Our performance
About our reporting
This report provides a summary of Pearson’s sustainable business strategy and our environmental, social, and governance (ESG) performance for the calendar year ended 31 December 2023. The Board’s Reputation & Responsibility Committee has reviewed the reported information, including the list of material topics on page 94.
Global Reporting Initiative (GRI)
Our report is in accordance with the GRI standards, using the GRI 1: Foundation 2021 guidance. There is no relevant GRI sector standard for our industry.
Sustainability Accounting Standards Board (SASB)
We continue to report in line with the SASB’s standards to provide industry-based insights into the most relevant sustainability-related risks and opportunities for the media, and professional services sectors.
UN Global Compact (UNGC) and the UN Sustainable Development Goals (SDGs)
We were proud to participate in the Early Adopter Programme of the UN Global Communication on Progress (CoP) designed to add value and streamline sustainability reporting for all participating companies of the UNGC. Our CoP is publicly available on our participant profile at: https://unglobalcompact.org/what-is-gc/participants/7319-Pearson-plc
Lifelong learning and education have an important role to play in achieving all the UN SDGs, but we focus our efforts on those where we have the greatest impact. Our priority SDGs are: 4 quality education, 8 decent work and economic growth, and 10 reducing inequalities.
| ESG material issues reporting against GRI and SASB |
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| Material issues | GRI | SASB | Page/web reference | Comments/omissions |
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| Product effectiveness | GRI 203-2: significant indirect impacts | | Risks, opportunities, and management approach: Pages 34-38 Performance: non-financial KPIs Page 24 | |
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| Consumer engagement | GRI 203-2: significant indirect impacts | | Risks, opportunities, and management approach: Pages 34-38, 16-17 Performance: non-financial KPIs Page 24 | |
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| Digital growth | GRI 203-2: significant indirect impacts | | Risks, opportunities, and management approach: Pages 34-38 Performance: non-financial KPIs - Page 24 | |
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| Employee learning and development | GRI 404-1: average hours of training per year, per employee GRI 404-2: programmes for upgrading employee skills and transition assistance programmes GRI 404-3: percentage of employees receiving regular performance and career development reviews | | Risks, opportunities, and management approach: Pages 39-41 Performance: Pages 24, 39-41 | We do not report on average hours of training, or % of employees receiving reviews. 100% of direct employees are covered by the Gallup survey. |
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| ESG data continued | Strategic report |
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| Material issues | GRI | SASB | Page/web reference | Comments/omissions |
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| Employee engagement | | SV-PS-330a.2. (1) voluntary and (2) involuntary turnover rate for employees SV-PS-330a.3. employee engagement % | Risks, opportunities, and management approach: Pages 39-41 Performance: Page 34 | |
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| Inclusion and diversity | 405-1 Diversity of governance bodies and employees | SV-PS-330a.1. & SV-ME-260a.1. percentage of gender and racial/ethnic group representation for: (1) Executive Management (2) professionals (3) all other employees SV-ME-260a.2. description of policies and procedures to ensure pluralism in news media content | Risks, opportunities, and management approach: Pages 40-41 Performance: Pages 24, 39-40 Social Equity portal: https://www.pearson.com/en-GB/social-equity.html | |
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| Reducing our environmental impact | GHG Emission scope 1, 2, 3. Baseline and methodology. Any offsets including type, amount, criteria | | Risks, opportunities, and management approach: Pages 35, 42-43 TCFD Report: Pages 44-48Performance: Pages 24, 42-43 | |
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| Data privacy and cyber security | GRI 418 -1 Substantiated complaints received concerning breaches of customer privacy and losses of customer data | SV-PS-230a.1 description of approach to identifying and addressing data security risks SV-PS-230a.2. description of policies and practices relating to collection, usage, and retention of customer information SV-PS-230a.3. number of data breaches percentage involving customers’ confidential business information or personally identifiable information number of customers affected | The following sections of our report detail: — our approach to data security risks: Page 100 — governance of data privacy, cyber security and technology resilience: Page 96 — approach to customer data and safeguarding and training provided: Pages 34, 38 — consumer-facing privacy centre explaining how Pearson uses personal information: https://www.pearson.com/en-GB/privacy-center.html | In the event of a reportable breach, we would disclose information about the incident and commit to contact any affected data subjects in a timely way. In line with regulations, we will disclose material lapses to the relevant regulators. To the extent that any relevant regulator should find fault with our data management and/or data security practices, they will publish their findings/sanctions. |
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| Journalistic integrity & sponsorship identification | | SV-ME-270a.3 Description of approach for ensuring journalistic integrity of news programming related to: (1) truthfulness, accuracy, objectivity, fairness, and accountability, (2) independence of content and/or transparency of potential bias, and (3) protection of privacy and limitation of harm | — Business Partner Global Content Policy, on page 94 | |
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Strategic report
| GRI General Disclosures Index |
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| Disclosure | Page/Location | Comment |
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| 2-1 Organisational details | 68, 72,74 | |
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| 2-2 Entities included in the organisation’s sustainability reporting | 94-96 | |
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| 2-4 Restatements of information | 81 | |
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| 2-5 External assurance | | https://plc.pearson.com/en-GB/ purpose/our-esg-reporting |
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| 2-6 Activities, value chain and other business relationships | 11 | |
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| 2-7 Employees | 53-54 | |
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| 2-8 Workers who are not employees | | We do not currently report on workers who are not employees. Most common type of workers are regular employees (17,128) and most common type of work performed is in testing centres, technology, sales, customer services, and professional development |
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| 2-9 Governance structure and composition | 66-80 | |
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| 2-10 Nomination and selection of the highest governance body | 88-90 | |
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| 2-11 Chair of the highest governance body | 66 | |
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| 2-12 Role of the highest governance body in overseeing the management of impacts | 68-80 | |
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| 2-13 Delegation of responsibility for managing impacts | 80 | |
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| 2-14 Role of the highest governance body in sustainability reporting | 94-96 | |
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| Disclosure | Page/Location | Comment |
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| 2-15 Conflicts of interest | 76 | |
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| 2-16 Communication of critical concerns | 94 | |
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| 2-17 Collective knowledge of the highest governance body | 74-77 | |
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| 2-18 Evaluation of the performance of the highest governance body | 85-87 | |
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| 2-19 Remuneration policies | 107-135 | |
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| 2-20 Process to determine remuneration | 110 | |
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| 2-21 Annual total compensation ratio | 110 | |
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| 2-22 Statement on sustainable development strategy | 34 | |
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| 2-23 Policy commitments | 16 | |
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| 2-24 Embedding policy commitments | 16-20 | |
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| 2-25 Processes to remediate negative impacts | 94 | https://plc.pearson.com/en-GB/ corporate-policies |
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| 2-26 Mechanisms for seeking advice and raising concerns | 94 | https://plc.pearson.com/en-GB/ corporate-policies |
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| 2-27 Compliance with laws and regulations | 94 | |
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| 2-28 Membership associations | 92 | We are also members of the Global Business Coalition for Education, and the Corporate Consultative Group of the World Resource Institute (WRI). |
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| 2-29 Approach to stakeholder engagement | 16-20 | |
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| 2-30 Collective bargaining agreements | 134 | Board members engage with employees on a regular basis. |
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| ESG data continued | Strategic report |
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ESG performance tables
Environment
Methodology: We follow the requirements from the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) to calculate our emissions.
For scope 2, we use the dual reporting methodology (location and market-based approach), together with some of the latest emission factors from recognised public sources, including, but not limited to, the UK Department for Business, Energy and Industrial Strategy, the International Energy Agency, the US Energy Information Administration, the US Environmental Protection Agency, and the Intergovernmental Panel on Climate Change (IPCC). Energy use includes gas and electricity consumption in MWh and vehicle fuel use converted from mileage into MWh using BEIS conversion factors. We are also using the latest global warming potential from the IPCC’s Sixth Assessment Report.
An independent third party has verified and provided limited assurance of our energy consumption; scope 1, 2 and 3 GHG emissions; and renewable electricity claims, as well as our social KPIs. See SLR Consulting assurance statement here: https://plc.pearson.com/en-GB/sustainability/our-esg-reporting
Greenhouse gas (GHG) (carbon dioxide equivalent) emissions overview (metric tons CO 2 e)
| 2023 | 2022 |
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| Scope 1 | 4,661 | 4,622 |
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| Scope 2 (market-based 1) | 14* | 182 |
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| Scope 2 (location-based 2) | 14,052 | 29,034 |
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| Scope 3 | 302,572 | 362,473 |
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| Total - location-based | 321,285 | 396,128 |
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| Total - market-based | 307,247 | 367,276 |
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| Total global scope 1 and 2 (location-based) | 18,713 | 33,656 |
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| Total UK scope 1 and 2 (location-based) | 2,280 | 5,671 |
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| Total global scope 1 and 2 (market-based) | 4,675 | 4,804 |
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| Total UK scope 1 and 2 (market-based) | 821 | 1,662 |
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| 1. | The market-based approach reflects emissions from electricity purposefully chosen. |
It derives emission factors from a contract for the sale and purchase of energy.
| 2. | The location-based approach reflects the average emissions intensity of grids on which energy consumption occurs. |
| * | We purchase renewable electricity in countries of consumption. For American Samoa, Bangladesh, Kenya, Republic of Korea, Northern Marina Islands and Romania, Pearson was not able to purchase country-specific Energy Attribute Certificates and we had to buy from neighbouring countries/regions such as United States, India, Uganda, China and Poland. However, this represents only 0.1% of Pearson total electricity consumption |
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| Intensity ratio | 2023 | 2022 |
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| tCO2/ m £ sales revenue (scope 1, 2 market-based and 3) | 83.6 | 95.6 |
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| Energy | 2023 | 2022 |
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| % electricity from renewable sources | 100% | 99% |
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| Total electricity consumption from renewable sources only (MWh) | 36,321 | 83,523 |
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| Total electricity consumption from non-renewable sources only (MWh) | 0 | 957 |
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| On-site generated electricity (MWh) | 177 | 184 |
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| Total gas consumption (MWh) | 18,309 | 24,170 |
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| Total fuel oil consumption (MWh) | 49 | 159 |
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| Vehicles (MWh) | 4,693** | 347 |
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| Total energy consumption (MWh) | 59,372 | 109,340 |
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| Global (gas, electricity and transport) | 59,323 | 108,997 |
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| UK (gas, electricity and transport) | 11,519 | 29,811 |
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| Resource use | 2023 | 2022 |
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| Paper used (t) | 22,859 | 24,187 |
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| % FSC | 50% | 33% |
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| % PEFC | 6% | 20% |
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| % SFI | 13% | 9% |
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| Waste | 2023 | 2022 |
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| Total waste generated (t) | 680*** | 1,298 |
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| Share of waste recycled in office space | 23.9% | 17.7% |
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| Water | 2023 | 2022 |
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| Total water consumption (m3) | 84,857*** | 538,556 |
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| ** | An increase in activity for company vehicles in the US is included in this year’s figures. |
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| *** | We report estimated water and waste in some of our properties by applying an intensity ratio per sqm based on all actual data available. This year, the intensity ratio per sqm for waste generated and water consumption was much lower than 2022. |
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Strategic report
Social
All employee figures, with the exception of total average number of employees (as noted below) are based on employee volumes as at 31 December 2023.
| Our employees | 2023 | 2022 |
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| Total average number of employees for the year† | 18,360 | 20,438 |
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| Employees by geography (regional representation) | 17,612 | 20,169 |
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| US as of 31 December | 9,241 | 10,694 |
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| UK as of 31 December | 3,359 | 3,931 |
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| Rest of world as of 31 December | 5,012 | 5,544 |
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| † | Total average number of employees is calculated using a Full-time Equivalent (FTE) methodology, as an average across the reporting period. Seasonal/temporary staff are excluded from calculation. |
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| Gender diversity breakdown | 2023 | 2022 |
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| Total number of permanent, regular employees | 97% | 97% |
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| Male | 40% | 40% |
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| Female | 59% | 59% |
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| Non-binary | 0% | 0% |
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| No data | 1% | 1% |
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| Total number of temporary, limited-term employees | 3% | 3% |
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| Male | 36% | 32% |
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| Female | 63% | 66% |
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| Non-binary | 0% | 0% |
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| No data | 1% | 2% |
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| Total full-time, regular employees | 79% | 79% |
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| Male | 44% | 44% |
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| Female | 56% | 55% |
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| Non-binary | 0% | 0% |
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| Not disclosed | 1% | 1% |
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| Total part-time, regular employees | 21% | 21% |
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| Male | 27% | 27% |
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| Female | 72% | 72% |
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| Non-binary | 0% | 0% |
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| Not disclosed | 1% | 1% |
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| Board and Executive Management team’sgender identity or sex | Numberof Boardmembers | Percentageof theBoard | Number of seniorpositions on theBoard (CEO, CFO,SID and Chair) | Number inExecutiveManagement* | Percentageof ExecutiveManagement |
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| Men | 5 | 45.5 | 3 | 6 | 54.5 |
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| Women | 6 | 54.5 | 1 | 5 | 45.5 |
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| Other categories |
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| Not specified / prefer not to say |
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| Board and Executive Management team’sethnic background | Numberof Boardmembers | Percentageof theBoard | Number of seniorpositions on theBoard (CEO, CFO,SID and Chair) | Number inExecutiveManagement* | Percentageof ExecutiveManagement |
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| White British or other White (including minority-white groups) | 8 | 73 | 4 | 8 | 73 |
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| Mixed/Multiple Ethnic Groups | 2 | 18 | | 1 | 9 |
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| Asian/Asian British | 1 | 9 | | 1 | 9 |
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| Black/African/Caribbean/Black British |
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| Other ethnic group, including Arab | | 1 | 9 |
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| Not specified/ prefer not to say |
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| * | Prepared in accordance with UK Listing Rule 9.8.6R(10) as at 31 December 2023. As prescribed by this rule and for the purpose of this disclosure, the Executive Management includes the Company Secretary. The data contained in the tables above was collected as part of the annual declaration process, whereby the Board and the Executive Management team received declaration forms for self-completion. The declaration forms included, for all individuals whose data is being reported, the same questions relating to ethnicity and gender. The data is used for statistical reporting purposes and is provided with consent. |
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| Female leadership breakdown | 2023 | 2022 |
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| Senior leadership | 47% | 41% |
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| VP and Director | 47% | 48% |
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| Manager | 51% | 51% |
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| Percentage of women in technology roles (IT/engineering) | 30% | 31% |
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| . |
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| Employee racial and ethnic diversity breakdown | 2023 | | 2022 |
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| Total workforce (US and UK) | | 32% (US) / 17% (UK) | 32% (US) / 18% (UK) | |
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| Senior leadership (US and UK) | | 15% (US) / 14% (UK) | 19% (US) / 12% (UK) | |
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| VP and Director (US and UK) | | 18% (US) / 16% (UK) | 18% (US) / 13% (UK) | |
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| Manager (US and UK) | | 27% (US) / 18% (UK) | 25% (US) / 14% (UK) | |
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| ESG data continued | Strategic report |
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| Employee racial and ethnic diversity breakdown - US | 2023 | 2022 |
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| % of total workforce | 32% | 32% |
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| Asian | 11% | 10% |
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| Black or African American | 11% | 11% |
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| Hispanic or Latino | 9% | 9% |
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| Other | 2% | 2% |
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| White | 68% | 67% |
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| Not stated | 0% | 1% |
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| Employee racial and ethnic diversity breakdown - UK | 2023 | 2022 |
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| % of total workforce | 17% | 18% |
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| Asian | 10% | 10% |
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| Black | 4% | 4% |
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| Hispanic or Latino | 0% | 0% |
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| Other | 4% | 4% |
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| White | 64% | 66% |
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| Not stated | 18% | 16% |
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| % of total management workforce (US and UK) | 2023 | 2022 |
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| Asian | 12% | 10% |
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| Black or African American | 4% | 4% |
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| Hispanic or Latino | 4% | 4% |
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| Other | 2% | 2% |
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| White | 76% | 77% |
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| Not stated | 2% | 3% |
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| Turnover | 2023 | | 2022 | |
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| Turnover rate, total average for the year1 | | 6,446 / 34% | | 6,974 / 33% |
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| Voluntary turnover | | 3,037 / 16% | | 4,658 / 22% |
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| Involuntary turnover | | 3,409 / 18% | | 2,316 / 11% |
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| 1. | % calculated using average 2023 H/C of 18,360, not 2023 year-end position. |
| Turnover by gender | 2023 | | 2022 | |
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| Total female | | 3,840 / 20% | | 4,233 / 20% |
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| Total male | | 2,475 / 13% | | 2,659 / 12% |
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| Non-binary | | 21 / 0% | | 6 / 0% |
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| Not disclosed | | 110 / 1% | | 76 / 0% |
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| Turnover by age group | 2023 | | 2022 | |
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| Under 30 years old | | 1,693 / 9% | | 1,720 / 8% |
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| 30-50 years old | | 3,324 / 18% | | 3,449 / 16% |
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| Over 50 years old | | 1,414 / 7% | | 1,785 / 8% |
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| No date | | 15 / 0% | | 20 / 0% |
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| New hires | 2023 | | 2022 | |
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| Total number and rate of new employee hires (number of hires/averageheadcount)2 | | 3,770 / 20% | | 5,600 / 26% |
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| Total number of new hires - female | | 2,289 / 61% | | 3,378 / 60% |
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| Total number of new hires - male | | 1,374 / 36% | | 2,076 / 37% |
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| Total number of new hires - non-binary | | 19 / 1% | | 24 / 0% |
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| Total number of new hires - not-disclosed | | 88 / 2% | | 122 / 2% |
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| 2. | % calculated using average 2023 H/C of 18,360, not 2023 year-end position. |
| New hires by age group | 2023 | 2022 |
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| Under 30 years old | 38% | 38% |
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| 30-50 years old | 44% | 44% |
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| Over 50 years old | 18% | 17% |
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| No date | 0% | 1% |
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| Employee engagement measures3 | 2023 | 2022 |
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| Engagement | 4.09^ | 3.96^ |
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| Inclusion | 4.21^ | 4.12^ |
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| Progress | 73% | 67% |
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| Learning and growth | 76% | 72% |
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| Volunteering hours | 20,694 | n/a |
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| 3. | Sourced from Gallup Access. Propriety data. |
| ^ | GrandMean on a five-point Likert scale. |
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| BTEC International Registrations | 2023 | 2022 |
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| 65,033 | 4 | 37,994 |
| Governance | 2023 | 2022 |
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| Total number of concerns raised and investigated | 92 | 92 |
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| Percentage of employees completing code of conduct certification or training | 100% | 100% |
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| 4. | Increase due to partnership with the Ministry of Education in Jordan to offer BTEC qualifications in public schools. |
Strategic report
Non-financial and sustainability information statement
In accordance with Sections 414CA and 414CB of the Companies Act 2006, which outline requirements fornon-financial reporting, the table below signposts to content in this strategic report, relevant to the management, performance and position of the company, and the impact of our activities in specificnon-financial areas.
| Business model | Business model: Page 22 |
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| Environmental matters | Policies: Addressed in the following pages, with full policies for Pearson Plc available at: https://plc.pearson.com/en-GB/corporate-policies |
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| Climate | Position and performance: Pages 42-43 |
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| Resource use | Risks/opportunities: Pages 45 |
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| Climate-related financial disclosure as defined in section 414CA(2a) Companies Act 2006’: Governance – (a) on page 40; Strategy – (d), (e) and (f) on pages 41-43; Risk management – (b) and (c) on page 42; Metrics and Targets – (g) and (h) on page 48. |
| Social and community matters | Policies: Addressed in the following pages, with full policies for Pearson Plc available at: https://plc.pearson.com/en-GB/corporate-policies |
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| Driving learning for everyone with our product | Position and performance: Pages 39-41 |
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| Social engagement | Risks/opportunities: https://plc.pearson.com/sites/pearson-corp/files/pearson/esgmateriality2023-14-04.pdf |
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| Employee matters | Policies: Addressed in the following pages, with full policies for Pearson Plc available at: https://plc.pearson.com/en-GB/corporate-policies |
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| Employee engagement | Position and performance: Pages 39-41 |
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| Investing in talent | Risks/opportunities: https://plc.pearson.com/sites/pearson-corp/files/pearson/esgmateriality2023-14-04.pdf |
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| Diversity, equity and inclusion | KPIs: Page 24 |
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| Human rights matters | Policies: Addressed in the following pages, with full policies for Pearson Plc available at: https://plc.pearson.com/en-GB/corporate-policies |
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| Customer welfare (data privacy, security, and | Position and performance: Page 39 |
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| safeguarding) | Risks/opportunities: https://plc.pearson.com/sites/pearson-corp/files/pearson/esgmateriality2023-14-04.pdf |
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| Empowering our people to make a difference | KPIs: Page 24 |
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| Sustainable procurement |
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| Anti-corruption and bribery matters | Policies: https://plc.pearson.com/en-GB/corporate-policies |
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Pearson has a wide range of policies that underpin our sustainability commitments, including:
| — | Pearson Business Partners’ Code of Conduct (Partner Code) |
| — | Responsible Procurement Policy; and our Modern Slavery and Human Rights Statement |
| — | Anti-Bribery and Corruption (ABC) Policy; Raising Concerns and Anti-Retaliation Policy |
| — | Pearson’s safeguarding principles (include data privacy/security) |
The implementation of these policies are discussed throughout the report and on our website.
