Barclays H1 2023 ESG Investor Presentation slide image

Barclays H1 2023 ESG Investor Presentation

Our strategy and ESG progress Climate and sustainability Social Governance 2 Working alongside our clients as they transition to a low-carbon economy Client Transition Framework (CTF) • • Our CTF will support our evaluation of our corporate clients' current and expected progress as they transition to a low-carbon business model. Together with BlueTrack TM, it will help re-shape our portfolio emissions profile Evaluation methodology Quantitative: Assesses a client's alignment with our emissions targets and sector benchmarks Qualitative: Assesses the credibility of a client's transition plan. Considers criteria such as low-carbon technologies employed and green capex or opex plans Results in an overall CTF score from T1 (best) to T5 (worst) Pilot assessment results • Initial assessments have been conducted for majority of corporate clients in sectors • • where Blue Track TM targets have previously been set (Energy, Power, Cement and Steel) Findings include: o c.80% of assessed clients have climate targets o c.60% of assessed clients have executive compensation tied to achievement of their climate goals We will continue to work to address data quality challenges we have identified • Future applications CTF results will increasingly be integrated into key bank-wide processes Scores may also be used to inform certain existing processes, allowing us to: o Measure, monitor and report on clients' decarbonisation progress o Understand how we can support clients' transition o Identify engagement opportunities o Inform our own transition plan and progress We will focus our climate-specific engagement on the lowest scoring clients Business/events Proactive engagement with many of our clients on the risks and opportunities from the transition >15,000 engagements with clients within the Corporate Bank on ESG topics in 2022 (2021: c.5,000) c.2,000 contacts reached through client events on ESG and sustainability topics in 2022 Research Using our thought leadership to help support client thinking >400 ESG-focused research reports published in 2022 16 | Barclays H1 2023 ESG Investor Presentation | 27 July 2023 BARCLAYS
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