Barclays ESG 2018

Barclays PLC Environmental Social Governance Report 2018

Creatingopportunitiesto riseBarclays PLCEnvironmental SocialGovernance Report2018

Our common Purpose is‘Creating opportunities torise’. We are a company ofopportunity makers workingtogether to help peoplerise – customers, clients,colleagues and society.For further information and a fuller understandingof the results and the state of affairs of the Group,please refer to the full Barclays PLC Annual Report2018 suite of documents available athome.barclays.com/annualreportBarclays PLC Strategic Report 2018An overview of our 2018 performance, a focus on ourstrategic direction, and a review of the businessesunderpinning our strategy.Barclays PLC Annual Report 2018A detailed review of Barclays 2018 performance withdisclosures that provide useful insight and go beyondreporting requirements.Barclays PLC Country Snapshot 2018An overview of our tax contribution country by countryas well as our broader approach to tax, including our UKtax strategy.Barclays PLC Environmental SocialGovernance (ESG) Report 2018Our ESG strategic priorities and performance, reportedagainst a range of quantitative and qualitative indicators.Barclays PLC Pillar 3 Disclosures 2018A summary of our risk profile, its interaction with theGroup’s risk appetite, and risk management.ReportingThe Environmental Social Governance (ESG) Report provides additional information on keynon-financial topics and forms part of the Barclays PLC Annual Report suite.This report should be read in conjunction with the Annual Report at home.barclays/annualreportThe report has been prepared in accordance with Global Reporting Initiative (GRI) Standards(Core option). Further details on the requirements can be found in our 2018 GRI Content Index.The Environmental Social Governance Framework sets out the basis on whichkey metrics were prepared. These documents are available at home.barclays/esgWhen you see this icon you will find moreinformation on another page or Barclays reportAssuranceKPMG LLP undertook a limited assurance engagement over selected performance informationin this report. Refer to their statement on page 68.When you see this icon you will find moreinformation online

What’s inside this reportChair of the Board Reputation CommitteeThe Board provides oversight ofenvironmental and social matters Page 2Chief ExecutiveDelivering on our strategic priorities Page 3Shared Growth Ambition2018 Summary Page 4Continuing to deliver for customers,clients, colleagues and society Page 5Context and approachPage 6Our business modelWorking together to help people rise Page 8Our focus areasOn an annual basis we conduct a materialityassessment in line with the principle ofmateriality as described in the GlobalReporting Initiative (GRI) Standards.Within the ESG Report, material topics havebeen disclosed in four categories accordingto stakeholder interest:Our Materiality Review and GRI Content Indexfor 2018 can be found at home.barclays/esgCustomersand clients Company Page 12Page 38ColleaguesSocietyPage 50Page 56Additional informationPage 10Additional informationThe final output of the materiality processhas fed into the planning stages of theESG Report which has been approved bysenior management and Board Committees.The GRI Content Index reflects thedisclosures made around the materialtopics in our reporting suite.Our approachOur approach to managingEnvironmental, Social andGovernance matters ESG Ratings Page 67KPMG Assurance statement Page 68Read more online at: home.barclays/esghome.barclays/annualreport Our focus areasOur purpose and valuesWe are a company ofopportunity makers Context and approachOur leadership team discussesour achievements and thefuture for BarclaysLeadership teamThe Environmental Social Governance (ESG) Report providesadditional information on key non-financial topics and formspart of the Barclays PLC Annual Report suite. This report shouldbe read in conjunction with the Annual Report.Barclays PLC Environmental Social Governance Report 201801

Chair of the Board Reputation CommitteeThe Board provides oversight ofenvironmental and social mattersSecond, we wanted to ensure that thefinal year of Barclays’ previous Citizenshipprogramme – known as the Shared GrowthAmbition – was a success. Jes Staley providesmore detail on the following pages. I’mparticularly proud of the work our colleagueshave done to employ their skills for societalbenefit – whether helping people acquire basicdigital and financial skills through our LifeSkillsprogramme, or taking part in the UnreasonableImpact programme that brings togetherentrepreneurs and experts to find scalablesolutions to problems, such as access to cleanwater. In October 2018, I joined three youngpeople who were being helped by Barclaysand our partner, Catch 22, to prepare for jobinterviews. They were bright but had lost theconfidence or experience to apply for work.Getting a job would turn their lives around,and I was proud that Barclays could help.Mary FrancisChair of the Board ReputationCommitteeI took over as chair of the Reputation Committeeof the Barclays Board in April 2018. Our job is tooversee, on behalf of the board, the company’sculture, conduct and reputation.The 2018 UK Corporate Governance Codesays it clearly: the role of a company board“is to promote the long-term sustainablesuccess of the company, generating valuefor shareholders and contributing towider society”.Barclays’ first task is to deliver excellentservices to its customers. But every memberof our Board knows that the way we go aboutour business has wider implications: we cando good or harm in people’s lives; we cancontribute to economic success or failure.I took over as chair of the ReputationCommittee of the Barclays Board in April2018. Our job is to oversee, on behalf of theboard, the company’s culture, conduct andreputation. We have a particular responsibilityto look outwards and ensure that Barclaysconsiders the interests of all its stakeholders– shareholders and customers of course,but also employees, suppliers, governmentsand communities. If our business is out ofstep with their concerns and expectations,it will stumble. If we are alert and responsive,02 Barclays PLC Environmental Social Governance Report 2018 we will help create a more healthy andprosperous society, in which our ownbusiness can also develop and grow.In the last year the Reputation Committeehad three strong areas of focus.First, we encouraged management to ensurethat Barclays’ purpose, values and culture arefully aligned and embedded. We welcomedthe definition of the new Purpose: ‘CreatingOpportunities to Rise’. We emphasised theimportance of underpinning this with ourenduring Values: respect, integrity, service,excellence and stewardship. Accordingly,we reviewed regularly dashboards of evidencethat our people act in accordance with thosevalues. We also discussed with the BankingStandards Board its own, external, surveyof the culture of our organisation – and werepleased that the notable progress made in2017 was maintained in 2018. We look fora culture that is both entrepreneurial andhighly risk aware, and we see good evidenceof this combination.Third, we focused on issues which are ofwide social concern and which also impactour business directly. Data privacy is onesuch issue – of increasing concern to manyindividuals and businesses, and somethingwe must manage sensitively at every stageof developing and delivering our productsand services. Another is climate change.The Committee approved policy statementson Coal, and World Heritage Sites and RamsarWetlands in April 2018. A comprehensiveEnergy and Climate Change Statement(which strengthened and replaced our CoalStatement) was published in January 2019.As the Statement sets out, Barclays iscommitted to develop its ‘green finance’ skillsand assets; to conduct careful due diligencewhen considering lending for projects insensitive energy sectors; and to reducethe environmental footprint of our ownoperations. We are also working to enhanceour reporting on environmental matters,in line with the recommendations of theTask Force on Climate-related FinancialDisclosures (TCFD).The rest of this report provides information onthe wide range of environmental, social andgovernance activity which Barclays undertookin 2018. I am very grateful to my predecessor,Gerry Grimstone, to my Committee members,and to Jes Staley and his team for all they havedone to advance this work.Mary FrancisChair, Board Reputation Committeehome.barclays/annualreport

Chief ExecutiveDelivering on our strategic prioritiesLeadership teamWe value the trust that our clients, customers,and wider society place in us to serve theirbest interests every day. We recognise the rolethat we play in driving sustainable economicgrowth and societal progress, and we takethat responsibility seriously.Our success has always been inextricablylinked to the progress of the people,communities and businesses that we serve.James E. StaleyGroup Chief ExecutiveDelivering on our Shared Growth AmbitionIn 2016 we launched our Shared GrowthAmbition which set out the focus areaswhere we could play to our strengths asa financial institution, while achieving thegreatest positive impact on the economyand communities.We had good momentum over the lastthree years with progress across our rangeof community investment programmes,which focused on three key areas of accessto employment, digital and financialempowerment, and social and environmentalfinancing. We also met or exceeded our 2018annual targets for The Barclays Way trainingand carbon emissions reduction. See page 4for a summary of 2018 performance.home.barclays/annualreport Barclays PLC Environmental Social Governance Report 201803Additional informationAs I meet colleagues from across Barclays,I feel incredibly proud of the role that theyare playing to strengthen our local and globalcommunities. It’s their energy and spirit thatshows Barclays at its best.Our focus areasBarclays recognises our role in serving society,and our success has always been inextricably linkedto the progress of the people, communities andbusinesses that we serve. It is by focusing on ourcore products and services, and our relationships,that we can make the greatest positive impact.We will continue to identify new opportunities tointegrate these considerations into the work we doevery day to help customers and clients, colleaguesand society to rise.It is by focusing on our core products,services, and relationships, that we canmake the greatest positive impact. We areresponding to global challenges like climatechange and global energy demand byevaluating our financing of carbon intensiveenergy sources, while proactively supportingthe development of green financial productsand services. We are contributing to inclusiveprosperity by enhancing the skills andmeaningful employment opportunities ofpeople in our local communities. And weare investing in innovation from our bestasset – our colleagues – to test and scalenew business opportunities that tackle socialand environmental challenges.Context and approachAnd, it is only in an inclusive society, whichuses its resources in a sustainable manner,that our clients and customers and, in turn,our business, can thrive. So, strengtheningour approach to Environmental, Socialand Governance issues makes goodbusiness sense.