencies
Through our unique contributions, and investments with
partners, contribute to significant, measurable advancement
of education for disadvantaged young people
In 2023, for the fourth year, we supported the Ban Ki-moon Centre
for Global Citizens’ Global Citizen Scholarship Program in
association with the Management Centre Innsbruck benefitting
15 young African leaders. The change-makers developed their
own SDG micro-projects using the RELX SDG Resource Centre
to inform their work. The 2023 scholars addressed 15 SDGs
and projects ranged from driving community awareness about
cervical cancer in Rwanda to capturing mental health stories
through photography in Kenya, and training young people to build
with local construction materials for disaster risk reduction in
Burkina Faso.
Relevant
SDGs
69
RELX
Annual Report 2023 | 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 company, and those located in medium- and high-risk
countries (as designated by our third-party developed supplier
risk tool) with a spend of $100,000 or more per year 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 2023,
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.
Pauline Grace Cortes
Socially Responsible Supplier
Programme Lead
RELX
An ethical supply chain programme
allows us to monitor the social and
environmental practices of our
suppliers. This helps us mitigate
our impacts and ensure we conduct
our business responsibly. I am proud
to be part of an organisation that
commits to high social standards.
North America
59.9%
South
America
0.7%
Middle
East
1.0%
Asia &
Pacific
9.1%
Europe
28.8%
Africa
0.5%
RELX supplier locations (% of supplier spend)
Based on four quarters ending Q3 2023
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
70
RELX
Annual Report 2023 | 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 2023,
there were 796 suppliers on the SRS tracking list, 66 of which were
in high-risk countries and 606 in medium-risk countries. 690 of
the suppliers (87%) on the SRS tracking list have signed our
Supplier Code, or have equivalent standards in place. The
majority of non-signatories are new to the SRS tracking list and
we are working with them, and other non-signatories, to gain
agreement to our Code. In total, at the end of 2023 there were
5,322 signatories to our Supplier Code, or suppliers with an
equivalent code, representing an increase of 19% from 4,467
signatories at the close of 2022.
We engage a specialist supply chain auditor to conduct audits and
assessments on our behalf using their platform. In 2023, a total of
125 external audits were conducted: 36 onsite and virtual onsite
audits and 89 desktop audits. During a desktop audit, the supplier
responds to an online questionnaire and uploads relevant
supporting documents followed by a risk assessment using
the third-party platform. For virtual onsite audits, facility
representatives wear a video and audio source 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 2023 onsite and virtual
onsite audit locations included Argentina, India, Italy, Philippines,
Poland, Romania, Singapore, Sri Lanka, South Africa and the
United Kingdom.
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 2023, 100% of RELX’s production paper was graded
by The Book Chain Project as known and responsible (sustainable)
sources or certified to FSC or PEFC (note: less than 0.5% not yet
graded or certified).
During 2023 we held RELX Supplier sessions focused on the
RELX supplier audit process and our efforts to collect and
report CO
2
emissions.
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 2023, 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 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 and
human trafficking-related activities. Suppliers have access to
Modern Slavery Awareness training through our audit provider.
In addition, we asked all suppliers audited during the year to
complete an e-learning course on preventing forced labour.
We use a UK Government definition of modern slavery,
particularly “the trafficking of people, forced labour, servitude
and slavery.” We did not receive any reports or questions from
employees that related to modern slavery in the year.
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 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.
125
Independent audits, including onsite,
virtual onsite and desktop
796
Suppliers tracked
71
RELX
Annual Report 2023 | Supply chain
5,322
Suppliers who have signed the Supplier Code or have
an equivalent code
3.3%
US spend with veteran, minority or woman-owned
businesses. Including small businesses, 14.8% of
total US spend was with diverse suppliers
87%
Suppliers on the tracking list who were either signatories
to our Supplier Code or have an equivalent code, covering
97% of tracking list spend
Supplier Code of Conduct signatories
2023
2019
2021
2022
2020
3,202
3,457
3,670
5,322
4,467
Responsible Supply Chain Performance
Target
Measure
Results
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
Increase # of suppliers as
Code signatories
Total # of Code signatories
3,202
3,457
3,670
4,467
5,322
Total # of suppliers on tracking list
354
412
359
724
796
% of suppliers on tracking list who were Code
signatories (or equivalent)
91%
91%
96%
87%
87%
Continue using audits to
ensure continuous
improvement in supplier
performance
and compliance
# of independent audits
1
93
99
111
119
125
Onsite/virtual onsite
52
25
28
28
36
Desktop
41
74
83
91
89
Continue to advance the US
Supplier Diversity and
Inclusion Programme
% of total US spend with diverse suppliers
(Veteran, Minority, Woman-owned,
and small businesses)
11.9%
12.9%
12.9%
15.4%
14.8%
% of total US spend with diverse suppliers
excluding small businesses
2.5%
2.8%
3.1%
3.8%
3.3%
1
For 2023, RELX moved to a new third party audit platform, which allows sharing of supplier audits across the platform therefore increasing the total number of audits.
2023 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. During 2023, we continued to focus on our
supplier diversity programme through participation in a
Supplier Diversity Taskforce, diversity conferences, best
practice sharing and increased internal staff support.
In the year, 3.3% of our US spend was with veteran, minority
or woman-owned businesses. Including small businesses,
14.8% of total 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 for suppliers who can potentially fulfil
business requirements. Find out more at:
https://reedelsevier.service-now.com/sdpr
We aim to 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 effectiveness of our efforts
§
participating in outreach programmes/activities to
support diverse suppliers
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
72
RELX
Annual Report 2023 | Corporate responsibility
2024 objectives
By 2030
Responsible Supply Chain
– SDG 8 (Decent Work and
Economic Growth): Increase number of suppliers that are
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
Intrust Global
Intrust Global, a RELX supplier on our Socially Responsible
Supplier tracking list, provides technology driven research,
analytics and reporting services across industries.
They maintain a robust set of policies that underpin their
responsible business practice which include ethical
governance, fair labour practices, community engagement
and stakeholder collaboration. Intrust Global are dedicated
to advancing the UN SDGs with a focus on decent work (SDG 8);
quality education (SDG 4); innovation (SDG 9) and reduced
inequalities (SDG 10).
They foster positive change through the Sambhava
Foundation, their central group’s arm for social development.
Among flagship programmes are the Hunar project which
empowers women aged 18 to 35 through skills training
and social entrepreneurship initiatives to gain economic
independence. Another is the Koshish programme
which helps differently-abled women become financially
independent through vocational skill building, placement
support and regular assessments and feedback.
As a growing company, we maintain
transparent and fair business
practices, meet ethical standards
and help make the world a better
place to live and thrive.
Ravindra Nag
Director, Intrust Global
Relevant
SDGs
73
RELX
Annual Report 2023 | Environment
A positive environmental impact
Our key environmental impact is through our products and services
which help inform debate, aid decision makers and encourage
research and development with regard to environmental issues.
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 Chief
Sustainability Officer and Global Head of Corporate Responsibility
engages with the Board on environmental issues and we work
with Environmental Champions and dedicated engineering,
design and real estate specialists to improve efficiency wherever
possible in our portfolio.
In 2023, we continued our support of the Climate Pledge, aiming
to achieve net zero across all carbon scopes by 2040 at the latest.
We have committed to measure and report greenhouse gas
emissions, implement decarbonisation strategies for emissions
reductions and address residual emissions with high-quality
offsets. Details of our net zero transition road map are available
on pages 76 and 85 .
We support progressive environmental legislation and in 2023
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 signed a letter to the British
Prime Minister confirming our support for delivering progress on
the UK’s net zero commitments. We hosted an event to launch a
report from UCL and the Aldersgate Group on the electrification of
British industry, and continued our membership of the Net Zero
Supply Chains initiative with other companies and NGO partners
organised by Pineapple Partnerships.
We were a Taskforce for Climate-related Financial Disclosure
(TCFD) Supporter until it was disbanded in the year and have
expanded our TCFD disclosure (see page 82). We 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 company and value chain.
Bosman Stramrood
Pre-Sales Consultant
LexisNexis Legal &
Professional South Africa
As a global organisation, we can
make a big difference by meeting our
environmental objectives, setting
an example for future generations
to continue the improvements we
started. It requires commitment
and dedication from leadership
and employees alike.
2023 Environmental Performance
Absolute performance
Intensity ratio (absolute/£m revenue)
2022
2023
change
2022
2023
change
Scope 1 (direct emissions) tCO
2
e
5,211
4,317
-17%
0.61
0.47
-23%
Scope 2 (location-based) emissions tCO
2
e
37,270
36,616
-2%
4.36
4.00
-8%
Scope 2 (market-based) emissions tCO
2
e
8,952
8,598
-4%
1.05
0.94
-10%
Scope 1 + Scope 2 (location-based) emissions tCO
2
e
42,481
40,933
-4%
4.97
4.47
-10%
Total energy (MWh)
117,997
110,750
-6%
13.80
12.09
-12%
Water (m
3
)
156,734
142,374
-9%
18.33
15.54
-15%
Waste sent to landfill (t)*
73
45
-38%
0.01
<0.01
-43%
Sustainable production paper (%)
99
100
1%
–
–
-
* From reporting locations only, excluding estimated data.
Actual environmental data covers approximately 83% 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 2022 to November 2023.
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.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
74
RELX
Annual Report 2023 | Corporate responsibility
Our key environmental impact:
environmental knowledge
In creating and delivering 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 54% of the total.
Risk
Climate-driven extreme weather events are increasing and pose
a specific challenge to the insurance industry. In response to
intensifying climate risks, insurers require data and technology
to better assess risk. Combining geospatial information, imagery
and historical records with predictive analytics and AI, LexisNexis
Risk Solutions provides comprehensive data sets and analytics
to support the industry to better understand and price risk.
Geospatial information can provide vital information about a
property’s likely susceptibility to flood, fire or storm damage.
Meanwhile, aggregating comparative data can help insurers
benchmark performance in certain regions to manage
localised risk more effectively.
In 2023, Cirium, a Risk business unit, advanced its flight
emissions methodology powered by EmeraldSky. This
advancement aims to deliver a standardised and precise
overview of carbon emissions and fuel burn calculations for
each aircraft flight and seat. This data serves as the foundation
for RELX’s business flight travel emissions data.
Scientific, Technical & Medical
The Lancet published their 2023 Countdown on health and
climate change which monitors the evolving health profile of
climate change and provides an independent assessment of
the delivery of commitments made by governments worldwide
under the Paris Agreement. The content, either open access or
free to read, covers 47 indicators, drawing on the expertise of
114 scientists and health practitioners from 52 research
institutions and UN agencies worldwide.
Elsevier delivered the first Sustainability Hub at the London
Book Fair in 2023 with a stage devoted to raising awareness of
the growing climate emergency and how the publishing industry
can best respond. Events included a presentation on the SDG
Publishers Compact, a keynote from London Mayor Sadiq Khan
about making London a more sustainable city and a session
from Book Industry Communication (BIC) on designing books
with recycling in mind. Elsevier worked with Smart Space,
RX’s in-house design and build service, to create a prototype
carbon label of its stand using four main categories from
the exhibitor perspective: stand build; venue emissions
and water; operations (emissions from staff travel and
accommodation); and emissions associated with the
products displayed.
Legal
Legal has extensive environmental law offerings for customers
including curated daily news alerts, podcasts, law trackers
and consultations. Specifically on climate change, tools show
where climate change targets come from at national, European
and international levels, climate reporting and disclosure
frameworks, litigation and practical guidance.
In 2023, the LexisNexis Legal and Professional Practical
Guidance Journal featured a dedicated climate change issue
covering topics such as sea level rise and how it affects public
and private projects; energy security and climate change
initiatives in the US Inflation Reduction Act; and climate change
in M&A transactions, among others.
In the year, PatentSight, which provides curated and enriched
patent datasets and analysis tools to advance research and
development, competitive intelligence and benchmarking,
and more, released a publicly available report on sustainable
technologies linked to the SDGs. It shows, for example, among
the largest share of patents for SDG 7, Affordable and Clean
Energy, is hybrid vehicles and biofuels; for SDG 13, Climate
Action, it is for GHG emissions reductions.
Exhibitions
RX’s portfolio of environmental events include World Future
Energy Summit. Held in Abu Dhabi in January 2023, the show
focused on critical sectors shaping sustainability and driving
investment globally including solar; clean energy; ecowaste;
water, and smart cities. With over 200 hours of expert content,
the Summit’s knowledge-sharing programme was its most
extensive and diverse to date. Over 250 speakers, including
government officials and 166 CEOs, presidents and founders
of leading companies, shared their insights with over 30,000
investors, policy makers, business leaders, project owners
and technology pioneers.
The 2023 edition of Pollutec in Lyon, France, the international
event for environmental and energy solutions committed to
accelerating environmental innovation, showcased over 1,000
exhibitors, including 200 start-ups. 420 conference sessions
were delivered, and over 42,800 attendees came to learn,
network and conduct business. The 2023 Pollutec Innovation
Awards highlighted 12 finalists and rewarded three winners:
Grims Énergie (thermal storage), MTB (li-ion battery recycling),
and Purenat (a textile capable of destroying organic pollutants
in the air).
All-Energy is the UK’s largest renewables and low carbon
showcase, held in Glasgow. It connects clean energy suppliers
and technology providers with energy industry developers,
buyers, investors, and policy makers. Reflecting the urgency
required to meet UK net zero emissions targets, the 2023 event
broke previous attendance records. Nearly 600 speakers took
part in the free-to-attend conference, which featured
contributions from Scotland’s First Minister, Rt Hon Humza
Yousaf and Minister for Energy, Gillian Martin. Dcarbonise,
another show in the RX portfolio, 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.
75
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Annual Report 2023 | 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.
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 company and
states that we must consider, among other risks, those that
require legislative compliance, have significant cost implications
for the company 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 across the group.
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. For more information
see page 86.
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 Book Chain Project, and further
our understanding through environmental benchmarking
activities, such as CDP.
Assessing our environmental impact
While as a non-manufacturing company our direct use of
resources is limited, we monitor all our environmental impacts,
and prioritise climate change, water, waste and paper use.
Throughout 2023, we worked to reduce our direct environmental
impact as well as upstream and downstream impacts as part of
a lifecycle approach to our operations.
Third-party verification of our environmental data gives us
confidence in its reliability and improves our reporting.
Group certification
to ISO14001 Environmental Management System
maintained in 2023
75%
reduction in Scope 1 and Scope 2 (location-based)
emissions since 2010
2023 PERFORMANCE
Expand climate risk assessment of
products by the Climate Product
Working Group
To avoid climate change of more than 1.5°C, we must quickly
transition to a low carbon future. We aim to support our
customers in carbon intensive sectors to decarbonise by
providing products and services that can inform the
transition to net zero.
We established our Climate Product Working Group
with representatives from all our business areas to better
understand climate risks and opportunities in the mix of
our products and services.
Elsevier continues to focus its content and offerings toward
scientific breakthroughs in clean energy. In 2023, Elsevier
launched several new titles covering renewable energy, energy
efficiency, battery technology, and decarbonisation. Of Elsevier’s
2,900 journals, four with a traditional hydrocarbon focus were
repositioned with updated aims to advance the UN’s sustainable
development goals and promote a pathway to a net zero future.
Likewise, the Books team will only commission content that
advances the energy transition and the reduction of CO2
emissions. Among new titles in 2023 were Design and Control of
Active Power Filters towards the Decarbonisation of Smart Grid
Networks; Fuel Cells for Transportation: Fundamental Principles
and Applications; and Battery Technology: From Fundamentals to
Thermal Behavior and Management. Elsevier remained
committed to supporting innovation in clean energy and in 2023
held the Renewable Transformation Challenge, in collaboration
with the International Solar Energy Society, recognising Solar
Sister which helps women entrepreneurs in African rural
communities run their own clean energy distribution initiatives.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
76
RELX
Annual Report 2023 | Corporate responsibility
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.
Since 2020, there has been a change in how our office space
is utilised. This has contributed to decreases in reported
carbon emissions. To show trends, we report data over
a longer time sequence.
Emissions from work-related flights are calculated using
EmeraldSky, a solution developed by Cirium within Risk. This
innovative methodology combines comprehensive industry
datasets with Cirium’s proprietary data to accurately determine
the fuel consumption of individual flights. Unlike distance-based
methodologies, the Cirium methodology powered by EmeraldSky
recognises and highlights carbon-efficient carriers and routes,
enabling businesses to effectively reduce their travel emissions.
See methodology notes for full details on
www.relx.com/additional-cr-resources.
Total Scope 1 emissions decreased by 17% in the year due to lower
fuel consumption. Car fleet emissions have decreased 82% since
2010 and overall Scope 1 emissions by 68% during the same period.
Scope 2 (location-based) emissions decreased by 2% 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 our air travel booked and
collected through our travel partner, BCD, and completed within
the reporting period. While further resumption of business travel
in 2023 led to a 7% increase in emissions over 2022, since 2019,
we have reduced travel emissions by 58%.
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 450 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 75%. In 2023, our new carbon target began
verification by the Science Based Targets Initiative. This aligns
with the 1.5°C goal of the Paris Climate Agreement and will
require us to continue reducing greenhouse gas emissions
and maintain our internal carbon pricing scheme, among
other measures.
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 verifiable offsets in 2023
encompassing REDD+ forestry and peatland projects in Colombia
and Indonesia. We do not use offsets in our carbon performance
reporting.
Net Zero 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: We set and aim to achieve 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 73-81.
2.
Value chain: We will engage with our suppliers on setting and
attaining their own science-based carbon reduction targets
and also address emissions from other Scope 3 categories.
Read more about how we engage with suppliers on pages 69-72.
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 broadly 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 2023 price is $35/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 sustainability targets
and objectives. Read more about CR governance on page 50.
Executive remuneration is linked to achieving environmental
targets including our Scope 1 and 2 carbon reduction target.
Read more about executive remuneration on pages 128-148.
Absolute
2023
2019
2020
2021
2022
0
110
tCO
2
e 1,000s
Intensity
Scope 1
Scope 2 (location-based)
emissions
2023
2019
2020
2021
2022
tCO
2
e per £m revenue
0
20
Scope 1 and Scope 2 emissions
2015 is our baseline year for environment targets. Data available on page 41
Data available on page 73
77
RELX
Annual Report 2023 | Environment
Scope 3
In 2023, we continued to advance our understanding of our
Scope 3 emissions beyond business flights, identifying key
areas, refining our methodology and our engagement with
suppliers. We used the RELX CO2 Hub, an internal analytics
platform, to help quantify our Scope 3 emissions.
Supply chain
We have estimated 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. We estimate that
our share of the Scope 1 and Scope 2 carbon emissions of our
suppliers, excluding business travel (estimated separately),
cloud computing services (see below) and events (see below),
is approximately 65,000 tCO2e per annum.
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 emissions data
provided by our primary Infrastructure as a Service (laaS)
cloud providers, we estimated 2023 market-based carbon
emissions associated with all cloud computing services
provided to RELX to be 178 tCO
2
e.
Home-based employees
Using location-specific emissions factors and office attendance
data, we estimated emissions from home working in the year to
be 12,498 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 2023 to be
4,619 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. While 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.
Energy
As RELX 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 2023, Green-e certified wind RECs were purchased from
sources in Texas.
Energy consumption at our offices, representing around 50%
of the total, decreased in 2023 due to ongoing office space
consolidation. Data centre energy, representing around 40% of
the total, decreased as we continue to move activity to the cloud.
We are a member of RE100, a global initiative bringing together
businesses committed to 100% renewable electricity.
61%
Reduction in energy and fuels consumption since 2010
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 9% between 2022 and 2023 due to
ongoing office space consolidation.
We engage with internal water experts who produce water-
related content for our customers. In 2023, we offered customers
24 peer-reviewed journals in water science and technology,
including Water Research.
71%
Reduction in water use from 2010 to 2023
Water usage
344,304
226,509
183,575
156,734
142,374
2023
2019
2020
2021
2022
Cubic metres
2023 water and energy performance
Energy consumption
2023
2019
2020
2021
2022
176,682
142,098
125,095
117,997
110,750
MWh
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
78
RELX
Annual Report 2023 | Corporate responsibility
RELX Environmental Challenge
2023 marked the thirteenth year of the RELX Environmental
Challenge, a competitive grant-making scheme focused on
providing improved and sustainable access to water and
sanitation where it is presently at risk.
The $50,000 first prize winner was Lombrifiltro by CPlantae,
a sanitary engineering firm and social enterprise based in
Mexico that has developed and commercialised prefabricated
vermifilters for onsite wastewater treatment.
The $25,000 second prize winner was TU Delft Water For
Impact that has developed electrocoagulation; a method to
treat surface water using solar power and removing the need
for costly and often hard to access chemicals. The pilot project
will test the approach and effectiveness in providing a more
sustainable and less chemical intensive solution to
groundwater treatment challenges in northern Ghana.
The winners were recognised at Pollutec where they were
invited to participate in the show’s dedicated startup space
and pitch sessions.
It’s more than just an award; it’s an
opportunity to make a broader impact.
The prize money and recognition will help
us expand our reach, providing safe water
and sanitation to more communities
in Mexico.
Cesar Maldonado
Co-founder of CPlantae
Waste
Total waste generated by our locations decreased by 27% in
2023, primarily due to changes in how our office space is utilised.
Of waste generated at our locations, we estimate 73% 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,
76% 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 waste target is linked to our
reporting locations.
We do not produce any material amounts of hazardous waste.
We continued to work toward our target to reduce waste sent to
landfill from reporting locations. In 2023, waste sent to landfill
from reporting locations, excluding estimated data, decreased
by 38%.
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
(as defined in the Packaging Waste Regulations) we generate
through selling, pack and fill and importation of our products.
Waste sent to landfill (all locations)
1,608
375
280
180
121
2023
2019
2020
2021
2022
Tonnes
Energy from waste
19%
Landfill
3%
Compost
3%
Recycling
76%
Waste disposal (reporting locations)
Waste performance
All locations includes non-reporting locations, such as serviced offices,
where data is estimated.
Reporting locations are those from which we were able to capture primary data
in the year and excludes estimated data.
79
RELX
Annual Report 2023 | Environment
The ongoing support we receive from
RELX is hugely appreciated. Camara’s
mission is to equip students with the
digital skills they need to enable them
to secure meaningful employment or
pursue further education.
Aidan Tallon
CEO, Camara Education
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.
This year, we continued our partnership with Camara
Education to donate equipment to provide access to
computers for students in Ethiopia, Kenya, Tanzania and
Zambia. Camara Education refurbishes our donated
equipment and uses it, or the proceeds from selling it,
to set up computer labs, train teachers and provide locally
relevant educational content. Any equipment that cannot
be refurbished is appropriately recycled.
In 2023, Camara Education generated around £25,000
from equipment donated by RELX, enough to fully equip
three new eLearning centres, impacting more than 2,000
students. Our donations saved almost 2,000 tCO
2
e and
kept more than nine tonnes of waste from going to landfill.
Asia Pacific
18%
Europe
44%
North America
38%
Forest source of graded production papers
2023 paper performance
Percentage of paper graded as known and responsible sources by the Book
Chain Project or certified by FSC/PEFC. Includes less than 0.5% of paper not yet
graded or certified.
Paper
The quantity of production paper purchased in 2023 decreased
by 21% over 2022 and by 66% since 2010 as we deliver more of
our products online, reflecting a circular economy approach to
conducting our business.
During 2023, we updated the RELX Paper Policy to highlight our
commitment to avoiding deforestation and other environmental
impacts through the purchase of sustainably sourced papers.
100% of RELX production papers were graded 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,
digital over litho printing, print on demand and lighter papers
where possible.
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
in Bookchain, or certified to FSC or PEFC.
In 2023, we used approximately 97 tonnes of office paper.
To reduce paper use at sites with higher consumption levels,
we have set specific targets.
Sustainable production paper
96
92
98
99
100
2023
2019
2020
2021
2022
Percentage
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
80
RELX
Annual Report 2023 | Corporate responsibility
2023 PERFORMANCE
Review global car fleet policies with the
aim to move to more fuel-efficient vehicles
The size of the RELX car fleet has decreased by 25% since 2015,
to less than 500 vehicles across the company. Over this period,
fleet emissions have reduced by 65% due to the reduction in
vehicles and improvements in vehicle performance.
Since 2015, the number of zero or low-emission vehicle models
in the fleet has more than quadrupled and approximately 7% of
the fleet is fully electric (up from 0 electric vehicles in 2015).
Fleet emissions account for a minimal share of emissions of
around 3% of the reported Scope 1 and Scope 2 emissions.
During 2023, we conducted an analysis of approximately 80%
of fleet vehicles through our primary global lease to better
understand how we can best accelerate the transition to
electric vehicles.
A survey of the remaining vehicles highlighted areas of the
business where low-emission vehicles could be more
effectively incorporated.
Targets and standards
Our focus is on delivering continuous improvement in our
environmental performance year-on-year. In 2023, we reduced
our energy consumption by 6% compared to 2022, with this
resulting in a reduction of 4% in our scope 1 and scope 2
(location-based) emissions as emissions factors changed in
a number of countries. We also reduced our water consumption
by 9%, reduced waste sent to landfill by 38% and reached 100%
for our sustainable production paper metric.
We also set longer term targets to reflect our ambition over time.
In 2023, we achieved all the environmental targets we had set for
2025, as shown in the table to the right. We are in the process of
setting new targets, out to 2030, against a 2018 baseline year,
with our proposed targets currently being reviewed by the
Science Based Targets initiative.
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,
for the amount of renewable electricity we purchase and for
decreasing the amount of waste we generate.
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 in the content we publish.
Environmental targets
Focus area
Targets – 2025
2023
performance
Climate
change
Reduce Scope 1 and 2 (location-
based) carbon emissions by 46%
against a 2015 baseline
-61%
Energy
Reduce energy and fuel consumption
of our locations by 30% against a
2015 baseline
-49%
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
-96%
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
100%
* From reporting locations, excluding estimated data.
** Percentage of paper graded as known and responsible sources by the Book
Chain Project or certified by FSC/PEFC. Includes less than 0.5% of paper not yet
graded or certified.
Environmental
management
system
Achieve Group
certification to the ISO
14001 standard across
the company
Group certification
across the company
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 74)
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 2022 through November 2023.
We have used the GHG Protocol Corporate Accounting and Reporting Standard
(revised edition) and the data has been assured by an independent third party.
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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 and Books for Africa to avoid
waste and benefit communities.
In 2023, RELX donated over 139,000 books with a value
of over $11m 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 2023, we donated 105,109 new higher education and
medical books, as well as a grant to help Book Aid
International and partners create an Explorer Library at
Chiuzira Primary School, a poorly resourced school in a
heavily populated area in central Malawi. This library will
help children improve their reading and learning skills
and give them the confidence to thrive.
For over 30 years RELX and Book Aid
International have partnered to support
transformational change in libraries,
schools and universities across sub-
Saharan Africa and beyond. From much
needed medical textbooks helping to
improve patient care to creating brand new
school libraries like the one at Chiuzira
Primary school in Malawi, RELX has helped
us reach thousands of readers. As we
approach our charity’s 70th anniversary we
hope that together we will continue to meet
the need for books around the world.
Alison Tweed,
Chief Executive, Book Aid International
2024 objectives
By 2030
Environmental responsibility
– SDG 12 (Responsible
Consumption and Production): Implement new SBTi
environmental targets
Carbon reduction
– SDG 13 (Climate Action): Publish RELX
net zero transition plan
Further environmental knowledge and positive action
through our products and services and, accordingly, conduct
our business with the lowest environmental impact possible
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023 | Corporate responsibility
82
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 UK 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 98. In addition,
climate risk and opportunity is subject to our CR governance
processes, see page 40. 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 Chief
Sustainability Officer and Global Head of Corporate Responsibility
(CSO); 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 2023 and over time to mitigate the effect of transition
and physical climate change risks as described in this statement
and in the Corporate Responsibility 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 Group 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 CSO. 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 in
recent 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 86 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.
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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 98-105, and through working groups such
as the ESG 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 meet 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.
b.
Impact of climate-related risks and opportunities on our
business, strategy, and financial planning
In 2023, 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 and will not have a material impact on
RELX financial planning as described in Governance above.
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.
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 $35 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 continued a cross-business review
of climate-related product risks and opportunities. Printed and
face-to-face products and events, 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 98.
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 2023, it took further
steps to implement its Energy with Purpose mission statement
to commission only new book content that advances the energy
transition and reduction of carbon emissions. Of 2,900 journals,
four journals relating to hydrocarbon research remain with
updated scope and aims focused on topics such as renewable
energy and carbon capture and storage. Environmental science
journals include a focus on renewable and clean energy. Among
these are the flagship Cell Press title, One Earth, and Solar
Compass, launched in conjunction with the International Solar
Alliance, Joule, and new journal Nexus. The Lancet Countdown
monitors the impact of climate change on global health.
We also continue to review our editorial boards to ensure they
include expertise in these areas and a greater representation
from the global south. The Elsevier Energy Books team likewise
will only commission new content that advances emissions
reductions and the energy transition. Elsevier discontinued
Geofacets, an earth science tool, in 2023 and plans to discontinue
Gulf Professional Publishing in 2024.
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. The United Arab Emirates unveiled its logo for
the 28th Session of the Conference of the Parties to the UN
Framework Convention on Climate Change (COP28) at 2023 World
Future Energy Summit. As part of its Net Zero Carbon Events
commitments requiring signatories to reach net zero by 2050 at
the latest and to halve greenhouse gas emissions by 2030, RX was
part of working groups to advance measurement of event-related
emissions in the year and completed the carbon footprint of ten
shows to better understand emissions from event energy, waste,
production inputs and logistics. It published its net zero pathway
report before the close of the year.
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 COP28, we released
a climate change special issue on the RELX SDG Resource Centre,
a curated list of 159 journal articles and book chapters to inspire
positive environmental action and further climate research.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
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Annual Report 2023 | Corporate responsibility
84
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, the Climate Pledge, 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 before 2025 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.
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.
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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 98-105. 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, where our CSO serves on the Executive Committee.
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 and 2 (location-based) emissions reduction
targets and energy reduction targets are set out on page 80 of this
report. The remuneration of the CEO and the CFO is linked to the
achievement of environment targets. These included in 2023,
a key performance objective to reduce Scope 1 and Scope 2
(location-based) carbon emissions by 40% against a 2015
baseline, with 61% achievement and to reduce energy and
fuel consumption by 27% against a 2015 baseline, with 49%
achievement. See page 132 for further details.
In the year, we reported performance against our $3bn committed
bank facility which has pricing linked to three sustainability
performance targets. In each year, the cost of the facility is
reduced if two or more sustainability targets are achieved and
increased if two or more of the targets are missed. The targets
relate to carbon emissions reduction, as well as increasing the
unique users and the amount of content available on the RELX SDG
Resource Centre. All three targets were achieved. See page 49.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023 | Corporate responsibility
86
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 ISO 14001 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 an 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.
87
RELX
Annual Report 2023 | CR Disclosure Standards
Risk group
Type
Climate-related risk
Implication
Opportunity
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 affecting 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.
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 Target aligned 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. 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.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023 | Corporate responsibility
88
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/Disclosure location
Data security
Description of approach to identifying and addressing
data security risks
SV-PS-230a.1
See page 52
Description of policies and practices relating to
collection, usage and retention of customer information
SV-PS-230a.2
See page 52
(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 55-56
(1) Voluntary and (2) involuntary turnover rate for
employees
SV-PS-330a.2
See page 59
Employee engagement as a percentage
SV-PS-330a.3
68%
Professional integrity
Description of approach to ensuring professional
integrity
SV-PS-510a.1
See pages 5-53
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 59
Employee hours worked, percentage billable
SV-PS-000.B
See page 59
89
RELX
Annual Report 2023 | CR Disclosure Standards
CR Disclosure Standards 3
Global Reporting Initiative (GRI) Content Index and Streamlined
Energy and Carbon Reporting (SECR)
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 organisation
Title page
GRI 102
General Disclosures
Activities, brands, products, and services
5-37
GRI 102
General Disclosures
Location of headquarters
38
GRI 102
General Disclosures
Location of operations
7
GRI 102
General Disclosures
Ownership and legal form
153
GRI 102
General Disclosures
Markets served
7
GRI 102
General Disclosures
Scale of the organisation
7
GRI 102
General Disclosures
Information on employees and other workers
54-59
GRI 102
General Disclosures
Supply chain
69-72
GRI 102
General Disclosures
Significant changes to the organisation and its supply chain
69-72
GRI 102
General Disclosures
Precautionary Principle or approach
73-87
GRI 102
General Disclosures
External initiatives
44
GRI 102
General Disclosures
Membership of associations
44
GRI 102
General Disclosures
Statement from senior decision-maker
3-4
GRI 102
General Disclosures
Values, principles, standards, and norms of behaviour
4, 50-53, 54-59
GRI 102
General Disclosures
Governance structure
40, 50, 112-116
GRI 102
General Disclosures
List of stakeholder groups
43-44, 113-125
GRI 102
General Disclosures
Collective bargaining agreements
59
GRI 102
General Disclosures
Identifying and selecting stakeholders
43-44, 119
GRI 102
General Disclosures
Approach to stakeholder engagement
43-44, 119
GRI 102
General Disclosures
Key topics and concerns raised
43
GRI 102
General Disclosures
Entities included in the consolidated financial statements
166-169
GRI 102
General Disclosures
Defining report content and topic Boundaries
29-30
GRI 102
General Disclosures
List of material topics
43
GRI 102
General Disclosures
Restatements of information
41
GRI 102
General Disclosures
Changes in reporting
41
GRI 102
General Disclosures
Reporting period
41
GRI 102
General Disclosures
Date of most recent report
22/02/24
GRI 102
General Disclosures
Reporting cycle
Annual
GRI 102
General Disclosures
Contact point for questions regarding the report
38
GRI 102
General Disclosures
Claims of reporting in accordance with the GRI Standards
40, 89
GRI 102
General Disclosures
External assurance
90
GRI 103
Management Approach
Explanation of the material topic and its Boundary
43, 80
GRI 103
Management Approach
The management approach and its components
40, 113
GRI 103
Management Approach
Evaluation of the management approach
40, 123
Streamlined Energy and Carbon Reporting (SECR)
Absolute performance
Intensity ratio (per £m revenue)
2022
2023
Change
2022
2023
Change
Global Scope 1 (direct emissions) tCO
2
e
5,211
4,317
-17%
0.61
0.47
-23%
Global Scope 2 (indirect location-based emissions) tCO
2
e
37,270
36,616
-2%
4.36
4.00
-8%
Global energy (including vehicle fuels) MWh
123,325
115,264
-7%
14.42
12.58
-13%
UK energy (including vehicle fuels) MWh
11,220
11,844
6%
1.31
1.29
-1%
UK Scope 1 and Scope 2 emissions tCO
2
e
2,250
2,315
3%
0.26
0.25
-4%
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 2022 to November 2023.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023 | Corporate responsibility
90
Scope
We have been engaged by RELX plc (“RELX”) to perform a ‘limited
assurance engagement,’ as defined by International Standards on
Assurance Engagements, here after referred to as the “engagement”,
to report on RELX’s corporate responsibility data indicated with a ‘^’
symbol (the “Subject Matter”) contained within RELX’s Annual Report
for the year ended 31st December 2023 (the “Report”).
This data is reported under the following headings in the Report:
§
People
§
Health and safety (lost time)
§
Socially Responsible Suppliers (SRS)
§
Environment
§
Climate change
§
Paper
§
SDG Resource Centre
§
Cyber security
§
Helping our people pursue the highest ethical standards
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 2023’ (Criteria), which is available on the
RELX website.
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 (Revised)’) and the
terms of reference for this engagement as agreed with RELX on 11th
January 2024.This standard requires 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 Management
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 Management 1,
Quality Management for Firms that Perform Audits or Reviews of
Financial Statements, or Other Assurance or Related Services
engagements, which requires that we design, implement and operate
a system of quality management including policies or 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:
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 2023, relying on green tariffs and renewable energy
certificates (RECs). However, it should be noted that, for 2023, 20% 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 as set out below.
Conclusion
Based on our procedures and the evidence obtained, we are not aware of
any material modifications that should be made to the Subject Matter for
the year ended 31st December 2023 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
14 February 2024
London
Independent Assurance Statement
to RELX PLC Management
In this section
92
Chief Financial Officer’s report
98
Principal and emerging risks
Financial
review
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
91
RELX
Annual Report 2023
92
RELX
Annual Report 2023 | Financial review
7,874
7,110
7,244
£m
8,553
9,161
Revenue
2023
2020
2022
2021
2019
£m
Adjusted operating profit
2,491
2,076
2,210
2,683
3,030
2023
2020
2022
2021
2019
In 2023, underlying revenue growth was
8% and underlying adjusted operating
profit growth was 13%, and adjusted
earnings per share grew at 11% at
constant currency.
Nick Luff, Chief Financial Officer
Revenue
Underlying revenue growth was 8%, 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, STM maintained its improved growth, and
Legal growth continued to improve. Exhibitions saw strong growth
in revenue due to higher activity levels.
Acquisitions and disposals together had a broadly neutral impact
on revenue, while exhibition cycling effects decreased growth,
giving total revenue growth at constant currency of 7%. The impact
of currency movements was broadly neutral to growth. Reported
revenue, including the effects of exhibition cycling and currency
movements, was £9,161m (2022: £8,553m), up 7%.
Profit
Underlying growth in adjusted operating profit was 13%, 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 the lower cost structure.
Acquisitions and disposals combined had a small negative impact
on adjusted operating profit growth, giving growth at constant
currency of 12%. Currency effects increased adjusted operating
profit by 1%.
Total adjusted operating profit, including the impact of
acquisitions and disposals and currency effects, was £3,030m
(2022: £2,683m), up 13%.
Operating costs on an underlying basis grew 5%, 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 group to
improve cost-efficiency. Total adjusted operating costs, including
the impact of acquisitions, disposals and currency effects,
were also up 5%.
The overall adjusted operating margin was 33.1% (2022: 31.4%).
On an underlying basis, including cycling effects, the margin
improved by 1.7 percentage points with portfolio changes reducing
margins by 0.2 percentage points and currency movements
improving margins by 0.2 percentage points. EBITDA margin also
improved, by 1.6 percentage points, to 38.7%.
Reported operating profit was £2,682m (2022: £2,323m) up 15%,
primarily reflecting the increase in adjusted operating profit and a
lower amortisation charge in respect of acquired intangible assets.
Adjusted net interest expense was £314m (2022: £194m), with the
increase primarily reflecting higher average interest rates and a
charge of £26m in respect of the early redemption of bonds that
were due to be repaid in August 2027.
Adjusted profit before tax was £2,716m (2022: £2,489m), up 9%.
Reported profit before tax was £2,295m (2022: £2,113m) also up
9%, reflecting the improvement in reported operating profit, the
higher interest expense, an impairment charge for some assets
held for sale within Risk and a net downward valuation of the
Ventures portfolio.
The amortisation charge in respect of acquired intangible assets,
including the share of amortisation in joint ventures and
associates, was £280m (2022: £296m).
Chief Financial Officer’s report
93
RELX
Annual Report 2023 | Chief Financial Officer’s report
Adjusted operating profit margin
31.6%
29.2%
30.5%
31.4%
33.1%
2023
2020
2022
2021
2019
EBITDA margin
2023
2020
2022
2021
2019
37.3%
36.1%
37.2%
37.1%
38.7%
ADJUSTED FIGURES
Change
2022
2023
at constant
Change
For the year ended 31 December
£m
£m
Change
currency
underlying
Revenue
8,553
9,161
+7%
+7%
+8%
EBITDA
3,174
3,544
Operating profit
2,683
3,030
+13%
+12%
+13%
Operating margin
31.4%
33.1%
Net interest expense
(194)
(314)
Profit before tax
2,489
2,716
+9%
+8%
Tax charge
(530)
(553)
Net profit attributable to shareholders
1,961
2,156
+10%
+9%
Cash flow
2,709
2,962
+9%
+9%
Cash flow conversion
101%
98%
Return on invested capital
12.5%
14.0%
Earnings per share
102.2p
114.0p
+12%
+11%
DIVIDEND
For the year ended 31 December
2022
2023
Change
Ordinary dividend per share
54.6p
58.8p
+8%
REPORTED FIGURES
For the year ended 31 December
2022
2023
Change
Revenue
8,553
9,161
+7%
Operating profit
2,323
2,682
+15%
Profit before tax
2,113
2,295
+9%
Net profit attributable to shareholders
1,634
1,781
+9%
Net margin
19.1%
19.4%
Cash generated from operations
3,061
3,370
+10%
Net debt
6,604
6,446
Earnings per share
85.2p
94.1p
+10%
Summary financial information is presented in US dollars and Euros on pages 220 and 221 respectively.
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 222 to 230. Underlying growth rates are calculated at constant currency, 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 2022 full-year average and hedge exchange rates.
Acquisition-related costs were £56m (2022: £62m).
The adjusted tax charge was £553m (2022: £530m). The adjusted
effective tax rate was 20.4% (2022: 21.3%), benefitting from non-
recurring tax credits arising from the resolution of certain
historical tax matters. The adjusted tax charge 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.
Adjusted operating profits, interest and taxation are grossed
up for the equity share of interest and taxes in joint ventures
and associates.
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 £507m (2022: £481m), including tax
associated with the amortisation of acquired intangible assets,
disposals and other non-operating items.
The adjusted net profit attributable to RELX PLC shareholders was
£2,156m (2022: £1,961m), up 10%. Adjusted earnings per share
was up 11% at constant currency, and after changes in exchange
rates was up 12% at 114.0p (2022: 102.2p).
The reported net profit attributable to shareholders was £1,781m
(2022: £1,634m) up 9%. Reported earnings per share was 94.1p
(2022: 85.2p) up 10%.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
94
RELX
Annual Report 2023 | Financial review
Cash flows
Adjusted cash flow was £2,962m (2022: £2,709m), up 9% compared
with the prior period. The rate of conversion of adjusted operating
profit to adjusted cash flow was 98% (2022: 101%).
CONVERSION OF ADJUSTED OPERATING PROFIT INTO CASH
YEAR TO 31 DECEMBER
2022
2023
£m
£m
Adjusted operating profit
2,683
3,030
Depreciation and amortisation
491
514
EBITDA
3,174
3,544
Capital expenditure
(436)
(477)
Repayment of lease principal (net)*
(78)
(70)
Working capital and other items
49
(35)
Adjusted cash flow
2,709
2,962
Adjusted cash flow conversion
101%
98%
*
Net of sublease receipts.
Capital expenditure was £477m (2022: £436m), including £447m
(2022: £400m) in respect of capitalised development costs,
reflecting sustained investment in new products. Capital
expenditure was 5.2% of revenue (2022: 5.1%) and excludes pre-
publication costs of £93m (2022: £94m) that were capitalised as
current assets and principal lease repayments under IFRS 16 of
£70m (2022: £78m). Depreciation and other amortisation charged
within adjusted operating profit was £514m (2022: £491m)
and represented 5.6% of revenue (2022: 5.7%). This includes
amortisation of internally developed intangible assets of £330m
(2022: £309m) and depreciation of property, plant and equipment of
£43m (2022: £47m) which combined represent 4.1% (2022: 4.2%)
of revenue.
Interest paid (net) was £294m (2022: £165m), increasing as a result
of higher interest rates. Tax paid of £619m (2022: £495m) was
higher than the income statement charge, with the difference
reflecting timing of tax payments.
In 2023, the cash outflow relating to Exhibitions exceptional costs
charged in 2020 was £5m (2022: £25m). Payments made in respect
of acquisition-related items amounted to £56m (2022: £54m).
Free cash flow before dividends was £1,988m (2022: £1,970m).
Ordinary dividends paid to shareholders in the year, being the 2022
final dividend and 2023 interim dividend, amounted to £1,059m
(2022: £983m). Free cash flow after dividends was £929m
(2022: £987m).
FREE CASH FLOW
YEAR TO 31 DECEMBER
2022
2023
£m
£m
Adjusted cash flow
2,709
2,962
Interest paid (net)
(165)
(294)
Cash tax paid*
(495)
(619)
Exceptional costs in Exhibitions
(25)
(5)
Acquisition-related items
(54)
(56)
Free cash flow before dividends
1,970
1,988
Ordinary dividends
(983)
(1,059)
Free cash flow after dividends
987
929
*
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
2022
2023
£m
£m
Net debt at 1 January
(6,017)
(6,604)
Free cash flow post dividends
987
929
Acquisitions: total consideration
(443)
(130)
Share repurchases
(500)
(800)
Purchase of shares by the Employee Benefit Trust
(50)
(50)
Other*
(21)
25
Currency translation
(560)
184
Movement in net debt
(587)
158
Net debt at 31 December
(6,604)
(6,446)
*
Includes pension deficit recovery payments, share option exercise
proceeds, leases, disposals and acquisition timing effects.
Total consideration on acquisitions completed in the year was
£130m (2022: £443m). Cash spent on acquisitions was £132m
(2022: £460m), excluding nil borrowings (2022: £3m of borrowings)
in acquired businesses and including deferred consideration of
£16m (2022: £21m) on past acquisitions and investments in joint
ventures and associates and venture capital investments of £8m
(2022: £66m). Net cash inflow from disposals after timing
differences and separation and transaction costs was £12m
(2022: £3m).
Share repurchases in 2023 were £800m (2022: £500m) with a
further £150m repurchased in 2024 as at 14 February. In addition,
the Employee Benefit Trust purchased shares of RELX PLC to
meet future obligations in respect of share based remuneration
totalling £50m (2022: £50m). Proceeds from the exercise of share
options were £41m (2022: £26m).
Leverage – Net debt/EBITDA
2023
2020
2022
2021
2019
2.5x
3.3x
2.4x
2.1x
2.0x
Adjusted cash flow conversion
96%
97%
101%
101%
98%
2023
2020
2022
2021
2019
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Annual Report 2023 | Chief Financial Officer’s report
RELX term debt maturities at 31 December 2023
819
830
885
553
950
750
830
1,053
7
1,328
2025
2024
2026
2027
2028
2029
2030
2031
>2032
2032
$m
Term debt translated at 31 December 2023 exchange rates, stated at par value
Return on invested capital
13.6%
10.8%
11.9%
12.5%
14.0%
2023
2020
2022
2021
2019
Funding
Debt
Net debt at 31 December 2023 was £6,446m, a decrease of £158m
since 31 December 2022. The majority of our borrowings are
denominated in US dollars and euros, and as sterling was stronger
against the US dollar and euro at the end of the year, our net
borrowings decreased when translated into sterling. Excluding
currency translation effects, net debt increased by £26m.
Expressed in US dollars, net debt at 31 December
2023 was
$8,251m, an increase of $260m since 31 December 2022.
Gross debt of £6,497m (2022: £6,730m) is comprised of bank and
bond borrowings of £6,356m (2022: £6,548m) and lease liabilities
under IFRS 16 of £141m (2022: £182m). The fair value of related
derivative liabilities was £108m (2022: £213m), finance lease
receivables totalled £4m (2022: £5m) and cash and cash
equivalents totalled £155m (2022: £334m). In aggregate, these
give the net debt figure of £6,446m (2022: £6,604m).
The effective interest rate on gross bank and bond borrowings was
4.6% in 2023 (2022: 2.9%). Excluding the charge relating to the
early bond redemption it was 4.2%. As at 31 December 2023, gross
bank and bond borrowings had a weighted average life remaining
of 4.1 years and a total of 57% 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 2.0x (2022: 2.1x),
calculated in US dollars.
At 31 December 2023, there was a net negative accounting
balance (pension assets less pension obligations) of £63m,
largely unchanged from the net negative position of £55m as
at 31 December 2022.
Liquidity
In June 2023, €750m of euro denominated term debt was issued
with a coupon of 3.75% and a maturity of eight 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. This includes access to a $3bn committed
bank facility which provides security of funding for short-term
debt, and which is undrawn. In March 2023 the maturity date of the
facility was extended to April 2026. The facility has pricing linked to
three ESG performance targets, all of which were achieved in 2023.
Invested capital and returns
Net capital employed decreased by £700m to £10,389m at
31 December 2023 (2022: £11,089m), primarily due to changes
in exchange rates. The carrying value of goodwill and acquired
intangible assets decreased by £693m due to the changes in
exchange rates. An amount of £64m (2022: £125m) was capitalised
in the year in respect of acquired intangible assets and £68m
(2022: £269m) was recorded as goodwill.
These additions were offset by amortisation and impairment of
acquired intangible assets.
NET CAPITAL EMPLOYED
AS AT 31 DECEMBER
2022
2023
£m
£m
Goodwill and acquired intangible assets*
10,477
9,784
Internally developed intangible assets*
1,435
1,477
Property, plant and equipment*,
right-of-use assets* and investments
557
487
Net pension obligations
(55)
(63)
Working capital
(1,325)
(1,296)
Net capital employed
11,089
10,389
*
Net of accumulated depreciation and amortisation.
The post-tax return on average invested capital in the year was
14.0% (2022: 12.5%). The increase was driven by growth in
adjusted operating profit, and a lower effective tax rate.
RETURN ON INVESTED CAPITAL
AS AT 31 DECEMBER
2022
2023
£m
£m
Adjusted operating profit
2,683
3,030
Tax at adjusted effective rate
(571)
(618)
Adjusted effective tax rate
21.3%
20.4%
Adjusted operating profit after tax
2,112
2,412
Average invested capital*
16,920
17,184
Return on invested capital
12.5%
14.0%
*
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.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
96
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Annual Report 2023 | Financial review
Dividends and share repurchases
2022
2023
£m
£m
Change
Adjusted earnings per share
102.2p
114.0p
+12%
Reported earnings per share
85.2p
94.1p
+10%
Ordinary dividend per share
54.6p
58.8p
+8%
The final dividend proposed by the Board is 41.8p per share.
This gives total dividends for the year of 58.8p (2022: 54.6p), 8%
higher than the prior year.
The dividend policy of RELX PLC is, over the longer term, to
grow dividends broadly in line with adjusted earnings per share,
paying out approximately half of adjusted earnings in dividend
each year.
During 2023, a total of 30.9m RELX PLC shares were
repurchased at an average price of 2,588p. Total
consideration for these repurchases was £800m. A further
2.0m (2022: 2.2m) shares were purchased by the Employee
Benefit Trust. As at 31 December 2023, total shares in issue,
net of shares held in treasury and shares held by the Employee
Benefit Trust, amounted to 1,881.5m. A further 4.6m shares
have been repurchased in 2024 as at 14 February.
Distributable reserves and parent
company balance sheet
As at 31 December 2023, RELX PLC had distributable reserves
of £6.5bn (2022: £6.5bn). 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 £18.3bn which is not reflected on the
consolidated balance sheet. The parent company balance sheet
can be found on page 214. Further information on the
distributable reserves can be found in the parent company
financial statements on page 215.
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.
Definitions of alternative performance measures can be found
on pages 222 to 230
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 166 to 212.
The accounting policies and estimates which require the
most significant judgement relate to the capitalisation of
development spend and accounting for defined benefit
pension schemes.
Further detail is provided in the accounting policies on
pages 171 and 172 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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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 194 to 200. 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 and various measures of cash flow as
a percentage of net debt. Further detail on liquidity
management is provided on pages 195 and 196.
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
194 and 195.
Corporate responsibility
Our focus on corporate responsibility continues to underpin
our activities. This included in 2023, achieving the
environmental targets we had set for 2025. We continue to
hold group-wide certification of our Environmental
Management System.
To track our environmental progress through the year,
I led quarterly Environmental Checkpoint meetings with
senior managers. We have established a working group to
advance our Net Zero Carbon Events commitments and our
Exhibitions business has published a net zero roadmap. For
World Environment Day, I sent a message to all RELX staff
highlighting our environmental performance and priorities,
building on the work of Green Teams at 44 locations across
the group focused on environmental management at the
local level.
Our most significant contribution to the environment-related
UN Sustainable Development Goals (SDGs), including SDG 7,
Clean And Affordable Energy and SDG 13, Climate Action,
remains our products and services. In 2023, we deployed the
EmeraldSky methodology developed by Risk’s global flight
data business, Cirium, to calculate our Scope 3, business
flight travel data. At Elsevier, new titles included Fuel Cells for
Transportation: Fundamental Principles and Applications, and
in the year, we held the 2023 Renewable Transformation
Challenge along with the International Solar Energy Society
(ISES). Legal’s Professional Practical Guidance Journal
featured a dedicated climate change edition and RX held
World Future Energy Summit 2023, with over 200 hours of
expert content.
We are committed to transparency. You can find more
information and data in the Corporate Responsibility section
on pages 38-90, including our Taskforce on Climate-Related
Financial Disclosure (TCFD) on page 82. We are preparing for
disclosures related to the Corporate Sustainability Reporting
Directive for release in next year’s Annual Report.
Nick Luff
Chief Financial Officer
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
98
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Principal and emerging risks
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 businesses.
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. One example of an emerging risk is the
emerging regulatory environment with respect to Artificial
Intelligence. We mitigate this risk by maintaining a dialogue with
the regulatory authorities, following our Responsible AI Principles
and ensuring that we maintain a robust data privacy and
governance structure. Another emerging risk related more
specifically to generative artificial intelligence is the potential for
invented content, or hallucinations. We mitigate this risk by
ensuring subject matter experts are involved in every step of the
development process, employing a robust testing process and
providing links to our trusted content through hallucination-free
citations in our AI generated output. Another set of emerging
risks are climate related risks which are further described on
pages 38 to 90 in the Corporate Responsibility section of the 2023
Annual Report.
RISK
MITIGATION
External Risks
Data Privacy
In the course of our business, we process personal data from
customers, end users, employees and other sources. Certain
business areas rely extensively upon content that includes
personal data from public records, governmental authorities,
publicly available information and media, and other information
companies, including competitors. Changes in data privacy
legislation, regulation, and/or enforcement could impact our
ability to collect and use personal data, potentially affecting the
availability and effectiveness of our products. Failure or perceived
failure to comply with requirements for proper collection, use,
storage, transfer and other processing of personal data may
damage our reputation, divert time and effort of management and
other resources, increase cost of operations, and expose us to risk
of loss, fines and penalties, litigation, and increased regulation.
We are guided by the RELX Privacy Principles and have
implemented governance structures, contractual restrictions,
technical measures, and other controls to protect personal data
and meet data privacy requirements across all jurisdictions
where we operate. We have assurance programmes to monitor
compliance and conduct training and awareness programmes
for our employees.
Our commitment to fair, explainable, and accountable AI
practices as set out in our Responsible Artificial Intelligence
Principles helps to ensure that our AI uses of personal data are
subject to robust privacy governance.
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,
infringed, or circumvented, including by AI technologies, 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 including use by large language
models. We are vigilant as to the use of our intellectual property
and, as appropriate, take action to challenge illegal content
distribution sources.
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RISK
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 businesses are 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 businesses 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 businesses engage in scenario planning and
develop contingency plans where relevant and consider exiting
businesses and markets that no longer fit our strategy.
Payment model evolution
Our Scientific, Technical & Medical (STM) primary research
content publishing business operates under two payment models:
‘pay-to-read’, where readers or their institutions, as users of the
content pay, and authors publish for free, or ‘pay-to-publish’,
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 and
now represents a significant portion of the volume of primary
research that we publish. 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. Rapid 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. Both payment models
are available on a subscription or transactional basis. 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. To meet
changing customer needs, we continue to launch dedicated
pay-to-publish journals across a range of scientific disciplines.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
100
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Annual Report 2023 | Financial review
RISK
MITIGATION
Strategic Execution Risks
Customer acceptance of our products
Our businesses are dependent on the continued demand by our
customers for our products and services and the value placed
on them. We 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
technological innovations, such as the use of artificial intelligence,
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 higher value add information-
based analytics and decision tools.
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, and we have a long track record of using artificial
intelligence. We leverage user centered 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
Cyber security
Our businesses maintain and use 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 our businesses.
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 businesses. 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 businesses 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.
We continuously monitor the global regulatory landscape to
identify emerging cybersecurity, data protection and privacy
laws, and, as needed, implement plans to comply with them.
We procure appropriate cybersecurity insurance to mitigate
potential losses arising from a cybersecurity incident.
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RISK
MITIGATION
Face-to-face events
Face-to-face events are susceptible to economic cycles,
communicable diseases, severe weather events and other natural
disasters, terrorism and availability of venues. Each or any of
these may impact our ability to hold face-to-face events, and
exhibitors’ and visitors’ desire and ability to travel in person to
events. These factors each have the potential to reduce revenues,
increase the costs of organising events and adversely affect cash
flows and reputation.
We operate a large number of events across a wide variety
of venues in many countries, serving both domestic and
international exhibitors and attendees. 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. We operate flexibly, rescheduling or
re-locating events when necessary. We take appropriate
measures at our events to ensure the well-being and safety of
exhibitors, visitors and employees. Our face-to-face events are
supported by enhanced digital services.
Supply chain dependencies
Our organisational and operational structures depend on
suppliers including outsourced and offshored functions, as well
as cloud service, software, and large language model 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 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 suppliers 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 supplier. 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.
Technology and business resilience
Our businesses are 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 businesses 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.
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.
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.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
102
RELX
Annual Report 2023 | Financial review
RISK
MITIGATION
Financial Risks
Tax
Our businesses operate globally, and our profits are subject
to taxation in many different jurisdictions and at differing tax rates.
Tax laws that currently apply to our businesses 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 92 to 97 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
.
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 92 to 97. The approach to
the management of treasury risks is described in note 17 to the
consolidated financial statements.
103
RELX
Annual Report 2023 | Principal and emerging risks
RISK
MITIGATION
Pensions
We operate a number of pension schemes around the world,
including local versions of the defined benefit type in the United
Kingdom 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.
Reputational Risks
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 shareholder information
Financial review
Corporate Responsibility
Overview
104
RELX
Annual Report 2023 | 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 98 to 103.
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 2023 and updated in February 2024. 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 98 to 103.
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 2024 to 2026, and the closure of the debt capital
markets preventing the refinancing of scheduled liabilities.
It is assumed that the second extension option on the Group’s
undrawn $3bn revolving credit facility will be exercised in April
2024, taking the maturity to April 2027. 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.
We remain focused on successfully pursuing our strategic
priority of organically developing increasingly sophisticated
information-based analytics and decision 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.
105
RELX
Annual Report 2023 | Principal and emerging risks
The Strategic Report, as set out on pages 2 to 105 has been approved by the Board of RELX PLC.
By order of the Board
Registered Office
Henry Udow
1-3 Strand
Company Secretary
London
14 February 2024
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 2025 and during the longer period over which the
Group’s viability has been assessed, as described on page
104. 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 does not contain 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 2023 financial statements.
A commentary on the Group’s cash flows, financial position and
liquidity for the year ended 31 December 2023 is set out in the
Chief Financial Officer’s report on pages 92 to 97. 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 2025
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 194 to 200. The principal risks facing the Group are set
out on pages 98 to 103.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
106
106
RELX
Annual Report 2023
In this section
108
Board Directors
110
RELX senior executives
112
Chair’s introduction to corporate governance
113
Corporate governance review
125
Report of the Nominations Committee
128
Directors’ remuneration report
149
Report of the Audit Committee
153
Directors’ report
Governance
RELX
Annual report including corporate responsibility report and financial statements 2022 |
107
107
RELX
Annual Report 2023
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
108
RELX
Annual Report 2023 | Governance
Executive Directors
Non-Executive Directors
Erik Engstrom (60)
Chief Executive Officer
Appointed:
Chief Executive Officer of RELX since
November 2009. Joined as Chief Executive Officer
of Elsevier in 2004.
Other appointments:
None.
Past appointments:
Served as a Non-Executive
Director of Smith & Nephew plc from 2015 until
2023. 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 (56)
Chief Financial Officer
Appointed:
September 2014
Other appointments:
Non-Executive Director and
Audit Committee Chair 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 (66)
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 (67)
A
R
C
Non-Executive Director; Independent
Appointed:
October 2020
Other appointments:
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, a position she held from October 2018 to
September 2023. 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
Alistair Cox (62)
A
R
C
Non-Executive Director; Independent
Appointed:
April 2023
Other appointments:
None.
Past appointments:
Served as Chief Executive of
Hays plc from September 2007 to August 2023 and
as Chief Executive of Xansa plc from 2002 to 2007.
Was previously the Group Strategy Director and
Regional Director for Asia Pacific at Blue Circle
Industries plc, prior to which he worked as a
consultant for McKinsey and held various
engineering, management and research science
roles at Schlumberger Wireline Services and BAE
Systems plc. Formerly a Non-Executive Director of
Just Eat plc and 3i Group plc.
Nationality:
British
Suzanne Wood (63)
A
N
C
Non-Executive Director; Independent,
Senior Independent Director
Appointed:
September 2017
Other appointments:
Non-Executive Director
of Ferguson plc and H&E Equipment Services, Inc.
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
Changes Accepted
RELX
Annual Report 2023 | Board Directors
109
Board Committee membership key
A
Audit Committee
N
Nominations Committee
C
Corporate Governance Committee
R
Remuneration Committee
Committee Chair
Andrew Sukawaty (68)
A
C
Non-Executive Director; Independent
Appointed:
April 2019
Other appointments:
Director of Hg Capital LLP,
Matrix 42 and Viasat. Founding Partner of Corten
Capital.
Past appointments:
Was formerly the Chair of
Inmarsat between 2003 and 2023 until its
acquisition by Viasat in May 2023 and was 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 Inc. and
NTL Group Ltd.
Nationality:
American
Robert MacLeod (59)
R
N
C
Non-Executive Director; Independent
Appointed:
April 2016
Other appointments:
Non-Executive Director of
Vesuvius plc.
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 (64)
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
Charlotte Hogg (53)
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.
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
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
110
RELX
Annual Report 2023 | 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 2023 | RELX Senior Executives
111
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 shareholder information
Financial review
Corporate Responsibility
Overview
112
RELX
Annual Report 2023 | Governance
Chair’s introduction to corporate governance
Stakeholder engagement and Board decision-making
The views and interests of RELX’s stakeholders are a key element
of the Board’s decision-making process. We are focussed on
ensuring that the interests of our stakeholders are duly taken into
account during Board discussions. Across RELX we engage with
our stakeholders throughout the year and we rely on this
engagement to ensure we continue to provide solutions and
services that meet the evolving needs of our customers and
continue to effectively support our workforce.
This is why we actively listen to our investors, employees,
customers, suppliers and the communities that we serve and in
which we operate, and we have appropriate mechanisms in place
to ensure that the outcomes of such engagement are available to
the Board. Information about our approach to stakeholder
engagement is on pages 119 to 122.
Regulatory developments
During 2023, the UK Government and other regulatory bodies
have considered several potential governance reforms. These
proposals have evolved over the course of the year and we still
await their finalisation. To ensure the Board is kept apprised of
developments in this regard, we established a management
steering committee, reporting to the Audit Committee, tasked
with assessing the Company’s preparedness to respond to and
implement any UK regulatory changes should they be adopted.
The Audit Committee has also attended technical briefings with
our external advisers on the scope and likely impact of the
proposed reforms on RELX.
The Board has engaged with management in respect of further
regulatory changes in the areas of sustainability and ESG
reporting, which will impact RELX over the coming years. We have
robust governance processes in place in respect of ESG matters
and continue to monitor developments in this area, including in
relation to the European Union Sustainability Reporting
Standards and the Corporate Sustainability Reporting Directive.
Board effectiveness
As Chair, I am responsible for ensuring that the Board operates
effectively, and that the Board, its Committees and each individual
Director is evaluated on an annual basis. In 2023, we engaged
Manchester Square Partners to conduct an externally facilitated
evaluation.
The outcome of the evaluation confirmed that all of our Directors
contribute effectively and continue to demonstrate commitment
to their roles, and that the Board and its Committees continue to
operate effectively. The evaluation process and its outcomes are
explained on page 123.
Paul Walker
Chair
14 February 2024
Effective governance policies and
practices are fundamental to
RELX’s culture of acting with integrity
in all that we do.
Introduction
On behalf of the Board, I am pleased to introduce our Corporate
Governance Review for the year ended 31 December 2023. The
following pages provide an overview of our corporate governance
framework and of the work undertaken by the Board and its
Committees during the year.
Together with the reports of the Audit, Nominations and
Remuneration Committees, our corporate governance review
sets out our approach to effective governance and demonstrates
how we have complied with the UK Corporate Governance Code.
Corporate governance
The Board takes seriously its responsibility for overseeing the
governance of RELX. We believe that effective governance policies
and 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 45 to 49).
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.
Board changes and succession planning
There have been a number of changes to the composition of our
Board and Committees during the year. Dr Wolfhart Hauser
retired following the conclusion of our annual general meeting in
April after serving as a Director since 2013. We thank Dr Hauser
for his valued contributions to the Board and to the various
Committees on which he served over the years. Suzanne Wood
succeeded Dr Hauser as our Senior Independent Director,
and Robert MacLeod has taken on the role of Chair of the
Remuneration Committee.
We are pleased to have welcomed Alistair Cox to the Board this
year. Following his appointment as a Non-Executive Director
in April, Mr Cox has also joined our Audit, Remuneration and
Corporate Governance Committees. In December 2023 the
Company announced that Bianca Tetteroo will be joining the
Board as a Non-Executive Director, with effect from 1 July 2024,
subject to her election by shareholders at our AGM in April 2024.
We look forward to welcoming her to the Board. Further
information about our Board appointment process is available
in our Nominations Committee Report on page 127.
The 2024 AGM will mark the retirement of Marike van Lier Lels
from the Board. Marike joined the RELX PLC Board in 2015.
On behalf of the Board I would like to thank Ms van Lier Lels for
her valued contributions to RELX.
113
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
§
Approval of RELX’s risk appetite, oversight of risk
management framework including principal and emerging
risks and internal control systems arrangements
§
Corporate governance arrangements, including Board and
Committee composition and terms of reference
§
Approval of key policies, including RELX’s Code of Ethics and
Business Conduct (the Ethics Code), Tax and Dividend
Policies and Inclusion and Diversity Policies
§
Approval of the Company’s Annual Report and periodic
financial statements and trading updates
§
Oversight of the Ethics Code reporting channels for our
workforce to raise concerns, and ensuring workplace
policies and practices align with the company’s values and
intended culture
§
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
RELX
Annual Report 2023
Corporate governance review
The Board
The Board determines RELX’s purpose and values and sets and oversees delivery of its strategic aims
and objectives for long-term, sustainable success. The Board monitors and oversees RELX’s governance, risk management
and internal controls processes and culture.
Board leadership
The Board is responsible for promoting the long-term sustainable success of the Company. To ensure the Board operates
effectively and efficiently it has established four principal Committees to provide focused oversight, each with delegated authority
to oversee and report to the Board on material and relevant matters, as appropriate.
The roles and responsibilities of each Committee are set out in their individual terms of reference which are available on the
Company’s website
www.relx.com
. A summary of the Committees’ key responsibilities is set out below.
Audit Committee
Reviews and monitors the
integrity of financial reporting,
internal control and risk
management systems, the
effectiveness of the internal
audit process and the
performance, independence
and effectiveness of the
external auditor.
The Committee comprises only
independent Non-Executive
Directors.
Remuneration Committee
Determines, monitors and
oversees the implementation of
RELX’s remuneration policy for
the CEO, CFO, the Chair, and
Senior Executives below Board
level. The Committee reviews
the ongoing appropriateness of
the remuneration policy.
The Committee comprises only
the Chair and Non-Executive
Directors.
Nominations Committee
Keeps under review the
composition of the Board and its
Committees; ensures orderly
succession plans are in place for
the Board and senior
management and ensures a
diverse pipeline for such
succession and procures the
recruitment of new Directors.
The Committee comprises only
the Chair and 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
the Chair and Non-Executive
Directors.
Further information about
the work of the Audit
Committee is in its report
on pages 149 to 152
The Directors’
Remuneration Report
is set out on pages 128 to
148
Further information
about the work of the
Nominations Committee
is in its report on pages 125
to 127
RELX Senior Executives
To enable efficient day-to-day management of RELX’s business areas, there is a structure of delegated authorities in place from
the Board to the Chief Executive Officer and a team of Senior Executives (shown on pages 110 to 111). This delegated authority
framework, which is reviewed and approved by the Board each year, allows the necessary operational and management decisions
to be taken by the right people, at the appropriate time to execute the company’s strategy. There are appropriate controls in place to
ensure such decisions remain consistent with the risk appetite, policies and objectives established by the Board.
Our governance framework
Matters reserved to the Board
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
114
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Annual Report 2023 | Governance
Board roles
As at the date of this 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 in the Nominations Committee Report on pages 125 to 127.
Division of responsibilities
There is 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 RELX. The key responsibilities of each of the director roles on the Board is summarised below.
Chair
§
Provides leadership of the Board and ensures its overall
effectiveness
§
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 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 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 RELX, within the delegated
authority limits set by the Board
§
Develops RELX’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 RELX’s financial affairs
§
Responsible for RELX’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 external perspectives and a broad range of experience
to the Board
§
Provide constructive challenge and input to the development
of strategy
§
Scrutinise the performance of management in meeting
agreed goals and monitor the delivery of RELX’s strategy
§
Serve as members of Board Committees as required and
Chair the Audit and Remuneration Committees
Governance structure
RELX’s corporate governance framework consists of leadership
bodies, processes and supporting documentation to ensure that
RELX is appropriately directed, led and controlled at all levels,
with appropriate oversight and involvement by the Board and
senior management. It is designed to safeguard and enhance the
creation of long-term, sustainable shareholder value and to
enable our business areas to operate with the required agility and
flexibility to address effectively the needs of our customers, while
taking into account all applicable statutory and regulatory
requirements. The rights, responsibilities and accountabilities of
those who work for and on behalf of RELX are clearly established
through delegated authorities, corporate policies and codes of
ethics and conduct, which promote the protection of RELX’s
reputation and our commitment to acting with integrity in all that
we do. The RELX Operating and Governance Principles set out the
processes, policies, controls and related assurance activities that
have been put in place to mitigate risk and serve as a first point of
reference for management. They also provide our workforce with
the corporate policies and practices with which they must comply.
The Principles are regularly reviewed by the Board and are
updated as required. RELX’s Ethics Code sets out the core
principles and standards of professional conduct by which RELX
operates and provides a framework for building and maintaining
the desired culture of RELX. The Ethics Code provides all those
who work for RELX with clear guidelines for how to conduct
themselves in the workplace and across our broader operating
environments, to inspire trust among all our stakeholders and to
demonstrate commitment to our core value of ‘Do the Right
Thing’. There are mechanisms in place to help our workforce
to understand and comply with their obligations under the
Ethics Code, which include ongoing training and established
communication channels to ask questions and report concerns.
We endeavour to ensure that our workplace policies are
user-friendly, clear and accessible. The Ethics Code is
regularly reviewed and approved by the Board and is available
at,
www.relx.com
. Internal control and risk management
arrangements are a central part of our governance framework.
These are monitored by the Audit Committee and overseen by
the Board (further information is on pages 124 and 149 to 152).
115
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Annual Report 2023 | Corporate Governance Review
Compliance with the UK Corporate
Governance Code
RELX PLC applies 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 2023, the Board considers
that the company fully complied with the principles and
provisions of the Code.
Board programme
The Board met formally seven times during the year. Five
meetings were held in person, in the UK and in New York. Through
a structured programme of scheduled meetings, the Board
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. There are processes 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 to allow the Board adequate time
to discuss and challenge strategic proposals. The Board’s annual
programme and the agendas for the Committees are prepared
by their respective Chairs with support from the Company
Secretary. 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, and other senior managers are invited to attend meetings
where appropriate.
Board discussions are informed through regular reports and
presentations from senior management at Board and Committee
meetings, and through deep-dive sessions into individual
business areas, topics of strategic relevance and future
developments that may impact RELX. Regular reports are
provided, covering business area and overall strategies and
financials, along with relevant regulatory, legislative and
governance updates. RELX’s annual strategy review process
comprehensively assesses its strategic position and key strategic
options, considering opportunities and risks to its future success
and the long-term sustainability and viability of its business
model. The Board engaged in a two-day, in-depth strategy session
in September.
Information and support
There are processes in place to ensure that the Board and its
Committees receive relevant information at the right time and
with the appropriate level of detail to inform decision-making and
enable effective monitoring of management’s progress in
accordance with agreed strategy. The Directors are provided with
papers ahead of all scheduled Board and Committee meetings,
containing management updates, relevant context and market
information, and other supporting information and reports,
as appropriate.
All the Directors have access to the advice of the Company
Secretary and may also take independent professional advice at
the company’s expense where they deem this to be necessary
for the furtherance of their duties to the company. 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.
Each of the Directors is expected to attend all meetings of the
Board and of the Committees of which they are a member.
However, in circumstances where a Director is unable to attend
a meeting, they are provided with the relevant papers and have
the opportunity to discuss any matters arising with the respective
Chair and with their fellow Board and Committee members.
All Directors are provided with a copy of the minutes of
each meeting.
Director induction
Following appointment, and as required, all Directors
receive a full, formal induction, that is tailored to their
individual requirements, based on existing knowledge and
experience. The Chair and Company Secretary are responsible
for ensuring that an effective induction programme takes place
for all new Directors.
During the year, Alistair Cox (appointed in April 2023) was provided
with a comprehensive briefing pack including detailed information
about each of RELX’s business areas, governance and internal
controls, and recent reporting and investor materials, together
with access to historical Board papers and minutes. To provide a
sufficiently in-depth and current understanding of our operations,
a number of meetings were organised with senior management
from RELX’s business areas and corporate functions, as well as
with the external auditor.
Ongoing development
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 ensures that the Directors have sufficiently in-depth
knowledge of RELX’s business areas and operations and are kept
apprised of relevant events and changes in RELX’s operating
environment and markets. In 2023, the Directors took part in a
deep-dive into the Legal and Exhibitions business areas, covering
financial and operational performance by segment, product
development and strategic plans. The Audit Committee also
attended a series of technical deep-dive briefing sessions.
Further information about the work and activities of the Audit
Committee is available in the Audit Committee Report 149 to 152.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
116
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Annual Report 2023 | Governance
Purpose, strategy, values and culture
RELX places significant emphasis and importance on the way we do business. We are clear and unequivocal about our commitment to
do so with integrity and in accordance with the highest ethical standards.
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.
How the Board monitors culture
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
our business areas. 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 and Ethics Code to ensure the right framework
is in place for RELX to operate with integrity, and that its working
practices effectively promote a culture of strong engagement
with our business and purpose, and with the communities that we
serve and in which we operate. We strive to continually improve
customer outcomes through a culture that is fact-based,
data-driven and analytical.
The Board has appointed a Non-Executive Workforce Engagement
Director to engage directly with employee representatives from
across RELX and to report back to the Board (further information
about this engagement is on page 120). This provides the Board
with insights into how culture is embedded across RELX’s
business areas and functions and any issues that need to be
addressed. The views of employees are also measured through
annual employee engagement surveys, 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 is presented to the Board. The Board also receives
regular reports and presentations containing culture-related
employee data and updates on corporate responsibility activities
from across each of RELX’s business areas. Such reports
include progress against our people objectives in areas such
as well-being, pay equity and reducing inequalities through
inclusion. This contributes to the Board’s assessment of the
culture at RELX and provides a context against which the Board
has taken a number of its principal decisions during the year.
Through the activities of the Audit Committee, the Board receives
updates on alleged and substantiated violations of the Ethics Code
and significant matters raised through reporting channels, which
provide insights into governance and compliance behaviours.
117
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Annual Report 2023 | Corporate Governance Review
Board activities during the year
Purpose and strategy
The Company’s purpose,
strategy, culture and
values statement is on
page 116
Read more about RELX’s
strategy and business
model on pages 5 to 11
§
At a two-day strategy session in September, the Board discussed strategic initiatives for RELX and
debated and approved RELX’s three year strategic plan for 2024 to 2026. 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.
§
In June and September, the Directors attended presentations led by business area senior
management. These included updates on strategy supplemented by presentations from subject
matter experts on key products, innovations and areas of focus, and a final session for the Board
to provide their feedback to senior management.
§
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 the company’s purpose, strategy, values and culture statement and confirmed
that 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 120
How we invest in and
reward our workforce is on
page 59
RELX’s approach to I&D
and how we monitor our
progress is set out on
pages 54 to 57 and 126 to
127
§
The Board oversaw Director succession planning arrangements during the year. On the
recommendation of the Nominations Committee, the Board approved the appointment of Bianca
Tetteroo who will join the Board as a Non-Executive Director on 1 July 2024, subject to shareholder
approval at the 2024 AGM.
§
Having the right people in leadership roles is an important factor in embedding the desired culture for
RELX. The Nominations Committee and the Board were updated on the ongoing leadership talent
reviews undertaken by management and plans for talent development across RELX’s business and
functional areas.
§
The RELX and Board Inclusion and Diversity policies were reviewed by the Board to ensure they
remain fit for purpose and continue to align with our desired culture and effectively support our
purpose and strategy.
§
The Board considered the results of the company-wide employee opinion survey conducted during
2023 (further information is on page 54).
Environment, Social and
Governance (ESG)
Information about RELX’s
ESG activities is available
in our Corporate
Responsibility Report on
pages 38 to 90
§
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 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 69 to 72.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
118
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Annual Report 2023 | Governance
Director attendance at Board and Committee meetings
The following table shows the attendance by Directors at Board and Committee meetings during the year. Attendance is expressed as
the number of meetings attended by each Director out of the number of meetings they were eligible to attend.
Directors
Committee
appointments
Board
(1)
Audit
Committee
Remuneration
Committee
Nominations
Committee
Corporate
Governance
Committee
Paul Walker (Chair)
N
C
R
7/7
4/4
4/4
3/3
Erik Engstrom
7/7
Nick Luff
7/7
Alistair Cox
(2)
A
R
C
5/5
3/3
2/2
3/3
June Felix
(3)
A
R
C
6/7
3/4
3/4
3/3
Wolfhart Hauser
(4)
R
N
C
2/2
2/2
1/1
1/1
Charlotte Hogg
A
C
7/7
4/4
3/3
Robert MacLeod
(5)
R
N
C
7/7
4/4
4/4
3/3
Andrew Sukawaty
A
C
7/7
4/4
3/3
Marike van Lier Lels
N
C
7/7
4/4
3/3
Suzanne Wood
(6)
A
A
N
C
7/7
4/4
3/3
3/3
Committee membership key
A
Audit Committee
R
Remuneration Committee
N
Nominations Committee
C
Corporate
Governance Committee
Committee Chair
(1)
In addition to the seven scheduled Board meetings, the Directors also attended two full-day strategy and business review meetings.
(2)
Alistair Cox was appointed to the Board at the conclusion of the Company’s AGM on 20 April 2023, when he also joined the Audit Committee. Mr Cox was appointed to the
Remuneration and Corporate Governance Committees with effect from 8 June 2023.
(3)
June Felix was unable to attend the Board and Committee meetings held in July.
(4)
Wolfhart Hauser retired from the Board and stepped down from the Remuneration, Nominations and Corporate Governance Committees with effect from the conclusion
of the Company’s AGM on 20 April 2023.
(5)
Robert MacLeod was appointed Chair of the Remuneration Committee with effect from the conclusion of the Company’s AGM on 20 April 2023.
(6)
Suzanne Wood joined the Nominations Committee at the conclusion of the Company’s AGM on 20 April 2023.
Risk management
and internal control
The Company’s principal and
emerging risks and mitigation
strategies are set out on pages
98 to 103
The Company’s Viability
Statement is on page 104
Further information about
RELX’s internal controls is on
pages 98, 124 and 151
§
The Audit Committee and the Board reviewed the effectiveness of the systems of risk management
and internal control in operation during 2023 and determined that RELX’s control systems provided
reasonable assurance against material inaccuracies or loss and have functioned properly and
effectively throughout the year.
§
The Board, supported by the work of the Audit Committee, 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 RELX’s financial position, the Board considered RELX’s
ongoing viability and approved the company’s Viability Statement.
§
Feedback from the Board’s 2022 evaluation indicated that the Board’s agenda should include further
updates on RELX’s assessment of material cyber and information security risks, and approach to
mitigation and information security controls, on a regular basis. The Board received regular reports
from the Head of Information Security and Data Protection on these matters and further updates from
management on matters of particular significance to each of the four business areas. Cybersecurity
and data privacy are considered principal risks for RELX.
Shareholder matters
Details of the Board’s
engagement with investors
during the year are on page 119
Information about the
Company’s dividend policy is
on page 96
§
The Company completed an £800m share buyback programme during 2023. 31m shares held in
Treasury were cancelled on 7 December 2023. Following a robust assessment of RELX’s financial
position and continued strong EBITDA, the Board approved a further share buyback programme of
£150m from 2 January to 9 February 2024, as announced on 8 December 2023.
§
In line with RELX’s long-term dividend policy, the Board declared an increased interim dividend for
the year, and recommended an increased final dividend for 2023.
§
The Board considered and approved the proposed resolutions to be put to shareholders at the 2023
AGM, which included the distribution of a final dividend for the year ended 31 December 2022 and
an updated Directors’ Remuneration Policy. Each of the proposed resolutions was subsequently
approved by shareholders at the meeting.
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Stakeholder engagement
During the year, the Board undertook a review of RELX’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
How we engage, outcomes and impact
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 a 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.
During the year:
§
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 2024 to 2026, which leaves our strategic focus, and our priorities for uses of cash
generated by RELX, broadly unchanged.
§
In response to interest from the investment community, RELX presented a demonstration of
its new Legal AI tool, Lexis+ AI, at an event attended by over 200 investors and analysts. The
presentation demonstrated the strategic position of our Legal business in the AI space and the
Board were provided with the feedback from attendees. Further information about Lexis+ AI is on
page 10.
§
Senior management led an investor seminar on our Risk business, with a focus on Insurance
Services. The presentation demonstrated the continued evolution of Risk, covering its markets,
customers, growth trajectory and technological capabilities, and included an open Q&A session.
The presentation is available at
www.relx.com/investors
§
The Company’s AGM in 2023 was a valuable opportunity for Directors to interact directly with
shareholders, to hear their views and answer questions about the business of the meeting.
§
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, and subsequently approved the quantum of the company’s share buyback
programme for 2023 and declared and recommended an interim and final dividend payment during
the year.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
120
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Employees
Why effective engagement
is important
How we engage, outcomes and impact
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.
We strive to foster an
environment in which our
employees feel a strong sense of
engagement with our business
and share a passion for making
a positive impact on society
through our unique
contributions. 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 (see page 101).
Employee engagement routinely takes place at business level and matters of concern are cascaded
up through our management framework. The Board receives regular management reports
which cover employee engagement, turnover and demographic analysis, updates on workplace
initiatives, progress towards I&D objectives, and concerns raised through our Ethics Code
reporting channels. The Board takes time to review employee engagement and workforce data
and takes this into consideration during wider discussions.
RELX has a dedicated intranet for employees which is kept updated with financial and performance
information, news of business developments and workforce initiatives and events (including in I&D)
and other important messages from senior management.
The Board has appointed Marike van Lier Lels as our 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 insight into the culture across RELX,
how our working practices and initiatives have been received and highlights any issues that need
to be addressed.
During the year:
§
Ms van Lier Lels, met with 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. These included positive feedback about RELX’s mentorship programmes, which are
monitored by management to track their impact on employee performance, retention and net
promoter scores. Further matters included the impact of ongoing hybrid working arrangements
in different business areas, and RELX’s training programmes and opportunities.
§
In 2023 we undertook our annual Pulse employee opinion survey. An analysis of the results of
the survey was presented to the Board in December and confirmed positive trends across all
business areas in the key metrics of engagement, satisfaction, commitment and employee net
promoter scores.
§
Board reports from the Chief Human Resources Officer highlighted the steps taken to identify,
support and develop current and future leaders across the business through Organisational
Talent Review and Management Development Planning processes. This focus has seen
increased gender diversity across internal succession pipelines, complemented by targeted
senior level recruitment.
§
The Board endorsed the development of a group-wide leadership framework for management
and executive leaders, to unify and simplify existing frameworks and ensure leaders across our
business areas continue to develop the skills and behaviours that drive our strategy, role model
our values and champion our culture.
§
The Board reviewed the Board and RELX Inclusion and Diversity Policies and determined that
these continue to be fit for purpose and effective.
§
The Board received a presentation from the Head of Corporate Communications on focus areas
for 2023, which included consideration of the most effective methods to deliver key information
about the business to the wider workforce, and for continuing to develop understanding of our
purpose, strategy and values. Employee understanding and engagement with our purpose and
strategy is monitored through our employee opinion survey scores over time.
§
Employee involvement in the company’s performance is encouraged through RELX’s employee
share schemes, which were refreshed and put to shareholders for approval at the 2023 AGM.
The RELX PLC Employee Share Purchase Plan was also introduced in the US to enable a greater
proportion of RELX employees the opportunity to purchase ADRs at a discounted price.
121
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Annual Report 2023 | Corporate Governance Review
Customers
Why effective engagement
is important
How we engage, outcomes and impact
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 2023, 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.
During the year:
§
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. RELX made several acquisitions during
the year that complement its existing product range and enhance value for our customers.
More information about our acquisitions during the year can be found on pages 9, 15, 27 and 32.
§
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.
Suppliers
Why effective engagement
is important
How we engage, outcomes and impact
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 license 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.
During the year:
§
Outcomes of ongoing business engagement with our content suppliers, including Net Promoter
Scores and the outcomes of business reviews, informed the Board’s discussions during its
consideration of RELX’s three-year strategy plan for 2023 to 2026, 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 RELX.
The Board continues to support our Socially Responsible Supplier (SRS) programme (further
details are on pages 69 to 72). 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 shareholder information
Financial review
Corporate Responsibility
Overview
122
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Annual Report 2023 | Governance
Community
Why effective engagement
is important
How we engage, outcomes and impact
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, 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 65 to 68.
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.
Relevant ESG considerations are incorporated into business review and strategy papers
reviewed by the Board.
During the year:
§
The Board considered RELX’s environmental performance and supported ongoing initiatives
for minimising our environmental impact, and continued to endorse our commitment to our
reaching net zero by 2040. More information is in our Corporate Responsibility Report on
pages 38 to 90.
§
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 our charitable programmes and future plans.
§
The Board continued to endorse RELX’s volunteering policy through which RELX employees
receive two days paid leave each year to undertake community volunteering work.
§
The Board supported the business areas utilising their unique product offerings to support
causes in their communities.
External appointments and Non-Executive Director independence
The Board has in place formal procedures to evaluate and review
the external commitments of Directors, each of whom are
required to obtain the Board’s approval prior to accepting new
significant external appointments. During the year, the Board
reviewed proposed external appointments of Suzanne Wood and
Robert MacLeod. It was concluded that these appointments would
not impact either Director’s ability to effectively perform their
respective roles on the Board of RELX PLC, and accordingly
the Board gave its approval in each instance.
When Directors take up new external appointments, any related
commercial relationships with RELX are reviewed, and any
potential conflicts of interest are dealt with following formal
procedures. In accordance with the Company’s Articles of
Association, Directors who are not conflicted may authorise,
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.
Supported by the Nominations Committee, the Board monitors
the independence of the Non-Executive Directors in line with
the relevant provisions of the UK Corporate Governance Code.
An annual evaluation, led by the Nominations Committee,
considered whether length of service or any other factor has or
may impact the ability of any Non-Executive Director to remain
independent in character and judgement in the furtherance of his
or her duties to the Company. The Board determined that each of
the Non-Executive Directors is considered to be independent of
management and free from any business or other relationship
which could materially interfere with their ability to exercise
independent judgement (with the exception of the Chair, whose
independence was not assessed, but who was deemed to be
independent upon appointment).
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Annual Report 2023 | Corporate Governance Review
Board evaluation
The Directors consider the evaluation of the Board and its
Committees 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 each individual Director.
Actions from the 2022 Board evaluation
In the 2022 Board evaluation, the Board agreed that it should
continue to focus on the competitor landscape and on the key risks
facing RELX, including cyber and data security. It was also noted
that 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. As part
of the 2023 evaluation, the Board members confirmed that these
actions had been appropriately addressed during 2023, through
regular reporting, presentations and deep dives provided by
senior management.
2023 Evaluation process
In 2023, the Board evaluation process was externally facilitated
by an independent consultancy, Manchester Square Partners,
and was supported by the Company Secretary. Manchester
Square Partners has no other connections with the Company
and the consultants were given full access to the Board and
Committee papers for the relevant period.
The evaluation consisted of a questionnaire completed by all
Directors, one-to-one interviews with each member of the Board,
a presentation of the final report, and facilitation of a discussion
around key findings and action points to take forward.
The Directors were asked to provide their 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
Chair’s Assessment
The Directors reported that the transition to a new Chair had been
very smooth and successful and reported highly positive Board
dynamics under Mr Walker’s leadership. The Directors felt that
Mr Walker effectively enabled and encouraged challenge and
contributions from the Non-Executive Directors. His demonstrably
strong interest in the business areas and the amount of time he
invested in preparing for meetings of the Board and in building
relationships with senior management was highly regarded by
the others on the Board.
Individual director performance
The evaluation provided opportunity for reflection on personal
development and individual Director performance. The findings
of this evaluation highlighted that each Director continues to
contribute positively and effectively both within and outside
Board and Committee meetings and constructively challenges
management on key issues. Through the evaluation process it
was also confirmed that each Non-Executive Director remains
independent and has sufficient time to devote to their respective
roles on the RELX Board.
Conclusions from the 2023 Board evaluation
In 2023, the externally facilitated Board evaluation concluded that
the Board continues to promote good governance and oversight
and provides important challenge, insight and support to
management, especially around key decisions. Each of the
Committees is considered to be well-chaired and to be operating
effectively. Board members who are not a member of a particular
Committee reported that they feel appropriately informed of
its activities.
The overall culture and dynamics of the Board are considered
to be very positive. There is a high degree of comfort in the
decision-making process, supported by well-prepared papers,
that takes into account the questions and input of the Non-
Executive Directors. Board and Committee meetings are
well-planned, efficiently run and effectively cover the critical
issues. The RELX strategy session in September was well
received and the Board’s annual agenda is thought to have an
appropriate balance of business and governance focus. Business
and strategy materials from management are of a high quality
and provide a sound basis for broad ranging debate and input
from Board members. The Directors thought that the depth and
breadth of capability and the diversity of thought and experience
on the Board contributed to highly effective meetings.
The key findings of the Board evaluation confirmed that the
Board and its Committees continue to function effectively and
collaboratively with an appropriate level of engagement with
management. While there were no specific areas identified where
significant improvement is required, the Board recognised the
importance of continued focus on cyber security and its own
role in the event of a significant incident. It considered that
opportunities for optimising business growth should continue
to feature in its future strategy discussions with management.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
124
RELX
Annual Report 2023 | Governance
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 for
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 2023, and up to the date of approval
of the 2023 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 98 to 103 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 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 158 to 165.
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 enable the assessment of the effectiveness of internal
control systems.
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 RELX’s
risk management and internal control procedures and reports to
the Board, as appropriate. The Audit Committee receives 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.
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 2023 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 2023 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 2023 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 2023
Annual Report on Form 20-F.
125
This report has been prepared by the Nominations Committee
and has been approved by the Board.
Membership
The Nominations Committee comprises three independent
Non-Executive Directors (NEDs) and the Chair of the Board.
The Directors who served on the Committee during the
year were:
§
Paul Walker (Chair of the Committee)
§
Wolfhart Hauser (retired 20 April 2023)
§
Robert MacLeod
§
Marike van Lier Lels
§
Suzanne Wood (appointed 20 April 2023)
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 purpose of the Committee is to assist the Board
by leading the process for appointments to Board roles and
overseeing a diverse pipeline for succession. The Committee’s
main responsibilities are:
§
Reviewing the size and composition of the Board, ensuring
that it comprises the appropriate balance of skills,
experience, knowledge and diversity
§
Reviewing the external commitments of the Directors to
ensure that they each have sufficient time to effectively
discharge their duties to RELX
§
Ensuring plans are in place for orderly Board and senior
management succession and to oversee a diverse pipeline
for such succession
§
Overseeing the recruitment of new Directors and
recommending candidates to the Board
§
To make recommendations to the Board in relation to the
re-appointment of any NED 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 RELX 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 four times in 2023. The activities of the
Committee during the year included:
§
Recommending to the Board the re-appointment of June Felix,
Paul Walker and Suzanne Wood at the conclusion of their
respective specified terms of office
§
Reviewing the size, composition and balance of the Board and
the membership of its Committees following the retirement
of Dr Wolfhart Hauser as a NED at the conclusion of the
Company’s 2023 AGM, and recommending a successor for
each of Dr Hauser’s roles as Senior Independent Director
and Chair of the Remuneration Committee
§
Succession planning for a new NED
§
Ongoing succession planning for Board and senior
management roles
§
Monitoring the 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
determining that they continue to be fit for purpose
and effective
§
Recommending to the Board the inclusion of this report
in the 2023 Annual Report
Report of the Nominations Committee
Board composition as at 31 December 2023
Balance of Executive/Non-Executive Directors
Non-Executive: 7
Executive: 2
Non-Executive Chair: 1
Tenure of Non-Executive Directors (including Chair)
6–9 years: 3
0–3 years: 2
3–6 years: 3
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023
126
RELX
Annual Report 2023 | Governance
Board and Committee composition
The Nominations Committee is responsible for keeping the
size and composition of the Board and the membership of its
Committees under review, to ensure that each has an appropriate
balance of skills, knowledge and experience to effectively
discharge its respective duties. The Committee considers the
competencies required to support the Company’s strategy,
purpose, culture and values, both now and in the future and
oversees a diverse pipeline for senior leadership succession.
The Board collectively has a diverse range of relevant skills
and experience which includes:
§
Strategy and governance
§
Expertise in finance and technology sectors
§
Operational experience in RELX’s product markets
§
Executive and Non-executive Board and leadership experience
in large, international listed groups
§
Audit, risk and regulatory expertise
§
Workforce relations management and engagement
§
Executive remuneration
Biographical information for each of the Directors is on pages 108
to 109. Further information about the skills and experience of the
Directors standing for election and re-election at the 2024 AGM
is in the Notice of Meeting available at
www.relx.com
.
Inclusion and Diversity (I&D)
RELX’s Board I&D Policy aims to promote a working environment
that is respectful and inclusive of individuals and their
contributions, regardless of gender, ethnic origin, disability,
nationality, age, sexual orientation or any other individual
characteristic. The Board recognises the benefits that diversity
brings to the effectiveness of Board and Committee discussions
and the quality of decision-making, through the incorporation
of different perspectives and ideas. Diversity is taken into
consideration when evaluating the skills, knowledge and
experience desirable to fill Board vacancies. The Nominations
Committee monitors progress against the Board’s diversity
objectives in accordance with the Board I&D Policy and keeps
under review the composition of the Board and membership of its
Committees, with a view to ensuring that each has the appropriate
balance of skills and expertise and is supported by a strong and
diverse pipeline for succession.
The Committee oversees the Director recruitment process on
behalf of the Board with the objective that all aspects of diversity,
including but not limited to, gender and ethnicity, are carefully
considered when conducting a search for a new Board
appointment, together with the knowledge, experience, skills
and background of each individual candidate. Our external
search agencies are challenged to present a diverse and
gender-balanced list of suitably qualified candidates.
In accordance with the recommendations of the FCA set out in
LR 9.8.6(R)(9), as at 31 December 2023:
§
the Board comprises 40% women
§
the role of Senior Independent Director is held by a woman
§
at least one Board member is from a minority ethnic background
The Nominations Committee reviews and recommends to the
Board both the Board and Group I&D Policies. The Group I&D
Policy is aligned with the Board I&D Policy and aims to promote
a positive working environment that is inclusive, fair and equitable.
It prohibits discrimination and requires that RELX recruits, trains,
develops, promotes, and provides 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 characteristic protected by law.
RELX relies on the contributions of individuals with a collectively
broad range of experience, skills and ideas to consistently deliver
on its strategic priorities and provide real innovation for customers
around the world. The Company is committed to an ongoing
review of policies and practices in the areas of recruitment,
talent development, promotion and reward to ensure that
opportunities across our business areas are fair and equitable.
Nationalities on the Board
British, American,
Irish: 1
Swedish: 1
Dutch: 1
American: 3
British: 4
Board and Executive Management diversity characteristics as at 31 December 2023
Number of
Board members
Percentage of the
Board
No. of senior
positions on the Board
(CEO, CFO, SID, Chair)
No. in executive
management
Percentage of
executive
management
Ethnic background
White
8
80%
3
7
70%
Asian
1
10%
–
1
10%
Black
–
–
–
–
–
Mixed/multiple ethnicity
–
–
–
–
–
Other
–
–
–
1
10%
Not specified/prefer not to say
1
10%
1
1
10%
Gender identity or sex
Men
6
60%
3
7
70%
Women
4
40%
1
3
30%
Not specified/prefer not to say
–
–
–
–
–
127
During the year, RELX has continued to implement its inclusion
strategy to advance progress towards its 2020 to 2025 inclusion
goals. This covers all aspects of diversity and aims to translate
the Group I&D Policy into tangible and measurable actions.
Workforce policies and practices are regularly reviewed to ensure
RELX is delivering on its inclusion, equity and diversity goals and
effectively monitoring available diversity data.
Across our business areas, we are committed to providing regular
best practice and awareness training in areas such as inclusive
leadership and unconscious bias and we promote and encourage
inclusive networking groups and sponsorship and mentoring
programmes. Details of the strategy and progress towards
fulfilling our I&D initiatives is set out in our Corporate
Responsibility Report on pages 54 to 59.
Data for the diversity characteristics table on page 126 was drawn
from HR information where consents are in place to use the data
on an anonymised basis and through a survey with categories
aligned to those set out in the LRs.
Board and Committee succession
When reviewing the composition of the Board and its Committees,
the Nominations Committee considers, among other things,
the length of tenure of each Director and the need for, and benefits
of, membership being regularly refreshed. The Committee is
cognisant of the skills and experience required for effective
leadership and oversight of RELX’s strategy for success in the
long term, and of the requirements of our Board I&D Policy and 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.
Board succession planning and refreshment was a regular
agenda item at the Committee’s meetings during 2023.
Dr Wolfhart Hauser retired at the Company’s annual general
meeting in 2023 at which time he also stepped down as Senior
Independent Director (SID), Chair of the Remuneration Committee
and member of the Nominations Committee. The Committee
recommended to the Board that Suzanne Wood be appointed to
the role of SID and to membership of the Nominations Committee,
and that Robert MacLeod succeed Dr Hauser as Chair of the
Remuneration Committee. The Committee’s recommendations
were based on its evaluation of the specific skills and experience
required for each role, together with the capacity of individual
directors to take up additional duties, and with regard to our
diversity objectives.
The Committee also recommended the appointment of two new
NEDs during the year: Alistair Cox, who joined the Board in
April 2023, and Bianca Tetteroo who will join the Board in 2024,
subject to her election by shareholders at the Company’s AGM,
as announced on 8 December 2023. Marike van Lier Lels will
retire at the Company’s AGM in 2024, having served on the Board
since 2015.
Director appointment process
A rigorous search and appointment process was followed for
each new NED, starting with the preparation of a search
specification, based on the Committee’s assessment of the skills
and composition of the Board and the capabilities and experience
required going forward. Russell Reynolds Associates was
engaged to support the search and the Board confirms that
none of the Directors have any connection with executive search
firms utilised by the Company. A short-list of potentially suitable
individuals was considered in detail by the Committee and
preferred candidates were invited to meet with Board members,
including the Chair and the Chief Executive Officer, together with
the Chief Legal Officer and Company Secretary. Following
feedback from these sessions, the Nominations Committee made
its recommendations to the Board. The Board then had a further
opportunity to review and discuss the recommendations, and
subsequently approved the appointments of Alistair Cox and
Bianca Tetteroo.
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. As a
general rule, letters of appointment for NEDs 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 NEDs is one month. RELX’s Non-Executive
Letter of Appointment sets out the time commitment required by
the Company from its Non-Executive Directors.
Executive and management succession
The Board is committed to recognising and nurturing talent
across RELX 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 regarding succession plans for senior management roles.
This included broad views on potential timings and implications for
diversity. 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.
Conflicts of interest
The Directors have a statutory duty to avoid situations in which
they have, or could have, a direct or indirect interest that conflicts
with the interests of the Company and, if potential for such a
conflict arises, must make such situations known to the Board.
In accordance with its terms of reference, the Nominations
Committee considers the circumstances of any such actual or
potential conflicts of interest and makes a recommendation to the
Board as to whether to authorise the conflict, as permitted under
the Company’s Articles. The Committee may recommend that
the Board imposes certain limits or conditions in respect of the
conflict. There is a procedure in place for Directors to disclose any
potential conflict to the Board and each Director is required to
review and confirm their actual and potential conflicts annually.
During the year, the Committee conducted a formal review of the
conflict of interest authorisations granted by the Board to each
individual Director.
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 Board and Committee
evaluation process are on page 123.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023 | Report of the Nominations Committee
128
RELX
Annual Report 2023 | Governance
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.
I am pleased to present the Remuneration Report for the year ended 31 December 2023. This is my first report as Chair of the
Committee, having succeeded Wolfhart Hauser who retired from the Board in April 2023. I would like to thank Wolfhart for his valuable
contribution and leadership of the Committee over the years.
As you will have seen earlier in the annual report, the Company delivered strong revenue and profit growth in 2023, driven by the ongoing
shift in business mix towards higher growth information based analytics and decision tools that deliver enhanced value to our
customers across market segments. We have been able to develop and deploy these tools across the Company for well over a decade
and we are confident that our ability to leverage artificial intelligence and other technologies, as they evolve, will continue to be an
important driver of customer value and growth in our business for many years to come.
Underlying revenue growth was 8%, underlying adjusted operating profit growth was 13% and at constant currency, adjusted EPS
growth was 11%. We are proposing an increase in the full-year dividend of 8%. Our Total Shareholder Return outperformed the FTSE 100
over the last three, five and ten year periods as shown on page 138.
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 sustainability 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 was again recognised
by external rating agencies: RELX achieved a AAA ESG rating with MSCI for an eighth consecutive year, was ranked second in our sector
by Sustainalytics, maintained fifth place in the Responsibility 100 Index and was a constituent of the Bloomberg Gender Equality Index
for the fifth consecutive year. More information can be found on pages 38 to 90.
Remuneration policy and implementation
An updated Remuneration Policy was approved by shareholders at the 20 April 2023 Annual General Meeting (AGM) with 95.87% in
favour. I would like to express again my gratitude for the feedback received during the shareholder engagement as we were developing
the policy and for the high level of support for the policy. The policy, which applies for three years from the conclusion of the 2023 AGM is
set out on pages 142 to 148 of this report. The first awards under the policy will be granted in the first quarter of 2024. The 2023 awards
are subject to the policy approved by shareholders at the 2020 AGM and can be found on pages 90 to 96 of the 2019 Annual Report and
Financial Statements, available on relx.com.
Shareholders will be invited to vote (by way of an advisory vote) on the 2023 Annual Remuneration Report at the 2024 AGM.
Our strategic direction remains unchanged:
to develop increasingly sophisticated information-based analytics and decision tools that
deliver enhanced value to professional and business customers across market segments.
We are primarily focused on organic growth,
supported by targeted acquisitions. This should lead to a higher growth profile and a positive impact on society and, when combined with
our strategy of driving continuous process innovation to manage cost growth below revenue growth, result in strong earnings growth
and improving returns.
The 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 performance measures 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.
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Annual Report 2023 | Directors’ Remuneration Report
2023 outcomes
RELX delivered strong organic revenue and adjusted operating profit growth rates. These results drove an AIP payout of 87% of the
maximum. Details of our targets and achievements for the year are shown on pages 131 and 132.
Financial and share price performance was very strong over the past three years, with TSR outperforming our UK, US and European
peer groups. As a result, the LTIP payout is 100% of the maximum. Details of our targets and achievements are shown on page 133.
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
The Board reviews information on employee metrics and updates on employee related matters including inclusion and diversity, as
well as outcomes of 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
2023 and reported back to the Board. Further information on the workforce engagement process is provided in the Governance section
on page 120. The Committee also reviews annual salary increase guidelines globally.
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.
Implementation of the Remuneration Policy in 2024
The Committee has approved 2024 salary increases for the Executive Directors of 2.5%.
As highlighted in the 2022 report and in accordance with the Remuneration Policy approved by shareholders at the 2023 AGM, the level
of vesting for threshold performance in the LTIP will reduce from 25% of the maximum opportunity to 20% and incentives will be subject
to broader malus and clawback provisions.
The Committee also approved a new US clawback policy in compliance with new US listing standards adopted in June 2023, providing for
the recovery of erroneously awarded incentive-based compensation by current or former executive officers, in the event the company is
required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under the
securities laws. Our malus and clawback policy includes broader triggers than the US clawback requirements (see page 144).
Further details regarding the implementation of the policy in 2024 can be found on page 140.
Robert MacLeod
Chair, Remuneration Committee
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
130
RELX
Annual Report 2023 | 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
2023
1,379
82
1,198
1,198
9,629
152
13,639
1,613
12,026
2022
1,345
82
1,023
1,023
4,983
141
8,597
1,568
7,029
Nick Luff
2023
812
15
706
706
4,725
89
7,052
916
6,137
2022
792
15
602
602
2,445
127
4,584
933
3,650
(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 2023 figures reflect the vesting of the 2021–2023 cycle of the LTIP. As the LTIP vests after the approval date of this Report, the
average share price for the last quarter of 2023 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 2022 disclosed in last year’s Report have been restated to reflect the actual amount of the 2020-2022
cycle of the LTIP vested and the actual share price, which increased the 2022 disclosed figure by £383k for the CEO and by £188k for
the CFO. The vesting percentage was determined on 17 February 2023 and was in line with the one disclosed on page 127 of the 2022
Remuneration Report.
For Erik Engstrom, the amount that directly reflects share price appreciation is £0.8m for 2022 and £3.4m for 2023. For Nick Luff,
these numbers are £0.4m for 2022 and £1.7m for 2023.
The awards are due to vest in February 2024 and the 2023 figures will be restated in next year’s report to reflect actual values
at vesting.
(4)
Erik Engstrom and Nick Luff received cash in lieu of pension of 11% of base salary in 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.
131
RELX
Annual Report 2023 | Directors’ Remuneration Report
2023 Annual Incentive
Set out below is a summary of performance against each financial and non-financial measure and the resulting payout for 2023:
Performance measure
Relative
weighting
% at target
Financial targets
(1)
Achievement
Achievement
% vs target
Payout %
vs target
Payout %
of max
(2)
Threshold
Target
Maximum
Revenue
30.0%
8,509
9,052
9,505
9,161
101.2%
112.0%
74.7%
Adjusted net profit after tax
30.0%
1,952
2,077
2,181
2,156
103.8%
138.0%
92.0%
Cash flow
30.0%
2,659
2,829
2,970
2,962
104.7%
147.0%
98.0%
Financial measures
90.0%
132.3%
88.2 %
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%
128.8%
87.0%
(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 8%. Underlying adjusted operating profit growth was 13% and at constant currency, adjusted EPS growth was 11%.
Some figures add up to different amounts than the totals due to rounding.
50% of the AIP will be paid in cash in Q1 2024 and the remainder is paid in Deferred Shares which will be released in Q1 2027. The release
of Deferred Shares is not subject to any further performance conditions but is subject to malus and clawback.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
132
RELX
Annual Report 2023 | Governance
Non-financial measures
We have set sustainability objectives which reflect our focus on our unique contributions to society, as well as sustainability
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.
We have chosen to include sustainability metrics in the AIP so that we can update these metrics depending on current situation.
Purchase of renewable electricity is no longer a specific measure this year as the target has been met. We will however continue
to track this metric and may consider including again if relevant.
We have replaced the previous metric regarding the number of strategic partners to the RELX SDG Resource centre with a metric
related to the number of users of the SDG Resource centre. The Universal access to information measure therefore reflects not only
the Company’s efforts to provide access to information by increasing content on the Resource centre, but also measures the use of
the centre.
Our environmental targets align with our 2025 targets. More information can be found on pages 73 to 80.
Non-financial measures represent 10% of the AIP. Of this component, achievements and payouts were as follows:
Payout for carbon reduction was capped at 90% of target in the year in recognition of the changes in office work patterns and business
travel since the target was set.
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 40% against a 2015 baseline.
§
Reduce energy and fuel
consumption by 27% against a
2015 baseline.
§
Carbon emissions reduced by 61%.
§
Energy and fuel consumption
reduced by 49%.
90%
60.0%
Paper usage and
waste
25%
§
Decrease total waste sent to landfill
from reporting locations by 35%
against a 2015 baseline.
§
99% 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 96%.
§
100% of RELX production papers
graded in PREPS, rated as ‘known and
responsible sources’ or certified FSC
or PEFC.
100%
66.7%
Socially responsible
suppliers
25%
§
Increase the number of suppliers
as Code signatories to 4,650.
§
Increase the number of independent
external audits of suppliers to 120.
§
Suppliers Code signatories increased
to 5,322.
§
125 audits of suppliers completed.
100%
66.7%
Universal access to
information
25%
§
Increase the content on the free RELX
SDG Resource Centre by 500 new
content items.
§
Increase the number of users of SDG
Resource centre to 175,000.
§
Content on the free RELX SDG
Resource Centres increased by 822.
§
Number of users of SDG Resource
centre increased to 220,815.
100%
66.7%
Total
100%
97.5%
65.0%
133
RELX
Annual Report 2023 | Directors’ Remuneration Report
2021
–
2023 LTIP
Set out below is a summary of performance against each measure of the LTIP cycle 1 January 2021–31 December 2023.
The targets remained unchanged from when these were set at the beginning of 2021. As noted in the Chair letter, financial performance
was very strong and significant value was generated for shareholders through share price appreciation and dividends over the
performance period. RELX’s TSR outperformed the UK, US and European peer groups over the period. The payout is 100% 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: upper quartile;
US group: upper quartile
100%
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%
Above 11% p.a.
100%
ROIC in the third year of the
performance period
(2)
40%
below 11.0%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14.0% and above
0%
25%
50%
65%
75%
85%
92.5%
100%
Above 14.0%
100%
Total vesting percentage:
100%
(1)
Calculated on a straight-line basis for performance between the points.
(2)
Growth in adjusted EPS at constant currency and ROIC are calculated as set out in the Chief Financial Officer’s report and note 10 to the consolidated financial statements,
with adjustments made to remove the effect on ROIC of changes in exchange rates, pension deficits and accounting standards 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
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
134
RELX
Annual Report 2023 | Governance
Single Total Figure of Remuneration – Non-Executive Directors (audited)
Total fee
Benefits
(1)
Total
2022
2023
2022
2023
2022
2023
Paul Walker
£650,000
£650,000
£862
£879
£650,862
£650,879
Alistair Cox
(2)
N/A
£88,776
N/A
£88,776
June Felix
£123,667
£125,000
£123,667
£125,000
Wolfhart Hauser
(3)
£164,500
£48,615
£164,500
£48,615
Charlotte Hogg
£112,000
£112,000
£112,000
£112,000
Marike van Lier Lels
£122,000
£122,000
£840
£840
£122,840
£122,840
Robert MacLeod
(4)
£122,000
£130,670
£122,000
£130,670
Andrew Sukawaty
£112,000
£121,000
£112,000
£121,000
Suzanne Wood
(5)
£124,500
£165,744
£124,500
£165,744
(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 2023 was £840 (unchanged from 2022) 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 to the Board at the AGM on 20 April 2023.
(3)
Retired from the Board at the AGM on 20 April 2023.
(4)
Succeeded Dr Hauser as Chair of the Remuneration Committee from the AGM on 20 April 2023, having been a member of the Committee until then.
(5)
Succeeded Dr Hauser as Senior Independent Director and became a member of the Nomination Committee from the AGM on 20 April 2023.
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 2023:
Annual fee 2023
Annual fee 2024
Chair
£650,000
£725,000
Non-Executive Directors
£90,000
£97,500
Senior Independent Director
£30,000
£40,000
Chair of:
– Audit Committee
£30,000
£40,000
– Remuneration Committee
£30,000
£40,000
Workforce engagement fee
£17,500
£25,000
Committee membership fee:
– Audit Committee
£17,500
£25,000
– Remuneration Committee
£17,500
£25,000
– Nominations Committee
£10,000
£15,000
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 2023.
Fees may be reviewed annually, although in practice they have changed on a less frequent basis. Before the changes which took effect
on 1 January 2024, the Chair fee was last changed in 2018 and the NED base fee was last changed in 2020. The new fees represent a per
annum increase slightly below the general UK employee salary increase guidelines of 2.5%. Other NED fees were last amended in 2016
or 2018.
135
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Annual Report 2023 | 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 2023 and the date of this
Report.
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 2023, the Executive Directors’ shareholdings were as follows:
Shareholding requirement
(% of 2023 annual base salary)
Shareholding as at
31 December 2023 (% of 2023
annual base salary)
(1)
Erik Engstrom
450%
2794%
Nick Luff
300%
1217%
(1)
Includes AIP deferred shares which are within their three-year deferral period, on a notional net (after tax) basis (63,845 for Erik Engstrom and 37,596 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 2023
31 December 2023
Erik Engstrom
1,172,929
(1)
1,174,668
Nick Luff
279,235
(1)
280,365
Paul Walker
16,000
16,000
Alistair Cox
(2)
N/A
1,540
June Felix
6,100
6,100
Wolfhart Hauser
(3)
14,633
N/A
Charlotte Hogg
4,750
4,750
Marike van Lier Lels
11,718
11,718
Robert MacLeod
6,950
6,950
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
2023 would be 1,238,513 for Erik Engstrom and 317,961 for Nick Luff.
(2)
Appointed to the Board at the AGM on 20 April 2023.
(3)
Retired from the Board at the AGM on 20 April 2023.
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)
Percentage of maximum vesting
for
threshold performance
End of performance period
Erik Engstrom
450% of salary
£6,051,996
If each measure pays out at threshold,
the overall payout is 25%
31 December 2025
Nick Luff
375% of salary
£2,969,841
AIP – DEFERRED SHARES
Erik Engstrom
1/2 of 2022 AIP payout
£1,023,066
N/A. The release of AIP deferred shares in Q1 2026 is not subject to any
further performance conditions, but is subject to malus and clawback.
Nick Luff
1/2 of 2022 AIP payout
£602,441
(1)
The face value of the LTIP awards and AIP deferred shares granted in February 2023 was calculated using the middle market quotation of a PLC ordinary share (£24.92).
This share price was used to determine the number of awards granted.
The LTIP awards granted in 2023 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 134 of the 2022 Remuneration Report.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
136
RELX
Annual Report 2023 | Governance
Multi-year incentive interests (audited)
The tables below and on the next page set out unvested LTIP share awards, AIP deferred shares and vested but unexercised options held
by the Executive Directors, including details of awards granted, vested and options exercised during the year.
All outstanding LTIP share awards are subject to performance conditions.
Between 31 December 2023 and the date of this Report, there have been no changes in the share awards or options held by the
Executive Directors.
Erik Engstrom
LTIP SHARES
Year of
grant
No. of
unvested
shares
held on
1 Jan 2023
No. of
shares
awarded
during
2023
Market
price per
share at
award
No. of
shares
vested
during
2023
Market
price per
share at
vesting
No. of
unvested
shares
held on
31 Dec 2023
End of
performance
period
Date of
vesting
2023
242,857
£24.920
242,857
Dec 2025
Feb 2026
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
189,001
£24.92
Total
839,685
242,857
189,001
811,378
DEFERRED
SHARES
(1)
Year of
grant
No. of
shares
held on
1 Jan 2023
No. of
shares
awarded
during
2023
Market
price per
share at
award
No. of
shares
released
during
2023
Market
price per
share at
release
No. of
shares
held on
31 Dec 2023
Date of
release
2023
41,054
£24.920
41,054
Feb 2026
2022
49,912
£22.725
49,912
Feb 2025
2021
29,498
£18.660
29,498
Feb 2024
2020
30,777
£20.725
30,777
£24.92
Total
110,187
41,054
30,777
120,464
(1)
Part of the AIP is paid in deferred shares released after three years. The amount at grant was already included in the AIP in the single figure table of the relevant year.
OPTIONS
Year of
grant
No. of
options
held on
1 Jan
2023
No. of
options
granted
during
2023
Option
price on
date of
grant
No. of
options
exercised
during
2023
Market
price per
share at
exercise
No. of
options
held on
31 Dec
2023
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
£24.86
158,166
€10.286
158,166
€ 27.95
Total
923,513
619,743
137
RELX
Annual Report 2023 | Directors’ Remuneration Report
Nick Luff
LTIP SHARES
Year of
grant
No. of
unvested
shares
held on
1 Jan 2023
No. of
shares
awarded
during
2023
Market
price per
share at
award
No. of
shares
vested
during
2023
Market
price per
share at
vesting
No. of
unvested
shares
held on
31 Dec 2023
End of
performance
period
Date of
vesting
2023
119,175
£24.920
119,175
Dec 2025
Feb 2026
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
92,747
£24.92
Total
412,052
119,175
92,747
398,161
DEFERRED
SHARES
(1)
Year of
grant
No. of
shares
held on
1 Jan 2023
No. of
shares
awarded
during
2023
Market
price per
share at
award
No. of
shares
released
during
2023
Market
price per
share at
release
No. of
shares
held on
31 Dec 2023
Date of
release
2023
24,175
£24.920
24,175
Feb 2026
2022
29,391
£22.725
29,391
Feb 2025
2021
17,370
£18.660
17,370
Feb 2024
2020
18,079
£20.725
18,079
£24.92
Total
64,840
24,175
18,079
70,936
(1)
Part of the AIP is paid in deferred shares released after three years. The amount at grant was already included in the AIP in the single figure table of the relevant year.
OPTIONS
Year of
grant
No. of
options
held on
1 Jan
2023
No. of
options
granted
during
2023
Option
price on
date of
grant
No. of
options
exercised
during
2023
Market
price per
share at
exercise
No. of
options
held on
31 Dec
2023
Options
exercisable
until
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
£24.71
72,228
€11.378
72,228
€ 27.84
Total
429,837
291,953
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
138
RELX
Annual Report 2023 | 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 2021–2023 cycle of the LTIP.
3 years
5 years
10 years
0
25
50
75
100
125
150
175
200
225
%
+30%
Dec-23
RELX vs
FTSE 100 – 3-YEAR TSR
Dec-20
Dec-22
Dec-21
RELX
FTSE 100
∆=
54%
+84%
%
Dec-18
Dec-19
Dec-20
Dec-23
Dec-22
Dec-21
0
25
50
75
100
125
150
175
200
225
RELX
FTSE 100
+33%
RELX vs
FTSE 100 – 5-YEAR TSR
∆=80%
+113%
RELX
FTSE 100
Dec-15
Dec-14
Dec-13
Dec-17
Dec-16
Dec-22
Dec-23
Dec-21
Dec-20
Dec-19
Dec-18
%
∆=280%
+67
%
0
100
200
300
400
500
RELX vs
FTSE 100 – 10-YEAR TSR
+347
%
CEO historical pay table
The table below shows the historical CEO pay over a ten-year period.
£’000
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Annualised base salary
1,104
1,131
1,160
1,189
1,218
1,249
1,280
1,312
1,345
1,379
Annual incentive payout
as a % of maximum
71%
70%
68%
69%
78%
77%
65%
86%
76%
87%
Multi-year incentive
vesting as a % of maximum
90%
(1)
97%
(1)
97%
(1)
92%
(1)
81%
(1)
81%
(1)
6%
71%
70%
100%
CEO total
17,447
(2)
11,416
(3)
11,399
(4)
8,748
(5)
9,141
(6)
9,346
(7)
3,980
(8)
9,560
(9)
8,597
(10)
13,639
(11)
(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.
(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.
(10)
The 2022 figure includes £0.8m attributed to share price appreciation. The LTIP value has been updated to reflect the share price on the vesting date.
(11)
The 2023 figure includes £3.4m attributed to share price appreciation.
139
RELX
Annual Report 2023 | 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 2022 to 2023 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. The salary increase for
the CEO of 2.5% was below the average increase for the broader
UK and US workforce, and significantly below the increases for
our lower paid employees.
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 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 2023 total
remuneration is the total single figure and salary as disclosed
on page 130. The P25, P50 and P75 were selected from the UK
employee population as at 1 October 2023. 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
2023
A
294:1
198:1
140:1
£46
£69
£97
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
2023
A
33:1
24:1
17:1
£42
£58
£80
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 2023 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.
2022
£m
2023
£m
% change
Employee costs
(1)
2,906
3,108
7%
Dividends
983
1,059
8%
Share repurchases
500
800
60%
(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 2023.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
140
RELX
Annual Report 2023 | Governance
Implementation of remuneration policy in 2024
Salary:
The Committee has awarded a salary increase of 2.5% to
each Executive Director, which means that, from 1 January 2024,
Erik Engstrom’s salary rose to £1,412,974 and Nick Luff’s salary
to £832,055.
Benefits:
The benefits provided to the Executive Directors are
unchanged for 2024.
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 2024 annual
financial targets and non-financial metrics will be disclosed in
the 2024 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 2023, we will be granting LTIP awards
with face values of 450% of salary to Erik Engstrom and 375%
to Nick Luff in 2024. 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. As highlighted
earlier, the level of vesting for threshold performance is reduced
to 20%.
The following metrics, weightings, targets and vesting scales
apply to LTIP awards granted in 2024 for the 2024–2026 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 2024–2026
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 and Dax40 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
20%
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
Average ROIC over
the three-year
performance period
0%
below 5% p.a.
below 11.0%
20%
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.
141
RELX
Annual Report 2023 | 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 118.
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 2023, Willis Towers Watson
received fees of £2,500 for advice given to the Committee,
charged on a time and expense basis.
Shareholder voting at 2023 Annual General Meeting
At the Annual General Meeting of RELX PLC on 20 April 2023, 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)
1,525,608,555
95.70%
68,478,146
4.30%
1,594,086,701
2,334,705
At the Annual General Meeting of RELX PLC on 20 April 2023, 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)
1,528,240,789
95.87%
65,765,933
4.13 %
1,594,006,722
2,416,183
Robert MacLeod
Chair, Remuneration Committee
14 February 2024
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
142
RELX
Annual Report 2023 | Governance
Set out in this section is the Company’s Remuneration Policy for Directors, as approved by shareholders at the 20 April 2023 Annual
General Meeting, and which is intended to apply for three years from the AGM and to awards granted from the first quarter of 2024.
The policy is as reported in the 2022 annual report.
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
143
RELX
Annual Report 2023 | 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
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
144
RELX
Annual Report 2023 | 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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(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.
CEO remuneration (£’000)
LTIP
AIP cash and deferred shares
Salary, benefits, pension
Minimum
In line with
expectations
Maximum
100%
25%
15%
28%
47%
26%
59%
1,612
6,575
10,572
CFO remuneration (£’000)
Minimum
In line with
expectations
Maximum
100%
26%
16%
31%
43%
29%
55%
916
3,534
5,583
LTIP
AIP cash and deferred shares
Salary, benefits, pension
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 shareholder information
Financial review
Corporate Responsibility
Overview
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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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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 shareholder information
Financial review
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Overview
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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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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
Responsibilities
The Committee comprises independent Non-Executive
Directors. The members of the Committee who served during
the year were:
The main role and responsibility of the Committee is
to assist the Board in fulfilling its oversight responsibilities
regarding:
Suzanne Wood (Chair)
Alistair Cox
June Felix
Charlotte Hogg
Andrew Sukawaty
Of the current members of the Committee, Suzanne Wood, a
Certified Public 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 108 and 109 for full profiles of Audit
Committee members.
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 2023 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 171, 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.
Note 14
190-192
Defined benefit pension obligation: The valuation of pension scheme liabilities is subject to judgement
and estimation. 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.
The Committee received and discussed regular reports from the Group Financial Controller on the
methodology and the basis of the assumptions used.
Note 6
177-181
The Committee discussed and challenged management’s assessment and was satisfied that all judgements
and estimations had been appropriately made and the financial statement disclosures were appropriate.
Report of the Audit Committee
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
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OTHER AREAS OF FOCUS
PAGE REFERENCE
IN ANNUAL REPORT
Other areas discussed by the Committee during the year were:
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.
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
182-185
190-192
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
190-192
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 issue of €750m euro-denominated term debt with a coupon of 3.75%
and maturity of eight years, extension of the maturity date on the $3bn revolving credit facility to April 2026
and redemption of a $200m bond and related swap maturing in August 2027. See below for further information
in respect of the Committee’s review of the going concern and viability assessments and related disclosure
194-198
The Committee was satisfied that all the above items had been appropriately considered and presented in the
Annual Report.
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
171-172
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
98-103
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
104-105
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
222-230
Reviewed the disclosures made in the Annual Report which incorporates the Corporate Responsibility Report.
This includes disclosures in respect of the Task Force on Climate-Related Financial Disclosures (TCFD)
recommendations
38-89
The Committee was satisfied that all relevant disclosures have been appropriately made.
FAIR, BALANCED AND UNDERSTANDABLE
The Committee considered whether the 2023 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.
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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,
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 2023 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, extension of maturity of the revolving credit
facility to April 2026, bond issue, early redemption of a bond,
credit ratings and ability to access debt capital markets,
changes to the regulatory reporting landscape including
the EU’s Corporate Sustainability Reporting Directive, 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
reviewed and approved the internal audit plan for 2024 and
monitored execution of the 2023 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
received an update from the Group Financial Controller in
respect of the ‘Audit Committees and the External Audit:
Minimum Standard’ published by the Financial Reporting
Council in May 2023. The RELX Audit Committee, as it
currently operates, already aligns with most of the
requirements and will continue to monitor future
developments in this area with respect to disclosures
to be included in future reports by the Audit Committee
on a ‘comply or explain basis’
participated in a series of ‘deep dive’ briefing sessions with
senior management from each of the Business Areas on a
range of topics
received comprehensive briefings from the external
auditor and RELX management on the UK Government’s
proposed measures on Corporate Reform and the Financial
Reporting Council’s proposed revisions to the UK Corporate
Governance Code and other regulatory matters
Committee meetings
The Committee met four times during 2023. 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
Internal Audit & Assurance (IAA), and audit partners from the
external auditors.
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 2023.
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.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
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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 reviewed and agreed the non-audit services
provided in 2023 together with the associated fees. The non-
audit services provided in 2023 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
2023 were £9.1m of which £0.7m 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 2023 was the third 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 2023. In accordance with
the terms of this Order, RELX anticipates that it will conduct
a competitive tender process during 2024 with respect to the
audit for the year ended 31 December 2026. The Committee
believes this approach is in the best interests of shareholders
and will provide sufficient time to allow for an orderly transition
in the event of a change in auditor.
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
2024 be proposed at the 2024 AGM which the Board has
accepted and endorsed.
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. The assessment identified areas of enhancement related
to strategy, planning, operational excellence, and talent.
All recommendations have been implemented.
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 2023 evaluation of the Board which confirmed that the
Committee continues to function effectively. Details of the
evaluation are set out on page 112.
Suzanne Wood
Chair of the Audit Committee
14 February 2024
153
RELX
Annual Report 2023
Directors’ Report
The Directors Report for the year ended 31 December 2023
has been prepared in accordance with the requirements of the
Companies Act 2006 (the Act), the UK Listing Rules (the LRs)
and Disclosure Guidance and Transparency Rules (the DTRs).
The Directors’ Report, together with the Strategic Report on
pages 2 to 105, 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.
For the purposes of the Directors’ Report, RELX PLC and its
subsidiaries, joint ventures and associates are together known
as ‘RELX’ or the ‘Group’. RELX PLC (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.
Other disclosures
Certain information required by the Act, LRs and DTRs is disclosed
elsewhere in this Annual Report and incorporated by reference
into this Director’s Report in Table 1.
Table 1
Disclosure
Page(s)
§
Names of Directors during the year
118
§
Corporate governance statement
112 to 124
§
Dividends
96 and 189
§
Financial instruments, financial risk
management and hedging arrangements
194 to 200
§
Future developments
2 to 37
§
Employee engagement
54 to 59 and 120
§
Engagement with customers, suppliers
and others
60 to 72, 119 to 122
§
Employment of disabled persons
57
§
Greenhouse gas emissions and
energy consumption
73 to 81 and 89
Articles of Association
Amendment
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.
Directors
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’ indemnities
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 2023
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 its Directors.
Shares
Share capital
The Company’s issued share capital comprises a single class
of ordinary shares of 14
51
⁄
116
p each 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 rank
pari passu.
The Company’s share capital as at the 31 December 2023 and
details of share capital movements during the year are set out in
Note 23 to the consolidated financial statements.
Rights and obligations
The rights of holders of ordinary shares in the Company, in
addition to those conferred under UK law, are set out in the
Company’s Articles which are available at
www.relx.com
.
In summary, holders of ordinary shares are entitled to: one vote
for each ordinary share held; the right to attend and speak at
general meetings of the Company or to appoint one or more
proxies or, if they are a corporation, a corporate representative;
and to exercise their voting rights.
At a general meeting, 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). 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 Company’s registrars not less than 48 hours before the
general meeting.
Restrictions on the transfer of shares
There are no restrictions on the sale or transfer of ordinary shares
in the Company, or on the size of a holding. The Company is not
aware of any agreements between shareholders that may result in
a restriction in the transfer of shares or voting rights.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
154
RELX
Annual Report 2023 | Governance
Authority to purchase own shares
At the Company’s 2023 AGM, shareholders passed a resolution
authorising the purchase of up to 193,584,144 ordinary shares
in the Company (representing approximately 10% of the issued
ordinary shares) by way of market purchase. This authority
will expire at the 2024 AGM, when a resolution to renew
the authority to purchase Company shares will be submitted
to shareholders. During the year, 30,912,126 ordinary shares
of 14
51
⁄
116
p each (representing 1.6% of the ordinary shares in issue
at 31 December 2023) were purchased by the Company for a total
consideration of £800m, including expenses, and subsequently
transferred to be held in treasury. A further 4,627,481 shares were
purchased between 2 January 2024 and the date of this report.
On 7 December 2023, the Company cancelled 31m ordinary shares
held in treasury. Therefore, as at 31 December 2023 there were
19,712,193 ordinary shares held in treasury, representing 1% of
the ordinary shares in issue. The purpose of the share buyback
programme is to reduce the capital of the Company.
Share issuance
At the 2023 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 £13,784,103, representing approximately
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 2023 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, 3,027,517 ordinary shares in the Company were
issued in order to satisfy entitlements under employee share
plans as follows: 669,028 under the UK SAYE Share Option Scheme
at prices between 1,178p and 1,976p per share; 153,166 under the
legacy Dutch Debenture Scheme at prices between 9.561 EUR and
19.39 EUR , which is satisfied by way of Company shares; and
2,205,323 under executive share option schemes at prices
between 734.5p and 2,492p per share.
Substantial share interests
As at 31 December 2023, the Company had received the following
notifications of interests in its 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 2023, or at the
date of this report.
Employee Benefit Trust
As at 31 December 2023, the Employee Benefit Trust trustee
held an interest in 5,663,529 ordinary shares in the Company,
representing 0.3% of the issued ordinary shares. The trustee may
vote or abstain from voting any shares it holds in any way it sees fit.
Other information
Branches
Our activities and interests are operated through
subsidiaries, branches of subsidiaries, joint arrangements and
associates which are subject to the laws and regulations of many
different jurisdictions.
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
189
(13) Shareholder waiver of future dividends
189
(14) Agreements with controlling shareholders
n/a
Significant agreements and 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. No
contract existed during the year in relation to the Company’s
business in which any Director was materially interested.
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 £152,366 (2022: £142,047) 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.
155
RELX
Annual Report 2023 | Directors’ Report
Research and development
RELX undertakes research and development activities in the
areas of machine learning, natural language processing,
predictive analytics, content search, and other technologies to
innovate and enhance our product offering and customer
experience across our business areas.
2024 AGM
The next AGM of the Company will be held at 9.30 am on Thursday,
25 April 2024 at Lexis House, 30 Farringdon Street, London
EC4A 4HH.
Auditor reappointment
Resolutions for the re-appointment of Ernst & Young LLP as
auditor of the Company and to authorise the Audit Committee,
on behalf of the Board, to determine the external auditor’s
remuneration, will be put to shareholders at the Company’s
2024 AGM.
Disclosure of information to auditors
Each of the directors in office as at the date of this Annual Report
confirms that:
§
so far as the Director is aware, there is no relevant audit
information of which the Company’s auditors are unaware; and
§
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.
Statement of Directors’ responsibilities
The Directors are responsible for preparing the Annual Report
and 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
have prepared consolidated financial statements in accordance
with International Accounting Standards (IAS) 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 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 Group and of the profit
or loss of the Company and of the Group for that period.
In preparing the individual Company’s 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:
§
select suitable accounting policies and then apply them
consistently;
§
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 Group’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 Group and
Company’s transactions and disclose with reasonable accuracy at
any time the financial position of the Group and the Company and
enable them to ensure that the Annual Report and 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.
The Directors are also responsible for preparing a Strategic report,
Directors’ report, Annual report on remuneration, and Corporate
governance report in compliance with applicable
laws and regulations. The Directors are responsible for the
maintenance and integrity of the Company’s website. Legislation in
the United Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Each of the Directors confirms that, to the best of their knowledge:
§
the consolidated financial statements, prepared in accordance
with UK-adopted IAS in conformity with the requirements of the
Companies Act 2006 and International Financial Reporting
Standards (IFRS), 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 Strategic 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; and
§
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.
By order of the Board
Henry Udow
Company Secretary
14 February 2024
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
156
RELX
Annual Report 2023
Financial statements
and other information
In this section
158
Independent auditor’s report
166
Consolidated financial statements
171
Notes to the consolidated financial statements
212
5 year summary
157
RELX
Annual Report 2023
Financial review
Financial statements
and shareholder 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 2023 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 2023 which comprise:
Group
Parent company
Consolidated income statement for the year ended
31 December 2023
Statement of financial position as at 31 December 2023
Consolidated statement of comprehensive income for the year
ended 31 December 2023
Statement of changes in equity for the year then ended
Consolidated statement of cash flows for the year ended
31 December 2023
Related notes 1 to 3 to the financial statements including
material accounting policy information
Consolidated statement of financial position as at 31 December 2023
Consolidated statement of changes in equity for the year then ended
Related notes 1 to 28 to the financial statements, including material
accounting policy information
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 IFRS as issued by the IASB. 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 company 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 2025. The Group has modelled a base case as well as a stress case of their cash forecasts
which incorporates severe but plausible downside risks to the forecasted liquidity of the Group. We challenged management whether
they have considered all key factors in their assessment. We have reviewed the historical accuracy of management’s forecasts and
verified that the forecasts for going concern purposes 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.
■
Challenging 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.
Independent auditor’s report to the members
of RELX PLC
158
RELX
Annual Report 2023 | Financial statements and other information
■
Verifying the credit facilities available to the Group including, inspection of the one year extension of the $3bn revolving credit
facility to April 2026, which was concluded in March 2023. Additionally, we obtained independent external confirmation that the
$3bn revolving credit facility remains undrawn with no financial covenants in place.
■
Reviewing management’s reverse stress testing 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 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 controllable mitigations.
Within management’s stress case scenario, which assumes no access to the capital markets, the Group would still have liquidity on
its undrawn $3bn revolving credit facility which does not contain any financial covenants.
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 2025.
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 five components and audit procedures on
specific balances for a further one component. We also instructed one additional component to perform
specified audit procedures on specific balances.
■
The components where we performed full or specific audit procedures accounted for 71% of Profit before
tax on an absolute basis, 73% of Revenue and 87% of Total Assets.
Key audit matters
■
Uncertain tax positions – risk that the tax provisions may be incorrectly quantified, including the trigger for
recognition or release, impacting the provision and the effective tax rate.
■
Revenue recognition – there is a fraud risk to misstate revenue through manual adjustments or override of
controls by management.
Materiality
■
Overall Group materiality of £115m which represents 5% 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, reflects more decentralised processes delineated by business area. We have tailored our response
accordingly and procedures were performed by the component teams with oversight from the primary 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 7 components covering entities primarily within the UK,
Netherlands and US, which represent the principal business units within the Group.
Of the 7 components selected, we performed an audit of the complete financial information of 5 components (“full scope
components”) which were selected based on their size or risk characteristics.
For 1 component (“specific scope component”), we performed full 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.
For 1 further component (“specified procedures component”), we performed certain 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. These procedures included revenue procedures as detailed in the
Key audit matters section, obtaining bank confirmations for significant bank accounts and testing the carrying value of intangible
assets and joint ventures as well as key IT general controls.
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
159
RELX
Annual Report 2023 | Independent auditor’s report to the members of RELX PLC
Of the other remaining components that together represent 23% of the Group’s profit before tax on an absolute basis, none are
individually greater than 1.5% 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 IT general controls supporting certain IT applications, testing of consolidation journals, intercompany eliminations and foreign
currency translation recalculations and review for evidence of material contracts that would require testing at the group level to
respond to any potential risks of material misstatement to the Group financial statements.
The table below illustrates the coverage obtained from the work performed by our audit teams:
REPORTING COMPONENT
2023
2022
% of Group
revenue
% of Group
PBT*
% of Total
Assets
Note
% of Group
revenue
% of Group
PBT*
% of Total
Assets
Full scope
73%
62%
68%
1,4
75%
64%
68%
Specific scope
-
9%
19%
2,4
8%
14%
22%
Full and Specific scope
73%
71%
87%
83%
78%
90%
Specified procedures
11%
6%
1%
3,4
1%
-
-
Other remaining components
16%
23%
12%
16%
22%
10%
Total reporting components
100%
100%
100%
100%
100%
100%
1. 2 of the 5 full scope components (Risk US and Legal US) are audited by a component audit team based in the US, with 1 full scope component (STM) audited
by a component audit team in the Netherlands and the remaining 2 full scope components (Risk UK and Legal UK) audited by UK component audit teams.
2. The specific scope component relates to finance and corporate entities. The primary audit team performed full audit procedures on specific accounts across
a range of significant accounts selected. The audit procedures did not include testing of all significant accounts of this component but will have contributed
to the coverage of significant accounts selected for testing by the group audit team.
3. The specified procedures component represents the Exhibitions business. The procedures were performed by a separate UK component audit team.
The audit scope of this component may not have included testing of all significant accounts of the component but will have contributed to the coverage of
significant accounts selected for testing by the group audit team.
4. For details of the changes in scope from the prior year please refer to “Changes from the prior year” section below.
*
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
We have made the following changes to our audit approach this year:
1.
In the prior year, the Exhibitions component in the UK was designated as a full scope component and those in the USA, Japan and
France were designated as specific scope components. On the basis that no individual component within the Exhibitions business
contributes more than 2.5% of absolute profit before tax, and due to the predictability of the business, we have adopted a centralised
approach to our work this year. We have performed certain audit procedures over the entire Exhibitions business, which has
incorporated a level of unpredictability to our work, for example, selecting a sample of revenue contracts across the entire Exhibitions
business, rather than within specific entities.
2.
Legal France has been reassessed as an ‘other remaining component’ this year, compared to a specific scope component in the prior
year. Legal France now contributes less than 1.5% of revenue, absolute profit before tax and assets to the Group. On the basis that the
likelihood of material misstatement is low, we have not identified any areas of concern in the previous years’ audits and there are no
significant internal audit findings, we have decided to remove this as a specific scope component.
3.
In the prior year, specified procedures were performed over a revenue stream which has, in the current year, been split between
components, a portion of which falls within our Risk US and Risk UK full scope components.
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 5 full scope components and 1 specific scope component, audit procedures were performed on 2 of
the full scope components and the specific scope component directly by the primary and UK component audit teams. For the other
3 components, where the work was performed by overseas 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 primary 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 the UK, the US and the
Netherlands. These visits involved meetings with local management and discussions with the component team on the audit
approach and any issues arising from their work. 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
Stakeholders are increasingly interested in 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 82-89 in the 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”.
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In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any
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
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, physical and transition and their climate commitments. This included evaluation, with the
support of our climate change internal 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 risks 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.
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 uncertain tax
positions totalled £173m as at
31 December 2023 (2022: £239m).
The Group’s operational structure
gives rise to potential tax exposures
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
Organisation for Economic Co-operation
and Development (OECD) guidelines.
Transfer pricing relies on the exercise of
j
udgement and it is reasonably possible
for there to be a significant range of
potential outcomes.
As a result, the Group has recognised
provisions for uncertain tax positions, the
valuation of which requires judgement,
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
j
udgement 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 review of significant
assumptions and judgements.
Our procedures on the uncertain tax positions were
performed centrally
by the
primary 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, release
or re-measure provisions following tax audits,
settlements and the 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
accuracy, as well as with reference to applicable
tax laws; and
(v)
evaluating the adequacy of disclosures related to
uncertain tax positions.
We reported to the Audit
Committee that we
challenged the robustness
of the key management
j
udgements around the
trigger for recognition or
release impacting 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 and
in accordance with IAS 12:
Income Taxes
. We
also
consider the tax disclosures to
be sufficient and appropriate.
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
161
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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 (£9.2bn recorded in 2023,
compared to £8.6bn recorded in 2022)
from a variety of sources among the
different business areas, including
annual subscriptions, transactional
usage and exhibition fees.
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
fraud risk to misstate revenue through
manual adjustments or override of
controls by management.
We performed full scope audit procedures over revenue
in 5 components, which covered 73% of revenue
and performed revenue procedures at 1 specified
procedures component which covered 11% of revenue.
We performed procedures to address the specific risk
in each business area.
Procedures at full scope components included:
(i)
assessing the processes and testing controls over
each significant revenue stream;
(ii)
evaluating the appropriateness of journal entries
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 customer contracts to check
that revenue recognition was in accordance 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 judgemental
elements, evaluating management’s assumptions
and critically challenging these assumptions
against contractual terms and underlying
financial information;
(vii) obtaining audit evidence through the execution
of data analytics procedures, including correlation
analyses from revenue to cash.
Procedures at the specified procedures component
included:
(i)
substantive analytical review;
(ii)
inspecting a sample of customer contracts to check
that revenue recognition was in accordance with the
contract terms and the Group’s revenue recognition
policies, which is in line with IFRS 15;
(iii)
evaluating the appropriateness of consolidation
journal entries impacting revenue at the component
level, as well as other adjustments made in the
preparation of the component level financial
statements.
The procedures we performed over the remaining 16%
of revenue included:
(i)
testing of entity level and group wide controls;
(ii)
analytical review of year over year movements in
revenue;
(iii) review for evidence of material contracts that would
require further testing.
Revenue has been
recognised appropriately in
the year ended 31 December
2023 in accordance with IFRS
15: Revenue from Contracts
with Customers.
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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 £115 million (2022: £100 million), which is 5% (2022: 4.73%) of profit before tax.
We believe that profit before tax provides us with the most relevant performance measure to the stakeholders of the entity and
therefore have determined materiality based on this number.
We determined materiality for the Parent Company to be £115 million (2022: £100 million), which is 0.6% (2022: 0.5%) 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% (2022: 75%) of our planning materiality, namely £86m (2022: £75m). 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 £26m to £86m (2022: £15m
to £75m).
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 £6m (2022: £5m),
which is set at 5% (2022: 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 1-155, including the Strategic
Report and the 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.
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
163
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Annual Report 2023 | Independent auditor’s report to the members of RELX PLC
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 105;
■
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 105;
■
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 105;
■
Directors’ statement on fair, balanced and understandable set out on page 150;
■
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 98;
■
The section of the annual report that describes the review of effectiveness of risk management and internal control systems set
out on page 124; and;
The section describing the work of the audit committee set out on page 149.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on
page
155, 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 (IASB, IFRS, 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).
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Annual Report 2023 | Financial statements and other information
■
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, or that
otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was
considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included those on
revenue recognition referred to in the Key audit matters section and testing manual journals and were designed to provide reasonable
assurance that the financial statements were free from material 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; and enquiries of legal counsel, Group management, internal audit and
business area management at all full and specific scope locations. 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.
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 ended 31 December 2016 and subsequent financial periods.
The period of uninterrupted engagement including previous renewals and reappointments is eight years, covering the years ending 2016
to 2023.
■
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
14
February
2024
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
165
RELX
Annual Report 2023 | Independent auditor’s report to the members of RELX PLC
FOR THE YEAR ENDED 31 DECEMBER
Note
2021
£m
2022
£m
2023
£m
Revenue
2
Cost of sales
(2,562 )
(3,045 )
(3,216 )
Gross profit
Selling and distribution costs
(1,197 )
(1,385 )
(1,459 )
Administration and other expenses
(1,630 )
(1,819 )
(1,850 )
Share of results of joint ventures and associates
Operating profit
2, 3
Finance income
7
Finance costs
7
(150 )
(205 )
(323 )
Net finance costs
(142 )
(201 )
(315 )
Disposals and other non-operating items
8
(9 )
(72 )
Profit before tax
Current tax
(422 )
(534 )
(575 )
Deferred tax
Tax expense
9
(326 )
(481 )
(507 )
Net profit for the year
Attributable to:
Shareholders
Non-controlling interests
(2 )
Net profit for the year
Earnings per share
FOR THE YEAR ENDED 31 DECEMBER
2021
£m
2022
£m
2023
£m
Basic earnings per share
RELX PLC
10
Diluted earnings per share
RELX PLC
10
Consolidated income statement
166
RELX
Annual Report 2023 | Financial statements and other information
FOR THE YEAR ENDED 31 DECEMBER
Note
2021
£m
2022
£m
2023
£m
Net profit for the yea
r
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses) on defined benefit pension schemes
6
(75 )
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
(56 )
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
(285 )
Fair value movements on cash flow hedges
17
(18 )
Transfer to profit from cash flow hedge reserve
17
(9 )
(17 )
Tax on items that may be reclassified to profit or loss
9
(1 )
(12 )
Total items that may be reclassified to profit or loss
(250 )
Other comprehensive income/(loss) for the year
(306 )
Total comprehensive income for the year
Attributable to:
Shareholders
Non-controlling interests
(2 )
Total comprehensive income for the year
Consolidated statement of comprehensive income
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
167
RELX
Annual Report 2023
FOR THE YEAR ENDED 31 DECEMBER
Note
2021
£m
2022
£m
2023
£m
Cash flows from operating activities
Cash generated from operations
11
Interest paid (including lease interest)
(119 )
(169 )
(303 )
Interest received
Tax paid (net)
(342 )
(495 )
(619 )
Net cash from operating activities
Cash flows from investing activities
Acquisitions
11
(254 )
(394 )
(124 )
Purchases of property, plant and equipment
(28 )
(36 )
(30 )
Expenditure on internally developed intangible assets
(309 )
(400 )
(447 )
Purchase of investments
(8 )
(66 )
(8 )
Proceeds from disposals of property, plant and equipment
Gross proceeds from business disposals and sale of investments
Payments on business disposals
(30 )
(15 )
(9 )
Dividends received from joint ventures and associates
Net cash used in investing activities
(384 )
(859 )
(569 )
Cash flows from financing activities
Dividends paid to shareholders
13
(920 )
(983 )
(1,059 )
Distributions to non-controlling interests
(10 )
(9 )
(7 )
(Decrease)/increase in short-term bank loans, overdrafts and commercial pape
r
11
(200 )
(101 )
Issuance of term debt
11
Repayment of term debt
11
(431 )
(35 )
(847 )
Repayment of leases
11
(93 )
(79 )
(72 )
Receipts in respect of subleases
11
Disposal of non-controlling interest
(1 )
Repurchase of ordinary shares
23
(500 )
(800 )
Purchase of shares by Employee Benefit Trust
23
(1 )
(50 )
(50 )
Proceeds on issue of ordinary shares
Net cash used in financing activities
(1,606 )
(1,334 )
(2,057 )
Increase/(decrease) in cash and cash equivalents
11
(169 )
Movement in cash and cash equivalents
At start of year
Increase/(decrease) in cash and cash equivalents
(169 )
Exchange translation differences
(1 )
(10 )
At end of yea
r
Consolidated statement of cash flows
168
RELX
Annual Report 2023 | Financial statements and other information
AS AT 31 DECEMBER
Note
2022
£m
2023
£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
Assets held for sale
Total assets
Current liabilities
Trade and other payables
20
Derivative financial instruments
17
Debt
21
Taxation
9
Provisions
Liabilities associated with assets held for sale
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
(414 )
(553 )
Translation reserve
Other reserves
24
Shareholders’ equity
Non-controlling interests
(22 )
(21 )
Total equity
The consolidated financial statements were approved by the Board of Directors and authorised for issue on 14 February 2024.
They were signed on its behalf by:
N L Luff
Chief Financial Office
r
Consolidated statement of financial position
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
169
RELX
Annual Report 2023
Consolidated statement of changes in equity
Note
Share
capital
£m
Share
premium
£m
Shares
held
in
treasury
£m
Translation
reserve
£m
Other
reserves
£m
Shareholders’
equity
£m
Non-
controlling
interests
£m
Total
equity
£m
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 (including
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 (including
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 1 January 2023
(414 )
(22 )
Total comprehensive income for the
year
(285 )
Dividends paid
13
(1,059 )
(1,059 )
(7 )
(1,066 )
Issue of ordinary shares, net of
expenses
23
Repurchase of ordinary shares
(800 )
(800 )
(800 )
Purchase of shares by the employee
benefit trust
23
(50 )
(50 )
(50 )
Cancellation of shares
23
(4 )
(673 )
Increase in share based
remuneration reserve (including
tax)
Settlement of share awards
(34 )
Exchange differences on translation
of capital and reserves
Balance at 31 December 2023
(553 )
(21 )
170
RELX
Annual Report 2023 | Financial statements and other information
1 Basis of preparation and accounting policies
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 joint ventures and associates are accounted for under the equity
On acquisition of a subsidiary, or interest in a joint venture or associate, 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
directors considered the sufficiency of the Group’s liquidity resources, including committed credit facilities, over the 18 month
period to 30 June 2025. Please refer to page 105 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
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
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 194 to 200.
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. Details
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, determining the costs which are
eligible for capitalisation and the selection of appropriate asset lives (see note 14)
■
Defined benefit pension obligation: determining an appropriate rate at which the future pension payments are discounted,
172
RELX
Annual Report 2023 | Financial statements and other information
Other areas of judgement and accounting estimates
The consolidated financial statements include other areas of judgement and accounting estimates. These include:
■
Taxation: The valuation of provisions related to uncertain tax positions involves estimation (see note 9)
■
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
The following accounting standards and amendments were adopted during the year and had no significant impact on the Group’s
accounting policies or reporting:
■
IFRS 17 Insurance Contracts;
■
Amendment to IAS 8
Accounting policies, Changes in Accounting Estimates and Errors
– Definition of Accounting Estimates;
■
Amendment to IAS 1
Presentation of Financial Statements
– Disclosure of Accounting Policies;
■
Amendment to IAS 12
Income Taxes
– Deferred Tax related to Assets and Liabilities arising from a single transaction; and
■
Amendment to IAS 12
Income Taxes
–
International Tax Reform
The following amendments and interpretations will become effective for the 2024 financial year. These are not expected to have a
significant impact on the accounting policies and reporting:
■
Amendment to IAS 1
Presentation of Financial Statements
– Non-current Liabilities with Covenants;
■
Amendment to IFRS 16
Leases
– Lease Liability in a Sale and Leaseback;
■
Amendment to IAS 1
Presentation of Financial Statements
– Classification of Liabilities as Current or Non-current; and
■
Amendment to IAS 7
Statement of Cash Flows
and IFRS 7
Financial Instruments – Disclosures
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 175.
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.
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
RELX
Annual Report 2023 | Notes to the consolidated financial statements
173
Overview
Market segments
Corporate Responsibility
Financial review
Governance
RELX is a global provider of information-based analytics and decision tools for professional and business customers. RELX operates
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 face-to-face and digitally, learn about markets,
source products and complete transactions.
ANALYSIS BY BUSINESS SEGMENT | Revenue | Adjusted operating profit | ||||
2021 | 2022 | 2023 | 2021 | 2022 | 2023 | |
£m | £m | £m | £m | £m | £m | |
Risk | 2,474 | 2,909 | 3,133 | 915 | 1,078 | 1,165 |
Scientific, Technical & Medical | 2,649 | 2,909 | 3,062 | 1,001 | 1,100 | 1,165 |
Legal | 1,587 | 1,782 | 1,851 | 326 | 372 | 393 |
Exhibitions | 534 | 953 | 1,115 | 10 | 162 | 319 |
Sub-total | 7,244 | 8,553 | 9,161 | 2,252 | 2,712 | 3,042 |
Unallocated central costs and other operating items | - | - | - | (42) | (29) | (12) |
Total | 7,244 | 8,553 | 9,161 | 2,210 | 2,683 | 3,030 |
The share of post-tax results of joint ventures and associates included in operating profit was £46m (2022: £19m; 2021: £29m). This
comprised of profit/(loss) relating to Risk £(1)m (2022: £2m; 2021: £4m), Legal £10m (2022: £7m; 2021: £6m) and Exhibitions £37m
(2022: £10m; 2021: £19m).
In 2022, unallocated central costs and other operating items 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 2023
and 2021. In 2021, unallocated central costs and other operating items includes a £35m one-off charge relating to reductions in our
corporate real estate footprint.
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 |
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 |
174
RELX
Annual Report 2023 | Financial statements and other information
2023 | Scientific, Technical | ||||
Risk | & Medical | Legal | Exhibitions | Total | |
Revenue by geographical market | |||||
North America | 2,476 | 1,439 | 1,254 | 217 | 5,386 |
Europe* | 429 | 666 | 386 | 427 | 1,908 |
Rest of world | 228 | 957 | 211 | 471 | 1,867 |
Total revenue | 3,133 | 3,062 | 1,851 | 1,115 | 9,161 |
Revenue by format | |||||
Electronic | 3,111 | 2,762 | 1,667 | 85 | 7,625 |
Face-to-face | 14 | 7 | 9 | 1,030 | 1,060 |
Print | 8 | 293 | 175 | - | 476 |
Total revenue | 3,133 | 3,062 | 1,851 | 1,115 | 9,161 |
Revenue by type | |||||
Subscriptions | 1,255 | 2,261 | 1,460 | - | 4,976 |
Transactional | 1,878 | 801 | 391 | 1,115 | 4,185 |
Total revenue | 3,133 | 3,062 | 1,851 | 1,115 | 9,161 |
* Europe includes revenue of £602m from the United Kingdom (2022: £544m; 2021: £476m).
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 2023, the aggregate amount of the transaction price of
such contracts which relates to performance obligations which have not yet been delivered was approximately £83m (2022: £100m).
It is expected that revenue will be recognised in relation to this amount over the next four years.
ANALYSIS OF REVENUE BY GEOGRAPHICAL ORIGIN | 2021 | 2022 | 2023 |
£m | £m | £m | |
North America | 4,204 | 5,002 | 5,325 |
Europe | 2,547 | 2,974 | 3,117 |
Rest of world | 493 | 577 | 719 |
Total | 7,244 | 8,553 | 9,161 |
Revenue by geographical origin from the United Kingdom in 2023 was £1,703m (2022: £1,481m; 2021: £1,248m).
ANALYSIS BY BUSINESS | Expenditure on | |||||||||||
SEGMENT | acquired goodwill and | Capital expenditure | Amortisation of acquired | Total depreciation and | ||||||||
| intangible assets | additions | intangible assets | other amortisation | |||||||||
2021 | 2022 | 2023 | 2021 | 2022 | 2023 | 2021 | 2022 | 2023 | 2021 | 2022 | 2023 | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m | |
Risk | 208 | 155 | 79 | 83 | 122 | 139 | 186 | 204 | 194 | 93 | 94 | 92 |
Scientific, Technical & | ||||||||||||
Medical | 58 | 206 | 3 | 87 | 103 | 108 | 63 | 60 | 59 | 144 | 119 | 136 |
Legal | 12 | 33 | 42 | 145 | 186 | 193 | 27 | 12 | 11 | 220 | 229 | 247 |
Exhibitions | 9 | - | 8 | 24 | 28 | 37 | 22 | 20 | 16 | 30 | 49 | 39 |
Total | 287 | 394 | 132 | 339 | 439 | 477 | 298 | 296 | 280 | 487 | 491 | 514 |
Capital expenditure comprises additions to property, plant and equipment and internally developed intangible assets.
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.
ANALYSIS OF NON-CURRENT ASSETS BY GEOGRAPHICAL LOCATION | 2022 | 2023 |
£m | £m | |
North America | 9,821 | 9,149 |
Europe | 2,193 | 2,141 |
Rest of world | 460 | 459 |
Total | 12,474 | 11,749 |
Non-current assets held in the United Kingdom totalled £1,209m (2022: £1,253m; 2021: £1,299m). Non-current assets by
geographical location exclude amounts relating to deferred tax, pension assets and derivative financial instruments.
RELX
Annual Report 2023 | Notes to the consolidated financial statements
175
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
Operating profit is reconciled to adjusted operating profit as follows:
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT | 2021 | 2022 | 2023 |
£m | £m | £m | |
Operating profit | 1,884 | 2,323 | 2,682 |
Adjustments: | |||
Amortisation of acquired intangible assets | 298 | 296 | 280 |
Acquisition-related items | 21 | 62 | 56 |
Reclassification of tax in joint ventures and associates | 7 | 4 | 12 |
Reclassification of finance income in joint ventures and associates | - | (2) | - |
Adjusted operating profit | 2,210 | 2,683 | 3,030 |
Acquisition-related items in 2021 included a gain of £27m from the revaluation of a put and call option arrangement relating to a
Operating profit is stated after charging/(crediting) the following:
2021 | 2022 | 2023 | ||
Note | £m | £m | £m | |
Total staff costs | 5 | 2,549 | 2,906 | 3,108 |
Depreciation and amortisation | ||||
Amortisation of acquired intangible assets | 14 | 297 | 294 | 279 |
Share of joint ventures and associates' amortisation of acquired intangible assets | 1 | 2 | 1 | |
Amortisation of acquired intangible assets including joint ventures and | ||||
associates' share | 298 | 296 | 280 | |
Amortisation of internally developed intangible assets | 14 | 295 | 309 | 330 |
Depreciation of property, plant and equipment | 16 | 52 | 47 | 43 |
Depreciation of right-of-use assets | 80 | 63 | 65 | |
Pre-publication amortisation | 60 | 72 | 76 | |
Total depreciation and other amortisation | 2 | 487 | 491 | 514 |
Total depreciation and amortisation (including amortisation of acquired | ||||
intangibles) | 785 | 787 | 794 | |
Other expenses and income | ||||
Cost of sales including pre-publication costs and inventory expenses | 2,562 | 3,045 | 3,216 | |
Short-term and low value lease expenses | 21 | 19 | 18 |
The amortisation of acquired intangible assets is included within administration and other expenses. The amortisation of internally
176
RELX
Annual Report 2023 | Financial statements and other information
2021 | 2022 | 2023 | |
£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 | 7.7 | 8.4 | 7.5 |
Audit services | 8.6 | 9.3 | 8.4 |
Audit-related assurance services | 0.5 | 0.6 | 0.5 |
Other services* | - | - | 0.2 |
Total auditor’s remuneration | 9.1 | 9.9 | 9.1 |
* Relates to EY assurance work on selected data included in the Corporate Responsibility Report.
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 decrease in the 2023 audit fee is mainly due to changes in scope and
foreign exchange movements. The previously reported 2022 fees paid to EY for audit services have been revised to include final
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
2021 | 2022 | 2023 | ||
Note | £m | £m | £m | |
Staff costs | ||||
Wages and salaries | 2,157 | 2,453 | 2,636 | |
Social security costs | 214 | 257 | 274 | |
Pensions | 6 | 133 | 150 | 142 |
Share based remuneration | 45 | 46 | 56 | |
Total staff costs | 2,549 | 2,906 | 3,108 |
capitalised. 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 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, the US and the Netherlands. Further details are provided in the Remuneration Report on pages 128
NUMBER OF PEOPLE EMPLOYED: FULL-TIME EQUIVALENTS* | At 31 December | Average during the year | ||||
2021 | 2022 | 2023 | 2021 | 2022 | 2023 | |
Business segment | ||||||
Risk | 10,000 | 10,800 | 11,100 | 9,800 | 10,400 | 10,900 |
Scientific, Technical & Medical | 8,700 | 9,500 | 9,500 | 8,600 | 9,300 | 9,600 |
Legal | 10,500 | 11,300 | 11,800 | 10,300 | 10,900 | 11,900 |
Exhibitions | 3,500 | 3,300 | 3,500 | 3,600 | 3,300 | 3,500 |
Sub-total | 32,700 | 34,900 | 35,900 | 32,300 | 33,900 | 35,900 |
Corporate/shared functions | 800 | 800 | 600 | 800 | 800 | 600 |
Total | 33,500 | 35,700 | 36,500 | 33,100 | 34,700 | 36,500 |
Geographical location | ||||||
North America | 14,000 | 14,900 | 14,900 | 13,900 | 14,500 | 15,000 |
Europe | 9,300 | 9,800 | 10,000 | 9,400 | 9,500 | 9,900 |
Rest of world | 10,200 | 11,000 | 11,600 | 9,800 | 10,700 | 11,600 |
Total | 33,500 | 35,700 | 36,500 | 33,100 | 34,700 | 36,500 |
* Reported to the nearest 100.
The number of UK full-time equivalents as at 31 December 2023 was 6,000 (2022: 5,800; 2021: 5,400) and the average during
RELX
Annual Report 2023 | Notes to the consolidated financial statements
177
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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 2023, 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.
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 the more significant assumptions used for valuation is provided below, together with a
A number of pension schemes are operated around the world. The largest funded defined benefit schemes as at 31 December 2023
were in the UK and the US, and are summarised below. In addition, there are a number of smaller unfunded schemes in the UK
and the US.
Major defined benefit schemes in place at 31 December 2023
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 is 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 final deficit funding contribution to the scheme during 2024 is £26m.
RELX provides a guarantee in respect of scheme liabilities up to a maximum amount whereby debt is calculated under Section 75
of the Pensions Act 1995. No liability has been recognised in respect of this guarantee as any possibility of triggering Section 75 is
considered remote and RELX expect the scheme to continue operating with more than sufficient liquidity to meet liabilities as they
fall due for the foreseeable future.
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 2024 are expected to be approximately £35m
including a £26m pension deficit funding contribution relating to the UK scheme recovery plan.
The pension expense (excluding interest amounts) recognised in the income statement consists of:
2021 |
2022 |
2023 |
|
£m |
£m |
£m |
|
Defined benefit pension expense |
24 |
19 |
5 |
Defined contribution pension expense |
109 |
131 |
137 |
Total |
133 |
150 |
142 |
All of the pension expense is recognised within operating profit.
178
RELX
Annual Report 2023 | Financial statements and other information
The amounts recognised in the income statement in respect of defined benefit pension schemes during the year are presented by
major scheme as follows:
| 2021 | 2022 | 2023 | |||||||
UK | US | Total | UK | US | Total | UK | US | Total | |
£m | £m | £m | £m | £m | £m | £m | £m | £m | |
Service cost | 21 | 3 | 24 | 16 | 3 | 19 | 2 | 3 | 5 |
Defined benefit pension expense | 21 | 3 | 24 | 16 | 3 | 19 | 2 | 3 | 5 |
Net interest on net defined benefit obligation | 8 | 1 | 9 | 4 | 1 | 5 | 1 | - | 1 |
Net defined benefit pension expense | 29 | 4 | 33 | 20 | 4 | 24 | 3 | 3 | 6 |
Net interest on net defined benefit pension scheme liabilities is presented within net finance costs in the income statement. 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.
The significant valuation assumptions, determined for each major scheme in conjunction with the respective independent
actuaries, are presented below.
AS AT 31 DECEMBER | 2021 | 2022 | 2023 | |||
UK | US | UK | US | UK | US | |
Discount rate | 1.95 % | 2.80 % | 4.90 % | 5.35 % | 4.60 % | 5.05 % |
Inflation | 3.30 % | 2.50 % | 3.20 % | 2.50 % | 3.05 % | 2.50 % |
Discount rates are set by reference to high-quality corporate bond yields of a currency and a term consistent with the Group’s
pension schemes. High quality corporate bonds are those for which at least one of the main ratings agencies in a given region
considers to be AA-rated (or equivalent).
For the UK, future price inflation, as measured by the Retail Prices Index (RPI), has been derived with regard to the term of pension
liabilities, the inflation implied by redemption yields on fixed interest and index-linked gilts and allowing for inflation risk premium.
The price inflation assumptions allow for the expected impact of RPI reform, in particular expectations that future levels of RPI and
CPI will be broadly aligned after 2030. For the US, inflation is based on the statutory limits on compensation and benefits.
Mortality assumptions make allowance for future improvements in longevity and have been determined by reference to applicable
mortality statistics. Future improvements for the 2023 year-end for the UK are in line with the CMI 2022 Core Projections Model,
with a long-term rate of improvement of 1.25 per cent p.a., and for the US are in line with the Mortality Improvements Scale MP-
2021 developed by the Retirement Plans Experience Committee of the Society of Actuaries. The average life expectancy
assumptions are set out below:
AS AT 31 DECEMBER 2021 | 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 |
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 |
AS AT 31 DECEMBER 2023 | Male average life | Female average | ||
expectancy | life expectancy | |||
UK | US | UK | US | |
Member currently aged 60 years | 85 | 86 | 88 | 88 |
Member currently aged 45 years | 86 | 86 | 90 | 89 |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
179
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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:
| 2022 | 2023 | |||||
UK | US | Total | UK | US | Total | |
£m | £m | £m | £m | £m | £m | |
Defined benefit obligation | ||||||
At start of yea r | (4,629) | (992) | (5,621) | (2,887) | (865) | (3,752) |
Service cost | (16) | (3) | (19) | (2) | (3) | (5) |
Interest on pension scheme liabilities | (89) | (29) | (118) | (138) | (43) | (181) |
Actuarial gains/(losses) on financial assumptions | 1,809 | 224 | 2,033 | (61) | (19) | (80) |
Actuarial gains/(losses) arising from experience | ||||||
assumptions | (81) | (7) | (88) | (16) | 5 | (11) |
Contributions by employees | (8) | - | (8) | (8) | - | (8) |
Benefits paid | 127 | 54 | 181 | 128 | 57 | 185 |
Exchange translation differences | - | (112) | (112) | - | 46 | 46 |
At end of year | (2,887) | (865) | (3,752) | (2,984) | (822) | (3,806) |
Fair value of scheme assets | ||||||
At start of yea r | 4,390 | 1,007 | 5,397 | 2,852 | 854 | 3,706 |
Interest income on plan assets | 85 | 28 | 113 | 137 | 43 | 180 |
Return on assets excluding amounts included in | ||||||
interest income | (1,573) | (247) | (1,820) | 1 | 34 | 35 |
Contributions by employer | 69 | 6 | 75 | 67 | 6 | 73 |
Contributions by employees | 8 | - | 8 | 8 | - | 8 |
Benefits paid | (127) | (54) | (181) | (128) | (57) | (185) |
Exchange translation differences | - | 114 | 114 | - | (46) | (46) |
At end of year | 2,852 | 854 | 3,706 | 2,937 | 834 | 3,771 |
Opening net balance | (239) | 15 | (224) | (35) | (11) | (46) |
Service cost | (16) | (3) | (19) | (2) | (3) | (5) |
Net interest on net defined benefit obligation | (4) | (1) | (5) | (1) | - | (1) |
Contributions by employer | 69 | 6 | 75 | 67 | 6 | 73 |
Actuarial gains/(losses) | 155 | (30) | 125 | (76) | 20 | (56) |
Exchange translation differences | - | 2 | 2 | - | - | - |
Net pension balance | (35) | (11) | (46) | (47) | 12 | (35) |
Impact of asset ceiling | (5) | (4) | (9) | (6) | (22) | (28) |
Overall net pension balance | (40) | (15) | (55) | (53) | (10) | (63) |
As at 31 December 2023, the defined benefit obligations comprised £3,626m (2022: £3,569m) in relation to funded schemes and
£180m (2022: £183m) in relation to unfunded schemes.
The weighted average duration of defined benefit scheme liabilities is 14 years in the UK (2022: 15 years) and 9 years in the US
(2022: 9 years). Net deferred tax assets of £16m (2022: £14m) are recognised in respect of the net pension balance.
A net pension asset has been recognised in relation to the UK and US funded schemes 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:
2022 | 2023 | |
£m | £m | |
Net pension asset recognised | 129 | 119 |
Net pension obligation | (184) | (182) |
Overall net pension balance | (55) | (63) |
180
RELX
Annual Report 2023 | Financial statements and other information
Amounts recognised in the statement of comprehensive income are set out below:
2021 | 2022 | 2023 | |
£m | £m | £m | |
Gains and losses arising during the year: | |||
Experience losses on scheme liabilities | (153) | (88) | (11) |
Experience gains/(losses) on scheme assets | 279 | (1,820) | 35 |
Actuarial (losses)/gains on the present value of scheme liabilities due to changes in: | |||
– discount rates | 463 | 2,000 | (145) |
– inflation | (290) | 32 | 15 |
– other actuarial assumptions | 20 | 1 | 50 |
319 | 125 | (56) |
The total actuarial loss recognised in the statement of comprehensive income of £75m (2022: a gain of £164m) also includes a loss
of £19m (2022: a gain of £39m) in relation to the asset ceiling. As at 31 December 2023, the impact of the asset ceiling on the
overall net pension obligation is £28m (2022: £9m).
The major categories and fair values of scheme assets at the end of the reporting period are as follows:
FAIR VALUE OF SCHEME ASSETS | 2022 | 2023 | ||||
UK | US | Total | UK | US | Total | |
£m | £m | £m | £m | £m | £m | |
Equities ¹ | 272 | 4 | 276 | 431 | 3 | 434 |
Liability matching assets ² | 899 | 802 | 1,701 | 1,760 | 804 | 2,564 |
Property funds and ground leases ³ | 651 | - | 651 | 406 | - | 406 |
Direct lending | 241 | - | 241 | 229 | - | 229 |
Cash and cash equivalents ⁴ | 788 | 17 | 805 | 98 | 27 | 125 |
Other | 1 | 31 | 32 | 13 | - | 13 |
Total | 2,852 | 854 | 3,706 | 2,937 | 834 | 3,771 |
(1)
Assets are held in unquoted funds which invest in equities with quoted prices
(2)
Within the UK scheme are asset backed securities totalling £247m (2022: £375m), other credit assets of £452m (2022: £199m), forward foreign currency
exchange contracts of £4m (2022: £3m) and government bonds totalling £1,962m (2022: £1,721m) offset by interest rate swaps of £4m (2022: £115m) and
short-term sale and repurchase agreements totalling £910m (2022; £1,284m) whereby the UK scheme funds the purchase of government bonds using
existing bonds as security. In the US, the assets primarily relate to government bonds, corporate bonds and interest rate swaps. Of the gross assets,
£2,169m (2022: £1,945m) are assets with quoted prices in active markets.
(3)
Assets without quoted prices in active markets
(4)
Includes £83m (2022: £220m) of assets with quoted prices in an active market. The remainder are held in funds which do not have quoted prices
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.
RELX
Annual Report 2023 | Notes to the consolidated financial statements
181
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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 | 231 |
Increase/decrease of 0.25% in the expected inflation rate | 69 |
Increase/decrease of one year in assumed life expectancy | 101 |
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
Interest on borrowings is expensed as incurred. The cost of issuing borrowings is generally expensed over the period of
2021 | 2022 | 2023 | |
£m | £m | £m | |
Interest on short-term bank loans, overdrafts and commercial paper | (11) | (19) | (31) |
Interest on term debt | (106) | (157) | (263) |
Interest on lease liabilities | (8) | (6) | (6) |
Total borrowing costs | (125) | (182) | (300) |
Losses on loans and derivatives not designated as hedges | (16) | (9) | (20) |
Fair value losses on designated fair value hedge relationships | - | (9) | (2) |
Net financing charge on defined benefit pension schemes | (9) | (5) | (1) |
Finance costs | (150) | (205) | (323) |
Interest on bank deposits | 1 | 4 | 8 |
Fair value gains on designated fair value hedge relationships | 7 | - | - |
Finance income | 8 | 4 | 8 |
Net finance costs | (142) | (201) | (315) |
Losses of £2m (2022: gains of £2m; 2021: losses of £1m) 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.
Losses of £1m (2022: £1m; 2021: nil) in total were transferred from the hedge reserve in the period.
The interest charge on term debt includes a charge of £26m in respect of the early redemption of bonds that were due to be repaid in
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.
2021 | 2022 | 2023 | |
£m | £m | £m | |
Revaluation of investments | 16 | 9 | (11) |
Gain/(loss) on disposal of businesses and assets held for sale | 39 | (18) | (61) |
Net gain/(loss) on disposals and other non-operating items | 55 | (9) | (72) |
The revaluation of investments relates to venture fund investments.
182
RELX
Annual Report 2023 | Financial statements and other information
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.
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, joint ventures and associates 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
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.
In 2023 the valuation of provisions in relation to uncertain tax positions was no longer 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 overall level of
risk is now significantly lower than in previous years.
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
RELX
Annual Report 2023 | Notes to the consolidated financial statements
183
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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
2021 | 2022 | 2023 | |
£m | £m | £m | |
Current tax | |||
Current year | (453) | (564) | (652) |
Prior years | 31 | 30 | 77 |
Total current tax charge | (422) | (534) | (575) |
Deferred tax | 96 | 53 | 68 |
Tax expense | (326) | (481) | (507) |
The UK current tax charge was £157m (2022: £102m; 2021: £46m). Cash tax paid (net) in the year was £619m (2022: £495m; 2021:
£342m), 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.
■
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:
2021 | 2022 | 2023 | ||||
£m | % | £m | % | £m | % | |
Profit before tax | 1,797 | 2,113 | 2,295 | |||
Tax at average applicable rates | (418) | 23.3 % | (498) | 23.6 % | (571) | 24.9 % |
Tax effect of share of results of joint ventures | ||||||
and associates | 6 | (0.3)% | 3 | (0.1)% | 8 | (0.3)% |
Income not taxable and expenses not deductible | 24 | (1.4)% | 21 | (1.0)% | 20 | (0.9)% |
Non-deductible costs of share based | ||||||
remuneration | (2) | 0.1 % | (1) | 0.0 % | (1) | 0.0 % |
Non-deductible disposal-related gains and losses | 1 | (0.1)% | (2) | 0.1 % | (22) | 1.0 % |
Deferred tax assets of the period not recognised | (8) | 0.4 % | (17) | 0.8 % | (3) | 0.1 % |
Change in recognition and measurement of | ||||||
deferred tax | 25 | (1.4)% | 5 | (0.2)% | 4 | (0.2)% |
Movements in provisions and prior year items | 46 | (2.5)% | 8 | (0.4)% | 58 | (2.5)% |
Tax expense | (326) | 18.1 % | (481) | 22.8 % | (507) | 22.1 % |
184
RELX
Annual Report 2023 | Financial statements and other information
The weighted average applicable tax rate for the year was 24.9% (2022: 23.6%; 2021: 23.3%), 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 the Group operates.
The BEPS Pillar Two Minimum Tax legislation was enacted in July 2023 in the UK with effect from 2024. The Group has applied the
temporary exception under IAS 12 in relation to the accounting for deferred taxes arising from the implementation of the Pillar Two
rules. The new rules are not expected to have a significant impact on the tax charge for the Group.
In the US, the Inflation Reduction Act enacted in August 2022 introduced a corporate alternative minimum tax. This is not expected
to have any significant impact on the Group. The Group 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 nil (2022: £3m; 2021: £8m) in the income statement.
The effective tax rate of 22.1% (2022: 22.8%; 2021: 18.1%) was lower than the weighted average applicable rate of 24.9%. Income
not taxable and expenses not deductible include a credit of £21m (2022: £13m; 2021: £15m) relating to research and development.
In 2023 and 2021, there were tax credits arising from the substantial resolution of prior year tax matters. 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 2021, there was a tax credit of £7m relating to the
revaluation of a put and call option arrangement.
The following tax has been recognised in other comprehensive income or directly in equity during the year:
2021 | 2022 | 2023 | |
£m | £m | £m | |
Tax on items that will not be reclassified to profit or loss | |||
Tax on actuarial movements on defined benefit pension schemes | (48) | (43) | 19 |
Tax on items that may be reclassified to profit or loss | |||
Tax on fair value movements on cash flow hedges | (1) | 8 | (12) |
Net tax (charge)/credit recognised in other comprehensive income | (49) | (35) | 7 |
Tax credit on share based remuneration recognised directly in equity | 12 | - | 24 |
2022 | 2023 | ||
£m | £m | ||
Current tax assets | 15 | 6 | |
Current tax liabilities | (249) | (163) | |
Total | (234) | (157) |
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 £173m (2022: £239m)
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.
2022 | 2023 | |
£m | £m | |
Deferred tax assets | 146 | 128 |
Deferred tax liabilities | (590) | (473) |
Total | (444) | (345) |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
185
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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 | |||||||
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 1 January | |||||||
2023 | (735) | (231) | 132 | 118 | 49 | 223 | (444) |
Credit/(charge) to profit | 63 | 40 | (31) | (26) | (1) | 23 | 68 |
(Charge)/credit to equity/other | |||||||
comprehensive income | - | (2) | - | - | (1) | 11 | 8 |
Acquisitions | (16) | 1 | - | 9 | - | - | (6) |
Disposals and other | 3 | - | - | - | - | - | 3 |
Exchange translation differences | 33 | 10 | (2) | (5) | – | (10) | 26 |
Deferred tax (liability)/asset at | |||||||
31 December 2023 | (652) | (182) | 99 | 96 | 47 | 247 | (345) |
The closing deferred tax liability balance of other temporary differences includes those relating to capitalised development
costs of £120m (2022: £165m) and pension surplus of £30m (2022: £32m). The closing deferred tax asset balance of other
temporary differences includes those relating to accruals and provisions of £128m (2022: £118m), share based remuneration
provisions of £59m (2022: £41m) and intercompany interest of £21m (2022: £14m).
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, the remaining trading losses were
substantially utilised this year. Other deferred tax assets have been recognised including for losses in the US and Netherlands,
the majority of which are expected to have been utilised by 2029.
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:
2022 | 2023 | |||
£m | £m | £m | £m | |
Gross amount | Tax effected | Gross amount | Tax effected | |
Trading losses and temporary differences expiring | ||||
Within 10 years | 123 | 35 | 93 | 26 |
More than 10 years | 1 | - | 14 | 4 |
Available indefinitely | 208 | 58 | 246 | 66 |
Total | 332 | 93 | 353 | 96 |
State and local tax losses expiring | ||||
Within 10 years | 19 | 1 | 21 | 1 |
More than 10 years | 89 | 6 | 63 | 4 |
Available indefinitely | - | - | - | - |
Total | 108 | 7 | 84 | 5 |
Capital losses expiring | ||||
Within 10 years | - | - | - | - |
More than 10 years | - | - | - | - |
Available indefinitely | 22 | 5 | 27 | 7 |
Total | 22 | 5 | 27 | 7 |
186
RELX
Annual Report 2023 | Financial statements and other information
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. The dilutive impact is calculated as the weighted average of all potentially dilutive shares.
Adjusted earnings per share is calculated by dividing adjusted net profit attributable to RELX PLC shareholders by the total
EARNINGS PER SHARE – FOR THE |
|||||||||
YEAR ENDED 31 DECEMBER |
2021 |
2022 |
2023 |
||||||
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 |
1,471 |
1,928.0 |
76.3p |
1,634 |
1,918.5 |
85.2p |
1,781 |
1,891.8 |
94.1p |
Diluted earnings per share |
1,471 |
1,939.4 |
75.8p |
1,634 |
1,929.3 |
84.7p |
1,781 |
1,902.8 |
93.6p |
ADJUSTED EARNINGS PER SHARE |
2021 |
2022 |
2023 |
||||||
Adjusted net |
Adjusted net |
Adjusted net |
|||||||
profit |
Weighted |
profit |
Weighted |
profit |
Weighted |
||||
attributable |
average |
attributable |
average |
attributable |
average |
||||
to |
number |
Adjusted |
to |
number |
Adjusted |
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 |
1,689 |
1,928.0 |
87.6p |
1,961 |
1,918.5 |
102.2p |
2,156 |
1,891.8 |
114.0p |
RECONCILIATION OF ADJUSTED NET PROFIT ATTRIBUTABLE TO RELX PLC SHAREHOLDERS |
|||
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 |
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 |
5 |
(1) |
4 |
Disposals and other non-operating items |
9 |
3 |
12 |
Adjusted net profit attributable to shareholders |
1,961 |
||
RELX
Annual Report 2023 | Notes to the consolidated financial statements
187
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
2023 | Pre-tax | Tax on | |
adjustment | adjustment | Total | |
£m | £m | £m | |
Net profit attributable to shareholders | 1,781 | ||
Adjustments: | |||
Amortisation of acquired intangible assets | 280 | 32 | 312 |
Other deferred tax credits from intangible assets* | - | (61) | (61) |
Acquisition-related items | 56 | (8) | 48 |
Net interest on net defined benefit pension obligation | 1 | - | 1 |
Disposals and other non-operating items | 72 | 3 | 75 |
Adjusted net profit attributable to shareholders | 2,156 |
Cash and cash equivalents comprise cash balances, call deposits and other short-term highly liquid investments and are held
2021 | 2022 | 2023 | ||
RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS | £m | £m | £m | |
Operating profit | 1,884 | 2,323 | 2,682 | |
Share of results of joint ventures and associates | (29) | (19) | (46) | |
Amortisation of acquired intangible assets | 297 | 294 | 279 | |
Amortisation of internally developed intangible assets | 295 | 309 | 330 | |
Amortisation of pre-publication costs | 60 | 72 | 76 | |
Depreciation of property, plant and equipment | 52 | 47 | 43 | |
Depreciation of right-of-use assets | 80 | 63 | 65 | |
Share based remuneration | 45 | 46 | 56 | |
Total non-cash items | 829 | 831 | 849 | |
Increase in inventories and pre-publication costs | (73) | (103) | (90) | |
Increase in receivables | (103) | (251) | (24) | |
(Decrease)/increase in payables | (32) | 280 | (1) | |
Increase in working capital | (208) | (74) | (115) | |
Cash generated from operations | 2,476 | 3,061 | 3,370 | |
CASH FLOW ON ACQUISITIONS | 2021 | 2022 | 2023 | |
Note | £m | £m | £m | |
Purchase of businesses | 12 | (235) | (373) | (108) |
Deferred payments relating to prior year acquisitions | (19) | (21) | (16) | |
Total | (254) | (394) | (124) |
188
RELX
Annual Report 2023 | Financial statements and other information
RECONCILIATION OF NET DEBT | Related | ||||
Cash and | derivative | Finance | |||
cash | financial | lease | |||
equivalents | Debt | instruments | receivable | Total | |
£m | £m | £m | £m | £m | |
As at 1 January 2022 | 113 | (6,167) | 35 | 2 | (6,017) |
Increase in cash and cash equivalents | 208 | - | - | - | 208 |
Decrease in short-term bank loans, overdrafts and | |||||
commercial paper | - | 101 | - | - | 101 |
Issuance of term debt | - | (397) | - | - | (397) |
Repayment of term debt | - | 35 | - | - | 35 |
Repayment of leases | - | 79 | - | (1) | 78 |
Change in net debt resulting from cash flows | 208 | (182) | - | (1) | 25 |
Borrowings in acquired businesses | - | (3) | - | - | (3) |
Remeasurement and derecognition of leases | - | (5) | - | - | (5) |
Inception of leases | - | (34) | - | 5 | (29) |
Fair value and other adjustments to debt and related | |||||
derivatives | - | 230 | (245) | - | (15) |
Exchange translation differences | 13 | (569) | (3) | (1) | (560) |
At 1 January 2023 | 334 | (6,730) | (213) | 5 | (6,604) |
Decrease in cash and cash equivalents | (169) | - | - | - | (169) |
Increase in short-term bank loans, overdrafts and | |||||
commercial paper | - | (84) | - | - | (84) |
Issuance of term debt | - | (651) | - | - | (651) |
Repayment of term debt | - | 847 | - | - | 847 |
Repayment of leases | - | 72 | - | (2) | 70 |
Change in net debt resulting from cash flows | (169) | 184 | - | (2) | 13 |
Borrowings in disposed businesses | - | 1 | - | - | 1 |
Inception of leases | - | (38) | - | 1 | (37) |
Fair value and other adjustments to debt and related | |||||
derivatives | - | (100) | 97 | - | (3) |
Exchange translation differences | (10) | 186 | 8 | - | 184 |
At 31 December 2023 | 155 | (6,497) | (108) | 4 | (6,446) |
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
RELX
Annual Report 2023 | Notes to the consolidated financial statements
189
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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
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 | |
2021 | 2022 | 2023 | |
£m | £m | £m | |
Goodwill | 131 | 269 | 68 |
Intangible assets | 156 | 125 | 64 |
Property, plant and equipment | 1 | 1 | 1 |
Other non-current assets | - | 3 | - |
Current assets | 4 | 8 | 3 |
Current liabilities | (16) | (21) | (10) |
Borrowings | - | (3) | - |
Deferred tax | (27) | (13) | (6) |
Net assets acquired | 249 | 369 | 120 |
Consideration (after taking account of £4m net cash acquired (2021: £8m; | |||
2022: £6m)) | 249 | 369 | 120 |
Change in consideration deferred to future years and changes in contingent | |||
consideration relating to prior year acquisitions | (14) | 4 | (12) |
Net cash flow | 235 | 373 | 108 |
During 2023, RELX completed several acquisitions for total consideration of £130m (2022: £443m), or £126m (2022: £437m)
adjusted for cash acquired. In 2022, this included the acquisition of investments in joint ventures and associates of £61m. Refer to
note 15 for further details. Total cash spent on acquisitions was £124m (2022: £394m), excluding nil borrowings (2022: £3m of
borrowings) in acquired businesses and including deferred consideration of £16m (2022: £21m) on past acquisitions.
The businesses acquired in 2023 contributed £15m to revenue, decreased adjusted operating profit by £3m, decreased net profit by
£20m (after charging £17m of integration costs and amortisation of acquired intangibles) and decreased net cash inflow from
operating activities by £7m for the part year under the Group’s ownership and before taking account of acquisition financing costs.
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 £9,168m, £3,026m and £1,777m respectively,
ORDINARY DIVIDENDS PAID IN THE YEAR | 2021 | 2022 | 2023 |
£m | £m | £m | |
RELX PLC | 920 | 983 | 1,059 |
Ordinary dividends declared and paid in the year ended 31 December 2023, in amounts per ordinary share, comprise: a final
dividend for 2022 of 38.9p (2022: final dividend for 2021 of 35.5p; 2021: final dividend for 2020 of 33.4p) and a 2023 interim dividend
for 2023 of 17.0p (2022: 15.7p; 2021: 14.3p), giving a total of 55.9p (2022: 51.2p; 2021: 47.7p).
The Directors of RELX PLC have proposed a final dividend for 2023 of 41.8 p per ordinary share (2022: 38.9 p; 2021: 35.5 p), giving a
total for the financial year of 58.8p per ordinary share (2022: 54.6p; 2021: 49.8p). The total cost of funding the proposed final
dividend is expected to be £786 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
190
RELX
Annual Report 2023 | Financial statements and other information
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,
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 (development spend) 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 10 years. Impairment reviews are carried out at least annually or where indicators of impairment are identified.
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
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. In the impairment reviews carried out at least
annually or where indicators of impairment are identified, estimates relating to the future cash flows and discount rates used
RELX
Annual Report 2023 | Notes to the consolidated financial statements
191
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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 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 1 January 2023 | 8,388 | 2,699 | 2,076 | 690 | 845 | 2,518 | 8,828 | 4,120 | 12,948 |
Acquisitions | 68 | 1 | 28 | 1 | 31 | 3 | 64 | - | 64 |
Additions | - | - | - | - | - | - | - | 447 | 447 |
Disposals and other* | (51) | (28) | (29) | (11) | (4) | (9) | (81) | (59) | (140) |
Exchange translation differences | (382) | (132) | (96) | (22) | (37) | (86) | (373) | (165) | (538) |
At 31 December 2023 | 8,023 | 2,540 | 1,979 | 658 | 835 | 2,426 | 8,438 | 4,343 | 12,781 |
ACCUMULATED AMORTISATION | |||||||||
As 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 1 January 2023 | - | 1,718 | 1,332 | 617 | 572 | 2,500 | 6,739 | 2,685 | 9,424 |
Charge for the year | - | 116 | 73 | 15 | 63 | 12 | 279 | 330 | 609 |
Disposals and other* | - | (16) | (19) | (5) | (8) | (9) | (57) | (41) | (98) |
Exchange translation differences | - | (87) | (63) | (20) | (27) | (87) | (284) | (108) | (392) |
At 31 December 2023 | - | 1,731 | 1,323 | 607 | 600 | 2,416 | 6,677 | 2,866 | 9,543 |
NET BOOK AMOUNT | |||||||||
At 31 December 2022 | 8,388 | 981 | 744 | 73 | 273 | 18 | 2,089 | 1,435 | 3,524 |
At 31 December 2023 | 8,023 | 809 | 656 | 51 | 235 | 10 | 1,761 | 1,477 | 3,238 |
* Includes goodwill of £51m (before an impairment of £42m) and intangible assets of £31m classified as held for sale within Risk.
The carrying amount of goodwill is shown after cumulative amortisation of £1,199m (2022: £1,253m), which was charged prior to
the adoption of IFRS, and £9m (2022: £9m) of subsequent impairment charges recorded in prior years.
The Legal business area has £636m (2022: £735m) of capitalised development costs associated with platforms and infrastructure,
with a remaining amortisation period of up to ten years.
Included in market-related intangible assets are £119m (2022: £125m) 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 2023 (2022: nil) identified during the
annual impairment review.
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 | 2022 | 2023 |
£m | £m | |
Risk | 4,167 | 3,950 |
Scientific, Technical & Medical | 2,015 | 1,923 |
Legal | 1,572 | 1,524 |
Exhibitions | 634 | 626 |
Total | 8,388 | 8,023 |
192
RELX
Annual Report 2023 | Financial statements and other information
The key assumptions used for each group of CGUs are disclosed below:
KEY ASSUMPTIONS | 2022 | 2023 | ||
Nominal | Nominal | |||
Pre-tax | long-term | Pre-tax | long-term | |
discount | market | discount | market | |
rate | growth rate | rate | growth rate | |
Risk | 11.2% | 4% | 11.3% | 4% |
Scientific, Technical & Medical | 10.5% | 3% | 10.6% | 3% |
Legal | 10.9% | 3% | 10.9% | 4% |
Exhibitions | 13.0% | 4% | 12.3% | 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 2023 when the impairment review was performed, and there were no indicators of impairment in the intervening
period to 31 December 2023.
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, are broadly in line with 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: an increase 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%; 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
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 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. Refer to note 17 for
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
2022 | 2023 | |
£m | £m | |
Investments in joint ventures and associates | 159 | 178 |
Venture capital investments | 127 | 97 |
Total | 286 | 275 |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
193
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
2022 | 2023 | |
£m | £m | |
At start of yea r | 105 | 159 |
Share of results of joint ventures and associates | 19 | 46 |
Dividends received from joint ventures and associates | (33) | (21) |
Acquisitions | 62 | - |
Disposals and othe r | 1 | - |
Exchange translation differences | 5 | (6) |
At end of yea r | 159 | 178 |
Summarised aggregate information in respect of the Group’s share of joint ventures and associates is set out below:
RELX’s share | ||
2022 | 2023 | |
£m | £m | |
Revenue | 55 | 123 |
Net profit for the year | 19 | 46 |
Total assets | 190 | 200 |
Total liabilities | (75) | (61) |
Net assets | 115 | 139 |
Goodwill | 44 | 39 |
Total | 159 | 178 |
The Group’s consolidated other comprehensive income includes no income or losses relating to joint ventures and associates in 2023
Property, plant and equipment are stated 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,
| 2022 | 2023 | |||||
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 | 167 | 516 | 683 | 166 | 452 | 618 |
Acquisitions | 1 | - | 1 | - | 1 | 1 |
Capital expenditure | 3 | 33 | 36 | 5 | 25 | 30 |
Disposals | (19) | (140) | (159) | (30) | (88) | (118) |
Exchange translation differences | 14 | 43 | 57 | (7) | (17) | (24) |
At end of yea r | 166 | 452 | 618 | 134 | 373 | 507 |
Accumulated depreciation | ||||||
At start of year | 111 | 441 | 552 | 115 | 377 | 492 |
Charge for the yea r | 6 | 41 | 47 | 5 | 38 | 43 |
Disposals | (12) | (142) | (154) | (23) | (85) | (108) |
Exchange translation differences | 10 | 37 | 47 | (5) | (14) | (19) |
At end of yea r | 115 | 377 | 492 | 92 | 316 | 408 |
Net book amount | 51 | 75 | 126 | 42 | 57 | 99 |
Included in land and buildings is freehold land of £8m (2022: £10m).
194
RELX
Annual Report 2023 | Financial statements and other information
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 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 1 or 2 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.
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
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
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.
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Annual Report 2023 | Notes to the consolidated financial statements
195
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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.
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 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) |
(6,730) | ||||||||
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) |
(269) | ||||||||
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 |
32 | ||||||||
Total | (6,967) | (1,117) | (1,312) | (859) | (803) | (727) | (3,289) | (8,107) |
196
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Annual Report 2023 | Financial statements and other information
AT 31 DECEMBER 2023 | 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 | (6,136) | (1,174) | (762) | (764) | (538) | (792) | (3,037) | (7,067) |
Floating rate borrowings | (220) | (220) | – | – | – | – | – | (220) |
Lease liabilities | (141) | (66) | (45) | (17) | (12) | (6) | (28) | (174) |
(6,497) | ||||||||
Derivative financial liabilities | ||||||||
Cash inflows | 621 | 92 | 14 | 3 | – | – | 730 | |
Cash outflows | (632) | (94) | (14) | (3) | – | – | (743) | |
Forward foreign exchange contracts | (16) | (11) | (2) | – | – | – | – | (13) |
Interest rate derivatives | (104) | (35) | (17) | (13) | (13) | (14) | (27) | (119) |
Cross-currency interest rate swaps | (27) | (34) | (539) | – | – | – | – | (573) |
(147) | ||||||||
Derivative financial assets | ||||||||
Cash inflows | 1,149 | 364 | 199 | 30 | – | – | 1,742 | |
Cash outflows | (1,111) | (339) | (186) | (29) | – | – | (1,665) | |
Forward foreign exchange contracts | 62 | 38 | 25 | 13 | 1 | – | – | 77 |
Interest rate derivatives | 19 | – | 4 | 6 | 5 | 4 | 19 | 38 |
Cross-currency interest rate swaps | – | 7 | 527 | – | – | – | – | 534 |
81 | ||||||||
Total | (6,563) | (1,495) | (809) | (775) | (557) | (808) | (3,073) | (7,517) |
The carrying amount of derivative financial liabilities comprises £130m (2022: £215m) in relation to fair value hedges, £14m (2022:
£32m) in relation to cash flow hedges and £3m (2022: £22m) not designated as hedging instruments, totalling £147m (2022:
£269m), of which £16m (2022: £33m) have been classified as current and £131m (2022: £236m) as non-current liabilities in the
statement of financial position. The carrying amount of derivative financial assets comprises £19m (2022: nil) in relation to fair
value hedges, £53m (2022: £24m) in relation to cash flow hedges and £9m (2022: £8m) not designated as hedging instruments,
totalling £81m (2022: £32m), of which £34m (2022: £21m) have been classified as current and £47m (2022: £11m) as non-current
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 2023, the Group had access to a $3.0bn committed bank facility maturing
in April 2026, which was undrawn. This facility backs up short-term borrowings, and has pricing linked to three ESG performance
targets, all of which were achieved in 2023. All borrowings that mature within the next two years can be covered by the facility and by
utilising available cash resources. The committed bank facility is not subject to a financial covenant and there are no financial
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 2023, including the effect of interest rate swaps, 57% 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 £26m
(2022: £25m), based on the composition of financial instruments including cash, cash equivalents, bank loans and commercial
paper borrowings at 31 December 2023. A 100 basis point rise in short-term interest rates would result in an estimated increase
in net finance costs of £26m (2022: £25m).
The impact on net equity of a theoretical change in interest rates as at 31 December 2023 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 (2022: nil)
and a 100 basis point increase in interest rates would increase net equity by an estimated amount of nil (2022: 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.
RELX
Annual Report 2023 | Notes to the consolidated financial statements
197
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
The Group has assessed the ongoing impact of the Interbank Offered Rates (IBOR) reform and there has been 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 198 details these interest
rate derivatives which, at the year end, swap £1,112m of bonds with weighted average maturity of 4.0 years to a floating rate of
interest previously referencing US dollar LIBOR (3 months) and swap £1,083m of bonds with weighted average maturity of 4.6 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. The interest rate derivatives which referenced US dollar LIBOR have been transitioned to US dollar SOFR since
30 June 2023 with the floating rates shown in the table on page 198 updated accordingly.
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 2023 would decrease the carrying value of net
assets, excluding net borrowings, by £835m (2022: £892m). This would be offset to a degree by a decrease in net borrowings of
£716m (2022: £671m). A strengthening of all currencies by 10% against sterling at 31 December 2023 would increase the carrying
value of net assets, excluding net borrowings, by £835m (2022: £892m) and increase net borrowings by £716m (2022: £671m).
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 £145m (2022: £126m). A 10% strengthening of all foreign currencies
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 2023, cash and cash equivalents totalled £155m (2022: £334m), of which 91% (2022: 96%) was held with banks rated
A-/A3 or better.
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:
2021 | 2022 | 2023 | |
£m | £m | £m | |
Up to one month | 156 | 265 | 259 |
2 to 3 months | 96 | 115 | 130 |
4 to 6 months | 35 | 46 | 56 |
Greater than 6 months | 18 | 23 | 35 |
Total past due | 305 | 449 | 480 |
198
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Annual Report 2023 | Financial statements and other information
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 2023, 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 | ||
2022 | 2023 | |||
Principal | Principal | |||
amount | amount | |||
£m | £m | Fixed rate | Floating rate | |
$700m bond and $700m interest rate swaps maturing 2023 | (579) | - | 3.5% | USD LIBOR+0.8% |
€500m bond and €500m interest rate swaps maturing 2024 | (443) | (433) | 1.0% | Euribor+0.7% |
€600m bond and €600m/$669.3m cross-currency interest rate | ||||
(553) | (524) | 1.3% | USD SOFR+1.5% | |
swaps maturing 2025 | ||||
$200m bond and $200m interest rate swaps maturing 2027 | (165) | - | 7.2% | USD SOFR+6.0% |
$750m bond and $750m interest rate swaps maturing 2030 | (620) | (588) | 3.0% | USD SOFR+1.8% |
€750m bond and €750m interest rate swaps maturing 2031 | - | (650) | 3.8% | Euribor+0.9% |
$500m bond and $500m interest rate swaps maturing 2032 | (413) | (392) | 4.8% | USD SOFR+2.0% |
(2,773) | (2,587) |
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 2021, 2022 and 2023 were as follows:
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES AND | Fair value | ||||
CARRYING VALUES | 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) |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
199
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES AND | Fair value | |||||
CARRYING VALUES | 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) | |
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES | Fair value | |||||
AND CARRYING VALUES | 1 January | movement | Redemption/ | Exchange | 31 December | Carrying |
2023 | gain/(loss) | close-out | gain/(loss) | 2023 | values | |
£m | £m | £m | £m | £m | £m | |
USD debt | 141 | (22) | (16) | (6) | 97 | (871) |
Related interest rate swaps | (143) | 21 | 16 | 6 | (100) | (100) |
(2) | (1) | - | - | (3) | (971) | |
EUR debt | 70 | (61) | - | (2) | 7 | (1,600) |
Related interest rate swaps | (70) | 60 | - | 2 | (8) | (8) |
- | (1) | - | - | (1) | (1,608) | |
Total relating to USD and EUR debt | 211 | (83) | (16) | (8) | 104 | (2,471) |
Total related interest rate swaps | (213) | 81 | 16 | 8 | (108) | (108) |
Net loss on borrowings and related | ||||||
derivatives/total carrying value | (2) | (2) | - | - | (4) | (2,579) |
All fair value hedges were highly effective throughout the three years ended 31 December 2023.
$200m of bonds that were due to be repaid in August 2027 were redeemed early in December 2023. These bonds had been
swapped to floating rate in a fair value hedge relationship as described above, and on the early redemption the fair value
adjustment to the bonds of £16m was expensed in full to the income statement as part of finance costs. The related derivatives
were closed out with a cash outflow of £16m. Gross borrowings as at 31 December 2023 included £1m (2022: £10m) 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. £9m (2022: £3m) of these fair value
adjustments were amortised in the year as a reduction to finance costs, including £6m in relation to the early redemption of the
2027 bonds.
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.
200
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Annual Report 2023 | Financial statements and other information
Movements in the hedge reserve and the cost of hedging reserve in 2022 and 2023, 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 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) |
Gains/(losses) arising in 2023 | 1 | (3) | 31 | 29 |
Amounts recognised in income statement | 1 | - | 17 | 18 |
Exchange translation differences | - | - | - | - |
Hedge reserve at 31 December 2023: (losses)/gains deferred | - | (4) | 40 | 36 |
All cash flow hedges were highly effective throughout the two years ended 31 December 2023.
A deferred tax debit of £9m (2022: credit of £3m) in respect of the above gains and losses at 31 December 2023 was also deferred
in the hedge reserve.
Of the amounts recognised in the income statement in the year, losses of £17m (2022: gains of £18m) were recognised in revenue,
and losses of £1m (2022: £1m) were recognised in finance costs. A tax credit of £4m (2022: debit of £4m) was recognised in relation
to these items.
The deferred gains and losses on foreign currency cash flow hedges at 31 December 2023 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 | |
2024 | 16 | 520 | 18 |
2025 | 14 | 482 | 14 |
2026 | 9 | 263 | 9 |
2027 | 1 | 39 | 1 |
Total | 40 | 1,304 | 42 |
The cash flows for these hedges are expected to occur in line with the recognition of the gains and losses in the income statement,
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.
2022 | 2023 | |
£m | £m | |
Raw materials | 3 | 1 |
Pre-publication costs | 264 | 278 |
Finished goods | 42 | 39 |
Total | 309 | 318 |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
201
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
2022 | 2023 | |
£m | £m | |
Trade receivables | 2,193 | 2,144 |
Loss allowance | (118) | (119) |
2,075 | 2,025 | |
Prepayments and accrued income | 310 | 288 |
Current tax receivable | 15 | 6 |
Net finance lease receivable | 5 | 4 |
Total | 2,405 | 2,323 |
Trade receivables are predominantly non-interest bearing and their carrying amounts approximate to their fair value.
2022 | 2023 | |
£m | £m | |
At start of yea r | 106 | 118 |
Charge for the year | 11 | 8 |
Trade receivables written off | (7) | (3) |
Exchange translation differences | 8 | (4) |
At end of year | 118 | 119 |
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.
2022 | 2023 | |
£m | £m | |
Trade payables | 129 | 171 |
Accruals | 844 | 842 |
Social security and other taxes | 159 | 174 |
Other payables | 517 | 487 |
Deferred income | 2,368 | 2,297 |
Total | 4,017 | 3,971 |
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
202
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Annual Report 2023 | Financial statements and other information
| 2022 | 2023 | |||||
Falling due | Falling due | Falling due | Falling due | |||
within | in more than | within | in 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 pape r | 102 | - | 102 | 220 | - | 220 |
Term debt | - | 3,641 | 3,641 | 606 | 2,940 | 3,546 |
Lease liabilities | 67 | 115 | 182 | 57 | 84 | 141 |
Term debt in fair value hedging relationships | 576 | 1,978 | 2,554 | 430 | 2,041 | 2,471 |
Term debt previously in fair value hedging relationships | 125 | 126 | 251 | - | 119 | 119 |
Total | 870 | 5,860 | 6,730 | 1,313 | 5,184 | 6,497 |
The total fair value of financial liabilities measured at amortised cost (excluding lease liabilities) is £3,610m (2022: £3,451m).
The total fair value of term debt in fair value hedging relationships is £2,576m (2022: £2,688m). The total fair value of term debt
previously in fair value hedging relationships is £122m (2022: £257m).
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.
Analysis by year of repayment | ||||||||
| 2022 | 2023 | |||||||
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 | 102 | 701 | 67 | 870 | 220 | 1,036 | 57 | 1,313 |
Within 1 to 2 years | - | 1,045 | 24 | 1,069 | - | 620 | 19 | 639 |
Within 2 to 3 years | - | 623 | 25 | 648 | - | 647 | 18 | 665 |
Within 3 to 4 years | - | 660 | 24 | 684 | - | 432 | 17 | 449 |
Within 4 to 5 years | - | 595 | 17 | 612 | - | 689 | 9 | 698 |
After 5 years | - | 2,822 | 25 | 2,847 | - | 2,712 | 21 | 2,733 |
After 1 yea r | - | 5,745 | 115 | 5,860 | - | 5,100 | 84 | 5,184 |
Total | 102 | 6,446 | 182 | 6,730 | 220 | 6,136 | 141 | 6,497 |
Short-term bank loans, overdrafts and commercial paper were backed up at 31 December 2023 by a $3.0bn (£2.3bn) committed
bank facility maturing in 2026. The committed bank facility was undrawn.
In June 2023, €750m of euro denominated term debt was issued with a coupon of 3.75% and a maturity of eight years.
Analysis by currency | ||||||||
| 2022 | 2023 | |||||||
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 dolla r | 2 | 3,160 | 65 | 3,227 | 188 | 2,234 | 37 | 2,459 |
Pound sterling | - | - | 40 | 40 | - | - | 29 | 29 |
Euro | - | 3,286 | 57 | 3,343 | 24 | 3,902 | 47 | 3,973 |
Other currencies | 100 | - | 20 | 120 | 8 | - | 28 | 36 |
Total | 102 | 6,446 | 182 | 6,730 | 220 | 6,136 | 141 | 6,497 |
Included in the US dollar amounts for term debt above is £501m (2022: £498m) of debt denominated in euros (€600m) (2022: €600m)
that was swapped into US dollars on issuance and against which there are related derivative financial instruments, which, as at
RELX
Annual Report 2023 | Notes to the consolidated financial statements
203
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
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.
Right-of-use assets |
||
2022 |
2023 |
|
£m |
£m |
|
At start of yea r |
161 |
145 |
Additions |
34 |
38 |
Acquisitions |
3 |
- |
Remeasurement |
8 |
6 |
Disposals |
(8) |
(7) |
Depreciation |
(63) |
(65) |
Exchange translation differences |
10 |
(4) |
At end of year |
145 |
113 |
Lease liability |
||
2022 |
2023 |
|
£m |
£m |
|
Current |
||
Property |
(65) |
(55) |
Non-property |
(2) |
(2) |
Non-current |
||
Property |
(113) |
(82) |
Non-property |
(2) |
(2) |
Total |
(182) |
(141) |
Interest expense on the lease liabilities recognised within finance costs was £6m (2022: £6m; 2021: £8m).
As at 31 December 2023, RELX was committed to leases with future cash outflows totalling £6m (31 December 2022: £32m) which
had not yet commenced and as such are not accounted for as a liability as at 31 December 2023. 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:
2022 |
2023 |
|
£m |
£m |
|
Net finance lease receivable |
5 |
4 |
Short-term and low-value lease expenses have been included in note 3.
204
RELX
Annual Report 2023 | Financial statements and other information
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 – ORDINARY SHARES OF UK 14 ⁵¹/₁₁₆ PENCE EACH ALLOTTED, |
2022 |
2023 |
||
ISSUED AND FULLY PAID |
No. of shares |
£m |
No. of shares |
£m |
At start of year |
1,984,961,632 |
286 |
1,934,880,088 |
279 |
Issue of ordinary shares |
1,918,456 |
- |
3,027,517 |
- |
Cancellation of ordinary shares |
(52,000,000) |
(7) |
(31,000,000) |
(4) |
At end of year |
1,934,880,088 |
279 |
1,906,907,605 |
275 |
NUMBER OF ORDINARY SHARES |
Year ended 31 December |
|||
2022 |
2023 |
|||
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 |
1,929.4 |
1,934.9 |
(25.4) |
1,909.5 |
Issue of ordinary shares |
1.9 |
3.0 |
- |
3.0 |
Repurchase of ordinary shares |
(21.7) |
- |
(30.9) |
(30.9) |
Net purchase of shares by the Employee Benefit Trust |
(0.1) |
- (0.1) |
(0.1) |
|
Cancellation of ordinary shares |
- |
(31.0) |
31.0 |
- |
At end of year |
1,909.5 |
1,906.9 |
(25.4) |
1,881.5 |
* At 31 December 2023 the total shares in issue net of treasury shares is 1,881,531,883 (2022: 1,909,526,620).
All of the RELX PLC ordinary shares rank equally with respect to voting rights and rights to receive dividends, except for the shares
held in treasury, which do not attract voting or dividend rights. There are no restrictions on the rights to transfer shares.
The issue of ordinary shares in the year relates to the exercise of share options.
During the year, RELX PLC repurchased 30.9m (2022: 21.7m; 2021: nil) RELX PLC ordinary shares for an average price of 2,588p.
Total consideration for these repurchased shares was £800m (2022: £500m; 2021: nil). On 8 December 2023, RELX PLC announced
a non-discretionary programme to repurchase further ordinary shares up to the value of £150m. At 31 December 2023, an accrual
of £150m was recognised in respect of this non-discretionary commitment. A further 4.6m RELX PLC ordinary shares have been
repurchased in January and February 2024 under this programme.
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 2m shares for a total cost of £50m (2022: £50m; 2021: £1m). At 31 December 2023, shares held by the Employee Benefit
Trust were £117m (2022: £101m; 2021: £86m) at cost.
At 31 December 2023, RELX PLC shares held in treasury related to 5,663,529 (2022: 5,553,401; 2021: 5,448,564) RELX PLC ordinary
shares held by the Employee Benefit Trust; and 19,712,193 (2022: 19,800,067; 2021: 50,087,679) RELX PLC ordinary shares held by
RELX
Annual Report 2023 | Notes to the consolidated financial statements
205
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
Translation |
Hedge |
Other |
|||
Total |
reserve |
reserve |
reserves |
Total |
|
2022 |
2023 |
2023 |
2023 |
2023 |
|
£m |
£m |
£m |
£m |
£m |
|
At start of year |
2,331 |
677 |
(8) |
1,725 |
2,394 |
Profit attributable to shareholders |
1,634 |
- |
- |
1,781 |
1,781 |
Dividends paid |
(983) |
- |
- |
(1,059) |
(1,059) |
Actuarial gains on defined benefit pension schemes |
164 |
- |
- |
(75) |
(75) |
Fair value movements on cash flow hedges |
(18) |
- |
29 |
- |
29 |
Transfer to profit from cash flow hedge reserve |
(17) |
- |
18 |
- |
18 |
Tax recognised in other comprehensive income |
(35) |
- |
(12) |
19 |
7 |
Exchange differences on translation of foreign operations |
427 |
(285) |
- |
– |
(285) |
Cancellation of shares |
(1,120) |
- |
- |
(673) |
(673) |
Increase in share based remuneration reserve (including tax) |
47 |
- |
- |
77 |
77 |
Settlement of share awards |
(35) |
- |
- |
(34) |
(34) |
Disposal of non ‐ controlling interests |
(1) |
- |
- |
- |
- |
At end of year |
2,394 |
392 |
27 |
1,761 |
2,180 |
The closing balance of other reserves in the consolidated statement of changes in equity of £1,788m (2022: £1,717m) is comprised
of the hedge reserve (£27m; 2022: £(8)m) and other reserves (£1,761m; 2022: £1,725m).
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 2023 were £1,059m (2022: £983m). Refer to note 13 for further details.
31m (2022: 52m) RELX PLC ordinary shares held in treasury were cancelled resulting in a transfer of £673m between other
reserves and shares held in treasury.
The decrease of £285m in the translation reserve is due to the net effect of changes in exchange rates during the period which
206
RELX
Annual Report 2023 | Financial statements and other information
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 and associates comprise sales of goods and services of £17.4m (2022: £0.4m; 2021: nil) and the
rendering and receiving of goods and services of nil (2022: nil; 2021: £0.2m). As at 31 December 2023, amounts owed by joint
ventures and associates were £6.6m (2022: £4.2m; 2021: £2.4m) and amounts due to joint ventures and associates were £2.3m
(2022: £1.2m; 2021: £1.4m). See note 6 for details of the Group’s participation in defined benefit pension schemes.
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 |
2021 |
2022 |
2023 |
||||
£m |
£m |
£m |
|||||
Salaries, other short-term employee benefits and non-executive fees |
7 |
7 |
8 |
||||
Post-employment benefits |
1 |
- |
- |
||||
Share based remuneration* |
8 |
7 |
14 |
||||
Total |
16 |
14 |
22 |
||||
EXECUTIVE DIRECTORS |
Annual |
Share based |
|||||
Salary |
Benefits |
incentive |
remuneration* |
Pension* |
Total |
||
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
£’000 |
||
Total Executive Directors |
2021 |
2,085 |
97 |
3,604 |
7,953 |
774 |
14,513 |
2022 |
2,137 |
97 |
3,251 |
6,857 |
268 |
12,610 |
|
2023 |
2,190 |
97 |
3,808 |
14,354 |
241 |
20,690 |
|
* The figures for share based awards are calculated in accordance with the methodology set out in the UK adopted International Accounting Standards and
International Financial Reporting Standards as issued by the International Accounting Standards Boards (IASB). 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.
2021 |
2022 |
2023 |
|
NON-EXECUTIVE DIRECTORS |
£’000 |
£’000 |
£’000 |
Fees and benefits |
1,598 |
1,566 |
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 2023 to former directors (2022: nil;
2021: nil). No loans, advances or guarantees have been provided on behalf of any director. The aggregate gains made by Executive
The following exchange rates have been applied in preparing the consolidated financial statements:
Statement of |
|||||
| Income statement |
financial position |
||||
2021 |
2022 |
2023 |
2022 |
2023 |
|
Euro to sterling |
1.16 |
1.17 |
1.15 |
1.13 |
1.15 |
US dollar to sterling |
1.38 |
1.24 |
1.24 |
1.21 |
1.28 |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
207
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
A full list of related undertakings (comprising subsidiaries, joint ventures, associates and other significant holdings) as at
31 December 2023 is set out below. Unless where otherwise stated, all undertakings are held indirectly by RELX PLC, and the
effective interest held by the Group is 100%.
Share |
Reg |
|
Company name |
class |
office |
Australia |
||
Agricultural Insights Pty Ltd |
Ordinary |
AUS1 |
LNRS Data Services (Australia) Pty Ltd |
Ordinary |
AUS1 |
Reed Exhibitions Australia Pty Limited |
Ordinary |
AUS2 |
RELX Holdings Australia Pty Ltd |
Ordinary |
AUS2 |
RELX Trading Australia Pty Limited |
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 Limiteda |
Quotas |
BRA1 |
Fircosoft Brasil Consultoria e Servicos de Informatica Ltda |
Quotas |
BRA2 |
Gestora de Inteligencia de Credito S.A. (20%) |
Common, Preferred |
BRA8 |
LexisNexis Informacoes e Sistemas Empresariais Limiteda |
Quotas |
BRA6 |
LexisNexis Servicos de Analise de Risco Limiteda |
Quotas |
BRA7 |
MLex Brasil Midia Mercadologica Limiteda |
Quotas |
BRA4 |
Reed Exhibitions Alcantara Machado Limiteda |
Quotas |
BRA3 |
SST Software do Brasil Limiteda |
Quotas |
BRA5 |
Canada |
||
Corps Events IntCan |
Class A Voting |
CAN3 |
Elsevier Canada Inc. |
Common |
CAN2 |
Human API Technologies Inc. |
Voting |
CAN4 |
LexisNexis Canada Inc. |
Class B |
CAN1 |
PCLaw Time Matters Canada Inc. |
Common |
CAN5 |
RELX Canada Limited |
Common |
CAN1 |
China |
||
Bakery China Exhibitions Co., Limited (25%) |
Ordinary |
CHN1 |
Beijing Medtime Elsevier Education Technology Co., Limited |
Common |
CHN2 |
(49%) |
||
Beijing Reed Elsevier Science and Technology Co Ltd 1 |
Common |
CHN20 |
C-One Energy (Guangzhou) Co., Limited |
Ordinary |
CHN5 |
Jingxunlingsi (Beijing) Information Technology Co Ltd 1 |
Ordinary |
CHN4 |
KeAi Communications Co., Limited (49%) |
Ordinary |
CHN15 |
LexisNexis Information Technology Co. Limited |
Ordinary |
CHN4 |
LexisNexis Risk Solutions (Shanghai) Information |
Common |
CHN7 |
Technologies Co. Limited |
||
LNRS Data Services (Shanghai) Co Limited |
Ordinary |
CHN13 |
Peili Computer Co Ltd 1 |
Ordinary |
CHN13 |
Reed Elsevier Information Technology (Beijing) Co., Limited |
Common |
CHN3 |
Reed Exhibitions (China) Co., Limited |
Ordinary |
CHN4 |
Reed Exhibitions (Shanghai) Co., Limited |
Ordinary |
CHN10 |
Reed Exhibitions Hengjin Co., Limited (51%) |
Ordinary |
CHN12 |
Reed Exhibitions Kuozhan (Shanghai) Co., Limited (60%) |
Ordinary |
CHN8 |
Reed Huabai Exhibitions (Beijing) Co., Limited (51%) |
Ordinary |
CHN4 |
Reed Huabo Exhibitions (Shenzhen) Co., Limited (65%) |
Ordinary |
CHN16 |
Reed Huaqun Exhibitions Co., Limited (52%) |
Ordinary |
CHN4 |
Reed Sinopharm Exhibitions Co., Limited (50%) |
Ordinary |
CHN4 |
RX (China) Investment Co., Limited |
Ordinary |
CHN9 |
RX (Shenzhen) Co., Limited |
Ordinary |
CHN6 |
RX Huabo (Shenzhen) Technology Co. Limited 1 |
Ordinary |
CHN19 |
RX Technology (Shanghai) Co. Limited 1 |
Ordinary |
CHN18 |
Shanghai Datong Medical Information Technology Co., |
Ordinary |
CHN17 |
Limited |
||
Shanghai SinoReal Exhibitions Co., Limited (27.5%) |
Ordinary |
CHN11 |
Z&R Exhibitions Co., Limited (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 |
||
Case Law Analytics SAS |
Ordinary |
FRA9 |
Closd SAS |
Ordinary |
FRA8 |
Corp Events SARL |
Ordinary |
FRA3 |
Elsevier Holding France SAS |
Ordinary |
FRA1 |
Elsevier Masson SAS |
Ordinary |
FRA1 |
Fircosoft SAS |
Ordinary |
FRA7 |
GIE EDI Data (83%) |
Ordinary |
FRA2 |
GIE Juris Data |
Ordinary |
FRA2 |
Jarvis SAS |
Ordinary |
FRA10 |
LexisNexis Business Information Solutions SA |
Ordinary |
FRA2 |
LexisNexis Business Information Solutions Holding SA |
Ordinary |
FRA4 |
LexisNexis International Development & Services SAS |
Ordinary |
FRA2 |
LexisNexis SA |
Ordinary |
FRA2 |
Reed Exhibitions ISG SARL |
Ordinary |
FRA5 |
RELX France SA |
Ordinary |
FRA3 |
RELX France Services SAS |
Ordinary |
FRA7 |
RX France SAS |
Ordinary |
FRA3 |
SAFI SA (50%) |
Ordinary |
FRA6 |
Germany |
||
Elsevier GmbH |
Ordinary |
DEU3 |
Elsevier Information Systems GmbH |
Ordinary |
DEU2 |
IPlytics GmbH |
Ordinary |
DEU7 |
LexisNexis GmbH |
Ordinary |
DEU4 |
PatentSight GmbH |
Ordinary |
DEU6 |
RELX Deutschland GmbH |
Ordinary |
DEU1 |
RX Deutschland GmbH |
Ordinary |
DEU1 |
Tschach Solutions GmbH |
Ordinary |
DEU5 |
Hong Kong |
||
Ascend China Holding Limited |
Ordinary |
HNK4 |
JC Exhibition and Promotion Limited (65%) |
Ordinary |
HNK4 |
JYLN Sager Limited |
Ordinary |
HNK2 |
LNRS Data Services (China) Limited |
Ordinary |
HNK1 |
Reed Exhibitions Limited |
Ordinary |
HNK4 |
RELX (Greater China) Limited |
Ordinary |
HNK3 |
India |
||
FircoSoft India Private Limited (Liquidation in progress) |
Ordinary |
IND2 |
Reed Elsevier Publishing (India) Private Limited |
Ordinary |
IND1 |
Reed Manch Exhibitions Private Limited |
Ordinary |
IND1 |
Reed Triune Exhibitions Private Limited (72%) |
Ordinary |
IND3 |
RELX India Private Limited |
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 (Ireland) Limited |
Ordinary |
IRL2 |
LexisNexis Risk Solutions (Europe) Limited |
Ordinary |
IRL1 |
RELX International Finance Designated Activity Company |
Ordinary |
IRL1 |
Israel |
||
LexisNexis Israel Ltd |
Ordinary |
ISR1 |
Italy |
||
Elsevier SRL |
Registered Capital |
ITA1 |
ICIS Italia SRL |
Ordinary |
ITA2 |
RX Italy SRL |
Ordinary |
ITA1 |
Japan |
||
Elsevier Japan KK |
Ordinary |
JPN1 |
LexisNexis Japan KK |
Ordinary |
JPN2 |
PatentSight Japan Inc. |
Common |
JPN2 |
RX Japan Ltd |
Ordinary |
JPN2 |
208
RELX
Annual Report 2023 | Financial statements and other information
Share | Reg | |
Company name | class | office |
Korea (Republic of) | ||
Elsevier Korea LLC | Ordinary | KOR1 |
LexisNexis Legal and Professional Service Korea Limited | Ordinary | KOR2 |
Reed Exhibitions Korea Limited | Ordinary | KOR3 |
Reed Exporum Limited (60%) | Ordinary | KOR4 |
Reed K. Fairs Limited (70%) | Ordinary | KOR3 |
Macau | ||
Reed Exhibitions Macau Limited | Ordinary | MAC1 |
Malaysia | ||
LexisNexis Malaysia Sdn Bhd | Ordinary | MYS1 |
Mexico | ||
Human API Technologies, S. de R.L. de C.V. | Fixed | MEX3 |
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 Limited | 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 | RUS1 |
LexisNexis LLC (Liquidation in progress) | Participation Shares | RUS2 |
Singapore | ||
Elsevier (Singapore) Pte Limited | Ordinary | SGP1 |
LexisNexis Philippines Pte Limited | Ordinary-B, Preference SGP2 | |
LNRS Data Services Pte Limited | Ordinary | SGP1 |
RE (HAPL) Pte Limited | Ordinary | SGP1 |
RELX (Singapore) Pte Limited | Ordinary | SGP2 |
South Africa | ||
Globalrange SA (Pty) Ltd | Ordinary | ZAF1 |
LexisNexis (Pty) Limited (78%) | Ordinary | ZAF2 |
LexisNexis Risk Management (Pty) Limited (78%) | Ordinary | ZAF2 |
LexisNexis South Africa Shared Services (Pty) Limited | Ordinary | ZAF2 |
Reed Events Management (Pty) Limited (90%) | Ordinary | ZAF2 |
Reed Exhibitions (Pty) Limited (90%) | Ordinary | ZAF2 |
Reed Exhibitions Group (Pty) Limited (90%) | Ordinary | ZAF2 |
Reed Venue Management (Pty) Limited (90%) | Ordinary | ZAF2 |
RELX (Pty) Limited | Ordinary | ZAF2 |
Spain | ||
Elsevier Espana S.L.U | Participations | ESP1 |
Share | Reg | |
Company name | class | office |
Sweden | ||
Behaviometrics AB | Ordinary | SWE1 |
Taiwan | ||
Elsevier Taiwan LLC | Ordinary | TWN1 |
Thailand | ||
Reed Tradex Company Limited (49%) | Ordinary, Preference | THA1 |
RELX Holding (Thailand) Co., Limited | Ordinary | THA2 |
RELX Information Analytics (Thailand) Co., Limited | Ordinary | THA3 |
Turkey | ||
Elsevier STM Bilgi Hizmetleri Limited Sirketi | Ordinary | TUR1 |
Mack Brooks Fuarcilik A.S. | Registered Capital | TUR2 |
Reed Tuyap Fuarcilik A.S. (50%) | A Ordinary, B Ordinary | TUR3 |
United Arab Emirates | ||
Reed Exhibitions FZ-LLC | Ordinary | UAE1 |
RELX Middle East FZ-LLC | Ordinary | UAE2 |
United Kingdom | ||
Agricultural Insights Ltd | Ordinary | GBR2 |
Aistemos Limited | Ordinary | GBR4 |
Butterworths Limited | Ordinary | GBR4 |
Cordery Compliance Limited (71%) | Ordinary | GBR4 |
Cordery Limited (71%) | Ordinary | GBR4 |
Crediva Limited | Ordinary | GBR5 |
Digital Foundry Network Limited (50%) | Ordinary | GBR3 |
Elsevier Limited | Ordinary | GBR6 |
Emailage Limited (Liquidation in progress) | Ordinary | GBR5 |
Gamer Network Limited | Ordinary | GBR3 |
Hookshot Media Ltd (23.5%) | Ordinary | GBR7 |
Interfolio UK Ltd | Ordinary | GBR8 |
LexisNexis Risk Solutions UK Limited | Ordinary | GBR5 |
LNRS Data Services Holdings Limited | Ordinary | GBR1 |
LNRS Data Services Limited | Ordinary | GBR2 |
Mack-Brooks Exhibitions Limited | Ordinary | GBR3 |
MCM Expo Ltd (Liquidation in progress) | Ordinary | GBR3 |
MLex Limited | Ordinary | GBR4 |
Offshore Europe (Management) Limited | Ordinary | GBR3 |
Offshore Europe Partnership (50%) | Partnership Interest | GBR3 |
Out There Gaming Limited (70%) | Ordinary | GBR3 |
RE (HPL) Limited | Ordinary | GBR1 |
RE (RCB) Limited | Ordinary | GBR1 |
RE Secretaries Limited | Ordinary | GBR1 |
RE (SOE) Limited | Ordinary | GBR3 |
Reed Events Limited | Ordinary | GBR3 |
Reed Exhibitions Limited | Ordinary | GBR3 |
Reed Nominees Limited | Ordinary | GBR1 |
RELX Finance Limited | Ordinary | GBR1 |
RELX Group plc* | Ordinary | GBR1 |
RELX (Holdings) Limited | Ordinary | GBR1 |
RELX (Investments) plc | Ordinary | GBR1 |
RELX Overseas Holdings Limited | Ordinary | GBR1 |
RELX (UK) Limited | Ordinary | GBR1 |
REV GP (UK) LLP (50%) | Membership Interest | GBR1 |
REV Venture Partners Limited | Ordinary | GBR1 |
REV V LP | Partnership Interest | GBR1 |
SciBite Limited | Ordinary | GBR8 |
Tracesmart Limited | Ordinary | GBR5 |
TruNarrative Ltd (Liquidation in progress) | Ordinary | GBR5 |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
209
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
Share | Reg | |
Company name | class | office |
United States | ||
Accuity Asset Verification Services Inc. | Common Stock | USA1 |
Accuity Inc. | Common Stock | USA1 |
Agricultural Insights LLC | Membership Interest USA1 | |
American Textile Machinery Exhibition-International, | Common Stock | USA2 |
Inc. (40%) | ||
Aries Systems Corporation | Common Stock | USA2 |
Dunlap-Hanna Publishers (50%) | Partnership Interest | USA2 |
Elsevier Holdings Inc. | Common Stock | USA2 |
Elsevier Inc. | Common Stock | USA2 |
Elsevier STM Inc. | Common Stock | USA2 |
Emailage Corporation | Common Stock | USA1 |
Enclarity, Inc. | Common Stock | USA1 |
Gaming Business Asia, LLC (50%) | Membership Interest USA2 | |
Health Market Science, Inc. | Common Stock | USA1 |
HumanAPI Inc. | Common Stock | USA1 |
ID Analytics, LLC | Membership Interest USA1 | |
Interfolio, Inc. | Common Stock | USA2 |
Interfolio Data 180, LLC | Membership Interest USA2 | |
Jarvis Software LLC | Membership Interest USA2 | |
Knovel Corporation | Common Stock | USA2 |
Knowable Inc (75%) | Common Stock | USA2 |
Legal InQuery Solutions Inc. | Common Stock | USA5 |
LexisNexis Claims Solutions Inc. | Common Stock | USA1 |
LexisNexis Coplogic Solutions Inc. | Common Stock | USA1 |
LexisNexis of Puerto Rico, Inc. | Common Stock | USA7 |
LexisNexis Risk Data Management, LLC | Membership Interest USA1 | |
LexisNexis Risk Holdings Inc. | Common Stock | USA1 |
LexisNexis Risk Solutions Inc. | Common Stock | USA1 |
LexisNexis Risk Solutions FL Inc. | Common Stock | USA1 |
LexisNexis Special Services Inc. | Common Stock | USA4 |
LexisNexis VitalChek Network Inc. | Common Stock | USA1 |
LNRS Data Services Inc. | Common Stock | USA1 |
Matthew Bender & Company, Inc. | Common Stock | USA2 |
MLex US, Inc. | Common Stock | USA2 |
PCLaw Time Matters LLC (51%) | Membership Interest USA2 | |
Portfolio Media, Inc. | Common Stock | USA2 |
Reed Technology and Information Services LLC | Membership Interest USA2 | |
RELX Capital Inc. | Common Stock | USA3 |
RELX Inc. | Common Stock | USA2 |
RELX Risks Inc. | Common Stock | USA6 |
REV IV Partnership LP | Partnership Interest | USA3 |
SAFI Americas LLC (50%) | Membership Interest USA2 | |
SageStream, LLC | Membership Interest USA1 | |
The Reed Elsevier Ventures 2011 Partnership LP | Partnership Interest | USA3 |
The Reed Elsevier Ventures 2013 Partnership LP | Partnership Interest | USA3 |
The Remick Publishers (50%) | Partnership Interest | USA2 |
ThreatMetrix, Inc. | Common Stock | USA1 |
World Compliance, Inc. | Common Stock | USA1 |
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: | Trabrennstrasse 2A,1020, Vienna | |
AUT3: | Am Messezentrum 6, 5021, Salzburg | |
AUT4: | Am Messezentrum 7, 5020, Salzburg | |
Belgium | ||
BEL1: | Oudenaardseheerweg 129, 9810 Nazareth | |
Brazil | ||
BRA1: | Av. Almirante Barroso 81, Sala 33A114, 20031-004 Centro, Rio de Janeiro | |
BRA2: | Rua Bela Cintra, 1200, Andar 6 Conj 61 A 64, Consolacao, Sao Paulo, 01415-002 | |
BRA3: | Rua Bela Cintra no. 1200, 10th floor, Sao Paulo, 01415-002 | |
BRA4: | Avenida Paulista 2300, Andar Pilotis, Sao Paulo, SP 01 310-300 | |
BRA5: | Rua Coronel Fonseca, 203A – Centro Botucatu, Sao Paulo, 18600-200 | |
BRA6: | Rua Funchal, 538, 4º Andar, Conj. 42, Salas 4, 5 e 6, Vila Olímpia, Sao Paulo, | |
04551-060 | ||
BRA7: | Alameda Rio Negro, 161 Alphaville Industrial, Barueri, Sao Paulo 06.454-000 | |
BRA8: | Alameda Araguaia, Alphaville, Conjuntos 81-84, Centro Empresarial Araguaia, | |
Barueri, Sao 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 | |
CAN3: | 555 Richmond Street West, Suite 405, Toronto ON M5V 3B1 | |
CAN4: | 20th Floor, 250 Howe Street, Vancouver BC, V6C 3R8 | |
CAN5: | 199 Bay Street, 4000, Toronto, Ontario, M5L 1A9 | |
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 Centre, Room 1504-1505, 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, | |
Shenzhen | ||
CHN7: | Unit A-1, 5th Floor, No. 567, Tianshan West Road, Changning District, | |
Shanghai | ||
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, | |
200000 | ||
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 726, 1256-1258 Wan Rong Road, Jing An District, Shanghai | |
CHN19: | Room 1801, 168 Fuhua No. 3 Road , Fu Tian District, Shenzhen | |
CHN20: | Oriental Plaza, No. 1 East Chang An Ave, Tower W1, 7th Floor, Unit 12C, Dong | |
Cheng District, Beijing, 100738 | ||
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 |
210
RELX
Annual Report 2023 | Financial statements and other information
Registered offices | |
France | |
FRA1: | 65 rue Camille Desmoulins, 92130, Issy les Moulineaux |
FRA2: | 141 rue de Javel, 75015, Paris |
FRA3: | 52 Quai de Dion Bouton, 92800, Puteaux |
FRA4: | Immeuble Technopolis, 350 rue Georges Besse, 30000, Nimes |
FRA5: | 27 Quai Alphonse Le Gallo, 92100, Boulogne-Billancourt |
FRA6: | 6-8 rue Chaptal, 75009, Paris |
FRA7: | Immeuble Vivacity, 151-155 rue de Bercy, 75012, Paris |
FRA8: | 168 rue Saint-Denis, 75002, Paris |
FRA9: | 10 bis, quai Turenne, 44000, Nantes |
FRA10: | 9 rue du Quatre-Septembre, 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: | Stephanienstrasse 86, 76133 Karlsruhe |
DEU6: | Joseph-Schumpeter-Allee 33, 53227, Bonn |
DEU7: | Ohlauer Str. 43, Aufgang C, c/o Thunderbolt Collective, 10999, Berlin |
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 Building, 21 Barakhamba Road, New |
Delhi, Delhi, 110001 | |
IND2: | Ascendas International Tech Park, Crest Building 12th Floor, Taramani |
Road, Taramani, Chennai, 600113 | |
IND3: | 25, 3rd floor, 8th Main Road, Vasanth Nagar, 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: | Riverside One, Sir John Rogerson’s Quay, Dublin 2, DO2 X576 |
IRL2: | 1F Cedarhurst Building, Arkle Road, Sandyford Business Park, Dublin, |
D18 X6N2 | |
Israel | |
ISR1: | Meitar, Attorneys at Law, 16 Abba Hillel Road, Ramat Gan 5250608 |
Italy | |
ITA1: | Via Marostica 1, 20146, Milan |
ITA2: | Studio Colombo e Associati, Via San Damiano 9, 20122, Milan |
Japan | |
JPN1: | 1-9-15 Higashi-Azabu, Minato-Ku, Tokyo, 106-044 |
JPN2: | 11F, Yaesu Central Tower, Tokyo Midtown Yaesu, 2-2-1 Yaesu Chuo-ku, |
Tokyo 104-0028 | |
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 |
Registered offices | |
Malaysia | |
MYS1: | Suite 29-1, Level 29, Vertical Corporate, Tower B, Avenue 10, The |
Vertical, 59200 Bangsar South City, Kuala Lumpur | |
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 | |
MEX3: | Av. Miguel Hidalgo y Costilla, 1995 piso 6 oficina 10 , Guadalajara, |
Jalisco, 46600 | |
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: | Building 1, Facility 1, Room 80, 9/26 Shchipok St., Municipal District |
Zamoskvorechye, 115054, Moscow | |
RUS2: | 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 |
South Africa | |
ZAF1: | Ground Floor Pebble Beach Building, Fourways Golf Park, 32 Roos |
Street, Sandton, 2191 | |
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 8, 977 75 Lulea |
Taiwan | |
TWN1: | 9F., No. 96, Sec. 2, Zhongshan N. Rd., Zhongshan Dist, 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, Klongtoey, Bangkok, 10110 | |
THA3: | The Offices at Central World, Office R06, 999/9 Rama I Road, |
Pathumwan, Bangkok 10330 | |
Turkey | |
TUR1: | Maslak Mah. Bilim Sokak Sun Plaza Kat:13 Sisli-Maslak, Istanbul |
TUR2: | Esentepe Mah. Ali Kaya Sk. Polat Plaza B Blok No: 1 /1b Sisli, Istanbul |
TUR3: | Tuyap Fuar ve Kongre Merkezi, Cumhuriyet Mah. Hadimkoy Yolu Cad. |
No:9/4 , 34500 Buyukcekmece, Istanbul | |
United Arab | |
Emirates | |
UAE1: | Office 303, 3rd Floor Arjaan Office Tower Al Sufouh Complex, PO Box |
502425, Dubai Media City, Dubai | |
UAE2: | Al Sufouh Complex, Office nos. 404, 405, 406 & 407, Dubai Media City, |
Dubai |
RELX
Annual Report 2023 | Notes to the consolidated financial statements
211
Overview
Market segments
Corporate Responsibility
Financial review
Governance
and shareholder information
Financial statements
Registered offices | |
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: | 125 London Wall, London, EC2Y 5AS |
GBR7: | 5 Oakwood Drive, Loughborough, LE11 3QF |
GBR8: | Biodata Innovation Centre Wellcome Genome Campus, Hinxton, |
Cambridge, CB10 1DR | |
United States | |
USA1: | 1000 Alderman Dr., Alpharetta, GA 30005 |
USA2: | 230 Park Ave, New York, NY 10169 |
USA3: | Suite 501, 1105 North Market St, Wilmington, DE 19801 |
USA4: | 1150 18th St, NW, Washington, DC 20036 |
USA5: | 9443 Springboro Pike, Miamisburg, OH 45342 |
USA6: | c/o Aon Insurance Managers (USA) Inc, 100 Bank Street, Suite 630 |
Burlington, Vermont 05401 | |
USA7: | #1095 Wilson, Ste 3, San Juan, PR 00907 |
Vietnam | |
VIE1: | 2nd Floor, Kova Center, 92G-92H Nguyen Huu Canh Street, Ward no. 22, |
District. Binh Thanh, Ho Chi Minh City |
*
Directly held by the Company
1
Nominee companies controlled by the group based on management's
assessments
The following UK subsidiaries will take advantage of the audit
exemption set out within Section 479A of the Companies Act
2006 supported by guarantees issued by RELX PLC over their
liabilities for the year ended 31 December 2023.
Registration | |
Company name | number |
Aistemos Limited | 8644182 |
Butterworths Limited | 2826955 |
Crediva Limited | 6567484 |
Interfolio UK Ltd | 7820803 |
Mack-Brooks Exhibitions Limited | 967560 |
MLex Limited | 5488651 |
Offshore Europe (Management) Limited | 2318214 |
RE (RCB) Limited | 3396524 |
RE (SOE) Limited | 2330299 |
Reed Events Limited | 5893942 |
RELX (Holdings) Limited | 5807690 |
RELX (Investments) plc | 5810043 |
RELX Overseas Holdings Limited | 9489059 |
REV Venture Partners Limited | 4226986 |
SciBite Limited | 7778456 |
Tracesmart Limited | 3827062 |
2019 | 2020 | 2021 | 2022 | 2023 | |
£m | £m | £m | £m | £m | |
RELX consolidated financial information | |||||
Growth rates | |||||
Underlying revenue growth | +4% | -9% | +7% | +9% | +8% |
Underlying adjusted operating profit growth | +5% | -18% | +13% | +15% | +13% |
Adjusted earnings per share growth (at constant currency) | +7% | -15% | +17% | +10% | +11% |
Adjusted figures ¹ | |||||
Revenue | 7,874 | 7,110 | 7,244 | 8,553 | 9,161 |
EBITDA | 2,935 | 2,567 | 2,697 | 3,174 | 3,544 |
Operating profit | 2,491 | 2,076 | 2,210 | 2,683 | 3,030 |
Operating margin | 31.6% | 29.2% | 30.5% | 31.4% | 33.1% |
Profit before tax | 2,200 | 1,916 | 2,077 | 2,489 | 2,716 |
Net profit attributable to shareholders | 1,808 | 1,543 | 1,689 | 1,961 | 2,156 |
Net margin | 23.0% | 21.7% | 23.3% | 22.9% | 23.5% |
Cash flow | 2,402 | 2,009 | 2,230 | 2,709 | 2,962 |
Cash flow conversion | 96% | 97% | 101% | 101% | 98% |
Return on invested capital | 13.6% | 10.8% | 11.9% | 12.5% | 14.0% |
Earnings per share | 93.0p | 80.1p | 87.6p | 102.2p | 114.0p |
Dividend ² | |||||
Ordinary dividend per share | 45.7p | 47.0p | 49.8p | 54.6p | 58.8p |
Reported figures | |||||
Revenue | 7,874 | 7,110 | 7,244 | 8,553 | 9,161 |
Operating profit | 2,101 | 1,525 | 1,884 | 2,323 | 2,682 |
Profit before tax | 1,847 | 1,483 | 1,797 | 2,113 | 2,295 |
Net profit attributable to shareholders | 1,505 | 1,224 | 1,471 | 1,634 | 1,781 |
Net margin | 19.1% | 17.2% | 20.3% | 19.1% | 19.4% |
Net debt | 6,191 | 6,898 | 6,017 | 6,604 | 6,446 |
Earnings per share (pence) | 77.4p | 63.5p | 76.3p | 85.2p | 94.1p |
(5)
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 222 to 230.
(6)
Dividend per ordinary share is based on the interim dividend and proposed final dividend for the relevant year.
5 year summary
212
RELX
Annual Report 2023 | Financial statements and other information
213
213
RELX
Annual Report 2023
RELX PLC
company only
financial statements
In this section
214
RELX PLC statement of financial position
215
RELX PLC statement of changes in equity
216
RELX PLC accounting policies
217
Notes to the RELX PLC financial statements
Financial review
Financial statements
and shareholder information
Governance
Corporate Responsibility
Overview
Market segments
AS AT 31 DECEMBER
2022
2023
Note
£m
£m
Non-current assets
Investments in subsidiary undertakings
1
18,333
18,339
18,333
18,339
Current assets
Receivables: amounts due from subsidiary undertakings
1,469
1,513
Total assets
19,802
19,852
Current liabilities
Taxation
1
26
Other payables
154
154
Payables: amounts owed to subsidiary undertakings
10
-
165
180
Net assets
19,637
19,672
Capital and reserves
Share capital
279
275
Share premium
1,517
1,558
Shares held in treasury
(312)
(435)
Capital redemption reserve
43
47
Other reserves
183
189
Merger reserve
11,150
11,150
Net profit
1,056
1,846
Reserves
5,721
5,041
Shareholders’ equity
19,637
19,671
The RELX PLC Company financial statements were approved by the Board of Directors and authorised for issue on 14 February 2024.
They were signed on its behalf by:
N L Luff
Chief Financial Office
r
RELX PLC statement of financial position
214
RELX
Annual Report 2023 | Financial statements and other information
RELX PLC statement of changes in equity
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 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 1 January 2023
279
1,517
(312)
43
183
11,150
1,056
5,721
19,637
Total comprehensive income for
the year
-
-
-
-
-
-
1,846
-
1,846
Dividends paid
(4)
-
-
-
-
-
-
-
(1,059)
(1,059)
Repurchase of ordinary shares
-
-
(800)
-
-
-
-
-
(800)
Cancellation of shares
(4)
-
677
4
-
-
-
(677)
-
Issue of ordinary shares, net of
expenses
-
41
-
-
-
-
-
-
41
Equity instruments granted to
employees of the Group
-
-
-
-
6
-
-
-
6
Transfer of net profit to reserves
-
-
-
-
-
-
(1,056)
1,056
-
Balance at 31 December 2023
275
1,558
(435)
47
189
11,150
1,846
5,041
19,671
(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 2023 were £6,452m (2022: £6,465m) comprising net profit and reserves, net of shares held in treasury.
(4)
Refer to note 13 of the RELX consolidated financial statements on page 189 for further dividend disclosure.
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
215
RELX
Annual Report 2023 | RELX PLC company only financial statements
RELX PLC accounting policies
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 166 to 211, which are also presented as the RELX PLC consolidated financial statements. See the Basis of
preparation of the consolidated financial statements on page 171.
The RELX PLC financial statements are prepared on a going concern basis, as explained on page 105.
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 changes in equity.
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 182 to 185 of the consolidated financial statements for the taxation accounting policies.
Financial guarantee contracts
Financial guarantee contracts are recorded at fair value on initial recognition and subsequently assessed for any changes in the
risk of default which would result in an expense recorded in the income statement.
216
RELX
Annual Report 2023 | Financial statements and other information
Notes to the RELX PLC financial statements
1 Investments
Subsidiary
undertaking
Total
£m
£m
At 1 January 2022
18,327
18,327
Equity instruments granted to employees of the Group
6
6
At 1 January 2023
18,333
18,333
Equity instruments granted to employees of the Group
6
6
At 31 December 2023
18,339
18,339
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 128 to 148.
3 Guarantees and contingent liabilities
There are financial guarantees given by RELX PLC in respect of debt within subsidiary undertakings:
2022
2023
£m
£m
Guarantees
6,518
6,446
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. The probability of default is remote and there was no change in the assessment of the risk of
default during the year.
RELX PLC has issued guarantees over the liabilities of 16 of its UK subsidiaries which will be taking advantage of the audit
exemption set out within Section 479A of the Companies Act 2006 for the year ended 31 December 2023. Refer to note 28 of the
Group consolidated financial statements for further details.
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
217
RELX
Annual Report 2023 | RELX PLC company only financial statements
218
RELX
Annual Report 2023
Other financial
information
In this section
220
Summary consolidated financial information in euros
221
Summary consolidated financial information in US dollars
222
Alternative performance measures
219
RELX
Annual Report 2023
Financial review
Financial statements
and shareholder 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 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
2021
2022
2023
2021
2022
2023
US dollars to sterling
1.38
1.24
1.24
1.35
1.21
1.28
Consolidated income statement
FOR THE YEAR ENDED 31 DECEMBER
2021
2022
2023
$m
$m
$m
Revenue
9,997
10,606
11,360
Operating profit
2,600
2,881
3,326
Profit before tax
2,480
2,620
2,846
Net profit attributable to shareholders
2,030
2,026
2,208
EBITDA
3,722
3,936
4,395
Adjusted operating profit
3,050
3,327
3,757
Adjusted profit before tax
2,866
3,086
3,368
Adjusted net profit attributable to shareholders
2,331
2,432
2,673
Adjusted earnings per American Depositary Share (ADS)
$1.209
$1.268
$1.413
Basic earnings per ADS
$1.053
$1.056
$1.167
Net dividend per ADS paid in the year
$0.658
$0.635
$0.693
Net dividend per ADS paid and proposed in relation to the financial year
$0.687
$0.677
€0.729
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
2021
2022
2023
$m
$m
$m
Net cash from operating activities
2,782
2,977
3,047
Net cash used in investing activities
(530)
(1,065)
(706)
Net cash used in financing activities
(2,216)
(1,654)
(2,551)
Increase/(decrease) in cash and cash equivalents
36
258
(210)
Movement in cash and cash equivalents
At start of yea
r
121
153
404
Increase/(decrease) in cash and cash equivalents
36
258
(210)
Exchange translation differences
(4)
(7)
4
At end of year
153
404
198
Adjusted cash flow
3,077
3,359
3,673
Consolidated statement of financial position
AS AT 31 DECEMBER
2021
2022
2023
$m
$m
$m
Non-current assets
15,526
15,440
15,415
Current assets
3,182
3,713
3,622
Assets held for sale
-
-
56
Total assets
18,708
19,153
19,093
Current liabilities
5,060
6,276
7,009
Liabilities associated with assets held for sale
-
-
18
Non-current liabilities
9,296
8,334
7,665
Total liabilities
14,356
14,610
14,692
Net assets
4,352
4,543
4,401
Summary consolidated financial information
in US dollars
220
RELX
Annual Report 2023 | 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 euros at the stated rates of exchange.
EXCHANGE RATES FOR TRANSLATION
Income statement
Statement of
financial position
2021
2022
2023
2021
2022
2023
Euro to sterling
1.16
1.17
1.15
1.19
1.13
1.15
Consolidated income statement
FOR THE YEAR ENDED 31 DECEMBER
2021
2022
2023
€m
€m
€m
Revenue
8,403
10,007
10,535
Operating profit
2,185
2,718
3,084
Profit before tax
2,085
2,472
2,639
Net profit attributable to shareholders
1,706
1,912
2,048
EBITDA
3,129
3,714
4,076
Adjusted operating profit
2,564
3,139
3,485
Adjusted profit before tax
2,409
2,912
3,123
Adjusted net profit attributable to shareholders
1,959
2,294
2,479
Adjusted earnings per ordinary share
€1.016
€1.196
€1.310
Basic earnings per ordinary share
€0.885
€0.997
€1.083
Net dividend per ordinary share paid in the year
€0.553
€0.599
€0.643
Net dividend per ordinary share paid and proposed in relation to the financial yea
r
€0.578
€0.639
€0.676
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
2021
2022
2023
€m
€m
€m
Net cash from operating activities
2,338
2,809
2,826
Net cash used in investing activities
(445)
(1,005)
(654)
Net cash used in financing activities
(1,863)
(1,561)
(2,366)
Increase/(decrease) in cash and cash equivalents
30
243
(194)
Movement in cash and cash equivalents
At start of yea
r
99
134
377
Increase/(decrease) in cash and cash equivalents
30
243
(194)
Exchange translation differences
5
-
(5)
At end of yea
r
134
377
178
Adjusted cash flo
w
2,587
3,170
3,406
Consolidated statement of financial position
AS AT 31 DECEMBER
2021
2022
2023
€m
€m
€m
Non-current assets
13,686
14,419
13,849
Current assets
2,805
3,468
3,255
Assets held for sale
-
-
51
Total assets
16,491
17,887
17,155
Current liabilities
4,460
5,861
6,297
Liabilities associated with assets held for sale
-
-
16
Non-current liabilities
8,194
7,783
6,886
Total liabilities
12,654
13,644
13,199
Net assets
3,837
4,243
3,956
Summary consolidated financial information
in euros
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
221
RELX
Annual Report 2023 | 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
Income
statement
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 currency, 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
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
2022
2023
2022
2023
Note
£m
£m
%
%
Reported revenue growth
2
1,309
608
+18%
+7%
Components of reported revenue growth
Underlying revenue growth
656
635
+9%
+8%
Exhibitions cycling
106
(52)
+2%
-1%
Acquisitions
38
28
0%
0%
Disposals
(34)
(18)
0%
0%
Total revenue growth at constant currency
766
593
+11%
+7%
Currency effect
543
15
+7%
0%
Reported revenue growth
1,309
608
+18%
+7%
Alternative performance measures
222
RELX
Annual Report 2023 | 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)
2022
2023
2022
2023
Note
£m
£m
%
%
Reported adjusted operating profit growth
473
347
+21%
+13%
Components of adjusted operating profit growth
Underlying adjusted operating profit growth
326
335
+15%
+13%
Acquisitions
(6)
(8)
0%
-1%
Disposals
(14)
(3)
-1%
0%
Total adjusted operating profit growth at constant currency
306
324
+14%
+12%
Currency impact
167
23
+7%
+1%
Reported adjusted operating profit growth
473
347
+21%
+13%
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 and associates
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
2022
2023
Note
£m
£m
Operating profit
2,3
2,323
2,682
Adjustments:
Amortisation of acquired intangible assets
2
296
280
Acquisition-related items
62
56
Reclassification of tax in joint ventures and associates
4
12
Reclassification of net finance income in joint ventures and associates
(2)
-
Adjusted operating profit
2,683
3,030
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
223
RELX
Annual Report 2023 | 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
Business overview
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
2022
2023
Note
£m
£m
Adjusted operating profit
2
2,683
3,030
Total depreciation and other amortisation*
2,3
491
514
EBITDA
3,174
3,544
*
Excludes amortisation of acquired intangibles.
EBITDA
Margin
No direct
equivalent
Calculated as EBITDA divided by revenue
As above
Business overview
Financial review
Adjusted
interest
expense
Interest
expense
Reported interest expense, less the pension
financing charge, plus the share of net finance
income from joint ventures and associates
Provides a measure of
the Group’s interest
expense for the
funding of business
operations that is
comparable from year
to year
Financial review
2022
2023
Note
£m
£m
Interest expense
7
201
315
Pension financing charge
6
(5)
(1)
Share of net finance income from joint ventures and associates
(2)
-
Adjusted interest expense
194
314
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
and associates, net interest on the net defined
benefit pension obligation and disposals and
other non-operating items
Provides a measure
used by management
to evaluate
performance and
allocate resources
Financial highlights
Financial review
2022
2023
Note
£m
£m
Profit before tax
2,113
2,295
Adjustments:
Amortisation of acquired intangible assets
2
296
280
Acquisition-related items
2
62
56
Reclassification of tax in joint ventures and associates
4
12
Net interest on net defined benefit pension obligation
6
5
1
Disposals and other non
‑
operating items
8
9
72
Adjusted profit before tax
2,489
2,716
224
RELX
Annual Report 2023 | 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 and associates, 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
2022
2023
Note
£m
£m
Tax charge
9
(481)
(507)
Adjustments:
Deferred tax movements on goodwill and acquired intangible assets*
30
32
Other deferred tax credits from intangible assets**
(64)
(61)
Tax on acquisition-related items
(13)
(8)
Reclassification of tax in joint ventures and associates
(4)
(12)
Tax on net interest on net defined benefit pension obligation
(1)
-
Tax on disposals and other non-operating items
3
3
Adjusted tax charge
(530)
(553)
*
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
Provides 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 shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
225
RELX
Annual Report 2023 | 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
2022
2023
Note
£m
£m
Net profit attributable to shareholders
10
1,634
1,781
Adjustments (post-tax):
Amortisation of acquired intangible assets
326
312
Other deferred tax credits from intangible assets*
(64)
(61)
Acquisition-related items
49
48
Net interest on net defined benefit pension obligation
4
1
Disposals and other non-operating items
12
75
Adjusted net profit attributable to shareholders
1,961
2,156
*
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
2022
2023
Adjusted net profit attributable to shareholders (£m)
10
1,961
2,156
Weighted average number of shares (m)
10
1,918.5
1,891.8
Adjusted earnings per share (p)
102.2
114.0
226
RELX
Annual Report 2023 | 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 and associates
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 acquisition-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
2022
2023
Note
£m
£m
Cash generated from operations
11
3,061
3,370
Adjustments:
Dividends received from joint ventures and associates
15
33
21
Purchases of PPE
16
(36)
(30)
Proceeds from disposals of PPE
-
7
Expenditure on internally developed intangible assets
(400)
(447)
Payments in relation to acquisition-related items
54
56
Pension recovery payment
50
50
Repayment of lease principal
(79)
(72)
Sublease payments received
1
2
Exceptional costs in Exhibitions
25
5
Adjusted cash flow
2,709
2,962
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
2022
2023
Note
£m
£m
Adjusted cash flow
2,709
2,962
Adjusted operating profit
2
2,683
3,030
Adjusted cash flow conversion
101%
98%
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 for organic
investment in the
business, acquisitions,
distribution of
dividends, share
buybacks or the
repayment of debt
Financial review
Note 17
2022
2023
Note
£m
£m
Adjusted cash flow
2,709
2,962
Interest paid (net)
(165)
(294)
Cash tax paid*
9
(495)
(619)
Exceptional costs in Exhibitions
(25)
(5)
Acquisition-related items
(54)
(56)
Free cash flo
w
1,970
1,988
*
Net of cash tax relief on acquisition-related items and including cash tax impact of disposals.
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
227
RELX
Annual Report 2023 | Alternative performance measures
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST
EQUIVALENT IFRS MEASURE
PURPOSE
FINANCIAL STATEMENT
REFERENCE
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
2022
2023
Note
£m
£m
Goodwill and acquired intangible assets*
10,477
9,784
Internally developed intangible assets*
14
1,435
1,477
Property, plant and equipment*, right-of-use assets* and investments
557
487
Net pension obligations
6
(55)
(63)
Working capital
(1,325)
(1,296)
Net capital employed
11,089
10,389
* Net of accumulated depreciation and amortisation.
Invested
capital
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
2022
2023
Note
£m
£m
Net capital employed
11,089
10,389
Accumulated amortisation and impairment of acquired intangible assets and goodwill
8,000
7,885
Non-operating investments
15
(127)
(97)
Deferred tax on goodwill and other
(1,392)
(1,336)
Invested capital
17,570
16,841
228
RELX
Annual Report 2023 | 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 invested capital
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
2022
2023
Adjusted operating profit
2
2,683
3,030
Tax at adjusted effective rate
(571)
(618)
Adjusted effective tax rate
21.3%
20.4%
Adjusted operating profit after tax
2,112
2,412
Average invested capital*
16,920
17,184
ROIC
12.5%
14.0%
* Average of invested capital at the beginning and the end of the year, retranslated at average exchange rates for 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.
Capital
expenditure
No direct
equivalent
Additions to property, plant and equipment and
internally developed intangible assets
Provides a measure of
the amounts invested
in new products and
related infrastructure
across the business
Chair’s statement
Financial review
Directors’ report
Governance
Note 2
2022
2023
Note
£m
£m
Additions to property, plant and equipment
16
36
30
Additions to internally developed intangible assets
14
400
447
Capital expenditure
436
477
Financial statements
and shareholder information
Governance
Market segments
Financial review
Corporate Responsibility
Overview
229
RELX
Annual Report 2023 | 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 /
net debt for
leverage
ratio
No direct
equivalent
Net debt: 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
2022
2023
Note
£m
£m
Debt
11,21
6,730
6,497
Cash and cash equivalents
11
(334)
(155)
Related derivative financial instruments
11
213
108
Finance lease receivables
11
(5)
(4)
Net debt
11
6,604
6,446
Net pension obligation
6
184
182
Net debt for leverage ratio
6,788
6,628
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 and
associates, the equity share of finance income,
finance costs, taxes and amortisation in joint
ventures and associates, and acquisition-
related items are deducted from EBITDA
Provides a measure of
the financial leverage
of the Group
Chair’s statement
Financial review
Governance
2022
2023
2022
2023
Note
£m
£m
$m*
$m*
EBITDA
3,174
3,544
3,936
4,395
Less joint venture and associates adjusted operating profit
(22)
(59)
(27)
(73)
Acquisition-related items
2
(62)
(56)
(77)
(69)
EBITDA for leverage ratio
3,090
3,429
3,832
4,253
Net debt for leverage ratio
6,788
6,628
8,213
8,484
EBITDA for leverage ratio
3,090
3,429
3,832
4,253
Leverage ratio
2.1x
2.0x
* EBITDA and net debt have been translated from sterling to US dollars using, respectively, average and year end exchange rates, as shown on page 206.
230
RELX
Annual Report 2023 | Financial statements and other information
231
RELX
Annual Report 2023
Shareholder
information
In this section
232
Shareholder information
234
Shareholder information and contacts
235
2024 financial calendar
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
Overview
232
RELX
Annual Report 2023 | Financial statements and other information
2023 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 2023 is available on the Company’s website,
and from the registered office of RELX PLC shown on page 153.
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.
RELX PLC
Trading symbol
REL
ISIN
GB00B2B0DG97
RELX PLC’s ordinary shares are traded on the
Euronext Amsterdam Stock Exchange.
RELX 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).
RELX 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 234.
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.
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 234.
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 234.
Shareholder information
233
RELX
Annual Report 2023 | 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 +44 (0)345
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 +44 (0)20 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 14
51⁄
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
14
51⁄
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 shareholder information
Financial review
Corporate Responsibility
Overview
RELX
Annual Report 2023 | Financial statements and other information
234
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 and
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 +44 (0)371 384 2960 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
Equiniti provide a range of services to shareholders. Extensive
information including answers to frequently asked questions can
be found online at
www.shareview.co.uk
Tel: +44 (0)371 384 2960
*Lines are open from 8.30am to 5.30pm, UK time Monday to Friday (excluding public
holidays in England and Wales). Please use the country code when dialling from
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)
235
RELX
Annual Report 2023
2024 financial calendar
15 February
Results announcement for the year ended 31 December 2023
25 April
Trading update issued in relation to the 2024 financial year
25 April
Annual General Meeting
2 May
Ex-dividend date – 2023 final dividend, ordinary shares and ADRs
3 May
Record date – 2023 final dividend, ordinary shares and ADRs
20 May
Dividend currency and DRIP election deadline
24 May
Euro dividend equivalent announcement
13 June
Payment date – 2023 final dividend, ordinary shares
18 June
Payment date – 2023 final dividend, ADRs
25 July
Interim results announcement for the six months to 30 June 2024
1 August
*
Ex-dividend date – 2024 interim dividend, ordinary shares and ADRs
2 August
*
Record date – 2024 interim dividend, ordinary shares and ADRs
* Please note that these dates are provisional and subject to change. The 2024 interim dividend payment dates in respect of ordinary shares and ADRs will be confirmed by the
Company in its 2024 Interim Results announcement, currently scheduled for release on 25 July 2024.
Dividend history
The following tables set out dividends paid (or proposed) in relation to the three financial years 2021–2023.
ORDINARY SHARES
Pence per PLC
ordinary share
Euro equivalent
(€)
Payment date
Final dividend for 2023**
41.8
***
13 June 2024
Interim dividend for 2023
17.0
0.199
7 September 2023
Final dividend for 2022
38.9
0.447
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
ADRS
$ per PLC ADR
Payment date
Final dividend for 2023**
****
18 June 2024
Interim dividend for 2023
0.211761
12 September 2023
Final dividend for 2022
0.483332
12 June 2023
Interim dividend for 2022
0.180188
13 September 2022
Final dividend for 2021
0.444282
10 June 2022
Interim dividend for 2021
0.196582
13 September 2021
**
Proposed dividend payment subject to shareholder approval at the Annual General Meeting of RELX PLC in April 2024.
***
Euro equivalent amount will be determined using the appropriate exchange rate on 24 May 2024.
**** ADR US$ equivalent amount will be determined using the appropriate exchange rate on 13 June 2024.
Market segments
Governance
Financial statements
and shareholder information
Financial review
Corporate Responsibility
Overview
236
RELX
Annual Report 2023 | Financial statements and other information
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.
www.relx.com