Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 59

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 59
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 and risk management departments. Barclays' approach and framework undergoes regular reviews and updates &#8211; including changes to the risk taxonomy, definitions and methodology &#8211; to align with changing regulatory expectations and external developments. The potential impacts of physical and transition risk drivers will vary across Barclays' portfolios depending on composition, industry, geographic location, business operations and other contextual factors. The tables below set out the example drivers, example potential impacts and expected time horizons of various physical and transition risks in accordance with the TCFD categories. Further details on how Barclays manages climate risk can be found on pages 209 to 212. Transition risks Policy and legal Reputation Technology Market Example drivers &#8226; Carbon tax impacting sectors and clients &#8226; Enhanced GHG reporting obligations &#8226; Government and non-governmental organisations taking litigation actions &#8226; Increased stakeholder concern or negative stakeholder feedback &#8226; Shifts in consumer preferences &#8226; Stigmatisation of sectors &#8226; Disruptive substitute technologies being favoured because of lower carbon footprint &#8226; Development of emissions capture and recycling facilities &#8226; Investments in energy efficient products &#8226; Changes in supply and demand of raw materials &#8226; Uncertainty in market signals &#8226; Changing market sentiment Example potential impacts &#8226; Increased operating costs and expenses to comply with new regulations &#8226; Write-offs and early retirement of assets due to policy changes &#8226; Increased costs associated with litigation actions &#8226; Increased costs and reduced demand for products and services &#8226; Decreased production capacity due to poor employee attraction and retention &#8226; Reduction in capital availability &#8226; Write-offs and early retirement of carbon-intensive assets &#8226; Research and development expenditure in new technologies &#8226; Costs for adoption of new practices and processes &#8226; Increased costs and reduced demand for products and services &#8226; Increased production costs due to changing input prices and output requirements &#8226; Decreased revenue and repricing of assets Expected time horizons S, M, L Physical risks Acute Chronic Example drivers &#8226; Damage to fixed assets and infrastructure (e.g. property, power supplies) by wildfires &#8226; Adverse impact on agriculture and production of soft commodities due to drought &#8226; Transport difficulties and damage to infrastructure due to severe storm and flooding &#8226; Change in weather and precipitation patterns resulting in reduced agricultural yields and land no longer suitable for farming &#8226