Risk Solutions

Harness the power of data for good2011 Corporate Responsibility Report

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TABLE OF CONTENTS

Welcome Letter 3

Our Mission 4

Governance 5

Ethical Standards and Business Practices 5

Privacy, Security and Compliance 5

Solutions for Society 7

Enabling Better Decisions 9

Our People 11

Our Environment 14

Community 18

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As I look at the history of LexisNexis Risk Solutions, one of the things I am most proud of is the company’s ongoing commitment to providing solutions for society. In the case of the Risk Solutions organization, this extends far beyond our volunteer initiatives and philanthropic efforts. This commitment is embedded directly into the products and services we provide, which we develop based on a shared vision of harnessing the power of big data and analytics for good. By following that vision, we are able to provide products that have a direct and positive impact on society, in three primary ways:

1. We help businesses, nonprofits and government agencies make better decisions. Using our data and analytics, our customers can make faster, better-informed decisions and comply with an increasingly complex regulatory climate.

2. We help make our communities safer. Our technology contributes toward saving the lives of missing children; detecting identity theft, money laundering and fraud; and preventing violence in the workplace.

3. We help enable faster commerce, both for individuals and organizations. Our solutions speed up the process of applying for jobs, credit, insurance and housing, and aid in the collection of delinquent debts.

LexisNexis Risk Solutions is made up of a diverse group of approximately 4,000 people spread across the United States, as well as in India, Australia, Singapore and the United Kingdom. Although our people work in a wide range of functions, and serve a broad range of customers in many different markets, what unifies us is the belief that our efforts can make a real difference. But our commitment to making a positive impact on society extends beyond our products and services; it is deeply embedded into our culture.

As the leader of our Human Resources team, one of my goals is to help ensure that we provide our people an environment where we all feel empowered to make a difference, both inside and outside the workplace. Our employees are given two paid days off per year for volunteer activities of their own choosing. Over the years we have put in thousands of hours of volunteer time to benefit our local communities – from working in food banks and building playgrounds, to participating in conservation efforts or building toys for needy children. Our volunteerism is a reminder that we can all make tangible and meaningful differences in our communities simply by rolling up our sleeves and working together.

But making a real difference in the world also requires money. We host numerous charitable programs that drive donations to many worthy organizations and causes. We also support our people in the causes they care about by matching their donations to approved nonprofit organizations. This has included causes ranging from relief efforts following the earthquake in Haiti and the tsunami in Japan, to local community programs. Each year hundreds of thousands of dollars are contributed to important causes like these.

We also realize that to help others, we need to maintain our own energy, health and well-being. That is why we offer our employees an array of wellness initiatives that can help them achieve a good work-life balance. We promote workplace diversity and inclusion through our employee resource groups. And we are continually building environmental awareness, with a growing number of recycling and sustainability programs, often prompting some good-natured competition among our locations, some of which have won awards for meeting or exceeding the environmental standards set by our parent organization, Reed Elsevier.

As you explore this site, I hope you get a sense of the pride all of us take in being part of a team capable of making such a positive impact on the world. We firmly believe that what we do here matters, and that as individuals and collectively, we have a daily opportunity to help solve society’s problems.

Don WelskoSVP, Human ResourcesLexisNexis Risk Solutions

A Message from Don Welsko, SVP, Human Resources

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Our MissionWe provide essential information to advance and protect people, industry, and society.

Our ValuesOur values are core to our business: Integrity, Customer focus, Valuing our people, Passion for winning, Innovation and Boundarylessness.

Our Business LexisNexis Risk Solutions provides data and analytics that enable customers to evaluate and manage risks associated with transactions and improve performance. We have more than 35 years experience in managing big data, from publicly available information such as worldwide newspapers, magazines, articles, research, case law, legal regulations, periodicals, and journals - to public records such as bankruptcies, liens, judgments, real estate records, and other types of information.

To manage, sort, link, and analyze billions of records within sub-seconds, LexisNexis designed a data intensive supercomputer built on our own high performing cluster computing (HPCC) platform. This technology platform allows us to assist customers who need to sort through billons of records. We serve the risk information industry, which includes law enforcement, government, financial services, utilities, retail, insurance, health care, nonprofits and human resource professionals.

Our data and linking technology solves problems. For example, we help insurers assess their risk and streamline the underwriting process U.S. auto insurance and homeowner claims. We work with U.S. banks to help prevent crime, achieve regulatory compliance and mitigate business risk. Retail customers use our tools to predict and prevent fraud. Our anti-money laundering solutions help fight a growing problem in this post-9/11 world, and our cyber analytics platform helps fight terrorism and espionage by drilling through network data to identify government systems communicating with suspect systems around the world. Our background screening solutions contribute to preventing violence in the workplace, and to identify

criminals and predators who may apply for volunteer positions in charitable or nonprofit organizations.

We are a subsidiary of Reed Elsevier, a leading publisher and information provider that serves customers in more than 100 countries with more than 30,000 employees worldwide.

Material IssuesIn order to prioritize our economic, social and environmental issues, we conducted an assessment of our business strategy and stakeholder concerns. We then rated these issues on a scale of 1 to 3, with 3 demonstrating those issues of the highest priority. In conducting this assessment we reviewed the annual report of our parent company, Reed Elsevier, the LexisNexis Risk Solutions 2011 Value Propositions, and external marketing and communications materials. We conducted interviews with stakeholders across our business, reviewed statements made by advocacy groups and studied public information from industry experts and trade media.

The conclusion of our materiality assessment revealed that issues of data security, data integrity, customer credentialing and training, employee engagement and preventing loss and criminal activity rated highest among all issues important to our stakeholders and our business.

Issues such as energy use and climate change, workforce development, benefits and pay, diversity and inclusion, philanthropy, volunteering, and open source technology are issues that were also deemed material by the assessment.

2011 AT A GLANCE:• Headquarters: Alpharetta, Georgia • Number of offices: 27• Employees: 3,900• Most comprehensive database of public record

information in the U.S., with 34 billion public records.• Serve risk information industry clients including: law

enforcement, government agencies, financial services firms, collection agencies, insurance and health care providers, hiring managers, and other professionals.

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GovernanceGovernance and Reporting Reed Elsevier PLC, has its primary listing on the London Stock Exchange, and Reed Elsevier NV, has its primary listing on the Euronext Amsterdam Stock Exchange. Reed Elsevier PLC and Reed Elsevier NV maintain standards of corporate governance and disclosure applicable to companies listed on the stock exchanges of the United Kingdom, the Netherlands, and the United States. The effect is that a standard applying to one will, where not in conflict, also be observed by the other. Information and documents detailing our governance procedures are available to stakeholders online at www.reedelsevier.com.

The Reed Elsevier combined financial statements and the financial statements of the two parent companies, Reed Elsevier PLC and Reed Elsevier NV, are prepared in accordance with International Financial Reporting Standards.

(Read more about the Reed Elsevier corporate structure http://reporting.reedelsevier.com/ar11/governance/)

Ethical Standards and Business PracticesCode of Ethics and Business ConductThe Reed Elsevier Code of Ethics and Business Conduct (the Code) is disseminated to every employee and is publicly available at http://www.reedelsevier.com/corporateresponsibility/policies/Pages/Home.aspx. The Code sets forth the standard for Reed Elsevier’s corporate behavior and individual employee and directors’ behavior and incorporates the ten principles of the UN Global Compact. The Code begins with an introduction from the Chief Executive Officer of Reed Elsevier and sets out Reed Elsevier’s standards on key ethics and compliance matters, including policies related to protecting company interests and assets; relationships with business partners, customers, suppliers, and competitors; dealings with governments; respecting colleagues and communities; and data protection. The Code also explains the responsibility of employees to report wrongdoing.

All employees receive training on the Code, data privacy and security, and on preventing bribery. By the end of 2011, 100% of current active employees completed Code training at least once. Employees are required to take refresher courses on our Code.

Privacy, Security and ComplianceGood Privacy is Good BusinessToday, information has become one of the world’s most precious resources. Consider for a moment how information sharing is used to enrich virtually every aspect of daily lives. People depend on information to obtain car insurance, get jobs, secure loans, make online purchases and instantly communicate with friends and family. As advancements in technology have afforded new conveniences, new challenges have been posed to data privacy and security, and risks have increased. A strong privacy, security and compliance framework is no longer just something that is nice to have, it is now business critical for organizations and a safeguard in a marketplace that is increasingly conscious of the multiple risks associated with handling data.

Good privacy is good business, and at LexisNexis the responsible use of information is one of our core beliefs. While there is no silver bullet, management of these complex issues is possible through a holistic approach. With seven primary elements, the LexisNexis comprehensive privacy, security and compliance program is centered on people, process and technical management that is standards-based wherever possible.

We believe that there are seven key areas that differentiate us when it comes to privacy, security and compliance.

Good Privacy is Good Business. A robust, holistic approach to privacy and security is a necessity in the marketplace.

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Policies, Standards and GuidelinesWe have implemented strict policies, standards, and guidelines throughout the company that govern data access, protection, transport, restriction, retention, deletion and classification for customers, employees and vendors. Policies, standards and guidelines are reviewed and updated regularly—in light of changing legal, regulatory and operational environments, as well as to address new and emerging threats. Changes are communicated to our customers, employees and vendors on an ongoing basis.

Data SecurityWe deliver a consistently high standard for data security controls across systems. In addition to utilizing more than 150 internal controls designed to prevent unauthorized access, we conduct back-end suspicious activity monitoring to detect and respond to anomalous account activity. We also work proactively to identify and resolve potential vulnerabilities in our systems.

Audit and ComplianceWe maintain a robust audit and compliance program, which involves reviewing and testing policies, standards, guidelines, as well as legal and regulatory requirements, to determine their effectiveness and the level of compliance by customers, employees and vendors. Our audit program includes in-house and third-party audits as well as independent assessments.

CredentialingLexisNexis uses a proprietary customer credentialing process designed to confirm that sensitive, personal information is provided only to legitimate business entities with a permissible purpose for such access. Our credentialing and re-credentialing processes are used to evaluate:(1) customers, (2) LexisNexis employees, and (3) vendors/third parties. Through these processes, LexisNexis helps to mitigate the risk of fraud by verifying and re-verifying LexisNexis employee background information, customer and vendor business credentials, and permissible business purposes for accessing information products, systems, and data.

Accountability At LexisNexis, privacy, security and compliance are integrated into the business model. To us, accountability means fulfilling our obligations to customers, consumers, employees, regulators, stakeholders and shareholders.

Risk-Mitigation FrameworkWe promote the responsible use of information by employing a risk-management framework for privacy, information and physical security, and compliance. The framework is based on ISO 27002 and includes administrative, physical, and technical safeguards designed to reasonably protect the privacy, confidentiality, and security of personal information collected from or about consumers. Proprietary customer credentialing criteria and continuous security controls are also key components of the LexisNexis privacy, security and compliance framework.

Training, Communication, Outreach and Transparency We are committed to keeping both internal and external stakeholders informed and up-to-date about what we are doing to respect privacy and information security.

To aid employee understanding of our policies, we offer interactive online training to explain topics and the importance of compliance. All employees have mandatory compliance training each year. Additional training varies depending on the employee’s business and job function. Each course is implemented to meet a specific business compliance need and to ensure that employees are aware of their responsibilities.

These trainings provide examples of how policies apply in practice. Courses also highlight available resources to help employees with questions or concerns. All employees receive training on the Code, data privacy and security, and on preventing bribery. By the end of 2011, 100 percent of active employees completed bribery prevention training and data privacy and security training. 100 percent of employees in relevant job functions completed a course on fair competition and 100 percent of active US managers completed a course on preventing workplace harassment.

Customers and vendors are informed of their obligations relating to privacy, security, and compliance. Dedicated personnel are available to assist consumers with general inquiries and requests.

For a full statement on our Data Privacy Principles click here: ht t p:// w w w. l exi s n exi s .c o m/p r iva c y/d at a - p r iva c y-principles.aspx

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Solutions for Society Safer CommunitiesEvery day our employees and customers utilize our data and analytics capabilities to help maintain the safety of assets, institutions and even the most vulnerable members of our communities.

Helping in the recovery of missing children Most of us cannot imagine the feeling of losing a child or the shock and fear that a young person feels when they are separated from the care of their legal guardian. We developed the ADAMSM (Automated Delivery of Alerts on Missing children) program, to deliver a targeted response at a critical moment for children and parents.

Getting detailed information to the right places at the right time can make a difference. According to the National Center for Missing & Exploited Children (NCMEC), when a child is abducted (or “goes missing”), the first three hours are the most critical to returning a child home safely.

NCMEC faced the major challenge of distributing posters across targeted areas quickly enough for them to be most effective. In the beginning, they were manually faxing them out one at a time, but this was too slow of a process. Then they used an outside service but it was not dedicated to their needs only, which often resulted in next-day delivery of the posters. NCMEC needed assistance to rapidly distribute the missing children posters and we felt we were in a position to help.

As a result, a team of our associates developed the ADAM program, which was donated to NCMEC.

Since its launch in November 2000, it has helped return more than 125 children to their families.

“A photo is the most important tool in the search for a missing child,” said Avery Mann, a spokesman for NCMEC. “ADAM enhances our photo distribution efforts by rapidly distributing photos and information about missing children to targeted areas. The program is a key component of our recovery efforts.”

Leveraging our expertise to protect the innocentNCMEC sends a photo and details of a missing child incident to ADAM, including a geographic region believed to be the search area. ADAM then examines a database of all possible recipients and finds just those within a designated mile radius of the search area. Using an automated delivery system, ADAM distributes missing child posters to police, news media, schools, businesses, medical centers and other recipients within a specific geographic region. Using a dedicated fax service with 48 channels, ADAM can distribute 1,500 posters with data and a photo of the missing child within an hour and can also send messages as an email to mobile devices.

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2011 ADAM Distributions ADAM faxes about 120,000 missing child posters each month in cases involving endangered runaways, family abductions, non-family abductions and missing children. Over 2.6 million recipients including police departments, companies and organizations are participating in the LexisNexis ADAM Program.

“ We are thrilled each time a child is returned to his/her home with help from the ADAM program,” said Trish McCall, LexisNexis ADAM project director. “ADAM has proven to be very successful and it is truly an honor to assist NCMEC in the recovery effort of missing children.”

ADAM’S RESOLVED CASES OF MISSING CHILDREN

A twelve-year-old girl was last seen at home on April 5, 2011. NCMEC created a poster and distributed it via ADAM Fax within a 15-mile-radius of a town of interest in Wisconsin. Shortly after the distribution, her mother received information on the child’s whereabouts. As a result, on April 16, 2011, the child was reunited with her mother.

A teenage female was last seen at home in August 2010. NCMEC created a poster and distributed it via ADAM fax within a 50 mile radius of an area of interest in the state of Illinois. As a result, someone recognized the child at a gas station and alerted law enforcement officials. Upon responding to the information the police were able to return her to her home on February 4, 2011.

A 16-year-old male was last seen at home on February 22, 2011. A poster was created by NCMEC and distributed via ADAM to everal zip codes in North Carolina on February 23, 2011. Following the distribution, someone informed the child of the poster and upon hearing the information, the child returned home on February 24, 2011.

JUST ONE FAX OR EMAIL CAN MAKE A DIFFERENCE

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Enabling Better Decisions The success of a business depends on making good decisions, which requires being armed with the right information. At LexisNexis Risk Solutions, we use our data and technology to provide organizations with the information they need to make better decisions.

The impact of these better decisions extends beyond the business world. They can directly and positively impact society at an individual level, giving people access to credit that would otherwise be denied, thus creating opportunities for them to pursue an education, build a business, and enhance their lives.

Helping a long-ignored and underservedpart of the populationApproximately 70 million individuals, or 25 percent of American adults, lack enough credit information to generate a traditional credit bureau score. This can prevent these people from being considered for credit, regardless of their ability and willingness to repay their debt obligations In fact, many of these individuals may have sufficient income and other characteristics to be considered highly creditworthy. These people are referred to as “underbanked or underserved,” and the term is accurate, in that financial institutions are unable to effectively serve them due to their inability to assess their stability, ability, and willingness to repay.

Finding new ways to grant credit to the underservedWe have found that public records and other non-bureau data can be a highly effective tool for predicting future consumer behavior. For example, reviewing ownership status and value of assets can help to determine individuals’ ability to pay their bills. Similarly, analysis of

SHUT OUT AND MARGINALIZEDThin-file and no-file Americans are "traditionally marginalized or shut out of the credit system due to lack of information about their credit histories." – Collections & Credit Risk

phone listings, address change history, and professional licenses can provide insight into an individual’s stability. We have compiled, integrated, digitized, indexed and analyzed public records and non-traditional data from national, state and local data sources with the goal of making this alternative data centralized, accurate, cost-effective and easily available to our customers. The result is a predictive FCRA-compliant data repository and credit-scoring technology called LexisNexis® RiskView™, which is the only alternative data credit risk assessment solution endorsed by the American Bankers Association, through its subsidiary, the Corporation for American Banking.

The huge advantage that RiskView offers to the underserved is that it is capable of generating credit scores for many of the millions of people who are considered “thin-file” (very limited credit information) or “no-file” (no previous credit history) applicants.

• We can evaluate over 40 million more consumers than traditional credit solutions.

• We have active data files on approximately 37 million individuals with no credit history, and an additional 35 million individuals with less than 18 months of credit history.

• We can score approximately 65 percent of bureau no-file and 37 percent of thin-file consumers.

By leveraging our data and analytics to help our customers make better decisions, we can potentially enable millions of people to finally get the credit they deserve. That is good news for business and consumers alike.

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Anti-Money LaunderingMoney laundering fosters an environment of crime and corruption. When unchecked, jurisdictions that have lax money laundering regulations become highly susceptible to bribery of officials, unfair business practices and in some cases, market distortion. Criminal entities are allowed to operate and even expand their criminal activities, in societies without adequate regulation. These types of activities have a deeply adverse impact on society.

When it comes to the risk of being involved, even unknowingly, in money laundering or terrorist financing, the consequences can be serious. In response to today’s increased regulatory climate, global financial institutions are under intense pressure to comply with anti-money laundering and terrorism financing laws. When these companies do not exercise due diligence, not only are they assisting illegal activity, in some cases they might be violating national security and putting the lives of U.S. citizens at risk.

Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) was designed to curb money laundering and criminalize terrorist financing. Much of its legislation focuses on financial institutions, typically calling for due diligence to confirm the identities of the people and the entities the financial institutions are doing business with.

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. The sanctions can target individuals, entities or entire foreign countries for activities such as terrorism, narcotics trafficking, the proliferation of weapons of mass destruction or human rights violations. OFAC designates individuals, organizations or entities, vessels and territories on watchlists that many regulators require financial institutions to scan against their files.

To help organizations avoid financial and reputational risk for non-compliance and alleviate risk of fraud, our data and analytics offer solutions to the industry. While we help banks mitigate risks associated with fraud prevention and Know Your Customer (KYC) programs, ultimately our products aid in keeping illegal activity out of U.S. financial institutions and essentially preventing terrorists financing activities.

Our data and analytics help make it possible for financial institutions to continue to properly and expeditiously validate their accounts, research names on U.S. and international government watchlists and meet compliance requirements of the USA PATRIOT Act and OFAC.

Bridger Insight XG is an advanced due diligence solution that provides the intelligence necessary to research the legality of international transactions. It is a tool to help validate the entity and individual associated with financial transactions. Our solutions help preserve the financial integrity of institutions in the industry by making it easier to identify risk factors and giving the institution the opportunity to more efficiently investigate relationships that might jeopardize the institution’s reputation.

Anti-Money Laundering Solutions• Give banks the tools needed to have more complete

knowledge about international transactions and the people and entities who initiate them

• Provide tools for enhanced due diligence from domestic and international sources

• Help investment banks to fulfill the requirements of the USA PATRIOT Act and maintain compliance

• Protect the integrity of financial institutions by enabling the organization to proactively take steps to protect the clients’ assets.

The integrity of the banking and financial services industry hinges on the perception that its operations are rooted within a framework of high ethical standards. A reputation of integrity is a valuable asset for a financial institution.

If funds from money laundering and /or terrorism financing can be processed through a financial institution, the institution becomes part of the criminal network itself and loses its most valuable asset--its reputation. Evidence of such will have a damaging effect on the attitudes of other financial intermediaries, regulatory authorities, as well as consumers.

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Our People Our employees are our most important group of stakeholdersOne of our primary objectives is to successfully engage our employees by providing meaningful opportunities for their professional and personal growth. We recognize the collective talent and effort they contribute to our business and the communities in which we operate.

Employee engagementIn the fall of every year employees participate in the Risk Solutions Employee Engagement Survey. The survey measures employee motivation, commitment and advocacy. It allows us to measure our progress, see where we have improved, and identify areas where we still need to focus or increase our efforts. This is important in creating and maintaining a business environment where talented people want to work. Our management team carefully considers the results of our engagements scores and works aggressively to improve areas of concern highlighted from the survey. Our overall engagement score improved slightly over 2010, moving from 62% to 63% for 2011.

Our most recent survey results revealed that a significant majority of employees feel motivated to go the extra distance for colleagues and customers and are committed to contributing to the company’s success. The survey results also revealed that our lowest score is in” advocacy”, which measures how likely our employees are to recommend working at LexisNexis.

A closer review of the advocacy responses shows that employees feel we need to do a better job providing career development opportunities and creating a flexible work environment. This has been an area of focus for the organization and we have worked throughout 2011 to address it. We have formed employee focus groups,

management committees and other company-sponsored activities to assist in developing our strategy.

Developing our People Our Learning and Leadership Development Program (LLDP) was launched in 2011. LLDP provides education, exposure and experience. Each new People Manager, whether an external hire or internal promotion, is assigned an assessment that measures personal and interpersonal competencies, personality traits and cognitive skills. The results of the assessment are used to create personalized Individual Development Plans.

The program is designed to • Foster the leadership competencies that enable

organizational growth and business performance.

• Enhance organizational leadership and business acumen by broadening the competency proficiency of our management team.

• Develop a common language and approach to leadership effectiveness within our company.

• Establish an ongoing platform for continuous development of our managers.

We also offer employees at every level • The opportunity to develop individual career paths in

concert with his/her supervisor.

• A robust assessment component.

• Access to thousands of e-learning course offerings, libraries and a variety of classroom-based management courses led by top talent management partners.

• Programs and materials developed through partnerships with the most recognized and respected learning and development vendors.

• Complete curriculum management and tracking via the Risk Solutions learning management system.

VALUING OUR PEOPLE “It means we put the highest priority on recruiting, developing and retaining outstanding people. When people feel appreciated and recognized, they do their best work.” - Don Welsko, SVP Human Resources, LexisNexis Risk Solutions

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We believe our focus in this area will not only improve our engagement scores but will also help develop future business leaders.

Performance Development ProcessThe Performance Development Process (PDP) is our process for setting performance expectations, providing a foundation for performance feedback, ensuring that employees receive an annual performance review, and supporting development discussions with managers. Our goal is that each year every employee has a minimum of a bi-annual PDP.

RecognitionWe know that our people make the difference, and we believe that when they perform at levels that go above and beyond they should be rewarded for their efforts. One way we recognize outstanding contributions is through the Reed Elsevier Recognize Our People program. This program enables managers to recognize employees’ service milestones and outstanding performance. Employees accumulate points and redeem those points for gift cards and other items.

In addition to the Recognize Our People Awards, Risk Solutions employees can be awarded specially made coins from senior management, supervisor and /or peers. The coin program is based on a long-standing tradition among members of the U.S. military, many of whom carry a special coin that symbolizes their pride in their unit affiliation. Known to generations of American military personnel as “challenge coins,” they are a vital part of military life today and are valued by troops in every branch of service, as a symbolic token of the camaraderie the unit members share. In recent years, use of these custom-designed coins spread first to government agencies, and then into the corporate world, where they are now used to foster pride in individual and team accomplishments, and to commemorate important milestones.

Town Hall MeetingsWe host regularly scheduled Town Hall meetings where senior leaders of the company provide business and product updates, market trends and challenges to our business environment. It is an open forum that encourages employees to ask questions of our leadership team.

Workforce Employee Breakdown

Ethnicity: Gender:

White: 68%

Black: 13.5%

Asian: 8%

Hispanic/Latino: 6%

Other: 1%

Unidentified/No Response/Prefer Not to Answer: 3.5%

Women: 52%

Men: 48%

Tenure:Age:

Under Age 30: 15.4%

Age 31-50: 64%

51 and Older: 20.6%

15 years or more: 11%

10–14 years: 22%

6–9 years: 22%

3–5 years: 24%

1–2 years: 16%

Less than 1 year: 5%

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Wellness Employees have access to wellness tools and resources through REACH, a program launched by the company to all U.S. Reed Elsevier locations last year supporting employees’ overall well-being. Our offices have REACH captains who plan wellness events and activities using REACH resources and funding. Some of the programs available include Weight Watchers®, health fairs, biometric screenings, flu shots and wellness seminars covering a broad range of topics.

Diversity and InclusionAs stated in the Reed Elsevier Code of Ethics and Business Conduct, “We are committed to treating all employees and applicants for employment with respect and dignity, and we prohibit discrimination.” “We recruit, hire, develop, promote, discipline, and provide other conditions of employment without regard to race, colour, religion, national origin, gender, sexual orientation, marital status, age, disability, or any other category protected by law.”

We are committed to building a workforce that reflects the diversity of our customers and communities. The Reed Elsevier Diversity and Inclusion (D&I) Statement articulates our commitment to a diverse workforce and an environment that respects individuals and their contributions, regardless of characteristics such as their gender, gender identity and /or expression, age, disability, or sexual orientation.

In 2011, Reed Elsevier developed its Diversity and Inclusion Strategy and one of the stated goals in the strategy is to “build awareness about what diversity and inclusion means and its contribution to building our success”. A Diversity and Inclusion Manager Training Pilot Program will be introduced in 2012.

Employee Resource Groups The Multicultural GroupCelebrates different cultures, nationalities, races, religions, and ethnicities throughout the year with educational and special events.

The Veteran’s GroupSupports and honors all those who have served and are serving in any branch of the United States Military.

The PRIDE teamTakes an active role to form business partnerships with external organizations that promote LGBT tolerance and human rights.

Women ConnectedWorks to unleash the potential of all female associates through education, career planning, and networking and leadership development.

One of the best ways for us to grow is to surround ourselves with people who have already been where we want to go in our careers. The benefit of those relationships is one of reasons why so many women get involved in Women Connected. Women Connected brings women together and offers programs that provide tools to grow and support one another. Through special presentations, workshops and mentoring, women gain insights into how to maintain balance in various areas of their lives including career, family and health. Our women’s groups do not just support colleagues in their careers, they also provide a forum to share ideas and gain a greater understanding of business issues. Four chapters of Women Connected are active throughout the company: Alpharetta, GA., Boca Raton, FL., and Bolingbrook, IL. and Washington, D.C.

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Our Environment LexisNexis Risk Solutions is committed to sustainability, as well as making sure that we reduce our environmental impact by monitoring, tracking and working to reduce the use of water and energy and to reduce waste generation in our operations.

As one of the Reed Elsevier businesses, we are held to a high standard of environmental performance. In line with that standard, we contribute to Reed Elsevier’s overall effort to assess, prioritize and mitigate environmental risks as part of the overall risk management process. This includes adherence to Reed Elsevier’s Environmental Management System (EMS) which is based on the ISO 14001 global environmental standard. We manage the environmental risks of our activities and stipulate that “environmental risk is part of the overall risk assessment that business units are required to complete on an annual basis”. We consider, among other risks, those that require legislative compliance; have significant cost implications for the business; and those which may impact our reputation.

We are part of Reed Elsevier’s Environmental Champions network, working with other Reed Elsevier businesses to rank and track our environmental risks/opportunities. The Environmental Champions network meets periodically and is chaired by the Reed Elsevier CFO.

Reporting guidelines and methodology

CoverageFollowing the guidelines of our parent company, we report on all of our facilities for which we have operational control, collecting energy, water and waste data and emissions from refrigerant loss. Environmental and financial data covers full calendar years in line with financial reporting. Primary data was only captured for our largest locations. Data reported is based on both primary and secondary data. The criteria for primary data capture are owned properties and data centers and leased properties greater than 1,765 sq m (19,000 sq ft). The focus of our environmental report is on the 18 key Risk Solutions locations in the United States for which we have some operational control.

To calculate the impact of any smaller leased properties with few employees, locations are identified by type (e.g., office, storage, domestic, etc.) and Reed Elsevier’s 2010 global averages were used to estimate the balance. For these locations, we estimated electricity, water and waste impacts – all waste is attributed to landfill. In all shared buildings, impacts are allocated by occupied floor area.

Reed Elsevier collects information on our travel impacts and paper usage. In 2011, we expanded green house gas scope 3 impacts beyond supply chain and water, estimating employee commuting and the impact of home-based employees. To aid stakeholders, Reed Elsevier provides the environmental charting tool, in which you can select the LexisNexis Risk Solutions business unit and view our performance on each of the Reed Elsevier environmental standards.

CollectionWe used an online data collection tool, Hara, to collect energy, water, waste, and emissions from refrigerant loss. Reed Elsevier Global Procurement contributed supplier information, including paper usage and transport data from our travel supplier. Environmental data was subject to internal validation and substantive testing, before being reviewed and assured by Ernst & Young LLP.

Conversion factorsWe update conversation factors to the most recently available each year to take account of improvements in generation and the supply mix, with no material impact on results. In 2011, we used the US Environment Protection Agency’s eGrid 2010 version 1.1 year 2007 factors for US electricity supply. Supplier impacts are based on a study by Carbon River.

Intensity ratioAs our portfolio is subject to periodic changes, to avoid continual recalculation of baseline data following a change in our business, results are shown in both absolute and intensity terms. Intensity results are absolute results divided by revenue.

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Targets and standardsLexisNexis Risk Solutions employees take part in Reed Elsevier’s Environmental Champions network to help identify reduction possibilities wherever possible. In 2011, to further the progress in setting and achieving environmental standards, our Environmental Champions along with their counterparts at other Reed Elsevier businesses updated performance standard levels based on the previous performance and good practice.

Our impactWe continue to take steps to reduce our use of resources and adopt more techniques that reduce our impact and the cost of conducting business. Our CEO is responsible for complying with environmental policy and relevant government legislation and regulations. Reed Elsevier’s CFO is the most senior environmental advocate. In addition, many of our employees participate in employee-led environmental groups at many of our facilities helping us achieve environmental improvements at a local level through commuter incentive programs, recycling initiatives, and promoting environmental awareness.

The overwhelming majority of our revenue is from information-based products and services that are delivered online and we estimate that data centers are responsible for a significant amount of our environmental impact through energy usage. Our data centers are responsible for a disproportionate amount of our energy usage per person as they require large amounts of energy to run. The average Power Usage Efficiency (PUE) for the locations that are primarily designated as data centers is 1.78 and our target is to achieve 1.7 by 2015 even with increased demand.

Our PerformanceWe have 100% environmental reporting for the 18 locations in which we have operational control and we use these standards to benchmark our performance against peer businesses under Reed Elsevier. To date eight of our 18 locations have attained Reed Elsevier’s Green status by achieving five or more of the environmental standards.

View our performance on each of these standards by going to Reed Elsevier > Environmental charting tool and selecting LexisNexis Risk Solutions under business charts. For more

Reed Elsevier Environmental StandardsAnnual achievment of five required for green statusNew for 2012: Green+ status for sites attaining seven or more standards

AREA EXISTING NEW

Reporting Accurate reporting through the RE Group Environmental Survey N/A

Certification BS 8555 Phase 1 N/A

Travel Develop and Implement a local travel plan N/A

Energy 5,400 kWh per person or EPA energy rating of 69

5,000 kWh per person or EPA energy rating of 69

Climate Change 2 tonnes of CO2 per person or EPA energy rating of 69

1.8 tonnes of CO2 per person or EPA energy rating of 69

Water 11m3 per person 10m3 per person

Waste 60% recycling rate 65% recycling rate

Office Paper 3,000 bags per person 2,800 bags per person

Data Centre Performance 1.8 Power Usage Effectiveness 1.7 Power Usage Effectiveness

Award Recognition External recognition by a third party

MA

NAG

EMEN

TPE

RFO

RMA

NC

E

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information on these standards and our long-term targets to reduce environmental impact see Reed Elsevier CR Report > Environment > Key Issues.

Energy UsageIn 2011, as a result of a study conducted by our parent company, lighting, air management, and operations improvements opportunities were identified and we have begun to implement those changes in our data centers. Specifically, LexisNexis Risk Solutions operates three data centers. Two are located in Florida and the other is located at our headquarters in Georgia.

Across all Reed Elsevier businesses the average Power Usage Efficiencies across the major data centers improved from 1.75 in 2010 to 1.724, and the target is 1.7 by 2015 even with increased demand. In 2011, the Power Usage Efficiency for Risk Solutions’ data centers was 1.75 in Georgia and 1.69 and 1.71 in Florida.

In an effort to reduce the amount of energy used and improve energy efficiency in our data centers, we have invested in hot aisle/cold aisle systems to improve how air is transferred to the right location to efficiently cool data centers. We also invested in more efficient cooling units. These units have compressors that require less energy but provide adequate cooling. We also continue to upgrade our processors to higher density machines. In 2012, we will install additional aisle systems and higher performing air-conditioning units.

In our offices we added sub-metering to better monitor and manage energy usage and facility employees are trained to understand the data.

Thus far, we have an EPA Energy Star certification in one of our 18 locations. Seven of our 18 locations met or exceeded Reed Elsevier’s targets for energy consumption. We continue to upgrade lighting, replacing halogen lamps with more efficient LED fixtures, and fitting more daylight and motion sensors. We installed outdoor air economizers, utilizing free air from outside the building for cooling; re-roofed and insulated buildings to trap heat in the winter and added reflective top sheets to reflect heat in summer; and continued to implement simple measures like shutting doors to conserve heat, using blinds and reflective film to stop solar glare, and running local switch off campaigns.

Climate ChangeWe follow the lead of our parent company Reed Elsevier in supporting activities to reduce climate change, including reducing deforestation and protecting rainforests. We support the belief that adaptations to cope with changes in climate are also necessary. For more information on Reed Elsevier’s policies and performance regarding climate change see Reed Elsevier CR Report > Environment > Key Issues.

The way we impact climate change in our business is through our business travel, car fleet and building emissions that are primarily managed by Reed Elsevier. However, we play an important role in their efforts by implementing efficiency projects in our facilities, by consolidating space and by reducing indirect emissions.

• Home based employees: 16% of our workforce is home based. To improve the reliability of data, we intend to follow the lead of Reed Elsevier in carrying out pilot projects to directly measure energy usage by home based employees.

• Commuting: We encourage our employees to carpool or use alternative transportation wherever possible. In addition we partially subsidize employee vanpools and we are heavily invested in video conferencing technology. At our corporate headquarters, where over 1/3 of our office-based employees are located we partner with, The Clean Air Campaign, to reduce air pollution by offering commute options. To date we have reduced over 870 t CO2e.

Wherever possible, we participate in Reed Elsevier’s efforts to reduce the impact that our activities have on climate through proactive measures outlined in the Reed Elsevier Climate Change Statement such as:

• Utilizing our own environmental expertise

• Setting and striving to meet our environmental reduction targets

• Understanding our environmental footprint

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WasteAs an information-based business, we do not produce material amounts of non-recyclable hazardous waste. Even still, we continue to make efforts to reduce the waste that we contribute to landfills with recycling, incineration, and the creation of energy from waste.

Many of our offices are leased and situated in shared buildings so we work closely with managing agents and landlords as well as waste contractors. Where complete measurements are not available, we use a methodology to calculate waste based on regular weight sampling and the counting of waste containers leaving our premises. Although we know local municipalities carryout some sorting and recycling, we report all waste as going to landfill unless we have evidence to the contrary.

On average, our offices recycle 52 percent of their waste. Similarly 7 out of 18 offices achieved the Reed Elsevier standard of 60 percent recycling with one of our offices recycling 88 percent of their waste. We recycle all computer hardware and accessories (provided they can be stripped of proprietary and customer data). Each location has a designated recycling vendor that supplies certificates of recycling and/or destruction. To the extent that it is possible equipment in good working order is donated to charitable organizations.

In order to continue to reach and exceed the standards set forth by our parent company we have recycling programs at every site. Our electronic waste is disposed of according to regulations, and is only recycled if it cannot be reused.

PaperThe Reed Elsevier Paper Policy commits us to increasing the proportion of paper we buy with recycled and certified content and to only purchase PREPS grade 3 or 5 paper wherever possible. We continue to roll out multifunctional devices for printing, scanning, and copying, and by removing standalone printers; we decrease energy, as well as paper use.

Unlike other divisions of Reed Elsevier who are still heavily vested in print publishing, the vast majority of our paper usage is in support of our business rather than to create a publication. Thus, our focus is to conserve by adjusting our habits to reduce the amount of paper that we use.

We replaced large copier/printers with ones that are set to default to two-sided printing in black and white. As a result of our continued efforts to reduce paper usage, 11 of our 18 locations reduced their paper usage to less than the Reed Elsevier environmental standard of 3000 sheets per person. We set goals to reduce our target paper usage to less than 2800 sheets per person by the end of 2012. Our Green Teams help in this effort by sharing with colleagues the need to reduce, reuse, and recycle.

WaterWater is a significant resource for us as it is used to cool the facilities where much of our key technology is run and stored. Our Georgia data center utilizes practices to reduce the strain on local water supplies to meet Reed Elsevier standards by using well water irrigation and recycling the water used to cool the data center. The data centers in Florida do not use a chilled water system for cooling; the center is cooled with refrigerants.

Of our 18 key locations, eight met the Reed Elsevier environmental standard for water usage of 11 cubic meters or 11,000 liters per person.

Employee ActionEmployees are a key component of our efforts to recycle, reduce our carbon footprint and support conservation efforts in our communities. Green Teams at four of our offices meet bi-monthly to discuss ways they can promote environmental awareness and to plan conservation programs.

In 2011, employee environmental activities included

• Employees continued to plant vegetables in corporate garden in Alpharetta, Georgia and Dayton, Ohio.

• Multiple offices planned recycling events where employees collected regular household recyclables, clothes and electronics.

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Community As a company, we care about improving the lives of others in our local and global communities. We demonstrate our commitment by providing volunteer time and financial contributions to our communities.

Getting out in our communities Volunteerism is the cornerstone of our community involvement strategy. We are committed to providing our employees with the opportunity to volunteer in their local communities. Through our LexisNexis Cares program, employees are offered two paid days off to volunteer with nonprofit organizations.

We further support our employee volunteer efforts by designating a Cares Champion in each of our offices. Champions act as liaisons for our Cares programs by coordinating team-oriented volunteer projects, sharing best practices and participating in global Reed Elsevier Cares Champions Web conference meetings.

In the past we reported our volunteer hours with our sister company, LexisNexis Legal and Professional Services. This is the first year that LexisNexis Risk Solutions is reporting its own volunteer hours. In 2011, Risk Solutions employees logged 9,055 volunteer hours or just over 377 days. We are excited to see how our volunteer commitments will increase in 2012.

Alpharetta, GAOur annual LexisNexis Windward Challenge 5K raises money for the community. In 2011, we partnered with KaBOOM!, a national non-profit dedicated to saving play for America’s children, to build a playground on English Avenue, one of Atlanta’s most economically challenged neighborhoods. Thanks to our employees, vendors and local runners/walkers, we raised the funds to build the playground. In addition, 130 of our employees alongside 100 of the community’s residents, volunteered to build the playground. As a result, 200 kids in the community now have access to a brand new playground. To date, the Windward Challenge has raised $920,000 for metro Atlanta charities.

Recognizing Those Who Care Award: Laura Williams Laura Williams, Sr. Quality Test Analyst, received one of eight individual Recognizing Those Who Care Awards. The Award program is open to all Reed Elsevier employees and those selected joined a Habitat for Humanity project in Honduras, led by YS Chi, Head of Global Government Affairs for Reed Elsevier, and Chairman of the Elsevier Management Committee. Honorees had to clearly demonstrate the contribution made to business sponsored RE Cares activities, and the impact they had on the community and company. Laura was the first winner of this award from Risk Solutions.

IMAGE

Take a look at just a few of the volunteer projects our employees completed in 2011.

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St. Cloud, MNThe St. Cloud Children’s Home was established to foster and promote services for children and families to enhance their growth and development. In addition to abuse and neglect, many of the youth residing at the home face dependency issues and other stressors that result in self-destructive behavior and acts of violence. The St. Cloud Children’s Home offers a place for children to stay and receive treatment for problems in their lives and learn to relate to others in a positive and meaningful way. We volunteered to clean the children’s cottages, landscape the area, and stain the playground equipment and much more. More than 10 volunteers from the office came out and contributed their time to the home. For all of their hard work and dedication, the St. Cloud Children’s Home awarded the LexisNexis Risk Solutions office with the Distinguished Community Service Award for their ongoing support.

Duluth, GAThe ABC show “Extreme Makeover: Home Edition” was already set up to build a family a new house in the metropolitan Atlanta area and they were looking for volunteers to help. With only a couple of days notice, employees rallied to support this cause. Employees loaded up a bus and travelled 140 miles to the construction site in Madison, GA. The house was being built for the family a young girl that was seriously injured attempting to save her younger sister by pushing her out of the way of an on-coming truck. In order to get the home built volunteers worked in 100+-degree heat. It was completed on time and handed over to the family. “I am just so thankful to LexisNexis Risk Solutions for providing our group with such a major opportunity to help a wonderful cause. We had a blast and truly helped a child in need. It doesn’t get any better than that.” (Danielle Lee, Records Coordinator, CPU Division)

New Orleans, LAJeff Piefke, General Manager, VitalChek Network, Inc., a Lexis-Nexis Company, was inspired to organize a Cares project during the National Association for Public Health Statistics and Information Systems (NAPHSIS) / CDC National Center for Health Statistics (NCHS) joint annual meeting in New Orleans.

“When I learned that NAPHSIS was sponsoring the Second Harvest Food Bank at this year’s conference in New Orleans, I wanted to do something special to show our support,” said VitalChek General Manager Jeff Piefke. “We decided to forego our usual customer event and instead provide the conference attendees with a tangible way of giving back to the local community in a fun but meaningful way.”

With that in mind, VitalChek partnered with Second Harvest Food Bank of Greater New Orleans and Acadiana, an organization whose mission is to lead the fight against hunger in south Louisiana through food distribution, advocacy, education and disaster response. The conference attendees rose to the occasion, packing enough boxes to feed 150 families. In addition to packing food boxes, more than $4,000 was raised for help further the cause. These donations provided 16,764 meals to people in Louisiana, making an important difference in a state where one in eight people is struggling with hunger.

Bolingbrook, IL The SOS Children’s Villages organization works with disadvantaged families in order to prevent crises that can lead to family separation. The organization offers support to strengthen and stabilize families as much as possible. The village, located in Lockport, IL, is supported by the LexisNexis Bolingbrook office. Examples of employee support includes Mother’s Day and Father’s Day gifts for foster parents, donation of home essentials, educational materials such as books and school supplies, and support of a graduation party to celebrate The Village’s 100% high school graduation rate.

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What we giveIn addition to supporting the volunteer efforts of our employees, we also support them in their giving. Our Matching Gift Program helps employees double the impact of their financial contributions. The company matches individual contributions up to $1,000. In 2011, employee donations plus LexisNexis Risk Solutions matching funds totaled $219,000.

In 2011, we furthered our financial commitment to those who care, by offering Cash for Caring. This program provides an incentive for employees to volunteer 24 hours in a calendar year. Once the employee reaches 24 hours, Risk Solutions donates $500 to a qualified charitable organization of the employee’s choice. In 2011, we donated $51,500 to 102 nonprofit organizations across 17 states. We announced this program mid-year 2011 and expect to award more funds to support organizations in 2012. We believe that we are supporting local communities with our time, talent and resources by complementing LexisNexis Cares with Cash for Caring.

We make annual contributions to our nonprofit partners and also provide in-kind donations of our products and services.

Here is a look at our overall giving

Cash Donations 45.6%

In-Kind 41.2%

Matching Gifts 13.2%

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About LexisNexis Risk SolutionsLexisNexis® Risk Solutions is a leader in providing essential information that helps customers across all industries and government predict, assess and manage risk. Combining cutting-edge technology, unique data and advanced scoring analytics, we provide products and services that address evolving client needs in the risk sector while upholding the highest standards of security and privacy. LexisNexis Risk Solutions is part of Reed Elsevier, a leading publisher and information provider that serves customers in more than 100 countries with more than 30,000 employees worldwide.

For more information, visit www.lexisnexis.com/risk

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