# Barclays PLC ## Annual Report 2021 ## Part 1 --- # Growing. Together. Barclays is a British universal bank. We support individuals and small businesses through our consumer banking services, and larger businesses and institutions through our corporate and investment banking services. ### Our Purpose We deploy finance responsibly to support people and businesses, acting with empathy and integrity, championing innovation and sustainability, for the common good and the long term. ### ... influences our strategy ... * Our diversification, built to deliver double-digit returns * Strategic priorities to sustain and grow ### ... which we will deliver through the Power of One Barclays ... * The Power of One Barclays ### ... creating positive outcomes for our stakeholders. * Customers and clients * Colleagues * Society * Investors --- # Contents Parts 1 and 2 of the Barclays PLC 2021 Annual Report together comprise Barclays PLC’s annual accounts and report for the purposes of Section 423 of the Companies Act 2006. ## Inside this book ### Strategic report * Our value proposition: 2 * Chairman’s introduction: 4 * Chief Executive’s introduction and market overview: 6 * Our strategy: 10 * Our business model: 12 * Engaging with our stakeholders: 14 * Section 172(1) statement: 16 * Key performance indicators: 20 * Growing with customers and clients: * Barclays UK: 23 * Barclays International: Corporate and Investment Bank: 25 * Barclays International: Consumer, Cards and Payments: 27 * Growing with colleagues: * Our people and culture: 29 * Growing with society: * Together sustainably: 35 * Growing with investors: * Summary financial review: 40 * Managing risk: 44 * Viability statement: 47 * Non-financial information statement: 49 ### Environment Social Governance Report * Introduction: 52 * Environment: 53 * Social: 61 * Social and environmental financing: 68 * Governance: 79 * Additional disclosures: 99 ### Shareholder information * Key dates, Annual General Meeting, dividends, and other useful information: 105 ## Inside Part 2 ### Governance * Governance contents: 111 * Directors’ report: 112 * Remuneration report: 162 ### Risk review * Risk review contents: 200 * Risk management: 202 * Material existing and emerging risks: 204 * Climate change risk management: 216 * Principal risk management: 218 * Risk performance: 224 * Supervision and regulation: 289 ### Financial review * Financial review contents: 295 * Key performance indicators: 296 * Consolidated summary income statement: 298 * Income statement commentary: 299 * Consolidated summary balance sheet: 300 * Balance sheet commentary: 301 * Analysis of results by business: 302 * Non-IFRS performance measures: 309 ### Financial statements * Financial statements contents: 313 * Consolidated financial statements: 331 * Notes to the financial statements: 338 **Report of the auditor** The Auditor’s report on the Financial statements of Barclays PLC for the year ended 31 December 2021 was unmodified, and its statement under Section 496 of the Companies Act 2006 was also unmodified (see page 314 of Part 2 of the Annual Report 2021). The Barclays PLC Strategic Report 2021 was approved by the Board of Directors on 22 February 2022 and signed on its behalf by the Chairman. --- # Our value proposition. Strong economies need strong banks. This is true not only because finance is the lifeblood of economic prosperity, but also because the way banks facilitate that finance can have positive effects for society too. We deploy finance responsibly to support people and businesses, acting with empathy and integrity, championing innovation and sustainability, for the common good and the long term. We are able to do so because of our diversification. As a British universal bank, we have diversity in the types of customers and clients we serve – from individuals and small businesses to global corporations to governments – as well as the geographies we operate in and the types of income we generate. This diversity gives us resilience through economic cycles and gives us the platform to deliver a consistent level of financial performance. That, in turn, means we can better serve our stakeholders. We aim to deliver for our customers and clients, create a great place to work for colleagues, support society and provide consistent returns to shareholders. As we target sustainable growth for our Company, our stakeholders will be able to grow with us. ## Demonstrating the benefits of diversification ### Group income by business (£bn) | | Personal Banking | Barclaycard Consumer UK | Business Banking | Consumer, Cards and Payments | Global Markets | Investment Banking | Corporate Banking | Total Group Income | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **2021** | 3.9 | 1.3 | 1.4 | 3.3 | 6.4 | 3.7 | 2.3 | **£21.9bn** | | **2020** | 3.5 | 1.5 | 1.3 | 3.4 | 7.6 | 2.7 | 2.1 | **£21.8bn** | | **2019** | 4.0 | 2.0 | 1.4 | 4.4 | 5.3 | 2.5 | 2.4 | **£21.6bn** | ### Group income by region (£bn) | | United Kingdom | Europe | Americas | Asia Pacific | Total Group Income | | :--- | :--- | :--- | :--- | :--- | :--- | | **2021** | 11.3 | 2.4 | 7.2 | 1.1 | **£21.9bn** | | **2020** | 11.2 | 2.1 | 7.4 | 1.0 | **£21.8bn** | | **2019** | 11.8 | 1.8 | 7.1 | 0.9 | **£21.6bn** | ### Group profit before tax (£bn) | | Barclays UK | Barclays International | Head Office | | :--- | :--- | :--- | :--- | | **2021** | (0.7) | 2.5 | 6.7 | 8.4 | | **2020** | (1.1) | 0.5 | 3.6 | 3.1 | | **2019** | (0.8) | 1.0 | 4.1 | 4.4 | ### Basic earnings per share (p) * **2021**: 37.5 * **2020**: 8.8 * **2019**: 14.3 --- # Our value proposition continued Barclays’ two divisions – Barclays UK and Barclays International – are an important combination providing breadth of insight and reach across our markets. ### Adapting at scale to support Our UK retail and business bank, combined with our international consumer lending, cards and payments franchise, gives us breadth in consumer financial services. The depth and quality of our customer data helps us understand the ever-changing needs and expectations of consumers and small businesses, meaning we can adapt our business to deliver next-generation, digitised products and services. This scale and versatility also meant we could support the UK Government’s COVID support programmes. ### Experience and insight As one of the few global diversified banks outside of the US, and a scale corporate and investment bank in the US, we can support our CIB clients with a different perspective. We offer expertise in a wide range of services, including financial advisory, capital raising, financing and risk management services. These services help facilitate corporations, financial institutions, and governments worldwide. As the capital markets become an increasingly important source of finance for these clients, our capability in this area is critical to support their needs and economic growth, and to grow our business. Using our experience and insight, we can deliver growth for our stakeholders and make a real contribution to societal challenges. ### Progress of consumer digital adoption * **Number of registrations on the Barclays app**: 10m * **Number of logins on the Barclays app**: 3bn+ ### Capital market position of Barclays and the opportunity presented from growing markets #### Corporate and Investment Bank revenue ranks and market shares (%, #) | | Global Markets | Investment Banking | | :--- | :--- | :--- | | **2021** | 4.6 (#6) | 3.7 (#6) | | **2020** | 4.8 (#6) | 3.6 (#7) | | **2019** | 4.3 (#6) | 4.1 (#6) | #### Growth in public capital markets since 2018 ($trn) * **2018 (Total 123)**: 53 (Bonds outstanding), 70 (Equity market capitalisation) * **2021 (Total 193)**: 72 (Bonds outstanding), 122 (Equity market capitalisation) ### ESG financing growth #### Green financing facilitated (2018-2030) (£bn) | | Environmental | Sustainability-linked (green) | Total | | :--- | :--- | :--- | :--- | | **2021** | 22.6 | 7.2 | 29.8 | | **2020** | 14.8 | 2.8 | 17.6 | | **2019** | 7.8 | 1.4 | 9.2 | #### Social, environmental and sustainability-linked financing facilitated (2018-2025) (£bn) | | Social | Environmental | Sustainability-linked | Total | | :--- | :--- | :--- | :--- | :--- | | **2021** | 35.7 | 22.6 | 10.8 | 69.2 | | **2020** | 41.2 | 14.8 | 5.0 | 60.9 | | **2019** | 23.9 | 7.8 | 3.1 | 34.8 | --- # Chairman’s introduction 2021 was a challenging year in many respects, but Barclays responded well. All of our colleagues can be very proud of their achievements during the year. ### Optimism for the future The defining backdrop to 2021 was the continuation, and evolution, of the COVID-19 pandemic, together with the associated economic uncertainties. Our colleagues have continued to work hard, adapting well to the mixed home/office environment, while also confronting the dreadful reality of the various COVID-19 waves, such as we saw in India in Q1 2021. > "Colleagues should be very pleased with the strong results this year and the high degree of capital and operational resilience achieved against this backdrop." ### Performance While the Group benefited from extraordinary levels of activity in Investment Banking and Global Markets during the COVID-19 pandemic, it also faced declines in consumer spending and card balances. The welcome policy responses of governments to the pandemic brought considerable relief to individuals, households and companies, as well as a prolongation, at least until recently, of the low interest rate environment. We are also pleased to have been able to distribute returns, through a resumption of dividends and a commencement of share buy-backs, to our shareholders. This performance was in no small way a credit to Jes Staley, who left Barclays as Chief Executive towards the end of the year, and the team he assembled. As a consequence of having an effective succession plan in place, the Board had no hesitation about asking CS Venkatakrishnan (known as Venkat) to take on the leadership of the Company. Tushar Morzaria has informed the Board of his intention to retire and the Board is delighted to have, in Anna Cross, such a strong internal successor. --- # Chairman’s introduction continued ### Looking ahead 2022 will also be a challenging year, albeit mainly for different reasons compared to 2021. In Venkat’s letter to shareholders he paints a picture around three major themes which will shape much of Barclays’ evolution – the opportunities and threats of digitisation, the continuing growth of the public and private global capital markets and the overarching importance of our environmental and other societal responsibilities. Our UK retail business continues to adapt to a world in which over 90% of interactions undertaken through bank branches no longer require a branch visit and many of our new customers do not visit one at all. I believe that our commitment to society as a whole is well reinforced by our community and charitable activities. There are important issues ahead on the environment as well. Barclays remains focused on its net zero ambition and committed to Paris alignment across all of its financing activities. Our work to do more to embrace the Race at Work agenda has also made progress. This year, we are on track to achieve our goal of doubling the number of Black Managing Directors working for Barclays. ### Thank you > "We go forward in 2022 with a new Chief Executive and Finance Director and I am as optimistic for the future stewardship of the Company as I am grateful for the contribution of those who held office before them." Nigel Higgins Chairman --- # Chief Executive’s introduction and market overview Banking is undergoing a deep transformation driven by a number of major forces of change. Each brings challenge and opportunity for Barclays. It is essential that our strategy reflects these challenges and opportunities, and that we adapt and innovate to grow. ### Challenge and opportunity > "Banking is undergoing a deep transformation driven by three major forces of change: technology, the growth of capital markets, and climate transition. Each brings challenge and opportunity for Barclays." ### A Universal bank, based in Britain We are a British bank with a universal model, offering a range of services to clients worldwide. Group Profit Before Tax for 2021 is £8.4bn and Group Return on Tangible Equity for the year is 13.4%, with both our operating divisions – Barclays UK and Barclays International – delivering double-digit returns. We also remain highly capitalised, with a CET1 ratio of 15.1% as at year end. Given this strength, we have been able to announce a return of over £2.5bn of excess capital to shareholders for 2021. Our diversification has been an essential feature of the resilience of the Group through the ongoing COVID-19 pandemic. Over the last five years, Barclays’ share price has declined by 16%, but this is less than the 26% decline in the FTSE 350 UK Bank Index over the same timeframe. In stark contrast, we have meaningfully underperformed our US peers, who are up 66% on a combined basis over the same period. --- # Chief Executive’s introduction and market overview continued ### Winds of change, and opportunity Banking is undergoing a deep transformation driven by three important forces of change: technology, the growth of the public and private capital markets, and the climate transition. ### 1. Next-generation consumer financial services Digitisation has liberated finance, providing our customers and clients with an explosion of cheaper and better products and services. Our challenge and opportunity is to provide customers with equal, and possibly better, convenience and functionality than they receive from these firms. We must continue to advance technology, of course, but we must also have an innovative mindset. > "We must provide the same ease and flexibility for our customers that they get from technology firms, and invest not only to keep pace but to stay ahead." ### Facts and figures * **Profit before tax**: £8.4bn (2020: £3.1bn) * **Return on Tangible Equity**: 13.4% (2020: 3.2%) * **CET1 capital**: 15.1% (2020: 15.1%) * **Total payout per share**: 15p (2020: 5p) --- # Chief Executive’s introduction and market overview continued ### 2. Growth of the public and private global capital markets Barclays is the sixth-largest global investment bank, and the largest not domiciled in the US. The value of our franchise depends on the growth and health of the global capital markets. > "The value of our franchise depends on the growth and health of the global capital markets." As the public markets have grown, so too have the private ones, at a greater pace. Since 2018, the total assets under management in the private markets have grown 65%, from $6.0trn to $9.8trn. The capital markets business is cyclical and can be volatile. Equally, our business requires scale to sustain earnings in weaker times, and versatility to adapt to them. ### 3. Transition to the low-carbon economy We may now be on the threshold of an era of innovation that aims to halt and negate the deleterious effects on our planet of previous inventions. Financial firms have a central role to play in this transition, providing credit and intermediating investment. Barclays must have a constructive role in managing the transition. That means being the trusted partner for our customers and clients as they transition, advising and supporting as they adapt their business models and lifestyles to become more sustainable. --- # Chief Executive’s introduction and market overview continued While we whole-heartedly embrace the net zero ambition, for ourselves and the world, we must be mindful of the risks. ### The economic environment We pursue our business priorities conscious that we are in more than usually uncertain times. ### Supporting inclusive growth I believe strongly in the role of a bank like Barclays to support inclusion in all its forms. > "I believe strongly in the role of a bank like Barclays to support inclusion in all its forms. Inclusion supports political and social stability, and sustainable economic growth." ### Thank you None of the success we achieved this year could have taken place without the dedicated effort of colleagues all across the organisation. C. S. Venkatakrishnan Group Chief Executive, Barclays --- # Our strategy Our universal bank model provides us with strength and stability, and we have priorities to sustain and grow our business. ## Sustaining and growing... ### Our Purpose informs our strategy We deploy finance responsibly to support people and businesses, acting with empathy and integrity, championing innovation and sustainability, for the common good and the long term. ### Our diversification, built to deliver double-digit returns Our diversification means we are resilient through economic cycles and can deliver double-digit returns. * A large scale retail and business bank in the UK. * An international bank containing: * a top tier global corporate and investment bank * a broad international consumer lending, cards and payments franchise. ### Strategic priorities to sustain and grow * Deliver next-generation, digitised consumer financial services. * Deliver sustainable growth in the CIB. * Capture opportunities as we transition to the low-carbon economy. --- # Our strategy continued ### Deliver next-generation, digitised consumer financial services As technology transforms consumer financial services, we are building and delivering improved products and services for our customers, leveraging our payments interconnection and improving our efficiency. * Investing in digital capabilities to improve service for customers and unlock new sources of income: * accelerating digital access and adoption, while ensuring we do not leave customers behind * building more cost-effective infrastructure * using the quality and scale of our data to better understand customer needs, anticipate trends and deliver more competitive products and services. * Realising value from investment in Payments across the Group, delivering £900m of additional income between 2020 and 2023. * Expanding unsecured lending in the UK, US and Europe through Corporate partnerships. * Create a competitive Wealth franchise to efficiently service our customers’ evolving needs. ### Deliver sustainable growth in the CIB As the capital markets grow, we will seek to maintain our market position as a top six global investment bank while investing in new capabilities for our clients. * Building consistent strength in investment banking, expanding in new economy sectors, Equity business and M&A. * Prioritising digital investment to ensure we are an electronic first markets business, while growing our share in Securitised Products and Macro Rates, FX, and EM. * Capture greater client flow in Equities and disrupt Prime financing. * Broaden corporate banking product capability, particularly in Europe and US. * Selectively expand the CIB internationally, including in the Middle East and China. ### Capture opportunities as we transition to a low-carbon economy We want to be alongside customers and clients as they transition to a low-carbon economy, using our advisory and financial expertise to help them navigate this period of extraordinary change. * Using our financial and capital markets expertise to support the scale-up of low-carbon technologies, infrastructure and capacity. * Supporting clients to decarbonise by providing advice and finance, including supporting transition away from fossil fuels. * Continuing to develop green and sustainable banking products, including green mortgages, bonds, loans and investment funds. * Investing equity capital in sustainability-focused start-ups with growth potential. * Continuing to make progress to achieve our ambition to become a net zero bank by 2050, including aligning all of our financing to the goals of the Paris Agreement. --- # Our business model We deliver our strategy through the Power of One Barclays which brings our organisation closer together to create value. ### Creating synergies ### We deploy our resources... We can draw on a set of intangible factors and tangible assets that drive value creation. * **People, values and mindset**: Our people are our organisation. We deliver success through a purpose-driven and inclusive culture. * **Our brand**: Our brand equity instils trust, lowers the cost of acquiring customers and clients and helps retain them for longer. * **Technology and infrastructure**: Our deep technology and infrastructure capabilities drive customer experiences and support strong resiliency. * **Operations and governance**: Our risk management, governance and controls help ensure customer and client outcomes are delivered in the right way. ### ... serving our diversified customer base across all of their financial needs… Thanks to our wide range of products and services across markets, we define ourselves as a ‘Universal bank’. * **Move**: We facilitate transactions and move money around the world. * **Lend**: We lend to customers and clients to support their needs. * **Connect**: We connect companies seeking funding with the financial markets. * **Protect**: We ensure the assets of our clients and customers are safe. * **Invest and advise**: We help our customers and clients invest assets to drive growth. --- # Our business model continued ### ...delivered through The Power of One Barclays... We bring our organisation closer together to create synergies and deliver more value. * Provide customers and clients with the fullest range of our products and services. * Join up different parts of the Group so capabilities in one can benefit another. * Apply Group-wide technology platforms to deliver better products and services. * Make the Group more efficient and cut costs. ### ... providing clear outcomes for our stakeholders. The resilience and consistency provided by our diversified model, means we can grow together. * **Customers and clients**: Supporting our customers and clients to achieve their goals with our products and services. * **Colleagues**: Helping our colleagues across the world develop as professionals. * **Society**: Providing support to our communities, and access to social and environmental financing to address societal needs. * **Investors**: Delivering attractive and sustainable shareholder returns on a foundation of a strong balance sheet. --- # Engaging with our stakeholders Barclays aims to create value for everyone we serve, balanced across the short and the long term. We think about our core stakeholders as belonging to four groups: customers and clients, colleagues, society, and investors. ## Better engagement to grow together ### Customers and clients Our customers and clients are at the heart of everything we do. We are committed to their best interests and endeavour to serve them better, and engage with them regularly to help us achieve that. **How we responded?** We continued to play a role in supporting customers and clients impacted by the pandemic. We continued to invest in enhancing our digital propositions and electronic trading-driven business to drive efficiency and scale. Barclays Digital Eagles and Money Mentors helped customers use our digital platforms to build financial confidence and plans. We facilitated £29.8bn of green financing in 2021, up 69% from £17.6bn in 2020, and continue to develop our sustainable product set. We have completed over £1bn in Green Home Mortgages since 2018, extended our eligibility criteria this year and helped 48,000 first time buyers onto the property ladder. ### Colleagues Our people are our most valuable asset. They make a critical difference to our success, and our investment in them protects and strengthens our culture. **How do we respond to them?** In 2021, our Be Well programme continued to provide support for colleagues to look after their physical and mental health. We focused on three key areas in particular; commitment to make Barclays a ‘Mental Health Confident’ organisation, further development of our supportive culture and a renewed emphasis on sustainable working. We launched a new partnership with LinkedIn Learning providing extensive digital development to all colleagues globally. * **88%** of colleagues believe their line manager supports their wellbeing. --- # Engaging with our stakeholders continued ### Society Delivering long-term value depends on deep and thoughtful engagement with the numerous individuals and interest groups that represent wider society. **How do we respond to them?** We have published detailed climate disclosures in a separate TCFD Report. We continued to encourage and support initiatives that promote further harmonisation and consistency in the reporting of ESG and sustainability topics, including the work of the International Sustainability Standards Board (ISSB) under the auspices of the IFRS Foundation. We initiated a targeted review of clients operating in sectors and geographies exposed to forced labour risks, and engaged with clients in the agricultural commodity sector on their exposure to deforestation risks in their supply chain. * **£100bn**: Committed to facilitating £100bn green finance by 2030. ### Investors Engaging with our shareholders and other market participants helps us to understand their priorities and drive better outcomes for all stakeholders. **How do we respond to them?** * Our CEO, C.S. Venkatakrishnan held introductory discussions with a number of our largest institutional shareholders following his appointment at the start of November. * At the 2021 AGM, we committed to table a Say on Climate vote at the 2022 AGM. * We established a dedicated ESG Investor Relations team to articulate our long-term strategic narrative and interact with a wider range of stakeholders. * Investor Relations continued to refine its comprehensive engagement programme, facilitating discussions on all key topics. This resulted in being shortlisted for Best overall Investor Relations team for 2021 as voted by investors and analysts. * **650+**: Meetings with investors across equity, debt and ESG. --- # Section 172(1) statement The Directors have acted in the way that they considered, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and this section forms our Section 172 disclosure, describing how, in doing so, the Directors considered the matters set out in Section 172(1)(a) to (f) of the Companies Act 2006. ## Considering the interests of stakeholders as we continue to evolve our strategic priorities ### Section 172(1) statement The Directors provide this statement setting out how they have had regard to the matters set out in Section 172(1)(a) – (f) of the Companies Act 2006 when performing their duty to promote the success of the Company under Section 172. Our Section 172(1) statement provides details of how the Directors have engaged with and had regard to the interests of our key stakeholders. ### How does the Board engage with stakeholders? The relevance of each stakeholder group may differ depending on the particular decision the Board is taking, as may the method of engagement used by the Board. The Board engages directly with stakeholders on certain issues, but the number and distribution of the Group’s stakeholders and the size of Barclays overall means that stakeholder engagement often takes place at an operational level. The Board also receives regular reports from individual business areas and from key Group functions. ### Engagement in action: Evolving our Strategy It is the Board’s responsibility to establish the Company’s strategy. Given its fundamental importance, the Directors considered matters relevant to both the Company’s and the wider Group's strategy at every scheduled Board meeting in 2021. The Board strongly believes that it is important to have regard to the views of our key stakeholder groups as we evolve our strategy. --- # Section 172(1) statement continued ## Deliver next-generation, digitised consumer financial services As set out in our 2020 Annual Report, the COVID-19 pandemic together with a low interest rate environment inevitably brought challenges for our consumer-facing businesses in Barclays Bank UK PLC, and our Consumer, Cards and Payments business. It also accelerated a number of existing trends in customer and client behaviour which we have seen continue during 2021. Against this background, one of our core priorities is to deliver next-generation, digitised consumer financial services to ensure we remain competitive and continue to meet the needs of our customers and clients, while maintaining our societal commitment to provide access to banking. In overseeing the evolution of this core priority, the Board has sought to ensure, and satisfy itself, that the views of a range of stakeholders have been taken into account as well as maintaining oversight of how the strategy is implemented within Barclays, including: * engaging with management on the evolution of our UK business * reviewing the investment priorities of the Group to ensure that they support the further digitisation of our consumer businesses * Venkat spending time engaging closely with colleagues in Barclays Bank UK PLC, and our Consumer, Cards and Payments business * considering a broad range of financial and non-financial measures * discussing the importance of resiliency of our technology platforms Key to successful delivery of this priority will be creating the workforce of the future. The Board has sought and listened to the views of colleagues, through direct engagement at Board meetings, comprehensive reporting of the results from Your View and Here to Listen surveys, attendance at leadership events and roadshows. --- # Section 172(1) statement continued ## Deliver sustainable growth in the CIB In our 2020 Annual Report, the Board set out the Group’s strategic pillars which highlighted our intention to continue to strengthen our diversification by business, geography and income type. As such, delivering sustainable growth in the CIB, within the Board-approved risk appetite, is one of the key priorities set by the Board. In developing the strategy for the CIB, the Board has taken into account the views of a wide range of stakeholders, considering in Board discussions matters including the contribution the business makes to the Group’s returns, feedback from our shareholders on ensuring the CIB is right-sized in the context of the Group to deliver sustainable returns, and from a colleague perspective ensuring support for the growth and investment plans of the business. During 2021, our Directors met with a number of customers and clients to discuss our strategy to deliver sustainable growth in the CIB. Mindful of Barclays’ ambition to be a net zero bank by 2050 and as part of the evolution of Barclays’ climate strategy, the Board has also overseen the development of CIB’s strategy to both: * deliver financial support to help our clients transition their businesses to the low-carbon economy * develop green and sustainable banking products, including bonds, loans and investment funds. During 2021, the Board received an update on the performance of Barclays International, including the CIB at every Board meeting. The Board has overseen the development of a robust investment plan which is reflected in the Group's Board-approved Medium Term Plan. The Board has carefully monitored the governance and risk management framework for the CIB to ensure that growth opportunities are subject to appropriate controls, in line with risk appetite and sustainable. --- # Section 172(1) statement continued ## Capture opportunities as we transition to a low-carbon economy Barclays’ climate ambition, set by the Board, is to be a net zero bank by 2050 and Barclays has committed to align all of its financing activities to the goals of the Paris Agreement. Within this context, the Board is focused on the delivery of this ambition, while at the same time capturing new opportunities to deepen client relationships during the transition and new growth opportunities for Barclays’ business. The Board is clear on the need for transition to happen in a co-ordinated and orderly way that preserves jobs, living standards, social cohesion and energy security. In continuing the development of Barclays' climate strategy through the course of 2021, the Board has engaged with a range of stakeholders. Barclays was an active participant at COP26 in November 2021. Ahead of COP26, in October 2021, Barclays participated in the UK Government’s Global Investment Summit. From a customer and client point of view, the Board reiterated its support for helping customers and clients execute their sustainability strategies, including de-carbonising their business models. For Barclays, support for customers and clients will include: * advising clients as they adapt their business models to make them more sustainable * using our investment banking and capital markets expertise to help build low-carbon energy capacity, through facilitating green finance against our target of £100bn by 2030 * continuing to develop innovative green and sustainable banking products * our Sustainable Impact Capital Initiative: investing up to £175m of our own capital in innovative companies. Over the course of 2021 through our Board, senior management and Investor Relations team we met over 70% of our institutional shareholders by share ownership to discuss Barclays’ climate strategy and understand their views. --- # Key performance indicators We analyse a broad range of financial and non-financial measures to support the execution of our strategy. ## Growing together as the measure of success We use a number of sources to assess the success of our strategy and provide a balanced review of our performance during the year, taking into consideration financial and non-financial metrics across all stakeholder groups. ### Customers and clients We aim to build trust by offering innovative products and services, with an excellent customer and client experience, such that customers and clients are happy to recommend us to others. * **Barclays UK Net Promoter Score (NPS®)**: 2021: +11 | 2020: +15 | 2019: +18 ### Colleagues We promote and maintain a diverse and inclusive workforce in which colleagues of all backgrounds are treated equally and supported to achieve their potential within a positive, values-based culture. * **Colleague engagement**: 2021: 82% | 2020: 83% | 2019: 77% ### Society We strive to manage the environmental and societal impact of our business, making decisions that provide all our stakeholders with access to a prosperous and sustainable future. * **Social, environmental and sustainability-linked financing facilitated**: 2021: 69.2∆ | 2020: 60.9 | 2019: 34.8 ### Investors Our ambition is to generate attractive and sustainable returns through the economic cycle. We measure our progress through our Group financial targets. * **Common Equity Tier 1 (CET1) ratio**: 2021: 15.1% | 2020: 15.1% | 2019: 13.8% --- # Key performance indicators continued ### Consumer, Cards and Payments US customer digital engagement (%) * 2021: 71.8 * 2020: 71.4 * 2019: 71.0 ### Barclays UK complaints excluding PPI (% movement year on year) * 2021: -17 * 2020: -32 * 2019: -6 ### Corporate and Investment Bank revenue ranks and market shares (#, %) | | Global Markets (#) | Investment Banking (#) | | :--- | :--- | :--- | | **2021** | 4.6 (#6) | 3.7 (#6) | | **2020** | 4.8 (#6) | 3.6 (#7) | | **2019** | 4.3 (#6) | 4.1 (#6) | ### Females at Managing Director and Director level (%) * 2021: 28 * 2020: 26 * 2019: 25 ### “I would recommend Barclays as a good place to work” (%) * 2021: 83 * 2020: 87 * 2019: 80 ### “I believe that my team and I do a good job of role modelling the Values every day” (%) * 2021: 92 * 2020: 94 * 2019: 92 ### Operational GHG emissions (Metric tons CO2e) * 2021: 35,386 * 2020: 69,704 * 2019: 106,781 ### LifeSkills – Number of people upskilled (million) * 2021: 2.89∆ * 2020: 2.33 * 2019: 2.31 ### LifeSkills – Number of people placed into work * 2021: 77,100∆ * 2020: 49,700 * 2019: 66,600 ### Group return on tangible equity (RoTE) (%) * 2021: 13.4 * 2020: 3.2 * 2019: 5.3 ### Total operating expenses (£bn) * 2021: 14.4 * 2020: 13.9 * 2019: 15.4 ### Cost: income ratio (%) * 2021: 66 * 2020: 64 * 2019: 71 --- # Growing with customers and clients We are diversified by business, geography and income type. Our operations include consumer banking and payments services in the UK, US and Europe, as well as a global corporate and investment bank. ## Resilience, consistency and growth ### Our structure Barclays operates as two divisions, Barclays UK and Barclays International, supported by our service company, Barclays Execution Services. * **Barclays UK**: UK retail and business banking. * **Barclays International**: Consumer, Cards and Payments; Corporate and Investment Bank. * **Barclays Execution Services**: Group-wide service company. ### Profit before tax (PBT) by business (£bn) * **Barclays UK**: 2.5 * **Barclays International**: 6.7 ### Risk weighted assets (RWAs) by business (£bn) * **Barclays UK**: 72.3 * **Barclays International**: 230.9 ### Return on tangible equity (RoTE) by business (%) * **BUK**: 17.6 * **BI**: 14.9 --- # Growing with customers and clients continued ## Barclays UK Barclays UK consists of our UK Personal Banking, UK Business Banking and Barclaycard Consumer UK businesses. These businesses exist within our UK ring-fenced bank, Barclays Bank UK PLC, as well as certain other entities within the Group. ### Measuring where we are * **Income**: £6.5bn (2020: £6.3bn) * **Operating expenses**: £4.4bn (2020: £4.4bn) * **Profit before tax**: £2.5bn (2020: £0.5bn) * **Return on tangible equity**: 17.6% (2020: 3.2%) * **Barclays UK NPS**: +11 (2020: +15) * **Barclaycard NPS**: +4 (2020: +8) ### Market and operating environment The COVID-19 pandemic and low interest rate environment continued to have a significant impact on Barclays UK. It accelerated a number of existing trends in customer behaviour, including a declining use of cash for transactions, lower footfall across our branch network and consumers saving more and paying down existing debt. ### Strategic priorities We aim to provide customers with banking services in new and innovative ways, embracing technology as a means of making things simpler, more transparent and more secure. --- # Growing with customers and clients continued ### Year in review * We helped 48,000 first time buyers onto the property ladder, up 92% on 2020. * We remain focused on bringing customer complaints down, recognising we still have a long way to go. * We continued to build strategic partnerships. * We launched a new payment option, known as Instalments for Amazon. * We continued to make strides to enhance the Barclays app. ### Barclays Eagle Labs Barclays Eagle Labs is now a network covering 28 ecosystems across the UK. New partnerships have been developed in Manchester, Whitehaven and Kilmarnock, with a new site planned at our Glasgow campus. ### Looking ahead Our aim remains putting customers and clients at the heart of the decisions we make, helping to ensure good customer outcomes for every customer and client. We are endeavouring to reinvent our service model for customers, creating a more efficient, more resilient and seamless service at a pace that suits our customers' expectations. --- # Growing with customers and clients continued ## Barclays International: Corporate and Investment Bank Within Barclays International, the Corporate and Investment Bank is comprised of the Investment Banking, Corporate Banking and Global Markets businesses, aiding money managers, financial institutions, governments, supranational organisations and corporate clients to manage their funding, financing, strategic and risk management needs. ### Measuring where we are * **Income**: £12.3bn (2020: £12.5bn) * **Operating expenses**: £7.0bn (2020: £6.9bn) * **Profit before tax**: £5.8bn (2020: £4.0bn) * **Return on tangible equity**: 14.9% (2020: 9.5%) * **Investment Banking global fee ranking**: 6th (2020: 7th) * **Global markets revenue rank**: 6th (Largest non-US bank) ### Market and operating environment The year in the global financial markets was characterised by heightened volatility early on due to COVID-19, with activity decreasing as volatility stabilised. ### Strategic priorities Our aim is to provide comprehensive and integrated services to clients, delivering solutions across Investment Banking, Corporate Banking and Global Markets. --- # Growing with customers and clients continued ### Year in review * Our Global Markets business acted as a market-maker and liquidity provider to clients across the globe. * 2021 was a record year for our Investment Banking business on a revenue basis, with significant revenue improvement in target growth areas. * We continued to invest in our Investment Banking coverage of high growth sectors, including expanding our Sustainable Impact Banking (SIB) Group. * Our Corporate Banking business acted as a major provider of green and sustainable lending. * We continued monetising our investments in our international footprint of our Corporate Banking business. ### Integrated products and services increasing efficiency for Checkout.com Checkout.com is a rapidly growing cloud-based global payments provider valued at $40bn following its fundraising round in January 2022. --- # Growing with customers and clients continued ## Barclays International: Consumer, Cards and Payments The Consumer, Cards and Payments division of Barclays International is comprised of our International Cards and Consumer Bank, Private Bank and Unified Payments businesses. ### Measuring where we are * **Income**: £3.3bn (2020: £3.4bn) * **Operating expenses**: £2.4bn (2020: £2.1bn) * **(Loss)/profit before tax**: £0.8bn (2020: £(0.4)bn) * **Return on tangible equity**: 15.0% (2020: (7.5)%) * **US Consumer Bank NPS**: +37 (2020: +35) * **CC&P US customer digital engagement**: 71.8% (2020: 71.4%) ### Market and operating environment The COVID-19 pandemic and low interest rate environment continued to have a significant impact on Consumer, Cards and Payments. It accelerated a number of existing trends in customer behaviour, including consumers saving more and paying down existing debt. ### Strategic priorities We strive to deliver next-generation consumer financial services, offering best-in-class finance, private banking and payment solutions. --- # Growing with customers and clients continued ### Year in review * We established new partnerships across our businesses, notably in the US, where we signed a long-term agreement with Gap Inc. * We continued to invest in our digital servicing model, reaching a digital active user rate of 71.8%. * Our Payments business maintained its position as one of the largest payment processors in Europe. * In Germany, we continued to be a leading provider of consumer finance through our credit cards and personal loans business. ### Looking ahead Within Consumer, Cards and Payments, we will continue to invest in building our technology and digital capabilities, meeting consumer demand and responding to changing behaviour. ### Supporting a mainstream news media client during the Afghanistan crisis Barclays Payments’ colleagues provided expert help and support to a mainstream media client’s employees during the crisis in Afghanistan in 2021. --- # Our people and culture We want to recruit, retain and engage the talented people that Barclays needs to succeed, providing an environment that enables them to build their careers and achievements. ## A culture of togetherness Our colleagues are critical to our success. We know that the past two years have been challenging for a lot of our people. ### Measuring where we are * **Colleague engagement**: 82% (2020: 83%) * **Females at Managing Director and Director level**: 28% (2020: 26%) * **“I would recommend Barclays as a good place to work”**: 83% (2020: 87%) * **“I believe that my team and I do a good job of role modelling Values every day”**: 92% (2020: 94%) * **“I believe my team and I do a good job of role modelling our Mindset every day”**: September 2021: 89% | April 2021: 88% ### The Barclays Mindset At the beginning of the COVID-19 pandemic, we observed a number of improvements in the way people were working at Barclays. We reflected on how we could capture these positive developments for the long term and responded this year by launching the Barclays Mindset. ### Hiring great people We are focused on hiring people with the skills and capabilities to support our strategy. --- # Our people and culture continued ### Our Glasgow campus Our Glasgow campus is a 500,000 square foot site on the banks of the river Clyde. ### Developing people for the future At Barclays, we believe that everyone has the potential to continuously grow. ### Female colleagues * **Females at Managing Director and Director level**: 2021: 28% | 2020: 26% * **Females on Board of Directors**: 2021: 33% | 2020: 25% * **Females on Group ExCo and ExCo direct reports**: 2021: 25% | 2020: 29% * **Females in Barclays (2021)**: Female 45%, Male 55% --- # Our people and culture continued ### Highlights * **Graduate hires**: 851 (2020: 961) * **Average training days per annum per employee (payroll)**: 2 (2020: 1.7) * **Average training hours per annum per employee (payroll)**: 15 (2020: 13) * **Voluntary employee turnover**: 11% (2020: 6%) * **Employee turnover**: 14% (2020: 9%) ### Building a supportive and inclusive culture Building a supportive and inclusive culture is not only the right thing to do, but also what is best for our business. ### Employee statistics * **Number of employees split by region (000s)**: * 2021: UK 44.1, Europe 10.1, Americas 3.6, Asia Pacific 23.8 (Total 81.6) * 2020: UK 47.7, Europe 10.2, Americas 3.3, Asia Pacific 21.8 (Total 83.0) * **Number of employees split by grade (%)**: * 2021: Senior 8, Middle 41, Junior 51 * 2020: Senior 8, Middle 39, Junior 53 * **Split by full time/part time (%) (2021)**: Full time 91, Part time 9 --- # Our people and culture continued ### Digital Unleashed Digital Unleashed is Barclays flagship digital and technology speaker series, open to every colleague in the bank. ### Mental health and wellbeing Mental health and wellbeing continues to be a major focus, with 88% of colleagues telling us their manager supports their efforts to maintain wellbeing. --- # Growing with society Our success is judged not only by commercial performance, but also by our contribution to society and how we act responsibly for the common good and the long term. ## Together, sustainably We believe that we can, and should, make a positive difference for society, globally and locally. ### Measuring where we are * **Social, environmental and sustainability-linked financing facilitated**: £69.2bn∆ (2020: £60.9bn) * **Green financing facilitated**: £29.8bn∆ (2020: £17.6bn) * **Scope 1 and 2 emissions reductions (against a 2018 baseline)**: -86%∆ (2020: -73%) * **Progress against Barclays’ commitment to RE100**: 94%∆ (2020: 79%) ### Addressing climate change Addressing climate change is an urgent and complex challenge. It requires a fundamental transformation of the global economy. --- # Growing with society continued ### ESG disclosures Our approach to environmental and social issues is becoming increasingly integrated in the work we do across our business and is subject to the governance and oversight of our management and Board structures. ### Achieving net zero operations As part of our ambition to be a net zero bank by 2050, Barclays is working to achieve net zero operations and supply chain emissions. ### Reducing our financed emissions Most of our emissions result from the activities of the clients that we finance and those generated in their respective value chains. ### Say on Climate In line with our commitment to offer shareholders a ‘Say on Climate’, we will be publishing an update on our climate strategy, targets and methodology in advance of the 2022 Annual General Meeting. --- # Growing with society continued ### Financing the transition The transition to a low-carbon economy is today’s defining opportunity for innovation and growth. ### Managing climate-related risks We broadly categorise climate risks into three types: transition risk, physical risk and connected risk. ### Sustainable finance – performance against targets #### £150bn social, environmental and sustainability-linked financing facilitated (2018-2025) (£bn) * 2018-2020 progress: 124.1 * 2021 progress: 69.2∆ * Achieved to date: 193.3∆ * Target by 2025: 150 #### £100bn green financing facilitated (2018-2030) (£bn) * 2018-2020 progress: 32.4 * 2021 progress: 29.8∆ * Achieved to date: 62.2∆ * Target by 2030: 100 --- # Growing with society continued ### Supporting our communities ### Enhancing accessibility and safety for our customers We want as many people as possible to benefit from access to financial services. ### Supporting our suppliers Our engagement with suppliers is important and we engage with them regularly to ensure adherence to the Barclays’ Third-Party Code of Conduct and Supply Control obligations. ### Programmes that make a difference Barclays’ £100m COVID-19 Community Aid Package has been delivering vital relief to vulnerable communities throughout the COVID-19 pandemic. ### Supporting our communities (data) * **LifeSkills – Overall participation since launch in 2013**: 15.3m∆ (2020: 12.4m) * **LifeSkills – No. of people upskilled**: 2.89m∆ (2020: 2.33m) * **LifeSkills – No. of people placed into work**: 77,100∆ (2020: 49,700) * **Businesses engaged to help provide job placements for the people placed into work**: 9,681 (2020: 1,193) * **Unreasonable Impact – ventures supported since 2016**: 216 (2020: 163) --- # Growing with society continued ### Charitable giving and investment in our communities Alongside these high-impact programmes, we also help our employees to make a difference to the causes that matter most to them personally through our matching programmes. ### Age UK This year, as the impact of the pandemic continued to be felt in our communities, Barclays delivered support to charities through its £100m COVID-19 Community Aid Package. --- # Summary financial review We continue to develop a strong, diversified business that delivers attractive and sustainable returns. ## Built to deliver double-digit returns Barclays demonstrated a clear and sustainable path to growth over the course of 2021, delivering double-digit RoTE across our operating businesses. ### Measuring where we are * **Income**: £21.9bn (2020: £21.8bn) * **Cost: income ratio**: 66% (2020: 64%) * **Profit before tax**: £8.4bn (2020: £3.1bn) * **Return on Tangible Equity**: 13.4% (2020: 3.2%) ### Financial performance in 2021 Barclays’ diversified business model delivered a record profit before tax of £8.4bn (2020: £3.1bn). --- # Summary financial review continued ### Financial metrics #### CET1 ratio The CET1 ratio is a measure of the capital strength and resilience of Barclays. #### Group RoTE RoTE measures our ability to generate acceptable returns for shareholders. #### Total operating expenses Barclays views total operating expenses as a key strategic area for banks; those which actively manage costs and control them effectively will gain a strong competitive advantage. #### Cost: income ratio The cost: income ratio measures total operating expenses as a percentage of total income. --- # Summary financial review continued ### Consolidated summary income statement | | 2021 (£m) | 2020 (£m) | | :--- | :--- | :--- | | **Net interest income** | 8,073 | 8,122 | | **Net fee, commission and other income** | 13,867 | 13,644 | | **Total income** | **21,940** | **21,766** | | **Credit impairment releases/(charges)** | 653 | (4,838) | | **Net operating income** | **22,593** | **16,928** | | **Operating costs** | (14,092) | (13,434) | | **UK bank levy** | (170) | (299) | | **Litigation and conduct** | (177) | (153) | | **Total operating expenses** | **(14,439)** | **(13,886)** | | **Other net income** | 260 | 23 | | **Profit before tax** | **8,414** | **3,065** | | **Tax charge** | (1,188) | (604) | | **Profit after tax** | **7,226** | **2,461** | | **Non-controlling interests** | (47) | (78) | | **Other equity instrument holders** | (804) | (857) | | **Attributable profit** | **6,375** | **1,526** | ### Selected financial statistics | | 2021 | 2020 | | :--- | :--- | :--- | | **Basic earnings per share** | 37.5p | 8.8p | | **Diluted earnings per share** | 36.6p | 8.6p | | **Return on average tangible shareholders’ equity** | 13.4% | 3.2% | | **Cost: income ratio** | 66% | 64% | ### Consolidated summary balance sheet | | 2021 (£m) | 2020 (£m) | | :--- | :--- | :--- | | **Total assets** | **1,384,285** | **1,349,514** | | **Total liabilities** | **1,314,074** | **1,282,632** | | **Total equity** | **70,211** | **66,882** | | **Total liabilities and equity** | **1,384,285** | **1,349,514** | --- # Managing risk Barclays is exposed to internal and external risks as part of its ongoing activities. These risks are managed as part of our business model. ### Enterprise Risk Management Framework At Barclays, risks are identified and overseen through the ERMF, which supports the business in its aim to embed effective risk management and a strong risk management culture. ### Risk appetite Risk appetite defines the level of risk we are prepared to accept across the different risk types. > "To support the Group’s ambition to be a net zero bank by 2050, it was agreed that climate risk would become a Principal Risk from 2022." ### Three lines of defence 1. **First line**: Revenue-generating and client-facing areas. 2. **Second line**: Risk and Compliance. 3. **Third line**: Internal Audit. ### Monitoring the risk profile Together with a strong governance process, the Board receives regular information in respect of the risk profile of the Group. --- # Managing risk continued ### The Enterprise Risk Management Framework defines nine Principal Risks | Principal Risks | Risks are classified into Principal Risks, as below | How risks are managed | | :--- | :--- | :--- | | **Credit risk** | The risk of loss to the Group from the failure of clients, customers or counterparties | Credit risk teams identify, evaluate, sanction, limit and monitor. | | **Market risk** | The risk of loss arising from potential adverse changes in the value of the Group’s assets and liabilities | A range of complementary approaches are used to capture market risk. | | **Treasury and Capital risk** | Liquidity risk, Capital risk, Interest rate risk in the banking book | Managed by specialists in Capital Planning, Liquidity, Asset and Liability Management and Market Risk. | | **Climate Risk** | The impact on Financial and Operational Risks arising from climate change | Assesses and manages climate risk in line with net zero ambition by monitoring exposure to elevated risk sectors. | --- # Managing risk continued | Principal Risks | Risks are classified into Principal Risks, as below | How risks are managed | | :--- | :--- | :--- | | **Operational Risk** | The risk of loss from inadequate or failed processes or systems | Group assesses and manages operational risk and control environment. | | **Model Risk** | The potential for adverse consequences from decisions based on incorrect or misused model outputs | Models are evaluated for approval prior to implementation, and on an ongoing basis. | | **Conduct Risk** | The risk of poor outcomes for, or harm to customers, clients and markets | The Compliance function sets minimum standards and provides oversight. | | **Reputation Risk** | The risk that an action, transaction, investment, event, decision, or business relationship will reduce trust | Reputation risk is managed by embedding purpose and values. | | **Legal Risk** | The risk of loss or imposition of penalties, damages or fines from the failure to meet legal obligations | The Legal function supports colleagues in identifying and limiting legal risks. | --- # Viability statement The financial statements and accounts have been prepared on a going concern basis. Provision 31 of the 2018 UK Corporate Governance Code requires the Directors to make a statement in the Annual Report regarding the viability of the Group. ### Time horizon In light of the analysis, the Board has assessed the Group’s current viability, and confirms that the Directors have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the next three years. ### Considerations In making its assessment the Board has: * carried out a robust and detailed assessment of the Group’s risk profile * reviewed how those risks are identified, managed and controlled * considered the Working Capital and Viability Report (WCR) * considered the Group’s Medium Term Plan * reviewed the Group’s liquidity and funding profile * considered the Group’s viability under specific internal stress scenarios * considered the stability of the major markets in which it operates * considered the sustainability of any future capital distributions * considered scenarios which might affect the operational resilience of the Group ### Assessment Risks faced by the Group’s business are controlled and managed within the Group in line with the ERMF. --- # Viability statement continued ### Stress tests The Board has also considered the Group’s viability under specific internal stress scenarios. The Group-wide stress testing framework also includes internal reverse stress testing assessments. The results of the internal stress test were approved by the Board Risk Committee and allowed the Board to approve the Medium Term Plan as being able to sustain a severe but plausible scenario and remain within Risk Appetite. Based on current forecasts, the current liquidity and capital position of the Group continues to support the Board’s assessment of the Group’s viability. --- # Non-financial information statement We use a variety of tools to track and measure our strategic delivery, and collect both quantitative and qualitative information to get the full picture of our performance. | Non-financial information | Section | Pages | | :--- | :--- | :--- | | Business model | Business model | 12-13 | | Policies | Non-financial information statement | 49-50 | | Principal Risks | Risk review | 44-46 | | | Principal risk management | 218-223* | | | Risk performance | 224-288* | | Key performance indicators | Key performance indicators | 20-21 | *\*in Part 2 of the Report* ### Environmental matters | Policy statement | Description | | :--- | :--- | | **Climate Change statement** | Outlines our approach to energy sectors with higher carbon-related exposures. | | **World Heritage Site and Ramsar Wetlands statement** | Outlines our client due diligence approach to preserving and safeguarding these sites. | | **Climate Change Financial and Operational Risk Policy** | Introduced climate change as an overarching risk impacting certain Principal Risks. | | **Forestry and Agricultural Commodities statement** | Outlines our due diligence approach for clients involved in these industries. | ### Colleagues | Policy statement | Description | | :--- | :--- | | **Board Diversity Policy** | Confirms that the Board Nominations Committee will consider candidates on merit. | | **Code of Conduct** | Outlines the Values and Behaviours which govern our way of working. | --- # Non-financial information statement continued ### Social matters | Policy statement | Description | | :--- | :--- | | **Donations** | Barclays works in partnership with non-profit organisations. | | **Tax** | Our Tax Principles are central to our approach to tax planning. | | **Sanctions** | The Barclays Group Sanctions Policy is designed to ensure compliance. | | **The defence industry** | Outlines our appetite for defence-related transactions and relationships. | ### Human rights | Policy statement | Description | | :--- | :--- | | **Human rights** | Operates in accordance with the International Bill of Human Rights. | | **Modern slavery** | Outlines actions taken to identify and address the risks of modern slavery. | | **Supply chain** | Outlines our expectation that suppliers meet Barclays’ requirements. | | **Data protection** | Privacy and security of personal information is respected and protected. | ### Anti-bribery and anti-corruption | Policy statement | Description | | :--- | :--- | | **Bribery and corruption** | Reflects the statutory requirements applicable in the UK. | | **Anti-money laundering and counter-terrorist financing** | Designed to ensure we comply with requirements and obligations. | --- # Environment Social Governance report 2021 Our approach to environmental and social issues is subject to governance and oversight of our management and Board structures. * **Introduction**: 52 * **Environment**: * Our operational footprint: 54 * Reducing our financed emissions: 57 * Our approach to nature and biodiversity: 59 * **Social**: * Accessible retail products and services: 62 * Our supply chain: 65 * **Social and environmental financing**: * Sustainable financing: 69 * Developing and deploying finance solutions: 73 * Managing impacts in lending and financing: 76 * **Governance**: * The Barclays Way: 80 * Conduct: 81 * Responsible and inclusive banking: 88 * Financial crime: 91 * Whistleblowing: 93 * Managing data privacy, security and resilience: 94 * Contributions, associations and memberships: 96 * Tax: 97 * **Additional disclosures**: * Climate-related financial disclosures summary: 100 * External ESG ratings and benchmarks: 102 * ESG Resource Directory: 103 --- # Environmental Social Governance Disclosures 2021 continued ## Our approach to ESG disclosures ### Introduction Our approach to environmental and social issues is becoming increasingly integrated in the work we do across our business and is subject to the governance and oversight of our management and Board structures. ### ESG Resource Hub The Resource Hub provides detailed technical information, disclosures and our position statements on environmental, social and governance matters. ### ESG Data Hub This year, we have launched a new online ESG Data Hub located within the ESG Resource Hub, providing access to key ESG related metrics in a single place. ### ESG Additional Reporting Disclosures We have published detailed climate disclosures, consistent with the guidance given by the Task-Force on Climate-related Financial Disclosures, in a separate TCFD Report. ### KPMG LLP Limited Assurance Barclays appointed KPMG LLP to perform limited independent assurance over selected ESG content, which have been marked with the symbol ∆. --- # Environment This section provides further detail on elements of our climate strategy, as set out earlier in this document. It includes information on our approach to achieve net zero operations and reduce our financed emissions as well as information on our emerging approach to nature and biodiversity. Information on our support to finance the transition is available in the 'Social and environmental financing' section further below. Information on our climate-related financial disclosures is available in the 'Additional disclosures' section on pages 100 to 101 and in our separate TCFD Report. --- # ESG: Environment continued ## Our operational footprint ### Net zero operations As part of our ambition to be a net zero bank by 2050, Barclays is working to achieve net zero operations and supply chain emissions. We are defining net zero operations as the state in which we will achieve a GHG reduction of our Scope 1 and 2 emissions by at least 90% against a 2018 baseline and use carbon removals to eliminate any residual operational emissions that we cannot yet abate. ### Decarbonising our operations In 2019, we joined the global corporate renewable energy initiative, RE100 with a commitment to source 100% renewable electricity for our global property portfolio by 2030, with an interim goal of 90% by 2021. In 2021, we met our target with 94%∆ of the electricity used across our global property portfolio coming from renewable sources. --- # ESG: Environment continued ### Improving the energy efficiency of our operations In 2021, we launched an Energy Optimisation Programme to help improve the energy efficiency of our global property portfolio. ### Making our operations more environmentally sustainable We continue to work to ensure our facilities consume fewer resources, maximise the re-use of our materials and improve indoor environmental quality. ### Minimising our travel emissions Even though employee travel is a relatively small source of our carbon emissions, we intend to minimise travel emissions where we can. ### Engaging our colleagues We want to engage our colleagues and help them upskill as we all transition to a low-carbon economy. ### Carbon offsetting We purchase carbon offsets, under the VCS to compensate for any remaining emissions in our operations and business travel. --- # ESG: Environment continued ## Operational footprint dashboard ### Total GHG emissions by scope (market based) ('000 tonnes CO2e) * 2021: Total 88.8∆ (Scope 1: 22.0∆, Scope 2: 13.4∆, Scope 3: 53.4) * 2020: Total 174.9 (Scope 1: 21.5, Scope 2: 48.2, Scope 3: 105.2) ### Campus sustainability measures * **On-site renewable electricity generation**: 2021 Progress: 0.1% (Target by 2035: 10%) * **Energy intensity reduction (against a 2019 baseline)**: 2021 Progress: 21% (Target by 2035: 70%) * **Waste diverted**: 2021 Progress: 46% (Target by 2035: 90%) * **Improve water efficiency**: 89% recycled water used at our Pune campus --- # ESG: Environment continued ## Reducing our financed emissions In 2020, we set an ambition to be a net zero bank by 2050 and committed to align all of our financing to the goals and timelines of the Paris Agreement. We have used BlueTrack™ to assess the financed emissions of our client portfolios in the Energy and Power sectors, prioritising these two sectors because they are responsible for up to three-quarters of all Greenhouse Gas (GHG) emissions globally. ### Energy and Power In November 2020, we set a target for a 30% reduction in the CO2 intensity of our Power portfolio by 2025, as well as a target for a 15% reduction in absolute CO2 emissions of our Energy portfolio by 2025. In 2021, we reduced our absolute financed emissions in Energy by 22%, exceeding our 2025 Energy target. --- # ESG: Environment continued ## Just Transition Barclays recognises the need to sustain and support livelihoods and communities in the UK and around the world as we support our clients to transition to a low-carbon economy. ### Our current estimate of our clients’ activity based on our disclosed methodology ```mermaid graph TD subgraph "BlueTrack™ financed emissions – Energy (Absolute emissions MtCO2)" A[2020: 75.0 MtCO2] --> B[December 2021: 58.6 MtCO2] end ``` ```mermaid graph TD subgraph "BlueTrack™ financed emissions – Power (Emissions intensity KgCO2/MWh)" A[December 2020: 320.0 KgCO2/MWh] --> B[December 2021: 295.0 KgCO2/MWh] end ``` --- # ESG: Environment continued ## Our approach to nature and biodiversity Nature and biodiversity are intrinsically connected to efforts to mitigate and adapt to the effects of climate change and are vital to ensuring a sustainable economy and healthy society. ### Nature-related risk in financing We intend to do more to assess and minimise negative impacts of our financing activities on nature. ### Get Nature Positive In 2021, Barclays joined Get Nature Positive, an initiative led by the UK Government’s Department for Environment, Food and Rural Affairs and the Council for Sustainable Business. --- # ESG: Environment continued ### Nature-related financing Biodiversity and nature-related financing present significant opportunities for the financial sector given the large requirement for capital to protect and restore biodiversity and natural ecosystems. ### Blue Marine Foundation Barclays completed the first year of our three-year partnership with the Blue Marine Foundation (BLUE) to support them in delivering their goal of ensuring that at least 30% of the global ocean is effectively protected and the other 70% sustainably managed by 2030. --- # Social This section describes our approach to social matters within our business. ### Supporting our colleagues Our colleagues are our most valuable assets. They make a critical difference to our success, and investment in them protects and strengthens our culture. --- # ESG: Social continued ## Accessible retail products and services ### Access to banking The banking services we provide and the manner in which they are delivered continue to evolve, driven by the changing needs of our customers. ### Basic current account Since 2015, we have been offering our basic current account, which meets HM Treasury’s Memorandum of Understanding on basic bank accounts. ### Number of basic current accounts * 2021: 642,468 * 2020: 614,000 * 2019: 577,365 --- # ESG: Social continued ## Barclays mortgages and first-time buyers In 2021, we helped over 150,000 customers take out a mortgage or further borrowing on their property. ### Financial inclusion in our US consumer business The Community Reinvestment Act (CRA) is a US federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities. ### Economic crime and scams In what has been a particularly tough year for economic crime and scams across the industry, as scammers have exploited the COVID-19 pandemic; we have increased our efforts to tackle economic crime at all levels. ### 2021 Highlights * **UK Mortgages issued or further borrowing on their property**: £33.9bn * **Number of First Time Buyers**: 48,000 (2020: 25,000) --- # ESG: Social continued ### Social Innovation Facility The Barclays Social Innovation Facility (SIF) is an internal initiative that incubates ideas for financial products and services which seek to address specific environmental or social challenges in a commercial way. ### SIF Highlights * **Ventures supported since 2015**: 32 * **Products launched since 2015**: 10 --- # ESG: Social continued ## Our supply chain ### 2021 Highlights * **Global spend with diverse suppliers**: 8% (2020: 8%) * **Prompt payment rate**: 90% (2020: 88%) ### ESG in the supply chain As part of the Group's ESG strategy, we are focused on environmental and social responsibility in our supply chain, initially across three pillars of diversity and inclusion, the environment and modern slavery. ### Third-party operational and reputational risk management Barclays expects our suppliers to comply with all applicable laws, regulations and standards within the geographies in which they operate. --- # ESG: Social continued ### Prompt Payment Code UK Barclays is a signatory to the Prompt Payment Code in the UK. ### Climate change initiatives in our supply chain As part of our ambition to be a net zero bank by 2050, we are aiming to reduce emissions associated with the products and services we purchase. ### Diversity and inclusion in our supply chain Barclays believes that diversity and inclusion within the supplier portfolio expands our ability to attract and harness innovative, disruptive solutions in the market. --- # ESG: Social continued ### Modern slavery in our supply chain We believe we are at our most effective when we deploy finance to support people and businesses in a way that is responsible, transparent and makes a real and lasting difference. --- # Social and environmental financing As a diversified financial institution, a significant part of our impact, both positive and negative, is through the financing and lending services we provide to customers and clients. --- # ESG: Social and environmental financing continued ## Sustainable financing Barclays continued to make significant progress in 2021 against our target to facilitate £150bn of social, environmental and sustainability-linked financing from 2018 to 2025. ### Facilitate £150bn of social, environmental and sustainability-linked financing We facilitated £69.2bn∆ of social, environmental and sustainability-linked financing in 2021, up 14% from £60.9bn in 2020. ### Social financing Raising finance for supranational, national and regional development institutions continued to be a key driver of the £35.7bn∆ in social financing facilitated in 2021. ### Environmental financing Our environmental financing consists of labelled, 'use of proceeds' and business mix financing in environmental categories. ### Sustainability-linked financing Our sustainability-linked financing totaled £10.8bn∆ in 2021, up 118% from £5.0bn in 2020. ### Facilitate £100bn of green financing We facilitated £29.8bn∆ of green financing in 2021, up 70% from £17.6bn in 2020. --- # ESG: Social and environmental financing continued ## Sustainable financing dashboard ### £100bn green financing facilitated (2018-2030) * **By region (2021)**: Americas 12.7, UK/Europe 14.7, Asia and Rest of World 2.4 * **By product (2021)**: Debt 18.9, Equity 4.4, Loan 6.2 ### £150bn social, environmental and sustainability-linked financing facilitated (2018-2025) * **By region (2021)**: Americas 27.1, UK/Europe 36.0, Asia and Rest of World 6.1 * **By product (2021)**: Debt 50.9, Equity 4.8, Loan 13.1 --- # ESG: Social and environmental financing continued ### Sustainable financing methodology Our sustainable financing is tracked using the methodology set out in the Barclays Sustainable Finance Framework. ### Barclays green home mortgages Barclays was one of the first UK lenders to launch a green mortgage product in 2018, and to date we have completed over £1bn in green home mortgages. #### Green mortgage completions * **Since 2018**: 2,330 * **2021 progress**: 4,434 * **Since 2018 (£m)**: 520 * **2021 Progress (£m)**: 1,030 --- # ESG: Social and environmental financing continued ### Our UK mortgages by EPC rating Barclays UK regularly monitors the Energy Performance Certificate (EPC) rating of its mortgage portfolio. ### Sustainable Impact Capital Programme Our Sustainable Impact Capital Programme, led by the Barclays Principal Investments team in Treasury has a mandate to invest up to £175m of equity capital in sustainability-focused start-ups by 2025. ### Green Bond Investment Portfolio As an investor, we have continued to expand our ESG portfolio during 2021. --- # ESG: Social and environmental financing continued ## Developing and deploying finance solutions ### Corporate and Investment Bank We are blending the existing expertise and relationships in our coverage groups with new, specialised teams focused on sustainable finance growth areas. ### Supporting clients across the spectrum * **Consumer**: Green Home and Buy-to-Let Mortgages, Sustainable Investing Solutions. * **Growth stage companies**: Sustainable Impact Capital Programme, Unreasonable Impact. * **Mid-size corporates**: Sustainable Product Group, Sustainable Capital Markets. * **Large corporates and governments**: ESG Research, Sustainable and Impact Banking. * **Investors**: Treasury Green Activities. --- # ESG: Social and environmental financing continued ### Sustainable Capital Markets The Sustainable Capital Markets team is embedded into Barclays’ wider capital markets team within the Investment Bank. ### Sustainable and Impact Banking The Sustainable and Impact Banking team is a dedicated sector coverage team focused on advising and raising capital for emerging climate technology companies. ### Corporate Bank Sustainable Product Group The Sustainable Product Group focuses on increasing sustainability related dialogue with our Corporate Bank clients. ### ESG across our Research teams Barclays Research has made significant investments to grow its ESG research capabilities and thought leadership. ### Treasury green activities Barclays Treasury plays a key role in enabling Barclays to meet its climate goals by allocating, managing and governing its financial resources effectively. ### Green Structured Notes The GSN Programme was launched in 2021 as a partnership between Equities and Treasury. --- # ESG: Social and environmental financing continued ### StatECA Repack Platform The StatECA Repackaging Platform is a partnership between the Corporate Bank and Treasury which promotes sustainable lending in CIB. ### Private Bank Responsible Investing We view responsible investing as an important part of our investment strategy. ### Engagement and voting Through our partnership with EOS at Federated Hermes (EOS) since Q2 2021 in the UK, Barclays Private Bank has been embedding a comprehensive approach to stewardship. ### Wealth Management and Investments Wealth Management and Investments factors responsible investing into our discretionary portfolio and fund investment solutions. ### Retail banking Sustainability is a key focus area for Barclays UK. --- # ESG: Social and environmental financing continued ### Managing impacts in lending and financing ### Enhanced Due Diligence Our standards include an enhanced due diligence approach for certain clients, including clients operating in energy sub-sectors covered by our Climate Change Statement. ### Escalation and decision Where client relationships or transactions have a high or medium ESI risk rating following an enhanced due diligence review, they are then escalated to the appropriate business unit review committee. ### Monitoring As part of our management of environmental and social risks, we may require further client engagement calls in relation to the specific environmental and social risks. ### Environmental credit risks Environmental risk is regarded as a credit risk driver, and is considered within our in credit risk assessment process. --- # ESG: Social and environmental financing continued ### Transactions and client relationships subject to social and environmental risk review * 2021 Total 903: Agriculture 236, Business & Professional Services 70, Chemicals 24, Commodity Traders 30, Construction & Engineering 215, Defence, Aerospace & Security 36, Infrastructure & Transportation 14, Manufacturing 11, Metals & Mining 4, Oil & Gas 12 * 2020 Total 912: Agriculture 213, Business & Professional Services 68, Chemicals 23, Commodity Traders 29, Construction & Engineering 213, Defence, Aerospace & Security 59, Infrastructure & Transportation 46, Manufacturing 11, Metals & Mining 12, Oil & Gas 14 ### Environmental risk identification in Barclays UK Our property and land valuers can use our environmental screening product, Barclays SiteGuard. ### Training The Climate risk team provides training to banking and credit risk teams to raise awareness of the environmental credit risks in particular sectors. ### Equator Principles For project-related finance, we apply our Environmental risk standard, which implements the Equator Principles and relevant IFC Performance Standards. --- # ESG: Social and environmental financing continued ### Deforestation and agricultural commodities Barclays recognises that deforestation is a key driver of climate change and biodiversity loss and is frequently linked with significant adverse human rights impacts. ### Human rights Barclays operates in accordance with the International Bill of Human Rights and takes account of other internationally accepted human rights standards. ### Barclays’ statements and policy positions * Climate Change * Forestry and Agricultural Commodities * World Heritage Sites and Ramsar Wetlands * Environmental Risk in Lending * Soft Commodities * Defence Sector * Human Rights * Modern Slavery * Financial Crime * Data Protection * Donations * Resilience * Tax * Code of Conduct (The Barclays Way) * Third-Party Code of Conduct * Health, Safety and Welfare --- # Governance In accordance with how ESG ratings agencies and investors classify ‘governance matters’, this section provides an overview of how we do business and highlights our approach to a range of matters. --- # ESG: Governance ## The Barclays Way The Barclays Way is our Code of Conduct. Together with more formal policies and practices, this provides a clear path towards achieving a positive and dynamic culture within the Group. > "In challenging times such as these, it is more important than ever that we conduct ourselves in the right way. The Barclays Way sets out the standards of behaviour we should all aspire to in our professional lives. It is a guiding light for everyone in Barclays, helping us to make the right decisions every day." ### Our commitment to being a responsible business includes ensuring that: * we conduct ourselves in line with The Barclays Way, our Code of Conduct * that we treat our customers fairly and that the products and services we deliver are transparent and responsible * we operate in line with relevant laws and regulations including those applicable to financial crime * we safeguard the data that has been entrusted to us. --- # ESG: Governance continued ## Conduct By effectively managing Conduct risks, we can continue to strengthen the culture of Barclays. ### Culture and conduct We believe the stronger our culture, the better the choices our people will make; and the stronger our business will be for all our stakeholders. ### The Barclays Mindset Our Mindset acts as an operating manual for how to get things done at Barclays. It focuses on three key elements that are core to our success – Empower, Challenge and Drive. ### Organisation and structure The Conduct Risk Management Framework (CRMF) outlines how the Group manages and measures its Conduct risk profile. ### Product design and review risk It is important that the design of our products and services meets the needs of clients, customers, markets as well as being aligned with Barclays' policies. --- # ESG: Governance continued ### Customer communications It is important that our engagement with our customers is open and honest and that we treat them fairly to avoid foreseeable harm and to make sure they are not exploited or misled. ### Remediation and redress Barclays recognises that customer detriment may occur as a result of our error, actions or inactions, and that we must undertake appropriate activity designed to ensure our customers are put back in the position they would have been in had the issue not occurred. ### Barclays International Role modelling and driving a strong conduct culture is embedded throughout Barclays International (BI) from the senior leadership through to the businesses which comprise of Consumer, Cards and Payments and the Corporate and Investment Bank (CIB). --- # ESG: Governance continued ### Corporate and Investment Bank Examples of how both Markets and Banking manage product governance and suitability include the following: ### Global Markets Now in its sixth year of release, the Global Markets Code of Conduct (GMCC), an addition to our CRMF; is the annual re-statement of our continual commitment to promoting good conduct, strengthening our control environment and cultivating a strong ethical firm culture. ### Corporate Bank In 2021, the Corporate Bank continued to strengthen its overall Conduct risk governance. --- # ESG: Governance continued ### Private Bank Our Private Bank senior leaders spend significant time setting the framework designed to ensure our Purpose, Values and Mindset are now deeply embedded in our objectives and plans. ### Consumer, Cards and Payments In 2021, Barclays Payments has continued to focus on a customer-led approach, simplifying our product offerings, reducing paper consumption, supporting colleagues as we have continued to work from home and transition back into the office. --- # ESG: Governance continued ### Barclays UK We are a customer-led business which aims (among other things) to provide good outcomes for our customers, clients and other stakeholders, while protecting the integrity of the market and promoting effective competition. ### BUK conduct culture plan Through 2021, Barclays UK took a number of actions to further improve its culture. ### Responsible sales practices - reward and incentives Our Barclays UK reward scheme is designed to incentivise all BUK colleagues to collaborate across the business, to better serve our customers. ### Product design Barclays UK relies on two critical processes designed to ensure that our products and services meet the needs of our customers through their design. --- # ESG: Governance continued ### Transformation The Transformation team oversees Barclays UK’s multi-year Transformation Plan in line with the Group’s strategic ambitions. ### Customer We start from the principle that good design must be customer-led. ### Product Product designs and manages the products that Barclays UK personal customers use. ### Business Banking The challenges our clients face have been magnified in recent times and as we continue to support them through this post pandemic environment, our social purpose is to support their recovery. --- # ESG: Governance continued ### Wealth Management and Investments Throughout the uncertainty of the COVID-19 pandemic, we have also supported customers with increased remote engagements. ### COO and Functions The impact on the customer from our Operations and Technology strategy is at the forefront of our execution mindset. --- # ESG: Governance continued ## Responsible and inclusive banking We believe that transparency of information in our products and services is key to empowering consumers to make good financial decisions. --- # ESG: Governance continued ### Building financial wellbeing As part of our aim to deliver a world-class money management experience and help money work for our customers, we are delivering more tools and features to educate them on managing their money. ### Gambling Barclays understands that gambling and financial difficulty can often go hand in hand. ### Domestic abuse To support customers impacted by domestic abuse, we have worked closely with Refuge, a UK charity providing specialist support for women and children experiencing domestic abuse. ### Economic difficulties Many customers have been affected by the COVID-19 pandemic. ### Homelessness Barclays has continued to work with ProxyAddress, a social enterprise service which enables the use of an alias address. ### Cancer diagnosis We have worked with Macmillan, a UK-based cancer charity. --- # ESG: Governance continued ### Bereavement We continue to work on supporting customers impacted by bereavement. ### Delegated authority As a result of the COVID-19 pandemic, we have seen an increased need for those appointed to manage the finances of our customers to verify their identity with us digitally. ### Relationship support team A specialist support team has been created to provide support for front line colleagues when handling cases of complex or extreme vulnerability. ### Training for colleagues 38,527 Barclays UK colleagues completed the mandatory Customers in Vulnerable Circumstances annual e-learning modules. ### Banking Made Clearer brochure Barclays partnered with the British Institute of Learning Disabilities to refresh our Banking Made Clearer brochure. ### Complaints In Barclays UK, we continue to be focused on improving the overall customer experience by identifying and supporting the removal of the root causes of customer complaints. --- # ESG: Governance continued ## Financial crime Barclays recognises that economic crimes have an adverse effect on individuals and communities wherever they occur. --- # ESG: Governance continued ### Anti-Money Laundering (AML) Money laundering (including terrorist financing and the proliferation of nuclear, chemical or biological weapons) have been identified as major threats to the international financial services community. ### Anti-Tax Evasion Facilitation Barclays takes a zero-tolerance approach to deliberate facilitation of tax evasion in any country and has procedures in place to prevent it. ### Sanctions Sanctions are restrictions on activity with targeted countries, governments, entities, individuals and industries. --- # ESG: Governance continued ## Whistleblowing We want to foster a culture where our colleagues feel safe to speak up. ### Whistleblowing cases closed by region * **AMERICAS**: 24 (2020: 31) * **EMEA**: 146 (2020: 267) * **APAC**: 35 (2020: 83) ### Whistleblowing cases opened by category * **COVID-19**: 19 * **Retaliation**: 32 * **Breach of controls, process or other**: 26 * **Breach of policy**: 23 * **Other**: 34 --- # ESG: Governance continued ## Managing data privacy, security and resilience We have strict policies to protect privacy and keep data secure. ### Data privacy Privacy and data protection laws vary across the jurisdictions in which we operate. ### Data security In 2021, we continued to strengthen our data security policies and controls to protect the Group’s sensitive information. ### Chief Security Office The Chief Security Officer for the Group heads the Chief Security Office. ### Data resilience The Barclays Chief Security Office (CSO) has a set of preventative key controls that mitigate cyber-related risks. --- # ESG: Governance continued ### Operational resilience Operational Resilience is a key priority for the Barclays Board and is the responsibility of everyone in Barclays. ### Training Barclays has adopted a 65-day window for Mandatory Training completion to allow colleagues sufficient time to complete training. ### Reporting phishing The Chief Security Office performs a number of key activities related to identifying, investigating, responding to and containing phishing / malicious email incidents. ### Certifications Barclays holds three ISO27001 certifications. --- # ESG: Governance continued ## Contributions, associations and memberships Barclays has a responsibility to engage with governments and policymakers appropriately, always remaining politically neutral. ### Political contributions Barclays is politically neutral and does not engage in party political campaigning or make party political donations as a Group. ### Public policy engagement As a major economic contributor, we believe it is important to contribute towards relevant public policy debates. ### Memberships and signatories Barclays is a member of a number of associations. ### Sustainability memberships and initiatives * Banking Environment Initiative * Ceres * Equator Principles * Financial Services Taskforce (FSTF) * Net-Zero Banking Alliance (NZBA) * Partnership for Carbon Accounting Financials (PCAF) * Task Force on Climate-related Financial Disclosures (TCFD) * Thun Group * United Nations Environment Programme Finance Initiative (UNEP FI) * United Nations Principles of Responsible Banking (PRB) * UN Principles of Responsible Investment (UN PRI) --- # ESG: Governance continued ## Tax Barclays supports a fair and transparent tax system. ### Taxes paid globally * **Corporation tax and withholding taxes**: 1,335 * **Employer payroll taxes**: 607 * **Irrecoverable VAT**: 526 * **UK bank levy**: 241 * **Other taxes including business rates**: 72 --- # ESG: Governance continued ### Key highlights on our approach to tax include: * we follow clear Tax Principles that we have published. * as a result of this approach, transactions which artificially transfer profits into a low tax jurisdiction would not be consistent with our Tax Principles. * we seek to comply with the spirit as well as the letter of the law. * we aim to comply with all of our tax obligations in the territories in which we operate. ### Tax governance, control and risk management As a Globally Systemically Important Bank, our Group-wide risk and governance procedures are subject to continuous review and scrutiny. ### Stakeholder engagement and management of concerns related to tax: * we believe that it is important to be transparent in the disclosure of our tax affairs both to tax authorities and stakeholders more broadly. * our dealings with tax authorities are handled proactively, constructively and transparently, in real-time where possible. * we recognise that early resolution of our tax affairs is in everyone’s interest. * we engage with governments, tax authorities and NGOs through public consultations. * we cooperate with tax authorities globally to reduce the scope for individuals and companies to evade tax. --- # Additional disclosures Clear, credible and accessible ESG information is critically important to enable effective investment decision-making, support company and investor engagement and underpin the growing range of products based on ESG factors. --- # ESG: Additional disclosures continued ## Summary of climate-related financial disclosures A high-level summary of our climate-related disclosures. ### Climate strategy 1. **Achieving net zero operations**: Barclays is working to achieving net zero operations and supply chain emissions. 2. **Reducing our financed emissions**: Barclays is committed to aligning its financing with the goals and timelines of the Paris Agreement. 3. **Financing the transition**: Barclays is providing green and sustainable finance required to help transform the economies we serve. --- # ESG: Additional disclosures continued ### Governance The Barclays PLC Board sets the strategic direction and risk appetite of the Group. ### Risk Management In 2020, the Board Risk Committee made the decision that climate risk would become a Principal Risk within the ERMF from 2022. ### Scenario analysis Scenario analysis forms a key part of Barclays’ approach to assessing and quantifying the impact from climate change. ### Metrics and targets We have developed metrics and targets to track progress against our climate strategy. ### UK Listing Rules statement of compliance We are pleased to confirm that we have included in our TCFD Report climate-related financial disclosures consistent with the four recommendations and the eleven recommended disclosures set out in the June 2017 report. --- # ESG: Additional disclosures continued ### Select ESG ratings and benchmarks * **MSCI ESG Rating**: AA (2020: A, 2019: BBB) * **ISS QualityScore Environment**: 1 (2020: 1, 2019: 1) * **Sustainalytics ESG Risk Rating**: 25.1 (2020: 23.9, 2019: 31.7) * **ISS QualityScore Social**: 1 (2020: 1, 2019: 1) * **S&P Global CSA**: 78, 92nd percentile (2020: 77, 88th percentile, 2019: 70, 77th percentile) * **ISS ESG Corporate Rating**: C (2020: C, 2019: C) * **CDP Climate Change**: B (2020: B, 2019: A) * **Moody’s ESG Solutions**: 55 (2020: 49, 2019: 48) * **FTSE Russell ESG Rating**: 4.2, 92nd percentile (2020: 4.7, 94th percentile, 2019: 4.8, 97th percentile) * **Workforce Disclosure Initiative (WDI)**: 82% (2020: 77%, 2019: 32%) --- # ESG: Additional disclosures continued ## ESG Resource Directory Additional information on key Environmental, Social, and Governance related topics across Barclays. ### Barclays ESG Resource Hub * Annual Report Suite * Additional ESG Disclosures * KPMG LLP Limited Assurance Statement * Reporting and Measurement Methodology * Additional Resources * Partnerships ### Our approach to Sustainable Finance * Barclays Sustainable Impact Capital Initiative * Barclays Green Bonds * Corporate Investment Bank (CIB) – Solving Sustainable * Barclays Research Impact Series * Sustainable Green Solutions (Corporate Bank) * Private Bank – Impact Investing * Private Bank - Discretionary Portfolio Management * Private Bank - Investing for Global Impact Report * Sustainable, ESG and Impact investing (Wealth) * Barclays Green Loans (Barclays UK) * Barclays Green Home Mortgages (Barclays UK) * Barclays Green Buy-to-Let Mortgages (Barclays UK) --- # ESG: Additional disclosures continued ### Important information In preparing the ESG section within the Barclays PLC Annual Report, we have: * made a number of key judgements, estimations and assumptions. * used ESG and climate data, models and methodologies that we consider to be appropriate and suitable for these purposes. * appointed KPMG LLP to perform limited independent assurance over selected ESG (including climate-related disclosures) content marked with ∆. * the data, models and methodologies used and the judgements estimates or assumptions made are rapidly evolving and this may directly or indirectly affect the metrics, data points and targets contained in this section of the Annual Report. --- # Shareholder information ## Annual General Meeting (AGM) * **Location**: Manchester Central Convention Complex, Petersfield, Manchester M2 3GX. And virtually via electronic platform. * **Date**: Wednesday, 4 May 2022. * **Time**: 11.00am. ### Keep your personal details up to date Please remember to tell Equiniti if you move; or you need to update your bank or building society details. ### Dividends The Barclays PLC 2021 full year dividend for the year ended 31 December 2021 will be 4.0p per share, making the 2021 total dividend 6.0p per share. ### Dividend Re-investment Plan Barclays offers a share alternative in the form of a dividend reinvestment plan (DRIP). ### Dividend Payments Barclays has made the decision that from February 2023, dividends will no longer be paid by cheque. --- # Shareholder information continued ### Shareholder security Shareholders should be wary of any cold calls with an offer to buy or sell shares. ### Report a scam If you suspect that you have been approached by fraudsters please tell the FCA. ### Reducing our Environmental Impact In line with our targets to reduce our environmental footprint, as part of our Notice of AGM mailing we will be writing to those shareholders who currently receive a paper copy of our Annual Report. ### Managing your shares online Barclays shareholders can go online to manage their shareholding and find out about Barclays performance by joining Shareview. ### Returning funds to shareholders Over 60,000 shareholders did not cash their Shares Not Taken Up (SNTU) cheque following the Rights Issue in September 2013. ### Useful contact details * **Equiniti**: 0371 384 2055 (in the UK), +44 121 415 7004 (from overseas). * **American Depositary Receipts (ADRs)**: +1 800 990 1135 (toll free in the US and Canada), +1 651 453 2128 (outside the US and Canada). * **Shareholder Relations**: privateshareholderrelations@barclays.com. * **Share price**: Available at home.barclays/investorrelations. * **Alternative formats**: Shareholder documents can be provided in large print, audio CD or Braille. --- # Growing. Together. ## Supporting entrepreneurship When childhood friends Irina Albita and Maria Tanjala decided to pool their expertise in the film and financing sectors, they created a product that is revolutionising the way that creative industries receive payment for their work. Barclays UK has been a crucial partner to FilmChain for four years providing them with the benefits of a globally recognised bank. > "By automating processes and having the ability to open Barclays global client accounts with multi-currency access, FilmChain saves industry professionals millions of pounds in mismanaged funds, human errors and lack of data." Maria Tanjala Co-Founder, FilmChain ### Reporting Suite * **Barclays PLC Annual Report 2021**: A detailed review of Barclays’ 2021 performance. * **Barclays PLC Climate-related Financial Disclosures 2021**: A report aligning to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. * **Barclays PLC Pillar 3 Report 2021**: A summary of our risk profile. * **Barclays PLC Fair Pay Report 2021**: An overview of our approach to pay. * **Barclays PLC Diversity & Inclusion Report 2021**: An overview of the Group’s approach to building a more inclusive company. * **Barclays PLC Country Snapshot 2021**: An overview of our global tax contribution.