Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 05 report information sustainability report Governance review review statements Annual Report 2022 Chairman’s introduction (continued) As Venkat says in his letter, we therefore go into All this needs to be done affordably and in an both the demand-side and supply-side issues 2023 determined to remain resilient in all orderly fashion and in collaboration and which have led to a decline in equity ownership in respects, whilst performing at a more alignment with governments' energy strategies. the UK, a reduction in UK listings and IPOs, and a consistently excellent level. Considerable The Inflation Reduction Act in the US has been a diminution of the risk appetite of UK capital. There is a purpose, energy investment and progress have been made over significant step forward. Barclays has committed Thank you the last five or so years to enhance the resilience to play a full role in supporting our clients in their and creativity in the people I would like to start by thanking all my Board of our business, but there are still investments to transition and we have now developed a colleagues for their contributions this last year. be made, processes to simplify and behaviours framework to assess our high emitting clients’ of Barclays which will Following their long service to the Board, I would to change before we can be more satisfied with transition plans. In 2022 we facilitated £25bn of continue to be deployed like to single out Mike Ashley and Crawford Gillies our overall performance. new green financing and we have also now in particular and wish them the very best as they announced a new target to facilitate $1trn of for the benefit of the Returning to the broader theme of the role of retire in 2023. They have supported Barclays Sustainable and Transition Financing between business in addressing today’s socio-economic through a period of considerable change and communities we serve. 2023 and the end of 2030. and other challenges, I would like to comment on made a real difference to the organisation in their the ever-increasing need for partnership At a more micro level in the UK, we are piloting roles. I am very pleased that Julia Wilson, who between the public and the private sector. schemes to help retail customers finance joined us in 2021, will take over as Chair of the Good engagement between authorities and energy-efficiency solutions and the adoption, Let me begin by emphasising that we welcome Audit Committees of Barclays and Barclays Bank industry about the outcomes of policy and where possible, of non-fossil fuel energy in the constructive dialogue between finance, industry PLC in April. In January we announced the supervision, and the complex interactions of policy home. We look forward to working with the UK and government. Finance has a big role to play in appointments of Marc Moses and Sir John with broader market dynamics, are necessary to Government on more extensive versions of supporting growth initiatives in the UK whilst at the Kingman, both of whom have deep experience of deliver the agility and innovation both government these schemes. same time protecting households and smaller financial services and will further strengthen the and business want to see from the UK’s financial businesses as far as we can from the immediate Thirdly, and to some extent bringing these two Board. Sir John will succeed Crawford as Chair of sector. The new measures and obligations in the ramifications of high inflation, higher interest rates themes together, Barclays has a big role to play in Barclays Bank UK PLC in June. Financial Services and Markets Bill helpfully clarify and other disruptions in the economy. Barclays financing innovation and technology, whether at the importance both of competitiveness as an Barclays has nearly 90,000 employees. As I have has the people and skills to compete with the best the start-up point or as companies mature. outcome of policy and of transparent and remarked before, I have always been humbled by internationally, to bring best-in-class business informed public debate in this regard. The Barclays as a whole operates as an ecosystem to practices to the UK and to export its services the dedication of colleagues to the pursuit of our success of these measures will not be in the support innovation and entrepreneurship, elsewhere. To do so, it is important that its ability Purpose and by the way they embrace the legislation per se, but in the quality of debate it creating new opportunities for employment with to compete is supported by developments at societal and climate challenges I have described. establishes between government, regulators, both our Sustainable Impact Capital fund and our home, political and regulatory. We welcome the Without full engagement of colleagues our business and parliamentarians, and the direction it work with the inspiring entrepreneurs we meet UK Government’s ‘Edinburgh Reforms’ and it is LifeSkills programme would not have been able thereby informs and creates. good too that the UK Government and regulators through the Unreasonable Impact Partnership. to reach and make a difference to the lives of Secondly, I have written before about our role in embrace the importance of both competition and Many of these innovators are of course focused more than 18 million young people in almost a addressing effectively the climate challenge, of competitiveness, and the need to re-energise on adapting existing technology and practice to decade. There is a purpose, energy and creativity the UK’s capital markets. A strong prudential whilst meeting the world’s energy demands at reduce carbon intensity in a way that supports in the people of Barclays which will continue to be regime is part of that, provided it operates in the same time. In the last year, energy security consumers and business to adapt their activities deployed for the benefit of the communities we coherence with international standards and has joined sustainability and affordability as a to become less carbon-intensive. serve as we head into the uncertainties ahead. practices. But it is not, alone, sufficient as a means major challenge. The financial sector has an As companies mature, many of them seek to facilitate the domestic and international important part to play in ensuring that we help further funding through the public stock markets competitiveness of our major financial institutions address all three dimensions – the energy and it is important for the UK and its growth and capital markets. trilemma. We recognise that a faster transition agenda that reforms are undertaken to rekindle from fossil fuels to lower carbon energy is the appetite for equity growth, which was once a necessary to meet the Paris Agreement goals. Nigel Higgins stronger feature of the London markets. Chairman Barclays is committed to playing its part, with government and asset owners, in addressing