Better Health for All

LPL Financial Holdings Inc. operates as an independent broker-dealer and registered investment advisor, providing brokerage and investment advisory services.

The company's core business activities and products are financial in nature and do not directly involve health-related goods, services, or outcomes. Therefore, all KPIs related to 'Better Health for All' are not applicable to LPL Financial's operations, as its business model neither promotes nor harms health outcomes, nor does it engage in health-related R&D, education, or crisis response.

Fair Money & Economic Opportunity

LPL Financial does not offer lending or deposit services to consumers, nor does it offer consumer credit products. Therefore, the company scores 0 for underserved client share, pricing fairness, and exploitative fee exposure. The Securities and Exchange Commission (SEC) fined LPL Financial $18 million for anti-money laundering (AML) program violations from 2019-2023, specifically for not properly vetting customers and failing to close or restrict thousands of high-risk accounts.

This constitutes a major compliance issue, mapping to a score of -60. For financial literacy, LPL offers advisors access to the World of Business Reading Group (WBRG), a 6-week program for advisors to teach high school students. The WBRG curriculum was developed over four years, teaching more than 50 classes of high school students. This program reaches an unspecified percentage of customers (high school students) and has some outcome measurement (50+ classes taught), which maps to a score of -50.

Fair Pay & Worker Respect

LPL Financial's CEO-median pay ratio was 131:1, based on the CEO's 2024 pay of $12 million and the median employee compensation of $91,700.

The company's employee engagement, as measured by Glassdoor reviews, shows an overall rating of 3.6 out of 5 stars (72%) based on over 1,900 reviews. Additionally, the former CEO, Dan H. Arnold, was terminated for violating LPL’s Code of Conduct by making statements to employees that violated the commitment to a respectful workplace, following an investigation by an outside law firm.

Fair Trade & Ethical Sourcing

LPL Financial Holdings Inc. operates as a financial services company, providing brokerage and investment advisory services. Its business model does not involve the procurement or trade of physical commodities, nor does it have a traditional supply chain for physical goods.

Consequently, KPIs related to fair-trade certifications, supplier audits for welfare or sourcing, exposure to upstream labor practices, supply chain traceability, remediation processes for sourcing violations, high-risk material sourcing, and supplier diversity spend are not applicable or lack specific, quantifiable evidence within the provided articles. While a Vendor Code of Conduct is mentioned, no percentage of supplier contracts including enforceable ethical-sourcing clauses is provided.

No War, No Weapons

LPL Financial Holdings Inc. operates as a broker-dealer and registered investment advisor, providing financial services.

Its core business does not involve arms manufacturing, military contracts, or related activities. states the company has "No Military Contracting" and "No Controversial Weapons" involvement. Consequently, most KPIs related to defense, dual-use technology, exports, and procurement are not applicable to its business model. There is no evidence of the company investing any revenue in peacebuilding or disarmament initiatives.

Planet-Friendly Business

LPL Financial's total Scope 1, 2, and 3 emissions for 2022 were 9,435 tCO₂e, which is very low for a publicly traded services company, indicating a non-material footprint.

The company covers 100% of its corporate offices' energy with Green-e Certified Renewable Energy Certificates, and its San Diego headquarters uses 100% carbon-neutral electricity from biogas fuel cells. LPL's Boston office is in a LEED-certified building, and it has free-standing green buildings in Fort Mill, S.C., and San Diego, California, with three corporate campuses holding a WELL Health-Safety Rating. The San Diego headquarters is a net-zero energy building. The company used just over 5 million gallons of potable water in its offices in 2024. LPL Financial has a zero-waste-to-landfill initiative in its Fort Mill and San Diego campuses. No environmental compliance violations were mentioned in the provided articles.

Respect for Cultures & Communities

LPL Financial's business model as a financial services provider means that several KPIs related to direct cultural or community impact, such as cultural impact assessment protocols, FPIC processes, cultural site protection, and social license to operate, are not directly applicable to its core operations. The provided articles do not report any cultural appropriation incidents, nor do they detail specific community governance inclusion or dedicated cultural preservation investment.

There is no evidence of specific language inclusivity initiatives beyond general diversity efforts. Similarly, no cultural incidents requiring a response are mentioned. The articles do not provide specific quantitative data for KPIs such as formal partnerships with indigenous or local community groups, percentage of revenue reinvested in local development, local employment ratios, grievance mechanisms, average complaint resolution times, local procurement share, indigenous supplier count, charitable giving to cultural heritage organizations, non-core revenue to community funds, or cultural sensitivity training completion.

Safe & Smart Tech

A data breach occurred at CUSO Financial Services LP, a unit of LPL Financial, between December 19, 2023, and January 19, 2024.

This incident affected approximately 75,000 individuals due to unauthorized third-party access to an employee’s email account. A class action lawsuit alleges CUSO failed to implement reasonable data security practices, and that the attack mechanism was a known risk. LPL Financial offers a Cyber Fraud Guarantee, reimbursing 100% of realized losses from unauthorized access to LPL systems. LPL Financial appointed a Chief Data and Artificial Intelligence (AI) Officer and vets AI solutions across various scenarios, prioritizing balancing time-saving AI with compliance and regulatory risk management. The company states it invests in teams to monitor, detect, prevent, and respond to cyber threats, and integrates security into every new product, platform, or tool from conception to maintenance. LPL Financial actively monitors and enforces compliance with its security policy and related procedures. However, a class action lawsuit alleges failure to implement reasonable data security practices, which suggests a reactive approach to regulation. LPL Financial maintains and regularly tests firewalls, continuously updates anti-virus and anti-malware protection, and employs threat monitoring/intrusion detection. Recurring vulnerability checks and penetration testing are conducted, along with patching and modernization updates. Inactivity timeouts are enforced on computers. Security is integrated into every new product, platform, or tool from conception to maintenance. LPL Financial provides a secure digital platform for account information and advises users to enable multi-factor authentication (MFA) and create strong passwords.

Zero Waste & Sustainable Products

LPL Financial has implemented a zero-waste-to-landfill initiative at its Fort Mill and San Diego corporate headquarters, alongside recycling programs for various materials including batteries, eyeglasses, coffee pods, and print cartridges at these campuses.

The company has also implemented paperless processes, resulting in over a 50% reduction in statement mailings. Other initiatives include water harvesting at the Fort Mill office and office supply collection. LPL has company-wide waste reduction goals and targets. The company uses FSC-certified paper for some marketing materials. No waste disposal violations or citations were mentioned in the provided articles.