Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 405

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 405
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econdary impacts on operational risks such as the risk of misreporting as a result of enhanced regulatory disclosuresrequirements, or physical security breaches and branch closures as a result of protests related to Barclays' lendingactivities. |

Barclays' climate risk identification includes monitoring of the external environment including regulatory developments, climate-related litigations and market developments for identifying climate risk drivers that could affect Group's portfolios. In addition to horizon scanning, Barclays has also developed processes to identify sectors, sovereigns and US States which other Principal Risks must prioritise for further analysis and risk management activities. Following this assessment, the industry sectors and geographies that are highly exposed to climate risks are deemed to be of elevated risk. These assessments are regularly reviewed and benchmarked against external studies and research and incorporate inputs from the subject matter experts. Horizon scanning and elevated climate risk sector and geography assessments form the basis of Barclays' approach and priorities for further granular assessment.

| Strategy                              | Shareholderinformation | Climate andsustainability report | Governance |     | Riskreview | Financialreview | Financialstatements |     | Barclays PLC 2024Annual Reporton Form 20-F | 211 |
| Principal risk management (continued) |                        |                                  |            |     |            |                 |                     |     |                                            |     |

Details on exposures to elevated sectors are on pages 221 to 224 . In the UK Retail and Business Banking portfolios, Barclays is using both internal and external data sources to identify portfolio segments that are vulnerable to subsidence and flood risks. Additionally, Energy Performance Certificate (EPC) ratings have been identified for portfolios that are particularly vulnerable to transition risk. Methodology and breakdown of exposure to these risks is available on page 225 . Barclays uses third-party data providers to identify property level physical hazards for Private Wealth Management Mortgages and Structure Lending and Financing portfolios. Additionally, through individual client assessments and scenario analysis exercises, Barclays identifies portfolios that are more vulnerable to climate risks. The risk identification processes have been broadened to encompass assessments for nature-related risks for Barclays Europe portfolios. Risk assessment Barclays uses its Risk Register process to assess the potential effects of climate risk drivers on its portfolios. The Group Risk Register contains key risks and vulnerabilities that may impact forward- looking business plans of the Group and its key legal entities and business units. The materiality of climate risks is derived either quantitatively (typically based on stress testing) or through qualitative estimations. The potential impact is evaluated based on adverse but plausible scenario. The Group Risk Register is refreshed on at least