Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 89

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 89
---
 deem material for that activity. For example, our Upstream Energy target includes Scope 3 emissions for carbon dioxide and methane &#8211; recognising they are significant for a company extracting fossil fuels. Use of carbon credits We do not allow company-purchased offsets such as carbon credits to reduce emissions, as we believe it is important to base a metric on operational activities under a company's control. We therefore do allow company-operated removals, such as on-site carbon capture at a plant. Given that company-operated removals are currently marginal in the context of emissions, they currently have no impact on our portfolio-financed emissions metrics. Strategy Shareholder information Climate and sustainability report Governance Risk review Financial review Financial statements Barclays PLC 2024 Annual Report on Form 20-F 39 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation B | Strategic Pillar 1

Portfolio-level metrics Barclays uses two financed emissions metrics: 1. Absolute Emissions: a measure of the absolute emissions generated, or fair share of the company's emissions over time; 2. Emissions Intensity: how much CO2e (Carbon Dioxide Equivalent) is released on average for a certain amount of economic activity or material produced. We use absolute emissions for the Upstream Energy and UK Agriculture sectors, whose decarbonisation pathways rely on a reduction in production volume as well as on a reduction in intensity. The Upstream Energy sector cannot reduce its carbon emissions intensity below a certain point &#8211; a barrel of oil cannot be decarbonised, for instance &#8211; and therefore a reduction in absolute carbon emissions is more appropriate. The Agriculture sector requires a shift away from the production of meat and dairy towards alternative protein sources, as farmers respond to changing diets, and therefore a reduction in absolute emissions is more appropriate. We use emissions intensity for the other sectors, whose decarbonisation pathways rely primarily on reduction in intensity rather than volumes. Both absolute and intensity metrics are sensitive to factors which are not directly related to real world emissions. For example, absolute emissions are sensitive to changes in the book value of debt and equity, and intensity metrics are sensitive to changes in revenue share. Reference scenario2 Each of our 2030 targets were developed with reference to a 1.5&deg;C-aligned scenario. For the majority this was using the most recently available vintage of the IEA's Net Zero by 2050 (NZE2050) scenario. In calculating a convergence point for our UK Housing portfolio and a target for UK Agriculture