Slide 1: Update on Barclays' ambition to be a net zero bank by 2050
Update on Barclays’ ambition to be a net zero bank by 2050 Barclays PLC November 2020 1 | Update on Barclays’ ambition to be a net zero bank by 2050 | Barclays PLC
Slide 2: Our approach to climate change
Our approach to climate change • We announced in March our ambition to be a net zero bank by 2050, and a commitment to align our financing in all sectors to the goals of the Paris Agreement – Across emissions from our own operations, (Scope 1 and 2), which are already net zero, and the emissions of
Slide 3: Partnering to address a global problem
Partnering to address a global problem • We have worked with leading industry and academic groups on common approaches to tackling the climate challenge, including: – Building on our work as a pilot bank for the Paris Agreement Capital Transition Assessment (PACTA) – a leading tool developed by the
Slide 4: Understanding the Greenhouse Gas Protocol
Understanding the Greenhouse Gas Protocol • The Greenhouse Gas Protocol provides comprehensive global frameworks to measure and manage greenhouse gas emissions, across what are known as three ‘scopes’ Scope 1 Scope 2 Scope 3 Indirect emissions from an Direct emissions from an Indirect emissions from
Slide 5: Introducing BlueTrack™
Introducing BlueTrack™ • BlueTrack™ is the methodology developed by Barclays for measuring our financed emissions, and tracking them at a portfolio level against the goals of the Paris Agreement 1. Select 2. Measure 3. Link 4. Aggregate sector client emissions to to portfolio benchmark emissions fin
Slide 6: Our approach to measuring emissions
Our approach to measuring emissions • BlueTrack™ uses both an absolute emissions metric, and an emissions intensity metric: Absolute Emissions Emissions Intensity Measurement of emissions per unit of Measurement of total emissions over time. output. If the same example company For example, if a comp
Slide 7: Our first two BlueTrack sectors
Our first two BlueTrackTM sectors Energy Sector Power Sector The Energy sector is responsible for extracting fossil The Power sector is responsible for generating the fuels from the earth – mainly coal, oil and gas world’s supply of electricity • All emissions related to fossil fuel extraction and u
Slide 8: Energy: Reducing absolute emissions by 15% by 2025
Energy: Reducing absolute emissions by 15%1 by 2025 • The absolute emissions benchmark for our Energy portfolio is taken from the IEA SDS scenario’s OECD fossil fuel production forecasts, which we believe most accurately reflect the geographic range of our client base • Our Energy portfolio has alre
Slide 9: Power: Reducing emissions intensity by 30% by 2025
Power: Reducing emissions intensity by 30%1 by 2025 • For our Power portfolio, we believe the IEA SDS electricity production pathway for the OECD is the most appropriate benchmark. The emissions intensity of the IEA SDS pathway is derived by dividing electricity total emissions by electricity produc
Slide 10: Accelerating the transition
Accelerating the transition An Energy Banking team assisting • Our Energy Banking team is a multi-disciplinary group that is helping clients accelerate the transition to a low-carbon economy, recognising the commercial clients in their opportunities that transition will create transition • By the en
Slide 11: Climate embedded in our governance structure
Climate embedded in our governance structure Barclays PLC Board The Board oversees social and environmental matters, including our approach to climate change Group Executive Committee Our net zero ambition is represented on Barclays’ Executive Committee (ExCo) by Sasha Wiggins, Group Head of Public
Slide 12: Barclays' climate journey
Barclays’ climate journey March 2020 • Announced ambition to be net zero • Updated restrictions for sensitive energy sectors May 2020 • Climate resolution passed at Annual General Meeting November 2020 • Update on methodology and targets for aligning our financed emissions 2021 onwards • Continuing
Slide 13: Further resources
Further resources ESG Resource Hub: home.barclays/society/esg-resource-hub/ ESG Report: home.barclays/content/dam/home- barclays/documents/citizenship/ESG/Barclays-PLC-ESG-Report-2019.pdf Barclays 2020 Annual General Meeting Notice of Meeting: home.barclays/content/dam/home- barclays/documents/inves
Slide 14: Appendix
Appendix 14 | Update on Barclays’ ambition to be a net zero bank by 2050 | Barclays PLC
Slide 15: Barclays' AGM climate resolution and sensitive energy sector commitments
Barclays’ AGM climate resolution and sensitive energy sector commitments • At the Annual General Meeting (AGM) in May 2020, shareholders endorsed the climate resolution and Barclays committed to: AGM Notice of Meeting1 pg.13 – Set an ambition to be a net zero bank in Scopes 1, 2 and 3 by 2050, in li
Slide 16: Contextualising Barclays' exposure to Energy and Power financing
Contextualising Barclays’ exposure to Energy and Power financing • As our clients make the transition to a low- 21% carbon world, we expect any reduction in 12% Corporate and Banking fees 22% revenue earned from financing fossil fuel 9% extraction or combustion to be replaced by Q320 YTD Group incom
Slide 17: Worked example of our BlueTrack methodology
Worked example of our BlueTrackTM methodology $100m in financing provided by Barclays Energy Company Energy and Power Company Power Company Determine what proportion of For a company that straddles the Energy Determine what proportion of a company’s total financing our and Power sectors (e.g. has a
Slide 18: Disclaimer and forward looking statements
Disclaimer and forward looking statements Disclaimer The information, statements and opinions set out in this document are for informational and reference purposes only. This document does not purport to be comprehensive nor provide any form of legal, tax, investment, accounting, financial or other