Slide 1: H124 ESG Investor Presentation
H124 ESG Investor Presentation 1st August 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 H1 2024 ESG Investor Presentation August 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 fr
Slide 5: ESG milestones reflect our commitment to our Purpose
Barclays H1 2024 ESG Investor Presentation August 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 gr
Slide 6: We continue to advance our ESG agenda
Barclays H1 2024 ESG Investor Presentation August 2024 6 We continue to advance our ESG agenda Barclays has been named as the Best Bank for ESG in the UK by Euromoney1 for the second year in a row Environment Social Governance • Policy: Updated Climate Change Statement in February 2024, with new fin
Slide 7: Our progress in H124 against key metrics and targets
Barclays H1 2024 ESG Investor Presentation August 2024 7 Our progress in H124 against key metrics and targets Targets FY23 H124 Metric as at H124 performance performance GHG emissions Scope 1 and 2 (market-based) Environment 90% (by end 2025) 93%Δ1,2 95%1,3 reduction against 2018 baseline Source 100
Slide 8: Climate and sustainability
Climate and sustainability
Slide 9: Our climate strategy
Barclays H1 2024 ESG Investor Presentation August 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 Reducin
Slide 10: Climate risk is integrated across Barclays
Barclays H1 2024 ESG Investor Presentation August 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 c
Slide 11: Executing our net zero operations strategy
Barclays H1 2024 ESG Investor Presentation 11 1 August 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 emi
Slide 12: Barclays' financed emissions methodology
Barclays H1 2024 ESG Investor Presentation 12 2 August 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 tra
Slide 13: BlueTrack dashboard shows our financed emissions targets and progress
Barclays H1 2024 ESG Investor Presentation 13 2 August 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 is
Slide 14: Restrictive policies – Upstream Oil and Gas
Barclays H1 2024 ESG Investor Presentation 14 2 August 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 proj
Slide 15: Restrictive policies – Unconventional Oil and Gas
Barclays H1 2024 ESG Investor Presentation 15 2 August 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 202
Slide 16: Restrictive policies – Thermal coal mining
Barclays H1 2024 ESG Investor Presentation 16 2 August 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 • Ph
Slide 17: Restrictive policies – Thermal coal-fired power generation
Barclays H1 2024 ESG Investor Presentation 17 2 August 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 fin
Slide 18: Working alongside our clients as they transition to a low-carbon economy
Barclays H1 2024 ESG Investor Presentation 18 2 August 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 Frame
Slide 19: Engaging clients through our Client Transition Framework
Barclays H1 2024 ESG Investor Presentation 19 2 August 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 H1 2024 ESG Investor Presentation 20 3 August 2024 Leveraging our financial expertise to facilitate sustainable finance Progress against our commitments Sustainable and Transition financing facilitated Barclays’ Sustainable Finance Framework and Transition Finance Framework can be found on
Slide 21: Expanding our activities through specialist financing teams and products
Barclays H1 2024 ESG Investor Presentation 21 3 August 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 registratio
Slide 22: Sustainable Impact Capital: direct investments in climate innovation
Barclays H1 2024 ESG Investor Presentation 22 3 August 2024 Sustainable Impact Capital: direct investments in climate innovation Mission Investment principles Portfolio as at H1 2024 The Sustainable Impact Capital Portfolio has a Invest in propositions that are mandate to invest up to £500m into glo
Slide 23: Continued engagement on the transition towards a nature-positive economy
Barclays H1 2024 ESG Investor Presentation August 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-related
Slide 24: We have continued to develop our approach on just transition
Barclays H1 2024 ESG Investor Presentation August 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 w
Slide 25: Social
Social
Slide 26: We are making progress towards our DEI representation ambitions
Barclays H1 2024 ESG Investor Presentation August 2024 26 We are making progress towards our DEI representation 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 Rul
Slide 27: Executing our DEI strategy: Five strategic priorities, through six core agendas
Barclays H1 2024 ESG Investor Presentation August 2024 27 Executing our DEI strategy: Five strategic priorities, through six core agendas rategic priorit r five st ies Inclusive and Equitable Culture Ou re Workforce Diversity ultu Wor le C kfo b rce • Creating an inclusive and equitable culture uita
Slide 28: FY23: Investing in our colleagues, strengthening our business and culture
Barclays H1 2024 ESG Investor Presentation August 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 – • Continue to focus on delivering to a higher • Our regu
Slide 29: Supporting our customers and clients
Barclays H1 2024 ESG Investor Presentation August 2024 29 Supporting our customers and clients Financial vulnerability SMEs Retail Cyber and digital trust Our early intervention Over 550 masterclasses Expanded Barclays Local by 69 Founding member of Stop strategies support c.200k provided through ou
Slide 30: Unlocking skills and employment in the communities we operate in
Barclays H1 2024 ESG Investor Presentation August 2024 30 Unlocking skills and employment in the communities we operate in Building digital skills Building employability and Creating opportunities through Over 1.1m1 people upskilled via our Digital Eagles financial skills sport Programme, enabling p
Slide 31: Continue to enhance and further embed our approach to human rights
Barclays H1 2024 ESG Investor Presentation August 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’ Stateme
Slide 32: Supporting businesses and fostering entrepreneurship
Barclays H1 2024 ESG Investor Presentation August 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 co
Slide 33: Governance
Governance
Slide 34: Strong Board Governance
Barclays H1 2024 ESG Investor Presentation August 2024 34 Strong Board Governance1 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 H1 2024 ESG Investor Presentation August 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 Rem
Slide 36: Remuneration for our Executive Directors is linked to non-financials
Barclays H1 2024 ESG Investor Presentation August 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 Financials 60% Financials 70% Of which: Of which: • 2026 RoTE (ex. materi
Slide 37: The Barclays Way – our Code of Conduct
Barclays H1 2024 ESG Investor Presentation August 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: Scenario analysis forms a key part of our approach to understanding climate risks
Barclays H1 2024 ESG Investor Presentation August 2024 39 Scenario analysis forms a key part of our approach to understanding climate risks External case study exercises covering Power 2023 Climate Stress Tests 2018 Utilities, Oil & Gas and Residential Real Estate through UNEP FI • Two climate stres
Slide 40: Barclays' strategy remains resilient to climate scenarios
Barclays H1 2024 ESG Investor Presentation August 2024 40 Barclays’ strategy remains resilient to climate scenarios Scenario Design • Internally designed scenarios over a five-year horizon aligned with the Bank's Medium Term Planning and Internal Stress Testing scenarios • Scenarios leverage scienti
Slide 41: FY23 progress against our existing sector targets
Barclays H1 2024 ESG Investor Presentation August 2024 41 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 baseline
Slide 42: FY23 progress against new sectors assessed
Barclays H1 2024 ESG Investor Presentation August 2024 42 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 base
Slide 43: CTF Energy Portfolio Score Descriptions
Barclays H1 2024 ESG Investor Presentation August 2024 43 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, Cat
Slide 44: H124 progress against our sustainable financing targets
Barclays H1 2024 ESG Investor Presentation August 2024 44 H124 progress against our sustainable financing targets Facilitating finance for our clients and customers Making direct investments Sustainable and Transition financing ($bn) Sustainable Impact Capital (£m) Environmental Social Sustainabilit
Slide 45: We monitor our carbon-related assets and elevated risk sectors exposure
Barclays H1 2024 ESG Investor Presentation August 2024 45 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 46: Our ESG ratings performance
Barclays H1 2024 ESG Investor Presentation August 2024 46 Our ESG ratings performance Scale 2023 and Agency Rating type 2019 2020 2021 2022 (best to worst) current1 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 Sustaina
Slide 47: Barclays engages extensively in cross-industry initiatives (1/3)
Barclays H1 2024 ESG Investor Presentation August 2024 47 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 Initiativ
Slide 48: Barclays engages extensively in cross-industry initiatives (2/3)
Barclays H1 2024 ESG Investor Presentation August 2024 48 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 wor
Slide 49: Barclays engages extensively in cross-industry initiatives (3/3)
Barclays H1 2024 ESG Investor Presentation August 2024 49 Barclays engages extensively in cross-industry initiatives (3/3) Theme Industry collaboration Barclays’ involvement/additional information Climate and PRA/FCA Climate The Climate Financial Risk Forum (CFRF) brings together UK regulators and s
Slide 50: Barclays has adopted a holistic approach to Financial Crime
Barclays H1 2024 ESG Investor Presentation August 2024 50 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 requireme
Slide 51: We continue to foster a culture where our colleagues feel safe to speak up
Barclays H1 2024 ESG Investor Presentation August 2024 51 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
Slide 52: For further information:
Barclays H1 2024 ESG Investor Presentation August 2024 52 For further information: 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 Climate- P
Slide 53: Important information
Barclays H1 2024 ESG Investor Presentation August 2024 53 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, e