Investor Presentaiton
Principle 1
Principle 2
Principles for Responsible Banking continued
Reporting and self-assessment requirements
06
Barclays PLC
home.barclays/annualreport
Principle 3
Principle 4
Principle 5
Principle 6
High-level summary of bank's response
(limited assurance required for responses to highlighted items)
Understanding and addressing potential negative impact areas
Climate-related risks and opportunities identified over the short, medium, and long term
We see the climate-related risks and opportunities for Barclays as falling into one of three categories.
The first category is the impacts on our physical environment due to global warming and changing climate patterns. These are likely
to lead to increased extreme weather events, which in turn could lead to economic loss for our customers and clients, as well as for
our company.
The second category stems from efforts by governments, institutions and businesses to accelerate the transition to a low-carbon
economy, which may result in policy and regulatory intervention, new market incentives or shifts in demand and behaviour that could
lead to financial impacts on our customers and clients, and on Barclays. This can of course also lead to opportunities to support
clients in their shift to new technologies and business models. The size and severity of these impacts will be affected by the rate
of transition the world's economies undergo in the coming years.
The third is from connected risks or so called second order risks. For example, these could be reduced household affordability
or recessionary pressures from the rise in credit defaults as a result of transition or physical impacts.
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. The financial sector will have an important role to play in stewarding responsible
finance and in supporting new financial flows for a nature-positive future. As a financial services institution, this includes
understanding and evaluating the ways in which our financing activities impact on nature. It also includes the ways in which the
organisation is dependent on nature and functioning ecosystems.
Barclays has relationships with customers and clients across a wide range of sectors and geographies, who face risks to their
operations, supply chains and markets from biodiversity loss and land-use change. Recognising the importance of this agenda,
we are developing our understanding and evaluating the Group's environmental impacts and dependencies as well as where we can
support our clients through the transition to a nature-positive economy.
Collaboration both within and across industries is essential to this transition. Barclays is pleased to be a member of the Taskforce
on Nature-related Financial Disclosures (TNFD) Forum. We also joined the Get Nature Positive Commitment alongside other
businesses to identify opportunities to take nature-positive action. Recognising deep interlinkages across environmental and
social themes, it is necessary to view our work on nature and biodiversity, which includes our approach to deforestation, in tandem
with our work on climate change and human rights.
For more information, see the 'Our approach to nature and biodiversity', 'Reducing our financed emissions' and the 'Managing
impacts in lending and financing' sections in the Barclays PLC Annual Report 2021.
References
Links to bank's full response/
relevant information
PRB Reporting and self-assessment 2021View entire presentation