Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 102 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 what attributes a particular investment, product Barclays' Sustainable SDG illustrative breakdown of 2022 social and environmental financing or asset should have to be labelled as such. Finance Framework £bn Furthermore, no assurance can be given that a We seek to be transparent about our approach globally accepted definition or consensus will to reporting against our sustainable finance develop over time. We will continue to monitor targets. Our sustainable financing is tracked and comply with applicable jurisdictional using the methodology set out in the Barclays regulatory taxonomy definitions and product Sustainable Finance Framework (SFF). This labelling obligations as they emerge. framework defines the criteria we use for social 8.7bn 5.9bn 4.7bn 4.5bn 3.7bn financing, environmental financing, green As innovation in sustainable finance continues to accelerate, we will continue to review and update financing and sustainability-linked financing. This 0.3 0 our SFF, our measurement of our performance includes ‘dedicated purpose’ green and social against targets, and keep our general approach financing, ‘general purpose’ financing based on 4.5 2.3 5.9 4.7 1.2 8.7 2.4 1.6 3.7 2.6 2.0 1.6 under review. eligible company business mix and sustainability- To support the new sustainable finance target, linked financing, and sets out applicable criteria 0.5 0.6 0.1 we updated our SFF, published in December drawing on industry guidelines and principles. No poverty Clean water and sanitation Reduced inequalities Climate action n n n n 2022, which will apply to financing volumes It should be noted that the methodology is reliant Zero hunger Affordable and clean energy Sustainable cities Life below water n n n n tracked against our new target to facilitate $1trn and communities on a range of data sources including Dealogic Good health and wellbeing Decent work and Life on land n n n of Sustainable and Transition Financing between economic growth and Bloomberg transaction listings and league Quality education Responsible consumption Peace and Justice Strong n n n 2023 and the end of 2030. and protections Insititutions tables, as well as other third-party data and Gender equality Industry, innovation n n and infrastructure Partnerships for the goals Barclays' Sustainable Finance Framework can be found verification sources including company n + online in our ESG Resource Hub at: home.barclays/ Note: Includes 2022 social and environmental financing and excludes sustainability-linked financing. disclosures to aid the classification of financing sustainability/esg-resource-hub/reporting-and-disclosures/ into eligible green and social categories. As we evolve our understanding of how our Our financing covers a range of financing How our sustainable financing We recognise that the quality, consistency and financing contributes to the SDGs, we will refine activities including debt and equity capital comparability of the data relied upon is not yet of supports the Sustainable our methodology accordingly. markets, corporate lending, trade finance and the same standard as more traditional financial Development Goals (SDGs) consumer lending. It helps to generate positive metrics and presents an inherent limitation to Beyond our financing activities, our community The 2030 Agenda for Sustainable Development, social and environmental outcomes through the performance reported. We will continue to programmes contribute to Goal 8 – decent work adopted by all United Nations Member States in financing of activities such as, but not limited to, and economic growth. review available data sources and enhance our 2015, provides a shared blueprint for peace and energy efficiency, renewable energy, affordable methodology and processes to improve the We also contribute to the SDGs through our prosperity for people and the planet, now and housing, basic infrastructure and services. robustness of the performance disclosed. work implementing the UN Principles for into the future. At its heart are the 17 SDGs, Financing of activities set out in the SFF in turn The legal and regulatory landscape relating to Responsible Banking (PRB). We continue to which are a call for action by all countries - supports progress towards achieving the SDGs. sustainable financing, including the naming and analyse the potential positive and negative developed and developing - in a global For a full list of eligible social and environmental categorisation of products as ‘green’, ‘social’, impacts of our business through these principles. partnership. Barclays is pleased to play its part, activities see the Barclays Sustainable Finance ‘sustainability-linked’ and otherwise, is rapidly Barclays has set targets in line with some of our working in partnership with our stakeholders to Framework, which shows how eligible social and evolving with differing regulations across significant impact areas to drive alignment with support the delivery of the SDGs. environmental activities contribute to individual jurisdictions. We may wish to revisit our approach the goals and timelines of the Paris Agreement Since 2018, we have tracked our annual SDGs, supported through an analysis of in that context in the future. and to contribute to the SDGs. contribution to the SDGs, through our financing underlying SDG targets. There is currently no globally accepted activities. An illustrative breakdown of our social For further details, our PRB disclosure can be found online in + our ESG Resource Hub at: home.barclays/sustainability/esg- framework or definition (legal, regulatory or and environmental financing is provided in the resource-hub/reporting-and-disclosures/ otherwise) governing what constitutes 'ESG', chart above. 'green', 'sustainable', or similarly-labelled products, nor is there unanimous agreement on