Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 402 report information sustainability report Governance review review statements Annual Report 2022 KPMG LLP’s independent auditor’s report to the members of Barclays PLC (continued) • Annual report narrative: we made scenarios that could arise from these risks Disclosures of emerging and principal enquiries of management to understand individually and collectively against the level risks and longer-term viability the process by which climate related of available financial resources indicated by Our responsibility narrative is developed including the the Group’s financial forecasts. We are required to perform procedures to primary sources of data used and the Our procedures also included an identify whether there is a material governance process in place over the assessment of whether the going concern inconsistency between the directors’ narrative. As a part of our risk disclosure in note 1 to the financial disclosures in respect of emerging and assessment, we read the climate related statements gives a complete and accurate principal risks and the viability statement, information in the front half of the description of the Directors’ assessment and the financial statements and our audit Annual Report and considered of going concern. knowledge. consistency with the financial Accordingly, based on those procedures, Based on those procedures, we have statements and our audit knowledge. we found the directors’ use of the going nothing further to add or draw attention to On the basis of the procedures performed concern basis of preparation without any in relation to: above, we concluded that, while climate material uncertainty for the Group and • the directors’ confirmation within the change posed a risk to the determination Parent Company to be acceptable. viability statement that they have of asset values in the current year, the risk However, as we cannot predict all future carried out a robust assessment of the was not significant when we considered events or conditions and as subsequent emerging and principal risks facing the the nature of the assets and the relevant events may result in outcomes that are Group, including those that would contractual terms. As a result, there was inconsistent with judgements that were threaten its business model, future no material impact from climate change on reasonable at the time they were made, performance, solvency and liquidity; our key audit matters. the above conclusions are not a guarantee • the Principal Risks and Uncertainties that the Group or the Parent Company will 3. Going concern, viability and disclosures describing these risks and continue in operation. principal risks and uncertainties how emerging risks are identified and Our conclusions The Directors have prepared the financial explaining how they are being managed • We consider that the directors’ use of statements on the going concern basis as and mitigated; and the going concern basis of accounting in they do not intend to liquidate the Parent • the directors’ explanation in the viability the preparation of the Group’s and Company or the Group or to cease their statement of how they have assessed Parent Company’s financial statements operations, and they have concluded that the prospects of the Group, over what is appropriate; the Parent Company’s and the Group’s period they have done so and why they financial position means that this is • We have not identified, and concur with considered that period to be realistic. They have also concluded that the directors’ assessment that there is appropriate, and their statement as to there are no material uncertainties that not, a material uncertainty related to whether they have a reasonable could have cast significant doubt over their events or conditions that, individually or expectation that the Group will be able ability to continue as a going concern for at collectively, may cast significant doubt to continue in operation and meet its least a year from the date of approval of on the Group’s or Parent Company's liabilities as they fall due over the period the financial statements (“the going ability to continue as a going concern for of their assessment, including any concern period”). the going concern period; related disclosures drawing attention to Going concern • We have nothing material to add or draw any necessary qualifications or We used our knowledge of the Group and attention to in relation to the directors’ assumptions. Parent Company, the financial services statement in Note 1 to the financial We are also required to review the Viability industry, and the general economic statements on the use of the going Statement set out on page 58. environment to identify the inherent risks concern basis of accounting with no Our work is limited to assessing these to the business model and analysed how material uncertainties that may cast matters in the context of only the those risks might affect the Group’s and significant doubt over the Group and knowledge acquired during our financial Parent Company’s financial resources or Parent Company’s use of that basis for statements audit. As we cannot predict all ability to continue operations over the the going concern period, and we found future events or conditions and as going concern period. The risks that the going concern disclosure in note 1 subsequent events may result in management considered most likely to to be acceptable; and outcomes that are inconsistent with adversely affect the Group’s and Parent • The related statement under the Listing judgements that were reasonable at the Company’s available financial resources Rules set out on page 65 is materially time they were made, the absence of over this period and which we challenged consistent with the financial statements anything to report on these statements is were: and our audit knowledge. not a guarantee as to the Group’s and • the availability of funding and liquidity in Parent Company’s longer-term viability. the event of a market wide stress Our reporting scenario; and • We have nothing material to add or draw • the impact on regulatory capital attention to in relation to these requirements in the event of an disclosures. economic slowdown. • We have concluded that these We considered whether these risks could disclosures are materially consistent plausibly affect the availability of financial with the financial statements and our resources in the going concern period by audit knowledge. comparing severe, but plausible downside