Climate Change Data

Barclays Bank PLC and its affiliates

Climate Impact & Sustainability Data (2021-11-30 to 2021-12-08, 2023-01 to 2030-12)

Reporting Period: 2021-11-30 to 2021-12-08

Environmental Metrics

ESG Focus Areas

  • Ethics
  • Sustainability

Environmental Achievements

  • Retailers spent an average of 10.75% of turnover to improve sustainability and ethical standards. Health and beauty and fashion sectors spent 15% and 14% respectively.
  • Over £7.1bn of supplier contracts were cancelled in the last 12 months due to ethical or sustainability concerns.
  • Tesco committed to net-zero (Scope 3) emissions from its entire supply chain by 2050.

Social Achievements

  • Boohoo linked executive bonuses to improved working conditions in its supply chain.
  • Primark partnered with ACT to secure living wages for workers.
  • Many retailers implemented policies to terminate contracts with suppliers not meeting ethical or sustainability standards (average of nearly six contracts cancelled per retailer).

Governance Achievements

  • Dunelm linked management incentive plans to the purchase of responsibly-sourced cotton.
  • Retailers are increasingly conducting supplier audits to minimize social risks impacting wages and working conditions.

Climate Goals & Targets

Long-term Goals:
  • Tesco's commitment to net-zero emissions from its supply chain by 2050.
Medium-term Goals:
  • Larger firms aiming for net-zero targets by 2030.
Short-term Goals:
  • Many retailers are planning to work with smaller suppliers and use greener delivery services or green warehousing solutions in 2022.

Environmental Challenges

  • Managing UK and local expectations against foreign expectations and standards in supply chains.
  • Monitoring ethical and sustainable credentials of overseas suppliers, particularly challenging for fashion and online marketplace sectors (67%).
Mitigation Strategies
  • Retailers are investing heavily in improving supply chain ethics and sustainability (average of £504,000 per retailer in the past year).
  • Initiatives like the Global Fibre Impact Explorer and BanQu are being used to improve supply chain transparency.
  • Retailers are terminating contracts with suppliers who do not meet ethical or sustainability standards.

Supply Chain Management

Responsible Procurement
  • Supplier audits
  • Contract termination for non-compliance
  • Minimum standards for hygiene, safety, and fair treatment of workers
  • Membership in ethical and sustainable organizations

Climate-Related Risks & Opportunities

Reporting Period: 2023-01 to 2030-12

Environmental Metrics

ESG Focus Areas

  • Green Financing
  • Social Financing
  • Sustainability-Linked Financing
  • Transition Financing

Environmental Achievements

  • £150bn social, environmental and sustainability-linked financing target achieved by 2022

Social Achievements

  • £150bn social, environmental and sustainability-linked financing target achieved by 2022

Governance Achievements

  • Internal review and external assurance on sustainable finance metrics

Climate Goals & Targets

Long-term Goals:
  • $1 trillion of Sustainable and Transition Financing between 2023 and end of 2030
  • Net zero bank by 2050
Medium-term Goals:
  • £100bn of green financing by 2030

Environmental Challenges

  • Lack of a global framework or definition for ESG, green, or sustainable products.
Mitigation Strategies
  • Development of a Barclays Sustainable Finance Framework to provide transparency and guidance.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Loan Market Association (LMA)/Asia Pacific Loan Market Association (APLMA)/Loan Syndications and Trading Association (LSTA) - Green Loan Principles (GLP) 2023 - Social Loan Principles (SLP) 2023 - Sustainability Linked Loan Principles (SLLP) 2023, Climate Bonds Initiative (CBI) – Climate Bonds Standard V 4.0, International Capital Markets Association (ICMA) - Green Bond Principles (GBP) 2021 - Social Bond Principles (SBP) 2023 - Sustainability Bond Guidelines (SBG) 2021 - Sustainability -Linked Bond Principles (SLBP) 2023

Third-party Assurance: Sustainalytics