Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 93 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Drivers of reduction in emissions Barclays is also committed to working High level assessment of drivers of net zero in Residential Real Estate in Residential Real Estate collaboratively with the UK Government to Driver Barclays' role encourage and inform the development of The two most important drivers in the transition Without external changes and public policy interventions, Barclays actions are expected strategies and policies to drive more energy- to net zero in this sector are the decarbonisation to have limited impact in decreasing the emissions intensity of its mortgage portfolio. efficient homes and retrofitting, including of the UK energy grid and the phasing out of through industry groups where appropriate, and fossil fuel in domestic heating through the switch • Continue to offer education, financing products and Improvement in energy through our own engagement with policymakers. to low-carbon heating bringing clean energy to services to incentivise retrofitting efficiency of existing homes our customers’ homes. This will be mostly driven • Advocating for external measures to drive take up of by the transition of the energy sector and UK retrofitting Government policy to drive the decarbonisation Barclays' approach to advocacy in • Supporting our clients in the power sector in their net zero De-carbonisation of UK of the UK electricity grid and promote the take up residential real estate transition electricity grid of low-carbon heating, We have recommended that policymakers, • Advocating for the UK Government to deliver on its Barclays can play a role through supporting in collaboration with the industry, take the ambitions to decarbonise the electricity grid renewable projects and clients in the Power following steps: TM • Continue to offer education, products and services to Phasing out of fossil fuel in sector, for example through our BlueTrack • increase policy clarity through a national incentivise customers switching to low-carbon heating heating targets, our banking activity and Sustainable decarbonisation roadmap and Impact Capital investments. • Opportunity to develop strategic partnerships, including retrofitting strategy to create a clear with utilities providers, to drive electrification of domestic Another key driver required to reach net zero in framework for action heating the Residential Real Estate sector is improving • introduce measures to build trust and the energy efficiency of existing homes, which • Continue to promote energy efficiency in new builds New homes built to net zero confidence in taking action, such as includes our customers improving the fabric of through propositions such as Green Home Mortgages standard improved access to practical advice their homes and other energy efficiency • Continue supporting our Corporate Bank's real estate about retrofitting and installers who are measures. clients in their transition, for example, through Barclays' TrustMark accredited Other key contributors to the reduction in Sustainable Residential Development Framework • long-term funding which will give supply emissions intensity of this sector include new • Continue to offer education to customers on energy Behaviour change chains confidence to grow homes being built to net zero standard, with low- efficiency and promoting reduction of usage through • improving accuracy and confidence in carbon energy sources and high energy tools, awareness and partnerships EPC Standards as key basis for efficiency rating, and reduction in consumption measuring change. through changes in behaviour. We have continued to support customers Barclays Green Homes strategy purchasing a new build, energy efficient home As a mortgage lender, we can support our Barclays is committed to supporting our through our Green Home Mortgage, launched in customers making the decision to retrofit their customers' transition to a more sustainable way 2018 and under which we've already lent over homes, switch to low-carbon heating e.g. heat of living; our Green Homes strategy is to deliver £2.8bn to over 12,000 customers. pumps and reduce their energy consumption by products and propositions to support our providing education, financial incentives and customers to take steps to improve the energy Further details on our role in supporting supporting our + customers' transition in Barclays UK can be found on pages partner offers, as well as financing through our efficiency of their homes, switch to low-carbon 107 and 108. wide range of lending products. However, we heating and reduce their energy consumption. expect the overall impact of our actions to be Our focus is on launching initiatives that aim to low, given the barriers to retrofitting such as high drive real benefit to society and to the upfront costs and low customer demand. environment.