Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 44 report information sustainability report Governance review review statements Annual Report 2022 Society (continued) The TPCoC encourages our suppliers to adopt In support of the GSD initiative, Barclays is a Payment on time Diversity, Equity and our approach to doing business when acting on corporate member of, and plays an important Inclusion in our value chain Prompt payment is critical to the cash flow of behalf of Barclays and details our expectations role with, several of the most prominent every business, and especially to smaller Barclays believes that diversity across our value for matters including environmental domestic and international diverse supplier businesses within the supply chain as cash flow chain expands our ability to attract and harness management, human rights, diversity and certification organisations including National issues are a major contributor to business failure. innovative solutions in the market that inclusion and also for living the Barclays Values. Minority Supplier Development Council We aim to pay our suppliers within clearly defined complement our own capabilities, while (nmsdc.org), Women’s Business Enterprise Managed suppliers are asked to complete an terms, and to help ensure there is a proper simultaneously creating value for customers and National Council (wbenc.org), WeConnect annual self-certification against the individual process for dealing with any issues that may clients, and economic opportunities for wider, International (weconnectinternational.org), topics contained within the TPCoC, as well as arise. We measure prompt payment globally by under-represented segments of society. This is National LGBTQ Chamber of Commerce providing annual assurance that the controls calculating the percentage of third-party supplier why we launched our first Global Supplier (nglcc.org), National Veteran Owned Businesses required of them under the SCOs are maintained spend paid within 45 days following invoice date. Diversity (GSD) initiative in 2013. Association (NaVoba.org), Minority Supplier and operating effectively. The measurement applies against all invoices by As part of our GSD initiative in 2022, 8.5% of Development UK (msduk.org.uk), Disability:IN value over a three-month rolling period for all a Where suppliers are unable to meet our our global addressable spend was placed with (disabilityIn.org) and Social Enterprise UK entities where invoices are managed centrally. expectations under the TPCOC and SCOs, the small and medium-sized enterprises and (socialenterprise.org.uk). issue will be escalated and we will look for options In 2022, we achieved 93% (2021: 90%) on-time diverse-owned businesses as measured by first- In 2021, we pledged to double our spend with to manage the risk, which may include electing payment to our suppliers (by invoice value), and second-tier direct spending. Ownership- black and female-owned businesses by 2025 and not to do business with the supplier. exceeding our public commitment to pay 85% of diverse businesses are majority owned, to grow overall spend with SMEs and diverse- suppliers on time (by invoice value). controlled and operated by protected class The TPCoC and SCOs are published on the owned businesses to 10% of Barclays annual groups, such as women, ethnic minorities, Barclays public website for all new and existing The need to promptly pay our diverse suppliers global addressable spend. We have made LGBT+, persons with disabilities, military suppliers to view and are refreshed periodically. became even more important during the structural changes to improve how we measure veterans and for-profit social enterprises. For example in 2022, we upgraded our TPCoC to COVID-19 pandemic. Barclays established a and report spending with diverse, Black and strengthen the expectations relating to process to expedite the payments for diverse female-owned businesses, increasing environmental, climate change and human rights. suppliers at this critical time. This process transparency to stakeholders and driving greater In addition, we have included certain key remained in place during 2022. accountability with those authorised to direct elements from the TPCoC in our General Barclays is proud to be a signatory of the Prompt spend with third-party providers. Contracting Terms used with suppliers with a Payment Code in the UK and we also work closely view to strengthening their impact. The aim is for service providers, which make up with the Small Business Commissioner and other 70% of our addressable spend, to have a Please see further details on our climate change initiatives organisations, including Good Business Pays, to + diversity and inclusion policy or standard in place in our supply chain within our Achieving net zero educate the public on late payments and the operations section from page 78 within the Climate and by 2025. We are continuing to engage and Sustainability report. impact they can have on businesses and assess our suppliers and will report against our business owners, and to raise the social progress in the future. conscience of larger businesses who do not pay Note on time. a Addressable spend is defined as external costs incurred by Barclays in the normal course of business where Procurement has influence over We are also calling on other large businesses to where the spend is placed. It excludes costs such as regulatory fines or join us to make sure their smallest suppliers are charges, exchange fees, taxation, employee expenses or litigation costs, property rent. paid promptly.