Barclays Plc · LSE:BARC
Barclays — ESG Presentation (February 2024)
51 slides from Barclays's sustainability presentation, Feb 20, 2024
Slide 1: FY23 ESG Investor Presentation
FY23 ESG Investor Presentation 20th February 2024
Slide 2: Contents
Contents Our ESG strategy and progress · · · · · · · · · · · · · · · 3 – 7 Climate and sustainability· · · · · · · · · · · · · · · · · · · · 8 – 24 Social · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·25 – 32 Governance · · · · · · · · · · · · · · · · · · · · · · · · · ·
Slide 3: Our ESG strategy and progress
Our ESG strategy and progress
Slide 4: Creating positive outcomes for our stakeholders
Barclays FY 2023 ESG Investor Presentation February 2024 4 Creating positive outcomes for our stakeholders Our Purpose Working together for a better financial future Our Vision The UK-centred leader in global finance A comprehensive and pre-eminent UK consumer, corporate, wealth and private banking
Slide 5: ESG milestones reflect our commitment to our Purpose
Barclays FY 2023 ESG Investor Presentation February 2024 5 ESG milestones reflect our commitment to our Purpose E Joined the Paris Pledge for Action E Signed statement of support of the FSB’s1 TCFD2 E Exceeded target to facilitate £100bn of E Joined PACTA3 pilot E Founding member of the NZBA7, part
Slide 6: We continue to advance our ESG agenda
Barclays FY 2023 ESG Investor Presentation February 2024 6 We continue to advance our ESG agenda Barclays has been named as the Best Bank for ESG in the UK for 2023 by Euromoney1 Environment Social Governance • Policy: Updated Climate Change Statement in February 2024, with new financing restriction
Slide 7: Our progress in FY23 against key metrics and targets
Barclays FY 2023 ESG Investor Presentation February 2024 7 Our progress in FY23 against key metrics and targets Targets FY22 FY23 Metric as at FY23 performance performance GHG emissions Scope 1 and 2 (market-based) Environment 90% (by end 2025) 91%1,2 93%Δ,1,3 reduction against 2018 baseline Source
Slide 8: Climate and sustainability
Climate and sustainability
Slide 9: Our climate strategy
Barclays FY 2023 ESG Investor Presentation February 2024 9 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 Reduc
Slide 10: Climate risk is integrated across Barclays
Barclays FY 2023 ESG Investor Presentation February 2024 10 Climate risk is integrated across Barclays Climate change poses various risks for Barclays. We manage climate risks across Reputation, Conduct, Legal and Model risks through their respective Principal Risk Frameworks. Climate Principal Risk
Slide 11: Executing our net zero operations strategy
Barclays FY 2023 ESG Investor Presentation 11 1 February 2024 Executing our net zero operations strategy We will continue to decarbonise our operations to meet our net zero ambition. For further details, see our Climate and Sustainability Report in our 2023 Annual Report Reducing our Scope 1 and 2 e
Slide 12: Barclays' financed emissions methodology
Barclays FY 2023 ESG Investor Presentation 12 2 February 2024 Barclays’ financed emissions methodology Our approach is underpinnedBlueTrack™ by our methodologies is our methodology to estimate for measuring our full in-scope and tracking balanceour sheet financed financed emissions emissions and to
Slide 13: BlueTrack dashboard shows our financed emissions targets and progress
Barclays FY 2023 ESG Investor Presentation 13 2 February 2024 BlueTrack™ dashboard shows our financed emissions targets and progress BlueTrack™ is our methodology for measuring financed emissions and tracking them at a portfolio level against the goals and timelines of the Paris Agreement. BlueTrack
Slide 14: Restrictive policies – Upstream Oil and Gas
Barclays FY 2023 ESG Investor Presentation 14 2 February 2024 Restrictive policies – Upstream Oil and Gas Barclays’ restrictions1 on Upstream Oil and Gas at a glance Project-level restrictions from 9 February 2024: • We will not provide project finance for expansion projects or for infrastructure pr
Slide 15: Restrictive policies – Unconventional Oil and Gas
Barclays FY 2023 ESG Investor Presentation 15 2 February 2024 Restrictive policies – Unconventional Oil and Gas Barclays’ restrictions1 on Unconventional Oil and Gas at a glance Previously announced restrictions From 9 Feb 2024 From 30 Jun 2024 No financing to: No direct financing: From 9 February 2
Slide 16: Restrictive policies – Thermal coal mining
Barclays FY 2023 ESG Investor Presentation 16 2 February 2024 Restrictive policies – Thermal coal mining Barclays’ restrictions1 on thermal coal mining at a glance Current restrictions 2030 2035 • No project finance for greenfield • No financing to new clients • Phase out financing to all clients •
Slide 17: Restrictive policies – Thermal coal-fired power generation
Barclays FY 2023 ESG Investor Presentation 17 2 February 2024 Restrictive policies – Thermal coal-fired power generation Barclays’ restrictions1 on thermal coal-fired power generation at a glance Current restrictions 2025 2030 2035 • No project finance to enable • No financing to clients that • No f
Slide 18: Working alongside our clients as they transition to a low-carbon economy
Barclays FY 2023 ESG Investor Presentation 18 2 February 2024 Working alongside our clients as they transition to a low-carbon economy Ambition Credibility Assesses clients’ past, present and future emissions Assesses the critical and supporting qualitative elements of clients’ Client Transition Fra
Slide 19: Engaging clients through our Client Transition Framework
Barclays FY 2023 ESG Investor Presentation 19 2 February 2024 Engaging clients through our Client Transition Framework Holistic reviews using CTF scores Embedding the CTF to complete assessments • We completed CTF assessments covering over 1,250 counterparties in 2023 across our Power, Energy, Steel
Slide 20: Leveraging our financial expertise to facilitate sustainable finance
Barclays FY 2023 ESG Investor Presentation 20 3 February 2024 Leveraging our financial expertise to facilitate sustainable finance Progress against our commitments Sustainable and Transition financing facilitated Green financing facilitated; target achieved seven years early $67.8bnΔ vs. target of $
Slide 21: Expanding our activities through specialist financing teams and products
Barclays FY 2023 ESG Investor Presentation 21 3 February 2024 Expanding our activities through specialist financing teams and products Barclays UK Green Home and Buy-to-let Green Barclayloan for Greener Home Reward Green Asset Finance Mortgages Business • Mortgage offering lower • Extended registrat
Slide 22: Sustainable Impact Capital: direct investments in climate innovation
Barclays FY 2023 ESG Investor Presentation 22 3 February 2024 Sustainable Impact Capital: direct investments in climate innovation Mission Investment principles Portfolio as at 2023 The Sustainable Impact Capital Portfolio has a Invest in propositions that are mandate to invest up to £500m into glob
Slide 23: Continued engagement on the transition towards a nature-positive economy
Barclays FY 2023 ESG Investor Presentation February 2024 23 Continued engagement on the transition towards a nature-positive economy Addressing nature and biodiversity considerations in our financing and operations • Financing restrictions that contribute to addressing nature and biodiversity-relate
Slide 24: We have continued to develop our approach on just transition
Barclays FY 2023 ESG Investor Presentation February 2024 24 We have continued to develop our approach on just transition Barclays continues to acknowledge the role financial institutions play in supporting a just transition • Piloted our approach to just transition in our Client Transition Framework
Slide 25: Social
Social
Slide 26: We are making progress against our DEI ambitions
Barclays FY 2023 ESG Investor Presentation February 2024 26 We are making progress against our DEI ambitions Gender Underrepresented Race and Ethnicity Females at Managing Director / Director level Members of the Board from an ethnically diverse background 2025 ambition: 33% Listing Rules Target2: ≥
Slide 27: Executing our DEI strategy: Five strategic priorities, through six core agendas
Barclays FY 2023 ESG Investor Presentation February 2024 27 Executing our DEI strategy1: Five strategic priorities, through six core agendas Inclusive and Equitable Culture Workforce Diversity • Creating an inclusive and equitable culture • Attracting, developing and retaining talent that helps reta
Slide 28: FY23: Investing in our colleagues, strengthening our business and culture
Barclays FY 2023 ESG Investor Presentation February 2024 28 FY23: Investing in our colleagues, strengthening our business and culture Early careers Developing our colleagues Listening to our colleagues • Times Graduate Employer of Choice Award – • Continued to deliver our flagship leadership • Our r
Slide 29: Supporting our customers and clients
Barclays FY 2023 ESG Investor Presentation February 2024 29 Supporting our customers and clients Cost of Living support SMEs Retail Cyber and digital trust SMS messages sent to 1.4m Over 900 masterclasses Expanded Barclays Local by Founding member of Stop retail customers, offering a provided throug
Slide 30: Unlocking skills and employment in the communities we operate in
Barclays FY 2023 ESG Investor Presentation February 2024 30 Unlocking skills and employment in the communities we operate in Building digital skills Building employability and Creating opportunities through Over 622,000 people upskilled in 2023 via our financial skills sport Digital Eagles Programme
Slide 31: Continue to enhance and further embed our approach to human rights
Barclays FY 2023 ESG Investor Presentation February 2024 31 Continue to enhance and further embed our approach to human rights During 2023 we worked towards two important milestones for our human rights work Saliency Assessment for Corporate and Investment Bank… …informing updates to Barclays’ State
Slide 32: Supporting businesses and fostering entrepreneurship
Barclays FY 2023 ESG Investor Presentation February 2024 32 Supporting businesses and fostering entrepreneurship Programme Description Mission Scale/Goal • FinTech workspaces in London and New York • To connect technology, talent and trends • Over 140 Rise onsite companies globally • Global virtual
Slide 33: Governance
Governance
Slide 34: Strong Board Governance
Barclays FY 2023 ESG Investor Presentation February 2024 34 Strong Board Governance Board Governance Framework Board Experience4 Barclays PLC Board Industry and leadership experience (no. of Directors) Chair: Nigel Higgins Board Nominations Committee Board Remuneration Committee Chair: Nigel Higgins
Slide 35: Climate and sustainability governance
Barclays FY 2023 ESG Investor Presentation February 2024 35 Climate and sustainability governance Oversight and management of climate-related issues are embedded within our governance structure Barclays PLC Board Board Board Sustainability Committee Board Risk Committee Board Audit Committee Board R
Slide 36: Remuneration for our Executive Directors is linked to non-financials
Barclays FY 2023 ESG Investor Presentation February 2024 36 Remuneration for our Executive Directors is linked to non-financials 2024 annual bonus 2024-2026 LTIP awards Performance measure Weighting Performance measure Weighting Profit before tax (ex. material items) 2026 RoTE (ex. material items) w
Slide 37: The Barclays Way – our Code of Conduct
Barclays FY 2023 ESG Investor Presentation February 2024 37 The Barclays Way – our Code of Conduct The Barclays Way outlines the Purpose, Values and Mindset which govern our way of working Our Purpose The reason our company exists; the societal need we fulfil Our Values Our Mindset Our moral compass
Slide 38: Appendix
Appendix
Slide 39: FY23 progress against our existing sector targets
Barclays FY 2023 ESG Investor Presentation February 2024 39 FY23 progress against our existing sector targets As part of our commitment under the NZBA1, we have set targets for material2 high-emitting sectors in our portfolio Progress against our existing sector targets Energy: -44% vs. 2020 baselin
Slide 40: FY23 progress against new sectors assessed
Barclays FY 2023 ESG Investor Presentation February 2024 40 FY23 progress against new sectors assessed We have expanded the sectors covered by BlueTrackTM New sectors assessed in 2023 Aviation: Set new 2030 target of -11% to -16% vs. 2023 baseline Agriculture: Set new 2030 target of -21% vs. 2023 ba
Slide 41: CTF Energy Portfolio Score Descriptions
Barclays FY 2023 ESG Investor Presentation February 2024 41 CTF Energy Portfolio Score Descriptions Score Description Clients are fully aligned with our NZE targets. This requires net zero targets (NZE 1.5°C-aligned or equivalent) across all relevant scopes, including Use of Sold Product (Scope 3, C
Slide 42: FY23 progress against our sustainable financing targets
Barclays FY 2023 ESG Investor Presentation February 2024 42 FY23 progress against our sustainable financing targets Facilitating finance for our clients and customers Making direct investments Green financing (£bn) Sustainable Impact Capital (£m) 113.7Δ Environmental Sustainability-linked (green) 25
Slide 43: We monitor our carbon-related assets and elevated risk sectors exposure
Barclays FY 2023 ESG Investor Presentation February 2024 43 We monitor our carbon-related assets and elevated risk sectors exposure Lending portfolio Capital markets financing Carbon-related assets Carbon-related sectors1 in wholesale credit Energy & Waters 6.5% Carbon-related assets (elevated (2022
Slide 44: Our ESG ratings performance
Barclays FY 2023 ESG Investor Presentation February 2024 44 Our ESG ratings performance Scale Agency Rating type 2019 2020 2021 2022 Current1 (best to worst) MSCI ESG rating AAA – CCC BBB A AA AA AA CDP Climate Change A–D_ A_ B B A_ B Questionnaire S&P Global Corporate 70 77 78 75 59 Sustainability
Slide 45: Barclays engages extensively in cross-industry initiatives (1/3)
Barclays FY 2023 ESG Investor Presentation February 2024 45 Barclays engages extensively in cross-industry initiatives (1/3) Theme Industry collaboration Barclays’ involvement/additional information Multi thematic Sustainable Markets Initiative Barclays is a member of the Sustainable Markets Initiat
Slide 46: Barclays engages extensively in cross-industry initiatives (2/3)
Barclays FY 2023 ESG Investor Presentation February 2024 46 Barclays engages extensively in cross-industry initiatives (2/3) Theme Industry collaboration Barclays’ involvement/additional information Climate and Glasgow Financial In 2023 Barclays contributed to the GFANZ Decarbonization Methodology w
Slide 47: Barclays engages extensively in cross-industry initiatives (3/3)
Barclays FY 2023 ESG Investor Presentation February 2024 47 Barclays engages extensively in cross-industry initiatives (3/3) Theme Industry collaboration Barclays’ involvement/additional information Climate and RMI’s Center for Climate Barclays became a Strategic Partner of the RMI (formerly Rocky M
Slide 48: Barclays has adopted a holistic approach to Financial Crime
Barclays FY 2023 ESG Investor Presentation February 2024 48 Barclays has adopted a holistic approach to Financial Crime Combined approach allows us to identify and manage relevant synergies and connections between the four key risk areas Group-wide Financial Crime Policy Sets minimum control require
Slide 49: We continue to foster a culture where our colleagues feel safe to speak up
Barclays FY 2023 ESG Investor Presentation February 2024 49 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 f
Slide 50: For further information:
Barclays FY 2023 ESG Investor Presentation February 2024 50 For further information: 2023 ESG Resource Directory: https://home.barclays/sustainability/esg-resource-hub/ Statements and Annual Report ESG-related reporting ESG data resources Other ESG resources Indices policy positions Taskforce on Cli
Slide 51: Important information
Barclays FY 2023 ESG Investor Presentation February 2024 51 Important information Disclaimers In preparing the climate and sustainability content within the Barclays PLC Annual Report wherever it appears (and to the extent it is repeated in this presentation), we have: • Made certain key judgements,