# Barclays PLC ESG Reporting Framework # Contents - [Approach](#approach) - [Global Reporting Initiative (GRI)](#global-reporting-initiative-gri) - [Sustainability Accounting Standards Board (SASB)](#sustainability-accounting-standards-board-sasb) - [UN Principles for Responsible Banking (PRB)](#un-principles-for-responsible-banking-prb) - [Assurance](#assurance) - [Select ESG metrics and definitions](#select-esg-metrics-and-definitions) - [Net Zero Ambition](#net-zero-ambition) - [Capital And Products](#capital-and-products) - [Skills and Employability](#skills-and-employability) - [Achieving Net Zero Operations](#achieving-net-zero-operations) - [Sustainable Innovation](#sustainable-innovation) - [HR](#hr) - [Disclaimer](#disclaimer) # Approach This document sets out Barclays’ Environmental, Social, Governance (ESG) Reporting Framework (Framework) including the definitions and measurement methodology for key performance metrics in the Barclays PLC Annual Report 2023. To ensure the integrity of our key performance data we continue to operate internal controls and maintain a clear audit trail supported by internal and independent external assurance processes. Reporting on non-financial metrics does not yet have the same rigour and standardised definitions that apply to financial reporting. We are keen to enhance our approach to measuring performance and adopt more innovative ways to measure the wider outcomes and impacts of our activity. However, we also need to strike a balance between innovative metrics and the ability to credibly gather and verify data. We publish this Framework, as it sets out definitions and assumptions for our key metrics, and outlines data collection and verification processes. We continue to review and develop our approach to data, models and methodologies in line with market principles and standards as this subject area matures. We are seeking to improve our reporting processes and will publish an updated version of this Framework on an annual basis. ## Global Reporting Initiative (GRI) Our 2023 ESG disclosures have been prepared with reference to the GRI Standards. This has been done based on the requirements laid out in GRI 1: Foundation 2021. ## Sustainability Accounting Standards Board (SASB) Our 2023 ESG disclosures have been prepared with reference to the SASB Financial Sector Standards. ## UN Principles for Responsible Banking (PRB) Our 2023 ESG disclosures set out our progress towards implementing the PRB, of which Barclays PLC was one of the 30 founding members. Further details on GRI, SASB, PRB can be found here: [home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/](https://home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/) The following sets out how Barclays approaches implementing UNEP FI’s three-step process of implementing the PRB – 1) Impact analysis, 2) Target setting, 3) Reporting. Barclays uses the term ‘significant impact’ when talking about the impact areas identified through the PRB impact analysis. We use the term ‘impact’ when talking about wider areas of potential impact outside of those identified through our PRB impact analysis. Refer to Barclays’ present and past limited independent assurance statements at: [home.barclays/sustainability/esg-resource-hub/](https://home.barclays/sustainability/esg-resource-hub/) | Process Step | Barclays’ Approach | | --- | --- | | **STEP 1 – IMPACT ANALYSIS** | We follow a defined process for conducting our impact analysis. In 2022 we conducted an impact analysis using UNEP-FI’s Portfolio Impact Analysis Tool for Banks (below). In 2023 we did not undertake a new analysis but reviewed the outputs from this tool against the output of our 2023 materiality assessment, disclosed in our GRI Index (here), to ensure this continues to be consistent with our understanding of what is significant to our business and our stakeholders. We also review the outputs against the business’s strategic priorities, as referenced in the Barclays PLC Annual Report 2023. This helps us identify our areas of most significant positive and negative impact. | | **STEP 2 – TARGET SETTING** | Barclays has previously identified ‘climate stability’ and ‘availability, accessibility, affordability, and quality of resources and services’ as our two significant impact areas. In 2023 we confirmed these two impact areas as the areas we will continue to focus on.

**Climate stability**
We are committed to aligning our financing with the goals and timelines of the Paris Agreement and we have set targets to reduce our financed emissions. Our approach to reducing our financed emissions is underpinned by our BlueTrack™ methodology.
As a founding member of the Net-Zero Banking Alliance (NZBA), we have committed to setting science-based targets for material high-emitting sectors in our portfolio by April 2024.

**Availability, accessibility, affordability, and quality of resources and services**
Our sustainable financing is tracked using the methodologies set out in the Barclays Sustainable Finance Framework and the Transition Finance Framework. The Sustainable Finance Framework defines the criteria we use for social financing, environmental financing, green financing and sustainability-linked financing, while the Transition Finance Framework defines the criteria we use for transition financing, for the purpose of recording progress against our sustainable finance targets. A mapping of the financing criteria in our Sustainable Finance Framework with the impact topics which sit beneath the above-mentioned significant impact area showed a high degree of alignment. We have set a target to facilitate $1trn Sustainable and Transition Financing between 2023 and the end of 2030, in line with the Sustainable Finance Framework and the Transition Finance Framework. This target will also be used to track our performance against our second impact area. To bring additional granularity to this target, we publish an illustrative breakdown of our social and environmental financing against the UN’s Sustainable Development Goals (SDGs). This is done using the mappings in our Sustainable Finance Framework (below).
In 2023 we are also reporting further targets in support of this impact area. These include:
1. Through its Unreasonable Impact programme, Barclays has supported over 300 high-growth entrepreneurs with the network and resources they need to seek to address pressing social and environmental challenges. We aim to reach a further 200 ventures between 2023 and 2027.
2. Through Barclays LifeSkills programme we aim to help 8.7 million young people develop the skills and confidence they need to succeed, and help 250,000 people get placed into work by 2027.
All targets and associated frameworks used to demonstrate progress against our commitments to the PRB are approved by the appropriate Board or Management Committees. | | **STEP 3 – REPORTING** | We report our progress of implementing the PRB on an annual basis in line with the Barclays 2023 Annual Reporting process and timelines using the PRB reporting and self-assessment template v2. Our PRB disclosure is published on our website. The PRB disclosure includes relevant sections published in our Annual Report and company-wide policies and sets out our assessment of our progress in the reporting year. | Find the Portfolio Impact Analysis Tool for Banks here: [unepfi.org/impact/unep-fi-impact-analysis-tools/portfolio-tool/](https://unepfi.org/impact/unep-fi-impact-analysis-tools/portfolio-tool/) Our GRI Index can be found here: [https://home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/](https://home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/) Find our Sustainable Finance Framework here: [home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/#reportingmethodologies](https://home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/#reportingmethodologies) # Assurance KPMG LLP were engaged to perform an independent Limited Assurance engagement under ISAE (UK) 3000 and ISAE 3410 over selected information contained within the Barclays Annual Report 2023, marked with the symbol Δ. Our responses to certain sections within the PRB reporting and self-assessment template have been subject to KPMG Independent Limited Assurance under ISAE (UK) 3000, in accordance with PRB guidelines. This includes our ‘response’ to criteria 2.1, 2.2, 2.3, and 5.1. Assurance statements can be found at: [home.barclays/sustainability/esg-resource-hub/](https://home.barclays/sustainability/esg-resource-hub/) # Select ESG metrics and definitions The following section sets out the reporting approach, boundaries and definitions for select ESG metrics. The performance reported covers the entirety of Barclays PLC together with its subsidiaries, unless otherwise stated. ‘Barclays’ and ‘Group’ are terms which are used to refer to Barclays PLC when the subject matter is identical. The reporting period of the metrics is the 2023 calendar year unless otherwise indicated. ## Net Zero Ambition | Theme | Metric | Definition | Reporting and controls process | | --- | --- | --- | --- | | **Net Zero Ambition** | **Financed emissions**
• Energy portfolio Scope 1, 2, 3 absolute emissions reduction (MtCO$_2$e)
• Power portfolio Scope 1 physical intensity reduction (kgCO$_2$e/MWh)
• Cement portfolio Scope 1, 2 physical intensity reduction (tCO$_2$e/t_Cement)
• Steel portfolio Scope 1, 2 physical intensity reduction (tCO$_2$e/t_Steel)
• Automotive Manufacturing (Light Duty Vehicles (LDVs)) portfolio Scope 1, 2, 3 downstream physical intensity reduction (gCO$_2$e/km)
• UK Housing portfolio emissions Scope 1, 2 physical intensity (kgCO$_2$e/m$^2$)
• Agriculture (UK Livestock and Dairy Farming) portfolio Scope 1, 2, 3 upstream absolute emissions (MtCO$_2$e)
• Aviation portfolio Scope 1, 3 upstream physical intensity (gCO$_2$e/RTK)
• UK Commercial Real Estate portfolio Scope 1, 2 physical intensity (kgCO$_2$e/m$^2$) | BlueTrack™ is our methodology for measuring financed emissions, and tracking them at a portfolio level against the goals and timelines of the Paris Climate Agreement. Our Financed Emissions Methodology document - an update to our previously published BlueTrack™ Whitepaper (2023) which sets out our methodology for reducing our financed emissions) - details our definitions and reporting and controls process. Our Financed Emissions Methodology can be found here. | | ## Capital and Products | Theme | Metric | Definition | Reporting and controls process | | --- | --- | --- | --- | | **Capital and Products** | **Sustainable finance** - Social, environmental, and sustainability-linked financing facilitated (USD)
Green financing facilitated (GBP) | The Barclays Sustainable Finance Framework (SFF) sets out our methodology for classifying financing as sustainable for the purpose of tracking and disclosing our performance against our sustainable finance targets. For the financial year 2023 SFF v4.0 was used to calculate financing volumes. We released SFF v4.1 in February 2024. The SFF can be found below. | **1. Financing eligible under the Sustainable Finance Framework**
Financing volume is tracked across specific products and business lines and according to the social and environmental criteria set out in the Sustainable Finance Framework. The Sustainable Finance Framework was developed by Barclays with support from Sustainalytics, a global provider of ESG and corporate governance research, ratings and analytics. Sustainalytics reviews updates to the Framework periodically to ensure it is in line with market best practice.
**Accounting basis**
All financing volumes for the financial year are reported on a proportional share basis:
• For capital markets transactions, Barclays’ share of the transaction or league table credit,
• Syndicated lending reflects Barclays’ share or hold of the overall transaction value,
• Lending is calculated as total value of limits at issuance and any incremental increase to limits at refinancing.
**Reporting process**
Data is collected from Barclays’ systems (lending data such as loans to clients or green mortgages) or through external data sources (public capital markets transactions). Capital markets transaction data is collected from the Dealogic platform in the financial year and reported to the Climate Reporting team. Where data has been sourced from Dealogic, the FY2023 transactions list is consistent with the data extract taken on 10 January 2024. Lending transactions are extracted from Barclays’ internal booking systems. Internal transactions covering FY2023 were updated on 19 January 2024. Relevant transactions and loan volumes are screened against the qualifying social and environmental criteria, as articulated in our Sustainable Finance Framework (here). Where labelled green, social and sustainable bonds/loans may not align with the SFF, but have been assessed by Barclays to have other credible green, social and sustainability characteristics under other recognised taxonomies or framework (for example, the EU taxonomy) which provide a clear rationale for inclusion, they are included in the target. Wherein a pro-rated part of the transaction is counted against the target, pro-rata calculation is based on an equally weighted allocation to each of the use of proceeds categories as per the issuer framework. Data is reviewed by the business teams and is subjected to central checks by the Climate Reporting team before finalisation and external assurance. Financing qualified based on environmental criteria is reported as green and financing qualified based on social criteria is reported as social. | | **Capital and Products (continued)** | **2. Sustainability-linked financing** | | **Accounting basis**
All financing volumes for the financial year are reported on a proportional share basis:
• Sustainability-linked loans - Barclays’ hold of the deal value
• Sustainability-linked bonds – Barclays share of the transaction
• Sustainability-linked products such as BGI, Trade finance etc – limits at issuance and any incremental increase to limits at refinancing.
**Reporting process**
Data is collected by the Sustainable Product Group team from the respective regional deal teams in Europe, the US and Asia Pacific based on Barclays’ systems and reported to the Climate Reporting team. The sustainable-linked facility is reviewed against the Loan Market Association Sustainability Linked Loan Principles for inclusion in the data set. The volume of sustainability-linked financing provided is reported separately to green and social financing above. To the extent that sustainability-linked financing volumes can be apportioned into green and social categories based on the proportion of green and social SPTs, we will report a breakdown. | | **Capital and Products (continued)** | **Transition Finance**
Transition financing facilitated (USD) | The Barclays Transition Finance Framework (TFF) sets out our methodology for classifying financing as ‘transition’ for the purpose of tracking and disclosing our performance against our target to facilitate $1trn of Sustainable and Transition Financing between 2023 and the end of 2030. The TFF can be found here. | **1. Financing eligible under the Transition Finance Framework**
Financing volume is tracked across products and business lines set out in the TFF v1.0 Section 3 and according to our definition of transition finance and transition criteria set out in section 1.3 and 1.4 of the Transition Finance Framework v1.0.
**Accounting basis**
All financing volumes for the financial year are reported on a proportional share basis:
• For capital markets transactions, Barclays’ share of the transaction or league table credit,
• Syndicated lending reflects Barclays’ share or hold of the overall transaction value,
• Lending is calculated as total value of limits at issuance and any incremental increase to limits.
**Reporting process:**
• Public capital markets transaction data is collected from Dealogic data. For all other products it is sourced from internal lending systems.
• Certain transactions and loan volumes not eligible for being counted as sustainable financing under the SFF are screened against the qualifying transition criteria as articulated in our Transition Finance Framework.
• Data is reviewed by the business teams and is subjected to central checks by the Climate Reporting team before finalisation and assurance.
• Eligibility decisions for a transaction will also be subject to approval at the relevant sustainable finance governance forum depending on product group and business area as per Section 1.7 of the TFF.
• Financing eligible to be classified as transition financing is reported as transition finance. | | **Capital and Products (continued)** | **Sustainable Impact Capital –** Equity capital invested (GBP) | Our Sustainable Impact Capital portfolio, managed by the Barclays Principal Investments team in Treasury, has a mandate to invest up to £500m into global climate technology companies by the end of 2027 – helping support our clients’ transition towards a low-carbon economy. We aim to drive change by strategically investing in visionary early-stage climate tech companies paving the way for solutions in clean energy and a reduction in GHG emissions. Our aim is to bridge financing gaps and support the acceleration and scalability of solutions to environmental challenges. | The Principal Investments team tracks the investments under the Sustainable Impact Capital Programme. Finance sends an inventory of investments within the SIC Programme, which have been reconciled to the general ledger to the Climate Reporting. The Climate Reporting team checks the deal value, date and currency against the official announcement of individual deals before reporting. For non-GBP investments, FX rates are sourced from the banks’ general ledger SAP. The closing rate for each month is used to convert currencies into GBP for reporting purposes. | | **Capital and Products (continued)** | **Treasury Green Bond portfolio –** Green Bond investment balance (GBP) | We track investments in labelled Green Bonds and the number of issuers. | The Green Bond investment balance is provided by Barclays’ Treasury based on a download of their booking system. The impact is calculated by Treasury from the reports provided by the bond issuers. | The Barclays Sustainable Finance Framework (SFF) can be found here: [home.barclays/sustainability/esg-resource-hub/our-approach-to-sustainable-finance/](https://home.barclays/sustainability/esg-resource-hub/our-approach-to-sustainable-finance/) ## Skills and Employability | Theme | Metric | Definition | Reporting and controls process | | --- | --- | --- | --- | | **Skills and Employability** | **Barclays LifeSkills –** Number of people upskilled globally | We measure the number of people who have participated in the Barclays LifeSkills programme through:
• Those accessing online content directly,
• Those participating in activity led by Barclays volunteers or charity partners funded by Barclays, and
• Those participating in activity led by educators working with young people or adults. | Data is reported quarterly in line with the calendar year from the following sources:
• Online activity from Barclays LifeSkills user data and Adobe Analytics data,
• Charity partners’ activity with young people or adults, and
• Barclays LifeSkills volunteering activity recorded by Barclays employees.
Further details on the methodology applied to report the number of individuals supported with Barclays LifeSkills can be found at: [barclayslifeskills.com/reporting](http://barclayslifeskills.com/reporting) | | **Skills and Employability** | **Barclays LifeSkills –** Number of people placed into work globally | We measure the number of people placed into work for pay or profit by our Citizenship charity partners. This includes any paid work (i.e. full time, part time, temporary, seasonal, informal work, paid apprentices, paid internships), but excludes any unpaid work experience, unpaid internships and volunteer work. Pay and profits are defined as monetary value. | Data is reported via the Partner Management Reporting Tool by the Citizenship charity partners. In this reporting platform, the data is reviewed and signed off at two different levels (local and regional) before it is reviewed again globally and aggregated into an overall figure.
**Reporting period**
The performance reported for the programmes run by our Citizenship charity partners covers the 12-month calendar year. | ## Achieving Net Zero Operations | Theme | Metric | Definition | Reporting and controls process | | --- | --- | --- | --- | | **Achieving Net Zero Operations** | **Operational footprint –** Global GHG emissions (tonnes CO$_2$e) | The methodology used to calculate our operational greenhouse gas (GHG) emissions is the Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard (Revised Edition) (GHG Protocol), developed by the World Resources Institute/World Business Council for Sustainable Development.
Barclays defines the organisational boundary for its GHG inventory using the operational control approach. Barclays will account for 100% of the GHG emissions from operations over which it has full authority to implement operating policies for a property. It includes any space or asset that Barclays owns or leases where we manage energy bills and all vehicles that Barclays operates in the reporting year. Our GHG inventory is broken down as follows:
Scope 1: our direct GHG emissions from natural gas, fuel oil, company cars and HFC refrigerants. For HFC refrigerants, reliance is placed on third-party suppliers who are responsible for servicing engineering assets and calculating fugitive consumption and recharge. This is then shared with Barclays via a database to calculate the associated fugitive emissions. In the case of Company-owned vehicles, emissions are limited to UK vehicles only as this is the only country in which expense data is available.
Scope 2: our indirect GHG emissions from purchased electricity (location and market based) and purchased steam and chilled water.
Scope 3 operational emissions: includes the following:
• Category 3 Fuel and energy-related activities (not included in Scope 1 and Scope 2): Includes additional associated emissions with purchased electricity (transmission, distribution losses) and well to tank emissions for electricity, natural gas and diesel fuel.
• Category 5 Waste generated in operations: Includes emissions from third-party disposal and treatment of waste generated through our operations. Also includes emissions from water purchased and discharged from Barclays-owned sites.
• Category 6 Business travel: Includes emissions from global air travel, global car hire, global rail, UK and US taxis, and UK private cars.
• Category 8 Upstream leased assets: Includes emissions from our third-party data centres where Barclays does not have operational control. Included here are emissions associated with energy consumed from a third-party landlord-managed sites, e.g. landlord-controlled heating and cooling systems.
• Category 13 Downstream Leased Assets: Covers Whippany Building 200 which is fully sub-let to tenants. We are currently in the process of gathering additional sub-metered data for additional locations where we sub-let space to tenants which will be reported in this category in the future. | Data collection and reporting is managed by the Corporate Real Estate Solutions & Location Strategy (CRES & Location Strategy) Environmental Management Team. GHG performance is gathered using the internal management reporting process run by the CRES & Location Strategy Environmental Management Team.
**Reporting period**
The 2023 reporting period for Barclays’ operational footprint is from 1 October 2022 until 30 September 2023. 2023 performance reported is consistent with the data extract as of 1 December 2023.
**Data collection**
GHG data is collected monthly for three functions and is inputted across the three sections below:
• Real estate (floor space data is retrieved from a third party that manages Barclays’ property listing and provides monthly acquisitions and disposals of our property portfolio to our third-party reporting tool),
• Data centres (excluding third-party data centres which is captured quarterly),
• Business travel (data is retrieved from Barclays’ travel and expense systems).
Real estate and data centres’ GHG data is collated centrally via our third-party reporting tool. Travel data is collated centrally from different systems across Barclays and uploaded into the reporting tool.
**Scope 1 and Scope 2 GHG emissions**
Energy consumption data is retrieved from actual invoices, utility bills (including estimates provided by utility providers), meter readings or automatic meter reading data feeds whenever possible. There are frequent instances where utility providers provide estimated bills which they have calculated. We consider estimated bills as primary data and use these for reporting purposes. Where metered data or utility invoice data is not available, electricity consumption is calculated based on Barclays’ calculated model.
The following modelling hierarchy is applied at a site level in order of preference: 12-month rolling average, previous years’ data, normalised intensity factor (kWh/m$^2$) and extrapolation data. Intensity factors were calculated based on electricity data for the 2023 reporting period. For FY 2023 1.4% of our total Scope 1 and Scope 2 GHG emissions are modelled.
To calculate Scope 1 and Scope 2 GHG emissions, emissions factors are applied to energy consumption data. Country level emission factors are applied and where these are unavailable we will revert to IEA or GHG protocol factors. Emissions factors are updated annually by our data tool provider ahead of full-year reporting. | | **Achieving Net Zero Operations (continued)** | **Emissions Intensity** | Emissions intensity figures are calculated using Full Time Employees (FTE) figures. Please see page 426 of Barclays 2023 Annual Report for further information on FTE disclosure. | The latest published emission factors for the given year are applied across the reporting period, ensuring that the factors most recent to each reporting year are used. The data tool provider sends Barclays a list of the emission factors that have been applied to calculate the GHG inventory for the relevant reporting year, for review and approval.
To support Scope 2 market-based electricity reporting, Barclays adopted the market-based approach as defined by the Greenhouse Gas Protocol Scope 2 Guidance for market-based emissions reporting. The hierarchy of emission factors applied is as follows:
**Market-based**
1. Emission factors associated with the purchase of renewable energy attribute certificates, equivalent instruments or contracts for electricity (Power Purchase Agreements).
2. If no renewable electricity is being procured or generated, the country- or state-level residual mix factor is applied using the most recently published data.
3. If a residual mix factor is unavailable a location-based emission factor will be applied.
We also track the percentage of renewable electricity sourced using step 1 of the market-based hierarchy above. The total volume of renewable electricity sourcing for the reporting year is divided by the total electricity consumption (both non-fossil fuel and fossil fuel) for the reporting year. We have purchased Energy Attribute Certificates in the form of Renewable Energy Certificates (RECs), Renewable Energy Guarantees of Origin (REGOs) and Green Tariffs to certify our electricity is from renewable sources.
**Location-based**
1. Use GHG Protocol factors for Scope 1 and Scope 2 at the local level where they are available.
2. Use best available local factor where GHG Protocol factor is not available such as US steam factors from the US Energy Information Agency. In the US, state-level factors have been used.
**Scope 3 Category 3 Fuel and Energy-related activities**
Category 3 emissions are calculated using electricity consumption for Transmission & Distribution (T&D) both direct and indirect. For Well-to-tank (WTT ) emissions, electricity, natural gas and diesel fuel consumption is used. It should be noted the same consumption that is used for Scope 1 and Scope 2 is used to calculate Scope 3 Category 3 emissions. | | **Achieving Net Zero Operations (continued)** | | | Category 3 T&D electricity emissions are not calculated for the US, India and Canada as United States Environmental Protection Agency (US EPA, Central Electricity Authority of India (CEA) and Canada National Inventory Report (NIR) do not provide T&D emissions factors. We will include these emissions in our future disclosures using IEA T&D electricity factors. For all other locations T&D electricity emissions are present. For electricity, natural gas and diesel WTT emissions we have applied Department for Environment Food and Rural Affairs (DEFRA) factors for all jurisdictions.
**Scope 3 Category 5 Waste Generated in Operation**
Category 5 emissions are calculated using waste production tonnage with DEFRA emissions factors (for all global locations where we have data), type specific, for waste. Waste data is provided by third-party waste contractors who are responsible for collecting and managing the disposal of our waste. We are aware waste contractors do estimate collection weights which are included within our calculation. Included in this category are emissions from water which are calculated using DEFRA emissions factors for our global water consumption. Water data is provided by utility providers and where we have billing gaps, the same model used for Scope 2 electricity has been used to calculate modelled water consumption.
**Scope 3 Category 6 Business Travel**
The GHG Protocol Emission Factors from Cross-Sector Tools are used for air travel and private car emissions. Emissions factors are applied follows:
• Short-haul flights (domestic flights under 4 hours or <2,780 kms) use Air-Short Haul- Economy Class,
• Long-haul flights (international flights over 4 hours or >2,780kms) use Air- Long Haul- Business Class.
An 8% uplift is included in the GHG calculations from 2013 onwards to account for planes not flying using the direct route. This is in line with the update from the DEFRA. Emissions are based on flight booking date rather than flight date. Air travel data is based on Barclays’ expense systems and requires colleagues to log their expenses in a timely and accurate manner. A flight journey is considered flown unless refunded or exchanged for an alternative journey.
Private car emissions use Passenger Car - Petrol - Engine Size Unknown factor. Remaining ground transport emissions from car hire, rail and taxis are provided by travel suppliers.
**Scope 3 Category 8 Upstream Leased Assets**
Category 8 Upstream Leased Assets have been calculated using electricity and natural gas consumption data. Consumption data is provided by internal technology teams who track monthly IT power consumption. The emission factor approach used for Scope 1 and Scope 2 emissions have been applied to this consumption. | | **Achieving Net Zero Operations (continued)** | | | **Scope 3 Category 13 Downstream Leased Assets**
Category 13 Downstream Leased Assets have been calculated using electricity and natural gas consumption retrieved from utility bills. The emission factor approach used for Scope 1 and Scope 2 emissions have been applied to this consumption.
**Data validation**
All data described in this net zero operations section undergoes a validation process on a quarterly basis. This process looks at:
• Comparison against previous period to check accuracy and identify unusual discrepancies,
• Where unusual trends are identified they are sent back to data providers for further clarification and commentary,
• When errors are found, corrections are uploaded into the reporting system, with the aim of providing a clear auditable trail of information. We continue to work to strengthen our control environment with particular focus on verification of data provided by our third-party suppliers to ensure the accuracy of the information being used to calculate our emissions.
**Approach to adjustments in respect of operational emissions**
We continuously review and update our performance data based on updated GHG emission factors, improvements in data quality and updates to estimates previously applied or relevant changes to our emissions portfolio structure or inclusions – for example:
• Reclassification of emissions from one Scope to another;
• Inclusion of an entirely new emissions category;
• Significant improvement in primary data or emissions methodology.
• Reporting Requirement Changes- Stakeholders may request different cuts of data that may change the way the baseline and previously reported data looks.
Reported emissions for Scope 2 location and market-based have been recalculated back to the 2018 baseline, due to updated internal and external data. The associated emissions have also been re-classified from Scope 2 electricity to Scope 3 Category 8 (Upstream Leased Assets) as these emissions are currently outside of our operational control. In 2022 we reported Scope 2 location-based emissions of 103,422 tCO$_2$e; the recalculated figure is 99,782 tCO$_2$e. In 2022 we reported Scope 2 market-based emissions of 1,883 tCO$_2$e; the recalculated figure is 1,963 tCO$_2$e. In 2022 we reported energy use of 467,939 MWh; the recalculated figure is 463,973 MWh.
We have recalculated FY 2022 Scope 3 Category 5 GHG emissions from 10,700 tCO$_2$e to 352 tCO$_2$e as DEFRA Material Use emission factors were incorrectly applied to waste consumption which resulted in an overstatement of emissions. | ## Sustainable Innovation | Theme | Metric | Definition | Reporting and controls process | | --- | --- | --- | --- | | **Sustainable Growth** | **Unreasonable Impact –** Number of ventures supported | Unreasonable Impact is a collaboration between Unreasonable and Barclays to support growth-stage companies that are tackling social and environmental challenges.
Ventures that join the programme are connected to the Unreasonable community, providing access to specialist advice from investors and mentors, including experts from Barclays.
During an immersive programme of activity, entrepreneurs can dive into critical conversations with experts, breaking down barriers which are slowing their growth.
Unreasonable Impact currently operates across the UK and Europe, Asia Pacific and the Americas. | **Number of ventures supported**
Data reported as the number of ventures that have participated in an Unreasonable Impact program since the start of 2023 evidenced by signed agreements, taken before and during the program, with Barclays and Unreasonable. | ## HR | Theme | Metric | Definition | Reporting and controls process | | --- | --- | --- | --- | | **HR** | **Females at Managing Director and Director level** | Directors and Managing Directors in Barclays* are defined as senior leadership and make up the two most senior grades in the organisational hierarchy.
The following employees are included in this metric:
• Payroll (excluding Outbound);
• Operational and Non-Operational.
These are reported on a headcount basis as opposed to a full-time equivalent basis.
Please see key definitions below:
**Payroll definition:**
| Employee type: Payroll
Employee group: Permanent/Regular; Definition: Paid by Barclays, on payroll and Barclays contract
Employee group: Graduate; Definition: Paid by Barclays, on payroll and Barclays contract (open ended – part of formal Graduate training programme)
Employee group: Inbound (Expat); Definition: Individuals on short- or long-term international assignment – where Inbound is the host country where the employee is currently on assignment
Employee group: Outbound (Expat); Definition: Individuals on short- or long-term international assignment – where Outbound is the home country that the employee will be returning to on completion of the assignment
Employee group: Temp or Contractor on payroll (Fixed Term Contract); Definition: Temporary staff but paid through Barclays payroll for defined term
**Operational definition:**
All active employees are considered operational unless they fall under one of the non-operational categories.
**Non-operational definition:**
An employee moves immediately from Operational to Non-Operational when they:
a. Go on Displacement, Maternity Leave, Additional Paternity Leave, Adoption or Career Break; or
b. Are out of the office for more than ‘n’ days due to sickness where ‘n’ is normally 60 but can vary by country; or
c. Go on Long-Term Global Assignment.
*Excludes Kensington Mortgage Company Ltd, which is an indirect wholly-owned subsidiary of Barclays PLC but does not follow the Barclays Group organisational hierarchy. | Gender information is collected at the point of hire through a self-declaration form; if this is not received the employees’ gender will be recorded as unknown. Gender and Grade data is sourced directly from the HR system through the People Insights reporting tool. Data is captured at the end of each month, e.g. 31 December 2023.
Data is reported as a % of Female Managing Directors and Directors out of the Total Managing Directors and Directors.
Employees are excluded from the reporting when they are no longer employed by Barclays. | | **HR (continued)** | **Females on Group Executive Committee (ExCo) and ExCo direct reports** | • ExCo is defined as those on the Group Executive Committee of Barclays plc as published externally in the Barclays PLC Annual Report 2023.
• Data is as at 31 December 2023.
The following employees are included within this metric:
– ExCo Direct Reports are defined as those reporting into Group ExCo as identified via the line management hierarchy;
– ExCo & ExCo Direct Report data reflective as recorded each month (within five working days each month);
– Managing Directors and Directors only – excludes any other direct reports that are not Managing Directors or Directors;
– Payroll;
– Operational only.
These are reported on a headcount basis as opposed to a full-time equivalent basis. Please see key definitions as referenced in above section. | Gender information is collected at the point of hire through a self-declaration form, if this is not received the colleague’s gender will be reported as unknown.
Gender, Grade and Line Manager data is sourced directly from SAP through the People Insights reporting tool.
Data is reviewed and double-checked each month upon production.
On a monthly basis the data is regularly shared with HR Directors for review to ensure its accuracy.
Data is captured at the end of each month, e.g. 31 December 2023.
Data is reported as a % of Female Managing Directors and Directors out of the Total Managing Directors and Directors who fall under the ExCo & ExCo Direct Report criteria. | # Disclaimer ### Information provided in climate and sustainability disclosures What is important to our investors and stakeholders evolves over time, and we aim to anticipate and respond to these changes. Disclosure expectations in relation to climate change and sustainability matters are particularly fast moving, and differ from more traditional areas of reporting including in relation to the level of detail and forward-looking nature of the information involved and the consideration of impacts on the environment and other persons. We have adapted our approach in relation to the disclosure of such matters. Our climate and sustainability disclosures take into account the wider context relevant to these topics, which may include evolving stakeholder views, the development of our climate strategy, longer timeframes for assessing potential risks and impacts, international long-term climate- and nature-based policy goals and evolving sustainability-related policy frameworks. Our climate and sustainability disclosures are subject to more uncertainty than disclosures relating to other subjects, given market challenges in relation to data reliability, consistency and timeliness – the use of estimates, judgements and assumptions which are likely to change over time, the application and development of data, models, scenarios and methodologies, the change in regulatory landscape, and variations in reporting standards. These factors mean disclosures may be amended, updated, and recalculated in future as market practice and data quality and availability develops, and could cause actual achievements, results, performance or other future events or conditions to differ, in some cases materially, from those stated, implied and/or reflected in any forward-looking statements or metrics included in our climate and sustainability disclosures. We give no assurance as to the likelihood of the achievement or reasonableness of any projections, estimates, forecasts, targets, commitments, ambitions, prospects or returns contained in our climate and sustainability disclosures and make no commitment to revise or update any such disclosures to reflect events or circumstances occurring or existing after the date of such statements. ### Disclaimers In preparing the climate and sustainability content within this disclosure wherever it appears, we have: a. Made certain key judgements, estimations and assumptions. This is, for example, the case in relation to financed emissions, portfolio alignment, classification of environmental and social financing, operational emissions and sustainability metrics, measurement of climate risk and scenario analysis b. Used climate and sustainability data, models, scenarios and methodologies we consider to be appropriate and suitable for these purposes as at the date on which they were deployed. This includes data, models, scenarios and methodologies made available by third parties (over which we have no control) and which may have been prepared using a range of different methodologies, or where the basis of preparation may not be known to us. Methodologies, interpretations or assumptions may not be capable of being independently verified and may therefore be inaccurate. Climate and sustainability data, models, scenarios and methodologies are subject to future risks and uncertainties and may change over time. Climate and sustainability disclosures in this document, including climate and sustainability related data, models and methodologies, are not of the same standard as those available in the context of other financial information and use a greater number and level of judgements, assumptions and estimates, including with respect to the classification of climate and sustainable financing activities. Climate and sustainability disclosures are also not subject to the same or equivalent disclosure standards, historical reference points, benchmarks or globally accepted accounting principles. Historical data cannot be relied on as a strong indicator of future trajectories in the case of climate change and its evolution. Outputs of models, processed data, scenario analysis and the application of methodologies will also be affected by underlying data quality, which can be hard to assess, or challenges in accessing data on a timely basis c. Continued (and will continue) to review and develop our approach to data, models, scenarios and methodologies in line with market principles and standards as this subject area matures. The data, models, scenarios and methodologies used (including those made available by third parties) and the judgements, estimates and/or assumptions made in them or by us are rapidly evolving, and this may directly or indirectly affect the metrics, data points, targets, convergence points and milestones contained in the climate and sustainability content within this disclosure. Further, changes in external factors which are outside of our control such as accounting and/or reporting standards, improvements in data quality, data availability, or updates to methodologies and models and/or updates or restatements of data by third parties, could impact – potentially materially – the performance metrics, data points, targets, convergence points and milestones contained in this disclosure. In future disclosures we may present some or all of the information for this reporting period (including information made available by third parties) using updated or more granular data or improved models, scenarios methodologies, market practices or standards. Equally, we may need to re-baseline, restate, revise, recalculate or recalibrate performance against targets, convergence points or milestones on the basis of such updated data. Such updated information may result in different outcomes than those included in this disclosure. It is important for readers and users of this disclosure to be aware that direct, like-for-like comparisons of each piece of information disclosed may not always be possible from one reporting period to another. The “Implementing our climate strategy” section of the Barclays PLC Annual Report 2023 highlights where information in respect of a previous reporting period has been updated. Our principles-based approach to reporting financed emissions data (see page 84 of the Barclays PLC Annual Report 2023) sets out when financed emissions information in respect of a prior year will be identified and explained. KPMG LLP has performed limited independent assurance over selected climate and sustainability content, which has been marked with the symbol Δ. The assurance engagement was planned and performed in accordance with the International Standard on Assurance Engagements (UK) 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and the International Standard on Assurance Engagements 3410 Assurance of Greenhouse Gas Statements. A limited assurance opinion was issued and is available at the website link below. This includes details of the scope, reporting criteria, respective responsibilities, work performed, limitations and conclusion. No other information in this disclosure has been subject to this external limited assurance. There are a variety of internal and external factors which may impact our reported metrics and progress against our targets, convergence points and milestones. This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance, and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking statements can be made in writing but may also be made verbally by directors, officers and employees of the Group, including during management presentations, in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group’s future financial position, business strategy, income levels, costs, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios, capital distributions – including policy on dividends and share buybacks – return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets – including ESG commitments and targets – plans and objectives for future operations, and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation; regulations, governmental and regulatory policies, expectations and actions, voluntary codes of practices, and the interpretation thereof; changes in International Financial Reporting Standards and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and geopolitical risks and incidents, pandemics and similar events beyond the Group’s control; the impact of competition in the banking and financial services industry; capital, liquidity, leverage and other regulatory rules and requirements applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market-related risks such as changes in interest rates and foreign exchange rates; reforms to benchmark interest rates and indices; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the conflicts in Ukraine and the Middle East on European and global macroeconomic conditions, political stability and financial markets; political elections; developments in the UK’s relationship with the European Union (EU); the risk of cyberattacks, information or security breaches, technology failures or other operational disruptions and any subsequent impacts on the Group’s reputation, business or operations; the Group’s ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group’s control. As a result, the Group’s actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group’s forward-looking statements. Without limitation, in setting its targets and outlook for the period 2024-2026, Barclays has made certain assumptions about the macroeconomic environment, including inflation, interest and unemployment rates, the different markets and competitive conditions in which Barclays operates, and its ability to grow certain businesses and achieve costs savings and other structural actions. Additional risks and factors that may impact the Group’s future financial condition and performance are identified in the description of material existing and emerging risks beginning on page 258 of the Barclays PLC Annual Report 2023. Subject to Barclays PLC’s obligations under the applicable laws and regulations of any relevant jurisdiction – including, without limitation, the UK and the US – in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. © Barclays PLC 2024 Registered office: 1 Churchill Place, London E14 5HP Registered in England. Registered No: 48839