Barclays PLC 
Climate-related Financial  
Disclosures 2021

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.
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 …
… which we will deliver 
through the Power  
of One Barclays ...
… creating positive 
outcomes for our 
stakeholders.
Our Purpose
Which in turn helps  
us fulfil our Purpose
Customers 
and clients
Colleagues
Society
Investors 
Read more on why and how we 
are growing together on page 2 
of our Annual Report at  
home.barclays/annualreport
Read more on our strategy on 
page 10 of our Annual Report at 
home.barclays/annualreport
Read more on our business model 
on page 12 of our Annual Report at 
home.barclays/annualreport
Strategic priorities to 
sustain and grow
Our diversification, 
built to deliver  
double-digit returns
See our Key Performance 
Indicators on page 20  
of our Annual Report at  
home.barclays/annualreport
The Power of  
One Barclays

Contents
Our climate-related financial disclosures form  
part of the Barclays PLC annual reporting suite.
Inside this book
Introduction
02
Governance
06
Strategy
10
Scenario analysis
22
Risk management
30
Metrics and targets
42
This report provides climate-related disclosures in line with the TCFD Recommendations. A summary of our climate-
related financial disclosures in this report has been integrated into the Strategic Report and the ESG section of the 
Annual Report.
At the time of publishing this TCFD Report, we published Barclays PLC Annual Report 2021 (Annual Report) which is 
available at https://home.barclays/investor-relations/reports-and-events/annual-reports/. Barclays appointed KPMG 
to perform limited independent assurance over selected ESG content in the Annual Report which has been marked in 
the Annual Report 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, which includes details of the scope, reporting 
criteria, respective responsibilities, work performed, limitations and conclusion, and is available on our ESG resource hub 
at: https://home.barclays/sustainability/esg-resource-hub/. Certain data assured by KPMG in the Annual Report has been 
reproduced in this TCFD report. This is marked in this TCFD Report with the symbol Δ. No other information in this TCFD 
Report has been subject to external assurance or audit.
Our experience, insight 
and adaptability help 
unlock opportunities.
See our back cover for an example 
of how we are growing, together.
ESG Resource Hub
The Resource Hub provides detailed technical 
information, disclosures and our position 
statements on environmental, social and 
governance matters. It is intended to be relevant 
for analysts, ESG investors, rating agencies, 
suppliers, clients and all other stakeholders 
home.barclays/sustainability/ 
esg-resource-hub/
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. 
home.barclays/sustainability/esg-resource-
hub/reporting-and-disclosures/
ESG Additional Reporting Disclosures 
We also provide additional information online. 
including progress reporting through our 
membership of initiatives such as the Principles 
for Responsible Banking (PRB), as well as 
reporting indices with reference to the relevant 
sector guidelines from the Sustainability 
Accounting Standards Board (SASB) and the 
Global Reporting Initiative (GRI)
home.barclays/sustainability/esg-resource-
hub/reporting-and-disclosures/
Barclays PLC 
home.barclays/annualreport
01
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

“
A robust approach 
to assessing and 
managing our 
exposure to 
climate-related 
risk is integral 
to our strategy 
to become a net 
zero bank by 2050.
Introduction
Barclays is proud to continue to report  
under the TCFD framework
As I set out in my letter to shareholders in our Annual 
Report, published alongside this document, I believe 
that financial firms have a central role to play in the 
transition to a low-carbon economy, providing credit 
and intermediating investment. 
The drive to net zero is one of the most significant 
forces of change facing our company, and our industry. 
Embracing this goal is one of Barclays’ most important 
strategic priorities.
A robust approach to assessing and managing our 
exposure to climate-related risk is integral to our 
strategy to become a net zero bank by 2050. That 
is why we made the decision to make climate risk 
a Principal Risk at Barclays, reflecting our desire to 
ensure we are proactively managing climate-related 
risks across the organisation. This report sets out the 
detail on the way we assess those risks, as well as the 
opportunities we see.
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.
C. S. Venkatakrishnan 
Group Chief Executive Officer, Barclays
Ambition to be 
 Net Zero
bank by 2050
Align all financing  
to Paris Agreement 
 15%
reduction in energy portfolio 
absolute emissions by 2025
 30%
reduction in power portfolio 
emissions intensity by 2025
Accelerate the transition  
to a low-carbon economy 
 £100bn
green financing by 2030
 £175m
investment in green innovation 
between 2020 and 2025
Introduction
Barclays PLC 
home.barclays/annualreport
02
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Addressing climate change is an urgent and complex 
challenge. It requires a fundamental transformation of 
the global economy, so that society stops adding to 
the total amount of greenhouse gases in the 
atmosphere. 
The financial sector has a critical role to play in 
supporting the economy to reach this goal. It is 
estimated that at least $3-5 trillion1 of additional 
investment will be needed each year, for the next 
30 years, in order to finance the transition.
At Barclays, we are determined to play our part.
In March 2020, we announced our ambition to be a net 
zero bank by 2050, becoming one of the first banks to 
do so.
We have a strategy to turn that ambition into action:
1
2
3
Achieving net  
zero operations 
Barclays is working to achieve 
net zero operations and supply 
chain emissions, investing in 
the continued decarbonisation 
of our operations, and in the 
development of a net zero 
pathway for the emissions 
from our supply chain.
Reducing our 
financed emissions
Barclays is committed to 
aligning its financing with 
the goals and timelines of 
the Paris Agreement.
Financing  
the transition
Barclays is providing the 
green and sustainable 
finance required to transform 
the economies we serve.
Our strategy is underpinned by the way we assess and manage our exposure to climate-related risk. 
Climate risk is a Principal Risk under Barclays’ Enterprise Risk Management Framework. 
Introduction continued
Our climate strategy
Note
1	 $3-5trn as estimated in the GFMA/BCG (Global Financial 
Markets Association/Boston Consulting Group) Climate 
Finance Markets and the Real Economy report,  
December 2020.
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis
Barclays PLC 
home.barclays/annualreport
03
 

Barclays PLC Climate-related Financial Disclosures 2021

2019
 
■Joined Paris Agreement Capital Transition 
Assessment (PACTA) pilot – a leading tool 
developed by the 2˚ Investing Initiative
 
■Founding signatory of the Principles for 
Responsible Banking 
2021
 
■Founding member of the Net-Zero Banking 
Alliance part of the Glasgow Financial Alliance 
for Net Zero
 
■Took part in Bank of England’s Climate Biennial 
Exploratory Scenario
 
■Achieved an 86% Δ reduction in our Scope 1 and 2 
emissions, exceeding our target of 80%
 
■Facilitated over £62.2bn Δ of green financing since 
2018, making strong progress against our £100bn 
target by 2030. 
 
■Reduced our absolute financed Energy emissions 
by 22% and our Power portfolio emissions 
intensity decreased 8% 
2017
 
■Signed statement of support of the Financial 
Stability Board’s Taskforce on Climate-related 
Financial Disclosures
2015
 
■Joined the Paris Pledge for Action
2018
 
■Targeted £100bn of green financing by 2030 and 
£175m investment in green innovation
 
■One of the first mainstream UK banks to launch a 
‘green mortgage’ 
2016
 
■Began working with Carbon Disclosure Project 
to calculate supply chain emissions from top 
39 suppliers
Timeline
2020
 
■Announced ambition to be a net zero bank  
by 2050 and commitment to align our entire  
financing portfolio to the goals and timelines  
of the Paris Agreement 
 
■Launched BlueTrack to measure and track our  
financed emissions
 
■Announced 2025 targets for the Energy and  Power sectors
 
■Updated position statement not to directly finance oil and gas projects 
in the Arctic Circle 
 
■Tightened restrictions on financing of thermal coal mining and power
 
■Operations became carbon neutral 
Introduction continued
Δ 2021 data reproduced from the Barclays PLC Annual Report subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Refer to the ESG resource hub for details: home.barclays/sustainability/esg-resource-hub/
Barclays PLC 
home.barclays/annualreport
04
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

TCFD summary
Section
Recommendation
Page reference
Governance
a) We describe the Board’s oversight of climate-related risks and opportunities
7, 8
b) We describe management’s role in assessing and managing climate-related risks and opportunities.
7-9
Strategy
a) We describe the climate-related risks and opportunities the organisation has identified over the short, 
medium, and long term
11-13, 14-21
b) We describe the impact of climate-related risks and opportunities on the organisation’s businesses, 
strategy, and financial planning. 
13, 14-21
c) We describe the resilience of the organisation’s strategy, taking into consideration different climate-
related scenarios, including a 2°C or lower scenario.
13, 22-29
Risk management
a) We describe the organisation’s processes for identifying and assessing climate-related risks.
34-41
b) We describe the organisation’s processes for managing climate-related risks.
34-41
c) We describe how processes for identifying, assessing, and managing climate-related risks are 
integrated into the organisation’s overall risk management. 
30-33
Metrics and targets
a) We disclose the metrics used by the organisation to assess climate-related risks and opportunities in 
line with its strategy and risk management process.
42-49, 50-52
b) We disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the 
related risks.
45, 47, 48
c) We describe the targets used by the organisation to manage climate-related risks and opportunities 
and performance against targets.
45, 48, 50
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 entitled Recommendations of the Task 
Force on Climate-related Financial Disclosures. This is our fifth TCFD 
Report. For ease of review and given the detailed and technical 
content of the TCFD Report, we have once again published this as a 
standalone report. In October 2021, the TCFD released additional 
guidance implementing the Recommendations of the Task Force on 
Climate-related Financial Disclosures (2021 TCFD Annex), which 
supersedes the 2017 Annex of the same name (2017 TCFD Annex). 
In line with the current UK Listing Rules (Listing Rules) requirements, 
our TCFD-aligned disclosures take into account the implementation 
recommendations in the 2017 TCFD Annex. In addition, we have 
considered the 2021 TCFD Annex and applied it where possible. 
Some recommendations in the 2021 TCFD Annex will require more 
time for us to fully consider. We will be working to implement the rest 
of the 2021 TCFD Annex recommendations over the course of 2022 
and intend to apply these more fully in our next TCFD Report. Further 
details on the TCFD Recommendations and Recommended 
Disclosures are available at: https://www.fsb-tcfd.org
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. This 
will include 2030 targets for two new sectors, Cement and Metals 
(Steel).
Barclays PLC 
home.barclays/annualreport
05
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Barclays’ governance around climate-related  
risks and opportunities
Governance
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis
Barclays PLC 
home.barclays/annualreport
06
 

Barclays PLC Climate-related Financial Disclosures 2021

Governance structure
Oversight and management of climate-related issues are embedded within our governance 
structure. The Board and senior management have visibility of climate-related issues and set 
climate-related strategy and oversee its implementation. 
Board
Management
Legal Entity  
/ Other
Barclays PLC Board
Responsible for the overall leadership of the Group (with direct oversight of matters relating to reputation, environment and culture). 
Business/Legal Entity Committees & Forums
Business-specific forums which consider individual aspects relating to climate.
Board Audit Committee
Assesses the integrity of the Group’s financial statements and  
evaluates the effectiveness of the Group’s internal controls. 
Board Risk Committee
Reviews and monitors the Group’s approach to managing the financial 
and operational  risks including those associated with climate change.
Climate Risk Committee
Sub-committee of Group Risk Committee. Supports 
the oversight of Barclays Group climate risk profile. 
Climate Transaction Review Committee
Co-chaired by Group Head of PPCR considers the 
reputation risks associated with certain transactions and 
clients with reference to our stated position on climate.
Group ExCo
Responsible for the implementation of the Group’s Climate Strategy across the Group.
Group CEO
Accountable to the Barclays PLC Board for 
the implementation of the Group’s 
climate change strategy.
Group Chief  
Risk Officer
Senior Manager responsible for  
climate-related financial risk under 
the Senior Managers Regime.
Group Head of PPCR
Responsible for leading Barclays’ efforts 
in tackling climate change, and for integrating 
our ambition and commitments to help 
accelerate the transition to a low-carbon 
economy into the business.
Group Risk 
Committee
Chaired by the Group CRO 
monitors Principal Risks and 
key topics of a material nature 
to Barclays, such as climate 
change. The most senior 
executive body responsible 
for review and challenge of 
risk practices and risk profile, 
for climate risk and other 
principal risk types.
Operational Sustainability 
Steering Committee
Responsible for the development and implementation 
of Barclays’ operational sustainability strategy.
Oversight and management of climate-related risks 
and opportunities occur at a number of levels in the 
organisation and across business lines and legal 
entities. 
The Chart above shows the key Climate 
Committees/Forums and members of senior 
management with responsibility for climate-related 
issues. These structures ultimately report up to the 
Board or, where within their remit, the Board Audit 
Committee or the Board Risk Committee.
Formal escalation paths and criteria exist which 
support the Committees/Forums in discharging 
their responsibilities and are aligned to the Group’s 
Operation of Committees Policy. 
For further detail on our corporate governance 
please refer to pages 117-199 in the Annual Report.
Barclays’ governance structure consists of the Board, 
Board Committees, Executive and Management 
Committees across both business and legal entity lines.
Board oversight of climate-related risks 
and opportunities 
Barclays PLC Board 
The Barclays PLC Board sets the strategic direction and 
risk appetite of the Group and is the ultimate decision 
making body for matters of Group-wide strategic, 
financial, regulatory or reputational significance. The 
Board is also responsible for the oversight of social and 
environmental matters, including climate-related risks 
and opportunities.
During 2021, the Board received regular updates on 
Public Policy and Corporate Responsibility matters 
(together with Group Reputation Risk Reports) from the 
Group Head of Public Policy & Corporate Responsibility 
(PPCR). These updates covered matters such as key 
government and regulatory policy, regulatory 
engagement and ESG matters including climate. 
Four climate-specific updates were provided to the 
Board by the Group Head of PPCR and Group Head of 
Sustainability, covering areas such as progress on our 
climate strategy, policy updates, industry trends, 
stakeholder engagement and target-setting. 
In addition to these Board briefings, the Group Head 
of PPCR regularly engaged with the Barclays Group 
Chief Executive, Chairman and Non-Executive 
Directors on a range of matters relating to the 
Group’s climate strategy. 
Governance 
structure
Barclays PLC 
home.barclays/annualreport
07
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Governance continued
In 2020 the Board set out our ambition to be a net zero 
bank by 2050. During 2021, the Board:
 
■monitored and provided oversight of Barclays’ 
climate strategy and policies and discussed in detail 
its progress and evolution
 
■considered the proposed scope of the ‘Say on 
Climate’ vote that was announced at the 2021 AGM 
and which will be put to shareholders at the 2022 
AGM
 
■reinforced its strategic climate leadership ambition 
including Barclays’ status as a founding member of 
the Net-Zero Banking Alliance together with other 
banks across multiple countries
 
■reviewed the potential financial, operational, 
commercial and legal implications of Barclays’ 
climate strategy
 
■considered climate-related data and reporting, and 
discussed how progress could be monitored
 
■agreed that the ESG report should form part of the 
Annual Report commencing with the 2021 Annual 
Report
 
■reviewed and approved the updated Enterprise Risk 
Management Framework (ERMF) which included 
climate risk as a Principal Risk with effect from 
1 January 2022.
The Board is supported in its work by its Committees, 
each of which has its own Committee terms of 
reference, which clearly set out its remit and decision-
making powers. This structure enables the Board to 
spend a significant proportion of its time focusing on 
the strategic direction of the Group. The Chairs of each 
of the Board Committees provide a report on the work 
of the Committee at every Board meeting.
Please refer to the ‘Key Board Activities in 
2021’ on pages 120 to 123 of the Barclays PLC 
2021 Annual Report for details of key 
decisions taken by the Board in relation to 
climate-related matters.
Board Risk Committee (BRC) 
The Barclays PLC BRC monitors and recommends the 
Group’s financial, operational and legal risk appetite. It 
considers and reports on key financial and non-financial 
risk issues, and oversees conduct and compliance. It 
also monitors the Group’s financial, operational, 
conduct and legal risk profile.
BRC began the year with a detailed training session on 
the financial and operational risks of climate change to 
enable BRC to deepen its understanding of this 
complex and evolving risk. The training session covered 
Barclays’ governance in this space, progress made over 
the preceding 12 months and areas of key focus for 
2021 and beyond. 
BRC also received and discussed the results of a 
Climate Internal Stress Test. This assisted in deepening 
Barclays’ understanding of climate risks, as did BRC’s 
discussion about the scenarios for the 2021 Climate 
Biennial Exploratory Scenario (CBES) and Barclays’ 
approach to climate specific modelling. BRC 
subsequently discussed and approved the results of 
the 2021 CBES.
For further details on our response to the CBES refer to 
the Scenario Analysis section on pages 22-29. 
On a quarterly basis BRC reviews a Climate Risk 
Dashboard introduced in 2020. This provides BRC with 
updates on evolving climate risk governance and 
exposure to elevated risk sectors and countries across 
financial and operational risks. 
The risks associated with climate change are 
increasingly well understood and, reflecting the 
importance of this global issue, climate risk will be 
elevated to become a Principal Risk within our ERMF 
from 1 January 2022. BRC reviewed the first Climate 
Risk Framework to support climate risk becoming a 
Principal Risk within the ERMF in 2022.
As part of the Group’s strategic planning process, BRC 
recommended to the Board for approval the risk 
appetite statement consisting of both quantitative and 
qualitative statements. 
BRC was also briefed by management on a variety of 
topical Operational risks including those relating to 
climate change.
Board Audit Committee (BAC) 
The Barclays PLC BAC assesses the integrity of the 
Group’s financial statements. It also evaluates the 
effectiveness of the Group’s internal controls. The 
impact of climate change on the Group’s financial 
statements continues to be limited at this time, but this 
is an area that the BAC will continue to monitor.
Management’s role in assessing and managing 
climate-related risks and opportunities
Oversight and management of climate strategy is 
increasingly embedded in business-as-usual 
management structures, including a number of 
executive committees. These committees are 
mandated and form part of Barclays’ formal governance 
architecture. They are convened to oversee a specific 
attribute of the Barclays control framework. Each 
committee is itself governed by terms of reference that 
lay out the duties, decision-making authority and 
escalation route of any material issues.
Reflecting the increasing risks associated with climate 
change, and to support Barclays’ ambition to be a net 
zero bank by 2050, it was agreed that climate risk would 
become a Principal Risk within the ERMF from 2022 to 
run alongside our other Principal Risks types. The 
executive management committees receive regular 
briefings on matters including climate change. This 
management of the Principal Risk will run in parallel with 
our existing processes for managing the Reputation 
Risks associated with climate change.
Group Executive Committee (Group ExCo)
Throughout 2021 the ExCo has been provided with 
regular updates on our climate strategy including 
progress on our commitments, stakeholder 
engagement and expectations, and target-setting. The 
Group Head of PPCR is a member of Group ExCo and is 
accountable for ensuring the Group’s societal purpose 
is present in strategic decision-making at the highest 
levels in the organisation. The Group Head of PPCR 
regularly updates ExCo on a range of Public Policy and 
Corporate Responsibility matters, covering key 
government and regulatory policy, regulator 
engagement and ESG matters including climate. These 
updates include information about key industry trends 
and events, such as the creation of the Net-Zero 
Banking Alliance, COP26 engagement and Barclays 
support for the Global Investment Summit; as well as 
the evolving regulatory focus on climate change. 
Executive Director bonus and Long Term Incentive Plan 
(LTIP) outcomes are assessed against a framework of 
measures, set by the Remuneration Committee. A 
proportion of both bonus and LTIP is driven by 
non-financial performance measures, including 
measures relating to climate. For the 2022 bonus and 
2022-24 LTIP awards, 10% of the overall outcome for 
each will be determined by performance against 
Climate and sustainability measures, reflecting our 
ambition to be net zero by 2050, including our 
commitment to align our financing with the goals of the 
Paris Climate Agreement. See from page 162 in the 
Barclays PLC 2021 Annual Report for information on 
the 2022 LTIP.
Barclays PLC 
home.barclays/annualreport
08
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Governance continued
Group Risk Committee (GRC)
The GRC is the designated forum to review and 
recommend, where necessary, submissions to the 
Board Risk Committee.The GRC is the most senior risk 
executive body and it monitors Principal Risks and key 
topics of a material nature to Barclays, such as climate 
change. Items that have been raised at GRC include the 
methodologies and results of the Climate Internal 
Stress Test, including impacts on retail and wholesale 
credit portfolios. Over 2021 GRC:
 
■discussed how the Climate Internal Stress Test 
assesses our vulnerability to a ‘Disorderly’ climate 
transition, noting that a transition to a low-carbon 
economy reduces the likelihood of such a scenario. 
The GRC discussed how to explore Barclays’ 
vulnerability to a more severe physical risk under the 
‘Hot House World’ scenario
 
■reviewed the 2021 CBES scenarios as well as the 
significant development of our climate modelling 
capabilities since the Climate Internal Stress Test
 
■reviewed the Draft Climate Risk Framework and 
approved the creation of the Climate Risk 
Committee from January 2022 which is a sub-
committee of the GRC
 
■discussed the final version of the Climate Risk 
Framework ahead of its submission to BRC along 
with the eight other Principal Risk Frameworks. In 
addition, the Committee approved the Climate Risk 
Appetite constraint.
 
■received regular updates on the Climate Risk 
Dashboard which focuses on evolving climate risk 
governance and exposure to sectors  and countries 
across financial and operational risks. 
Climate Risk Committee (CRC) 
To support the oversight of Barclays’ Group climate risk 
profile, the CRC was established in January 2022. The 
CRC is a subcommittee of the GRC, the most senior 
executive body responsible for review and challenge of 
risk practices and risk profile, for climate risk and other 
Principal Risks. The authority of the CRC is delegated by 
the GRC.
Climate Transaction Review Committee (CTRC) 
The CTRC is composed of members of ExCo and 
escalates directly to the Barclays Group CEO. The key 
functions of the CTRC are to consider the reputation 
risks associated with certain transactions and clients 
with reference to our stated position on climate1 that 
could prevent Barclays from progressing its 
commitment to align our financing portfolio with the 
goals of the Paris Agreement and/or present significant 
reputation risk.
Operational Sustainability Steering Committee
In 2021, we established the Operational Sustainability 
Steering Committee. Comprised of leadership from 
COO, HR, Communication, Climate Risk and 
Sustainability, this committee is responsible for the 
development and implementation of Barclays’ 
operational sustainability strategy including carbon 
reduction plan and operational net zero ambition.
Group Chief Executive Officer (Group CEO) 
The Group CEO is responsible for driving Barclays’ 
focus on external societal and environmental 
stewardship, and overseeing progress towards Barclays’ 
climate ambition to become net zero by 2050. The CEO 
is Chair of the ExCo which regularly discusses climate 
strategy, and membership includes the Chief Risk 
Officer and Group Head of PPCR. The CEO is closely 
involved in identifying, accelerating and promoting the 
development of Barclays’ climate and sustainable 
finance growth opportunities as we transition to a 
low-carbon economy.
Chief Risk Officer 
The Group Chief Risk Officer is accountable for all 
aspects of managing the climate-related financial and 
operational risks to Barclays. This encompasses the 
measurement, monitoring and limit setting for climate 
risk and the supporting governance.
Group Head of PPCR
The Group Head of PPCR leads the bank’s overall 
sustainability and citizenship agendas. Specifically, the 
role is responsible for leading Barclays’ efforts in 
tackling climate change, and for integrating our 
ambition and commitments to help accelerate the 
transition to a low-carbon economy into the business. 
Group Head of Sustainability
During 2021 Barclays appointed a Group Head of 
Sustainability who leads the Sustainability and ESG 
team, and the strategic direction and execution of 
Barclays’ policies and practices across a broad range of 
sustainability and ESG matters, including climate 
change. The role also oversees the development of 
standards and metrics to advance green and 
sustainable finance and to steward early innovation in 
sustainable product and service development.
This role is responsible for reputation risk issues arising 
from climate change, although the Board has overall 
responsibility for reputation matters generally. The 
Group Head of Sustainability reports directly to the 
Group Head of PPCR.
Head of Climate Risk
The Head of Climate Risk was appointed in July 2020 as 
the Principal Risk Lead for Climate Risk. Being the head 
of the Climate Risk team, the role encompasses the 
development of climate risk governance, including 
ownership of the Group’s Climate Risk Framework, 
making recommendations on risk appetite, constraints 
and exclusions to BRC, informed by Barclays’ net zero 
ambition. Further responsibilities include leading the 
development of climate risk methodologies and our 
approach to carbon modelling, including the 
BlueTrack™ model. The Head of Climate Risk reports 
directly to the Group Chief Risk Officer, and is the Chair 
of CRC, a sub-committee of the GRC.
Business/Legal Entity Committees & Forums
Barclays operates through a combination of formal 
mandated Committees and governance bodies/
forums. The mandated Committee structure operates 
on a Legal Entity basis and will oversee climate-related 
issues relevant to that entity. Other governance bodies/
forums typically operate across the Group and oversee 
climate-related issues, risks and opportunities within 
their remit and escalate material issues as appropriate.
Note
1 	 home.barclays/content/dam/home-barclays/documents/
citizenship/ESG/Barclays-PLC-Climate-Change-2020.pdf
Barclays PLC 
home.barclays/annualreport
09
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

The actual and potential impacts of climate-related 
risks and opportunities on Barclays’ businesses, 
strategy and financial planning
Strategy
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis
Barclays PLC 
home.barclays/annualreport
10
 

Barclays PLC Climate-related Financial Disclosures 2021

Strategy
At Barclays, we are determined to play our part in helping  
accelerate the transition to a low-carbon economy.
Our strategy
The context of our Strategy
The Intergovernmental Panel on Climate Change 
(IPCC) has concluded that the world must reach net 
zero emissions by around 2050 to limit global warming 
to 1.5°C above pre-industrial levels and avoid the worst 
consequences of climate change.
Meeting this urgent challenge will require three things. 
First, enormous scaling-up of low-carbon infrastructure 
and capacity, including renewable energy networks, 
energy efficiency, green transportation and sustainable 
food production. Second, a co-ordinated scaling down 
of carbon intensive activity, including fossil fuel 
consumption, across the global economy. Third, 
ambitious action that recognises the critical role of 
nature and protects, enhances and restores natural 
ecosystems such as forests and oceans.
It is also important that the economic opportunities 
presented by an orderly transition are shared widely and 
that negative impacts on energy security or 
development are avoided, including delivery of the UN’s 
Sustainable Development Goals.
Increasing numbers of countries and companies have 
announced targets to limit emissions, but the world is 
not yet on track to limit global warming to 1.5°C. No 
single government, institution or corporation can 
address this challenge alone. Accelerating a just 
transition will be achieved through co-operation and 
collaboration between the public and private sectors.
Our climate strategy
The financial sector has a critical role to play in helping 
to address climate change. It is estimated that at least 
$3-5 trillion of additional investment will be needed 
each year, for the next 30 years, in order to finance the 
transition.
At Barclays, we are determined to play our part.
In March 2020, we announced our ambition to be a net 
zero bank by 2050, becoming one of the first banks to 
do so.
We have a strategy to turn that ambition into action, as 
set out in more detail from page 14 onwards:
1.	 Achieving net zero operations
Barclays is working to achieve net zero operations1 
and supply chain emissions. Barclays has been carbon 
neutral for its scope 12, scope 23 and scope 3 business 
travel4 emissions since 2020 . 
We have achieved this by reducing or eliminating 
sources of carbon dioxide emissions associated with 
our operations and business travel and by 
compensating any remaining emissions by purchasing 
carbon credits under the Verified Carbon Standard 
(VCS). We intend to remain carbon neutral for scope 1, 
scope 2 and scope 3 business travel emissions, while 
investing in the continued decarbonisation of our 
operations and in the development of a net zero 
pathway for the emissions from our supply chain.
2. Reducing our financed emissions
Barclays is committed to aligning its financing 
portfolios, in every sector, with the goals and timelines 
of the Paris Agreement. We continue our work on 
setting targets consistent with our commitment and 
NZBA requirements to reduce our financed emissions. 
We are also engaging with our clients to support their 
transitions to a low-carbon economy. We have clear 
restrictions on financing certain energy activities, 
including relating to thermal coal, oil sands, fracking and 
projects in the Arctic Circle.
3. Financing the transition
Barclays is providing the green and sustainable finance 
required to transform the economies we serve. We are 
directing investment, including our own capital, into 
new green technologies and infrastructure projects 
that will build up low-carbon energy capability. We are 
also using our advisory, product sets and financial 
expertise to help our customers and clients realise their 
own transitions.
Our strategy is underpinned by the way we assess and 
manage our exposure to climate-related risk. From 
2022, climate risk will be a Principal Risk under Barclays’ 
ERMF. 
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 are those 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.
Notes
1 	
Operations include company cars, offices, retail branches and 
data centres where Barclays have operational control.
2 	
Scope 1 emissions include our direct GHG emissions from 
natural gas, fuel oil, company cars and HFC refrigerants.
3 	
Scope 2 emissions include our indirect GHG emissions from 
purchased electricity and purchased steam and chilled water.
4 	
Scope 3 business travel emissions are our indirect emissions 
from commercial air travel and other transport.
Barclays PLC 
home.barclays/annualreport
11
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Strategy continued
Examples of identified climate physical risks and their potential financial impacts
Acute physical risk 
(event-driven)
S, M, L
 
■These will impact on credit and market risk associated with counterparties and clients.
 
■Barclays’ own operational resilience will mitigate against business disruption and damage to assets.
 
■Acute physical events are already happening in the short term but will likely continue to occur and become more widespread.
Chronic physical risk 
(shifts in climate 
pattern)
M, L
 
■These risks could impact on entire sectors and geographic regions that the bank supports, as well as potentially impacting on the bank’s 
own infrastructure.
 
■These shifts in climate pattern are expected to manifest in the longer term.
Examples of identified climate transition risks and their potential financial impacts
Policy and 
Regulatory risk
S, M, L
 
■Rapid policy or regulatory changes (e.g. carbon taxes, tightening of energy efficiency standards) could lead to increased credit risk of 
clients and counterparties and could alter the definitions of green and sustainable products.
 
■In certain jurisdictions, legislators and policymakers are increasingly focused on building a regulatory framework for the management of 
the financial risks arising from climate change. These include, among other things, regulations and/or policies on climate risk management, 
climate stress testing, taxonomy and disclosure. Compliance with these requirements may increase the costs as well as operational and 
reputational risk on firms with cross-border businesses (as well as the bank), where there is a material divergence in climate regulations and 
policies in the different jurisdictions in which impacted firms operate.
Technology risk
S, M, L
 
■New evolving and disruptive technologies could lead to substantial and rapid changes in costs of production and operation, 
competitiveness, supply and demand in certain sectors – which could impact on credit risk of clients and counterparties.
 
■The risk of this occurring exists now and in the future.
Legal risk
S, M, L
 
■Clients could face potential litigation as a result of the environmental impact of their business activities or their approach to addressing 
climate change, which could lead to credit risk for the bank where we have exposure to them and the Group could similarly face climate-
related litigation or enforcement action in relation to how climate change related risks are addressed. 
 
■There is some evidence that this is an emerging risk which could continue into the future.
We recognise that the financial sector has a critical role 
to play in supporting the economy to transition and to 
avoid the worst impacts of climate change. It is 
estimated that at least $3-5 trillion of additional 
investment will be needed each year, for the next 30  
years. Helping to finance the transition is a key part of  
our climate strategy and we have developed specialised 
teams to help us deliver this – see page 15 further 
below. 
When considering climate-related physical and 
transition issues, Barclays assesses them through 
the following short, medium and long term 
timescales:
Short term
0–1 year
Medium term
1–5 years
Long term
5–30 years
Risks arising from climate change materialise through 
various channels, including through the financial 
services and support we provide to customers and 
clients who may be exposed. They may also arise 
through the operation of our own infrastructure and 
physical premises, which may be exposed to both 
transition and physical risk, or through reputational risk 
to Barclays if the company is not seen to be adequately 
supporting the transition to a low-carbon economy.
Due to the increasing risks associated with climate 
change, and to support Barclays’ ambition to be a net 
zero bank by 2050, in 2020, the Board Risk Committee 
made the decision that climate risk would become a 
Principal Risk within the ERMF from 2022. To support 
this decision, work was undertaken in 2021 to develop a 
Principal Risk Framework underpinned by Governance, 
including a Climate Risk Framework and controls.
Barclays PLC 
home.barclays/annualreport
12
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Strategy continued
This decision recognises that climate risk is relevant 
and material enough to merit establishing a specific 
company-wide control Framework, in line with other 
Principal Risks. It also reflects our intention to ensure 
we are proactively managing climate-related risks 
across the organisation. 
The elevation of climate risk to Principal Risk has 
included a number of exercises that assess the 
materiality of climate-related risks to the business 
including a stocktake exercise that documented where 
climate risk exposure exists and its materiality. Further 
detail on the climate-related risks potentially arising in 
the short, medium and long term that could have a 
material financial impact on the Group and the 
processes used to determine these risks can be found 
within the Risk Management section along with a more 
detailed description of how we assess and manage 
climate-related risks. This is set out in pages 31-41.
For metrics relating to our assessment of sectors at 
elevated risk from physical and transition impacts 
including concentrations of credit exposure to 
carbon-related assets please see the Metrics & Targets 
section on page 51. 
Resilience of our strategy, taking 
into consideration different 
climate‑related scenarios 
We conduct analysis of the magnitude of 
impacts on our business from climate risks 
through Scenario analysis. This means we look at 
potential outcomes – from a rapid transition of 
the global economy through to minimal 
transition over the coming decades – and 
consider the impact on Barclays.
Barclays started to explore climate scenario 
analysis and more specifically stress testing as 
early as 2018 and during 2021, we took part in 
the Bank of England’s Climate Biennial 
Exploratory Stress Test. While climate stress 
testing is still at an exploratory phase across our 
sector, our work to date, using certain 
assumptions, indicates that our business1 is 
resilient to all scenarios explored under the 
CBES. We have started to explore how our 
strategic approach to climate change would 
mitigate risks under a scenario where there is 
early and orderly transition as well as under a 
scenario where there is late and disorderly 
transition.
For further description of the resilience of our 
strategy, taking into consideration different 
climate-related scenarios, including a lower than 
2°C scenario please refer to page 29.
1 	 Our work to date has focused on the impact on our 
balance sheet
The impact of climate-related risks and 
opportunities on our businesses, strategy, 
and financial planning. 
As part of our strategy to turn our net zero ambition 
into action, we are working to address the impacts of 
climate-related risks across our businesses and 
functions. We are also working to identify opportunities. 
The implementation of our strategy is not only 
impacting our products and services, but also our 
operations. We have already started evolving new 
processes and capabilities and are embedding them 
into our operations to address increasing complexity, 
including building technology solutions where required 
to support oversight, management and reporting 
processes. This involves all key businesses and 
functions and is delivered through a centrally-managed 
programme, supported by extensive change 
management expertise.
We have started to consider how to embed our climate 
strategy and the impact of climate-related issues into 
our financial planning processes. We are developing 
processes and levers that will begin to impact on the 
business we engage in. For example:
 
■we strive to continue to decarbonise our own 
operations, reducing our scope 1 and 2 emissions 
 
■we are tracking progress towards portfolio 
alignment with the goals of the Paris Agreement 
through BlueTrack™ , which includes a number of 
portfolio alignment metrics. Additionally the 
financial plan takes into consideration the Group’s 
climate change strategy and targets, but the 
financial implications are likely to be more material in 
the longer term. The metrics are subject to second 
line review by the Climate Risk team to assess the 
strategy against the targets
 
■we continue to develop our green and sustainable 
banking product sets, including for retail customers, 
including green mortgages, bonds, loans and 
investment funds
 
■we have been exploring climate scenario analysis 
and stress testing as a tool to assess and quantify 
the potential impacts on our business from climate 
change
 
■we conduct portfolio reviews to monitor that 
business activities conducted are within Barclays’ 
mandate (i.e. aligned with expectations), and are of 
an appropriate scale (relative to the risk and reward 
of the underlying activities). Mandate & Scale 
Exposure Controls form part of our overall risk 
appetite control framework and climate risks have 
been integrated into annual credit portfolio reviews 
for elevated risk sectors since 2020.
We will continue to embed our climate strategy into the 
way we think about financial planning over the coming 
years. As disclosure requirements and regulation 
continue to evolve, we expect to take these into 
consideration as we develop our financial strategy.
Barclays PLC 
home.barclays/annualreport
13
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Strategy continued
Our Climate Strategy
1.	 Achieving net zero operations
Barclays is working to achieve net zero operations1 and 
supply chain emissions. Barclays has been carbon 
neutral for its scope 12, scope 23 and scope 3 business 
travel4  emissions since 2020. We intend to remain 
carbon neutral, while investing in the continued 
decarbonisation of our operations and in the 
development of a net zero pathway for the emissions 
from our supply chain.
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.
We are defining carbon neutral as first reducing carbon 
dioxide emissions then counterbalancing carbon 
dioxide emissions from scope 1, scope 2 and scope 3 
business travel with carbon offsets.
In 2020, we disclosed that we were already net zero 
from our own operations, based on the common 
understanding at that time, that net zero and carbon 
neutral were interchangeable terms. To reflect the most 
recent interpretations of both of these terms in public 
disclosure, we will make a distinction between net zero 
operations and carbon neutral in our disclosures from 
now on.
The standards available to understand and define net 
zero are rapidly evolving. We will continue to review and 
develop our own approach to net zero operations as 
this subject area matures.
We have been carbon neutral since 2020, by reducing or 
eliminating sources of carbon dioxide emissions 
associated with our operations and business travel and 
by compensating any remaining emissions by 
purchasing carbon credits under the Verified Carbon 
Standard (VCS). 
2.	 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. These are so-called ‘financed 
emissions’ and fall within the general definition of Scope 
3 emissions. 
In November 2020, we published details of our strategy 
for measuring and managing alignment of our financing 
with the goals and timelines of the Paris Agreement. 
Our approach is underpinned by BlueTrack™,  a 
methodology we have developed for measuring our 
financed emissions and tracking them at a portfolio 
level against the goals of the Paris Agreement. 
BlueTrack™ builds on and extends existing industry 
approaches to cover not only lending, but also capital 
markets financing. This better reflects the breadth of 
our support for clients through our investment bank. 
BlueTrack™ starts by selecting an appropriate 
benchmark for a sector, which defines how financed 
emissions for a portfolio need to change over time in 
line with the goals of the Paris Agreement. We then 
determine how our sector portfolios are performing 
against these benchmarks: by measuring the emissions 
that our clients produce, determining how those 
emissions should be linked to the financing we provide, 
and then aggregating those measurements into a 
portfolio-level metric. This portfolio-level metric is then 
compared to the benchmark. This approach allows us 
to make active choices to re-shape our portfolio within 
our ‘carbon limit’ for each sector. This reflects our focus 
on transition and shows specifically how we are 
accelerating the shift from higher-carbon to lower-
carbon activity. For this reason, BlueTrack™ does not 
currently take into account carbon offsets purchased at 
a client level or at a portfolio level.
We are setting targets, informed by Paris- aligned 
benchmark scenarios, to reduce our financed 
emissions. We also have clear restrictions on financing 
certain energy activities, including relating to  thermal 
coal, oil sands, fracking and projects in the Arctic Circle.
The metrics used to calculate a sector’s carbon 
emissions can be either an absolute carbon emission or 
carbon emission intensity metric. The most appropriate 
choice of metric for each sector depends on the nature 
of the portfolio being measured, and how far its carbon 
emissions have already reduced. Generally speaking, we 
believe that most portfolios will be best measured 
primarily using carbon emissions intensity, at least in 
the earlier stages of de-carbonisation. This encourages 
transition to lower emitting fuel sources. The Power 
sector, which is responsible for generating the world’s 
supply of electricity, is best measured initially using an 
intensity metric. 
An exception to our general measurement approach is 
the Energy sector, which is responsible for extracting 
fossil fuels from the earth – mainly coal, oil and gas. It is 
different because it cannot reduce its carbon emissions 
intensity below a certain point (a barrel of oil cannot be 
de-carbonised), and so a reduction in absolute carbon 
emissions is the more appropriate measure.
We have already 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 and because Barclays has meaningful 
exposure to them. Therefore, they represented the 
most appropriate starting place from which to make 
a significant difference. 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% CO2 reduction in absolute emissions of our 
Energy portfolio by 2025. Progress against both 
these targets can be found on pages 47-48 of the 
Metrics & Targets section.
As a founding member of the Net-Zero Banking 
Alliance, we intend to use science-based 
decarbonisation scenarios to set targets for a number 
of high emitting sectors by 2024. 
We believe that Barclays can make the greatest 
difference by supporting the transition to a low-carbon 
economy, rather than by simply phasing out support for 
some of the clients who are most engaged in it. We 
believe that banks, especially those like Barclays with a 
large capital markets business, are in a unique position 
to help accelerate the transition by working with 
companies that are in the process of moving away from 
fossil fuels to renewables, as many of our clients have 
already begun to do. This is particularly true in the 
energy sector, which is already changing rapidly and we 
are supporting our clients as they transition to less 
carbon intensive sources of energy, adopt new 
technologies and increase electrification. Barclays 
takes a considered approach to clients in sectors with 
higher carbon-related exposures or emissions from 
extraction or consumption; we do not think that simple 
divestment achieves the aim of supporting the 
transition of the economy and may not reduce 
emissions if it drives companies to alternative sources 
of finance with less transparency and accountability.
Notes
1	 Operations include company cars, offices, retail branches and 
data centres where Barclays have operational control.
2	 Scope 1 emissions include our direct GHG emissions from natural 
gas, fuel oil, company cars and HFC refrigerants.
3	 Scope 2 emissions include our indirect GHG emissions from 
purchased electricity and purchased steam and chilled water.
4	 Scope 3 business travel emissions are our indirect emissions from 
commercial air travel and other transport.
Barclays PLC 
home.barclays/annualreport
14
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

We are therefore continuing to work with clients in key 
sectors, to gain a more detailed understanding of the 
risks and challenges that the client is facing believing it 
is better to engage with clients in relation to transition, 
rather than simply walking away from financing for 
individual companies. We recognise there may be 
companies or particular activities that cannot transition 
over time, and in such cases we believe those clients will 
find it increasingly difficult to access financing, including 
through Barclays. However, we firmly believe that 
working with clients to facilitate their own transition to a 
low-carbon economy is the best way to make 
meaningful change.
To achieve this, we are engaging with our clients to 
understand their transition to less carbon intensive 
sources of energy. There are certain sectors where the 
transition is most critical, and we know that our scale, 
expertise, and financing power can play an important 
role in helping to accelerate the transition. We 
understand that many of our clients, from Small and 
medium-sized enterprises (SMEs) to global 
corporations with significant carbon footprints have 
started the process of adapting their business models 
to make them more sustainable, including committing 
significant resource to this process, and a growing 
number have made public commitments to becoming 
net zero over the course of the next few decades.
Achieving our targets will largely depend on our clients’ 
progress on their individual transition pathways. Many of 
our clients have published their own transition plans and 
report on their progress; other clients have not yet 
made their transition plans public. We assume that, 
over time, more clients will publish plans and also that 
many of our clients will be able to accelerate their plans 
beyond what is known today. Progress towards our 
targets will not necessarily be linear. In the short term, 
we may experience significant decreases or increases 
in our metrics, partly due to the volatility of the mix and 
volume of capital markets financing (included in our 
metrics) which is generally beyond our control and due 
to the pace of our clients’ emission reductions.
We also have clear restrictions on financing certain 
energy sector activities, including relating to thermal 
coal, oil sands, fracking and projects in the Arctic Circle.
3.	 Financing the transition
The transition to a low-carbon economy is today’s 
defining opportunity for innovation and growth. There is 
a significant opportunity for Barclays to play a leading 
role in helping to meet the demand for climate change 
related financing to support the transition. 
We are directing investment, including our own capital, 
into new green technologies and infrastructure projects 
that will build up low-carbon capacity and capability.  
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. On a cumulative basis, by year end 2021 
we have facilitated £193.3bnΔ  of social, environmental 
and sustainability-linked financing since 2018, 
exceeding our target four years early. 
We have also set a target to facilitate £100bn of 
financing specifically focused on green activities by 
2030. We facilitated £29.8bnΔ of green financing in 
2021, up 69% from £17.6bn in 2020 and comprised of:
 
■labelled, ‘use of proceeds’ and business mix 
financing in environmental categories (£22.6bnΔ in 
2021), and
 
■sustainability-linked financing that incorporates 
environmental performance targets (£7.2bnΔ in 
2021).
Since 2018, a total of £62.2bn Δ has been facilitated 
across these categories, with significant momentum 
across our businesses, products and geographies.
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, helping to 
accelerate our clients’ transition towards a low-carbon 
economy.
The Programme has made meaningful progress 
towards its five year trajectory to meet our target by 
building a portfolio of strategic investments which have 
a focus on reducing carbon footprints and accelerating 
towards a low-carbon economy. £54m of the £175m 
overall target has been deployed since 2020, with £30m 
invested in 2021, up 25% from 2020.
Detail on our progress against these targets can be 
found on page 49 of the Metrics & Targets section.
We also continue to develop our green and sustainable 
banking product sets, including for retail customers, 
including green mortgages, bonds, loans and 
investment funds.
In January 2022 the Group CEO created a Climate & 
Sustainable Finance Council, designed to help identify, 
accelerate and promote the development of Barclays’ 
climate and sustainable finance growth opportunities. 
This includes opportunities for our customers and 
clients across all our businesses, products and services, 
as well as opportunities that could have a material 
financial impact on Barclays. It is chaired by the Group 
CEO and comprised of senior stakeholders from across 
the business. 
The council will support our multi-disciplinary group of 
bankers to deploy these solutions and capture these 
opportunities. This integrated approach brings 
together a number of teams across the organisation as 
shown in the graphic.
As a bank, we believe that we can have the greatest 
impact by collaborating with our clients as they 
decarbonise their businesses and make progress 
towards net zero ambitions. For Barclays and our 
clients, this will require collaboration with partners and 
broader stakeholders, to support innovation and 
manage climate-related risks.
We have summarised in this next section the processes 
undertaken in 2021 to identify, accelerate and promote 
climate-related opportunities with respect to climate 
change related financing.
 Δ 2021 data reproduced from the Barclays PLC Annual Report 
subject to independent Limited Assurance under ISAE(UK)3000 and 
ISAE3410. Refer to the ESG resource hub for details: https://home.
barclays/sustainability/esg-resource-hub/
Strategy continued
Barclays PLC 
home.barclays/annualreport
15
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Developing and deploying financing solutions
Supporting clients across the spectrum
Growth stage 
companies
Mid-size corporates
Large corporates  
and governments
Consumer
Sustainable Product Group
Origination and structuring of green and 
sustainability linked corporate banking products 
across lending, trade and renewable project finance
Sustainable Capital Markets
Origination, structuring and execution of Green, Social and 
Sustainability Debt products for our global clients including 
governments, public sector, corporates and financial institutions
Sustainable Impact  
Capital Programme
Investing £175m of equity 
capital in sustainability-
focused start-ups, helping 
to accelerate our clients’ 
transition towards a low-
carbon economy
Green Home and  
Buy-to-Let Mortgages
Mortgage offering lower 
interest rates for new build 
properties meeting 
minimum energy efficiency 
requirements
Sustainable Investing 
Solutions
Dedicated sustainable 
products, such as 
Sustainable Discretionary 
Strategies and Barclays 
Multi-Impact Growth Fund
Unreasonable Impact
International network of accelerators to support businesses 
solving social and environmental challenges
Investors
Treasury Green Activities
Treasury plays a key role in ensuring Barclays meets its climate goals by allocating, managing and governing its financial resources sustainably. This includes partnering with and 
encouraging business areas to advance strategic climate objectives and executing principal transactions to promote environmental financing
ESG Research
Spanning thematic research on sustainability mega-trends, full integration of material ESG consideration in fundamental 
research, systematic quantitative analysis, as well as strategy research on ESG investing trends
Sustainable & Impact Banking
Strategic advisory, capital raises for growth companies and collaboration across the firm to support  
ESG integration for corporate and investor clients
Sustainable Capital Markets
The Sustainable Capital Markets team is embedded 
into Barclays’ wider capital markets team within the 
Investment Bank. This global team offers a broad range 
of ESG capital market product types and delivers across 
multiple client segments to help clients finance their 
sustainability journeys and formalise their sustainability 
commitments. The team focuses on underwriting and 
structuring green, social and sustainability use of 
proceeds bonds, and sustainability-linked bond 
issuance. The team continued to execute a range of 
landmark transactions in 2021 such as helping the UK 
Government issue its inaugural £10bn green gilt.
Sustainable & Impact Banking (‘SIB’)
SIB is a dedicated sector coverage team focused on 
advising and raising capital for emerging climate 
technology companies across four key verticals: clean 
energy, sustainable materials & recycling, food & 
agriculture tech, and water. SIB also advises our existing 
banking clients on their energy transition (ESG 
Advisory). Regular interaction with ESG funds and other 
stakeholders inform our client dialogue.
Corporate Bank Sustainable Product Group
The Sustainable Product Group focuses on increasing 
sustainable dialogue with our Corporate Banking clients 
as well as delivering a broad range of green and 
sustainable banking products. In addition to corporate 
and project financing, in 2021 the team expanded 
Corporate Banking’s offering to include green and 
sustainability-linked trade, debt and fund financing 
products. The Sustainable Product Group offer 
Corporate Banking clients connectivity with other 
teams in the Corporate and Investment Bank and wider 
Barclays Group.
Strategy continued
Barclays PLC 
home.barclays/annualreport
16
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Responsible investing
At Barclays Private Bank, we view responsible investing 
as an important part of our investment strategy. This 
involves engagement and voting, as well as 
incorporating ESG factors (amongst others) into 
investment analysis and decisions. This assists us 
with our efforts in managing and mitigating ESG risks 
which can materially impact long-term company and 
portfolio returns.
Our Discretionary Portfolio Management offering sits 
at the core of the Private Bank’s long-term strategy. 
The analysis of ESG factors forms an important part of 
our investment due diligence for all of our Private Bank 
discretionary investment strategies globally1. We 
believe that ESG provides insights into the operational 
quality of a business and its ability to mitigate against 
risks to future cash flow, and thereby helps us to make 
better investment decisions. 
Launched in 2018, our Sustainable discretionary 
strategy invests in companies that generate revenues 
from products and services that help to address the 
United Nations’ SDGs.
Wealth Management factors responsible investing into 
our discretionary portfolio and fund investment 
solutions. For clients seeking to explicitly target positive 
environmental and social outcomes, we manage and 
offer a retail fund called the Barclays Multi-Impact 
Growth Fund. It brings together a range of external 
funds, in both equities and bonds, each of which 
focuses upon holding companies that aim to have a 
positive impact on either the environment or society.
Retail Banking
Sustainability is a key focus area for Barclays UK. We 
want to help customers live a more sustainable lifestyle 
by creating opportunities for them to implement green 
changes. We are actively engaging with our retail 
customers to better understand how we can provide 
greener solutions to meet their needs.
We are working closely with our partners such as 
Barclays Partner Finance on key focus areas to help 
customers on their journey from education to 
implementing solutions. We are focusing on creating 
and curating opportunities to enable customers to 
improve the energy efficiency of their homes, tracking 
and offsetting their carbon footprint and making more 
sustainable choices in their day-to-day spending. By 
working collaboratively under a unified strategy across 
Barclays UK, we aim to further expand our green 
products and propositions to meet customers’ 
aspirations.
Treasury Green Activities
Barclays’ Treasury plays a key role in ensuring Barclays 
meets its climate goals by allocating, managing and 
governing its financial resources effectively. This 
includes partnering with and encouraging business 
areas to advance strategic climate objectives and 
executing principal transactions to promote 
environmental financing.
For further detail on Treasury Green Activities, see page 
74 of the Barclays PLC 2021 Annual Report. 
Sustainable Impact Capital
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, helping 
to accelerate our clients’ transition towards a low-
carbon economy. 
From the acceleration of innovative carbon-efficient 
technologies and supply chains to supporting the 
development of viable markets for carbon capture and 
sequestration, the Programme is seeking out and 
supporting clear, scalable propositions that deliver both 
environmental benefits and economic returns.
Through the Programme, we aim to fill growth stage 
funding gaps to help accelerate and scale catalytic and 
strategic solutions to environmental challenges.
The Programme has made meaningful progress 
towards its five year trajectory to meet our target by 
building a portfolio of strategic investments which have 
a focus on reducing carbon footprints and accelerating 
the transition to a low-carbon economy. £54m of the 
£175m overall target has been deployed since 2020, 
with £30m invested in 2021, up 25% from 2020.
In 2022, the Programme will continue deploying 
capital to foster innovation to support Barclays’ net 
zero ambition.
See page 49 in Metrics & Targets for progress to date.
Note
1	 With the exception of services provided in India.
Strategy continued
Barclays PLC 
home.barclays/annualreport
17
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Building our expertise
We continue to invest in our resource and 
capabilities to support execution of our climate 
strategy.
In our specialist sustainable banking teams, we have 
invested in capacity at all levels including a number 
of senior hires to better support our clients and 
deliver our £100bn green financing target. In our 
sector coverage teams, we have provided training to 
our bankers to increase their climate knowledge and 
facilitate client engagement.
In 2021, we provided sustainability & ESG training to 
circa 12,000 colleagues and a further circa 5,500 
also received climate change specific training. 
Bankers operating in sensitive sectors subject to 
restrictions have undertaken mandatory training to 
supplement our control framework and better equip 
them for engagement with clients.
Within Barclays Execution Services we have also 
built out our internal support and advisory services, 
for example the appointment of a new Group Head 
of Sustainability to assist the Group Head of PPCR in 
developing and implementing the Group’s climate 
and sustainability agenda.
Our Risk and Finance functions have also built out 
our capability and capacity to further develop 
BlueTrack™, our methodology for measuring 
financed emissions and tracking them against the 
goals of the Paris Agreement, our climate stress 
testing and our climate reporting infrastructure.
Spotlight on ESG research
Barclays Research has made significant 
investments to grow its ESG research 
capabilities and thought leadership. We hired a 
Global Head of Cross Asset ESG Research at 
the beginning of the year who built a new ESG 
Research team of subject matter experts to 
support the consistent integration of ESG and 
sustainability considerations across all our 
research and investment recommendations. 
Our approach to ESG research is differentiated 
in two ways, yielding much broader-based 
engagement with ESG issues and higher 
quality insights for our investor clients.
Firstly, Barclays is hiring experienced 
sustainability experts in order to help deliver 
deep expertise and ensure the latest technical 
sustainability knowledge is informing our 
research. This enables the critical assessment 
and sourcing of the most appropriate ESG 
information and data and drives in-depth 
materiality assessment in collaboration with 
coverage analysts. Secondly, this team is 
focused on building the ESG knowledge and 
capabilities of all research analysts, providing 
resources and tools to enable broad 
integration of ESG considerations across our 
global research.
For further details on our ESG research, see 
page 74 of the Barclays PLC 2021 Annual 
Report. 
Client engagement
We want to be alongside clients as they transition to a 
low-carbon economy, using our advisory and financial 
expertise to help them navigate this period of 
extraordinary change.
As trusted advisors, we continue to proactively engage 
with many of our larger clients on both the risks and 
opportunities for their businesses. To enable us to 
provide the appropriate advice and capital solutions, we 
also encourage clients to use standardized climate 
disclosures. For instance, in 2021, we engaged with 
approximately 50 clients across the Power, Energy, 
Cement and Metals sectors to encourage them to 
disclose environmental and sustainability information 
via CDP*. To facilitate this, we enhanced our existing 
partnership with CDP to make it easier for clients to use 
their processes and source required information. Other 
examples of support to help clients execute on their 
climate strategies this year include facilitation of initial 
public offerings for green growth companies, 
acquisitions of emerging technology start-ups to 
diversify incumbent clients’ business models and 
financing to mobilise decarbonisation of operational 
activities.
This year, we recorded over 5,000 conversations with 
mid-sized corporate clients on ESG topics, including a 
95% increase in the last two quarters thanks to focused 
efforts by relationship teams to raise ESG topics 
proactively. We are also using our thought leadership to 
help support client thinking as it evolves, capitalising on 
our in-house ESG Research capability. Clients who have 
access to this material often tell us it prompts greater 
evaluation of their business needs, and we have seen a 
number of instances of this leading to broader 
conversations about the transition to a low-carbon 
economy and the ways Barclays is on hand to support. 
In 2021, we published circa 350 meaningful ESG-
focused research reports, an increase of over 100% 
on 2020.
We have run a number of pilot client engagement 
programmes, including a ‘Test and Learn’ series held 
for over 100 SME clients. This series aimed to better 
understand the support that we could offer to clients 
on their transition to net zero.
lndustry engagement
We believe that industry co-operation, particularly in 
setting common standards and transparent reporting, 
is important for all our stakeholders. We continue to 
engage with peers, industry experts and academics to 
assess the transition to a low-carbon economy and 
consider emerging methodologies and taxonomies. 
Barclays has signed the statement of support of the 
Financial Stability Board’ s (FSB) TCFD and has aligned 
its disclosures since 2017. In 2021, we were a founding 
member of the Net-Zero Banking Alliance, part of the 
Glasgow Financial Alliance for Net Zero. We lead and 
participate in numerous industry working groups listed 
on page 55. Examples of our engagement in 2021 
include co-chairing a Net Zero Working Group of HRH 
The Prince of Wales’ Sustainable Markets Initiative’s 
Financial Services Taskforce, which published a Net 
Zero Practitioner’s Guide for banks, developed through 
the collective knowledge and experience of 11 member 
banks, to help the banking industry adopt a consistent 
and transparent approach to supporting clients’ 
transition to net zero.
https://a.storyblok.com/f/109506/x/
a2be4f2b85/20211015_practitioners-guide-vfinal.pdf
 *CDP (formerly the Carbon Disclosure Project) is a not-for-
profit charity that runs a global disclosure system for investors, 
companies, cities, states and regions to manage their 
environmental impacts.
Strategy continued
Barclays PLC 
home.barclays/annualreport
18
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Barclays, as a member of the Partnership for Carbon 
Accounting Financials (PCAF), also co-Chaired a Capital 
Markets Working Group of six global banks that are 
developing a methodology to account for the 
emissions associated with the activity that banks 
undertake to facilitate capital markets transactions. 
During 2021, the group published a discussion paper, 
which was put to public consultation, as a precursor to 
further work on the methodology during 2022.
https://carbonaccountingfinancials.com/files/
consultation-2021/pcaf-capital-market-instruments-
paper.pdf
Government/public policy engagement
Policy makers are central to making the shift to a 
low-carbon economy. Governments and legislatures 
have the ability to commit to a strong position, create 
an appropriately ambitious policy environment, and 
drive consistency across sectors. We seek to work 
closely with governments in the geographies in which 
we operate to support the development of practical 
and ambitious policies where appropriate. We support 
the creation of national green finance strategies, such 
as the UK’s aim to be the world’s first Net Zero-aligned 
Financial Centre, which aims to ensure financial flows 
shift towards supporting the UK’s legally binding net 
zero targets. As a major economic contributor – 
whether via the customers and clients we serve, the 
colleagues we employ, or the tax we pay – we believe it 
is important to contribute towards relevant public policy 
debates. To this end, we engage in activities that could 
either directly or indirectly influence public policy on 
climate-related issues through direct engagement with 
policy makers, trade associations, and funding research 
organisations. These include, but are not limited to, the 
UK Green Finance Institute, UK Finance, the 
Confederation of British Industry (CBI), the Association 
for Financial Markets in Europe (AFME) and the Institute 
of International Finance (IIF). On a senior level we are on 
the board of UNEP FI and also a member of a number of 
industry bodies, for more details refer to page 55. Some 
examples of public policy issues we have engaged on 
include the upcoming UK Taxonomy, improving home 
energy performance, and the EU’s Sustainable Finance 
Strategy.
We endeavour to advance our climate change policy 
through the trade associations of which we are 
members. Many positions taken by trade associations 
result from negotiation and compromise among 
members with different or opposing views. We will 
contribute to these processes, seeking to influence 
how they evolve. Where a trade association’s position 
on climate change does not align with our position, we 
will challenge it and otherwise seek to make our view 
clear. Barclays reserves the right to publicly dissent 
from a trade association’s position. Should a trade 
association adopt a material position that is 
irreconcilable with our values or strategy, we are 
prepared to end our membership.
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. A Just Transition is essential 
for achieving the goals of the Paris Agreement. The 
Paris Agreement envisages that appropriate 
financial resources, new technology and an 
enhanced capacity building framework are put in 
place to support action by those countries most 
vulnerable to the impacts of climate change. 
Governments and the private sector each have 
roles to play in ensuring that the transition to a 
low-carbon economy is not carried out at the 
expense of vulnerable communities, social welfare, 
and access to decent work and quality jobs. Financial 
institutions have a role to play in integrating social 
considerations into their supply chains, policies, and 
decision-making as part of their participation in the 
transition to net zero.
In 2021, Barclays joined over 40 financial institutions 
and stakeholders to form the Financing a Just 
Transition Alliance (FJTA), co-ordinated by the 
Grantham Research Institute on Climate Change 
and Environment at the London School of 
Economics (LSE). The Alliance aims to translate the 
concept of a just transition into tangible steps and 
outcomes. In 2021, Barclays contributed to the 
report, ‘Just Zero: 2021 Report of the UK Financing 
a Just Transition Alliance’, which sets out 
requirements for a just transition in the UK, while 
highlighting potential applications in an international 
context.
The report featured a Barclays case study, focusing 
on Barclays’ Rebuilding Thriving Local Economies 
(RTLE) programme. The RTLE  is a five-year 
initiative, launched in 2018, that aims to boost local 
economies across the UK through co-operation 
with local authorities, academics, schools and 
business groups. The coastal community of Great 
Yarmouth was announced as a RTLE pilot area in 
March 2021; its large offshore wind sector 
represents a growing industry key to the 
decarbonisation of the UK’s energy supply. While in 
the early stages of this pilot, Barclays began to 
scope out ways to help facilitate a Just Transition, 
focusing on two areas – supporting local businesses 
and addressing the local skills gap. Barclays will work 
directly with businesses, business groups and local 
business leadership to help them find opportunities 
for growth and job creation from the transition.
Strategy continued
Barclays PLC 
home.barclays/annualreport
19
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

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 and human rights on page 78 of the 
Barclays PLC 2021 Annual Report, in tandem with our 
work on climate as summarised on pages 100 to 101 
of the Barclays PLC 2021 Annual Report. 
Nature-related risk in financing
We intend to do more to assess and minimise 
negative impacts of our financing activities on nature. 
We have included financing restrictions that seek to 
address biodiversity risk within our position 
statements on Forestry and Agricultural 
Commodities, World Heritage Sites and Ramsar 
Wetlands, and Climate Change.
Barclays has engaged with a number of emerging 
methodologies to assess nature-related impacts and 
dependencies at a portfolio level. In 2021, Barclays 
contributed to initial developments of the Natural 
Capital Finance Alliance’s ENCORE biodiversity 
module which supports financial institutions to better 
understand biodiversity-related impacts of their 
portfolios and we are part of an industry user group 
working to develop an approach to assess nature-
related risks and opportunities relevant to financial 
institutions.
Further to the work that began in 2020 in relation to 
identifying biodiversity and ecosystems as a critical 
area within our PRB pilot impact assessment, we 
continue to assess any associated impacts within 
our portfolio.
For further details, see our position statements on 
the Barclays ESG Resource Hub at: home.barclays/
sustainability/esg-resource-hub/
Further details on our position statements can be 
found in the non-financial information statement on 
pages 49 to 50 of the Barclays PLC 2021 Annual 
Report. 
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. Barclays 
can contribute to meeting this gap through our green 
and sustainable finance targets. These targets include 
financing related to biodiversity, such as ‘sustainable 
food, agriculture, forestry, aquaculture and fisheries’, 
in addition to financing that tracks against Sustainable 
Development Goals (SDG) 14, Life Under Water as 
well as 15, Life on Land. 
Barclays’ operational and business travel carbon 
offsetting strategy includes support for nature-based 
climate solutions. This includes the purchase of 
carbon credits from REDD+ (reducing emissions from 
deforestation and forest degradation) projects and 
support for an innovative early-stage project by 
Indigo, which focuses on measurably enhancing soil 
carbon levels in agricultural land through the 
promotion of regenerative farming practices. We 
recognise the importance of the integrity of natural 
capital, and we aim to ensure any nature based offsets 
we purchase are issued under high quality standards 
and certifications and, where possible, have additional 
environmental and social co-benefits beyond the 
carbon mechanism.
Strategy continued
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. Get Nature 
Positive is a commitment by businesses to 
advance on their journey towards nature positive 
action. Through the commitment, businesses 
agree to continuously enhance their 
understanding of nature-related business 
impacts and to identify new opportunities.
Barclays joined other businesses at the 2021 
United Nations Climate Change Conference 
(COP26) for Nature Day to promote the newly 
launched initiative, and to showcase what the 
financial sector is doing to protect and preserve 
nature and biodiversity.
Further details on Get Nature Positive can be 
found at: getnaturepositive.com/
Barclays PLC 
home.barclays/annualreport
20
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Strategy continued
In addition to accounting for our own operations and 
recognising the critical role of natural systems in 
combating climate change, Barclays’ partnership 
with the Blue Marine Foundation (BLUE) is helping to 
support the protection and sustainable 
management of the global ocean, the planet’s 
largest natural carbon sink.
For further details on Nature-related financing, see 
our ‘Sustainable financing’ section on pages 69 to 
72 of the Barclays PLC 2021 Annual Report.
For further details on our approach to SDGs, see our 
GRI additional disclosure in ESG Resource Hub at: 
home.barclays/sustainability/esg-resource-hub/
reporting-and-disclosures/
For further details on Barclays’ approach to 
environmental impacts in our operations, see the 
‘Our operational footprint’ section on pages 54 to 
56 of the Barclays PLC 2021 Annual Report.
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.
The first year of the donation has included 
supporting the establishment of a fully 
no-take zone nearly the size of France in 
Ascension Island’s waters, securing the 
protection of 300km2 of seabed and kelp 
forests on the south coast of the UK, 
developing a new online educational platform 
to communicate the link between ocean 
health and climate change, and developing 
thought leadership in conservation finance, 
blue carbon and oceanic climate change.
Recognising the critical links between the 
ocean and the issues of climate change and 
biodiversity loss, this partnership is an 
example of how collaboration between NGOs 
and the corporate sector can bring together 
new opportunities for nature-positive action 
and seek to make progress against the gap in 
financing for climate and biodiversity 
solutions.
 	 Further details on the Blue Marine 
Foundation can be found at: 
bluemarinefoundation.com
Barclays PLC 
home.barclays/annualreport
21
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Scenario analysis
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis
Barclays PLC 
home.barclays/annualreport
22
 

Barclays PLC Climate-related Financial Disclosures 2021

Scenario analysis
Scenario analysis is an important tool in assessing the future implications 
of potential climate change pathways on an organisation. Barclays has 
been exploring scenario analysis since 2018.
Scenario analysis
Scenario analysis forms a key part of Barclays’ approach 
to assessing and quantifying the impact from climate 
change. We have developed our approach to scenario 
analysis through detailed quantitative and qualitative 
risk assessments of particular portfolios and activities. 
These can include:
 
■qualitative assessments such as a climate risk 
stocktake exercise to establish a grassroots 
baseline assessment for Principal Risk types, for 
each portfolio and across material entities
 
■quantitative assessments such as climate specific 
internal stress testing and the Bank of England 
Climate Biennial Exploratory Scenario (CBES)
 
■ad-hoc scenario analysis to support risk analysis and 
assessment.
The work we have done to date has covered key 
exposures across the bank’s financial risks, including 
analysis of exposures to elevated climate risk sectors 
from both a physical and transition risk perspective 
across Credit, Market and Liquidity risks, and to 
heightened sovereign and municipal risk across Market 
Risk and Interest rate risk in the banking book (IRRBB). 
During 2020, Barclays undertook a Climate Internal 
Stress Test on material portfolios using two climate 
scenarios as an exercise in preparation for the Bank of 
England’s 2021 CBES – details of this can be found in 
the 2020 TCFD Report https://home.barclays/content/
dam/home-barclays/documents/investor-relations/
reports-and-events/annual-reports/2020/Barclays-
TCFD-Report-2020.pdf. During 2021, and to support 
the CBES exercise, we have significantly enhanced a 
number of our models and methodologies used for 
scenario analysis. Some examples of these are:
a.	 We developed a new approach to assessing physical 
risk, as well as improved transitional modelling for 
corporate exposures. Coverage has also 
significantly increased for clients that are assessed 
at counterparty level, detail of which is included in 
our Corporate Transition Risk Forecast Model 
(home.barclays/content/home-barclays/en/home/
sustainability/addressing-climate-change/
reducing-our-financed-emissions/bluetrack)
b.	 We included subsidence risk factors, together with 
flood risk, in our assessment of UK mortgage risk. 
These risk factors have then been embedded within 
a forecast for house prices
c.	 We developed novel approaches for the largest 
Commercial Real Estate and Housing Association 
exposures, leveraging our UK mortgage model by 
stressing key counterparty financial metrics such as 
Loan-to-value and Interest Coverage Ratio.
Despite marked improvements from previous 
exercises, there remains higher uncertainty around the 
output of these models compared to typical non-
climate-related stress tests given the novel and 
developing nature of climate risks and the long term 
time horizon of the assessment. A summary of the 
approaches and assessments we undertook and key 
themes that emerged from our response to the CBES 
are covered in the following section.
Scenarios
The CBES scenario specification built upon a subset of 
the Network for Greening the Financial System (NGFS) 
climate scenarios and expanded on the NGFS scenarios 
in certain aspects, although they are still consistent 
across many variables. NGFS climate scenarios aim to 
provide central banks and supervisors with a common 
starting point for analysing climate risks under different 
future pathways. Building upon the NGFS climate 
scenarios ensures that the CBES scenarios are 
grounded in a consistent set of pathways for physical 
climate change, the energy system, land-use and the 
wider economy. Specifically, the CBES scenarios take 
the NGFS Net Zero 2050, Delayed Transition and 
Current Policies scenarios as a starting point and 
expanded on these guided by work with climate 
scientists, academics and industry experts.
CBES Scenario
Early Action (EA):
Late Action (LA):
No Additional Action (NAA):
Description
An Early and Orderly 
Transition
The transition to a net zero 
economy starts in 2021. 
Carbon taxes and other 
policies intensify relatively 
gradually over the scenario 
horizon. Global carbon 
dioxide emissions are 
reduced to net zero by 
around 2050. Global 
warming is limited to 1.8°C 
by the end of the scenario 
(2050) relative to pre-
industrial levels.
A Late and Disorderly 
Transition
The implementation of 
policies to drive the 
transition is delayed until 
2031 and is then more 
sudden and disorderly. 
Global warming is limited to 
1.8°C by the end of the 
scenario (2050) relative to 
pre-industrial levels. The 
more compressed nature of 
the reduction in emissions 
results in material short-
term macroeconomic 
disruption.
Includes only policies 
in place before 2021
Primarily explores physical 
risks from climate change. 
Here, there are no new 
climate policies introduced 
beyond those already 
implemented. The absence 
of transition policies leads to 
a growing concentration of 
greenhouse gas emissions 
in the atmosphere and, as a 
result, global temperature 
levels continue to increase, 
reaching 3.3°C relative to 
pre-industrial levels by the 
end of the scenario (2080).
Barclays PLC 
home.barclays/annualreport
23
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Example of CBES Scenario Macroeconomic Impacts: 
Late Action GDP Impact (relative to potential)
% (relative to the counterfactual)
2
0
-2
-4
-6
-8
-10
Year 0
Year 10
Year 20
Year 30
Year 5
Year 15
Year 25
UK GDP
World GDP
No Additional Action GDP Impact (relative to potential)
% (relative to the counterfactual)
0
-2
-4
-6
-8
-10
-12
-14
-16
-18
Year 0
Year 10
Year 20
Year 30
Year 5
Year 15
Year 25
United Kingdom
Euro area
United States
China
The EA Scenario assumes productivity improvements 
to compensate for losses in certain sectors due to the 
increase in carbon prices. Net effects on GDP are 
minimal.
The LA Scenario assumes a material shock in 2031 due 
to the abrupt increase in carbon taxes. Peak cumulative 
impact on GDP is circa -8% relative to the 
counterfactual (where the ‘counterfactual’ is a baseline 
trajectory where no climate impacts impact the 
economy). The overall trajectories of LA Scenario 
between 2031 and 2035 are comparable to traditional 
BoE stress tests, but with material differentiation 
between sectors and geographies.
The NAA Scenario is characterised by a long, steady 
negative impact on growth rates, due to falling 
productivity, damage to capital and falling trade 
volumes. 
UK and EU carbon prices
2010 US$/tonne carbon dioxide equivalent
1,200
900
600
300
0
Year 0
Year 10
Year 20
Year 30
Year 5
Year 15
Year 25
Early Action
Late Action
No Additional Action
The Bank of England in the CBES uses carbon prices as 
the main driver of transition risk with a relatively slow 
and steady increase for the EA Scenario and a more 
abrupt increase and a higher peak for the LA Scenario. 
Carbon Prices provide an indication of the level of 
transition risks in these scenarios. In this context, 
Carbon Price can be thought of as the overall cost 
associated with different transition policies from 
policymakers. In reality, governments may adopt a mix 
of policies to reduce greenhouse gas emissions, for 
example, carbon taxes, cap-and-trade schemes, green 
subsidies and environmental regulations. As a result, 
the term Carbon Price is used to refer to a shadow price 
of all greenhouse gas emissions, i.e. the marginal 
abatement cost of an incremental tonne of emissions. 
The higher shadow price of emissions indicates a more 
stringent transition policy.
Scenario analysis continued
Barclays PLC 
home.barclays/annualreport
24
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Scenario analysis continued
Impacts and 2021 Enhancements 
The results of our CBES exercise have highlighted risks 
within our key portfolios to either Physical Risk, 
Transition Risk or both. We have aggregated results for 
three main segments of our overall exposures – 
Wholesale Credit, Mortgages and Cards - where the 
potential for climate impacts is greatest. The 
magnitude of the impact on credit quality for each is 
shown in the below heatmap, indicating the relative 
impact of the climate scenario during 5 year windows 
where the climate risks were greatest, compared to 
Barclays’ 5-year planning horizon. Further detail on our 
approaches to assessing these portfolios and the 
insights we have gained are explained below. 
 
Scenario
EA
LA
NAA
Wholesale Credit
Medium
High
Medium
Mortgages
Low
Medium
Medium
Cards
Low
Low
Low
Transition risk Approach & Insights
Wholesale Credit: 
We have created an internal counterparty climate risk 
assessment model to assess the impacts of future 
climate transition scenarios on certain corporate 
counterparties of Barclays (the Corporate Transition 
Risk Forecast Model). This model considers the impact 
of climate change at a company level including impacts 
on the counterparty’s financial and credit metrics. It 
also includes specific assumptions and modules for Oil 
& Gas, Power Utility and Automotive sector 
assessments, given sector specific dynamics. Further 
detail of this can be found in our whitepaper at http://
home.barclays/content/home-barclays/en/home/
sustainability/addressing-climate-change/reducing-
our-financed-emissions/bluetrack
For those companies not modelled at this granular 
counterparty level using the Corporate Transition Risk 
Forecast Model, we follow an approach that utilises 
internal stress testing models run using the 
macroeconomic variables which produces impairment 
estimates for the population which can be broken into 
sectors and associated Loan Loss Rates are calculated 
per sector. Consistency checks are made against our 
counterparty model and the Bank of England gross 
value added curves.
Having performed these assessments, we have now 
gained greater insight into the climate drivers at a 
sector level.
These are dependent on the climate scenario but can 
be broadly summarised as follows:
Sector
Transition drivers
Oil & Gas
A structural decline in fossil fuel demand over time will cause Oil & Gas companies, 
which are unable to transition to low-carbon products, to gradually shrink in size as 
existing assets are depleted and new developments are no longer brought online. 
Whilst the sector is highly exposed to transition risk, a key consideration is whether 
the cash flows of the companies in the sector would be sufficient (while diminishing) 
to manage their debt load. 
Power Utilities
The presence of regulatory support, the starting fossil fuel proportion of 
generation, and the presence of Transmission & Distribution business, all act as key 
delineators between those Power Utility players which are positioned to transition 
as economies decarbonise and those that will face greater challenges. In general, 
the transition scenarios represent an opportunity for the Power sector given the 
large increase in electricity demand (driven by renewables), but this trend could 
mask the risks to unregulated or carbon-intensive utilities, that may not have the 
earnings capacity to withstand a low-carbon price or the capex to transition.
Automotive
The ability and extent to which Automotive Manufacturing firms increase electric 
vehicle sales to match increasing consumer preference shifts, will drive changes in 
the market share they enjoy. Those either further behind currently or with lower 
ambitions to transition may find market share fall. 
Cement/Steel/
Shipping/Aviation
Carbon-intensive sectors which are challenging to abate may be challenged by the 
introduction of carbon price policies, as a lack of scalable low-carbon technologies 
lead to high carbon taxes that significantly strain financial performance. 
Mining
Within the Mining sector, coal mining represents the majority of sector carbon 
emissions, as well as representing a commodity that is very sensitive to transition 
risk. As such, those companies where Coal represents a material portion of 
operations and commodity mix will face greater challenges within Transition 
scenarios. 
Agriculture
Transition risks arising from shifting consumer preferences, away from meat and 
dairy and towards more plant based diets, may cause greater challenges to 
non-arable farmers. Evolving taxation on emissions may impact production 
methods, supply chain and farm viability
Barclays PLC 
home.barclays/annualreport
25
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Mortgages: 
Transition risks in the Mortgage portfolio are focused 
on the impacts from energy remediation, driven by 
regulatory policy to improve the EPC rating of 
properties. In order to assess this impact, we have 
considered how this will impact the price of housing, 
which is consistent with how the Bank of England have 
considered the transmission channels of these risks. 
The Bank of England provide a matrix of the average 
costs to transition a home from a current EPC rating to 
a higher rating. These have been used, in combination 
with figures on average property prices in the UK, to 
estimate the effective drag on valuation that a worse 
EPC rated home will face compared to a better EPC 
rated property. This drag is calculated as the cost of 
moving from a current EPC to EPC band A, and reflects 
the possible negative change in valuation that could 
result for properties if remediation costs were deducted 
from the valuation by a potential purchaser, based on 
their current EPC rating.
There will be some properties that cannot be further 
retrofitted to meet minimum energy efficiency 
standards (E rating) and these are set to land value and 
receive the largest stress. Additional requirements were 
incorporated to factor in the costs of a heat pump, 
along with subsidies which partially cover the additional 
retrofitting costs.
Our transition risk assessment for our US Cards 
portfolio concluded that we likely do not have a 
bias towards states that are more exposed to 
transition risks. 
An Energy Performance Certificate (EPC) 
measures the energy efficiency of a property 
on a scale of A-G.
The graph shows this property’s current and potential energy eĦciency.
Properties are given a rating from A (most eĦcient) to G (least eĦcient).
Properties are also given a score, with a higher score indicating that 
a property is more energy eĦcient.
65 | D
86 | B
A
B
C
D
E
F
G
Energy rating
Score
92+
81–91
69–80
55–68
39–54
21–38
1–20
Current Potential
Barclays current distribution of exposure across EPC 
bands, for our UK Residential Mortgage portfolio, is 
shown above, alongside the distribution should every 
property be upgraded to its maximum possible EPC. 
This analysis is based on data sourced from the 
government EPC register and covers the portion of the 
portfolio where an EPC rating can be found1. EPC data is 
available for mortgages amounting to £97.8bn (62% of 
the UK Mortgage portfolio).
The analysis indicated that whilst Barclays’ exposure to
properties which cannot upgrade to minimum energy
efficiency standards is low (~1%) this particular 
population causes an oversized portion of the 
impairment.
Cards: 
We have assessed the sector of employment and 
geographic distribution of our credit card customers in 
the US and Germany, and across our various unsecured 
consumer lending platforms in the UK (credit cards, 
lending and overdrafts). We have run the assessment to 
consider whether our portfolios have a bias towards 
industries or geographies that could be more exposed 
to transition risks. If our analysis indicated such a bias 
existed, we would adjust the economic variables used 
by our impairment models (typically country-level 
unemployment rates) to capture how the risks to 
Barclays portfolios were greater than the wider regional 
or country-level variables.
Note
1 	 It should be noted that this analysis has been run on the 
properties that have an EPC. It is not run for properties that don’t 
have one.
Scenario analysis continued
@ 31 Dec ‘21
Current EPC
Potential EPC
EPC Rating
Balances £m
%
Balances £m
%
A
261.93
0.2
8,689.14
5.5
B
15,922.34
10.1
39,612.17
25.1
C
20,573.07
13.1
35,583.95
22.6
D
37,948.17
24.1
10,167.35
6.5
E
17,881.74
11.3
2,975.40
1.9
F
4,363.62
2.8
608.92
0.4
G
809.54
0.5
123.47
0.1
Missing
59,871.41
37.9
59,871.41
37.9
Total
157,631.81
100.0
157,631.81
100.0
Barclays PLC 
home.barclays/annualreport
26
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Physical risk approach & insights 
Wholesale Credit Risk:
There are a wide number of transmission channels 
through which increased physical risk from climate 
change can impact corporate portfolios. In order to 
assess our largest and most climate sensitive 
wholesale corporates to these risks, we have utilised 
Moodys CreditEdge model and Four TwentySeven’s 
physical risk scores, which cover impacts to companies’ 
operations, supply chains and the markets in which they 
do business from both a spot and forward perspective. 
This includes assessments of the impact of a range of 
climate hazards, including floods, sea level rise, wildfires, 
hurricanes, heat stress and water stress. The analysis is 
conducted for each counterparty at an asset level using 
granular geolocation data. The details of this process 
are below:
 
■the model scores companies for physical risk by 
aggregating site-level climate hazard exposure 
across all of their known facilities, which can range 
from manufacturing sites and warehouses to offices 
and retail stores. The scoring process accounts for 
the fact that facilities will be affected differently by 
climate hazards based on their activities. For 
example, a manufacturing plant that has heavy 
water and energy inputs will be more sensitive to 
heat stress and water stress than an office in the 
same location. Information on a company’s facility 
locations and activities is not public information
 
■facility scores for each hazard are aggregated up to 
the associated company and scaled by percentile 
with respect to the reference universe of companies 
to derive a hazard risk score for each company 
between 0 (low risk) and 100 (high risk)
 
■the analysis from this sample of Barclays’ largest and 
most climate sensitive counterparties has provided 
an initial view* on the sectors most at risk from 
Physical climate hazards. The graph opposite, for 
elevated risk sectors, highlights the proportion of 
counterparties across different Moodys Four 
TwentySeven physical risk buckets.
Elevated Risk Sector – Physical Risk Distribution (CBES Sample companies)
%
67%
33%
Agriculture
Automotive
Aviation
Cement
Chemicals
Coal Mining and Coal Terminals†
Mining‡ (incl. diversiĤed miners)
Oil & Gas
Power Utilities
Road Haulage
Shipping
Steel
0%
20%
40%
60%
80%
100%
57%
29%
14%
0%
25%
25%
25%
25%
50%
17%
18%
15%
46%
34%
15%
5%
9%
46%
45%
100%
34%
50%
16%
20%
20%
20%
40%
35%
10%
40%
15%
26%
36%
32%
6%
33%
33%
33%
0%
0%
0%
0%
0%
0–25
50–75
75–100
25–50
*The analysis is based on the sample population of corporates assessed at counterparty level for the CBES exercise and thus coverage differs 
across sectors. For example, the Agriculture sector includes only a small number of global Agriculture firms and does not include our UK 
Farming portfolio, which is not currently covered by Moodys 427.
In some instances, the Moodys universe did not include counterparties required for counterparty level modelling. To ensure coverage, a 
benchmarking approach based on industry and country combination was followed using the country and industry level averages of the entire 
Moody’s 427 universe.
† Coal Mining and Coal Terminals relates to one client predominantly engaged in metallurgical coal mining.
‡ Diversified miners with minority interests in thermal coal mining are included in this category.
Scenario analysis continued
Barclays PLC 
home.barclays/annualreport
27
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Mortgages
For Barclays’ UK mortgage portfolio, the most material 
physical climate hazards were deemed to be flood and 
subsidence risk. As such, our approach to assessing 
physical climate risk in this portfolio focused on 
forecasting how these two physical hazards could 
change over time, and how these changes would 
impact Barclays customers. To assist with this 
assessment, Barclays collaborated with Willis Towers 
Watson (WTW), to develop a granular climate change 
impact diagnostic for flood and subsidence, which 
could be used to derive changes to the valuation of 
properties driven by increasing risk from these climate 
hazards. This in turn provides Barclays with a view on 
both our current exposure to physical risks, but also 
how this exposure would evolve over a long term 
horizon due to the effects of climate change.
Flood
Flooding in the UK is forecast to increase over time and 
the rate of this increase could accelerate if greenhouse 
gas emissions are not reduced. The risks from flooding 
depend on a number of factors, including precipitation 
levels, the topography of the surrounding land or the 
presence of nearby bodies of water. These risks can be 
mitigated through flood defences and other adaptation 
actions, as well as the availability of insurance coverage. 
Considering these factors allows for a view on the level 
of flood risk, which can in turn be incorporated into 
assessments of the value of properties or the ability of 
the homeowner to repay the mortgage. 
In order to forecast the impact of climate change on 
flood probabilities, data from the UK Climate Change 
Exposure Assessment (2017) UK was used. This study 
includes projections of river peak flow changes for 
future climate change scenarios, and by utilising the 
changes in these projections it was possible to 
approximate the expected change in flood ‘return 
periods’ (likelihood of occurrence) across the UK. 
The flood exposures of postcodes were then combined 
with flood data from leading external model providers, 
who provide a high resolution view of flood risk across 
the UK. By combining these sources, a hazard rating 
was produced across the whole of the UK at a postcode 
sector level. By using these external models, it was also 
possible to derive a defended and undefended view (i.e. 
including consideration of flood defenses) over time. 
To translate these flood risks into house price impacts, 
published academic studies have been used which 
assess the relationship between historic property 
valuations and flood risks. These studies not only 
account for the impacts on house price where a 
property is exposed to flooding directly, but also the 
impacts from flooding on nearby infrastructure such as 
roads, which might affect the desirability of the property 
overall. By using these, a formula which transforms 
flood risk hazard data to discounts of house prices was 
developed. 
Subsidence
Subsidence is driven by the interplay of precipitation 
and temperature factors, which result in volumetric 
changes to the soil. As such, increased volatility in 
weather conditions, as a result of climate change, 
contributes to the acceleration of subsidence 
impacts. Some areas are more susceptible due to the 
soil type, for example, London clay. This shrink-swell 
impact can cause significant localised property level 
impacts, which can lead to significant impacts to the 
valuation of a property or associated costs to deal with 
the effects of subsidence.
To create a granular view of subsidence risk across the 
UK, data was used from the British Geological Survey 
(BGS), which shows the potential change in subsidence 
from changes in climate, combining long-term rainfall 
and temperature changes with the geotechnical 
properties of the ground. This allows identification of 
areas projected to experience the largest increases in 
susceptibility to subsidence over the next century. 
This data was enriched by considering additional 
information on mining activities and the proportion of 
older properties within a postcode. Mining activity 
considerations included factors such as shrink-swell 
potential, landslide and running sand risks. To ensure 
that postcodes reflected increased risks at an 
aggregate level from older properties (themselves 
more susceptible to subsidence), the distribution of 
dwellings in a postcode was also considered and the 
hazard score adjusted where this distribution showed 
more/fewer older properties. 
Scenario analysis continued
Subsidence Risk
Impact
None
High
Flood Risk
Impact
None
High
Barclays PLC 
home.barclays/annualreport
28
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

At a postcode level, subsidence risk should typically be 
low compared to flood risk, as the impact is more local 
rather than regional. When a particular property 
experiences subsidence, this would impact immediate 
neighbours but is less likely to impact the whole post 
code area. However existing studies to calibrate the 
property discount acknowledge that they suffer from 
sample selection bias, as houses that experience a 
serious subsidence event are no longer in the market. 
These factors have both been factored in when 
calibrating the formula to transform subsidence risk 
into property price impacts.
Visual representations of flood and subsidence risk 
across the UK by 2080, under a RCP8.5 high emissions 
scenario are shown on the previous page. 
Impact on property prices from climate change are 
expected to occur in the areas flagged as being at high 
risk of flooding and or subsidence.
These assessments have allowed us to build UK 
physical hazard maps from which we can calculate an 
impact on house prices.
While not as severe as flood risk, a greater proportion of 
Barclays portfolio is exposed to subsidence given the 
concentration within London and that vast quantities of 
housing stock are built on clay soil.
Resilience of our strategy, taking into 
consideration different climate-related 
scenarios
At the beginning of this section, we explained that we 
use scenario analysis to help us assess and quantify 
potential impacts from climate change. The internal 
stress tests we have conducted to date and the most 
recent CBES exercise allowed us to better understand 
the impacts of climate change on our current balance 
sheet.  
The impact of the climate scenarios we have explored, 
even over the long term, is more benign than the 
scenarios we generally use to test the resilience of our 
business model. Our work to date, using certain 
scenarios and assumptions, indicates that our business 
is resilient under all scenarios explored under the CBES.
Nevertheless, we have also begun to explore the impact 
of our strategic approach to climate change on our 
business.  Overall, the assessment under this CBES 
exercise suggests that Barclays’ strategic plans of 
managing the emerging climate risks and aligning our 
financing to the goals of the Paris Agreement in part 
mitigates some of the risk in at least two of the three 
scenarios – the Early Action and Late Action scenarios.
The Late Action scenario revealed a higher disruption 
compared with the Early Action scenario due to the 
delay in policy incentives which amplified the transition 
risks faced by our clients. In this scenario, there would 
be a greater need and opportunity to support our 
clients to adapt, where they are in sectors most 
vulnerable to transition risks. However, our strategic 
plans to transition our portfolio proves to be of benefit 
under the Early Action scenario and Late Action 
scenario as such action reduces our risk exposure.
Impacts are likely to be observed in certain businesses 
in the No Additional Action scenario in which the world 
will experience heightened physical risks in the 
longer-term. Without any additional policy support to 
incentivise the transition, the gap between our ambition 
to transition to net zero and the carbon reductions 
observed in the economy would increase. Barclays 
would need to consider the implications of such 
divergence and manage increasing exposure to physical 
risks faced by certain segments of customers and 
clients we serve.
Scenario analysis continued
Barclays PLC 
home.barclays/annualreport
29
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

The processes used by Barclays to identify, 
assess and manage climate-related risks
Risk management
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis
Barclays PLC 
home.barclays/annualreport
30
 

Barclays PLC Climate-related Financial Disclosures 2021

Risk management
Our decision to make climate a Principal Risk reflects our 
approach to ensuring we are proactively managing 
climate-related risks across the organisation
In 2020, the Board Risk Committee made the decision 
that climate risk would become a Principal Risk within 
the Enterprise Risk Management Framework (ERMF) 
from 2022. The elevation of climate risk to Principal Risk 
recognises that it is relevant and material enough to 
merit establishing a specific bank-wide Framework, in 
line with other principal risks.
To support this decision, in 2021 the Barclays Group 
delivered a Climate Risk Integration Plan with three 
overarching objectives:
 
■governance framework: develop a Principal Risk 
Framework and Risk Appetite Statement and 
integrate climate drivers into limit setting
 
■scenario analysis: refine methodologies used for the 
2020 scenario analysis to support the Bank of 
England Biennial Exploratory Scenario on climate 
change, with specific focus on wholesale credit and 
physical risk modelling
 
■carbon modelling: enhance the BlueTrack™ model 
to further develop the approach for the Energy 
sector, expand coverage to Cement and Metals 
(Steel) and consider the overall net zero ambition of 
the Barclays Group*.
*Barclays will publish an update to its climate strategy in advance of 
its 2022 Annual General Meeting including updates on our approach, 
targets and methodology. This will include 2030 emissions targets 
for our Cement and Metals (Steel) sectors.
Climate as a Principal Risk
The elevation of climate risk to Principal Risk 
included establishment of governance elements, 
including:
 
■a Climate Risk Framework that defines 
climate risk and summarises the approach to 
identification, measurement, monitoring and 
reporting of climate risk
 
■Climate Risk Appetite at Group level 
established in line with the Group’s risk appetite 
approach and informed by scenario analysis
 
■a Climate Risk Committee that provides 
oversight of the Barclays Group Climate 
Risk profile
 
■approval for a climate risk control horizontal, 
to be stood up in 2022.
To inform the establishment of Climate Risk 
Appetite, two tools were utilised: 
 
■2021 Stocktake exercise: to establish a 
baseline assessment by risk type and across 
entities. This was used to document where 
climate risk exposure exists and its materiality
 
■Climate Risk Register: used to inform risk 
appetite. This includes a breakdown of key risk 
drivers for physical and transition risks, and 
materiality ratings using the 2020 climate IST. 
The Climate Risk Register continues to align 
with the Group’s Risk Register Taxonomy.
Barclays entities, namely Barclays Bank UK (BBUK), 
Barclays Bank Europe (BBE) and US Intermediate 
Holding Company, also continued to embed 
climate risk within their frameworks throughout 
2021. Those material entities have dedicated 
climate leads. 
Due to the nature of climate risk our approach 
will continue to evolve, including consideration of 
the relative significance of climate risk against 
other risks
Climate-related risks 
We broadly categorise climate risks into three categories – transition risk, physical risk and connected risk. Within 
these, we identify a number of factors arising from climate change which we monitor over the short, medium and 
long term.
Transition risk
As the world transitions to a low-carbon economy, 
financial institutions such as the Barclays Bank Group 
may face significant and rapid developments in 
stakeholder expectations, policy, law and regulation 
which could impact the lending activities the Barclays 
Bank Group undertakes, as well as the risks associated 
with its other portfolios, and the value of the Barclays 
Bank Group’s financial assets. 
As sentiment towards climate change shifts and 
societal preferences change, the Barclays Bank Group 
may face greater scrutiny of the type of business it 
conducts, adverse media coverage, reputational 
damage and financial and operational risks, which may 
in turn impact customer demand for the Barclays 
Bank Group’s products, returns on certain business 
activities and the value of certain assets and trading 
positions resulting in impairment charges.
Physical risk
Physical risks from climate change arise from a 
number of factors and relate to specific weather 
events and longer-term shifts in the climate. The 
nature and timing of extreme weather events are 
uncertain but they are increasing in frequency and 
their impact on the economy is predicted to be more 
acute in the future. 
The potential impact on the economy includes, but is 
not limited to, lower GDP growth, higher 
unemployment and significant changes in asset 
prices and profitability of industries. Damage to 
properties and operations of borrowers could impair 
asset values and the creditworthiness of customers 
leading to increased default rates, delinquencies, 
write-offs and impairment charges in the Barclays 
Bank Group’s portfolios. In addition, the Barclays Bank 
Group’s premises and resilience may also suffer 
physical damage due to weather events leading to 
increased costs for the Barclays Bank Group.
Connected risk
In addition, the impacts of physical and transition climate risks can lead to second order connected risks, which 
have the potential to affect the Barclays Bank Group’s retail and wholesale portfolios. The impacts of climate 
change may increase losses for those sectors sensitive to the effects of physical and transition risks. Any 
subsequent increase in defaults and rising unemployment could create recessionary pressures, which may lead 
to wider deterioration in the creditworthiness of the Barclays Bank Group’s clients, higher ECLs, and increased 
charge-offs and defaults among retail customers.
When considering climate-related risks, Barclays has categorised short, medium and 
long term to mean the following timescales:
Short term (S)
0–1 year
Medium term (M)
1–5 years
Long term (L)
5–30 years
Barclays PLC 
home.barclays/annualreport
31
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Risk management continued
Climate change, being a unique phenomenon and a 
driver of risks, may lead to economic and operational 
impacts and may increase the likelihood or severity of 
other risks, for example:
 
■cyclical: amplifying economic cycles, including 
deeper troughs
 
■structural: macroeconomic shifts as economies 
transition to a low-carbon economy, driven by: 
regulatory tightening; introduction and deepening 
of carbon pricing mechanisms, including carbon 
taxes; emission trading schemes and technology 
evolution; and as the climate system changes
 
■potential for tail risks and tipping points, for example 
from chronic physical risks that are not currently 
clearly understood. This might include impacts from 
lack of access to clean water, mass human migration 
due to inhospitable conditions, biodiversity and 
ecosystem services loss, second order impacts on 
food chain, or conflict resulting from competition for 
environmental resources.
Enterprise Risk 
Management Framework 
The ERMF sets the strategic approach for risk 
management across the firm by defining standards, 
objectives and responsibilities for all areas of the Group. 
The ERMF is complemented by frameworks, policies 
and standards which are aligned to individual Principal 
Risks. Risks arising from climate change materialise 
through various channels: 1) through the financial 
services and support we provide to customers and 
clients who may be exposed to the risks of climate 
change; 2) the operation of our own infrastructure, 
business and premises which may be exposed to 
both transition and physical risk; and 3) through 
reputational risk to Barclays if the company is not 
seen to be adequately supporting the transition to 
a low-carbon economy.
Table below sets out how climate risk, in addition to becoming a principal risk from 2022, is integrated across Barclays using the ERMF aligned Climate Risk Framework, Climate 
Change Financial Risk and Operational Risk Policy (CCFOR) and the Climate Change Standard. These key processes are further described in this section of the report.
Governance
Responsibilities
Enterprise Risk Management Framework (ERMF)
Climate Risk Framework
Climate risk
Climate Change Financial Risk and Operational Risk Policy
Climate Change 
Standard
Credit risk
Market risk
Treasury and capital risk
Operational risk
Reputation risk
 
■Provide climate horizon 
scanning information and 
emerging trends to BRC 
and Principal Risk Leads.
 
■Recommend risk appetite 
statement, constraints 
and exclusions to BRC.
 
■Define areas of concern 
and recommend scenario 
analysis priorities.
 
■Lead the development of 
climate-specific risk 
methodologies 
 
■Interpret stress test 
results for relevance as 
drivers of risk 
 
■Review and challenge risk 
type approaches and 
support consistency 
across risk types
 
■Aggregate and monitor a 
central climate risk view 
across in scope risk types 
 
■Review individual 
obligors’ exposure 
using Climate 
Change Lens.
 
■Consider Climate 
Change risk 
appetite in 
relevant countries 
and portfolios.
 
■Include in the 
Internal Capital 
Adequacy 
Assessment 
Process (ICAAP).
 
■Oversight by Retail 
and Wholesale 
Risk Management 
Committees, and 
Board Risk 
Committee.
 
■	Identify and 
assess climate-
related risk factors.
 
■Apply stress 
scenarios, assess 
stress losses and 
set risk limits.
 
■Include in ICAAP.
 
■Oversight by 
Market Risk 
Committee and 
Board Risk 
Committee.
 
■Identify exposure to 
climate risk.
 
■Consider key 
indicators and limits 
to support risk 
management. 
 
■Include in ICAAP 
and Internal Liquidity 
Adequacy 
Assessment 
Process (ILAAP).
 
■Oversight by 
Treasury & Capital 
Risk Committee and 
Board Risk 
Committee.
 
■Integrate climate 
change across 
different risk 
categories, e.g. 
Resilience and 
Premises.
 
■Include climate 
change within risk 
assessment 
processes 
including Strategic 
Risk Assessment.
 
■Outline minimum 
requirements and 
controls for 
Reputation Risk 
management 
relating to client 
relationships or 
transactions. 
 
■Outline the 
expected business 
behaviours in 
relation to these 
issues.
 
■Outline the 
approach to 
enhanced due 
diligence. 
Ownership
Climate Risk 
Accountable Officer
Credit Risk
Accountable Officer
Market Risk 
Accountable Officer
Treasury & 
Capital Risk 
Accountable Officer
Operational Risk
Accountable Officer
Group Head of 
Sustainability
Read more on page 33
Read more on pages 
35-37
Read more on pages 
37-38
Read more on pages 
38-39
Read more on pages 
39-40
Read more on pages 
40-41
Barclays PLC 
home.barclays/annualreport
32
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Risk management continued
Climate Risk Framework 
Our approach to climate risk management is guided by 
our strategy as well as by the policy and regulatory 
requirements of the regions in which Barclays and its 
affiliates operate.
As part of climate risk becoming a Principal Risk the 
Climate Risk Framework was developed. 
The Climate Risk Framework has been defined to 
support the ERMF and outlines:
 
■	Barclays climate risk definition
 
■the overall approach for identification and 
measurement of physical, transition and connected 
risk variables
 
■the process for setting risk appetite
 
■climate risk controls approach, including Risk 
Assessment process. 
Risks resulting from climate change aligned to Model, 
Conduct, Reputation and Legal Principal Risks are out 
of the scope of the CRF but are and will continue to be 
managed under their respective Principal Risk 
Frameworks. As climate risk continues to evolve, the 
effect upon these risks may change. Specific 
consideration of the impact of these changes will be 
covered as part of these frameworks.
CCFOR 
Recognising that climate change can be a driver to 
existing Principal risks, the Climate Change Financial 
Risk and Operational Risk Policy was introduced in 2019. 
The policy was embedded in each of the Principal Risk 
Frameworks in the table overleaf and established key 
principles for identifying and quantifying climate risk, 
with supporting reporting and governance.
Climate Change Standard 
Our Climate Change Statement sets out our approach 
to managing the impact of our climate-related 
activities. We have developed an internal standard to 
reflect these positions in more detail and, together with 
other environmentally-related statements and 
standards, which now determine our approach to 
climate change and relevant sensitive sectors. These 
standards sit under the management of reputation risk 
within the ERMF and are considered through existing 
transaction origination, review and approval processes.
Barclays PLC 
home.barclays/annualreport
33
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Climate-related risk 
management process
Credit risk
Market risk
Treasury and capital risk
Operational risk
Frequency of assessment
Annually
Quarterly
Annually
Annually
Time horizons covered
S,M,L
S,M,L
S,M
S,M
Description
The risk of loss to the Group from the failure of 
clients, customers or counterparties, including 
sovereigns, to fully honour their obligations to 
the Group, including the whole and timely 
payment of principal, interest, collateral and 
other receivables.
The risk of loss arising from potential adverse 
changes in the value of the Group’s assets and 
liabilities from fluctuation in market variables 
including, but not limited to, interest rates, 
foreign exchange, equity prices, commodity 
prices, credit spreads, implied volatilities and 
asset correlations.
Treasury and capital risks are impacted by 
climate-related risks, primarily in a second 
order manner and include liquidity risk, capital 
risk and interest rate risk in the banking book.
The risk of loss to the Group from inadequate 
or failed processes or systems, human factors 
or due to external events (for example, 
extreme weather events) where the root cause 
is not due to credit or market.
Risk Identification
Identified as part of sovereign, portfolio and 
obligor credit annual reviews.
Identified by assessing climate-related risk 
factors across asset classes, sectors and 
geographies, and aggregating market risk 
exposures from climate-related risks.
Identified through risk assessment activity 
across certain industries and asset classes to 
analyse and assess exposures which may be 
impacted by climate-related risks.
Confirmed operational risks associated with 
climate change are included in the Bank’s 
Operational Risk Taxonomy. Climate risk 
included within the Strategic Risk Assessment 
process.
Risk Measurement
At Group level measured vis scenario analysis 
and stress testing. 
At counterparty level measured using a Credit 
Risk Materiality Matrix completed for obligor/
obligor groups with elevated exposure to 
climate change risk. Retail portfolios are 
monitored through regular reporting of climate 
metrics and are assessed against mandate 
triggers where appropriate.
Measured by using adverse multi-asset stress 
scenarios applied to individual risk factors 
reflecting climate change risks across sectors, 
countries and regions.
Measured as part of stress testing and key risk 
indicator monitoring.
Established reporting on internal and external 
climate-related risk events to the Operational 
Risk Committee. Risk tolerances for premises 
and resilience risks are reviewed so these 
adequately capture climate-related risk drivers.
Example
A client operating in a carbon intensive sector 
which does not have an adaptation plan to 
transition to a low-carbon economy and 
becomes subject to high carbon tax payment 
that negatively affects its cash flow. 
Climate change may lead to market risk 
through a disorderly transition to a low-carbon 
economy or via physical climate events and 
shifts in supply and demand for financial 
instruments, which may then impact market 
prices for susceptible sectors or countries.
Adverse market movements resulting from 
transition risks such as legislative change, or 
from Government fiscal responses to sudden 
physical climate change events may impact the 
Fair Value of the bank’s investments such as 
those in the Liquid Asset Portfolio. Additionally 
longer term climate change risks may 
adversely impact the bank’s future revenue 
through customer behaviour, balance sheet 
or strategy changes over the longer term in 
response to climate change risk factors.
An extreme weather event occurs which 
impacts locations and sites where the Group 
operates could also prevent employees from 
accessing the premises, and/or results in a data 
centre failing.
Risk management continued
Barclays PLC 
home.barclays/annualreport
34
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Risk management continued
Credit risk
Definition
The risk of loss to the Group from the failure of clients, 
customers or counterparties, including sovereigns, 
to fully honour their obligations to the Group, including 
the whole and timely payment of principal, interest, 
collateral and other receivables.
Climate risk identification
Risk identification is driven by assessing sectors’ 
susceptibility to climate risk. Sectors are categorised 
into elevated, moderate and low risk. These sectors 
have been identified through the analysis of Barclays 
Industrial Classifications by portfolio, informed by 
results of scenario analysis exercises (see Scenario 
analysis section on pages 23-29). 
To assist determining the level of the potential credit 
risk arising from climate change for Sovereigns with 
material exposure, Risk Factors are reviewed, 
minimum annually.
Across corporate and industrial sectors, elevated risk 
sectors are those with high exposure to both physical 
and transition risks of climate change. These are 
defined in the Climate Change Financial Risk and 
Operational Risk Policy and apply across the Group. 
This assessment is updated on an annual basis. 
Each climate-related risk in elevated sectors is 
assessed by risk drivers and impacts. Risk drivers and 
impacts were designed internally and are based on 
rating agencies’ climate change assessments, 
recommendations of the TCFD and our involvement 
in UNEP FI’s TCFD Banking Pilot Project Phase II.
Elevated risk sector
Drivers of risk
Aviation
More stringent air emission and carbon regulations, requiring high levels 
of capital investment and Research & Development (R&D) expenditure. 
Automotive
Policy pressure to cut emissions to meet regional emission 
requirements, requiring high levels of capital investment and R&D 
expenditure. Phase out of fossil fuel vehicles and introduction of low 
emission zones in city centres.
Cement
Being one of the hard to abate sectors, policy pressure to cut emissions 
requires high levels of capital investment and R&D expenditure.
Coal Mining and Coal Terminals†
Reduction in demand of thermal coal, as utilities transition away from 
fossil fuel. More stringent air emissions, resulting in higher levels of 
capital investment.
Chemicals
Increasing environmental regulation, including carbon regulations. The 
increasing efforts to eliminate single-use plastics and improve recycling 
to prevent marine pollution could also impact demand for products 
used in plastic manufacture.
Mining‡ (incl. diversified miners)
Rising costs as a result of tighter environmental regulations and 
increasing water stress.
Oil & Gas
Policy pressure to cut emissions, exposure to carbon taxes and overall 
increasing environmental regulation of operations and restrictions on 
access to new resources. Over time, falling demand for fossil fuels.
Power Utilities
Policy pressure to cut emissions, leading to increased capital 
expenditure costs, plus potential exposure to carbon taxes.
Agriculture
Evolving taxation on emissions may impact production methods, supply 
chain and farm viability. Reduced demand for meat and dairy as a 
consequence of shifts in consumer behaviour. Volatile weather 
conditions and extreme weather events may impact farm credit quality.
Shipping
Policy pressure to cut emissions, requiring higher levels of capital 
investment.
Steel
Being an energy-intensive sector, the sector is exposed to the policy 
pressure to cut emissions and evolving air pollution regulation.
Road Haulage
Policy pressure to cut emissions, requiring high levels of capital 
investment.
Elevated risk exposure breakdown (2021) as percentage of total loans & advances and loan commitments
£m
324
45
236
927
1,026
5,043
5,568
2,049
4,308
1,470
2,933
5,663
12,732
7%
1,408
2,803
Agriculture
Automotive
Aviation
Cement
Chemicals
Coal mining and Coal Terminals†
Mining‡ (incl. diversiĤed miners)
Oil & Gas – Services
Oil & Gas – Downstream
Oil & Gas – Midstream
Oil & Gas – Upstream
Power Utilities
Road Haulage
Shipping
Steel
Note
Elevated risk exposure as % of Total Loans & Advances and Loan Commitments. Total Loans & Advances and Loan Commitments 
amount to £707,162m.
† Coal Mining and Coal Terminals relates to one client predominantly engaged in metallurgical coal mining.
‡ Diversified miners with minority interests in thermal coal mining are included in this category.
Barclays PLC 
home.barclays/annualreport
35
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Risk management continued
Whilst UK Mortgages was not initially identified as an 
elevated risk sector within the Group Climate Change 
Financial Risk and Operational Risk Policy in 2021, 
Barclays Bank UK have internally classified the portfolio 
as having elevated risk.
This was informed by scenario analysis exercises 
indicating that the portfolio was exposed to both the 
physical and transition risks of climate change. 
Climate risk assessment 
Corporate Risk Assessment 
In 2019, a Credit Risk Materiality Matrix for climate 
change, known as a ‘Credit Climate Lens’, was 
developed to identify and assess how climate change 
may impact the Group’s wholesale credit risk 
exposures, against physical and transition risks. 
The Credit Climate Lens review is completed for 
wholesale clients operating in elevated risk sectors with 
material exposure of more than £5m. It is completed 
by either Banking or Credit Risk teams across all 
Barclays entities. 
The Lens consists of a set of 20 questions, grouped 
into themes, that are used to assess the impact of 
physical and transition risk of the counterparty. 
Illustrative questions are shown below. 
Credit Climate Lens sample questions
Risk
Focus area
Sample question
Physical
Acute: Frequency and intensity 
of extreme weather events
What is the exposure of operations and supporting 
assets to direct damage from extreme weather 
events?
Reducing availability of financial 
protection/insurance
What is the severity of the potential lack of insurance 
covering business interruptions caused by extreme 
weather events?
Transition
Regulatory, policy and 
supervisory change
Does the company have an adaptation plan in place?
Technology change
What is the likelihood of accelerating contingent 
liabilities, with alternative technologies displacing 
existing operations and supporting assets?
Each Lens question has a threshold assigned to it that 
corresponds to a rating of Low, Moderate or High risk. 
These are aggregated to provide an overall rating for 
the client with rationale for the assigned rating, and 
comments on both physical and transition risks. 
In 2021 a Climate Lens review at annual review, 
origination or other purpose facility was carried out for 
240 transactions (2020: 415) in Barclays International. 
In Barclays UK, 22 clients in elevated risk sectors have 
been assessed by Relationship Teams using the Credit 
Climate Lens. In 2021 our review has become more 
focused with only High and Medium risk submissions 
being referred to the Climate Risk team hence the 
decrease in numbers compared to last year.
Non-Corporate Risk Assessment 
To support our scenario analysis modelling, in 2021 
we developed risk factor assessments for 
Municipalities, Financial Institutions and Non-Bank 
Financial Institutions, building on initial work to develop 
our Sovereign approach. Each of these portfolios uses a 
risk matrix approach across tailored physical, transition 
and connected risk factors. These factors include, for 
example, the proportion of institution’s exposure to 
sectors exposed to climate risk, reputation risk scores 
from climate-related issues. 
In addition to the risk assessment completed for these 
areas, scenario analysis and stress testing are used as 
primary tools to support climate risk assessment and 
the overall resilience of Barclays’ strategy. For more 
information on stress testing, please see the Scenario 
Analysis section in this TCFD Report on pages 23-30 
and our whitepaper at http://home.barclays/content/
home-barclays/en/home/sustainability/addressing-
climate-change/reducing-our-financed-emissions/
bluetrack. 
Sovereign Risk Assessment 
Our assessment of climate risk for sovereigns includes 
a risk factors matrix incorporating physical, transition 
and connected risk factors and is part of our ongoing 
risk identification as part of the CCFOR Policy.
A range of indicators are used to assess a sovereign’s 
ability and capacity to respond to climate-related 
challenges, including seven Transition Risk factors, 
three Physical Risk factors and three Economic & Fiscal 
Strength factors. A number of external metrics have 
also been utilised, including the University of Notre 
Dame’s Global Adaptation Index and Climate Change 
Performance Index – Climate Policy. These factors are 
then applied to all countries Barclays has exposure to. 
Sovereigns that are most impacted to these factors are 
monitored on an ongoing basis. 
Climate risk management 
On an annual basis, where an overall Credit Climate Lens 
rating for a client is assessed as Medium or High, clients 
are referred to the Climate Risk team. The team 
conducts enhanced due diligence (EDD)*. Following 
their analysis, the Climate Risk team provides 
recommendations and guidance on how to proceed, 
addressing any issues identified during the EDD process 
and the results of EDD are factored into credit decisions. 
Information and insights gained from the EDD and 
Credit Climate Lens rating process also inform portfolio 
review meetings, which itself forms part of the overall 
risk appetite control framework (see below for detail).
A Climate Risk Dashboard is also presented to Financial 
and Operational Risk Management Committees and 
then on to BRC on a quarterly basis, allowing senior 
management to understand where concentrations 
are located and to monitor trends across both sectors 
and regions.
Portfolio Reviews and Mandate & Scale
Mandate & Scale Exposure Controls are a portfolio 
risk management tool and form part of the overall 
risk appetite control framework to review and control 
business activities, checking they are within Barclays’ 
mandate (i.e. aligned with expectations), and are of an 
appropriate scale (relative to the risk and reward of the 
underlying activities). Limits and triggers are put in place 
to avoid concentrations that may lead to unexpected 
losses detrimental to the stability of the relevant 
business or the Group. They take the broader 
*Note that this is a separate EDD process to that which is 
undertaken to assess environmental and social risks under the 
Reputational Risk framework (covered on pgs 40-41).
Barclays PLC 
home.barclays/annualreport
36
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Risk management continued
economic outlook, wider Group strategy, and risk/ 
return considerations into account and are set for a 
number of sectors and products. 
As a part of the bank’s general approach to portfolio 
management, Barclays considers macro economic and 
other drivers and events which may impact on certain 
sectors or geographies. This includes impacts on the 
identified climate elevated risk sectors and may lead to 
action for specific sectors or geographies. For example, 
in the oil & gas sector, we have considered longer-term 
impacts from climate transition and physical risks into 
our assessments and approach to the sector. In 
keeping with our overall aim to maintain a portfolio with 
a high credit quality, we take a number of considerations 
into account for our oil & gas portfolio – including 
location of assets, the economic profile (profitability) of 
assets, geopolitical risks, size and resilience of 
counterparties, and liquidity considerations. 
Environmental and climate risks have been integrated 
into Mandate & Scale annual credit portfolio reviews for 
elevated risk sectors since 2020.
Physical, transition and connected risks arising from 
climate change are considered as part of the wider risk 
management decision process to account for the 
potential credit risk consequences of climate change 
on affected portfolios. In 2021, the proposed scope of 
the climate risk input into the Mandate & Scale credit 
portfolio reviews was further enhanced to reflect the 
evolving understanding on low-carbon transition 
pathways for the sectors and key learnings from climate 
scenario analysis. 
In 2021 Barclays Bank UK introduced a high flood risk 
mandate to monitor the percentage of properties 
(stock) in high flood risk areas.
Market risk
Definition
The risk of loss arising from potential adverse changes 
in the value of the Group’s assets and liabilities from 
fluctuation in market variables including, but not limited 
to, interest rates, foreign exchange, equity prices, 
commodity prices, credit spreads, implied volatilities 
and asset correlations. 
Climate risk identification 
Climate change may lead to Market risk through a 
disorderly transition to a low-carbon economy or via 
physical climate events and shifts in supply and demand 
for financial instruments, which may then impact 
market prices for susceptible sectors or countries. 
Climate-related risks are determined at a Group level 
and used in the Market risk identification process. 
The table below outlines the climate-related risks, 
transition and physical, considered for all market risks 
under each asset class.
Climate risk assessment 
Market risk arising from climate change is measured 
by applying a range of stress scenarios, that stress the 
core risks susceptible to climate change over long and 
short-term horizons to individual risk factors. 
A Climate Internal Stress Test (Climate-IST) has been 
run in 2020 to further enhance understanding of 
climate risks. Market Risk has performed an 
assessment of the impact of a disorderly transition to a 
low-carbon economy on the market risk portfolios 
across Barclays Group.
In addition to the main Markets portfolios, Cross 
Markets and Commodities portfolios were also 
included. This risk assessment was enabled by 
enhancements in system technology allowing the 
exploration of Climate Change impact on less-climate 
risk exposed sectors. 
In 2021, Market Risk continued to run such Climate-IST 
scenarios every quarter, and further enhanced the 
existing sector/country taxonomy to reflect the climate 
risk sensitivity. Moreover, although Market Risk was out 
of scope of the 2021 Bank of England Climate Biennial 
Exploratory Scenario (CBES), the existing Market Risk 
scenario analysis has been more closely aligned to the 
CBES scenarios.
The table below outlines the climate-related risks, 
transition and physical, considered for all market risks 
under each asset class.
Asset class 
Physical risk 
Transition risk 
Country/region impact
Sector impact
Sector impact
Traded credit
Securitised 
products
Equities
Macro 
(FX, rates, 
commodities)
 
■Countries most susceptible 
to climate changes
 
■Sectors reliant on stable 
weather conditions and power/
water supply (e.g. agriculture, 
soft commodities, tourism, 
mining, manufacturing, 
transportation)
 
■Financial protection – insurance 
against weather events 
 
■Carbon-intensive sectors:
–	 primary producers (e.g. coal miner, oil & gas)
–	 consumers (e.g. petrochemicals, transport)
–	 supply chain (e.g. auto, retailer)
 
■Additional cost to meet new regulatory requirements, financial 
penalties, carbon taxes, green energy subsidies
 
■Increased capex/cost for primary producers and consumers due to: 
–	 technological/regulatory-driven shifts in consumer demand
–	 tightening efficiency/emissions
 
■Increases in cost, impaired quality of goods and speed of delivery due 
to weaknesses within the supply chain, need for alternative suppliers/
products
Barclays PLC 
home.barclays/annualreport
37
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Risk management continued
Market Risk Climate Scenario Narrative
 
■The scenario is designed to explore a disorderly transition to a low-carbon economy until 2050, assuming 
insufficient progress in climate policy changes until 2030
 
■In 2030, the climate policy changes are put in place at speed in order to meet the global climate targets by 
2050 which causes global macroeconomic shock and adverse market reaction in 2030, followed by 
markets recovery in 2031 (no other risk-off episodes until 2050):
–	 severe and prolonged global recession, elevated risk premium, rise in unemployment and borrowing 
cost, sharp drop in global demand and in economic activity, housing market slump
–	 supply disruptions alongside currency weakness and trade war causes sharp increase in inflation. 
Central Banks attempt to contain rising prices by hiking the Bank Rate by several percentage points. 
This causes the usual “safe-havens” such as Treasuries, Gilts or Bonds to sell off along with Equity and 
Credit markets
–	 the scenario is meant to test the bank’s ability to absorb a large shock by combining Transition and 
Physical risks.
Stress losses arising from this scenario measure and 
aggregate climate-related risks, and are calculated 
quarterly.
Climate risk management 
The pattern of stress losses arising from the stress 
scenario is used to estimate and set ongoing limits, 
consistent with the Board-approved maximum stress 
loss capacity for Market risk, under which Barclays 
monitors and controls Market risk arising from climate 
change. These limits are reviewed on an annual basis 
and must include consideration of potential portfolio 
impacts arising from climate-related risks.
Furthermore, climate-related Market risk is managed 
through ongoing monitoring that is reported through 
the existing risk committee structures so that key risk 
indicators are monitored and escalated as required.
Treasury and capital risk (TCR)
Definition
This comprises: 
Capital risk: the risk that the Group has an insufficient 
level or composition of capital to support its normal 
business activities and to meet its regulatory capital 
requirements under normal operating environments 
or stressed conditions (both actual and as defined for 
internal planning or regulatory testing purposes). This 
also includes the risk from the Group’s pension plans
Liquidity risk: the risk that the Group is unable to meet 
its contractual or contingent obligations or that it 
does not have the appropriate amount, tenor and 
composition of funding and liquidity to support 
its assets. 
Interest rate risk in the banking book (IRRBB): the risk 
that the Group is exposed to capital or income volatility 
because of a mismatch between the interest rate 
exposures of its (non-traded) assets and liabilities. 
Climate risk identification and assessment 
The TCR function has focused on building awareness of 
how the areas within our risk oversight may be 
impacted by physical, transition and connected risks, 
and calibration of key indicators for regular reporting 
and monitoring. The function has continued to build 
upon our understanding of climate risks, including 
through Barclays’ participation in the 2021 CBES and 
adding of climate risk elements to the IST 2021. 
Analysis to date highlights the following: 
Capital risk: 
 
■Barclays’ capital position is indirectly subject to 
climate risk through Group-wide exposures across 
all risk types. The TCR function oversees the bank’s 
capital management activities and planning, and will 
use the output of Group-wide climate stress tests 
to inform our understanding of how capital 
management may be impacted.
Liquidity risk: 
 
■Barclays proactively reviews its approach to 
managing funding and liquidity risks that may arise 
as a result of certain physical risks such as extreme 
weather events, or transition risks such as a move to 
a low-carbon economy. A risk assessment has been 
performed during 2021 to explore the potential 
vulnerabilities to certain industries and asset classes 
that may be subject to a lack of available liquidity 
under a climate stress scenario.
Interest rate risk in the banking book 
and Pension risk: 
 
■Fair value positions such as those within the Liquid 
Asset Buffer are exposed to general market 
conditions which could deteriorate under longer 
term climate stress. Physical or transition risks may 
lead to government fiscal responses that would 
impact market volatility. Our long-term investment 
strategy may be subject to change in light of these 
climate pressures, therefore we completed an 
assessment focusing on the impact of potential 
credit downgrades of current investments in 
different climate change scenarios, on their eligibility 
in the Liquid Asset Buffer. We also enhanced stress 
calculations with additional stress applied on 
Sovereigns, Supranationals and Agencies (SSA) 
issuers that are particularly vulnerable to climate 
change. 
 
■Pension exposures are subject to climate stresses 
impacting market conditions. Pension holdings are 
primarily affected by interest rates, inflation and 
credit spreads which may be impacted by longer 
term climate change effects. To identify key areas 
of focus pension scheme assets have been 
categorised based on their country and industry risk 
through the lens of climate change.
 
■Principal Investments (PI) – equity positions held by 
Barclays – are most likely to be impacted by stresses 
to energy markets and carbon transition changes. 
The future investment strategy of the team and 
long-term revenue of these investments may be 
influenced by changing climate and legislative 
conditions. In line with Barclays’ strategy PI has 
continued to increase exposure to new initiatives 
and companies that meet ESG criteria and 
contribute to a smoother transition to a low-carbon 
economy. At the same time the divestment of 
legacy natural resource investments has 
accelerated and total exposure to the Oil & Gas 
sector has significantly decreased.
Barclays PLC 
home.barclays/annualreport
38
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Risk management continued
 
■Accrual Banking Book Net Interest Income may be 
moderately impacted by climate change. In addition 
to general interest rate movements, transition risks 
such as future changes to legislation, commitments 
to meeting carbon targets or reputational 
considerations may impact future deposit levels, 
pricing and longer-term interest rate risk 
management strategies. There may also be impacts 
from physical risks such as flooding or drought 
potentially impacting the composition and 
performance of our asset portfolios including asset 
prepayment rates, new volumes, pricing and interest 
rate risk management of those portfolios. In 2021, 
we completed an assessment focusing on the 
economic impact of potential forced unwind of 
structural hedges on the deposit base as a result of 
significant outflows triggered by concerns about 
Barclays’ climate change credentials.
Climate risk management 
TCR is in the formative stages of understanding, 
identifying and measuring climate risk, therefore the 
incorporation of climate risk into the TCR risk limit 
framework is an evolving process and does not have a 
mature, systematic approach. TCR will continue to 
undertake annual reviews to identify exposures in our 
oversight that are impacted by physical, transition and 
connected risks arising from climate change. This will 
inform the setting of relevant key indicators and risk 
limits, which will be overseen by the Treasury and 
Capital Risk Committee on a quarterly basis.
Barclays’ assessment of capital requirements factors in 
climate considerations as part of Barclays annual ICAAP 
submission.
Operational risk 
Definition
The risk of loss to the Group from inadequate or failed 
processes or systems, human factors or due to external 
events (for example, extreme weather events) where 
the root cause is not due to credit or market risks. 
Climate risk identification 
From a climate risk perspective, Barclays is exposed 
to climate change risks in its operations, either directly 
or via the operations of its suppliers. This exposure is 
predominantly related to physical risks such as extreme 
weather events (e.g. cyclones, hurricanes and floods), 
along with longer-term changes in weather patterns 
(e.g. increased mean temperatures, sea levels, changing 
rain patterns, water stress/scarcity or drought 
conditions).
The Operational Risk Framework includes risks that are 
associated with Climate Change as well as the activities 
required to identify, measure and manage these risks as 
part of the operational risk profile. Operational Risk 
maintains a taxonomy of operational risks on behalf of 
the Group, which includes the operational risks across 
Principal Risks (e.g. Conduct risk, Legal risk, Model risk) 
as well as operational failures associated with the 
financial Principal Risks (Credit, Market, Treasury and 
Capital). The Operational Risk Taxonomy is managed 
and governed in accordance with the Operational Risk 
Taxonomy Standard that forms part of the Operational 
Risk Framework. This framework is reviewed and 
updated, where appropriate, on an annual basis. As 
physical risk events related to extreme weather events 
could impact Barclays’ operational capabilities, climate 
change is already integrated into the Operational Risk 
Framework, with relevant existing risks being in scope 
of climate change. The risks categories most likely to 
be impacted by physical risks are Premises risk and 
Operational Recovery Planning:
 
■Premises risk ensures that operational risk 
requirements are understood, monitored and 
mitigated appropriately, and are managed to ensure 
compliance with relevant legal and regulatory 
requirements, including any required authorisations, 
permissions and licenses. Premises risk is managed 
under the Group Property Policy and Standards, 
which outline Barclays’ approach to addressing 
environmental risks with respect to the availability of 
operational premises. This Policy defines a low 
tolerance threshold for premises unavailability which 
covers the risk of the physical impacts of climate 
change, and aims to ensure that Barclays’ premises 
do not become unavailable and/or do not affect at 
least one Barclays product/service for a sustained 
period of time. Additionally, any potential strategic 
site’s exposure to extreme weather events is 
considered.
 
■Operational Recovery Planning ensures that 
Barclays is able to recover business services. 
Operational Recovery Planning determines business 
requirements in maintaining services and 
responding to business disruption, which could be 
caused by climate change. Barclays maintains and 
annually reviews global operational recovery plans 
and capabilities. Barclays has adopted a non-cause/ 
non-scenario scalable operational recovery planning 
approach, with capabilities and infrastructure which 
are designed to mitigate business disruption 
without specific consideration to climate change. 
Climate risk assessment 
Operational Risk continues to identify, manage and 
measure climate risk as part of the existing operational 
risk profile through its business as usual activities. 
These activities include working with Premises and 
Operational Recovery Planning Horizontal Owners to 
identify and respond to any new emerging climate risk 
related impacts or regulatory requirements, and 
consideration of changes to approach or taxonomy in 
line with regulatory requirements. We continue to 
explore different approaches to provide a quantification 
assessment, albeit challenges for quantification relating 
to the lack of appropriately granular, business-relevant 
data and tools remain. Quantifying operational risk 
through existing structured scenarios would allow us to 
better examine and size the potential incremental 
impact arising from climate risks. However, the 
challenge of determining scenarios that are business 
orientated, sourcing available and relevant information 
to support the effort, and connecting the given 
scenario to the idiosyncrasies of operational risk will 
require further consideration. 
Additionally, Barclays has a set of structured scenarios 
at Group level, for which Operational Risk coordinates 
the process. These scenarios map to the operational 
risk and conduct risk taxonomies and cover a range of 
risks where climate implications could be an 
incremental factor. 
Climate risk management 
The Group Property Standard outlines Barclays’ 
approach to addressing environmental risks with 
respect to the availability of operational premises. 
Additionally, exposure to extreme weather events is 
considered during the design or refurbishment of new 
and existing strategic sites. 
Barclays PLC 
home.barclays/annualreport
39
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

The Operational Recovery Planning requirements 
outline Barclays’ requirements to anticipate, prevent, 
adapt, respond to, recover and learn from internal or 
external disruption. Our focus is on continuing to deliver 
important business services to customers and clients, 
and minimise any impact on the wider financial system, 
in the event of operational disruption. The Operational 
Recovery Planning risk from climate change is expected 
to manifest through premises and supplier risk in the 
first instance, and if this leads to operational disruption, 
our operational recovery planning framework would 
help mitigate the impacts through invocation of crisis 
management, and response and recovery plans. Our 
approach to Operational Recovery Planning evolves in 
response to the changing threat landscape, and this will 
include consideration of climate change and its 
associated impacts. 
Barclays deploys and validates appropriate recovery 
strategies for its critical processes, including the ability 
to transfer processing to alternative locations or 
premises. For our third party service providers, 
Operational Recovery Planning requirements are 
articulated through our Supplier Control Obligations 
(SCOs). Each third party service provider is required to 
attest to their compliance with the SCOs on an annual 
basis and further assurance is undertaken on a 
risk-based approach.
Management, reporting and oversight is in place to 
monitor internal and external risk events that may be 
attributable to Climate Change. Operational Risk 
continues to identify, manage and measure Climate 
Change risks as part of the existing operational risk 
profile through business as usual activities. 
This includes working with Premises and Operational 
Recovery Planning Horizontal Owners to identify and 
respond to any new emerging Climate Change related 
impacts or regulatory requirements, and consideration 
of changes to approach or taxonomy in line with 
regulatory requirements.
Reputation risk 
Definition
A reduction of trust in the Group’s integrity and 
competence may reduce the attractiveness of the 
Group to stakeholders and could lead to negative 
publicity, loss of revenue, regulatory or legislative 
action, loss of existing and potential client business, 
reduced workforce morale and difficulties in recruiting 
talent. Ultimately it may destroy shareholder value. 
Barclays is linked to clients across a wide range of 
sectors and geographies, including those that have the 
potential to cause or contribute to significant adverse 
impacts on the climate.
We recognise that we have a responsibility to 
proactively identify and address the adverse impacts 
that we may be linked to through our provision of 
financial services to these clients. Our assessment of 
environmental and social risks not only helps safeguard 
our reputation, ensuring longevity of the business but 
also enhances our ability to serve our clients and 
support them in improving their own sustainability 
practices and disclosures.
Climate risk identification 
Environmental and social risks are governed and 
managed through our Enterprise Risk Management 
Framework (ERMF), setting our strategic approach for 
risk management by defining standards, objectives and 
responsibilities for all areas of Barclays. The ERMF is 
complemented by a number of other frameworks, 
policies and standards, all of which are aligned to 
individual Principal Risks.
Position and Policy statements on sensitive 
sectors
Climate  
Change
Forestry and 
Agricultural 
Commodities
 
■Coal mining
 
■Coal power
 
■Oil sands
 
■Fracking
 
■Arctic oil  
and gas
 
■Forestry, pulp  
and paper
 
■Palm oil
 
■Soy
https://home.barclays/sustainability/
esg-resource-hub/statements-and-policy-
positions/
Climate risk assessment 
Our assessment of environmental and social risks not 
only helps safeguard our reputation, ensuring longevity 
of the business but also enhances our ability to serve 
our clients and support them in improving their own 
sustainability practices and disclosures.
Our Climate Change Statement sets out our approach 
to managing the impact of our climate-related 
activities.  We also have a Forestry & Agricultural 
Commodities Statement which has relevance for 
climate change. We have developed internal standards 
to reflect these positions in more detail. These 
standards sit under the management of Reputation 
Risk in the ERMF.
These standards determine our approach to climate 
change and relevant sensitive sectors and are 
considered  as part of our existing transaction 
origination, review and approval process.
Enhanced Due Diligence
We have an enhanced due diligence approach for 
certain clients, including clients operating in energy 
sub-sectors covered by our Climate Change 
Statement. This includes all clients involved in thermal 
coal, oil sands, and hydraulic fracturing (commonly 
referred to as fracking). 
All in-scope clients in these sub-sectors must be 
assessed annually via a detailed due diligence 
questionnaire, which is used to evaluate their 
performance on a range of environmental and social 
issues, and may be supplemented by a review of client 
policies/procedures, further client engagement and 
adverse media checks as appropriate This annual 
review generates an Environmental & Social Impact 
(ESI) risk rating (low, medium, high), which in turn 
determines whether further review and client 
engagement may be required throughout the year. 
Risk management continued
Barclays PLC 
home.barclays/annualreport
40
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

For clients with a medium or high ESI rating further risk 
assessment is undertaken prior to execution of 
individual transactions with those clients. This 
enhanced due diligence approach and the 
consideration of wider environmental and social risks 
has been extended to clients in-scope of our Forestry & 
Agricultural Commodities standard.
For clients in-scope of our other standards, in particular 
the Forestry & Agricultural Commodities standard, we 
take a similar approach and work with clients on areas 
that may pose a heightened environmental and social 
risk before deciding whether to proceed or continue a 
relationship. This year we augmented our due diligence 
approach for these clients by developing a detailed due 
diligence questionnaire against which we review these 
clients on an annual basis.
Clients engaged in forestry, palm oil or soy production 
are assessed for compliance with the requirements in 
our Forestry and Agricultural Commodities Statement 
and a number of other environmental and social issues 
– such as their zero deforestation commitments, 
sustainability certification coverage, and their 
adherence to the principles of Free, Prior and Informed 
Consent (FPIC) – to better understand how they are 
managing their material environmental and social 
impacts.
In recognition of the growing concerns around the 
impact of soy and beef supply chains on deforestation 
and land conservation in South America, this year we 
have supplemented our enhanced due diligence 
reviews of relevant agribusiness clients to include client 
engagement calls specifically focused on this topic.
We have used these calls as an opportunity to gain a 
more detailed understanding of the risks and 
challenges in the region and better understand these 
clients’ ongoing supplier traceability and monitoring 
activities. This engagement should allow us to better 
support these clients in addressing their supply chain 
deforestation risks and to encourage the improvement 
of these activities over time where together we have 
identified opportunities to do so.
Climate risk management 
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 for 
consideration and, in relation to execution of a 
transaction with those clients, a decision on whether to 
proceed. Should the front office business team, the 
Sustainability and ESG team and/or Climate Risk team 
believe the issues are sufficiently material, these would 
be escalated to the CTRC or Group Reputation Risk 
Committee, as appropriate, for more senior 
consideration and decision. Both of these Committees 
include representation from the Group Executive 
Committee.
CTRC may make the following determinations:
a) approve the transaction or relationship
b) reject the transaction or relationship
c) approve the transaction or relationship, subject to 
prescribed modifications, or
d) escalate the review of the transaction or relationship 
to the Barclays Group CEO.
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 that we have identified as part of our enhanced 
due diligence process. We have used these calls as an 
opportunity to gain a more detailed understanding of 
the risks and challenges that the client is facing and to 
better understand any path to transition they may have.
We are continuing to work with clients in key sectors, 
believing it is better to be engaging with clients in 
relation to the transition, rather than simply walking 
away from financing for individual companies. We 
recognise there may be companies or particular 
activities that cannot transition over time, and in such 
cases we believe those clients will find it increasingly 
difficult to access markets for financing, including 
through Barclays. 
Risk management continued
Barclays PLC 
home.barclays/annualreport
41
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

The metrics and targets used to assess 
and manage relevant climate-related risks 
and opportunities
Metrics and targets
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis
Barclays PLC 
home.barclays/annualreport
42
 

Barclays PLC Climate-related Financial Disclosures 2021

Metrics and targets
Recommendation
Our metrics/targets
Page No.
Our metrics used to assess climate-related 
risks and opportunities in line with our strategy 
and risk management process
1.	Operational Footprint
 
■Group Metrics
–	 Total GHG emissions by scope 1, 2 & 3 business travel (market and location based)
–	 Energy consumption
–	 GHG emissions intensity (tonnes of CO2e/full time employee/m2)
 
■Campus Metrics
–	 Onsite renewable sources
–	 Energy intensity 
–	 Water efficiency
–	 Waste diverted
45
2.	Reducing our financed emissions
 
■Energy absolute emissions MtCO2
 
■Power emissions intensity KgCO2/MWh
 
■Fuel mix – Energy (%)
 
■Fuel mix – Power (%)
 
■Breakdown of Energy CO2 emissions attributed to forms of financing
47, 48
3.	Financing the transition
 
■Green Financing £bn
 
■Green Financing facilitated £bn
 
■Investment in green innovation
49, 50
4.	Climate Risks
 
■Climate-related assets
 
■Elevated risk Sectors
51
5.	Capital markets financing
52
Our Scope 1, Scope 2 and Scope 3 greenhouse 
gas (GHG) emissions
 
■Total GHG emissions by scope 1, 2 & 3 business travel (market and location based)
 
■(Scope 3) Energy absolute carbon emissions MtCO2
 
■(Scope 3) Power carbon emissions intensity KgCO2/MWh
45, 48
Our performance against targets
1.	Operational footprint
2.	Aligning our portfolios and reducing financed emissions
3.	Financing the transition 
45, 48, 50
Barclays PLC 
home.barclays/annualreport
43
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

We have developed metrics and targets to track 
progress against our climate strategy. In developing our 
metrics and targets we continue to develop our 
methodology, including adding granularity and updating 
external client and industry data as these become 
available over time. These metrics and targets are used 
to measure and manage our climate-related risks and 
opportunities. We summarise progress against our 
existing set of targets aligned to our climate strategy: 
achieving net zero operations; reducing our financed 
emissions (as shown using our BlueTrack™  
methodology); and financing the transition.
Alignment to 2017 TCFD Annex  
Recommendations
Recognising the need for industry alignment on metrics 
and targets, we have sought to align our core indicators 
to the 2017 TCFD Annex recommendations.
Within our operational metrics and targets, page 45, we 
include scope 1 and scope 2 greenhouse gas emissions 
as well as our scope 3 business travel emissions, these 
have been calculated following the GHG Protocol 
guidelines. Efficiency ratios and historical trends are 
also disclosed. Our metrics include energy, water and 
waste as these are the most appropriate and applicable 
to our business. 
In our climate risk metrics, page 51, we disclose total 
loans and advances at amortised cost and total loan 
commitments of elevated climate risk sectors. This 
metric is used to assess the impact of transition and 
physical climate-related risks on our lending. The 
approach to defining elevated risk sectors is detailed in 
the Risk Management section on page 35. These 
metrics are broken down by industry sector as the most 
appropriate and relevant to our risk management 
approach.
We have provided the amount and percentage of 
carbon-related assets relative to total assets taking the 
definition of carbon-related assets from the 2021 
TCFD Annex.
The 2021 TCFD Annex Recommendations also include 
guidance on disclosing the extent to which our lending 
and financial activity is aligned with a well below 
2-degree scenario. Our BlueTrack™ dashboard 
currently measures our financed emissions in the 
Energy and Power sectors (details on how these 
metrics are calculated can be found at http://home.
barclays/content/home-barclays/en/home/
sustainability/addressing-climate-change/reducing-
our-financed-emissions/bluetrack). 
We have also set targets against these two metrics and 
will be extending the coverage of BlueTrack™ and 
setting targets for a number of high emitting sectors by 
2024.
We have disclosed the amount of lending and other 
financing connected with climate-related opportunities 
within our financing the transition section, pages 49-50.
Details of our climate-related remuneration 
components are included in the Governance section as 
they relate to executive management pay. Details can 
be found on page 8. 
A carbon price forms a key variable within our scenario 
analysis and details can be found on page 24. 
1.	Achieving net zero operations
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%Δ  of the electricity 
used across our global property portfolio coming from 
renewable sources. This transition to renewable 
sources of energy contributed to Barclays exceeding its 
target of 80% GHG emissions reduction for scope 1 
and scope 2 (market based) emissions by achieving an 
86% Δ reduction in 2021. Over the coming years, in 
addition to using green tariff1and energy attributes 
certificates2 to achieve our RE100 commitment, we aim 
to sign Power Purchase Agreements3 and increase 
on-site renewable energy generation. We intend to 
generate 10% of our key campuses total operational 
energy from on-site renewables by 2035. For example, 
we have installed a solar panel power plant in our Pune 
campus that has reduced our emissions by 80tCO2e 
from February to September 2021 and we are building a 
Sustainability Centre in our Glasgow campus that will 
provide self-generated solar energy for our Glasgow 
campus.
At the same time as continuing our transition to 
renewable electricity, we intend to decarbonise our 
global property portfolio by progressively eliminating 
the use of fossil fuels currently used to heat and cool 
our buildings. We will continue removing the use of 
natural gas in our buildings, replacing gas boilers with 
carbon-free heating technologies when feasible. We will 
also continue to embed circular economy principles to 
reduce waste in our buildings and support the 
regeneration of natural systems. 
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. The programme aims to 
improve our building management system (BMS) 
controls, including our use of air conditioning units and 
energy efficient technologies such as LED lighting, as 
well as our ability to adjust to changing occupancy 
requirements and weather conditions. To align with the 
UK Green Building Council net zero building pathway 
recommendations, we intend to achieve a 70% energy 
intensity reduction across our key campuses by 2035.
Metrics and targets continued
We have developed key metrics and targets  
to track progress against our climate strategy.
Note
1	 Green tariffs are programmes in regulated electricity markets 
offered by utilities that allow large commercial and industrial 
customers to buy bundled renewable electricity from a specific 
project through a special utility tariff rate.
2	 EAC is the official documentation to prove renewable energy 
consumption. Each EAC represents proof that 1 MWh of 
renewable energy has been produced and added to the grid. 
Global EAC standards for renewable claims are primarily 
Guarantees of Origin in Europe, RECs in North America and 
International RECs (I-RECs) in a growing number of countries in 
Asia, Africa, the Middle East and Latin America.
3	 A Power Purchase Agreement (PPA) for renewable electricity is 
generally defined as a contract for the purchase of power and 
associated renewable energy credits (RECs) from a specific 
renewable energy generator (the seller) to a purchaser of 
renewable electricity (the buyer).	
Δ 2021 data reproduced from the Barclays PLC Annual Report 
subject to independent Limited Assurance under ISAE(UK)3000 
and ISAE3410. Refer to the ESG resource hub for details: 
home.barclays/sustainability/esg-resource-hub/
Barclays PLC 
home.barclays/annualreport
44
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Metrics and targets continued
Δ 2021 data reproduced from the Barclays PLC Annual Report 
subject to independent Limited Assurance under ISAE(UK)3000 
and ISAE3410. Refer to the ESG resource hub for details: 
home.barclays/sustainability/esg-resource-hub/
Notes
1 	 	 Emission reductions and intensities have been reported using the market based methodology.
2 	 	 The reporting year for our GHG emissions is 1 October to 30 September. The methodology used for emissions calculation is the WRI/WBCSD Greenhouse Gas (GHG) Protocol. We have adopted the operational control approach on reporting boundaries. For more information, see the 
Barclays ESG Reporting Framework 2021 on our ESG Resource Hub.
3	
For 2021, we have applied the latest emission factors available at the time of reporting. We continuously review and update our performance data based on updated carbon emission factors, improvements in data quality and updates to estimates previously applied. We have 
recalculated this information from our previous 2020 reporting year. Where the recalculation of our performance using updated carbon emissions factors and improvements in data quality and estimates has resulted in a change of more than 5% we have represented these figures in 
the table above. In 2021, we conducted a review of our GHG emissions inventory for Scope 1 and Scope 2 to improve the transparency of our public emissions disclosure. Historically, Barclays have chosen to account for third party managed data centres under Scope 1 and Scope 2. 
Based on our review, and with due regard to the GHG Protocol Guidelines and Operational Control definitions, we have updated our GHG accounting policy and reallocated the emissions of third party managed data centres under Scope 3 ‘downstream leased assets’, which will be 
reported in future. This reallocation is reflective of our limited control over energy sources at third party managed data centres. We have therefore re-baselined our historic emissions for 2018 and updated our reported figures for subsequent years. The previously reported Scope 2 
(location based) emissions were: 2018 (203,100 tCO2e), 2019 (182,000 tCO2e) and 2020 (159,500 tCO2e). In addition, a correction to underlying fugitive consumption data was identified, which has resulted in an adjustment to 2018-2020 fugitives emissions. The previously 
reported Scope 1 emissions were: 2018 (25,900 tCO2e), 2019 (23,800 tCO2e) and 2020 (18,800 tCO2e).
Operational footprint dashboard
Total GHG emissions by scope (market based) 
’000 tonnes CO2e
GHG emissions intensity (market based)
tonnes CO2e / FTE
Total GHG emissions by scope (location based) 
’000 tonnes CO2e
Total energy use
GWh
Scope 1 and 2 (marked based) GHG emission 
reductions (against a 2018 baseline) 
Progress against Barclays’ commitment to RE100 
2.4∆
68.1
19.1
22.0∆
26.1
21.5
13.4∆
80.6
48.2
2021
2020
2019
Total
88.8
Total
174.9
Total
37.8∆
Scope 1
Scope 2
Scope 3
68.1
19.1
22.0∆
26.1
21.5
124.2∆
171.3
148.7
2.4∆
2021
2020
2019
Total
189.3
Total
265.5
Total
148.6∆
Scope 1
Scope 2
Scope 3
-86%
∆
Against a target of -80%  
by the end of 2021
2020: –73%
94%
∆
Against a target of 90% by the end of 2021  
and 100% by the end of 2030
2020: 79%
0.46∆
2.16
1.07
2021
2020
2019
553,048∆
654,990
598,037
2021
2020
2019
Campus sustainability measures
On-site renewable electricity generation
Energy intensity reduction (kWh/m2)  
(against a 2019 baseline)
Waste diverted
Improve water efficiency
0.1%
10%
Target 
by 2035
2021 
Progress
70%
Target 
by 2035
2021 
Progress
21%
90%
Target 
by 2035
2021 
Progress
46%
89%
recycled water used at our Pune campus
Barclays PLC 
home.barclays/annualreport
45
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Metrics and targets continued
Making our operations more environmentally 
sustainable
We continue to work to ensure our facilities consume 
fewer resources, maximise the reuse of our materials 
and improve indoor environmental quality.  
In 2021, we produced 4,014 tonnes of waste across our 
key sites; while this is a 76% reduction in comparison to 
2018; we recognise that we need to do more. The 
reduction in waste was largely driven by our new hybrid 
working model accelerated by the COVID-19 pandemic 
and the investment in our digital capabilities. For 
example, we reduced the volume of purchased paper by 
91% compared to 2018.
Our ambition is to achieve and maintain TRUE (Total 
Resource Use and Efficiency) zero waste certified 
projects across our key campuses by 2035, which 
means we must divert a minimum of 90% of solid, 
non-hazardous wastes from the environment, landfill, 
incineration (waste-to-energy) to recycling facilities or 
locations where the waste can be reused.
To support our waste reduction strategy, our Glasgow 
campus has already partnered with Soulriders to 
redistribute surplus food to local charities and started 
to replace single use items with reusable items and 
repurposed the onsite compost for our landscaping 
needs.
We continue to work to improve the efficiency of our 
water consumption across our key campuses by 
investing in water saving infrastructure. For example, 
Pune was our first campus to have a fully integrated 
rainwater harvesting system to store and repurpose 
50,000 litres of rainwater.
To support our efforts to design and operate 
sustainable buildings, we aim to follow sustainability 
best practices, including the US Green Building 
Council’s Leadership in Energy and Environmental 
Design (LEED) certification programme and 
international green building standards, such as Building 
Research Establishment Environmental Assessment 
Method (BREEAM), National Australian Built 
Environment Rating System (NABERS) and GreenMark. 
In 2021, 45% of our global property portfolio had green 
building certifications, and 35% of our buildings remain 
certified to ISO 14001, the international standard for 
designing and implementing an Environmental 
Management System (EMS). Our ambition is to roll out 
ISO 14001 certifications across our key campuses by 
2025.
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. We do this by leveraging digital 
technology where possible as an alternative to 
face-to-face meetings, adjusting our travel policy to 
promote low-carbon solutions and avoid non-essential 
business trips and using our booking and reporting 
platforms to improve colleagues’ awareness of their 
individual carbon footprint.
In 2021, total colleague air travel emissions were 1,797 
tCO2e, with a 97% reduction against a 2018 baseline, 
accelerated by travel restrictions arising from the 
COVID-19 pandemic. As we move to more normalised 
business travel levels after the pandemic, we recognise 
we may see an increase in travel emissions in future 
years. All emissions related to our business travel are 
offset.
Engaging our colleagues 
We want to engage our colleagues and help them 
upskill as we all transition to a low-carbon economy and 
try to lower their personal carbon footprint. We partner 
with a number of community programmes for 
colleagues to take part in, and raise awareness on global 
environmental campaigns such as World Environment 
Day and Earth Hour, as well as operating 11 employee-
led environmental networks globally. In 2021, we piloted 
a colleague app where users earn ‘green points’ for 
completing sustainable actions such as avoiding 
single-use plastic and switching off monitors when they 
are not being used. This resulted in more than 850 
employees in the UK taking more than 6,000 actions, 
helping to avoid  an estimated 15,000 kg CO2e.
Carbon offsetting
We purchase carbon offsets, under the VCS to 
compensate for any remaining emissions in our 
operations and business travel.
We conduct due diligence as part of our procurement 
of carbon offsets. We have invested in a portfolio of 
credits, under the VCS, that come from approved 
methodologies. In addition to internal reviews, we also 
undertake third-party review of the project portfolio 
from an independent voluntary carbon markets 
advisory firm, which is not directly involved in the 
sourcing process. All final projects must pass 
independent due diligence screening based on risk 
assessment in five key areas –  location, technology, 
additionality, environmental/social impacts and 
environmental/social benefits.
As part of our operational and business travel carbon 
offsetting strategy, we maintain support for nature-
based climate solutions. This includes the purchase of 
carbon credits from REDD+ avoided deforestation 
projects, as well as a project by Indigo which seeks to 
enhance soil carbon in agricultural land. We recognise 
the importance of ensuring the integrity of natural 
capital and we screen nature-based offsets against 
established methodologies and where possible, have 
additional environmental and social co-benefits.
We firmly support initiatives to enhance the integrity 
and quality of the voluntary carbon markets including 
the work of the Taskforce on Scaling Voluntary Carbon 
Markets.
ESG Data Hub
See the ESG Data Hub for further details on our annual 
operational greenhouse gas emissions since 2018, 
including our scope 1, scope 2 and scope 3 business 
travel location-based and market-based emissions. We 
further provide insights on our annual waste 
production, energy and water consumption and 
renewable electricity consumption by country. 
Further details relating to our operational footprint can 
be found at: home.barclays/sustainability/esg-
resource-hub/reporting-and-disclosures/ 
Barclays PLC 
home.barclays/annualreport
46
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

2.	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. 
In order to meet this ambition, we need to reduce the 
client emissions that we finance, not just for lending but 
for capital markets activities as well. To help us achieve 
that, we developed BlueTrack™1, our methodology for 
measuring financed emissions and tracking them at a 
portfolio level against the goals of the Paris Agreement. 
BlueTrack™ builds on and extends existing industry 
approaches to cover not only lending but also capital 
markets financing. We believe our approach to 
measuring financed emissions better reflects the 
breadth of our provision of financing for clients through 
our investment bank.
We started by setting targets for the Energy and Power 
sectors because they are responsible for up to 
three-quarters of all Greenhouse Gas (GHG) emissions 
globally. As a founding member of the Net-Zero 
Banking Alliance (NZBA), we intend to use science-
based decarbonisation scenarios to set targets for a 
number of high emitting sectors by 2024. 
When we developed BlueTrack™, we acknowledged it 
was a first generation methodology and we would 
continue to enhance and refine it.
In 2021, we continued to develop our methodology 
including adding granularity and updating external client 
and industry data as these become available over time. 
We have re-performed the 2020 year-end estimates (as 
reported in 2020) by enhancing those estimates with the 
improved data that became available during 2021.
On a net basis, these changes had no notable impact 
on our baseline data as reported. As our methodology 
evolves we will continue to review the impact on our 
reported baselines and we will re-perform estimates 
from time to time with available data.
There is no consistent industry-wide approach to 
measuring emissions and approaches continue to 
evolve. We are actively involved in industry-wide 
initiatives to build consensus on carbon accounting 
and portfolio alignment, for example through our 
membership of The Partnership for Carbon Accounting 
Financials (PCAF).
We continue to evolve our approach and welcome the 
continuing industry efforts to converge on a common 
standard.
Energy & 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 targets. This 
reflects year-on-year reductions in borrowing and 
capital markets volumes across the market to more 
normalised levels, as well as conscious changes to our 
lending portfolio, where we have re-evaluated credit risk 
limits in segments of the Energy sector which could be 
most adversely affected by climate change. In 2022, a 
post COVID-19 pandemic rebound of the markets may 
result in increased issuance volumes which in turn may 
reverse some of our progress achieved to date. However, 
we also expect to see further reduction in our clients’ 
emissions as they implement their transition plans. 
Our Power portfolio has seen an 8% net decrease in 
emissions intensity during 2021, reflecting changes in 
both our lending and capital markets activity. We have 
supported our Power clients in transitioning their 
business models: in 2021, across all sectors, we 
facilitated £29.8bn Δ of total green financing, up 70% 
from £17.6bn in 2020. This includes £2.5bn used to 
directly fund renewable power generation projects. This 
increase in green financing2 across the Power sector 
reflects the increased emphasis both issuers and 
investors are placing on accelerating the transition to a 
low-carbon economy, which is reflected in the 
reduction in emissions intensity of our financing.
While we have seen solid progress against our targets in 
2021, it is important to note that progress towards our 
targets will likely be volatile and non-linear. The 
transition to a low-carbon economy will be reflective of 
the specific pathways companies take. For some 
sectors progress can occur in the short term while for 
others, the technologies required to transition are not 
yet fully available meaning they are likely to transition at 
a later point in time.
Achieving our targets will largely depend on our clients’ 
progress on their individual transition pathways. Many of 
our clients have published their own transition plans and 
report on their progress; other clients have not yet 
made their transition plans public. We expect that, over 
time, more clients will publish plans and also that many 
of our clients will be able to accelerate their plans 
beyond what is known today. In the short term, we may 
experience significant decreases or increases in our 
metrics, partly due to the volatility of the mix and 
volume of capital markets financing (included in our 
metrics) which is generally beyond our control and due 
to the pace of our clients’ emission reductions.
We continue to focus on understanding our Power and 
Energy clients’ transition plans. There has been a 
notable acceleration in clients’ targets and climate 
commitments, particularly as they look to decarbonise 
their own operations (scope 1 and 2) with some clients 
also now including scope 3 emissions in their climate 
targets. In our Energy portfolio, approximately three 
quarters of our financing is with Energy producers that 
have published decarbonisation targets; over half of our 
financing is to clients that have committed to becoming 
net zero in their scope 1 and 2 carbon emissions by 
2050. We have also seen an increase in decarbonisation 
commitments from our Power utilities clients. As 
companies release their annual reported metrics for 
2021 in the coming months, we expect to see further 
details and evidence of their progress against their 
commitments, which will be reflected in our metric 
over time.
Metrics and targets continued
Notes
1	 Further information and a detailed methodology whitepaper are 
available online, see http://home.barclays/content/home-
barclays/en/home/sustainability/addressing-climate-change/
reducing-our-financed-emissions/bluetrack 
2	 Further details on our green financing can be found on pages 69 
to 72 of the Barclays PLC 2021 Annual Report.
Breakdown of energy emissions  
attributed to forms of financing
Attributed MtCO2
December 2020
8.7
32.1
17.8
17.9
34.6
22.6
December 2021
Capital 
markets 
Ĥnancing
Undrawn
Drawn*
*	 Includes credit risk exposures in addition to Loans and 
Advances such as the utilisation of certain off-balance 
sheet exposures.
The chart above shows the absolute financed 
emissions associated with our Energy portfolio 
as reported in BlueTrack, broken down into the 
financed carbon emissions associated with the 
major components of our financing portfolios: 
drawn balances, undrawn committed limits and 
capital markets financing.
Barclays PLC 
home.barclays/annualreport
47
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Metrics and targets continued
Our current estimate of our clients’ activity based on our disclosed methodology
BlueTrack™ financed emissions – Energy
Absolute emissions MtCO2
Fuel mix – Energy
%
100
80
60
40
20
0
2020 2021
2025
-15% by 2025
2030
2035
2040
IEA SDS Benchmark: OECD*
Portfolio target path
Barclays progress
December 2020: 
75.0 MtCO₂
December 2021: 
58.6 MtCO₂
-22% since 
December 2020
4
52
45
December 2021
2
55
43
December 2020
19
42
39
2021 Benchmark OECD**
Coal
Oil
Gas
BlueTrack™ financed emissions – Power
Emissions intensity KgCO2/MWh
Fuel mix – Power
%
350
300
250
200
150
100
50
0
-30% by 2025
-8% since
December 2020
2020
2025
2030
2035
2040
2021
December 2020: 
320.0 KgCO₂/MWh
December 2021: 
295.0 KgCO₂/MWh
IEA SDS Benchmark: OECD
Portfolio target path
Barclays progress
December 2021
1.5
32
19
21
27
December 2020
2021 Benchmark OECD**
1
19
30
17
32
18
1
31
22
27
Coal
Oil
Gas
Nuclear
Renewable
(inc. Hydro)
Notes
*	 iea.org/reports/world-energy-outlook-2019
**	The 2021 Benchmark OECD data provided is interpolated i.e. As the IEA 2019 SDS OECD report only provides data for certain time 
points, the years in between these time points are linearly interpolated to generate estimated values, including the value used for 2021.
■	 Barclays attempts to split our financed emissions by fuel type. Where individual 
counterparties operate across fuel types, our methodology weights our financing according 
to the estimated revenue that a counterparty earns from the respective fuel. On this basis, 
the proportion of Coal in the Energy sector continues to be low, with the percentage 
increase driven in part by the significant reduction across Oil and Gas.
■	 Important note: The IEA’s Sustainable Development Scenario (OECD) for [2021} benchmark 
is weighted by production. As such, due to the differences in weighting methodology a direct 
comparison between Barclays’ fuel mix and that of SDS Benchmark is not applicable.
■	 Note: Totals in Fuel mix may not be equal to 100% due to rounding.
Barclays PLC 
home.barclays/annualreport
48
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

3.	Financing the Transition
Our target to facilitate £100bn of green 
financing
We facilitated £29.8bnΔ of green financing in 2021, up 
70% from £17.6bn in 2020 and comprised of:
 
■labelled, ‘use of proceeds’ and business mix 
financing in environmental categories (£22.6bnΔ in 
2021), and
 
■sustainability-linked financing that incorporates 
environmental performance targets (£7.2bnΔ in 
2021).
Since 2018, a total of £62.2bnΔ has been facilitated 
across these categories, with significant momentum 
across our businesses, products and geographies.
Breaking down our green financing by product type, the 
largest product category was debt, accounting for 63% 
(2020: 70%) of the total. Loans and equity made up 
21% (2020: 21%) and 15% (2020: 9%) respectively, 
while the remaining 1% (2020: 0%) consisted of 
investments and contingent.
49% of our financing in 2021 was for clients in the UK 
and Europe (2020: 51%), while 43% was in the US 
(2020: 45%) and 8% in Asia and the rest of the world 
(2020: 4%). 
Facilitate £150bn of social, environmental and 
sustainability-linked financing
We facilitated £69.2bnΔ of social, environmental and 
sustainability-linked financing in 2021, up 14% from 
£60.9bn in 2020. 
Environmental financing
Our environmental financing consists of labelled, ‘use 
of proceeds’ and business mix financing in 
environmental categories. In 2021, it grew by 53% to 
£22.6bnΔ  versus £14.8bn in 2020 reflecting the strong 
increase in demand for environmental financing and our 
strategy to work with our clients and customers to help 
facilitate their transitions to a lower carbon economy. 
We helped the UK Government issue its £10bn green 
gilt and acted as lead manager on seven out of eight 
inaugural syndicated green bonds issued by European 
sovereigns since 20171.
Sustainability-linked financing 
In addition to dedicated ‘use of proceeds’ transactions 
where financing is allocated to specific eligible green, 
projects or assets, sustainability-linked bonds (SLBs) 
and sustainability-linked loans (SLLs) are forward 
looking, performance-based debt instruments issued 
with specific key performance indicators and 
sustainability performance targets at the level of an 
entire entity.
Our sustainability-linked financing totalled £7.2bnΔ  in 
2021, up 158% from £2.8bn in 2020. The SLB market 
grew significantly in 20212. Investors and issuers alike 
are using these instruments to embed their 
sustainability targets into financing commitments. 
The legal and regulatory landscape relating to 
sustainable financing, including the naming and 
categorisation of products as ‘green’, ‘social’, 
‘sustainability-linked’ and otherwise, is rapidly evolving 
and there are divergent approaches across jurisdictions. 
We continue to review and develop our approach to 
sustainable finance as this subject area matures.
For further details on Barclays Sustainable Finance 
Framework, see the ESG Resource Hub at: https://
home.barclays/sustainability/esg-resource-hub/
reporting-and-disclosures/
Sustainable Impact Capital
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, helping to 
accelerate our clients’ transition towards a low-carbon 
economy.
From the acceleration of innovative carbon-efficient .
technologies and supply chains to supporting the 
development of viable markets for carbon capture and 
sequestration, the Programme is seeking out and 
supporting clear, scalable propositions that deliver both 
environmental benefits and economic returns.
Through the Programme, we aim to fill growth stage 
funding gaps to help accelerate and scale catalytic and 
strategic solutions to environmental challenges
Metrics and targets continued
Notes
1	 Sourced via Bond Radar.
2	 Sourced via Dealogic.
Δ 2021 data reproduced from the Barclays PLC Annual Report 
subject to independent Limited Assurance under ISAE(UK)3000 
and ISAE3410. Refer to the ESG resource hub for details:  
home.barclays/sustainability/esg-resource-hub/
Sustainable Impact Capital Programme 
£m
175.0
30.0
24.0
2020 Progress
2021 Progress
Target by 2025
Achieved to date
£54m
Green bond investment portfolio 
size by year  
£bn
2.7
3.1
3.4
2021
2020
2019
9% increase in green bond portfolio in 
2021 against a target of £4bn over time
The Programme has made meaningful progress 
towards its five year trajectory to meet our target by 
building a portfolio of strategic investments which have 
a focus on reducing carbon footprints and accelerating 
the transition to a low-carbon economy. £54m of the 
£175m overall target has been deployed since 2020, 
with £30m invested in 2021, up 25% from 2020.
In 2022, the Programme will continue deploying capital 
to foster innovation to support Barclays’ net zero 
ambition.
Further examples of our green innovation financing can 
be found at: home.barclays/sustainability/our-position-
on-climate-change/accelerating-the-transition/
sustainable-impact-capital/
Green Bond Investment Portfolio
As an investor, we have continued to expand our ESG 
portfolio during 2021. Issuance volume within the 
market grew strongly and was driven by sovereign 
names, with notable debut issuances from the 
European Union and the UK Government, both of which 
Barclays’  Treasury invested in. With increasing focus on 
post-COVID recoveries having an environmental angle, 
we see very strong growth opportunities for the green 
bond market, and we aim to reach our £4bn target 
portfolio size in the near term.
Barclays PLC 
home.barclays/annualreport
49
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Metrics and targets continued
Green financing dashboard 
£100bn green financing (2018-2030)
£bn
By region
£bn
By product
£bn
62.2∆
100.0
29.8∆
100.0
32.4
Target by 2030
2021 Progress
2018-2020 Progress
Achieved to date
Americas: (+61%) 
UK/Europe: (+64%) 
Asia and Rest of World: (+250%)
2021
2020
12.7
14.7
7.9
9.0
2.4
0.7
Debt: (+55%) 
Equity: (+187%)
Loan: (+64%)
Other: 2021: 0.3,  2020: – 
2021
2020
18.9
4.4
12.2
1.5
6.2
20
3.8
Green financing facilitated 
£bn
2021
2020
2019
22.6 ∆
7.2 ∆
Total
17.6 
Total
9.2
Total
29.8 ∆
14.8 
2.8
7.8
1.4
YoY Growth: Total: (+70%)
Sustainability-linked (green): (+158%)
Environmental: (+53%)
Δ 2021 data reproduced from the Barclays PLC Annual Report 
subject to independent Limited Assurance under ISAE(UK)3000 
and ISAE3410. Refer to the ESG resource hub for details:  
home.barclays/sustainability/esg-resource-hub/ 
Barclays PLC 
home.barclays/annualreport
50
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Carbon-related assets
2021
Total loans & 
advances & loan 
commitments
£707,162m
15%
2020
Total loans & 
advances & loan 
commitments
£675,681m
16%
4. Climate Risks 
Carbon-related assets
We also disclose concentrations of credit exposure to 
carbon-related assets. In its recently updated 2021 
guidance, the TCFD recommends that carbon-related 
assets are those assets tied to the energy, transportation, 
materials and buildings and agriculture, food and forest 
products sectors which is a broadening of the definition 
compared to the 2017 TCFD Annex guidance*.
All of the sectors that the TCFD now considers to be 
carbon-related assets include the sectors that Barclays 
considers at elevated risk from the impacts of climate 
change. In the Appendix (Credit concentration by 
elevated risk sector) we have indicated the amount of 
exposure from carbon-related assets that directly 
corresponds with our classification of elevated risk 
sectors for consistency with previous disclosures.
Elevated risk sectors
Credit exposures 
Barclays is working to understand the risks associated 
with sectors sensitive to the impacts from climate 
change. Disclosing risk management metrics and 
quantitative credit exposures supports this approach 
and our ongoing alignment with the TCFD 
recommendations. The sectors highlighted blue in the 
table represent those that the Group considers at an 
elevated risk from the impacts of climate change. 
However, in each sector there will exist a range of 
vulnerabilities and as such these figures do not 
represent elevated carbon emission exposures and 
should not be interpreted as an indicator of relative 
carbon intensity. These sectors have been identified 
through an analysis of Barclays Industrial Classifications 
by portfolio and benchmarked against Moody’s and 
other external sources, with additional input from 
subject matter experts.
*In the 2017 Annex, the Task Force suggests banks define 
carbon-related assets as those assets tied to the energy and utilities 
sectors under the Global Industry Classification Standard. In the 
2021 Annex, the Task Force does not reference the Global Industry 
Classification Standard. To support alignment in our reporting of 
carbon-related assets with other metrics within our report, we have 
identified sectors under the Barclays Industry Classification Standard.
Metrics and targets continued
Elevated risk exposure
£m
Total 2020
46,535
50,537
Total 2021
Carbon-related assets (including sub-sector breakdown)
2021
£m
2020
£m
% 
change
Agriculture, Food and Forest Products 
 14,719 
 14,627 
0.63%
	
Agriculture
 5,043 
 5,802 
	
Food, Bev and Tobacco 
 8,800 
 8,129 
	
Paper and Forest Products 
 875 
 696 
Energy
 25,646 
 27,981 
-8.34%
	
Coal Mining and Coal Terminals†
 45 
 29 
	
Oil & Gas 
 12,869 
 15,613 
	
Power Utilities 
 12,732 
 12,339 
Materials and Building 
 51,960 
 51,804 
0.30%
	
Cement 
 324 
 358 
	
Chemicals 
 4,308 
 4,926 
	
Construction and Materials 
 2,919 
 3,201 
	
Homebuilding and Property Development 
 5,774 
 6,035 
	
Manufacturing
 14,385 
 14,110 
	
Metals 
 742 
 936 
	
Mining (incl. diversified miners)‡
 1,408 
 1,608 
	
Packaging Manufacturers: Metal, Glass and Plastics 
 370 
 254 
	
Real Estate 
 21,493 
 20,084 
	
Steel 
 236 
 292 
Transport
 11,422 
 11,305 
1.04%
	
Automotive
 5,568 
 5,530 
	
Aviation 
 2,049 
 1,991 
	
Other Transport Services 
 1,663 
 1,495 
	
Ports
 189 
 239 
	
Road Haulage 
 1,026 
 1,137 
	
Shipping 
 927 
 912 
Subtotal (elevated risk sectors)
46,535
50,537
-7.92%
Grand Total
 103,747 
105,717
-1.86%
Notes
•	 Over the last year we have continued to evolve our understanding of climate and carbon-related risk and have reviewed our Barclays 
Industrial Classifications and Sector classifications to ensure they accurately reflect these risks. As a result of these reviews, we have 
identified additional areas within the broader sector categories, which we deem elevated climate and/or carbon risk, or have isolated 
sub-sectors within broader sector categories that pose greater risk than the wider sector itself. These updates cover Automotive, 
Cement, Chemicals, Mining and Road Haulage. 
•	 Barclays does not consider all parts of the Power Utilities value chain exposed to elevated climate risk, for instance Renewable Power 
Production. Climate risk for this sector may depend on a number of factors such as the reliance and/or focus of the company on fossil 
fuels. As such, exposures for this sector show the portion of the Power Utilities sector where we do identify elevated climate risks.
†	 Coal Mining and Coal Terminals relates to one client predominantly engaged in metallurgical coal mining. 
‡ 	 Diversified miners with minority interests in thermal coal mining are included in this category.
Barclays PLC 
home.barclays/annualreport
51
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Metrics and targets continued
Financing (capital markets) 
To facilitate greater understanding and transparency of 
our capital markets financing, in 2020 we disclosed the 
total capital raised for clients across all sectors using 
data sourced from Dealogic. 
To aid continued transparency and comparability in 
our annual reporting, we have provided the same 
breakdown for our 2021 financing below. The data is 
prepared in a consistent manner to 2020. It is sourced 
from Dealogic and the industry sector categories are 
designated by Dealogic General and Specific Industry 
Group classifications. Financing volumes are reported 
on a manager-proceeds basis including bonds, equities, 
loans and securitised bonds and no modifications have 
been made by Barclays.
This data represents a third party view of our financing 
and is subject to Dealogic’s league table methodology, 
which pro-rates volume across lead-managers. We are 
presenting the data in this format to support 
transparency and comparability but it should be noted 
that this data is subject to further analysis and 
methodological enhancements, before it is included in 
BlueTrack™. 
Carbon-related energy and extractive sectors (Dealogic Industry Classification)
2021
$m
2020
$m
2020 v 2021% 
difference
Mining (General) Total
 1,566 
 1,494 
4.8%
Oil & Gas Total
 10,128 
 20,982 
-51.7%
Utility & Energy Total
 24,553 
 22,982 
6.8%
Grand Total
 36,247 
 45,458 
-20.3%
Total green/sustainable/social bonds and company issuers 
defined as Renewables
 7,496.5 
 3,456.5 
116.9%
Total of all industries
547,597
507,130
8.0%
Note
2020 figure has been recalculated by Dealogic as data on deals is confirmed throughout the year. In Barclays TCFD Report 2020, our 2020 
total financing figure was reported as $504,030m.
Total financing (capital markets) 2021
$547,597m
Telecommunications 
4.38%
Professional Services 
2.49%
Mining, Oil & Gas, 
Utility & Energy 
8.33%
Computers 
& Electronics 
9.49%
Healthcare 
6.25%
Food & Beverage 
2.63%
Finance 
37.06%
Government 
7.24%
Auto/Truck 
2.64%
Other sectors* 
10.58%
Metal & Steel 
0.48%
Forestry & Paper 
0.42%
Textile 
0.26%
Publishing 
0.08%
Holding Companies 
0.06%
Aerospace 
0.05%
Defence 
0.05%
Agribusiness 
0.02%
*Other sectors
Retail 
1.53%
Leisure & Recreation 
1.42%
Construction/Building 
1.40%
Chemicals 
1.37%
Machinery 
1.22%
Consumer Products 
1.14%
Dining & Lodging 
1.07%
Insurance 
2.97%
Transportation 
2.57%
Real Estate/Property 
3.37%
Mining
General 
4.32%
Oil & Gas 
DiversiĤed 
9.37%
Exploration & 
Development 
6.94%
Field Equipment 
& Services 
4.46%
Pipeline 
5.95%
ReĤnery/Marketing 1.22%
Utility & Energy 
DiversiĤed 
25.60%
Electric Power 
33.69%
Gas 
8.45%
Financing of  
Utility & Energy,  
Oil & Gas, Mining 
$36,247m*
*Notes
Excludes non-carbon-related utilities: waste management, hydroelectric power and water totalling $1,872m.  
Also excludes green/sustainable/social bonds and company issuers defined as Renewables totalling $7,497m.
Barclays PLC 
home.barclays/annualreport
52
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Glossary
 
Term
Explanation
BlueTrack™
BlueTrack™ is Barclays’ methodology for measuring our financed emissions, and tracking them at a portfolio level against the goals of the Paris Agreement. BlueTrack™ currently measures 
carbon,  and includes capital markets financing in addition to lending. 
Carbon removals 
The action of removing GHG emissions from the atmosphere and store it through various means, such as in soils, trees, underground reservoirs, rocks, the ocean, and even products like 
concrete and carbon fibre.
Climate Biennial Exploratory Scenario 
(CBES)
The Bank of England runs regular stress tests to help assess the resilience of the UK financial system and individual institutions. The 2021 Biennial Exploratory Scenario will explore the 
resilience of the UK financial system to the physical and transition risks associated with different climate pathways.
Climate Internal Stress Test
Barclays’ 2020 Climate Internal Stress Test, which explored a ‘Disorderly’ climate scenario over a 30-year horizon.
Financed emissions 
Emissions that banks and investors finance through their loans and investments.
Financial Stability Board (FSB)
The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. The Financial Stability Board established the TCFD 
to develop recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, 
enable stakeholders to understand better the concentrations of carbon-related assets in the financial sector and the financial system’s exposures to climate-related risks.
Greenhouse Gas (GHG)
The GHG protocol defines GHGs as the six gases listed in the Kyoto Protocol: carbon dioxide (CO2 ); methane (CH4 ); nitrous oxide (N2 O); hydrofluorocarbons (HFCs); perfluorocarbons 
(PFCs); and sulphur hexafluoride (SF6).
Internal Capital Adequacy Assessment 
Process (ICAAP)
The purpose of the Internal Capital Adequacy Assessment Process (ICAAP) is to identify and quantify the risks the firm is exposed to, and to assess whether Barclays holds adequate 
capital to support these risks.
Internal Liquidity Adequacy 
Assessment Process (ILAAP)
Barclays maintains an Internal Liquidity Adequacy Assessment Process (ILAAP) document. The ILAAP contains an assessment of the key liquidity risk drivers along with a description of the 
systems and controls in place to manage and mitigate liquidity risks.
International Energy Agency (IEA) 
Sustainable Development Scenario 
(SDS)
The International Energy Agency (IEA) has developed a large-scale simulation model that projects how energy markets could function in the medium to long term. From that model comes 
the Sustainable Development Scenario (SDS). SDS is a ‘well below 2°C’ pathway, and represents a gateway to the outcomes targeted by the Paris Agreement. It is based on a surge in clean 
energy policies and investment and is consistent with limiting the global temperature rise to 1.65°C (with a 50% probability).
Paris Agreement
The Paris Agreement is a legally-binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris. Its goal is to limit global warming to well below 2°C, 
preferably to 1.5°C, compared to pre-industrial levels.
Barclays PLC 
home.barclays/annualreport
53
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Glossary continued
Term
Explanation
Renewables 
Energy taken from sources that are inexhaustible, e.g. wind, water, solar, geothermal energy, and biofuels.
Scenario analysis
Efforts to mitigate and adapt to climate change are without historical precedent. Forward-looking analyses, such as scenario analysis, can help organisations consider a broader range of 
assumptions, uncertainties, and potential future states when assessing financial implications of climate change.
Sovereigns, Supranationals and 
Agencies (SSA)
Supranational bonds are defined as those issued by entities formed by two or more central governments to promote economic development for the member countries (e.g. the European 
Investment Bank and the Asian Development Bank). Sovereign bonds include securities that have an explicit government guarantee or support from the sovereign, principal, or state 
government. An agency bond is a security issued by a government-sponsored enterprise or by a federal government department other than the US Treasury. 
Task Force on Climate-related Financial 
Disclosures (TCFD) Recommendations
The TCFD recommendations are structured around four thematic areas that represent core elements of how organisations operate: governance, strategy, risk management, and metrics 
and targets. They also include explicit guidance for Banks.
TCFD Report
Barclays’ climate-related financial disclosures consistent with the TCFD Recommendations is referred to as the TCFD Report.
Barclays PLC 
home.barclays/annualreport
54
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Industry collaboration
External body
Barclays’ engagement
Banking Environment Initiative (BEI)
Barclays is a founding member of the Banking Environment Initiative (BEI), which is a group of global banks committed to pioneering 
actionable pathways towards a sustainable economy. The BEI is convened by the Cambridge Institute for Sustainability Leadership 
(CISL).
CERES
Barclays has been a member of Ceres since 2019. During 2020, we were engaged in their working group on Land Use and Climate 
(LAC) and we remain engaged with the organisation on other sustainability topics.
HRH the Prince of Wales’ Sustainable Markets Initiative’s (SMI) – 
Financial Services Task Force (FSTF)
During 2021, Barclays was a member of HRH the Prince of Wales’ Sustainable Markets Initiative’s (SMI’s) Financial Services 
Taskforce (FSTF) and was involved in both the Net Zero Emissions working group and the Carbon Offsetting working group.
In late 2021, the FSTF published a Net Zero Practitioner’s Guide for Banks, to which Barclays contributed.
Partnership for Carbon Accounting Financials (PCAF)
Barclays has been a member of PCAF since 2020. During 2021, Barclays co-chaired the PCAF Working Group on Capital Markets 
Activities which published a Discussion Paper on Capital Markets Instruments in November 2021. Barclays was also involved in 
reviewing other new methods that PCAF published for consultation in late 2021, including Green Bonds, Sovereign Bonds and 
Negative Emissions.
PRA/FCA Climate Financial Risk Forum (CFRF)
During 2021, Barclays was a member of the Climate Financial Risk Forum’s Disclosure Working Group and Innovation Working Group. 
Barclays contributed to reports published by the working groups during the year, including on a CFRF recommended climate data 
and metrics dashboard and certain Barclays case studies.
Taskforce on Nature-related Financial Disclosures (TNFD)
Barclays is a member of the Taskforce on Nature-related Financial Disclosures (TNFD) Forum, which is a consultative network of 
institutional supporters who share the vision and mission of the TNFD.
United Nations Environment Programme Finance Initiative 
(UNEP FI)
Barclays has been a member of UNEP FI for more than 20 years. In the last few years, Barclays has partnered with UNEP FI by 
engaging in their TCFD pilot project in 2018/19; by becoming a founding signatory of the Principles for Responsible Banking (PRB), 
by joining the Net-Zero Banking Alliance (the banking component of the Glasgow Financial Alliance for Net Zero (GFANZ)). A 
Barclays representative was elected on behalf of Western Europe to the UNEP FI Banking Board.
World Business Council for Sustainable Development (WBCSD)
In 2021, Barclays became a member of the Banking for Impact on Climate in Agriculture (B4ICA) initiative when it launched in 
November. B4ICA is backed by WBCSD in partnership with UNEP FI, PCAF and the Environment Defence Fund (EDF) and aims to 
bring together banks to develop best-in-class technical data-solutions to support themselves and their clients to align their 
financial portfolios in the food, agriculture, and land use space towards net zero and Paris Agreement goals.
Barclays PLC 
home.barclays/annualreport
55
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Credit risk concentration by elevated risk sector
Manufacturing
£m
Energy and 
water
£m
Wholesale 
and retail 
distribution 
and leisure
£m
Other
£m
Total
£m
As at 31 December 2021
Group total
On-balance sheet:
Loans and advances at amortised cost
6,701
4,345
11,455
11,034
33,535
Off-balance sheet:
Loan commitments
42,587
26,461
16,299
26,845
112,192
Total
49,288
30,806
27,754
37,879
145,727
 
Identified as elevated climate risk sectors:
On-balance sheet:
 1,435 
 2,582 
 585 
 5,708 
 10,310 
Loans and advances at amortised cost
Off-balance sheet:
Loan commitments
10,771
18,703
717
6,034
 36,225 
Total
12,206
21,285
1,302
11,742
46,535
 
Of which:
Agriculture 
 261 
 – 
 – 
 4,782 
 5,043 
Automotive
 5,568 
 – 
 – 
 – 
 5,568 
Aviation
 – 
 – 
 8 
 2,041 
 2,049 
Cement
 324 
 – 
 – 
 – 
 324 
Chemicals
 4,161 
 – 
 147 
 – 
 4,308 
Coal Mining and Coal Terminals†
 – 
 45 
 – 
 – 
 45 
Mining (incl. diversified miners)‡
 – 
 1,408 
 – 
 – 
 1,408 
Oil & Gas – Upstream
 – 
 5,663 
 – 
 – 
 5,663 
Oil & Gas – Midstream 
 – 
 – 
 – 
 2,933 
 2,933 
Oil & Gas – Services
 – 
 1,437 
 – 
 33 
 1,470 
Oil & Gas – Downstream
 1,656 
 – 
 1,147 
 – 
 2,803 
Power Utilities
 – 
 12,732 
 – 
 – 
 12,732 
Road Haulage
 – 
 – 
 – 
 1,026 
 1,026 
Shipping
 – 
 – 
 – 
 927 
 927 
Steel
 236 
 – 
 – 
 – 
 236 
Grand Total
12,206
21,285
1,302
11,742
46,535
† Coal Mining and Coal Terminals relates to one client predominantly engaged in metallurgical coal mining. 
‡ Diversified miners with minority interests in thermal coal mining are included in this category.
Credit risk concentration by elevated risk sector
Manufacturing
£m
Energy and 
water
£m
Wholesale 
and retail 
distribution 
and leisure
£m
Other
£m
Total
£m
As at 31 December 2020
Group total
On-balance sheet:
Loans and advances at amortised cost
 8,142 
 4,722 
 12,569 
 11,937 
 37,370 
Off-balance sheet:
Loan commitments
 39,638 
 25,780 
 17,165 
 22,571 
 105,154 
Total
 47,780 
 30,502 
 29,734 
 34,508 
 142,524 
 
Identified as elevated climate risk sectors:
On-balance sheet:
 1,927 
 2,980 
 690 
 6,586 
 12,183 
Loans and advances at amortised cost
Off-balance sheet:
Loan commitments
11,124
20,257
1,015
5,958
 38,354 
Total
13,051
23,237
1,705
12,544
50,537
 
Of which:
Agriculture 
 290 
 – 
 432 
 5,080 
 5,802 
Automotive
 5,530 
 – 
 – 
 – 
 5,530 
Aviation
 – 
 – 
 – 
 1,991 
 1,991 
Cement
 358 
 – 
 – 
 – 
 358 
Chemicals
 4,832 
 – 
 94 
 – 
 4,926 
Coal Mining and Coal Terminals†
 – 
 29 
 – 
 – 
 29 
Mining (incl. diversified miners)‡
 – 
 1,608 
 – 
 – 
 1,608 
Oil & Gas – Upstream
 – 
 7,340 
 – 
 – 
 7,340 
Oil & Gas – Midstream 
 – 
 – 
 – 
 3,256 
 3,256 
Oil & Gas – Services
 – 
 1,921 
 – 
 168 
 2,089 
Oil & Gas – Downstream
 1,749 
 – 
 1,179 
 – 
 2,928 
Power Utilities
 – 
 12,339 
 – 
 – 
 12,339 
Road Haulage
 – 
 – 
 – 
 1,137 
 1,137 
Shipping
 – 
 – 
 – 
 912 
 912 
Steel
 292 
 – 
 – 
 – 
 292 
Grand Total
13,051
23,237
1,705
12,544
50,537
Appendix (Credit concentration by elevated risk sector)
Overview of credit exposures by industry sector: ‘manufacturing’, ‘energy and water’, ‘wholesale and retail distribution and leisure’ and ‘other’ are those standard categories, as disclosed in the Annual Report, that have been identified 
to contain exposures at an elevated risk from the impacts of climate change. The tables below show, for these four categories, loans and advances at amortised cost and loan commitments at a total Group level and for those sectors 
at an elevated risk from the impacts of climate change. The data presented is before the effects of netting, collateral and risk transfer have been applied.
Barclays PLC 
home.barclays/annualreport
56
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Important Information
In preparing this TCFD Report we have:
(i)	 made a number of key judgements, estimations and 
assumptions, and the processes and issues involved 
are complex. This is for example the case in relation to 
financed emissions, portfolio alignment, classification 
of environmental financing, operational emissions and 
measurement of climate risk 
(ii)	 used ESG and climate data, models and 
methodologies that we consider to be appropriate and 
suitable for these purposes as at the date on which 
they were deployed. However, these data, models and 
methodologies are not of the same standard as those 
available in the context of other financial information, 
nor subject to the same or equivalent disclosure 
standards, historical reference points, benchmarks or 
globally accepted accounting principles. There is an 
inability to rely on historical data as a strong indicator of 
future trajectories, in the case of climate change and its 
evolution. Outputs of models, processed data and 
methodologies will also be affected by underlying data 
quality which can be hard to assess
(iii) reproduced certain data assured by KPMG in the 
Annual Report. Barclays appointed KPMG to perform 
limited independent assurance over selected ESG 
content in the Annual Report which has been marked in 
the Annual Report 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, which includes details of the scope, 
reporting criteria, respective responsibilities, work 
performed, limitations and conclusion, and is available 
on our ESG resource hub at: https://home.barclays/
sustainability/esg-resource-hub/. Certain data assured 
by KPMG in the Annual Report has been reproduced in 
this TCFD report. This is marked in this TCFD Report 
with the symbol Δ. No other information in this TCFD 
Report has been subject to external assurance or audit.
(iv)	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 TCFD 
Report. 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. Further development of accounting and/ 
or reporting standards could impact (potentially 
materially) the performance metrics, data points and 
targets contained in this report. In future reports we 
may present some or all of the information for this 
reporting period using updated or more granular data or 
improved models, methodologies, market practices or 
standards. Such re-presented information may result in 
different outcomes than those included in this TCFD 
Report. Where information is re-presented from time 
to time, we will identify this and (where we think it is 
appropriate) include an explanation. It is important for 
readers and users of this TCFD Report 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.
Forward-looking statements 
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. These forward-
looking statements can be identified by the fact that 
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 also may be made verbally by members of 
the management of the Group (including, without 
limitation, during management presentations to 
financial analysts) 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, income 
growth, assets, impairment charges, provisions, 
business strategy, capital, leverage and other regulatory 
ratios, capital distributions (including dividend pay-out 
ratios and expected payment strategies), projected 
levels of growth in the banking and financial markets, 
projected costs or savings, any commitments and 
targets (including, without limitation, environmental, 
social and governance (ESG) commitments and 
targets), estimates of capital expenditures, plans and 
objectives for future operations, projected employee 
numbers, IFRS impacts and other statements that are 
not historical fact. By their nature, forward-looking 
statements involve risk and uncertainty because they 
relate to future events and circumstances. The 
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, the 
development of standards and interpretations under 
IFRS, including evolving practices with regard to the 
interpretation and application of accounting and 
regulatory standards, emerging and developing ESG 
reporting standards, the outcome of current and future 
legal proceedings and regulatory investigations, future 
levels of conduct provisions, the policies and actions of 
governmental and regulatory authorities, 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 the impact of competition. In 
addition, factors including (but not limited to) the 
following may have an effect: capital, leverage and other 
regulatory rules applicable to past, current and future 
periods; UK, US, Eurozone and global macroeconomic 
and business conditions; the effects of any volatility in 
credit markets; market related risks such as changes in 
interest rates and foreign exchange rates; effects of 
changes in valuation of credit market exposures; 
changes in valuation of issued securities; volatility in 
capital markets; changes in credit ratings of any entity 
within the Group or any securities issued by such 
entities; direct and indirect impacts of the coronavirus 
(COVID-19) pandemic; instability as a result of the UK’s 
exit from the European Union (“EU”), the effects of the 
EU-UK Trade and Cooperation Agreement and the 
disruption that may subsequently result in the UK and 
globally; the risk of cyber-attacks, information or 
security breaches or technology failures on the Group’s 
reputation, business or operations; and the success of 
future acquisitions, disposals and other strategic 
transactions. A number of these influences and factors 
are beyond the Group’s control. As a result, the Group’s 
actual financial position, future results, capital 
distributions, capital, leverage or other regulatory ratios 
or other financial and non-financial metrics or 
performance measures or ability to meet 
commitments and targets may differ materially from 
the statements or guidance set forth in the Group’s 
forward-looking statements. Additional risks and 
factors which may impact the Group’s future financial 
condition and performance are identified in Barclays 
PLC’s filings with the SEC (including, without limitation, 
Barclays PLC’s Annual Report on Form 20-F for the 
fiscal year ended 31 December 2021), which are 
available on the SEC’s website at www.sec.gov.
Subject to Barclays’ 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 
home.barclays/annualreport
57
 

Barclays PLC Climate-related Financial Disclosures 2021
Governance
Strategy
Risk management
Metrics and targets
Scenario analysis

Registered office: 1 Churchill Place, London E14 5HP © Barclays PLC 2022 
Registered in England. Registered No: 48839
Barclays PLC Annual Report 2021
A detailed review of Barclays’ 2021 performance  
with disclosures that provide useful insight 
and go beyond reporting requirements.
Barclays PLC Climate-related 
Financial Disclosures 2021
A report aligning to the Task Force on  
Climate-related Financial Disclosures 
(TCFD) recommendations in this, the fifth 
year of disclosure.
Barclays PLC Pillar 3 Report 2021
A summary of our risk profile, its interaction with  
the Group’s risk appetite, and risk management.
Barclays PLC Fair Pay Report 2021
An overview of our approach to pay, including 
the principles and policies of our Fair Pay agenda.
Barclays PLC Diversity & Inclusion Report 2021
An overview of the Group’s approach to 
building a more inclusive company, including 
a progress report on each of our six pillars  
of diversity and inclusion.
Barclays PLC Country Snapshot 2021
An overview of our global tax contribution as well as 
our approach to tax, including our UK tax strategy, 
together with our country-by-country data.
Left:	
Rebecca Boll  
Chief Product Officer, Fluence
Right:	
John Plaster  
Barclays Head of Power & Utilities, Americas
Growing. Together.
Financing the transition
Fluence is a global market leader in energy storage products and services, 
as well as digital applications for renewables and storage. Energy storage 
technology is at the centre of the decarbonisation of the electric grid and 
has a critical role to play in enabling the transition to a low-carbon economy.
This year, Barclays supported Fluence by helping them float on the 
NASDAQ through an Initial Public Offering (IPO). We helped market the IPO 
over a seven-day virtual roadshow, highlighting the important role Fluence 
is playing in the transition to the low-carbon economy, as well as the 
pure-play exposure it provides to investors looking to capitalise on the 
growing global demand for energy storage and digital capabilities.
Thanks to our collective work, the IPO raised almost $1bn to fund Fluence’s 
growth plans, attracting a diverse group of very high quality investors. As of 
February 10, 2022, Fluence, a Siemens and AES company, already has more 
than 4.6 GW of energy storage deployed or contracted in 30 markets, and 
approximately 6 GW of wind, solar and storage assets contracted or under 
management in Australia and California. The IPO will help develop this 
low-carbon ecosystem even further, helping customers around the world 
and driving a more sustainable future.
 “
Enabling greater adoption of renewable energy 
and decarbonised technologies is vital for 
accelerating the transition to net zero, and the 
capital raised from this IPO will help Fluence to 
be a leader in this effort.
 
Rebecca Boll  
Chief Product Officer, Fluence