Slide 1: H1 2023 ESG Investor Presentation
H1 2023 ESG Investor Presentation 27 July 2023
Slide 2: Contents
Contents Our strategy and ESG progress · · · · · · · · · · · · · · · · · · · · · · · 3 – 7 Climate and sustainability· · · · · · · · · · · · · · · · · · · · · · · · · · · 8 – 20 Social · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 21 – 27 Governance · · ·
Slide 3: Our strategy and ESG progress
Our strategy and ESG progress
Slide 4: Our Purpose and Values influence our strategy to drive positive impacts
Our strategy and ESG progress Climate and sustainability Social Governance Our Purpose and Values influence our strategy to drive positive impacts Our Purpose Our diversification Creating positive outcomes for our: We deploy finance responsibly Universal banking model enables us to to support people
Slide 5: ESG milestones reflect our commitment to our Purpose
Our strategy and ESG progress Climate and sustainability Social Governance ESG milestones reflect our commitment to our Purpose… E Founding member of the E Joined the Paris Pledge NZBA7, part of GFANZ8 for Action S Introduced socio-economic S Launched LifeSkills E Signed statement of support inclusi
Slide 6: …which continues to underpin our actions in H123
Our strategy and ESG progress Climate and sustainability Social Governance …which continues to underpin our actions in H123 Environment • Updated our Forestry and Agricultural Commodities Statement in Q223, with enhanced requirements for forestry, palm oil and soy and the inclusion of South American
Slide 7: Our progress in H123 against key metrics and targets
Our strategy and ESG progress Climate and sustainability Social Governance Our progress in H123 against key metrics and targets Metric Target(s) as at H123 FY22 performance H123 performance GHG emissions Scope 1 and 2 (market- based) -90% (2025) -91%Δ,1,2 -93%1,3 reduction against 2018 baseline Sour
Slide 8: Climate and sustainability
Climate and sustainability
Slide 9: Our climate strategy
Our strategy and ESG progress 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
Slide 10: Climate risk is integrated across Barclays
Our strategy and ESG progress Climate and sustainability Social Governance 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 and the
Slide 11: Executing our net zero operations strategy
Our strategy and ESG progress Climate and sustainability Social Governance 1 Executing our net zero operations strategy 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 emissions Scope 1 and 2 GHG emi
Slide 12: BlueTrack is how we measure our financed emissions
Our strategy and ESG progress 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 BlueTrac
Slide 13: Restrictive policies – thermal coal mining
Our strategy and ESG progress Climate and sustainability Social Governance 2 Restrictive policies – thermal coal mining Barclays’ thermal coal mining policy at a glance Current policies 2030 2035 • No project finance for • No financing2 to new clients3 • Phase out financing2 to all • Phase out finan
Slide 14: Restrictive policies – coal-fired power generation
Our strategy and ESG progress Climate and sustainability Social Governance 2 Restrictive policies – coal-fired power generation Barclays’ coal-fired power generation policy at a glance Current policies 2025 2030 2035 • No project finance to • No financing2 to clients • No financing2 to clients • Pha
Slide 15: Restrictive policies – other sensitive sectors
Our strategy and ESG progress Climate and sustainability Social Governance 2 Restrictive policies – other sensitive sectors Oil sands Arctic oil & gas • We will not provide financing1: • No direct3 financing of oil & gas projects in Arctic Circle o To oil sands exploration and production companies2;
Slide 16: Working alongside our clients as they transition to a low-carbon economy
Our strategy and ESG progress Climate and sustainability Social Governance 2 Working alongside our clients as they transition to a low-carbon economy Client Transition Framework (CTF) Business/events Our CTF will support our evaluation of our corporate clients’ current and Proactive engagement with
Slide 17: Leveraging our financial expertise to facilitate sustainable finance
Our strategy and ESG progress Climate and sustainability Social Governance 3 Leveraging our financial expertise to facilitate sustainable finance Progress against our commitments Sustainable and Transition financing facilitated Green financing facilitated $32.1bn1, 2 vs. target of $1trn by end 2030
Slide 18: Expanding our sustainable finance activities through specialist teams
Our strategy and ESG progress Climate and sustainability Social Governance 3 Expanding our sustainable finance activities through specialist teams Barclays UK Corporate and Investment Bank Treasury and Markets Green Home and Buy-to-Let Mortgages Sustainable Capital Markets Green bond investment port
Slide 19: Sustainable Impact Capital: direct investments in climate innovation
Our strategy and ESG progress Climate and sustainability Social Governance 3 Sustainable Impact Capital: direct investments in climate innovation Mission Investment principles Portfolio as at H123 Accelerate the transition to a net zero future Invest in propositions that are strategic, by investing
Slide 20: Continued engagement on the transition towards a nature-positive economy
Our strategy and ESG progress 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
Slide 21: Social
Social
Slide 22: We are making progress against our DEI ambitions
Our strategy and ESG progress 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: ≥1 202
Slide 23: FY22: Executing our DEI strategy against five DEI priorities
Our strategy and ESG progress Climate and sustainability Social Governance FY22: 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 p
Slide 24: FY22: Investing in our colleagues, strengthening our business and culture
Our strategy and ESG progress Climate and sustainability Social Governance FY22: Investing in our colleagues, strengthening our business and culture Attracting talent Developing our colleagues Listening to our colleagues • Doubled the number of recruiters to support • Continued investment in our fla
Slide 25: Supporting our customers and clients
Our strategy and ESG progress Climate and sustainability Social Governance Supporting our customers and clients Retail SMEs Launched our shared banking joint venture, Cash Access UK in February 2023 to >30,000 businesses supported through educational content and activities relating deliver more sust
Slide 26: Unlocking skills and employment in the communities we operate in
Our strategy and ESG progress Climate and sustainability Social Governance Unlocking skills and employment in the communities we operate in Building digital skills Building employability and financial skills Creating opportunities through sport >4,500 participants across our Launched ‘Kickstart Your
Slide 27: Supporting businesses and fostering entrepreneurship
Our strategy and ESG progress Climate and sustainability Social Governance Supporting businesses and fostering entrepreneurship Programme Description Mission Scale/Goal • FinTech workspaces in London and New York • To connect technology, talent and trends • Home to >120 FinTechs • Global virtual com
Slide 28: Governance
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Slide 29: Strong Board Governance
Our strategy and ESG progress Climate and sustainability Social Governance Strong Board Governance Board Governance Framework Board Experience4 Barclays PLC Board Length of tenure (Chairman and Non-Executive Directors) Chair: Nigel Higgins 4 2 3 25 Board Remuneration Board Nominations Committee Comm
Slide 30: Oversight and management of climate-related issues embedded within governance
Our strategy and ESG progress 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
Slide 31: Remuneration for our Executive Directors is linked to non-financials
Our strategy and ESG progress Climate and sustainability Social Governance Remuneration for our Executive Directors is linked to non-financials 2023 annual bonus 2023-2025 LTIP awards Performance measure Weighting Performance measure Weighting Average RoTE (ex. material items)2 25% Profit before tax
Slide 32: The Barclays Way – our Code of Conduct
Our strategy and ESG progress Climate and sustainability Social Governance The Barclays Way – our Code of Conduct The Barclays Way outlines the Purpose, Values and Mindset which govern our way of working across our business Our Purpose The reason our company exists; the societal need we fulfil Our V
Slide 33: Appendix
Appendix
Slide 34: FY22 progress against key metrics and targets
FY22 progress against key metrics and targets Metric Target(s) as at H123 FY21 performance FY22 performance -15% (2025) Energy absolute emissions (against 2020 baseline) -22%1 -32%1 -40% (2030) -30% (2025) Power emissions intensity (against 2020 baseline) -8%1 -9%1 -50% to -69% (2030) Environment Ce
Slide 35: FY22: Selected targets and policies and new announcements against them
FY22: Selected targets and policies and new announcements against them Previously announced target/policy FY22 announcement • Energy: Source 100% renewable electricity for our global real • Energy: New milestones of 115kWh/m2 per year average energy use intensity estate portfolio by end of 2025 acro
Slide 36: H123 progress against our net zero operations milestones
H123 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 corporate offices real estate portfolio -93%1 (
Slide 37: FY22 progress against our existing sector targets and new sectors assessed
FY22 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 in 2022 Automotive Manufacturing: Set new 2030 target of Energy: -32% vs. 2020 baseline
Slide 38: H123 progress against our sustainable financing targets
H123 progress against our sustainable financing targets Facilitating finance for our clients and customers Making direct investments Green financing1 (£bn) Sustainable Impact Capital (£m) 99.02 21.22 100 500 29.8 25.5 77.82 17.6 5.7 9.2 2.8 7.2 11.22 1.4 7.5 1.92 24 30 35 23 112 0.3 22.6 18.0 5.3 7.
Slide 39: We monitor our carbon-related assets and elevated risk sectors exposure
We monitor our carbon-related assets and elevated risk sectors exposure 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 and total financing: 26% advances and loan
Slide 40: Our ESG ratings performance
Our ESG ratings performance Agency Rating type Scale 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- A- Questionnaire S&P Global Corporate 70 77 78 75 68 Sustainability Assessment 100 – 0 (77th percentile) (88th percentile) (9
Slide 41: Barclays engages extensively in cross-industry initiatives (1/2)
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 for Alliance for Net Zero Financial institutions’ publishe
Slide 42: Barclays engages extensively in cross-industry initiatives (2/2)
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 and climate justice, climate-related disclos
Slide 43: Barclays has adopted a holistic approach to Financial Crime
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 requirements in four key risk areas 1 2 3 4 Anti-money laundering A
Slide 44: We continue to foster a culture where our colleagues feel safe to speak up
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 overseeing the integrity, independence and e
Slide 45: Barclays invests in maturing its resilience and cyber capability
Barclays invests in maturing its resilience and cyber capability to respond to threats which may impact our customers, clients and market stability Strong upstream detection and disruption Operate intelligence-led impact of economic crime to protect customers Enhanced resilience framework to triage
Slide 46: 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 47: Important information
Important information Disclaimers In preparing this H1 2023 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