Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 116

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 116
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 evaluate financial resiliency to a severe but plausible scenario. Internal short-term transition scenario &#8226; Short-term assessment exploring the potential transition risk impact of a &#8216;Climate Minsky Moment&#8217; with a rapid market correction, followed by broader macroeconomic shocks. &#8226; Scenario narrative and shocks informed by external publications such as the PRA insurance climate stress and DNB energy transition stress test. Exploratory climate scenarios by the Bank of England (BoE) &#8226; Barclays participated in the BoE&#8217;s Climate Biennial Exploratory Scenario. &#8226; Stress test covers three long-term scenarios: Early Action, Late Action and No Action. &#8226; Assessments focused on credit risk impacts to wholesale and retail portfolios. Stress-testing and integration &#8226; Quantitative integration of stress- testing results into internal capital adequacy and CET1 assessments. &#8226; Conducted two short-term climate stress tests, including a physical tipping point (H1) and full macroeconomic expansion (H2). &#8226; Development of new climate-aware models and methodologies. External case studies through UNEP FI &#8226; Case study exercises covering Power, Utilities, Oil and Gas and Residential Real Estate. &#8226; Scenario assessment based on REMIND 2&deg;C scenario, assessing a specific client set in each sector. &#8226; Judgement-led and simplistic approach to calculate climate probabilities of default. Internal climate scenarios informed by NGFS &#8226; Long-term climate internal stress test. &#8226; Scenario narrative and shocks informed by NGFS Disorderly Transition, combined with internal scenario of comparable sensitivity (pre-COVID IFRS 9 Downside 1). &#8226; Second assessment considered incremental physical risk impact from the Hot House World scenario. Framework, regulatory and internal scenario analysis &#8226; Barclays participated in regulatory stress-tests such as ECB CRST. &#8226; Conduction of bespoke internal scenario analysis exercise. &#8226; Development of an internal framework to structure scenario- based climate risk measurement exercises. Further embedment of climate risks into stress testing framework &#8226; Climate further integrated as part of the Internal Stress Test; single scenario produced which accounted for climate risk drivers. &#8226; Reverse Stress Test run assessing the impact of transition and physical risks over a long period of time (2040), to understand impacts from extreme tail events. &#8226; Nature Exploratory Stress Test to assess resilience