Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 407

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 407
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 and adherence sits with the front line business and support functions where the risk arises. The Enhanced Due D iligence process and other relevant processes in these business units facilitate the assessment of climate-related reputational risk - details on this are on page 172, while details on oversight and management are embedded with the Barclays governance framework on page 168. The emissions resulting from the activities of customers and clients to whom financing is provided is measured using Barclays' bespoke tool BlueTrack™. Currently, BlueTrack™ covers nine segments comprising of Upstream Energy, Power, Cement, Steel, Automotive Manufacturing, UK Housing, UK Commercial Real Estate, UK Agriculture and Aviation. Details on the BlueTrack™ methodology and targets are on pages 41 to 45. Furthermore, Barclays has developed the Client Transition Framework (CTF) to evaluate certain corporate clients' progress toward business models aligned with a transition to a low-carbon economy. For in-scope clients within the Investment Bank, using BlueTrack™ data and public disclosures, the framework evaluates both qualitative and quantitative components to assess transition trajectories against Barclays’ financed emissions targets and benchmarks. This allows the Group to prioritise engagement with in-scope clients based on their CTF scores. Details on the CTF methodology are on page 46. The client CTF scores and emissions data from BlueTrack™ are further used to inform key risk management practices, including risk monitoring, setting limits, managing concentrations, credit decisions and stress testing exercises. Across Barclays' portfolios, scenario analysis continues to form a key part of the Group’s approach to assessing and quantifying the impact of climate change. Details on the progress and outcomes of our scenario analysis and stress testing e xercises are available on pages 56 to 62. Barclays' risk assessment tool s have also been extended to cover environmental / nature risks for Barclays Europe portfolios. The nature risk considerations have also been incorporated into Stress testing exercises including Nature Exploratory Stress Test exercise.

| Strategy                              | Shareholderinformation | Climate andsustainability report | Governance |     | Riskreview | Financialreview | Financialstatements |     | Barclays PLC 2024Annual Reporton Form 20-F | 212 |
| Principal risk management (continued) |                        |                                  |            |     |            |                 |                     |     |                                            |     |

Risk monitoring and reporting Barclays' monitoring approach for climate risk is designed to track climate-related exposures across portfolios, leveraging risk metrics, latest insights and periodic assessments for alignment with risk appetite and climate goals. Risk appetite is translated into a detailed series of