Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 404

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 404
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 impacts Credit Risk. The impact onCredit Risk relates to the failure of clients, customers or counterparties to meet their obligations as a result of physicaland transition risks, which may lead to potential losses and/or exposures outside the bank risk appetite in retail andwholesale credit portfolios. Climate change can drive direct impacts such as damage to fixed assets from physicalhazards, leading to changes in output and increased costs. Indirect impacts may include material disruptions to supplychains and shifting demand for goods and services. Transition risk factors such as low-carbon policies or technologiescould also change the value and creditworthiness of counterparties clients and customers.                    |
| Market risk             | The impact on Market Risk relates to potential adverse changes in the value of the firm's assets and liabilities fromfluctuations in market variables as a result of physical and transition risks, which may lead to potential losses due tochanges in equity and commodity prices and credit spreads. Either physical hazards or transition risk factors have thepotential to trigger large, sudden and negative price adjustments where climate risk has not yet been incorporated intoprices, driving additional Market Risk. Fluctuations in markets and prices in susceptible sectors or countries could drivelosses to the value of the Bank’s assets and liabilities.                                                                                                                                                                                                                                                                                     |
| Treasury & capital risk | The impact on Treasury & Capital Risk relates to the impact on the capital requirements and liquidity fundingrequirements as a result of physical and transition risks, which may lead to changes in capital plans, funding planrequirements, asset and liabilities management (ALM) and exposures to changes in interest rates. Climate events candrive Treasury & Capital Risk as counterparties draw down deposits and credit lines. Physical hazards, or transitionfactors could lead to increased volatility, which could in turn change the value of investments and drive changes tofunding requirements and accessibility, capital planning, capital requirements, or hedging methodologies.                                                                                                                                                                                                                                                              |
| Operational risk        | Physical hazards and transition risk factors can lead to impacts on the firm’s own operations including damage orunsuitability of premises, disruption to business operations and supply chain and ability to recover from outages (e.g.caused by workforce, technology and third-party service providers). For example, extreme weather events can impactthe operation of bank offices, branches, and support facilities such as data centres. The transition to a low-carboneconomy can lead to changes in operational processes, for example to mitigate climate impacts we need todecarbonise our buildings or requirements to achieve more carbon efficient buildings. Transition risks  can also drives