Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 408

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 408
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 risk limits, triggers and indicators to control risk-taking. Barclays has implemented climate-aware limits and triggers as applicable for priority sectors and portfolios with elevated climate risk. For the UK retail portfolio, physical and transition risk mandates are in place for the UK Mortgages and Business Banking Agriculture portfolios. The performance against these metrics is tracked and reported to various committees and governance processes. Barclays has integrated climate risk considerations into policies, standards and lending guidelines. Enhanced oversight and additional scrutiny have been introduced for new deals in elevated climate risk sectors, particularly those with sector targets and policy restrictions. These policies are reviewed regularly and updated with respect to external developments. Details on sensitive sector and area policies are on page 47. Climate risk related management information packs, including climate risk dashboards, are produced and reported to various committees and governance forums, including CRC. They primarily consist of insights on climate-related exposures, key performance indicators, concentration metrics, climate risk trends, external developments and progress against climate targets. BRC also receives regular updates, including climate risk dashboards. Legal entity specific climate risk dashboards for monitoring and reviewing climate-sensitive exposures are presented to appropriate committees. Where climate risk limits are subject to ongoing monitoring, they will be reported at the appropriate Principal Risk Committees, including CRC. Barclays continuously monitors regulatory developments, including emerging disclosure standards on climate and wider sustainability areas, and builds internal capabilities to meet these new requirements. Barclays continues to focus on integration of climate risk into its business operations and risk management practices. In 2024, notable enhancements and improvements were made in the following key areas: -The Framework, Policy and Standard for Climate Risk (as a Principal Risk) were enhanced to facilitate further integration and provide clearer guidance on control objectives and requirements, including specific roles and responsibilities of different teams across the first and second lines of defence. - The risk appetite framework for climate risk was strengthened by introduction of additional quantitative metrics such as stress loss triggers, to actively monitor the impact of climate risk on the Group's capital position. The risk limits and triggers on notional exposures have been expanded to manage concentration and high risk exposures to climate risk across other Principal Risk types. -The internal stress testing framework has been enhanced to integrate stress scenarios and risk variables for climate risk. The climate risk models used within stress testing framework have also been enhanced to generate more accurate outputs. Additionally, the methodology for assessing climate risk in different economic sectors has been enhanced. - The Climate and Environmental Lens questionnaire was redeveloped to support decision-making by including a range of data points across both transition and physical risks. Additionally