MASHINIi

PEARSON PLC.

PSON.LSE | Higher education

Pearson PLC is a global learning company offering educational content, assessment, and digital services to learners, educational institutions, employers, and governments. The company provides courseware, textbooks, and digital learning tools across various subjects and educational levels. Pearson al...Show More

Ethical Profile

Mixed.

Pearson PLC presents a mixed ethical profile. The company paid a $1 million SEC penalty for misleading investors about a 2018 data breach affecting millions of student records. Critics also point to March 2025 allegations of embedding code to send user data to Meta without consent. Internally, a 210:1 CEO to median employee pay ratio and a 15% mean gender pay gap raise concerns. However, Pearson is committed to ethical sourcing, with 92% of its paper from certified sources and a 41% reduction in GHG emissions since 2018. The company supports healthcare by integrating AI into nursing education. While a former subsidiary, Pearson Engineering, was acquired by an Israeli arms manufacturer, Pearson PLC no longer holds ownership.

Value Scores

Better Health for All10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing-10
-100100
Honest & Fair Business-10
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities50
-100100
Safe & Smart Tech20
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

10

Pearson demonstrates a strong commitment to Better Health for All through several initiatives. The company has exceptional mental health programs, including training 80 Mental Health First Aiders in the UK since 2015

1
, which led to a 369% increase in employees feeling comfortable discussing mental health
2
and a 94% increase in manager confidence
3
. It offers mental health assessments for children and adolescents
4
, operates a Global WELL digital therapy platform
5
, and hosted an ADHD Virtual Summit in October 2024 that updated almost 4,000 attendees
6
. Pearson provides comprehensive support for the healthcare workforce, with its Dynamo Healthcare Training and Consultancy Ltd (DHCT) achieving 100% timely success rates for healthcare training programs in the South West of England
7
. The company integrates generative AI study tools into its nursing series to address nurse shortages in the U.S.
8
and partners with Health Education England for NHS recruitment exams
9
. In healthcare education, Pearson offers comprehensive programs such as the three-year Healthcare Training Academy by DHCT
10
, provides mental health education resources for educators
11
, and upskilled over 5,000 registrants at the ED.tech Symposium in October 2024 on AI in education
12
. It also develops apprenticeships for Community Health Workers
13
. For healthcare data responsibility, Pearson maintains excellent data practices with comprehensive privacy protections
14
, aligning with NIST frameworks
15
, deploying the Cyturus platform
16
, and implementing mandatory training for all employees
17
. Pearson's products do not have direct safety implications, addiction potential, or involve pharmaceutical patents or food products, resulting in a neutral or not applicable score for related KPIs. No evidence of harmful revenue or significant negative health externalities from operations was found.

Fair Money & Economic Opportunity

0

Pearson PLC is a global learning company that does not offer financial services, such as lending, insurance, or deposit services. Consequently, KPIs related to consumer credit products, loan books, financial fees, lending compliance, debt products, banking access points, and financial product simplicity are scored 0, as they are not applicable to the company's operations. While Pearson's educational initiatives, including its Workforce Skills segment and college/career readiness programs, aim to enhance employability and economic opportunities, particularly in underserved communities, the provided articles do not offer specific percentages of total customers from underserved segments, measurable wealth-building outcomes for users (e.g., credit score increases, savings growth), or the percentage of profit reinvested in community finance initiatives. In September 2024, Pearson expanded its college and early career programming to more than half of its U.S.-based Connections Academy schools.

1

Fair Pay & Worker Respect

0

Pearson's CEO to median employee pay ratio was 210:1 in 2024.

1
The company reported a median hourly pay gap where women earned 88% of men's pay in 2023.
2
Employee engagement scored a Grand Mean of 4.09 out of 5 in 2023, placing the company in the 70th percentile of Gallup’s database.
3
Voluntary employee turnover was 16% in 2023.
4

Fair Trade & Ethical Sourcing

-10

Pearson sourced 92% of its paper from certified sources (FSC, PEFC, and SFI) in 2024.

1
No specific forced or child labor incidents were reported in 2024.
2
Major suppliers were subject to due diligence every three years in 2019.
3

Honest & Fair Business

-10

Pearson PLC incurred approximately $134.76 million in ethics-related regulatory fines in the past three years.

1
This includes a $1 million civil penalty from the U.S. SEC in August 2021 for misleading investors about a 2018 data breach.
2
Additionally, the company paid £105 million in 2021 related to an EU state aid matter
3
and received £2.005 million in fines from Ofqual for issues between 2019 and 2023 concerning English language tests and A-level qualifications.
4
Pearson maintains a "Raising Concerns and Anti-Retaliation Policy" with a third-party operated ethics hotline, PearsonEthics.com.
5
The Associate General Counsel for Ethics & Compliance reports on new and ongoing investigations to the Audit Committee at every meeting.
6
The company also has a comprehensive Anti-Bribery and Corruption policy, revised in April 2023, which applies to all entities and business partners.
7
This policy enforces a zero-tolerance stance on bribery and corruption, prohibits facilitation payments, requires accurate record-keeping, internal controls, periodic risk assessments, and audits.
8
Employees receive annual or biannual anti-bribery and corruption training and complete an annual Code of Conduct certification.
9

Kind to Animals

0

Pearson PLC is a global learning company providing educational content and services. While the company demonstrates commitments to sustainable paper sourcing

1
and environmental management,
2
these efforts are not quantified in terms of direct, measurable biodiversity outcomes (e.g., species recovery, habitat restoration metrics) as required by the rubric's KPIs. Consequently, there is no evidence to score any of the 'Kind to Animals' KPIs.

No War, No Weapons

0

Pearson PLC, a global learning company, has no known involvement in arms manufacturing, military contracts, or war facilitation, indicating no defense or arms-related activities in its core business. This also means it has no exposure to any weapons, no defense business to oversee, no dual-use portfolio, and no military AI use. Consequently, it is not subject to the Arms Trade Treaty, requires no weapons-related ethical red lines, has no conflict-linked partners, and no defense assets to divest. The company demonstrates an exclusive focus on peace and humanitarian technology, evidenced by the establishment of The Pearson Institute for the Study and Resolution of Global Conflicts in 2015 with a $100 million gift.

1
Starting in 2023, it offers courses on peace-building and conflict prevention.
2
However, its direct financial allocation to peacebuilding initiatives is quantitatively low. In 2015, it committed £1.5 million over three years to the "Every Child Learning" partnership
3
, and in 2023, it gave over £477k in humanitarian aid.
4
These amounts represent less than 0.5% of its annual revenue. Historically, in 2012 and 2014, non-US Group companies had minor sales of civilian goods, such as Financial Times subscriptions and Penguin books, to Iranian individuals and banks, with gross revenues of approximately £75,500 and £54,000 respectively.
5
Pearson has a Responsible Procurement Policy, engages with suppliers on human rights and the environment, and its sustainable procurement maturity score improved from good to advanced by EcoVadis.
6
The company is committed to respecting human rights and is recognized by external indices like FTSE 4 Good, DJSI World, and DJSI Europe
7
, receiving a negligible risk ranking from Sustainalytics and ranking in its industry.
8

Planet-Friendly Business

-20

Pearson's total market-based GHG emissions in 2024 were 238,926 tCO2e, representing a 5.9% reduction compared to 2023.

1
The company's new long-term targets were approved by the Science Based Targets initiative (SBTi) in 2024
2
, aiming for a 50% reduction in GHG emissions across operations and value chain by 2030 from a 2018 baseline
3
, and a 90% reduction for net zero by 2050.
4
Pearson sources 100% of its electricity through green tariffs, on-site generation, or Energy Attribute Certificates (EACs) in 2024.
5
The waste recycled in office spaces was 32.6% in 2024.
6
The company monitors 90% of its highest-risk suppliers through the EcoVadis IQ tool for climate-related risks.
7
Pearson procured 92% of its paper from certified sources (FSC, PEFC, and SFI) in 2024
8
, which set standards for banning deforestation.
9
The annual report includes climate-related financial disclosures consistent with TCFD recommendations.
10
Climate risk analysis covers multiple time periods up to 2050
11
, assessing physical risks using RCP 2.6 and RCP 7 scenarios
12
, and transition risks using four IEA WEO-2021 scenarios.
13
Pearson reported no material impact on the carrying value of any assets and liabilities as of December 31, 2024.
14
The company launched an Education Bond to support eligible projects targeting hard-to-reach learners and communities.
15

Respect for Cultures & Communities

50

Pearson provides extensive grievance mechanisms, with a multilingual Ethics and Compliance Portal (PearsonEthics.com) available 24/7 for all stakeholders, including the broader community, and offering anonymous reporting in most countries.

1
The company has proactive frameworks for cultural incident response, including multiple reporting channels, a commitment to review and investigate all reports, and enhanced content standards.
2
Pearson also implements Race and Ethnicity Editorial Guidelines
3
and the 'Nothing About Us Without Us' principle,
4
collaborating with Indigenous reviewers and authors to prevent cultural appropriation incidents.
5
Furthermore, Pearson demonstrates strong language inclusivity by operating in over 200 countries,
6
using students' first language in activities,
7
and providing a multilingual ethics portal.
8

Safe & Smart Tech

20

Pearson demonstrates a strong commitment to ethical AI governance, with a dedicated VP of AI Capabilities

1
, a governance committee for Pearson VUE
2
, and oversight from the Audit and Reputation & Responsibility Committees
3
. The company has robust compliance processes
4
, AI guidance
5
, and is a member of the TeachAI Advisory Committee
6
, contributing to policy resources
7
and collaborating on an AI literacy framework
8
. AI Literacy Modules were launched for students
9
, and generative AI applications are vetted by subject matter experts
10
. Pearson VUE contracts independent, third-party reviews and audits across AI design, development, and operations
11
. For privacy and security, Pearson holds ISO 27001 certification across Europe since December 2021
12
, and Pearson VUE test centers are globally certified to ISO 22301:2019 since 2013
13
. Mandatory training on AI, data privacy, and cybersecurity principles is provided for all employees, partners, and seasonal workers
14
, with 100% of employees completing Code of Conduct certification or training in 2024
15
, supported by phishing simulations
16
. Pearson introduced a Privacy Centre in 2022
17
to enhance user control over personal data and enforces multi-factor authentication for all critical systems
18
. Vulnerability management includes continuous monitoring by a Security Operations Control group
19
and internal assessment procedures
20
, with an aim to respond to vulnerability reports within 24 hours
21
. While Pearson has a Responsible Security Disclosure Policy
22
and aims for rapid response
23
, it does not offer a paid bug bounty program
24
. AI technology is responsibly designed to respect and protect data privacy
25
, and a program is implemented for GDPR compliance across the organization and products
26
. System tests, audits, and penetration testing are standard, ongoing practices
27
. Pearson VUE minimizes personal data collection and retention to what is required
28
. Pearson was in full compliance with the UK Corporate Governance Code and FRC Minimum Standard in 2024
29
and is actively preparing for compliance with the Corporate Sustainability Reporting Directive (CSRD)
30
and the EU AI Act
31
. AI functionality in Pearson VUE is limited to observation, with human proctors reviewing and taking necessary actions to address potential harms
32
. Pearson actively works with policymakers through forums like TeachAI to inform debate on AI for learners
33
and welcomes AI regulation
34
.

Zero Waste & Sustainable Products

-30

Pearson recycled 32.6% of its office waste in 2024.

1
The company reported no environmental prosecutions for waste disposal from 2013 to 2015.
2
Pearson has implemented multiple waste reduction initiatives, including increased investment in print-on-demand services, promoting local printing, consolidating orders, shifting to ocean-freight-first, streamlining and moving to cloud data centers, moving towards an inventory-free system, downsizing its property portfolio, and digitalization leading to reduced paper consumption.
3
These efforts resulted in a 21% reduction in water use, a 24.7% reduction in energy use, and a 21% reduction in paper used per £1m of revenue by 2015,
4
a 10% reduction in physical footprint in 2024,
5
and a reduction of nearly eight million book miles in 2024.
6
The company has set company-wide waste reduction targets, such as reducing absolute water use by 10% by 2018, energy use by 15% by 2018, and paper per £1m revenue by 25% by 2015.
7

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.