Barclays Plc · LSE:BARC
Barclays — ESG Presentation (February 2023)
43 slides from Barclays's sustainability presentation, Feb 15, 2023
Slide 1: FY 2022 ESG Investor Presentation
FY 2022 ESG Investor Presentation 15 February 2023
Slide 2: Contents
Contents Our strategy and ESG progress · · · · · · · · · · · · · · · · · · · · · · · 3 – 9 Climate and sustainability· · · · · · · · · · · · · · · · · · · · · · · · · · 10 – 28 Social · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 29 – 35 Governance · · · ·
Slide 3: Our strategy and ESG progress
Our strategy and ESG progress
Slide 4: Fulfilling our Purpose
Fulfilling our Purpose creating positive influence our delivered through Our Purpose… and our Values… outcomes for our strategy… Group synergies… stakeholders Customers and clients Our diversification, We deploy finance Respect built to deliver responsibly to support double-digit Colleagues people a
Slide 5: ESG has been an ongoing focus for Barclays…
ESG has been an ongoing focus for Barclays… E Announced ambition to be a net zero bank by 2050 E Joined the Paris Pledge for Action E Launched BlueTrackTM to measure/track our financed emissions Pre- S Launched LifeSkills 2016 E Set 2025 targets for Energy and Power G Launched the Barclays Way – our
Slide 6: …and we continued to advance our ESG agenda in 2022
…and we continued to advance our ESG agenda in 2022 • Sourced 100% renewable electricity for our operations 1 and created a pathway to address our supply chain emissions • Extended assessment of our financed emissions to six sectors, adding Automotive Manufacturing and Residential Real Estate, and a
Slide 7: We measure our progress against key metrics and targets (1/2)
We measure our progress against key metrics and targets (1/2) FY21 FY22 Category Metric Target(s) as at FY22 performance1 performance1 GHG emissions Scope 1 and 2 (market- -90% (2025) -86%2 -91%Δ, 3 based) reduction against 2018 baseline Operational footprint Source 100% renewable electricity for ou
Slide 8: We measure our progress against key metrics and targets (2/2)
We measure our progress against key metrics and targets (2/2) Target(s) / benchmark FY21 FY22 Category Metric as at FY22 performance performance Females at Managing Director/Director 33% (2025) 28% 29%Δ level Colleagues ‘Maintain engagements at Colleague engagement 82% 84% healthy levels’1 Barclays
Slide 9: Our ESG ratings performance
Our ESG ratings performance Agency Rating type Scale 2019 2020 2021 2022 Year on year (best to worst) MSCI ESG rating AAA – CCC BBB A AA AA Stable CDP Climate Change A – D- A- B B A- Improved Questionnaire S&P Global Corporate 70 77 78 75 Declined slightly but relative Sustainability 100 – 0 (77th p
Slide 10: Climate and sustainability
Climate and sustainability
Slide 11: Our climate strategy
Climate and sustainability Social Governance Our climate strategy In March 2020, we announced our ambition to be a net zero bank by 2050, becoming one of the first banks to do so. We have a three-part strategy to turn that ambition into action: 1 2 3 Achieving net zero operations Reducing our financ
Slide 12: Selected targets and policies and new announcements against them
Climate and sustainability Social Governance Selected targets and policies and new announcements against them Previously announced target/policy New announcement • Energy: Source 100% renewable electricity for our global real • Energy: New milestones of 115kWh/m2 per year average energy use estate p
Slide 13: Progress against our net zero operations milestones
Climate and sustainability Social Governance 1 Progress against our net zero operations milestones Emissions reduction Others GHG emissions Scope 1 and 2 (market- Average annual energy use intensity across Renewable electricity sourcing for our global based) reduction against 2018 baseline our corpo
Slide 14: Executing our net zero operations strategy
Climate and sustainability Social Governance 1 Executing our net zero operations strategy Our operations have been carbon neutral1 since 2020. We will continue to decarbonise our operations to meet our net zero ambition Reducing our Scope 1 and 2 emissions Addressing our Scope 3 operational emission
Slide 15: BlueTrack is how we measure our financed emissions
Climate and sustainability Social Governance 2 BlueTrackTM is how we measure our financed emissions BlueTrackTM is our methodology for measuring and tracking our financed emissions at a portfolio level against the goals of the Paris Agreement as outlined in our BlueTrackTM Whitepaper • Methodology c
Slide 16: Progress against our existing sector targets and new sectors assessed
Climate and sustainability Social Governance 2 Progress against our existing sector targets and new sectors assessed We have 1.5°C-aligned targets set against 5 NZBA1 high-emitting sectors Progress against our existing sector targets New sectors assessed Automotive Manufacturing: Set new 2030 target
Slide 17: Restrictive policies – thermal coal mining
Climate and sustainability Social Governance 2 Restrictive policies – thermal coal mining Barclays’ thermal coal mining policy at a glance Existing policies 2023 2030 2035 that will continue • No project finance for • No financing2 to existing clients • Phase out financing2 to all • Phase out financ
Slide 18: Restrictive policies – coal-fired power generation
Climate and sustainability Social Governance 2 Restrictive policies – coal-fired power generation Barclays’ coal-fired power generation policy at a glance Existing policies 2025 2023 2030 2035 that will continue • No project finance to • No general corporate • No financing2 to clients • Phase out of
Slide 19: Restrictive policies – other sensitive sectors
Climate and sustainability Social Governance 2 Restrictive policies – other sensitive sectors Oil sands Arctic oil & gas • Current policy effectively reduced lending exposure to oil sands exploration and production companies1 to zero at the end of • No direct3 financing of oil & gas projects in Arct
Slide 20: We engage with our clients through various means and channels
Climate and sustainability Social Governance 2 We engage with our clients through various means and channels Client Transition Framework (CTF) Business/events Our CTF will support our evaluation of our corporate clients’ current and Proactive engagement with many of our clients expected progress as
Slide 21: Progress against our sustainable financing targets
Climate and sustainability Social Governance 3 Progress against our sustainable financing targets Facilitating finance for our clients and customers Making direct investments Social, environmental and sustainability-linked financing (£bn) Sustainable Impact Capital (£m) Achieved to date 247.6Δ, 1 Ac
Slide 22: Year on year progress against our sustainable financing targets
Climate and sustainability Social Governance 3 Year on year progress against our sustainable financing targets Highlights Social, environmental and sustainability-linked financing facilitated Green financing facilitated £247.6bnΔ,1 vs. target of £150bn by end 2025 £87.8bnΔ,1 vs. target of £100bn by
Slide 23: Expanding our sustainable finance activities through specialist teams
Climate and sustainability Social Governance 3 Expanding our sustainable finance activities through specialist teams Barclays UK Corporate and Investment Bank Treasury and Markets • Appointed Head of Sustainable Finance – BUK • Appointed Head of Sustainable Finance – CIB Sustainable Impact Capital G
Slide 24: Sustainable Impact Capital: Upsized target to £500m
Climate and sustainability Social Governance 3 Sustainable Impact Capital: Upsized target to £500m Mission Investment principles Portfolio as at FY22 Accelerate the transition to a net zero Invest in propositions that are strategic, future by investing £500m by the end of impactful and economic: 202
Slide 25: Reporting climate risk exposures in line with TCFD recommendations
Climate and sustainability Social Governance Reporting climate risk exposures in line with TCFD recommendations Lending portfolio Capital markets financing5 Carbon-related assets1 Carbon-related sectors in wholesale credit 7% Carbon-related assets1 2022 2022 (elevated risk exposures2) total loans an
Slide 26: Continued engagement on the transition towards a nature-positive economy
Climate and sustainability Social Governance Continued engagement on the transition towards a nature-positive economy Addressing nature and biodiversity considerations in our financing and operations • Piloted the Taskforce on Nature-related Financial Disclosures’ (TNFD) draft framework, including t
Slide 27: Barclays engages extensively in cross-industry initiatives (1/2)
Climate and sustainability Social Governance Barclays engages extensively in cross-industry initiatives (1/2) Theme Industry collaboration Barclays’ involvement/additional information Glasgow Financial In 2022, Barclays contributed to a publication ‘Guidance on Use of Sectoral Pathways Alliance for
Slide 28: Barclays engages extensively in cross-industry initiatives (2/2)
Climate and sustainability Social Governance Barclays engages extensively in cross-industry initiatives (2/2) Theme Industry collaboration Barclays’ involvement/additional information Barclays has been an active member of Ceres since 2019, participating in various working groups across environmental
Slide 29: Social
Social
Slide 30: We are making progress against our DEI ambitions
Climate and sustainability Social Governance We are making progress against our DEI ambitions Gender Ethnicity 2022 key highlights Females at Managing Director / Director level Members of the Board from an ethnically diverse background 2025 ambition: 33% Target2: ≥1 2022 29%Δ 71% 2022 2 11 Ethnicall
Slide 31: Executing our DEI strategy against five DEI priorities
Climate and sustainability Social Governance Executing our DEI strategy against five DEI priorities, through the lens of six core agendas DEI agendas Disability Gender LGBT+ Multicultural Multigenerational Socio-economic • Barclays Military and Veterans Outreach programme – supported 45 active duty
Slide 32: Investing in our colleagues, strengthening our business and culture
Climate and sustainability Social Governance Investing in our colleagues, strengthening our business and culture Attracting talent Developing our colleagues Listening to our colleagues • Doubled the number of recruiters to • Continued investment in our flagship • Used our all-colleague Your View and
Slide 33: Supporting our customers and clients
Climate and sustainability Social Governance Supporting our customers and clients Retail SMEs 10.5m >600 Barclays UK mobile active customers “Business Health Pledge Masterclassess” delivered, discussing with small • Basic current account – access to basic banking services for everyone businesses abo
Slide 34: Supporting our communities
Climate and sustainability Social Governance Supporting our communities Building digital skills Skills and employability >20,000 participants 18.1mΔ people across our digital upskill events in 2022 reached through Barclays’ LifeSkills since 2013 • Code Playground – provided >437,000 children a start
Slide 35: Supporting the early-stage and entrepreneurial ecosystems
Climate and sustainability Social Governance Supporting the early-stage and entrepreneurial ecosystems Programme Description Mission Scale/Goal • FinTech workspaces in London and New York • To connect technology, talent and trends • Home to > 120 FinTechs • Global virtual community providing access
Slide 36: Governance
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Slide 37: Strong Board Governance
Climate and sustainability Social Governance Strong Board Governance Board Governance Framework Board Experience3 Barclays PLC Board Length of tenure (Chairman and Non-Executive Directors) Chair: Nigel Higgins 4 2 3 24 Board Remuneration Board Nominations Committee Committee Chair: Nigel Higgins 0-3
Slide 38: Oversight and management of climate-related issues are embedded within our governance structure
Climate and sustainability Social Governance Oversight and management of climate-related issues are embedded within our governance structure Barclays PLC Board Board The Barclays PLC Board sets the strategy for the group Board Risk Committee Board Audit Committee Board Remuneration Committee Group E
Slide 39: The Barclays Way – our Code of Conduct
Climate and sustainability Social Governance The Barclays Way – our Code of Conduct The Barclays Way outlines our Purpose, Values and Mindset that govern our way of working Our Purpose Our Values Our Mindset How we behave Towards colleagues Towards customers/clients Towards society Managing risk To
Slide 40: We continue to foster a culture where our colleagues feel safe to speak up
Climate and sustainability Social Governance We continue to foster a culture where our colleagues feel safe to speak up Colleagues are encouraged to speak up about actions and behaviours that have no place in the organisation. Board Level “Whistleblowers’ Champions1” are responsible for ensuring and
Slide 41: Barclays invests in maturing its resilience and cyber capability
Climate and sustainability Social Governance Barclays invests in maturing its resilience and cyber capability to respond to threats which may impact our customers, clients and market stability Robust processes in place with strong foundations Established intelligence-led impact Digital Economic Crim
Slide 42: For further information:
For further information: 2023 ESG Resource Directory: https://home.barclays/sustainability/esg-resource-hub/ Annual Report ESG-related reporting ESG data resources Other ESG resources Statements and policy positions Indices Taskforce on Climate- Principles for Responsible Banking ESG (non-financial)
Slide 43: Important information
Important information Disclaimers In preparing this FY 2022 ESG Investor Presentation and the climate and sustainability content within the Barclays PLC Annual Report, we have: • made a number of key judgements, estimations and assumptions, and the processes and issues involved are complex. This is