Barclays PLC - Annual Report - 2022

Fulfilling our Purpose creating and our delivered influence Our positive Values... through Group our strategy... Purpose... outcomes synergies... for our stakeholders. We deploy We work as one Respect finance responsibly Our diversification, organisation to Customers built to deliver to support people Integrity create synergies and and clients double-digit returns and businesses, deliver greater value. acting with empathy Service and integrity, Excellence championing Colleagues innovation and Stewardship Strategic priorities sustainability, for the to sustain and grow common good and the long term. Society Investors

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 01 report information sustainability report Governance review review statements Annual Report 2022 Inside Part 1 Inside Part 2 Inside Part 3 Parts 1, 2 and 3 of Barclays 1 69 141 Governance PLC 2022 Annual Report Strategic report Climate and sustainability report Group overview 2 Introduction 70 Governance contents 141 together comprise Prepared for the road ahead 3 Risks and opportunities 73 Board Governance 142 Barclays PLC’s annual Chairman’s introduction 4 Implementing our climate strategy 77 Directors’ report 143 Chief Executive’s review 6 Resilience of our strategy 127 Remuneration report 197 accounts and report for Our business model 10 Other Governance 246 the purposes of Section Our strategy 12 264 Risk review Section 172(1) statement 16 423 of the Companies Risk review contents 264 Engaging with our stakeholders 21 Risk management 266 Act 2006. Key performance indicators 23 Material existing and emerging risks 269 Customers and clients Principal risk management 282 Supporting our customers and clients 26 Risk performance 296 Colleagues Supervision and regulation 370 Our people and culture 31 378 Financial review Society Financial review contents 378 Making a difference 39 Key performance indicators 379 Investors Consolidated summary income 381 Summary financial review 45 statement Please note that throughout the document, Barclays UK 49 Income statement commentary 382 graphical representation of component parts Barclays International: Corporate 52 may not cast due to rounding. Consolidated summary balance sheet 383 and Investment Bank Strategic report Balance sheet commentary 384 Barclays International: Consumer, Cards 54 The Barclays PLC Strategic Report 2022 was Analysis of results by business 385 approved by the Board of Directors on 14 and Payments February 2023 and signed on its behalf by the Non-IFRS performance measures 392 Managing risk 56 Chairman. Viability statement 58 397 Financial statements The Strategic Report 2022 is a part of Barclays PLC’s Annual Report 2022 and is not the Non-financial information statement 60 Financial statements contents 397 Group’s statutory accounts. It does not contain ESG ratings performance 63 the full text of the Directors’ Report, and it does Consolidated financial statements 416 not contain sufficient information to allow as full ESG-related reporting and disclosures 64 Notes to the financial statements 424 an understanding of the results and state of affairs of the Group and of its policies and TCFD Content Index 65 arrangements concerning Directors’ remuneration as would be provided by the full 66 Shareholder information Annual Report 2022. Key dates, Annual General Meeting, Report of the auditor dividends, and other useful information 66 The Auditor’s report on the Financial statements of Barclays PLC for the year ended 31 December 2022 was unmodified, and its statement under Section 496 of the Companies Act 2006 was also unmodified (see page 399 of Part 3 of the Annual Report 2022).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 02 report information sustainability report Governance review review statements Annual Report 2022 Group overview Barclays supports individuals and small businesses A resilient universal bank through our consumer banking services, and larger businesses and institutions through our corporate and built to deliver double investment banking services. Barclays is diversified by business, geography and income type. digit returns £7.0bn £336.5bn 10.4% Profit before tax Risk weighted assets Return on tangible equity (PBT) (RWAs) (RoTE) Barclays UK Barclays International £2.6bn £73.1bn 18.7% £5.0bn £254.8bn 10.2% PBT RWAs RoTE PBT RWAs RoTE UK retail and business banking Consumer, Cards and Payments Corporate and Investment Bank Helping customers with their day-to-day banking needs and Offering credit cards and retail products outside of the UK, a Aiding money managers, financial institutions, governments, business services for clients from high-growth start-ups to small global private bank, and enabling businesses around the world supranational organisations and corporate clients to manage and medium enterprises (SMEs), to make and receive payments. their funding, financing, strategic and risk management needs. Read more Read more Read more + + + Page 49 Page 54 Page 52 Barclays Execution Services Barclays Execution Services (BX) is the Group-wide service company providing technology, Read more + Page 48 operations and functional services to businesses across the Group.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 03 report information sustainability report Governance review review statements Annual Report 2022 Prepared for the road ahead Our Purpose is to deploy finance responsibly to support people and businesses, for the common good and the long term. To do so we must be strong as an institution, prepared for the future, able to navigate change and focused on the evolving needs of our stakeholders. Our model and strategy are designed to ensure we remain resilient through market cycles and long-term trends. In recent years our diversified model has delivered sustained income growth even through significant macroeconomic change. Our strategic priorities anticipate three major trends: The impact of technology on The role of capital markets as The transition of the global economy towards low-carbon energy consumer products and services the principal driver of global growth As the impact of technology on consumers The long-term shift to capital markets as the principal source of The transition towards a low-carbon economy is one of the continues to drive innovation and market funding has continued across both public and private markets, defining challenges in the current and coming decades. Helping access, our UK retail and business bank, growing the investment banking fee wallet. As one of the few global customers and clients to navigate this complex challenge will be an combined with our international consumer diversified banks headquartered outside of the US, but with a scale important part of fulfilling our Purpose and capturing the lending, cards and payments franchise, give us Corporate and Investment Bank in the US, our model allows us to opportunity this global economic shift offers. We are building our breadth across consumer financial services. We support our clients' financing activity. We offer expertise in a wide expertise in this area to help customers and clients with their needs, have invested in our platforms including cloud range of services, including financial advisory, capital raising, financing as well as working to reduce our financed and own operational technology and our mobile applications, and risk management services. These services help corporations, emissions. Furthermore, we are investing in businesses developing creating more versatile, lower cost financial institutions and governments worldwide to raise capital and innovative new technologies which address the challenge, helping infrastructure. Combined with the depth and manage their risks. As the competitor market evolves, we have them to grow and to support the transition. quality of our customer data and insight, we are adapted to capture new opportunities including growing our franchise well placed to anticipate the ever-changing in Europe and the US, expanding in certain sectors or products, and We continually review our operating environment for emerging needs and expectations of consumers and integrating our approach to our clients to offer the best solutions to trends, including regulation, and adapt to address them, as we have small businesses, delivering more personalised the most complex needs. with our strategic priorities. These trends are considered products and services. throughout the report, including on pages detailing progress against our strategy and in the divisional reporting.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 04 report information sustainability report Governance review review statements Annual Report 2022 Chairman’s introduction In my letter in last year’s Annual Report, I talked I am also pleased to report that Venkat and In light of this incident and the environment in about the challenging times ahead. It is clear this Anna, the new Chief Executive and Chief which we operate, we must make sure that our We are was an understatement. The intervening year has Financial Officer respectively, have navigated well programmes embed a higher standard of seen war in Europe, increasingly frequent climate the challenges of their first year. However, they, operational performance, and demonstrate disasters, COVID-19 still a great threat in large their Executive Committee colleagues, and the measurable progress to shareholders. Thirdly, resilient parts of the world, a partial reeling-in of Board as a whole, are very conscious that there is our share price performance has not reflected globalisation and considerable pressure on much work ahead. First, the very uncertainty that the underlying business strength. It is only with households and businesses from rising costs. We has created the volatility that in turn powered the consistent performance, without the negative for the have left behind the economic comfort zone of results in Markets can have adverse impact of avoidable incidents, that we can hope low inflation and predictable interest rates. The consequences for households and corporate to earn a better reputation for reliable earnings reasonably free flow of goods, including sources of customers; we will work hard to support our and thereby materially reduce the discount at future energy, around the world can no longer be so customers and clients through this period. which the bank’s shares trade to our book value. easily taken for granted. As a result of these and Secondly, we have to improve aspects of the way other factors, free market capitalism is not just 2022 was a year of almost Barclays operates in order to eliminate the type Facts and figures under increasing pressure but, rightly, faces a of error that led to the loss relating to the unprecedented challenges more forceful requirement to demonstrate how it issuance of securities materially in excess of the can contribute to inclusive, sustainable and global limits under certain of our US registration for Barclays and for society economic growth. statements. This incident reflects internal 30.8p In such times it is good to be able to report that failings which we are determined to remedy; more broadly. As a bank, we Barclays remains financially and operationally elsewhere in this report we cover in more detail EPS continued to demonstrate resilient. We finished the year with both a return this issue, its causes and consequences and what 2021: 36.5p on capital and a capital ratio that met the target we have done and are doing to mitigate the risk our resilience, our ability levels which we had set. All of our businesses, of any similar failings. across consumer and wholesale, performed well. and commitment to support 7.25p customers, clients and Dividend 2021: 6.0p wider stakeholders in ever- changing economic Free market capitalism faces conditions. £1.0bn a more forceful requirement Announced buyback of shares 2021: £1.5bn to demonstrate how it can contribute to inclusive, c.13.4p a Total payout per share sustainable and global 2021: 15.0p economic growth. Note: a Includes total dividend for 2022 of 7.25p per share and total share buybacks announced in relation to 2022 of £1.0bn.

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

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 06 report information sustainability report Governance review review statements Annual Report 2022 Chief Executive’s introduction I write to you at the end of a year which saw many Our performance unexpected events. It followed a sequence of Our business performed well in 2022 and we have such years and may not be the last one. In 2022, Strong and supportive demonstrated our continued financial resilience, we witnessed the largest conflict in Europe since notwithstanding the unusual events of the year. World War II, a resulting energy security crisis, a We created broad-based income growth even as sustained rise in interest rates across the franchise in testing times we continued to take a cautious approach to the developed world, political uncertainty in the UK macro environment. We produced an annual with associated movement in gilt yields and in income of £25.0bn, PBT of £7.0bn, Return on Our strong operating performance in 2022 has sterling, and the first re-alignment of global Tangible Equity of 10.4% and ended the year with a geopolitical lines since the end of the Cold War. A CET1 ratio of 13.9%. We have approved dividends been powered across all our businesses - they year ago, I wrote that we were entering a period of 7.25p per share and announced buybacks of of unusual uncertainty. I had far more benign £1.0bn worth of shares for the year ended 31 have individually generated strong returns in an scenarios in mind than what has actually December 2022. Our share count has decreased transpired. Not only was this an eventful year, but uncertain operating environment, and they fit well by over 9% since December 2020. it has followed the devastating human and I attribute this performance to the strength of our economic tragedy of COVID-19, the together. We played an important role in delivering franchise — our businesses are operating well repercussions of which still persist. Lastly, in individually and complement each other collectively. value for our stakeholders, and in helping them Barclays, in 2022 we faced our own challenge of Barclays UK, which serves consumers and small discovering and reacting to a costly over- overcome the challenges they faced this year. businesses across the country, produced income issuance of securities in the US. of £7.3bn, PBT of £2.6bn and a RoTE of 18.7%. I want to use this letter to share my views on our The income growth in the business was the result performance and our priorities, and also my of higher interest rates, increased transaction- thoughts on the UK as we look ahead into 2023. based revenues and higher mortgage balances. It Our performance has been strong but we must was particularly important that we kept our costs remain prepared for testing economic and flat at £4.3bn (2021: £4.4bn), as a result of a long- market conditions. term ongoing programme of digitising the production and delivery of our offerings. We see clear opportunity Our Consumer, Cards and Payments business which includes our partnership cards business in for financial services to contribute the US, the Payments business and our growing Private Bank, generated income of £4.5bn, PBT of £0.7bn and a RoTE of 10.0%. We also continue to new approaches to address make good progress in combining Barclays UK Wealth and Investment Management business complex issues including energy with our Private Banking business. independence and efficiency, housing and economic growth.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 07 report information sustainability report Governance review review statements Annual Report 2022 Chief Executive’s introduction (continued) This is the first step in an integrated approach to Facts and figures help clients manage their personal finances over their lifetimes. In the Corporate and Investment Bank (CIB), we have ranked number six for Global Markets for Technology has allowed £25.0bn the last three years, growing market share, Total income particularly in our trading businesses. These many tasks to be completed digitally, 2021: 21.9bn desks, especially in Fixed Income, managed their risk well and provided excellent market access and liquidity to clients during the many periods of at the customer’s convenience tumult in 2022. The revenues in trading compensated for a weaker performance in and unbounded by opening hours. £7.0bn Investment Banking, which was consistent with declines in capital markets activity across the Profit before tax industry. 2021: £8.2bn In addition to our operating businesses Technology has allowed many of those tasks to Our priorities performing well in 2022, we managed our be completed digitally, at the customer’s Our strong operating performance has been in interest rate risk prudently. Rising interest rates convenience and unbounded by opening hours. the context of the three priorities which I outlined deliver a net interest margin benefit but can Even in the context of digital service, there is an 10.4% in my letter last year. reduce the value of our capital holdings. Through important place for face-to-face interaction for careful Treasury management in anticipation of The first priority is to build next generation, Return on Tangible Equity some customers and for certain needs. This rising rates, we have benefited from the former digitised consumer financial services. This year, 2021: 13.1% year, we began testing different approaches to and minimised the latter. Managing our interest we took important steps towards that goal. serving communities which can no longer rate exposure programmatically through a In the US, we completed the acquisition of a support a branch but where there is a need for a 'structural hedge' allowed us to capture and partnership credit card portfolio from Gap, physical presence. These formats include pop- spread out the benefits of rising rates on our Net increasing our balances by $3.3bn and adding 10 up services, mobile vans and pods, all of which Interest Income (NII) across many years. As a 13.9% million new customers, doubling our customer can be located conveniently for customers. By result, we expect our NII to have a tailwind in base. Our US consumers are mostly served year end we had deployed 200 around the CET1 capital 2023 and beyond. digitally and, as this transaction demonstrated, it country. We also deployed our Cashback Without 2021: 15.1% is a more scalable business. Second, in the UK Purchase programme allowing customers to we agreed to purchase Kensington Mortgage withdraw cash from merchants where other Company, a specialist mortgages lending means aren’t easily available. platform which lends via brokers to customers with complex incomes using proprietary technology and data analytics. Lastly, we continue to increase our provision of digital services to customers in the UK, particularly to those customers who once depended almost entirely on branches for most everyday banking needs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 08 report information sustainability report Governance review review statements Annual Report 2022 Chief Executive’s introduction (continued) The second growth priority is to produce This scale of early investment has helped to Alongside global capital markets, support from This year, we have expanded the programme in sustainable growth in the CIB. We have stimulate innovation in climate technology from governments and regulators is critical to setting partnership with charities like the Trussell Trust continued to diversify our income in the CIB, residential property retrofit to energy storage the right frameworks to guide action and support to help communities most in need. In the face of growing our financing business in Markets to and hydrogen technologies. This next phase of investment decisions. This theme of a sharply rising cost of living, we also launched a balance the intermediary business. For example, Sustainable Impact Capital investments we governments and the capital markets working Money Worries hub in September, to help UK our investment in Financing has continued and expect will see a focus on decarbonisation together to solve large and complex issues is one customers evaluate and manage the impact of income has grown by c.16% CAGR from technologies within carbon-intensive sectors, to which I will return later in this letter. rising inflation and interest rates on their 2019-2022. This diversification allows us to particularly where Barclays has meaningful client personal finances. In particular cases where we Supporting customers and clients generate income even in periods of relatively low exposure such as energy and power, real estate identify customers entering financial distress we Barclays’ financial performance and our progress market volatility, creating more predictable and transport. have offered tailored help to support them. against our strategic priorities is inextricably revenues. We are focused on being the In respect of financing the transition, Barclays Skills and information are one way we can build linked to the global economy and the financial corporate banking partner of choice for clients has passed its 2018 target to deliver £150bn of financial resilience. In September we launched wellbeing of our customers and clients. across our CIB core markets and delivered Social, Environmental and Sustainability-linked another, the Rainy Day Saver, a new instant- increased transaction banking revenue in 2022. financing by 2025 and is on track to meet its Barclays has long sought to build the access account with an interest rate of 5% on We have continued to invest in people and target to deliver £100bn of Green Finance well employability skills and improve the financial balances up to £5,000. The product is designed ahead of the 2030 target date. As a result of a technology. We have broadened our trading health of our communities by providing people specifically to help customers build savings strategic review of our capabilities, market teams, and our capability in Investment Banking with the information and tools more confidently equivalent to three months of outgoings for an demand and new growth opportunities, we coverage and advisory, and in November we to manage their money. Our LifeSkills average household, providing a cushion should announced a new target to facilitate $1trn of opened new state-of-the-art trading floors in programme has been the nucleus of this effort they need it. Sustainable and Transition Financing between our London headquarters. for almost a decade, reaching 18 million people. 2023 and the end of 2030. A major effect of rising rates is the increased Our third priority is to continue to support our cost of mortgage interest. With approximately a clients and capture opportunities as the world quarter of customers approaching the end of transitions to a low-carbon economy. We are their fixed-rate terms each year, we increased building capability and reputation with clients in the window for renewing from 90 days to 180 this area. We continued to invest in senior talent days prior to the fixed rate ending, enabling to help build expertise in sustainable finance, so customers to lock in a new fixed rate, should they that we are better able to support our clients as We continued to invest in senior so wish, in anticipation of further rate rises. they transition their businesses to a low-carbon Small and Medium Enterprises (SME) customers economy. An example of our growing strength are also facing pressure from rising wages and talent to help build expertise in was acting as the sole M&A advisor to ConEdison input costs without being able to pass them in the $6.8bn sale of its clean energy business. onward. We held 450 'Masterclasses' for these sustainable finance, so that we are We have made good progress in two priority customers, helping them anticipate and manage areas to support the transition to a low-carbon pressures common to many small businesses. economy: investing in sustainable technology better able to support our clients This focus on supporting the needs of our retail start-ups, and facilitating sustainable finance. and SME customers is matched in our wholesale With the former, our early commitment of business, through which we support as they transition their businesses. Sustainable Impact Capital of up to £175m by governments and some of the largest financial 2025 generated substantial demand and in and industrial enterprises in the world by December 2022 we announced we would managing their financial risk and growth increase that to £500m by the end of 2027. ambitions. In volatile markets, through tremendous economic uncertainty, that ability to deliver for clients is critical.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 09 report information sustainability report Governance review review statements Annual Report 2022 Chief Executive’s introduction (continued) We see clear opportunity for financial services to Managing Barclays excellently contribute new approaches to address complex Our strong support of wholesale clients and issues including energy independence and consumers this year has shown Barclays efficiency, housing and economic growth, where operating at its best, with empathy, skill and drive. the scale would be challenging for public finance Our strong support of wholesale Unfortunately, in 2022, we also discovered that alone. With Brexit behind us, the UK has an we had issued approximately $17.7bn of opportunity to shape the UK financial services securities more than we were permitted to do clients and consumers this year sector best to support that work. We will use our under shelf registration statements we had filed data and our expertise in markets, sectors and with the US Securities and Exchange our clients to advance ideas, build common has shown Barclays operating at its Commission (SEC). When the matter surfaced, cause with others and ultimately be good we promptly reported it to our regulators, stewards for our Company and for our country. elected to make a rescission offer to eligible best, with empathy, skill and drive. purchasers, and settled the related regulatory Thank you investigation by the SEC. The net cost to a We have achieved a great deal this year, Barclays was £720m, including $200m (£165m ) progressing our objectives and supporting in penalties paid to the SEC. We commissioned • Simplicity: we strive for simplicity and Core to our own success has been the customers and clients. None of this would be an internal review and an external one, led by efficiency in product design and delivery, institutional strength of the UK: the rule of law, possible without the skill and dedication of our experienced outside counsel. seeking out opportunity for automation the fairness and transparency of our regulators, colleagues across Barclays. I am grateful to every an availability of superb financial talent and one of them for their hard work and commitment Our shareholders and the management want • Diversity of thought: we champion new infrastructure and a disciplined business culture. to our Purpose. Barclays to perform at a consistently very high thinking, and challenge the status quo, to help The health of the financial sector in the UK level, day in and day out. Therefore, towards the us achieve excellence. depends on the overall health of the UK and vice- end of 2022, we established a change Only by achieving these objectives to the fullest versa, given the importance of finance to the UK. programme, alongside our Purpose, Values and will we create leading franchises and leave a Mindset, to set such a standard of consistent As I described above in relation to the transition strong legacy for the future. C. S. Venkatakrishnan excellence. We are holding ourselves to that high to a low-carbon economy, the combination of Group Chief Executive, Barclays standard across: Supporting the UK government and capital markets skilfully applied is a strong lever to achieve powerful and far- • Service: accepting nothing less than world- The United Kingdom has been our home for 330 See our strategy + reaching goals. We are ambitious to help with Page 12 class service for clients and customers years. Here we have helped the nation prosper, See our approach to managing risk forming and executing an agenda for progress in and here we have prospered. Page 56 • Precision: our operations, risk management the UK. We recognise that public spending is See how we act in our society and environment and controls should run efficiently with no Serving the UK has been a central tenet of our Page 39 constrained and essential services like education, Go online at unacceptable disruptions or history, from 1690, when our Quaker founders health and social care are a priority for the UK home.barclays/annualreport unanticipated losses financed maritime trade from Lombard Street in Government. We also recognise that capital London, to 2022, when, in the throes of a sell off • Focus: we pursue projects and businesses markets are complex and, given a chequered in UK assets, we led the issuance of £4.5bn of where we can be consistently excellent, and do history in the deployment of private capital for Green Gilts for the Treasury. not dilute our energy or focus with activity public good, we are still rebuilding public trust in where we will not financial services. Note: a Exchange rate USD/GBP 1.22 as at 30 June 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 10 report information sustainability report Governance review review statements Annual Report 2022 Our business model Designed to create synergies Our universal banking model enables us to create synergies, across the organisation and deliver long-term value for our stakeholders. We deploy our resources ... to serve the financial needs of our diversified customer base... We draw on tangible and intangible assets to drive Due to our wide range of products long-term, sustainable value creation. and services across markets, we define ourselves as a ‘universal bank’. Our people, Purpose, Technology Moving Protecting and infrastructure Values and Mindset We facilitate transactions We ensure the assets of our Our deep technology and Our people are our organisation. and move money around the world. clients and customers are safe. infrastructure capabilities drive We deliver success through a customer experiences and purpose-driven and support strong resiliency. Lending Investing and advising inclusive culture. We lend to customers and clients We help our customers and clients to support their needs. invest assets to drive growth. Our brand Operations and governance Our brand equity instils trust, lowers the cost of acquiring Our risk management, Connecting customers and clients and helps governance and controls help We connect companies seeking retain them for longer. ensure customer and client funding with the financial markets. outcomes are delivered in the right way.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 11 report information sustainability report Governance review review statements Annual Report 2022 Our business model (continued) delivering value through providing clear outcomes synergies ... for our stakeholders. We bring our organisation together to Our diversified model provides the resilience create synergies and deliver greater value. and consistency needed for the road ahead. Customers Society Providing customers Joining up different Providing support to our and clients and clients with the full parts of the Group so communities, and access to Supporting our customers and range of our products capabilities in one can social and environmental clients to achieve their goals financing to address societal need. and services. benefit another. with our products and services. Colleagues Investors Applying Group-wide Making the Group more Helping our colleagues across Delivering attractive and technology platforms efficient. the world develop as sustainable shareholder returns to deliver better professionals. on a foundation of a strong balance sheet. products and services.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 12 report information sustainability report Governance review review statements Annual Report 2022 Our strategy Sustaining and growing in challenging times Our strategy enables us to sustain and grow through different market conditions and evolving trends Our Purpose Our diversification, built to Strategic priorities informs our strategy deliver double-digit returns to sustain and grow Our diversification means we are resilient We deploy finance Deliver next-generation, through economic cycles and can deliver digitised consumer responsibly to support double-digit returns. financial services people and businesses, • A large-scale retail and business bank in the UK. acting with empathy and • An international bank containing: Deliver sustainable integrity, championing – a top tier global corporate and growth in the CIB innovation and investment bank – a broad international consumer sustainability, for the lending, cards and payments common good Capture opportunities franchise. as we transition to and the long term. a low-carbon economy

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 13 report information sustainability report Governance review review statements Annual Report 2022 Our strategy (continued) Strategic context Technology is transforming the way consumers 76% 59.8 access products and services. We are adapting to anticipate and meet those needs, and find % of UK customer journeys US Consumer Bank Digital tNPS effective means of ensuring non-digital digitally enabled 2022 Target: 55 customers can still access our services. 2021: 72% The new Digital tNPS metric provides us Deliver next- with feedback on customer experience, As customers needs change Progress and can be measured at the digital journey level. with evolving technology, we are adapting generation, digitised We continue to invest in our digital capabilities, to facilitate customer journeys digitally. consumer financial upgrading our systems, moving to cloud technology and implementing automation of manual services processes. This is allowing us to deliver a more personalised digital journey, reduce cost and create As technology transforms We also have a growing Barclays mobile van Barclays Local additional capacity to support more of our consumer financial services, we network which can be deployed wherever In areas where demand has fallen and the bank customers. are building and delivering support is most needed, including rural and branch is no longer sustainable, we are testing enhanced products and services We are introducing digital tools to the Barclays app remote locations. These spaces help alternative solutions to remain part of the for our customers, leveraging our to provide new products for our customers, customers with cashless banking needs community and to support customers who improve the overall experience and enable payments interconnection and including digital transactions and bill require face-to-face assistance. individuals to manage their finances better. For improving our efficiency. payments. We also host workshops on topics example, mortgage customers can manage their Barclays has now launched almost 200 flexible such as digital skills, money management and mortgages seamlessly through the app, including banking pop-ups, enabling colleagues to reach Our objectives fraud and scams prevention. switching onto a new rate up to 180 days before customers in places such as town halls, • Investing in digital capabilities to their current rate expires. This year, our active libraries and community centres. improve service for customers and mobile customers have grown to 10.5 million and we unlock new sources of income: hit a record of 15.4 million logins in a single day – • accelerating digital access and demonstrating the impact of going digital-first. adoption, while not leaving In our US consumer business, we completed the customers behind acquisition of the Gap cards portfolio, doubling our • building cost-effective infrastructure customer base in the US. • using the quality and scale of our We continue to adapt our service model by building data to better understand customer out Barclays Local – an alternative branch presence for those who need in-person support. Our new needs, anticipate trends and deliver Cashback Without Purchase programme was more competitive products and launched to give customers the ability to withdraw services cash for free via thousands of small businesses • Realising value from investment in across the country, supporting those communities Payments across the Group, delivering without a branch or cashpoint. additional income streams Evolution in 2023 and beyond • Expanding unsecured lending through partnerships We are working to develop a seamless, digital customer journey that provides access to a full • Creating a competitive Wealth range of unsecured lending solutions and the ability franchise to efficiently service to switch between different credit products - customers’ evolving needs expanding beyond cards into merchant integrated point-of-sale lending and open market loans.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 14 report information sustainability report Governance review review statements Annual Report 2022 Our strategy (continued) We actively recruited to strengthen our teams Strategic context Progress and in November, we opened new state-of-the- In 2022, we maintained our overall ranking of A strong presence in the capital markets is a art trading floors in our London headquarters, sixth globally across Investment Banking and important as this remains core to our clients’ b bringing all CIB colleagues in London into one Global Markets , narrowing the gap to fifth. needs. location to further enhance collaboration and We increased the diversity and predictability of Trading and investment banking income is client service. our income, growing our financing business in subject to market volatility, and banks have Deliver sustainable Global Markets, including in Prime. We further Evolution in 2023 and beyond sought to diversify CIB revenues to increase the integrated our Corporate Banking services to growth in the CIB predictability of earnings. We will continue to invest in Investment Banking global and UK multinationals with our Investment high-growth sectors and in our digital initiatives Our success will be judged on our absolute Banking business, focusing on growing our in Global Markets. We will also seek to further As the capital markets grow, performance, as well as how we perform in terms Transaction Banking share across our core CIB build our Corporate Banking business in the US of Investment Banking fee wallet share and we will seek to maintain our markets. and Europe – a key source of stable, high- Global Markets revenue relative to our market position as a top six global returning income. competitors, which are industry standard investment bank while investing markers for CIB performance. in new capabilities to serve our clients. Our objectives Global service that delivers 700+ Colleagues across the globe have enabled • Building consistent strength in Growth in Corporate leading French bank La Banque Postale to Investment Banking, expanding in high- Banking clients in Europe expand its services to customers by taking full growth sectors and deepening our 2021: c.600 control of CNP Assurances, the leading M&A capabilities French life insurer, which was previously listed • Consistently investing in our Global on the Paris Stock Exchange. Markets business with particular Barclays won the mandate to lead the priority given to digital investment to £2.9bn acquisition for La Banque Postale, with ensure we are an electronic-first c Total Financing income colleagues in Investment Banking, Corporate markets business 2021: £2.2bn Banking and Principal Investments working • Capturing greater client flow in Equities together seamlessly to deliver a complex and balances in Prime Financing while transaction for the client. growing our share in Securitised The transaction is one of the most significant Products and Macro Rates, FX and EM insurance deals in the French market for over • Broadening Corporate Banking 15 years, the first guarantee issued by product capabilities, particularly in Notes: a Dealogic Investment Banking global fee ranking and share Barclays in France for an M&A mandate, and Europe and US demonstrating our performance vs peers, for the period covering 1 an example of the power of collaboration to January 2020 to 31 December 2022. • Optimising our global footprint by b Global Markets market share and rank for Barclays is based on our deliver great client outcomes. expanding the CIB internationally share of Top 10 banks reported revenues. Peer banks include BoA, BNP, CITI, CS, DB, GS, JPM, MS and UBS. where we have an attractive c Global Markets Financing includes income related to client financing in opportunity both FICC and Equities. In FICC this includes fixed income securities repurchase agreements, structured credit, warehouse and asset backed lending. In Equities this includes prime brokerage margin lending, securities lending, quantitative prime services, futures clearing and settlement, synthetic financing, and equity structured financing. All other items are considered intermediation.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 15 report information sustainability report Governance review review statements Annual Report 2022 Our strategy (continued) Strategic context Powering Portland General The scale of the investment needed for a timely Electric’s future with innovative transition is significant. The final decision text a green financing from COP27 stated that $4trn per year needs to be invested in renewables to be able to reach net Bringing together experts from its Power & zero emissions by 2050 and furthermore, a Utilities, Equity Capital Markets and Capture opportunities global transformation to a low-carbon economy Sustainable Capital Markets teams in October is expected to require investments of between as we transition to 2022, Barclays structured a Green Use of a $4-6trn per year. We are determined to capture Proceeds equity offering for Portland General these opportunities by supporting our a low-carbon economy Electric, which saw the issuance of 11.615m customers and clients in their transition. shares of common stock. We want to work alongside customers Progress This novel structure gives investors publicly and clients as they transition to a low- tradable common shares, whose proceeds are As defined by our Sustainable Finance carbon economy, using our advisory and Δ earmarked for investment toward the issuer's Framework, in 2022 we facilitated £25.5bn of financial expertise to help them navigate decarbonisation goals. green financing, reflecting our ability to capture this period of extraordinary change. the opportunities from the transition. Investor reaction was strong for the nearly After a strategic review of our capabilities, Our objectives $500m offering, which was oversubscribed market demand and growth opportunities, in and priced at a tight discount relative to the • Using our financial and capital markets December we announced a new target to size of the deal. expertise to support the scale-up of low- facilitate $1trn of Sustainable and Transition carbon technologies, infrastructure and The proceeds of this offering are designated Financing between 2023 and the end of 2030. capacity to the construction of a 311 MW wind energy In addition, we also announced that we will be • Supporting clients to decarbonise by facility, as well as additional renewable and providing financial advice and finance, increasing our investment into global climate- battery storage projects. including supporting the transition towards tech start-ups through our Sustainable Impact a low-carbon economy Capital portfolio to £500m by the end of 2027, • Continuing to develop green and As noted in last year's Annual Report, we sustainable banking products, including strengthened our risk and control governance, green mortgages, bonds, loans and Green financing facilitated (2018-2030) recognising climate as a Principal Risk. investment funds eligible under our updated £bn Barclays’ Sustainable Finance Framework £89m Evolution in 2023 and beyond • Investing in sustainability-focused start-ups Aligned to our new $1trn target, we will continue invested through our Sustainable 62.2 25.5△ with growth potential to invest in our business, with the aim of creating Impact Capital Programme 87.8 • Continuing to make progress to achieve our a centre of excellence for sustainable finance ambition to become a net zero bank by within the CIB, delivering a fuller suite of Progress from 2018 to 2021 2022 progress n n 2050, including aligning all of our financing to products, solutions, and expertise to clients as Total achieved to date Against a target of £100bn by 2030 n n the goals and timelines of the Paris they navigate the transition towards a low- £2.6bn Agreement, consistent with limiting the carbon economy. increase in global temperatures to 1.5°C Green home mortgages Notes: In the next phase of our Sustainable Impact a $4-6trn as referenced at COP27 at unfccc.int/documents/624444 as issued since 2018 • Continuing to reinforce our social and Capital investments we expect will see an well as the United Nations Environment Programme - Emissions Gap environmental policies through our Barclays was one of the first major lenders to launch Report 2022 at unep.org/resources/emissions-gap-report-2022. enhanced focus on decarbonisation governance a Green Mortgage in 2018 and in January 2022, Δ 2022 data subject to independent Limited Assurance under technologies which are enabling the transition ISAE(UK)3000 and ISAE3410. Current and previous limited assurance we announced the launch of Green Home scope and opinions can be found within the ESG Resource Hub for Buy-to-let Mortgages within carbon-intensive sectors, particularly further details: home.barclays/sustainability/esg-resource-hub/ carbon capture and hydrogen technologies. reporting-and-disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 16 report information sustainability report Governance review review statements Annual Report 2022 Section 172(1) statement How does the Board engage with stakeholders? Throughout the year, the Board engages directly and indirectly with stakeholders to ensure it has a How the Board has comprehensive understanding of the impact of the Group's operations on key stakeholders, as well as their interests and views. This engagement, both directly and through regular reports from individual business areas and key Group functions ensures the Board is well-versed on key issues to enable the regard to the views Directors to comply with their legal duty under Section 172(1). Read more on how Barclays engages with its + stakeholders on pages 21 to 22. of our stakeholders Engagement in action The Directors have acted in the way that they See pages 17 to 20 below to find out about how the Directors have had regard to the considered, in good faith, would be most likely to matters set out in Section 172 when discharging their duties, and the effect of those considerations in reaching certain decisions taken by them in the context of: promote the success of the Company for the benefit of its members as a whole and this section forms our Section 172 disclosure, describing how, in doing so, the Directors considered the matters set out in The Board’s Section 172(1)(a) to (f) of the Companies Act 2006. response to the Over-issuance of Securities by BBPLC Supporting our Responding customers, clients, to the impacts of colleagues and the Russian invasion communities through of Ukraine challenging times Say on Climate: Understanding the views of our shareholders and other stakeholders in relation to The Directors provide this statement setting out how they have our climate had regard to the matters set out in Section 172(1)(a) – (f) of the strategy Companies Act 2006 when performing their duty to promote the success of the Company under Section 172. For further details of the key activities of the Board in 2022, refer to + page 154 of our Governance report in Part 3 of the Annual Report.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 17 report information sustainability report Governance review review statements Annual Report 2022 Section 172(1) statement (continued) Due to an SEC settlement order in 2017, at the time the 2019 F-3 was filed and the Predecessor Shelf was amended, BBPLC had ceased to be a 'well known seasoned issuer' (or WKSI) and was required to register upfront a The Board has supported fixed amount of securities with the SEC . The Board’s response to the When management became aware of the the creation of a Group-wide Over-issuance Over-issuance of Securities, the matter was of Securities escalated to senior management and to the by BBPLC Board, and Barclays’ regulators in the US and the programme, seeking to identify UK were notified. As part of its response, the Board considered both the immediate impact of issues and lessons learned. the Over-issuance of Securities, and the underlying causes of this issue. The securities issued in excess of the registered The Board has worked alongside management amounts were considered to be ‘unregistered The Over-issuance of Securities also underlined this year to assess and respond to the Over- Among the principal causes of the Over- securities’ for the purposes of US securities law to the Board the need to continue to focus on issuance of Securities. issuance of Securities were, first, the failure to and certain offers and sales of these securities embedding Barclays' Values and Mindset at all identify and escalate to senior executives the The Group operates a structured products were not made in compliance with the US levels of the organisation to achieve operational consequences of the loss of WKSI status and, business in BBPLC, through which it issues Securities Act of 1933, which requires that and controls excellence. secondly, a decentralised ownership structure structured notes and exchange traded notes to offers and sales of securities be registered Further, the Board has supported the creation for securities issuances. customers in the US and elsewhere. In March unless there is an exemption from registration. of a Group-wide programme, established by the The Review further concluded that the 2022, management became aware that BBPLC This gave rise to rights of rescission for certain Group Chief Executive. This programme will occurrence of the Over-issuance of Securities had issued securities materially in excess of the purchasers of relevant securities under US seek to identify issues and lessons learned was not the result of a general lack of attention amount registered under BBPLC's shelf securities laws. As a result, BBPLC elected to across the Group's remediation initiatives to to controls by Barclays, and that Barclays’ registration statement on Form F-3, as declared conduct a rescission offer, as approved by the help ensure that Barclays is consistently management has consistently emphasised the effective by the SEC in August 2019 (2019 F-3). Board, to eligible purchasers of relevant excellent, in customer and client service, in importance of maintaining effective controls. Subsequently, management also became aware securities. operational capability and in financial The Board has worked to address the root of issuances in excess of the amount registered performance, with all activities underpinned by a cause and impacts of the Over-issuance of Barclays also commissioned a review led by under BBPLC's prior shelf registration strong risk management culture. Securities, including through the Review, and external counsel of the facts and circumstances statement (the Predecessor Shelf). deeply regrets its occurrence. relating to the Over-issuance of Securities and, Read more about the work of the Board and its + among other matters, the control environment Committees in Part 3 of the Annual Report Page 141 related to such issuances (the Review). The Find details of the impact of the Over-issuance Board then considered carefully the outcome of of Securities on remuneration in Part 3 of the Annual Report the Review which concluded that the Over- Page 197 issuance of Securities occurred because Read our Shareholder Q&A on the Over-issuance of Securities in Part 3 of the Annual Report Barclays did not put in place a mechanism to Page 188 track issuances after BBPLC became subject to a limit on such issuances, as a result of losing WKSI status.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 18 report information sustainability report Governance review review statements Annual Report 2022 Section 172(1) statement (continued) Throughout 2022, the Board Risk Committee In November we expanded our engagement, In November, we also awarded junior colleagues maintained close oversight of the Group's launching a nationwide campaign and sending in Germany a one-off payment of €2,000 as that ongoing review of the retail and business 13.5 million segmented emails to our customer was more appropriate under local rules. banking portfolios to identify areas of stress base, directing them to our cost of living content. The Board, through the Board Remuneration where customers and clients might be facing With specific reference to our Business Banking Committee, continued to have regard to the financial pressures. The Committee also Supporting our clients, many of whom are also facing financial impact of the current macroeconomic considered the actions taken to provide customers, clients, pressures, not least from increased operating environment as it reviewed pay across the support, balancing our duty to lend responsibly colleagues and costs and rising wages, we have delivered over organisation during the year-end cycle. More alongside the need to support customers and communities through 600 'Business Health Pledge Masterclasses', information can be found in the Remuneration clients who might be struggling in this current challenging times talking to small businesses about the issues report within the Annual Report and the Barclays challenging environment, particularly those who impacting them. PLC Fair Pay Report 2022. are characterised as vulnerable. During 2022, In response to unusually large increases to living In monitoring our response to the increased the Board has also received updates and costs experienced by our UK colleagues, we cost of living, we are working with a wide range discussed with management the measures brought forward part of the 2023 pay increase, of stakeholders – including the FCA, the UK being taken across the Group to support our awarding 35,000 UK-based junior colleagues a Government and our peers – to ensure our stakeholders, some examples of which are The Board is acutely aware of how current £1,200 salary increase effective from August customers and clients are supported during described below. inflationary pressures are impacting our 2022, ahead of our annual salary review. In these difficult times. This includes consistent, customers’ and clients’ financial wellbeing, and For those customers who are already facing January 2023, Barclays worked closely with industry-wide communications, where that a 'one size fits all' approach is not financial hardship, we have increased resource Unite the Union to agree a 2023 UK pay deal appropriate, so that all customers and clients, appropriate. The impact of high inflation and within our Barclays Financial Assistance (BFA) which, combined with the August 2022 irrespective of who they bank with, can know increasing interest rates, coupled with rising team, which provides a range of support to increases, brought the total average salary what to expect from their financial services energy costs are creating financial pressures customers, including referrals to debt support increase for our lowest paid colleagues up to provider. across wider society. The Board recognises charities, and targeted forbearance. For 11%. By doing this we ensured that our We also remain committed to supporting the that customers and clients have different customers who may start to struggle, we are minimum rate of pay in the UK remains well financial health and literacy of our communities. needs, and throughout the year received regular proactively monitoring their financial resilience ahead of Living Wage Foundation benchmarks. Our LifeSkills programme is at the heart of this reports on the work undertaken across the in order to identify when and where targeted Similarly, we brought forward part of the 2023 work and this year we have evolved the Group to support each of them. In September, support might be required (including contacting pay increase for our most junior colleagues in programme, partnering with organisations like the Board met directly with a delegation of FCA c.200,000 customers each month to offer pre- Belgium, France, Ireland, Italy, Luxembourg, the Trussell Trust which work with local senior management where, among other emptive support before they miss a payment). Netherlands, Portugal and Spain, awarding them communities to help those most in need, matters, the Group’s response to the increased Recognising the pressures faced by our €1,500 effective 1 November 2022. building awareness of the help available to cost of living and the pressure this has placed on customers, in August we expanded our Money people facing financial difficulties, increasing our customer base was discussed. Management and Money Worries hubs to include access to the support they are entitled to and a Cost of Living focus, with improved navigation helping them maximise their incomes. to help direct customers to relevant content, to The Board will keep the overarching situation guide and help them better understand and under close review in order to ensure that manage the impact of rising inflation and interest Barclays continues to play its role in supporting rates on their personal finances. our customers, clients, colleagues and our communities through these challenging times.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 19 report information sustainability report Governance review review statements Annual Report 2022 Section 172(1) statement (continued) Stakeholder feedback was received on a range Stakeholders also asked about the impact of the • proposed 2030 emissions intensity reduction of matters including: conflict in Ukraine within the context of just target ranges for Cement, Steel and Power, and absolute emissions reduction targets for transition, and in relation to our approach to • the evolution of Barclays’ fossil fuel policies, in energy security. The Board received a series of Energy; and particular the phase out of thermal coal updates on the feedback which followed the financing; • new operational emissions ambition and Say on Climate: engagement with investors and stakeholders updated operational targets, further details of Understanding the • Barclays’ oil sands policy; more broadly. which were to be included in the Barclays’ views of our shareholders • our 2030 target-setting, including the In February 2022, the Board reviewed a report Climate Strategy, Targets and Progress 2022 and other stakeholders o integration of 1.5 C aligned scenarios such as on the 2021 progress against Barclays’ climate document, which would form the basis of the in relation to the IEA Net Zero 2050 scenario in our commitments and was asked to endorse a Say on Climate advisory vote. our climate financed emission targets and the use of number of proposals: strategy ranges for certain sectors; The Board noted the varying feedback received • revisions to Barclays' thermal coal policy from investors and other stakeholders • incorporation of other greenhouse gases (including setting final exit dates with respect TM regarding the purpose and frequency of the Say including methane in our BlueTrack to the financing of thermal coal mining and on Climate vote. Acknowledging that it is methodology; coal-fired power generation); ultimately the responsibility of the Board and The Board takes Barclays' role in supporting the • green and sustainable financing targets and executive management to set the strategy of transition to a low-carbon economy very insight into how Barclays’ climate strategy is the Barclays Group, including climate strategy, it seriously. This commitment was reflected in embedded into operational practices was the Board's view, announced at the 2021 Barclays’ announcement, at the 2021 AGM, that including client engagement. AGM, that the vote should be advisory only in it would offer shareholders a ‘Say on Climate’ nature. advisory vote, whereby shareholders would be At the 2022 AGM, our Chairman spoke directly asked to vote on Barclays' climate strategy at with a number of our shareholders on a series of the 2022 AGM. This vote would serve as a questions posed by them covering topics such touchstone for Barclays as to whether the as Barclays’ climate strategy, targets and climate strategy set by the Board had the progress, green and sustainable financing, support of shareholders. The industrial revolution took over a century Barclays' involvement with and views on climate Throughout 2021 and continuing into 2022, to transform the planet, and we cannot hope to undo change, fossil fuels, fracking, deforestation, Barclays engaged with major shareholders, their renewable/sustainable energy and our ambition representative bodies, connected activist overnight its deleterious impact on the environment. to be a net zero bank by 2050. groups and other stakeholders on a one-to- The Say on Climate resolution received the one and group basis, with our Group Chairman We are still at an early stage of an important journey support of over 80% of votes cast. The Board attending a number of these meetings. This but are committed to the destination and will persevere acknowledged the spectrum of views across the included engagements with 15 of our largest share register, but was pleased that the shareholders, the Investor Forum, the to reach it. One of my foremost priorities in view of resolution was supported by such a strong Institutional Investors Group on Climate Change majority of votes cast. and ShareAction. market and risk factors is for Barclays to demonstrate progress against our net zero ambition. C.S. Venkatakrishnan Group Chief Executive

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 20 report information sustainability report Governance review review statements Annual Report 2022 Section 172(1) statement (continued) The Board viewed the Say on Climate advisory The sanctions imposed represent the most Across the financial services sector, cyber risk vote as an important part of its ongoing significant change to the global sanctions remains heightened. The Board and its engagement with shareholders and Barclays regime since the 9/11 terrorist attack in the US, Committees have heard from management on has continued to engage with shareholders requiring the Group to act at pace. The Board the measures implemented to address these and other stakeholders on our climate strategy received reports on the significant work done by concerns to ensure that Barclays is, and will and ambitions following the 2022 AGM. colleagues in the compliance and legal remain, well placed to react in the event of any Responding functions, along with other areas of the such attack, which could target Barclays directly Since the AGM, in September 2022, the Board to the impacts of business, to ensure that Barclays was able to or the wider financial services infrastructure. reviewed a further proposal to strengthen the the Russian invasion take swift action to respond to these sanctions. thermal coal policy and endorsed the proposal The Board Risk Committee has also received a of Ukraine The response was aimed at reducing the to update the US thermal coal power phase- briefing on the operational and risk learnings potential for financial crime, directing out date from 2035 to 2030 and the Board has from the Group's response to this situation in substantial resources into the management of also reviewed a change to the oil sands policy order that the Group is best placed to respond potential conflicts between sanctions regimes and new green and sustainable finance should conflict arise in another jurisdiction as new sanctions were rolled out across targets. The Board continues to receive requiring similar actions to be taken. different jurisdictions, obtaining required updates on the evolution of our climate The Board and senior management will continue licences and playing a strategic role on policy The Board has closely overseen the Group’s strategy and progress against targets. to monitor the situation and its implications for developments and sanctions implementation. response to the Russian invasion of Ukraine. In line with our commitment in the Barclays’ the Group and our stakeholders. The impacts of the war are numerous and With regard to the management of risk Climate Strategy, Targets and Progress 2022 widespread, with implications for Barclays, its associated with the Russian invasion of Ukraine, document to provide further updates on clients and customers and other stakeholders. the Board received updates on operational risk, targets for sustainable financing in 2022, the Recognising the urgency of situation, the Group credit risk and market risk exposures and on Board was also updated on Barclays' new Chairman convened a Board meeting in mid- actions taken to reduce these, manage funds target to facilitate $1trn of Sustainable and March 2022 to assess developments and the and de-risk positions effectively. Transition Financing between 2023 and the Group’s response. Since then, the Board and its end of 2030. Committees have received ongoing updates. More on climate strategy Notwithstanding that Barclays has no onshore + Page 15. presence in Ukraine or in Russia, this situation has required a multi-faceted response by Barclays, with the Board and its Committees overseeing a number of matters including the The impacts of the war are Group’s response to the rapidly imposed global sanctions, the management of the Group’s numerous and widespread, with financial exposure to Russia-specific market, credit and liquidity risks and management actions taken to reduce the Group’s exposure implications for Barclays, to the heightened risk of cyber attack. its clients and customers and other stakeholders.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 21 report information sustainability report Governance review review statements Annual Report 2022 Engaging with our stakeholders Listening and responding to our stakeholders Barclays aims to create sustainable value for all those we serve, through the economic cycle. Colleagues Customers and clients How we responded How we responded For customers, we have developed the The 2022 Your View survey results showed Barclays Money Management Hub, progress on colleague engagement as well as containing advice on how to better against the primary cultural topics we understand their spending behaviours and measure. improve their financial wellbeing. • We brought forward part of the 2023 pay We continued to develop both our personal increase, awarding 35,000 UK-based junior and corporate apps, to provide our colleagues a £1,200 salary increase customers and clients with the tools required effective from August 2022, ahead of our to effectively manage their finances and annual salary review We are committed to serving our Our people and culture are our greatest transactions. The newly launched Barclays customers' and clients' best interests, assets. Together, they make a critical • During 2022, we made enhancements to Corporate app is now available in 150+ and engage with them regularly so difference to our success, and our drive further global consistency in how we countries. we can understand how best to adapt investment in our colleagues strengthens support our colleagues with disabilities and our products and services to their and protects our culture. We are developing a Client Transition health conditions, providing them with evolving needs. Framework, a methodology that allows us to greater control over their own individual evaluate our corporate clients' current and requirements, as well as improving the expected future progress in transitioning to a processes to self-serve and get the right What did they tell us? What did they tell us? low-carbon economy. The framework equipment they need for office and/or We engage in a wide variety of ways, including We have an established colleague comprises both a quantitative and qualitative home working running regular surveys, analysing customer engagement programme across a number of component to assess clients' trajectory • We supported colleagues with their next complaints, and drawing on data from millions platforms. These provide us with a robust against our targets and benchmarks, and the career move within Barclays, with 43% of of individual transactions and personal body of information and ensure we are ambition and achievability of their plans, vacancies being filled by internal customer interactions. attuned and listening to the different allowing us to engage with them at a more candidates, helping to retain our diverse perspectives, and responding accordingly to • As customers face a rising interest rate granular level for their transition financing and inclusive workforce and mitigate colleague feedback. Further detail can be environment and inflationary cost needs. redundancies found on page 32. pressures, they have asked for more support and advice on their finances • Our colleagues told us that with rising costs, they needed financial support • Customers are looking for full integration of services to ensure seamless digital • As colleagues embraced hybrid working, 90% 150+ transactions they required the right tools to undertake of colleagues believe their countries covered by their roles • Clients are asking for advice and finance in line manager supports our Corporate app support of their efforts to decarbonise their • Our colleagues wanted support to be able their wellbeing operations. to develop their own careers

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 22 report information sustainability report Governance review review statements Annual Report 2022 Engaging with our stakeholders (continued) Investors Society How we responded How we responded • We provided further detail on our Markets We engaged with stakeholders at our 2022 performance, more granular transactional AGM, through our 'Say on Climate' advisory activity and additional insights into interest vote and attended COP15 on biodiversity as rate sensitivity well as COP27 on climate change. We engaged with NGOs, such as ShareAction, by • We delivered on our priority to return capital participating in their recent survey on key to shareholders, with an appropriate mix of climate and biodiversity metrics. returns amounting to a total capital return equivalent to c.13.4p per share We spoke to our suppliers and promoted the Engaging with our shareholders and other importance of diversity, equity and inclusion, Deep and thoughtful engagement with the • We listened to feedback on our Say on market participants has helped us to as well as the importance of our focus on numerous individuals and interest groups Climate advisory vote at the 2022 AGM as understand their priorities and drive modern slavery across our supply chain. that represent our wider society help us to well as other factors, published new a $1trn better outcomes for all stakeholders. shape our approach and ultimately deliver Sustainable and Transition Financing target, In support of the communities in which we long-term sustainable value. and are announcing in this report an operate, through our LifeSkills programme Δ updated policy on coal-fired power we have reached 18.1 million people since financing 2013. Through our Unreasonable Impact programme, since 2016 we have supported What did they tell us? • Investor Relations helped establish ESG What did they tell us? 269 ventures that are helping to deliver engagement with investors, which We continue to enjoy productive bilateral We engaged with a wide range of innovative solutions to pressing social and contributed to key investment decisions engagement with institutional equity and fixed stakeholders, including non-governmental environmental challenges. income investors, rating agencies, as well as • We continued to enhance transparency in organisations (NGOs) and others where our private shareholders. We were able to our external disclosures appropriate. We participated in various further our efforts in hybrid meetings, Notes sustainability forums including global and • Our efforts were recognised through Δ 2022 data subject to independent Limited Assurance under enabling deeper engagement with investors regional industry initiatives. ISAE(UK)3000 and ISAE3410. Current and previous limited Barclays winning the PwC award for Building irrespective of their individual location. In assurance scope and opinions can be found within the ESG Public Trust, and the Investor Relations Resource Hub for further details: home.barclays/sustainability/ Major themes we heard from them included: 2022, the focus of our dialogue has been: esg-resource-hub/reporting-and-disclosures/ team being shortlisted for best IR team at ▪ wanting to see continued progress, targets ▪ the factors driving current performance and the IR Society awards and development of the global climate expectation of further momentum from agenda, including appropriate social and changes in the macro economic environmental governance environment $1 trillion ▪ capital return to shareholders ▪ support for communities facing hardship c.13.4p target announced in December 2022 to ▪ continued engagement and progress on ▪ an increased focus on nature and Total capital return facilitate Sustainable and Transition the climate agenda biodiversity equivalent per share Financing by the end of 2030 ▪ the need for clearer, transparent ▪ transparency and harmonisation of data messaging on business performance

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 23 report information sustainability report Governance review review statements Annual Report 2022 Key performance indicators Measuring success We strive to manage the environmental and societal impact of our business, helping stakeholders access a prosperous and for all sustainable future. We aim to build trust by offering Colleagues stakeholders + innovative products and services, with Page 31 an excellent customer and client We analyse a broad range experience, increasing advocacy. Customers and clients of financial and non- + Page 26 financial measures to support the execution of our strategy. We use a number of sources to assess the success of our strategy and provide a balanced review of our performance during the year, taking into consideration financial and non-financial metrics across all stakeholder groups. A number of these performance measures Our ambition is to generate attractive and We promote and maintain a diverse are also linked to the way we pay our sustainable returns through the economic cycle, and inclusive workforce within a colleagues, including at executive measured through our Group targets. positive, values-based culture. management level. For more information, please see the Directors’ Remuneration Society Investors + + Report in Part 3 of the Annual Report. Page 39 Page 45 In order to reflect our strategic priorities, we have further refined the performance metrics we use, most notably with respect to our societal stakeholders. Key measures used in our 2022 assessment include the metrics reported on this page, as well as the broader discussion of our performance on the subsequent pages of this report.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 24 report information sustainability report Governance review review statements Annual Report 2022 Key performance indicators (continued) Customers and clients Colleagues “I would recommend Barclays to people Barclays UK Net Colleague engagement Barclays UK complaints excluding PPI b a a I know as a great place to work” (%) (%) (% movement year on year) Promoter Score (NPS) 2022 2022 2022 2022 85 11 9 -17 84 82 2021 2021 2021 2021 11 -17 82 9 2020 2020 2020 2020 84 15 -32 82 5 A question in the Your View employee survey The NPS is a view of how willing customers This is a measure derived from responses to We measure our volume of complaints and that measures colleague advocacy. are to recommend our products and services three colleague engagement questions in the review root causes to inform what changes we to others. Your View survey. should make to our products and services to improve them for customers. “I believe that my team and I do a good job Corporate and Investment Bank revenue Consumer, Cards and Payments US Females at Managing Director b of role modelling the Values every day” (%) ranks and market shares (#,%) customer digital engagement (%) and Director level (%) 2022 #6 2022 29△ 92 7.3 2022 #6 3.1 2021 28 92 2021 #6 2020 2020 3.6 6.4 26 94 2021 #6 6.4 3.6 A question from the Your View employee survey Metric reflects % of females at Managing #6 showing colleagues’ connection to the Barclays Director and Director level within Barclays, 3.3 Metric shows percentage of digitally 6.7 2020 #7 Values which underpin the desired culture. against 2025 ambition of 33%. active Consumer, Cards and Payments 6.4 3.6 c US consumers. Global Markets revenue ranking and share n d Dealogic Investment Banking global fee ranking and share n demonstrating our performance vs peers. Notes: a As part of our efforts to improve our measurement frameworks, we have transitioned to a new three question engagement model. This was after Notes collecting four years of concurrent data and running analysis to affirm the new model’s validity. Historic figures have been updated to reflect a ®Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & results from the new three question model. Company, Inc., Fred Reichheld and Satmetrix Systems, Inc. b KPI adjusted in line with new engagement model. The previous KPI “I would recommend Barclays as a good place to work” would have been 86% b Excluding new Gap customers. (2021:83%). c Global Markets market share for Barclays is based on our share of Top 10 banks reported revenues. Peer banks include BoA, BNP, CITI, CS, DB, Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and GS, JPM, MS and UBS. opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/ reporting-and- d Dealogic for the period covering 1 January 2020 to 31 December 2022. disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 25 report information sustainability report Governance review review statements Annual Report 2022 Key performance indicators (continued) Society Investors a a Operational GHG emissions (market-based) Group return on tangible equity (RoTE) Common Equity Tier 1 (CET1) ratio Social, environmental and sustainability- (tonnes CO e) (%) (%) linked financing facilitated (£bn) 2 2022 2022 2.7 1.2 13.9 10.4 2022 2022 21,919 54.3△ 14.9△ 2021 2021 15.1 13.1 36,842 69.2 2021 2021 2020 2020 15.1 3.2 9.9 2020 2020 8.3 71,038 60.9 Notes: Notes: The Group maintained a strong CET1 ratio of Group RoTE was 10.4% in 2022, down on prior Total gross Scope 1 and 2 (market-based) emissions generated from Financing in social and environmental segments aligned to Version 3 of 13.9% in 2022, within the Group target range of year from the normalisation of credit impairment Barclays’ branches, offices and data centres, including all indirect Barclays’ Sustainable Finance Framework. Version 4 was released in emissions from electricity consumption. December 2022 upon announcing new sustainable financing targets. 13-14%. charges and higher litigation and conduct costs, partially offset by income growth across all Our current estimate of our financed TM operating divisions. emissions based on our disclosed BlueTrack LifeSkills: Number of people upskilled methodology (millions) The Group targets a RoTE of greater than 10.0% in 2023 in line with our medium-term target. Cumulative 2022 2.74△ performance vs. Portfolio December 2022 baseline 2.9 2021 a a Δ Total operating expenses Cost: income ratio 51.7 MtCO e 2 2020 2.3 Energy -32% (£bn) (%) (Absolute emissions) Achieved the target to upskill 10 million people Δ 302 KgCO e / MWh 2 Power -9% 2022 between 2018 and 2022. 67 (Physical intensity) Notes: Δ 67 2021 0.610 tCO e / t 2 Number of people participating in the Barclays LifeSkills programme Cement -2% (Physical intensity) focused on employability skills. 2020 64 3 Δ 1.732 tCO e / t 2 LifeSkills: Number of people placed Metals (Steel) -11% (Physical intensity) into work The Group is targeting a cost: income ratio Group operating expenses increased 14% to Δ 167.2 gCO e / km Automotive 2 percentage in the low 60s in 2023 and below N/A £16.7bn including £1.6bn of litigation and manufacturing (Physical intensity) b 60% over the medium-term. conduct charges . Excluding litigation and △ Δ 2 32.9 kgCO e / m Residential real 2 conduct charges, costs were £15.1bn, up 6%, 77,200 N/A estate (Physical intensity) reflecting the impact of FX and inflation. 2021: 77,100 2020: 49,700 Date baseline set: December 2020 n Achieved the target to place 250,000 people December 2021 n December 2022 into work between 2019 and 2022. n Notes: Notes: Number of people placed into work following training provided by Energy and Power cumulative performance assessed against a 2020 Barclays LifeSkills partner organisations. baseline whereas Cement and Steel are against a 2021 baseline. Further details on reducing our financed emissions can be found on page Δ 2022 data subject to independent Limited Assurance under 87 including our approach to reporting financed emissions data. ISAE(UK)3000 and ISAE3410. Current and previous limited Notes assurance scope and opinions can be found within the ESG a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Impact of the Over- Resource Hub - for further details: home.barclays/sustainability/ issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. esg-resource-hub/reporting-and-disclosures/ b Litigation and conduct in 2022: £1,597m, which includes £966m related to the Over-issuance of Securities, 2021: £397m and 2020: £153m.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 26 report information sustainability report Governance review review statements Annual Report 2022 Customers and clients Barclays UK NPS The importance of delivering value (#) for our customers and clients Supporting our Customers and clients are at the heart of our 2022 11 business. For us to deliver value for them, we 2021 11 need to continue building confidence in our customers and clients organisation, our products and services, understand and anticipate our customers and Barclaycard NPS clients' needs, and use our expertise to become a Barclaycard NPS continued to trend upwards trusted partner. We seek to understand our customers' and clients’ throughout 2022 to +12, in line with the market, In order to understand those needs and measure as usage and availability of credit became more expectations and aspirations, and develop products our progress towards delivering on them, we use important to customers. a range of non-financial measures. and services which support them, especially during Barclaycard NPS Net Promoter Score (#) difficult economic conditions. We believe that Net Promoter Score® (NPS) is used widely 2022 transparency of information in our products and 12 across industries to measure the strength of customer relationships. We track NPS to identify 2021 4 services is key to empowering consumers to make both our strengths and where there is room for improvement. This, combined with our sound financial decisions. US Consumer Bank Digital tNPS transactional NPS data, becomes a powerful tool The Digital tNPS is a newly tracked metric for US to inform how we should develop our services Consumer Bank which is measured at the digital and products in the future, and benchmark our journey level. performance against the rest of the market. This is a recognised and respected industry Barclays UK NPS measure of customer experience. Digital tNPS is The Net Promoter Score (NPS) for Barclays UK Highlights trending positive, attributed to increased web was relatively stable throughout 2022 at +11. and app ease of use. This reflects the returning capability to service our customers after previous declines during the US Consumer Bank Digital tNPS pandemic. However, we recognise that we need 11 44 % to continue to push forward our initiatives to Barclays UK Net Barclays US Consumer Bank Care Target: 55 and over drive improvements in customer experience, Promoter Score (NPS)* Net Promoter Score 2022 including improving and expanding our digital a 59.8 2021: 11 2021: 43.4 journeys. −17 74.1% Barclays UK complaints excluding PPI Consumer, Cards and Payments US Notes b (% movement year on year) customer digital a Care tNPS provides an accurate measure of customer sentiment across our Fraud, Dispute, Credit and Care channels and replaces the 2021: -17% 2021: 71.8% relationship NPS reported in 2021 Annual Report. b Excluding new Gap customers.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 27 report information sustainability report Governance review review statements Annual Report 2022 Customers and clients (continued) we should make to our products and services to Barclays Bank PLC (BBPLC) In 2022, we maintained our performance of prior Consumer, Cards and Payments US a improve them for customers. years, illustrating the continued success of the BBPLC's reportable complaint volumes in 2022 customer digital engagement CIB for the clients we work for. In Markets, we increased 2% in comparison to 2021. This Through doing this, we hope to see improved Digital engagement is used as a KPI to assess the maintained our ranking of 6th and grew share by reflects the return to normality after the customer satisfaction, improved reputation in performance of our digital value proposition and 90bps, a particularly strong result given coronavirus pandemic which saw business the industry and reduced costs. the quality of the user experience. We measure challenging market conditions and driven by the closures/restrictions on non-essential business usage over a 90-day period, as a percentage of Barclays UK excellent performance of our FICC businesses. in 2021. Volumes of transactions and customer the total of active customers, to illustrate the In Barclays UK, as in previous years we continue interactions increased in 2022 and whilst In Banking we solidly maintained our overall interactivity with our platforms and uncover to be focused on improving the overall customer complaints saw a small increase, the complaints ranking of 6th in a year of suppressed potential use cases for our online and app experience by identifying and supporting the received per 1,000 accounts held reduced during dealmaking. channels. This KPI reflects the general health of removal of the root causes of customer 2022 from 6.8 to 6.1. the digital experience, and allows us to look at Corporate and Investment Bank revenue complaints. Complaints across Barclays UK in BBPLC remains focused on improving the overall how this is performing and what issues, if any, we ranks and market shares (#,%) 2022 have further reduced on those received in customer experience by identifying and should address. 2021, with volumes excluding PPI complaints #6 supporting the removal of the root causes of 7.3 We launched significant digital engagement decreasing 17% YoY (18% including PPI). This is 2022 #6 customer complaints where possible. 3.1 features and technology advancements. despite an 8% rise in interactions across our Highlights included Gap ecommerce integration, channels which therefore lowers the rate of #6 Barclays Bank PLC complaints 6.4 2021 asynchronous chat for servicing, card delivery complaints per 10k interactions annually by 24%. (%) #6 3.6 tracking, payments journey enhancements, as This has been achieved through continued Global Markets revenue ranking and share 2022 n well as ongoing human-centred UX +2 stability of our platforms alongside regular and a Dealogic Investment Banking global fee ranking and share n improvements. direct communications with customers during 2021 -21 demonstrating our performance vs peers. times of change, particularly in relation to our The addition of the Gap partnership initially Notes: service model. Some acute pressures exist in Notes decreased the overall digital engagement rate a Reportable reflects the FCA’s definition of a complaint which must be a Dealogic for the period covering 1 January 2020 to 31 December areas impacted by the economic changes seen reported to the FCA on a half-yearly basis and published externally on the due to retail segment behaviour differences. 2022. Barclays website. in 2022 with volumes rising across Mortgage Excluding Gap, the rate increased YoY to 74.1%. complaints as customers rushed to find the right Further details can be found at: We have adopted a new performance measure + fca.org.uk/data/complaints-data rates for them in light of the Bank of England Consumer, Cards and Payments US for Global Markets based on its share of reported a interest rate changes and unpredicted demand customer digital engagement revenues of the Markets businesses of the top Corporate and Investment Bank for Mortgages with rate switch applications up (%) 10 banks. The peer group contains BoA, BNP, revenue ranks and market shares 30% in the second half of the year. CITI, CS, DB, GS, JPM, MS and UBS. Where any of 2022 74.1 Revenue ranks and market shares are a good Barclays UK complaints excluding PPI the peer group have not published results when indicator to monitor success. We use them to (%) we report, we use the consensus estimate for 2021 71.8 measure how successful our Corporate and their quarterly performance. While 2022 -17 Investment Bank has been, and where there is acknowledging accounting treatment Notes a Excluding new Gap customers differences in peer reporting (e.g. treatment of the ability to progress. 2021 -17 cost of income) and inclusions of business lines Complaints data By using Dealogic Investment Banking global fee We received a significant volume of PPI-related claims leading up to the we do not operate in (e.g. Commodities), we FCA deadline of 29 August 2019. As such, the underlying trend provides a ranking and share, and a comparison to global The FCA publishes complaints information in have adopted this measure as it provides the more meaningful comparison. peers share of reported revenues for Global relation to reportable complaints across the UK most consistent and timely view of the Markets, we can assess our relative performance financial industry every six months and it is a Further details can be found at: home.barclays/citizenship/our performance of our Global Markets business + reporting-and-policy-positions/UK-complaints-data versus a defined peer group, clearly and good measure of how well UK institutions are relative to our global competitor set. The transparently. driving customer outcomes. We measure our measure is a simple and effective way of volume of complaints, tracking against goals and understanding relative performance on a global reviewing root causes to inform what changes scale.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 28 report information sustainability report Governance review review statements Annual Report 2022 Customers and clients (continued) Supporting customers through Barclays UK Barclays has a large retail presence in the UK, offering a wide range of products and services to c.20 million customers through Barclays UK. We recognise that there is a heightened need to help customers who may be experiencing financial vulnerability due to the current inflationary pressures on household budgets. We are endeavouring to support customers during these challenging times, by focusing on four key areas: 1. using data analytics to determine which customers are in need of support and the appropriate type of support; 2. engaging those customers impacted to increase awareness of products, tools and support available; 3. understanding customers’ needs and developing solutions to provide greater support; and and save money through budgeting via our To better support financially vulnerable • Cost of living support by proactively contacting ® 4. ensuring colleagues have, and are aware of, Barclays Money Mentors . customers, we are enhancing our Barclays' over 13.5 million customers in 2022 with the financial health tools to enable them to tools, training, support and systems, continuing targeted emails based on their financial needs, Our early intervention strategies assess all support customers. to improve our ongoing support when providing support and guidance on managing customers who hold a retail product to Barclays defines vulnerability as any existing or customers need us the most. their finances, offering them help ranging from determine if we think they would benefit from potential customers who, due to their personal budgeting to direct financial support and our support. These customer engagement Our key measures in 2022 have included: circumstances e.g. financial difficulty, long-term guiding them towards dedicated functions strategies are bank-initiated and largely focused • Extending unsecured borrowing solutions for medical conditions, or other personal such as Barclays Financial Assistance (BFA) or around proactive communications, based on consumers allowing them to borrow money circumstances, are especially susceptible external agencies such as Step Change. sets of customer behavioural triggers, whilst we without offering up security based on a major to detriment. also support customers who initiate contact asset, while being protected by the Consumer • Providing knowledge and expertise through Our aim at Barclays is to offer an accessible, with us. Credit Legislation and the FCA’s Consumer our colleagues with the aim to offer our empathetic and inclusive service for our Our primary focus is to support customers Credit Sourcebook. customers more tools and features to customers, including for those who may typically whose account behaviours are showing signs educate them on managing their money, face barriers to accessing banking services, such Further details can be found on page 154 in relation to of possible early financial difficulty, and look to including by giving them guidance on how to + Consumer Duty within the Governance section in Part 3 of as customers living with disabilities, complex help customers maintain or regain control of the Annual Report use our digital platforms via the Digital Eagles, needs or experiencing difficult life events. their finances. or supporting them in their understanding of financial products, how to build financial plans,

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 29 report information sustainability report Governance review review statements Annual Report 2022 Customers and clients (continued) Some of the other ways we seek to support report published earlier this year, in conjunction Economic crime and scams Domestic abuse vulnerability and provide responsible and with Barclays, which includes Barclays’ Scams We have an established programme to educate To support customers impacted by domestic inclusive banking are set out below: Manifesto, outlining specific and actionable customers and prevent them from falling victim abuse, we have partnered with Refuge, a UK recommendations. Access to banking to scams. charity providing specialist support for women If you suspect that you have been approached by and children experiencing domestic abuse. Customers are looking for more convenient, fraudsters please tell the FCA using the share fraud We have also launched a new Fraud and Scams hub This enables us to direct those impacted by reporting form at fca.org.uk/scams simpler ways to bank that fit their lives, including on the Barclays website, which hosts a variety of domestic abuse to expert advice and assist banking digitally: our mobile app has over 10.5 You can also call the FCA Helpline on 0800 111 6768 or content and resources to help the public learn how through Action Fraud on 0300 123 2040 survivors with the opening of bank accounts million active users. We are continuing to help to keep themselves safe. and gaining access to banking services in deliver these solutions at pace. Frontier Economics report on Tacking Fraud and Scams: Additionally, to help keep our customers safe, + home.barclays/content/dam/home-barclays/documents/ situations where they may not have the Alongside our investment in technology news/PressReleases/Tackling-Fraud-and-Scams-An- we’ve continued to invest in multi-layered security requisite documentation. Ecosystem-Wide-Approach.pdf enabling digital customers to access tools and systems that protect against fraud and scams, products whenever they need them, we’re including ‘Confirmation of Payee’, an account In 2022, the Barclays Refuge Partnership, has Digital accessibility transforming the role of physical locations name checking service that helps to make sure been recognised at the Better Society Awards across the UK to ensure older and more payments aren’t sent to the wrong bank or building and the Charity Times Awards. We aim to ensure that our digital services are vulnerable customers can still access banking. society account. easy to see, hear, understand and use for all We have also signed up to the revised UK We have launched our own initiatives, including a customers, including those with disabilities. We introduced app ID, which allows Barclays Finance Domestic Abuse Code of Practice, cashback without purchase service and Barclays colleagues to verify to customers that they’re a which sets out how participating banks and Collectively we seek to deliver digital services Local, and we are working with other banks, the legitimate caller and not an impersonator. building societies should support customers and workplace tools that promote disability Post Office and LINK, to keep Barclays at the who are victims and survivors of economic or We are part of the ‘Do not originate’ scheme, inclusion and meet accessibility requirements heart of the community. financial abuse. created in partnership with the set out in the Web Content Accessibility Alongside these changes, we are investing in telecommunications industry, UK Finance and Guidelines (WCAG) 2.1 AA level. Homelessness multi-skilled training for our colleagues so they Ofcom, to prevent our most common inbound We continue to support those with limited The Barclays Accessibility statement are better able to serve customers in ways that helpline phone numbers from being used in a scam. + barclays.co.uk/accessibility/statement/ documentation such as homeless people to meet their needs today as well as breaking down We are also proud initial signatories of the open a basic current account. This year, the UK internal barriers to enable quicker resolution of Gambling Contingent Reimbursement Model Code, providing has seen its fastest cost of living increase in 40 customer queries. measures to help prevent Authorised Push years. Barclays has partnered with charities to Barclays understands that gambling and Further details on mobile banking vans and how to book an Payments scams taking place and building help those most impacted by the current + financial difficulty can often go hand in hand and appointment can be found at: events.uk.barclays/barclaysvan/ increased consumer protection standards for environment through dedicated financial that customers may sometimes find it hard to customers of signatory firms. inclusion support. ask for help. We have continued to work in We are founding members of Stop Scams UK, a partnership with GamCare, a UK charity which cross-industry group made up of banks, telecoms provides information, advice and support for and tech firms that have come together to seek to anyone affected by problem gambling. put an end to scams by collaborating, sharing best GamCare provided additional training for our practices and engaging with the government and specialist financial assistance teams helping regulators to make it harder for scammers to them have conversations with customers who operate. Through Stop Scams UK, we have created are impacted by problem gambling, directly a dedicated hotline for customers to call if they transferring those who need further support to think they are being targeted by a scammer. trained GamCare advisers. Further detail and evidence with regards to our Further details can be found at: + position can be found in the Frontier Economics barclays.co.uk/gambling-support/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 30 report information sustainability report Governance review review statements Annual Report 2022 Customers and clients (continued) Bereavement Accessibility & Vulnerability (A&V) Barclays UK Performance Framework Indicators Platform We continue to support customers through the Within Barclays UK, the Performance bereavement process. Throughout 2022 we Framework is in place to ensure a sustainable In July 2022 we launched a new framework have seen increased customer satisfaction commercial performance. The framework looks across Barclays UK, giving colleagues within scores in our surveys and a reduction in to mitigate the risks of inappropriate practices, Barclays the ability to record disclosed customer complaints year on year. We have an ongoing such as ensuring there is no undue pressure on vulnerability on our systems, so allowing us to programme of work to enhance the customer colleagues to sell products, which can result in provide customers with the correct level of experience across all of our channels including mis-selling. service based on their particular needs and/or physical locations and online. In particular, we adjustments. Alongside the Performance Framework we have are improving our handling and processing of introduced Performance Standards to set clear Training for colleagues documentation to make it easier for customers expectations, identify development to supply important information to us. Further Over 28,000 Barclays UK colleagues completed opportunities, and deliver sustainable enhancements are planned for 2023. the mandatory Customers in Vulnerable Barclays mortgages and performance for our customers and clients. Circumstances annual e-learning modules. The first-time buyers Further details can be found at: Basic current account training improves awareness and understanding + barclays.co.uk/what-to-do-when-someone-dies/notify-us/ In 2022, we helped almost 40,000 first-time of vulnerability for our frontline and head office Since 2015, we have been offering our basic buyers get onto the property ladder, near the colleagues. Additional training modules were Authorised users current account to individuals who may not be level achieved in 2021. We have continued to also updated with a view to greater depth of eligible for a standard account access to Barclays was one of the first in the UK to launch support customers buying their first home with understanding for colleagues on the banking, including over the counter services, a new way in connecting customers to those 95% loan-to-value mortgages through UK overarching drivers of vulnerability. access to ATMs, and digital banking and free they trust - Barclays 'Authorised Users’. Government schemes including Help to Buy and We are further enhancing our training materials text alerts to manage finances. There were over Mortgage Guarantee Schemes, and Barclays The launch of ‘Authorised Users’ in June 2022, for our colleagues in 2023, with the addition of a 660,000 Barclays basic current accounts open Family Springboard Mortgage. enables Barclays customers to digitally and ‘Threat to Life’ module to help further support at the end of 2022. instantly add someone that they trust to their The Help to Buy scheme allows first-time buyers colleagues when liaising with customers. Access to a transactional bank account enables current account to support them with spending to get on the property ladder with the help of an consumers to benefit from bill reductions Banking Made Clearer brochure on their behalf or supervising their account, This equity loan from the Government. Customers through paying by direct debit and access to empowers sometimes vulnerable - but capable put down a 5% deposit which is ‘topped up’ with We have also partnered with the British Institute cheaper goods and services on the internet, to - customers to manage their finances an equity loan of 20% (or 40% in London) to of Learning Disabilities to refresh our Banking help them along their financial journey. If their effectively with support of another, while support their property purchase. Help to Buy is Made Clearer brochure; an easier to read guide circumstances change, customers on the basic retaining full control of their account. only available on new build properties. which uses simple, clear language and imagery. current account are able to apply for a standard Further details can be found at: Our Mortgage Guarantee Scheme offers 95% Barclays current account at any time. + barclays.co.uk/ways-to-bank/authorised-users/manage- LTV mortgages which are backed by a UK account/ Government guarantee. Customers can apply Number of basic current accounts for the scheme with a minimum deposit of 5% of (#) Specialist support team the property purchase price, and it is available for first-time buyers and those looking to make We continue to support our frontline colleagues 2022 661,991 their next move on the property ladder. when handling cases of complex or extreme 642,468 2021 vulnerability through a Specialist Support Team. 2020 614,000 This ensures frontline colleagues are better equipped to support customers in vulnerable circumstances.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 31 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture During 2022, we continued to embed the We further embedded hybrid working, with W Barclays Mindset, helped colleagues to adapt to colleagues spending a mix of time between hybrid working, supported colleague wellbeing Barclays' sites and at home. We provided support Empowering and made further progress against our diversity, and practical guidance to all people leaders equity and inclusion (DEI) ambitions. Through our seeking to ensure we were balancing the needs colleague listening survey, Your View, we saw of our colleagues, alongside those of our our colleagues improved scores across all our indices. customers and clients, as well as providing colleagues with the collaboration tools and We remain committed to attracting, developing technology we believe they need to succeed in a and retaining a diverse and inclusive workforce. Our people and our culture are our greatest assets. hybrid environment. We continue to develop and Against a competitive hiring market, we hired We are committed to making Barclays a great place optimise our workspaces. 22,759 new colleagues into Barclays, and Our support for colleagues extends beyond the supported our colleagues into their next career to work, enabling colleagues to deliver strong tools and environment that we provide. We have moves through internal mobility, with 43% of evolved our Be Well programme to provide a results for our customers, clients, communities vacancies being filled by internal candidates. This holistic and inclusive perspective on wellbeing was in addition to welcoming 841 graduates, 1,190 and each other. which supports the needs of our diverse interns and 440 apprentices to Barclays workforce with a focus on: throughout 2022. To support colleague development, an average of 2.2 days/17 hours of • sustainable high performance: giving development and training was completed per colleagues the skills and knowledge to colleague in 2022, including enrolment of 1,035 enhance their physical and mental fitness; and colleagues in our flagship leadership development • supportive culture: building confidence to programmes (The Enterprise Leaders Summit, address stigma and offer support around Aspire and Strategic Leaders Programme). Mindset Indices mental health and other aspects of wellbeing We launched the Barclays Mindset in 2021, taking from financial welfare to the menopause. the best of what we learnt from our ways of working through the course of the pandemic, and sought to embed the behaviours (empower, 90% 85% 87% challenge and drive) into everyday working Empower Challenge Drive practices. In 2022, we formally incorporated this 2021: 87% 2021: 83% 2021: 84% into our hiring, performance management, reward and recognition frameworks. For further information on our Purpose and Values, please 2022 Your View survey + visit home.barclays/who-we-are/our-strategy/purpose-and- values/ 85% 92% 86% “I would recommend “I believe my team and I do Wellbeing Index Barclays to people I know a good job of role modelling 2021: 84% as a great place to work” our Mindset every day” 2021: 82% 2021: 89%

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 32 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture (continued) Our data-led approach, underpinned by our Our approach to diversity, We have five strategic priorities: 2022 highlights Wellbeing Index (now in its second year), brings equity and inclusion • Workforce diversity together actionable insights for people leaders. It We have: We launched our refreshed DEI vision and strategy • Inclusive and equitable culture also enables curation of content for colleagues to incorporate 'equity’ into how we talk about, and • Achieved our ambition to double the that is grounded in clinical evidence to help them • Leadership accountability take action to progress, our DEI activities. number of Black Managing Directors in the better manage their own health. Ongoing leader- • Data transparency and accountability UK and US by the end of 2022, going from Our vision is to strengthen our diverse, equitable led campaigns are at the forefront of the way we nine to 18. • Optimisation of external relationships. and inclusive culture, with a view to attracting and engage with colleagues, with regular expert retaining the best talent, building high- • Increased our female representation at These priorities are underpinned by our guiding speaker events chaired by senior executives. Our performing teams which generate better Director/Managing Director grades to principles of accountability, transparency and ‘Talk Money’ week in the UK challenged the outcomes for our customers and clients, whilst 29%∆, in line with our gender ambitions of engagement. These principles and priorities help stigma around talking about money, building also meeting the expectations of our regulators, 33% female representation at this level us to deliver against our six core agendas – confidence with financial management and shareholders and other stakeholders. by 2025. disability, gender, LGBT+, multicultural, signposting to free and confidential support. This multigenerational and socio-economic. is complemented by practical resources and • Launched partnerships with Historically guidance offered through our global Be Well Black Colleges and Universities (HBCUs) portal (with 45% of colleagues registered), and and Hispanic-Serving Institutions (HSI) in our Employee Assistance Programme. the US, creating a pipeline of diverse talent into Barclays. In response to increases in living costs experienced by our UK colleagues, we brought • Our Inclusion Index score improved to forward part of the 2023 pay increase, awarding 82% (from 79% in 2021) and we increased 35,000 UK-based junior colleagues a £1,200 engagement with colleagues through salary increase effective from August 2022, webcasts, workshops and events including ahead of our annual salary review. In January our inaugural ‘Inclusion Unleashed’ week 2023, Barclays worked closely with Unite the • Appointed Accountable Executives (AEs) Union to agree a 2023 UK pay deal which, to champion and galvanise support for each combined with the August 2022 increases, of our six agendas with an emphasis on brought the total average salary increase for our intersectionality. lowest paid colleagues up to 11%. By doing this we ensured that our minimum rate of pay in the UK remains well ahead of Living Wage Foundation benchmarks. Note ∆ 2022 data subject to independent Limited Assurance under Similarly, we brought forward part of the 2023 ISAE(UK)3000 and ISAE3410. Refer to the ESG Resource Hub for details: pay increase for our most junior colleagues in home.barclays/sustainability/esg-resource-hub/ Belgium, France, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain, awarding them €1,500 effective from 1 November 2022. In November, we also awarded junior colleagues in Germany a one-off payment of €2,000 as that approach, whilst having the same effect, was more appropriate under local rules. For further information on the resources and support + available to colleagues relating to financial wellness, please visit the 2022 Fair Pay Report.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 33 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture (continued) Globally, there is training and support available for Socio-economic inclusion agenda all hiring managers and interviewers to ensure Workforce Inclusive and To support the launch of the socio-economic inclusivity and consistency throughout the hiring equitable culture diversity agenda, colleagues created the Inspire ERG, journey. We are an equal opportunities employer which aims to amplify the voices of those who and give full and fair consideration to all identify as coming from a lower socio-economic Developing diverse talent pipelines At Barclays, we are committed to building a populations based on their competencies, background. Members and allies of the ERG are supportive and inclusive culture. We believe that We are focused on recruiting the best talent and strengths and potential. encouraged to develop their understanding of making our organisation more equitable will help have created, and participated in, dedicated how socio-economic status can impact a Additionally, as part of the UK Government us to make the most of the different recruitment schemes across our agendas and person’s work and life experiences. Through Disability Confident scheme, we encourage backgrounds, perspectives and experiences of regions to increase access to diverse talent. This Inspire, we are also connecting with schools and applications from people with a disability, or a our colleagues, and to better serve our has included: universities to remove barriers for people of physical or mental health condition. We require customers and clients. • Continued support for our internal varied backgrounds to join Barclays. people leaders to give full and fair consideration As part of our Continuous Listening strategy, we programmes, such as the Barclays Military and to those with a disability on the basis of In July, colleagues across the organisation were ask colleagues to participate in surveys, providing Veterans Outreach programme, in the UK and strengths, potential and ability, both when hiring invited to join the socio-economic Inclusion regular opportunities to feed back on their US, supporting active duty service members and managing. We also ensure opportunities for Week. Speakers shared insights on a range of experience of working at Barclays. Colleagues are into secondment opportunities at Barclays. In training, career development and promotion are topics, including: social mobility, socio-economic asked to share their feedback on topics ranging 2022, we welcomed 45 service leavers into available to all. background and bias, ethnicity, accents and the from inclusion to wellbeing, and responses help permanent roles across Barclays through our differences across the regions in which we us to assess progress on our DEI journey and For further information on our work on developing diverse Military Talent Scheme and Hiring Our Heroes + talent pipelines, please visit our DEI website. operate. Throughout the week, we shared how identify areas of focus. programmes alongside 120+ military talent we are supporting the career progression of hired with support from Barclays' Military and Providing tools and support for colleagues To learn more about the 2022 Your View survey results, colleagues from lower socio-economic + please visit the Listening to our colleagues section. Veterans Outreach (MVO) team. to succeed and progress at every stage of backgrounds, and the removal of barriers from their career • Establishing a partnership with the Thurgood Employee Resource Groups (ERGs) the workplace. These include mentoring and We offer multiple development programmes to Marshall College Fund, which represents a education initiatives which aim to tackle the Colleague networks have long played an support the growth of our colleagues, providing network of 47 Historically Black Colleges and barriers to development and promotion, important role at Barclays, through creating them with the opportunities and resources Universities (HBCUs) and Predominantly Black partnerships with schools and universities, as well communities and fostering belonging. More necessary to strengthen key skills to progress Institutions (PBIs) in the US. Through this as through our LifeSkills programme, which recently, they have acted as a sounding board for and reach their full potential. partnership, we will work to increase the provides opportunities for colleagues to the business, driving a better understanding of diversity of our talent pipelines in the US. The Black Professionals Resource Group (BPRG) volunteer within the community and amplify the the needs of our customers, clients and created Ascent, a six-month programme for • Participation in the Grace Hopper Celebration breadth of opportunities available to young communities. With over 24,000 colleagues Analysts in the UK and US, to support the Event in the US, which focuses on supporting people within the business. globally participating in one or more of the ERGs, development of Black colleagues across Barclays women and non-binary technologists with these colleague-led communities amplify the and was the first such programme conceived and careers in Technology, resulting in over 400 unique challenges of diverse groups at Barclays delivered by a Barclays Employee Resource job offers to join our Technology division. and provide insight into colleague sentiment and Group (ERG). experience. For further information on development programmes, please + visit the Talent Now and for the Future section.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 34 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture (continued) Pronouns For the first time in 2022 we expanded the DEI performance objective to include wellbeing, Leadership Data transparency In 2022, we added two new features to our with colleagues now being asked to develop their accountability and accountability internal phonebook where colleagues can opt to understanding of the factors contributing to display their personal pronouns, as well as the their resilience and sustaining high performance; phonetic spelling or audio recording of their Our leadership play an important role in Data plays an essential role in delivering our DEI and managers now being asked to champion name. We also proudly partnered with Microsoft, progressing our DEI journey and meeting the strategy, allowing senior leaders to make and support team wellbeing. This was bolstered to pilot a pronoun feature on Microsoft Teams. rising expectations of colleagues, customers, informed decisions and track our progress. by the launch, on World Mental Health Day, of a clients and communities. Accountable Branch colleagues in the UK are also now able to In an effort to ensure colleagues’ personal data new toolkit to help people leaders lead their Executives (AEs) from the Barclays Group add their pronouns, as well as markers indicating records are accurate, this year we held another teams in a way that protects and enhances Executive Committee have been appointed as health conditions and flags denoting spoken ‘Count Me In’ campaign, inviting colleagues in the colleague health with a focus on practices such visible advocates for the DEI agendas, shaping languages, to their name badges. This helps to UK and US to review and share their personal as workload management, fostering autonomy priorities and delivering against these. create a safe space for our trans, non-binary and details in our HR systems, in line with local privacy and enabling growth. LGBT+ colleagues, and promotes inclusivity of We also hosted the second annual Inclusion laws. Maintaining up to date personal data We also made enhancements to our provision of diverse nationalities, abilities and backgrounds. Summit, a virtual two-day event to engage and records also helps us to develop and update workplace adjustments for colleagues with We support the sharing of pronouns as a mobilise senior leaders in respect of the DEI programmes, practices and policies to best disabilities and health conditions, to drive personal choice. strategy. The event, consisting of a series of support colleagues at every level. consistency in how we support our colleagues speaker events and focused discussions, Wellbeing and policies In late summer, we began producing an globally. Colleagues now have greater control reached over 1,000 Barclays leaders and ERG enhanced monthly management pack for senior Prioritising the wellbeing of our colleagues is over their own individual requirements and an representatives from across the organisation. It leaders, containing a detailed breakdown of their central to creating productive teams where all improved experience through the was met with positive feedback from team's progress against our Race at Work and individuals feel valued and included. Our holistic implementation of a new self-service process for participants, with 71% agreeing or strongly gender ambitions. and inclusive perspective requires us to measure the ordering of equipment for office and home agreeing that Barclays has made meaningful wellbeing, using our Wellbeing Index and to working use, as required. progress on inclusion since the 2021 Summit. educate and empower our colleagues and We regularly revisit our people policies to ensure Every colleague continues to have a mandatory leaders to actively manage their health and they are in line with our broader DEI and people inclusion performance objective against which support that of others. We continue to deploy strategy. This includes making updates to our HR they are assessed as part of their performance training, which recognises the importance of policies, processes and support materials on a review. The objective encourages inclusive and mental wellbeing and building a supportive and Note range of topics such as flexible working and supportive behaviours that recognise every Under the Companies Act 2006 (the 'Companies Act'), Barclays is inclusive culture. We have also partnered with our workplace support for menopause. required to report on the gender breakdown of our employees, ‘senior individual’s background as key drivers of our DEI ERGs and leaders on global campaigns to managers’, and the Board of Barclays PLC's Directors. The Group’s global To learn more about the policies reviewed in 2022, please Purpose, Values and Mindset. workforce was 92,898 (50,967 male, 41,720 female, 211 unavailable), with normalise conversations about mental health + visit the Our Policies section. 432 senior managers (329 male, 103 female), and the Board of Barclays and wellbeing topics. In the UK, Barclays PLC had 13 directors (8 male, 5 female) as at 31 December 2022. This is on a headcount basis, including colleagues on long-term leave. pioneered ‘This is Me’, now in its ninth year, Unavailable refers to colleagues who do not record their gender in our where individual colleagues talk openly about the systems. The ‘male’ and ‘female’ gender splits disclosed in this paragraph are based on Companies Act disclosure requirements and numbers are challenges they have faced, with the aim of taken from our employee records which are maintained pursuant to tackling the stigma associated with mental ill applicable rules and regulations on employee record keeping. For further information on the Group’s approach to building a more inclusive health. company, please see our DEI website - at home.barclays/who-we-are/ our-strategy/diversity-and-inclusion/. ‘Senior managers’ is defined by the Companies Act, and is different to both our Senior Managers under the FCA and PRA Senior Managers regime, and our Director and Managing Director corporate grades. It includes Barclays PLC Group Executive Committee members, their direct reports and directors on the boards of undertakings of the Group, but excludes Directors on the Board of Barclays PLC. Where such persons hold multiple directorships across the Group they are only counted once. The definition of 'senior managers' within this disclosure has a narrower scope than the Managing Director and Director female representation data provided above.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 35 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture (continued) Recognising our colleagues Workforce diversity Optimisation of Over the past year, Barclays and several of our external relationships colleagues have been recognised for our efforts to advance diversity, equity and inclusion. 38% We develop relationships with external partners to challenge our thinking, leverage best practices Female members of the and access diverse pools of talent. We partner UK Board of Directors with organisations across all six agendas 2021: 33% • Top 100 - Stonewall UK Workplace (disability, gender, LGBT+, multicultural, Equality Index (Stonewall) Americas multigenerational and socio-economic) and in • 100% - Disability Equality Index ∆ • Employer of the Year – 2022 Forces each region. 27% (Disability:IN) Families Awards (Forces Families) Relationships with organisations such as the Female Group ExCo and ExCo Business Disability Forum, Disability Confident • Gold Award – Employer Recognition direct reports and Disability:IN help us make our workplace and Scheme (UK Ministry of Defence) 2021: 25% policies more inclusive, while providing resources and support to colleagues with disabilities, neurodiversity and health conditions. Stonewall, ∆ 29% Pride Circle and Working Mother Media provide us with valuable feedback on our LGBT+ and Females at MD/D level gender inclusivity in the form of benchmarks and 2021: 28% conferences. Partners in the multicultural space such as COQUAL, Thurgood Marshall Fund, National Urban League, Executive Leadership 40% Council, Black Young Professionals UK, RARE UK Female hiring rate and the Hispanic Association for Corporate 2021: 39% Responsibility (HACR), among others, provide us with platforms to connect with diverse talent. Work with organisations including Working Families, Carers UK and the UK Socio-economic 45% Taskforce is helping to position us as an Female promotion rate employer of choice for talent across all 2021: 47% generations and socio-economic backgrounds. Asia Pacific 13% • Top 10 - 2022 India Workplace Equality Index a Female voluntary attrition rate (Stonewall, Pride Circle, Keshav Suri Foundation) 2021: 11% Notes: • Best Companies for Women in India (Working Mother Δ 2022 data subject to independent Limited Assurance under Media and AVTAR) ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/ • City of Good Award - President’s Volunteerism & esg-resource-hub/reporting-and-disclosures/ Philanthropy Awards Singapore (President of Republic a Volume of leavers in 2022 divided by the average headcount in of Singapore) 2022 that have recorded their gender as female

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 36 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture (continued) Delivering world-class customer service and care The Learning Lab also offers a selection of self- The programme provides participants with Talent now and for the future remains of paramount importance to Barclays. In assessment tools, empowering colleagues to extensive digital content, as well as our Evolution Talent attraction – now and for the future order to meet the demand, we significantly grew understand their strengths and development areas. programme, which supports new people leaders Across 2022, demand for talent has remained our customer care teams globally; for example, These are supported by business-led solutions as they transition into leadership roles. high, alongside a greater focus from candidates following the acquisition of the Gap credit card that encompass professional and technical We also operate three high-potential flagship seeking flexible working options and on wellness portfolio in the US, we nearly doubled our resources encouraging colleagues to drive their leadership programmes: The Enterprise Leaders and wellbeing. In response, we have pursued footprint in our US contact centre in Nevada, own development. Summit, for Managing Directors; the Strategic opportunities to attract and recruit talent as with over 1,800 new hires and saw demand triple People leadership at Barclays is about helping others Leaders Programme, for Directors; and Aspire, quickly and efficiently as possible, including for roles supporting our customers in the UK. to achieve their potential. To equip our people for Vice Presidents. These programmes aim to doubling the number of recruiters to support our Developing our colleagues leaders with the critical skills and behaviours to build enterprise-wide leadership, alongside businesses and the launch of the Onboarding inspire, develop and support their teams today and strong people leadership capabilities, helping We remain committed to our culture of lifelong app, giving new joiners and their people leaders colleagues tackle people management situations into the future, we have refreshed our Management learning, through a development proposition that access to information required prior to joining Unlocked programme. confidently, in line with our Values and Mindset. supports colleagues at every stage of their Barclays, including the ability to sign employment career. contracts via the app. On completion of a research-led review of our Barclays was ranked number one in the LinkedIn Graduate Programmes in 2020, we have re- Top Companies UK 2022 list for the second year designed our approach to managing high- in a row. Based on LinkedIn-owned data, the list is Apprentices are provided with a range of Developing digital skills potential, junior talent. Launched in 2022, we a resource for jobseekers and career builders to support, from team buddies and talent coaches across Barclays welcomed 841 graduates on to our new Scholar to more structured learning courses and study explore open vacancies, enhance their skills and As our organisation evolves, we have programme, which provides support, time to achieve industry-recognised identify companies that invest in their talent. This implemented strategies to actively upskill, reskill qualifications, with over 190 colleagues having development and training in either technical skills was further recognised by the Learning and and realign talent across Barclays, supporting successfully transitioned into their new roles. through our Expert programme, or leadership Performance Institute, where Barclays won a colleagues’ career growth and our future skills pathways through our Explorer programme. Both Here’s what two of our 2022 cohort had to say Bronze Learning Leader Award. needs. Our Destination Technology and about how Destination Technology has programmes are underpinned by a suite of Destination Security Apprenticeship schemes The Financial Service Skills Commission (FSSC) transformed their careers. baseline learning experiences, which aim to focus on developing digital capabilities and brings together industry, government and the maximise graduate experience and provide opportunities for UK-based colleagues education sector to help overcome the top development, while also equipping them with the to reskill via a clear and structured career five skills gaps in Financial Services (Data and pathway, leading to increased internal mobility skills needed to build their future career. “This is the most incredible Analytics; Tech Design and Management; and employment in a variety of roles such as opportunity I could ever have asked The Barclays Learning Lab is our learning Business Process and Customer Experience Testers, Developers and User Experience for; I had no idea how to get into ecosystem. Consisting of Barclays-designed Design; Personal Effectiveness, Thinking and (UX) Designers. Technology and no idea how to code. knowledge and skills modules, as well as modules Problem Solving; and Leadership and Social I am now coding in five different from external specialists, it provides our Influence), working to identify solutions and languages in my first 12 weeks. colleagues with the development tools needed increase our access to diverse talent. Barclays This experience has been life- to support them in their current and future roles. is proud to partner with the FSSC, and has used changing and it has really improved Colleagues can access a wide range of my mental health." the insights gleaned from the partnership to workshops, split between colleague and people inform our approach to talent, particularly leader development. This is complemented by in Technology. our digital content providers, whose content has “This is a golden ticket and a life- been mapped against role-specific learning changing opportunity. The support pathways, making it easy for colleagues to I have received has been amazing navigate development resources suitable for and I will be forever grateful." their needs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 37 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture (continued) Employee statistics Talent and development Number of employees split by region (000s) Number of employees split by grade (%) Aspire 4.0 2022 8 42 50 Total 2022 44 11.4 28 87.4 2021 Nominations (%) 8 41 51 Total 2021 471 Senior (Managing Director and Director) 44.1 10.1 23.8 n 81.6 Female 50 n Middle (Assistant Vice President and Vice President) n participants 3.6 Male 50 n Junior (Business Analyst grades) n in 2022 which is Note UK Europe Americas Asia Pacific n n n n The pool of females to select from at the VP level is 32%. Employees by employment contract type 3% and gender (%) Split by full time/part time (%) of the overall VP population Full time Payroll 93 n 45 55 Part time 7 n Agency Strategic leaders 44 56 Female Male n n Nominations (%) 278 Female 49 n participants Male 51 n in 2022 which is Note The pool of females to select from at the Our hires D level is 29%. 5% By age group % By gender % By ethnicity % By management level % of the overall Director population The Enterprise People Leaders Summit leadership training 286 807 Below 20 1 Female 40 White 19 Junior 72 n n n MDs completed the Number of people leaders that took part n 20-30 46 Male 60 Asian 71 Middle 25 programme in 2022 which is in Management Unlocked training n n n n 30-40 32 Black 6 Senior 3 n n n 40-50 10 Other ethnicities 4 n n 50-60 10 n 18% 1,580 Over 60 1 n of the overall Number of people leaders that took MD population part in Evolution Programme

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 38 report information sustainability report Governance review review statements Annual Report 2022 Our people and culture (continued) Other workforce engagement activities have also Listening to our colleagues Our policies Highlights been carried out by both Board and management Listening to colleagues allows us to obtain Our people policies are designed to recruit the to deliver meaningful, regular two-way dialogue best people, provide equal opportunities and insights into what we are doing well and areas with colleagues. This helps our Board reflect 84% create an inclusive culture, in line with our where we need to focus our attention. a colleague feedback in their decision-making. The Purpose, Values and Mindset, and in support of Colleague engagement score Our biannual all-colleague Your View surveys range of direct engagement mechanisms we use, our long-term success. They also reflect relevant 2021: 82% measure colleague considerations across a across multiple channels throughout the year, employment law, including the provisions of the breadth of topics including colleague Universal Declaration of Human Rights and the combined with a comprehensive reporting engagement, organisational culture, including International Labour Organization (ILO) approach, enables us to effectively engage with 85% the Mindset and Values, wellbeing, inclusion and Declaration on Fundamental Principles and our workforce. “I would recommend Barclays to people working practices and tools. The Your View Rights at Work. I know as a great place to work” Results from our surveys and other employee survey is the primary mechanism for how we We regularly review and update these policies to 2021: 82% engagement mechanisms were shared with track engagement and monitor our culture, with ensure that they are in line with our broader DEI colleagues and discussed with the Barclays Board, the 2022 survey results indicating good progress and people strategy. To support the transition to the Executive Committee and people leaders. for both engagement and cultural measures. 92% hybrid working in 2022, we updated our policies We maintain a strong and effective partnership Senior leaders continue to receive and review the “I believe that my team and I do a good job on Working Flexibly to enable an approach that with Unite and the Barclays Group European results from these surveys to inform decisions. of role modelling our Values every day” meets the requirements of each role, while also Forum, whom we brief on our strategy and 2021: 92% We have also evolved our Continuous Listening taking into account the needs of our colleagues. progress to obtain feedback on how we can strategy, leveraging pulse surveys, as well as We also updated our policies and guidance on a improve the colleague experience. In 2022, we additional surveys deployed throughout the range of topics including workplace support for 92% engaged with Unite on the transition to hybrid employee lifecycle, to capture insights which help menopause and baby loss. working and our updated DEI strategy. We also “I believe my team and I do a good job us better understand our culture and improve We are committed to paying our people fairly and consult with colleague representatives on major of role modelling our Mindset every day" colleague experience. appropriately relative to their role, skills, change programmes which impact our people, to 2021: 89% We have adopted a number of methods for experience and performance. This means our minimise compulsory job losses, and focus on engagement with our workforce, in line with the remuneration policies reward performance that is reskilling and redeployment. In 2022, this included UK Corporate Governance Code. These in line with our Purpose, Values and Mindset, as the launch of an enhanced mobility service to 83% engagement mechanisms, including all- well as our risk expectations. We also encourage further mitigate redundancies across the “It is safe to Speak Up” colleague townhalls, skip-level meetings, DEI our people to benefit from Barclays’ performance organisation, redeploying colleagues into roles 2021: 79% summits, site visits and engagement surveys, by enrolling in our share ownership plans. commensurate with their skills and experience, enable colleagues to share ideas and feedback and upskilling colleagues where required. For further information, please see our Fair Pay Report 2022 + with senior management and the Board. and UK Pay Gaps 2022. We keep colleagues updated on the strategy, 13% performance and progress of the organisation Voluntary employee turnover through a combination of leader-led engagement, 2021: 11% The collective bargaining digital and print communication, blogs, vlogs and coverage of Unite in the UK podcasts. In 2022, the Barclays Group CEO held over 50 engagement sessions throughout the represents 83% (2021: 84%) 16% year with colleagues, including quarterly Employee turnover townhalls on financial performance, listening of our UK workforce 2021: 14% sessions on flagship talent programmes and Note and 43% (2021: 48%) a As part of our efforts to improve our measurement frameworks, we Q&A sessions. have transitioned to a new three question engagement model. This of our global workforce. was after collecting four years of concurrent data and running analysis to affirm the new model’s validity. Historic figures have been updated to reflect results from the new three question model

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 39 report information sustainability report Governance review review statements Annual Report 2022 Society We believe that we can, and should, make a Communities positive difference for society – globally and In the communities in which we operate, Barclays locally. We do that through the choices we make is supporting people to develop the skills and Making a difference about how we run our business in light of all confidence they need to succeed, now and in the relevant risk and other factors and through the future and working to help businesses create Our success is judged not only by commercial commitments we make to support our clients jobs. We collaborate with experienced partners, and communities and to champion sustainability employability experts and businesses to develop performance, but also by our contribution to society and for the long term. We recognise that we are at meaningful and innovative programmes that aim our best when our clients, customers, to deliver a significant positive impact over the in the way we deploy finance responsibly to support communities and colleagues all progress. long term. Our focus on society falls broadly into three people and businesses, acting with empathy and More information on how we are supporting our categories: Climate, Communities and Suppliers. + communities can be found from page 41 integrity, championing innovation and sustainability for Climate Addressing climate change is an urgent and Suppliers the common good and the long term. complex challenge but also an opportunity. It As a global institution, we have responsibility for requires a fundamental transformation of the a large supply chain. We engage directly with our global economy. The financial sector has an suppliers seeking to promote diversity, equity important role to play in supporting the transition and inclusion and we work to identify and address to a low-carbon economy and at Barclays, we are modern slavery risks across our operations, determined to play our part consistent with our supply chain, and customer and client Purpose and relevant business and risk relationships. considerations. More information on how we engage with our supply + chain can be found from page 43 In 2020, Barclays announced an ambition to be a net zero bank by 2050, across all of our direct and indirect emissions and we committed to align all of our financing activities with the goals and Highlights Engagement timelines of the Paris Agreement. We made it We engage with stakeholders internally and clear at the time that we would approach the externally to assess our areas of focus climate challenge thoughtfully and transparently, New target to facilitate against their priorities. That happens engaging with our shareholders and other through ongoing conversations, as well as stakeholders and reporting our progress. 1.5°C surveys and information requests from $1 trillion In doing so, we also recognise the importance of a aligned-targets set against five NZBA investors and ratings agencies. We also supporting a just transition considering the social of Sustainable and Transition Financing high-emitting sectors monitor closely the relevant ESG risks and opportunities of the transition and between 2023 and the end of 2030 frameworks and reporting guidelines. seeking to ensure effective dialogue with affected stakeholders. For further details on our integration of social and + environmental issues into our business, please refer to 269 our ESG-related reporting and disclosures on page 64 93% For further details on our climate-related progress, Unreasonable Impact ventures please refer to our climate-related financial disclosures Prompt payment rate supported since 2016 (TCFD) Content Index from page 65 Notes: a Net-Zero Banking Alliance (NZBA)

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 40 report information sustainability report Governance review review statements Annual Report 2022 Society (continued) Barclays’ climate strategy 1 2 3 Our climate strategy is driven by consideration of relevant risks and Achieving net Reducing our Financing opportunities and our Purpose to deploy finance responsibly to support people and zero operations financed emissions the transition businesses, acting with empathy and integrity, championing innovation and Barclays is working to reduce its Scope 1, Barclays is committed to aligning its financing Barclays is helping to provide the green and a sustainability for the common good and Scope 2 and Scope 3 operational emissions with the goals and timelines of the Paris sustainable finance required to transform the long term. consistent with a 1.5°C aligned pathway and Agreement, consistent with limiting the the economies, customers and clients we counterbalance any residual emissions. increase in global temperatures to 1.5°C. serve. In March 2020, Barclays announced its ambition to be a net zero bank by 2050, becoming one of Our strategy is underpinned by the way we assess and manage our exposure to climate-related risk. the first banks to do so. After a strategic review of the Group’s regional variations, behavioural change in society As a large global financial intermediary, Barclays We are committed to achieving net zero capabilities, market demand and growth and the scale of change needed to adapt their also has an important role in helping channel operations and have made progress, having opportunities, we announced in December 2022, business models. Client transition pathways will investment into new green technologies and sourced 100% renewable electricity for our b new targets to: vary, even within the same sectors and low-carbon infrastructure projects. global real estate portfolio operations and geographies. • facilitate $1 trillion of Sustainable and created a pathway to address our supply The transition to a low-carbon economy is Transition Financing between 2023 and the Many highly carbon-intensive sectors require chain emissions. today’s defining opportunity for innovation and end of 2030. finance to transition. Restricting the flow of growth. With the scale of investment needed We are also committed to reducing our financed capital to these sectors could be harmful to the estimated to be $4trn per year in renewables and • increase investment into global climate tech emissions, those deriving from the activities of the c pace of the transition, limiting the real terms a further $4-6trn per year to get to a low-carbon start-ups to £500m through our Sustainable clients that we finance and those generated in impact on global warming. However, we economy over the next 30 years, Barclays is Impact Capital portfolio by the end of 2027. their respective value chains by providing financial anticipate that companies which are unwilling to helping to provide the green and sustainable advice and support as they transition to a low- Over the coming years, our strategy will continue reduce or eliminate their emissions consistent finance required to transform the economies we carbon economy. We have now set 2030 to evolve and adapt to reflect external factors with internationally accepted pathways may find serve. We surpassed our 2018 target to deliver reduction targets across five of the highest- affecting the shape and timing of the transition it increasingly difficult to access financing, £150bn of social and environmental financing emitting sectors in our portfolio: Energy, Power, to a low-carbon economy, similar to those including through Barclays. by 2025 and we are still on track to meet our Cement, Steel and Automotive manufacturing impacting our clients' transitions. Progress is goal to deliver £100bn of green finance well Our strategy is underpinned by the way we and have assessed the baseline and convergence likely to vary year to year and we need to be able ahead of 2030. assess and manage our exposure to climate- point for our Residential real estate portfolio. to adapt our approach to respond to external related risk. Climate risk became a Principal Risk We keep our policies, targets and progress under circumstances and to manage the effectiveness We have developed a methodology for at Barclays in 2022. review in light of the rapidly changing external and impact of our support for the transition, measuring our financed emissions and tracking environment and the need to support whilst remaining focused on our ambition of We monitor financing transactions through them at a portfolio level against the goals and governments and clients in delivering an orderly becoming a net zero bank by 2050. our due diligence and have declined financing timelines of the Paris Agreement – this energy transition and providing energy security. to clients that have not been able to meet methodology is called BlueTrack™. All of our Please see the Barclays Climate and Sustainability The trajectory for our clients’ transition to a low- our policies after taking into account all 2030 target-setting includes the integration of + report from page 69 for further details on Barclays' o carbon economy is influenced by a number of ambition to be a net zero bank. relevant considerations. 1.5 C aligned scenarios, such as the IEA Net Zero Barclays' climate and ESG-related data, targets and external factors, including market developments, 2050 scenario in our financed emission targets, Notes progress can be found within the ESG (non-financial) a We define our Scope 3 operational emissions to include supply chain, technological advancement, the public policy and including the upper end of ranges for Data Centre within our ESG Resource Hub waste, business travel and leased assets. environment, geopolitical developments and TM certain sectors. b Global real estate portfolio includes offices, branches, campuses and Further details on our BlueTrack methodology can be data centres. found within our Whitepaper accessible at: c $4-6trn as referenced at COP27 at unfccc.int/documents/624444 as home.barclays/sustainability/esg-resource-hub/ well as the United Nations Environment Programme - Emissions Gap reporting-and-disclosures/ Report 2022 at unep.org/resources/emissions-gap-report-2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 41 report information sustainability report Governance review review statements Annual Report 2022 Society (continued) Supporting our communities At Barclays, we believe that a strong, inclusive economy is a better economy for everyone. With rising costs likely to exacerbate social and economic inequalities, it is more important than ever to support communities facing hardship. We work with experienced partners and employability experts to design programmes that make a positive and enduring difference in the communities around the world in which we live and work. Our LifeSkills programme is enabling people to develop the employability and financial skills they need to get into work and manage their money and our Unreasonable Impact programme is supporting ventures that are solving key social and environmental Jersey, and more recently supporting the Celebrating 10 years of upskilling challenges, driving innovation and creating jobs. expansion of its Brooklyn campus. We have communities across New York City also helped develop curricula for Java Enhancing people’s with Per Scholas developer and cybersecurity courses. skills and confidence Barclays has a long history of delivering As a result of Barclays' investment, more than Through our LifeSkills programme, Barclays Citizenship programmes that are designed for a 1,800 Per Scholas graduates have been placed committed to help a further 10 million people to inclusion. Through its community into work, including more than 60 who have develop the skills and confidence they need to partnerships, we are upskilling and creating b been hired as apprentices, interns or full-time succeed, as well as place 250,000 people into pathways into work for Black and ethnically employees at Barclays. work by the end of 2022. The programme has diverse people, and working with ethnically now reached this milestone with 12.6 million As the partnership continues, Barclays is diverse leaders to promote social equity in people upskilled and 270,600 people placed into working closely with Per Scholas to create and our communities. work. Since LifeSkills first began in 2013, it has extend more pathways into work by taking In 2022, we celebrated 10 years of upskilling Δ reached 18.1 million people. advantage of remote learning opportunities historically underserved communities across and establishing satellite locations in New York City with LifeSkills partner Per Sectors of companies in which people have partnership with community-based Scholas, and continue to evolve this been placed into work (%) organisations. This is enabling them to expand partnership to empower even more of their their footprint and reach underserved learners – 87% of whom are Black and populations in every borough across New Technology 58% n ethnically diverse, with the skills to be York City. Retail and customer successful in technology careers. 15% n service Notes: Barclays has played a key role in helping Per Financial services 12% n a. Over a five-year period, 2018-2022. Scholas to launch technology training Other 15% b. Over a four-year period, 2019-2022. n You can find out more about this approach and its impact in Δ 2022 data subject to independent Limited Assurance under campuses in Brooklyn and in Newark, New + a newly launched report, accessible at: perscholas.org/wp- ISAE(UK)3000 and ISAE3410. Current and previous limited assurance content/uploads/2022/10/Partnering-For-Impact-Per- scope and opinions can be found within the ESG Resource Hub for Scholas-Satellite-Model.pdf further details: home.barclays/sustainability/esg-resource-hub/ reporting-and-disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 42 report information sustainability report Governance review review statements Annual Report 2022 Society (continued) and be able to signpost to other relevant Partnership with Trussell Trust Highlights services such as mental health support. to help UK households with rising Since April 2022, the Trussell Trust has cost of living unlocked more than £2.3m for people ∆ ∆ In 2022, Barclays launched a new 3-year 18.1m 77,200 through the financial inclusion initiatives that partnership with the Trussell Trust to help Barclays is supporting, as well as writing off LifeSkills – Overall participation LifeSkills – No. of people unlock income for people struggling to afford more than £500,000 of unaffordable debt for since launch in 2013 placed into work essentials and help them to access financial families. 43% of food banks in the Trussell 2021: 15.3m 2021: 77,100 assistance that they’re entitled to, but not Trust network currently offer financial receiving, such as benefits and grants. Staff inclusion services. Looking forward, the and volunteers at food banks are being partnership is committed to increasing this to ∆ a upskilled to provide bespoke support to tackle 75% of their network by March 2025. 2.74m 269 the underlying causes of hardship in their Unreasonable Impact – LifeSkills – community, provide effective financial advice Ventures supported since 2016 No. of people upskilled 2021: 2.89m 2021: 216 Enabling sustainable growth Charitable giving and investment in our communities Through the Unreasonable Impact programme, in 2022, Barclays celebrated delivering its Alongside these high-impact programmes, we Citizenship commitment of supporting 250 high- help our employees to make a difference to the growth entrepreneurs to scale their companies causes that matter most to them personally and address key global issues. The programme is through our matching programmes. In 2022, we a now reaching 269 companies that have supported more than 5,700 colleagues around positively affected the lives of more than 300 the world to fundraise and donate to their million people around the world, and employ over chosen charities, including organisations 19,500 people full-time (FTE). From air-based providing vital humanitarian assistance in protein which makes meat from the air, to hybrid Ukraine. With Barclays matching, a total of £9.3m solar panels that generate both electricity and was raised for more than 1,800 charities. We also water – these companies are delivering supported 11,900 colleagues to donate via our innovative solutions to address pressing social UK Payroll Giving programme, which saw us and environmental challenges. match more than £720,000 in 2022. We also support communities directly by investing money and skills in partnerships with respected non-governmental organisations, charities and social enterprises. Our investment amounted to £44.7m in 2022, including Notes: charitable giving, management costs and a Cumulative ventures supported since 2016 monetised work hours of Barclays colleagues. Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/ reporting-and-disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 43 report information sustainability report Governance review review statements Annual Report 2022 Society (continued) The programme focuses on including girls and Championing equality through sport Third party operational and Supporting our supply chain young people from lower socio-economic and At Barclays, we believe in creating opportunities reputational risk management a under-represented groups, including racially With nearly 9,000 companies coming from for all through access to football. In 2022, in Barclays must effectively manage, monitor and diverse communities, people with disabilities, and 28 countries supplying us, our supply chain partnership with Sported, we launched the mitigate risks in our supply chain. Our suppliers people from the LGBTQ+ community. helps our businesses deliver for our Barclays Community Football Fund which helps act on behalf of Barclays and we expect them to customers, clients and colleagues. With a target to support 5,500 community to reduce inequalities in football, with grants make responsible decisions that take our groups across the UK by 2025, the fund delivered available to groups that wish to start offering stakeholders’ needs into account in both the Though our businesses are geographically b support to over 2,000 organisations in 2022 – football, or expand their existing programmes to short and long term. We have therefore put diverse, more than 90% of our supplier engaging more than 268,800 young people in new, under-represented audiences. measures in place to encourage high standards of relationships are concentrated in the UK and the inclusive football activities. conduct and accessibility across our supply chain. US with many of them having their own extensive supply chains. Barclays expects suppliers to comply with applicable laws, regulations and standards within Our supply base is diverse across scale, the geographies in which they operate. Barclays’ ownership type and structure from privately-held Following their involvement in Unreasonable Lithium Urban Technologies: standard approach to new supplier on-boarding start-ups to publicly-listed multinational Impact, Lithium formed a partnership with Pioneering sustainable urban and renewal begins by assessing the services corporations. Barclays has sought to reduce the another Unreasonable Impact company, mobility that are being provided and ascertaining the level size of its supply chain over recent years and Fourth Partner Energy, to set up solar- of risk. Suppliers that are assessed as being at a while this has now stabilised, our focus continues Unreasonable Impact company Lithium Urban powered EV charging infrastructure across heightened risk from a business risk perspective to be on embedding preferred suppliers for Technologies is one of India’s largest electric India under a joint venture, laying the are subject to Barclays’ Supplier Control products and services that ensure adequate corporate transport services, operating a fleet groundwork for the company’s growth. Obligations (SCOs). geographical coverage and at the same time, of electric vehicles (EVs) that Lithium c create opportunities for diverse suppliers which estimates have cumulatively prevented more Suppliers to whom the SCOs apply become encompass small or medium-sized enterprises than 50,000 metric tons of carbon dioxide managed suppliers and are subject to ongoing d and diverse-owned businesses. equivalent (MtCO e) since 2015, and support management and controls assurance during the 2 ~50,000 businesses to reduce their carbon footprint. term of service. These suppliers are required to Please see further details on our requirements of external + suppliers at: home.barclays/who-we-are/our-suppliers/our- Barclays is utilising vehicles from Lithium’s EV complete a pre-contractual questionnaire which requirements-of-external-suppliers/ metric tons of carbon dioxide fleet to transport colleagues to its offices in captures their adherence to the SCOs and equivalent prevented since 2015 Pune and Noida. Barclays’ Third Party Code of Conduct (TPCoC). Highlights 8.5% Global spend with small and medium-sized enterprises and diverse-owned suppliers Notes (2021: 8%) a Includes non-addressable spend and One Time Vendors (OTV). b 90% by invoice value c Spending between Barclays and diverse suppliers is considered first- tier spending. Spending between Barclays’ first-tier suppliers that can trace subcontracted spend with diverse suppliers on Barclays-specific 93% work is considered second-tier direct spending. d For Barclays, diverse suppliers are defined as either size diverse (small Prompt payment rate and medium sized enterprises) or ownership diverse (majority owned, controlled and operated by protected class groups, such as women, (2021: 90%) ethnic minorities, LGBT+, persons with disabilities, military veterans and for-profit social enterprises).

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.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 45 report information sustainability report Governance review review statements Annual Report 2022 Investors a,b Group operating expenses increased to £16.7bn Financial performance in 2022 (2021: £14.7bn) mainly due to higher litigation Barclays delivered a profit before tax of £7.0bn and conduct charges: Resilient franchise (2021: £8.2bn), RoTE of 10.4% (2021: 13.1%) and Group operating expenses excluding litigation earnings per share (EPS) of 30.8p (2021: 36.5p). and conduct charges increased 6% to £15.1bn, Total income increased 14% to £25.0bn versus reflecting the impact of inflation and the built to deliver prior year, with income momentum across appreciation of average USD against GBP all businesses: Litigation and conduct charges were £1.6bn Barclays UK income of £7.3bn increased 11% double-digit returns (2021: £0.4bn) including £1.0bn from the Over- versus prior year, primarily driven by rising a issuance of Securities . interest rates, higher customer spend volumes in UK cards and improved transaction-based Credit impairment charges were £1.2bn (2021: Our strong, diversified business is built to deliver revenue in Business Banking. This was partially £0.7bn net release). The increase in charges offset by mortgage margin compression, lower attractive and sustainable returns despite an reflect macroeconomic deterioration and a interest earning lending (IEL) balances in UK gradual increase in delinquencies, partially offset uncertain operating environment. cards and lower government-backed lending by the utilisation of macroeconomic uncertainty income as repayments continue. post-model adjustments (PMAs) and the release Within Barclays International, CIB income of of COVID-19 related adjustments informed by C. S. Venkatakrishnan, Group Chief Executive, commented £13.4bn was up 8% versus prior year. Global refreshed scenarios. Total coverage ratio “Barclays performed strongly in 2022. Each business delivered income growth, with Group Markets income increased 38% to £8.8bn decreased to 1.4% (December 2021: 1.6%) income up 14%. We achieved our RoTE target of over 10%, maintained a strong Common representing the best full year for both Global driven by changes in portfolio mix and write-offs. Equity Tier 1 (CET1) capital ratio of 13.9%, and returned capital to shareholders. We are c Markets and FICC on a comparable basis . In Coverage levels remain strong. cautious about global economic conditions, but continue to see growth opportunities across Corporate, Transaction banking income Our CET1 capital ratio was 13.9% (2021: 15.1%), our businesses through 2023.” increased 52% to £2.5bn driven by improved within our target of 13-14%, and TNAV per share margins and growth in deposits, and higher fee increased 3% to 295p. income. This was partially offset by Investment Capital distributions: total dividend for 2022 of a Banking fees declining 39% to £2.2bn due to the Highlights 7.25p per share (2021: 6.0p), including a 5.0p per reduced fee pool. In CC&P income of £4.5bn was share 2022 full year dividend. Intend to initiate a up 35%, reflecting higher balances in US cards share buyback of up to £0.5bn, bringing the total which included the impact of the Gap portfolio share buybacks announced in relation to 2022 to d acquisition , client balance growth and improved £1.0bn and total capital return equivalent to £25.0bn 67% margins in Private Bank as well as turnover c.13.4p per share. Income Cost: income ratio growth in Payments following the easing of 2021: £21.9bn 2021: 67% lockdown restrictions, which was partially offset by higher customer acquisition costs. Notes a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Impact of the Over- £7.0bn 10.4% issuance of Securities on page 356 and Restatement of financial Profit before tax Return on Tangible Equity statements (Note 1a) on page 428 for further details. b The 10% appreciation of average USD against GBP positively 2021: £8.2bn 2021: 13.1% impacted income and profits and adversely impacted credit impairment charges and total operating expense. c Period covering 2014-2022. Pre 2014 data was not restated following re-segmentation in 2016. d The Gap portfolio refers to the Gap Inc. US credit card portfolio.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 46 report information sustainability report Governance review review statements Annual Report 2022 Summary financial review (continued) Financial metrics CET1 ratio Total operating expenses Cost: income ratio Group RoTE CET1 ratio is a measure of the capital strength Barclays views total operating expenses as a key The cost: income ratio measures total operating RoTE measures our ability to generate returns and resilience of Barclays, determined in strategic area for banks; those which actively expenses as a percentage of total income and is for shareholders. It is calculated as profit after tax accordance with regulatory requirements. The manage costs and control them effectively will used to assess the productivity of our business attributable to ordinary shareholders as a Group’s capital management objective is to gain a strong competitive advantage. operations. proportion of average shareholders’ equity maximise shareholder value by prudently excluding non-controlling interests and other managing the level and mix of its capital. This is to equity instruments adjusted for the deduction of ensure the Group is appropriately capitalised intangible assets and goodwill. relative to the minimum regulatory and stressed This measure indicates the return generated by capital requirements, and to support the Group’s the management of the business based on risk appetite, growth, and strategy while seeking shareholders’ tangible equity. Achieving a target to maintain a robust credit proposition for the RoTE demonstrates the organisation’s ability to Group. execute its strategy and to align management’s The ratio expresses the Group’s CET1 capital as interests with those of its shareholders. RoTE lies a percentage of its RWAs. RWAs are a measure at the heart of the Group’s capital allocation and of the Group’s assets adjusted for their performance management process. respective associated risks. a a a a Group RoTE CET1 ratio Total operating expenses Cost: income ratio (%) (%) (£bn) (%) . 2022 2022 10.4 67 2022 13.9 2021 13.1 67 2021 15.1 2021 2020 2020 2020 3.2 64 15.1 Performance in 2022 Performance in 2022 Performance in 2022 Performance in 2022 Group operating expenses increased to £16.7bn RoTE was 10.4% (2021: 13.1%) from the The Group cost: income ratio was 67% (2021: The CET1 ratio decreased to 13.9% (2021: (2021: £14.7bn) mainly due to higher litigation normalisation of credit impairment charges and 67%), as increased income was offset by higher 15.1%) as £5.0bn of attributable profit was offset and conduct charges: higher litigation and conduct costs, partially litigation and conduct charges, primarily from the by returns to shareholders, impacts of regulatory offset by income growth across all operating Over-issuance of Securities. Group operating expenses excluding litigation change from 1 January 2022, pension deficit divisions. and conduct increased 6% to £15.1bn, reflecting contribution payments and decreases in the fair The Group is targeting a cost: income ratio the impact of inflation and the appreciation of value of the bond portfolio through other The Group targets a RoTE of greater than 10.0% percentage in the low 60s in 2023 and below average USD against GBP. comprehensive income and other capital in 2023 in line with our medium-term target. 60% over the medium-term. deductions. Litigation and conduct charges were £1.6bn (2021: £0.4bn) including £1.0bn impact from the Over- Increases in RWAs, largely as a result of foreign For further detailed analysis of our financial performance issuance of Securities. exchange movements, were broadly offset by an + in 2022, please see our full Financial review and our Financial statements on pages 378 to 396, and pages 397 to increase in the currency translation reserve The Group will continue to drive efficiencies while 423 respectively of Part 3 of the Annual Report. within CET1. investing in its franchise where appropriate. For more information on our global tax contribution as well Note as our approach to tax, please see our Country Snapshot The Group targets CET1 ratio in the range of a 2021 financial and capital metrics have been restated to reflect the report available at home.barclays/annualreport impact of the Over-issuance of Securities. See Impact of the Over- 13-14%. issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 47 report information sustainability report Governance review review statements Annual Report 2022 Summary financial review (continued) Consolidated summary balance sheet Consolidated summary income statement a a Restated For the year ended 31 December Restated As at 31 December 2022 2022 2021 2021 £m £m £m £m Net interest income 10,572 8,073 Assets Cash and balances at central banks 256,351 238,574 Net fee, commission and other income 14,384 13,867 Cash collateral and settlement balances 112,597 92,542 Total income 24,956 21,940 Loans and advances at amortised cost 398,779 361,451 Reverse repurchase agreements and other similar secured lending 776 3,227 Operating costs (14,957) (14,092) Trading portfolio assets 133,813 147,035 UK bank levy (176) (170) Financial assets at fair value through the income statement 213,568 191,972 Litigation and conduct (1,597) (397) Derivative financial instruments 302,380 262,572 Total operating expenses (16,730) (14,659) Financial assets at fair value through other comprehensive income 65,062 61,753 Other assets 30,373 25,159 Other net income 6 260 Total assets 1,513,699 1,384,285 Profit before impairment 8,232 7,541 Liabilities Credit impairment (charges)/releases (1,220) 653 Deposits at amortised cost 545,782 519,433 Profit before tax 7,012 8,194 Cash collateral and settlement balances 96,927 79,371 Tax charge (1,039) (1,138) Repurchase agreements and other similar secured borrowings 27,052 28,352 Profit after tax 5,973 7,056 Debt securities in issue 112,881 98,867 Non-controlling interests (45) (47) Subordinated liabilities 11,423 12,759 Trading portfolio liabilities 72,924 54,169 Other equity instrument holders (905) (804) Financial liabilities designated at fair value 271,637 250,960 Attributable profit 5,023 6,205 Derivative financial instruments 289,620 256,883 Other liabilities 16,193 13,450 Selected financial statistics Total liabilities 1,444,439 1,314,244 Basic earnings per share 30.8p 36.5p Equity Diluted earnings per share 29.8p 35.6p Called up share capital and share premium 4,373 4,536 Return on average tangible shareholders’ equity 10.4% 13.1% Other equity instruments 13,284 12,259 Cost: income ratio 67% 67% Other reserves (2,192) 1,770 Retained earnings 52,827 50,487 Note Total equity excluding non-controlling interests 68,292 69,052 a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Non-controlling interests 968 989 Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. Total equity 69,260 70,041 Total liabilities and equity 1,513,699 1,384,285 Net asset value per ordinary share 347p 339p Tangible net asset value per share 295p 291p Number of ordinary shares of Barclays PLC (in millions) 15,871 16,752 Year-end USD exchange rate 1.20 1.35 Year-end EUR exchange rate 1.13 1.19

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 48 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews About Barclays We are diversified by business, geography and income type. Our operations include consumer banking and payment services in the UK, US and Europe, as well as a global corporate and investment bank. The Consumer, Cards and Payments division of Our structure Barclays UK Barclays International is comprised of our Barclays UK consists of our UK Personal Banking, Barclays operates as two divisions, Barclays UK and Barclays International, International Cards and Consumer Bank, Private UK Business Banking and Barclaycard Consumer Bank and Barclaycard Payments businesses. supported by our service company, Barclays Execution Services. UK businesses. These businesses are carried on by our UK ring-fenced bank (Barclays Bank UK PLC) As part of our International Cards and Consumer and certain other entities within the Barclays Group. Bank, in the US we have a partnership-focused business model, offering credit cards to consumers UK Personal Banking offers retail solutions to help through our relationships. We also offer online customers with their day-to-day banking needs. retail savings products, instalment payments and personal loans. UK Business Banking serves business clients, from high-growth start-ups to small and medium-sized In Germany, we offer multiple consumer products enterprises, with specialist advice for their business including own-branded and co-branded credit cards, banking needs. online loans, electronic Point of Sale (ePOS) financing and deposits. Barclaycard Consumer UK is a leading credit card provider, offering flexible borrowing and payment Barclaycard Payments enables businesses of all sizes solutions, while seeking to deliver a leading customer to make and receive payments. experience. Our Private Bank offers banking, credit and Barclays International investment capabilities to meet the needs of our clients across the UK, Europe, the Middle East and Barclays International consists of our Corporate and Africa, and Asia. Investment Bank and Consumer, Cards and Payments businesses. These businesses operate Barclays Execution Services within our non ring-fenced bank (Barclays Bank PLC) and its subsidiaries, and certain other entities within Barclays Execution Services is the Group-wide the Group. service company providing technology, operations and functional services to businesses across Barclays Corporate and Investment Bank is the Group. comprised of the Investment Banking, Corporate Banking and Global Markets businesses, aiding money managers, financial institutions, governments, supranational organisations and corporate clients to manage their funding, financing, strategic and risk management needs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 49 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews (continued) Market and operating environment Focus areas Barclays UK Against a challenging economic and political Providing exceptional service backdrop this year, customer confidence in and insights to customers: both the UK economy and its impact on their We aim to provide simple, relevant and prompt Barclays UK consists of our UK Personal Banking, personal finances fell. Inflationary pressures services and propositions for our customers so have put significant strain on our customers in they have greater choice and access to the UK Business Banking and Barclaycard Consumer the UK and elsewhere, with many adapting to support they need to make their money work address these challenges, from changing their UK businesses. for their individual circumstances. spending habits to paying down higher cost Driving technology and digital innovation: debts. As a bank, we have an important duty to We continue to invest in our digital capabilities, play in society, and use our expertise to help upgrading our systems, moving to cloud people with their financial wellbeing, providing Highlights technology and implementing automation of them with the support they need to navigate • UK Personal Banking offers retail solutions to help customers with their day-to-day banking manual processes. This is intended to allow us these uncertain times, including help with needs. money management and budgeting. to deliver a more personalised digital experience, reduce cost and create additional • UK Business Banking serves business clients, from high-growth start-ups to SMEs, with There continues to be a significant shift towards capacity to support more of our customers. It specialist advice for their business banking needs. digital adoption and demand for digital financial aims to give us the capability to drive service • Barclaycard Consumer UK is a leading credit card provider, offering flexible borrowing and services to meet day-to-day needs. The and improve financial inclusion. payment solutions, while delivering a leading customer experience. changes in competition over the past decade Continuing to grow our business: makes addressing these evolving customer We are pursuing partnership and acquisition expectations even more pertinent. We aim to opportunities to build and deliver better provide customers with banking services in new propositions and services, while continuing to and innovative ways, embracing technology as a innovate across our Barclays platforms to means of making things simpler, more unlock new and sustainable income streams. In transparent and more secure. Whilst we have the unsecured lending space, in particular, we are working with partners such as Avios, to seen an increase in the number of customers adapt to evolving customer demands as they moving to digital, there remains a cohort of Measuring where we are look for flexibility, convenience and safety from customers who are digitally less confident, and their lending solutions - driving a shift from require more traditional points of engagement. overdrafts, towards reward credit cards and UK regulation continues to evolve, seeking to instalment lending. £7.3bn £2.6bn +11 provide higher levels of protection for the Evolving our societal purpose: Income Profit before tax Barclays UK NPS consumer. The Consumer Duty, due to come We are working across the communities in 2021: £6.5bn 2021: £2.5bn 2021: +11 into force in July 2023, is focused on ensuring which we serve to support financial inclusion that firms deliver good customer and client and recognise our role in supporting the outcomes through: ensuring those products transition towards a low-carbon economy. We and services provide fair value; enabling are reinventing how we support customers in informed decision-making and providing the community and also seeking to preserve support that meets the needs of customers £4.3bn 18.7% +12 access to banking for consumers and and clients. These key principles align with the Operating expenses Return on Tangible Equity Barclaycard NPS businesses over the long term. Barclays UK Purpose and strategy, and we are 2021: £4.4bn 2021: 17.6% 2021: +4 committed to ensuring that the Consumer Duty is demonstrably embedded throughout the organisation.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 50 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews (continued) We have been focused on helping customers We have seen acute pressures in areas impacted We continue to evolve our physical service Year in review boost their financial resilience in the long term, by by economic events, such as an increase in model, expanding Barclays Local - an alternative Barclays UK delivered a RoTE of 18.7% (2021: encouraging healthy saving habits through the complaints related to mortgages as customers branch presence for those who need in-person 17.6%), as the continued evolution into a next launch of our Rainy Day Saver account, as well as rush to find the right rates for them in light of support - which includes mobile banking vans and generation, digitised consumer bank delivered providing one-to-one support for customers Bank of England interest rate changes. pop-up banking sites in community centres, strong returns and cost efficiencies, which experiencing financial hardship through our libraries and business hubs. This transformation The Net Promoter Score (NPS) for Barclays UK combined with rising interest rates, contributed expert financial assistance teams. reflects the reality of the rapid digitisation of was relatively stable throughout 2022 at +11. to a cost: income ratio of 60% (2021: 68%). transactional banking, as customers demand We continue to focus on improving the overall This reflects the returning capability to service This year, the UK has seen its fastest increase in more convenient, simpler ways to bank that fit customer experience by identifying and our customers after previous declines during the inflationary pressure on household budgets in 40 their lives. supporting the removal of the root causes of pandemic. However, we recognise that we need years, and we have focused on making sure our customer complaints. Complaints in 2022 have to continue to push forward our initiatives to These new formats seek to ensure we leave no- customers have the support they need to further reduced, with volumes decreasing 17% drive further improvements in customer one behind and remain available, in person, to navigate these challenging times. This includes year on year excluding PPI complaints, or experience, including improving and expanding support the small proportion of customers our Money Management Hub, which provides decreasing 18% when looking at total our digital journeys. Barclaycard UK NPS unable to self-serve digitally, who value physical tools and information directly to our customers, complaints. This has been achieved through the continued to trend upwards throughout 2022 to presence when things go wrong or to support giving them a better grasp of their spending continued stability of our platforms, alongside +12, in line with the market, as usage and them through vulnerability. behaviours and the steps they can take to regular and direct communications with availability of credit became more important improve their financial wellbeing. Supporting vulnerable customers across all of customers during times of change, particularly in to customers. our Barclays channels remains a key focus. We relation to our service model. have trained over 16,000 frontline colleagues to better recognise the subtle signs of vulnerability when speaking to customers who might need Since launching our first van in August 2020, additional support, and are encouraging them to Barclays mobile banking vans we’ve supported c.9,500 customers across allow us to put an indicator on their banking We are working to reduce our own emissions c.9,500 238 locations such as hospitals, schools, records to ensure that Barclays, holistically, at Barclays and have recently introduced our markets and retail parks. We are at the start customers supported understands their needs and can better serve first fully electric mobile banking van. Vans of this journey, introducing another six since launching our first van them across all their touchpoints as a result. are just one of the ways Barclays provides an electric mobile banking vans in early 2023, as Whilst we have made progress, we have more to accessible in-person service, supporting part of our ambition to transform our entire do to embed this with colleagues, including customers in remote and rural locations, as existing fleet of vehicles in the UK to electric further training and support materials. well as growing our business in strategic by 2025. locations. Further details on mobile banking vans and how to book + an appointment can be found at: events.uk.barclays/ barclaysvan/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 51 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews (continued) As part of the changes to our physical branches, We have delivered a regular programme of We continue to work on green finance products, For our business customers, we continued to we are working to ensure that customers who customer education on fraud, scams and mules recognising that uptake is relatively small but develop our partnership with Propel, helping to rely on cash can still access it and get the support alongside our new 'Scan for a Scam' campaign, growing, reflecting economic constraints and the provide financing for businesses wanting to they need. Barclays is a member of the Cash leveraging social media and influencers to ensure current immaturity of the policy environment. invest in renewable assets. To support this, in Action Working Group (CAG), working with as broad a reach as possible. We have also 2022, we launched a reduced interest rate This year we expanded our green mortgages industry banks and consumer groups, the Post invested in upskilling and educating colleagues proposition incentivising the purchase of proposition to support the transition to a low- Office and LINK, in an agreement on shared across economic crime, and as a result, electric vehicles. carbon economy, launching the Barclays Green services such as banking hubs, helping to ensure complaints relating to fraud, scams and mules Home Buy-to-Let Mortgage product. We also long-term cash availability across the UK. have reduced by 17% versus 2021. launched a Greener Home Reward pilot, We also rolled out a new Cashback Without We continued to unlock new and sustainable providing eligible UK mortgage customers with Purchase service, in partnership with Barclaycard sources of income, which also provide innovative cash rewards when retrofitting their homes, for Payments, creating thousands of new locations propositions for our customers. We have example, when installing double or triple glazing, for consumers to withdraw cash from shops, reached an agreement to acquire Kensington solar panels or insulation. cafes, restaurants and other small businesses for Mortgage Company, a specialist mortgage free. We anticipate that it will also help local lending platform focused on providing community cash recycling and boost business mortgages via brokers to customers with footfall. complex incomes, together with a portfolio of UK mortgages. This will complement our existing We continue to invest in smarter technologies to residential mortgage offerings and give us the improve the customer and colleague experience, This will continue to include physical Looking ahead chance to support even more customers. particularly for our digital journeys. For example, branches, complemented with flexible Our aim remains putting customers and Regulatory approval has been obtained and the our mortgage customers can now manage their banking pop-ups in community spaces, clients at the heart of the decisions we make, transaction is expected to complete in Q1 2023. mortgage through the Barclays app, including banking pods and mobile banking vans. We helping to ensure good customer outcomes Within our unsecured lending proposition, we are switching onto a new rate up to 180 days before continue to ensure greater accessibility of for every customer and client. We are also working with partners to provide differentiated their current rate expires instead of 90 days cash in local and remote areas through our continuing to adapt our service model for solutions for our customers, helping them make previously, and have the ability to apply for work with local businesses and the Post customers, creating a more efficient, more the most of their day-to-day spending, including additional borrowing. This provides customers Office. resilient and seamless service at a pace that launching two new co-branded credit cards this with greater choice of channel, and avoids the We are building partnerships in the open suits our customers' expectations. We’re year in partnership with Avios. need for an appointment to be made when market and work across Barclays to deliver also investing significantly in growing our advice is not required. In 2022, our active mobile additional value for our customers and financial assistance teams, to be on hand customers grew to 10.5 million and we hit a businesses through our size and scale, and should customers and businesses run into record of 15.4 million logins in a single day, continue to invest in digital platforms, remove some form of financial difficulty and need demonstrating the impact of going digital-first. unnecessary processes and costs and aim for specialist support. a seamless self-service for customers. More interactions are moving to digital and virtual channels, with customers demanding We are acutely aware of increasing consumer better digital services and fewer customers expectations on climate and sustainability, using our branch network. Where traditional and we are committed to supporting our branches may have been the most customers and clients through the transition appropriate point of engagement in the past, to a low-carbon economy with products and we are looking to increase the range of more propositions which support greener choices. flexible options for our customers; delivering human support for those customers who are For more information go online: digitally less confident. + home.barclays

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 52 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews (continued) Market and operating environment Focus areas Barclays International: We saw global inflationary pressures and Investing in high-growth sectors and maintaining high returns in Investment responsive monetary policy action in the form of Banking: interest rate increases by central banks across Corporate and the globe have a profound effect on financial We are continuing to invest in high-growth markets in 2022. Bond markets in particular were sectors such as Technology and Healthcare, Investment Bank affected, with growth in yields not seen for and we aim to sustain the investment we have decades. Many global equity markets were off made in our high-returning, fee-driven M&A Within Barclays International, the Corporate and double digit percentages in the context of these and Equities businesses. a Investment Bank comprises Investment Banking, macro drivers. Becoming an electronic-first Global Markets business, growing in targeted areas: Corporate Banking and Global Markets, aiding money In Global Markets, we are prioritising service As a consequence of this macro instability, global managers, financial institutions, governments, excellence for our clients through simplification capital markets retreated to pre-pandemic levels supranational organisations and corporate clients to of our systems architecture, investing in Prime from their record highs in 2021. Market volatility, Brokerage, further bolstering our inflation and geopolitical uncertainty created manage their funding, financing, strategic and risk intermediation businesses and focusing on headwinds for dealmaking across all products, management needs. financing solutions to build a diversified with significant declines in High Yield bonds a portfolio that performs across the (-80%) and Initial Public Offerings (-70%). Highlights economic cycle. • Our Global Markets business provides a broad range of clients with market insight, execution Capturing opportunities as we transition services, tailored risk management and financing solutions across equities, credit, securitisations, Across our CIB businesses, the opportunities to a low-carbon economy: rates and foreign exchange products. presented by the climate transition and the We aim to support clients who want to make • Investment Banking provides clients with strategic advice on mergers and acquisitions (M&A), broader sustainability agenda continued to grow their business models more sustainable, and corporate finance and financial risk management solutions, as well as equity and debt issuance despite challenging market conditions. use our scale and capital markets expertise to services. mobilise capital for the transition to a low- • Corporate Banking provides working capital, transaction banking (including trade and payments), and carbon economy. lending for multinational, large and medium corporates, and for financial institutions. Improving integration: Across our businesses we are focused on Measuring where we are serving clients in an integrated way. Our efforts to broaden and deepen our CIB offering across Europe will form an important part of this effort. 6th £13.4bn £4.3bn In Corporate Banking we will continue to focus Investment Banking Income Profit before tax on delivering enhancements to how we engage global fee ranking 2021: £12.3bn 2021: £5.6bn th a with clients through our digital proposition and (2021: 6 ) Dealogic ranking will continue to build our capabilities in the US and Europe. Broadly, we are focused on being a leading provider of digitally-enabled lending 6th and transaction banking services to our clients Global markets revenue rank £8.9bn 10.2% Notes th in our chosen markets across the globe. a Dealogic for the period covering 1 January 2021 to 31 December Operating expenses Return on Tangible Equity Largest non-US bank (2021: 6 ) 2022. 2021: £7.0bn 2021:14.3% Based on external reported b Market share for Barclays is based on our share of top 10 banks' b reported revenues. Peer banks include BoA, BNP, CITI, CS, DB, GS, Markets revenues JPM, MS and UBS.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 53 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews (continued) We continued to invest in enhancing our Global Year in review Investor reaction Powering Portland General Markets digital proposition, including our Corporate and Investment Bank RoTE was was strong for electronic trading capabilities and our digital self- Electric’s future with innovative Bringing together experts from its Power & 10.2% (2021: 14.3%), a strong return in a year the nearly service platform, as well as our financing Utilities, Equity Capital Markets and with challenging market conditions. This $500 million platforms across Fixed Income and Equities. Sustainable Capital Markets teams, in performance reflected the benefits of income offering, which was October 2022 Barclays structured a Green In Corporate Banking, revenues grew off the back diversification and continued investment in multiple times Use of Proceeds equity offering for Portland of strong interest income given the rising sustainable growth, partially offset by the net oversubscribed General Electric, which saw the issuance of interest rate environment, although this impact of the Over-issuance of Securities. and priced at a 11.615 million shares of common stock. performance was partly offset by rising Investment Banking revenue declined compared tight discount relative This unique structure gives investors publicly impairments owing to the increasingly with a strong performance in 2021, driven by to the size of the deal. tradable common shares, whose proceeds challenging business environment. significant declines in the overall market The proceeds of this offering are are earmarked for investment toward its 2022 was defined by an increased focus on capital opportunity. We are ranked sixth in overall global designated to the construction a 311 MW wind decarbonisation goals. discipline, including increased selectivity around fee share for the third year running and are top energy facility, as well as additional renewable a risk taking and a streamlined and consistent five in Debt Capital Markets . and battery storage projects. approval process across all of CIB lending. We continued to invest in our Investment For further information go online + at barclayscorporate.com We made significant progress in 2022 in Banking coverage of high-growth sectors, expanding our international capabilities, including expanding our Sustainable Financing particularly with the build out of our Corporate business. Founded in 2019, our sustainability- Banking businesses in the US and Europe. We momentum and improve revenue focused investment banking effort last year Looking ahead have also continued to invest in strengthening contribution from our equity and advisory continued to advise and raise capital for our digital capabilities, including driving the offerings. Across our Corporate and Investment Bank, companies seeking to address environmental or adoption of iPortal to provide our clients with we remain focused on maintaining our client- social challenges, helping our firm deliver on its Aligned to our new climate-related target to centric approach and developing seamless access to our transaction banking strategic priority of assisting our clients with the facilitate $1trn of Sustainable and Transition opportunities to grow our business and product set. transition to a low-carbon economy. Financing, we will continue to invest in increase returns. We continue to focus on Our Research team continued to deliver creating a centre of excellence for Our Global Markets business acted as a market- growth in high-returning, capital efficient differentiated insights to our clients, acting as a sustainable finance, and broaden the range maker and liquidity provider to clients across the parts of our business and to sustain our focus driver of thought leadership for the CIB. We of ESG capital market product types we offer globe, playing an important role in helping them on cost discipline and operational rigour. sought to further drive the ESG agenda in across more client segments. to find opportunities and manage risk during a In Global Markets we are focused on further support of our climate strategy in 2022, through continued period of heightened market In Corporate Banking, we continue to developing our electronic trading-led establishing a new Sustainable and Thematic disruption. During a year which experienced monetise investments in our European and business, investing in low touch and machine Research team, focused on identifying multi- several distinct episodes of volatility, we US offering with an emphasis on growing our learning capabilities to drive efficiency and sector thematic trends that could shape the materially increased revenues and captured Transaction Banking business. Our focus will scale and better serve the needs of our future business environment, and partnering with share relative to our peers. remain on steadily improving our credit investor base. We will continue to invest in our Data and Investment Science teams to bring portfolio returns by reallocating risk The importance of business diversification growth in Securitised Products, Emerging data-driven insights to our clients. weighted assets to higher-returning across Global Markets was evidenced by the Markets, and parts of our Rates and Foreign opportunities. We continue to invest in our gains in our FICC businesses, which helped to Exchange businesses. trade, payments and wholesale lending offset declines in our Equities business. Investment Banking continues to invest in offerings and look to further enhance our high-priority sectors, particularly in digital proposition. Healthcare and in Technology in the US and Europe. More broadly, we aim to build on Note For further information go online at a Dealogic for the period covering 1 January 2020 to + barclayscorporate.com 31 December 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 54 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews (continued) Market and operating environment Focus areas Barclays International: We continue to see recovery in consumer We strive to deliver next-generation consumer financial services, offering best-in-class finance, activity and spending post the COVID-19 private banking and payment solutions. pandemic. As cash use declines and online Consumer, Cards and Responding to changing consumer behaviour: transactions grow, the shift towards digital We continue to invest in the digitalisation of our services and payments continues. businesses, delivering new products and Payments capabilities to reflect growing trends. This We are seeing a rise in the popularity of includes focusing on scaling our existing e- alternative payment methods such as Buy Now The Consumer, Cards and Payments division of commerce solutions to add further value to our Pay Later and Open Banking, not only online but Barclays International is comprised of our International digitally engaged customers, small businesses also face to face, as consumer behaviour and corporates. continues to evolve and the need for omni- Cards and Consumer Bank, Private Bank and Building a more efficient channel integrated solutions increases. Barclaycard Payments businesses. and seamless business: We are accelerating our automation agenda to The rise in inflation and the interest rate Highlights drive operational efficiency and create a more environment is driving changes in consumer • As part of our International Cards and Consumer Bank, in the US we have a partnership-focused seamless, digital customer experience. behaviour, particularly around demand for business model, offering co-branded and private-label credit cards to consumers through our personal loans and the impact of the increasing Winning new partnerships: relationships with some of America’s well known brands, including American Airlines and Gap Inc. We cost of borrowing. We are focused on broadening relationships also offer online retail deposits products (savings and certificates of deposit), personal loans, instalment with our existing partners and pursuing new payments, and point-of-sale financing. Market uncertainty has moderated Private Bank partnerships, particularly in the US. We are also • In Germany, we offer multiple consumer products, including own-branded and co-branded credit clients' appetite to invest in regular equity- building capabilities to offer new financing cards, online loans, electronic Point of Sale (ePOS) financing and deposits. related strategies while the comeback of solutions across all our markets. • Barclaycard Payments enables businesses of all sizes to make and receive payments. significant positive fixed income yields has Growing in key markets: created strong tailwinds for alternate strategies. • Our Private Bank offers banking, credit and investment capabilities to meet the needs of our clients We are continuing to drive growth in our In parallel, higher market volatility is supporting across the UK, Europe, the Middle East and Africa, and Asia. strategic home and international markets. In strong investment in transactional activity and 2023 the planned integration of the Private revenue as well as supporting demand for Bank and Barclays UK Wealth and Investment Measuring where we are private market funds. Management business will strengthen our position in the UK, while we continue to deepen With an increasing regulatory focus on our existing footprint outside the UK and further consumer protection (including the FCA’s strengthen and expand our product capabilities. £4.5bn £0.7bn +44 Consumer Duty due to come into force in July Income Profit before tax US Consumer Bank Care tNPS 2023), we continue to provide customers and 2021: £3.3bn 2021: £0.8bn 2021: +43.4 clients with the information and tools to select the right products and services best suited for their needs. This is at the foundation of our business, ensuring we act to deliver good 74.1% outcomes and avoid harms for our customers £3.1bn 10.0% CC&P US customer and clients. Operating expenses Return on Tangible Equity a digital engagement 2021: £2.4bn 2021: 15.0% 2021: 71.8% Note a Excluding new Gap customers.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 55 report information sustainability report Governance review review statements Annual Report 2022 Divisional reviews (continued) • Our Payments business maintained its The success of CDFIs, small-medium businesses We believe Barclays’ core Values of Respect, Year in review position as one of the foremost payment and non-profits are key to a thriving community. Integrity, Service, Excellence, and Stewardship CC&P delivered a RoTE of 10% (2021: 15%), and e processors in Europe . We secured new client Barclays has predefined goals with specific reflect our commitment to fair lending and fair continued to invest for growth while absorbing a relationships, and retained others, including performance targets that we must meet each treatment principles and practices. We strive to provision for customer remediation costs Ryanair and Getir UK. We’ve also added to our year in order to be considered in compliance with develop long-term relationships by providing relating to legacy loan portfolios. capabilities with the launch of Smartpay CRA guidelines. Barclays has met its CRA goals products and services that meet prospective and ▪ We successfully launched a new long-term Touch, our new card acceptance solution as for 2022, evidencing that we are continuing to existing customer needs, avoid causing programme with Gap Inc., the largest specialty a well as Cashback Without Purchase, a new invest in the communities where we live, work prospective and existing customer detriment or apparel company in the US , to issue both co- service enabling UK consumers to withdraw and serve. harm, and place our prospective and existing branded and private label credit cards and also cash for free from thousands of local retailers customers' interests at the heart of our strategy, renewed our existing partnership agreement Barclays Bank Delaware (BBDE) is committed to with Carnival Cruise Lines, among other and small businesses. planning, and decision-making processes. fair and equitable treatment of all prospective partners. Both are good examples of how we Notes ▪ In Germany, we continue to be a leading and existing customers without regard to race, a Gap Inc., 2020. maintained our position as a top 10 credit card f provider of consumer finance through our sex, colour, national origin, religion, age, marital b b Nilson Report #1204 (mid-year ranking). issuer in the US. c Excluding Cap customers. credit cards and personal loans business. We status, disability, sexual orientation, military d Care tNPS provides an accurate measure of customer sentiment ▪ We continued to invest in our digital servicing relaunched our Deposits Open Market offer to status, gender identity, familial status, Limited across our Fraud, Dispute, Credit and Care channels and replaces the model, reaching a digital active user rate of relationship NPS reported in the 2021 Annual Report. further diversify our revenue structure. English Proficiency, receipt of public assistance c 74.1% . We have seen a slight improvement e Nilson Report #1197 (May 2022). d income, and good faith exercise of rights under f Deutsche Bundesbank, Advanzia Bank S.A., plus own calculations. ▪ The Private Bank continued to drive its market on the Care Net Promoter Score in the US the Consumer Credit Protection Act. Consumer Bank, reaching +44, versus +43.4 strategy, deepen its footprint in established in 2021. markets, while monetising recent investments in Asia and EEA through new client acquisition. A Referral Agreement was also undertaken Launching Gap Inc. credit As we focus on our partnership-centric Looking ahead with Credit Suisse, enabling the Private Bank to business model in the US, we will also scale our card programme Within Consumer, Cards and Payments, we grow its business in Africa. We continued to existing proposition to deliver more value to continue to invest in building our technology The Barclays US Consumer Banking business is drive enhancements to client experience, as our partners across a broader range of sectors, and digital capabilities, to meet consumer now the exclusive credit card issuer for Gap well as product offering, including asset diversifying our business. demand and responding to an increasingly Inc.’s family of purpose-led, lifestyle brands management capabilities. difficult economic environment. The Private Bank remains focused on targeted following the successful migration of nearly 10 markets, deepening our client footprint in the million existing card members and doubled the We aim to further scale our Payments Financial inclusion in our US UK, Europe, the Middle East and Africa, and business. Our goal is to deliver a world-class size of our US customer base. consumer business Asia. The appetite for sustainable investing unified payments experience for customers, Delivering next generation retail digitised The Community Reinvestment Act (CRA) is a US by combining payments and banking carries on growing at pace and we continue to consumer financial services is a strategic federal law designed to encourage financial technology. manage sustainable portfolios for a broad growth priority for Barclays, and following a institutions to help meet the needs of borrowers range of clients. We intend to enhance product We continue to deepen our relationships with year-long effort to build, test and launch the in all segments of their communities, including capabilities and drive better client experiences corporates by collaborating with the new programme, Gap, Old Navy, Banana low and moderate-income neighbourhoods. by improving end-to-end platform automation Corporate and Investment Bank; grow our Republic and Athleta customers can now Barclays meets the CRA requirement by and delivering our digital agenda. We continue offering to small businesses; and evolve with apply for and use a new, Barclays-issued supporting and investing in local Community to make good progress in integrating BUK's our multinational customers. credit card through multiple digital and Development Financial Institutions (CDFIs), Wealth and Investment Management business In Germany, we are leveraging proprietary and online channels and in over 2,100 retail small-medium businesses and non-profits. with our Private Bank to provide a more partner distribution channels, and developing stores across the United States and Puerto seamless client experience. seamless onboarding and underwriting Rico. capabilities, to grow our core business. For more information go + online at home.barclays

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 56 report information sustainability report Governance review review statements Annual Report 2022 Managing risk The second line of defence is made up of Risk and Compliance and oversees the first line by Prudently managing risk setting limits, rules and constraints on their To support the Group’s operations, consistent with the risk appetite. The third line of defence is comprised of Internal for stakeholders ambition to be a net zero Audit, providing independent assurance to the bank by 2050, Climate risk Board and Executive Committee on the Barclays is exposed to internal and external risks as effectiveness of governance, risk management became a Principal Risk at part of its ongoing activities. These risks are managed and control over current, systemic and evolving risks. the start of 2022. as part of our business model. The Legal function provides support to all areas of the business and is not formally part of any of Enterprise Risk Management Risk appetite the three lines of defence, The Legal function is During 2022, Barclays ran a stress test to assess Framework (ERMF) responsible for the identification of all legal and Risk appetite defines the level of risk we are its capital adequacy and resilience under a severe regulatory risks. Except in relation to the legal prepared to accept across the different risk At Barclays, risks are identified and overseen in but plausible macroeconomic scenario. The advice it provides or procures, it is subject to types, taking into consideration varying levels of accordance with the ERMF, which supports the internal stress test was informed by the Bank of second line oversight with respect to its own financial and operational stress. Risk appetite is business in its aim to embed effective risk England 2022 regulatory stress test featuring operational and conduct risks, as well as with key to our decision-making processes, including management and a strong risk management high and persistent inflation, rising global interest respect to the legal and regulatory risks to which ongoing business planning and setting of culture. rates, a severe UK recession brought by falling the Group is exposed. strategy, new product approvals and business household real incomes, job losses leading to a The ERMF governs the way in which Barclays change initiatives. high unemployment rate, energy and cost of Monitoring the risk profile identifies and manages its risks. The Group sets its risk appetite in terms of goods shocks, increasing corporate defaults, and Together with a strong governance process, The management of risk is then embedded into performance metrics as well as a set of mandate severe house and real estate price shocks. For using business and Group level Risk Committees each level of the business, with all colleagues and scale limits to monitor risks (i.e. to ensure further details of the stress test, please refer to as well as Board level forums, the Board receives being responsible for identifying and controlling business activities are aligned with expectations page 59. regular information in respect of the risk profile of risk. and are of an appropriate scale relative to the risk the Group, and has ultimate responsibility for We believe that our structure and governance Given the increasing risks associated with climate and reward of the underlying activities). During Group risk appetite and capital plans. Information supports us in managing risk in the changing change, and to support the Group’s ambition to 2022, the Group’s performance remained within received includes measures of risk profile against economic, political and market environments. be a net zero bank by 2050, Climate risk became its risk appetite limits. risk appetite as well as the identification of new For further detailed analysis of approach to risk a Principal Risk at the start of 2022. + management and risk performance, please see our full Risk and emerging risks, which are derived by Three lines of defence review on pages 266 to 377 of Part 3 of the Annual Report mapping risk drivers, identified through horizon The first line of defence is comprised of the scanning, to risk themes, and similar analysis. revenue-generating and client-facing areas, along with all associated support functions, including Finance, Treasury, Human Resources and Operations and Technology. The first line identifies the risks, sets the controls and escalates risk events to the second line of defence. Employees in the first line have primary responsibility for their risks and their activities are subject to oversight from the relevant parts of the second and third lines.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 57 report information sustainability report Governance review review statements Annual Report 2022 Managing risk (continued) The Enterprise Risk Management Framework defines nine Principal Risks Principal Risks Risks are classified into Principal Risks, as below How risks are managed The risk of loss to the Group from the failure of clients, customers or counterparties Credit risk teams identify, evaluate, sanction, limit and monitor various forms of credit exposure, individually and Credit risk (including sovereigns), to fully honour their obligations to the Group, including the whole in aggregate. and timely payment of principal, interest, collateral and other receivables. The risk of loss arising from potential adverse changes in the value of the Group’s assets A range of complementary approaches to identify and evaluate Market risk are used to capture exposure to Market risk and liabilities from fluctuation in market variables including, but not limited to, interest rates, Market risk. These are measured, limited and monitored by market risk specialists. foreign exchange, equity prices, commodity prices, credit spreads, implied volatilities and asset correlations. Liquidity risk Treasury and Capital risk is identified and managed by specialists in Capital Planning, Liquidity, Asset and Liability Treasury and Management and Market Risk. A range of approaches are used appropriate to the risk, such as limits; plan The risk that the Group is unable to meet its contractual or contingent obligations or that it Capital risk monitoring; and stress testing. does not have the appropriate amount, tenor and composition of funding and liquidity to support its assets. Capital risk The risk that the Group has an insufficient level or composition of capital to support its normal business activities and to meet its regulatory capital requirements under normal operating environments and stressed conditions (both actual and as defined for internal planning or regulatory testing purposes). This also includes the risk from the Group’s pension plans. Interest rate risk in the banking book The risk that the Group is exposed to capital or income volatility because of a mismatch between the interest rate exposures of its (non-traded) assets and liabilities. The impact on Financial and Operational Risks arising from climate change through physical The Group assesses and manages its Climate risk across its businesses and functions in line with its net zero Climate risk risks, risks associated with transitioning to a low-carbon economy and connected risks ambition by monitoring exposure to elevated risk sectors, conducting scenario analysis and risk assessments for arising as a result of second order impacts on portfolios of these two drivers. key portfolios. Climate risk controls are embedded across the financial and Operational Principal Risk types through the Barclays Group's frameworks, policies and standards. The risk of loss to the Group from inadequate or failed processes or systems, human The Group assesses and manages its Operational risk and control environment across its businesses and Operational risk factors or due to external events (for example, fraud) where the root cause is not due to functions with a view to maintaining an acceptable level of residual risk. credit or market risks. The potential for adverse consequences from decisions based on incorrect or misused Models are evaluated for approval prior to implementation, and on an ongoing basis. Model risk model outputs and reports. The risk of poor outcomes for, or harm to, customers, clients and markets, arising from the The Conduct Risk Management Framework (CRMF) sets out the control objectives and minimum control Conduct risk delivery of the Group's products and services. requirements which must be implemented to manage Conduct risk. A selection of tools is mandated in the CRMF and Barclays Control Framework to support with the assessment of conduct risks, whilst the governance of Conduct risk is fulfilled through management committees and forums with clear escalation and reporting lines to Board-level committees. The risk that an action, transaction, investment, event, decision, or business relationship Reputation risk is managed by embedding our Purpose and Values, and maintaining a controlled culture within the Reputation risk will reduce trust in the Group’s integrity and/or competence. Group, with the objective of acting with integrity, enabling strong and trusted relationships to be built with customers and clients, colleagues and broader society. Each business assesses Reputation risk using standardised tools and the governance is fulfilled through management committees and forums, clear escalation and reporting lines to the Group Board. The risk of loss or imposition of penalties, damages or fines from the failure of the Group to Legal risk is managed by the identification of legal risks by the Legal function, the engagement of the Legal Legal risk meet its legal obligations, including regulatory or contractual requirements. function in situations that have the potential for legal risk, and the escalation of legal risk as necessary.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 58 report information sustainability report Governance review review statements Annual Report 2022 Viability statement ▪ reviewed how those risks are identified, ▪ reviewed the draft statutory accounts and the managed and controlled (further detail financial performance of the Group provided on pages 56 to 57) Consideration ▪ reviewed the possible impact of legal, ▪ considered the WCR which provides an competition and regulatory matters set out in assessment of forecast CET1, leverage, Tier 1 Note 26 to the financial statements on pages of the long-term viability and total capital ratios, as well as the build-up 479 to 484. of minimum requirement for own funds and The Group's Medium Term Plan is based on eligible liabilities (MREL) up to the end of 2025 of Barclays assumptions for macroeconomic variables such ▪ considered the Group’s Medium Term Plan as interest rates, inflation, unemployment, which ▪ reviewed the Group’s liquidity and funding have been consistently applied for the purpose The financial statements and accounts profile, including forecasts of the Group’s of forecasting the Group’s capital and liquidity have been prepared on a going concern basis. internal Liquidity Risk Appetite (LRA) and position and ratios, as well as any credit regulatory liquidity coverage ratios impairment charges or releases. The three-year time frame has also been chosen Provision 31 of the 2018 UK Corporate ▪ considered the Group’s viability under a Assessment of the Group's risk profile because: Governance Code requires the Directors to specific internal stress scenario (see below for Risks faced by the Group’s business, including in make a statement in the Annual Report regarding ▪ it is within the period covered by the formal further detail) respect of financial, conduct and operational the viability of the Group, including an explanation medium-term plans approved by the Board ▪ considered the stability of the major markets in risks, are controlled and managed within the of how they assessed the prospects of the which contain projections of profitability, cash which it operates, supply chain resilience and Group in line with the ERMF. Executive Group, the period of time for which they have flows, capital requirements and capital material known regulatory changes to be management sets a risk appetite for the Group, made the assessment and why they consider resources enacted which is then approved by the Board. Limits are that period to be appropriate. ▪ it is also within the period over which internal ▪ considered the sustainability of any future set to control risk appetite, within which Time horizon stress testing is carried out capital distributions businesses are required to operate. In light of the analysis summarised below, the ▪ it is an appropriate horizon over which to ▪ considered scenarios which might affect the Management and the Board then oversee the Board has assessed the Group’s current viability, consider the impacts of new regulations in the operational resilience of the Group ongoing risk profile. Internal Audit provides and confirms that the Directors have a financial services industry. independent assurance to the Board and ▪ considered factors that may inform the impact reasonable expectation that the Group will be Executive Committee over the effectiveness of The Directors are satisfied that this period is of a severe recession in major economies with able to continue in operation and meet its governance, risk management and control over sufficient to enable a reasonable assessment of affordability pressures on consumers from liabilities as they fall due over the next three current and evolving risks. viability to be made. high inflation and rising interest rates, energy years. This time frame is used in management’s supply pressures, and financial markets A full set of material risks to which the Working Capital and Viability Report (WCR), Considerations instability organisation is exposed can be found in the prepared at the start of February 2023. The WCR In making its assessment the Board has: material existing and emerging risks on pages ▪ considered the impact of the Group’s ambition is a formal projection of capital and liquidity based ▪ carried out a robust and detailed assessment 269 to 281 in Part 3 of the Report. to be a net zero bank by 2050 and support its upon formal profitability forecasts. The of the Group’s risk profile and material existing clients’ transition to a low-carbon economy, availability of the WCR gives management and and emerging risks (see below for further including the need to continue to incorporate the Board sufficient visibility and confidence on details), in particular those risks which senior climate considerations into its strategy, the future operating environment for this time management believes could cause the business model, the products and services it period. Group’s future results of operations or provides to customers and its financial and financial condition to differ materially from non-financial risk management processes current expectations or could adversely impact the Group’s ability to meet its material regulatory requirements

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 59 report information sustainability report Governance review review statements Annual Report 2022 Viability statement (continued) Certain risks are additionally identified as key ▪ evolving operational risks (notably cyber • cost of goods increase coupled with energy Bank's Climate Risk Framework as well as its themes and monitored closely by the Board and security, technology and resilience) and the price inflation at a time of falling demand financial resilience to climate risk. Board Committees. These are chosen on the ability to respond to the new and emerging putting significant pressure on small and The Group-wide stress testing framework also basis of their potential to impact viability during technologies in a controlled fashion. medium businesses, increasing their default includes internal reverse stress testing the time frame of the assessment but in some rates As a universal bank with a diversified and assessments, conducted once a year, which aim instances the risks may continue beyond this • residential house prices in the UK decline 31%. connected portfolio of businesses, servicing to identify the circumstances under which the time frame. Commercial real estate prices are stressed customers and clients globally, the Group is Group’s business model would no longer be These particular risks include: even more, at 45%, reflecting more cyclical impacted in the longer term by a wide range of viable, leading to a significant change in business occupier demand and contagion effects from ▪ the potential impact of: (i) further rises in cost macroeconomic, political, regulatory and strategy and to the identification of appropriate the financial markets. of living pressures including inflation and accounting, technological, social and mitigating actions. Examples include extreme interest rates, particularly in developed environmental developments. The evolving macroeconomic downturn (‘severely adverse’) The above stress test outcome for the scenarios, or specific one-off events, covering markets and the possibility of elevated operating environment presents opportunities macroeconomic internal stress test assesses unemployment; (ii) a resurgence in COVID-19 and risks in respect of which we continue to both operational risk and capital/liquidity items. the Group's full financial performance over the and/or restrictions on movement imposed evaluate and take steps to appropriately adapt Reverse stress testing is used to help support horizon of the scenario in terms of profitability, locally to combat outbreaks or new strains; and our strategy and its delivery. ongoing risk management and is an input to the capital, liquidity and leverage to ensure the Group (iii) further trading disruption between the UK Group’s recovery planning process. remains viable. Stress tests and the EU and general supply chain Legal proceedings, competition, regulatory and Climate risk was not part of the internal stress The Board has also considered the Group’s disruption. These risks may result in an remediation/redress conduct matters are also test this year but is being explored separately as viability under a specific internal stress scenario. adverse impact on profitability and capital assessed as part of the stress testing process. part of a pilot scenario analysis assessing tail through increased costs and increased The latest macroeconomic internal stress test, Capital and LRA are set at a level designed to event climate risks. expected credit losses conducted in Q4 2022, was informed by the Bank enable the Group to withstand various stress Additionally, the Board considered the results of of England 2022 regulatory stress test with the scenarios. As part of this process, management ▪ failure to successfully adapt the Group’s the following external climate-related stress following narrative: operations and business strategy to address also identified actions, including cost reductions tests: the financial risks resulting from both: (i) the and withdrawal from lines of business, available to • high and persistent inflation (peaks at 17%) • The BoE announced in Q2 the results of the physical risk of climate change; and (ii) the risk restore the Group to its desired capital flight coupled with rising global interest rates (peak Climate Stress Test undertaken in 2021 which from the transition to a low-carbon economy path. These internal stress tests informed the 6% UK, 6.5% US) in an attempt to curb inflation considered the impact of three climate conclusions of the WCR. drives considerable affordability pressures on ▪ legal proceedings, competition, regulatory and scenarios covering both 'transition' and customers conduct matters giving rise to the potential The results of the macroeconomic internal 'physical' risks. This was an exploratory risk of fines, loss of regulatory licences and stress test were approved by the Board Risk • severe UK recession brought by falling exercise across the banking industry with a permissions and other sanctions, as well as Committee and allowed the Board to approve household real incomes, job losses leading to focus on the banking book. The aim was to size potential adverse impacts on our reputation the Medium Term Plan as being able to sustain a 8.5% unemployment rate, declining economic financial exposures to climate-related risks, severe but plausible scenario and remain within with clients and customers and on investor confidence and tight financial conditions. understand the challenges to business models confidence and/or potentially resulting in Risk Appetite. Other major economies experience very from these risks and enhance management of adverse impacts on capital, liquidity and similar shocks Based on current forecasts, taking account of climate-related financial risks. The exploratory funding material known regulatory changes to be nature of the exercise was specifically stated, ▪ sudden shocks or geopolitical instability in any enacted and having considered possible stress acknowledging climate stress testing scenarios, the current liquidity and capital of the major economies in which the Group capabilities are in their infancy hence it was not operates which could alter the behaviour of position of the Group continues to support the used to set capital requirements. depositors and other counterparties, affect Board’s assessment of the Group’s viability. • in addition, Barclays Bank Ireland undertook the ability of the firm to maintain appropriate the ECB Climate Risk Stress Test (CRST), an capital and liquidity ratios or impact the exploratory exercise designed to test both the Group's credit ratings

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 60 report information sustainability report Governance review review statements Annual Report 2022 Non-financial information statement Environmental statements Information to help Non-financial understand our Group and its impact, policies, due Statement or policy diligence and outcomes position Description • See our Climate and The Barclays Position on Climate Change sets out our approach Climate Change information statement Sustainability report based on a consideration of all risk and market factors to certain statement from page 69 in Part 2 energy sectors with higher carbon-related exposures or of the Annual Report. We use a variety of tools to track and measure our strategic emissions from extraction or consumption, or those which may have an impact in certain sensitive environments or on delivery, and collect both quantitative and qualitative communities, namely thermal coal mining, coal-fired power generation, mountain top coal removal, oil sands, Arctic oil and information to have a holistic view of our performance. gas and hydraulic fracturing ('fracking') The statement outlines Barclays' focus on supporting our clients to transition to a low- carbon economy, while helping to limit the threat that climate Certain elements of the non-financial information required pursuant to the Companies Act 2006 change poses to people and to the natural environment. is provided within this Report by reference to the following locations: • See the managing Non-financial information Section Pages We recognise that forestry and agribusiness industries are Forestry and impacts in lending and responsible for producing a range of commodities such as Agricultural Business model Business model 10-11 financing section from timber, palm oil and soy that are often associated with significant Commodities page 246 in Other environmental and social impacts, particularly in relation to Governance within Policies Non-financial information statement 60-62 statement biodiversity loss, tropical deforestation and climate change. Our the Governance Forestry and Agricultural Commodities Statement outlines our report in Part 3 of the Principal Risks Managing risk 56-57 due diligence approach for clients involved in these activities, Annual Report. ensuring that we support clients that promote sustainable Principal Risk management 282-295* forestry and agribusiness practices while respecting the rights of Risk performance 296-369* workers and local communities. Key performance indicators Key performance indicators 23-25 • See our Nature and We understand that industries can impact areas of high World Heritage biodiversity section biodiversity value including United Nations Educational, Scientific Site and Ramsar * in Part 3 of the Report from page 119 within and Cultural Organization (UNESCO) World Heritage Sites and Wetlands our Climate and Ramsar Wetlands. Our statement outlines our client due Sustainability report in The Non-Financial Reporting requirements contained in Sections 414CA and 414CB of the statement diligence approach to preserving and safeguarding these sites. Part 2 of the Annual Companies Act 2006 are addressed within this section by means of cross reference in order to Report. indicate in which part of the strategic narrative the respective requirements are embedded. We have used cross referencing as appropriate to deliver clear, concise and transparent reporting. • See our Climate risk Barclays is committed to managing the direct and indirect Environmental We have a range of policies and guidance (also available at home.barclays/esg-resource-hub/ section within the Risk environmental risks associated with commercial lending. risk in lending review section from reporting-and-disclosures/) that support our key outcomes for all of our stakeholders. Performance Environmental risk is regarded as a credit risk driver, and is page 282 in Part 3 of considered in the Barclays credit risk assessment process against our strategic non-financial performance measures, as shown from page 23, is one indicator of the Annual Report. through our Environmental Risk Standard. A dedicated the effectiveness and outcome of policies and guidance. Environmental and Climate Risk team is responsible for advising Across Barclays, policies and statements of intent are in place to ensure consistent governance on a on environmental and climate related credit risks to Barclays range of issues. For the purposes of the Non-Financial Reporting requirements, these include, but are associated with particular transactions and industries. not limited to: Environmental risks in credit are governed under the Client Assessment and Aggregation Policy and Standard, which are embedded within the Wholesale Credit Risk Control Framework, which is part of the Enterprise Risk Management Framework.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 61 report information sustainability report Governance review review statements Annual Report 2022 Non-financial information statement (continued) • See the managing Across Barclays, the privacy and security of personal Data protection Other Environmental-related policies and statements data privacy, security information is respected and protected. Our Privacy website Information to help and resilience section page governs how we collect, handle, store, share, use and understand our Group and from page 246 in dispose of information about people. We regard sound its impact, policies, due Other Governance privacy practices as a key element of corporate governance diligence and outcomes Statement or policy position Description within the and accountability. Governance report in • See our Climate risk The Climate Change Financial Risk and Operational Risk Climate Change Part 3 of the Annual section from page Policy outlines the requirements and policy objectives for Financial and Report. 282 in Risk Review in assessing and managing the impact on Financial and Operational Risk Part 3 of the Annual • home.barclays/ Barclays works in partnership with non-profit organisations, Operational Risks arising from the physical, transition and Donations Report. Policy content/dam/home- including charities and NGOs, to develop high-performing connected risks associated with climate change. This barclays/documents/ programmes and volunteering opportunities that harness incorporates identification, measurement, management and citizenship/our- the skills and passion of our employees. Barclays has chosen reporting. Financial and Operational Risks / Themes reporting-and-policy- to partner with a small number of organisations, allowing us associated with Climate Change are being managed in positions/Barclays- to have deeper relationships and ultimately enabling us to accordance with the requirements set out in this policy. donation- have the greatest impact on our communities in which we guidelines.pdf operate. Barclays does not accept unsolicited donation Governance and Financial Crime statements requests. Information to help • See the managing Barclays maintains a robust resilience framework with our Resilience understand our Group and data privacy, security clients’ and customers’ interests at the centre. Our aim is to its impact, policies, due and resilience section be able to continue delivering services and meet our clients’ diligence and outcomes Statement or policy position Description from page 246 in and customers’ needs during business disruptions, crises, Other Governance • See the Financial The Financial Crime Policy is designed to ensure that Financial Crime: adverse events and other types of threats. within the Crime section from Barclays' employees know how to identify and manage the Bribery and Governance report in page 246 in Other legal, regulatory and reputational risks associated with all corruption Part 3 of the Annual Governance within forms of bribery and corruption. Report. the Governance report in Part 3 of the • See the tax section Our Tax Principles are central to our approach to tax Tax Annual Report. from page 246 in planning, for ourselves or on behalf of our clients. We believe Other Governance • See the Financial Barclays’ Anti-Money Laundering Policy is designed to our Tax Principles have been a strong addition to the way we Financial Crime: within the Crime section from ensure that we comply with the requirements and manage tax, ensuring that we take into account all of our Anti-money Governance report page 246 Other obligations set out in UK legislation, regulations, rules and stakeholders when making decisions related to our tax laundering and Governance within • Barclays PLC Country industry guidance for the financial services sector, including affairs. The same applies to our Tax Code of Conduct. the Governance counter-terrorist Snapshot report at the need to have adequate systems and controls in place to report in Part 3 of the home.barclays/ financing mitigate the risk of the Group being used to facilitate Annual Report. annualreport financial crime. • See the Financial Sanctions are restrictions on activity with targeted Financial Crime: Crime section from Colleagues countries, governments, entities, individuals and industries Sanctions page 246 in Other that are imposed by bodies such as the United Nations (UN), Information to help Governance within understand our Group and the EU, individual countries or groups of countries. The Statement or policy position Description the Governance its impact, policies, due Barclays Group Sanctions Policy is designed to ensure that report in Part 3 of the diligence and outcomes the Group complies with applicable sanctions laws in every Annual Report. • See our section on The Board Diversity Policy confirms that the Board jurisdiction in which it operates. Board Diversity diversity within the Nominations Committee will consider candidates on merit Policy report of the Board against objective criteria and with due regard to the benefits Nominations of diversity in identifying suitable candidates for Committee on page appointment to the Board. 161 of Part 3 of the Annual Report

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 62 report information sustainability report Governance review review statements Annual Report 2022 Non-financial information statement (continued) Human Rights-related statements Codes of conduct Information to help Information to help understand our Group and understand our Group and its impact, policies, due its impact, policies, due diligence and outcomes diligence and outcomes Statement or policy position Description Statement or policy position Description N/A • See The Barclays Way Barclays Statement on the Defence Sector outlines our The Barclays Way is our code of conduct and outlines the Defence sector Code of Conduct section from page appetite for defence-related transactions and relationships. Purpose, Values and Mindset which govern our way of 246 in Other We provide financial services to the defence sector within a working across our business globally. It constitutes a Governance within specific policy framework. Transactions and relationships are reference point covering all aspects of colleagues’ working the Governance assessed on a case-by-case basis and legal compliance relationships, and provides guidance on working with report in Part 3 of the alone does not automatically guarantee our support. colleagues, customers and clients, governments and Annual Report. regulators, business partners, suppliers, competitors and • See our managing Barclays is committed to operating in accordance with the Human rights the broader community. impacts in lending and International Bill of Human Rights and takes account of other financing section from • See our supply chain Our approach to the way we do business needs to be internationally accepted human rights standards, including Third-party code of page 246 in Other section within the adopted by our suppliers when acting on behalf of Barclays. the UN Guiding Principles on Business and Human Rights conduct Governance within Society section of the To ensure a common understanding of our approach which (UNGPs). We take steps to ensure we are respecting human the Governance strategic report from will help us collectively drive the highest standards of rights in our own operations through our employment report in Part 3 of the page 43 conduct, we have created our Third Party Code of Conduct, policies and practices, in our supply chain through screening Annual Report. which details our expectations for Environmental and engagement, and through the responsible provision of Management, Human Rights, Diversity and Inclusion; and our products and services. living the Barclays Values. • See our managing Barclays recognises its responsibility to comply with all Modern slavery impacts in lending and relevant legislation including the UK Modern Slavery Act financing section 2015 and the Australian Modern Slavery Act 2018 (Cth). In from page 246 in • See our health and Our statement itself is an expression of Barclays accordance with the requirements of these two Acts, we Statement of Other Governance safety section from commitment to managing health and safety across the release an annual Barclays Group Statement on Modern Commitment to within the page 246 in Other organisation to protect the safety and wellbeing of our Slavery, which outlines the actions we have taken in seeking Governance report in Health & Safety Governance within colleagues, customers, suppliers, and any individual using to identify and address the risks of modern slavery and Part 3 of the Annual the Governance Report. our premises by providing and maintaining a safe working human trafficking in our operations, supply chain, and report in Part 3 of the environment that protects both physical and mental customer and client relationships. Annual Report. wellbeing.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 63 report information sustainability report Governance review review statements Annual Report 2022 ESG Ratings and Benchmarks Select ESG ratings and benchmarks ESG ratings MSCI ESG Rating ISS QualityScore Environment Scale (best to worst): Scale (best to worst): AAA to CCC 1 to 10 performance AA 1 Barclays’ rating was stable Barclays’ rating was stable 2021: AA 2021: 1 We are firmly committed to enhancing our disclosures 2020: A 2020: 1 and in engaging with industry-led initiatives intended Sustainalytics ESG Risk Rating ISS QualityScore Social Scale (best to worst): Scale (best to worst): to support an effective and trusted ESG 0-100 1 to 10 ratings market. 23.8 1 Barclays’ rating improved Barclays’ rating was stable 2021: 25.1 2021: 1 In 2022, we remained stable or improved for While the ESG ratings market is evolving rapidly, 2020: 23.9 2020: 1 most ratings, although we continue to focus on significant challenges remain. The ratings S&P Global CSA ISS QualityScore Governance improving certain underlying activities in landscape has increasingly become the focus of Scale (best to worst): Scale (best to worst): accordance with our overall sustainability reform. Regulators and other market participants 100 to 0 1 to 10 strategy. are looking to introduce principles to support the 75 9 Barclays’ rating declined slightly, but Barclays' rating declined consistency, clarity and robustness of ESG relative performance improved th Where our performance improved, we believe (95 2021: 7 ratings. this was driven by our new targets in relation to percentile) 2020: 8 climate, alongside enhancements in the We strongly support these initiatives and are 2021: 78 nd granularity of our disclosures. contributing to efforts to develop a voluntary (92 percentile) code of conduct as a member of the ESG Data 2020: 77 In addition to providing key ratings agencies with th (88 percentile) and Ratings Code of Conduct Working Group relevant data and information when requested, convened by the UK Financial Conduct Authority. CDP Climate Change ISS ESG Corporate Score we also engage when they consult on changes to their methodologies. We recognise markets and Please also refer to page 142 in Part 3 of the Annual Report for Scale (best to worst): Scale (best to worst): + details of BPLC Board consideration of matters relating to stakeholders need clear and consistent A to D- A+ to D the reporting and monitoring of ESG-related data in addition Barclays’ rating improved Barclays’ rating was stable A- C- information, and we fully support this objective. to how we manage Climate across our Board structures within the Other Governance section from page 246 in Part 3 2021: B 2021: C- of the Annual Report. 2020: B 2020: C- FTSE Russell ESG Rating Moody’s ESG Solutions Scale (best to worst): Scale (best to worst): 5 to 0 100 to 0 with advanced (>60) 4.7 55 Barclays’ rating improved Barclays’ rating was stable th (98 2021: 55 percentile) 2020: 49 2021: 4.2 nd (92 percentile) 2020: 4.7 Note: All scores updated as of 31 December 2022. th (94 percentile)

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 64 report information sustainability report Governance review review statements Annual Report 2022 ESG-related reporting and disclosures ESG-related reporting and disclosures Our approach to ESG reporting is driven by recognised external standards and frameworks. As these frameworks evolve, we will continue to assess and amend our approach to ESG disclosures appropriately. The aim with our ESG-related disclosures within TCFD reporting and disclosures KPMG LLP Limited Assurance ESG Resource Hub Our climate-related financial disclosures are now Barclays appoints KPMG LLP to perform limited this Annual Report is to outline the progress we included within this Annual Report. The majority independent assurance over selected ESG have made over the past year on ESG criteria Barclays' ESG Resource Hub provides more of the content can be found in our new climate content, which have been marked with the detailed technical information, disclosures that we have identified as important to our and sustainability report in Part 2 in addition to and our position statements on symbol Δ. customers and clients, shareholders and the Other Governance section within the environmental, social and governance stakeholders. Barclays continues to support The assurance engagement was planned and Governance report and Risk review sections in matters. It is intended to be relevant for efforts for enhanced ESG reporting and performed in accordance with the International Part 3 of the report. analysts, ESG investors, rating agencies, advocates for improved consistency across Standard on Assurance Engagements (UK) 3000 suppliers, clients and all other stakeholders. For further details on where to access TCFD-related topics, disclosures, ratings and benchmarks. We support Assurance Engagements Other Than Audits or + please see the TCFD content index on page 65. Further details can be found on the ESG Resource Hub the work of the International Sustainability Reviews of Historical Financial Information and + at: home.barclays/sustainability/esg-resource-hub/ ESG Data Centre Standards Board (ISSB) and continue to the International Standard on Assurance Within the ESG Resource Hub, our ESG (non- participate in a range of regional and global Engagements 3410 Assurance of Greenhouse a financial) Data Centre continues to provide a UN Principles for Responsible Banking (PRB) industry efforts to promote increased Gas Statements. A limited assurance opinion was central repository of all ESG-related data that is Barclays was one of the founding signatories of harmonisation on data, taxonomies and issued and is available at the website link below. published within the Barclays PLC Annual Report the UN PRB. We report annually on how we are disclosures. This includes details of the scope, reporting as well as additional information and granularity. implementing the Principles. ESG Additional Reporting Disclosures criteria, respective responsibilities, work Barclays provides additional disclosures within The Barclays PLC PRB Report 2022 can be found at: The ESG (non-financial) Data Centre can be accessed online performed, limitations and conclusion. No other + + home.barclays/sustainability/esg-resource-hub/reporting- within the ESG Resource Hub at: home.barclays/ the ESG Resource Hub. This includes our information in this Annual Report has been and-disclosures/ sustainability/esg-resource-hub/reporting-and-disclosures/ reporting with reference to the material topics subject to this external limited assurance. Note from the Sustainability Accounting Standards Further details on Limited Assurance can be found at: a Re-named from ESG Data Hub to ESG Data Centre in 2022. Board (SASB) and the Global Reporting Initiative + home.barclays/sustainability/esg-resource-hub/reporting- and-disclosures/ (GRI). Our ESG-related disclosures: ESG disclosures Annual Report ESG-related reporting ESG data resources Other ESG resources Statements and policy positions Indices As ESG criteria have become increasingly Taskforce for Climate- Principles for Responsible ESG (non-financial) Data ESG Investor ESG Resource Hub - Statements Global Reporting Index embedded into what we do, for the 2022 related Financial Banking (PRB) Centre Presentations and policy positions (GRI) Barclays PLC Annual Report we have taken Disclosures (TCFD) Fair Pay report / UK Pay Limited Independent Sustainability the decision to further integrate our ESG- Recommendations Gaps report Assurance statement Accounting Standards related disclosures into relevant sections of Board (SASB) ESG-related disclosures (Tax) Country Snapshot Barclays' Sustainable Parts 1, 2 and 3 within the Annual Report. report Finance Framework To clearly signpost the location of our ESG- TM Board Diversity Policy BlueTrack Whitepaper related disclosures, we have included a detailed ESG Content Index within our ESG Diversity, Equity and Corporate Transition (non-financial) Data Centre. Inclusion report Forecast Model

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 65 report information sustainability report Governance review review statements Annual Report 2022 TCFD Content Index TCFD Content Index Our climate-related financial disclosures form part of the Barclays PLC Annual Report. challenge with data availability and accuracy to UK Listing Rules statement Metrics and targets Recommended Disclosures a), Looking ahead: TCFD sector specific meet these requirements. We will publish more Supplemental Guidance for Banks, the extent to which requirements for asset managers of compliance granular information in line with the requirements lending and other financial intermediary business We have started to assess the TCFD sector This year, our climate-related financial disclosures in future reporting periods. activities, where relevant, are aligned with a well below specific guidance for asset managers (which are included in the bank's annual report instead of a 2°C scenario Further details on the TCFD Recommendations and represents a small part of our overall business) standalone report. Our strategy is set out in the + Recommended Disclosures are available at: fsb-tcfd.org We have developed a methodology for measuring and are working towards reporting next year in Climate and Sustainability report, climate Full list of metrics and targets can be found in the ESG Data our financed emissions and tracking them at a Centre at: home.barclays/sustainability/esg-resource-hub/ accordance with the FCA Enhanced Climate- governance in our Governance report and our TM reporting-and-disclosures/ portfolio level in BlueTrack . This methodology Related Disclosure Requirements for Asset approach to Climate risk is in our Risk review section. currently applies to six high carbon-emitting sectors Managers, recognising the industry-wide We have considered our obligations in respect of in our portfolio, five of which are tracked against the climate-related disclosure under the UK's Financial IEA Net Zero by 2050 scenario (which is aligned with TCFD Content index Conduct Authority's Listing Rules and confirm that a goal to limit global temperature rises by 1.5°C with Section Recommendation Page references within we have made disclosures consistent with the Parts 2 and 3 of the a 50% probability). In relation to Residential Real Annual Report relevant Listing Rules and the Taskforce for Estate, we have assessed this sector against the UK a) We describe the Board's oversight of climate-related risks and 155, 248 – 249 Climate-related Financial Disclosures (TCFD) Governance Climate Change Committee's Balanced Net Zero opportunities Recommendations and Recommended (CCC BNZ) scenario, and which takes into Disclosures (including the implementing guidance b) We describe management's role in assessing and managing climate- 117, 250 – 252 consideration the UK's net zero commitments and related risks and opportunities set out in the 2021 TCFD Annex), save for certain Sixth Carbon Budget. We will continue to assess the items which we describe below: a) We describe the climate-related risks and opportunities the 74 – 76, 282, 296 Strategy financed emissions across our portfolio and organisation has identified over the short, medium and long term – 299 Strategy Recommendation disclosure c) relating to measure the baseline emissions that we finance b) We describe the impact of climate-related risks and opportunities on 77 – 126 quantitative climate-related scenario analysis across sectors. In particular, our commitment under the organisation's businesses, strategy and financial planning the Net-Zero Banking Alliance is to set science- We have disclosed our current understanding of the c) We describe the resilience of the organisation's strategy, taking into 128 – 135 based targets for all material high-emitting sectors resilience of our strategy, taking into consideration o consideration different climate-related scenarios, including a 2 C or (as defined by the NZBA) in our portfolio by April the different climate-related scenarios that we have lower scenario 2024. explored. However, in undertaking these climate a) We describe the organisation's processes for identifying and 74 – 76, 282 – 289 Risk scenario exercises we are gaining a greater We aim to assess our baseline financed emissions assessing climate-related risks management understanding of the challenges and nuances of across the Agriculture, Commercial Real Estate, b) We describe the organisation's processes for managing climate- climate scenario analysis which is in part driven by Aviation and Shipping sectors during 2023. This related risks the unique and complex features of climate science. assessment will inform our plan for target setting in c) We describe how processes for identifying, assessing and managing We recognise that we have further work to do in the coming years and will, together with our ongoing climate-related risks are integrated into the organisation's overall risk order to evolve our approach to the analysis and to work to develop a high-level modelled assessment management reach a more comprehensive and deeper of our overall balance sheet emissions consistent a) Our metrics used to assess climate-related risks and opportunities in 74 – 76 Metrics & understanding of the resilience of our business with the approach outlined by the Partnership for line with our strategy and risk management processes Targets under various climate scenarios. Carbon Accounting Financials (PCAF), support our b) Our Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions 80, 88 better understanding of the extent to which our The work we have already done in this regard and and the related risks financing aligns with a 'well below 2°C' scenario. which we plan to undertake in 2023 is set out in c) Our performance against the targets used to manage climate-related 80, 88, 101 "Resilience of our strategy" from page 128 in Part 2 risks and opportunities and performance against targets of the Annual Report.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 66 report information sustainability report Governance review review information Annual Report 2022 Shareholder information Annual General Meeting (AGM) Location Key dates QEII Centre, Broad Sanctuary, Westminster, London SW1P 3EE 31 March 2023 And virtually on an electronic platform Full year dividend payment date Date Wednesday, 3 May 2023 Time 27 April 2023 11.00am Q1 2023 Results Announcement The arrangements for the Company’s 2023 AGM and details of the resolutions to be proposed, together with explanatory notes, will be set out in 3 May 2023 the Notice of AGM to be published on the Annual General Meeting at 11.00am Company’s website (home.barclays/agm). Preparations for the Coronation of His Majesty The King and Her Majesty The Queen Consort in the Westminster area of London may require changes to the 2023 AGM arrangements set out above. If changes are required, details will be provided in the Notice of AGM. Keep your personal Dividends details up to date Dividend Payments The Barclays PLC 2022 full year dividend for the year ended 31 December 2022 will be 5.0p per Please remember to tell Equiniti if: Barclays has made the decision that dividends It is easy to set up payment directly to your share, making the 2022 total dividend 7.25p per will no longer be paid by cheque. All future bank account by completing a bank mandate, • you move; or share. dividends will be credited to a shareholder’s meaning your money will be in your bank • you need to update your bank or building nominated bank account or building society. account on the dividend payment date. You Dividend Re-investment Plan society details. We believe this decision is beneficial for our can provide your bank or building society If you are a Shareview member, you can update Barclays offers a share alternative in the form of shareholders to safeguard dividends by using details quickly and easily over the telephone your bank or building society account or address a dividend reinvestment plan (DRIP) for those a more secure payment method, as well as using the Equiniti contact details overleaf. details online. If you are not a Shareview member shareholders who wish to elect to use their removing our environmental impact of you can update details quickly and easily over the dividend payments to purchase additional printing and posting cheques. telephone using the Equiniti contact details ordinary shares, rather than receive a cash overleaf. payment. The DRIP is provided and administered by Barclays’ registrar, Equiniti. Further details regarding the DRIP can be found at + home.barclays/dividends and www.shareview.co.uk/info/drip

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 67 report information sustainability report Governance review review statements Annual Report 2022 Shareholder information (continued) Managing your shares online Useful contact details Shareowner Services Shareholder security Shareview Equiniti PO Box 64504, St Paul, MN 55164-0504, USA Shareholders should be wary of any cold calls Barclays shareholders can go online to manage The Barclays share register is maintained by with an offer to buy or sell shares. Fraudsters Delivery of ADR certificates and overnight mail their shareholding and find out about Barclays Equiniti. If you have any questions about your use persuasive and high pressure techniques Shareowner Services, 1110 Centre Point performance by joining Shareview. Through Barclays shares, please contact Equiniti by to lure shareholders into high-risk Curve, Suite 101, Mendota Heights, MN Shareview, you: visiting investments or scams. You should treat any 55120, USA • will receive the latest updates from Barclays unsolicited calls with caution. shareview.co.uk Qualifying US and Canadian resident ADR direct to your email; Please keep in mind that firms authorised holders should contact Shareowner Services + 44 (0)371 384 2055 • can update your address and bank details by the Financial Conduct Authority (FCA) for further details regarding the DRIP (UK & International telephone number) online; are unlikely to contact you out of the blue. Shareholder Relations +44 (0)371 384 2255 You should consider getting independent • can vote in advance of general meetings. To give us your feedback or if you have any financial or professional advice from (for the hearing impaired in the UK & questions, please contact: To join Shareview, please follow these three easy someone unconnected to the respective international) steps: [email protected] firm before you hand over any money. Aspect House Shareholder Relations Barclays PLC Spencer Road, Lancing, West Sussex Step 1 Go to portfolio.shareview.co.uk Report a scam 1 Churchill Place London E14 5HP Step 2 BN99 6DA Register for electronic If you suspect that you have been Share price communications by following the approached by fraudsters please tell the FCA To find out more, contact Equiniti or visit: instructions on screen using the share fraud reporting form at Information on the Barclays share price and home.barclays/dividends fca.org.uk/scams. You can also call the FCA other share price tools are available at: Step 3 You will be sent an activation code in American Depositary Receipts (ADRs) Helpline on 0800 111 6768 or through Action the post the next working day home.barclays/investorrelations Fraud on 0300 123 2040. ADRs represent the ownership of Barclays Copies of the Annual Report 2022 PLC shares which are traded on the New York Returning funds to shareholders The Strategic Report 2022 and Annual Report Stock Exchange. ADRs carry prices, and pay Over 60,000 shareholders did not cash their 2022 can be downloaded from Barclays’ dividends, in US dollars. Donations to Charity Shares Not Taken Up (SNTU) cheque following website home.barclays If you have any questions about ADRs, We launched a Share Dealing Service in October the Rights Issue in September 2013. In 2022, we Shareholders who wish to receive a hard copy please contact Shareowner Services: 2017 aimed at shareholders with relatively small continued the tracing process to reunite these of the Strategic Report 2022 or Annual Report shareholdings for whom it might otherwise be shareholders with their SNTU monies and any [email protected] or visit adr.com 2022 should contact Barclays’ share uneconomical to deal. One option open to unclaimed dividends and by the end of the year, +1 800 990 1135  registrars, Equiniti. shareholders was to donate their sale proceeds we had returned approximately £482,800 to our (toll free in the US and Canada) to ShareGift. As a result of this initiative, £90,379 shareholders, in addition to the approximately Alternative formats was donated in 2022, taking the total donated £4.7m returned since 2015. +1 651 453 2128  Shareholder documents can be provided in since 2017 to over £493,000. large print, audio CD or Braille free of charge (outside the US and Canada) by calling Equiniti. a +44 (0)371 384 2055 (UK & International telephone number) Audio versions of the Strategic Report will also be available at the AGM. Note a Lines open 8.30am to 5.30pm (UK time) Monday to Friday, excluding public holidays.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 68 report information sustainability report Governance review review statements Annual Report 2022 Important Information return on tangible equity, projected levels of including inflation; volatility in credit and capital Subject to Barclays PLC’s obligations under the Forward looking statements growth in banking and financial markets, industry markets; market related risks such as changes in applicable laws and regulations of any relevant This document contains certain forward-looking trends, any commitments and targets (including interest rates and foreign exchange rates; higher jurisdiction (including, without limitation, the UK statements within the meaning of Section 21E of environmental, social and governance (ESG) or lower asset valuations; changes in credit and the US) in relation to disclosure and ongoing the US Securities Exchange Act of 1934, as commitments and targets), business strategy, ratings of any entity within the Group or any information, we undertake no obligation to amended, and Section 27A of the US Securities plans and objectives for future operations and securities issued by it; changes in counterparty update publicly or revise any forward-looking Act of 1933, as amended, with respect to the statements, whether as a result of new other statements that are not historical or risk; changes in consumer behaviour; the direct Group. Barclays cautions readers that no current facts. By their nature, forward-looking and indirect consequences of the conflict in information, future events or otherwise. forward-looking statement is a guarantee of statements involve risk and uncertainty because Ukraine on European and global macroeconomic future performance and that actual results or they relate to future events and circumstances. conditions, political stability and financial other financial condition or performance Forward-looking statements speak only as at the markets; direct and indirect impacts of the measures could differ materially from those date on which they are made. Forward-looking coronavirus (COVID-19) pandemic; instability as contained in the forward-looking statements. statements may be affected by a number of a result of the UK’s exit from the European Union Forward-looking statements can be identified by factors, including, without limitation: changes in (EU), the effects of the EU-UK Trade and the fact that they do not relate only to historical legislation, regulation and the interpretation Cooperation Agreement and any disruption that or current facts. Forward-looking statements thereof, changes in IFRS and other accounting may subsequently result in the UK and globally; sometimes use words such as ‘may’, ‘will’, ‘seek’, standards, including practices with regard to the the risk of cyber-attacks, information or security ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, interpretation and application thereof and breaches or technology failures on the Group’s ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, emerging and developing ESG reporting reputation, business or operations; the Group’s ‘achieve’ or other words of similar meaning. standards; the outcome of current and future ability to access funding; and the success of Forward-looking statements can be made in legal proceedings and regulatory investigations; acquisitions, disposals and other strategic writing but also may be made verbally by the policies and actions of governmental and transactions. A number of these factors are directors, officers and employees of the Group regulatory authorities; the Group’s ability along beyond the Group’s control. As a result, the (including during management presentations) in with governments and other stakeholders to Group’s actual financial position, results, financial connection with this document. Examples of measure, manage and mitigate the impacts of and non-financial metrics or performance forward-looking statements include, among climate change effectively; environmental, social measures or its ability to meet commitments and others, statements or guidance regarding or and geopolitical risks and incidents and similar targets may differ materially from the relating to the Group’s future financial position, events beyond the Group’s control; the impact of statements or guidance set forth in the Group’s income levels, costs, assets and liabilities, competition; capital, leverage and other forward-looking statements. Additional risks and impairment charges, provisions, capital, leverage regulatory rules applicable to past, current and factors which may impact the Group’s future and other regulatory ratios, capital distributions future periods; UK, US, Eurozone and global financial condition and performance are (including dividend policy and share buybacks), macroeconomic and business conditions, identified in the description of material existing and emerging risks from page 269 of this Annual Report.

Climate and sustainability report The Climate and sustainability report is Part 2 of Barclays PLC 2022 Annual Report. Parts1, 2 and 3 of Barclays PLC 2022 Annual Report together comprise Barclays PLC's annual accounts and report for the purposes of Section 423 of the Companies Act 2006. TCFD Strategy Recommendation A: TCFD Strategy Recommendation B: TCFD Strategy Recommendation C: Describe the climate-related risks and Describe the impact of climate-related risks and Describe the resilience of the organisation’s opportunities the organisation has identified over opportunities on the organisation’s businesses, strategy, taking into consideration different the short, medium, and long term. strategy, and financial planning. climate-related scenarios, including a 2°C or lower scenario. Risks and opportunities Implementing our climate strategy Resilience of our strategy 73 77 127 Risks 74 Achieving net zero operations 78 Scenario analysis 128 Opportunities 76 Operational footprint dashboard 80 Resilience of our strategy, All other narrative 81 taking into consideration different climate-related scenarios Reducing our financed emissions 85 135 TM BlueTrack dashboard 88 Macro-dependencies and objectives 135 All other narrative 89 Financing the transition 99 Important information / disclaimers 136 Sustainable finance dashboard 101 All other narrative 102 Working with our clients 103 Embedding ESG into our business 117 Just transition and nature and biodiversity 119 Engaging with industry 122 Barclays' approach to public policy 126

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 70 report information sustainability report Governance review review statements Annual Report 2022 Introduction Our approach to TCFD climate- Barclays' Climate Strategy related financial disclosures The Climate and sustainability report includes disclosures related to the Strategy Our climate strategy is driven by considerations of all relevant risks as well and certain Metrics and Targets sections of as our Purpose to deploy finance responsibly to support people and businesses, the TCFD Recommendations. This includes the opportunities and risks identified as acting with empathy and integrity, championing innovation and sustainability for the having an impact on Barclays over the short, medium and long term, our climate common good and the long term. strategy, and our approach to scenario analysis and the resilience of our strategy. The TCFD Risk Management disclosures can be found in the Risk review on page 282, and the TCFD Governance disclosures 1 2 3 can be found in the Governance report on page 246. Achieving net Reducing our Financing We have provided a TCFD index on page 65 zero operations financed emissions the transition for ease of reference. Barclays is working to reduce its Scope 1, Barclays is committed to aligning its financing Barclays is helping to provide the green and Barclays is participating in the FCA sandbox a Scope 2 and Scope 3 operational emissions with the goals and timelines of the Paris sustainable finance required to transform the for the Transition Plan Taskforce. We have consistent with a 1.5°C aligned pathway and Agreement, consistent with limiting the economies, customers and clients we serve. voluntarily considered elements of the counterbalance any residual emissions. increase in global temperatures to 1.5°C. November 2022 Transition Plan Taskforce guidance in preparing this report. During 2023, we will look to further develop Our strategy is underpinned by the way we assess and manage our exposure to climate-related risk. elements of our climate disclosures including transition planning, scenario In March 2020, we announced our ambition to be Barclays recognises the importance of a just The financial sector has an important role to play analysis, stress testing, physical risk a net zero bank by 2050, becoming one of the transition in planning the transition towards a in helping to address climate change. The final b assessment, and embedding climate into first banks to do so. We have a three-part low-carbon economy. decision text from COP27 stated that $4trn per strategy and financial planning. This will be strategy to turn our net zero ambition into year needs to be invested in renewables to be Further details of our work on a just transition can be found reflected in future disclosures. + on page 119. action. able to reach net zero emissions by 2050 and furthermore, a global transformation to a low- Our strategy is underpinned by the way we We also recognise the important role of the carbon economy is expected to require assess and manage our exposure to climate- financial sector in stewarding responsible finance b investments of between $4-6trn per year. related risk. Climate risk became a Principal Risk towards a nature-positive future. in January 2022 under Barclays’ Enterprise Risk As a global universal bank, Barclays is well- Further details on how we're considering nature and Management Framework, reflecting the positioned to help scale the new climate + biodiversity can be found on pages 119 to 120. complexity of the risks associated with a technologies that will decarbonise industries and changing climate and decarbonising the Notes create green jobs. We are determined to play our a We define our Scope 3 operational emissions to include supply chain, economy. part by leveraging our experience as an adviser, waste, business travel and leased assets. b $4-6trn as referenced at COP27 at unfccc.int/documents/624444 as bank and investor (through our Sustainable Further details on how we identify and consider the impact of well as the United Nations Environment Programme - Emissions Gap + Climate risk on other Principal Risks facing Barclays can be Impact Capital Programme) to help the transition Report 2022 at unep.org/resources/emissions-gap-report-2022. found from page 273 to 289. to a low-carbon economy.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 71 report information sustainability report Governance review review statements Annual Report 2022 Introduction (continued) Our strategy, selected targets and progress The table below sets out selected targets and policies we have previously announced, progress against them, and the new announcements we are now making. Strategic pillar Previously announced target/policy Progress New announcement By end 2025 2022 performance We are working towards the following milestones 1.Achieving net zero 2 Δ Energy • 100% renewable electricity sourcing for our global real estate • By end of 2035, 115 kWh/m /year average energy use intensity 100% sourced operations portfolio by end of 2025 across our corporate offices, against a 2022 baseline of 265 2 kWh/m /year • By end of 2035, 10 MW on-site renewable electricity capacity installed across our global real estate portfolio, against a 2022 baseline of 0.26 MW Δ Reduction of GHG • 90% reduction in Scope 1 and 2 GHG emissions (market-based, • By end 2030, 90% of our suppliers, by addressable spend, to −91% reduction emissions against a 2018 baseline) have science-based GHG emissions reduction targets in place • By end 2030, 50% GHG supply chain emissions reduction against a 2018 baseline • By end 2050, 90% GHG supply chain emissions reduction against a 2018 baseline By the end of 2030 Cumulative change By the end of 2030 2.Reducing our Energy • 40% reduction in absolute CO e emissions against a 2020 -32% N/A financed emissions 2 Δ baseline of 75.7 MtCO e (Scopes 1, 2 & 3) 2 Portfolio reduction Power • 50-69% reduction in CO e emissions intensity against a 2020 -9% N/A 2 targets/convergence Δ baseline of 331 kgCO e/MWh (Scope 1) 2 point Cement • 20-26% reduction in CO e emission intensity against a 2021 -2% N/A 2 Δ baseline of 0.625 tCO e/t (Scopes 1 & 2) 2 Steel • 20-40% reduction in CO e emissions intensity against a 2021 -11% N/A 2 Δ baseline of 1.945 tCO e/t (Scopes 1 & 2) 2 Automotive manufacturing N/A N/A • 40-64 % reduction in CO e emissions intensity against a 2022 2 Δ baseline of 167.2 gCO e/km (Scopes 1, 2 & 3) 2 Residential real estate N/A N/A • Convergence point: 40% reduction in CO e emissions intensity 2 Δ 2 against a 2022 baseline of 32.9 kgCO e/m (Scopes 1 & 2) 2 Notes: Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 72 report information sustainability report Governance review review statements Annual Report 2022 Introduction (continued) Strategic pillar Previously announced target/policy New announcement Existing restrictions in relation to thermal coal financing will continue to apply other than as updated below 2.Reducing our a a Thermal coal power policy • By 2030: in the UK and EU – phase out of financing to clients engaged in coal- • By 2030: in EU and OECD phase out of financing to clients engaged in coal- financed emissions fired power generation. In the rest of the world (including USA) – no financing to fired power generation. In the rest of the world, no longer provide financing to Restrictive policies clients that generate more than 10% revenue from coal-fired power generation clients that generate more than 10% of revenue from coal-fired power generation • By 2035: phase out of financing to clients engaged in coal-fired power generation • By 2035: phase out financing to clients engaged in coal-fired power generation Oil sands policy • We will only provide financing to oil sands exploration and production clients We will not provide financing: b who have projects to reduce materially their overall emissions intensity, and a • To oil sands exploration and production companies ; or plan for the company as a whole to have lower emissions intensity than the level • For the construction of new (i) oil sands exploration, production and/or processing of the median global oil producer by the end of the decade. c assets; or (ii) oil sands pipelines . Strategic pillar Previously announced target/policy Progress New announcement Previously announced target 2022 performance Announced in December 2022 3.Financing the Δ Sustainable financing • Facilitate £150bn of social, environmental and sustainability- • Facilitate $1trn of Sustainable and Transition Financing • £54.3bn (Cumulative transition Δ linked financing between 2018 and 2025 between 2023 and end of 2030 performance: £247.6bn ) Δ • Facilitate £100bn green financing between 2018 and 2030 • £25.5bn (Cumulative Δ performance: £87.8bn ) Sustainable Impact Capital • Invest up to £175m of Barclays’ own capital in environmentally- • £35m (£89m invested by • Increase investment of Barclays’ capital in global climate tech focused early-stage companies by 2025 the end of 2022) start-ups up to £500m by the end of 2027 Notes: a A client is defined as "engaged in" coal-fired power generation if the client earns >5% revenue from that activity. b Oil sands exploration and production companies are those that majority own (>50%) or operate oil sands exploration, production and processing assets, other than companies that generate less than 10% of revenue from these activities. c Oil Sands Pipelines are pipelines whose primary use is for the transportation of crude oil extracted from oil sands. Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/

Risk and opportunities TCFD Strategy Recommendation A: TCFD Strategy Recommendation B: TCFD Strategy Recommendation C: Describe the climate-related risks and Describe the impact of climate-related risks and Describe the resilience of the organisation’s opportunities the organisation has identified over opportunities on the organisation’s businesses, strategy, taking into consideration different the short, medium, and long term. strategy, and financial planning. climate-related scenarios, including a 2°C or lower scenario. Risks and opportunities Implementing our climate strategy Resilience of our strategy 73 77 127 Risks 74 Achieving net zero operations 78 Scenario analysis 128 Opportunities 76 Operational footprint dashboard 80 Resilience of our strategy, All other narrative 81 taking into consideration different climate-related scenarios Reducing our financed emissions 85 135 TM BlueTrack dashboard 88 Macro-dependencies and objectives 135 All other narrative 89 Financing the transition 99 Important information / disclaimers 136 Sustainable finance dashboard 101 All other narrative 102 Working with our clients 103 Embedding ESG into our business 117 Just transition and nature and biodiversity 119 Engaging with industry 122 Barclays' approach to public policy 126

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 74 report information sustainability report Governance review review statements Annual Report 2022 Risk and opportunities (continued) TCFD Strategy Recommendation (a) When considering climate-related risks, Barclays The tables below summarise the nature, drivers Physical risks Climate-related risks identified over has categorised short, medium and long term to and potential impacts of physical and transition Physical risks from climate change arise from a mean the following timescales: the short, medium and long term risks. Analysis of these drivers is undertaken as number of factors and relate to specific weather part of Barclays' annual review of elevated • Short term (S) - 0-1 year events and longer-term shifts in the climate. The sectors, clients operating in these sectors and Our climate strategy is underpinned by the nature and timing of extreme weather events are • Medium term (M) - 1-5 years monthly horizon scanning of new developments way we assess and manage our exposure to uncertain but they are increasing in frequency • Long term (L) - 5-30 years leading to climate-related risks. These risk climate-related risk. Climate risk became a and their impact on the economy is predicted to drivers have been assessed through qualitative Principal Risk within the Barclays Enterprise Climate change as a driver of risk be more acute in the future. The potential impact analysis, external research and expert views. Risk Management Framework from 2022. on the economy includes, but is not limited to, Climate change may lead to economic and Quantitative analysis is also undertaken through lower GDP growth, higher unemployment, operational impacts and may increase the our programme of scenario analysis. shortage of raw materials and products due to We broadly categorise climate risks into three likelihood or severity of other risks, for example: Further details on how Barclays approaches scenario analysis supply chain disruptions, significant changes in categories – transition risk, physical risk and + • cyclical: amplifying economic cycles, including can be found on pages 128 to 134. asset prices, and profitability of industries. connected risk. Within these, we identify risk deeper troughs Damage to properties, and operations of drivers from climate change which we monitor The feedback effects of climate risk drivers • event-driven: a singular event or series of borrowers could decrease production capacity, over the short, medium and long term. through macro and micro transmissions events, for example severe weather events increase operating costs, impair asset values and channels are observed in Barclays' portfolio Transition risks leading to physical risk impacts the creditworthiness of customers leading to through traditional risk categories such as credit As the world transitions to a low-carbon increased default rates, delinquencies, write-offs risk, market risk, operational risk etc. The • structural: macroeconomic shifts as economy, financial institutions such as Barclays and impairment charges in Barclays’ portfolios. In approach to identify, measure and manage economies transition to a low-carbon may face significant and rapid developments in addition, Barclays’ premises and infrastructure climate-related risks is consistent with other key economy, driven by regulatory tightening such stakeholder expectations, policy, law and may also suffer physical damage due to weather risks, however the significant impact climate- as introduction of carbon pricing mechanisms, regulation which could impact the lending events leading to increased costs for Barclays. related financial risks are most likely to emission trading schemes and technology activities Barclays undertakes, as well as the risks materialise in the longer term. evolution. Connected risks associated with its other portfolios, and the value In addition, the impacts of physical and transition of Barclays’ financial assets. There is potential for tail risks and tipping points, climate risks can lead to second order connected including from chronic physical risks that are not As new policies and regulations are enforced, risks, which have the potential to affect Barclays’ currently clearly understood. This might include market sentiment and societal preferences retail and wholesale portfolios. The impacts of impacts from lack of access to clean water, mass change and new technologies emerge, this may climate change may increase losses for those human migration due to inhospitable conditions, result in increased costs and reduced demand sectors sensitive to the effects of physical and biodiversity and ecosystem services loss, second for product and services of a company, early transition risks. Any subsequent increase in order impacts on food chain, or conflict resulting retirement and impairment of assets, decreased defaults and rising unemployment could create from competition for environmental resources. revenue and profitability for Barclays customers. recessionary pressures, which may lead to wider This in turn may impact creditworthiness of deterioration in the creditworthiness of Barclays’ customers and their ability to repay loans. clients, higher expected credit losses (ECLs), and Additionally, Barclays may face greater scrutiny increased charge-offs and defaults among retail of the type of business it conducts, adverse customers. media coverage, reputational damage, and an increase in financial and operational risks, which may impact customer demand for Barclays’ products, returns on certain business activities and the value of certain assets and trading positions resulting in impairment charges.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 75 report information sustainability report Governance review review statements Annual Report 2022 Risk and opportunities (continued) TCFD Strategy Recommendation (a) Transition risks Policy and Regulatory Legal Technology Market • Carbon tax impacting sectors and clients • Government and non-governmental • Disruptive substitute technologies being • Shift in Consumer preferences Example drivers organisations taking litigation actions favoured because of lower carbon • Tightening of emissions and energy • Changes in supply and demand of raw footprint efficiency standards • Imposing legal liabilities on firms for their materials contribution to physical impacts of • Development of emissions capture and • Imposing an absolute cap on GHG • Shareholder perceptions and consumer climate change recycling facilities emissions at manufacturing sites pressures • Investments in new technologies • Enhanced GHG reporting obligations • Changing market sentiment • Alternatives to fossil fuel • Increased operating cost for compliance • Increased costs due to fines and • Impairment of assets and early • Increased costs and reduced demand for Potential impacts - examples penalties from class action damages retirement of assets products and services • Increased capital expenditure to meet regulatory standards • Changes in the valuation of assets • Research and development expenditure • Increased production costs due to changing in new technologies input prices and output requirements • Operating constraints • Decreased demand for products and services • Costs for adoption of new practices and • Decreased revenue and repricing of assets • Write-offs and early retirement of assets processes a a a a S , M, L S , M, L S , M, L S , M, L Expected time horizon Event-driven, Structural Event-driven, Structural Structural Structural Classification Credit Risk, Market Risk, Treasury and Capital Risk, Operational Risk, Reputational Risk Primary risks impacted Conduct Risk, Legal Risk Secondary risks impacted Increasing Increasing Stable Stable Trend Physical risks Acute Chronic • Damage to fixed assets and infrastructure (property, power supplies) by climate events • Change in weather and precipitation patterns resulting in reduced agricultural yields and Example drivers such as wildfires land no longer suitable for farming • Adverse impact on agriculture and production of soft commodities due to drought • Potential population migration due to inhabitable land • Transport difficulties and damage to infrastructure due to severe storm and flooding • Increase in sea levels and consequent coastal erosion requiring building of new seawall and flood defences • Rising temperatures resulting in diminished productivity and health issues • Increased costs due to damage to facilities • Reduced revenue from decreased production capacity and early retirement of assets Potential impacts - examples • Reduced revenue from decreased production capacity • Decrease in property values • Increased operating costs and decrease in sales due to unavailability of raw materials • Increased costs and insurance for assets in high risk locations and supply chain disruptions • Reduced revenue from lower sales and output a S , M, L M, L Expected time horizon Event-driven Structural Classification Credit Risk, Market Risk, Treasury and Capital Risk, Operational Risk, Reputational Risk Primary risks impacted Conduct Risk, Legal Risk Secondary risks impacted Increasing Increasing Trend Notes: a Whilst these risks will start to manifest over these time horizons, we expect financial impact in the short term to be immaterial based on current information / circumstances, with no specifically identified charges related to climate risk in the 2022 reported expected credit losses.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 76 report information sustainability report Governance review review statements Annual Report 2022 Risk and opportunities (continued) TCFD Strategy Recommendation (a) beyond 2030. We will continue to review this area deliver on net zero by 2050. This consists of a scaling and commercialising new technologies Climate-related opportunities closely. number of mature and scaling technologies but such as hydrogen and carbon capture, Barclays is identified over the short, medium with renewable energy (including wind and solar) developing a framework for such transition Following the analysis of market demand for and low emissions transport (including electric financing during 2023. and long term sustainable financing, together with a review of vehicles, fuel cell electric vehicles and mass the Group's capabilities, in December 2022 we Retail and Business Banking transit) expected to make up over half of the During 2022, Barclays completed a review announced a new target to facilitate $1trn of Within the UK, sustainable opportunities in Retail addressable market through to 2030. and assessment of the global market Sustainable and Transition Financing between and Business Banking represent a $225-286bn opportunity for sustainable financing, 2023 and the end of 2030. Alongside this, there are significant longer-term market opportunity by 2025, increasing to an focusing on the period to 2030 (i.e. short and opportunities in financing the scaling of estimated $640bn-1trn by 2030. This projected Further details of Barclays' sustainable finance targets can be medium term). This work considered the + capabilities in nascent technologies such as found on page 99 and further details on how Barclays' growth is split across three main sectors: opportunity arising from the global products and services are harnessing this opportunity on carbon capture utilisation and storage (CCUS) pages 103 to 116. • green home loans, transition to a low-carbon economy that will and hydrogen solutions, which we hope to • electric vehicle (EV) financing, and be needed if the world is to avoid the worst capture as part of our $1trn target between 2023 effects of climate change and the Assessing the market opportunity • green SME lending. and the end of 2030. opportunity for the financial community to To determine the addressable global market Green home loans, including green mortgages Sustainable Finance Instruments play its part in supporting the global for sustainable finance to 2030, Barclays for existing and new homes and retrofit financing, Sustainable Finance Instruments represent an Sustainable Development Goals. The work leveraged widely used and credible third- represent the largest individual market at estimated $3.5-6trn annual issuance opportunity considered the size of the market party sources including the IEA, IRENA, $140-170bn in 2025, growing to $400-600bn in through to 2030 across North America, Europe opportunity and the potential addressable Climate Bonds Initiative and the IFC, as well 2030, with new homes mortgages representing and Asia Pacific (excluding China), with Europe market for Barclays. as Barclays' own industry, ESG and market the largest proportion of the opportunity at expected to remain the primary market for ESG research. The analysis considered the c.60-70%. Growth is mainly dependent on UK debt. It was c.60% of global issuance in 2021. investment needed through to 2030 for the The work identified three thematic areas of government delivering on its ambition to achieve world to align to net zero, including While green bonds represented the largest potential opportunity for Barclays: net zero. We recognise there are significant accelerated scenarios reflecting possible individual market at c.$500 bn in 2021, all ESG dependencies for that ambition to be realised. • Energy Transition Finance, including policy and market developments. instruments are expected to grow, including renewables and nascent/early-stage climate Having determined the global addressable Further details of the drivers of change in the Residential Real social loans/bonds (promoting positive social + technologies that will need financing to scale Estate sector can be found on page 93. market, Barclays developed scenarios for outcomes), sustainable loans/bonds (serving as they support the transition to net zero the bank’s potential market for various asset both green and social projects) and EV financing of new and used auto loans has an • Sustainable Finance Instruments, consisting classes, product sets, technological sectors sustainability-linked bonds (loans/bonds indexed estimated 10-year addressable market of of non-climate-related financial instruments, and geographic markets, validated through to green or social KPIs). $240-400bn for Barclays, with EV sales expected specifically social, sustainability-linked and comparison with historic growth rates and to increase 10-fold in the next 10 years, reaching The analysis indicated that ESG debt (excluding transition bonds/loans our projected share of the overall market. up to 97% of annual car sales by 2030 in the UK. green bonds and loans) represents an estimated • Retail and Business Banking, which focuses on Barclays expects the markets to be primarily 10-year $400-650 bn cumulative financing BUK and the retail market, including green driven by policy and legislation, for example, the opportunity for Barclays based on our current Energy Transition Finance mortgages (including retrofitting), electric UK policy to ban sale of new petrol and diesel cars global market share in sustainable finance The analysis indicated that based on current vehicle loans and SME lending. from 2030. instruments. policy, technology and market developments, These three thematic areas cut across Barclays' Green SME lending represents a $10-16bn We see opportunities to expand our share and Energy Transition Finance represents an businesses and do not align precisely to individual opportunity by 2030. Our analysis focuses on drive growth, particularly in the Utilities, Energy estimated 10-year addressable opportunity of product and service areas or reporting three sectors - agriculture, non-residential and Public Sector sectors and in sustainability- over $16trn across North America, Europe and segments. It is recognised that some buildings and manufacturing and construction - linked instrument issuances. Alongside growing Asia Pacific (excluding China). This extends to up technologies or solutions that will facilitate the with retrofitting non-residential buildings being the green finance, we recognise we must also tackle to $24trn over the same time period if policy, world to align to net zero are not yet fully largest market opportunity at c.$7-10bn. the decarbonisation of "hard to abate" sectors technology and market developments step up to developed and will likely come to maturity that are carbon intensive, including through

Implementing our climate strategy TCFD Strategy Recommendation A: TCFD Strategy Recommendation B: TCFD Strategy Recommendation C: Describe the climate-related risks and Describe the impact of climate-related risks and Describe the resilience of the organisation’s opportunities the organisation has identified over opportunities on the organisation’s businesses, strategy, taking into consideration different the short, medium, and long term. strategy, and financial planning. climate-related scenarios, including a 2°C or lower scenario. Risks and opportunities Implementing our climate strategy Resilience of our strategy 73 77 127 Risks 74 Achieving net zero operations 78 Scenario analysis 128 Opportunities 76 Operational footprint dashboard 80 Resilience of our strategy, All other narrative 81 taking into consideration different climate-related scenarios Reducing our financed emissions 85 135 TM BlueTrack dashboard 88 Macro-dependencies and objectives 135 All other narrative 89 Financing the transition 99 Important information / disclaimers 136 Sustainable finance dashboard 101 All other narrative 102 Working with our clients 103 Embedding ESG into our business 117 Just transition and nature and biodiversity 119 Engaging with industry 122 Barclays' approach to public policy 126

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 78 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 1 Net zero operations strategy Achieving net zero operations Our operational GHG emissions by scope Our net zero operations strategy has two components: Although financed emissions account for Scope 1 Scope 2 Scope 3 the greatest proportion of our climate • Reduce our Scope 1 and 2 emissions through impact, addressing our operational energy efficiency, electrification of our emissions is also important in meeting our buildings and vehicles, renewable energy Emissions from our Emissions from the energy Emissions from our ambition to be a net zero bank by 2050. We sourcing and replacing fossil fuels with low corporate vehicles’ exhaust, sources we use to power upstream and downstream are aiming to integrate sustainability into emission alternatives. natural gas from our our data centres, branches, activities such as purchase every aspect of how we run our business, building boilers and the campuses and offices of products and services, • Reduce Scope 3 operational emissions by, from decarbonising our operations to generators we might run waste generated and air engaging with our key stakeholders including managing our impact on biodiversity and travel suppliers and colleagues to track, manage and nature. reduce their GHG emissions, while embedding net zero principles across our policies and Defining net zero operations contractual requirements. To reflect our commitment to reducing Fuel Energy Supply chain operational emissions beyond our Scope 1 and combustion purchased Scope 2 emissions, we are explicitly adding Scope 3 operational emissions to our net zero operations ambition. Waste We now define net zero operations as the state Fugitive emissions in which we will achieve a greenhouse gas reduction of our Scope 1, Scope 2 and our Scope a o 3 operational emissions consistent with 1.5 C aligned pathway and counterbalance any residual Company cars Leased assets emissions. The standards available to understand and define net zero are rapidly evolving. We will continue to review and develop our own approach to net zero Business travel operations as this subject area matures. Notes: • Our reporting of supply chain emissions includes the following GHG Protocol Scope 3 categories: Category 1: Purchased Goods and Services, Category 2: Capital Goods, Category 4: Upstream transportation and distribution. In 2022 we reported GHG emissions of Categories 1, 2 and 4 Note: by aggregating these under Category 1. It is our intent to assign emissions to each of these separate categories in due course. a We define our Scope 3 operational emissions to include supply chain, • Leased assets include our third party co-located data centres and property we lease out to tenants waste, business travel and leased assets

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 79 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 1 Also, this year we evolved our energy use We intend to work towards the milestones of a Progress to date 2 intensity and on-site renewable energy reporting 115 kWh/m /year average energy use intensity We achieved our 90% GHG market-based approach to include our global real estate across our corporate offices and installing 10MW emissions reduction target for Scope 1 and 2, portfolio, beyond campuses. on-site renewable electricity capacity across our having reduced our Scope 1 and 2 emissions by global real estate portfolio by 2035. 91% since 2018 and sourced 100% renewable a electricity for our global real estate portfolio in Our net zero operations approach 2022. We achieved our renewable electricity target Delivery year Scope 1 and 2 2022 Performance Scope 3 2022 Performance ahead of schedule by matching 100% of our 100% renewable electricity sourcing for all our Δ 100% electricity consumption with energy attribute global real estate portfolio b c certificates and green tariffs which we consider 70% of our suppliers, by addressable spend, to have 90% reduction for our Scope 1 and 2 GHG Δ i to be a transitional solution as we seek to science-based GHG emissions reduction targets in 47% 2025 -91% e emissions (market-based , against a 2018 baseline) increase the proportion of on-site renewable place electricity sources and Power Purchase 100% electric vehicles (EV) transition for UK 55% company cars Agreements (PPA). We intend to work towards the milestone of 90% of In 2022, we expanded our net zero operations 100% electric vehicles (EV) or ultra-low emissions our suppliers, by addressable spend, to have g approach to include our supply chain emissions 24% 47% vehicles (ULEV) for all company cars science-based GHG emissions reduction targets in as they account for the majority of our place 2030 operational emissions. We intend to work towards the milestone of 50% 50% reduction for our Scope 1 and 2 GHG Δ j Our supply chain emissions data is currently 8% GHG supply chain emissions reduction (against a -43% f emissions (location-based, against a 2018 baseline) indicative. We will continue to develop our 2018 baseline) 2 methodology and aim to improve the accuracy of We intend to work towards the milestone of 115 265 kWh/m /year 2 our supply chain data over time. In the interim, we kWh/m /year average energy use intensity across (-18% against 2018 g intend to work towards the milestone of a 50% our corporate offices baseline) Divert 90% of waste from the landfill, incineration 65% 2035 reduction in our supply chain emissions by 2030 and the environment across key campuses We intend to work towards the milestone of 10 MW 0.26MW (

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 80 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 1 Operational footprint dashboard Total GHG emissions by scope Total GHG emissions by scope (location- Scope 1 and 2 (market-based) GHG emission Scope 3 GHG inventory based) ‘000 tonnes CO e reductions (against a 2018 baseline) (market-based) ‘000 tonnes CO e 2 2 ('000 tonnes CO e) 2 Total Total 2022 2022 20.0△1.9△19.4△ 20.0△ 103.4△ 19.4△ △ 599.2 41.3 142.9△ △ Total Total -91% 23.2 13.6 2.4 23.2 124.2 2.4 2021 2021 39.2 149.8 4.6 Total Total Against a target of -90% 2020 2020 22.8 48.3 19.1 22.8 148.7 19.1 90.2 190.6 10.7 by the end of 2025 Scope 1 Scope 2 Scope 3 (Business travel) n n n 2021: -86% Scope 1 Scope 2 Scope 3 (Business travel) n n n 19.4△ 21.1 Renewable electricity sourcing for our GHG emissions intensity (market-based) Total energy use global real estate portfolio tonnes CO e/FTE (MWh) 2 Purchased Fuel and energy- Waste generated n n n goods and related activities in operations services 2022 2022 0.47△ 467,939△ △ Business travel Leased assets n n 100% 2021 0.48 559,241 2021 Against a target of 100% by the end of 2025 2020 2020 1.09 604,856 2021: 94% Other sustainability-related highlights Campus waste diverted On-site renewable electricity capacity installed Average energy use intensity across our Improve water efficiency across our global real estate portfolio (MW) corporate offices (kWh/m2/year) (%) 2022 2022 2022 0.26 265 65 Progress Progress Progress 86% By 2035 By 2035 10 115 90 By 2035 recycled water used at our Pune campus in 2022 Notes 1. For 2022, our Supply chain categories 1, 2 and 4 GHG emissions are reported on an aggregated basis under Category 1 and will be reported independently in due course. ESG Data Centre 2. Emission reductions and intensities have been reported using the market based methodology. 3. The reporting year for our GHG emissions is 1 October to 30 September. The methodology used for emissions calculation is the WRI/ WBCSD Greenhouse Gas (GHG) Protocol. We have adopted the operational See our ESG (non-financial) Data Centre for further details of our control approach on reporting boundaries. For more information, see the Barclays ESG Reporting Framework 2022 on our ESG Data Centre annual operational GHG emissions since 2018, including our Scope 4. For 2022, we have applied the latest emission factors as of 31st December 2022. We continuously review and update our performance data based on updated carbon emission factors, improvements in data quality 1, 2 and 3 business travel with location-based and market-based and updates to estimates previously applied. In 2022 prior year figures have been restated to reflect additional Scope 1 natural gas data that is now available for two of our large corporate offices. The restatement emissions data. As of 2022, we also detail our Scope 3 operational has been applied to all prior years to 2018. In addition, there is additional Scope 1 fuel data available for three locations globally that were not reported in prior years. We have also replaced estimated Scope 2 emissions. We further provide insights on our annual waste electricity data for select locations in the US with actual billing from utility providers that was not available at the time of reporting. Finally, corrections to Scope 2 electricity data in Switzerland & Netherlands have production, energy and water consumption and renewable taken place due to incorrect meter reads. All location and market-based figures are gross and do not include netted figures from carbon credits. 5. In 2022 we have disclosed additional Scope 3 categories which can be found in the ESG Data Centre. Our overall Scope 3 emissions have increased compared to prior years due to the additional disclosure. electricity consumption by country. 6. Campuses include 1 Churchill Place, Radbroke, Northampton, Glasgow, Pune, Whippany, 745 7th Avenue, Dryrock Our operational footprint data follows a reporting period of 1 October 2021 to 30 September 2022 Further data granularity relating to our operational footprint can be Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: + found at: home.barclays/sustainability/esg-resource-hub/reporting-and- home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/ disclosures/ Further details of the data provided, including further granularity of decimal points can be found in the ESG Data Centre located within the ESG Resource Hub.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 81 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 1 Electrify our real estate portfolio and vehicles Replace our reliance on fossil fuels across our global real estate portfolio to work Reducing our Scope 1 and 2 emissions with renewable energy towards installing 10MW of on-site renewable We are also transitioning, where possible, to all- Improve efficiency electricity capacity by 2035. Factors such as In 2022, we also accelerated our commitment to electric technology to heat and cool our global We reduced our global real estate portfolio supply chain disruptions, material availability and source 100% renewable electricity for all our real estate portfolio such as our new air source energy consumption by 30% against a 2018 market volatility may impact the type of global real estate portfolio by 2025 and have heat pumps at our Glasgow Sustainability Centre. baseline. At the end of 2021, we launched an renewable energy projects we can support and achieved this ahead of schedule through As part of our commitment to Climate Group’s Energy Optimisation Programme to help improve a the speed of execution. instruments including green tariffs (59%) and EV100 initiative, we are transitioning our global the energy efficiency of our global real estate b Notes: energy attribute certificates (41%). fleet to electric vehicles. By the end of 2022, 55% portfolio. In the first 12 months of our five-year a Green tariffs are programmes in regulated electricity markets offered Our intent moving forward is to source by utilities that allow large commercial and industrial customers to buy of our UK fleet was converted to electric. To programme, we saved 6GWh of energy, bundled renewable electricity from a specific project through a special renewable electricity primarily from on-site support the programme, we also increased the equivalent to the annual electricity consumption utility tariff rate. renewable installations or from new renewable b Energy attribute certificates (EAC) are the official documentation to number of EV charging stations across our global of approximately 2,000 UK households. prove renewable energy procurement. Each EAC represents proof energy facilities that add clean energy to the grid locations, which as of the end of 2022 totals that 1 MWh of renewable energy has been produced and added to the We have also focused on our own data centres, for example via PPAs. In 2022, we installed solar grid. Global EAC standards for renewable claims are primarily approximately 500 stations. which consume a large amount of energy to Guarantees of Origin in Europe, RECs in North America and photovoltaic systems at our Pune and Glasgow International RECs (I-RECs) in a growing number of countries in Asia, operate. For example, we upgraded our cooling campuses and have planned more installations Africa, the Middle East and Latin America. systems at our Cranford, New Jersey data centre. In just four months this upgrade led to an This PPA will avoid approximately 30,000 Retail branches Power Purchase Agreements approximately 19% energy reduction for cooling tonnes of CO e per year. In addition, the Creag 2 In 2022, we procured 100% of all retail branch In February 2022, Barclays signed a 10-year PPA in alone, in comparison to the same period in 2021. Riabhach project is expected to provide social electricity from renewable sources and support of Barclays' goal of sourcing renewable We will continue to make investments in introduced electric mobile banking vans as and environmental benefits through new electricity to power our global real estate portfolio technology and systems to reduce the amount of part of our flexible ways of serving customers. by 2025. Through this PPA, Barclays will support employment opportunities within the local area energy we need to power our global real estate Creag Riabhach, an onshore wind farm project in and the Scottish economy, supporting a local portfolio. Scotland. community benefit fund, and establishing a riparian tree planting programme to promote Beginning in 2024 through to 2032, Barclays has soil conservation and habitat biodiversity. committed to purchase up to 160 GWh per year of Technology Office of Sustainability power from this new-build renewable power asset, Technology has an instrumental role to play which will meet approximately 80% of Barclays' in reducing operational emissions. For future electricity needs in the UK and enhance the example, data centres account for 29% of UK grid's renewable energy capacity. 160 GWh our Scope 1 and 2 emissions. Barclays has of power Barclays has committed established a Technology Office of Sustainability responsible for integrating to purchase from the new-build sustainable practices and processes into renewable power asset technology hardware lifecycles, applications, data management and supply chain decisions. The new team helps identify infrastructure and application efficiency improvements, work with internal partners to manage building efficiencies and engage with technology suppliers to reduce supply chain footprint.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 82 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 1 Over time, we will evolve our methodology and We will continue to develop our methodology To mitigate these variables, we are proactively Addressing our Scope 3 operational improve the accuracy of our supply chain and our approach. In the interim, we intend to engaging with our suppliers to drive process emissions emissions inventory by increasing use of primary, work towards the milestone of a 50% reduction improvements and innovations and learn from Supply chain supplier-sourced and product/service specific in our supply chain emissions by 2030 (against a them where we can. We will adapt our approach In 2022, we expanded our GHG emissions data as it becomes more widely available. This will 2018 base year) and a longer-term milestone of as needed to respond to external circumstances inventory by accounting for our Scope 3 supply ultimately support consistent and transparent a 90% emissions reduction by 2050. and manage the effectiveness and impact of our chain emissions. We used the GHG Protocol's year-on-year accounting and reporting and support for the transition, while remaining In addition, we aim for 90% of our suppliers by Corporate Accounting and Reporting Standard a enable us to better measure progress. In the focused on our ambition of achieving net zero addressable spend to have science-based to establish a base year emissions inventory for interim, we anticipate seeing fluctuations in our emissions in our supply chain. emissions reduction targets in place by 2030. As 2018 and calculate emissions associated with our inventory as we improve our data methodology. of 2022, approximately 47% of our suppliers by In 2022, we significantly scaled up our climate- supply chain. In 2022, we developed a supply chain net zero addressable spend have science-based targets related engagement with our suppliers. For Following the GHG Protocol guidelines, we used example, we invited 475 of our suppliers, pathway which sets out our strategies and action in place or have committed to implementing a hybrid method to calculate our 2022 emissions plan and details the accountability mechanisms in targets. representing approximately 80% of our inventory. The spend-based method (the place to track progress. The pathway defines addressable spend, to report their GHG and To support our net zero operations strategy, we economic value of goods and services purchased organisational and operational boundaries and climate strategy to the Carbon Disclosure updated our general terms to include contractual multiplied by industry average emission factors) explains how we will identify and track supply Project (CDP), which is an increase of 385 expectations relating to climate change which will has been used to calculate emissions for most suppliers invited compared to 2021. We have chain GHG emissions over time. It also sets our apply to new contracts and contract renewals suppliers. Primary supplier-sourced data has interim emissions reduction and supplier also directly approached over 100 suppliers to moving forward. We are also looking to further been used where available. engagement milestones, and describes the discuss their climate strategy, including for embed climate change considerations in our It is important to recognise that our emissions activities required to achieve them. Finally, it example data quality, reporting mechanism and procurement processes. inventory for 2022 is indicative. The emission establishes the governance mechanisms for the reduction efforts. We understand that our success depends on our factors used represent average emissions for a supply chain net zero programme and the suppliers reducing their emissions, and that particular service or product group, and not the stewardship necessary to deliver and track Supplier Engagement progress may be volatile and non-linear. emissions from the actual service or product. progress. We invited suppliers representing Geographic considerations, resource capacities, The method provides us with insights that help In developing our net zero supply chain data availability, legal requirements, market approximately 80% of our addressable us to determine which procurement categories emissions plan, we used the Science Based conditions and the varying pathways that spend to disclose through CDP in 2022. and companies in our supply chain are Target Initiative's (SBTi) Corporate Net Zero individual companies take as a result of the responsible for the highest proportion of our technologies available to them to transition may Standard and Target Setting Tool, consistent As the landscape evolves, we will refine our GHG emissions and enables us to identify focus all affect the speed at which our suppliers can with a 1.5ºC aligned pathway. approach and develop tools and resources to areas for emissions reduction and supplier reduce emissions and track their progress help our suppliers in their journey to reduce their engagement. against their transition plan. greenhouse gas emissions. Note a Addressable spend is defined as external costs incurred by Barclays in the normal course of business where Procurement has influence over where the spend is placed. It excludes costs such as regulatory fines or charges, exchange fees, taxation, employee expenses or litigation costs, property rent.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 83 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 1 Business travel Supporting our colleagues Carbon credits Zero waste In 2022, total colleague air travel emissions In support of our net zero operations ambition we We plan to purchase at least 42,000 voluntary In 2022, we produced 5,616 tonnes of waste a reduced by 73% against a 2018 baseline. While are engaging with colleagues and implementing carbon credits to remain carbon neutral for our across our sites, 69% of which was recycled. Due emissions have decreased from our baseline, initiatives to reduce our individual environmental 2022 Scope 1, Scope 2 and Scope 3 business to return to the office, post-COVID, we have emissions increased between 2021 and 2022 by footprints. travel market-based emissions. We will look to seen an increase in waste produced compared to a percentage difference of 24% due to return to purchase a portfolio of certified carbon credits last year. In 2022, we implemented several programmes to business travel post-COVID. that follow industry standards and GHG crediting increase colleague understanding of our net zero All sites in our UK real estate portfolio (offices, Though a small percentage of our operational programmes including Verified Carbon Standard ambition and opportunities to support it: branches, campuses and data centres) are zero emissions, we use a variety of solutions to reduce (VCS) Programme and Climate Action Reserve waste to landfill certified. We have an ambition to • We provided colleague green benefits including our travel emissions including using digital (CAR). achieve and maintain TRUE (Total Resource Use the relaunch of our UK salary sacrifice car scheme technology where practicable as an alternative to We periodically review our carbon credits and Efficiency) zero waste certified projects as an electric vehicle scheme. We have worked face-to-face meetings, adjusting our travel procurement process. We currently conduct due across our key campuses by 2035, which means with our third party discounts platform provider in policy to promote lower carbon solutions (such diligence as part of our carbon credits we must divert a minimum of 90% of solid, non- the UK and US to curate and promote offers that as promoting train versus air travel when procurement process, that will include a third hazardous wastes from the environment, landfill support a more sustainable lifestyle, and are feasible), avoiding non-essential business trips party review of the project portfolio from an and incineration (waste-to-energy) to recycling seeking to roll this platform out to more and using our booking and reporting platforms to independent voluntary carbon markets advisory facilities or locations where the waste can be jurisdictions throughout 2023 improve colleagues’ awareness of their individual firm which is not directly involved in the sourcing reused. Our Pune campus in India was the first to • We deployed Barclays Go Green sustainability carbon footprint. process. achieve the TRUE certification in 2022. gamification programme globally, which led to In 2022, we also completed a review of our All final projects must pass independent due To deliver our ambition across the rest of our employees avoiding approximately 139tCO e 2 preferred airline partners and have selected diligence screening based on risk assessment in campuses, we are removing single use items, through their sustainable actions those with strong sustainability credentials, five key areas: location, technology, additionality, using on-site composters to reduce food waste • Our 12 employee-led environment networks including the use of sustainable aviation fuel environmental and social impacts as well as and promoting recycling. across the globe created and participated in (SAF), and are actively pursuing a number of potential benefits. We are using on-site composters across activities aligned with Barclays’ net zero ambition. initiatives to work with our partners to increase numerous global offices including Singapore, Further details on our carbon credits can be found on Barclays In 2022 they hosted a variety of activities and capacity and use of SAF. + ESG Data Centre at: home.barclays/sustainability/esg- Glasgow, and Pune. In addition, at our New York engaged with more than 6,200 Barclays resource-hub/reporting-and-disclosures/ Leased assets and waste offices we work with Goodr, which participated in employees We have established a baseline for our leased assets Barclays' Unreasonable Impact accelerator Nature and biodiversity in our Further information about how Barclays engages with and waste GHG emissions detailed in our ESG Data programme, to re-route our surplus food to local + colleagues can be found on page 118. operations Centre. Though these emissions are minimal in charities. Nature and biodiversity are intrinsically comparison to all other operational emissions, we connected to our efforts to mitigate and adapt will develop activities to address those emissions. to climate change and maintain healthy communities. As such, we focus on improving our resource use and protecting natural environments through our circular design principles including designing out waste and pollution across our operations, recycling, and regenerating natural ecosystems. Note a We define carbon neutral as first reducing carbon dioxide emissions then counterbalancing carbon dioxide emissions from Scope 1, Scope 2 and Scope 3 business travel with carbon credit offsets.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 84 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 1 Water management Sustainability in our building Although our operational water footprint is design and operations relatively small, we are investing in new As of December 2022, 57% of our technologies to reduce our water consumption global real estate portfolio by area has and increase our use of recycled water. For a third-party verified green building example, in 2022 the grey water recycling system certification. These certifications at our Pune campus enabled us to repurpose comprise of US Green Building approximately 38,000 kilolitres of grey water, so Council’s Leadership in Energy and that 85% of the campus’ water consumption Environmental Design (LEED) came from on-site recycled water. certification programme, Building Biodiversity Research Establishment As part of our location strategy and ongoing Environmental Assessment Method management of our operational assets, we (BREEAM), Energy Star certification consider how biodiversity and ecosystems are and WELL Building Certification™. impacted – both positively and negatively – by This achievement includes: our activities. • LEED certifications at our Chicago, We conduct pollution risk assessments across Boston, Whippany, and Pune sites our property portfolio where we hold generators, • WELL Gold certified™ at our Pune to ensure no fuel escapes outside its site, the first in our property containment and therefore does not pollute land portfolio in addition to Barclays’ and water systems. We also seek to enhance participation in the WELL at Scale biodiversity across our buildings. For example, as programme part of the redevelopment of the Radbroke • Energy Star certification at our campus, we are seeking a 10% increase in 2 Piscataway data centre for the 10th biodiversity by 're-greening' 800m of the site by consecutive year. 2025. Recognising the importance of this agenda, we will be developing our understanding Additionally, 41% of our global real and we will be evaluating nature-related risks and estate portfolio remain certified to opportunities on an ongoing basis. ISO 14001, the international standard for designing and implementing an Further details on Barclays’ approach to biodiversity can be + found on pages 119 to 120. Environmental Management System (EMS). All sites in our UK real estate portfolio (offices, branches, campuses and data centres) were zero waste to landfill certified.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 85 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 We aim to work closely with our clients to ensure We have assessed our financed emissions for six We will keep our policies, targets and progress Reducing our financed emissions that over time the activities we finance lead to sectors, including two new sectors that have under review in light of the rapidly changing lower financed emissions for the bank. been assessed for the first time in 2022: external environment and the need to support We are committed to aligning all of our Automotive manufacturing and Residential real governments and clients both in delivering an Consistent with our Purpose and taking into financing to the goals and timelines of the estate. orderly transition and providing energy security. account considerations of all relevant business Paris Agreement, consistent with limiting factors, we will undertake this by continuing to It is important to note that progress towards our Further details on our performance against our sector targets the increase in global temperatures to + can be found from page 88. ° set emission reduction targets for our portfolios targets will likely be variable and non linear. We 1.5C. To meet our ambition, we need to Details of the new Automotive manufacturing and residential where possible, aligned with the ambitions of the may need to adapt our approach to respond to real estate sectors where financed emissions have been reduce the client emissions that we finance, assessed can be found on pages 91 to 93. Net-Zero Banking Alliance, of which we are a external circumstances and to manage the not just for lending but for capital markets founding member. We will also continue to set effectiveness and impact of our support for the activities as well. and follow clear restrictions on financing certain transition, while remaining focused on our activities. ambition of becoming a net zero bank by 2050. Notes: Further details on our restrictive policies can be found on Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and + page 98. opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and- disclosures/ Financed emissions metrics Sector Setting our targets Monitoring our progress in 2022 Emissions Unit of Baseline Absolute emissions Sector Sector boundaries GHG included Reference scenario Target metric Target vs. baseline Cumulative change Physical intensity scope measurement year (MtCO e) 2 IEA SDS -15% by 2025 Absolute MtCO e Δ 2 Upstream Energy 1,2,& 3 CO and methane 2020 -32% 59.6 gCO e/MJ 51.7 Energy 2 2 (Absolute) emissions IEA NZE2050 -40% by 2030 IEA SDS -30% by 2025 Physical Δ Power generators 1 CO kgCO e/MWh 2020 -9% 29.2 302 Power 2 2 intensity IEA NZE2050 -50% to -69% by 2030 Cement Physical Δ 1 & 2 All GHGs IEA NZE2050 tCO e/t 2021 -20% to -26% by 2030 -2% 0.7 0.610 Cement 2 manufacturers intensity Steel Physical Δ 1 & 2 All GHGs IEA NZE2050 tCO e/t 2021 -20% to -40% by 2030 -11% 1.6 1.732 Steel 2 manufacturers intensity All GHGs for Automotive Light Duty Vehicles Physical Baseline set in Δ a 1,2 & 3 Scope 1 and 2; IEA NZE2050 gCO e/km 2022 -40% to -64% by 2030 6.2 167.2 2 manufacturers intensity December 2022 manufacturing CO for Scope 3 2 Portfolio convergence point vs. baseline Residential real UK buy-to-let and owner CO, methane and Physical Baseline set in Δ 2 2 1 & 2 CCC BNZ kgCO e/m 2022 1.5 32.9 2 occupied mortgages nitrous oxide Intensity December 2022 estate -40% by 2030 Notes a Physical intensity (CO e emissions per v-km travelled by LDV produced), expressed in gCO e/km. 2 2

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 86 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 is then compared to the benchmark. This helps sector and the scope of emissions we deem Use of target ranges Basis of preparation TM to determine our target for each sector. material for that activity. For Power, Cement, Steel and Automotive BlueTrack TM Manufacturing, we have set emissions intensity TM BlueTrack relies on modelling client emissions Greenhouse gases (GHGs) included We have developed our BlueTrack targets using a target range. based on the most recent publicly reported Metrics and targets for all sectors capture methodology to measure and track our financed asset-level production or client reported emissions on a CO e (carbon dioxide equivalent) While we are clear on the reduction required to emissions at a portfolio level against the goals 2 emissions. basis, aligned to the guidance issued by the Net- align with the IEA NZE2050 pathway (the higher and timelines of the Paris Agreement. TM TM Zero Banking Alliance. We assess which of the emissions reduction in the range), we recognise BlueTrack builds on existing industry Our 2023 BlueTrack Whitepaper provides more details of + our methodology and can be found within the ESG Resource GHGs are relevant and material for each sector. there are dependencies outside our control that approaches to cover lending as well as capital Hub online at: home.barclays/sustainability/esg-resource-hub/ will determine how quickly our financed markets financing, reflecting the breadth of our reporting-and-disclosures/ Target metrics emissions intensity can reduce in these sectors. support for corporate clients through our We use physical intensity metrics for all sector The lower emissions reduction in the range Sector boundaries Investment Bank. targets with the exception of Energy, where we reflects our view of the sector, client pathways For each sector, we aim to identify, measure and use absolute emissions. We see carbon intensity Main products included in financed emissions calculations and commitments at the time of setting the set targets on the segment of the value chain as the most appropriate measure of our target. We seek to achieve the higher emissions Drawn loans Financed where either (i) it is generally recognised that performance, at least in the earlier stages of reduction, consistent with our net zero ambition, (own balance Undrawn committed loans decarbonisation efforts are likely to spur the rest decarbonisation, as it encourages transition to but achieving it will depend on external factors. sheet) of the sector value chain to fall into alignment or Trade financing lower-emitting fuel sources. (ii) where financiers are likely to have more Use of carbon credits Mortgages (for residential real The Energy sector cannot reduce its carbon TM influence over companies active in that segment. estate only) BlueTrack does not allow company-purchased emissions intensity below a certain point (for Our choice of segment is based on Barclays' own offsets (e.g. carbon credits) to reduce emissions, Equity holdings instance, a barrel of oil cannot be decarbonised), view, informed by guidance and recommended as we believe it is important to base a metric on therefore a reduction in absolute carbon Bond issuances Facilitated practice from portfolio alignment initiatives such operational activities under a company's control, emissions is more appropriate for Energy. Equity issuances as PACTA, SBTi and others. rather than on unrelated credits (the availability Reference scenarios Syndicated loans of which may be limited). The methodology does Emissions scope Each of our 2030 target ranges is developed with allow company-operated removals, i.e. on-site For each sector target we must consider which In certain sectors product scope may vary, for reference to a 1.5°C aligned scenario. For the carbon capture at a plant; however, given this is of a company's emissions we should measure, example, the Residential Real Estate sector majority this is the IEA's Net Zero by 2050 currently marginal in the context of emissions, for example, direct or indirect emissions. We metrics only include mortgages. We continue to (NZE2050) scenario. In calculating a there is currently no impact on the metrics. define this according to the GHG Protocol keep product inclusion under review. Additionally, convergence point for our Residential Mortgages TM definition of Scope 1, 2, and 3 emissions. Within Top-down portfolio assessment BlueTrack is also being expanded to cover UK portfolio, we use a UK focused Balanced Net the boundary of our target, we aim to capture a residential mortgages. We aim to set granular targets for material high- Zero Scenario developed by the UK's Climate company's most material emissions, taking into TM emitting sectors in-line with the Net-Zero BlueTrack starts by selecting a benchmark for Change Committee (CCC BNZ). account considerations including materiality, Banking Alliance commitments within our a sector which defines how financed emissions Baseline year consistency to benchmark, level of control and financing portfolio. However, we recognise it will for a portfolio need to change over time, in line whether the emissions can be abated by the We measure our financed emissions for each take time to assess our entire portfolio using this with the goals and timelines of the Paris company. For example, our Upstream Energy portfolio against a baseline metric that was approach. We are progressing work to develop a Agreement, consistent with scenarios limiting target includes Scope 3 emissions, recognising determined in the year we first assessed that high-level, modelled assessment of our overall the increase in global temperatures to 1.5°C. We these emissions are significant for a company target. The baseline year therefore varies across balance sheet emissions, consistent with the then determine how our sector portfolios are extracting fossil fuel. the six sectors assessed to date, to ensure we approach outlined by the Partnership for Carbon performing against these benchmarks by TM are using the most up to date data available when Accounting Financials (PCAF), of which Barclays BlueTrack financed emissions are therefore a estimating the emissions that our clients we set our targets or convergence points. is a member. subset of the total financed emissions for each produce, determining how those emissions customer or client, as they only include the should be linked to the financing we provide and portion of the client's activities that are both then aggregating those measurements into a within the value chain we have chosen for the portfolio-level metric. This portfolio-level metric

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 87 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Data sourcing and data quality Our approach to reporting financed emissions data Climate data, models and methodologies are Scenario Our approach evolving and not yet at the same standard as more TM traditional financial metrics. BlueTrack relies on Error identified in our internal • Financed emissions metrics for all years impacted by the error will be restated, including the baseline year. Restatement externally sourced data which is mapped to internal finance data or methodology customer and client identifiers. The externally • The updated methodology will be applied from the start of the current reporting period. sourced data has various limitations for each sector, • The last reported financed emissions spot metric will be recalculated using the new methodology / data including lack of coverage, low resolution, Changes to our methodology and/ source to provide the new baseline. This will ensure consistency of data and methodology when calculating our consistency and transparency of company reported performance. or data sources to calculate data, and the time lag for external sources to report Re-baseline financed emissions (e.g. including • The recalculated baseline and the progress achieved to date will be used to disclose the theoretical baseline estimates or actuals. for the year the targets were originally set. additional GHGs) Time lags could be as much as two years for data • The cumulative progress will be the progress for the current reporting period (using the new methodology) such as company value, company revenue share, and the progress up until the last reporting period (using the old methodology). emissions, production capacity and capacity factors. Updates to external counterparty • The impact of updated external data will be included into the current period financed emissions data and the Due to these time lags, our financed emissions progress metric for the current reporting period. data driven by timing lags when Capture in- metrics are at best an estimate of our clients' data is reported (e.g. counterparty year • Data lags are inherent to the process and Barclays will endeavour to use the latest available data . Historically activities on a given date, using the external data reported metrics will not be updated for data lags. valuations or emissions estimates) available at that point in time. Our approach to reporting financed emissions data • Energy: updated to include methane, adding Baselines at December 2022 more granularity to our estimate of the Scope 1 Given the evolving nature of climate data, models Previously reported metrics Recalculated metrics and 2 emissions for energy producers and methodologies, past period metrics may Change at Dec Theoretical Recalculated change to reflect updates. To manage the impact of Baseline Baseline • Power: updated to account for the difference in Financed Sector Unit 2021 baseline financed year metric emissions these changes, we have adopted a principles-based capacity factors (or utilisation levels) for metric (percentage emissions for for Dec 2021 approach to guide whether prior metrics and Dec 2021 (re-baselined) change) renewable power technologies, to improve the baselines should be restated or re-baselined. robustness of our intensity estimates for Power MtCO e Δ a 2 2020 75.2 58.6 -22% 59.0 75.7 Energy Generators. • A restatement will involve updating the historical (Absolute) starting point for a period and recalculating the Across both sectors, we have also updated the kgCO e/ Δ b 2 historical performance 2020 322 296 -8% 304 external dataset on production / capacity following a 331 Power MWh change in the data sourcing methodology adopted • A re-baseline will involve keeping the historical by our external data vendor. Δ performance constant and re-calculating the tCO e/t 2021 0.625 Cement 2 current period baseline to ensure consistency Under our approach (as explained above), we have when reviewing performance. The indicative published a theoretical baseline for 2020. Δ tCO e/t 2021 1.945 Steel 2 historical baseline will also be disclosed. Notes: a In calculating the 2022 metrics, we have restated the baseline for Due to this, direct like for like comparisons of Energy from 75.0 MtCO to 75.2 MtCO resulting in no impact on our 2 2 Automotive Δ year-end 2021 metrics. gCO e/km 2022 financed emissions information disclosed may not 167.2 2 manufacturing b For Power we have restated the baseline from 320 kgCO /MWh to 2 always be possible from one reporting period to 322 kgCO /MWh with a recalculated year-end 2021 number of 296 2 kgCO /MWh vs 295 kgCO /MWh with a consistent percentage another. Where information is restated or re- 2 2 Residential Δ 2 kgCO e/m 2022 32.9 reduction for 2021. 2 baselined, this will be identified or explained. real estate Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance For 2022, our methodologies have been updated scope and opinions can be found within the ESG Resource Hub for for the Energy and Power sectors: further details: home.barclays/sustainability/esg-resource-hub/ reporting-and-disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 88 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Progress against our existing sector targets Financed emissions - Energy Financed emissions - Power Absolute emissions MtCO e (Indexed 2020 = 100) Physical Intensity kgCO e/MWh (Indexed 2020 = 100) 2 2 IEA NZE Benchmark: World Portfolio target path Barclays portfolio IEA NZE Benchmark: World Portfolio target path (range) Barclays portfolio ¢ ¢ Financed emissions - Cement Financed emissions - Steel Physical Intensity tCO e/t (Indexed 2021 = 100) Physical Intensity tCO e/t (Indexed 2021 = 100) 2 2 IEA NZE Benchmark: World Portfolio target path (range) Barclays portfolio IEA NZE Benchmark: World Portfolio target path (range) Barclays portfolio ¢ ¢ Notes: Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 89 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 We are continuing to invest in developing tools Our continued progress reflects year-on-year Our progress reflects the challenges in the Progress against existing that will enhance the quality of our forecasting reductions in emissions from our financing, power sector during 2022. While many clients sector targets and better understand the potential volatility in primarily a decrease in capital markets volumes continued to invest in additional renewables In April 2022, we published new 2030 our progress over the remaining target period. as rising interest rates paired with strong cash capacity, they also needed financing to ensure TM BlueTrack targets for the Power, Energy, flows tempered client appetite for raising capital. they could continue to meet energy demands Cement and Steel sectors, building on our Further details on management and oversight of our Lending activity showed a slight increase, mainly while managing elevated input costs. For + performance can be found on page 95. existing 2025 targets for Power and Energy. reflecting the strengthening of the US dollar. companies across Europe particularly, this meant Against a backdrop of the conflict in Ukraine and identifying how to rapidly replace Russian natural Our Client Transition Framework (CTF), which we Many energy producers have focused on capital the associated energy crisis, elevated energy gas supplies, given the conflict in Ukraine, as well began developing in 2022, will also provide insight discipline, returning capital to shareholders, prices for much of 2022 resulted in energy as shortfalls in hydroelectric power and nuclear into key dependencies and levers that will impact rather than increasing investment in new companies experiencing strong cash flows. power generation that resulted from heat and our ability to meet our targets across sectors. production and continuing to deleverage their Governments and corporations have prioritised drought. This supply gap has been filled in part by balance sheets. The impact of these capital energy security and (for consumers and SMEs) Further details on our Client Transition Framework can be an increased reliance on coal-fired power allocation decisions had the effect of partially + found on page 96. affordability. capacity, which offset some of the intensity offsetting the reduction in our financed improvements from their renewables Our progress in 2022 against our targets reflects emissions metrics. This is a function of our Energy TM investments. We have seen an increase in the potential for volatility in these metrics and BlueTrack methodology, whereby when a For our energy portfolio we set targets to reduce lending and capital markets activity, reflecting the highlights that our future progress will likely client's book value decreases, Barclays' financed our absolute financed emissions inclusive of market conditions. However, emissions intensity continue to be non-linear due to the many emissions increase, all else being equal. clients' Scope 1, 2, and 3 emissions. We are remained broadly flat, as we have focused on the external dependencies and variables beyond Power targeting a 15% reduction in CO e by 2025 and a 2 relative intensity of our portfolio. Barclays' control that may determine the pace of 40% reduction in CO e by 2030 against a 2020 For our power portfolio, we have set targets to 2 transition. Despite this forced return to coal, clients and the baseline. reduce our financed emission intensity resulting governments in the jurisdictions in which they We remain focused on our ambition of becoming from clients’ Scope 1 emissions. We are In 2022 we reduced our Energy absolute operate, have reiterated that this increase in coal a net zero bank by 2050, in line with our stated targeting a 30% reduction in CO e by 2025 and a 2 financed emissions by a cumulative power capacity will only be temporary. On Climate risk appetite, and acknowledge the need reduction in the range of 50% to 69% by 2030, balance, the consensus view is that the longer- to adapt our approach in light of the rapidly both against our 2020 baseline. term impacts of the Ukraine crisis will accelerate changing external environment, including -32% In 2022, we achieved a 9% cumulative reduction efforts to transition to renewables to avoid addressing legitimate concerns about energy in emission intensity across our power portfolio. similar supply shocks in the future. security and ensuring we continue to support further exceeding our 2025 target This progress reflects net reductions in the governments and clients in delivering the intensity of our lending activity and updated input transition to a low-carbon economy. Our absolute financed emissions were down to values used in our calculations (as outlined in our 51.7 MtCO e, an additional 10% reduction from TM 2 Further details on Barclays' Climate risk appetite can be BlueTrack Whitepaper), however, this was + the 2021 level. Of our total attributed emissions, found on page 283. partially offset by an increase in the intensity of c. 70% was related to oil, gas and natural gas our capital markets financing year-on-year. liquids (NGLs) production while the remaining c.30% was attributable to coal production, with natural gas liquids (NGLs) being generally immaterial. Further details on our use of NGLs can be found in our latest TM + BlueTrack Whitepaper in the ESG Resource Hub online at: home.barclays/sustainability/esg-resource-hub/reporting-and- disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 90 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Cement Steel Future target progress For some sectors progress can occur in the short term while, for others, the technologies Last year we announced a 2030 target to reduce In 2022, we announced a 2030 target to reduce As previously noted in our disclosures, in the required to transition are not yet fully available the scope 1 and 2 gross emissions intensity of the intensity of financed emissions for our steel short term, we may experience significant meaning they are likely to transition at a later financed emissions for our cement portfolio by portfolio by 20% to 40% against a 2021 baseline. decreases or increases in our metrics, partly due point in time. 20% to 26% against a 2021 baseline. to the volatility of the mix and volume of capital In 2022 the intensity of this portfolio reduced by Ultimately our progress may prove challenging markets financing included in our metrics. During 2022, we reduced the intensity of this 11%. This progress was largely driven by and may be affected (positively or negatively) by portfolio by 2%. This reflects a net increase in decreases in some clients’ emission intensities Our future progress in achieving these targets is these external factors. dependent on many external factors including, financing to clients with an intensity below our as they built lower emission Electric Arc Furnace Our Client Transition Framework will support our for example, our clients’ pace of progress on portfolio average. capacity, rather than as the result of changes in evaluation of our corporate clients' current and their individual transition pathways, the public our financing. expected future progress as they transition to a policy and regulatory environment, technological Both our Steel and Cement portfolios are low-carbon business model. advancement, geopolitical or regional comprised of small populations of clients with a developments, energy security, cost of living and range of intensities, thus, changes in our just transition considerations. The transition to a financing activity even for a single client within a low-carbon economy will be reflective of the portfolio can have a significant impact on our specific pathways companies take. metrics and reported progress.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 91 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Further details on our financed emissions methodology can New sector target - Financed emissions - Automotive Manufacturing (LDVs) TM + be found in our latest BlueTrack Whitepaper at: Automotive Manufacturing home.barclays/esg-resource-hub/reporting-and-disclosures/ Physical Intensity (gCO e/km) (Indexed Dec 2022 = 100) 2 Over the next 10 years, the auto manufacturing industry will undergo significant change driven by Power of One Barclays helps policy and regulation, consumer demand, and create a cleaner, more efficient the transition to low-carbon transport. The way to move goods global vehicle fleet will transition from internal combustion engines, towards hybrid vehicles and Barclays colleagues across the Corporate vehicles powered by batteries (BEVs) or fuel cells and Investment Bank partnered to deliver a (FCEVs). US$300m securitisation transaction and commit US$150m of financing. Einride Our automotive emission intensity target designs, develops and deploys technologies To support this shift toward BEVs, we have set a for freight mobility – including electric and target to reduce the financed emissions intensity autonomous trucking fleets, charging of our automotive manufacturing portfolio by infrastructure and connectivity networks – 40%-64% by 2030 against a 2022 baseline, TM with the vision to create a more resilient, calculated using our BlueTrack methodology. IEA NZE Benchmark: World Portfolio target path (range) Barclays portfolio ¢ cost-effective and intelligent way to Consistent with our target ranges for other sectors: transport goods. • the lower emissions reduction in the range measure, including assessing the rate of retired We are clear as to the level of emissions reflects an estimated emissions reduction Founded in 2016, Einride’s connected LDVs and the growth in BEV, FCEVs and hybrid reductions required to align with the IEA trajectory based on our current view of sector electric trucks and charging solutions, vehicle sales. Given our focus on automotive NZE2050 pathway but we recognise there are and client pathways and commitments intelligently co-ordinated by Einride Saga, manufacturers, we believe a sales focused dependencies and variables outside our control allow shippers and carriers to go electric, • the higher emissions reduction in the range is measure is more appropriate. that will determine how quickly our financed improve operational outcomes and reduce aligned to the IEA NZE2050 pathway emissions intensity can reduce in this sector. Our assessment of the NZE scenario indicates their carbon footprint. consistent with limiting global warming to that the intensity of new vehicles sold needs to 1.5°C. This pathway incorporates an We note that our clients’ ability to meet their Einride will use this securitisation reduce by c.65% from 2022 to 2030. assumption that public policy interventions, targets is dependent on continued regulatory, programme to finance their global truck shifts in demand and new technologies will policy and technical support for the industry, as The automotive value chain includes parts assets and customer contracts - permitting transpire and enable our clients and the well as consumer demand for BEVs and FCEVs, suppliers, manufacturers, in-house financing them to continue to scale their fleet, industry as a whole, to accelerate their supply chain capacity and continued business, dealers and end users, including the increase investment in research and transition plans beyond current commitments infrastructure building, for example, EV charging use of fleets within companies. Our methodology development, and further develop or expectations. networks and related grid upgrades or green focuses on the manufacturers and assigns all relationships with partners. hydrogen production and hydrogen refuelling The scope of this portfolio target is limited to new downstream tailpipe emissions to the stations to support demand. light duty vehicle (LDV) manufacturers, including manufacturer. We focus on auto manufacturers Scope 1, 2 and 3 downstream emissions (use of Estimating our financed emissions because they play a major role in the type of TM sold products) i.e. the combustion of fuel or ‘tank Using our BlueTrack methodology, we have vehicle brought to market for consumers and to wheel’ metrics. estimated the financed emissions and emissions fleet operators to buy and are in a strong position intensity of our global autos manufacturing Heavier vehicles may be dependent on future to influence their production process and portfolio. The emission intensity benchmark is technology developments including green upstream suppliers. based on the IEA NZE2050 scenario. hydrogen to decarbonise and are not currently in Notes: Δ 2022 data subject to independent Limited Assurance under scope of this target. We will keep this under Currently, the IEA only provides granular ISAE(UK)3000 and ISAE3410. Current and previous limited assurance review, as the transition of heavier vehicles will be pathways for tailpipe emissions associated with scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/ required for the automotive sector as a whole to the stock of vehicles on the road so we have reporting-and-disclosures/ reach net zero. made adjustments to convert this to a flow

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 92 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Barclays UK Residential Real Estate ambition New sector assessed – Financed emissions - Residential Mortgages 2 In addition to establishing a convergence point Residential Real Estate Physical Intensity (kgCO e/m ) (Indexed Dec 2022 = 100) 2 and measuring our progress towards it, we have Estimating our financed emissions set an ambition for 50% of homes in our Barclays Homes contributed to over 15% of total GHG UK UK mortgages book with known EPC rating to a emissions in 2021 , primarily from the use of oil have an EPC of C or better by 2030. This will be and gas in heating and hot water. Decarbonising an important improvement, but it will not be UK homes is a complex challenge that will require sufficient to reduce portfolio emissions intensity widespread engagement and systemic change. o to the level required under a 1.5 C scenario. In view of these challenges, we are announcing a d As at the end of Q3 2022, 65.1% of homes in our convergence point for our UK residential real portfolio had an EPC rating, and of those, 42.3% estate mortgage portfolio of a 40% reduction in of these are C or better (27.5% of total homes, COe emissions intensity against a 2022 baseline 2 2 including those without an EPC). of 32.9 kgCO e/m (Scopes 1 and 2)” 2 Notes: Barclays has estimated the financed emissions a Climate Change Committee 2022 Progress Report to Parliament. b Our Data Quality scope for the Residential Real Estate sector is 3.7. and emissions intensity of its UK residential real The PCAF framework provides guidance for a data quality score for b CCC - Synthetic BNZP Scenario: UK Portfolio convergence point Barclays portfolio estate portfolio by integrating the PCAF ▲ ¢ each sector to help institutions rate the reliability of their information. TM The score ranges from one to five, with one being the highest quality approach into BlueTrack . This is the first sector date. For Residential Real Estate, our Data Quality score is 3.7. Please TM where we are leveraging the well-established refer to the BlueTrack Whitepaper for further details on how the The transition of the residential real estate Without these external changes, Barclays cannot data quality score is calculated. approach and data sourcing recommended by c Corporate counterparties such as social housing associations or sector to net zero depends mostly on external materially decrease the emissions intensity of its PCAF. Our in scope portfolio consists mostly of house builders, mortgages on properties outside of the UK or changes and public policy interventions to: steer mortgage portfolio. Barclays has therefore mortgages originated through Barclays UK Business Banking have not Barclays UK residential mortgages, including been included in this sector. the UK energy grid towards renewable electricity; chosen to identify the 2030 emissions intensity properties to let. It also includes a smaller d EPC rating metrics calculated based on volume of accounts. Data as reduce dependence on fossil fuels for home 'convergence point' and measure our progress of 30 Sept 2022. portfolio of mortgages originated by the Private c heating; drive retrofitting of existing homes to towards it, but not to set a formal target at the Banking division of Barclays Bank PLC . Δ 2022 data subject to independent Limited Assurance under promote energy efficiency; and require that new current time. ISAE(UK)3000 and ISAE3410. Current and previous limited assurance We have selected the Balanced Net Zero (BNZ) scope and opinions can be found within the ESG Resource Hub for homes are built to a net zero standard. further details: home.barclays/sustainability/esg-resource-hub/ scenario developed by the UK's Climate Change reporting-and-disclosures/ Committee (CCC) as a benchmark for this sector as it is specific to the UK, independent, developed by a credible institution and aims to achieve net zero emissions for the UK by 2050. In line with this scenario, our portfolio would need to reach an emissions intensity of 19.7kgCO e/ 2 2 m by 2030 to be on a path to net zero by 2050, which would be a 40% reduction in emissions intensity from a 2022 baseline. Further details on the methodology can be found in the 2023 TM + BlueTrack Whitepaper at: home.barclays/sustainability/esg- resource-hub/reporting-and-disclosures/

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.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 94 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 In response, we launched our Greener Home Barclays UK Greener Home Reward Reward pilot in October. It offers a cash reward of up In 2022, we conducted research exploring to £2,000 for mortgage customers who install homeowner attitudes towards sustainability energy efficiency measures in their homes. and the barriers preventing action. Our The objective of the pilot, which remains research showed that while the vast majority a ongoing, is to help us to understand consumer (90%) of homeowners intend to make energy behaviour and motivations for taking sustainable efficiency-related changes to their homes action. The pilot will provide empirical evidence to within the next five years, cost is a prohibitive evaluate real and perceived barriers, and whether barrier. such incentives from mortgage providers would help to reduce these barriers and enable homeowners to take proactive action on the energy efficiency improvements they want. Retrofit types at registration As of December 2022, we have seen continuing interest from our customers. 44% of applications Solar Energy 44 have been for solar panels and solar battery Doors & windows storage, but there is clear demand for a range 20 of energy efficiency measures. The insights Insulation 17 from this pilot will help us to develop relevant Low-carbon products and propositions to support 15 heating our customers' transition to low-carbon, Solid wall insulation energy efficient homes. 4 Solar energy Low-carbon heating n n Doors and windows Solid wall insulation n n Insulation n Notes: a Consumer data and insights taken from a nationally representative research study of 2,000 homeowners, commissioned by Barclays, and carried out by Mortar Research from 26 August - 1 September 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 95 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Next sectors in our portfolio Corporate and Investment Bank: Working to support future The report covers some of the key alignment Managing our portfolios considerations for the agricultural sector sector target setting TM Using BlueTrack , we have assessed our In managing our portfolios, we taken into including appropriate scope of emissions Barclays has been working with the Banking financed emissions in six high emitting sectors account all relevant climate-related risks and and activities to include in targets; data and for Impact on Climate in Agriculture (B4ICA) and have set targets in five of those. considerations, including how our portfolios are measurement of emissions; use of offsets; initiative, along with other peers, to consider TM We will continue to assess the financed performing against our BlueTrack targets so treatment of land-use-change; net versus the particular challenges of setting financed emissions across our portfolio and measure the that this can be considered in context, alongside gross targets; and absolute versus intensity emission reduction targets in the agricultural baseline emissions that we finance across our client transition analysis, counterparty risk targets. sector, given the heterogeneity of practices, sectors. In particular, we aim to assess our and other relevant business considerations. products and conditions. In December 2022, The report can be found at: www.wbcsd.org/contentwbc/ baseline financed emissions across the + download/15359/224482/1 the group published non-binding guidance for Further details of climate risk-related considerations are + Agriculture, Commercial Real Estate, Aviation managed can be found in the Managing impacts in lending financial institutions aimed at supplementing and financing section on page 253. and Shipping sectors during 2023. existing guidance relating to agriculture and With regards to performance against targets, we Our commitment under the Net-Zero Banking climate change, with practical advice for banks have established regular senior management Alliance is to set science-based targets for all setting targets and supporting companies reporting and monitoring for each of our material high-emitting sectors in our portfolio by within their agricultural sector portfolio. portfolios in the Corporate and Investment Bank. April 2024. Our assessment of our baseline This includes both our current metrics as well as financed emissions in these further sectors will a forecast of how clients’ emissions and thus our inform our plan for target setting in the coming overall portfolio may evolve over the remaining year. target period. By understanding how our This work to comply with our commitment under estimated performance compares to our targets the Net-Zero Banking Alliance, as well as work we are able to appropriately increase or that is ongoing to develop a high-level modelled decrease the degree of required management assessment of our overall balance sheet, oversight. consistent with the approach outlined by the • Where we believe we are currently likely to Partnership for Carbon Accounting Financials exceed our targets we continue monitoring (PCAF), will aid our understanding of the extent our progress. to which our financing aligns with a 'well below 2°C' scenario. • For targets we believe will be met within a margin of error, we assess the portfolio impact The phasing of our work and progress we've of proposed new lending transactions above made in portfolio alignment reflects the certain thresholds to ensure we are considerable effort required to establish our comfortable with the potential impacts. baseline emissions for each sector and to set appropriate targets, taking account of both our • Where we expect meeting our targets will be lending and capital markets financing activities. challenging, the thresholds for the size of transactions to be reviewed are scaled down accordingly to ensure greater management oversight in the round of such transactions. We are continuing to invest in building improved tools that allow us to enhance the quality of our forecasting and to help us better understand the potential impact of the uncertainty in our estimates of future performance.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 96 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 The assessments under the two elements are Short and medium-term actions to combined to arrive at an overall CTF score from deliver on emission reduction targets T1 (best) to T5 (worst). In 2020, we started to measure and assess our The development of the CTF has been a cross- clients' emissions by building our financed TM bank exercise utilising the breadth of climate emissions methodology (BlueTrack ) and expertise across Barclays. It has been informed by setting interim emission reduction targets, a review of third-party frameworks (e.g. TPI, To achieve these targets, we will need to support CA100+, SBTi) and other industry initiatives (e.g. our clients to reduce the emissions that result UK's Transition Plan Taskforce, GFANZ). Design from their activities and those generated in their choices regarding material criteria have also been respective value chains. informed by internal sector analysis and insights New tool: Client Transition Framework (CTF) from our stress testing exercises. In our Climate Strategy, Targets and Progress Today, the CTF is primarily a benchmarking tool. document published in March 2022 we noted our Our initial assessments have been conducted for intention to develop a Client Transition Framework the majority of our corporate clients in sectors TM (CTF). This has been underway during 2022 and the where BlueTrack targets have previously been CTF will become a key tool in implementing our set: Power, Energy, Cement and Steel - over 150 TM climate strategy. clients in total. As new BlueTrack targets are set, The CTF will support our evaluation of our corporate the CTF will be applied to corporate clients in clients' current and expected future progress as those sectors. they transition to a low-carbon business model. Findings from those initial assessments include: The CTF includes quantitative and qualitative • c.80% of assessed clients have climate targets elements. The quantitative element assesses a • c.60% of clients assessed have executive client's alignment with our emissions targets and compensation tied to achievement of their sector benchmarks. climate goals. The qualitative element seeks to assess the The review process has also revealed a number of credibility of a client’s transition plan. It considers challenges in gaining an accurate assessment of criteria that serve as indicators of intent and clients' transition preparedness, in particular the ambition, and therefore the likelihood that a client availability and consistency of data. We will will meet its targets. For example, the low-carbon continue to work to address data quality technologies employed, and green capital or challenges we have identified in the next iteration operational expenditure plans. of the CTF. Most of these criteria are consistent across The CTF has also provided insight into key sectors, however we also consider some sector- dependencies and levers that will impact our specific criteria. This includes Energy sector ability to meet our targets across sectors. clients' commitments on methane emissions Further details on the dependencies impacting our reduction and Power sector clients' commitments + strategy can be found on page 135. to phase-out thermal coal.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 97 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 We engaged Oliver Wyman, a leading Additionally, these evaluations will increasingly Other tools considered Just transition within the CTF management consultancy, to review and feed into our wider climate scenario analysis, We have developed tools to monitor and report benchmark the CTF. This will allow us to identify such as being used to inform sensitivity analyses We have launched a pilot assessment, which is on progress to date against our financed enhancements to the CTF to ensure it is a robust that will in turn inform our strategy. ongoing, to evaluate whether our clients are emission targets, as well as to estimate potential mechanism for assessing the credibility of seeking to decarbonise in line with a just Further details on our approach to climate EDD and future paths. Client commitments and our Client + climate risk can be found on pages 253, 273 and 285. clients' transition plans. transition for their stakeholders, considering Transition Framework feed into this analysis and the social risks and opportunities of the As the framework is improved and refined, the help us determine where to best deploy capital. Engaging clients with the CTF transition, and ensuring effective dialogue with CTF results will be integrated into key processes We have considered other tools to help steer our We believe that Barclays can make the greatest affected stakeholders. Relevant stakeholders across the bank and capital allocation, as well as financing and portfolios, including applying an difference by supporting our clients as they include workers, communities, consumers, informing client engagement. CTF scores may internal carbon price or capital weightings. We will transition to a low-carbon business model, rather and suppliers impacted by the client’s also be used alongside other relevant factors to continue to explore carbon pricing as a tool to than by simply phasing out support for them. decarbonisation strategy. We will iterate this inform other processes, including credit risk support the transition but, at this stage, we have This is particularly true for our clients in highly assessment and expect our criteria to evolve. assessments, Climate Enhanced Due Diligence, decided not to progress with it as we think there carbon-intensive sectors. Where companies are and portfolio alignment strategy. This will allow us are other levers that are more effective. In this pilot, we are assessing whether our unwilling to reduce their emissions consistent over time to: clients' approach to a just transition with internationally accepted pathways, they may includes consideration of: • measure, monitor and report on our clients' find it difficult to access financing, including from decarbonisation progress and their Barclays. • adverse impacts on stakeholder groups implications for our targets from their activity (e.g. job loss, loss of As part of the roll-out of the CTF, we will begin tax revenue) • understand how we can support our clients' climate-specific engagement for those clients transition activities with scores of T4 and T5. This will ensure that we • actions to address identified impacts are directing efforts towards the clients that are (e.g. upskilling, remuneration, • identify engagement opportunities to support most at risk of failing to transition in line with our psychological support) clients' decarbonisation progress in line with targets and our approach to climate risk. market expectations and consistent with our • engagement with impacted stakeholder own approach, through the provision of We will track our climate engagement efforts and groups in decision-making that financing advice and solutions; and inform ensure we clearly communicate our expectations affects them. decision-making should engagement be for an appropriate transition plan while working ineffective over time with them to understand any unique challenges they may face in pursuing their transition. • inform our own transition plan and progress, including key dependencies, risks to meeting As the economy progresses along the pathway our interim emissions reduction targets, and to net zero and we get closer to our interim levers to address those risks. targets, we may adjust our expectations of clients. We will report on the progress from our engagement in our 2023 Annual Report.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 98 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 The experience of the last few years leads us to We will continue to keep our policies, targets and Restrictive policies Position and policy statements recognise that client transition pathways will vary progress under review in light of the output of In addition to setting sector-specific emission on sensitive sectors and the ability of our clients to meet our that work, the external environment and the reduction targets, consistent with our Purpose requirements may be affected (positively or need to support an orderly energy transition and Forestry and and considering relevant risks and other factors, Climate negatively) by external factors, including, for provide energy security. Agricultural we have set explicit restrictions to curtail or change example, the public policy and regulatory Further restrictions are set out in our Position Commodities prohibit financing of certain activities in sensitive environment, technological advancement, Statements in relation to Forestry and sectors. These policies are listed below and set geopolitical or regional developments, energy Agricultural Commodities and World Heritage • Coal mining • Forestry, pulp out in detail within our statements and policy security, cost of living and just transition factors. and Ramsar Wetlands. We intend to update and paper positions . • Coal power We intend to continue to work with and support these Statements and related policies and • Palm oil They include clear restrictions on thermal coal • Oil sands our clients as they transition their business and procedures in Q2 2023. mining and coal-fired power generation, Arctic oil • Soy will monitor and engage with them on their • Fracking Notes and gas, oil sands and hydraulic fracturing progress and the impact of external factors over a Oil sands exploration and production companies are those that • Arctic oil and gas majority own (>50%) or operate oil sands exploration, production and (fracking). Our restrictive policies are regularly time, through our Enhanced Due Diligence and processing assets, other than companies that generate less than 10% reviewed and updated based on a number of Client Transition Framework. of revenue from these activities. b A client is defined as "engaged in" coal-fired power generation if the internal and external factors. In light of this we are Further details can be found at: home.barclays/ + client earns >5% revenue from that activity. sustainability/esg-resource-hub/statements-and-policy- aligning our thermal coal power phase-out date c Oil Sands Pipelines are pipelines whose primary use is for the positions/ transportation of crude oil extracted from oil sands. for all EU and OECD countries to 2030. Since 2020, as part of our climate strategy we have only provided financing to oil sands Changes to our restrictive policies exploration and production clients who have Previously announced policy New announcement projects to reduce materially their overall emissions intensity, and a plan for the company Restrictive Existing restrictions in relation to thermal coal financing will continue to apply other than as updated below as a whole to have lower emissions intensity than policy the level of the median global oil producer by the • By 2030: in the UK and EU – phase out of financing to clients • By 2030: in EU and OECD phase out of financing to clients Thermal Coal end of the decade. As a result of this policy, our b b engaged in coal-fired power generation. In the rest of the engaged in coal-fired power generation. In the rest of the Power lending exposure to oil sands exploration and world (including USA) – no financing to clients that generate world, no longer provide financing to clients that generate more a production clients had reduced to zero at the more than 10% revenue from coal-fired power generation than 10% of revenue from coal-fired power generation end of 2022. • By 2035: phase out of financing to clients engaged in coal-fired • By 2035: phase out financing to clients engaged in coal-fired In light of this position and consistent with power generation power generation Barclays’ business strategy, we are further • We will only provide financing to oil sands exploration and We will not provide financing: Oil Sands restricting our business appetite so that with a production clients who have projects to reduce materially their effect from 1 July 2023 we will not provide • To oil sands exploration and production companies ; or overall emissions intensity, and a plan for the company as a financing to oil sands exploration and production • For the construction of new (i) oil sands exploration, production whole to have lower emissions intensity than the level of the companies or for the construction of new oil c and/or processing assets; or (ii) oil sands pipelines . median global oil producer by the end of the decade. sands exploration assets, production and processing infrastructure or Oil Sands Pipelines.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 99 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Financing the transition targets Financing the transition Barclays is facilitating green and sustainable £150bn social, environmental and sustainability - finance, alongside investing, to help the linked financing facilitated between 2018 and 2025 Δ economies we serve to support the Progress: target exceeded in 2021, with £247.6bn facilitated by the end of 2022 transition to a low-carbon model. Sustainable £100bn green financing facilitated between 2018 and 2030 We are facilitating funding and investing into financing Progress: on track to meet target well ahead of the 2030 target date, green technologies and low-carbon Δ with £87.8bn facilitated by the end of 2022 targets infrastructure projects. We are also using our advisory capabilities, product sets and financial expertise to help our customers and clients $1trn Sustainable and Transition Financing realise their own transitions to a low-carbon between 2023 and 2030 economy. New target encompasses green, social, transition and sustainability-linked financing In 2018, we set two targets covering financing that we facilitate for our clients and customers: (i) £150bn of social, environmental and sustainability-linked financing by 2025; and (ii) £100bn of green financing by 2030. Sustainable In 2020, we also announced that we would invest Impact Extended £175m between 2020 and 2025 up to £175m in environmentally-focused early- to £500m Capital Progress: £89m invested stage technology companies under our by 2027 by the end of 2022 target Sustainable Impact Capital investment mandate. During 2022, we continued to facilitate finance and undertook a strategic review of the Group’s capabilities, market demand and growth opportunities across sustainable financing. Existing targets New targets announced in 2022 As a result in December 2022, we announced two new targets - to facilitate $1trn of Social and environmental financing consists of Social financing Social, environmental and Sustainable and Transition Financing between financing for dedicated use of proceeds, financing Raising finance for clients including sustainability-linked financing 2023 and the end of 2030 and to invest £500m for clients with an eligible business mix in relevant supranational, national and regional development Barclays surpassed its target of facilitating £150bn into global climate tech start-ups through our environmental and social categories, and institutions continued to be a key driver of the of social, environmental and sustainability-linked Sustainable Impact Capital portfolio by the end of Δ sustainability-linked financing which refers to £24.9bn of social financing facilitated in 2022, financing between 2018 and 2025 in 2021, four 2027. general purpose funding linked to specific Δ while also contributing 58% of the total social and years early. We facilitated £54.3bn of social, sustainability performance metrics. environmental financing (excluding environmental and sustainability-linked financing sustainability-linked). Debt issuance was the largest product category during 2022 (£69.2bn in 2021) and a cumulative Δ again this year accounting for 71% of the total £247.6bn since 2018. The fall in financing facilitated Notes: (2021: 74%). Loans and equity accounted for 26% Δ 2022 data subject to independent Limited Assurance under in 2022 is consistent with the drop in overall market (2021: 19%) and 2% (2021: 7%) respectively. ISAE(UK)3000 and ISAE3410. Current and previous limited assurance activity compared to 2021. scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and- disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 100 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 As a growing area of sustainable finance, we have New $1trn Sustainable and Transition Sustainable Impact Capital Barclays' Sustainable seen issuers aligning their financing Financing target We firmly believe that innovation is key to tackling Finance Framework commitments to social use of proceeds bonds climate change and we are committed to In light of the progress made against our which allocate funds to categories such as Our sustainable financing is tracked using the supporting transformative change by investing previously announced targets and after a access to healthcare, affordable housing and methodology set out in the Barclays our own capital in entrepreneurial companies. In strategic review of the Group's capabilities, Sustainable Finance Framework, which defines essential services. We have also seen the use of 2020 Barclays announced that it would invest up market demand and growth opportunities, in the criteria we use for social financing, social KPIs within sustainability-linked financing to £175m equity capital into environmentally- environmental financing, green financing and December 2022 we announced a new target to such as targets linked to gender diversity. sustainability-linked financing for the purpose focused start-ups by 2025, helping to support facilitate $1trn of Sustainable and Transition Environmental financing of recording progress against our sustainable our clients' transition towards a low-carbon Financing between 2023 and the end of 2030. finance targets. Our environmental financing consists of labelled, economy. This encompasses the green, social, transition dedicated use of proceeds and general purpose Barclays is developing a similar Transition To date, we have invested £89m into 16 and broader sustainability-linked financing Finance Framework, that will determine the financing in environmental categories. In 2022, innovative start-ups, helping them to scale requirements of clients including corporates, Δ eligibility of transition transactions. we facilitated £18.0bn versus £22.6bn in 2021, solutions to environmental challenges and fill governments and consumers. This includes reflecting continued strong demand for Our Sustainable Finance Framework can be found online their growth-stage funding gaps. financing of climate and environmental solutions + environmental financing and our strategy to work within our ESG Resource Hub at: home.barclays/ including green mortgages, energy efficient sustainability/esg-resource-hub/reporting-and- These investments have supported many with our clients and customers to help facilitate disclosures/ technology and renewable energy, as well as aspects of climate-tech innovation, from their transitions towards a low-carbon economy. financing for broader social and sustainability property retrofit solutions to long-duration Sustainability-linked financing (including social) Facilitating £100bn of green financing work, including sustainability-linked structures energy storage and hydrogen technologies. Δ In addition to dedicated use of proceeds and areas such as affordable housing. We facilitated £25.5bn of green financing in Momentum has so far been in-line with transactions where financing is allocated to 2022 (down from £29.8bn in 2021, reflecting The inclusion of transition financing in this target expectations creating strategic opportunities specific eligible green, social or sustainable lower market activity), comprising: reflects our recognition of the importance of across the Group. The success of the activities, projects or assets, sustainability-linked supporting the decarbonisation of "hard to • labelled use of proceeds and general purpose investments to date meant that an increase in the bonds (SLBs) and sustainability-linked loans abate" sectors that are carbon intensive. financing in environmental categories investment mandate was required to allow Barclays (SLLs) are forward-looking, performance-based Δ (£18.0bn in 2022) and to continue existing efforts and support new Progress towards this target may vary from year debt instruments issued with specific KPIs and investments. As a consequence, in December to year. Changes in market conditions, policy, • sustainability-linked financing that sustainability performance targets. 2022 we announced that the investment laws, regulation and stakeholder expectations, incorporates environmental performance Our sustainability-linked financing totalled Δ mandate will increase to £500m by the end of including approaches to product labelling and targets (£7.5bn in 2022). Δ £11.4bn in 2022, up 5% from £10.8bn in 2021. 2027. regulatory scrutiny of green and sustainable The SLB market continues to be of significant Since 2018, we have facilitated a total of products could impact lending and capital We expect the next phase of investments will see an Δ importance to both investors and issuers alike £87.8bn across these categories. We are markets appetite. New climate and enhanced focus on decarbonisation technologies who use these instruments to embed their therefore on-track to meet our target of £100bn decarbonisation technologies may scale at that are enabling transition within carbon intensive sustainability targets into financing of green financing well ahead of the 2030 target varying rates, including being reliant on the supply sectors, particularly where Barclays has meaningful commitments. date. and demand of raw materials. We will continue to client exposure such as energy and power, real Breaking down our green financing by product review and adapt our approach to sustainable estate and transport. A particular focus will be on type, the largest category was debt issuance, financing in response to the evolving market carbon capture and hydrogen technologies. accounting for 61% (2021: 63%) of the total. opportunities. Loans and equity made up 33% (2021: 21%) and Notes: 4% (2021: 15%) respectively. Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and- disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 101 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Sustainable financing dashboard Achieved to date £150bn social, environmental and sustainability-linked financing facilitated Δ (2018-2025) £247.6bn Annual breakdown by category Annual breakdown by region Annual breakdown by product (£bn) (£bn) (£bn) 2022 2022 2022 18.0△ 24.9△ 11.4△ 19.8 30.8 3.6 38.3 1.2 14.3 0.4 2021 2021 2021 22.6 35.7 10.8 27.1 36.0 6.1 50.9 4.8 13.1 0.3 2020 2020 2020 14.8 41.2 5.0 29.6 28.6 2.7 49.1 2.6 9.2 2019 2019 2019 7.8 23.9 3.1 14.4 18.6 1.8 30.2 0.14.4 2018 2018 2018 5.3 21.8 1.4 10.0 17.1 1.5 25.8 2.30.4 Environmental Social Sustainability-linked Americas UK / Europe Asia and Rest of World n n n Debt Equity Loan Investments Other (Contingent) n n n n n n n n Achieved to date £100bn green financing facilitated Δ (2018-2030) £87.8bn Breakdown by year Breakdown by region Breakdown by product (£bn) (£bn) (£bn) 2022 2022 2022 4.3 18.0△ 7.5△ 7.1 16.8 1.7 15.6 0.9 8.3 0.7 2021 2021 2021 22.6 7.2 12.7 14.7 2.4 18.9 4.4 6.2 0.3 2020 2020 2020 12.3 14.8 2.8 7.9 9.0 0.7 12.2 1.5 3.8 2019 2019 2019 20.58 7.8 1.4 3.3 5.0 0.9 7.0 0.12.1 2018 2018 2018 24.1 5.3 0.3 2.3 3.0 0.3 4.8 0.60.3 Environmental Sustainability-linked (green) Americas UK / Europe Asia and Rest of World Debt Equity Loan Investments Other (Contingent) n n n n n n n n n n Further details of the data provided, including further granularity of decimal points Notes + can be found in the ESG Data Centre located within the ESG Resource Hub at Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub home.barclays/sustainability.esg-resource-hub/reporting-and-disclosures/ for further details: home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/

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

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 103 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Over the course of 2022, we had over 15,000 Working with our clients engagements with clients within the Corporate Bank on ESG topics, around triple the number of We want to be by our clients' side as they ESG engagements delivered over 2021 (5,000), transition their businesses to operate in a thanks to focused efforts by relationship teams low-carbon economy. We are working on to raise ESG topics proactively. expanding our sustainable finance offering We also held numerous client events on ESG and through our specialist teams to help clients sustainability topics, reaching nearly 2,000 navigate this period of extraordinary contacts over 2022. change. Engagement through research Engaging clients through our Client We provide thought leadership to support our Transition Framework clients, using our in-house ESG Research capability. Clients who have access to our The Client Transition Framework, outlined on research publications tell us it prompts greater page 96, will enable us to direct engagement evaluation of their business needs, and we have efforts towards clients that are most exposed to seen a number of instances of this leading to the risk of failing to transition in line with sectoral broader conversations about the transition to a pathways as reflected in our targets. low-carbon economy and the ways Barclays is on Engagement through business/ hand to support. In 2022, we published over 400 events ESG-focused research reports. As trusted advisers, we continue to proactively We will continue to provide support to our clients engage with many of our clients on the risks and in their efforts to transition. This will be informed opportunities for their businesses from the by the outcomes of the Client Transition transition to a low-carbon economy. This Products and services Framework assessments, allowing us to be We are also building capabilities to help support includes working with higher-intensity clients on targeted in our engagement efforts and provide the innovation that is needed to make the As a British universal bank, we support a wide their transition journey. We help clients execute clients with clear communication on our transition a success. We have developed range of customers and clients from individuals on their climate strategies including facilitation of expectations for transition planning and how to dedicated teams, capabilities and propositions and small businesses through our consumer initial public offerings for climate-focused growth take advantage of the opportunities from the to help scale the start-up businesses that are banking services, to mid-sized and larger companies, acquisitions of emerging climate transition. developing and growing the technologies that will businesses and institutions, including technology start-ups to diversify incumbent help the world reduce emissions - through our governments, through our corporate and clients’ business models and financing to Sustainable Impact Capital mandate but also investment banking services. We believe the mobilise decarbonisation of operational through Sustainable and Impact Banking, ESG transition to a low-carbon economy is a defining activities. Research and our network of accelerators. opportunity for innovation and growth and we are determined to play our part in the transition. In each of the business areas and product teams There is an opportunity for Barclays to play a we have been building expertise and knowledge significant role in helping to meet the demand for that will enable us to better support clients as climate-related financing to support the they chart their way through the journey to a low- transition. carbon economy. We believe it is an advantage that we serve clients across the spectrum from small to large, across different sectors, and in some cases supporting these clients as they grow.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 104 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 105 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 The transition to a low-carbon economy requires Entrepreneur and Climate FinTech financing to scale the start-up businesses that innovation programmes Tackling climate change is one of the defining issues of our lifetime. provide the technologies needed to reduce For the fintech sector, this creates opportunities for innovative, fast-growth companies that are emissions. Fintech is an important driver to the Barclays is finding new ways to collaborate with developing financial technology in supporting the transition to a low-carbon economy. commercialisation of climate-focused innovative start-ups, bringing new ideas to life technology for mass market adoption. and enabling sustainable growth, supporting Barclays Rise publishes FinTech Insights from Barclays Rise individuals, businesses, communities and the + across the world. Further details can be found at: rise.barclays/news/reports/ wider economy. Rise, Barclays' global fintech platform, seeks to create, explore and support new business Barclays' open financial technology (fintech) models and ideas in the latest fintech trends, innovation strategy is focused on sourcing ideas, including climate fintech. Since 2015, Rise has technology and talent outside the bank and focused on building a global community of the supporting its adoption and dissemination within best minds in fintech to disrupt, challenge and Barclays. Our wider programme of fintech confront the way things are done in our industry. initiatives includes, among other things, support for fintechs in-line with Barclays' Climate Barclays Rise Start-Up Academy Strategy and societal goals. The Start-Up Academy helps create future fintechs, supporting emerging founders to Strategic initiatives transition their idea into minimum viable Initiative Goal propositions. A special edition was launched in Rise Start-Up 750 founders supported 2022 to support the increased talent in the by the end of 2025 Academy market due to layoffs across the tech sector. The history of innovation has shown some of the Rise Growth 50 fintechs supported by the end of 2025 most successful new companies are built during Academy a market downturn. Female Innovators Deploy $30m capital into Barclays Rise Growth Academy female fintechs Lab Fund Barclays Female Innovators Lab Fund Further details on Barclays Female Innovators Lab can be The Growth Academy helps scale strategically + FinTech Venture 6 new ventures launched found at: home.barclays/who-we-are/innovation/female- The Female Innovators Lab Fund is a US, UK and relevant fintechs and transition their founders innovators-lab-/ by the end of 2027 Studio Europe-based studio and fund co-created by into CEOs with a 10 week, digital first curriculum Barclays and Anthemis, and backed by Aviva. The In 2023, aim to provide: with coaching, MD mentorship and access to a • 1500 mentorship hours iWarranty, supported by the Female Lab’s mission is to identify female founders at the Eagle Labs community. Participants may also be considered Innovators Lab Fund, is digitising end to idea stage of their journey and match them with • 18 Growth Programmes for a potential strategic investment. end warranties to reduce electrical waste the resources and mentorship required to develop Support 250 businesses Further details on Barclays Rise and its programmes can be Responding to new EU legislation and the a company and bring it to its first round of Unreasonable + solving social and found at: rise.barclays/ sustainability challenge to ensure appliances fundraising. environmental challenges Impact can be repaired for up to 10 years to reduce by the end of 2022 Anthemis’ record as early-stage fintech investors the mountain of electrical waste, iWarranty and venture builders, coupled with the resources Further details on Barclays Innovation can be found at: is digitising the end-to-end warranty market + home.barclays/who-we-are/innovation/ and global footprint of Barclays, makes this an as well as connecting consumers with local exceptional opportunity for prospective founders repair networks. to progress their business ideas. Participating start-ups will have access to Barclays’ fintech hub Rise, and Anthemis’ dedicated office spaces, with Further details on iWarranty can be found at: + iwarranty.co/ mentorship and networking opportunities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 106 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Barclays FinTech Venture Studio Barclays Eagle Labs Eagle Labs Demo Directory Eagle Labs Green Tech Barclays Fintech Venture Studio, powered by Barclays Eagle Labs look to help incubate, inspire Eagle Labs run a proposition which supports Eagle Labs is building a community of start-ups Rainmaking, is seeking to develop a portfolio of and educate UK founders, start-ups and scale- growth stage companies and investors across all working on disruptive technology and more new growth opportunities, transforming finance ups and help them to succeed and grow. industries. Investors can use the platform to established companies with deep domain for Barclays teams and clients across the bank identify sustainability-related businesses expertise, to accelerate the innovation needed Further details on Barclays Eagle Labs can be found at: + labs.uk.barclays through effective fintech partnerships and co- including those seeking to raise capital to help to create the new technology that will deliver a creation. the transition to a low-carbon economy. more sustainable future and achieve our net zero goals. EnergyTech Bridge has helped 10 large We identify strategic opportunities across the Further details on Eagle Labs Demo Directory can be found + at: labs.uk.barclays/demo-directory/ corporate energy industry customers as they breadth of the bank, and design and deliver pilots transition to a lower carbon economy by to ensure the success of our scaled partnerships. connecting them to promising UK start-ups and Etopia - Building for a lower Our approach leverages deep market knowledge, innovative leaders from the tech industry. carbon future extensive experience in delivering innovation Further details on climate-related topics with Energy and across complex environments, and a repeatable Etopia, a participant in the Unreasonable + technology can be found at: labs.uk.barclays/our-industries/ model enabling us to scale innovation at pace. energytech/ Impact programme, is creating a more sustainable, efficient, affordable, and resilient A dedicated Climate Fintech Innovation Strategy Eagle Labs Agri Tech approach to net zero carbon home building has been developed to identify and drive growth We connect traditional agriculture with new and through modern methods of construction. opportunities within this framework. emerging innovation to help create sustainable They are doing this by producing sustainable Unreasonable Impact efficiencies in farming and agriculture to close building systems that enable contractors, Through its Unreasonable Impact programme, supply chain gaps in food production. developers, and housing providers to deliver Barclays is supporting high-growth net zero ready carbon homes that are built to Further details on climate-related topics with Agriculture and + entrepreneurs with the network and resources technology can be found at: labs.uk.barclays/our-industries/ the UK's Future Homes and Buildings Standard. agritech/ in addition to insights available at: labs.uk.barclays/ they need to address pressing social and learning-and-insights/agritech/ Further details on Etopia and how Barclays has been environmental challenges. + supporting them on their journey to build more sustainable homes, can be found at: Barclays Eagle Labs also offers our Barclays Eagle This strategic global partnership with barclayscorporate.com/client-experience/client-stories/ Labs Female Founder Accelerator in partnership with Unreasonable Group has enabled Barclays to etopia/ Carbon13 Incubator via AccelerateHER to support 40 innovative female-led deliver on its Citizenship commitment to support Cambridge Eagle Labs technology businesses as well as the Barclays Black more than 250 entrepreneurs by the end of In October 2022, Barclays Eagle Labs and Founder Accelerator, a programme especially 2022, whose ventures have the potential to Carbon13 announced a new partnership designed to champion diversity in entrepreneurship create jobs of the future while solving key social which will support start-ups focused on and showcase Black Founder-led businesses. and environmental issues. sustainability and climate-tech innovation. Further details on Barclays Eagle Labs and Carbon13 With billions in financing already raised by its + Incubator can be found at: labs.uk.barclays/learning-and- Through the partnership Barclays is portfolio, the partnership’s momentum insights/news-and-insights/news/ committing up to £2.5m investment to continues to grow, and the ventures are driving deliver the Carbon13 Venture Launchpad innovations in a variety of industries, from energy programme from 2023. The programme will and environment to food and water. a provide founders with support and c.9,600 Further details on Unreasonable Impact can be found at: mentoring to tackle significant challenges + home.barclays/sustainability/supporting-our-communities/ businesses supported by Eagle Labs that UK start-ups face on the road to net unreasonable-impact/ throughout 2022 zero, and drive innovation in the green technology sector. It will also provide them Notes: with access to potential investors. a Covering all our members, alumni, programme attendees and ecosystem engaged businesses

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 107 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 By working collaboratively under a unified strategy Based on the enhanced EPC matching, as of the Green Mortgage completions Barclays UK Consumer across Barclays UK, we aim to further expand our end of Q3 2022, a valid EPC rating was available and Business Banking Number of completions sustainable products and propositions to meet for 65.1% of our mortgage book by volume customers’ needs and support them in seeking to compared to Q3 2021, where we had a valid EPC Sustainability is a key focus area for Barclays UK. We 7,080 11,686 reduce emissions. rating for 55.7% of our mortgage book. There are are actively engaging with our retail and business 2022 progress Total since 2018 industry-wide challenges regarding obtaining n n customers to better understand the steps they Consumer Bank greater coverage of EPC ratings as this data is want to take to become more sustainable, and the Barclays UK Consumer Sustainability Hub Value of completions (£m) sourced directly from the government EPC role that finance can play. We are using this insight- We launched a Sustainability Hub to engage register and is released on a quarterly basis. led approach to design and develop sustainable 1,601 2,656 consumers and provide them information on finance solutions that meet the needs of our Mortgages balance by EPC rating (£m) financial products and services we offer that may 2022 progress Total since 2018 n n customers. as of 30 September 2022 support them in making more sustainable We have started embedding environmental choices. This includes sharing Barclays’ approach In October 2022, Barclays launched the Greener 2022 total: 116,644 Home Reward pilot. to tackling climate change. Given the current considerations and climate risk into product and 782 energy crisis and consumer interest in reducing EPC rating G proposition standards, and we plan to further n Further details on Barclays Greener Home Reward can be home energy usage, we are engaging customers 4,275 EPC rating F + embed this into product governance through the n found at: barclays.co.uk/mortgages/greener-home-reward/ 19,088 on this topic by featuring information about EPC rating E New and Amended Product Approval (NAPA) n making homes more energy efficient. We are We have piloted training on energy efficiency of process. We have recruited specialists into EPC rating D n also providing information on moving towards homes with a small group of mortgage advisors sustainability-focused roles across Barclays UK and EPC rating C n 44,624 sustainable travel and we aim to focus on this and will roll this out further in 2023. we intend to roll out colleague training for the retail EPC rating B n area, particularly by helping to scale the adoption Further details on Barclays Green Home Mortgages can be bank. In 2022, we began issuing recycled cards for EPC rating A n + found at: barclays.co.uk/mortgages/green-home-mortgage/ of electric vehicles across the UK for consumers our retail credit and debit cards, as well as across our Further details on Barclays Buy-To-Let Mortgages can be through partnerships and propositions. We plan found at: barclays.co.uk/mortgages/green-buy-to-let- commercial card issuing portfolio. We have also to expand the content on the Sustainability Hub mortgage/ used new digital journeys in the app and online and integrate the content into the Barclays app. banking to support an additional 1.8 million Our UK mortgages by EPC rating Further details on the consumer-facing Sustainability Hub customers to become paperless and reduce their + can be found at: barclays.co.uk/sustainability/ Barclays UK regularly monitors the Energy paper waste. We are also switching to a different Performance Certificate (EPC) rating of its paper type sourced from an integrated paper mill Green home propositions 26,639 mortgage portfolio, to support our management which has a lower environmental impact as it uses In 2018, Barclays led the market as one of the of climate risk and our understanding of the less energy. We have launched our first electric first UK lenders to launch a Green Mortgage. impact of our financing on the environment. In mobile banking van to provide a lower emitting way Since inception, Barclays has lent over £2.6bn to 20,878 line with our commitment to the improvement in 358 of serving our customers and communities. Green Home mortgage customers with £1.6bn energy efficiency of our mortgages portfolio, Complementary to this, our electric mobile banking of financing delivered in 2022. In 2022, Barclays Barclays UK has set an ambition for 50% of colleagues have been trained with a government expanded Green Home mortgages to include EPC A & B Mortgages homes in its mortgage portfolio with a known approved Alternative Fuelled Vehicle (AFV) driving buy-to-let properties, supporting more EPC to be rated EPC band C or better by 2030. certification. Additional electric mobile banking vans customers to purchase an energy efficient new- As at the end of Q3 2022, 42.3% were rated EPC will be introduced next year, in line with our intention build home. 18% C or better (out of homes with a valid EPC, or to fully electrify our mobile banking vans by 2025. As 27.5% including homes without an EPC). of mortgage balances rated Further details on our progress to estimate emissions part of our physical network, we are developing intensity for our UK mortgage portfolio can be found on + A or B against available EPCs pages 92 to 94. In 2022, Barclays UK onboarded a third party to ‘Print’ and ‘Energy’ dashboards for our branch (2021: 17%) provide enhanced EPC matching in addition to a colleagues to provide information about usage and broad suite of climate data for assessing physical insights to encourage them to reduce the carbon and transition risks in the Barclays UK Mortgages footprint. portfolio (owner-occupied and buy to let).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 108 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Recognising that our business customers have Recognising that Agriculture is a high emitting External engagement Business Bank experienced unprecedented challenges over the sector, we have announced a three-year agri- Barclays worked with the Cambridge Institute of Barclays' Business Bank has a dedicated last two years, and to support them on their climate partnership with Oxford University on a Sustainability Leadership (CISL)’s Banking strategy to: journey from recovery to growth, in 2022 we project that will establish sector decarbonisation Environment Initiative (BEI) and BSR on a series • prepare colleagues by upskilling them on launched Barclays Business Health Pledge. pathways and methodologies for measuring of innovation sprints to better address the sustainability and client needs Sustainability has been a key theme covered farm-level greenhouse gas emissions. The barriers SMEs face to reach net zero. The sprints • support clients to understand the case for under this pledge and two masterclasses have partnership is aimed at supporting the sector’s produced a number of potential solutions to sustainability and know how to take action been filmed with a sustainability expert, alongside transition to more sustainable practices and will drive change and support SME net zero action. hosting over 50 local Business Health Pledge inform financial decision-making. • develop products to finance the transition Further details on the 'Financial innovation for SME net zero events, supporting over 1,300 attendees. We + transition: Role of banks and buyers' report can be found at: The outcomes will be shared publicly and we aim • embed sustainability into the business cisl.cam.ac.uk/resources/publications/financial-innovation- have also held a ‘High Growth Live’ panel event to use these to set emissions reduction targets sme-net-zero-transition-role-banks-and-buyers on sustainable funding with over 300 attendees. Colleague engagement for the agriculture sector, in support of the Electric Vehicle proposition We have provided training to our Business bank’s net zero ambition. Further details on our Health Pledge can be found at: + labs.uk.barclays/business-health-hub/barclays-business- Banking Relationship Managers and Specialist In July 2022, we created an initial £20m fund and health-hub/introducing-the-barclays-business-health-pledge/ Further details on our partnership with Oxford University Client Solutions Team, this is a key limb of the launched a proposition with Propel Finance, our + can be found at: home.barclays/news/press- releases/2022/10/barclays-and-oxford-university- Business Bank's strategy. Asset Finance provider, to offer competitively To recognise the positive impact of ESG- announce-3-year-agri-climate-part/ priced fixed rate asset finance, supporting focused entrepreneurs on the wider economy, Further details on colleague training can be found + on page 118. business clients who are looking to purchase new we have created a new ‘Sustainability Award’ We have also created a Dairy & Livestock Forum electric vehicles. category for the Barclays Entrepreneur Awards to consider carbon emissions as part of our We have expanded our Specialist offering, with this year which saw a total of 112 entries across lending decisions to livestock farms. The aim is to Further details on our Business Banking sustainability an initiative to introduce net zero as a new area of + journey can be found at: barclays.co.uk/business-banking/ the whole breadth of the UK. drive awareness of clients' emissions and help expertise within our Specialist Client Solutions sustainability-for-business/ both colleagues and clients understand and The Business Bank’s Sustainability Hub launched Team. Colleagues can now refer clients in to the share best practice and practical actions that can this year to support customers as they get team to discuss how the transition to a low- be taken to reduce them. Topics on our ‘Let’s started on their sustainability journey, to carbon economy can impact their business. This Talk Business’ client podcast this year have also understand how they might be impacted and is intended to extend across all regions in 2023. covered sustainability. signposting them to support and financing options. It has content and resources on EVs and other green assets, as well as customer case studies to help customers explore options that may be right for them. Further details on our Business Banking Sustainability Hub + can be found at: barclays.co.uk/business-banking/ sustainability-for-business/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 109 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 We expect that industry groups will begin to The team focuses on underwriting and Sustainable Capital Markets Corporate and dedicate more resources to the coverage of structuring green, social, sustainable, transition The Sustainable Capital Markets team is a key Investment Bank sustainable technologies and related companies. and sustainability-linked capital markets part of Barclays’ dedicated ESG specialist CIB As this happens, we plan to evaluate how sectors financing solutions. teams and sits within the broader Barclays Global How we serve clients and companies are best covered by the bank and Capital Markets function. This global team offers We continue to evolve our model to support our adapt our model accordingly to provide the a broad range of ESG capital markets product clients and capture the opportunities as they support and resources required by our clients. types and delivers across multiple client transition to a low-carbon business model. In We will also use incentives to drive the segments to help clients finance their 2022 we expanded our leadership in the commercial success of our strategy by setting sustainability and transition journeys, as well as Corporate and Investment Bank (CIB) and appropriate key performance indicators and formalise their sustainability commitments. established the role of Global Head of tracking progress against them. Sustainable Finance to create a centre of excellence for sustainable finance in the CIB. At Barclays we already use the concept of the Supporting the UK Government in Power of One Barclays, which brings our their Green Finance ambitions organisation closer together to create synergies The UK Chancellor announced at the and provide customers and clients with the full Budget in early 2021 that the UK range of our products and services. Government’s ambition to issue a minimum We are extending this mindset to consider how of £15bn of green gilts during the financial we can best serve our clients’ needs relating to year 2021/22. In June 2021, HM Treasury ESG and the climate transition through an released the UK Government Green integrated approach across Barclays’ products Financing Framework ahead of an inaugural and services. Examples of this include our ESG green gilt issuance in September 2021 of advisory, industry coverage and Sustainable and £10bn, with a second issuance of £6.1bn in Impact Banking teams collaborating on M&A October 2021. opportunities; or our industry teams bringing In addition to participating in the UK’s first technical experts into client meetings to discuss green gilt issuance, Barclays also acted as decarbonisation options. We believe this Duration Manager on the £4.5bn tap of the approach incentivises proactive partnerships and UK’s second Green Gilt in September 2022. drives better outcomes for our clients. Despite a highly volatile market at that point in time, the transaction was well received by How our model will evolve investors; a testament to the markets’ Over time, we expect an evolution in our support for the UK Debt Management coverage model so that sustainability becomes Office and the commitment of the increasingly embedded in our sector and industry Syndicate for the transaction. coverage teams. We intend to expand the knowledge of our bankers and ensure subject matter experts partner with the relevant teams to develop content and expertise.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 110 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Sustainable and Impact Banking The family-owned business, based in north east This repositioned the offering from a story of Advancing decarbonisation The Sustainable and Impact Banking team is a France has 30 years’ experience in providing a green hydrogen solutions provider, to one with Haffner Energy dedicated sector coverage team focused on engineering, procurement, construction and of a decarbonisation solutions provider in the Barclays supported decarbonisation and green advising and raising capital for emerging climate construction management solutions for global global transition to a low-carbon economy. hydrogen leader Haffner Energy IPO, raising technology companies across four key verticals: biomass-to-energy projects. This combination of innovative technology €74.4 million in one of Europe’s first IPOs in 2022. clean energy, sustainable materials and recycling, In 2021, Haffner Energy sought guidance to alongside the strength of the management food and agriculture tech and carbon help shape and manage the company’s team provided an attractive proposition for management. IPO ambitions. investors, despite the strong volatility and The team also provides financial advisory €74.4m market backdrop of early 2022. Barclays’ Equity Capital Markets team partnered services to existing banking clients on energy raised by Barclays supporting closely with its Sustainability and Impact Further details on Haffner Energy can be found online at: transition matters via our ESG advisory team. + decarbonisation and green hydrogen cib.barclays/investment-banking/advancing- Investment Banking colleagues and Haffner Regular interaction with funds with ESG decarbonisation-with-haffner-energys-ipo.html leader Haffner Energy IPO Energy executives to align the company’s mandates and other stakeholders inform our equity story to its unique modular carbon client dialogue. sequestration and hydrogen technology, HYNOCA®, which converts sustainable biomass into carbon-negative green hydrogen.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 111 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 ESG across our research teams Sustainable and Thematic Investing Supporting Motability Operations Barclays Research has continued to invest in its The Sustainable and Thematic Investing with its financing needs ESG research capabilities and thought leadership Research team at Barclays focuses on this year. We hired a Head of Asia ESG Research Barclays has a longstanding and established sustainability and long-term thematic disruption. and further strengthened our ESG teams in relationship with Motability Operations Group Their reports are produced in conjunction with Europe and the US. PLC, a purpose-driven company and the UK’s sector analysts with the aim of identifying multi- largest vehicle lessor who provide the Our approach to ESG Research is differentiated year sector trends that could help shape the Motability Scheme to over 650,000 disabled through broad-based engagement with ESG future business environment. Typically, the team people. issues and higher quality insights with our identify topics with a 5 to 10 year time horizon, investor clients. with the investment opportunities spanning both Having launched its Social Bond framework in public and private companies. 2020, which Barclays supported as a joint ESG The ESG Research team works closely with structuring advisor and in 2022, Motability coverage teams to identify and analyse material To aid thematic and ESG investors, the team Operations continued to align its financing ESG opportunities and risks and to integrate ESG maintain an investment framework known as the requirements to its sustainability strategy. into their analysis and recommendations. The ‘2030 Thematic Roadmap: 150 Trends’ and have Motability Operations worked with Barclays, team also analyses how investors measure and published reports on various trends relating to leveraging our ESG expertise, to develop and consider ESG factors in the investment process disruptive technology, sustainability and structure bespoke KPIs and targets to account to help asset managers structure their portfolios demographic change. The team have also for its evolving sustainability strategy, priorities and investment decisions. There have been over developed a range of investment tools including and needs of its customer base. 400 ESG-focused research reports published in trend momentum scores, UN SDG mapping and 2022 and over 800 bottom-up, company- company revenue tagging. In October 2022, Barclays, acting as both Joint specific ESG profiles published to date. Mandated Lead Arranger and Sustainability and Relevant 2022 publications include Biodiversity, Documentation Coordinator, helped Motability Food Security, Sustainable Aviation Fuel, Food Our expectation is that topics such as climate Waste, Virtual Try-On, Electronic Waste and Operations secure £1.9bn of sustainability- change and decarbonisation, as well as other Social Inclusion. linked term and revolving credit facilities. sustainability themes and specific ESG attributes will continue to grow in importance, and that the Further details on the Sustainable and Thematic + Investing Research team can be found at: cib.barclays/ global momentum behind ESG investing will our-insights continue at pace, making it an essential requisite for a large and growing number of investors. Sustainable Product Group During 2022, ESG Research hosted over 25 ESG- The Sustainable Product Group focuses on related client events, including the third annual increasing sustainability-related dialogue with Barclays ESG Research conference and Barclays our clients and delivers a broad range of green ESG Emerging Market Corporate Day. and sustainability-linked banking products. Further details on ESG Research can be found at: The Sustainable Product Group’s offering + cib.barclays/research includes project finance; green and sustainability-linked trade; corporate lending and fund financing products. Clients benefit not only from sustainability-related products but also from the greater connectivity with Corporate and Investment Banking teams as well as the wider Group.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 112 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 From the acceleration of innovative carbon Treasury green efficient technologies and supply chains to programmes supporting the development of viable markets for carbon capture and sequestration, the Barclays Treasury plays a key role in helping programme is seeking out and supporting clear, Barclays to meet its climate goals by allocating, scalable propositions that deliver both managing and governing its financial resources environmental benefits and economic returns. effectively, and executing sustainable principal We aim to fill growth stage funding gaps to help investments and transactions, partnering with accelerate and scale catalytic and strategic businesses to advance strategic climate solutions to environmental challenges. objectives in the transition towards a low-carbon economy. We have made meaningful progress towards building a portfolio of strategic investments Sustainable Impact Capital which have a focus on reducing carbon footprints Our Sustainable Impact Capital portfolio, led by and accelerating the transition towards a low- the Barclays Principal Investments team in carbon economy. £89m of the £175m overall Treasury, has a mandate to invest £500m into target has been deployed since 2020, with £35m global climate tech start-ups through our invested in 2022, up 16% from 2021. Sustainable Impact Capital portfolio by the end of We expect the next phase of investments will see an 2027, helping to support our clients’ transition enhanced focus on decarbonisation technologies towards a low-carbon economy. that are enabling transition within carbon intensive sectors, particularly where Barclays has meaningful client exposure such as energy and power, real estate and transport. A particular focus will be on carbon capture and hydrogen technologies. Further examples of our entrepreneur and innovation + programmes can be found on pages 105 and 106. MOF Technologies In May 2022, MOF Technologies announced that it would start work on an infield pilot An example of how Barclays is supporting involving three of the world’s major cement technology that will drive the transition to a Achieved to date companies – Heidelberg Materials, Cementir low-carbon economy is the investment in MOF Holding and Buzzi Unicem - as part of the Technologies. A spin-out from Queen’s Global Cement and Concrete Association’s University Belfast, MOF Tech has developed an Innovandi ‘Open Challenge’ to achieve net zero £89m energy efficient carbon capture system, concrete by 2050. With the cement industry Nuada, to reduce harmful emissions from Sustainable Impact Capital accounting for 7-8% of global carbon cement works, steel works, or energy-from- £m emissions, the impact opportunity for MOF waste plants. Tech’s pioneering technology is substantial They have expertise in a class of nanomaterials 24 30 35 500 and Barclays looks forward to supporting them known as Metal-Organic Frameworks (MOFs). as they scale. 2020 2021 2022 Target by 2027 n n n n MOFs are solid, sponge-like materials tailor- made to capture and separate gases like CO . 2 Further examples of our green innovation financing can be + found at: home.barclays/sustainability/our-position-on- climate-change/accelerating-the-transition/sustainable- Further details can be found at: home.barclays/news/press- impact-capital/ + releases/2022/10/barclays-invest-in-mof-technologies-/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 113 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Naked Energy 2050 – putting solar thermal energy at the heart of working to meet the goals and Barclays is actively supporting the energy timelines of the Paris Agreement. Naked transition through Sustainable Impact Capital Energy’s Virtu product range addresses end- investment in the British design and customers with a constant heat demand, such engineering business Naked Energy. It as hospitals, multi-dwelling residential specialises in global innovation in solar thermal developments, hotels, leisure centres and and solar PVT (PV-Thermal) with a mission to manufacturing, e.g. food and beverage ‘change energy for good’ by heat industries. Virtu allows businesses to maximise decarbonisation. Heat is responsible for 51% of the potential of their roof space by generating all energy demand and accountable for 40% of 2 more energy per m than other solar carbon emissions globally. 90% of all heat technologies. VirtuHOT (solar thermal) and consumption still comes from fossil fuels. The VirtuPVT (combined solar heat and power) key to decarbonising heat is through large- 2 produce 50-100% more energy per m , deliver scale deployment of distributed renewable three to four times more carbon savings (when heating solutions, such as solar thermal. Solar compared with PV) and up to 50% greater thermal heating systems provide a reliable, and returns. It is a versatile solution to delivering on more resilient energy infrastructure by offering a company’s ESG targets. zero carbon heat affordably and space ECOncrete efficiently. Additionally, modern thermal Decarbonisation impact Barclays’ Sustainable Impact Capital investment Compared with traditional concrete, storage technology allows end-customers to Since becoming commercially active in 2018 in ECOncrete Tech, a pioneering start-up ECOncrete’s technology has shown the benefit from affordable clean heat throughout Naked Energy has sold more than 5,000 Virtu delivering high-performance ecological ability to double the biodiversity and the year. The International Energy Agency collectors, to over 60 projects in 13 countries. concrete technologies, demonstrates our abundance of marine species, provide an estimates solar thermal and geothermal In total Virtu has abated over 274 tonnes of support for innovative environmental solutions. active carbon sink over the lifespan of the production will meet 75% of all heat demand by carbon emissions. The technology seeks to enhance marine life on structure, and significantly improve water offshore and coastal infrastructure, which can quality. This is due to their patented Further details can be found at: nakedenergy.com/ or + home.barclays/news/ for press release updates be used for shoreline protection, waterfront admixture and unique design which has been a infrastructure and offshore applications. The peer reviewed and evaluated by marine technology creates new biologically available scientists. surfaces for marine life such as oysters, corals or ECOncrete’s activities are helping to solve a barnacles, while preserving and strengthening key environmental challenge for the coastal the infrastructure’s functional and structural and marine industries, improving the health properties. Species like oysters, for example, and resilience of surrounding ocean life. become a critical ecological stepping stone for Barclays’ support in ECOncrete’s growth additional organisms to live on and around a ambitions through Sustainable Impact Capital structure and also act as biological glue, equity investment will help enable ECOncrete enhancing the strength and durability of to expand rapidly into new markets and scale structures. operations into large-scale projects. Note a icevirtuallibrary.com/doi/abs/10.1680/fsts.59757.124

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 114 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 Strategic ESG transactions Green bond investment portfolio Green bond investment portfolio Green notes programme (Notional) £m impact by sector (%) Treasury partners with businesses to originate, In 2022, we remained engaged in the ESG market structure and execute strategic ESG as an investor. After above average growth in 39 transactions in order to support the climate ESG issuance volumes in 2021, the pace slowed Green structured notes 88 n objectives of the bank and our clients. Together, in 2022, with labelled bond issuance down by ECP 135 45 n we partner with key development stakeholders approximately 30%. The market however including the UK Infrastructure Bank, British continued to broaden, with several new issuers 10 Business Bank and Export Credit Agencies to coming to the market. Barclays’ Treasury was 3 design solutions which help unlock financing for involved in a number of these inaugural events, emergent green technologies and social including debut issuance from the Canadian and 3 projects, leveraging on our unique principal risk Austrian governments. Renewable energy 39 Water and waste 3 transfer, structuring and investment capabilities n n We aim to reach our £4bn target portfolio size Markets and Treasury structure and manage the Transport 45 Agriculture 3 to support these clients and projects to scale up. n n in the near term, as the green and sustainable programme including the governance and note Other 10 n bond markets continue to broaden and with Green notes programme frameworks which underpin issuance. issuance volume predicted to return to 2021 The Barclays Bank PLC green notes programme Green Structured Notes, in particular, give our levels this year. covers a wide range of Barclays issued products investors an opportunity to invest alongside us in Green bond investment portfolio including structured and index-linked notes, green assets that help fund the transition to a Green bond investment portfolio impact by region (%) asset-backed notes and commercial paper which low-carbon economy. It also helps Barclays size by year £bn are used to finance and / or refinance green provide financing for these projects more assets originated by our corporate and 86 economically and thereby benefit borrowers. 2022 2.8 investment banking teams and helping to finance Further details on our green notes programme can be found 3 2021 3.4 + these projects more economically. at: home.barclays/greenbonds/ 2020 3 3.1 Against an ambition to get to a portfolio size of 4 £4bn over time 4 Europe 86 Africa 4 n n Asia 3 North America 4 n n South America 3 n

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 115 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 As a long-term investor, we believe material ESG Sustainable Investing Solutions To further support clients in making their homes Private issues can impact portfolio returns and are more energy efficient, we have a plan of Launched in 2018, our Sustainable Investment Bank relevant considerations in managing risk education and guidance for clients and we intend strategies seek to invest in businesses that effectively and delivering successful investing to launch our Private Bank ‘Sustainability Hub’, provide products and services to support the Responsible Investing outcomes for our clients. Understanding how which will provide clients with information on transition to a more sustainable economy. In our Private Bank, Responsible Investing means businesses are, for example, impacting the financial products and services we offer that may These strategies exclude certain companies that integrating material ESG considerations (among environment, engaging with employees and key support them to refurbish their home in ways generate revenues over our internally defined others) into our investment decisions and stakeholders and practising good governance that may improve their home's energy efficiency. thresholds from adult entertainment, alcohol, fulfilling our stewardship responsibilities through helps us understand how well these businesses armaments, gambling, fossil fuels tobacco and This information is available to all clients and engagement and voting. We regard Responsible are positioned now and for the future. controversial weapons. throughout 2023 we will produce an Insights Investing as an integral element in meeting our Engagement and voting . series to provide further education specific to We also identify businesses that we believe are fiduciary duties towards our clients. the types of properties in our portfolio. We are We undertake engagement and voting in able to mitigate ESG risks from an investment Our Discretionary Portfolio Management (DPM) building relationships with partners in the wider partnership with our stewardship services perspective and also demonstrate high services are offered across the Private Bankand b real estate domain, such as freeholders, brokers, provider, EOS at Federated Hermes (EOS) . standards of non-financial ESG quality (e.g. high sit at the core of the Private Bank's long-term and estate agents, to ensure a joint approach to We view engagement and voting as an important quality environmental standards or safe working strategy. Our DPM Traditional strategies include reducing carbon emissions on properties. mechanism through which to hold management environment). These businesses must also the Global Multi-Asset Class Strategy, Equity to account and act as a lever to promote change address sustainability considerations through strategies and Fixed Income strategies. Our DPM in investee companies on material ESG issues their economic activities, by aligning to at least Notes: Sustainable strategies are the Multi-Asset Class a The exception is India where we offer strategies developed for the where appropriate. We believe companies that one of the United Nations' Sustainable Sustainable Total Return Strategy and the local market. ESG integration and engagement and voting are not can better manage material ESG issues could be Development Goals (UN SDGs). undertaken. Sustainable Global Equity Strategy. b Engagement (on select material ESG issues) and voting activities are less prone to severe incidents, such as fraud, Responsible Lending being exercised in relation to all of our Private Bank DPM investment While we incorporate the same approach in each litigation or reputational risks. strategies globally with the exception of services provided in India. We are expanding our credit offering with Green of our discretionary strategies and in all Engagement activity is undertaken for our fixed income and equity a In 2022, across our UK and Jersey DPM Private Bank Mortgages, launching in 2023. We holdings, while voting activity is only undertaken for our equity jurisdictions in which we operate, we may have holdings. Please note, engagement and voting activities have been services, we voted at 125 shareholder intend to offer a discounted arrangement fee for portfolios with specific requirements where we undertaken for portfolios managed in Ireland, Switzerland and Monaco meetings, supporting management on 88% of UK-based new-build properties with an EPC since Q4 2022 and relevant reports for these regions are expected to need to vary our approach to our core strategies. be publicly available commencing Q1 2023. It is our intention to the resolutions we voted on. This, alongside rating of A-B to incentivise clients to seek out exercise voting in all markets, although at times our ability to do so For our Traditional strategies, we maintain a our engagement practices, reflects our energy efficient properties and to encourage may be hindered by regulatory and practical considerations as well as standard set of exclusions that do not allow us to internal restrictions. approach of promoting constructive dialogue home builders to achieve maximum energy invest in businesses we view as being involved in with our investee companies by building long- efficiency from their projects. Clients will also be the manufacture of controversial weapons and term relationships to seek to influence ESG supported in improving the energy efficiency of we consider material ESG risks as part of the and other practices. their existing properties, primarily through standard investment process. For our retrofitting their homes. Our engagement and voting activities are publicly Sustainable strategies, more detail can be found available to all stakeholders on the Barclays We are enhancing our lending policy in order to in the Sustainable Investing Solutions section Private Bank website. We believe that such support clients who wish to make their homes below. transparency is an integral part of good more energy efficient and will work with All our DPM strategies seek to deliver governance. industry experts to understand how best to competitive investment returns for our clients do this with the properties in our portfolio. Further details on our responsible investing can be found at: and create long-term value for stakeholders. We + privatebank.barclays.com/what-we-offer/investments/ For example, listed buildings are subject to strict believe that Responsible Investing helps us responsible-investing-engagement-and-voting-activities planning regulations and therefore require a achieve this. bespoke approach.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 116 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 EOS, as our voting and engagement provider, Wealth Management regularly provides voting recommendations to us and Investments on our company holdings. We operate a filtering process on these recommendations ensuring Barclays Wealth and Investments factors that we review, and amend if necessary, any Responsible Investing into our discretionary particularly noteworthy votes. They also engage portfolio and fund investment solutions. The vast on behalf of clients and Barclays with a wide majority of our clients’ assets are managed by range of stakeholders including government external fund managers. We aim to assess each authorities, trade bodies, unions, investors, and of those active investment managers based on NGOs, to seek to identify and respond to their ESG credentials amongst other relevant market-wide and systemic risks. In addition, EOS factors. Every manager’s offering is given a single provides a range of formal qualitative and standalone score from A to C for ESG quantitative reporting for Barclays on a regular considerations – reflecting both their intent and basis outlining how they have implemented our their outcome. We focus on how ESG is engagement policy. embedded across each of five key areas: the Our engagement and voting activities are publicly Parent company; the People managing the available to all stakeholders on the Barclays assets; the investment Philosophy employed; the Wealth & Investments website. We believe that robustness of the Process; as well as the such transparency is an integral part of good Performance achieved (‘The 5 Ps’). Ultimately, we governance. award an ESG score for every fund that we recommend or invest in. The team uses data Under the EU Sustainable Finance Disclosure from different sources including investment Regulation (SFDR), we have converted most of managers and MSCI ESG Manager, and as such our Irish-domiciled fund range to satisfy the there may be some limitations. criteria of Article 8. This was introduced to improve transparency in the market for We are involved in a number of industry sustainable investment products, to prevent initiatives. Examples include the United Nations greenwashing and to increase transparency Principles of Responsible Investments (UNPRI) to around sustainability claims made by financial which we have been a signatory since 1 April market participants. It is primarily predicated 2016 and which rated us 4* for our Manager upon adding several exclusionary screens and Research (note that this latest rating covers the seeking to mitigate climate change. period before we started to formally vote and engage with our underlying holdings). Additionally, we have a Multi-Impact Fund that incorporates not just responsible investment principles but investments targeting specific sustainability and societal outcomes. We are also working towards becoming a signatory of the Stewardship Code in 2023.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 117 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) We have also worked on embedding ESG All key businesses and functions are involved and Over the past year we have grown our existing Embedding ESG into our business considerations into the culture of the delivery is managed through a central talent with several strategic hires, including organisation through training and knowledge programme, supported by extensive change Heads of Sustainable Finance for CIB and BUK. We are embedding Sustainability and ESG building. To embed ESG in culture, we cannot management expertise. We are further Each hire will allow us to further support our throughout the Barclays business, taking only train colleagues whose role includes ESG developing processes and levers that have climate strategy; increase co-ordination and into account the impact of climate-related aspects, but all colleagues across the bank so in already started to impact the business we accountability and aid engagement with risks and opportunities on our businesses, 2022, we have implemented a number of training engage in. colleagues across our businesses as part of our strategy and financial planning. initiatives and developed resources available to financial planning process; and help our For example: all colleagues. customers and clients with their individual • we strive to continue to decarbonise our own Our climate strategy is underpinned by the way transitions to a low-carbon economy. Impact of climate-related risks operations, reducing our Scope 1 and Scope we assess and manage our exposure to climate- The 2022 financial planning process used a five and opportunities on our business, 2 and our upstream and selective downstream related risk. year baseline scenario that assumed climate Scope 3 emissions strategy and financial planning The risks associated with climate change are factors were already included in the wider • we are tracking progress towards portfolio subject to rapidly increasing societal, regulatory Barclays’ 2022 financial planning process macroeconomic variables, and therefore no alignment (i.e. of our financed emissions) with and policy focus, both in the UK and included a review of our strategy and its further climate-related adjustments were the goals and timelines of the Paris Agreement internationally. We are embedding climate risk implementation, as well as an initial view of necessary. We assessed the financial impact of through BlueTrack™, which includes a number into Barclays' risk framework taking into account climate-related risks and opportunities, which embedding the individual parts of our climate of portfolio alignment metrics. The metrics are regulatory expectations and requirements, and aligns with how we manage other risks. The strategy, new initiatives and targets across our subject to regular management review adapting Barclays' operations and business implementation of our strategy is not only businesses, including the wholesale credit book, including second line review by the Climate strategy to address the financial risks resulting impacting our products and services, but also our sustainable financing and sustainable lending in Risk team to assess the strategy against the from both the physical risk of climate change and operations. We continue to develop new the Corporate and Investment Bank and initiatives targets the transition to a low-carbon economy. processes and capabilities and are embedding across our retail businesses, such as green them into our operations to address increasing • we continue to develop our green, sustainable In January 2022, climate risk became one of the mortgages and sustainable investing. complexity, including building technology and transition finance banking product sets, Principal Risks in our Enterprise Risk A strategic review of sustainable financing was solutions where required to support oversight, including for retail customers, such as green Management Framework. We also identify and also completed during the year. The review management and reporting processes. mortgages, bonds, loans and investment funds consider the impact of climate risk on other identified commercial opportunities and noted Principal Risks facing the bank. Within Barclays' group change programme for • we continue to explore climate scenario certain risks which could arise. The majority of climate, there is a workstream specifically related analysis and stress testing as a tool to assess Further details on climate risk identification, assessment opportunities continue to reside within Equity + and management can navigated via the Risk Review to finance and regulations. Within this, we have and quantify the potential impacts on our Capital Markets, Debt Capital Markets and lending. contents section on page 264. strategic deliverables (along with a set of actions business from climate change The output of the strategic review was considered we track) to seek to embed our climate strategy In 2022, we included our climate strategy and in the planning process, including incremental • we conduct portfolio reviews to monitor that into the financial planning process, and prioritise climate-related risks and opportunities in our revenue, cost and capital. Additionally, the business activities conducted are within it as appropriate in line with our overall strategy. financial planning. We continue to work to embed planning process included an assessment of our Barclays’ mandate (i.e. aligned with Barclays' latest financial plan, developed during these considerations into our products and financed emissions reduction targets for some of expectations), and are of an appropriate scale 2022, leverages the three pillars of our climate services and operations. our highest emitting sectors: Energy, Power, (relative to the risk and reward of the underlying strategy to estimate the future impact of climate Cement and Steel. Barclays has set absolute activities). Mandate & Scale Exposure Controls on our financial performance. The financial plan emissions or emissions intensity targets for these form part of our overall risk appetite control also includes a section dedicated to climate. sectors. Barclays continues to engage with our framework and climate risks have been Further details on how this was included in our clients to support the transition to a low-carbon integrated into annual credit portfolio reviews five-year financial planning process are set out economy and our current targets do not for elevated risk sectors since 2020. below, including our approach to sustainable materially impact financial performance over the financing, targets and capital investments. next five years.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 118 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) The financial planning process also covered a During 2022, mandatory online training modules A series of three educational videos to explain Incentives review of our own net zero operations target, were provided to over 14,600 colleagues across how Barclays is addressing climate change were For Executive Directors, a proportion of both which supported decisions around how we Risk, Compliance, Internal Audit and other widely publicised to colleagues via a dedicated bonus and Long Term Incentive Plan (LTIP) is redirect real estate and technology capital functions covering climate as a Principal Risk. A internal communications campaign, each video driven by non-financial performance measures, investment across our businesses, including the separate mandatory online module was explaining one of Barclays' three climate strategy including measures related to climate and branch network in BUK, to deliver our stated implemented across the Corporate and pillars. Since the creation of the initial series, we sustainability and colleague measures, including targets. Investment Bank, Trade and Working Capital as have published two further videos providing diversity, inclusion and engagement. well as other client-facing teams, which covered colleagues with updates to our progress against We will continue to enhance how our climate Further details on Barclays' remuneration can be found from climate change, how the firm manages Climate two of the pillars: achieving net zero operations + page 197. strategy is embedded into the way we think risk, as well as the Group's sustainability-related and financing the transition. about financial planning over the coming years. statements and policy positions and how they Barclays’ performance against non-financial Across the Corporate and Investment Bank, should be applied. Skills, culture and training measures (including ESG metrics) is also explicitly colleagues attended a series of talks titled considered in the determination of the incentive Building our expertise ‘Confident ESG Conversations’ featuring internal Further details on Barclays' sustainability statements and pool and therefore directly impacts pay levels of + policy positions can be found from page 60. experts who delivered insights and briefings on We continue to invest in our resource and employees as a whole. In 2022, non-financial Barclays' climate strategy, with a focus on action capabilities to ensure colleagues across the In addition, for the benefit of a broader internal performance was assessed against three needed to both deliver for Barclays and to organisation have the appropriate skills, audience, a centralised resource on the internal categories: Customers and clients, Colleagues support our clients’ own climate objectives. competencies and knowledge to execute our employee training website was created called and Climate and sustainability. The Colleague A 'Sustainability Academy' was launched on 12 climate strategy and transition plan. 'Sustainability' with the focus on 'Addressing category included measures of diversity, December 2022; the programme enables c.300 climate change' where selected existing and new inclusion and engagement. The Climate and During 2022, we had two main objectives. Firstly Corporate Bank employees to trial two separate ESG-related training material was placed. This sustainability category included climate-related to ensure our people had a good understanding 16-week ESG training initiatives co-delivered by included e-learning modules and videos on a measures including performance against green of climate change risks and opportunities, as well Barclays and two external ESG training providers. range of topics including but not limited to financing targets, emissions financing reduction as their responsibilities under the bank's evolving The training will serve as a pilot, with a view of climate change and its impacts, Barclays' climate targets, carbon footprint reduction and increase approach and policies - training was developed to TM further expansion within Barclays following change strategy, BlueTrack , and climate in renewable energy usage, as well as measures address this and was targeted at impacted completion. The Sustainability Academy seeks to change and the financial sector. This provides relating to our investment in communities. colleagues. Secondly we wanted to embed a deepen ESG knowledge and capability within our colleagues the opportunity to enhance their more general understanding among a broader front office teams so that we can best help understanding of the topic. internal audience of climate change, its impacts clients transition to net zero whilst also driving on society and the bank's strategy and response. growth and Client Satisfaction scores. In the Business Bank, a core training module was delivered to over 1,200 colleagues which covered climate-related concepts, risks, opportunities and legislation. There were also targeted training modules to meet the needs of bankers who cover customers in the agriculture sector and in the specialist client solutions team.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 119 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) Barclays recognises the need for financial We are playing our part to translate the concept Our approach to nature Just transition and nature institutions to integrate social considerations of a just transition into tangible actions for the and biodiversity and biodiversity into their net zero plans and targets, and in their industry, by continuing our engagement with Banks have an important role to play in stewarding contributions to nature-positive goals. Financing a Just Transition Alliance (FJTA) and nature-positive finance and managing their We have continued to develop our work on other key initiatives: Just transition nature-related risks. just transition and nature and biodiversity, • as part of our engagement with the FJTA, we International policy frameworks provide broad which are intrinsically connected to efforts Nature and biodiversity is a growing ESG focus for actively participated in the development of the support to address just transition within climate to mitigate and adapt to climate change. Barclays and the wider industry, given that nature 'Making Transition Plans Just' report that strategies. The Just Transition Declaration, and its ecosystem services fundamentally begins to provide non-binding guidance to adopted at COP26, committed governments to underpin economies and societies. Nature and We aim to enhance our understanding of the financial institutions on how they can integrate ensure that workers, businesses and biodiversity are also important to the sector due interdependencies between climate action, the social dimension of climate action in their communities are supported as countries to their interlinkages with climate change. During nature and biodiversity and the social aspects of net zero transition plans transition. 2022, nature and biodiversity loss continued to be the transition to net zero. This is in line with the • Barclays is also a member of the CISL Banking recognised at a global scale. The Convention on increasing support of international policy At COP27, Barclays participated in a panel Environmental Initiative (BEI) and through this Biological Diversity (CBD) COP15 in December frameworks to address just transition as part of discussion with the International Chamber of initiative, Barclays has engaged with member saw the agreement of the new Global Biodiversity climate strategies, as well as the new Global Commerce regarding unleashing the full banks on practical steps that banks can take to Framework, which will be the framework for Biodiversity Framework, adopted at COP15, potential of sustainable finance, highlighting that support SME customers with a just transition national and international action. For companies which references the impacts of climate action a just transition is crucial for reaching net zero and financial institutions, the Taskforce on • we have worked closely with Ceres to develop and social dimensions related to nature. This also and financial institutions need to put it at the Nature-related Financial Disclosures (TNFD) an understanding of just transition in the US aligns with ongoing work in the development of heart of what they do. More broadly, efforts were released its third draft iteration of the framework context. the Taskforce on Nature-related Financial intensified during COP27 to ensure that Just for organisations to assess and disclose on Disclosures (TNFD) and initial guidance of the UK Transition was a prevalent theme throughout As part of our work on client transition plans, we nature-related risk and opportunity. Transition Plan Taskforce. conversations for governments, business and have launched a pilot assessment to evaluate finance, trade unions and civil society. Notably, a At Barclays we recognise the important role of the whether certain of our clients are considering There is clear evidence that climate change and breakthrough for climate justice was reached finance sector in stewarding responsible finance how to decarbonise in line with a just transition nature and biodiversity loss have significant with the 'loss and damage' fund providing towards a nature-positive future. We continue to for their stakeholders, considering the social risks interdependencies, where change in one area financial assistance for vulnerable countries work to build an understanding of the ways in and opportunities of the transition and ensuring can impact the other. We are reviewing ways in impacted by climate disasters. which our financing activities impact nature, as well effective dialogue with affected stakeholders. which these interlinkages could be addressed as the ways in which the bank and our clients together when considering the bank's While still at a relatively nascent stage, the Further details on the just transition within the Client + depend on nature. This includes engaging with Transition Framework can be found on page 97. environmental impacts, dependencies and strategic importance of the just transition is industry groups and our membership of the TNFD opportunities. One example of this is our rapidly becoming clearer, and first efforts are Forum. We also continue to review the ways in participation in the UNEP FI TNFD pilot, as part of being made by governments, businesses and which our financing activities can help to facilitate which we have tested a number of nature and financial institutions to deliver a transition to net a nature-positive future. climate scenarios on our European Agriculture zero underpinned by the principles of social and Food portfolio. justice. Barclays is working to build an approach We recognise interlinkages across environmental to a just transition cognisant of the important and social themes, in particular key crossovers Further details on the TNFD pilot + can be found on page 120. dynamic between climate actions and social with our approaches to climate change and justice, while being mindful of the potential human rights. Given these interdependencies, it is interconnectedness with biodiversity. important for banks to consider nature-related considerations alongside other ESG factors, such as climate change and social considerations. Further details on our approach to nature and biodiversity in + our own operations can be found on page 83.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 120 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) We have been part of a TNFD pilot group led by Nature-related risk in financing From a biodiversity perspective, the annual Barclays nature-linked UNEP FI to test the draft TNFD Framework. As We include financing restrictions that seek to targets include a commitment to increase financing - Cairn Homes plc part of the pilot, we looked specifically at address nature-related risk within our position biodiversity net gain (BNG) across Cairn’s new agriculture and food in Europe, with a focus on Biodiversity Linked SLL statements on Forestry and Agricultural developments measured as a percentage of UK farming, in which Barclays has a significant Barclays Corporate Banking Sustainable Commodities, World Heritage Sites and Ramsar overall new homes commenced. BNG delivers presence. Product Group (SPG) provided support to Cairn Wetlands, and Climate Change. We continue to measurable improvements for ecology by Homes plc (Cairn) in the selection of We recognise the need for continuous review and monitor the ways in which we can protecting, enhancing and creating habitats in meaningful targets and indicators linked to improvement with regard to available data and strengthen our approach. For example, see page association with development and Cairn's certain sustainability performance targets. technologies, in particular noting the complexity 253 for details of our due diligence approaches approach includes a development-specific In July 2022, Cairn completed a refinancing of and challenge given the number of nature to climate change and deforestation. biodiversity programme that replaces or its €277.5m syndicate facility into a attributes and their associated metrics. We will improves the local biodiversity of each new We have continued to develop our sustainability linked term loan (SLL) and therefore continue to support the development Cairn development or otherwise contributes to understanding and ability to evaluate nature- revolving credit facility (RCF), one of the largest of methodologies which seek to better evaluate the improvement of Ireland’s biodiversity. related risk in financing, building on the work of its type arranged in the Irish homebuilding risk impacts and dependencies at a portfolio started in 2021. This included working with an sector, with AIB, Bank of Ireland and Barclays level. For example, we have trialled an emerging external expert on a materiality exercise to Bank Ireland. The term loan and revolving credit modelling methodology in order to support our produce an initial portfolio heatmap to analyse facility interest rates are linked to Cairn participation with the UNEP FI work, which draws nature-related risk by sector and exposure meeting certain sustainability performance upon a wide range of available data and also across our lending portfolio. This involved a targets on biodiversity, decarbonisation and its adopts assumptions where there are gaps. qualitative review of sector impacts and people strategy. Further details can be found in our position statements on dependencies across a number of key risk drivers + the Barclays ESG Resource Hub at: home.barclays/ representing both physical and transition risks, to sustainability/esg-resource-hub/ determine where in the portfolio were the likely Further details on our position statements can be found in the non-financial information statement from page 60. areas of highest risk. This involved assessing our clients’ locations in TNFD pilot with UNEP FI - European terms of production and sales and applying a Agriculture and Food Nature-related financing Life Under Water, as well as SDG 15, Life on number of biodiversity metrics to each location Land. Examples include a sustainability-linked In 2022, the TNFD published a draft version of While the market is at a relatively early stage, to determine where key impacts and risks may facility that includes biodiversity targets, as well its risk management and disclosure framework nature-related financing presents significant future arise. A number of different 2030 scenarios as investment by Barclays Principal Investments. for organisations to report and act on evolving opportunities for the financial sector given the were also used to stress the portfolio and nature-related risks. UNEP FI is piloting this capital requirements to address and reverse nature We seek to support impactful projects through our individual counterparties, to see whether framework with approximately 40 financial loss: the biodiversity financing gap is estimated to partnership with Blue Marine Foundation through material financial impact could arise as a result a institutions - Barclays is participating in their be in the region of $598-824bn per year . which Barclays has financed projects which help to of nature-related transition and physical risks. pilot group focused on European agriculture support the protection, restoration and The results are currently being reviewed At Barclays, we will continue to work towards and fisheries, which in the Barclays context sustainable management of the world’s ocean. internally to assess how they could be used green and sustainable finance targets which means agriculture and food sectors. alongside existing climate risk procedures. include financing relevant to nature and A breakdown of Barclays' sustainable financing, including As part of the pilot programme, we worked with + against the SDGs, can be found on pages 99 to 102. biodiversity. Details of Barclays Principal Investments team investment an external expert to test the draft TNFD This includes categories such as ‘sustainable in ECOncrete can be found on page 113. framework, including the proposed risk food, agriculture, forestry, aquaculture and assessment process (LEAP FI), on our Note fisheries’ in addition to financing that tracks a Paulson Institute, Financing Nature: Closing the Global Biodiversity agriculture and food portfolio in Europe, with a Financing Gap (2020) against Sustainable Development Goal (SDG) 14, focus on UK farming.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 121 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) Engagement In 2022, Blue Marine built the case for a network Barclays' partnership We see collaboration and engagement across of highly protected marine areas (HPMAs) using with Blue Marine Foundation industry as essential for sharing learnings across pilot sites, and was a key stakeholder in the Barclays completed the second year of our the sector and a successful transition to nature- process resulting in a commitment from three-year partnership with the Blue Marine positive future. A key component of this is our Government to designate and manage a Foundation to support them in seeking to deliver membership of the TNFD Forum. network of HPMAs in England. their goal of ensuring that at least 30% of the During 2022, we provided feedback to the TNFD Our donation continues to support thought global ocean is effectively protected and the on their draft framework and conducted an leadership with a focus on conservation other 70% sustainably managed by 2030. internal mock disclosure exercise to understand finance, blue carbon and oceanic climate Protecting blue carbon habitats is a critical our progress towards making a comprehensive change. part of mitigating against climate change as disclosure against the framework in the future. Recognising the critical links between the they act as significant carbon sinks. Our A table signposting our disclosures on nature and ocean and the issues of climate change and + biodiversity can be found within the ESG Data Centre on donation has, so far, contributed to this by 2 Barclays ESG Resource Hub at: home.barclays/sustainability/ biodiversity loss, this partnership is an example helping to secure the protection of 300km of esg-resource-hub/reporting-and-disclosures/ of how collaboration between NGOs and the seabed and kelp forests on the south coast of corporate sector can bring together new the UK, and catalysing an ecosystem In 2022, we have continued engagement with a opportunities for nature-positive action and restoration project in the Solent. number of industry and cross-sector groups, seek to make progress against the gap in including the Banking Environment Initiative (BEI), financing for climate and biodiversity solutions. part of the Cambridge Institute of Sustainability Further details on the Blue Marine Foundation can be found Leadership (CISL). As part of the BEI’s nature- + at: bluemarinefoundation.com/ related finance steering group we fed into to the paper ‘Integrating climate and nature: The rationale for financial institutions’. We further worked with the Association for Financial Markets in Europe (AFME) and EY to contribute to their paper 'Into the wild: why nature may be the next frontier for capital markets.' The' Integrating climate and nature: The rationale for + financial institutions' paper can be found at: www.cisl.cam.ac.uk/resources/publications/integrating- climate-and-nature-rationale-financial-institutions The 'Into the wild: why nature may be the next frontier for capital markets' paper can be found at: www.afme.eu/ publications/reports/details/Into-The-Wild-Why-nature-may- be-the-next-frontier-for-capital-markets

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 122 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) These groups bring together peers under a Engaging with industry common set of principles, and help to support members’ unilateral implementation of those We know that leveraging the relationships principles through the independent targets and we hold with stakeholders can support all of plans they adopt, through sharing knowledge and us in achieving our objectives. publishing additional guidance or research. The issues we grapple with are shared by many in For the world to transition at pace and to keep the industry. One example is the work we are global warming at 1.5 ° above pre-industrial doing with the Global Financial Markets levels, all actors in the economy have to play their Association (GFMA) Climate Data Standard part, adapt and innovate. Against this backdrop, working group, which is working towards engagement with others in our industry - development of a voluntary industry wide, experts, key stakeholders and our peers - and standardised data collection template for sharing knowledge is vital, noting that in doing so decision relevant data. we remain mindful of regulatory considerations. To prevent inefficiencies, for example through Through appropriate engagement with industry unnecessary duplication of effort, and encourage experts, academics and peers, we have benefited widespread adoption of a solution, Barclays from, as well as contributed to conceptual joined peers and industry experts to try and discussions assessing the pathways to a low- tackle one of the biggest challenges facing the carbon economy, considered emerging industry: a lack of robust and comparable data. methodologies and taxonomies and worked to We have publicly supported industry-wide develop tools and best practice in data sourcing. engagements, including at events, roundtables By sharing and being open about challenges in and panel discussions including at COP27 and this new discipline where permissible, the COP15. Topics covered included improving GTIE is the precursor to the next Global industry is building knowledge and thought Department for International reporting for accelerated reductions, unleashing Investment Summit in 2023, for which leadership to enable advancement. Trade’s Green Trade & the full potential of sustainable financing, Barclays was the headline sponsor in 2021. We have partnered with civil society Investment Expo supporting a timely transition and embedding This partnership underlines the importance organisations, such as RMI whereby we have Barclays has joined forces with the Department climate and nature into corporate decision- of building strong private and public sector joined 12 other FIs to become a strategic partner for International Trade (DIT) to sign an making. relationships to unlock increased trade, of their Centre for Climate Aligned Finance. industry-leading five-year partnership export and investment opportunities post- Further details of our just transition related engagements + Barclays has contributed to sector-wide agreement to broaden, deepen and sharpen can be found on page 119. COVID. From start-ups looking to step onto Further details of our nature and biodiversity related ambitions and the development of solutions efforts to drive increased exports and trade the exporting ladder, or established engagements can be found on page 121. through participation in initiatives including the and investment opportunities for UK Barclays' register of our engagement with industry corporates looking to expand their global initiatives, working groups and memberships can be found Net-Zero Banking Alliance (NZBA), the Glasgow businesses of all sizes. offering, clients from across the bank will be at: home.barclays/sustainability/esg-resource-hub/reporting- Financial Alliance for Net Zero (GFANZ) and the and-disclosures/ The Green Trade and Investment Expo (GTIE) able to capitalise on the benefits of closer Sustainable Markets Initiative’s Financial Services is a UK Government-led conference to working between Barclays and the DIT. Taskforce. position net zero as a key driver of the UK’s Further details can be found at: home.barclays/news/ + press-releases/2022/060/barclays-and-department-for- future economic growth and highlight the international-trade--dit--announce-i/ commercial opportunities around the transition.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 123 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) In addition to our engagements with industry In striving towards a common reporting working groups and events, we have worked with framework to help support comparability and governments in the geographies where we operate accountability, we were an early adopter of TCFD to support them in their adoption of net zero targets reporting in the UK, adopting and promoting the and strategies. framework in 2017, prior to it become a regulatory requirement. We have also responded Further details of our engagements with + governments can be found on page 126. to the Transition Plan Taskforce’s call for evidence, and are part of the sandbox testing their recommendations. formulating an industry-wide standard for PCAF Working Group on accounting for the emissions associated with Capital Markets Activities capital markets activity. Since 2020, Barclays has been an active This year the working group built on the member of the Partnership for Carbon feedback from their November 2021 Accounting Financials (PCAF), an industry-wide discussion paper and put out a proposed initiative which aims to build consensus on methodology to public consultation in approaches to carbon accounting, disclosure September 2022. Final discussions are and portfolio alignment. ongoing and a finalised methodology is In 2022, and for the second year running, expected to be published in 2023. Barclays co-chaired the PCAF Capital Markets working group which is tasked with Further details can be found at: + carbonaccountingfinancials.com/files/ downloads/pcaf-capital-market-instruments- proposed-methodology-2022.pdf Commenting on the role of banks in the Sponsor of Net Zero transition to net zero, Venkat reflected on Delivery Summit how financial institutions were critical to Barclays was a sponsor of the Net Zero driving progress during the industrial Delivery Summit 2022, an international summit revolution through offering and pricing credit. that took place in London in May 2022, focused Around 200 leaders from the Glasgow on net zero delivery and the progress being Financial Alliance for Net Zero, as well as from made against the key priorities for finance business, and financial and professional agreed at COP26. services, attended. Our Group CEO, C.S. Venkatakrishnan, spoke as part of a panel of CEOs discussing net zero Further details can be accessed at: + www.theglobalcity.uk/sustainable-finance/net- implementation and how the financial sector zero-delivery-summit-2022 and the real economy can realise their net zero ambitions through credible, ambitious, transition plans.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 124 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) Engaging with industry External initiatives, signatories or memberships Additional information Multi-thematic Barclays is a founding member of the Banking Environment Initiative (BEI), a group of global banks working on Cambridge Institute of Sustainability actionable pathways towards a sustainable economy, convened by the Cambridge Institute for Sustainability Leadership's Banking Environment Leadership (CISL). In 2022, Barclays engaged with member banks on the topics of just transition and nature. Initiative Barclays has been an active member of Ceres since 2019, participating in various working groups across Ceres environmental and climate justice, climate-related disclosures, policy engagement and biodiversity. In 2022, we partnered with Ceres to integrate a US perspective on just transition, conducting research to organise a stakeholder dialogue on the topic and spoke at their Financing a Net Zero Economy conference during New York Climate week on a Just Transition panel. Barclays has been a member of United Nations Environment Programme - Finance Initiative (UNEP FI) for more than United Nations Environment 20 years and was a founding signatory of the Principles for Responsible Banking (PRB) as well as joining the Net-Zero Programme - Finance Initiative Banking Alliance in 2021. From 2021, Barclays' Group Head of Sustainability has sat on the Western Europe Banking Board and our CEO joined the Leadership Council in 2022. Just transition In 2021, Barclays joined over 40 financial institutions and stakeholders to form the Financing a Just Transition Alliance. LSE/Grantham Institute In 2022 Barclays contributed to the report 'Making Transition Plans Just'. Nature and biodiversity Barclays is a member of the Taskforce on Nature-related Financial Disclosures Forum (TNFD), which is a consultative Taskforce on Nature-related Financial network of institutional supporters who share the vision and mission of the TNFD. In 2022, we participated in a pilot led Disclosures Forum by UNEP FI to test the draft TNFD framework.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 125 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) Engaging with industry Industry collaboration Additional information Climate and sustainability In 2022, Barclays contributed to a publication ‘Guidance on Use of Sectoral Pathways for Financial institutions’ Glasgow Financial Alliance for Net Zero published in June. In 2021, Barclays was a founding member of the Net-Zero Banking Alliance. Since 2022, Barclays has co-led the Sector Net-Zero Banking Alliance Work Track within NZBA. In October 2022, Barclays announced a three-year partnership with Oxford to work on developing a credible Oxford Sustainable Finance Group methodology for monitoring emissions and creating transition pathways in the agriculture sector, & the UK Centre for Greening Finance and Investment Barclays has been a member of PCAF since 2020. During 2022, Barclays co-chaired a Capital Markets Working Group Partnership for Carbon Accounting of eight global banks that have developed a proposed methodology to account for the emissions associated with Financials capital markets transactions. The Climate Financial Risk Forum (CFRF) brings together UK regulators and senior financial sector representatives to PRA/FCA Climate Financial Risk Forum share their experiences in managing climate-related risks and opportunities. During 2022, Barclays chaired the Transition to Net Zero Working Group (TNZWG). In September 2022, Barclays became a Strategic Partner of Rocky Mountain Institute (RMI) Center for Climate Aligned RMI's Center for Climate Aligned Finance (CCAF). The Center acts as an implementation partner to banks seeking to align their investments with a net Finance zero future. Barclays is a member of the SMI Financial Services Taskforce (FSTF) and co-chairs the Net Zero Group. The SMI was Sustainable Markets Initiative launched in 2020 by His Majesty King Charles III when in role as The Prince of Wales. In 2021, Barclays became a member of the Banking for Impact on Climate in Agriculture (B4ICA) initiative which brings World Business Council for together banks to develop technical data-solutions to support themselves and their clients to align their financial Sustainable Development portfolios in the food, agriculture, and land use space towards net zero and Paris Agreement goals. Barclays' register of our engagement with industry initiatives, + working groups and memberships can be found at: home.barclays/sustainability/esg-resource-hub/reporting-and- disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 126 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) Advocacy with public officials in the US is publicly Barclays seeks to ensure risks of misalignment Climate Policy Engagement Barclays' approach to public policy reported, as required by the Lobbying Disclosure between an association’s advocacy position and We proactively seek opportunities for senior- Act. Barclays also discloses its EU advocacy its own net zero ambitions are managed We have a responsibility to engage with level dialogue with policymakers to demonstrate activities on the European Commission’s appropriately, including seeking to address any governments and policymakers private sector leadership on sustainable finance Transparency Register. misalignment through engagement where appropriately, whilst remaining politically and the energy transition. We also provide possible. Where there is a material and ongoing Additionally, Barclays is a member of a number of neutral. feedback, as an individual institution and/or via difference that we identify through our routine trade associations globally. These associations trade associations to relevant consultation engagement, Barclays reserves the right to work to represent their members, and for many processes launched by standard setters and Transparency and governance publicly dissent from a trade association’s this involves undertaking work to shape multilateral organisations and NGOs that could position. Should a trade association adopt a As a major economic and societal contributor to industry’s collective response to various public eventually inform policy recommendations. We material position that, following engagement, the communities in which we operate – whether policy issues. We seek to be an engaged and also discuss green investment plans and policies remains irreconcilable with our values or strategy, via the products we offer, customers and clients productive member of all associations in which with governments and other key stakeholders to we are prepared to end our membership. we serve, the colleagues we employ, or the firm participates, in respect of areas where help attract investment for climate solutions. contribution we make through our community we have a legitimate interest or expertise. The In addition to our ordinary course engagement This includes participating in key international investment programme – we believe it is also main mechanism for achieving this is through the with trade associations described above, we have fora, such as the United Nations Climate Change important to contribute to relevant public policy committees and working group structures that begun to undertake an internal review of the Conference, to promote net zero-aligned public debates. We seek to engage constructively with exist within each trade association. To manage climate policy positions of the 35 material trade policy at senior levels. policymakers in jurisdictions where the firm our major trade association engagement, the associations of which we are members, which are Barclays seeks to be actively involved in relevant operates, including with governments, Strategic Policy Group monitors who from the listed on our Public Policy Engagement website, trade association working groups and to legislatures, regulators and other organisations. firm sits on which working group and, where in order to assess the extent to which they are influence the development of policy positions in appropriate, supports senior executives aligned with achieving net zero by 2050 and In our discussions, we have a responsibility to relation to aspects of climate and sustainable occupying trade association Board positions. limiting global warming to 1.5 C above pre- make contributions that are accurate, honest finance to be consistent with our own, stated industrial levels. This includes sampling publicly and evidence-based. We also believe that On our Public Policy Engagement website, we ambition to be a net zero bank by 2050. Many of available press releases, speeches, responses to Barclays should only engage on issues where we publish material Barclays responses to the trade associations of which we are members consultations and other published statements. have a legitimate interest (for example, where governmental public policy consultations in the do not exclusively focus on sustainability, but For the majority of trade associations in-scope there is a direct consequence for our business, UK and EU, along with the agencies we work with rather engage across the full breadth of financial for the review, to date we have not identified a our customers and clients, or our colleagues). in different jurisdictions, and key trade services policy and so do not have stated clearly defined position on net zero. For those Responsibility for the co-ordination and association memberships. In the US and Asia, positions in relation to net zero. that have a position, they were generally oversight of public policy advocacy lies with the responses to public consultations are published We engage with many trade associations on considered to be in line with achieving net zero by Group Head of Strategic Policy. on government websites. Active participation in climate issues and will continue to do so to 2050. We will continue to keep our approach trade association discussions to develop policy Barclays retains the services of public affairs promote our net zero objectives. Given the pace under review. positions, such as working groups, helps to agencies in certain jurisdictions. These agencies of developments and regional differences in ensure that the public policy and advocacy primarily assist with political monitoring and approaches to sustainability, there can be positions adopted by trade associations are strategic advice. We work very closely with these diverging views within trade associations. generally in line with Barclays’ own public policy agencies, on a day-to-day basis, to help ensure objectives and any positions that are in conflict that the Strategic Policy Group has oversight of are identified. the work being undertaken for the firm. Our Public Policy website can be found at: home.barclays/ + sustainability/esg-resource-hub/reporting-and-disclosures/ public-policy-engagement/

Resilience of our strategy TCFD Strategy Recommendation A: TCFD Strategy Recommendation B: TCFD Strategy Recommendation C: Describe the climate-related risks and Describe the impact of climate-related risks and Describe the resilience of the organisation’s opportunities the organisation has identified over opportunities on the organisation’s businesses, strategy, taking into consideration different the short, medium, and long term. strategy, and financial planning. climate-related scenarios, including a 2°C or lower scenario. Risks and opportunities Implementing our climate strategy Resilience of our strategy 73 77 127 Risks 74 Achieving net zero operations 78 Scenario analysis 128 Opportunities 76 Operational footprint dashboard 80 Resilience of our strategy, All other narrative 81 taking into consideration different climate-related scenarios Reducing our financed emissions 85 135 TM BlueTrack dashboard 88 Macro-dependencies and objectives 135 All other narrative 89 Financing the transition 99 Important information / disclaimers 136 Sustainable finance dashboard 101 All other narrative 102 Working with our clients 103 Embedding ESG into our business 117 Just transition and nature and biodiversity 119 Engaging with industry 122 Barclays' approach to public policy 126

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 128 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy TCFD Strategy Recommendation (c) The outcomes, time horizon and future pathways for climate- related events and risks are highly uncertain, which presents challenges in understanding and quantifying the impact on financial Scenario Analysis systems and market participants. It is critical for organisations to evaluate the business implications of climate-related risks and Scenario analysis forms a key part of Barclays’ approach in opportunities to inform strategic thinking and to design 1 appropriate risk management strategies in response to these assessing and quantifying the impact of climate change . risks. At Barclays, scenario analysis and stress testing tools are Since 2018, Barclays has progressively developed its scenario used to provide insights on the effects of transition and physical risks on our portfolios under a range of climate change scenarios, analysis capabilities, developing-in house methodologies, which we intend to increasingly use to inform financial planning and business strategy setting, risk appetite and risk management. collaborating with external subject matter experts, and participating in regulatory exercises. 2. Internal short-term 4. Exploratory climate scenarios transition scenario by the Bank of England (BoE) • Short-term assessment exploring the • Barclays participated in the BoE’s Climate potential transition risk impact of a Biennial Exploratory Scenario (CBES) ‘Climate Minsky Moment’ with a rapid • Stress test covers three long-term scenarios: market correction, followed by broader Early Action, Late Action and No Action macroeconomic shocks • Assessments focused on credit risk impacts • Scenario narrative and shocks informed by to wholesale and retail portfolios external publications e.g. RA insurance climate stress, DNB energy transition stress test. 1. External case studies through UNEP FI 3. Internal climate scenarios informed by 5. Framework, regulatory and internal NGFS scenario analysis • Case study exercises covering Power Utilities, Oil & Gas and Residential Real • Long-term climate internal stress test This year, Barclays has participated in Estate regulatory stress tests (e.g. ECB CRST), • Scenario narrative and shocks informed by conducted bespoke internal scenario analysis • Scenario assessment based on REMIND NGFS ‘Disorderly Transition’ combined o exercises and further developed frameworks 2 C scenario, assessing a specific client set with internal scenario of comparable for performing scenario-based climate risk in each sector sensitivity (pre-COVID IFRS 9 Downside 1) measurement exercises • Judgement-led and simplistic approach to • Second assessment considered calculate climate probabilities of default incremental physical risk impact from the ‘Hot House World’ scenario Notes: 1 Informed by the Basel Committee on Banking Supervision's 2021 "Climate-related financial risks - measurement methodologies" report, Barclays considers climate scenario analysis as forward-looking projections of climate risk outcomes, with climate stress testing a subset of this where the exercise is designed to evaluate financial resiliency to a severe but plausible scenario.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 129 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy (continued) Barclays participated in the Bank of England’s Barclays has developed its approach and Banks' climate losses as a result of counterfactual losses Climate Biennial Exploratory Scenario (CBES) in methodologies, including: (%) 2021, which was a first phase. The bank also took • refining corporate transition risk modelling by part in the second phase of the CBES exercise in sourcing additional datasets on company 60 35 64 100 65 100 — — 2022. These exercises were exploratory and 95 95 emissions and transition plans, while factoring 55 designed to assess financial institutions' in sector-specific dynamics that the transition capabilities and preparedness for dealing with will pose 65 financial and economic shocks stemming from • enhancing corporate physical risk modelling, climate risks. The CBES exercise was a a key area of focus across the industry given significant undertaking for the bank, requiring a 40 36 35 35 the challenges it poses, by incorporating material uplift in our climate risk quantification additional physical risk considerations such capabilities and approaches. as knock-on geopolitical impacts and The ECB Climate Risk Stress Test (CRST), held in Mortgages Consumer credit Wholesale supply chain disruptions 2022, was an exploratory exercise designed to Early action Late action No additional action No additional action (illustrative adjustment) test climate stress testing capabilities and assess n n n n • developing methodologies for a wide range the financial resilience of participating banks. of climate transmission channels for mortgage Both CBES and CRST were learning exercises for assets, at a high resolution of granularity, Banks’ total losses in the transition scenarios versus expected losses both supervisors and financial institutions and across physical risk hazards such as flood, in hypothetical counterfactual scenario ($bn ) without direct implications on the capital subsidence, coastal flooding and storm, requirements for the supervised banks. and transition risks including EPC costs and 250 energy prices In 2022, Barclays performed a sector-specific 200 scenario analysis exercise to understand the • further incorporating these methodological impact of transition risks to the specific sectors approaches and enhancements into Climate over the short and medium term. The details of 150 Risk Management processes and frameworks. these exercises are covered in the next sections. Throughout 2022, Barclays have built on these 100 In 2022, and considering learnings from CBES learnings to inform our vision and plan for Phase 1, Barclays has further developed undertaking climate scenario analysis exercises. 50 understanding and use of climate scenario As our capabilities for scenario analysis evolve analysis by performing deep dives on available and mature, we expect these to increasingly 0 third-party climate scenarios, benchmarking inform the financial planning process and 2020 2025 2030 2035 2040 2045 2050 internal climate methodologies and approaches business strategy. to industry practice, and developing a consistent Late action Early action Counterfactual scenario n n n approach for the development of climate models across asset classes. The size of the losses published by the Bank of England here broadly aligned to those Barclays estimated from the exercise. Source: https://www.bankofengland.co.uk//2022/results-of-the-2021-climate-biennial-exploratory-scenario

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 130 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy (continued) Barclays submitted results for the first phase of Additionally, a new requirement has been To model Barclays' exposures to these Climate Scenario Analysis this exercise in October 2021 and participated in incorporated into the Client Assessment and scenarios, existing internal approaches were Exercises and Insights the second round of submissions during 2022. Aggregation Standard, so that any lending leveraged, for example the Corporate Transition A number of external and internal scenario This stage focused on the implications of the request to a corporate defaulting under the Risk Model. analysis exercises have been continued or first-round responses to financial institutions' CBES scenario will include enhanced due Further details on this model can be found at: home.barclays/ undertaken during 2022, the details of which are + content/dam/home-barclays/documents/citizenship/ ability to manage climate risks and adapt diligence on the impact of climate change on provided below. ESG/2021/Corporate-Transition-Forecast-Model-2021.pdf business models. The CBES results were borrowers' financial conditions. Climate Biennial Exploratory Scenario (CBES) published by the Bank of England in 2022, with New bespoke approaches were also developed The CBES exercise will also inform a series of The objectives of the CBES exercise were to: (1) Barclays losses broadly in line with our banking specifically for this exercise. For example, the credit risk deep dives to be conducted in 2023, assess the magnitude of the financial exposures market share. The aggregate results of this assessment of drought combined the gross which will also take into account quantitative of the firms and financial system to climate exercise across all participants can be seen on value added curves provided by the ECB, which metrics including carbon intensity and client change; (2) understand implications and page 129. indicate the relative performance of a sector, transition plan assessments. resilience of a firm’s business model to a range of with granular physical risk data from Moody’s Insights from this exercise Further details on our Climate risk management approach different climate scenarios; and (3) improve + 427, which includes heat stress scores for over can be found from page 282. Learnings from the CBES exercise have informed firms’ management of the financial risks from 5,000 companies. The final impacts were our risk management approaches. This includes ECB Climate Risk Stress Test climate change. In order to achieve these reviewed by credit risk subject matter experts to our evaluation and assessment of elevated risk objectives, the CBES utilised three scenarios that The ECB Climate Risk Stress Test (CRST) was an ensure that impacts appeared intuitive to the sectors and enhancing our climate risk metrics test a wide variety of pathways: (1) Early Action; exploratory exercise designed to test climate scenario narrative and company specific factors. reported to Climate Risk Committee and Board (2) Late Action; and (3) No Additional Action. In stress testing capabilities and assess the financial Risk Committee. Insights from this exercise the CBES exercise, carbon prices provide an resilience of participating banks. Overall, the climate impacts from the scenarios indication of the level of transition risks in the Specifically, it explored: (1) banks’ capabilities and were considered manageable, with highest scenarios. A summary of these scenarios is progress in developing climate risk stress testing losses observed in the Wholesale Credit Portfolio included in the table below. frameworks; (2) the capacity of banks to produce under the Drought & Heat Risk scenario. We set climate risk factors; (3) the capacity of banks to CBES scenario Early Action (EA) Late Action (LA) No Additional Action (NAA) out below a heat map of losses, indicating the produce climate risk stress test projections; (4) relative impact of the climate stress scenario Description An Early and Orderly A Late and Disorderly Includes only policies in place the risks banks are facing in the form of transition against the baseline scenario used within the Transition Transition before 2021 risks (both short-term and long-term) and acute exercise. The ECB also provided general The transition to a net zero The implementation of Primarily explores physical physical risk events. This exercise was conducted feedback with respect to banks' stress-testing economy starts in 2021. policies to drive the transition risks from climate change. for Barclays Bank Ireland’s portfolio under the Carbon taxes and other is delayed until 2031 and is Here there are no new climate capabilities and its expectation that further ECB jurisdiction. policies intensify relatively then more sudden and policies introduced beyond progress will be made in the coming years. gradually over the scenario disorderly. Global warming is those already implemented. For the specific stress testing component of the A climate risk dashboard has been developed to o horizon. Global carbon dioxide limited to 1.8 C by the end of The absence of transition exercise, four scenarios were used spanning monitor risks identified and to inform Barclays emissions are reduced to net the scenario (2050) relative to policies leads to a growing multiple time horizons, emissions pathways and Bank Ireland Board Risk Committee. zero by around 2050. Global pre-industrial levels. The more concentration of greenhouse climate risk types. A summary of these scenarios o warming is limited to 1.8 C by compressed nature of the gas emissions in the is included on the next page. the end of the scenario (2050) reduction in emissions results atmosphere and, as a result, relative to pre-industrial levels. in material short-term global temperature levels macroeconomic disruption. continue to increase, reaching o 3.3 C relative to pre-industrial levels by the end of the scenario (2080).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 131 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy (continued) Type Scenario Time period Projections Scenario Description Transition Risk Short term 3 years Disorderly The short-term Disorderly transition scenario reflects a delayed implementation of government policy to reduce carbon emissions. In order to still meet the goals and timelines of the Paris Agreement, this scenario assess a sharp, unexpected increase in carbon prices in 2022. This is a less adverse scenario that the EU-wide European Banking Authority stress test which reflects a broad-based economic crisis. The disorderly scenario results in sectors strongly linked to fossil fuels experiencing the largest impact. Long term 30 years Orderly The long-term scenario reflects the implementation of transition strategies across three possible trajectories: 1. An Orderly transition assumes early, ambitious government action to transition to a net zero CO emissions economy by 2050 2 2. A Disorderly transition assumes CO emissions do not decrease quickly enough until 2030. This triggers action that is late, disruptive, 2 sudden and unanticipated to meet emission targets by 2050 Disorderly 3. A Hot-house transition assumes CO emissions are not reduced and the economy is confronted with the materialisation of increasing 2 physical risks, leading to, amongst other things, GDP losses. Hot-house Physical Risk Drought and Heat 1 year Stress The short-term Drought and Heat scenario reflects the physical risk of an extended period of hot weather and low rainfall. This scenario results in material output losses across the agriculture, manufacturing and construction sectors. Flood 1 year Stress The short-term Flood scenario reflects the physical risk of a severe flood scenario in Europe. This scenario results in changes in the value of bank's underlying collateral, with a specific focus on mortgage portfolios. Scenario Scope Stress impact Short-term stress Credit Risk - Wholesale £ High Credit Risk - Retail £ High Market Risk £ Moderate Long-term stress Credit Risk - Wholesale Long-term stress scenario projections were exploratory, therefore did not stress against Baseline. The ECB recommends results be interpreted as qualitative rather than quantitative. Credit Risk - Retail Retail portfolio experienced greater shocks in Hot-House scenario due to the macroeconomic impact on production, unemployment and subsequent impact on house prices, in contrast, Wholesale experienced the greatest shock in Disorderly scenario due to the impact of both macroeconomic factors and late introduction of more severe carbon price shocks. Drought and heat risk Credit Risk - Wholesale £ Critical Flood risk Credit Risk - Retail £ Moderate Key Moderate High Critical £ £ £

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 132 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy (continued) Power Utilities Bespoke Assessment • carbon hedging represents a potential mitigant 1.Carbon price 3.Renewable capital costs against carbon tax and further investigation During 2022, Barclays also performed a targeted ($/tCO e) (Index) 2 is needed on the extent of this activity and scenario analysis exercise on Power Utility clients its effectiveness 600 100% to better understand transition risks to the sector over a short to medium term. This • given the short-term nature of the scenario, the exercise was designed to support climate risk exercise assumed that companies would meet 500 96% management and evolve climate risk modelling, their five-year plans as currently disclosed, and with outputs indicating the change in risk would not be assessed or discounted based on 400 profile for the sector rather than quantifying 92% a credibility assessment financial losses. 300 The learnings from this exercise will form a The scenario was informed by the Network for 88% broader power sector deep dive, to be Greening the Financial System (NGFS) Delayed 200 conducted in 2023, which will take into account Transition scenario, and was designed in line with quantitative metrics including carbon intensity 84% the Programme Finance Initiative (UNEP FI) and and client transition plan assessment. 100 National Institute of Economic and Social Whilst the exercise provided insight and learning Research (NIESR) guidance on exploring short- 80% 0 into this sector, the nature of this exploratory term climate-related shocks. The scenario shifts 2022 2023 2024 2025 2026 2027 2028 2029 2030 2022 2023 2024 2025 2026 2027 2028 2029 2030 exercise, along with high model uncertainty, the transition period experienced in the NGFS CapEx Cost EU US RoW n means that there were limitations to the analysis. n n n scenario from 2032 and beyond to today, Key scenario variables include 3) Renewable Investment Cost, For instance, forecasting the exact nature and Key scenario variables include 1) Carbon Price, representing an overall representing greater tail risk from rapid transition a component of capital expenditure where marginal renewable proxy for transition costs applied to companies as an additional cost to timing of government policy is challenging, investment costs fall as the technologies mature. doing business. policies being introduced in a disorderly manner. meaning that estimations must be made as to This was done to ensure the exercise was the format and magnitude these will take. The informative and appropriate for risk management Insights from this exercise 2.Electric capacity mix outputs and insights gained from this exercise purposes. The exercise highlighted key conclusions (GW) will be used to enhance climate risk management The exercise leveraged Barclays' Corporate warranting further investigation and action: processes, including to better quantify the 25,000 Transition Risk Forecast Model. In addition, the impacts of climate change on the Bank's • transition scenarios represent a significant risk exercise involved some key assumptions, portfolio, to improve our understanding of how for Power companies with high carbon-intensive principally that regulated financial entities are less 20,000 climate risks manifest in this sector, and to operations, given the high costs of transition (e.g. sensitive to climate factors, owing to regulatory support Barclays' resilience to climate risk. carbon prices, investment in renewables) support and ability to cover costs. 15,000 • there are existing transition risks in the EU Emissions Trading System that may lead to financial stress for major Power Utilities, and 10,000 current geopolitical issues may accelerate this as EU companies rely further on coal to offset gas supply issues, driving emissions higher and 5,000 further away from legally binding targets • if companies pass through carbon-related 0 costs to consumers, this will likely lead to 2022 2025 2027 2030 consumer affordability issues, the dynamics of Coal Capacity Gas Capacity n n which are being observed today albeit from Nuclear Capacity Renewable Capacity n n different drivers Key scenario variables include 2) Electricity Capacity Mix, reflecting changing fuel types for power generation as economies decarbonise.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 133 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy (continued) Evolution of approach Having undertaken a number of climate scenario analysis exercises over the last four years, and gained a greater understanding of the challenges and nuances of climate modelling, Barclays has created and continues to evolve its models, methodologies and scenarios for conducting climate scenario analysis and stress testing for its portfolios. Climate models Informed by these climate scenarios, Barclays is embarking on a journey to develop new, and enhance existing, climate models for specific portfolios. These models are designed to produce climate- relevant credit risk metrics applicable to different use cases, for example climate-adjusted probability of default. These models will work with a range of climate scenarios and evaluate the impact of specific physical and transition risk drivers. The below schematic shows the outline of the model design. Barclays has initially focused on developing this approach for credit risk, given that this risk type has been the focus of climate scenario analysis to date. 1. Models consume climate scenario variables 5. Using these metrics, credit risk parameters e.g. carbon pricing or flood risk can be obtained e.g. PD or LGD 2. Over time, models will be designed and 6. These outputs can be integrated into different developed across a wide range of downstream use cases e.g. stress testing asset classes 7. Models can be used across different business 3. Relevant climate risk drivers are analysed and lines within Barclays. evaluated to understand how they interact with the asset class 4. These risks are applied to metrics that drive credit risks within the asset class e.g. LTV for mortgages

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 134 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy (continued) • climate scenario risk analysis requires • severe physical risks emanating from a climate Through detailed research, it has become clear Challenges approaches and tools that are more granular ‘tipping point’, causing widespread impacts to that there is significant uncertainty within the Having undertaken a number of climate scenario (e.g. focus on company level analysis) which physical systems, including sea level rise, scientific community around how major changes analysis exercises, Barclays has gained a greater differs from more traditional stress testing drought and more severe changes in to the environment may impact weather patterns, understanding of the challenges and nuances of exercises which are conducted at portfolio or temperature including colder winter weather given the complexity and interconnections climate modelling and continues to develop new sector level. This creates a need for more involved. In order to calibrate the scenario, the and enhance existing tools for scenario analysis • amplifying affects to the wider economy as following sources have been used: a) academic granular data which Barclays may not typically and stress testing. However, unique and complex physical risk events lead to changes in society, have maintained evidence where available, b) tail events that have features of climate risks, with potential tipping such as declining agricultural production and occurred throughout history, or c) comparable points and non-linearities, represent major • modelling typically occurs over long time increased migration from severely impacted events driven by non-climate factors. However, challenges in terms of accurately capturing the horizons, which are subject to significant regions, potentially leading to severe price we acknowledge the limitations of running a impact of climate risks and effectively using the uncertainty. When modelling large and diverse rises and inflation scenario as outlined above. results of these exercises to inform various portfolios, pinpointing where and when risks • this results in various stakeholders taking The exercise will be used as part of Barclays' business activities. Some of the challenges include: will manifest, and the magnitude of these, mitigating actions, including transition ongoing climate risk management, to better is challenging. • climate change scenarios are often derived action from policy spheres and consumers quantify the impacts of climate change on the using models such Integrated Assessment Planned activity: switching consumption habits to more Bank’s portfolios and balance sheet. This will Models (IAMs), which are complex and require Group-wide climate stress test sustainable practices enable Barclays to improve its understanding of deep understanding of feedback loops and Barclays will be performing a Group-wide climate how climate risks interact with macroeconomic • additional non-financial risk impacts including module interactions. Over long-term time scenario analysis exercise in 2023, to test the stresses and to support Barclays' resilience to legal and conduct risks are explored, to horizons, such scenarios may struggle to impact to Barclays' portfolios from a severe but climate risk. holistically assess the plausible set of events identify inflection points, or periods of plausible climate scenario. This exercise is split that manifest from climate change. Further details on the impact of climate-related risks and heightened volatility caused by physical + across four phases over a five-year time horizon, opportunities on our business, strategy and financial climate risks, and understanding such planning can be found on pages 74 and 76. including paths for Physical, Connected and as events is important for climate Transition risk events: risk management

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 135 report information sustainability report Governance review review statements Annual Report 2022 Resilience of our strategy (continued) In the No Additional Action scenario, the world • greater confidence, action and awareness Resilience of our strategy, Macro-dependencies and objectives would experience heightened physical risks in the among consumers in wider society could taking into consideration different longer-term. Without any additional policy facilitate private investment into the conduits We consider that, at a high level, the following climate-related scenarios support to incentivise the transition, the gap where it could have the most impact to change areas represent some of the macro- between our ambition to transition to net zero behaviour. This includes the need for dependencies that may impact our clients, As described above, we use scenario analysis to and the emissions reductions observed in the households to see sufficient return on customers and suppliers, and thus our ability to help us assess and quantify potential impacts of economy would increase. While we might see investment in low-carbon products to create deliver our climate strategy: climate change. less transition risk in this scenario, Barclays would incentives to act Based on the stress tests undertaken to date, need to consider the implications of such • policy clarity is needed across the real • improved access to client sustainability- our current best understanding of the resilience divergence and manage increasing exposure to economy, sector by sector, and country by related risk and impacts data would allow for of our business is that the impacts of the climate physical risks faced by certain segments of country, to ensure shared expectations and better assessments of Scope 3 emissions, scenarios we have so far explored, even over the customers and clients we serve. aligned objectives. Without clear milestones and therefore allow full integration of these long term, are more benign than the scenarios that lead to full decarbonisation, there is We recognise that we have more work to do in factors into decision-making. Government we generally use to test the resilience of our uncertainty around where finance should flow order to reach a more comprehensive and and regulators should recognise that business. Under the CBES exercise, our business to support economy-wide decarbonisation deeper understanding of the resilience of our corporate and financial sector reporting will remained resilient under all scenarios. Under the business under various climate scenarios. We improve over time, with some challenges • a comprehensive carbon-pricing scheme ECB exercise, we did find that the Barclays also aim to more fully integrate climate scenario likely to persist over the coming years due to could be an efficient way to support the Europe portfolios (as a sub-set of the Barclays' analysis into our strategic and financial planning data gaps. transition to net zero. Barclays Research Group exposures) were vulnerable under the over time as our capabilities in the area of shows current prices (avg $6/tCO ) are 2 long-term scenarios given their exposure to Further details on our assessment of material existing and scenario analysis evolve further. + insufficient to achieve 1.5°C or 2°C targets emerging risks, including climate risk, can be found from power and gas utilities. page 273. Under the CBES exercise, we found that Barclays’ • many technological innovations and wider existing strategic plans to manage emerging In addition to the risks arising from our clients' activities needed for the net zero transition climate risks and to align our financing to the and suppliers' transitions, we are also dependent need to become more attractive to lenders goals and timelines of the Paris Agreement in on wider market and geopolitical developments through improved risk / return ratios. part mitigate some of the risk in at least two of outside our control. For example, progress may Currently, technology solutions such as the three scenarios – the Early Action and Late be impacted by geopolitical developments that carbon capture or hydrogen are yet to achieve Action scenarios. result in energy supply pressures, such as the full commercial scalability, limiting access to conflict in Ukraine, or by the varying pathways less expensive forms of capital. Larger The Late Action scenario indicated greater that individual companies take as a result of the amounts and less costly capital could be disruption compared with the Early Action technologies available to them to transition. unlocked via blended finance scenario due to the delay in policy incentives, which amplified the transition risks faced by our • a wide variety of sector-specific, supply-side clients. In this scenario, there would be a greater challenges need to be addressed on a case- need and opportunity to support our clients to by-case basis. For example, the UK is adapt, where they are in sectors most vulnerable encountering a skills shortage in the to transition risks. However, our strategic plans construction sector which will impact to transition our portfolio reduces our risk retrofitting of housing stock exposure in both these scenarios.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 136 report information sustainability report Governance review review statements Annual Report 2022 Important information / Disclaimers • continued (and will continue) to review and • appointed KPMG LLP to perform limited Disclaimers Information provided in climate develop our approach to data, models and independent assurance over selected ESG and sustainability disclosures In preparing the climate and sustainability methodologies in line with market principles content, which have been marked with the content within the Barclays PLC Annual Report What is important to our investors and and standards as this subject area matures. symbol Δ. The assurance engagement was wherever it appears, we have: stakeholders evolves over time and we aim to The data, models and methodologies used planned and performed in accordance with anticipate and respond to these • made a number of key judgements, and the judgements estimates or assumptions the International Standard on Assurance changes. Disclosure expectations in relation to estimations and assumptions, and the made are rapidly evolving and this may directly Engagements (UK) 3000 Assurance climate change and sustainability matters are processes and issues involved are complex. or indirectly affect the metrics, data points and Engagements Other Than Audits or Reviews particularly fast moving and differ in some ways This is for example the case in relation to targets contained in the climate and of Historical Financial Information and the from more traditional areas of reporting in the financed emissions, portfolio alignment, sustainability content within the Annual International Standard on Assurance level of detail and forward-looking nature of the classification of environmental and social Report. Further development of accounting Engagements 3410 Assurance of Greenhouse information involved and the consideration of financing, operational emissions and and/or reporting standards could impact Gas Statements. A limited assurance opinion impacts on the environment and other persons. measurement of climate risk. (potentially materially) the performance was issued and is available at the website link We have adapted our approach in relation to metrics, data points and targets contained in below. This includes details of the scope, • used ESG and climate data, models and disclosure of such matters. Our disclosures take this report. In future reports we may present reporting criteria, respective responsibilities, methodologies that we consider to be into account the wider context relevant to these some or all of the information for this reporting work performed, limitations and conclusion. appropriate and suitable for these purposes as topics, including evolving stakeholder views, and period using updated or more granular data or No other information in this Annual at the date on which they were deployed. longer time-frames for assessing potential risks improved models, methodologies, market Report has been subject to this external However, these data, models and and impacts having regard to international long- practices or standards or recalibrated limited assurance. methodologies are subject to future risks and term climate and nature-based policy goals. Our performance against targets on the basis of uncertainties and may change over time. They climate and sustainability-related disclosures are The limited assurance opinion is available at: home.barclays/ updated data. Such re-presented, updated or + are not of the same standard as those sustainability/esg-resource-hub/reporting-and-disclosures/ subject to more uncertainty than disclosures recalibrated information may result in different available in the context of other financial relating to other subjects given market outcomes than those included in this section information, nor subject to the same or challenges in relation to data reliability, of the Annual Report. It is important for equivalent disclosure standards, historical consistency and timeliness, and in relation to the readers and users of this report to be aware reference points, benchmarks or globally use of estimates and assumptions and the that direct like-for-like comparisons of each accepted accounting principles. There is an application and development of methodologies. piece of information disclosed may not always inability to rely on historical data as a strong These factors mean disclosures may be be possible from one reporting period to indicator of future trajectories, in the case of amended, updated, and recalculated in future another. Where information is re-presented, climate change and its evolution. Outputs of as market practice and data quality and recalibrated or updated from time to time, our models, processed data and methodologies availability develops. principles based approach to reporting will also be affected by underlying data quality financed emissions data (see page 87) sets out which can be hard to assess or challenges in when information in respect of a prior year will accessing data on a timely basis. be identified and explained.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 137 report information sustainability report Governance review review statements Annual Report 2022 Forward-looking statements This document contains certain forward-looking impairment charges, provisions, capital, leverage measure, manage and mitigate the impacts of ability to access funding; and the success of statements within the meaning of Section 21E of and other regulatory ratios, capital distributions climate change effectively; environmental, social acquisitions, disposals and other strategic the US Securities Exchange Act of 1934, as (including dividend policy and share buybacks), and geopolitical risks and incidents and similar transactions. A number of these factors are amended, and Section 27A of the US Securities return on tangible equity, projected levels of events beyond the Group’s control; the impact of beyond the Group’s control. As a result, the Act of 1933, as amended, with respect to the growth in banking and financial markets, industry competition; capital, leverage and other Group’s actual financial position, results, financial Group. Barclays cautions readers that no trends, any commitments and targets (including regulatory rules applicable to past, current and and non-financial metrics or performance forward-looking statement is a guarantee of environmental, social and governance (ESG) future periods; UK, US, Eurozone and global measures or its ability to meet commitments and future performance and that actual results or commitments and targets), business strategy, macroeconomic and business conditions, targets may differ materially from the other financial condition or performance plans and objectives for future operations and including inflation; volatility in credit and capital statements or guidance set forth in the Group’s measures could differ materially from those other statements that are not historical or markets; market related risks such as changes in forward-looking statements. Additional risks and contained in the forward-looking statements. current facts. By their nature, forward-looking interest rates and foreign exchange rates; higher factors which may impact the Group’s future Forward-looking statements can be identified by statements involve risk and uncertainty because or lower asset valuations; changes in credit financial condition and performance are the fact that they do not relate only to historical they relate to future events and circumstances. ratings of any entity within the Group or any identified in the description of material existing or current facts. Forward-looking statements Forward-looking statements speak only as at the securities issued by it; changes in counterparty and emerging risks from page 269 of this sometimes use words such as ‘may’, ‘will’, ‘seek’, date on which they are made. Forward-looking risk; changes in consumer behaviour; the direct Annual Report. ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, statements may be affected by a number of and indirect consequences of the Russia-Ukraine Subject to Barclays PLC’s obligations under the ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, factors, including, without limitation: changes in war on European and global macroeconomic applicable laws and regulations of any relevant ‘achieve’ or other words of similar meaning. legislation, regulation and the interpretation conditions, political stability and financial jurisdiction (including, without limitation, the UK Forward-looking statements can be made in thereof, changes in IFRS and other accounting markets; direct and indirect impacts of the and the US) in relation to disclosure and ongoing writing but also may be made verbally by standards, including practices with regard to the coronavirus (COVID-19) pandemic; instability as information, we undertake no obligation to directors, officers and employees of the Group interpretation and application thereof and a result of the UK’s exit from the European Union update publicly or revise any forward-looking (including during management presentations) in emerging and developing ESG reporting (EU), the effects of the EU-UK Trade and statements, whether as a result of new connection with this document. Examples of standards; the outcome of current and future Cooperation Agreement and any disruption that information, future events or otherwise. forward-looking statements include, among legal proceedings and regulatory investigations; may subsequently result in the UK and globally; others, statements or guidance regarding or the policies and actions of governmental and the risk of cyber-attacks, information or security relating to the Group’s future financial position, regulatory authorities; the Group’s ability along breaches or technology failures on the Group’s income levels, costs, assets and liabilities, with governments and other stakeholders to reputation, business or operations; the Group’s

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 139 report information sustainability report Governance review review statements Annual Report 2022 Our Purpose... Fulfilling We deploy finance responsibly to support people and businesses, acting with empathy and our integrity, championing innovation and sustainability, for the common good and the long term. Purpose and our Values… Respect Service Stewardship Integrity Excellence influence our strategy… Strategic priorities Our diversification, to sustain and grow built to deliver double-digit returns delivered through Group synergies... We work as one organisation to create synergies and deliver greater value. creating positive outcomes for our stakeholders. Customers Colleagues and clients Society Investors

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 140 report information sustainability report Governance review review statements Annual Report 2022 Contents Parts 1, 2 and 3 of Barclays PLC 2022 Annual Report together comprise Barclays PLC’s annual accounts and report for the purposes of Section 423 of the Companies Act 2006. Inside Part 1 Inside Part 3 Governance 141 Strategic report 1 Governance contents 141 Group overview 2 Prepared for the road ahead 3 Board Governance 142 Chairman’s introduction 4 Directors’ report 143 Chief Executive's review 6 Remuneration report 197 Our business model 10 Other Governance 246 Our strategy 12 Risk review 264 Section 172(1) statement 16 Risk review contents 264 Engaging with our stakeholders 21 Risk management 266 Key performance indicators 23 Material existing and emerging risks 269 Customers and clients Principal risk management 282 Supporting our customers and clients 26 Colleague Risk performance 296 Our people and culture 31 Supervision and regulation 370 Society Financial review 378 Making a difference 39 Financial review contents 378 Investors Key performance indicators 379 Summary financial review 45 Consolidated summary income statement 381 Barclays UK 49 Income statement commentary 382 Barclays International: Corporate and Investment Bank 52 Consolidated summary balance sheet 383 Barclays International: Consumer, Cards and Payments 54 Managing risk 56 Balance sheet commentary 384 Viability statement 58 Analysis of results by business 385 Non-financial information statement 60 Non-IFRS performance measures 392 ESG ratings performance 63 Financial statements 397 ESG-related reporting and disclosures 64 Financial statements contents 397 TCFD Content Index 65 Consolidated financial statements 416 Shareholder information 66 Notes to the financial statements 424 Key dates, Annual General Meeting, dividends, and other useful information 66 Inside Part 2 Climate and sustainability report 69 Introduction 70 Risks and opportunities 73 Implementing our climate strategy 77 Resilience of our strategy 127 Please note that throughout the document, graphical representation of component parts may not cast due to rounding

Governance Our governance framework facilitates the effective management of the Group across its diverse businesses. Board Governance Other Governance Directors’ report Climate and sustainability governance 247 Our Board of Directors 143 Managing impacts in lending and financing 253 Our Group Executive Committee 147 The Barclays Way 256 Our Governance Framework 149 Whistleblowing 257 Key Board Activities in 2022 154 Tax 258 Board Nominations Committee report 157 Financial crime 260 Board Audit Committee report 169 Health and safety 261 Board Risk Committee report 178 Managing data privacy, security and resilience 262 How we comply 186 Shareholder Q&A 188 Other statutory and regulatory information 190 Remuneration report 197

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 142 report information sustainability report Governance review review statements Annual Report 2022 Board Governance Welcome to our 2022 Board Governance report. The report sets out the composition of our Board and our Executive Committee and explains how our Board governance framework operates, alongside the key areas of focus of our Board and Board Committees in 2022. Aim of our governance Directors’ report The primary aim of our governance is that it: Our Board of Directors 143 • seeks to ensure that our decision-making is aligned to our Our Group Executive Committee 147 Purpose, Values and Mindset Our Governance Framework 149 • creates long-term sustainable value for our shareholders, having regard to the interests of all our stakeholders Key Board Activities in 2022 154 • is effective in providing constructive challenge, advice and Board Nominations Committee report 157 support to management Board Audit Committee report 169 • provides checks and balances and drives informed, collaborative and accountable decision-making. Board Risk Committee report 178 How we comply 186 Compliance with the Code Shareholder Q&A 188 • Our Board Governance report reflects the requirements of the Other statutory and regulatory information 190 2018 UK Corporate Governance Code (the Code). Remuneration report 197 • To view how we comply with the Code, please see pages 186 to 187. Certain additional information, signposted throughout this report, is available at home.barclays/corporategovernance

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 143 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Board of Directors Board Committee membership Guided by our Purpose, Audit Committee Member Nominations Committee Member Values and Mindset Remuneration Committee Member Risk Committee in leading the Group Member Committee Chair Nigel spent 36 years at Rothschild & Co. Skills, experience and contribution: Nigel Higgins where he was most recently Deputy • seasoned business leader with extensive Group Chairman Chairman. Prior to that he was Chairman of experience in, and understanding of, the Group Executive Committee and Appointed: banking and the financial services industry Managing Partner of Rothschild & Co. March 2019 (Board), May 2019 • strong track record in leading and chairing (Chairman) organisations Key current appointments: • significant experience in providing Chairman, Sadler’s Wells; Non-Executive strategic advice to major international Director, Tetra Laval Group organisations and governments • keenly focused on culture and corporate governance. Before joining Barclays in 2016, Venkat Skills, experience and contribution: C.S. Venkatakrishnan worked at JPMorgan Chase from 1994, • highly regarded leader with significant Group Chief Executive holding senior roles in Asset Management, global banking experience Investment Banking, and in Risk. Appointed: • extensive background in financial markets November 2021 and risk management Key current appointments: • deep understanding of the business and Board Member, Institute of International the areas within which the Group Finance; Advisory member to the Board, operates. Massachusetts Institute of Technology Golub Centre for Finance and Policy; Prior to his appointment as Group Chief Member of the UN Environment Programme Executive, Venkat served as Head of Global Finance Initiative Leadership Council Markets and Co-President of Barclays Bank PLC from October 2020 and Group Chief Risk Officer from 2016 to 2020. His other senior-level experience includes Skills, experience and contribution: Brian Gilvary serving on the boards of various commercial • extensive senior level experience of Senior Independent Director (SID) and charitable organisations. Brian was Chair management, finance and strategy Appointed: of The 100 Group of FTSE 100 Finance • deep experience of US and UK February 2020 (Board), January 2021 (SID) Directors, a member of the UK Treasury shareholder engagement Financial Management Review Board and has • significant experience with, and served on various HRH Prince of Wales' understanding of, the challenges and Business in the Community Leadership opportunities inherent in advancing a Teams. sustainable energy future. Key current appointments: Brian spent much of his career with BP p.l.c. in senior leadership roles, where he was Non-Executive Chair, INEOS Energy, an most recently Chief Financial Officer. INEOS group company

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 144 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Board of Directors (continued) Management for KPMG Europe LLP and as Skills, experience and contribution: Mike Ashley KPMG UK's Ethics Partner. Mike will retire • specialised knowledge of accounting and Independent Non-Executive Director from the Board with effect from the audit related matters conclusion of the 2023 AGM. Appointed: • extensive experience of auditing large September 2013 international financial institutions Key current appointments: • deep financial services and regulatory Member, Cabinet Office Board; Member, UK knowledge and experience. Endorsement Board; Treasurer, The Scout Association Mike previously worked at KPMG for over 20 years. Mike's former roles include acting as the lead engagement partner on the audits of large financial services groups including HSBC, Standard Chartered and the Bank of England, as Head of Quality and Risk Robert has robust risk management Skills, experience and contribution: Robert Berry expertise having had a 28-year career at • proven track record of management of Independent Non-Executive Director Goldman Sachs, where, prior to his risk exposure for a global financial retirement in 2018, he held the role of Co- Appointed: institution and building a modern group- Deputy Chief Risk Officer. February 2022 wide risk management organisation • strong record of integrating risk Key current appointments: management with strategy Board President, Alina Lodge • significant experience in finance, model development and trading. He had a distinguished career with Legal & Skills, experience and contribution: Tim Breedon CBE General, where, among other roles, he was • significant experience in strategic Independent Non-Executive Director the Group Chief Executive Officer until June planning 2012. Tim also served as Chair of the Appointed: • extensive financial services experience Association of British Insurers. November 2012 • detailed knowledge of risk management Key current appointments: and UK and EU regulation. Chairman, Apax Global Alpha Limited; Non- Tim is a member of the Board and is also Executive Director, Quilter PLC Chair of Barclays Bank Ireland PLC (also referred to as Barclays Europe). Prior to joining Barclays, Anna worked in both Skills, experience and contribution: Anna Cross banking and retail and held various roles at • extensive accounting and financial Group Finance Director Asda, HBOS and Lloyds Banking Group. services expertise Since joining Barclays in 2013, Anna was Appointed: • deep understanding of banking and retail appointed Chief Financial Officer of Barclays April 2022 sectors Bank UK PLC in 2016, Group Financial • significant financial leadership experience Controller in 2019 and Deputy Group of financial institutions. Finance Director in 2020. She joined the Group Executive Committee in February Anna is a chartered accountant and Group 2022, before taking up the role of Group Finance Director with responsibility for Finance Director in April 2022. Finance, including Tax, Treasury, Investor Relations and Strategy. Key current appointments: None

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 145 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Board of Directors (continued) Mohamed is a regular columnist for Skills, experience and contribution: Mohamed A. El-Erian Bloomberg Opinion and a contributing editor • highly respected economist and investor Independent Non-Executive Director at the Financial Times. He spent 15 years at • extensive experience in the asset the IMF where he served as Deputy Director Appointed: management industry and multilateral before moving to the private sector and January 2020 institutions financial services. • deep knowledge and understanding of international economics and financial Key current appointments: services sector. Lead Independent Director, Under Armour Mohamed currently serves as President of Inc.; Chief Economic Adviser, Allianz SE; Queens' College, Cambridge University. He Chairman, Gramercy Funds Management; is Chief Economic Advisor at Allianz SE, the Senior Advisor, Investcorp Bank BSC corporate parent of PIMCO (Pacific Investment Management Company LLC) where he formerly served as Chief Executive and Co-Chief Investment Officer. Her previous experience includes 25 years Skills, experience and contribution: Dawn Fitzpatrick with UBS, most recently as Head of • extensive management experience of Independent Non-Executive Director Investments for UBS Asset Management. international financial institutions Appointed: • strong financial and strategic leadership Key current appointments: September 2019 experience Chief Executive Officer and Chief • detailed knowledge of the markets in Investment Officer, Soros Fund which the Group operates. Management LLC; Member, Advisory Board and Investment Committee of the Open Dawn holds the role of Chief Executive Society Foundations’ Economic Justice Officer and Chief Investment Officer at Programme; Advisory Council Member, The Soros Fund Management LLC. Bretton Woods Committee In her executive career, Mary held senior Skills, experience and contribution: Mary Francis CBE positions with both HM Treasury and the • extensive board-level experience across a Independent Non-Executive Director Prime Minister's Office and served as range of industries Director General of the Association of British Appointed: • strong focus on reputation management Insurers. October 2016 and promoting board governance values Key current appointments: • detailed understanding of the interaction between public and private sectors. Senior Independent Director, PensionBee Group PLC; Member, UK Takeover Appeal Mary's previous appointments include Non- Board Executive Directorships at the Bank of England, Alliance & Leicester, Aviva, Centrica and Swiss Re Group. Crawford has held a number of roles during Skills, experience and contribution: Crawford Gillies his 30-year career including Managing • extensive business transformation and Independent Non-Executive Director Partner Europe of Bain & Company, Chair of management experience in international Scottish Enterprise and the Confederation Appointed: and cross-sector organisations of British Industry London (CBI) and Non- May 2014 • deep understanding and experience of Executive Director roles at both Standard stakeholder engagement Life and SSE. Crawford will retire from the • strong leadership qualities and expert at Board with effect from 31 May 2023. strategic decision-making. Key current appointments: Crawford is a member of the Board having previously held the roles of Senior Chairman, Edrington Group Independent Director and Chair of the Board Remuneration Committee. He is Chair of Barclays Bank UK PLC.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 146 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Board of Directors (continued) He joined HSBC in 2005 where he was Chief Skills, experience and contribution: Marc Moses Risk Officer for nine years and joined the • strong technical finance background in Independent Non-Executive Director group board as an executive director in accounting and audit-related matters 2014. He retired from HSBC in 2019. Appointed: • significant board and senior executive- January 2023 level risk management experience Key current appointments: • extensive knowledge of banking and None financial services. Marc was appointed to the Board on 23 January 2023. His financial services experience extends over 43 years, initially as a trader and then in senior executive roles as an audit partner at PwC, and Chief Financial Officer of JPMorgan Europe. Diane was previously Global Chief Skills, experience and contribution: Diane Schueneman Infrastructure Officer of Merrill Lynch, where • significant experience of managing global, Independent Non-Executive Director she was responsible for all technology and cross-discipline business operations and operations across retail, corporates and Appointed: client services in the financial services banking. June 2015 industry • strong transformational programme Key current appointments: experience None • extensive technology and information security expertise. Diane is Chair of Barclays Execution Services Limited and a member of the Board of Barclays US LLC. Julia was appointed as a Non-Executive Skills, experience and contribution: Julia Wilson Director at Legal & General Group PLC in • significant board and executive-level Independent Non-Executive Director 2011. She chaired L&G’s Audit Committee strategic and financial leadership between 2013 and 2016 and was Senior experience Appointed: Independent Director from 2016 until she • extensive accounting, audit and financial April 2021 stepped down from L&G in March 2021. Julia services expertise served as the Chair of The 100 Group of • strong UK regulatory experience. FTSE 100 Finance Directors from June 2020 until September 2022. Julia will take over the Julia is a chartered accountant and was the role of Chair of the Board Audit Committee Group Finance Director of 3i Group plc, having (subject to regulatory approval) with effect served on its board since 2008 until she from 1 April 2023. stepped down in June 2022. Prior to joining 3i she was Group Director of Corporate Finance Key current appointments: at Cable & Wireless where she also held a None number of finance-related roles. Africa, and subsequently in corporate law Relevant skills and experience: Stephen Shapiro and M&A at Hogan Lovells in the UK. He was Stephen is an experienced lawyer and company Group General Counsel appointed as Group Company Secretary of secretary with a deep understanding of legal, and Group Company Secretary Barclays in November 2017 and was corporate governance and regulatory matters. subsequently appointed Group General Appointed: Holding the combined role of Group General Counsel in August 2020, in addition to his November 2017 Counsel and Group Company Secretary, he role as Company Secretary. Stephen is an oversees Barclays’ global Legal and Corporate active industry contributor and serves as a Secretariat functions. Stephen is also a member of the GC100 Executive member of the Group Executive Committee. Committee, the association of General Counsel and Company Secretaries working Career: in FTSE 100 companies, having previously Stephen previously served as the Group served as Vice-Chair until January 2022. Company Secretary and Deputy General Stephen also previously served as Chairman Counsel of SABMiller plc. Prior to this, he of the ICC UK’s Committee on Anti- practised law as a partner in a law firm in South Corruption.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 147 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Group Executive Committee Continuing to lead the delivery of Barclays’ strategic priorities The right balance of skills and experience to lead the execution of the Group's strategy. A qualified chartered accountant, Anna has Standing attendees and As our most senior management worked in both banking and retail and had ex-officio posts committee for the Group, our Group previously held finance roles at leading Recognising the strategic importance of Executive Committee (ExCo) financial and retail institutions. our technology and cyber agenda, in supports the Group Chief Executive in Interim Group Chief Compliance Officer October 2022 we welcomed Craig Bright, executing the Group’s strategy. Matthew Fitzwater was appointed Interim our Chief Information Officer, as a As reported in our 2021 Annual Chief Compliance Officer and member of standing attendee to ExCo. Craig is Report, C.S. Venkatakrishnan (known ExCo with effect from 1 November 2022, responsible for Barclays’ technology as Venkat) was appointed as Group subject to regulatory approval, while we strategy, leading the delivery of our digital Chief Executive in November 2021, complete our search for a permanent transformation across both our consumer following which he made a series of successor. Matthew was most recently our and wholesale businesses. changes to the composition of ExCo General Counsel for Conduct, Customer ExCo continues to utilise ex-officio to bring together the right balance of and Client Affairs and brings to ExCo a positions on the Committee to broaden skills and experience to deliver for our wealth of legal and regulatory experience the scope of perspectives and stakeholders and to lead the from a career spanning the US and the UK. contributions made, as well as to provide execution of the Group's strategy. specialist input, with each appointee Changes to ExCo in 2023 Over 2022, we have seen how ExCo has serving for a four-month rotation. Group Chief Operating Officer supported the Group in enabling us to and Chief Executive, BX ExCo meetings are also attended on a deliver a robust performance. regular basis by the Group Chief Internal With effect from 1 February 2023, Alistair Changes to ExCo composition during Auditor, Lindsay O’Reilly. Currie was appointed Group Chief the course of 2022 and up to the date Operating Officer (subject to regulatory of this report are set out below, and remain subject to regulatory approval approval) and Chief Executive of Barclays We are grateful for the significant where stated. Execution Services Limited (BX). With his contributions made by the outgoing ExCo experience leading customer delivery, as members, as set out below. well as operational and business Changes to ExCo in 2022 Tushar Morzaria stepped down as Group transformation, Alistair is ideally placed to Finance Director in April 2022. Group Finance Director continue the momentum created by his Laura Padovani stepped down as Group predecessor, Mark Ashton-Rigby. Anna Cross joined ExCo on 23 February Chief Compliance Officer in October 2022. 2022, ahead of her appointment as Group Global Head of Consumer Banking Finance Director and Executive Director of and Payments Mark Ashton-Rigby stepped down as Group Barclays PLC (BPLC) on 23 April 2022. Chief Operating Officer and Chief Executive, Vim Maru was appointed Global Head of BX in January 2023. Anna brings significant skills and Consumer Banking and Payments with experience to ExCo, as set out in her effect from 1 February 2023, subject to biography on page 144. Anna joined the regulatory approval. Vim brings to Barclays Group in 2013 and held the role of Deputy deep experience of consumer banking and Group Finance Director from July 2020, a passion for leading the continued prior to which she was appointed Group evolution of our industry. Vim's leadership Financial Controller in 2019 and before will be a great asset to Barclays. that held the role of Chief Financial Officer for Barclays Bank UK PLC (BBUKPLC).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 148 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Group Executive Committee (continued) Group Executive Committee C.S. Anna Cross Paul Compton Alistair Currie Matthew Fitzwater Matt Hammerstein Venkatakrishnan Group Finance Global Head of the Group Chief Interim Group Chief Chief Executive Group Chief Director Corporate and Operating Officer Compliance Officer Officer, Barclays UK Executive Investment Bank and and Chief Executive, President of BBPLC BX Vim Maru Tristram Roberts Taalib Shaah Stephen Shapiro Sasha Wiggins Group Head of Global Head of Group Human Group Chief Risk Group General Public Policy and Consumer Banking Resources Director Officer Counsel and Corporate and Payments Company Secretary Responsibility Standing attendees Craig Bright Lindsay O’Reilly Chief Information Group Chief Internal Auditor Officer 2022/2023 Ex-officio posts b Koral Anderson Laura Barlow Susannah Parden Ingrid Hengster Interim Chief Group Head of Group Chief CEO, Operating Officer, Sustainability Accounting Officer Barclays Germany a Barclays UK a During her tenure as ExCo ex-officio, Koral Anderson held the role of Chief Procurement Officer. b Current ex-officio, February 2023.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 149 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Governance Framework A Group-wide governance framework facilitating effective decision making Driving long-term sustainable value for our shareholders, with regard to the interests of our stakeholders. Board Governance Framework Barclays PLC Board Responsible for the overall leadership of the Group (with direct oversight of matters relating to strategy, reputation and culture) Board Nominations Board Audit Board Risk Board Remuneration Committee Committee Committee Committee Reviews the composition of, Reviews financial reports and Monitors financial, Sets principles and and appointments to, the monitors the internal control operational and legal risk parameters of remuneration Board, Board Committees, environment appetite policy across the Group and ExCo For more information For more information For more information For more information + + + + see page 157. see page 169. see page 178. see page 197. • preserve constructive challenge, and Governance framework Group structure support and provide oversight of the The Board recognises that effective BPLC is the Group’s parent company and Group’s major subsidiary boards in the governance is key to the successful has a premium listing on the London Stock UK, Ireland and the US, consistent with development and execution of the Group’s Exchange. the legal, regulatory and independence strategy. We think of governance as how the Each of the Group’s key operating entities – requirements applicable to those Board makes decisions and provides Barclays Bank PLC (BBPLC), BBUKPLC, entities. oversight in order to promote Barclays’ Barclays Europe, Barclays US LLC and Generally, there is one set of rules for the success for the long-term sustainable benefit Barclays Bank Delaware – has its own board Group. Group-wide frameworks, policies of our shareholders, having regard to the (with Executive and Non-Executive Directors) and standards are adopted throughout the interests of our key stakeholders (including and Board Committees. Group unless local laws or regulations, for our clients, customers, colleagues and the These main operating companies are example, the ring-fencing obligations society in which we operate). supported by our Group-wide service applicable to BBUKPLC, require otherwise, Our Group-wide governance framework, company, BX, which provides technology, or ExCo decides it would otherwise be described in this report, is designed to: operations and functional services to appropriate in a particular instance. • facilitate the effective management of businesses across the Group. the Group across its diverse businesses by our Group Chief Executive and his ExCo

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 150 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Governance Framework (continued) Corporate Governance How the Board discharged its responsibilities in 2022 Operating Manual Our Corporate Governance Operating Manual sets out how the Group’s entities (and their respective Boards and Board Committees) should interact with each other, while also providing guidance and clarity for management and Directors as to how these relationships and processes should work in practice. This is a dynamic document that continues to evolve with the changing nature of the Group. The role of the Board The BPLC Board sets the purpose, strategic direction and risk appetite for the Group and is the ultimate decision-making body for matters of Group-wide strategic, financial, regulatory or reputational significance. We partially consolidated and streamlined the membership of the BPLC and BBPLC Boards in 2019, to improve coordination and efficiency while reducing complexity and unnecessary duplication. As a result, membership of the BBPLC Board is a subset of the BPLC Board, with all members of the BPLC Board (except the SID, Chair of BBUKPLC and at least one other Non-Executive Director) also serving on the Board of BBPLC. We believe that having members of the BPLC Board serve as the Chairs of some of the Group’s main subsidiaries supports improved coordination, efficiency and escalation, whilst enabling an appropriate focus on matters relevant to each entity. Spotlight Board members also participated in • the Group Chief Executive held Board engagement events with other stakeholders. engagement sessions with with stakeholders These engagements bring valuable colleagues, including quarterly The Board strongly believes in the value outside perspectives to the Board. Group results town halls, Business of engaging directly with our stakeholders and Function town halls, and Other Board engagement with and in 2022 Board members continued to Employee Resource Group stakeholders in 2022 included: engage with our shareholders, including sessions extensive engagement by our Chairman • a site visit to the Barclays Radbroke • the Group Finance Director and SID ahead of the 2022 AGM. The campus to meet colleagues and participated in colleague events, Chairman also met with institutional explore first-hand their skills, including during Multi-Generational investors throughout the course of the experience and career aspirations Week and Women in Junior year, and the Group Chief Executive and • the Board held a reception with Banking events. She also met with Group Finance Director held briefings senior female leaders in New York, environmentally-focused with investors at each set of quarterly together with members from the companies that Barclays is results. Boards of Barclays US LLC and supporting The Board recognises that our colleagues Barclays Bank Delaware • Mohamed A. El-Erian, Dawn are critical to our success, and our • the Chairman, Tim Breedon and Fitzpatrick and Brian Gilvary continued investment in them protects Crawford Gillies facilitated a Lifeskills participated in various colleague and strengthens our culture. In addition workshop at a London school and client events. to receiving formal updates about colleague engagement and sentiment, Further information about how we engage with + the Board also met colleagues to hear stakeholders can be found in the Strategic Report on pages 21 to 22. their feedback at various events held during the year.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 151 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Governance Framework (continued) You can read about the key activities of the Board Matters reserved to the Board Board effectiveness + during 2022 on pages 154 to 156. Matters reserved solely for the decision- We assess the effectiveness of our Board, You can read about how the Board considered the interests of our stakeholders in 2022 in our Section making power of the Board are set out in its Committees and individual Directors on 172 statement in the Strategic Report on pages 16 our bespoke Matters Reserved to the Board. an annual basis, in line with the to 20. Those matters include material decisions requirements of the Code. Following an relating to strategy, risk appetite, medium externally conducted evaluation in 2021, term plans, capital and liquidity plans, risk the Board, Board Committee and individual management and controls frameworks, Director effectiveness review for 2022 was approval of financial statements, approval carried out internally, led by our SID and of large transactions and the approval of supported by the Deputy Company share allotments, dividends and share Secretary. You can read more about the buybacks. 2022 effectiveness review, and progress against recommendations from the 2021 The Board has delegated the responsibility review, in the report of the Board for making and implementing operational Nominations Committee on pages 166 to decisions and running the Group’s 168. business on a day-to-day basis to the Group Chief Executive, supported by his ExCo. Attendance Directors are expected to attend every Board meeting. Where a Director was not able to attend a Board meeting, the relevant Director's views were made known to the Chairman in advance of the meeting. The Chairman also met privately, on a regular basis, with each Non-Executive Director. Scheduled Scheduled Ad hoc Ad hoc Independent/ meetings eligible meetings % meetings eligible meetings a Board attendance in 2022 Executive to attend attended attendance to attend attended Chairman b Nigel Higgins On appointment 14 14 100 % 5 5 Executive Directors C.S. Venkatakrishnan Executive Director 14 14 100 % 5 5 c Anna Cross Executive Director 12 12 100 % 3 3 Non-Executive Directors Mike Ashley Independent 14 14 100 % 5 5 d Robert Berry Independent 14 14 100 % 5 5 e Tim Breedon Independent 14 12 86 % 5 5 f Mohamed A. El-Erian Independent 14 13 93 % 5 2 g Dawn Fitzpatrick Independent 14 12 86 % 5 5 Mary Francis Independent 14 14 100 % 5 3 Crawford Gillies Independent 14 14 100 % 5 5 Brian Gilvary Independent 14 14 100 % 5 4 Diane Schueneman Independent 14 14 100 % 5 4 Julia Wilson Independent 14 14 100 % 5 5 Former Directors h Tushar Morzaria Executive Director 2 2 100 % 2 2 Notes a A number of the ad hoc meetings were called at short notice, which resulted in some Directors being unable to attend. b As required by the Code, the Chairman was independent on appointment. c Anna Cross was appointed to the Board with effect from 23 April 2022. d Robert Berry was appointed to the Board with effect from 8 February 2022. e Tim Breedon was unable to attend the two meetings (held on consecutive days) due to illness. f Mohamed A. El-Erian was unable to attend due to a prior commitment. g Dawn Fitzpatrick was unable to attend the two meetings (held on consecutive days) due to a bereavement. h Tushar Morzaria stepped down from the Board with effect from 22 April 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 152 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Governance Framework (continued) Division of responsibilities Roles on the Board and Charter of Expectations In line with the provisions of the Code, a clear division of responsibilities has been established between Executive and Non-Executive Directors, as shown in the table below. Our Charter of Expectations sets out individual role profiles and required behaviours and competencies for the Chair, SID, Non- Executive Directors, Executive Directors and Committee Chairs. We review our Charter of Expectations annually, to ensure it remains relevant and accurately reflects the requirements of the Code, the Companies (Miscellaneous Reporting) Regulations 2018 and industry best practice. Role on Board Responsibilities As Chair, Nigel Higgins is responsible for: Chair • leading the Board and its overall effectiveness in directing the company • demonstrating objective judgement • promoting a culture of openness and inclusion, and facilitating and encouraging open constructive challenge and debate between all Directors, and which challenges executives where appropriate • ensuring the Board as a whole has a clear understanding of the views of shareholders • facilitating constructive board relations and the effective contribution of all Non-Executive Directors • ensuring Directors receive all information in an accurate, timely and clear form that is relevant to discharge their obligations • developing and monitoring, with the support of the Board Nominations Committee, effective induction, training and development for the Board. You can read more about the skills and experience Nigel brings to the Board in his biography + on page 143. As the Group Chief Executive, Venkat is supported in his role by the ExCo, and leads the Executive Directors in: Group Chief Executive • making and implementing operational decisions and running the Group's business on a day-to-day basis • leading Barclays towards the achievement of its strategic objectives and implementing the strategy decisions taken by the Board • assisting the Board in considering strategic issues, and ensuring that decisions taken are in the Group's best interests • actively promoting and demonstrating the appropriate culture, values and behaviours of the boardroom, including upholding Barclays' Values and Mindset. You can read more about the skills and experience Venkat brings to the Board in his biography + on page 143 and can find further information on the membership of ExCo on page 148. As our SID, Brian Gilvary: Senior Independent Director (SID) • provides a sounding board for the Chair, serving as a trusted intermediary for the other Directors and shareholders when necessary • is available to shareholders if they have any concerns which contact through the normal engagement channels has failed to resolve, or for which such contact is inappropriate • maintains contact with major shareholders to understand their issues and concerns, and supports the Chair in ensuring the Board is aware of the views of major shareholders • leads the Non-Executive Directors in meeting at least annually to appraise the Chair's performance, and on other occasions as necessary. You can read more about the skills and experience Brian brings to the Board in his biography + on page 143. Our Non-Executive Directors have responsibility for: Non-Executive Directors • providing effective oversight, strategic guidance and constructive challenge, helping to develop proposals on strategy and then empowering the Executive Directors to implement the Group’s strategy while scrutinising and holding to account the performance of management and Executive Directors against agreed performance objectives • having a prime role, led by the Board Nominations Committee, in appointing and, where necessary, removing Executive Directors, and in succession planning for these roles. You can read more about the skills and experience each of our Non-Executive Directors bring + to the Board in their biographies on pages 144 to 146. You can find a copy of our Charter of Expectations , which sets the role profiles and required competencies for each of the roles + described above, at home.barclays/who-we-are/our governance/board-responsibilities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 153 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Our Governance Framework (continued) The Board was kept informed of key Board Risk Committee and Board Information provided business developments throughout the Remuneration Committee - each of which to the Board year through regular updates from the has its own terms of reference clearly Our Chair is responsible for setting the Executive Directors and senior executives, setting out its remit and decision-making Board’s agenda, primarily focused on in addition to the presentations delivered powers. This structure allows the Board to strategy, performance, value creation, to the Board and the Board Committees as spend a significant proportion of its time culture, stakeholders and accountability, part of formal meetings. focusing on the strategic direction of the and ensuring that Board members receive Group. You can read more about the Board’s key activities in timely and high-quality information to + 2022, including updates received, on pages 154 to 156. The Board Committees are comprised enable them to make sound decisions and solely of Non-Executive Directors, in line promote the success of BPLC. Where required to enable them to fulfil with best practice, and cross-membership their obligations as members of the Board, Our Group Company Secretary, working in between each Committee is shown in the Directors are able to seek independent collaboration with the Chair, is responsible for table below. and professional advice at Barclays’ ensuring good governance and information expense. flow, to support the Board’s effectiveness. In The Chairs of each Committee report on 2022, we continued to strive for simplicity and their Committee’s work at every Board Board Committees clear focus in the Board’s agendas, papers meeting and provide periodic written The Board is supported in its work by its and presentations, building on progress updates to the Board on the work of the Committees - the Board Nominations made in previous years. Committee. Committee, Board Audit Committee, You can read more about the Board Committees, their + membership and their work during 2022 later in this report. Board Committee cross-membership in 2022 The table below shows the number of cross-memberships of the Non-Executive Directors across the Board Committees as at 31 December 2022. Board Audit Board Nominations Board Remuneration Committee Committee Committee Board Risk 4 4 2 Committee Board Remuneration 1 Committee Board Nominations 2 1 Committee

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 154 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Key Board Activities Key Board Activities in 2022 Keenly focused on strategy and promoting our Purpose, Values and Mindset to drive the long-term success of Barclays. Against the backdrop of a changing Spotlight macroeconomic and geopolitical environment in 2022, the Board retained In September 2022, the Board received New FCA Consumer Duty its focus on Barclays’ strategy, working an update on the Consumer Duty rules In July 2022, the Financial Conduct with the Group Chief Executive and his and noted its support for the FCA’s Authority (FCA) confirmed the final details leadership team to drive forward the policy objectives in the implementation of its new Consumer Duty aimed at implementation of the Group’s strategy as of the Consumer Duty and its setting higher and clearer standards of set by the Board. We commend the work requirement for board engagement consumer protection across financial of our thousands of colleagues across the within firms. The Board discussed how services and requiring firms to deliver globe in delivering a strong financial the rules apply across the organisation, good outcomes for customers and performance during these challenging the proposed governance structure to clients. The FCA has emphasised that the times. Furthermore, with the challenges of support implementation across the successful application of the Consumer increased cost of living, and many facing Group, and the Board’s role in providing Duty requires a cultural shift within the financial pressure, we are proud of the Group-wide, holistic oversight. The financial services sector, with firms steps that Barclays has taken to ensure Board received regular updates on the embedding the Consumer Duty across all that our customers and clients are approach and activities undertaken relevant businesses, customer channels, supported at this critical time. You can across the Group to prepare for the conduct risk management processes, read about what we've done in our Section implementation of the Consumer controls and governance structures at all 172 statement in the Strategic Report. Duty. It also endorsed the appointment organisational levels. Within our overarching consideration of of board-level Consumer Duty Monitoring the development of the Group strategy matters, the Board Champions to key in-scope subsidiary Consumer Duty, assessing its continued to give significant consideration boards, including BBPLC and application to the Group and planning to our climate strategy in an evolving BBUKPLC. for the first implementation deadline of landscape of environmental, legal, 31 July 2023 have been a focus for the regulatory and social considerations. Board in 2022, with many of the Engagement with our shareholders and requirements of the Consumer Duty other stakeholders continues to be a key being aligned with the Group’s existing area of focus for the Board, and we were priorities, including: delighted for the first time since the onset of COVID-19 in early 2020 to welcome • the Barclays UK Customer Strategy back shareholders in person at our AGM in to provide exceptional service and 2022, while at the same time providing the insights to customers; and ability for shareholders to attend online. • The Barclays Way, Barclays' Values The Board spent significant time and Barclays Mindset initiatives. throughout 2022 in both scheduled and ad hoc meetings considering the impact of a Board allocation of time (%) the Over-issuance of Securities and the Group's response to it, including through b 2022 2021 the work of its Risk and Audit Committees. Strategy formulation and n implementation monitoring In addition, the Board Remuneration 46 60 Finance (including capital and liquidity) Committee has reflected the impact of the 20 14 n Over-issuance of Securities in its Governance and risk n (including regulatory issues) 31 23 remuneration decisions, including the Other (including remuneration) 3 4 n determination of the Group incentive pool and the incentive outcomes for the Notes a The percentages are subject to rounding and therefore may not equal 100% when rounded. Executive Directors. Details can be found b The allocation of time in 2022 includes the time spent by the Board considering the impacts of the Over-issuance of Securities at on page 201 of the Remuneration report. scheduled and ad hoc meetings. Please see page 188 for further information about the Over-issuance of Securities. You can read more about the key areas of Board focus in 2022 in the rest of this section.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 155 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Key Board Activities (continued) Strategy formulation and monitoring Topic Board activity Key decisions • Held regular business strategy sessions at meetings üApproved the Group's strategy. Strategic throughout the year and its annual corporate strategy review üApproved the 2022 Medium Term Plan (MTP). session. • Received Business/Function reviews to understand risks and opportunities in key business areas, including the Corporate and Investment Bank, US Consumer Bank, Private Bank and Barclays UK. • Participated in focus sessions on key ‘horizontal topics’ such as cyber, data and climate to understand the impact of these on the Group and where opportunities and risks may arise. • Considered the proposal to acquire Kensington üApproved the acquisition of Kensington Mortgage Strategic Mortgage Company and its strategic fit within the Group. Company. This transaction was also approved separately acquisitions by the Board of BBUKPLC. üApproved the Barclays Risk Appetite Statement. • Considered the Group’s overall risk profile and emerging Macroeconomic risk themes in view of events in both the macroeconomic and geopolitical üApproved the annual review of the Group Enterprise Risk and geopolitical environment, including rising rates and Management Framework. environment inflation and the increased cost of living. Oversaw the Details of the Board's response to the war in Ukraine are set Group's response to these pressures, including providing + out in our Section 172 statement in the Strategic Report on assistance to customers facing financial pressures and page 20. responding to the impacts of the war in Ukraine. Building an inclusive and equitable culture Topic Board activity Key decisions • Received updates on Group culture and colleague üConfirmed that Barclays' workforce policies and practices Culture, including engagement, including by way of the 'Your View' survey are consistent with Barclays' Values and support Barclays' Mindset results and monthly pulse surveys. long-term sustainable success. • Tracked management's progress in embedding the You can read more about the Board's engagement with Barclays Mindset - Empower, Challenge and Drive - + colleagues and other stakeholders during 2022 on page 150. through detailed measurements including the Mindset Indices tracked within Your View results. • Considered updates on the impact of hybrid working, including colleague experience of hybrid working to understand what works well for colleagues remotely and on site. • Received and considered updates on Barclays’ DEI- üApproved an updated Board Diversity Policy in December Diversity, Equity focused ambitions and activities, including the Race at 2022, which reflected new board diversity targets aligned and Inclusion Work Ambition, the Gender Ambition and progress with the FTSE Women Leaders Review and those set out in (DEI) towards creating an inclusive and equitable workforce to the FCA's diversity reporting requirements. underpin business performance. You can read more about the updated Board Diversity Policy on + pages 161 to 162. • Received updates on the new gender diversity targets set by the FTSE Women Leaders Review and considered the new FCA 'comply or explain' disclosure requirements regarding diversity reporting. Sustainability and climate Topic Board activity Key decisions • Discussed updates received from the Group Head of üApproved the Group’s ESG report for 2021. Sustainability Public Policy and Corporate Responsibility, including on üApproved the Group’s Modern Slavery Statement for 2021. key government and regulatory policy, climate, and reputation risk. Climate For information about the Board's activities in relation to climate matters, please see our Section 172 statement in the Strategic Report + on pages 19 to 20 and the climate spotlight on page 249.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 156 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Key Board Activities (continued) Governance and regulatory matters Topic Board activity Key decisions • Considered the best way to facilitate engagement with üApproved holding a hybrid AGM for 2022, offering AGM shareholders at the 2022 AGM, having been unable to shareholders the ability to either attend in person or engage with shareholders in person for the previous two through an online portal, through which shareholders years due to COVID-19 restrictions. could also cast their vote. • Working closely with the Board Nominations Committee, üApproved the appointment of Anna Cross as the new Succession reviewed and shaped succession planning and proposed Group Finance Director. appointments for the Board, Board Committees and üApproved the appointment of Robert Berry as a Non- ExCo, having regard to the diversity targets adopted by Executive Director, Chair of the Board Risk Committee the Board and wider Group. and a member of the Board Audit Committee. For further information, please refer to the report of the Board üApproved changes to Board Committee membership, as + Nominations Committee on pages 157 to 168. outlined in the report of the Board Nominations Committee. Consumer Duty For information on the Board's oversight of the FCA's new Consumer Duty, please see the spotlight on page 154. + • Invited representatives from key regulators, including the üSupported continued direct engagement with key Regulatory FCA, Prudential Regulation Authority (PRA) and FRBNY, regulators to deepen relationships. engagement and to join meetings to hear first-hand their feedback and üEncouraged continued visibility from management over oversight observations. regulatory matters across the Group. You can read about the Board's response to the Over-issuance of Securities in our Section 172 statement in the Over-issuance of + Strategic Report on page 17 and in the Shareholder Q&A on pages 188 to 189. Securities • Discussed updates on cyber, cloud services and üApproved the Group Resilience Self-Assessment. Cyber operational resilience, including the new resilience policy üRequested that management conduct a ransomware requirements of the PRA and FCA. attack simulation. • Received reports from the Chair of the Board Risk Committee regarding Barclays’ participation in the PRA’s cyber stress test which assessed Barclays’ ability to respond to, and recover from, a severe but plausible cyber-attack and the results of that test and management actions. Finance Topic Board activity Key decisions • Assessed financial performance of the Group and its main ü Approved the Group’s Annual Report and Accounts for the Financial businesses through regular updates from the Group year ended 31 December 2021. statements Finance Director. üApproved financial results announcements at Q1 2022, HY 2022 and Q3 2022. • Considered the Group’s capital position and distributions üApproved a full year dividend for the year ended Capital policy. 31 December 2021 of 4.0p per ordinary share and a share distributions buy-back of up to £1bn. üApproved a half year dividend for the period ended 30 June 2022 of 2.25p per ordinary share and a share buy-back of up to £500m.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 157 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report Overseeing effective composition, succession and evaluation Supporting the continued delivery of the Group’s strategy through effective Board, Board Committee and ExCo composition, robust succession planning and evaluating Board performance. Introduction With its focus on effective Board, Board Board Nominations Committee Committee and ExCo composition, robust Committee membership Nigel Higgins succession planning and evaluating Board a Chair, Board Nominations Committee and meeting attendance during 2022 performance, the Committee plays a Meetings attended/eligible to attend crucial role in supporting the continued Member (including ad hoc meetings) delivery of the Group’s strategy. Nigel Higgins 5/5 The Committee’s work ensures that we 1 Mike Ashley 3/3 have a Board which strikes the right 2 Tim Breedon 2/2 balance of skills, experience and diversity 3 of background and opinion, is effective in Mohamed A. El-Erian 2/2 1 providing informed and constructive Crawford Gillies 3/3 challenge to management and acts fairly in Brian Gilvary 5/5 the interests of all of our stakeholders. Diane Schueneman 5/5 Key areas of focus 3 Julia Wilson 2/2 during the year Notes Committee membership in 2022 a There were three scheduled meetings and two ad hoc 1 Retired with effect from 1 September 2022. With the support of the Committee, the meetings of the Committee in 2022. 2 Retired with effect from 28 February 2022. Chair continued to oversee the execution 3 Appointed with effect from 1 September 2022. of our succession planning for the Board b Committee allocation of time (%) and its Committees in 2022, and this work 2022 2021 will continue as we move through 2023. 14 9 n Corporate governance As part of the Committee’s executive 14 19 n Board and Board Committee composition succession planning, we welcomed Anna 62 54 n Succession planning and talent Cross to the Board on 23 April 2022, when 11 11 n Board effectiveness she took up the role of Group Finance 0 7 n Other Director and Executive Director. Anna Notes b Including ad hoc meetings. The percentages are subject to joined the Group in 2013 and has worked in rounding and therefore may not equal 100% when rounded. a number of roles, most recently as Deputy Group Finance Director since Crawford Gillies will have completed nine Our former Group Finance Director, 2020. The Committee and the Board were years as a Non-Executive Director by the Tushar Morzaria, stepped down from that delighted to have identified, in Anna, such a time of our AGM, having joined the Board role and as a Director with effect from 22 strong internal successor, who was able to in 2014, and will be retiring (subject to re- April 2022. Tushar has remained with step immediately into the role, ensuring a election) shortly thereafter on 31 May Barclays, and was appointed as Chairman smooth transition and supporting our 2023. Mike and Crawford have supported of the Global Financial Institutions Group. Group Chief Executive and his leadership Barclays through a period of significant Tushar has been an invaluable member of team with the ongoing delivery of our change, both for the Group and for the the senior management team at Barclays Group strategy. industry, in the post-financial crisis period. since 2013, when he joined as Group Finance We also welcomed Robert Berry to the The Committee and the Board are Director, and he has played a significant role in Board, who joined as a Non-Executive enormously grateful for Mike and the rebuilding of the Group’s financial and Director on 8 February 2022, and as Chair Crawford's significant contributions to the operational resilience. The Committee and of the Board Risk Committee and a Group during the course of their tenures, the Board are grateful for his hard work and member of the Board Audit Committee and the work they have each undertaken are delighted that Tushar has a continuing with effect from 1 March 2022. Robert as valued members of the Board, and in role with Barclays. brings with him a wealth of risk their respective roles as Chair of the Board As announced on 23 January 2023, Mike management experience from his Audit Committee and Chair of the Ashley will be retiring from the Board at the distinguished career at Goldman Sachs. BBUKPLC Board in particular. conclusion of our 2023 AGM, having served With effect from 1 April 2023, Julia Wilson on the Board for more than nine years. Mike will succeed Mike Ashley as Board Audit has served on the Board since 2013 and is Committee Chair, subject to regulatory our Board Audit Committee Chair.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 158 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) approval. Having previously held the roles from 1 June 2023. He will succeed Membership and principal as Group Finance Director at 3i Group plc Crawford Gillies as Chair of BBUKPLC upon activities during 2022 and Chair of the Audit Committee of Legal taking up his appointment, subject to The Committee is composed solely of & General Group plc, the Committee and regulatory approval. Non-Executive Directors and is chaired by the Board are confident that Julia will make The Committee also oversaw a series of our Group Chairman. Details of an excellent successor to Mike as Board changes to Board Committee composition Committee membership, meeting Audit Committee Chair. during the course of the year, including attendance and allocation of time during We were also delighted to welcome Marc with regard to the membership of this 2022 are set out on page 157, and the Moses to the Board as a Non-Executive Committee, as described on page 160. Committee’s principal activities during the Director and member of the Board Audit year are set out below. In discharging its The Committee and the Board are and Risk Committees, with effect from 23 responsibilities, the Committee takes into confident that these changes will enhance January 2023. account feedback from key stakeholders, the Board’s effectiveness, bringing new and from Board discussions more widely. As previously announced on 23 January and diverse perspectives while also 2023, Sir John Kingman will take up his role providing valuable input and support to the as a Non-Executive Director with effect work of the Board Committees. Key activities in 2022 • Approval of the appointment of Anna • Approval of changes in Board • Approval of internally conducted 2022 Cross as Group Finance Director. Committee composition during the Board, Board Committee and individual year: Director effectiveness reviews, led by uvwx the SID with the support of the Deputy – Board Risk Committee: Tim Breedon • Approval of the appointment Company Secretary. stepping down (Chair and member), of Robert Berry as a Non-Executive appointment of Robert Berry (Chair {| Director. and member), and appointment of • Consideration of Director training and uvwx Julia Wilson (member) development. • Candidate evaluation for both – Board Audit Committee: z{| executive and non-executive current Appointment of Robert Berry • Review and approval of size, and future roles including review of core (member) composition and succession planning skills and (for internal candidates) – Board Nominations Committee: Tim for the Board and the Board scrutiny of internal feedback. Breedon, Mike Ashley and Crawford Committees, including updates on uvwx Gillies stepping down (members) and succession planning for the Group’s appointments of Julia Wilson and • Review of the balance of skills and main subsidiary company Boards. Mohamed A. El-Erian (members). diversity on the Board, and leading the uvxz search and recruitment process uvwxy (including conflict analysis) for potential • Review and recommendation to the • Review of ExCo composition and candidates. The Committee utilised Board for approval an updated Board succession planning, including review of external search consultants Spencer Diversity Policy in December 2022, the balance of skills and diversity on the Stuart and Egon Zehnder to facilitate including adopting an increased gender ExCo and for key successors. the targeted external mapping and diversity target and re-affirming the uvwxz search processes based on agreed and existing ethnic diversity target aligned reviewed criteria. • Review of recommendations and with the Parker Review on the ethnic suggested improvements arising from diversity of UK boards. Refer to page uvwxz” the 2021 Board effectiveness review. 161 for further information. • Review of Directors’ tenure and vz uv{| effectiveness, and identifying candidates for election or re-election at the AGM. uvxyz{| Committee responsibilities Ensuring the right individuals are appointed – in line with objective criteria – who can discharge the duties and responsibilities of Directors. u Planning for effective ExCo, Board and Committee composition, through focusing on appointment and succession based on merit and skill, through a diversity lens. v Leading candidate search and identification. w Regularly reviewing succession planning and recommendations for key executive and non-executive roles. x Monitoring time commitments for incoming and existing Directors to ensure sufficient time for effective discharge of duties. y Monitoring compliance against corporate governance guidelines and the Board Diversity Policy, including yearly review and any recommendations for enhancements. z Ensuring compliance by the Board with legal and regulatory requirements. { Agreeing the approach to individual Director, Board and Committee effectiveness reviews and implementing any required actions. | Considering and authorising, subject to ratification by the Board, conflicts of interest. }

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 159 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) Following Anna’s appointment to ExCo on Marc’s appointment reflects our Composition 23 February 2022, and prior to her taking commitment to strengthening the Board up her role as Group Finance Director on through the addition of further highly Regularly reviewing Board, Board respected individuals with recent and 23 April 2022, the Board was made aware Committee and ExCo composition of the Over-issuance of Securities. Anna relevant financial experience, in is a key responsibility of the was very much 'new in role' as our Group accordance with our skills-based Committee. Through frequently considering the skills, experience, Finance Director, and took a leading role in recruitment priorities. knowledge and diversity required the management and resolution of this for these roles, as well as the annual matter throughout the course of 2022, Board effectiveness evaluation (as Appointment of Sir John Kingman alongside our Group Chief Executive and outlined further below), the other members of his leadership team. As Committee is able to refresh its a Board, we would like to recognise the thinking on Board, Board hard work and dedication that Anna has Committee and ExCo composition shown through this challenging period. and establish a timeline for any proposed appointments. Changes to Board composition in You can find biographies for each Director, 2022: Non-Executive Directors + including details of the skills, experience and Robert Berry was appointed as a Non- knowledge they bring to the Board, and their Board Committee memberships and other Executive Director on 8 February 2022, Sir John Kingman will take up his role principal appointments on pages 143 to 146. and as Chair of the Board Risk Committee as a Non-Executive Director with and a member of the Board Audit effect from 1 June 2023. He will Committee with effect from 1 March 2022. Changes to Board composition in succeed Crawford Gillies as Chair of Robert brings significant skills and BBUKPLC upon taking up his 2022: Group Finance Director experience to the Board and to the appointment, subject to regulatory As reported above, Tushar Morzaria important role of Chair of the Board Risk approval. stepped down from the Board on 22 April Committee. He has extensive risk 2022 and was succeeded by Anna Cross, Sir John has a deep background in management experience, having worked in who took up the role of Group Finance financial services, gained from his the financial services industry for the Director and became an Executive executive and non-executive career, entirety of his 32-year career. The majority Director with effect from 23 April 2022, and will bring invaluable skills and of Robert’s career was spent with Goldman having joined ExCo on 23 February 2022. experience to the Board, and to the Sachs, where he became a Partner in 2008 Anna brings significant skills and Board of BBUKPLC. His experience and then Co-Deputy Chief Risk Officer in experience to the Board, as set out in her spans the public and private sector, 2016, prior to his retirement as a Partner at biography on page 144. Anna joined the with his former roles including senior the end of 2018. Following his retirement, Group in 2013 and held the role of Deputy positions at HM Treasury, as the first Robert was retained as an Advisory Group Finance Director from July 2020 Chief Executive of UK Financial Director with Goldman Sachs, remaining as until April 2022. Before that, she held the Investments Ltd (UKFI), and as Global a member of its Enterprise Risk role of Group Financial Controller, prior to Co-Head of the Financial Institutions Committee, during the period from which she was the Chief Financial Officer Group at Rothschild. Sir John is January 2019 to December 2019. for BBUKPLC. A qualified chartered currently Chair of Legal & General accountant, Anna has worked in both Group plc, and stepped down as Chair Changes to Board composition in banking and retail and previously held of Tesco Bank on 22 January 2023. 2023: Non-Executive Directors finance roles at leading financial and retail We welcomed Marc Moses to the Board as institutions. a Non-Executive Director and a member In considering Anna’s appointment, the of both the Board Audit Committee and Committee – and the Board – took into Board Risk Committee on 23 January account a number of factors, including her 2023. expanded leadership and commercial Marc brings a strong technical finance experience through her appointment as background with a deep knowledge of Deputy Group Finance Director. The banking and financial services. His financial Committee and the Board also had regard services experience extends to over 43 to the stability that Anna’s appointment as years in the industry, initially as a trader and an internal candidate would bring to the then in senior executive roles as an Audit Group’s key stakeholder groups, in Partner at PwC, and Chief Financial Officer particular shareholders, colleagues, and of JPMorgan Europe. He joined HSBC in customers/clients. 2005, and prior to retiring in 2019, was the Group Chief Risk Officer and an Executive Director of HSBC Holdings plc. Since formally retiring from HSBC, Marc has remained active, undertaking advisory work for start-ups and he is currently acting as advisor to a fintech company.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 160 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) Changes to Board Committee Changes to Board Committee Board size composition in 2022 composition in early 2023 As at 31 December 2022, the size of the Board, following the appointments of The Committee oversaw changes in Board As reported above, Julia Wilson will Robert Berry and Anna Cross, and the Committee composition in 2022, as succeed Mike Ashley as Chair of the Board resignation of Tushar Morzaria, was 13. outlined below. Audit Committee with effect from 1 April 2023, subject to regulatory approval. Julia With the appointment of Marc Moses on Board Risk Committee will also take on the role of Group 23 January 2023, the size of the Board Having chaired the Board Risk Committee Whistleblowers' Champion in her capacity increased to 14. Following the retirement for eight years, Tim Breedon retired from as Chair of the Board Audit Committee. of Mike Ashley from the Board at the that Committee on 28 February 2022. conclusion of our 2023 AGM, the Julia joined the Board Audit Committee on Robert Berry succeeded Tim as Chair of retirement of Crawford Gillies (subject to her appointment to the Board in April the Board Risk Committee on 1 March re-election at the AGM) shortly thereafter 2021. Her time as a member of the 2022. on 31 May 2023 and the appointment of Committee, together with her experience Julia Wilson was appointed as a member of Sir John Kingman on 1 June 2023, the size as former Group Finance Director at 3i the Board Risk Committee with effect of the Board will return to 13. Group plc and Chair of the Audit from 1 September 2022. Committee of Legal & General Group plc The Committee continues to consider Board Nominations Committee make her well-placed to take up this Board size as part of both its medium- and Tim Breedon retired from the Board important role. longer-term succession planning. The Nominations Committee on 28 February Committee remains confident that the You can read more about Julia, and the skills and 2022. Mike Ashley and Crawford Gillies size of the Board remains effective, taking + experience she will bring to the role of Board Audit retired from the Board Nominations into account the need to be small enough Committee Chair, in her biography on page 146. Committee with effect from 1 September to operate in an efficient and collaborative Marc Moses was appointed as a member 2022. manner but large enough to have an of both the Board Audit Committee and appropriate mix of skills and diversity and We welcomed Julia Wilson and Mohamed Board Risk Committee upon his to support succession planning, as well as A. El-Erian as additional members of the appointment as a Non-Executive Director the additional roles and responsibilities of Board Nominations Committee on 1 on 23 January 2023, as reported above. some of our Directors on Board September 2022. Committees, and on the Boards of BBPLC, The Board is grateful to Tim, Mike and BBUKPLC, Barclays US LLC, BX and Crawford for their valuable contribution to Barclays Europe. these Committees during their respective memberships. Board composition as at 31 December 2022 b Length of tenure (Chairman and Non-Executive Directors) Industry and leadership experience (number of Directors) (number of Directors) Financial services 4 13 Political/Regulatory experience 2 8 Current/Recent Chair/CEO 3 10 Accountancy/ 2 Auditing 4 a Operations/ n 0-3 years n 3-6 years n 6-9 years n 9+ years Technology 1 Retail/ 2 Marketing c International experience (number of Directors) Notes a Please refer to page 166 in relation to the tenure and continued independence of Tim Breedon and Mike Ashley, who have served on the Board for more than nine years. International 11 (UK) b Individual Directors may fall into one or more categories. c International experience is based on the location of the headquarters/registered office of a International 8 company, excluding entities within the Barclays Group. (US) International 7 (Rest of the World)

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 161 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) The Board gender diversity targets are We recognise that this continues to fall Diversity aligned with those set out the FTSE short of our 40% Board gender diversity Women Leaders Review, and the Board target but, as we continue to develop our Promoting and delivering diversity – ethnic diversity target is aligned with the Board succession planning, this of skills, regional and industry target recommended by the Parker Review Committee and the Board remain focused experience, social and ethnic Committee Report into the Ethnic on meeting the new gender diversity background, race, gender and other distinctions, such as cognitive and Diversity of UK Boards. targets by 2025 while continuing to bring personal strengths- is a vital the very best, diverse talent we can attract While the Listing Rules reporting element of the Committee’s role in to the Board. requirements are not yet mandatory for leading appointments and Barclays in the current reporting period, in The Committee and the Board also succession planning for the Board, December the Board adopted an updated recognise and embrace the clear benefits Board Committees and ExCo. Both Board Diversity Policy which is aligned with of diversity at Board Committee level. As the Committee and the Board the board diversity targets recommended at 31 December 2022, Board Committee consider increasing diversity by the FTSE Women Leaders Review and gender diversity was as follows: Board essential to maintaining our competitive advantage, driving continues to be aligned with the ethnic Audit Committee – 50% female, Board effective governance and mitigating diversity target in the Parker Review. Remuneration Committee – 67% female, the risk of ‘group think’. Board Risk Committee – 43% female and Please refer to our statements on Board gender and + ethnic diversity, as at the reporting reference date Board Nominations Committee – 40% of 31 December 2022, on this page and page 162. female. Further to the Committee’s recommendation, the Board adopted a Group-wide, Barclays remains committed The updated policy reaffirms that the revised version of the Board Diversity to its DEI vision and strategy, which was Committee will consider candidates on Policy on 15 December 2022. refreshed in 2022, and includes a series of merit against objective criteria with due guiding principles and strategic priorities In considering the proposed amendments regard to the benefits of diversity when designed to help Barclays deliver against to the policy, the Committee and the identifying suitable candidates for its core DEI agendas including its Gender Board had regard to the following voluntary appointment to the Board, and sets out Ambition, which is focused on improving targets recommended by the FTSE the Board gender and ethnic diversity gender diversity across Barclays. In 2022, targets detailed in the table at the bottom Women Leaders Review (which builds on Barclays announced its refreshed Gender the work of both the Hampton Alexander of this page. The Policy also confirms the Ambition of 33% representation of women and Davies reviews) on gender diversity Board's commitment to operating in a way in senior leadership roles - Managing which were published in February 2022: that supports diversity and inclusivity. Directors and Directors - by the end of • that FTSE 350 Boards and FTSE 350 Gender diversity 2025, having achieved its initial target of Leadership teams have a minimum of With the appointment of Anna Cross as 28% female representation in these roles 40% women’s representation; and Group Finance Director and Executive by the end of 2021. • that FTSE 350 companies should have Director, and Tushar Morzaria stepping at least one woman in the Chair or down as an Executive Director, as at 31 Senior Independent Director role and/or December 2022, Board gender diversity one woman in the CEO or CFO role. was 38% female. This fell short of our 40% target for Board gender diversity, but the Following publication of those targets, in Board satisfied the target contained within April 2022 the FCA published amendments the Board Diversity Policy of having at least to its Listing Rules which will require that one woman holding a senior board role. Barclays, in future reporting periods, include a ‘comply or explain’ statement in Following the appointment of Marc Moses its annual report stating whether it has on 23 January 2023, Board gender achieved certain board gender and ethnic diversity has, in the short term, fallen to diversity targets, and requiring that 36% female. With Mike Ashley retiring from Barclays disclose certain numerical data the Board at the conclusion of our 2023 relating to the gender identity and ethnic AGM, Crawford Gillies (subject to re- background of Board and ExCo members, election) retiring shortly thereafter on 31 You can find a copy of our Board Diversity policy together with an explanation of Barclays’ May 2023 and the appointment of Sir John + at home.barclays/who-we-are/our-governance/ approach to data collection for the our-framework-code-and-rules. Kingman on 1 June 2023, Board gender purposes of making the required diversity will return to 38% female. disclosures. Updated Board Diversity Policy - Targets To ensure that by 2025: Gender diversity target • the proportion of women on the Board is at least 40%; and • at least one of the following senior Board positions is held by a woman: Chair, Chief Executive, Senior Independent Director or Chief Financial Officer, And that this is maintained going forward. To ensure that at least one Board member is from a minority Ethnic diversity target ethnic background excluding white ethnic groups and that this is maintained going forward.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 162 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) 1 To achieve this ambition, Barclays has This initiative, first introduced in 2016, Diversified Board been building a strong pipeline of female broadens the scope of perspectives and talent at all levels through hiring initiatives contributions made to ExCo, while also Leadership balance and development programmes, as well as providing appointees with exposure to (number of Directors) reporting regularly to its senior leaders to matters of Group-wide significance and keep them informed on progress in this further leadership experience. In 2022, all Chairman 1 area (including detailed information about three holders of this position were female. Non-Executive Directors 10 hiring, promotion, and retention in their You can find details of ExCo membership, Executive respective business areas). As at 31 2 including ex-officio appointees during the Directors December 2022, female representation course of 2022, on page 148 and you can amongst Managing Directors and Gender balance find data on the percentage of females on Directors was at 29% globally, and Barclays (number of Directors) ExCo and within ExCo direct reports in Our is focused on continuing its efforts to people and culture section in the Strategic identify and develop female talent within Male Report on page 35. 8 Barclays and in the market. Further information will be made available Female 5 You can read more about Barclays' DEI in our Diversity, Equity and Inclusion vision and strategy and gender diversity at Report, which will be available on our Ethnic diversity Barclays, including data on the percentage website later in 2023. (number of Directors) of females in Barclays’ wider workforce in Our people and culture section on pages Ethnic diversity White 11 31 to 38. As at 31 December 2022, 15% of the Ethnic minority 2 background The Committee is also mindful of the Board (two members) were from a excluding white ethnic groups voluntary target recommended by the minority ethnic background (excluding FTSE Women Leaders Review of 40% white ethnic groups), meeting the Note: 1 Data as at 31 December 2022. female representation for ExCo and their recommendations contained within the direct reports by the end of 2025. As at 31 Parker Review Committee Report into the December 2022, female representation Ethnic Diversity of UK Boards and the among ExCo and their direct reports stood ethnic diversity target in the Board at 27%. Diversity Policy. While this falls short of the FTSE Women Alongside the Board, the Committee Leaders Review recommendation, continues to support the Group’s increasing gender diversity within both Multicultural agenda, including Barclays' ExCo and their direct reports, to ensure a Race at Work Ambition. Venkat, our Group diverse pipeline for ExCo succession, Chief Executive, has made a significant remains a key priority for Barclays and the contribution to Barclays’ diversity agenda. Committee and the hiring initiatives and Having achieved our Race at Work development programmes referred to ambition to double the number of Black above are part of the way in which we are Managing Directors globally from nine to looking to make progress against these 18 by 2022, in January 2023, we set a new targets. In 2022, Barclays continued to ambition to increase the population of have one ex-officio position on ExCo, with Managing Directors from each appointee serving for a four-month underrepresented ethnicities by at least rotation. 50% by the end of 2025. As described on page 155, the Board considered updates during the year on Barclays' progress on DEI initiatives, including our Race at Work Ambition. You can find more information on Barclays’ continued commitment to its Multicultural agenda, including data relating to ethnic diversity in Barclays' wider workforce, in Our People and Culture section in the Strategic Report on Pages 31 to 38.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 163 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) f o r a p p Independent external search firms Non-Executive Director Spencer Stuart and Egon Zehnder Process for independence supported our search for additional Non- A majority of our Board comprises appointments Executive Directors to complement the independent Non-Executive Directors, in range of skills on the Board in 2022, with In leading the process for Board and line with the requirements of the Code. diversity of background and opinion at the senior management appointments, The Committee considers the forefront of that search. Spencer Stuart the Committee promotes diversity independence of our Non-Executive of background and opinion, and and Egon Zehnder do not have any Directors on an annual basis, having regard ensures that all appointments are connection to Barclays or any of the to the independence criteria set out in the based on merit and objective Directors other than to assist with Code. As part of this process, the criteria, focusing on the skills, searches for executive and non-executive Committee reviews the length of tenure of experience and knowledge required talent. Open advertising for Board all Directors, which can affect for the Board’s effectiveness and to positions was not used in 2022. support the continued delivery of independence, and makes any the Group’s strategy. As reported above, we have recently recommendations to the Board welcomed Marc Moses to the Board, accordingly. Appointments to the Board are made following a formal, rigorous following our search for candidates with The Committee reviewed the and transparent procedure, recent and relevant financial experience, in independence of all Non-Executive facilitated by the Committee with line with our recruitment priorities Directors in 2022. The independence of the aid of external search described above. We also recently those who had served on the Board for consultancy firms, as outlined in announced that Sir John Kingman will join more than six years (Crawford Gillies and further detail below. the Board with effect from 1 June 2023, Diane Schueneman) and more than nine and will succeed Crawford Gillies as Chair years (Tim Breedon and Mike Ashley) was of the BBUKPLC Board upon taking up his subject to a more rigorous review. The Non-Executive Director appointment, subject to regulatory Committee remains satisfied that the recruitment approval. length of their tenure has no impact on As reported in our last Annual Report, the their respective levels of independence or You can read more about the appointments of Committee approved a series of skills- + Marc Moses and Sir John Kingman on page 159. the effectiveness of their contributions. based recruitment priorities in 2021, The Committee and the Board consider all reflective of the skills and experience In line with disclosures in our previous of the Non-Executive Directors to be anticipated to be required for the Board Annual Report, we continue to focus on independent. over the next three years, and which take identifying candidates with technology For further details of the Committee’s into account of the needs of the Board, its experience. review of the independence of Tim Committees and the business, as well as Breedon, Mike Ashley and Crawford Gillies, To ensure due consideration is given to ordinary course retirements of long- please refer to the Succession section strong potential candidates who would serving Directors. below. enhance the effectiveness of the Board, Based on the agreed priorities, the the Committee continues to review the During 2022, Tushar Morzaria stepped Committee has set rigorous criteria for the recruitment priorities and give further down from the Board. Tushar did not raise roles it is seeking to fill, both in terms of consideration to the desired skills and any concerns about the operation of the experience and personal qualities. experience for potential candidates. Board or management. Director appointments and re-appointments The Committee reviewed the Non-Executive Director selection and appointment process in 2022, Non-Executive Director which was refreshed in 2019, and concluded that no material changes were required to the current selection and appointment process. We continue to ensure that all Board members have the opportunity to meet potential process candidates where possible, and that searches for potential candidates should be coordinated across the Group’s significant subsidiaries where appropriate. Our standard practice is to appoint any new Non-Executive Director or Chair to the Board for an initial Director term three-year term, subject to annual re-election at the AGM (as outlined below). This may be extended for a further term of up to three years. As such, our Non-Executive Directors typically serve up to a minimum of six years, although this period may be extended where considered appropriate by the Committee. All Directors are subject to election or re-election (as appropriate) each year by shareholders at the Director re-election at the AGM AGM.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 164 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) On appointment, all Directors receive a Time commitment Conflicts of interest comprehensive induction tailored to their We ask all potential new Directors to In accordance with the Companies Act individual requirements, designed to disclose their other significant 2006 and BPLC's articles of association provide them with an understanding of commitments, which the Committee then (Articles), the Board has the authority to how the Group works and the key issues takes into account when considering any authorise conflicts of interest, and this that it faces. When designing each proposed appointment to ensure that ensures that the influence of third parties bespoke induction schedule, the Group Directors can discharge their does not compromise the independent Company Secretary consults the responsibilities to Barclays effectively. As judgement of the Board. Directors are Chairman, taking into account the well as attending and preparing for formal required to declare any potential or actual particular needs of the new Director. Board and Board Committee meetings, conflicts of interest that could interfere When a Director is joining a Board the Directors’ time commitment to with their ability to act in the best interests Committee, the schedule will also include Barclays includes allowing time to of the Group. an induction to the operation of that understand the business and complete A conflicts register is maintained, which is a Committee. training. We agree expected time record of actual and potential conflicts, commitments with each Non-Executive together with any Board authorisation of You can find details of new Director and Committee- Director on an individual basis. specific inductions delivered to Board members + the conflicts. The authorisations are for an during the course of 2022 on page 165. The Committee was comfortable that the indefinite period but are reviewed annually existing commitments disclosed by each by the Committee, which also considers of Marc Moses and Sir John Kingman the effectiveness of the process for ahead of their respective appointments authorising Directors’ conflicts of interest. would not impact their ability to devote The Board retains the power to vary or such time as is necessary to discharge terminate these authorisations at any their duties to Barclays effectively. time. All Directors must seek approval (providing Director training and an indication of expected time development commitments) before accepting any The Committee supports the Chairman in significant new commitment outside of developing and monitoring effective Barclays. Before approving any significant induction, training and development for new external commitment for a Director, the Board in accordance with its Terms of the Board reviews all relevant facts and Reference (available at home.barclays/ circumstances (including the expected who-we-are/our-governance/board- role and time commitment, as well as the committees). As well as Barclays providing nature of the external organisation). In Directors with the opportunity to take part 2022, all external appointment requests in ongoing training and development, were approved on the basis that the Board Directors can also request specific was satisfied with any actual or potential training, as required. conflicts and the Board was confident that An overview of existing training and the Director in question remained able to development arrangements for the Board devote such time necessary to discharge is described on the next page, which their duties to Barclays effectively. encompasses business and function Where circumstances require it, all reviews and horizontal topics to deepen Directors are expected to commit and broaden the Board’s understanding of additional time as necessary to their work the business. on the Board. For the year ended 31 December 2022 and as at the date of You can find details of training and development + delivered to the Board during the course of 2022 on publication, the Board is satisfied that none page 165. of the Directors is over-committed and that each of the Directors allocates sufficient time to their role in order to discharge their responsibilities effectively. A record of each Director’s time commitments is maintained.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 165 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) Training, development and updates for the Board in 2022 Topic Description Areas covered included Updates from key business areas and Group Business areas: Corporate and Investment Bank, Business and function functions, to deepen the Board’s understanding of Consumer Cards and Payments, Barclays UK, US reviews the Group businesses. Consumer Bank. Group functions: Risk, Markets, Legal, HR, Internal Audit, and Compliance. Updates covering areas relevant across the Group. Climate, cyber, Reputation risk, Mindset (including 'Horizontal topics' Culture), data strategy, whistleblowing, complaints, resilience and artificial intelligence. Regular updates on Public Policy and Corporate Reputation Risk matters (for which the Board has direct Public Policy and Responsibility matters. oversight) and a broad range of topics including Corporate Responsibility regulatory engagement and oversight, and climate and sustainability matters. Annual briefing on regulatory responsibilities. Senior Managers Regime and Barclays’ conduct and Regulatory financial crime policies and standards. responsibilities Regular updates on corporate governance. DEI matters, regulatory developments and Corporate governance cybersecurity disclosure obligations. Briefing for Board members (ad hoc). Competition law-related matters. Competition law External input to the Board. Attendance at Board meetings by external speakers and External speakers key regulators, enabling the Board to hear their feedback and observations. Various events enabling the Board to engage directly Board engagement with You can read more about the Board's engagement with with stakeholders. + stakeholders on page 150. stakeholders Committee-specific induction for Julia Wilson, Committee engagement, including sessions with the Committee specific following her appointment as a member of the Board Board Risk Committee Chair, Group Chief Risk Officer, inductions Risk Committee. Interim Group Chief Compliance Officer and Chief Controls Officer. Details of Robert Berry's induction, including in relation to his role as Board Risk Committee Chair, Briefings on Conduct, Reputation and Compliance and can be found in the table below. Legal risk, and various briefings with members of the Risk Executive Committee, as well as the Group Treasurer. New Director inductions delivered in 2022 Handover in accordance with Director Description Induction sessions included Meetings during induction period requirements of Senior Managers Regime (SMR) Tailored Executive • Board governance framework Series of meetings undertaken Formal SMR handover Anna Cross Director induction, and Directors’ duties. during Anna’s induction period, from Tushar Morzaria (as following Anna’s including: outgoing Group Finance • SMR and Conduct rules. appointment as Group Director). • Disclosure requirements • regular one-to-one meetings Finance Director and pursuant to the Market with the Chairman, Group Chief Executive Director. Abuse Regime and the Group Executive, and other members Securities Dealing Code. of the Board • induction meetings with senior executives from across the business. Tailored Non-Executive • The Group’s strategy and Series of meetings with various Formal SMR handover Robert Berry Director induction culture. senior executives from across the from Tim Breedon (as following Robert’s business during Robert's induction outgoing Board Risk • Stakeholder landscape and appointment as a Non- period including from Risk, Committee Chair). relationships. Executive Director, Chair Compliance, Finance, Legal, Internal • Governance matters. and member of the Board Audit, BX and Operations, • Briefings from the Chief Risk Risk Committee and BBUKPLC, Corporate and Officer and Chief Compliance member of the Board Investment Banking, and Consumer Officer (relevant to his Audit Committee. Banking and Payments. responsibilities as Board Risk Committee Chair).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 166 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) The Committee and the Board recognise Succession Evaluation the clear benefits for Group-wide decision-making of having the Chairs of Robust succession planning ensures Each year, the Committee plays a the Group’s significant subsidiaries sit on we have the right balance of skills, key role in ensuring that a formal the BPLC Board, bringing important insight experience and effectiveness on and rigorous review of the to Board discussions and connectivity with the Board, Board Committees and performance of the Board, the ExCo, embracing the clear benefits Board Committees and individual BPLC’s significant subsidiaries. With this in of diversity while also taking into Directors is undertaken in line with mind, given Tim’s ongoing role as Chair of account current and anticipated the requirements of the Code. e, the Group’s principal Barclays Europ future business needs. This includes European subsidiary, the Committee and Feedback from the 2022 internally contingency planning (for any facilitated effectiveness reviews the Board consider it is appropriate for Tim unforeseen departures or indicate that Board, Board to continue as an independent Non- unexpected absences), medium- Committees and individual Executive Director on the BPLC Board. term planning (orderly refreshing of Directors continue to be effective, The Committee and the Board are the Board, Committees and ExCo) as described below. and long-term planning (looking confident that Tim, Mike and Crawford ahead to the skills that may be remain independent and continue to Progress against the 2021 Board required on the Board and the ExCo provide effective challenge, advice and in the future). effectiveness review and process support to management on business for 2022 review performance and decision-making. Having undertaken a rigorous review of Tim, Mike Committee consideration of As reported in our last Annual Report, the and Crawford's performance as Non- 2021 Board effectiveness review was succession in 2022 Executive Directors and taking into externally facilitated, as required by the Succession remained a key focus for the account other relevant factors that might Code, by Christopher Saul Associates Board and Committee in 2022. The Board 1 be considered likely to impair, or could (CSA) . Recommendations from the 2021 and the Committee discussed succession appear to impair, their independence effectiveness review and actions taken in detail at regular points in 2022, in including as set out in Provision 10 of the during the course of 2022 to address them addition to discussions at formal Code, the Board considers Tim, Mike and are shown in the table on the next page. Committee meetings. Crawford to be independent. The 2022 Board, Board Committee and Mike Ashley had served on the Board for ExCo succession individual Director effectiveness reviews nine years as of September 2022, and were facilitated internally, in line with the The Committee reviews and discusses all Crawford Gillies will have served on the Code, and were led by the SID with the changes to ExCo prior to announcement, Board for nine years by the time of our support of the Deputy Company taking into account executive succession 2023 AGM . As reported above, Mike will Secretary. Further detail on the process is plans. remain on the Board until the conclusion of shown in the diagram on the next page. the AGM, at which he will not seek re- With regard to ExCo succession, Anna election and, subject to re-election at the Cross joined ExCo on 23 February 2022 2023 AGM, Crawford will retire from the ahead of succeeding Tushar Morzaria as Board shortly thereafter on 31 May 2023. Group Finance Director on 23 April 2022. As at 1 November 2022, Tim Breedon had Laura Padovani stepped down as Group served on the Board for ten years. As Chief Compliance Officer on 31 October Note: reported in our 2021 Annual Report, the 2022 and was succeeded by Matthew 1 As reported in our 2021 Annual Report, the Committee considered CSA's independence prior to the firm's Committee undertook a rigorous Fitzwater on an interim basis with effect appointment and was confident that CSA would not be assessment and concluded that it from 1 November 2022, subject to constrained in its ability to express an independent view as external facilitator. For further details, please refer to page remained appropriate for Tim to continue regulatory approval. 129 of the Barclays PLC 2021 Annual Report. to serve on the Board beyond his nine-year Mark Ashton-Rigby stepped down as tenure. A similar review has been Group Chief Operating Officer and Chief undertaken this year and the Committee Executive, BX in January 2023, and was and the Board remain satisfied that Tim's succeeded by Alistair Currie with effect breadth of financial services sector from 1 February 2023, subject to experience and deep knowledge of risk and regulatory approval. regulatory issues continues to bring Vim Maru was appointed Global Head of significant value to Board discussions, and Consumer Banking and Payments with that his continued tenure as a Non- effect from 1 February 2023, subject to Executive Director is advantageous to regulatory approval. Group-wide decision making and is appropriate in the near-term. You can read more about the changes to + ExCo during the year on page 147.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 167 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) Progress against the 2021 Board effectiveness review The recommendations from the 2021 Board effectiveness review and actions taken during the course of 2022 to address them are shown in the table below. Recommendations Areas Actions taken during the year from the 2021 evaluation Consider how the approach to Board • A refreshed approach consisting of Business and Function reviews and Board deep dives deep dive sessions might be 'horizontal topics' was designed to provide targeted consideration of each refreshed. key area and to provide the Board with an holistic view of the business. • You can read more about the topics considered in these sessions on page 165 of this report. Review how Board agendas might • The Board reviewed and made changes to its approach to considering Corporate strategy focus more on corporate strategy as corporate strategy, reviewing a series of themes and questions in the lead up we move away from matters focusing to the annual corporate strategy review in September 2022, and the detailed on the COVID-19 pandemic. MTP discussion in November 2022. Consider how to increase input to the • During 2022, the Board sought opportunities to obtain outside perspectives Outside perspectives Board from thought leaders, on key matters, including inviting external speakers to discuss with the Board customers and others to provide topical issues, including the US regulatory and political environment. relevant outside perspectives. • The Board has also invited its principal regulators to meet with Board members to discuss their feedback and views on Barclays. • During the course of this year, the Board has also received feedback from customers, clients and other stakeholders through participation in events such as conferences and regulatory round tables and visits to Barclays businesses and sites, including a visit to the Radbroke campus following the 2022 AGM. You can read more about these on page 150. Continue to make Board papers • The Chairman continues to encourage management to ensure that their Board materials shorter and more focused. papers are as concise as possible and focused on the matters of relevance to the Board and on key questions for discussion. Board, Committee and individual Director evaluation process

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 168 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Nominations Committee report (continued) • continue to identify opportunities to The Committee’s interaction with the Board effectiveness review bring external perspectives into the Board, Board Committees and senior The 2022 Board effectiveness review Board. management is considered effective. The followed a structured interview process review noted that all Non-Executive with Board members. Review of Committee Directors had been invited to participate in effectiveness The full and frank feedback of interviewees certain Committee discussions during the provides important input into the further The 2022 effectiveness review of each course of the year, which was considered development of the performance and Committee was facilitated internally, as helpful, as was the approach of ensuring effectiveness of the Board, in particular in permitted by the Code. The internal review more strategic matters were discussed identifying areas in which the Board could involved completion of a tailored with the Board. be more effective. This feedback is shared questionnaire by Committee members Feedback indicated that concurrent with the Chairman and the other members and senior management. The review is an meetings of the BPLC and BBPLC Board of the Board by reference to the key important part of the way Barclays Nominations Committee continue to be themes and recommendations that have monitors and improves Committee appropriate. been identified. performance and effectiveness, maximising strengths and highlighting Individual Director effectiveness Feedback from 2022 review areas for further development. The results Feedback from this review indicated that All Directors in office at the end of 2022 of the review for the Committee are set the Board is operating well and effectively, were subject to an individual effectiveness out in the next section. with Board members commenting review. The Chairman considered each In addition to reviewing its own favourably on the open and collaborative Director’s individual contribution to the effectiveness, the Committee also culture of the Board, supported by the Board as well as any feedback received as reviewed the outcomes of the values-driven and inclusive style of the part of the broader Board and Committee effectiveness reviews conducted by the Chairman. The review indicated that Board effectiveness reviews. Board Audit, Remuneration and Risk composition is considered to be a The reviews were conducted by the Committees, which had also been strength, bringing together a range of Chairman and the Chairman’s review was conducted by way of tailored diverse and complementary backgrounds conducted by the SID. questionnaires. You can read about those and expertise. The Chairman’s critical role Based on these reviews, the Board reviews in the individual Committee in supporting the transition of the new accepted the view of the Committee that reports elsewhere in this Board Group Chief Executive and Group Finance each Director to be proposed for election Governance report. Director was commented on favourably, or re-election at the 2023 AGM continues with the review highlighting the positive Following consideration of the findings of to be effective and contributes to Barclays’ relationship between the Board and the 2022 Board and Board Committee long-term sustainable success. management, and an appropriate level of effectiveness reviews, the Committee support and challenge to management. Except for Mike Ashley, all of the current remains satisfied that the Board and each Directors of the Company, who will be Recommendations from 2022 review of the Board Committees are operating continuing in office, and Marc Moses in his effectively. The 2022 review outlined the following key capacity as a Director from 23 January recommendations: 2023, intend to submit themselves for Review of Nominations • in the context of what is understandably election or re-election at the 2023 AGM Committee effectiveness a structured meeting agenda, Board and will be unanimously recommended by The 2022 Committee effectiveness review members would welcome the the Board for election or re-election as was facilitated internally in accordance with opportunity for more unstructured appropriate. the Code. This internal review involved discussion of key areas of focus for the completion of a tailored questionnaire by Board - whether in regard to particular Committee members and standing matters on the agenda or other macro attendees, in line with the approach or external developments since the adopted for all Board Committees in 2022. previous meeting The review is an important part of the way • consideration should continue to be Barclays monitors and improves given to the structure of Board agendas Committee performance and to ensure that time allocations are effectiveness, maximising strengths and appropriate highlighting areas for further development. • continued focus on ensuring balanced The results of the review confirm the papers which clearly identify substantive Committee is operating effectively. It is points and key issues for the Board’s considered well constituted, providing an attention effective and appropriate level of challenge • continued focus on Committee and oversight of the areas within its remit. reporting to the Board, to ensure the Feedback acknowledged progress during Board has the right level of visibility on the year with regard to executive key areas of focus succession planning. • continue to identify opportunities for The review noted that sufficient time is more informal engagement between allocated to the matters within the the Non-Executive Directors and senior Committee's remit to enable appropriate executives outside the boardroom discussion and challenge.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 169 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report Driving sustainable improvements to the internal control environment Overseeing the integrity of our financial disclosures and the effectiveness of the internal control environment. Dear Fellow Shareholders The Committee had a busy year in 2022, as Board Audit Committee it closely monitored the reporting of the Mike Ashley Committee membership Group’s financial performance in an a Chair, Board Audit Committee and meeting attendance in 2022 increasingly challenging macroeconomic Meetings attended/eligible to attend environment, while remaining focused on Member (including ad hoc meetings) driving sustainable improvements to the Mike Ashley 14/14 internal control environment. 1 Robert Berry 12/12 The Over-issuance of Securities was a Diane Schueneman 12/14 significant area of focus for the Julia Wilson 13/14 Committee in 2022 in terms of both the financial reporting and internal controls aspects. The Committee oversaw the restatement of the BPLC 2021 financial statements included in the amended Notes Committee membership in 2022 a There were 10 scheduled meetings and four ad hoc 1 Appointed with effect from 1 March 2022. Annual Report on Form 20-F for the year meetings of the Committee in 2022. Owing to prior ended 31 December 2021. The commitments, Diane Schueneman was unable to attend two ad hoc meetings and Julia Wilson was unable to Committee also carefully considered the attend one ad hoc meeting of the Committee. All ad hoc implications of the Over-issuance of meetings had been scheduled at short notice. Securities on the Group’s 2021 UK b Committee allocation of time (%) financial statements, ultimately concluding c 2022 2021 that these did not require refiling, although the prior year comparatives have been 12 11 n Control issues restated in this 2022 Annual Report and 15 20 n Business control environment 42 33 n Financial results Accounts so that the UK and US reported 7 8 n Internal audit matters figures are now aligned. The Committee 9 12 n External audit matters monitored together with the Board the 14 16 n Other launch and progression of the rescission b Including ad hoc meetings. The percentages are subject offer and its impact on the Group’s to rounding and therefore may not equal 100% when financial statements. The presentation of rounded. c The allocation of time in 2022 includes the time spent by the financial impact of the Over-issuance the Committee considering the Over-issuance of of Securities, including the associated Securities at scheduled and ad hoc meetings hedging, was a key consideration in the Committee’s review of the quarterly, half- The macroeconomic environment Committee received regular updates on year and full-year financial statements for remained challenging against a backdrop this and continued to monitor the progress 2022. Throughout the year, the of programmes aimed at strengthening of the increased cost of living, rising Committee monitored management’s the internal control environment across interest rates, relatively high inflation, remediation of the material weakness in the Group’s businesses. The Over- declining GDP and rising energy costs. The internal control over financial reporting issuance of Securities highlighted the need Committee received regular updates from (ICOFR) identified in respect of the Over- for further improvements both in specific the Group Finance Director and Group issuance of Securities. The Committee also controls and also the control mindset Chief Accounting Officer, and focused in monitored, towards the end of the year, the required at all levels in the organisation. In particular on management’s judgement on work carried out to address the specific addition to this specific issue, the credit impairment, post-model requirements of the SEC set out in its order Committee has continued to pay close adjustments and expected credit loss of 29 September 2022, and in early 2023 attention to a number of existing control considered the assurance work conducted (ECL) build. This is an area which the remediation and enhancement by Barclays Internal Audit (BIA) on the Committee will continue to monitor programmes. These continued to include matter. closely during 2023. significant work in the trading areas (as highlighted last year) and also on financial A key element of the Committee’s remit is crime controls. oversight of the Group’s internal control environment. Throughout 2022, the

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 170 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) The Committee provided oversight of an Consistent with previous years, I held financial statements (including the impact internal programme established towards regular meetings with the Chair of the of the discovery of the Over-issuance of Securities). The outcome of those the end of 2022 aimed at bringing together BBUKPLC Board Audit Committee to the more material remediation ensure I had visibility over any material and inspections are set out on page 176 of this programmes with a view to embedding emerging key issues impacting BBUKPLC. report. controls and lessons learned on a holistic Since my last report I have also had Committee effectiveness basis in order to achieve a consistently discussions with the Chairs of the Board The 2022 Committee effectiveness review excellent operating environment across Audit Committees of Barclays US LLC and was facilitated internally in accordance with the Group. The Committee encouraged Barclays Bank Ireland PLC, and attended a the Code. This internal review involved and challenged management to ensure meeting of the Barclays Bank Ireland PLC completion of a tailored questionnaire by that outcomes are delivered at the times Board Audit Committee and BBUKPLC Committee members and standing committed, but in a sustainable manner Board Audit Committee. I will be attending attendees, in line with the approach and that they drive a strong culture of the Barclays US LLC Board Audit adopted for all Board Committees in 2022. continuous improvement which is Committee when it meets to approve the The review is an important part of the way essential to keep pace with changes both financial results of the US holding company Barclays monitors and improves within the Group and in the external in March. I continued to meet frequently Committee performance and environment. with members of senior management, effectiveness, maximising strengths and including in particular the Group Finance As part of its determination of whether any highlighting areas for further development. Director and Group Chief Internal Auditor. control issues required specific disclosure As Committee Chair, throughout the year I The results of the review confirm the in this Annual Report, the Committee engage regularly with the Group’s key Committee is operating effectively. It is continued to apply similar concepts to regulators, including holding meetings with considered well constituted, providing an those used for assessing internal control representatives of the PRA and FRBNY. effective and appropriate level of challenge over financial reporting for the purposes of and oversight of the areas within its remit. the US Sarbanes-Oxley Act (SOx). The Barclays Internal Audit and The review noted that the Committee was Committee is satisfied that management external auditors considered to have the right level of skills has effectively remediated the material Given the key role of BIA in supporting the and experience, including recent and weakness relating to the Over-issuance of Committee’s work, I held regular monthly relevant financial experience. Securities and reached the conclusion that meetings with the Group Chief Internal there are no other control issues that are Feedback indicates that the Committee is Auditor and members of her senior considered to be a material weakness and considered to operate at the right level of management team to ensure that I had which merit specific disclosure for the year debate, whilst acknowledging the technical visibility of their programme of work and ended 31 December 2022. and detailed nature of the Committee’s key emerging issues. In early 2022, the discussions at times, which is reflective of The Committee has oversight of Barclays’ Committee commissioned Ernst & Young the nature of the matters within the whistleblowing programme and I to perform an independent External Committee’s broad remit. continued to act as the Group Quality Assurance assessment of BIA, Whistleblowers' Champion. During 2022, The review noted that the Committee’s which is required every five years. The the Committee scrutinised the results of a interaction with the Board, Board Committee was pleased to note the benchmarking review of Barclays’ Committees and senior management is report’s conclusions that BIA generally whistleblowing programme undertaken by considered effective, noting that sufficient conformed with industry standards and an independent third party aimed at time is allocated at Board meetings for the guidance, and was an independent and identifying areas where certain elements Chair to report to the Board on the work of effective function, a view also supported of the programme can be enhanced. the Committee. by feedback from our key regulatory Moving into 2023, the Committee will stakeholders. The Committee also Feedback indicated that concurrent oversee the enhancements to our conducted a performance assessment of meetings of the BPLC and BBPLC Board whistleblowing programme that are being BIA for 2022 and I am pleased to report Audit Committee continue to be effective, implemented by management. that the Committee was satisfied with with coverage of BBPLC matters within BIA's performance against its objectives As will be evident from the Strategic report concurrent meetings considered agreed with me at the beginning of the set out on page 15, Barclays’ climate adequate. Interaction with BBUKPLC year. strategy continues to be a significant area Board Audit Committee was also of focus for the Group. The Committee considered effective, confirming that the The relationship with the Group’s external provides oversight of the Group’s climate Committee continues to exercise auditor remains a key element of the and sustainability disclosures and was sufficient oversight of issues relevant to Committee’s role, and the Committee supportive of management’s decision to the Committee’s remit relating to welcomed a new lead audit engagement incorporate Barclays' TCFD disclosures BBUKPLC. partner, Stuart Crisp, for the 2022 financial into the 2022 Annual Report. Whilst the year following the retirement of the Changes to Committee Committee continues to monitor the previous lead audit partner. The composition impact of climate change on the Group’s Committee received regular updates on On 1 March 2022, we welcomed Robert financial statements, the impacts are not KPMG’s progress on the 2022 audit, as well Berry to the Committee and have material at this time. as on the joint inspection by the US Public benefited from his expertise and Company Accounting Oversight Board perspectives, including through his cross- (PCAOB) and the UK Financial Reporting membership as Chair of the Board Risk Council (FRC) Audit Quality Review (AQR) Committee. team of KPMG’s audit of Barclays’ 2021

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 171 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) Marc Moses recently joined the The Board, together with the Committee, Committee composition and Committee on taking up his appointment is responsible for ensuring the meetings as a Non-Executive Director of the Board independence and effectiveness of the The Committee is composed solely of on 23 January 2023. Marc brings a strong internal audit function and external independent Non-Executive Directors. technical finance background with a deep auditors. For this reason, the Committee Membership of the Committee is designed knowledge of banking and financial held a number of separate private sessions to provide the breadth of financial services. with each of the Group Chief Internal expertise and commercial acumen that Looking ahead Auditor and the lead KPMG audit the Committee needs to fulfil its engagement partner during 2022, without In 2023, it is anticipated that a key focus of responsibilities. Its members as a whole management present. The appointment the Committee will remain activities to have recent and relevant experience of the and removal of the Group Chief Internal enhance and strengthen the internal banking and financial services sector, in Auditor is a matter reserved to the control environment and overseeing addition to general management and Committee, and the appointment and management in closing out the more commercial experience; and are financially removal of the external auditor is a matter significant remediation programmes. The literate. Mike Ashley, the Committee Chair, reserved to the Board based on the Committee welcomes management's who is the designated financial expert on recommendation of the Committee. proposals to enhance the 2023 Risk and the Committee for the purposes of SOx, is Neither task is delegated to management. Control Self-Assessment (RCSA) process a former audit partner who, during his in view of lessons learnt from 2022 and see executive career, acted as lead this as a further step towards engagement partner on the audits of a Role of the Committee strengthening the internal control number of large financial services groups. The role of the Committee is to review environment. In respect of financial Read more about the experience of the current and monitor, among other things: reporting, the Committee’s focus will be + Committee members in their biographies on pages 144 to 146. on the ECL charge, impairment levels and • the integrity of the Group’s financial provisions to ensure they continue to statements and related During 2022, the Committee met 14 times reflect appropriately the macroeconomic announcements including four ad hoc meetings (2021: 11 conditions. The Committee will also be • the effectiveness of the Group’s times, including one ad hoc meeting) and considering the impact of the UK audit internal controls the chart on page 169 shows how the reforms and any steps that may need to be Committee allocated its time. Attendance • the independence and undertaken in preparation for the by members at Committee meetings is effectiveness of the internal and introduction of new legislation and also shown on page 169. Committee external audit processes regulation implementing the changes. meetings were attended by • the Group’s relationship with the I will be stepping down from the Board with representatives from management, external auditor effect from the conclusion of the 2023 including the Group Chief Executive, • the effectiveness of the Group’s AGM, and ahead of that, on 1 April 2023, Group Finance Director, Group Chief whistleblowing procedures. Julia Wilson will, subject to regulatory Internal Auditor, Group Chief Controls approval, succeed me as Chair of this The Committee’s Terms of Reference Officer, Group Chief Risk Officer, Group Committee and also as the Group are available at home.barclays/who- Chief Operating Officer, Group General Whistleblowers' Champion. Julia has we-are/our-governance/board- Counsel and Group Chief Compliance served as a member of the Committee committees. Officer, as well as representatives from the since her appointment to the Board on 1 businesses and other functions, and from April 2021, and has significant corporate BBPLC senior management reflecting the finance, tax and accounting experience partially consolidated operation of the including, amongst her other senior BPLC and BBPLC Committee meetings. executive and non-executive roles, serving The lead audit engagement partner of as Chair of the board audit committee at KPMG also attended Committee Legal & General Group PLC. Ahead of my meetings. stepping down from the Board, I will be working closely with Julia to ensure a smooth transition of my Chair role to her and I am confident that she will make an excellent Chair of the Committee. Finally, I would like to formally record my thanks to my fellow Committee members, members of senior management, BIA and our external auditors for their support during my tenure as Committee Chair. Mike Ashley Chair, Board Audit Committee 14 February 2023

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 172 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) Primary activities The Committee discharged its responsibilities in 2022 through monitoring the effectiveness of the internal control environment, and internal and external audit processes, as well as the integrity of financial statements and related announcements having regard to the current macroeconomic environment. Areas of focus Matters addressed Role of Committee Conclusion/action taken In light of a deteriorating macroeconomic In light of the Board’s obligation In addition to this Annual Report and Fair, balanced and under the Code, the Committee associated year-end reports, the Committee environment, including the increased cost understandable assesses external reporting to also reviewed the Group’s half-year and of living, and rising base rates and inflation, reporting ensure it is fair, balanced and quarterly reports and the presentations to the Committee closely considered the (including Country- by- understandable. analysts. The Committee informed these Group's disclosures, including in particular Country Reporting and reviews through: management’s approach to ECL and Modern Slavery impairment charges. • consideration of reports of the Disclosure Statement) Committee, which included views on The Committee scrutinised the disclosures content, accuracy and tone regarding the Over-issuance of Securities, and the impact of the Over-issuance of • direct questioning of management, Securities and the related rescission offer including the Group Chief Executive and on the financial statements. The Group Finance Director, on the Committee recommended to the Board transparency and accuracy of disclosures for approval the restated BPLC financial • consideration of management’s response statements for the year ended 31 to letters issued by the FRC and other December 2021, as filed with the SEC on industry reporting guidance 23 May 2022 in an amended annual report • evaluation of the output of the Group’s on Form 20-F. The Committee further internal control assessments and SOx recommended to the Board that it did not s404 internal control process believe that it was necessary or appropriate to revise the 2021 UK financial statements • consideration of the results of to reflect the impact of the Over-issuance management’s processes relating to of Securities. Instead, the prior year financial reporting matters and evidencing comparatives have been restated in this the representations provided to the 2022 Annual Report and Accounts to external auditors. reflect the impact of the Over-issuance of Securities. Having evaluated all of the available information, the assurances by management and underlying processes used to prepare the published financial information, the Committee concluded and recommended to the Board that the 2022 Annual Report and Accounts are fair, balanced and understandable. The Committee assesses the The Committee considered management’s Having regard to the distributable reserves Distributions and distributable reserves position. proposals for distributions (dividends and available to the Company, the Committee return of capital share buy-backs) for the full year ended 31 reviewed and reported to the Board on to shareholders December 2021 and for the half year ended proposals for (1) a dividend for the financial 30 June 2022. year ended 31 December 2021 of 4.0p per share along with a share buy-back of up to £1bn; and (2) a dividend for the half year ended 30 June 2022 of 2.25p per share, along with a share buy-back of up to £500m. In early 2023, the Committee reviewed and reported to the Board on the proposals for the full year dividend for the year ended 31 December 2022 along with a proposed share buy-back. Barclays is required to assess The Committee considered both the going The Committee recommended to the Going concern whether it is appropriate to concern assumption and the form and Board that the financial statements should and long-term prepare the financial content of the Viability Statement taking into be prepared on a going concern basis and viability statements on a going concern account: that there were no material uncertainties (refer to the Viability basis. In accordance with the that would impact the going concern • the MTP and Working Capital Report Statement on pages Code, Barclays must provide a statement which required disclosure. 58 to 59) • the forecast capital, liquidity and funding statement of its viability. The Committee recommended the profiles Viability Statement to the Board for • the results of stress tests based on internal approval. and regulatory assumptions • current risk and strategy disclosures.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 173 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) Areas of focus Matters addressed Role of Committee Conclusion/action taken Barclays makes certain With a view to evaluating the adequacy of the The Committee scrutinised management’s Conduct assumptions and estimates, provisions, the Committee analysed the approach to conduct provisions provisions analysis of which underpins judgements and estimates made with regards throughout the year and was satisfied that (refer to Note 24 to the provisions made for the costs of to Barclays' provisioning for legacy conduct management's judgement and approach financial statements) customer redress. issues. resulted in an adequate and appropriate level of provision in relation to the various conduct matters. ECLs are modelled using a range As part of its monitoring, the Committee The Committee reviewed, and was Impairment of of forecast economic scenarios. considered a number of reports from comfortable with, the judgement exercised financial They use forward-looking management on: by management in determining post- instruments models which require model adjustments, in particular in view of • the impact of the uncertain (refer to Note 8 to the judgements to be made over slowing GDP and rising unemployment. macroeconomic environment, delinquency financial statements) modelling assumptions, levels in the loan portfolios and impact of Having considered and scrutinised the including: rising interest rates and inflation reports, the Committee agreed with • the determination of management’s conclusion that the • model changes and model validation macroeconomic scenarios to impairment provision was appropriate. • refresh of the macroeconomic variables be used and associated weighting • the methodology for • adjustments made to the modelled output weighting of scenarios to reflect updated data and known model • the criteria used to determine deficiencies significant deterioration in • comparisons between actual experience credit quality and forecast losses. • the application of management adjustments to the ECL modelled output. The carrying value of goodwill The Committee reviewed the Group's The Committee was satisfied with Impairments of and intangible assets is goodwill balances and intangibles to identify management's determination that no Goodwill and assessed on the basis of any indicators of impairment. indicators of impairment had been Intangibles discounted forecast future identified. (refer to Note 22 to the earnings. Given the significant The Committee reviewed the disclosures financial statements) component of earnings made to ensure that the key sensitivities attributable to net interest and the potential impacts were income, such forecasts are appropriately highlighted. particularly sensitive to the level of long-term interest rates and assumed levels of future lending. The period over which intangible assets are amortised appropriately reflects the useful economic life. Barclays is engaged in various The Committee evaluated advice on the The Committee discussed provisions and Legal, legal, competition and status of current legal, competition and utilisation and, having reviewed the competition and regulatory matters which may regulatory matters. It considered information available to determine what regulatory give rise to provisioning based management’s judgements on the level of was both probable and could be reliably provisions on the facts. provision to be taken and accompanying estimated, the Committee agreed that the (refer to Notes 24 and disclosures. level of provision at the year end was The level of provisioning is 26 to the financial appropriate. The Committee reviewed the subject to management statements) disclosures made in respect of legal, judgement on the basis of legal competition and regulatory matters and advice and is, therefore, an area concluded that they provided appropriate of focus for the Committee. information for investors. Barclays exercises judgement in The Committee: The Committee scrutinised management's Valuations the valuation and disclosure of approach to valuation, including in (refer to Notes 13 to • evaluated reports outlining the Group's financial instruments, derivative particular the Principal Investments and 17 to the financial material valuation judgements assets and certain portfolios, Leverage Finance portfolios. statements) • received reports of the Valuation particularly where quoted The Committee was satisfied with the Committee. market prices are not available. accounting treatment in respect of the various matters. The Committee reviewed the disclosures made to ensure that the Level 3 sensitivities and the potential impacts were appropriately highlighted.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 174 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) Areas of focus Matters addressed Role of Committee Conclusion/action taken The Committee was satisfied that specific Barclays is subject to taxation in The Committee is responsible for considering Tax a number of jurisdictions globally the Group's tax strategy and overseeing strategies were in line with the Group's Tax (refer to Note 9 to the and makes judgements with compliance with the Group's Tax Principles. Principles and on behalf of the Board financial statements) regard to provisioning for tax at To support this, the Committee received approved the UK Tax Strategy statement risk and to the recognition and reports from the Global Head of Tax. published in the Country Snapshot report and recommended the Country Snapshot measurement of deferred tax The Committee considered the impact of: assets. to the Board for approval. • announcements made by the UK government in relation to the future rate of corporation tax • the OECD’s proposal to introduce a global minimum tax • the tax treatment of the Group’s holding of index-linked gilts. The Committee reviewed the appropriateness of provisions made for uncertain tax positions. The Committee also reviewed the Group's tax risks and its interactions with tax authorities. The effectiveness of the overall The Committee: In 2022, the Committee: Internal controls control environment, including and business • considered regulatory views expressed on • scrutinised the pathway to 'Return to the status of any significant control the Group’s internal control environment Satisfactory' in respect of internal control issues and the progress environment and management’s response controls (operated by the various of specific remediation plans. functions and businesses) that were not (read more about • evaluated and tracked the status of the already rated 'Satisfactory' and satisfied Barclays' internal more significant control matters through themselves that management’s plan, control and risk regular reports from the Chief Controls once implemented, should achieve the management Officer, including updates on the impact of objective processes on page hybrid working and cyber risks on the 187) control environment • considered management’s progress in remediating internal control over • monitored the remediation of internal financial reporting following the Over- control over financial reporting in relation issuance of Securities and SOx testing in to the identification and monitoring of relation to the same, and agreed with issuance limits, following the Over- management’s conclusion that it was issuance of Securities remediated as at 31 December 2022 • discussed reports relating to individual • monitored the progress of other Group entities, businesses and functions significant remediation programmes, on the control aspects of key matters such challenging management to take a as financial crime, the use of personal forward looking view to create devices for business communications and sustainable outcomes trading controls • commenced oversight of an internal • received an annual update on data programme aimed at considering the protection more material remediation activities on • received independent evaluations from BIA a holistic basis in order to embed and external auditors controls to achieve a consistently • monitored Client Assets Sourcebook excellent operating environment. (CASS) updates and compliance with In early 2023, the Committee considered CASS. management’s proposals for evolving the RCSA process in 2023 taking into account lessons learned from the Over-issuance of Securities, and agreed with the aim to improve the identification of the low probability / high impact events and the associated controls. The adequacy of the Group’s The Committee received reports from The Committee received detailed semi- Raising concerns arrangements to allow management and monitored whistleblowing annual reports on whistleblowing from colleagues to raise concerns in metrics and retaliation reports, including management. confidence and anonymously consideration as to potential whistleblowing The Committee approved proposals by without fear of retaliation, and trends which might emerge. management to enhance certain elements the outcomes of any of the Group-wide whistleblowing process substantiated cases. following an external benchmarking exercise.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 175 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) Areas of focus Matters addressed Role of Committee Conclusion/action taken The Committee reviewed BIA's audit The performance of BIA and During the year, the Committee: Internal audit delivery of the internal audit results and performance reports, and • scrutinised and agreed internal audit plans, plan, including scope of work quality assurance reports. The Committee methodology and deliverables for 2022 performed, the level of also reviewed and approved the annual • reviewed BIA's audit reports in relation to resources, and the review of BIA's Audit Charter. specific audits, key areas of focus and methodology and coverage of At the end of the year, the Committee themes the internal audit plan. approved the 2023 Audit Plan, detailing the • tracked the levels of adverse audits and number of audits to be undertaken in 2023 issues raised by BIA and monitored related and the focus areas. remediation plans The Committee reviewed the results of the • received regular updates on resourcing and external quality assurance exercise carried results of colleague engagement surveys out in respect of BIA and conducted an for BIA evaluation of BIA for 2022, the results of • discussed BIA's assessment of the which are summarised in the Chair’s letter management control approach and control on page 170. environment in the Group companies and functions • continued to monitor BIA's implementation of its three-year internal audit strategy ending December 2022. The work and performance of The Committee: The Committee approved the 2022 Audit External audit KPMG. Plan and the main areas of focus for the • met with key members of the KPMG audit year. team to discuss the 2022 Audit Plan and KPMG’s areas of focus The Committee received and considered reports from KPMG on the results of their • assessed regular reports from KPMG on 2021 CASS audits and management's the progress of the 2022 audit and any responses thereto. material accounting and control issues identified The Committee considered the results of • discussed KPMG’s feedback on Barclays’ the PRA Written Auditor Reporting for critical accounting estimates and 2022 and the PRA's feedback thereon, and judgements has also reviewed management's response to the matters raised. • discussed KPMG’s draft report on certain control areas and the control environment Read more about the PCAOB and AQR ahead of the 2022 year end inspection results and the Committee’s • received reports on the progress of the role in assessing the performance, PCAOB and AQR joint inspection of effectiveness and independence of the KPMG's audit of Barclays' 2021 financial external auditor on the next page. statements.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 176 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) The AQR inspection covered three key specific country which did not specify their External auditor audit matters (impairment allowances on legal names. Following an external audit tender in 2015, loans and advances, valuation of financial The Group undertakes an annual formal KPMG was appointed as Barclays’ instruments held at fair value and IT user assessment of KPMG’s performance, statutory auditor with effect from the access management) as well as four other independence and objectivity. This 2017 financial year. Stuart Crisp of KPMG is areas of audit focus (general IT controls assessment was conducted in early 2023, Barclays’ lead audit engagement partner and automated IT controls, settlement by way of a questionnaire completed by and was appointed to this role with effect and clearing and the overall payments key stakeholders across the Group, for the 2022 financial year following the process, existence and accuracy of including the chairs of the Board Audit retirement of the previous lead audit unconfirmed OTC bilateral derivatives and Committees of the Group’s main engagement partner, Michelle Hinchliffe. cash and cash equivalents). The AQR also operating companies (BBUKPLC, Barclays Assessing external auditor inspected the work carried out by KPMG in US LLC and Barclays Europe). The effectiveness, objectivity and assessing the restatement that was questionnaire was designed to evaluate independence and non-audit services reported in the Group's first quarter’s KPMG’s audit process and addressed The Committee is responsible for results, arising from the impact of the matters such as the quality of planning and assessing the effectiveness, objectivity Over-issuance of Securities. The final communication, technical knowledge, the and independence of the Group’s auditor, report from the AQR was received last level of scrutiny and challenge applied and KPMG. This responsibility was discharged week and the Committee was pleased to KPMG’s understanding of the business. by the Committee throughout the year at note that there were no significant findings In line with the approach taken in previous formal meetings, during private meetings and that the AQR called out examples of years, in 2022 KPMG also nominated a with KPMG and through discussions with best practice in KPMG’s work on IT senior partner of the audit team to have key Group executives. In addition to the automated controls, on the partial model specific responsibility for ensuring audit matters noted above, the Committee also: rebuild and evaluation of reasonable quality. The Committee met with the • approved the terms of the audit ranges for expected credit losses, on partner concerned on a number of engagement letter and associated fees, valuation models and on their climate risk occasions, without the lead audit on behalf of the Board assessment including their reporting engagement partner present, to receive a thereon in the audit report. There were a • discussed the Group Policy on the report on his assessment of audit quality. number of areas included for Provision of Services by the Group Taking into account the result of all of the improvement, which the Committee will be Statutory Auditor (the Policy) and above, the Committee considered that discussing with KPMG following a meeting reviewed regular reports from KPMG maintained its independence and to be arranged between the current and management on the non-audit services objectivity and that the audit process was incoming Chair of the Committee with the provided by KPMG to Barclays effective. AQR. The Committee noted however that • evaluated and recommended to the KPMG’s proposed actions did not envisage Non-audit services Board for approval revisions to the significant additional work, but clearly In order to safeguard the auditor’s Group Policy on Engagement of recognised the need to better articulate independence and objectivity, Barclays has Employees and Workers of the the rationale for and evidence of the audit in place the Policy setting out the Statutory Auditor and ensured work carried out in the relevant areas. circumstances in which the auditor may be compliance with this by regularly The PCAOB’s inspection also covered the engaged to provide services other than assessing reports from management impairment allowances on loans and those covered by the Group audit. The detailing any appointments made advances and the valuation of financial Policy applies to all Barclays’ subsidiaries • received reports on KPMG’s instruments held at fair value both as and other material entities over which assessment of the financial impact of regards the valuations themselves and the Barclays has significant influence. The core the Over-issuance of Securities on both presentation and disclosure thereof. In principle of the Policy is that non-audit the Group's UK and US financial addition, the PCAOB inspected the work services (other than those legally required statements carried out by KPMG on their revised audit to be carried out by the Group’s auditor) • was briefed by KPMG on critical accounting report on the restated financial should be performed by the auditor only in judgements and estimates and internal statements included in the amended 2021 certain controlled circumstances. The controls over financial reporting 20-F, which incorporated the impact of the Policy sets out those types of services that Over-issuance of Securities. KPMG have are permitted (Permitted services). A • met with senior members of the KPMG not yet received a report from the PCAOB, summary of the Policy can be found at Barclays team both from the UK and US but have informed us that the PCAOB home.barclays/who-we-are/our- to discuss the approach to the 2022 verbally communicated to them that they governance/auditor-independence/. audit had no formal comments on the work The Policy is reviewed on an annual basis • assessed any potential threats to supporting their audit opinion. KPMG did to ensure that it is fit for purpose and that independence that were self-identified inform us that the PCAOB had provided it reflects applicable rules and guidelines. and reported by KPMG, all of which were them with one comment as regards The Policy is aligned with both the FRC’s regarded by the Committee as being required communications with the requirements and KPMG’s own internal adequately addressed. Committee in respect of the inadvertent policy on non-audit services for FTSE 350 KPMG’s audit of Barclays' 2021 financial omission of two overseas KPMG member companies, which broadly restricts non- statements was subject to inspection by firms who provided some limited audit work to services that are ‘closely the AQR team from the FRC and the US assistance on the audit and a reference to related’ to the audit. PCAOB. three other KPMG member firms in a During 2022, the Committee reviewed and approved the Policy in its current form on

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 177 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Audit Committee report (continued) the basis it continued to reflect current were declined by the Committee in 2022 control reports and specific audit applicable rules and guidelines and met the (2021: none). On a quarterly basis, the procedures, required by law or regulation to be provided by the needs of the business. Any changes to the Committee scrutinised details of Policy are required to be approved at a individually approved and pre-approved statutory auditor Group level by the Committee. This is in services undertaken by KPMG in order to • other attestation and assurance accordance with laws applicable in the UK satisfy itself that they posed no risk to services, such as ongoing attestation and FRC guidance, pursuant to which audit independence, either in isolation or on an and assurance services for treasury and committees of Public Interest Entities aggregated basis. capital markets transactions to meet (such as Barclays) are required to approve For the purposes of the Policy, the regulatory requirements, including non-audit services provided by their Committee has determined that any regular reporting obligations and auditors to such entities; and subsidiary service of a value of under £50,000 is to be verification reports. Public Interest Entities in the UK – such as regarded as trivial in terms of its impact on The Statutory Audit Services for Large BBUKPLC and BBPLC – can rely on the Barclays' financial statements and has Companies Market Investigation approval of non-audit services by the required the Group Financial Controller to (Mandatory Use of Competitive Tender ultimate parent’s Board Audit Committee. specifically review and confirm to the Processes and Audit Committee Pursuant to the Policy, audit services and Responsibilities) Order 2014 Committee that any service with a value of the fee cap are monitored by the relevant between £50,000 and £100,000 may also An external audit tender was conducted in Board Audit Committee, as appropriate. be regarded as such. Accordingly, any 2015 and the decision was made to Under the Policy, except for specific service with a value of less than £100,000 appoint KPMG as Barclays’ external auditor categories of permitted services that is treated as a pre-approved service, with effect from the 2017 financial year, require explicit Committee approval, the subject to satisfactory review and certain with PwC resigning as the Group’s Committee has pre-approved all exceptions. The Committee undertook a statutory auditor at the conclusion of the review of pre-approved services at its Permitted services for which fees are less 2016 audit. than £100,000. However, all proposed meeting in December 2022. Barclays is in compliance with the work, regardless of the amount of the fees, KPMG have however recently advised the requirements of The Statutory Audit must be sponsored by a senior executive Committee that, as more fully described in Services for Large Companies Market and recorded on a centralised online their audit report, a KPMG member firm Investigation (Mandatory Use of system, with a detailed explanation of the has provided services in connection with Competitive Tender Processes and Audit clear commercial benefit arising from the preparation of local statutory accounts Committee Responsibilities) Order 2014, engaging the auditor over other potential of a small overseas subsidiary not in scope which relates to the frequency and service providers. The lead audit for the group audit. KPMG has assured the governance of tenders for the engagement partner must also confirm Committee, having made appropriate appointment of the external auditor and that the engagement has been approved enquiries of their member firms providing the setting of a policy on the provision of in accordance with the auditor’s own services to the Group, this is an isolated non-audit services. internal ethical standards and does not instance. In these circumstances the As explained in previous Committee pose any threat to the auditor’s Committee agrees with KPMG’s reports, provided that KPMG continues to independence or objectivity. All requests assessment that this has not impaired maintain its independence and objectivity, to engage the auditor are assessed by their integrity or objectivity. The and the Committee remains satisfied with senior management, who are not involved Committee have also asked management its performance, the Group has no in any work to which the proposed to reinforce the necessity for requests for intention of tendering for an alternative engagement relates, before work can non-audit services to clearly distinguish external auditor before the end of the commence. the different elements of the service to be current required period of 10 years. provided to ensure they are all permitted. Requests for Permitted service types in Accordingly, any tender would be in respect of which the fees are expected to The Committee will also consider if any respect of the 2027 financial year onwards meet or exceed the above threshold but revisions of the Policy are required to make and is likely to take place in 2025. The expected to be less than £250,000 must it clearer in this respect. Committee believes it would not be be approved by the Chair of the The fees payable to KPMG for the year appropriate to tender before this date as it Committee (or an appropriate alternate) ended 31 December 2022 amounted to recognises that while it is important to before work is permitted to begin. Services £71m (2021: £62m), of which £13m (2021: ensure the audit firm remains objective where the fees are expected to be £12m) was payable in respect of non-audit and does not become overly familiar with £250,000 or higher must be approved by services. A breakdown of the fees payable management, there is an important the Committee as a whole. All expenses to the auditor for statutory audit and non- balance to be struck with the investment and disbursements must be included in the audit work can be found in Note 40 of the of time required both from management fees calculation. financial statements. Of the £13m of non- and any completely new audit team for During 2022, all engagements for which audit services provided by KPMG during them to gain sufficient understanding of a expected fees met or exceeded the above 2022, the significant categories of large and complex organisation as Barclays thresholds were evaluated by either the engagement, i.e. services where the fees to ensure a top quality audit. The amounted to more than £500,000, Committee Chair or the Committee Committee also observes that there has members as a whole, who, before included: been significant turnover of the senior confirming any approval, assured members of the audit team since 2017 and • audit-related services: services in themselves that there was justifiable more recent changes of the Barclays connection with CASS audits reason for engaging the auditor and that senior finance team, both of which have • other services in connection with its independence and objectivity would not reduced any potential familiarisation regulatory, compliance and internal be threatened. No requests to use KPMG threat.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 178 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report Prudent oversight of the risks facing the Group Dynamic Risk management in the face of challenging geopolitical and macroeconomic conditions. Dear Fellow Shareholders Since I joined the Board and took on the Board Risk Committee role of Risk Committee Chair in early 2022, Robert Berry Committee membership there have continued to be many a Chair, Board Risk Committee and meeting attendance in 2022 opportunities and challenges that have Meetings attended/eligible to attend required careful and considered risk Member (including ad hoc meetings) management. As the threat of COVID-19 1 Robert Berry 11/11 in our key operating regions receded in Mike Ashley 12/12 2022, geopolitical risks have heightened 2 Tim Breedon 2/2 with the Russian invasion of Ukraine and continued US/China political tensions. Mohamed A. El-Erian 9/12 Macroeconomic risks have also increased Dawn Fitzpatrick 12/12 as most major economies faced slowing Brian Gilvary 11/12 growth against a backdrop of high inflation, Diane Schueneman 8/12 energy market shocks and rising interest 3 Julia Wilson 5/5 rates, resulting in increased affordability Notes Committee membership in 2022 pressures for consumers. a There were nine scheduled meetings and three ad-hoc 1 Appointed with effect from 1 March 2022. meetings of the Committee in 2022. Owing to prior 2 Retired with effect from 28 February 2022. Another theme for Barclays throughout commitments, Mohamed A. El-Erian was unable to 3 Appointed with effect from 1 September 2022. this year has been UK political uncertainty, attend one scheduled meeting and two ad-hoc meetings, Notes Diane Schueneman was unable to attend three with the ‘mini-budget’ in September scheduled meetings and one ad-hoc meeting and Brian causing market disruption, notably the Gilvary was unable to attend one ad-hoc meeting. sudden shifts in demand for UK gilts, b Committee allocation of time (%) closely followed by the appointment of another new Prime Minister and a further 2022 2021 fiscal budget. Given the ongoing uncertain 36 46 n Risk profile/appetite macroeconomic and geopolitical 50 34 n Key risk issues/monitoring environment, as a Committee, we spent a 9 18 n Internal controls/risk policies 5 2 n Other significant amount of time during the year b Including ad hoc meetings. hearing directly from the business, alongside risk and compliance colleagues, about how they are managing the associated risks and what mitigating The Committee also devoted attention to Risk appetite actions are being taken. The Committee assessing the full range of risks associated A key role of the Committee is to remains watchful of the implications of with implementing strategic opportunities, recommend to the Board an appropriate these themes, as well as the longer term such as the digital transformation risk appetite for the Group. Risk appetite consequences of the UK’s withdrawal from programme within Barclays UK, represents the amount of risk the Group is the EU, possible political uncertainty in acquisitions and growth initiatives. The able to take to earn an appropriate return other key jurisdictions and the potential for Committee continues to encourage while meeting minimum internal and disorderly market corrections and management to be alert to areas of regulatory capital requirements in a severe economic slowdowns across the globe. emerging risk, particularly in light of the but plausible stress environment. The rapidly evolving macroeconomic and In addition to the geopolitical and Committee analyses Barclays’ geopolitical climate. macroeconomic climate, the Committee performance in both its internally has continued to focus on the Set out below are some of the key areas of generated stress tests and those management of the Group’s non-financial the Committee's work in 2022, but you can developed externally by such bodies as the risks, including operational risks, such as read more about how the Committee Bank of England (BoE) and the FRB in the cyber-related vulnerabilities, conduct risks, discharged its duties in the table on pages US and, following such analysis, may including those related to the facilitation of 182 to 185. recommend adjustments to the Group’s financial crime, and the work undertaken to overall risk profile. mitigate the risks associated with the Over-issuance of Securities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 179 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) In 2022, the BoE returned to its annual Treasury and Capital risks have been Operational risk cyclical scenario (ACS) stress testing actively monitored by the Committee, Operational risk remained heightened in (paused for two years during the including, in particular, the appetite for risk 2022, driven by an increase in risks pandemic), which assesses the UK banking going into this higher-rate environment associated with geopolitical instability and system and its capital resilience to a severe and the adequacy of liquidity levels to uncertain economic conditions, as well as but plausible shock. The Committee mitigate risks associated with a potential changes to working practices following the reviewed and approved the results of the UK sovereign downgrade. The Committee COVID-19 pandemic. Against this ACS 2022, and approved its use, subject to reviewed and approved the Group’s backdrop, the Committee discussed certain adjustments, for the Group’s Internal Capital Adequacy Assessment updates on a multi-year effort to increase internal stress test (IST). Process (ICAAP) and Internal Liquidity Barclays’ Operational Risk capabilities, and Adequacy Assessment Process (ILAAP) The Committee received a briefing on the on management actions to enhance the during the course of 2022, concluding that results of the IST and was satisfied that the security and resilience of the Group, the Group was appropriately capitalised Group would meet internal and regulatory including the risks associated with third and had adequate liquidity resources, requirements for capital and liquidity. party reliance, hybrid working and including allowing for the impact of the ransomware cyber-attack. The Financial risk Over-issuance of Securities. Committee oversaw the Group’s The Committee continued to monitor participation in the PRA’s cyber stress test Conduct risk closely the rapidly changing and will continue to oversee related The risk of poor outcomes or harm to macroeconomic environment, including management actions and preparations for customers, clients and markets arising the broad range of impacts stemming US legislative changes in the cyber sphere from the delivery of Barclays’ products and from the war in Ukraine, inflationary in 2023. services continued to be an area of pressures and rising interest rates. The The Committee also considered ongoing focus for the Committee. The Committee discussed updates on the Committee considered the heightened management of risks associated with new multi-faceted response required to the inherent risk associated with the rapidly activities, including the onboarding of a Russian invasion of Ukraine, including the changing Russian sanctions regime and significant new partnership business in the Group’s response to rapidly imposed the impact on customers and clients of US Consumer Bank, the Barclays UK digital global sanctions and the management of transformation programme and the challenging market conditions. the Group’s financial exposures to Russia- announced acquisition of Kensington The introduction by the FCA of the new specific market, credit and liquidity risks. Mortgage Company; the Committee will Consumer Duty in July 2023, aimed at The Committee also oversaw action taken continue to oversee execution risk relating setting higher and clearer standards of by management to assess and mitigate to these as they progress. In addition, the consumer protection across financial the financial risks associated with the Committee continues to oversee services and requiring firms to put Over-issuance of Securities. management’s review of the New and customers’ needs first, will increase the The Committee considered assessments Amended Product Approval (NAPA) regulatory focus on conduct issues and of the potential impacts of heightened process, which is designed to ensure that customer outcomes. Current cost of living inflation and the evolving interest rate any new activity and change pressures also re-enforce the need to environment on consumer spending and implementation is appropriately controlled remain focused on ensuring Barclays affordability, with a view to ensuring the and supported. delivers good customer outcomes. The consumer and business banking portfolios Committee received briefings on the Climate risk were appropriately positioned for the Group’s plans for implementation of the emerging environment and to identify Acknowledging the importance of this Consumer Duty and will continue to areas of stress where customers and global issue, at the start of 2022, Climate receive updates as this work progresses clients might be facing financial pressures risk became a Principal Risk within our Oversight of the management of financial and the actions taken to support them. ERMF and the Committee has overseen crime risk was also a core focus of the The Committee also continued to monitor the continued development and Committee, reflecting the increase in the the risks associated with the collection and embedment of Climate risk risks of money laundering, sanctions recovery of loans provided under the methodologies and capabilities. The circumvention and organised crime taking government loan schemes during the Committee approved the Group’s Round 2 advantage of economic pressure on pandemic. Throughout the year, the submission to the BoE's industry-wide companies and individuals. Committee received regular updates on Climate Biennial Exploratory Scenario Credit and Market risk within the Corporate (CBES) and received updates on the and Investment Bank (CIB), with particular regulatory feedback received and follow- consideration given to the structured up actions to be taken by management, lending and finance and leveraged finance including that Climate risk is adequately portfolios, including management’s considered as part of business planning actions to manage the size of these activities across the Group. In particular, portfolios in light of the deterioration in the Committee has discussed with senior market conditions. management of both Barclays International and Barclays UK their respective climate strategies and plans for the embedment and delivery of those strategies within their businesses, in line with Barclays' ambition to become a net zero bank by 2050.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 180 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) The Committee will continue to oversee Board Risk Committee was also the evolution and delivery of each considered effective, confirming that the business’ climate strategy, including Committee continues to exercise development of quantitative risk appetites appropriate oversight of issues relevant to across a range of metrics. the Committee’s remit relating to BBUKPLC. Model risk Changes to Committee Models are a core foundation upon which composition the majority of the Group’s internal assessment processes run and, as such, We welcomed Julia Wilson as a member of the Committee closely monitors the the Committee with effect from 1 development of the Group’s approach to September 2022. The Committee has models and its regulators’ expectations in benefited from Julia’s expertise and the this regard. The Committee continued to insights she brings, particularly with her oversee Model risk management, including cross-Committee membership as a the ongoing validation of the Group’s member (and, subject to regulatory models and challenging the reliability of approval, as Chair from 1 April 2023) of the existing models in the changing economic Board Audit Committee. climate. In 2022, a Model Strategy and We also welcome Marc Moses who Oversight function was established to recently joined the Committee on taking steer the approach to model development up his appointment as a Non-Executive throughout the Group. Director of the Board on 23 January 2023. Committee effectiveness You can find details of Julia's and Marc's The 2022 Committee effectiveness review skills and experience in their biographies on was facilitated internally in accordance with page 146. the Code. This internal review involved Looking ahead completion of a tailored questionnaire by As we move into 2023, geopolitical risk Committee members and standing remains heightened and macroeconomic attendees, in line with the approach conditions continue to be uncertain. With adopted for all Board Committees in 2022. this in mind, the Committee will continue The review is an important part of the way to work with management to position the Barclays monitors and improves Group prudently in response to the Committee performance and challenging risk environment, remaining effectiveness, maximising strengths and watchful and ready to respond to any new highlighting areas for further development. areas of emerging risk. The results of the review confirm the Committee is operating effectively. It is considered well constituted, providing an effective and appropriate level of challenge and oversight of the areas within its remit. The review acknowledged the Chair’s inclusive approach, with feedback noting strong levels of engagement across the Committee and members’ diverse and valuable range of expertise. Robert Berry The Committee has a broad remit and is Chair, Board Risk Committee considered to allocate time appropriately 14 February 2023 to cover matters effectively in meetings, with sufficient time for discussion and challenge. The review recognised that it might be beneficial to give further consideration to the cadence of meetings during the year. The review concluded that the Committee’s interaction with the Board, Board Committees and senior management is considered effective. Feedback indicated that concurrent meetings of the BPLC and BBPLC Board Risk Committee continue to be effective, with coverage of BBPLC matters within concurrent meetings considered adequate. Interaction with BBUKPLC

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 181 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) The Committee monitored the delivery of, Committee oversight Committee roles and and approved updates to, the Compliance of the Risk function function's Annual Plan for 2022 and responsibilities The Committee is responsible for ensuring approved the Annual Plan for 2023. During The Committee is responsible for the independence and effectiveness of the 2022, a benchmarking review of the design reviewing, on behalf of the Board, Risk function, whose primary role is the effectiveness of the Compliance function management’s recommendations on oversight and challenge of risk taking as was undertaken by an independent third the Principal Risks as set out in the the second line of defence. It party. The Committee received an update ERMF (with the exception of accomplishes this by establishing the risk on the findings of that review, and was Reputation risk, which is a matter policies, limits, rules and constraints under pleased to note the conclusion that the reserved to the Board), and in which activities of the first line of defence Compliance function was considered to particular: shall be performed, consistent with the have a well-structured design relative to Group’s risk appetite and through • reviewing, on behalf of the Board, firms of a similar size, complexity, business monitoring the adherence of the first line the management of those Principal model and geographical position. The of defence against these risk policies, limits Risks in the ERMF Committee will oversee management’s and constraints. • considering and recommending to plans to implement and embed the The Committee reviewed the Risk the Board the Group’s risk appetite enhancement opportunities identified by function’s own assessment of its risk and tolerances for those Principal that review. capability and effectiveness in late 2022 Risks Committee meetings which showed that the function continues • reviewing, on behalf of the Board, During 2022, the Committee met 12 times to meet expectations in providing effective the Group’s risk profile for those (including three ad hoc meetings) and the risk management and independent Principal Risks attendance by members at these oversight. The report identified areas for • commissioning, receiving and meetings is shown on page 178. As well as enhancement, including continuing to considering reports on key risk its members, Committee meetings were enhance its Operational risk and Model risk issues attended by representatives from capabilities, which the Committee will management, including the Group Chief • safeguarding the independence, monitor into 2023. The Committee will Executive, Group Chief Risk Officer, Group and overseeing the performance, oversee the work of the Risk function to Finance Director, Group Chief Internal of Barclays’ Risk and Compliance upgrade and enhance its infrastructure, Auditor, Group Treasurer, Group Chief functions. which will be pivotal to meeting regulatory Compliance Officer and Group General expectations for the Market risk The Committee’s terms of reference Counsel, as well as representatives from framework. are available at home.barclays/who- the businesses and additional members we-are/our-governance/board- During 2022, the Committee oversaw a from the Risk function. The Committee committees/. change to the senior management of the held a number of sessions with the Group Risk function with the appointment of a Chief Risk Officer and the Group Chief new Chief Risk Officer for BBPLC who took Compliance Officer, which were not up the role in early 2023. attended by other members of Committee oversight of the management. The lead audit engagement Compliance function partner of KPMG also attended Committee meetings. The Compliance function plays a key role in strengthening the culture of Barclays by providing oversight of the management of Conduct risk. Compliance oversees that Conduct risks are effectively identified, managed, monitored and escalated, and has a key role in helping Barclays achieve the right conduct outcomes and evolve a conduct-focused culture. The Committee maintains oversight of the Compliance function, and supports the independence of the function from the operational functions to ensure that Compliance has sufficient authority, stature, resources and access to the management body.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 182 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) Primary activities The Committee discharged its responsibilities in 2022 through reviewing and monitoring Group exposures in the context of the current and emerging risks facing the Group. The Committee seeks to promote a strong culture of disciplined risk management. Areas of focus Matters addressed Role of Committee Conclusion/action taken The risk context to the • To advise the Board on the The Committee recommended the proposed risk Risk appetite and MTP, the financial appropriate risk appetite and appetite to the Board for approval in early 2022. The stress testing parameters and tolerance for the Principal Risks, Committee also discussed and approved the mandate i.e. the level of risk including the proposed overall and scale as well as the stress loss limits for the Group constraints and mandate the Group and scale limits for Group risk appetite and limits. during 2022. Subsequent changes were reviewed and specific business risk approved during the course of the year. chooses to take in • To discuss and agree stress loss exposures; the Group’s pursuit of its and mandate and scale limits for During 2022, stress test results were considered and internal stress testing Credit risk, Market risk, Operational business approved by the Committee including: the 2021 reverse exercises, including risk and Treasury and Capital risk. objectives, IST results and risk appetite for the MTP; the 2022 ACS scenario selection and • To consider and approve internal stress test results; and the 2022 IST results. including testing financial constraints, stress test themes, and consider whether the stress testing themes and The Committee received updates on regulatory stress the financial constraints and Group’s financial the results and testing submissions to regulators, including an scenarios, for stress testing risk implications of stress position and risk assessment of the models used and overlays applied. appetite for the MTP. tests, including those run profile provide The updates covered both the quantitative and • To evaluate the results of the BoE’s by the BoE. qualitative results of the submissions. sufficient ACS stress test and the BoE’s resilience to The Committee reviewed feedback received from the Biennial Exploratory Scenario. withstand the BoE, including the BoE’s CBES 2021 Round 2 Results • To consider the feedback from the impact of severe prior to submission to the PRA. FRB on Barclays US LLC’s but plausible Comprehensive Capital Analysis economic and Review (CCAR) following the scenarios. submission of the CCAR stress test results. The trajectory to • To review, on a regular basis, capital The Committee reviewed capital and liquidity Treasury and achieving required performance against plan, tracking performance and the forecast capital and funding capital risk regulatory and internal the capital trajectory, any trajectory, including the actions identified by i.e. having targets and capital and challenges and opportunities and management to manage the Group's capital position, sufficient capital leverage ratios. regulatory policy developments. taking into account relevant macroeconomic factors. and financial • To assess, on a regular basis, The Committee received a preliminary assessment of resources to meet liquidity performance against both the ICAAP and the ILAAP in January 2022. Q&A sessions internal and regulatory the Group’s regarding the ICAAP and the ILAAP were held between requirements. regulatory management and Committee members. The • To monitor capital and funding Committee subsequently discussed and approved the requirements and requirements. Group's 2022 ICAAP and the Group's 2022 ILAAP prior its obligations as to their submission to the PRA. they fall due, to • To consider the ICAAP and ILAAP scenario review. maintain its credit Regulatory feedback on the ICAAP and ILAAP was noted rating, to support throughout the year. As a result of the Over-issuance of Securities, the Committee considered the trigger for growth and refresh of each of the ICAAP and ILAAP. The Committee strategic options. then approved the results of the Group ICAAP refresh for submission to the PRA. The Committee recommended to the Board for approval the Group Recovery Plan, which forms a part of the Group’s capital and liquidity risk management framework. The Committee also discussed feedback received from the BoE and the PRA on the Group Resolvability Self- Assessment and approved, on behalf of the Board, the public disclosure required to be made in respect of the Group's resolvability arrangements. The Committee also considered the structural hedge programme and reviewed and discussed management’s hedging strategy proposals.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 183 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) Areas of focus Matters addressed Role of Committee Conclusion/action taken The Committee considered macroeconomic trends, The potential impact on ▪ To consider trends in the Risk profile the Group’s risk profile of economies of our key markets, in including economic slowdown in most major economies, i.e. the impact on geopolitical and particular the UK and US. inflationary pressures, energy market disruption, rising the Group’s risk macroeconomic interest rates, affordability pressures for consumers, • To assess the geopolitical tensions profile of developments. and increased risk of disorderly market corrections. across the globe. geopolitical and The Committee monitored the Group's exposures to • To review exposures to emerging macroeconomic markets. geopolitical risks, including the Russian invasion of developments and Ukraine, continued US/China political tensions and UK • To establish and examine key risk conditions political uncertainty. themes in order to monitor the evolving risk environment in which The Committee also considered the risk management Barclays operates, the response of implications of initiatives in emerging markets. management, and the changing risk The Committee approved changes to key risk themes, profile of the Group. including the global pandemic being a declining trend and a new overview on the subject of Challenges to the Global Order. The impact on financial ▪ To consider and assess the impact The Committee received regular updates on Climate Climate risk and operational risks of Climate risk on the Group’s risk including areas of elevated Climate risk and progress i.e. the impact on arising from climate activities. against sector targets in the form of a Climate Risk financial and change through physical Dashboard. operational risks risks and risks associated The Committee reviewed the conclusions of Round 2 of with transitioning to a arising from the CBES and approved the results and conclusions for lower-carbon economy, climate change submission to the PRA. and connected risks arising as a result of The Committee received updates from businesses on second order impacts of their climate strategies, with a focus on ensuring Climate these two drivers on risk is appropriately considered in business planning portfolios. activities. Conditions in the UK ▪ To assess conditions in the UK In the prevailing macroeconomic conditions, the Credit risk and housing market; levels of property market and monitor signs Committee reviewed the UK housing market and Market risk UK consumer of stress. affordability criteria and the risk of default on certain i.e. the potential indebtedness; loan portfolios. • To monitor management’s tracking for financial loss if unemployment levels in and responding to persistent rising The Committee discussed reports from management the US and UK; the customers, clients levels of consumer indebtedness, on consumer indebtedness, where stress was expected performance of the UK or counterparties particularly unsecured credit in both both in the UK and US, with trends including US and US cards businesses, the UK and US. fail to fully honour consumer credit weakness. including levels of their obligations; • To review leveraged finance impairment; and credit The Committee received regular updates on Credit and portfolios in order to assess or due to market and market risk exposures Market risk within the CIB, with a particular focus on the maintenance within risk appetite movements within the CIB. structured lending and finance and leveraged finance and manageable limits. portfolios. • To review business development The Committee considered updates on the Over- activities in the CIB. issuance of Securities, including the hedging arrangements designed to manage the risks of the rescission offer.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 184 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) Areas of focus Matters addressed Role of Committee Conclusion/action taken The Committee approved and recommended to the The Group’s operational • To track operational risk key Operational risk risk capital requirements indicators. Board the 2022 Operational Risk Appetite Statement. and operational and any material changes • To consider specific areas of resilience The Committee received regular reporting on key to the Group’s operational operational risks, including fraud, operational risk indicators and was briefed by i.e. the risk of loss risk profile and conduct risk, cyber risk, execution management on a number of operational risks topics, performance of specific arising from risk, technology and data, including including those relating to third party risk management, operational risks against inadequate or the controls that had been put in hybrid working, fraud, erroneous payments, agreed risk appetite. place for managing and avoiding failed processes cybersecurity and the use of cloud platforms and the risk such risks. and systems, associated with new business activities. • To review Barclays’ approach to human factors or The Committee continued to monitor the review of the scenario analyses as a risk due to external processes for new and amended product approvals management tool. events within the Group. • To consider the operational The Committee also considered operational resilience, resilience tolerance statement and including approving a new operational resilience review status against it. tolerance statement. The Committee received updates on cyber resilience and reviewed the results of, and recommended the outcome of, the PRA cyber stress test to the Board for its approval. The Committee also considered the analysis of a severe and prolonged ransomware cyber-attack scenario and, consequently, the importance of the ongoing Operational resilience work. Model risk governance. ▪ To evaluate the appropriateness of The Committee reviewed and discussed regular updates Model risk the Model risk management on Model risk including the ongoing validation of the i.e. the potential framework and monitor progress on Group’s models and whether model assumptions for adverse the implementation of an enhanced needed to be updated given the rapidly changing consequences modelling framework, including economic climate. receiving updates on findings in from decisions Through quarterly updates, the Committee monitored relation to specific modelling based on incorrect improvements to the Model risk management processes. or misused model framework, including the introduction of a Model outputs and Strategy and Oversight function to steer the approach to model development across the Group. reports Conduct robust reviews • To receive updates from During 2022, the Committee was provided with regular Conduct risk of any current and management on Conduct risk and updates on Conduct risk, and assessments of potential i.e. the risk of poor emerging risks arising consider performance against key risks to the Group following market events. The outcomes to from the delivery of Conduct risk indicators and the Committee also received updates on lessons learned customers, clients Barclays' products and status of initiatives in place to reviews undertaken in response to industry services. address those risks to further developments and events, and continued to monitor and markets, strengthen the culture of the ongoing remediation activities. arising from the business. delivery of the The Committee considered the heightened risks • To review the effectiveness of the Group's products associated with the rapidly changing Russian sanctions Conduct risk framework. regime and the impact to clients and customers of and services • To review the Compliance challenging market conditions. The Committee also function’s Annual Compliance Plan. received regular updates on the management of the Group’s financial crime risk. The Committee received briefings on the Group’s implementation plans for the FCA’s new Consumer Duty and the conduct and risk culture within the Group. During the year, the Committee reviewed the Compliance function's effectiveness and performance of activities against its Compliance Plan for 2022, and towards year end approved the Annual Compliance Plan for 2023.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 185 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Board Risk Committee report (continued) Areas of focus Matters addressed Role of Committee Conclusion/action taken Conduct robust reviews • To monitor the Group's legal risk The Committee received regular updates on the Legal Legal risk of any current and profile, including considering potential risk faced by the Group, including horizon scanning for emerging legal risks faced material emerging legal risks. key areas of emerging legal risk and Barclays' ability to by the Group. manage these and other risk trends. ▪ To track the progress of significant The Committee discussed the annual refresh of the The frameworks, policies Risk framework and tools in place to risk management projects, achieving Principal Risk Frameworks as well as recommending the and governance support effective risk compliance with the Basel Committee updated ERMF to the Board for approval. Updates management and on Banking Supervision (BCBS239) included: (i) the addition of Climate risk as a Principal oversight. risk data aggregation and risk Risk; and (ii) the removal of Brexit as a standalone item in reporting principles. the risk factors. • To assess risk management matters The Committee continued to oversee management's raised by Barclays’ regulators and the progress towards achieving full compliance with all actions being taken by management aspects of BCBS239, receiving regular reports on levels to respond. of compliance and expected milestones. • To review the design of the ERMF. The Committee reviewed reports from management on guidance, letters and reviews received from regulators. The Committee examined management's responses to the matters raised and monitored remediation programmes. The scope of any risk • To debate the Risk and Compliance The Committee considered reports of the Group Chief Remuneration adjustments to be taken function’s view of performance, Risk Officer and the Group Chief Compliance Officer and into account by the Board making a recommendation to the considered the 2022 ex-ante risk adjustment Remuneration Board Remuneration Committee on methodology. Committee when making the financial and operational risk remuneration decisions factors to be taken into account in for 2022. remuneration decisions for 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 186 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: How we comply Reporting against the Code's principles and provisions As Barclays PLC is listed on the London Stock Exchange, the principles and provisions of the Code apply, a copy of which can be found at frc.org.uk. For the year ended 31 December 2022, and as at the date of this report, we are pleased to confirm that Barclays PLC has complied in full with the requirements of the Code. This section and our Board Governance Report sets out how we comply with the Code. By virtue of the information included in the Annual Report, we comply with the corporate governance statement requirements of the FCA’s Disclosure and Transparency Rules (DTRs). The information required to be disclosed pursuant to DTR 7.2.6 is located on pages 190 to 196. Information in relation to the Board Diversity Policy, as required to be disclosed pursuant to DTR 7.2.8A, can be found on pages 161 to 162. Barclays is permitted by NYSE rules to follow UK corporate governance practices instead of those applied in the US. Any significant variations must be explained in Barclays' Form 20-F filing, found at the Securities and Exchange Commission’s EDGAR database or on our website, home.barclays. Board Leadership Division of Remuneration and Company Purpose Responsibility Our Board governance is designed to The majority of the Board comprises The Remuneration report on pages 197 to deliver an effective and entrepreneurial Independent Non-Executive Directors. 245 outlines the purpose and activities of Board, which discharges its role effectively The Chair and Company Secretary work in the Board Remuneration Committee, the and efficiently. Details can be found on collaboration to ensure an effective and proposed remuneration policies for pages 149 to 153, including our Group- efficient Board, as further described in Our Executive and Non-Executive Directors, wide governance framework and the Governance Framework on page 153. and for the wider workforce, as well as the Board's responsibilities. Key Board Directors’ remuneration outcomes for The roles of Non-Executive and Executive Activities for 2022 are set out on pages 2022. Directors on the Board are defined within 154 to 156. the Barclays Charter of Expectations, along The remuneration policies and procedures The Board is fully supportive of The with the behaviours and competencies for support the strategy and enable us to Barclays Way, which sets out our Purpose, each role, as outlined on page 152. reward sustainable performance, which is a Values and Mindset, and is our Code of Directors are expected to commit key element of our Remuneration Conduct, providing a path for achieving a sufficient time to ensure they can Philosophy, in line with our Values, Mindset dynamic and positive culture in the Group. discharge their obligations to Barclays and risk expectations. Refer to page 256 for further detail. Our effectively, as detailed in our Board All Executive Director and senior Group Whistleblowing Standard enables Nominations Committee report on page management remuneration policies are colleagues to raise any matters of concern 164. developed in accordance with the Group's anonymously and is embedded into our The Board is responsible for setting the formal and transparent procedures business. Further information can be found strategy for the Group. The day-to-day (ensuring that no Director is involved in on page 257. management of the Group is delegated deciding their own remuneration outcome) Throughout 2022, we engaged with our from the Board to the Group Chief and are, where possible, aligned to wider stakeholders through a variety of means. Executive who is supported by his ExCo, workforce policies. Further detail about how we engage with the composition of which is outlined on Board Remuneration Committee our stakeholders is set out on pages 21 to page 148. members exercise independent 22. You can read more about how the judgement and discretion when Board engages with stakeholders in our determining remuneration outcomes, Section 172 statement in the Strategic considering the company and individual Report on page 16. performance, wider workforce and other relevant stakeholder considerations.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 187 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: How we comply (continued) Composition, Succession Audit, Risk and and Evaluation Internal Control Key controls are assessed on a regular basis All Board and senior management The Board, together with the Board Audit appointments are viewed through a diversity Committee, is responsible for ensuring the for both design and operating effectiveness. lens and are based on merit and objective integrity of this Annual Report and that the Issues arising out of these assessments, criteria, which focus on the skills and financial statements as a whole present a where appropriate, are reported to the experience required for the Board's fair, balanced and understandable Board Audit Committee. The Board Audit assessment of our performance, position Committee oversees the control effectiveness and the delivery of the Group's strategy. Board appointments are made and prospects. environment (and remediation of related following a rigorous and transparent process issues). The Board Audit Committee also The Board, together with the Board Audit facilitated by the Board Nominations reviews annually the risk management and Committee, is responsible for ensuring the Committee, with the aid of external search internal control system. It has concluded independence and effectiveness of the that, save for the material weakness relating consultancy firms. A revised Board Diversity internal audit function and external auditors. Policy was adopted on 15 December 2022. to the Over-issuance of Securities, Refer to the Board Nominations Committee throughout the year ended 31 December You can read more about the Board Audit Report on pages 157 to 168 for further 2022 and to date, the Group has operated an Committee and its work on pages 169 to detail. effective system of internal control that 177. provides reasonable assurance of financial Biographies for each member of the Board, The Directors are responsible for ensuring and operational controls and compliance including details of their relevant skills, that management maintains an effective with laws and regulations. experience and contribution to the Board are system of risk management and internal provided on pages 143 to 146. Whilst the control environment was control and for assessing its effectiveness. determined to be effective, the Over- Such a system is designed to identify, Each year, we carry out an effectiveness issuance of Securities underlined to the evaluate and manage, rather than eliminate, review to evaluate the performance of the Board the need to continue to focus on the risk of failure to achieve business Board, Board Committees and individual embedding Barclays' Values and Mindset at objectives and can only provide reasonable, Directors. The review was conducted all levels of the organisation to achieve and not absolute, assurance against material internally in 2022, as detailed in the Board operational and controls excellence. The misstatement or loss. Nominations Committee report on pages Board has therefore supported the creation 166 to 168. Processes are in place for identifying, of a Group-wide programme, established by evaluating and managing the Principal Risks the Group Chief Executive. This programme facing the Group. A key component of The will seek to identify issues and lessons Barclays Guide is the ERMF. The purpose of learned across the Group's remediation the ERMF is to identify and set minimum initiatives to help ensure that Barclays is requirements of the main risks to the consistently excellent, in customer and client strategic objectives of the Group. service, in operational capability and in financial performance, with all activities The Group is committed to operating within underpinned by a strong risk management a strong system of internal control. The culture. Barclays Guide contains the overarching framework setting out the approach of the For further information in relation to controls Group to internal governance. over financial reporting, including the remediation of material weakness relating to the Over-issuance of Securities, please see pages 194 to 195.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 188 report information sustainability report Governance review review statements Annual Report 2022 Directors' report: Over-issuance of Securities – Shareholder Q&A To help shareholders understand the circumstances relating to the Over- issuance of Securities and remediation activity taken by Barclays to resolve this matter, we have set out below a series of questions and answers. Shareholders should refer to the underlying disclosures, including the Group’s results and stock exchange announcements, for more information about the matters discussed below. The Review further concluded that the Where did the Over-issuance of What was the legal significance of occurrence of the Over-issuance of Securities occur? the Over-issuance of Securities? Securities was not the result of a general The securities issued in excess of the The Group operates a structured products lack of attention to controls by Barclays, business in BBPLC, through which it issues registered amounts were considered to be and that Barclays’ management has structured notes and exchange traded ‘unregistered securities’ for the purposes consistently emphasised the importance notes to customers in the US and of US securities law and certain offers and of maintaining effective controls. elsewhere. In order to issue securities of sales of these securities were not made in What was the Board’s response? this nature in the US, BBPLC maintains a compliance with the US Securities Act of The Board has worked to address the root shelf registration statement with the US 1933, which requires that offers and sales cause and impacts of the Over-issuance of SEC. of securities be registered unless there is Securities, including through the Review, an exemption from registration. This gave What securities were over- and deeply regrets its occurrence. The rise to rights of rescission for certain issued? Over-issuance of Securities also purchasers of relevant securities under US In March 2022, management became underlined to the Board the need to securities laws, whereby such purchasers aware that BBPLC had issued securities continue to focus on embedding Barclays' had a right to recover either, upon the materially in excess of the amount Values and Mindset at all levels of the tender of such security, the consideration registered under BBPLC's shelf organisation to achieve operational and paid for such security (together with registration statement on Form F-3, as controls excellence. Further, the Board has interest but less the amount of any income declared effective by the SEC in August supported the creation of a Group-wide received), or damages if the purchaser had 2019 (2019 F-3). The amount registered programme, established by the Group sold the security at a loss. As a result, should have operated as a limit on the Chief Executive. This programme will seek BBPLC elected to conduct a rescission amount of BBPLC’s issuances. to identify issues and lessons learned offer, as approved by the Board, to eligible Subsequently, management also became across the Group's remediation initiatives purchasers of relevant securities. The aware of issuances in excess of the to help ensure that Barclays is consistently rescission offer was launched on 1 August amount registered under BBPLC's prior excellent, in customer and client service, in 2022 and settled on 15 September 2022. shelf registration statement (the operational capability and in financial Why did the Over-issuance of Predecessor Shelf). Across both shelf performance, with all activities registration statements, BBPLC issued a Securities happen and what were underpinned by a strong risk management cumulative total of approximately $17.7 culture. the findings of Barclays’ review? billion in securities in excess of the Barclays commissioned a review led by What actions has the Board taken amounts it had registered with the SEC. external counsel of the facts and in response to the Over-issuance circumstances relating to the Over- Why did BBPLC’s US Shelf have of Securities? issuance of Securities and, among other limited capacity? The Board spent significant time matters, the control environment related In May 2017, Barclays Capital Inc. entered throughout 2022 in both scheduled and ad to such issuances (the Review). The into a settlement with the SEC in hoc meetings considering the impacts of Review concluded that the Over-issuance connection with a matter arising out of its the Over-issuance of Securities and the of Securities occurred because Barclays former Wealth and Investment Group’s response to it, including through did not put in place a mechanism to track Management business. As a result, at the the work of its Risk and Audit Committees. issuances after BBPLC became subject to time the 2019 F-3 was filed and the This work has included the following: a limit on such issuances, as a result of Predecessor Shelf was amended, BBPLC losing WKSI status. Among the principal • the assessment of the financial impacts had become an ’ineligible issuer’ thereby causes of the Over-issuance of Securities of the Over-issuance of Securities and ceasing to be a 'well known seasoned were, first, the failure to identify and the associated hedging arrangements issuer' (or WKSI). This meant that BBPLC escalate to senior executives the undertaken to help manage the risks was not able to take advantage of SEC consequences of the loss of WKSI status associated with the rescission offer and rules that allow WKSIs to file shelf and, secondly, a decentralised ownership Barclays’ financial exposure registration statements to register structure for securities issuances. unspecified amounts of securities (and • the review and approval of disclosures then issue securities without limit), and was to the market regarding the Over- instead required to pre-register a fixed issuance of Securities amount of securities under its shelf • considering the findings of the Review registration statements and only issue and, among other matters, the control securities up to that amount. environment related to such issuance

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 189 report information sustainability report Governance review review statements Annual Report 2022 Directors' report: Over-issuance of Securities – Shareholder Q&A (continued) • oversight of discussions with the How has Barclays reflected the Has Barclays been the subject of Group’s key regulators including the financial consequences of the any regulatory enforcement SEC, PRA, FCA and FRC Over-issuance of Securities in its action in relation to the Over- • engagement with Barclays’ shareholders financial statements? issuance of Securities? to discuss the Over-issuance of It was concluded that it was not necessary In September 2022, the SEC issued an Securities and Barclays’ response to it; or appropriate, under UK company law and order announcing the resolution of its • consideration of the implications of the financial reporting standards, to revise the investigation of BPLC and BBPLC relating Over-issuance of Securities for BPLC’s financial statements of BPLC or BBPLC for to the Over-issuance of Securities. financial statements, including the the year ended 31 December 2021 Pursuant to the terms of the resolution, approval of the restatement of the included in their respective 2021 UK BPLC and BBPLC paid a combined penalty 1 financial statements included in the Annual Report and Accounts to reflect the of $200m (£165m ) , without admitting or BPLC 2021 Annual Report on Form 20-F impact of the Over-issuance of Securities. denying the SEC’s findings, and BBPLC filed with the SEC, as well as the Instead, each of BPLC and BBPLC has agreed to undertakings requiring the amendment of such report restated the prior period comparatives in adoption and implementation of certain the Group’s quarterly and half-year results enhancements to controls and • noting the approval by BBPLC of the in 2022, and in their respective 2022 UK governance with respect to its shelf launch of the rescission offer; Annual Report and Accounts, to reflect the registration statements filed with the SEC. • oversight of the settlement with the impact of the Over-issuance of Securities. The SEC found that BBPLC’s previously SEC in relation to the Over-issuance of announced rescission offer satisfied its As a US foreign private issuer, each of Securities requirements for disgorgement and BPLC and BBPLC is required to file with the • oversight of the remediation of the prejudgment interest. SEC annual reports on Form 20-F, material weakness in internal control including financial statements. In May How has Barclays assessed the over financial reporting which led to the 2022, BPLC and BBPLC amended their consequences for remuneration Over-issuance of Securities, as well as respective annual reports on Form 20-F the work required to address the and for individuals? for the year ended 31 December 2021 to specific requirements of the SEC set out The Board Remuneration Committee has include restated financial statements for in its order of 29 September 2022. adjusted its remuneration decisions to this period reflecting the impact of the reflect the Over-issuance of Securities, What were the main financial Over-issuance of Securities. Such and in doing so has taken into consequences of the Over- amended annual reports on Form 20-F consideration the financial impact, also disclosed the existence of a material issuance of Securities? reputational impacts and how these weakness in internal control over financial In addition to a £0.2bn net attributable loss events reflect on the Group’s control reporting (as defined in the applicable SEC referable to the year ended 31 December environment. More detail can be found in rules) and management’s conclusions that 2021, Barclays has recognised a net the Remuneration report on page 201. BPLC’s and BBPLC’s internal control over attributable loss of £0.6bn in the year financial reporting and disclosure controls How does the Over-issuance of ended 31 December 2022 in relation to and procedures were not effective as at 31 Securities continue to impact the Over-issuance of Securities, materially December 2021. The material weakness in line with the anticipated financial impact Barclays? that had been identified related to a disclosed in BPLC’s and BBPLC’s H1 2022 The Group is engaged with, and weakness in controls over the results announcements. These amounts responding to inquiries and requests for identification of external regulatory limits represent the net attributable loss to information from, various other regulators related to securities issuance and Barclays in connection with the Over- and BBPLC and/or its affiliates is involved monitoring against these limits. issuance of Securities, taking into account in purported class action litigation in the costs of the rescission offer, the What remediation activity has relation to the Over-issuance of Securities. hedging arrangements entered into to been taken to address the The Group may face other potential manage the risks associated with the material weakness identified? private civil claims, class actions or other 1 rescission offer and the $200m (£165m ) enforcement actions in relation to the Since the identification of this material penalty paid following the resolution of the Over-issuance of Securities. Please see weakness, the Group has strengthened SEC’s investigation into the Over-issuance the internal controls relating to the Note 26 (Legal, competition and of Securities (see below for further detail). tracking of issuance programme limits regulatory matters) to the audited financial through the implementation and statements for the year ended 31 strengthening of a series of controls December 2022 for further information. across the Group, together with central governance. Accordingly, as at 31 Note: December 2022, management concluded 1 Exchange rate USD/GBP 1.22 as at 30 June 2022 that the previously disclosed material weakness in internal control had been resolved. Please see pages 194 to 195 for details on how this material weakness was remediated.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 190 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Other statutory and regulatory information The Directors present their report together with the audited accounts for the year ended 31 December 2022. Other statutory and regulatory information The nominee company of certain Other information that is relevant to the Directors’ report, and which is incorporated by Employee Benefit Trusts (EBTs) holding reference into this report, can be located as follows: shares in Barclays in connection with the Page operation of our employee share plans has Remuneration policy, including details of the remuneration of each Director and 209, 240 to lodged evergreen dividend waivers on 241 Directors’ interests in shares shares held by it that have not been Corporate Governance Statement 186 to 187 allocated to employees. The total amount Risk review 264 of dividends waived during the year ended 31 December 2022 was £6.28m (2021: Disclosures required pursuant to Large and Medium-sized Companies and Groups (Accounts and £1.02m). Reports) Regulations 2008 as updated by Companies (Miscellaneous Reporting) Regulations 2018 Board of Directors can be found on the following pages: The names of the current Directors of Page BPLC, along with their biographical details, Engagement with employees (Sch. 7, Para 11 and 11A 2008/2018 Regs) 31 to 38 are set out on pages 143 to 146 and are Policy concerning the employment of disabled persons (Sch. 7, para 10 2008 Regs) 33 incorporated into this Directors’ report by reference. Changes to Directors during Engagement with suppliers, customers and others in a business relationship (Sch. 16 to 30 and 7, Para 11 B 2008/2018 Regs) 39 to 44 the year and up to the date of this report are set out below. Financial instruments (Sch. 7, para 6 2008 Regs) 447 Hedge accounting policy (Sch. 7, para 6 2008 Regs) 447 Effective Name Role date Disclosures required pursuant to Listing Rule 9.8.4R can be found on the following pages: Robert Berry Non- Appointed Page Executive 8 February Allotment for cash of equity securities 488 Director 2022 Waiver of dividends 190 Tushar Executive Resigned Morzaria Director 22 April Profit and dividends Section 414A of the Companies Act 2006 2022 requires the Directors to present a Statutory profit after tax for 2022 was Anna Cross Executive Appointed 1 Strategic report in the Annual Report and £5,973m (2021: £7,056m ). The 2022 full Director 23 April Financial Statements. This report can be year dividend of 5.0p per ordinary share will 2022 found on page 1 to 65. be paid on 31 March 2023 to shareholders Marc Moses Non- Appointed whose names are on the Register of The Company has chosen, in accordance Executive 23 January Members at the close of business on 24 with section 414C (11) of the Companies Director 2023 February 2023. With the 2022 half year Act 2006, and as noted in this Directors’ dividend totalling 2.25p per ordinary share, report, to include certain matters in its Appointment and retirement of paid in September 2022, the total dividend Directors Strategic report that would otherwise be for 2022 is 7.25p (2021: 6.0p) per ordinary disclosed in this Directors’ report: The appointment and retirement of share. The half year and full year dividends Directors is governed by our Articles, the • an indication of likely future for 2022 amounted to £1,028m (2021: Code, the Companies Act 2006 and developments may be found in the £512m). BPLC also completed share buy- related legislation. Strategic report back programmes during 2022, further The Articles may be amended only by a • the particulars of important events details of which can be found on page 194. special resolution of the shareholders. The affecting the Company since the Shareholders may have their dividends Board has the power to appoint additional financial year end can be found in the reinvested in Barclays by joining the Directors or to fill a casual vacancy among Strategic report and Note 26 (Legal, Barclays DRIP. Further details regarding the Directors and any Director so competition and regulatory matters) to the DRIP can be found at home.barclays/ appointed holds office only until the next the financial statements. dividends and shareview.co.uk/info/drip. AGM and may offer themselves for re- Note election. The Code recommends that all 1 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See directors of FTSE 350 companies should Impact of the Over-issuance of Securities on page 356 and be subject to annual re-election. All Restatement of financial statements (Note 1a) on page 428 for further details Directors who will be continuing in office intend to offer themselves for election or re-election at the 2023 AGM save for Mike

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 191 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Other statutory and regulatory information (continued) Ashley who will step down at the end of the Political donations Progress to date AGM and who will not stand for re-election. The Group did not give any money for We achieved our 90% GHG market-based political purposes in the UK or outside the emissions reduction target for Scope 1 and Directors’ indemnities UK, nor did it make any political donations Scope 2, having reduced our Scope 1 and ‘Qualifying third party indemnity’ provisions to political parties or other political Scope 2 emissions by 91% since 2018 and (as defined by Section 234 of the sourced 100% renewable electricity for our organisations or to any independent Companies Act 2006) were in force during b election candidates, nor did it incur any global real estate portfolio in 2022. the course of the financial year ended political expenditure during the year. In 31 December 2022 for the benefit of the We achieved our renewable electricity accordance with the US Federal Election then Directors of the Company and the target ahead of schedule by matching 100% Campaign Act, Barclays provides then Directors of certain of the Company's of our electricity consumption with energy administrative support to a federal Political attribute certificates and green tariffs which subsidiaries and, at the date of this report, Action Committee (PAC) in the US, funded are in force for the benefit of the Directors is for us a transitional solution as we seek to by the voluntary political contributions of of the Company and the Directors of increase the proportion of on-site eligible employees. The PAC is not certain of the Company's subsidiaries in renewable electricity sources and Power controlled or funded by Barclays and all relation to certain losses and liabilities Purchase Agreements. decisions regarding the amounts and which they may incur (or have incurred) in In 2022, we expanded our net zero recipients of contributions are directed by connection with their duties, powers or operations approach to include our supply a steering committee comprising office. The Group also maintains Directors’ chain emissions as they account for the employees eligible to contribute to the and Officers’ Liability Insurance which gives majority of our operational emissions. PAC. appropriate cover for legal action brought Our supply chain emissions data is currently against its Directors. Contributions to political organisations indicative. We will continue to develop our reported by the PAC during the calendar Qualifying pension scheme indemnity methodology and aim to improve the year 2022 totalled $105,000 (2021: provisions (as defined by Section 235 of accuracy of our supply chain data over time. $29,000). the Companies Act 2006) were in force In the interim, we intend to work towards the during the course of the financial year Country-by-Country reporting milestone of a 50% reduction in our supply ended 31 December 2022 for the benefit The Capital Requirements (Country-by- chain emissions by 2030 (against a 2018 of the then directors, and at the date of Country reporting) Regulations 2013 base year) and a longer-term milestone of a this report are in force for the benefit of require the Company to publish additional 90% emissions reduction by 2050. In directors of Barclays Pension Funds information in respect of the year ended addition, we aim for 90% of our suppliers by Trustees Limited as trustee of the Barclays 31 December 2022. This information is addressable spend to have science-based Bank UK Retirement Fund, and Barclays included in the Barclays Country Snapshot emissions reduction targets in place by 2030. Executive Schemes Trustees Limited as available on the Barclays website: Also, this year we evolved our energy use Trustee of Barclays Capital International home.barclays/annualreport. intensity and on-site renewable energy Pension Scheme (No.1) and Barclays PLC reporting approach to include our global real Environment Funded Unapproved Retirement Benefits estate portfolio, beyond campuses. We Although financed emissions account for Scheme. The directors of the trustees are intend to work towards the milestones of a the greatest proportion of our climate indemnified against liability incurred in 2 115 kWh/m /year average energy use impact, addressing our operational connection with the trustees’ activities in intensity across our corporate offices and emissions is also important to meeting our relation to the Barclays Bank UK installing 10MW on-site renewable net zero by 2050 ambition. We are aiming Retirement Fund, Barclays Capital electricity capacity across our global real to integrate sustainability across the way International Pension Scheme (No.1) and estate portfolio by 2035. we run our business, from decarbonising Barclays PLC Funded Unapproved We have disclosed global GHG emissions our operations to managing our impact on Retirement Benefits Scheme. and energy use data as required by the biodiversity and nature. Large and Medium-sized Companies and Defining net zero operations Groups (Accounts and Reports) Regulations To reflect our commitment to reducing 2008. See the ESG Data Centre for further operational emissions beyond our Scope 1 details on our annual operational GHG and Scope 2 emissions, we are explicitly emissions since 2018, including our Scope 1, adding Scope 3 operational emissions to Scope 2 and Scope 3 business travel our net zero ambition. We now define net location-based and market-based zero operations as the state in which we emissions. We further provide insights on will achieve a greenhouse gas reduction of our annual waste production, energy and our Scope 1, Scope 2 and our Scope 3 water consumption and renewable a operational emissions consistent with a electricity consumption by country. o 1.5 C aligned pathway and counterbalance The ESG Data Centre within the ESG Resource Hub any residual emissions. + can be found at home.barclays/sustainability/esg- resource-hub/reporting-and-disclosures The standards available to understand and define net zero are rapidly evolving. We will Notes: continue to review and develop our own a We define our Scope 3 operational emissions to include approach to net zero operations as this supply chain, waste, business travel and leased assets b Global real estate portfolio includes offices, branches, subject area matures. Please see from campuses and data centres page 78 for more details of our net zero operations strategy.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 192 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Other statutory and regulatory information (continued) GHG Emissions Table and Notes Current Reporting Year Previous Reporting Year a 2022 2021 UK & Global UK & Global Offshore Area GHG Emissions Offshore Area GHG Emissions b Group GHG Emissions (CO e) 2 Δ Total CO e emissons (000' tonnes) 68.6 142.9 86.2 149.8 2 c Δ Scope 1 CO e emissions (000' tonnes) 12.8 20.0 16.5 23.2 2 d Δ Scope 2 CO e emissions (000' tonnes) 47.3 103.4 68.7 124.2 2 e Δ Scope 3 Business travel CO e emissions (000' tonnes) 8.5 19.4 0.9 2.4 2 Δ Energy consumption used to calculate above Scope 1 and 2 emissions (MWh) 286,727 467,939 375,121 559,240 Intensity Ratio Total Full-Time Employees (FTE) 44,000 87,400 44,100 81,600 f Δ Total CO e per FTE (tonnes) 1.56 1.63 1.95 1.84 2 Market-based emissions d Δ Scope 2 CO e market-based emissions (000' tonnes) 0 1.9 4.0 13.6 2 Total gross Scope 1 and 2 market-based CO e emissions (000' tonnes) 12.8 21.9 20.5 36.8 2 Notes a The carbon reporting year for our GHG emissions is 1 October to 30 September. The carbon reporting year is not fully aligned to the financial reporting year covered by this Directors’ Report. Details of our approach to assurance over the data is set out in the 2022 Barclays Strategic Report. b The methodology used to calculate our GHG emissions follows the 'Greenhouse Gas Protocol (GHG): A Corporate Accounting and Reporting Standard (Revised Edition)', defined by the World Resources Institute/World Business Council for Sustainable Development (WRI/WBCSD). We have adopted the operational control approach to define our reporting boundary. Emissions from leased buildings where Barclays do not manage the utility are excluded. Where Barclays is responsible for the utility costs, these emissions are included. Estimating the GHG emissions of working from home is a new activity with little or no precedent and with no common standard which is why we have not yet included it in our annual GHG inventory. We are evaluating different methodologies to estimate our remote working emissions moving forward. For 2022, we have applied the latest emission factors as of 31st December 2022. We continuously review and update our performance data based on updated GHG emission factors, improvements in data quality and updates to estimates previously applied. In 2022 prior year figures have been restated to reflect additional Scope 1 natural gas data that is now available for two large corporate offices. The restatement has been applied to all prior years to 2018. In addition, there is additional Scope 1 fuel data available for three locations globally that were not reported in prior years. We have also replaced estimated Scope 2 electricity data for select locations in the US with actual billing from utility providers that was not available at the time of reporting. Finally, corrections to Scope 2 electricity data in Switzerland and Netherlands have taken place due to incorrect meter reads. c Scope 1 emissions include our direct GHG emissions from natural gas, fuel oil, company cars and HFC refrigerants. In the case of company-owned vehicles, emissions are limited to UK vehicles only as this is the only country in which data is available. d Scope 2 GHG emissions include our direct GHG emissions from purchased electricity, purchased heat, cooling and steam . Market-based emissions have been reported for 2022 and 2021. We have used a zero emission factor where we have green tariffs or energy attribute certificates in place globally. e Scope 3 covers indirect emissions from business travel only. Business travel for these purposes compromises of: global flights and ground transport within the UK, US and India, however, in the case of the US and India ground transport covers onwards car hire only which has been provided directly by the supplier. Ground transportation data (excluding Scope 1 emissions from company-owned vehicles) covers only countries where robust data is available directly from the supplier. f Intensity ratio calculations have been calculated using location-based emission factors only. g Energy consumption data is captured through utility billing; meter reads or estimates. Principal measures we have undertaken in 2022 to improve energy efficiency include the following: • We have reduced our operational energy consumption by 30% against a 2018 baseline. At the end of 2021, we launched an Energy Optimisation Programme to help improve the energy efficiency of our global property portfolio. In the first 12 months of our five-year programme we saved 6GWh of energy, equivalent to the annual electricity consumption of approximately 2,000 UK households. • We have also focused on our own data centres, which consume a large amount of energy to operate. For example, we upgraded our cooling systems at our Cranford, New Jersey data centre, In just four months this upgrade led to an approximately 19% energy reduction for cooling alone, in comparison to the same period in 2021. We will continue to make investments in technology and systems to reduce the amount of energy we need to power our operations. Please refer to our Achieving net zero operations pillar for more details on our strategy. Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and-disclosures/ The rights and obligations attaching to the the senior holder (as determined by the Research and development Company's ordinary shares and order in the share register) or his/her proxy In the ordinary course of business, the preference shares are set out in the may be counted. If any sum payable Group develops new products and Company's Articles, copies of which are remains unpaid in relation to a member’s services in each of its business divisions. available on the Company's website at shareholding, that member is not entitled Share capital home.barclays/corporategovernance. to vote that share or exercise any other right in relation to a meeting of the Share capital structure Voting Company unless the Board otherwise The Company has ordinary shares in issue. Every member who is present in person or determines. The Company’s Articles also allow for the represented at any general meeting of the If any member, or any other person issuance of sterling, US dollar, euro and Company, and who is entitled to vote, has appearing to be interested in any of the yen preference shares (preference one vote on a show of hands. Every proxy Company’s ordinary shares, is served with shares). No preference shares have been present has one vote. The proxy will have a notice under Section 793 of the issued as at 13 February 2023 (the latest one vote for, and one vote against, a Companies Act 2006 and does not supply practicable date for inclusion in this report). resolution if he/she has been instructed to the Company with the information Ordinary shares therefore represent 100% vote for, or against, the resolution by required in the notice, then the Board, in its of the total issued share capital as at 31 different members or in one direction by a absolute discretion, may direct that that December 2022 and as at 13 February member while another member has member shall not be entitled to attend or 2023 (the latest practicable date for permitted the proxy discretion as to how vote at any meeting of the Company. inclusion in this report). to vote. Details of the movement in ordinary share On a poll, every member who is present in capital during the year can be found in person or by proxy and who is entitled to Note 28 on page 488. vote has one vote for every share held. In the case of joint holders, only the vote of

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 193 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Other statutory and regulatory information (continued) The Board may further direct that, if the required by the Board to evidence right to The trustees of the EBTs may exercise all shares of the defaulting member transfer, (ii) it is in respect of one class of rights attached to the shares in accordance with their fiduciary duties, represent 0.25% or more of the issued shares only, and (iii) it is in favour of a single shares of the relevant class, dividends or transferee or not more than four joint other than as specifically restricted in the other monies payable on those shares transferees (except in the case of documents governing the Plans. The shall be retained by the Company until the executors or trustees of a member). trustees of the EBTs have informed the direction ceases to have effect and no Company that their normal policy is to The Company is not aware of any abstain from voting in respect of the transfer of those shares shall be registered agreements between holders of securities (other than certain specified ‘excepted Barclays shares held in trust. The trustees that may result in restrictions on the transfers’). A direction ceases to have of the Global Sharepurchase EBT and UK transfer of securities or voting rights. effect seven days after the Company has Sharepurchase EBT may vote in respect of Variation of rights received the information requested, or Barclays shares held in the EBTs, but only The rights attached to any class of shares as instructed by participants in those Plans when the Company is notified that an may be varied either with the consent in excepted transfer of all of the relevant in respect of their partnership shares and writing of the holders of at least 75% in shares to a third party has occurred, or as (when vested) matching and dividend nominal value of the issued shares of that the Board otherwise determines. shares. The trustees will not otherwise class, or with the sanction of a special vote in respect of shares held in the Transfers resolution passed at a separate meeting of Sharepurchase EBTs. Ordinary shares may be held in either the holders of the shares of that class. The Special rights certificated or uncertificated form. rights of shares shall not (unless expressly Certificated ordinary shares may be There are no persons holding securities provided by the rights attached to such that carry special rights with regard to the transferred in writing in any usual or other shares) be deemed varied by the creation form approved by the Group Company control of the Company. of further shares ranking equally with them Secretary and executed by or on behalf of or subsequent to them. Major shareholders the transferor. Transfers of uncertificated Major shareholders do not have different Limitations on foreign shareholders ordinary shares must be made in voting rights from those of other There are no restrictions imposed by the accordance with the Companies Act 2006 shareholders. Information provided to the Articles or (subject to the effect of any and the CREST Regulations. Company by substantial shareholders economic sanctions that may be in force The Board is not bound to register a (holding voting rights of 3% or more in the from time to time) by current UK laws transfer of partly paid ordinary shares or financial instruments of the Company) which relate only to non-residents of the fully paid shares in exceptional pursuant to the DTRs are published via a UK and which limit the rights of such non- circumstances approved by the FCA. The Regulatory Information Service and is residents to hold or (when entitled to do Board may also decline to register an available on the Company’s website. As at so) vote the ordinary shares. instrument of transfer of certificated 31 December 2022, the Company had Exercisability of rights under an ordinary shares unless (i) it is duly stamped, been notified under Rule 5 of the DTRs of employee share scheme deposited at the prescribed place and the following holdings of voting rights in its EBTs operate in connection with certain of accompanied by the share certificate(s) shares. the Group’s Employee Share Plans (Plans). and such other evidence as reasonably % of total voting rights Number of Barclays attaching to issued Nature of holding (direct a Person interested Shares share capital or indirect) b BlackRock Inc 944,022,209 5.78 indirect c Qatar Holding LLC 1,017,455,690 5.99 direct Notes a The percentage of voting rights detailed above was calculated at the time of the relevant disclosures made in accordance with Rule 5 of the DTRs. b Total shown includes 6,687,206 contracts for difference to which voting rights are attached. Part of the holding is held as American Depositary Receipts. On 7 February 2023, BlackRock, Inc. disclosed by way of a Schedule 13G filed with the SEC beneficial ownership of 1,383,730,106 ordinary shares of the Company as at 31 December 2022, representing 8.7% of that class of shares. c Qatar Holding LLC is wholly owned by Qatar Investment Authority. On 16 January 2023, Qatar Investment Authority disclosed by way of a Schedule 13G filed with the SEC beneficial ownership of 800,120,690 ordinary shares of the Company as at 31 December 2022, representing 5.04% of that class of shares.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 194 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Other statutory and regulatory information (continued) Between 31 December 2022 and shares repurchased as part of the first and • accurately and fairly reflect transactions 13 February 2023 (the latest practicable second share buy-back programmes). and dispositions of assets date for inclusion in this report), the Distributable reserves • provide reasonable assurances that Company has not received any additional transactions are recorded as necessary As at 31 December 2022, the distributable notifications pursuant to Rule 5 of the to permit preparation of financial reserves of the Company were £21,701m DTRs. statements in accordance with UK- (2021: £20,750m). adopted international accounting Powers of Directors to issue and allot or Change of control standards and IFRS and that receipts buy back the Company’s shares There are no significant agreements to and expenditures are being made only in The powers of the Directors are which the Company is a party that take accordance with authorisations of determined by the Companies Act 2006 effect, alter or terminate on a change of management and the respective and the Company’s Articles. The Directors control of the Company following a Directors are authorised to issue and allot shares takeover bid. There are no agreements • provide reasonable assurance regarding and to buy back shares subject to, and on between the Company and its Directors or prevention or timely detection of the terms of, the annual shareholder employees providing for compensation for unauthorised acquisition, use or approval at the AGM. Such authorities loss of office or employment that occurs disposition of assets that could have a were granted by shareholders at the 2022 because of a takeover bid. material effect on the financial AGM. It will be proposed at the 2023 AGM Controls over financial reporting statements. that the Directors be granted new A framework of disclosure controls and authorities to issue and allot and buy back Internal control systems, no matter how procedures is in place to support the shares. well designed, have inherent limitations approval of the financial statements of the and may not prevent or detect Repurchase of shares Group. misstatements. Also, projections of any On 24 May 2022 and 17 August 2022 the evaluation of effectiveness to future Specific governance committees are Company commenced share buy-back periods are subject to the risk that internal responsible for examining the financial programmes to purchase its ordinary control over financial reporting may reports and disclosures to help ensure that shares of £0.25p each up a maximum become inadequate because of changes in they have been subject to adequate consideration of £1,000m and £500m, conditions or that the degree of verification and comply with applicable respectively. The first share buy-back compliance with the policies or procedures standards and legislation. programme concluded on 16 August 2022 may deteriorate. and the second share buy-back Where appropriate, these committees Management has assessed internal programme concluded on 3 October report their conclusions to the Board Audit control over financial reporting as at 31 2022. The Company repurchased for Committee, which debates such December 2022. In making its cancellation 625,019,884 ordinary shares conclusions and provides further assessment, management utilised the at a volume weighted average price of challenge. Finally, the Board scrutinises and criteria set out in the 2013 COSO 159.9949 pence per ordinary share during approves results announcements and the framework. Management has specifically the first buy-back programme and Annual Report to ensure that appropriate assessed the controls put in place to 306,326,717 ordinary shares at a volume disclosures have been made. This address the material weakness in internal weighted average price of 163.2241 pence governance process is designed to ensure control over financial reporting relating to per ordinary share during the second buy- that both management and the Board are the Over-issuance of Securities, as further back programme. The purpose of the buy- given sufficient opportunity to debate and discussed below. Management has back programmes was to reduce the challenge the financial statements of the concluded that, based on its assessment, Company’s number of outstanding Group and other significant disclosures internal control over financial reporting ordinary shares. before they are made public. was effective as at 31 December 2022. In aggregate, the Company purchased Management’s report on internal control over financial reporting The system of internal financial and 931,346,601 ordinary shares during 2022 operational controls is also subject to with an aggregate nominal value of Management is responsible for regulatory oversight in the UK and approximately £233m (this represented establishing and maintaining adequate overseas. Further information on approximately 5.9% of the Company's internal control over financial reporting supervision by financial services regulators issued share capital as at 31 December under the supervision of the principal is provided under Supervision and 2022) for an aggregate consideration of executive and financial officers, to provide Regulation in the Risk review section on £1,500m excluding taxes and expenses. reasonable assurance regarding the pages 370 to 377. All of the repurchased ordinary shares reliability of financial reporting and the have been cancelled. preparation of financial statements, in Identification and remediation of a accordance with (a) UK-adopted material weakness No further shares have been repurchased international accounting standards; and (b) since the completion of the second share A material weakness is a deficiency, or a International Financial Reporting buy-back programme on 3 October 2022. combination of deficiencies, in internal Standards (IFRS) as issued by the The maximum number of ordinary shares control over financial reporting such that International Accounting Standards Board which could be repurchased by the there is a reasonable possibility that a (IASB), including interpretations issued by Company as part of any share buy-back material misstatement of the Company’s the IFRS Interpretations Committee. under the authority for on-market share annual or interim financial statements will buy-backs granted at the 2022 AGM is not be prevented or detected on a timely Internal control over financial reporting 744,815,359 ordinary shares (being basis. includes policies and procedures that 1,676,161,960 less the 931,346,601 pertain to the maintenance of records that, in reasonable detail:

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 195 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Other statutory and regulatory information (continued) In March 2022, the Company’s Changes in internal control over financial In preparing each of the Group and reporting management became aware that BBPLC company financial statements, the Directors are required to: had issued securities materially in excess As noted above, management has of the amount BBPLC had registered with strengthened and effectively operated • assess the Group and company’s ability the SEC under its 2019 US shelf controls to remediate the material to continue as a going concern, registration statement and subsequently weakness in respect of the Over-issuance disclosing, as applicable, matters related became aware that securities had also of Securities which was identified in March to going concern been issued in excess of the set amount 2022. These remediation efforts represent • use the going concern basis of under the predecessor US shelf a significant improvement to the accounting unless they either intend to registration statement. A proportion of the Company’s internal control environment. liquidate the Group or the Parent costs associated with the impact of the There have been no other changes to company or to cease operations, or Over-issuance of Securities was highlight during the period covered by this have no realistic alternative but to do so. attributable to the Company’s financial report, which have materially affected or Preparation of accounts statements for the year ended 31 are reasonably likely to materially affect the December 2021. Accordingly, in the UK, The Directors are required by the Group’s internal control over financial the Company has restated the prior period Companies Act 2006 to prepare Group reporting. comparatives in this 2022 Annual Report and Company accounts for each financial Disclosure of information to the auditor and Accounts to reflect the impact of the year and, with regard to Group accounts, in Each Director confirms that, so far as he/ Over-issuance of Securities. In the US, the accordance with UK-adopted international she is aware, there is no relevant audit Company amended its annual report on accounting standards. The Directors have information of which our auditor is Form 20-F for the year ended 31 prepared these accounts in accordance unaware and that each of the Directors December 2021 to include restated with (a) UK-adopted international has taken all the steps that he/she ought financial statements to reflect the impact accounting standards; and (b) IFRS as to have taken as a Director to make of the Over-issuance of Securities. issued by the IASB, including himself/herself aware of any relevant audit interpretations issued by the IFRS The fact that the Over-issuance of information and to establish that our Interpretations Committee. Pursuant to Securities occurred and was not auditor is aware of that information. This the Companies Act 2006, the Directors immediately identified highlighted a confirmation is given pursuant to Section must not approve the accounts unless weakness in controls over the 418 of the Companies Act 2006 and they are satisfied that they give a true and identification of external regulatory limits should be interpreted in accordance with, fair view of the state of affairs of the Group related to securities issuance and and subject to, those provisions. and the Company and of their profit or loss monitoring against these limits that for that period. Directors’ responsibilities constituted a material weakness in internal control over financial reporting under The Directors consider that, in preparing The following statement, which should be “COSO Principle 9: Identifies and Analyses the financial statements, the Group and read in conjunction with the Auditor’s Significant Change - The organisation the Company have used appropriate report set out on pages 399 to 415, is identifies and assesses changes that could accounting policies, supported by made with a view to distinguishing for significantly impact the system of internal reasonable judgements and estimates, shareholders the respective control”. and that all accounting standards which responsibilities of the Directors and of the they consider to be applicable have been auditor in relation to the accounts. Since the identification of this material followed. weakness, management has strengthened Going concern the internal controls relating to the The Directors are satisfied that the Annual The Group’s business activities and factors tracking of issuance programme limits Report and financial statements, taken as a likely to affect its future development and through the implementation and whole, are fair, balanced and performance are disclosed in the Strategic strengthening of a series of controls understandable, and provide the report and Risk Review sections of this across the Group, together with central information necessary for shareholders to report. The financial performance is governance, with key actions being: assess the Group and Company’s position disclosed within the Financial Review with and performance, business model and funding, liquidity and capital details • development of a Group Issuance strategy. contained within the Risk Performance Standard, which includes minimum section. The Group’s objectives and control requirements The Directors are responsible for such policies in managing the financial risks to internal controls as they determine are • documentation of, and agreement on, which it is exposed are discussed in the necessary to enable the preparation of roles and responsibilities Risk Management section. financial statements that are free from • implementation of a Group Issuance material misstatement, whether due to The Directors considered it appropriate to Oversight Committee, with senior fraud or error. prepare the financial statements on a management representation, to going concern basis. Directors’ responsibility statement monitor issuance activity against agreed The Directors have responsibility for limits. ensuring that the Company and the Group The strengthened controls over financial keep accounting records which disclose reporting have operated for a sufficient with reasonable accuracy the financial period of time and management has position of the Company and the Group concluded, through testing, that these and which enable them to ensure that the controls are operating effectively. accounts comply with the Companies Act 2006.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 196 report information sustainability report Governance review review statements Annual Report 2022 Directors’ report: Other statutory and regulatory information (continued) The Directors are also responsible for preparing a Strategic report, Directors’ report, Directors’ Remuneration report and Corporate Governance Statement in accordance with applicable law and regulations. The Directors are responsible for the maintenance and integrity of the Annual Report and Financial Statements as they appear on our website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Directors have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. The Directors, whose names and functions are set out on pages 143 to 146, confirm to the best of their knowledge that: (a) the financial statements, prepared in accordance with (i) UK-adopted international accounting standards; and (ii) IFRS as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and (b) the management report, on pages 2 to 68, which is incorporated in the Directors’ report, includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the Principal Risks and uncertainties that they face. Auditor’s report The Auditor’s report on the Financial Statements of Barclays PLC for the year ended 31 December 2022 was unmodified and its statement under Section 496 of the Companies Act 2006 was also unmodified. By order of the Board Stephen Shapiro Company Secretary 14 February 2023 Registered in England. Company No. 48839 Registered office: 1 Churchill Place, London E14 5HP

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 197 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report Annual statement from the Chair of the Board Remuneration Committee The Over-issuance of Securities under Dear Fellow Shareholders Contents BBPLC's US shelf registration statements On behalf of the Board, I am pleased to Annual statement 197 was a deeply disappointing feature of present the Remuneration report for 2022. Remuneration philosophy 204 2022. A review of the facts and 2022 was another year of extraordinary circumstances was completed by external Fair Pay at a glance 207 economic and political uncertainty, with counsel and the Committee has taken the Employee remuneration policy far-reaching consequences for our findings of that review seriously. We have summary 208 economy and society. Our strategy and thoughtfully and deliberately adjusted our diversified universal banking model were Directors’ remuneration policy 209 remuneration decisions to ensure that this once again put to the test and proved over-issuance matter is reflected. Annual report on Directors’ resilient and robust, delivering double-digit remuneration 218 With all of the above in mind, I explain in this returns in each of our three main lines of statement our key stakeholder business. We achieved our target of considerations this year, the remuneration generating a Group return on tangible Board Remuneration decisions we’ve made and our areas of equity (RoTE) greater than 10%, while focus for 2023. Committee providing much-needed support to customers, clients and communities in Our new Directors’ Brian Gilvary Chair, Board Remuneration Committee periods of difficulty. remuneration policy The Group has provided stability and I would like to thank shareholders for support in an uncertain economic supporting the 2021 implementation of environment. Our performance this year is our current Directors’ remuneration policy set against a backdrop of higher inflation, (DRP) at our last Annual General Meeting slower economic growth, political (AGM), in May 2022, where it received 89% uncertainty and extreme shock of the of votes in favour. Russian invasion of Ukraine, during an Shareholders approved our current DRP in already-challenging time as the world still 2020, to apply for three years. In this report suffers the longer-term impacts of the we set out our proposed new DRP, which – COVID-19 pandemic. Our employees have but for one relatively minor change – is been steadfast in their commitment to substantially the same as the current DRP, meeting the needs of our customers and for shareholder approval at the upcoming clients, whether helping retail customers 2023 AGM. manage their finances, providing additional Committee membership and a The Committee reviewed the current DRP support to vulnerable customers facing meeting attendance and concluded that it has been operating challenges due to inflationary pressures, or Meetings attended/ eligible to attend effectively and is well aligned with our helping institutional and corporate clients (including ad hoc remuneration philosophy. We were keen to navigate market volatility. meetings) Member ensure that the remuneration policy for We have considered stakeholder Brian Gilvary 7/7 Executive Directors remains aligned with perspectives carefully when making Dawn Fitzpatrick 6/7 that for the wider workforce wherever remuneration decisions. Those decisions Mary Francis 7/7 appropriate. Over the three-year life of the reflect our financial and non-financial current DRP, we have regularly discussed Note performance, both absolute and relative, a There were five scheduled meetings and two ad hoc remuneration policies and outcomes with as well as the execution of our strategy, meetings of the Committee in 2022. Owing to a prior major shareholders, to explain our thinking commitment, Dawn Fitzpatrick was unable to attend our risk and controls and our commitment one scheduled meeting of the Committee. and gather feedback, and we are grateful to Fair Pay. You can read more about our to those shareholders for their helpful and approach to pay fairness in our fifth annual You can find more information on our approach to pay productive engagement. As a result, the + Fair Pay Report, published alongside this fairness in our Fair Pay Report at: home.barclays/ only material change proposed is to annualreport Annual Report. We have also published our simplify the shareholding requirements for pay gap figures for employees in the UK Our UK pay gap figures for 2022 and narrative the Executive Directors and align the + explaining them are available at: home.barclays/ and in Ireland. diversity operation of those requirements with market practice, as summarised in the table overleaf. The full new DRP is set out later in this Remuneration report.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 198 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Proposed changes to the DRP DRP element Proposed change and rationale Shareholding The level of shareholding that the Executive Directors are required to build up will remain unchanged. requirement We propose to align the definition of which shares count towards that requirement with market practice, which is simpler and provides a more consistent treatment during and after employment. Currently, shares from unvested deferred bonuses and unvested Long Term Incentive Plan (LTIP) awards do not count towards the shareholding requirement during employment, but do count towards post- termination shareholding requirements (net of estimated taxes) provided there are no remaining performance conditions. In the new DRP those shares will count towards the requirement during employment, as well as post-termination. We also propose to simplify and align with market norms the post-employment requirement. For two years after stepping down as an Executive Director, they must maintain a shareholding equal to the number of shares required to be held immediately prior to stepping down as an Executive Director, or the actual number of shares held on stepping down if lower (provided that the Committee is satisfied that the resulting shareholding is appropriate given the relevant Executive Director’s tenure). The Bank of England published a We continue to invest in our business while We worked closely with Unite, our consultation paper in December 2022 maintaining focus on costs. Statutory recognised UK trade union, to agree a setting out joint proposals from the PRA costs for 2022 were £16.7bn, including the 2023 UK pay deal that, combined with the and FCA to remove the regulatory limit on impact of the Over-issuance of Securities increases in August 2022, brought the the level of variable pay relative to fixed pay in the US. Operating costs, which exclude total salary increase budget to 11% for our in banks. The consultation timings would litigation and conduct, increased 6% lowest-paid colleagues, or 6.75% for other suggest that for Barclays any such change compared to income growth of 14%, union-recognised colleagues. We would come into effect from performance including the impact of sizeable recognise the need to manage costs and year 2024. We will consider the movements in foreign exchange rates and as such these higher-than-normal implications of any revised rules – both for inflation. This translated into a 9% increase increases do not apply to senior the DRP and more widely within Barclays – in profit before impairment (having moved management roles or to most business over the course of 2023 and engage with from a net credit impairment release in areas within CIB. shareholders if we are considering making 2021 to a net impairment charge in 2022). Paying at least a living wage to all our changes to the DRP. We generated a RoTE of 10.4%, achieving colleagues is a central element of our Fair our greater-than-10% target, and ended Pay Agenda and we continue to ensure we Performance in 2022 the year with a CET1 ratio of 13.9%, within at least meet living wage benchmarks for Our commitment, as ever, is to a our target range of 13% to 14%. We will each country and consider the inflationary remuneration approach that rewards return £2.2bn to shareholders in respect of pressures our employees face. We are sustainable performance, which is a key 2022, via a total dividend for the year of increasing our minimum UK full time element of our remuneration philosophy, 7.25p per share and £1.0bn of announced equivalent salary to £22,250 and we as outlined on page 204. The robust share buy-backs, which is equivalent to a continue to exceed the Living Wage operating performance we achieved in total pay-out of c.13.4p per share. Foundation's benchmarks. In the US, we 2021 was sustained and extended through reviewed the pay of our lowest paid 2022. In 2022, we saw broad-based Colleague remuneration colleagues resulting in a salary increase income momentum across all three of our Our Fair Pay Agenda is at the heart of the budget of 9% and colleagues will be paid at operating businesses, delivering a 14% decisions we make on colleague least $22.50 per hour. Our lowest-paid increase in Group income. remuneration. This is particularly pertinent colleagues in India will receive an average The strength and consistency of our given the challenges faced by colleagues increase of 10%. In all other locations, we underlying performance further due to sharp increases in the cost of living, continue to exceed the Fair Wage Network demonstrates the value of our diversified particularly for our lower-paid colleagues. living wage benchmarks for each country. business model in delivering for our Effective 1 August 2022, Barclays We are also taking tangible actions to drive stakeholders through a range of economic increased by £1,200 the full-time greater transparency in our pay approach, conditions. 2022 saw another year of equivalent annual pensionable salary for continuing to simplify reward for junior strong performance in the Corporate and 35,000 more-junior UK employees in colleagues. From March 2023, for our Investment Bank (CIB), with Global Markets customer-facing and support roles, most junior roles in Barclays UK and income up 38% as we supported our bringing forward part of the March 2023 support functions, pay levels and annual clients in very challenging market annual pay review. We also brought a increases will be determined by role type, conditions and performed strongly against portion of the March 2023 annual pay bonus approaches will be harmonised for competitors, more than offsetting review forward into 2022 for junior future years, and starting salaries will be subdued Investment Banking fees. Income employees across most of our main published. This is simpler and more was also up in Barclays UK and in European offices, or in Germany made transparent, making it easier for colleagues Consumer, Cards and Payments, one-off payments as that was more to understand how their pay is set and supported by balanced growth and rising appropriate under local rules. managed. interest rates.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 199 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) This year’s incentive pool reflects all the The Committee considered this range of Group income elements set out at the start of this complex factors and concluded that this statement. The Committee wanted to year’s incentive funding achieves the right £24,956m recognise the strong performance across balance. A significant downward our three operating businesses, and in adjustment of c.£500m to reflect risk and 2021: £21,940m particular that of our Global Markets control issues, including the Over- Group profit before tax business. As well as good operating issuance of Securities in the US and the (before impairment) performance and delivery against our monetary penalties imposed by the SEC targets in 2022, colleagues have adapted and CFTC for the use of unauthorised to the rapidly changing external business communications channels, is £8,232m environment to support clients and balanced against the strong performance a 2021: £7,541m customers in an extraordinary year. in most parts of the Group during the year, Whether it was CIB support for clients in which the Committee believes it is right to Group profit before tax the immediate aftermath of the Ukraine recognise. We believe that this level of invasion or during the pension fund liquidity incentive funding is appropriate given £7,012m issue in the early autumn, or retail and delivery against our targets and that it is a small business customers requiring urgent consistent with our philosophy of 2021: £8,194m assistance to manage their daily expenses, rewarding sustainable performance, which Group RoTE colleagues responded with dedication, in turn supports our long-term strategy to pace and professionalism. deliver attractive returns to shareholders. Set against those positive factors, the As always, a significant portion of the pool 10.4% Committee was mindful of the is delivered in shares, most of which will be a 2021: 13.1% unsatisfactory impact of litigation and deferred over a number of years, ensuring conduct issues, including the Over- further alignment with shareholders. Cost: income ratio issuance of Securities in the US, on both Those deferrals are subject to malus our financial performance and our conditions. For Material Risk Takers, 67% reputation. Our incentive funding including the Executive Directors, deferrals a and the upfront elements of incentive incorporates a significant reduction to 2021: 67% reflect the impact of risk and control awards are also subject to clawback CET1 ratio issues, as set out later in this statement. conditions, which may apply in a broad set of circumstances including individual Taking all of this into account, the misbehaviour or material failures of risk Committee has approved a Group 13.9% management. incentive pool of £1,790m (2021: a 2021: 15.1% £1,945m). This level of incentive pool Executive Director remuneration funding has enabled us to recognise the Group compensation to income ratio Remuneration arrangements in respect strong performance that has been of the Group Finance Director achieved and to reward the teams and succession 33.5% individuals responsible for that On 22 February 2022, Tushar Morzaria performance. It has also allowed us to 2021: 34.7% informed the Board of his intention to continue to manage the challenges of the retire from the Board and as Group Group incentive pool competitive global market, to attract and Finance Director, and the Board agreed retain the talent required to deliver against that would take effect on 22 April 2022. our objectives. We fully recognised the £1,790m Due to the timing, the remuneration importance of maintaining cost discipline, arrangements in connection with his 2021: £1,945m not paying more than is necessary, and retirement from the Board and those for ensuring the cost of litigation and conduct his successor, Anna Cross, were not issues has a clear impact on pay reflected in last year’s Remuneration outcomes. Furthermore, changes in report but rather were set out in a separate foreign exchange rates mean the cost of announcement to the market on 23 paying bonuses outside the UK has February 2022. increased year-on-year so in practice the incentive pool is down more than it appears at the headline level. Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Impact of the Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 200 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) In response to Tushar stepping down as an For 2022, Anna and Tushar were each This LTIP award was granted in line with Executive Director, the Committee awarded a pro-rata discretionary annual our usual annual timetable, in March 2020, at a time when global markets were falling determined that the 2022-2024 LTIP bonus award for the respective portions of award and the 1 March 2022 Fixed Pay 2022 that they served as Group Finance as the start of the COVID-19 pandemic increase for Tushar that were disclosed in Director. They also each received a unfolded. The market share price at grant last year’s Remuneration report would not separate discretionary incentive award in was 22% below the market share price at be implemented. Tushar’s bonus in respect of the portion of 2022 during the time of the previous year’s LTIP grant. The Committee reviewed a range of respect of performance in 2021 remained which they were carrying out other roles in as disclosed in the Remuneration report, Barclays, which are not included within this analyses to assess whether any element of save that a larger portion will vest over report as they do not relate to service as this LTIP vesting represents a ‘windfall years 3 to 7 and a smaller portion over an Executive Director. gain’. The 2020-2022 LTIP was not years 1 to 2 because of the LTIP award not granted at the bottom of the market, as Determining Executive Directors' pay the share price (and the value of the LTIP being granted. For 2022, Tushar is eligible outcomes to receive a pro-rata discretionary annual awards) dropped by a third over the The Committee considered the Executive bonus award for his part-year following weeks. The Committee did not Directors’ annual bonus and LTIP performance as Group Finance Director, in consider Barclays’ share price increase outcomes in the context of the Group’s line with the DRP. There are no other over the performance period since grant, performance, and the performance of equivalent to 9% per annum, to have been remuneration payments in relation to his each Executive Director, during 2022. stepping down as an Executive Director. excessive but rather that it was On the financial measures for the annual He continues to work within Barclays in commensurate with underlying corporate bonus, profit before tax provided a 40.8% other roles and so is not treated as a leaver performance. Group RoTE exceeded 10% a outcome out of 50% and the cost: income in respect of any deferred bonus or LTIP in both 2021 and 2022, up from 9.0% in ratio provided a 3.6% outcome out of 10%. the financial year immediately prior to awards. With good performance against the grant and building on the Group’s RoTE Anna Cross was appointed Group Finance strategic non-financial measures, this progression from 2017 through 2019. As a Director from 23 April 2022. The resulted in a 2022 bonus outcome equal to result, we concluded that there was no remuneration arrangements that the 75.4% of maximum for C.S. windfall gain and therefore no adjustment Committee agreed on her appointment Venkatakrishnan (known as Venkat), 75.4% was required. More information on the reflect her role and responsibilities and are of maximum for Anna and 74.4% of Committee's considerations in relation to in accordance with the current DRP. maximum for Tushar, after factoring in the windfall gains is provided in the 2020-2022 Anna’s Fixed Pay was set at £1,725,000, performance of each against their LTIP section of the Annual report on delivered 50% in cash, paid monthly, and personal objectives. Directors' remuneration. 50% in Barclays shares. Fixed Pay shares Neither Venkat nor Anna received a The Committee reflected on the are delivered quarterly, subject to a holding 2020-2022 LTIP award as they were not period with restrictions lifting over 5 years. appropriateness of the outcomes for both Executive Directors at the time it was Anna receives a cash allowance in lieu of the 2022 bonus and 2020-2022 LTIP. We granted. The outcome for Tushar’s pension equal to 5% of Fixed Pay, and reviewed the underlying financial health of 2020-2022 LTIP was 70.0%, reflecting standard benefits including medical cover the Group, which is strong and well- strong pro-forma RoTE and good capitalised. We considered the bonus and life assurance. Each year, Anna is performance against the strategic non- eligible to be considered for a discretionary outcomes in the context of the bonus financial measures. In light of the Over- annual bonus award and LTIP award in line outcomes for the wider workforce, issuance of Securities, the Committee did with the DRP, up to a maximum value of ensuring appropriate alignment both this not assess the Control environment 90% of Fixed Pay for bonus and 134% of year and over a multi-year period, and also element of the LTIP Risk scorecard but compared to historical outcomes for the Fixed Pay for the LTIP. instead elected to set this element of the Executive Directors in the context of In setting the remuneration for Anna, the LTIP to zero. performance each year. We concluded Committee considered the skills and that the outcomes are appropriate in the relevant experience that she brings, and context of the performance achieved and the benefits of strong and sustainable that no further discretionary adjustment leadership in this critical role. We also was warranted. considered pay levels at comparable firms and the competitive market for talent. We The Committee decided to grant awards concluded that this level of Fixed Pay was under the 2023-2025 LTIP cycle with a an appropriate starting point, while noting face value at grant of 140% of Fixed Pay for Venkat and 134% of Fixed Pay for that the maximum total compensation opportunity that this provides is low Anna, reflecting the personal contribution compared with our international banking made by each to strong 2022 peer group. performance and to provide each with a significant incentive award subject to forward-looking performance conditions during 2023-2025. Note a Excludes litigation and conduct. Group RoTE for 2019 including litigation and conduct was 5.3%.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 201 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Reduction in Executive Director bonus The Committee carefully considered the The Board reviewed the other Non- for 2021 and 2019-2021 LTIP vesting Executive Directors’ fees during 2022 and performance measures for the Executive in December approved (with the impacted Directors' 2023 annual bonus and the The Over-issuance of Securities resulted Non-Executive Directors having recused 2023-2025 LTIP. Our conclusion was that in the restatement of the 2021 financial themselves from discussion) an increase in the measures that we adopted last year statements, as well as adversely impacting those fees of 5% with effect from continue to represent the most relevant 2022 performance. Consequently, we 1 January 2023. This is equivalent to 1.6% building blocks towards our key longer- revisited the 2021 annual bonus outcomes per annum compounded over the period term financial and non-financial goals. The for Venkat and Tushar, and the 2019-2021 since any of these fees were last Committee will continue to review the LTIP outcome for Tushar. The Committee increased, with effect from 1 January measures and weightings for the Executive reduced the outcomes of the financial 2020. There have been no other increases Directors' incentives to ensure that they measures to reflect that restatement, and in those fees during the three-year term of appropriately support the delivery of our the outstanding deferred elements of the current DRP. strategy. those annual bonus and LTIP awards will be Risk and control impacts on reduced accordingly. Venkat and Tushar Shareholder alignment remuneration were both supportive of this. Of the total variable pay awards (annual We have considered the significant impact No changes were made to any in-flight bonus plus LTIP) to be granted to Venkat on the Group of risk and control issues LTIP awards and the performance and Anna, 97% and 96% respectively will during 2022 throughout our remuneration measures and targets for those awards be in shares that must be retained for a decision-making this year, including the have not been altered. The Committee will period of between one and eight years financial impact, the reputational impacts determine the vesting of those awards in from grant, aligning the Executive and how these events reflect on our due course, following the end of the Directors' interests more closely to the control environment. relevant performance period. shareholder experience. Both Venkat and Principally, our consideration has been Anna already have significant The Executive Directors' pay in 2023 focused on the incentive pool for 2022. shareholdings and will continue building In February 2023, the Committee reviewed Our incentive funding incorporates a these over the coming years towards the the level of Fixed Pay for Venkat and Anna, significant reduction to reflect the impact level stipulated under the personal in the same way and at the same time as of risk and control issues, as referenced shareholding requirements. fixed pay was reviewed for the wider above. The Over-issuance of Securities in workforce. The maximum total Group Chair and Non-Executive the US was a key factor in determining compensation opportunity for each is Director fees these remuneration impacts and accounts driven by their level of Fixed Pay, and for for the majority of the incentive pool The Committee reviews the Group Chair's both is materially behind market when reduction. The monetary penalties fee from time to time and the current DRP compared to the equivalent total imposed by the SEC and CFTC for the use allows for fee increases of up to 20% compensation opportunity for comparable of unauthorised business communications during the three-year term of the policy. In roles in our international banking peer channels were also taken into account. practice, the Group Chair's fee has group. remained at the same level since 2015. In Incentive pool Reduction The Committee considered this relative February 2023, the Committee considered 2022 incentive pool reduction c.£500m market positioning, in the context of the the fee in the context of the chair fees paid strong performance and significant across our international banking peer This reduction was c.£500m, which had an personal contribution made by each of the group, with a particular focus on the UK impact across the whole of Barclays but Executive Directors, and their continued banks, given the regional differences in was more focused in the areas of the development in their respective roles. both the role and pay for non-executive Group closest to where the incidents directors including chairs. The Committee The Committee increased Fixed Pay by occurred, resulting in larger year-on-year approved an increase in the Group Chair's 3.4% for Venkat and 4.3% for Anna, in line reductions in those areas. fee of 5%, from £800,000 to £840,000, with the current DRP, resulting in Fixed Pay The Committee ensured that certain effective 1 January 2023, equivalent to of £2,875,000 and £1,800,000 respectively individuals who identified and escalated the 1.6% per annum compounded over the from 1 March 2023. This percentage over-issuance or who were most central to three-year life of the current DRP. Of this, increase is significantly lower than the its remediation have been specifically £100,000 each year will continue to be average increase across the wider recognised and rewarded, reinforcing the used to purchase Barclays shares that are workforce, including the 11% and 6.75% culture that colleagues should speak out, retained on the Group Chair's behalf until spend on salary increases that were raise issues and work collaboratively to he retires from the Board. No other agreed as part of the 2023 UK pay deal. resolve those issues. On the other hand, changes to the Group Chair's Even after these Fixed Pay increases, the our review of individuals who may be remuneration arrangements or benefits total compensation opportunity for each considered responsible or otherwise were made. Executive Director remains well behind the accountable for the over-issuance is equivalent opportunity across our progressing. Once concluded, appropriate international banking peer group. action will be taken including negative adjustment to variable remuneration where applicable. As that review is ongoing, unvested variable remuneration of relevant persons will be suspended as required to allow the review to run its course.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 202 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) For the Executive Directors, the financial The review by external counsel into the Looking ahead measures for both the 2022 bonus and the facts and circumstances relating to the As the Group Chief Executive sets out in 2020-2022 LTIP awards are defined as Over-issuance of Securities concluded his review, although we have excluding material items (material one-off that the occurrence of the over-issuance demonstrated that our diversified model items that are typically called out within our was not the result of a general lack of can deliver attractive returns, our focus is financial reporting). The Committee attention to controls by Barclays, and that to be prepared for the road ahead to exercised its discretion not to exclude the Barclays’ management has consistently create further value for our customers, impacts associated with the Over- emphasised the importance of maintaining clients, investors and other stakeholders. issuance of Securities in the US or the effective controls. As such, although the As we move into 2023, the Committee monetary penalties imposed by the SEC financial impact of the over-issuance on maintains its commitment to rewarding and CFTC for the use of unauthorised the Group was significant, the Committee sustainable performance. We will continue business communications channels. As a concluded that reducing the Executive our focus on supporting management to result, the 2022 annual bonus awards were Directors’ incentive outcomes via the use our performance management and £403,000, £166,000 and £76,000 lower financial performance metrics, plus setting remuneration policies and practices to than they would otherwise have been, for the Control environment element of the incentivise and reward progress as we Venkat, Anna and Tushar respectively 2020-2022 LTIP Risk scorecard to zero, deliver our strategic goals, reinforce the (after pro-rating for Anna and Tushar). The was sufficient and appropriate. importance of good conduct, strong 2020-2022 LTIP vesting outcome was 5% Update in respect of Jes Staley’s controls and risk management, and less than it might have been, as the remuneration support Barclays' Values, Mindset and Committee set the Control environment culture. As outlined in last year’s Annual Report, on element of the LTIP Risk scorecard to 31 October 2021 the Board agreed with We will continue to engage with our zero. Jes Staley that he would step down from shareholders and other stakeholders on In addition, the Committee reduced the the role of Group Chief Executive with pay, and will be meeting with our largest 2021 annual bonus outcomes for Venkat immediate effect. In doing so, Mr Staley shareholders to discuss our pay outcomes and Tushar, and the 2019-2021 LTIP was legally and contractually entitled to 12 for 2022. outcome for Tushar, to reflect the impact months’ notice, during which he continued Beyond this, we will maintain focus on our of the restatement of the 2021 financial to receive his Fixed Pay and other benefits. Fair Pay Agenda, continuing to support statements on the financial metrics for Accordingly, his employment came to an colleagues through the challenges we all those awards, as outlined earlier. end in the usual way at the end of his face and furthering our work on pay In summary, the aggregate remuneration notice period, on 31 October 2022. simplification. We remain committed to impacts for the Executive Directors in this No further remuneration decisions have making sure that the way we pay our respect are as shown in the following table: been made in respect of Mr Staley. As people continues to support the long- outlined in last year’s Remuneration report, Executive Directors' incentive outcomes Reduction term health and success of the Group. his unvested awards remain suspended 2022 bonus outcomes £645,000 pending further developments in respect 2020-2022 LTIP outcome £213,000 of the regulatory and legal proceedings 2021 bonus outcomes £30,000 related to the FCA and PRA investigation regarding Mr Staley, including LTIP awards 2019-2021 LTIP outcome £116,000 that otherwise might have vested. Those Total £1,004,000 Brian Gilvary proceedings are ongoing. Chair, Board Remuneration Committee 14 February 2023

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 203 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Executive Director remuneration outcomes at a glance C.S. Venkatakrishnan a Annual bonus Total remuneration outcomes (£m) 2022 5.197 £1,949k Max for 9.725 2022 75.4% of maximum Fixed Pay Pension and benefits Annual bonus LTIP n n n n 75.4% Share ownership (£000) Date of appointment 1 November 2021 Annual bonus performance measures (% weighting) C.S. Venkatakrishnan has until 1 November 2026 (five years Financial (60%) from the date of his appointment Profit before tax (excluding material items) (50%) as an Executive Director) to meet this shareholding requirement. 81.6% As at 31 December 2022, based on vested shares only, as per the Cost:income ratio (excluding material items) (10%) current DRP, Q4 2022 average share price of £1.5315 and an 36.0% annualised Fixed Pay of £2,780k for C.S. Venkatakrishnan. Strategic non-financial (25%) 72.0% Personal objectives (15%) Actual n Requirement n 86.7% Anna Cross b c Annual bonus Total remuneration outcomes (£m) 2022 2.057 £803k Max for 2.321 2022 75.4% of maximum Fixed Pay Pension and benefits Annual bonus n n n 75.4% Share ownership (£000) Date of appointment 23 April 2022 Annual bonus performance measures (% weighting) Anna Cross has until 23 April 2027 (five years from the date of Financial (60%) her appointment as Executive Profit before tax (excluding material items) (50%) Director) to meet this shareholding requirement. As at 81.6% 31 December 2022, based on vested shares only, as per the Cost:income ratio (excluding material items) (10%) current DRP, Q4 2022 average share price of £1.5315 and an 36.0% annualised Fixed Pay of £1,725k for Anna Cross. Strategic non-financial (25%) 72.0% Personal objectives (15%) Actual n 86.7% Requirement n a C.S. Venkatakrishnan's LTIP value for 2022 is nil as he was not a participant in the 2020-2022 LTIP cycle. The LTIP value shown for his 2022 maximum is the maximum LTIP award value that he could have been granted under the current DRP (140% of Fixed Pay) multiplied by his 2022 year-end Fixed Pay. b Anna Cross was appointed as Group Finance Director on 23 April 2022. The bonus shown for 2022 is in respect of her service as an Executive Director during 2022. c Anna Cross was appointed as Group Finance Director on 23 April 2022. The values shown are in respect of her services as an Executive Director during 2022, with both the actual and maximum values pro-rated for the proportion of the year in that role. The LTIP value for 2022 is nil as she was not a participant in the 2020-2022 LTIP cycle. No LTIP value is shown for the 2022 maximum as she was only appointed as an Executive Director during the year.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 204 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Remuneration philosophy To attract and retain the people who can best deliver for our practices are transparently communicated and enable us to customers and clients, we must pay fairly and appropriately – reward sustainable performance in line with our Values, Mindset balancing the interests of all our stakeholders. Our policies and and risk expectations. This is our remuneration philosophy. Philosophy Long-term success depends on the talent of our employees. This means attracting and retaining an Attract and retain talent needed to appropriate range of talent to deliver against our strategy, and paying the right amount for that talent. deliver Barclays’ strategy Remuneration should be designed with appropriate consideration of the views, rights and interests of Align pay with investor and other stakeholders. This means listening to our shareholders, other investors, regulators, government, stakeholder interests customers and employees and ensuring their views are appropriately represented in remuneration decision-making. Sustainable performance means making a positive and enduring difference to investors, customers Reward sustainable performance and communities, taking pride in leaving things better than we found them and playing a valuable role in society. Results must be achieved in a manner consistent with our Values. Our Values, culture and Mindset Support Barclays’ Values and culture should drive the way that business is conducted. Designed to reward employees for achieving results in line with the Group’s risk appetite and conduct Align with risk appetite, risk exposure expectations. and conduct expectations We are committed to ensuring pay is fair, simple and transparent for all our stakeholders. All employees Be fair, transparent and as simple as and stakeholders should understand how we reward our employees, and fairness should be a lens possible through which we make remuneration decisions. Specifically relating to our Executive Directors, we review the Our philosophy in action performance measures for the forward-looking incentives each Our remuneration philosophy applies to all of our employees year to ensure that we maintain alignment with our strategic globally, including our Executive Directors. The pay decisions set priorities and KPIs, and to ensure that the measures we select out in this report are a result of the application of our continue to be appropriate in light of current circumstances and remuneration philosophy during 2022. challenges. Alongside our key financial measures, our strategic Our philosophy and the way that we approach remuneration is non-financial performance objectives aim to ensure that the link designed to be as simple and clear as possible, while ensuring between individual incentive outcomes and the delivery of our strong alignment with risk and conduct as well as our Values and strategy, and the achievement of sustainable long-term Mindset. It is closely aligned with Provision 40 of the FRC’s UK performance, continues to be reinforced. The alignment of Corporate Governance Code, as shown in the table later in this executive pay to our culture was further supported by the section, and we have continued to be transparent on the resulting continued inclusion in the personal objectives for our Group Chief outcomes in this report. Executive of the responsibility to embed our Mindset across the We seek to consider the views of all of our stakeholders in organisation and continue to develop a high-performing culture in remuneration decision-making. In 2022, we achieved this by line with our Values. meeting with institutional shareholders to understand their views on our 2021 pay outcomes, engaging extensively with our regulators to ensure appropriate compliance with regulatory requirements, and continuing our partnership with Unite the Union in the UK to understand the views of their members and agree a new pay deal. We used our 2021 Fair Pay Report and internal communication channels to share information on our approach to pay with colleagues, including how executive remuneration aligns with the wider workforce pay policy, and we are now publishing our fifth Fair Pay Report to help do the same for 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 205 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Alignment with strategic priorities and stakeholder groups The table below sets out the performance measures used in the 2023 Executive Director bonus and the 2023-2025 LTIP, and Our three strategic priorities are reflected in the measures that outlines how these align to our strategic priorities, and to each of determine colleague incentives, including bonus and LTIP our key stakeholder groups. outcomes for the Executive Directors. Some of these performance measures are assessed annually while the full impact of delivering our strategy will only be seen over several years. Performance measures Included in Included in Alignment to Alignment to strategic pillars 2023 2023-2025 stakeholder groups annual LTIP Deliver next Deliver sustainable Capture opportunities Customers and clients, bonus generation, digitised growth in the CIB as we transition to a Colleagues, Society and consumer low-carbon economy Investors financial services Profit before tax Financial with CET1 ratio underpin Cost:income ratio Return on tangible equity (RoTE) CET1 ratio Relative total shareholder return (TSR) Personal Individual objectives for the Executive Directors are aligned to our Purpose and strategic priorities Including Customer Including Customer Including Climate and Strategic non-financial and client measures, and client measures, sustainability measures, A number of sources are used to such as: such as: such as: assess the success of our Including Colleague strategy and to provide a Barclays UK Net Global Markets Social, environmental measures, such as: balanced review of our Promoter Score (NPS) revenue ranking and and sustainability-linked Measures of performance, including both share financing facilitated Barclays UK colleague non-financial and financial complaints Investment Banking Reducing our financed engagement and measures global fee ranking emissions (our current colleague advocacy Consumer, Cards and and share estimate of our clients’ Payments US Gender and ethnicity activities based on our customer digital diversity disclosed engagement methodology) Achievement against our Strategic non- financial measures also benefits Investors The management of risk underpins the execution of our strategy. The internal and external Risk scorecard risks that the Group is exposed to as part of its ongoing activities are managed as part of our Captures a range of risks aligned business model. The current LTIP Risk scorecard measures performance against three broad with the annual risk alignment categories – Capital and liquidity, Control environment and Conduct – using a combination of framework quantitative and qualitative metrics Stakeholder groups Customers and clients – Supporting our customers and clients to achieve their goals with our products and services. Colleagues – Helping our colleagues across the world develop as professionals. Society – Providing support to our communities, and access to social and environmental financing to address societal need. Investors – Delivering attractive and sustainable shareholder returns on a foundation of a strong balance sheet.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 206 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Alignment with Provision 40 of the UK Corporate Governance Code Code requirements How the Committee has addressed the requirement • A clear remuneration philosophy with aligned policies and practices for Clarity – remuneration arrangements should be transparent and Executive Directors and the wider workforce promote effective engagement with shareholders and the • Our Fair Pay Report, which sets out how pay fairness is central to what workforce we stand for, is used to engage with our shareholders and our colleagues • Regular engagement on remuneration with our largest institutional shareholders • Clear disclosure of rationale for and operation of each element of the Simplicity – remuneration structures should avoid complexity and DRP their rationale and operation should be easy to understand • Executive Directors incentivised via annual bonus with deferral and LTIP • Prospective disclosure of bonus metrics and LTIP targets, and full retrospective disclosure of outcomes against financial and non- financial targets and criteria, with full supporting commentary • Assessment of 'What' and 'How' performance is achieved Risk – remuneration arrangements should ensure reputational and other risks from excessive rewards, and behavioural risks that can • Ex-ante and ex-post risk factored into the assessment of business performance arise from target-based incentive plans, are identified and mitigated • Significant deferral into shares, to align with shareholder experience • Committee discretion to adjust all variable remuneration outcomes • Malus and clawback provisions apply to all elements of variable remuneration • Regulatory caps on incentive outcomes Predictability – the range of possible values of rewards to individual Directors and any other limits or discretions should be identified • Scenario charts illustrate potential pay-outs under each element of the DRP and explained at the time of approving the policy • Key areas of Committee discretion clearly outlined in the DRP • Annual bonus and LTIP measures reviewed each year to maintain Proportionality – the link between individual awards, the delivery of alignment to strategic priorities / KPIs strategy and the long-term performance of the company should • Very significant deferral into shares, to align with shareholder be clear. Outcomes should not reward poor performance experience • Committee discretion, malus and clawback provisions apply to all elements of variable remuneration, to ensure risk alignment for the Executive Directors • The Committee reviews all policies and practices, including incentive Alignment to culture – incentive schemes should drive behaviours schemes, ensuring alignment to the Group's Purpose, Values, Mindset consistent with company Purpose, Values and strategy and conduct expectations • A key aspect of remuneration philosophy is rewarding sustainable performance • Executive Directors' bonus and LTIP based on a balanced scorecard of financial and non-financial measures, with financial measures aligned to external financial targets and non financial measures aligned to supporting Customers and clients, Colleagues and Climate and sustainability • Commitment to pay fairness across the workforce • Executive Director remuneration outcomes considered in the context of outcomes across the wider workforce

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 207 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Fair pay for the lowest paid Fair pay Paying fairly for work done, in a simple and • Responded to cost-of-living challenges by bringing transparent way. forward part of the 2023 pay increase budget, at a glance awarding our most junior colleagues in the UK and • Continued to progress our work on global living in some European countries a salary increase wages, reviewing all our locations around the world effective from August 2022 and November 2022 to ensure we pay at least the living wage respectively • Simplified incentives for colleagues in US contact We have developed our • Introducing a simpler and more transparent centres by replacing four historical plans with a approach to pay for most junior UK roles from single, consistent and more transparent approach fair pay approach over a March 2023 number of years and we Equal opportunities to progress continue to ensure that Providing equal employment opportunities to all, • Reinforced the right behaviours through our so everyone can enjoy a successful career at recognition programme, with a colleague being Barclays. recognised on average every 45 seconds in 2022 fairness is a key, and • Enhanced our continuous performance • Achieved our Race at Work Ambition to double the management cycle to focus on two of our global number of Black Managing Directors by the end of 2022 explicit, consideration in priorities, Diversity, Equity and Inclusion, and Risk • Set a new Race at Work Ambition to increase the and Control, through communication and population of Managing Directors from the way we make all of eLearning underrepresented ethnicities by at least 50% by the end of 2025 our pay decisions. Barclays PLC Fair Pay Report 2022 can be found Communicating with colleagues + online at home.barclays/annualreport Engaging with colleagues to understand their views • Published additional information for colleagues to With the rising cost of living, our on the culture of the organisation and enabling the explain how the Group’s pay and performance representation of employees in our remuneration approach aligns to the Fair Pay Agenda commitment to fair and appropriate pay is decision-making process. • Our Inclusion Index measures how included our more important than ever. • Engaged with Unite the union on a range of topics colleagues feel. For 2022 it is 82%, up from 79% in 2021 During 2022, we continued our work on including cost-of-living and fair pay, and agreed a • Our Wellbeing Index measures how colleagues feel 2023 UK pay deal providing our lowest-paid this and as a result we were well positioned about their wellbeing. For 2022 it is 86%, up from colleagues a total average annual salary increase 84% in 2021 to take rapid action to support colleagues budget of 11% in response to sharp increases in the cost of living, through pay increases for our Alignment of employee and Executive Director pay lowest paid colleagues. We also factored in Linking both Executive and employee pay to • Pay outcomes continue to be aligned with financial cost inflation during the annual salary sustainable business performance. and non-financial performance review impacting 2023 salaries. • Our pay policies are strongly aligned across the • 2023 salary increase budget for the most junior We continue to strive for greater wider workforce, senior employees and Executive colleagues in the UK is 11%, US is 9% and India is transparency in our approach to pay, and Directors of Barclays PLC 10%. The budget for more senior employees is smaller. The Group Chief Executive and Group as part of this during 2022, we simplified • Where pay policies differ, this is aligned to Finance Director will receive 3.4% and 4.3% differences in seniority and ability to influence the reward structures for some of our respectively business performance lowest paid colleagues in the UK and US. This is our fifth year publishing a Fair Pay Equal pay commitment Report and we will continue to use the report to engage with our stakeholders on Rewarding employees fairly for their contribution • All grievances raised by employees, including any and making sure pay and performance decisions issues relating to pay, are investigated pay, explaining our approach to fair pay, never take into account any protected • Robust processes in place to review pay and including the alignment of approaches to characteristics performance decisions to ensure outcomes Executive Directors’ and employee pay. • Explicit communication to managers that pay remain fair and free from bias We encourage you to read the full report. decisions must not take into account gender, age, ethnicity, disability, sexual orientation, religion, marital status, pregnancy, maternity, parental leave or any other protected characteristic Key milestones: Five years of fair pay reporting Published our Equal Pay Published additional fair pay communication materials to Commitment for the first time our colleagues to explain how the pay and performance in the 2018 Fair Pay Report approach aligns to the Fair Pay Agenda Published our Fair Pay First global review of Aligned Executive Directors’ pension contribution Responded to the cost-of-living Agenda for the first time living wages, increasing with the wider workforce while simultaneously challenges in the UK and Europe by to articulate how we think minimum hourly increasing the contribution for our most junior UK bringing forward a portion of the about fair pay at Barclays rates in the US and India colleagues from 10% to 12% annual salary increase budget

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 208 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Employee remuneration policy summary As outlined earlier, Barclays has a clearly articulated remuneration We continue to ensure that we comply with all prevailing philosophy. This continues to drive our thinking in how we regulations. We identify individuals whose roles may expose structure and determine remuneration for all employees, from the Barclays to material risk, and assess and structure their pay in a most senior (including our Executive Directors) to our new way which encourages alignment of their interests with those of apprentices and graduates. As part of our annual review we Barclays and our shareholders. assessed our remuneration policies and practices for alignment The table below provides a summary of the remuneration with Barclays’ Purpose, Values and Mindset, our remuneration approach for employees below Board level. philosophy and our Fair Pay agenda, including ensuring appropriate alignment between the Directors’ remuneration policy and remuneration approaches for senior management and the wider workforce. Summary remuneration policy – employees below Board level Element Operation Salary Salaries reflect individuals’ skills and experience and are reviewed annually. They are increased where justified by role change, increased responsibility or a change in the appropriate market rate. Salaries may also be increased in line with local statutory requirements and in line with union and works council commitments. We have been a living wage employer in the UK since 2013, and continue to work with the Fair Wage Network to complete an annual review of our pay levels against living wage benchmarks across locations globally. Role Based Pay (RBP) A small number of senior employees (c.2% UK employees) receive a class of Fixed Pay called RBP to recognise the seniority, scale and complexity of their role. This may change where justified by role or responsibility change or a change in the appropriate market rate. Pension and benefits The provision of a competitive package of benefits is important to attracting and retaining the talent needed to deliver Barclays’ strategy. Employees have access to a range of country-specific company-funded benefits, including pension schemes, healthcare, life assurance and other voluntary employee-funded benefits. Employer pension contributions for the UK workforce are at least at the level of those for the Executive Directors, and are set at a minimum of 10% of salary (a minimum of 12% for more junior colleagues). Annual bonus Annual bonuses incentivise and reward the achievement of Group, business and individual objectives, and reward employees for demonstrating individual behaviours in line with Barclays’ Values and Mindset. All employees are considered, subject to eligibility criteria. For senior employees, an appropriate proportion of their annual bonus is deferred to future years. Deferred bonuses are generally delivered in equal portions as deferred cash and shares. They are subject to either a three, four, five or seven-year deferral period (and for Material Risk Takers (MRTs) further holding periods of six or 12 months for deferrals in shares) in line with regulatory requirements. Consistent with regulation, the remuneration of MRTs is subject to the 2:1 maximum ratio of variable to fixed remuneration. Share plans We encourage wider employee share ownership through the all-employee share plans, with plans available to 99% of colleagues globally. Performance management Performance assessment is based on two core dimensions: ‘what’ has been delivered against agreed individual, team and business objectives, as well as ‘how’ this has been achieved in line with our Barclays’ Values and Mindset. Both dimensions are assessed and rated independently of each other with no requirement to have an overall rating. This reinforces the equal importance of the ‘what’ and ‘how’. Risk and conduct Risk and conduct is taken seriously at Barclays and the Committee ensures that there are in-year adjustments, malus or clawback applied to individual remuneration, where appropriate. In addition to individual adjustments, the Committee considers collective adjustments to the incentive pool for risk and conduct. For 2022, the total impact of risk and conduct-related collective adjustments is a reduction of c.£500m. More information on our approach to performance management, and risk and conduct, as well as information in relation to Material Risk Takers, are set out in Appendix C of the Barclays PLC Pillar 3 Report 2022. Barclays PLC Pillar 3 Report 2022 can be found online at home.barclays/annualreport

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 209 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Directors’ remuneration policy This section sets out the proposed new Directors’ remuneration Minor changes have been made to simplify the shareholding policy, which is intended to apply for three years beginning on the requirement and align its operation with market practice, and to date of the 2023 AGM, subject to shareholder approval. Key simplify other elements of the policy wording, including moving elements of the policy remain unchanged from the existing policy. items relating to the implementation of the policy out of the policy itself and into the Annual report on Directors’ remuneration. The existing policy can be found on pages 93 to 122 of the 2019 Annual Report or at home.barclays/annualreport. Remuneration policy – Executive Directors Element and purpose Operation Maximum value and performance measures Fixed Pay Fixed Pay is determined based on the individual’s role, skills and Fixed Pay for each Executive Director is experience with reference to market practice and market data reviewed annually and set to provide an To reward skills and (on which the Committee receives independent advice). appropriate total compensation experience appropriate opportunity compared to the peer group, for the scale, complexity The Committee aims to set the Fixed Pay for each Executive as determined by the Committee, taking and responsibilities of Director at a level that provides an appropriately competitive the role and to provide into account the Executive Director’s total compensation, within regulatory maximums and policy the basis for a skills, experience and performance. limits on the level of variable pay relative to fixed pay. Executive competitive Directors’ total compensation is benchmarked against similar Increases will normally be no more than remuneration package. roles at a peer group of international banks of comparable size the average annual increase for UK and complexity, as determined by the Committee. The employees. The Committee may Committee may amend the peer group from time to time to determine larger increases in ensure it remains a relevant comparison to Barclays or if circumstances such as changes in circumstances make this necessary (for example, as a result of responsibilities, when the overall total takeovers or mergers). compensation opportunity is materially below the market or when it is justified 50% of Fixed Pay is delivered in cash (paid monthly), and 50% is based on skills, experience and delivered in shares. The shares are delivered in four equal performance in the role. quarterly instalments (after deduction of applicable payroll taxes) and are then subject to a holding period, with restrictions Payment of Fixed Pay is not contingent lifting over five years from the date of delivery (20% each year). on any performance measures. The Executive Directors beneficially own the shares from the date of delivery and are entitled to receive any dividends that are subsequently paid on those shares. Risk and conduct adjustment, malus and clawback provisions do not apply to Fixed Pay. Pension Executive Directors receive an annual cash allowance in lieu of The maximum annual cash allowance participation in a pension arrangement. value is currently 5% of Fixed Pay To support Executive (equivalent to 10% of the cash element of Directors to build long- Risk and conduct adjustments, malus and clawback provisions Fixed Pay). The Committee may change term retirement savings. do not apply to pension. the maximum annual cash allowance in lieu of pension, provided that the maximum allowance as a percentage of the cash element of Fixed Pay will not exceed the employer pension contribution rate provided to the wider UK workforce. There are no performance measures.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 210 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Element and purpose Operation Maximum value and performance measures Benefits Executive Directors’ benefits provision includes, but is not The maximum value of benefits is restricted to, private medical cover, annual health check, life determined by the nature of the benefit To provide a competitive and ill health income protection, and use of a Company vehicle itself and costs of provision may depend and cost-effective and driver when required for business purposes (including any on external factors, e.g. insurance costs. benefits package tax liabilities that may arise from these benefits). There are no performance measures. appropriate to the role If an Executive Director relocates to perform their role, and reflecting local additional support may be provided for a defined and limited market practice, and to period of time, in line with Barclays’ general employee mobility support the health and policies and practices. This would include, but is not restricted wellbeing of the to, the provision of temporary accommodation, tax advice, Executive Directors. home leave flights, removals assistance and relocation flights for the Executive Director and their dependents as well as tax and/or social security costs arising in connection with such benefits. Annual bonus Determination of annual bonus The maximum annual bonus opportunity is 93% of Fixed Pay for the Group Chief Individual bonuses are entirely discretionary and decisions are To reward delivery of Executive and 90% of Fixed Pay for the based on the Committee’s judgement of Executive Directors’ short-term financial Group Finance Director. performance in the year, measured against Group and targets and strategic personal objectives. Although the Committee takes a objectives, and the structured approach to considering the individual performance Delivery structure level of bonus outcome each year, as of the Executive Annual bonuses are delivered as a combination of cash and outlined below, any bonus award is Directors in achieving shares, a proportion of which may be deferred and/or subject discretionary and any amount may be those. to a holding period. Clawback provisions apply to the bonus awarded from zero to the maximum Delivery in part in shares (described later in this policy). value. with holding periods Deferral proportions and vesting profiles will be structured so Each year, the Committee sets forward- increases alignment with that, in combination with any LTIP award, the proportion of looking performance measures, shareholders. Bonus variable pay that is deferred is no less than that required by weightings and targets near the start of deferral encourages regulations (currently 60%). the year, covering financial and non- longer-term focus and Deferred bonuses are granted subject to the relevant plan financial measures. Financial factors will longer-term share rules, with vesting subject to certain requirements including normally guide at least 60% of the bonus retention. continued employment and the malus provisions (described opportunity. The Committee will consider later in this policy). performance against those measures in determining the annual bonus for the The number of deferred bonus shares to be awarded may be Executive Directors. based on a share price discounted by reference to an expected dividend yield over the vesting period, where dividend The Committee has the discretion to vary equivalents cannot be awarded due to regulations. In such the measures and their respective circumstances, the Committee has discretion to reduce (not weightings. The measures and weightings increase) the number of shares that vest if actual dividends will be disclosed annually as part of the paid over the period are materially lower than the original Annual Report on Directors’ dividend assumption. remuneration, at the beginning of the performance year.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 211 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Element and purpose Operation Maximum value and performance measures Long Term Incentive Plan Determination of LTIP award The maximum annual LTIP award for the (LTIP) award Group Chief Executive is 140% of Fixed Pay LTIP awards are determined by the Committee following To incentivise execution and 134% of Fixed Pay for the Group discussion of recommendations made by the Chairman (for of Barclays’ strategy Finance Director. the Group Chief Executive’s LTIP award) and by the Group over a multi-year period. For each award, the Committee sets Chief Executive (for other Executive Directors’ LTIP awards) Long-term performance based on satisfactory performance over the prior year. forward-looking performance measures, measurement, deferral weightings and targets at grant. These will Delivery structure into Barclays shares and be disclosed prospectively as part of the LTIP awards are granted subject to the plan rules and are holding periods Annual Report on Directors’ remuneration, conditional awards to receive Barclays shares at no cost encourage a long-term including the threshold and maximum level (although they may be satisfied in other instruments as may be view and align Executive of performance for each financial measure. required by regulation). Vesting is dependent on certain Directors’ interests with Financial measures will normally be at least requirements including the achievement of performance those of shareholders. 70% of the total opportunity. Straight-line measures, continued employment and malus and clawback vesting applies between threshold and provisions. maximum performance. For each LTIP awards are structured so that when combined with the measure, no more than 25% will vest at annual bonus the proportion of variable pay that is deferred is threshold performance. There is no no less than that required by regulations (currently 60%). No retesting allowed of those conditions. award vests before the third anniversary of grant and award In exceptional circumstances, the vests no faster than permitted by regulations (currently in five Committee has discretion (permitted equal tranches with the first tranche vesting on or around the under the plan rules approved by third anniversary of grant and the last tranche vesting on or shareholders) to amend targets, measures, around the seventh anniversary of grant). Any shares that vest or the number of shares under awards if an are subject to an additional holding period with restrictions event happens (for example, a major lifting no faster than permitted by regulations (currently 1 year transaction) that, in the opinion of the following vesting, though sufficient shares may be sold to Committee, causes the original targets or settle personal tax liabilities). measures no longer to be appropriate or The number of shares to be awarded may be based on a share such adjustment to be reasonable. The price discounted by reference to an expected dividend yield Committee also has the discretion to over the vesting period, where dividend equivalents cannot be reduce the vesting of any award, including awarded due to regulations. In such circumstances, the to nil, if it deems that the outcome is not Committee has discretion to reduce (not increase) the consistent with performance delivered. number of shares that vest if actual dividends paid over the period are materially lower than the original dividend assumption. Risk and conduct Any bonus or LTIP awarded is subject to malus and clawback provisions. adjustment - malus and The malus provisions enable the Committee to reduce the amount of unvested bonus or LTIP (including to clawback nil) prior to vesting in specified circumstances, including, but not limited to: Malus and clawback ▪ a participant deliberately misleading Barclays, the market and/or shareholders in relation to the financial provisions discourage performance of the Barclays Group excessive risk-taking and ▪ a participant causing harm to Barclays’ reputation or where his/her actions have amounted to inappropriate misconduct, incompetence or negligence behaviours. ▪ a material restatement of the financial statements of the Barclays Group or any subsidiary, or the Group or any business unit suffering a material downturn in its financial performance ▪ a material failure of risk management in the Barclays Group ▪ a significant deterioration in the financial health of the Barclays Group. The clawback provisions enable amounts to be recovered after they have vested, for a period in line with applicable regulation – currently seven years from grant (which can be extended to up to ten years in circumstances where a relevant investigation is ongoing at the end of the initial seven-year period) where (i) a participant’s actions or omissions have amounted to misbehaviour or material error and/or (ii) Barclays or the relevant business unit has suffered a material failure of risk management.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 212 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Element and purpose Operation Maximum value and performance measures All-employee share plans Executive Directors are entitled to participate in the following (i) Savings per month between £5 and the all-employee share plans: maximum set by Barclays (currently To help increase the £300), which will be no more than the (i) Barclays Sharesave under which they can make monthly number of employee statutory maximum that applies for all savings out of post-tax pay over a period of three or five shareholders and employees. There are no performance years linked to the grant of an option over Barclays’ shares increase their measures. which can be at a discount of up to 20% on the share price participation as (ii) Contributions per tax year of between set at the start. shareholders. Provides £10 and the maximum set by Barclays potential UK tax benefits. (ii) Barclays Sharepurchase under which they can make (currently £1,800), which will be no more contributions (monthly or as a lump sum) out of pre-tax pay than the statutory maximum that applies (if based in the UK) which are used to acquire Barclays’ for all employees. Barclays may match shares. contributions up to the statutory maximum (current match is 1:1 for employee contributions up to £600 per tax year). There are no performance measures. Shareholding requirement Executive Directors have a contractual obligation to build up a No maximum, the requirement sets out shareholding, within five years from their date of appointment the minimum required shareholding and To further enhance the as Executive Director, with a value equivalent to: timeframes. alignment of Executive • Group Chief Executive: 233% of Fixed Pay Directors’ interests with those of shareholders, in • Group Finance Director: 224% of Fixed Pay long-term value which, for each Executive Director, is equivalent to their creation. maximum annual variable pay opportunity. Executive Directors will have a reasonable period to build up to this requirement again if it is not met because of a significant share price depreciation. For two years after stepping down as an Executive Director, they must maintain a shareholding at a level equal to: (i) the number of shares to be held under the shareholding requirement, as determined immediately prior to their stepping down as an Executive Director; or (ii) the actual number of shares held on stepping down, if lower (subject to the Committee determining that the resulting level of shareholding is appropriate given the relevant Executive Director’s tenure). Shares that count towards the shareholding requirement are those that the Executive Director beneficially owns, plus the value of any vested share awards subject only to holding periods (including Fixed Pay shares, vested bonus shares and vested LTIP awards), the estimated after-tax value of any shares from unvested deferred share bonuses, and the estimated after-tax value of any unvested LTIP awards provided that no performance conditions remain untested. After the Executive Director has stepped down, the shareholding requirement will be maintained through self- certification, to the extent it is not met via shares held within the Group’s employee share plans and nominee accounts. In approving the application of this policy to the Executive Any remuneration commitment made prior to an individual Directors, authority is given for the Group to honour any becoming a Director and not in anticipation of their appointment commitments entered into with current or former Directors prior to the Board may be honoured, even where it is not consistent to the approval and implementation of the policy (such as the with the Directors’ remuneration policy in place at the time the grandfathering of past deferred compensation awards), provided commitment was made or at the time it is fulfilled. For these that such commitments complied with any applicable purposes, commitments include but are not restricted to the remuneration policy in effect at the time they were entered into. satisfaction of past awards of variable remuneration, the terms of which are set at the time the award is granted.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 213 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Performance measures and targets How shareholder views are taken into account by the Committee in setting the policy The Committee selects financial performance measures that are fundamental to delivery against the Bank’s strategy and are We recognise that remuneration is an area of particular interest to considered to be the most important financial measures used by some shareholders and that it is important that we listen to the Executive Directors and the Board to oversee the direction of shareholder views and take these into account when setting and the business. The non-financial performance measures are considering changes to remuneration. Accordingly, a series of chosen to represent key indicators of the success of our strategy, meetings are held each year with major shareholders and to provide a balanced view of our performance during the period, shareholder representative groups to understand their views. The that are robustly monitored and reported on to management. Group Chair or Committee Chair attended these meetings, accompanied by senior Barclays employees (including the Group Financial targets for both the annual bonus and LTIP are set to be Reward and Performance Director and the Group Company stretching but achievable and are aligned to enhancing Secretary). shareholder value. In respect of the annual bonus, the financial measures and weightings will be disclosed at the start of the In developing the new policy, we engaged with shareholders and relevant performance year. The Committee considers the annual had meetings with shareholder representative bodies and proxy bonus targets to be commercially sensitive and that it would be agencies, in the latter part of 2022 and in early 2023. The detrimental to disclose the targets at the start of the relevant Committee notes that shareholder views on some matters are performance year so the specific targets, and performance not always unanimous; however, the interactions are constructive against those targets, will be disclosed at the end of the relevant and insightful. The engagement is meaningful and helpful to the performance year, in that year’s Annual report on Directors’ Committee in its work and contributes directly to the decisions remuneration, subject to commercial sensitivity no longer made by the Committee. remaining. In respect of the LTIP, the financial measures, Discretion weightings and targets will be disclosed in the Remuneration In addition to the various operational discretions that the report published shortly after at the start of the relevant Committee can exercise in the performance of its duties performance period. (including those discretions set out in the Company’s share plans), Alignment between the Executive Directors’ the Committee reserves the right to make either minor or remuneration policy and all employees’ policy of administrative amendments to the policy to benefit its operation the Group or to make more material amendments in light of new laws, regulations and/or regulatory guidance. The Committee would The structure of remuneration packages for the Executive only exercise this right if it believed it was in the best interests of Directors is closely aligned with that for the broader employee the Company to do so and where it is not possible, practicable or population. Employees receive salary, pension and benefits and proportionate to seek or await shareholder approval in General are eligible to be considered for a bonus and to participate in all- Meeting. employee share plans. The broader employee population typically does not have a contractual limit on the quantum of remuneration Executive Directors' policy on recruitment (though regulatory limits currently apply for MRTs) and does not Barclays operates in a highly specialised sector and many of its receive any of their fixed pay in shares (with the exception of the competitors for talent are outside of the UK. The Committee’s members of the Group Executive Committee and some other approach to remuneration on recruitment is to pay the amount senior employees). necessary to fill the role with a suitable candidate. As for the Executive Directors, variable pay for the broader Approval of the remuneration package offered on appointment to employee population is performance based. Variable pay for both any new Executive Director is a specific requirement of the the Executive Directors and the broader employee population is Committee’s Terms of Reference. The terms of such packages subject to deferral requirements. Executive Directors and other must be approved by the Committee in consultation with the MRTs are subject to deferral at least equal to that required by Chairman and (except for the terms of his own remuneration) the regulation, currently a minimum rate of 40% to 60%, depending Group Chief Executive. on the total value of variable pay. For non-MRTs, bonuses in Any new Executive Director’s package would include the same excess of £65,000 are currently subject to a graduated level of elements as those of the existing Executive Directors, as shown deferral. The terms of deferred bonus awards for Executive on the next page. Directors and the wider employee population are broadly the same, in particular the vesting of all deferred bonuses is subject to service and malus conditions. The broader employee population does not participate in the Barclays LTIP. While we have not sought employee views on the DRP, we have considered remuneration policies for the broader employee population when reviewing the DRP. In our Fair Pay Report, we explain in more detail how employee and Executive Director pay is aligned.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 214 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Element and purpose Operation Fixed Pay In line with policy Pension In line with policy Benefits In line with policy Annual bonus and LTIP In line with policy for the Group Chief Executive and Group Finance Director. If any new Executive Director award role is appointed to the Board, the Committee will consider the appropriate maximum annual bonus and maximum LTIP opportunities for the role, as a multiple of Fixed Pay. Neither of these will exceed the parameters of the policy for the Group Chief Executive. Buy-out The Committee can consider buying out forfeited bonus opportunity and/ or incentive awards that the new Executive Director has forfeited as a result of accepting the appointment with Barclays, subject to proof of forfeiture where applicable. The Committee will take reasonable steps to ensure that any award made to compensate for forfeited remuneration from the new Executive Director’s previous employment is not more generous than, and mirrors as far as possible the expected value, timing and form of delivery of, the terms of the forfeited remuneration, and ensure the award is in the long-term best interests of Barclays. Barclays’ deferral policy shall however apply as a minimum to any buy-out of annual bonus opportunity. The value of any buy-out is not included within the maximum incentive levels above since it relates to a buy- out of forfeited bonus opportunity or incentive awards from a previous employer. Where a senior executive is promoted to the Board, his or her existing contractual commitments agreed prior to his or her appointment will still be honoured in accordance with the terms of the relevant commitment, including vesting of any pre-existing deferred bonus or long-term incentive awards, even where it is not consistent with the Directors’ remuneration policy that is in place at the time it is fulfilled. Prior to his appointment to the Board. Executive Directors’ policy on payment for loss of office (including following a takeover) The Committee’s approach to payments in the event of termination is to take account of the individual circumstances including the reason for termination, individual performance, contractual obligations and the terms of the deferred bonus plans and LTIPs in which the Executive Director participates. Standard provision Commentary Notice period in Executive Notice from the Company and from the Executive Director will normally be 6 months. Directors' service Executive Directors may be required to work during the notice period or may be placed on garden leave or, if contracts not required to work the full notice period, may be provided with pay in lieu of notice. For C.S. Venkatakrishnan, the contractual notice period is 12 months’ notice from the Company and six months’ notice from the Executive Director, as his existing notice period prior to his appointment to the Board was honoured when he was promoted to the Board. For Anna Cross, the contractual notice period is six months’ notice from the Company and six months’ notice from the Executive Director (she did not have any pre-existing contractual commitment to a longer period). Pay during notice period or Fixed Pay delivered in cash and pension allowance will continue to be paid monthly, and other contractual payment in lieu of notice benefits provided, through the notice period. Fixed Pay delivered in shares will also continue to be delivered per service contracts quarterly for the notice period and the final quarterly award will be pro-rated for the number of days from the start of the relevant quarter to the termination date. Where Barclays elects to terminate employment with immediate effect by making a payment in lieu of notice, the Executive Director will receive Fixed Pay delivered in cash as a lump sum or in instalments but will not receive any Fixed Pay shares that would otherwise have been payable during the period for which the payment in lieu is made (unless required otherwise by regulations or local law). Any payments whether in instalments or as a lump sum may be subject to mitigation as relevant. In the event of termination for gross misconduct neither notice nor payment in lieu of notice is given. Eligibility for annual bonus There is no automatic entitlement to be granted a bonus or LTIP award for the year of termination, but and LTIP awards eligibility for either or both may be considered at the Committee’s discretion, pro-rated for service, and subject to performance measures being met. No annual bonus or LTIP award would be granted in the case of gross misconduct or resignation.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 215 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Standard provision Commentary Treatment of unvested The treatment of unvested deferred bonus or LTIP awards will be in accordance with the relevant plan rules. deferred bonus and LTIP Unvested deferred bonus and LTIP awards normally lapse if the Executive Director leaves by reason of awards resignation prior to fifth anniversary of the date of grant, is terminated for gross misconduct or cause, or is otherwise not an ‘eligible leaver’. ‘Eligible leaver’ is defined as leaving due to injury, disability or ill health, retirement, redundancy, the business or company which employs the Executive Director ceasing to be part of the Group, or otherwise at the discretion of the Committee. The Committee will normally apply its discretion to apply eligible leaver status in the event of resignation after the fifth anniversary of grant, or in the case of deferred bonuses if it is the employer that terminates employment (other than in circumstances that amount to gross misconduct or dismissal for cause). Where ‘eligible leaver’ treatment applies, deferred bonus and LTIP awards will normally continue to vest, on the scheduled vesting dates and subject to the rules of the relevant plan, unless the Committee determines otherwise in exceptional circumstances. On death, deferred bonus and LTIP awards are accelerated and deferred bonus awards are released in full. In an ‘eligible leaver’ situation and in the case of death, LTIP awards are pro-rated for time (over the whole performance period, including the assessment period prior to grant) and with the proportion that vests remaining subject to performance against the performance conditions, subject to the Committee’s discretion to determine otherwise, in accordance with the plan rules, as amended from time to time. After release, the shares are subject to an additional holding period to the extent required by regulations (currently a minimum 12 month holding period applies). Unvested awards that continue beyond termination remain subject to malus provisions, which enable the Committee to reduce the vesting level of deferred bonuses and LTIP awards (including to nil), and after vesting awards remain subject to clawback provisions (as described in the main policy). In the event of a takeover or other major corporate event, the Committee has absolute discretion to determine whether all outstanding awards would vest early (subject to achievement of any performance conditions for the LTIP and applicable regulation) or whether they should continue in the same or revised form following the change of control. The Committee may also determine that participants may exchange existing awards for awards over shares in an acquiring company with the agreement of that company. In the event of an internal reorganisation, the Committee may determine that outstanding awards will be exchanged for equivalent awards in another company. Repatriation Except in the case of gross misconduct or resignation, where an Executive Director has been relocated at the commencement of or during their employment, the Company may pay for the Executive Director’s repatriation costs in line with Barclays’ general employee mobility policy including temporary accommodation, payment of removal costs and relocation flights for the Executive Director, spouse and children. The Company will pay the Executive Director’s tax on the relocation costs but will not tax equalise and will also not pay tax on his or her other income relating to the termination of employment. Other Except in the case of gross misconduct or resignation, the Company may pay for the Executive Director’s legal fees and tax advice relating to the termination of employment and provide outplacement services and any other reasonable costs. The Company may pay the Executive Director’s tax on these particular costs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 216 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) The value of benefits in these charts is based on an estimated Illustrative scenarios for Executive Directors' annual value for regular contractual benefits provision during remuneration 2023. Additional ad hoc benefits may arise, for example, overseas The charts below show the potential value of the current relocation of Executive Directors, but will always be provided in Executive Directors’ 2023 total remuneration in four scenarios: line with the DRP. ‘Minimum’ (i.e. Fixed Pay, pension and benefits), ‘Mid-point’ (i.e. A significant proportion of the potential remuneration of the Fixed Pay, pension, benefits and 50% of the maximum variable pay Executive Directors is performance related, delivered in Barclays that may be awarded), ‘Maximum’ (i.e. Fixed Pay, pension, benefits shares and subject to deferral, additional holding periods, malus and the maximum variable pay that may be awarded) and and clawback. These charts assume a constant share price, save ‘Maximum with illustrative share price increase’ (‘Maximum’ for the share price appreciation applied to the LTIP value only in scenario, assuming share price appreciation of 50% on the LTIP). the 'Maximum with illustrative share price increase' scenario. Group Chief Executive £m Group Finance Director £m Fixed Pay LTIP n n a Pension and benefits Potential outcome of a 50% share price n n increase on the LTIP Annual bonus n a. Pension and benefits include the value of cash in lieu of pension and the anticipated value of taxable benefits. For C.S. Venkatakrishnan this includes relocation costs to which he is contractually entitled, including temporary accommodation in London (annualised figure including tax gross up is expected to be c.£140k as well as shipping costs c.£118k).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 217 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Remuneration policy – Non-Executive Directors Element and purpose Operation Maximum value Fees The Chair is paid an all-inclusive fee for all Board Fees are reviewed against those for Non- Reflect individual responsibilities. The Chair has a time commitment equivalent Executive Directors in banks and other responsibilities and companies of similar size and complexity. of up to 80% of a full-time role. The other Non-Executive membership of Board Directors receive a basic Board fee, with additional fees Other than in exceptional circumstances, Committees and are set payable where individuals take on additional roles or fees will not increase by more than 20% to attract Non-Executive responsibilities, including, but not limited to, serving as a above the current fee levels during this Directors who have member or Chair of a Committee of the Board or as a Senior policy period. relevant skills and Independent Director. Additional fees may be paid for new experience to oversee the Fees are periodically reviewed by the Board. Committees of the Board and / or where a implementation of our Non-Executive Directors may also receive fees where they Non-Executive Director takes on additional strategy serve as directors of subsidiary companies of Barclays PLC. In responsibilities and / or performs an Fees are set at a level the case of certain subsidiary appointments, such additional additional role, provided these are not which reflects the role, remuneration is approved by the Barclays PLC Board greater than fees payable for the existing responsibilities and time Remuneration Committee. roles on the Committees of the Board as commitment which are detailed in the Annual report on Directors' No variable pay is provided, enabling the Chair and Non- expected from the Chair remuneration. Executive Directors to maintain appropriate independence, and Non-Executive focus on long-term decision-making and constructively review Any increases to such additional fees over Directors and challenge the performance of the Executive Directors. the period of the policy will be made in accordance with the principles set out above for current fees. Benefits The Chair is provided with private medical cover subject to the terms of the Barclays’ scheme rules from To provide a competitive time to time, and is provided with the use of a Company vehicle and driver when required for business and cost effective purposes (including settlement of any tax liabilities that may arise from this benefit). benefits package Benefits which are minor in nature and in any event do not exceed a cost of £500 may be provided to Non- appropriate to the role Executive Directors. and location Non-Executive Directors are not eligible to join Barclays’ pension plans. Expenses The Chair and Non-Executive Directors are reimbursed for any reasonable and appropriate expenses incurred for business reasons. Any tax that arises on these reimbursed expenses is paid by Barclays. Bonus and share plans The Chair may be invited to participate in Sharesave, an HMRC employee tax advantaged share scheme, due to the level of their time commitment to the role. The Chair is not eligible to participate in any other Barclays’ cash, share or long-term incentive plans. All other Non-Executive Directors are not eligible to participate in Barclays’ cash, share or long-term incentive plans. Shareholding requirements An element of the basic fee before deduction of tax and other statutory deductions, equal to £100,000 for the Chair and £30,000 for each Non-Executive Director, is used to purchase Barclays’ shares which are retained on the Non-Executive Director’s behalf until they retire from the Board. Notice and termination Instead of service contracts, the Chair and the Non-Executive Directors each have a letter of appointment provisions that reflect their responsibilities and time commitments. Non-Executive Directors are entitled to notice under their letters of appointment but, other than in respect of the Chair, no compensation is due in the event of termination, other than standard payments for the period served up to the termination date. Each Director’s appointment is for an initial three-year term, renewable at Barclays’ discretion for a further term of three years thereafter and subject to annual re-election by shareholders. Non-Executive Directors appointed beyond six years will be at the discretion of the Board Nominations Committee. Notice period Chair: Six months from the Company, six months from the Chair. Termination payment policy The Chair’s appointment may be terminated by Barclays on six months’ notice or immediately in which case six months’ fees are payable in instalments at the times they would have been received had the appointment continued, but subject to mitigation if they were to obtain alternative employment. No continuing payments of fees (or benefits) are due if a Non-Executive Director is not re-elected by shareholders at the Barclays PLC AGM. In accordance with the policy table above, any new Chair would be chairing of any Board committees and for taking on additional paid an all-inclusive fee only and any new Non-Executive Director responsibilities and/ or performing an additional role, time would be paid a basic fee for their appointment as a Non- apportioned in the first year as necessary. No sign-on payments Executive Director, plus fees for their participation on and/or are offered to Non-Executive Directors.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 218 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Annual report on Directors’ remuneration This section explains how our Directors’ remuneration policy was implemented for 2022 Executive Directors Single total figure for 2022 remuneration (audited) The following table shows a single total figure for 2022 remuneration in respect of qualifying service for each Executive Director together with comparative figures for 2021. 6) Reduction 3) Taxable Total 4) Annual of unvested Total variable 1) Fixed Pay 2) Pension benefits Fixed Pay bonus 5) LTIP awards pay Total £000 £000 £000 £000 £000 £000 £000 £000 £000 a b C.S. Venkatakrishnan 2022 2,767 138 343 3,248 1,949 — — 1,949 5,197 b c 2021 450 23 6 479 395 — (8) 387 866 d b Anna Cross 2022 1,185 59 10 1,254 803 — — 803 2,057 b 2021 — — — — — — — — — e f Tushar Morzaria 2022 540 27 30 597 362 2,974 — 3,336 3,933 g c 2021 1,688 84 52 1,824 1,467 1,599 (138) 2,928 4,752 Notes a C. S. Venkatakrishnan was appointed to the Board and as Group Chief Executive on 1 November 2021. The remuneration shown for 2021 is in respect of his services as Group Chief Executive during 2021. On his appointment as Group Chief Executive, the Remuneration Committee set his level of Fixed Pay (and the resulting maximum total compensation opportunity) at a lower level than he received for his previous role as Head of Global Markets and Co-President of Barclays Bank PLC. b The LTIP amount shown for 2022 relates to awards granted in 2020, and the amount shown for 2021 relates to awards granted in 2019. No LTIP award was granted to C.S. Venkatakrishnan or Anna Cross in 2020 or 2019 as neither was an Executive Director at that time. c Financial outcomes for 2021 bonus and 2019-2021 LTIP were recalculated to reflect the restatement of the 2021 financial statements. The figures shown reflect reductions that will be applied to outstanding deferred elements of the impacted awards, the 2021 bonus for C.S. Venkatakrishnan and 2021 bonus and 2019-2021 LTIP for Tushar Morzaria. More details are provided on page 228. d Anna Cross was appointed to the Board and as Group Finance Director on 23 April 2022. The remuneration shown for 2022 is in respect of her services as Group Finance Director during 2022. e Tushar Morzaria stepped down as Group Finance Director and an Executive Director on 22 April 2022. The remuneration included in the table above for 2022 is in respect of his services as an Executive Director during 2022, plus the value of the 2020-2022 LTIP award (described in note f). f The LTIP amount for 2022 relates to awards granted in 2020, with vesting based on performance measured over 2020 to 2022. The value shown includes a 23% share price appreciation between the date of grant and the vesting date of the first tranche, estimated based on the share price on the date of grant (pre discounting of share price to reflect that shares under award are not entitled to dividends or dividend equivalents) and the Q4 2022 average share price of £1.53, as the 2022 Annual Report was finalised prior to the vesting date. g The LTIP amount for 2021 relates to awards granted in 2019, with vesting based on performance measured over 2019 to 2021. The values shown include a 1% share price appreciation between the date of grant and the vesting date, based on the share price on the date of grant (pre discounting of share price to reflect that shares under award are not entitled to dividends or dividend equivalents) and share price on the vesting date of the first tranche, which was £1.61. The 2021 LTIP values disclosed in the 2021 Remuneration report were estimates, based on the Q4 2021 average share price, as the 2021 Annual Report was finalised prior to the vesting date. Additional information in respect of each element of pay for the Executive Directors (audited) 1) Fixed Pay Fixed Pay is delivered 50% in cash, paid monthly, and 50% in shares, delivered quarterly. The shares are subject to a holding period, with restrictions lifting over five years, 20% each year. On appointment as Group Finance Director, Fixed Pay for Anna Cross was set at £1,725,000, to deliver an appropriate starting total compensation opportunity, in line with the DRP. More information on the Committee's considerations in respect of the Executive Directors' Fixed Pay is set out on page 231. 2) Pension Executive Directors are paid cash in lieu of pension contributions equal to 5% of their Fixed Pay (equivalent to 10% of the cash element of Fixed Pay). The pension cash allowance paid during 2022 was £138,350 for C.S. Venkatakrishnan, and was £59,300 for Anna Cross and £27,050 for Tushar Morzaria for the respective periods they each served as Group Finance Director during the year. No other benefits were received by Executive Directors from any Barclays' pension plan. 3) Taxable benefits Taxable benefits include private medical cover, life assurance, income protection, tax advice and the use of a Company vehicle and driver when required for business purposes. For C.S. Venkatakrishnan, the benefits figure also includes the cost to the Company during 2022 of providing him with relocation support, in line with the current DRP, including immigration assistance, temporary accommodation and home search support in London. Those costs came to c.£284,000 including the cost to Barclays of paying the income tax and social security resulting from the provision of that relocation support. As referenced in last year's Remuneration report, under the terms of his relocation to London, temporary accommodation in London will be provided to him for a period of up to two years following his appointment in November 2021 as Group Chief Executive.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 219 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) 4) 2022 annual bonus The bonus amount included in the single total figure is the value awarded or scheduled to be awarded in Q1 following the financial year to which it relates. In determining the bonus in respect of 2022 performance, the Committee considered the performance achieved against the Financial (60% weighting) and Strategic non-financial (25% weighting) performance measures that had been set to reflect Company priorities for 2022. Performance against their personal objectives (15% weighting) for 2022 was assessed on an individual basis. The approach taken to assessing financial performance against each of the financial measures was based on a straight-line outcome between the amount that vests for threshold performance, which was nil for the profit before tax measure or 20% for the cost: income ratio measure, and 100% applicable to each measure for achievement of maximum performance. A summary of the assessment is provided in the table that follows. 2022 annual bonus outcomes Outcome Weighting Threshold Maximum 2022 Actual C.S. Venkatakrishnan Anna Cross Tushar Morzaria a Profit before tax (excluding 50 % £5.0bn £8.0bn £7.445bn 40.8 % 40.8 % 40.8 % material items), with CET1 ratio underpin a Cost: income ratio (excluding 10 % 66.1 % 62.1 % 65.3% 3.6% 3.6% 3.6% material items) Strategic non-financial 25 % Performance against strategic 18.0 % 18.0 % 18.0 % measures, organised around three main categories: Customers and clients, Colleagues and Climate and Sustainability Personal 15 % Individual performance against each of 13.0 % 13.0 % 12.0 % the Executive Director's personal objectives assessed by the Committee Total 75.4 % 75.4 % 74.4 % 75.4 % 75.4 % 74.4 % Final 2022 annual bonus outcome approved by the Committee Note a Material items excluded from the above measures consist of structural cost actions £151m (2021: £648m) and a customer remediation provision of £282m relating to legacy loan portfolios. As disclosed in the 2021 Annual Report, the financial measures for the 2022 bonus are defined as excluding material items (material one-off items that are typically called out within our financial reporting). The Committee however exercised its discretion not to exclude the impacts associated with the Over-issuance of Securities in the US or the monetary penalties imposed by the SEC and CFTC for the use of unauthorised business communications channels in the assessment of the 2022 bonus. Based on the assessment outlined above, the Committee determined an overall formulaic bonus outcome for C.S. Venkatakrishnan, Anna Cross and Tushar Morzaria respectively that equates to £1,949,000, £803,000 and £362,000 respectively, after pro-rating the bonus opportunity for both Anna and Tushar for the proportion of 2022 that each served as Group Finance Director. Of those amounts, 79%, 66% and 65% respectively will be deferred under the Share Value Plan, and a total of 90%, 83% and 83% respectively will be delivered in Barclays shares. The Committee reflected on the appropriateness of these outcomes for the 2022 bonus, in the context of the performance achieved against the Financial measures, Strategic non-financial measures and Personal objectives. The Committee considered the underlying financial health of the Group, which is strong and well-capitalised. Consideration was also given holistically to the performance and contribution of each Executive Director during 2022. The bonus outcomes were considered in the context of the bonus outcomes for the wider workforce, ensuring appropriate alignment both this year and over a multi-year period, and also by comparing to historical outcomes for the Executive Directors in the context of performance year on year. The Committee believes that the overall 2022 bonus outcomes above are aligned appropriately with stakeholder considerations and with the performance achieved. Based on this, the Committee concluded that no discretionary adjustment was warranted. In line with the DRP, and due to the regulations prohibiting dividend equivalents being paid on unvested deferred share awards, the number of shares awarded to each Executive Director under the Share Value Plan (the Group's main employee share plan for granting deferred bonus shares to employees) will be calculated using the share price at the date of award, discounted to reflect the absence of dividend equivalents during the vesting period. The valuation will be aligned to IFRS 2, with the market expectations of dividends during the deferral period being assessed by an independent adviser. The deferred bonus shares in respect of the 2022 annual bonus for C.S. Venkatakrishnan and Anna Cross will vest in two equal tranches on the first and second anniversary of grant. The deferred bonus shares for Tushar Morzaria will vest in equal tranches on the first four anniversaries of grant, which is the standard based on the nature of his current role. All shares (whether deferred or not) are subject to a further one-year holding period from the point of vesting. 2022 bonuses are subject to clawback provisions and the deferred elements of 2022 bonuses are subject to malus provisions, which enable the Committee to delay or reduce the vesting of unvested deferred bonuses (including reducing to nil). Further detail follows on the assessment of the Strategic non-financial measures, and performance against Personal objectives where applicable.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 220 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Assessment of the Strategic non-financial measures for the 2022 annual bonus For 2022, the weighting of the Strategic non-financial element was 25%, within which the Customers and clients and Colleagues sections are each weighted at 7.5% and the Climate and sustainability section is weighted at 10%. Progress in relation to each of the Strategic non-financial measures was assessed by the Committee. The overall assessment was based on the following scale: For Customer and Clients and For Climate and sustainability Colleagues (max weighting 7.5%) (max weighting 10%) Overall outcome 0% to 1% 0% to 2% Behind track on most measures 1.5% to 3.0% 2.5% to 4.5% Slightly behind track on most measures 3.5% to 6.0% 5.0% to 7.5% On track or slightly ahead of track for most measures 6.5% to 7.5% 8% to 10% Ahead of track on most measures On this basis, the Committee agreed an overall outcome for the Strategic non-financial measures of 18% out of a maximum of 25%. The detail supporting this assessment is provided in the table that follows. The measures used in the Strategic non-financial assessment for bonus reflect key strategic priorities of the Bank. Most outcomes are either measured by an external provider, such as NPS or Banking fee ranking and share, or are subject to independent ‘limited assurance’ (indicated by the KPMG Δ in other sections of the Annual Report), which includes all Climate and sustainability measures with the exception of the Unreasonable Impact measure (delivered in partnership with the Unreasonable Group). Customers and clients Measure Criteria Performance Commentary Outcome Global Markets 6th (maintained since 2021) • Global Markets revenue ranking maintained with an Slightly ahead revenue increase in revenue share. Largest non-US bank of track Revenue share increased ranking and to 7.3% (from 6.4% in a share 2021) Maintain client Investment 6th (maintained since • Maintained our overall revenue share ranking of sixth Slightly rankings and Banking fee 2021) globally across Investment Banking and Global Markets, behind track market share ranking and narrowing the gap to fifth Fee share decreased to share 3.1% (down from 3.6% in • Investment Banking fees decreased in 2022, driven by b 2021) significant declines in overall market opportunity, with decrease in fee share in comparison to 2021 Net promoter Improve Barclays UK: +11 • NPS score for Barclays UK remained at +11 for 2022 On track scores® (NPS) (2021: +11) • Barclaycard NPS continued to trend upwards throughout Barclaycard UK: +12 2022, as usage and availability of credit became more (2021: +4) important to customers US Consumer Bank Care • US Consumer Bank Care tNPS increased slightly, driven by c tNPS : +44 (2021: +43) a focus during 2022 on improving the customer experience by fixing identified pain points in customer interactions • Rate of complaints per 10k interaction reduced by 24%, Ahead of Complaints Reduce BUK BUK Total Complaints (% customer movement year on year): despite an 8% increase in interactions with the bank across track complaints and -18% channels, driven by continued stability of our platforms, improve alongside actions taken to mitigate potential increases resolution time from changes to our servicing model • 61% of complaints resolved within 3 days (2020: 60%) Digital Increase digital Percentage of customer • Number of mobile active customers continues to increase. On track engagement journeys digitally enabled: Reached 10.5m mobile active customers and hit a record of 76% (2021: 72%) 15.4m logins to the Barclays App in a single day Mobile active customers: • Made significant improvements to our Barclays App, 10.5m (2021: 9.7m) including enabling mortgage customers to switch onto a new rate up to 180 days before their current rate expires CCP US customer digital d without the need to book an appointment when advice is engagement: 74.1% not required (2021: 71.8%) • The US Consumer business continued to invest in the digital servicing model, partner app functionalities and expanding the product range. Digital active user rate increased from 2021 Total Customers and clients: 5.0% a Global Markets share and rank for Barclays is based on our share of Top 10 banks reported revenues. Peer banks include Bank of America, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase & Co, Morgan Stanley and UBS. b Dealogic for the period covering 1 January 2021 to 31 December 2022. FY21 market share has been restated from last year’s published value based on latest analysis. c Care tNPS provides an accurate measure of customer sentiment across our Fraud, Dispute, Credit and Care channels and replaces the relationship NPS reported in 2021 Annual Report. d Excludes new Gap customers.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 221 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Colleagues Measure Criteria Performance Commentary Outcome Diversity 33% females at 29% in 2022, increasing • Continued to make progress towards 2025 Gender On track Managing Director and from 28% in 2021 and Race at Work Ambitions Director level by 2025 • In the UK, females occupied 31% of Managing Increase under- UK: 4.6% (2020 baseline Director and Director level roles at the end of 2022 represented minority of 4.1%) • Achieved our Ambition to double the number of representation in the UK US: 20.3% (2020 Black MDs by end of 2022 a to 5% and in the US to baseline of 18.1%) 21% by 2025 Double the number of 18 Black MDs globally, up Black Managing Directors from 9 at the end of 2020 by 2022 Inclusion Improve inclusion Inclusion Index score • 88% of employees in ‘Your View’ employee survey On track indicators from Your View survey told us they feel included in their team (2021: 88%) 82% (2021: 79%) • 84% of employee in Your View survey told us they believe that senior leaders are truly committed to building a diverse workforce (2021: 82%) Engagement Maintain engagement at Employee Engagement • Overall Wellbeing Index score from Your View survey Slightly ahead of 86% (2021: 84%) of track healthy levels score from Your View b survey 84% (2021: 82%) • 90% of employees in Your View survey told us that 85% of employees in their line managers are supporting their efforts to Your View survey would maintain their wellbeing (2021: 88%) recommend Barclays to people they know as a great place to work (2021: 82%) Conduct and Maintain culture and 92% of employees in • Improvement in the percentage of employees in On track culture conduct indicators Your View survey believe Your View survey who said they feel it is “safe to that they and their team speak up at Barclays”, up four percentage points on do a good job of role 2021 modelling the Values • Over 90% of employees in Your View survey believe every day (2021: 92%) that they and their teams do a good job of role 92% of employees in modelling the Values and our Mindset every day and Your View survey the three Mindset Indices in the Your View survey believe that they and have all improved on 2021 their team do a good job of role modelling our Mindset every day (2021: 89%) Total Colleagues: 5.0% Notes a Represented to 1dp for the purposes of the assessment, rounded to 0dp in the Strategic Report. b As part of our efforts to improve our measurement frameworks, we have transitioned to a new 3 question engagement model. This was after collecting 4 years of concurrent data and running analysis to affirm the new model’s validity. Historic figures have been updated to reflect results from the new “3 question” model.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 222 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Climate and sustainability Measure Criteria Performance Commentary Outcome Green Progress towards our £25.5bn (2021: £29.8bn) • Significant increase in green financing, with a total of Ahead of financing commitment to facilitate £87.8bn of green financing facilitated since 2018 track £100bn of green against our 2030 target of £100bn financing by 2030 • Social, Environment and Sustainability linked financing commitment of £150bn for 2018-2025 delivered four years early in 2021. A further £54.3bn of financing delivered in 2022 bring the cumulative outcome to £247.6bn • In December 2022 we announced a new target to facilitate $1trn of Sustainable and Transition Financing between 2023 and the end of 2030 • In 2022 invested £35m in sustainability-focused start-ups through our Sustainable Impact Capital programme Emissions Deliver the strategy to Power portfolio • Good progress in setting out strategy to be a net On track emissions intensity (in zero bank by 2050 and to align our financing with the financing achieve our ambition to be a net zero bank by KgCO2e/MWh): 9% Paris Agreement, including setting targets for two 2050 and our down versus 2020 new high emitting sectors, Cement and Steel, in commitment to align our 2022 Energy portfolio absolute financing with the goals emissions (in MtCO2e): • Financed emissions target for Automotive and timelines of the Paris 32% down versus 2020 manufacturing in addition to a Portfolio Agreement convergence point for Residential Real Estate 30% reduction in power announced with 2022 FY results, five high emitting portfolio emissions sectors now covered by targets intensity (2020-2025) • Currently ahead of target for Energy and broadly on- 15% reduction in energy track for Power, though progress is likely to be non- portfolio absolute linear and will be reflective of the specific pathways emissions (2020-2025) that companies take Global GHG scope 1 and 2 91% reduction against • Achieved our 90% GHG market-based emissions Ahead of greenhouse emissions (market- 2018 baseline reduction target for Scope 1 and Scope 2 track gas (GHG) based) reduced against emissions 2018 baseline by 90% by reduction in 2025 our operations Renewable 100% renewable 100% (2021: 94%) • Sourced 100% renewable electricity for our global Ahead of a electricity electricity by 2025 real estate portfolio operations track • Moving forward, continue to purchase 100% renewable electricity, and improve the energy efficiency of our buildings and data centres LifeSkills – 10 million people 2.7 million upskilled in • Exceeded our target of upskilling 10 million people Ahead of people upskilled (2018-2022) 2022 (2021: 2.9 million) between 2018 and 2022, with 12.6 million people track upskilled upskilled by the end of 2022 LifeSkills – 250,000 people placed 77,200 people placed • Exceeded our target of 250,000 people placed into Slightly ahead people placed into work (2019-2022) into work in 2022 (2021: work between 2019 and 2022, with 270,600 people of track into work 77,100) placed into work by the end of 2022 Unreasonable 250 businesses solving 269 growth-stage • Surpassed 2022 target Slightly ahead Impact social and environmental ventures had joined the of track • Barclays and Unreasonable Group celebrated six (partnership challenges to be programme by end of years of partnership, with Unreasonable Impact now with the supported (2016-2022) 2022 supporting 269 growth-stage ventures solving Unreasonable social and environmental challenges and collectively Group) supporting thousands of jobs across the world Total Climate and sustainability: 8.0% Overall strategic non-financial outcome (out of a maximum possible 25%) 18.0% a Global real estate portfolio includes offices, branches, campuses and data centres. Further details on our approach to Key Performance Indicators are included in the Strategic report. Refer to home.barclays/sustainability/esg-resource-hub/ for more information on the ESG measures.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 223 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Assessment of performance against the Personal objectives set for the 2022 annual bonus (15% weighting) Individual performance against each of the Executive Directors’ personal objectives for 2022 (15% weighting overall) was assessed by the Committee. C.S. Venkatakrishanan’s performance was assessed against the individual objectives set for him as the Group Chief Executive and those set for him jointly with the Group Finance Director. As Anna Cross succeeded Tushar Morzaria as Group Finance Director on 23 April 2022, the Committee assessed her performance against the objectives that were originally set for Tushar Morzaria in early 2022, both the joint objectives with the Group Chief Executive and the individual objectives as the Group Finance Director. The Committee separately assessed Tushar Morzaria’s contributions towards the achievement of these same objectives alongside his overall contribution to the smooth transition of responsibilities to Anna Cross. The table below summarises performance against the shared personal objectives. Shared objectives for C.S. Venkatakrishnan, Anna Cross and Tushar Morzaria Outcomes Deliver improving shareholder • The benefits of Barclays diversified business model continue to be demonstrated, with each returns, with a focus on RoTE operating division delivering double-digit returns • Group RoTE remained aligned with our medium-term target of greater than 10%, for the second consecutive year • Delivered Group profit before impairment of £8.2bn, up 9% on 2021 • Total shareholder distributions in respect of 2022 equivalent to c.13.4p per share Maintain robust capital ratios • Strong capital position maintained, with Group CET1 of 13.9%, within our target range of 13% to across the Group and within 14% the main operating entities • Similarly strong capital ratios prevail in all main operating entities: at the end of 2022, Barclays Bank PLC’s CET1 ratio was 12.7% and Barclays Bank UK PLC’s CET1 ratio was 14.7%, well in excess of regulatory minimums Actively deploy the range of • Continued to develop green and sustainable banking products, including green mortgages, bonds, Barclays’ businesses and loans and investment funds capabilities to support • Launched the Barclays Green Home Buy-to-Let Mortgage product and the Greener Home Reward customers and clients as we pilot, offering Barclays UK mortgage customers cash rewards to install energy-efficient measures collectively transition to a low • For Barclays UK business customers, launched a partnership with Propel, helping provide asset carbon economy financing to support investment in renewable assets • Advised and helped companies raise capital for emerging climate technology, including the Haffner Energy IPO • Announced a new target to facilitate $1 trillion of Sustainable and Transition Financing between 2023 and the end of 2030 and increased the investment mandate for sustainability-focused start- ups to £500m by 2027 Continue to deliver • Grew income in CIB by 8%, driven by the best full year for both Global Markets and FICC and strong sustainable growth in the performance in Transaction Banking, more than offsetting the impact of a reduced fee pool in Corporate and Investment Investment Banking Bank • Maintained our overall ranking of 6th globally across Investment Banking and across Global Markets, narrowing the gap to 5th, as well as increased the diversity and predictability of our income, growing our financing business in Global Markets, including in Prime • Integrated International Corporate Banking with our Investment Banking business, with a focus on growing our Transaction Banking share, and actively recruited to strengthen our teams Continue to drive our • Continued to invest in enhancing our Global Markets digital proposition, including our electronic technology agenda across the trading capabilities and our digital self-service platform, and our financing platforms across Fixed Group to support improving Income and Equities customer and client services • Continued to adapt our service model by building out Barclays Local – an alternative branch and experience presence for those who need in-person support • Enhanced the Barclays App to enable all mortgage customers to manage their mortgage through the app, including switching onto a new rate • Rolled out Microsoft Teams across all geographies to help colleagues to collaborate and support customers and clients

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 224 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) In addition to the shared personal objectives described above, the table below summarises performance against the personal objectives specific to C.S. Venkatakrishnan. C.S. Venkatakrishnan's objectives Outcomes Ensure a continued focus on • Continued to act as a market maker and liquidity provider to clients across the globe, helping them customer and client find opportunities and manage risk during a continued period of heightened market disruption outcomes • Continued the focus on improving the overall customer experience in Barclays UK by identifying the root causes of customer complaints and supporting their removal. Complaints in Barclays UK reduced by 18% vs. 2021, despite an 8% rise in interactions with the bank across all channels • Introduced additional support for vulnerable customers who may be experiencing financial vulnerability due to inflationary pressures, including training over 16,000 colleagues to better recognise signs of vulnerability, raising awareness of tools and support available and adapting products, including increased resource in our Barclays Financial Assistance team • Reached an agreement to acquire Kensington Mortgage Company, a specialist mortgage lending platform focused on customers with complex incomes, which will enable us to provide residential mortgages to more customers • Significantly grew our customer care teams globally, including nearly doubling our footprint in our US Contact Centre in the US following the acquisition of the GAP credit card portfolio, with over 1,800 new hires Continue to embed the • Further embedded the Barclays Mindset into our hiring, performance management, reward and Mindset across the recognition frameworks organisation in support of our • Increased the number of colleagues who believe that they and their team do a good job of role Purpose modelling our Mindset every day (2022: 92%; 2021: 89%) • Over 260,000 recognitions were sent to colleagues during 2022 specifically recognising our Mindset in action Continue to develop a high- • Colleague engagement increased across the Group to 84%, an increase of 2% points versus 2021, performing culture in line with with the annual YourView survey also showing positive results across most other measures our Values, with a focus on • Inclusion Index score for 2022 was 82%, up 3% points on 2021, with 88% of colleagues telling us employee engagement, that they feel included in their team succession planning, talent • Launched a refreshed DEI vision and strategy to our colleagues and the community, incorporating and diversity ‘Equity’ into how we talk about our DEI strategy and take action to progress that strategy • Continued to make progress towards our 2025 Gender and Race at Work Ambitions, increasing senior female representation globally and representation of underrepresented minority groups in the UK and the US • Appointed Anna Cross as an internal successor to our Group Finance Director role Empower the effective • Drove sustainable improvements to the internal control environment, including in response to the management of the risk and Over-issuance of Securities, both in specific controls and also the control mindset required at all controls agenda levels in the organisation • Established a change programme, alongside our Purpose, Values and Mindset, to set a standard of consistent excellence and help ensure that Barclays performs at a very high level, consistently, day in and day out Effectively manage • Venkat has built strong connections and proactively collaborated with UK and US regulators relationships with key external throughout the year, working to support the broader UK economy stakeholders and society • Engaged extensively with stakeholders, including in relation to Barclays' climate strategy, the Say on more broadly Climate advisory vote at the 2022 AGM and the Over-issuance of Securities Recognising C.S. Venkatakrishnan's very strong performance against both his individual and shared personal objectives, and his leadership of the organisation through 2022, the Committee assessed that an outcome of 13% out of a maximum of 15% was appropriate.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 225 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) The table below summarises performance against the personal objectives for the Group Finance Director, which were originally set for Tushar Morzaria but also applied to Anna Cross after she succeeded him in that role. Objectives for the Group Finance Director Outcomes Continue to optimise financial • Enhancements made to delivery of quarterly results, providing more granular performance management and reporting commentary, greater transparency on notable items and more accessible narrative (particularly through • Leveraged technology to enhance the delivery of financial management reporting, increase technology) to drive benefits efficiency and automation across the Group Continue to progress the • Liquidity Transformation delivered, resulting in greater automation, accelerated reporting, transformation of the improved controls, and improved liquidity buffer management Treasury function, including • Successful delivery of the Bank of England-mandated programme to ensure Barclays is able to strategic treasury and liquidity manage its funding and liquidity in a resolution scenario, commented on in the Bank of England UK platforms bank resolvability assessment as ‘above peers’ Oversee the effective • Control Environment and Management Control Approach overall rated satisfactory in 2022 management of the risk and • Strong personal contribution to the response and remediation of the Over-issuance of Securities controls agenda across Group • The risk-free rates transition is in progress with USD LIBOR exposures decreasing throughout 2022 Finance, Strategy, Tax and Treasury Retain focus on the colleague • High level of colleague engagement across Finance, at 85% (2021: 82%) agenda across Group Finance, • Strong progress again this year against three key areas of people focus: Diversity, Equity & Strategy, Tax and Treasury, Inclusion; Skills for the Future; and Operational Efficiency & Ways of Working driving employee • Continued focus on embedding the Barclays Mindset with positive increases on all three indices: engagement, continuing to Empower at 89% (2021:86%); Challenge at 85% (2021:83%); and Drive at 87% (2021:84%) improve diversity, developing senior talent and succession planning Effectively manage • Established effective and open relationships with regulators and the investment community relationships with key external stakeholders including regulators and investors The Committee recognised the high level of achievement during 2022 against these objectives. Anna Cross stepped into the Group Finance Director role as a natural successor, considering the skills and relevant experience that she brings, and the Committee’s assessment was that during 2022 she provided strong leadership in this critical role. She performed exceptionally well in her first eight months as Group Finance Director and was instrumental in the delivery against both the personal objectives set for the Group Finance Director and those shared with the Group Chief Executive. Based on her contribution to those achievements, the Committee assessed that an outcome of 13% out of a maximum of 15% was appropriate. The Committee separately assessed Tushar Morzaria’s contribution in the earlier part of 2022 to the achievement against these same objectives, noting his strong contribution throughout his tenure as Group Finance Director, including over the last few months in this role. His key achievements in 2022 in relation to his Executive Director role included supporting a highly effective transition of responsibilities to Anna, positioning her well to succeed him as part of a clear and effective internal succession plan, and the contributions he made from the beginning of 2022 through the delivery of full-year results for 2021 and Q1 results for 2022. Based on his contribution to the achievements against the personal objectives above, the Committee assessed that an outcome of 12% out of a maximum of 15% was appropriate. 5) Vesting of the 2020-2022 LTIP cycle The LTIP value included in the single total figure for 2022 for Tushar Morzaria is based on the amount that will be released on 8 March 2023 in relation to the 2020-2022 LTIP award granted in 2020. The value that will vest has been estimated using the Q4 2022 average share price of £1.5315. Release is dependent on, among other things, performance over the period from 1 January 2020 to 31 December 2022, with straight-line vesting applied between the threshold and maximum points for the financial measures. The performance achieved against the performance targets is shown in the table that follows. No LTIP awards were granted to C.S. Venkatakrishnan and Anna Cross in 2020 as they were not Executive Directors at that time.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 226 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) 2020-2022 LTIP outcomes % of award Performance measure Weighting Threshold Maximum vesting Actual vesting Average return on 50% 10% of award vests for RoTE of 50% of award vests for RoTE of 10.7% 50.0% tangible equity (RoTE) 9.0% 10.5% (excluding litigation and A CET1 underpin also applied conduct and other a,b material items) Average cost: income 20% 4% of award vests for average 20% of award vests for Cost: 62.9% 0.0% ratio (excluding litigation cost: income ratio of 60% income ratio of 58.5% and conduct and other c material items) Risk scorecard 15% The Risk scorecard captures a range of risks and is aligned with the annual 8.0% (detailed below) incentive risk alignment framework reviewed with the regulators. The current framework measures performance against three broad categories – Capital and liquidity, Control environment and Conduct – using a combination of quantitative and qualitative metrics. Strategic non-financial 15% Performance is measured against the Strategic non-financial measures. The 12.0% Committee determined the percentage of the award that may vest between (detailed on pages 0% and 15%. The measures are organised around three categories: 227 and 228) Customers and clients, Colleagues and Society. Each of the three main categories has equal weighting. Total 70.0% Final 2020-2022 LTIP vesting outcome approved by the Committee 70.0% Notes a Based on adjusting tangible equity to be consistent with a CET1 ratio that aligns with the assumptions the Group uses for capital planning purposes (13.0% to 13.5% over the performance period and broadly in line with the Group CET1 ratio target). b Material items consist of post-tax structural cost actions (2022: £110m, 2021: £489m, 2020: £268m), Barclays’ 2020 COVID-19 Community Aid package (post-tax £66m) and re-measurement of UK DTAs (2022: £346m, 2021: -£462m). The litigation and conduct impacts from the Over-issuance of Securities and the devices settlements are not excluded. c Material items consist of structural cost actions (2022: £151m, 2021: £648m, 2020: £368m) and Barclays’ 2020 COVID-19 Community Aid package (£95m). The litigation and conduct impacts from the Over-issuance of Securities and the devices settlements are not excluded. Assessment of the Risk scorecard for the 2020-2022 LTIP A summary of the Committee’s assessment against the Risk scorecard performance measure over the three-year performance period is provided below. Each category was equally weighted at 5%. Category Performance Outcome Capital and liquidity • Group CET1 ratio stands at 13.9%, toward the upper end of the 13% to 14% target range. 5.0% • Stress tests results indicate that Barclays is positioned to withstand a severe recession scenario featuring considerable affordability pressures on consumers from high and persistent inflation. • Our Liquidity Coverage Ratio was significantly above the 100% regulatory requirement in the period, and there were no breaches. Control environment • In light of the Over-issuance of Securities, the Committee did not assess the Control 0.0% environment element of the LTIP Risk scorecard but instead elected to set this element of the LTIP to zero. Conduct • Trading Entity conduct risk dashboards, setting out key indicators in relation to conduct risk 3.0% are provided to the respective Board Risk Committees and senior management to support effective oversight and decision making. • These dashboards provide an insight into the Conduct Risk Control Environment to ensure any issues are addressed in a timely and effective manner, so that the Group continues to operate within Risk Appetite. Overall Risk scorecard outcome for the 2020-2022 LTIP 8.0%

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 227 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Assessment of the Strategic non-financial measures for the 2020-2022 LTIP A summary of the Committee’s assessment against the Strategic non-financial performance measures over the three-year performance period follows. Each category was equally weighted at 5%. Measure Criteria Performance Outcome Customer and clients 3.5% Global Markets ranking Maintain client • Global Markets ranking was maintained at 6th over the period, fee a ranking and share increased from 6.2% in 2019 to 7.3% in 2022 Global Markets revenue increase market share share Investment Banking ranking • Global Banking fee rank was 6th in 2019 and remains at 6th in 2022, b fee share fell from 4.1% in 2019 to 3.1% in 2022 Investment Banking fee share Barclays UK NPS® Improve • Barclays UK NPS ranking remained broadly consistent over the period, starting and ending at 7th, while Barclaycard UK NPS ranking improved Barclaycard UK NPS® from 4th in 2019 to 2nd in 2022 US Consumer Bank Care c • Barclays UK NPS score reduced over the period in line with what has tNPS® been observed for UK peers over the COVID-19 pandemic. Barclaycard UK NPS score reduced initially, but recovered in 2022 • US Consumer Care tNPS has only been measured since 2020. After a reduction in 2021, Care tNPS improved in 2022 Barclays UK complaints Reduce • Consistent progress in Complaints reduction in Barclays UK each year reduction (ex PPI) complaints since 2019 • In 2022, reduction in customer complaints despite an increase in interactions with the bank across our channels BUK digitally active Increase digital • Steady increase in BUK digitally active customers over the period customers engagement • Significant increase in number of Mobile Active Customers over the Mobile Active Customers period from 8.4m in 2019 to 10.5m in 2022, with new app features introduced throughout this period CCP US Customer Digital d Engagement • CCP US Customer Digital Engagement increased to 74.1 Colleagues 3.5% Diversity 2025 target of • Women in senior leadership (Managing Directors and Directors) 33% increased from 25% in 2019 to 29% in 2022, making steady progress % of females at Managing towards the 2025 target of 33% Director and Director level • Equivalent figure for Barclays in the UK is now 31% Inclusion Maintain at healthy • The percentage of employees in Your View survey who feel included in levels their team has increased from 85% in 2019 to 88% in 2022 "I feel included in my team" • The Inclusion Index is at 82% for 2022 up from 76% in 2020, the first year it was introduced Employee engagement Maintain at healthy • Engagement levels across Barclays are now at 84%, up 10% points e levels since 2019 • The percentage of employees in Your View survey who would recommend Barclays as a good place to work has remained at healthy levels throughout the period, 80% or above in each year "Enable" measures, Improve key • Significant improvement over the period in percentage of employees including measures relating metrics from in Your View survey who report that they have the tools and resources to tools and resources 2019, including they need to achieve excellent performance Enable scores • Began measuring "getting things done at Barclays is simple and straightforward" in 2021 as an outcome related to enable, with a slight improvement observed from 2021 to 2022 Notes a Global Markets share and rank for Barclays is based on our share of Top 10 banks reported revenues. Peer banks include Bank of America, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Chase & Co, Morgan Stanley and UBS. b Dealogic for the period covering 1 January 2019 to 31 December 2022. FY21 market share has been restated from last year’s published value based on latest analysis. c Care tNPS provides an accurate measure of customer sentiment across our Fraud, Dispute, Credit and Care channels and replaces the relationship NPS reported in 2021 Annual Report. d Excludes new Gap customers. e As part of our efforts to improve our measurement frameworks, we have transitioned to a new 3 question engagement model. This was after collecting 4 years of concurrent data and running analysis to affirm the new model’s validity. Historic figures have been updated to reflect results from the new “3 question” model.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 228 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Measure Criteria Performance Outcome Society 5.0% Social, environmental and Facilitate £150bn • On a cumulative basis, a total of £247.6bn of social, environmental and sustainability-linked over 2018-2025 sustainability-linked financing facilitated between 2018 and the end of financing 2022, exceeding the 2025 target • In December 2022, we announced a new target to facilitate $1trn of Sustainable and Transition Financing between 2023 and the end of 2030 GHG emissions reduction in GHG scope 1 and • GHG scope 1 and 2 emissions (market-based) reduced each year of our operations and 2 emissions the performance period. Achieved our target in 2022, three years renewable energy usage (market-based) ahead of target reduced by 90% by • Significant increase in renewable electricity use over the period, with 2025 100% of electricity now coming from renewable sources Renewable electricity to 100% by 2025 LifeSkills Upskill 10 million • 12.6m people upskilled between 2018 and 2022, exceeding aspiration people from of helping 10m people by 2022 2018-2022 • LifeSkills - placed into work target also exceeded, with more than Place 250,000 270,600 people placed into work since 2019 people into work from 2019-2022 Overall Strategic non-financial outcome for the 2020-2022 LTIP 12.0% The Committee was satisfied that the level of vesting appropriately reflected the underlying financial health of the Group, and accordingly determined that the award should vest at 70.0% of the maximum number of shares under the total award, to be released in five equal tranches annually, starting from March 2023. After release, the shares are subject to an additional 12-month holding period. The 2020-2022 LTIP award was granted in line with our usual annual timetable, in early March 2020. This coincided with the start of a period of particularly high market volatility, as the start of the COVID-19 pandemic unfolded, and meant that the share price at grant (124.46p) was 22% lower than the share price at the time of the prior year LTIP grant. The Committee recognised that awards made in periods of unusual share price volatility have the potential to give rise to 'windfall gains' related solely to the timing of the grant rather than the underlying performance of the business. They carefully considered a range of analyses in advance of determining the vesting of the award, based on which they concluded that the value vesting appropriately reflected corporate performance over the performance period and did not represent a windfall gain. This included consideration of the following: • The 22% fall in the Barclays share price between successive grants was not in itself unusual. The Barclays share price has moved by 20% or more several times over the past ten years and so a year-on-year movement of this kind is not exceptional. • The timing of the grant was in line with the usual annual process and this LTIP award was not granted at the bottom of the market. The share price (and the value of the LTIP awards) dropped by a further third over the following weeks, to less than 80.24p. By the end of the performance period, the share price had increased to 158.52p. While this corresponds to share price growth of 28% per annum from the low point, from the share price at grant it corresponds to share price growth of 9% per annum. The Committee concluded that this is within the range of share price movements that might be expected over an LTIP cycle. • Furthermore, the Committee considers Barclays’ overall share price increase over the performance period since grant to have been commensurate with the improvement in underlying corporate performance. For example, Group RoTE was 10.4% for 2022, a exceeding the Group’s medium-term target for the second successive year, up from 9% in 2019 (the financial year immediately prior to grant) and building on the RoTE progression in 2017 through 2019. As a result, the Committee concluded that there is no windfall gain and that therefore no adjustment was required. 6) Reduction of unvested awards As set out earlier in the Remuneration report, the 2021 financial statements were restated in 2022 to include a £220m provision and a contingent liability in respect of the Over-issuance of Securities under the BBPLC's US shelf registration statement. As a result, the Committee revisited the 2021 annual bonus outcomes for C.S. Venkatakrishnan and Tushar Morzaria, and the 2019-2021 LTIP outcome for Tushar Morzaria, and reduced those outcomes to reflect the impact of the restatement on the financial measures for those awards. The impact on each financial measure, and associated impact on the incentive pay-out, is shown in the table that follows. The outstanding deferred elements of these awards will be reduced accordingly. Tushar Morzaria and C.S.Venkatakrishnan were both supportive of the reductions. Anna Cross was not subject to these reductions because she did not participate in the Executive Director 2021 annual bonus or the 2019-2021 LTIP, as she was not an Executive Directors at that time. Note a Excluding litigation and conduct. Group RoTE for 2019 including litigation and conduct was 5.3%.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 229 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Adjustment of 2021 annual bonus and 2019-2021 LTIP vesting outcomes Reduction of unvested awards (£000) Outcome determined in Resulting pay-out C.S. Incentive Financial measure 2021 Pay-out (% max) Restated outcome (% max) Venkatakrishnan Tushar Morzaria 2021 annual Profit before tax (excluding material £9.1bn 100 % £8.8bn 100 % — — a bonus items), with CET1 ratio underpin Cost: income ratio (excluding 62.9% 100 % 63.9% 86 % 8 22 a material items) 2019-2021 Average return on tangible equity 9.6 64% 9.4 56% n/a 116 LTIP (RoTE) (excluding litigation and b,c conduct and other material items) 2021 Cost: income ratio (excluding 62.1% 0% 63.1% 0% n/a — litigation and conduct and other d material items) Notes a £648m of structural cost actions treated as material items and excluded from 2021 profit before tax and cost: income ratio. Structural cost actions primarily relate to the real estate review in Q221 and Barclays UK transformation costs. b Based on adjusting tangible equity to be consistent with a CET1 ratio that aligns with the assumptions the Group uses for capital planning purposes (13.0% to 13.5% over the performance period and broadly in line with the Group CET1 ratio target). c RoTE excludes material items and litigation & conduct. Material items for 2021 consist of structural cost actions (£489m post-tax) and a tax benefit (£462m) due to the remeasurement of UK deferred tax assets. Material items for 2020 consist of structural cost actions (post-tax £268m) and Barclays’ COVID -19 Community Aid package (post-tax £66m). Structural cost actions for 2021 primarily relate to the real estate review in Q221 and Barclays UK transformation costs. d 2021 CIR excludes material items and litigation & conduct. Material items for 2021 consist of structural cost actions (£648m). Structural cost actions primarily relate to the real estate review in Q221 and Barclays UK transformation costs. LTIP awards granted during 2022 An award was granted to C.S. Venkatakrishnan on 9th March 2022 under the 2022-2024 LTIP, based on a value per share of £1.2495, which was derived from the share price less a discount to reflect the absence of dividends or equivalents during the vesting period, in accordance with the DRP. This is the value used to calculate the number of shares below. No LTIP award was granted in March 2022 to Tushar Morzaria, as he was due to step down as an Executive Director on 22 April 2022, or to Anna Cross, as she was not an Executive Director at that time. % of Fixed Pay Number of shares Face value at grant Performance period C.S. Venkatakrishnan 140% 3,025,210 £3,780,000 2022-2024 The performance measures for the 2022-2024 LTIP awards are as follows: Performance measure Weighting Threshold Maximum vesting Average return on tangible 25% 0% of award vests for RoTE of 7.0%, rising on a straight-line 25% of award vests for RoTE of equity (RoTE) (excluding basis 11.0% or higher a material items) Average cost: income ratio 10% 0% of award vests for average cost: income ratio of 65.0%, 10% of award vests for average cost: (excluding material items) rising on a straight-line basis income ratio of 59.0% or lower b Maintain CET 1 ratio within 10% If CET1 is below MDA hurdle +190bps during the period, the If CET1 ratio between 190bps and the target range Committee will consider what portion of this element should 290bps above the MDA hurdle vest, based on the causes of the CET1 reduction. throughout the period or if CET1 is above MDA hurdle +290bps but If CET1 is above MDA hurdle +290bps but does not make making progress towards the target progress towards the range over the period, the Committee range will consider what portion of this element should vest, based on the reasons for the elevated levels of CET1 versus target range and the associated impacts. Relative Total Shareholder 25% 6.25% of award vests for performance at the median of the 25% of award vests for performance c d d Return (TSR) peer group , rising on a straight-line basis at or above the peer group upper quartile

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 230 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Performance measure Weighting Threshold Strategic non-financials 20% The evaluation will focus on key performance measures from the Performance Measurement Framework, with a detailed retrospective narrative on progress against each category throughout the period. Performance against the strategic non-financial measures will be assessed by the Committee to determine the percentage of the award that may vest between 0% and 20%. The measures are organised around three main categories and measures will likely include, but not be limited to, the following: Customers and clients (weighted 5%) – drive world class outcomes for customers and clients: Improve Net Promoter Scores; reduce BUK customer complaints and improve resolution time; maintain client rankings and market share within CIB; and increase digital engagement. Colleagues (weighted 5%) – protect and strengthen our culture through our Purpose, Values and Mindset: Continue to improve diversity in leadership roles; improve inclusion indicators; maintain engagement at healthy levels; and maintain culture and conduct indicators. Climate and sustainability (weighted 10%) – progress to be measured against four key objectives: Progress towards our green financing commitments; reduce operational and supply chain carbon footprint and increase use of renewable energy; progress towards achieving our ambition to be a net zero bank by 2050 and our commitment to aligning our financing with the goals and timelines of the Paris Agreement; and continue to invest in our communities. Risk scorecard 10% The Risk scorecard captures a range of risks and is aligned with the annual incentive risk alignment framework shared with the regulators. The current framework measures performance against three broad categories – Capital and liquidity, Control environment and Conduct – using a combination of quantitative and qualitative metrics. The framework may be updated from time to time in line with the Group’s risk strategy. Specific targets within each of the categories are deemed to be commercially sensitive. Retrospective narrative on performance will be disclosed in the 2024 Remuneration report, subject to commercial sensitivity no longer remaining. Notes a Based on an assumed CET1 ratio at the mid-point of the Group range, 13-14%. b Currently 11.3%. c Performance assessed over the period from 1 January 2022 to 31 December 2024. Start and end TSR data will be the Q4 average for 2021 and 2024 respectively and will be measured in GBP for each company. d The peer group is comprised of multinational banks in the UK, Europe and North America of comparable size to Barclays and whose weekly returns have a high degree of correlation with Barclays’. The peer group for the 2022–2024 LTIP award is: Banco Santander, Bank of America, BBVA, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse, Deutsche Bank, HSBC, ING Groep, Lloyds Banking Group, Morgan Stanley, NatWest Group, Societe Generale, Standard Chartered, UBS, Unicredit.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 231 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Executive Directors: Statement of implementation of remuneration policy in 2023 An overview of how the DRP will be implemented for Executive Directors in 2023 is set out in the subsequent sections. The following chart illustrates how 2023 remuneration will be delivered to the Executive Directors. Implementation of policy in 2023 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Implementation Fixed Cash C.S. Pay Venkatakrishnan £2,875,000 Shares Restrictions lifting over 5 years Anna Cross £1,800,000 Pension Cash in lieu C.S. of pension Venkatakrishnan 5% of Fixed Pay Anna Cross 5% of Fixed Pay Annual Performance Cash C.S. bonus period Venkatakrishnan up to 93% of Fixed Pay Shares Holding Anna Cross up to period 90% of Fixed Pay Shares Holding period Shares Holding period LTIP Preliminary Performance period Shares Holding C.S. performance period Venkatakrishnan up period to 140% of Fixed Shares Holding Pay period Anna Cross up to Shares Holding 134% of Fixed Pay period Shares Holding period Shares Holding period 2023 Fixed Pay and market competitiveness of the Executive Directors’ total compensation opportunity Tushar Morzaria informed the Board on 22 February 2022 of his intention to retire from the Board and step down as Group Finance Director. Immediately following the decision that Anna Cross would be appointed to succeed him with effect from 23 April 2022, the Committee considered the level of Fixed Pay Anna Cross should receive, taking into account the role, her relevant skills and experience, and pay levels at other comparable firms (on which the Committee receives independent advice), in the context of wider workforce pay levels and the experience of our stakeholders. Banking regulation in the UK and Europe caps variable pay as a percentage of Fixed Pay for senior roles including the Executive Directors and so providing a suitable level of total compensation within the constraint of those regulations is a key driver of the Executive Directors’ Fixed Pay levels. Pay benchmarking data is used as a reference point to ensure that the total compensation opportunity provided to the Executive Directors is appropriately positioned compared to other similar large and complex international banks. Comparing the Executive Directors' pay solely with other UK-listed banks would not recognise the Group's global footprint and diversified universal banking model, which includes significant corporate banking, investment banking and global markets businesses. The international banking peer group used by the Committee when considering the Executive Directors' pay includes other large universal banks from continental Europe, and the large US universal and investment banks, plus the most comparable to Barclays of the larger UK-listed banks and BNP Paribas in France, to help maintain balance.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 232 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) The Committee determined the level of Fixed Pay for Anna Cross on appointment as Group Finance Director as £1,725,000 per annum. In doing so, they concluded that the total compensation opportunity that this provides was an appropriate starting point, while noting that it was low compared with international banking peers and that this should be kept under review each year. An annual review of the Executive Directors' Fixed Pay, in the same way and at the same time as for the wider workforce, is a feature of the DRP approved by shareholders in 2020. In February 2023, the Committee reviewed the Fixed Pay for each Executive Director as part of the year-end pay review process for colleagues across the Group. The Committee considered the maximum total compensation opportunity of each Executive Director, driven by their respective levels of Fixed Pay, and noted that in each case the total compensation opportunity is materially less than that offered for the equivalent role at most companies within the international banking peer group. As a result, the Committee determined that Fixed Pay would be increased to £2,875,000 for C.S. Venkatakrishnan, a 3.4% increase, and to £1,800,000 for Anna Cross, a 4.3% increase, effective 1 March 2023. The Committee noted that these are lower percentage increases than the average fixed pay increase for the wider workforce, and in particular for other UK colleagues within the scope of the 2023 UK pay deal with Unite the Union, with an 11% budget for salary increases for the most-junior UK employees and a 6.75% budget for the remainder of the union-recognised population. The 2:1 cap on variable pay relative to fixed pay in banks results in the need to provide both Executive Directors with a level of Fixed Pay that is higher than the Committee might otherwise choose, to ensure the total compensation opportunity is competitive. To mitigate some of the impacts of that higher Fixed Pay, it is delivered half in cash, paid monthly via payroll in a similar way to salary for other employees, and half in shares, which are granted quarterly and released in instalments over 5 years, creating significant alignment with shareholder interests over the longer term. The charts that follow compare each Executive Director's maximum total compensation opportunity for 2023 against the equivalent opportunity across international banking peers. This shows that even after these Fixed Pay increases the maximum total compensation opportunity is significantly behind international banking peers, falling in the lower part of the third quartile for C.S. Venkatakrishnan and in the bottom quartile for Anna Cross. The charts also show a comparison of the maximum total compensation opportunity of each Executive Director with the equivalent roles at the companies that make up the FTSE 30 (i.e. the 30 largest FTSE 100 constituents by market capitalisation). This shows that the Executive Directors’ maximum total compensation opportunity is more competitive, but not inappropriate, compared to the FTSE 30 group. The Committee noted that it would be unlikely for the Group to fill either of the Executive Director roles by recruiting from the other FTSE 30 companies, recognising the necessity for candidates for these roles to have the right breadth and depth of banking knowledge and experience, particularly given that Barclays’ diversified business model includes significant corporate banking, investment banking and global markets businesses. However, this comparison is provided alongside the international banking peer group to provide additional UK context. Executive Director total maximum compensation opportunity relative to market benchmarks Group Chief Executive Group Finance Director C.S Venkatakrishnan Anna Cross International banking peer group International banking peer group FTSE 30 FTSE 30 Bottom Quartile 3rd Quartile 2nd Quartile Top Quartile n n n n Positioning of maximum total compensation opportunity at Barclays relative to market benchmarks Notes: • Barclays and market benchmark data reflects maximum total compensation opportunity, excluding pensions and benefits. • Benchmark data for the international banking peer group and FTSE 30 was provided by Willis Towers Watson, based on publicly disclosed data in respect of each firm's 2021 or 2021/22 financial years, incorporating assumptions where companies do not disclose a maximum total compensation opportunity. • Barclays’ current peer group comprises the following international banks: Bank of America, BNP Paribas, Citigroup, Credit Suisse Group, Deutsche Bank, Goldman Sachs, HSBC Holdings, JP Morgan Chase & Co, Lloyds Banking Group, Morgan Stanley, Standard Chartered and UBS Group. The Committee added Goldman Sachs to the peer group during 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 233 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) 2023 annual bonus performance measures Performance measures with appropriately stretching targets have been selected to cover a range of financial and non-financial goals that support the key strategic objectives of the Company. The bonus measures for 2023 are in line with those for 2022. The performance measures and weightings are shown below: Performance measure Weighting Metrics Profit before tax 50% A performance target range has been set for this financial measure, which will be disclosed in (excluding material items) the next Remuneration report. Pay-out of this element will also depend on the CET1 ratio at the end of the performance year. In line with regulatory requirements, if the CET1 ratio is below the MDA hurdle at the end of the performance year, the Committee will consider what part if any of this element should pay out. Cost: income ratio 10% A performance target range has been set for this financial measure, which will be disclosed in (excluding material items) the next Remuneration report. Strategic non-financial 25% The measures are organised around three main categories and measures will likely include, but not be limited to, the following: The evaluation will focus on a range of key metrics Customers and clients (weighted 7.5%) - drive world class outcomes for customers and clients across stakeholder groups, • Improve Net Promoter Scores with a detailed • Reduce BUK customer complaints and improve resolution time retrospective narrative on • Maintain client ranking and market share within CIB progress against each • Increase digital engagement category throughout the Colleagues (weighted 7.5%) - protect and strengthen our culture through our Purpose, period. Performance Values and Mindset: against the measures will be • Continue to improve diversity in leadership positions assessed by the Committee to determine • Improve inclusion indicators the percentage of the • Maintain engagement at healthy levels award that may vest • Maintain culture and conduct indicators between 0% and 25%. Each Climate and sustainability (weighted 10%) - progress to be measured against four key objectives: of the three main • Reduce operational emissions categories is weighted as • Progress towards our Sustainability and Transition financing target shown. • Reducing our financed emissions • Supporting our communities Personal 15% Joint personal objectives: • Deliver improving shareholder returns, with a focus on RoTE • Maintain robust capital ratios across the Group and within the main operating entities • Continue to invest in capabilities to deliver next-generation, digitised consumer financial services • Continue to deliver sustainable growth in the Corporate and Investment Bank • Actively deploy the range of Barclays’ businesses and capabilities to support customers and clients and capture opportunities as we collectively transition to a low carbon economy • Continue to drive our data strategy and technology agenda across the Group to support improving customer and client services and experience C.S. Venkatakrishnan: • Ensure a continued focus on customer and client outcomes • Continue to embed the Mindset across the organisation in support of our Purpose • Continue to develop a high-performing culture in line with our Values, with a focus on employee engagement, succession planning, talent and diversity • Effectively manage relationships with key external stakeholders, including societal stewardship • Drive leadership accountability to further strengthen our risk management and controls culture

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 234 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Performance measure Metrics Personal (continued) Anna Cross: • Support the Business to grow sustainably, in line with the Group’s strategy, with specific focus on climate, capital and costs • Continue to optimise financial management reporting (particularly through technology) to drive benefits across the Group and to ensure a smooth transition to new rules and regulations • Continue to progress the transformation of the Treasury function, including strategic treasury and liquidity platforms • Oversee the effective management of the risk and controls agenda across Group Finance, and transform for the future where necessary • Retain focus on the colleague agenda across Group Finance – driving employee engagement, continuing to improve diversity, developing senior talent and succession planning • Effectively manage relationships with key external stakeholders including regulators and investors 2023-2025 LTIP awards and performance measures The Committee decided to grant awards under the 2023-2025 LTIP cycle to C.S. Venkatakrishnan and Anna Cross with face values at grant equal to 140% and 134% of Fixed Pay respectively, which will be based on Fixed Pay before applying the 1 March 2023 increases outlined earlier in this Remuneration report. Those maximum award multiples were determined following a detailed review of their individual performance throughout 2022 and recognising their significant personal contributions. This share-based award ensures alignment with future performance over the three-year assessment period, as well as shareholder alignment over the long release period (up to eight years from initial date of grant). The Committee carefully considered the performance measures for the Executive Directors' 2023-2025 LTIP and concluded that the measures adopted last year for the 2022-2024 LTIP continue to represent the most relevant building blocks toward our key longer- term financial and non-financial goals. The 2023-2025 LTIP award will be subject to the following forward-looking performance measures. Performance measure Weighting Threshold Maximum vesting Average return on tangible 25% 0% of award vests for RoTE of 8.0%, rising on 25% of award vests for RoTE of 12.5% or equity (RoTE) (excluding a straight-line basis higher a material items) Average cost: income ratio 10% 0% of award vests for average cost: income 10% of award vests for average cost: (excluding material items) ratio of income ratio of 58.0% or lower 62.5%, rising on a straight-line basis Maintain CET1 ratio within 10% If CET1 is below the target range during the 10% vests if either: b the target range period, the Committee will consider what • CET1 is within the range during the period portion of this element should vest, based on or the reasons for the CET1 shortfall • CET1 is above but making progress If CET1 is above the range and does not towards the target range make progress towards the range over the period, the Committee will consider what portion of the element should vest, based on the reasons for the elevated levels of CET1 versus target range and the associated impacts Relative Total Shareholder 25% 6.25% vests for performance at the median 25% of award vests for performance at or c d d Return (TSR) of the peer group , rising on a straight-line above the peer group upper quartile basis

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 235 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Performance measure Weighting Threshold Maximum vesting Strategic non-financials 20% The evaluation will focus on key performance measures from the Performance Measurement Framework, with a detailed retrospective narrative on progress against each category throughout the period. Performance against the strategic non-financial measures will be assessed by the Committee to determine the percentage of the award that may vest between 0% and 20%. The measures are organised around three main categories and measures will likely include, but not be limited to, the following: Customers and clients (weighted 5%) – drive world class outcomes for customers and clients; Improve Net Promoter Scores; reduce BUK customer complaints and improve resolution time; maintain client rankings and market share within CIB; and increase digital engagement. Colleagues (weighted 5%) – protect and strengthen our culture through our Purpose, Values and Mindset; Continue to improve diversity in leadership roles; improve inclusion indicators; maintain engagement at healthy levels; and maintain culture and conduct indicators. Climate and sustainability (weighted 10%) – progress to be measured against four key objectives: Reduce operational emissions; progress towards our Sustainability and Transition financing target; reducing our financed emissions; and supporting our communities. Risk scorecard 10% The Risk scorecard captures a range of risks and is aligned with the annual incentive risk alignment framework shared with the regulators. The current framework measures performance against three broad categories – Capital and liquidity, Control environment and Conduct – using a combination of quantitative and qualitative metrics. The framework may be updated from time to time in line with the Group’s risk strategy. Specific targets within each of the categories are deemed to be commercially sensitive. Retrospective narrative on performance will be disclosed in the 2025 Remuneration report, subject to commercial sensitivity no longer remaining. Notes a Calculated assuming a CET1 ratio at the mid-point of the Group target range, 13-14%. b Currently 13-14%. c Performance assessed over the period from 1 January 2023 to 31 December 2025. Start and end TSR will be the Q4 average for 2022 and 2025 respectively and will be measured in GBP for each company. d The peer group is comprised of banks in the UK, Europe and North America of comparable size to Barclays and whose weekly returns have a high degree of correlation with Barclays'.The peer group for the 2023-2025 LTIP award is Banco Santander, Bank of America, BBVA, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse, Deutsche Bank, HSBC, ING Groep, Lloyds Banking Group, Morgan Stanley, NatWest Group, Societe Generale, Standard Chartered, UBS, Unicredit.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 236 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Additional remuneration disclosures Group performance graph and Group Chief Executive remuneration The performance graph below compares the total shareholder return of Barclays shares with the total shareholder return of the FTSE 100 index over the ten years ended 31 December 2022. The FTSE 100 index has been selected because it represents a cross-section of leading UK companies, of which Barclays is a long-standing constituent. Total Shareholder Return – rebased to 100 in 2012 Year ended 31 December 184 176 168 157 149 143 140 119 119 118 100 115 105 102 100 97 94 94 89 83 73 71 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Barclays FTSE100 Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 C.S. C.S. Antony Antony Antony John Jes Jes Jes Jes Jes Jes Jes Venkata- Venkata- Group Chief Executive Jenkins Jenkins Jenkins McFarlane Staley Staley Staley Staley Staley Staley Staley krishnan krishnan a b c d Single total remuneration 1,602 5,467 3,399 305 277 4,233 3,873 3,362 5,929 4,220 2,121 866 5,197 figure Group Chief Executive c d Annual bonus award as a 0.0% 57.0% 48.0% n/a n/a 60.0% 48.5% 48.3% 75.0% 38.6% n/a 92.6% 75.4% % of maximum e e e e e e c e e Long-term incentive plan n/a 30.0% 39.0% n/a n/a n/a n/a n/a 48.5% 23.0% n/a n/a n/a vesting as a % of maximum Notes a Antony Jenkins’ 2014 pay is higher than in 2013 since he declined a bonus and did not have an LTIP vesting in 2013. b 2020 remuneration outcomes reflect 2018-2020 LTIP value restated for the actual share price on the date of vesting. c Jes Staley stepped down as Group Chief Executive on 31 October 2021. The remuneration shown for 2021 is in respect of his services as an Executive Director between 1 January 2021 and 31 October 2021. This figure does not include variable remuneration as the Committee has made no decisions in respect of Mr Staley's variable remuneration in respect of performance during 2021, and has suspended the vesting of all of his unvested deferred remuneration awards including the LTIP award granted to him in March 2019, as explained earlier in this Remuneration report. d The 2021 remuneration shown is in respect of C.S. Venkatakrishnan's services during 2021 following his appointment as Group Chief Executive on 1 November 2021. It includes the subsequent reduction to reflect the lower outcomes of the financial measures following the restatement of the 2021 financial statements and as a result the figure has been restated from the value disclosed in the 2021 Annual Report. e Not applicable as the individual was not a participant in a long-term incentive award that vested in the period.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 237 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Group Chief Executive pay ratio The table below shows the ratios of the Group Chief Executive’s total remuneration to the total remuneration of UK employees since 2018 and the change in the pay ratios for 2022 is explained below. Option 25th percentile Median 75th percentile 2022 A 154 x 101 x 58 x a 2021 A 95 x 62 x 35 x 2020 A 144 x 95 x 53 x 2019 A 213 x 140 x 77 x 2018 A 126 x 85 x 45 x Note a 2021 Group Chief Executive pay ratio figures are calculated using the sum of the 2021 single total figure for remuneration for C.S. Venkatakrishnan and Jes Staley for their respective periods of service as Group Chief Executive in 2021. The 2021 pay ratio figures have been recalculated to reflect the reduction that will be applied to the deferred elements of C.S. Venkatakrishnan’s 2021 bonus, after the financial outcomes were recalculated to reflect the restatement of the 2021 financial statements, though after rounding the pay ratios shown are unchanged from those disclosed in the 2021 Annual Report. The regulations provide three options that companies may use to calculate total pay for the employees at the 25th percentile, median and 75th percentile. Option A was selected as this is the most robust methodology, calculating total pay for all employees on the same basis that the single total figure for remuneration is calculated for Executive Directors. Total pay for each employee includes earned fixed pay, which is made up of salary, any Role Based Pay and relevant allowances, annual incentives awarded for the 2022 calendar year, and an estimate of pension and benefits for 2022. Other elements of pay such as overtime and shift allowances have been excluded. The estimate of pension for each employee is based on the percentage currently available to new hires in the UK (10% of salary for the more senior and 12% for the more junior corporate grades). The estimate of benefits is based on the cost of core benefits available at each corporate grade, including private medical insurance, income protection and life assurance. Calculations use full-time equivalent pay data taken from our HR systems for all UK employees, for each year using the employee population on 31 December. Total pay and fixed pay for the UK employees at the 25th percentile, median and 75th percentile are set out in the table below. 25th percentile Median 75th percentile Total pay Fixed Pay Total pay Fixed Pay Total pay Fixed Pay 2022 £33,711 £28,300 £51,493 £41,608 £89,911 £71,071 2021 £31,404 £26,035 £48,253 £39,461 £85,407 £67,408 2020 £29,380 £24,706 £44,631 £37,460 £79,324 £64,272 2019 £27,875 £23,348 £42,362 £35,158 £77,488 £62,263 2018 £26,587 £21,899 £39,390 £32,202 £74,685 £60,000 The Group Chief Executive pay ratios for 2022 are higher than the pay ratios for 2021. The 2021 pay ratios were calculated using the sum of the 2021 single total remuneration figure for C.S. Venkatakrishnan and Jes Staley for their respective periods of service during 2021 as Group Chief Executive. The figure for Jes Staley did not include any value for bonus or LTIP as no remuneration decisions were made in respect of Mr Staley for performance-year 2021, and the 2019-2021 LTIP award granted to him in March 2019 that would otherwise have vested to him in March 2022 was suspended, as explained earlier in this Remuneration report. On a like-for-like annualized basis, C.S. Venkatakrishnan’s bonus for 2022 is lower than his 2021 bonus as Group Chief Executive, while the median bonus for UK employees has increased by 3% in 2022, as is discussed in more detail on the next page. The Group Chief Executive pay ratios for 2022 are more similar to the 2020 pay ratios, which is the most recent year that the single figure for remuneration included a full-year bonus for the Group Chief Executive. Looking back over the four-year period shown in the tables, total pay for the more junior employees in the UK has increased by almost a third (27% at 25th percentile and 31% at median), and fixed pay has increased by a similar amount (29% at both 25th percentile and median). Pay at the 75th percentile (more senior colleagues) has increased by less (20% for total pay and 18% for fixed pay). This is consistent with our commitment to fair pay for the lowest paid. Salary levels are reviewed annually to ensure these exceed living wage benchmarks and salary increases are focused on the more junior colleagues. In addition, more junior employees are largely protected from decreases in bonus pool. Barclays remuneration philosophy is set out earlier in this report, and all remuneration decisions for Executive Directors and the wider workforce are made within this framework. The Group Chief Executive pay ratio is one of the outcomes of all of these decisions, which are explained in more detail in the Committee Chair’s annual statement. To ensure that Executive Director remuneration outcomes are commensurate with experience for the wider workforce, the Remuneration Committee each year specifically considers whether the bonus and LTIP outcomes for the Executive Directors appropriately reflect the Group’s performance, shareholder experience and the remuneration outcomes for the wider workforce, as part of determining whether a discretionary adjustment should be made to the Executive Directors’ incentive outcomes. The Committee concluded that this remains the case for this year's remuneration outcomes.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 238 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Annual percentage change in remuneration of Directors and employees The table below shows the percentage change in the Executive Directors’ Fixed Pay, benefits and bonus each year between 2020 and 2022 compared with the percentage change in each of those components of pay for UK-based employees of Barclays Group and for employees of the Barclays PLC (BPLC), the parent company of the Group. Fixed pay Benefits Annual bonus a C.S. Venkatakrishnan 2% 853% (16%) b Anna Cross n/a n/a n/a c Tushar Morzaria 2021/2022 2% 82% (20%) Median UK employee 5% 10% 3% d Median employee of BPLC 10% 15% (2%) a C.S. Venkatakrishnan n/a n/a n/a c Tushar Morzaria 2% (10%) 152% e Jes Staley 2020/2021 1% (12%) n/a Median UK employee 5% 6% 42% d Median employee of BPLC 11% 0% 38% Tushar Morzaria 0% 9% (49%) Jes Staley 0% 10% (49%) 2019/2020 Median UK employee 7% 20% (16%) d Median employee of BPLC 7% 26% (16%) Notes a C.S. Venkatakrishnan was appointed as Group Chief Executive with effect from 1 November 2021. His remuneration figures for 2021 are pro-rated up to a full-year equivalent for the purpose of this comparison. The value of his benefits in 2022 includes the cost of providing relocation support, including immigration assistance, temporary accommodation and home search support in London. No percentage change figures can be calculated for 2020/21 as he did not receive any remuneration in respect of services provided as an Executive Director in 2020. b Anna Cross was appointed as Group Finance Director with effect from 23 April 2022. No percentage change figures can be calculated for 2021/22 as she did not receive any remuneration in respect of services provided as an Executive Director in 2021. c Tushar Morzaria retired from the Board and stepped down as Group Finance Director on 22 April 2022. His remuneration figures for 2022 are pro-rated up to a full-year equivalent for the purpose of this comparison. The value of his benefits in 2022 includes the cost of advice on tax return preparation incurred in 2021 and 2022 that were all invoiced in 2022. The annual bonus percentage change for Tushar Morzaria reflects the reduction that will be applied to the deferred elements of his 2021 bonus, to reflect the restatement of the 2021 financial statements, and as a result the 2020/2021 percentage change has been restated from the value disclosed in the 2021 Annual Report. d The BPLC comparison is included because this is a statutory requirement, though BPLC employs only a very small number of Head Office employees (51 for 2022). e Jes Staley's remuneration figures for 2021 are pro-rated up for the purpose of this comparison. The Committee has not made any remuneration decisions to date in respect of 2021 variable pay, as explained earlier in this Remuneration report. For the Executive Directors, percentage change figures for 2021 to 2022 are calculated using the single total figures for remuneration. For the purpose of this comparison, these have been pro-rated up to full year based on their respective periods of service as Executive Directors each year. As such, C.S. Venkatakrishnan’s 2021 single total figure for remuneration, which reflects remuneration for his two months’ service as an Executive Director in 2021, was pro-rated up to a full-year equivalent, as was Tushar Morzaria’s single total figure for 2022, which reflects remuneration from the start of 2022 until he stepped down as Group Finance Director and an Executive Director on 22 April 2022. For Fixed Pay, the 2021 to 2022 increase shown for C.S. Venkatakrishnan is due to the 3% Fixed Pay increase agreed for him with effect from 1 March 2022. The increase shown for Tushar Morzaria is due to the 4.5% Fixed Pay increase implemented with effect from 1 July 2021, which was originally approved by shareholders at the 2020 AGM and postponed due to the COVID-19 pandemic. The large percentage change in benefits for C.S. Venkatakrishnan from 2021 to 2022 is predominantly due to the cost during 2022 of providing him with relocation support, including immigration assistance, temporary accommodation and home search support in London, in line with the current DRP. As referenced in last year's Remuneration report, under the terms of his relocation to London, temporary accommodation in London will be provided to him for a period of up to two years following his appointment as Group Chief Executive in November 2021. Tushar’s benefits (on an annualised basis) have increased in comparison to 2021 largely due to the cost of advice on tax return preparation incurred in 2021 and 2022 all being invoiced in 2022, the total value of which is c.£15,000. The bonus outcomes for C.S. Venkatakrishnan and Tushar Morzaria are down 16% and 20% respectively (based on full-time equivalents each year). This is reflective of the financial and non-financial performance factors outlined earlier in this Remuneration report, in the section on the 2022 annual bonus outcomes, including the impact of the Over-issuance of Securities on the financial results for 2022. For UK employees across the Group overall, the 5% increase in median fixed pay reflects increases awarded during 2022 in the normal course of business and the decision taken to bring forward part of the 2023 pay increase, to give 35,000 UK-based junior colleagues a £1,200 salary increase effective from August 2022 to provide support to colleagues in light of high cost-of-living inflation, ahead of our annual salary review (which will be effective 1 March 2023). The increase in benefits is largely due an increase in the cost to Company of income protection and private medical insurance. For bonus, although the overall incentives pool is down on 2021, the Committee chose to focus the reductions on more-senior colleagues so that year-on-year bonus outcomes for junior colleagues see less of a decline, consistent with our Fair Pay Agenda. As a result, the greatest reductions in incentives from 2021 to 2022 were seen for more senior colleagues. This is reflected in the bonus percentage change figure for the median employee, which is up 3% from 2021 to 2022, despite the overall incentives pool reduction.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 239 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) BPLC only employs a very small number of Head Office employees (51 for 2022) and there is frequent movement of employees between BPLC and other entities within the Barclays Group. To make a meaningful year-on-year comparison, the figures are therefore based on those individuals who were employed by BPLC in both years (34 individuals). The fixed pay increase for this population of 10% is due to a few fixed pay increases following material changes in role in this very small population. The average bonus decrease of 2% is principally a consequence of the decrease in Group-wide incentive pool in 2022. The benefits value has increased due an increase in the cost of income protection and private medical insurance. The table below shows the percentage change in fees each year between 2019 and 2022 for the Chairman and the Non-Executive Directors serving on Barclays PLC Board during 2022, including fees for Board Committee memberships and/or subsidiary board positions. Non-Executive Directors who joined on or after 1 January 2022 are not included. The changes in fees shown relate to changes in responsibilities of the Non-Executive Directors. a a a 2021 / 2022 Fees 2020 / 2021 Fees 2019 / 2020 Fees Nigel Higgins 0% 0% 0% Mike Ashley (2%) 0% 19% b Tim Breedon (19%) 64% 24% Mohamed A. El-Erian 3% 11% n/a c Dawn Fitzpatrick 18% 14% 36% Mary Francis 5% 8% (3%) Crawford Gillies (2%) 108% 4% Brian Gilvary 3% 95% n/a Diane Schueneman 4% (4%) 3% d Julia Wilson 13% n/a n/a Notes a For those who were appointed to Barclays PLC Board or those who stood down from Barclays PLC Board in any of the years covered by the table, fees are pro-rated up for the relevant year for the purpose of this comparison. Additional information has been provided where 2021/2022 percentage changes in fees were greater than 10%. b The decrease in fees from 2021 to 2022 is primarily due to Tim Breedon having retired from his responsibilities as a member of the Board Remuneration Committee of Barclays PLC and Barclays Bank PLC on 31 October 2021; he also retired as Chair of the Board Risk Committee of Barclays PLC and Barclays Bank PLC, and as a member of the Barclays Bank PLC Board, in each case with effect from 28 February 2022. c Dawn Fitzpatrick joined the Board Remuneration Committee with effect from 1 July 2021 and the BCSL Board with effect from 27 September 2021 and received pro-rata fees for that year. For 2022, the full year fees of £30,000 and £20,000 respectively were paid, therefore increasing the fees paid from 2021 to 2022. d The increase in fees from 2021 to 2022 is primarily due to Julia Wilson's additional responsibilities in 2022, including becoming a member of the Board Risk Committee and the Board Nominations Committee with effect from 1 September 2022. Relative importance of spend on pay A year-on-year comparison of Group compensation costs and of distributions to shareholders is shown below. The distributions shown relate to dividends paid and share buyback programmes completed during the year. The distributions for 2022 do not include the dividends and share buyback programme announced on 15 February 2023. b Group compensation costs Distribution to shareholders £m £m 2022 2022 8,349 2,528 6,513 1,836 1,500 1,028 2021 2021 7,624 1,712 5,879 1,745 1,200 512 a Other compensation-related income statement charges Share buybacks n n Performance costs Dividends n n Notes a Relates to costs arising from salaries and other elements of fixed pay, social security costs, post-retirement benefits and other compensation costs. b The chart shows dividends paid and share buyback programmes completed during the year, i.e. for 2022, the figure represents the 2021 full year dividend paid, the share buyback programme announced with the 2021 results, the 2022 half year dividend, and the share buyback programme announced with the half year results. The shareholder distributions announced on 15 February 2023 are not reflected in this chart.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 240 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Chairman and Non-Executive Directors Remuneration for Non-Executive Directors reflects their responsibilities, time commitment and the level of fees paid to Non-Executive Directors of comparable major UK companies. Fees are pro-rated for periods of service. Non-Executive Directors are reimbursed expenses that are incurred for business reasons. Any tax that arises on these reimbursed expenses is paid by Barclays. Chairman and Non-Executive Directors: Single total figure for 2022 remuneration (audited) a Fees Benefits Total 2021 2022 2021 2022 2021 2022 £000 £000 £000 £000 £000 £000 Chairman b Nigel Higgins 800 800 7 8 807 808 Non-Executive Directors Mike Ashley 260 265 — — 260 265 c Robert Berry 213 — — — 213 — d Tim Breedon 392 483 — — 392 483 Mohamed A. El-Erian 155 150 — — 155 150 e Dawn Fitzpatrick 200 170 — — 200 170 Mary Francis 170 162 — — 170 162 Crawford Gillies 490 502 — — 490 502 Brian Gilvary 241 234 — — 241 234 Diane Schueneman 388 374 — — 388 374 f Julia Wilson 135 90 — — 135 90 Total 3,444 3,230 7 8 3,451 3,238 Notes a The annual fees received in 2022 by each Non-Executive Director include fees for Board Committee memberships and/or subsidiary Board positions. Fees shown in the table above are pro-rated (where appropriate) for periods of service. Key changes in appointments during 2022 are identified in notes c to f below. b Nigel Higgins does not receive a fee in respect of his role as Chairman of Barclays Bank PLC. c Robert Berry was appointed to the Board with effect from 8 February 2022 and as Chair of the Board Risk Committee and a member of the Board Audit Committee with effect from 1 March 2022. The 2022 figure includes £90,000, £80,000 and £20,000 respectively, for these appointments (pro-rated for service in 2022). d Tim Breedon retired as Chair of the Board Risk Committee of Barclays PLC and Barclays Bank PLC, and as a member of the Barclays Bank PLC Board, with effect from 28 February 2022, but remains a member of the Board and Chair of Barclays Bank Ireland PLC. e Dawn Fitzpatrick joined the Board Remuneration Committee with effect from 1 July 2021 and the BCSL Board with effect from 27 September 2021 and received pro-rated fees for that year. For 2022, the full year fees of £30,000 and £20,000 respectively were paid, therefore increasing the fees paid from 2021 to 2022. f Julia Wilson was appointed as a member of the Board Risk Committee and the Board Nominations Committee with effect from 1 September 2022. The 2022 figure includes £30,000 and £15,000 respectively for these appointments (pro-rated for service in 2022). Chairman and Non-Executive Directors: Statement of implementation of remuneration policy in 2023 The fees for the Chairman and Non-Executive Directors were reviewed in December 2022 and early 2023. With effect from 1 January 2023, the fee for the Chairman was increased by 5% from £800,000 to £840,000 and the fees for Non-Executive Directors for all other roles on the Board and Board Committees of Barclays PLC were increased by 5%. Fees for the Chairman and Non-Executive Directors are shown below, before those increases in the column headed 1 January 2022 and after the increases in the column headed 1 January 2023. 1 January 2023 1 January 2022 £ £ a Chairman 840,000 800,000 Board member 94,500 90,000 Additional responsibilities Senior Independent Director 37,800 36,000 Chair of Board Audit or Risk Committee 84,000 80,000 Chair of the Board Remuneration Committee 73,500 70,000 Membership of Board Audit, Remuneration or Risk Committee 31,500 30,000 Membership of Board Nominations Committee 15,750 15,000 Note a The Chairman does not receive any fees in addition to the Chairman fees.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 241 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Directors’ shareholdings and share interests Interests in Barclays PLC shares (audited) The table below shows the number of shares owned beneficially by each person who served as a Director during 2022 (including any shares owned beneficially by their connected persons). For the Executive Directors, it shows the number of shares over which each holds awards that are subject to either deferral terms or to deferral terms plus performance measures, and the number of shares owned outright includes shares purchased by the Director as well as shares received in relation to remuneration. The numbers shown for shares that are subject to performance measures represent the maximum number of shares that may be released if those performance measures were to be satisfied in full. The total share interests at 13 February 2023 were the same as shown below for all Directors in service as at 31 December 2022. Unvested deferred awards Subject to Not subject to performance performance Interests in Barclays PLC shares as at 31 December measures measures (or date of retirement from the Board, if earlier) Owned outright Total Executive Directors C.S. Venkatakrishnan 2,019,218 3,025,210 3,223,154 8,267,582 a Anna Cross 400,910 774,557 1,175,467 Chairman Nigel Higgins 1,614,611 1,614,611 Non-Executive Directors Mike Ashley 382,362 382,362 b Robert Berry 4,786 4,786 Tim Breedon 202,399 202,399 Mohamed A. El-Erian 141,014 141,014 Dawn Fitzpatrick 944,925 944,925 Mary Francis 67,944 67,944 Crawford Gillies 221,016 221,016 Brian Gilvary 212,200 212,200 Diane Schueneman 106,844 106,844 Julia Wilson 21,263 21,263 Former Directors c Tushar Morzaria 11,936,430 5,263,505 4,310,037 2,362,888 Notes a Anna Cross was appointed to the Board with effect from 23 April 2022. b Robert Berry was appointed to the Board with effect from 8 February 2022. c Tushar Morzaria stepped down as an Executive Director with effect from 22 April 2022 and as a result his shareholdings are shown as at that date.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 242 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Executive Directors’ shareholdings and share interests (audited) The charts below show the value of Barclays shares held as at 31 December 2022 by C.S. Venkatakrishnan and Anna Cross, or as at 22 April 2022 for Tushar Morzaria, being his last day of active service as an Executive Director, in each case using the Q4 2022 average Barclays ordinary share price of £1.5315. The values of unvested shares are shown after deduction of estimated income tax and social security withholdings. For the unvested shares subject to performance conditions, the proportion that is ultimately released may range from 0% to 100%, depending on the achievement of the performance measures for each award, and on continued employment in accordance with the plan rules and the DRP. For C.S. Venkatakrishnan, the shareholding requirement is 233% of year-end Fixed Pay and for Anna Cross it is 224% of year-end Fixed Pay. C.S. Venkatakrishnan and Anna Cross have five years from their respective dates of appointment as Executive Directors to meet this requirement. Barclays shares held beneficially by each Executive Director count towards the shareholding requirement under the existing DRP, which was in operation during 2022. Under the proposed new DRP, which aligns the shareholding and post-employment shareholding requirements with market practice (as described earlier in the Remuneration report), unvested shares that are not subject to performance conditions will also count toward the shareholding requirement (net of estimated tax and social security). Tushar Morzaria is subject to a two year post-employment shareholding requirement of 224% of his Fixed Pay as at his last day of active service as an Executive Director. Shares that count towards the requirement are beneficially owned shares, plus unvested shares not subject to performance conditions (net of estimated tax and social security). Unvested shares that are still subject to performance conditions do not count towards the shareholding requirements, but contribute to aligning the Executive Directors' interests with shareholder experience through share price exposure. C.S. Venkatakrishnan Anna Cross £000 £000 Requirement 6,477 Requirement 3,864 Actual 614 629 Actual 3,092 2,364 2,219 C.S. Venkatakrishnan has until 1 November 2026, being five Anna Cross has until 23 April 2027, being five years from the years from the date of his appointment as an Executive date of her appointment as an Executive Director, to meet Director, to meet this shareholding requirement. this shareholding requirement. Tushar Morzaria £000 Requirement 3,864 Actual 8,061 1,918 3,498 Having stepped down as an Executive Director on 22 April 2022, Tushar Morzaria has a contractual obligation to maintain his shareholding requirement (as detailed above) for two years following his last day of active service as an Executive Director. Vested shares Unvested shares not subject to performance conditions Unvested shares subject to performance conditions n n n

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 243 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Service contracts and letters of appointment Each Executive Director has a service contract, whereas the Chairman and Non-Executive Directors each have a letter of appointment. Copies of the service contracts and letters of appointment are available for inspection at the Company’s registered office. The effective dates of the current Directors’ appointments disclosed in their service contracts or letters of appointment are shown in the table below. As stated in the letters of appointment, the Chairman and Non-Executive Directors are appointed for an initial term of three years and are subject to annual re-election by shareholders. On expiry of the initial term and subject to the needs of the Board, Non-Executive Directors may be invited to serve a further three years. Non-Executive Directors appointed beyond six years will be at the discretion of the Board Nominations Committee. Effective date of appointment Chairman Nigel Higgins 1 March 2019 (as a Non-Executive Director) 2 May 2019 (as Chairman) Executive Directors C.S. Venkatakrishnan 1 November 2021 Anna Cross 23 April 2022 Non-Executive Directors Mike Ashley 18 September 2013 Robert Berry 8 February 2022 Tim Breedon 1 November 2012 Mohamed A. El-Erian 1 January 2020 Dawn Fitzpatrick 25 September 2019 Mary Francis 1 October 2016 Crawford Gillies 1 May 2014 Brian Gilvary 1 February 2020 Marc Moses 23 January 2023 Diane Schueneman 25 June 2015 Julia Wilson 1 April 2021 Payments to former Directors (audited) Former Group Chief Executive: Jes Staley On stepping down from his role as Group Chief Executive and as an Executive Director of Barclays PLC, on 31 October 2021, Mr Staley was entitled to 12 months' notice from Barclays, under his contract of employment. During his notice period, he continued to receive his Fixed Pay (£2,400,000 per annum delivered half in cash, paid monthly, and half in Barclays shares, awarded each quarter), pension allowance (£120,000 per annum, paid monthly) and other benefits, in line with the DRP. The amounts that he received during 2022, up to the end of his notice period on 31 October, amounted to Fixed Pay in cash of £1,000,000, Fixed Pay in shares of £1,000,000, pension allowance of £100,000 and other benefits with a value of approximately £46,600. He was also contractually entitled to receive reimbursement of repatriation costs to the US, in line with the DRP, and these amounted to £107,000. Mr Staley will continue to be entitled to annual advice on UK and US tax compliance in respect of Barclays employment income. Pending further developments in respect of the regulatory and legal proceedings related to the ongoing FCA and PRA investigation regarding Mr Staley, no further remuneration decisions have been made with regards to his deferred share and LTIP awards which remain suspended. Former Group Finance Director: Tushar Morzaria On stepping down from his role as Group Finance Director and as an Executive Director of Barclays PLC, on 23 April 2022, Mr Morzaria commenced a new role within Barclays as Chairman of Global Financial Institutions Group and Adviser to the Group Chief Executive. He will continue to be entitled to annual advice on UK and US tax compliance until such time as he ceases receiving deferred income related to his period serving as an Executive Director, the total cost of which was c.£15,000 in 2022. Mr Morzaria continues to work within Barclays in other roles and so is not treated as a leaver in respect of any deferred bonus or LTIP awards, which will continue to vest in accordance with the relevant plan rules. Former Group Finance Director: Chris Lucas In 2022, Chris Lucas continued to be eligible to receive life assurance cover, private medical cover and payments under the Executive Income Protection Plan (EIPP). Full details of his eligibility under the EIPP were disclosed in the 2013 Remuneration report (page 115 of the 2013 Annual Report). He did not receive any other payment or benefit in 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 244 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Previous AGM voting outcomes The table below shows the shareholder voting result in respect of our 2021 Remuneration report (approved by shareholders at the AGM held on 4 May 2022) and Directors’ remuneration policy (approved by shareholders at the AGM held on 7 May 2020). For % of votes cast Against % of votes cast Number Number Withheld Number Vote on the 2021 Remuneration Report at the 2022 AGM 89.03% 10.97% 10,193,013,827 1,255,388,727 15,189,796 Vote on the Directors’ remuneration policy at the 2020 AGM 96.29% 3.71% 11,308,670,932 436,091,600 201,020,969 At the AGM held on 24 April 2014, 96.02% (10,364,453,159 votes) of shareholders of Barclays PLC voted for the resolution in respect of a fixed to variable remuneration ratio of 1:2 for ‘Remuneration Code Staff ’ (now known as MRTs). On 14 December 2017, the Board of Barclays PLC as shareholder of Barclays Bank PLC approved the resolution that Barclays Bank PLC and any of its current and future subsidiaries be authorised to apply a ratio of the fixed to variable components of total remuneration of their MRTs that exceeds 1:1, provided the ratio does not exceed 1:2. On 15 November 2018, the Board of Barclays PLC as shareholder of Barclays Bank UK PLC approved an equivalent resolution in relation to MRTs within Barclays Bank UK PLC and any of its subsidiaries. Barclays Board Remuneration Committee The Committee is responsible for overseeing Barclays’ remuneration as described in more detail below. Terms of Reference The role of the Committee is to: • set the overarching principles and parameters of remuneration policy across the Group; • consider and approve the remuneration arrangements of (i) the Chair, (ii) the Executive Directors, (iii) members of the Barclays Group Executive Committee and any other senior executives specified by the Committee from time to time, and (iv) all other Group employees whose total annual compensation exceeds an amount determined by the Committee from time to time; and • exercise oversight over remuneration issues. The Committee considers the overarching objectives, principles and parameters of remuneration policy across the Group, ensuring that it is adopting a coherent approach in respect of all employees. In discharging this responsibility, the Committee seeks to ensure that the policy is fair and transparent, avoids complexity and assesses, among other things, the impact of pay arrangements in supporting the Group’s culture, Values and strategy and on all elements of risk management. The Committee also approves incentive pools for each of the Group, Barclays Bank PLC, Barclays Bank UK PLC and BX, periodically reviews (at least annually) all material matters of retirement benefit design and governance, and exercises judgement in the application of remuneration policies to promote the long-term success of the Group for the benefit of shareholders. The Committee and its members work as necessary with other Board Committees, and the Committee is authorised to select and appoint its own advisers as required. The Committee’s terms of reference are available at + home.barclays/who-we-are/our-governance/board-committees Advisers to the Committee The Committee appointed PricewaterhouseCoopers (PwC) as its independent adviser in October 2017. The Committee considered the advice provided by PwC to the Committee during the year and was satisfied that the advice is independent and objective. PwC is a signatory to the voluntary code of conduct in relation to executive remuneration consulting in the UK. PwC was paid £173,000 (excluding VAT) in fees for their advice to the Committee in 2022 relating to the remuneration of the Directors (either exclusively or along with other employees within the Committee’s Terms of Reference). In addition to advising the Committee, PwC provided unrelated consulting advice to the Group in respect of strategic advice on business, regulation, operational models and cost, corporate taxation, technology, pensions and HR issues. Throughout 2022, Willis Towers Watson (WTW) provided the Committee with market data on compensation, as context when considering incentive levels and remuneration packages. WTW were paid £82,000 (excluding VAT) in fees for these services. In addition to the services provided to the Committee, WTW also provides market data on compensation for other roles below Board level, pensions and benefits advice and insurance brokerage services to the Barclays Group, and pensions advice and administration services to a number of the Group's pension funds. In the course of its deliberations, the Committee also considered the views of the Group Chairman, the Group Chief Executive, the Group Human Resources Director and the Group Reward and Performance Director. The Group Finance Director and the Group Chief Risk Officer provided regular updates on Group and business financial performance and risk profiles, respectively. The Head of Corporate Communications attended when requested to advise on reward communications and disclosures. The Group General Counsel and Company Secretary advised on legal and governance-related matters. No Barclays employee or Director participates in discussions with, or decisions of, the Committee relating to his or her own remuneration. No other advisers provided services to the Committee in the year.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 245 report information sustainability report Governance review review statements Annual Report 2022 Remuneration report (continued) Committee effectiveness in 2022 The 2022 Committee effectiveness review was facilitated internally in accordance with the Code. This internal review involved completion of a tailored questionnaire by Committee members and standing attendees, in line with the approach adopted for all Board Committees in 2022. The review is an important part of the way Barclays monitors and improves Committee performance and effectiveness, maximising strengths and highlighting areas for further development. The results of the review confirm the Committee is operating effectively. It is considered to be well constituted, providing an effective and appropriate level of challenge and oversight of the areas within its remit, including in respect of complex judgements. The review noted that the Committee allocates time appropriately to cover its remit effectively in meetings, with sufficient time for discussion and challenge. The review acknowledged that Committee meetings are chaired effectively, with the Chair encouraging debate through an inclusive approach. In light of Crawford Gillies having stepped down as Committee Chair in February 2021, and the role of Chair having been assumed by an existing Committee member, consideration will be given to adding an additional member of the Committee in due course. The Committee’s interaction with the Board, Board Committees and senior management is considered effective, with the review noting the strong level of support provided to the Committee by senior management. Following the consolidation of the membership of the Committee with the BBPLC Board Remuneration Committee in September 2019 (with the exception of the Committee Chair, who attends as an observer only for matters relating to BBPLC), coverage of BBPLC matters within aligned meetings is considered adequate. The Committee’s interaction with the BBPLC and BBUKPLC Board Remuneration Committees was also considered effective, and operates in line with regulatory requirements. Committee activity in 2022 The following table summarises the Committee’s activity during 2022, and at the January and February 2023 meetings at which 2022 remuneration decisions were finalised. The Committee is also provided with updates at each scheduled meeting on: the operation of the Committee’s Control Framework on hiring, retention and termination; headcount and employee attrition; and extant LTIP performance. January February June October December January February 2022 2022 2022 2022 2022 2023 2023 Overall Finance and Risk updates ▪ ▪ ▪ ▪ ▪ ▪ ▪ remuneration Incentive funding proposals including risk ▪ ▪ ▪ ▪ ▪ ▪ and control adjustments 2021 Remuneration Report ▪ ▪ Group Fixed Pay budgets ▪ ▪ ▪ ▪ ▪ ▪ Wider workforce considerations ▪ ▪ ▪ ▪ ▪ ▪ ▪ Incentive funding approach ▪ Barclays’ Fair Pay Agenda and Report ▪ ▪ ▪ ▪ ▪ ▪ Directors' Remuneration Policy ▪ ▪ ▪ ▪ ▪ 2022 Remuneration Report ▪ ▪ ▪ Executive Executive Directors’ and senior ▪ ▪ ▪ ▪ ▪ Directors’ and executives’ bonus outcomes senior Annual bonus and LTIP performance executives’ ▪ ▪ ▪ ▪ measures and target calibration remuneration Governance Regulatory and stakeholder matters ▪ ▪ ▪ ▪ ▪ ▪ ▪ Discussion with independent adviser ▪ ▪ ▪ ▪ ▪ ▪ ▪ Remuneration Review Panel update ▪ ▪ ▪ ▪ Review of Committee effectiveness ▪ ▪ There were two additional Committee meetings, one each in February 2022 and November 2022, the first to consider the remuneration aspects related to Group Finance Director succession and the second to consider remuneration for a number of senior positions.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 246 report information sustainability report Governance review review statements Annual Report 2022 Other Governance This section aims to provide an overview of certain governance matters of particular relevance to ESG ratings agencies and investors across a range of ESG matters. It covers topics such as our Code of Conduct, Whistleblowing, Tax, Financial crime, Health and Safety and how we manage our Data privacy and Security as well as Resilience. This section also includes our approach to managing social and environmental impacts as well as our Governance disclosures as part of the TCFD recommendations. This section does not discuss general corporate governance Climate and sustainability governance 247 matters. Refer to the Board Governance report from page 142 in Managing impacts in lending and financing 253 the Annual Report for information relating to the Board, ExCo and Board Committees, our Board governance framework and how The Barclays Way 256 we complied with the requirements of the 2018 UK Corporate Whistleblowing 257 Governance Code during 2022. Tax 258 Financial crime 260 Health and safety 261 Managing data privacy, security and resilience 262

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 247 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance Climate and sustainability governance Oversight and management of climate-related issues are embedded within our governance structure. Barclays’ governance structure consists of the Barclays PLC Board (Board) and its Committees along with Executive and Management Committees which span across both business and legal entity lines. The Board sets the Group’s climate-related strategy and oversees its implementation by senior management. Governance structure Barclays PLC Board The Barclays PLC Board sets the strategy for the group Board Risk Committee Board Audit Committee Board Remuneration Committee Group Executive Committee (Group ExCo) Climate Group Group Accountable Transaction Reputation Risk Risk Function’s COO Disclosure Review Committee Committee Executive Committee Committee (GRRC) (GRC) Committee (CTRC) Climate Climate Operational Climate Risk & Legal & Risk Sustainability Portfolio Controls Technical Committee Steering Governance Forum Committee (CRC) Committee Board (CFRF) Group CEOs - Group Group Group Group Chief Corporate & Chief Risk Chief Operating Head of Finance Compliance Investment Bank Officer Officer PPCR Director Officer and Barclays UK Heads of BX Risk and Sustainable Group Head of Group Group Finance Chief Finance - Finance - Head of Head of Operating Corporate & Sustainability Climate Risk Sustainability Officer Investment Bank and ESG and Barclays UK Business / Legal Entity Committees and Forums Climate and Sustainable Finance Council Principal Investments Equity Committee

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 248 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Roles and Responsibilities of Board and Board Committees with respect to Climate matters Board / Board Committee Roles and Responsibilities Responsible for the overall leadership of the Group (with direct oversight of matters relating to strategy, Board reputation and culture). The Board sets the Group’s strategy and has responsibility for overseeing Reputation risk, in respect of which climate matters are a relevant consideration. Responsible for overseeing the integrity of the Group's financial disclosures, the effectiveness of the Board Audit internal control environment and consideration of non-financial reporting. The Committee oversees Committee financial and narrative reporting which encompasses ESG and climate disclosures within the Annual Report. Responsible for monitoring Principal Risks (including Climate risk), considering the Group’s risk appetite Board Risk and tolerances, along with reviewing the Group’s risk profile and commissioning, receiving and Committee considering reports on key risk issues. The Committee has responsibility for reviewing the impact of Climate risk on financial and operating risk arising from climate change through physical risks, risks associated with transitioning towards a lower-carbon economy and connected risk (excluding Reputation risk). Responsible for setting the overarching principles and parameters of remuneration policy across the Board Remuneration Group. The Committee has responsibility for aligning Executive Director remuneration with strategic Committee priorities, including in relation to climate and sustainability matters. Climate and sustainability governance • areas of elevated climate risk and The Board is supported in its work by its Board and Board Committee progress against sector targets, Committees (including in respect of oversight of climate-related risks received in the form of a Climate Risk climate-related matters), each of which and opportunities Dashboard has its own Committee Terms of Barclays PLC Board Reference clearly setting out its remit and • stakeholder views on climate risk The Board is responsible for the overall decision-making powers. The Chairs of • the impact of the war in Ukraine on the leadership of Barclays PLC, including each of the Board Committees provide a transition towards a low-carbon establishing its purpose, values and report on the work of the Committee at economy strategy and assessing and monitoring every Board meeting. • the SEC’s consultation on climate- that these and its culture are aligned. As Board Risk Committee (BRC) related financial reporting part of this, the Board and, as appropriate, The BRC monitors and recommends the its Committees are responsible for the • the PRA’s focus on nature-related risk appetite for the Group's Principal Risks, oversight of social and environmental financial reporting including risks associated with climate matters, including climate-related risks • heightened regulatory focus on change. It considers and reports on key and opportunities. ‘greenwashing’ activities in the financial financial and non-financial risk issues, and During 2022, the Board received five services sector oversees conduct and compliance. It also climate-related updates from the Group • physical risks associated with climate, monitors the Group’s Financial, Head of Public Policy and Corporate including the impact of heatwaves and Operational, Conduct and Legal risk Responsibility (PPCR) and the Group Head droughts. profile. of Sustainability. These covered matters Following on from the Bank of England’s As reported in our 2021 Annual Report, such as progress on our climate strategy, 2021 Climate Biennial Exploratory Scenario Climate risk was elevated to a Principal Risk policy updates, industry trends, (CBES), the BRC received and discussed within our Enterprise Risk Management stakeholder engagement and target- the conclusions of Round 2 of the CBES in Framework (ERMF) from 1 January 2022. setting. In addition to these Board 2022 and subsequently approved the Following a detailed training session on the briefings, the Group Head of PPCR results and conclusions for submission to financial and operational risks of climate engaged with Board members on matters the PRA. These exercises assist the change delivered to the BRC at the relating to the Group’s climate strategy. continued deepening of Barclays’ beginning of 2022, the BRC received The Board also received updates from the understanding of climate risks. quarterly Climate risk updates from the businesses (including Barclays UK and Head of Climate Risk and also received As part of the Group’s strategic planning Barclays International), either directly or reports from the businesses on their process, the BRC recommended to the through the reports of the Board Risk climate strategy, with a focus on ensuring Board for approval the Barclays Risk Committee, regarding their climate Climate risk is adequately considered as Appetite Statement, which covers all strategy. part of business-planning activities across Principal Risks, including Climate risk. See the ‘Climate spotlight’ on the next the Group. page for details of key Board activities and As part of the updates provided by the decisions in 2022 in relation to climate- Head of Climate Risk, the BRC received related matters. and considered updates in relation to:

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 249 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) The BRC also reviewed the ERMF and Board Remuneration annual bonus and 2023-2025 Long Term Committee (RemCo) recommended the same to the Board for Incentive Plan (LTIP) for the Executive its approval, and reviewed each of the Directors both include a 'Climate and The RemCo is responsible for setting the Principal Risk frameworks, including the sustainability' category, focusing on overarching principles and parameters of Climate Risk Framework. climate-related measures including remuneration policy across the Group. The progress towards our new Sustainable and RemCo has responsibility for aligning Board Audit Committee (BAC) Transition Financing target, reducing GHG Executive Director remuneration with The BAC assesses the integrity of the emissions associated with our operations strategic priorities, including in relation to Group’s financial statements and and supply chain, as well as delivering the climate and sustainability matters. The evaluates the effectiveness of the Group’s ambition to be a net zero bank by 2050. performance measures for the 2023 internal controls. The BAC provides oversight of the Group’s climate and sustainability disclosures, and supported the integration of the 2022 TCFD disclosures into the 2022 Annual Report. The impact of climate change on the Group’s financial statements continues to not be material at this time, but this is an area that the BAC will continue to monitor. Spotlight • considering updates on Climate risk üapproved the form of resolution Climate through the reports of the Chair of to be put to shareholders at the Barclays’ climate strategy and ambition the BRC 2022 AGM seeking is set by the Board which oversees its endorsement of Barclays’ • reviewing updates on amendments implementation by management. The climate strategy, targets and to climate policies and targets, Board remained focused on climate in progress including our oil sands and thermal 2022, and key activities of the Board in coal policies üendorsed management’s relation to climate included: proposal for new or updated • considering climate-related data • delivering on Barclays' commitment climate policies and targets. and reporting, and discussing areas to offer shareholders a ‘Say on in which the Group could make Climate’ advisory vote at the 2022 You can read more about our 'Say on + Climate' advisory vote in our Section further progress in its strategic AGM 172 statement in the Strategic Report climate leadership ambition. on page 19. • engaging with our private shareholder Your can read more about Barclays’ Key decisions: base at the 2022 AGM on Barclays’ updated policies and targets in the climate strategy and targets, and Climate and Sustainability report. üreaffirmed Barclays’ desire to considering feedback received maintain a leading position on the following the 'Say on Climate' advisory climate agenda and supported vote passed at the AGM broader engagement with shareholders on climate matters • ongoing engagement with institutional investors and üapproved the Group’s Task Force shareholder representative groups on Climate-related Financial regarding Barclays’ climate strategy Disclosures Report for 2021 and targets

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 250 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Group ExCo was regularly updated on the • physical and transition risk metrics, Management's role in assessing scope, approach and engagement relating including portfolio alignment progress and managing climate-related to the 'Say on Climate' advisory resolution against net zero sector targets risks and opportunities that was put to our shareholders at the • an overview of credible potential third- Oversight and management of climate AGM in May 2022. party scenarios in addition to Network strategy is increasingly embedded in Capturing the opportunity as we transition for Greening the Financial System business-as-usual management towards a low-carbon economy was (NGFS) structures, including a number of identified as a key strategic growth pillar for • the Climate Risk Framework and Climate executive committees. These committees Barclays in 2022. As a result, Group ExCo Risk Appetite constraint. are mandated and form part of Barclays’ was provided with updates on the global formal governance architecture. They are In relation to Principal Risks, the Group Risk market opportunity for sustainable convened to oversee a specific attribute of Committee undertakes the following: financing with a focus on the next 10 years. the Barclays control framework. Each This work informed the setting of a $1tn • review and monitor the risk profile of committee is itself governed by Terms of Sustainable and Transition Financing material nature for each Principal Risk Reference that lay out the duties, target by the end of 2030, an increase of decision-making authority and escalation • approve for consideration by Barclays our Sustainable Impact Capital target to route of any material issues. PLC Board and BBPLC Board Risk £500m by the end of 2027, and the Committee the Risk Appetite The executive management committees appointment of new Heads of Sustainable Statement for each Principal Risk receive regular briefings on matters Finance in both the Corporate and including climate change. Both risks and • annually review and approve the Investment Bank and Barclays UK. opportunities are considered by Principal Risk Framework for All submissions to the Barclays Group management. Climate-related risks are consideration by the Barclays PLC Board Board on Climate Strategy and climate- assessed and escalated as appropriate and BBPLC Board Risk Committee. related matters are reviewed either by through the various risk forums, and in The Group Risk Committee receives Group ExCo or the relevant Group ExCo 2022 the Barclays Climate and Sustainable escalations from the Climate Risk member in advance. Finance Council was established as a Committee, noting none were received in The Group Head of Sustainability also dedicated forum to identify and discuss 2022. served as an ex-officio member of Group climate-related opportunities across the Climate Risk Committee (CRC) ExCo for Q1 of this year, recognising the Group. importance of climate and sustainability to To support the oversight of Barclays Group Executive Committee the group. Group climate risk profile, a Climate Risk (Group ExCo) Committee (CRC) has been established, as Executive Director annual bonus and Long Throughout 2022 Group ExCo has been a sub-committee of the GRC. The Term Incentive Plan (LTIP) outcomes are provided with regular updates on our authority of the CRC is delegated by the assessed against a framework of climate strategy, including progress on our GRC. The CRC is chaired by the Head of measures set by the Remuneration commitments, stakeholder engagement Climate Risk. CRC has reviewed and Committee at the start of the and expectations, and target-setting. The approved a range of updates including a performance period for each award. A Group Head of PPCR is a member of refreshed Climate Risk Vision, updates proportion of both bonus and LTIP is Group ExCo and is accountable for from each of the financial and operational driven by non-financial performance ensuring the Group’s societal purpose is risks and from the material legal entities of measures, including measures relating to present in strategic decision-making at the the firm, along with key regulatory, policy climate and sustainability. For the annual highest levels in the organisation. The and legal themes, the risk register and 2023 bonus and 2023-2025 LTIP awards, Group Head of PPCR, and their team, appetite statement, and reviewed the 10% of the overall outcome for each will be regularly updates Group ExCo on a range control environment. determined by performance against of Public Policy and Corporate climate and sustainability measures, Climate Risk Control Forum (CRCF) Responsibility matters, covering key reflecting our ambition to be a net zero government and regulatory policy, The CRCF was established in July 2022 and bank by 2050, including our commitment regulator engagement and ESG matters, escalates to the GRC via the Group to align our financing with the goals and including climate. These updates include Controls Committee. The purpose of the timelines of the Paris Climate Agreement. information about key industry trends and CRCF is to oversee the consistent and events, such as Barclays' involvement in Further details can be found in our Remuneration effective implementation and operation of + report from page 197 the Net Zero Delivery Summit and the the Barclays Controls Framework in Sustainable Markets Initiative as well as the relation to Climate Risk. It reviews the Group Risk Committee (GRC) evolving regulatory focus on climate control environment, including risk events, The GRC is the designated forum to review change across different jurisdictions. The policy and issues management. and recommend, where necessary, Chief Risk Officer is a member of Group Climate Transaction Review Committee submissions to the BRC. The GRC is the ExCo and is accountable for the approach (CTRC) most senior risk executive body, and it to managing climate-related financial and The CTRC is composed of members of monitors Principal Risks and key topics of operational risks to Barclays; this is Group ExCo and escalates directly to the material nature to Barclays, such as implemented within the Group's Enterprise Group CEO. The key function of the CTRC climate change. In 2022, the GRC Risk Management Framework (ERMF). is to consider the reputation risks reviewed: associated with certain transactions and • key regulatory, global policy and clients with reference to our stated geopolitical themes and management position on climate that could prevent action proposed and taken Barclays from progressing its commitment

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 251 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) to align our financing portfolio with the management statements, preliminary is the Group Head of Sustainability, also goals and timelines of the Paris Agreement announcements (if prepared), and any the chair of its governance body (Climate Portfolio Governance Board), represented and/or present significant reputation risk. other formal announcements relating to the Group’s financial performance. by key businesses and functions across Operational Sustainability Steering the Group, such as Sustainability & ESG, Committee • narrative reporting: to review and Risk, Business (Corporate and Investment monitor the integrity of the Group’s Barclays’ Operational Sustainability Bank and Barclays UK), Finance and narrative statements, including but not Steering Committee (OSSCo) is Technology. limited to the Country Snapshot, ESG responsible for the development and disclosures, the TCFD disclosures and Key focus areas of the programme since implementation of the Bank’s operational the Modern Slavery Statement. its inception include setting targets for sustainability strategy, including its carbon some of our highest emitting sectors, reduction plan and pillar one of the net Legal & Technical Committee establishing Climate risk as a new Principal zero bank ambition. The Legal & Technical Review Committee Risk (as part of the Enterprise Risk OSSCo is chaired by BX Risk & Finance (L&T) is an accounting, legal and Management Framework), embedding COO and comprises leadership from regulatory compliance committee. L&T required processes and frameworks within Corporate Real Estate Solutions (CRES) submits its findings and recommendations the business to implement and manage and Location Strategy, Barclays UK COO, concerning the legal and technical status sector targets, evaluating absolute CIB and BBPLC COO, Group HR, of the documents to DisCom. emissions across the in scope balance Procurement and Sourcing, Group CIO/ sheet, and delivering to a technology L&T’s activities cover: GTIS, Corporate Communications, roadmap to meet climate data • review of compliance with UK and Climate risk, Sustainability & ESG, CFO BX, requirements. relevant non-UK legislation, accounting ESG Legal Counsel. OSSCo reviews and Group Chief Executive Officer (Group and regulatory rules, guidance and best approves environmental operational CEO) practice targets, shares and reviews operational The Group CEO is responsible for driving sustainability programmes and third-party • review of the external financial reporting solutions and identifies and mitigates risks Barclays’ focus on external societal and documents as relevant to satisfy itself to the delivery of the operational climate environmental stewardship, and that disclosures are materially fair and strategy, among other activities that overseeing progress towards Barclays’ not misleading ensure coordination and alignment across ambition to be a net zero bank by 2050. • identification of potential areas of The Group CEO is Chair of Group ExCo. the strategic groups responsible for challenge for divisional CFOs and points implementing the operational net zero The Group CEO is closely involved in for consideration for the members of strategy. identifying, accelerating and promoting the the DisCom. As the Chairman of the OSSCo provides updates to Barclays PLC development of Barclays’ climate and Disclosure Committee, the Barclays Board twice a year and provides quarterly sustainable finance growth opportunities Finance Director would also be performance updates to the group change as we transition towards a low-carbon appraised of these matters programme on climate. Also, key material economy. In January 2022 the Group CEO • liaison with the Group’s Auditors and projects that entail Board approval are first established Barclays’ Climate and external legal advisers to monitor approved by OSSCo and then presented Sustainable Finance Council to catalyse compliance with IFRS and SEC reporting to the Board by the accountable Function’s sustainable finance developments for our requirements. COO Executive Committee. For example, customers and clients across all our net zero operations real estate related businesses, products and services. Reputation Risk Committee projects will be presented by the Group The Reputation Risk Committee is a sub- During 2022, the Group CEO joined a Real Estate SteerCo (GRESCo). committee of the Group ExCo which Additionally, reports on progress are number of global initiatives advocating for submitted to GRESCo monthly and COO manages material reputation risks and a just transition towards a low-carbon issues as they are brought to the attention economy. The Group CEO is an active Executive Committee biannually. of the Committee via relevant reputation member of the Sustainable Markets Disclosure Committee (DisCom) risk assessment and escalation processes. Initiative (SMI), and attended the SMI CEO The DisCom, which is chaired by the Group Summit in October 2022. Barclays is a Group Change Programme on Climate Finance Director, has been set up as a sub- member of the United Nations The group change programme on climate committee of the Group ExCo. DisCom is Environment Programme Finance Initiative (“the programme”) is focused on driving convened to review and monitor the (UNEP FI), where the Group CEO has the execution of one of the three pillars of integrity of the Group’s financial and recently joined the UNEP FI Leadership our Group Climate Strategy, ‘Reducing our narrative statements and other Council (November 2022). Financed Emissions’, within which Barclays information provided to stakeholders, Chief Risk Officer (CRO) is committed to aligning its financing with whether by means of announcement or the goals and timelines of the Paris The Group CRO is accountable for the otherwise. In addition to reporting to the Agreement, consistent with scenarios approach to managing climate-related Executive Committee, DisCom also limiting the increase in global financial and operational risks to Barclays. reports to the Barclays PLC Board Audit temperatures to 1.5°C. The programme is This encompasses the measurement, Committee. set up in line with the Barclays Change monitoring and limit setting for Climate risk DisCom is convened to undertake a Delivery Management standard, with and the supporting governance. number of specific duties, including: established governance and regular • financial reporting: to review and reporting and oversight at the Group’s monitor the integrity of the Group’s Mission Critical Forum. The overall financial statements, interim Accountable Executive of the programme

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 252 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Group Head of PPCR include embedding climate-related risks entity. Other governance bodies/ forums and opportunities into financial planning. typically operate across the Group and The Group Head of PPCR leads the bank’s oversee climate-related issues, risks and overall sustainability and citizenship Global Head of Sustainable Finance - opportunities within their remit and agendas. Specifically, the role is Corporate & Investment Bank escalate material issues as appropriate. responsible for leading Barclays’ efforts in The Global Head of Sustainable Finance for These committees and forums follow the tackling climate change, and for integrating the Corporate and Investment Bank (CIB) established escalation process for our ambition and commitments to help is a member of the CIB Management climate-related items, bringing updates embed the transition towards a low- Team, reporting to the Global Head of the first to the relevant Group ExCo member, carbon economy into the business. Corporate and Investment Bank and the then the Group ExCo, and ultimately to the Group Head of Public Policy and Corporate Group Head of Sustainability Board. Responsibility. The role was created in The Group Head of Sustainability leads the 2022 to develop a centre of excellence for Implementation - business Sustainability and ESG team, and the sustainable finance to support Barclays’ working level committees, strategic direction and execution of clients navigate the opportunities and forums and reports Barclays’ policies and practices across a challenges of transitioning towards a low- broad range of sustainability and ESG Principal Investments Equity Committee carbon economy. Barclays has a target to matters, including climate change. The role The Principal Investments Equity facilitate $1tn of Sustainable and also oversees the development of Committee (the “Committee”) undertakes Transition Financing by the end of 2030. standards and metrics to advance green the senior approval responsibilities relating The Group Head of Sustainable Finance and sustainable finance and to steward to the execution and management of all for CIB is also a member of the Barclays early innovation in sustainable product and principal strategic equity and workout Sustainable Impact Capital portfolio service development. equity transactions managed on behalf of Investment Committee, which is investing This role is responsible for Reputation risk Barclays PLC and all other Barclays Group up to £500m in sustainability-focused issues arising from climate change, entities. The formation and authority of start-ups by 2027. The role partners although the Board has overall this Committee comes from the Group closely with Barclays’ Sustainability and responsibility for reputation matters CEO, acting through the Group Executive ESG teams on our Net Zero targets and generally. The Group Head of Sustainability Committee. The Committee consists of environmental and social risk management reports directly to the Group Head of senior stakeholders that meet on a regular and with the Head of Sustainable Finance PPCR. basis which, when considering the in Barclays UK to deliver change across the ‘Sustainable Impact Capital’ portfolio, Group Head of Climate Risk firm. includes the Global Head of Sustainable The Head of Climate Risk was appointed in Head of Sustainable Finance - Barclays Finance and Group Head of Sustainability July 2020 and is the Principal Risk Lead for UK for CIB. Climate Risk. Being the Head of the The role of Barclays UK Head of Climate and Sustainable Finance Council Climate risk team, the role encompasses Sustainable Finance was created in 2022 the development of Climate risk The Climate and Sustainable Finance with responsibility for the strategic governance, including ownership of the Council (C&SFC), created by the Group direction and execution of the Barclays UK Group’s Climate Risk Framework, and CEO in 2022, is a forum of senior sustainability strategy. The role oversees making recommendations on risk appetite, stakeholders that meet monthly. The the development and delivery of Barclays constraints and exclusions to BRC, C&SFC aims to identify, accelerate and UK products and propositions to enable informed by Barclays’ net zero ambition. promote the development of Barclays’ our retail and small business customers to Further responsibilities include leading the climate and sustainable finance growth adopt more sustainable practices – development of Climate risk opportunities for the benefit of our covering finance, tools, education and methodologies and our approach to customers and clients across all our partnerships. The role also partners closely carbon modelling, including the businesses, products and services. The with the Barclays UK Government BlueTrack™ model. The Head of Climate C&SFC is not a decision-making body and Relations team to develop advocacy Risk reports directly to the Group CRO, sits outside of the formal executive positions, as well as Legal, Risk and and is the Chair of CRC. governance structure; it does, however, Compliance functions to embed provide guidance, encouragement and Group Head of Finance - Sustainability sustainability into processes and challenge to internal stakeholders on and ESG frameworks. The Head of Sustainable climate and sustainable financing solutions Finance is a member of the Barclays UK The Group Head of Finance - Sustainability and related activities across the Group. ExCo. and ESG was appointed in January 2022. The role encompasses leading Barclays Business / Legal Entity committees / global external, internal and regulatory forums reporting capabilities relating to Oversight and management of climate- sustainability and ESG, and tracking related risks and opportunities occur at a progress made across our businesses to number of levels in the organisation and meet our climate targets, which is across business lines and legal entities. fundamental to support our ambitions. Barclays operates through a combination This includes embedding climate-related of formal mandated committees and disclosures such as the TCFD into our governance bodies/forums. The framework of disclosure procedures, mandated committee structure operates governance and controls supporting the on a legal entity basis and will oversee approval of the Group’s financial climate-related issues relevant to that statements. Further responsibilities

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 253 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Managing impacts in lending and financing Appropriate management of environmental and social impacts helps to ensure the longevity of our business and our ability to serve our clients. At Barclays, we recognise the importance Enhanced Due Diligence Escalation and decision of risk identification and management in Our standards include an enhanced due Where client relationships or transactions the provision of financial services to our diligence approach for certain clients are assessed as higher-risk (high or customers and clients. operating in energy sub-sectors covered medium ESI risk rating) or outside appetite Our assessment of environmental and by our Climate Change Statement (in the case of Defence and Security) social risks informs our wholesale credit (thermal coal mining, coal-fired power following an enhanced due diligence risk management and helps safeguard our generation, mountain-top coal removal, oil review, they are then considered for reputation. This supports the longevity of sands, Arctic oil and gas projects and escalation to the appropriate business unit our business and also enhances our ability hydraulic fracturing ('fracking')) and clients review committee (e.g. Transaction to serve our clients and support them in in-scope of our Forestry and Agricultural Review Committee) or for clients in scope improving their own sustainability practices Commodities, World Heritage and Ramsar of our Climate Change standard, the and disclosures. Wetlands and Defence and Security Climate Transaction Review Committee standards where a similar approach is (CTRC) for consideration and a decision on Managing environmental and whether to proceed if transaction related. taken. social risks Business unit review committees comprise All in-scope clients in these sub-sectors Environmental and social risks are Business management and must be assessed annually via a detailed governed and managed through our representatives from the control due diligence questionnaire, which is used Enterprise Risk Management Framework functions, including Reputation risk, to evaluate their performance on a range (ERMF), setting our strategic approach for whereas the CTRC includes of environmental and social issues, and risk management by defining standards, representation from the Group Executive may be supplemented by a review of client objectives and responsibilities for all areas Committee. policies / procedures, further client of Barclays. The ERMF is complemented engagement and adverse media checks as Should the front office business team, the by a number of other frameworks, policies appropriate. This annual review either Sustainability and ESG team and / or and standards, all of which are aligned to Climate risk team believe the issues are generates an Environmental and Social individual Principal Risks. Impact (ESI) risk rating (low, medium, high), sufficiently material, these clients/ Our Climate Change Statement sets out or in the case of Defence and Security an relationships would be escalated to the our approach in relation to our climate assessment against risk appetite, which in Group Reputation Risk Committee for change ambition and to managing the turn determines whether further review more senior consideration and decision. impact of our climate-related activities, and client engagement may be required GRRC also includes representation from including setting restrictive policies in throughout the year. the Group Executive Committee. These respect of certain sensitive energy sub- Typically, high and certain medium ESI Committees may make the following sectors (thermal coal mining, coal-fired rated clients require further risk determinations: power generation, mountain-top coal assessment prior to execution of • approve the transaction or relationship removal, oil sands, Arctic oil and gas and transactions with those clients. hydraulic fracturing ('fracking'). • reject the transaction or relationship We undertook 869 reviews in 2022, being a We have also established positions on combination of annual due diligence • approve the transaction or relationship, Forestry and Agricultural Commodities, reviews and individual transaction reviews, subject to prescribed modifications World Heritage and Ramsar Wetlands and slightly fewer than the 903 we undertook in in the Defence and Security sector. • escalate the review of the transaction or 2021. The number of reviews for 2022 relationship to the Barclays Group CEO. In addition, we have developed internal reflects the maturity of the due diligence standards for each of these which reflects process and a reduction of out of scope Monitoring these positions in more detail. These referrals. As part of our management of standards, which sit under the environmental and social risks, we may management of Reputation risk in the require further client engagement in ERMF, determine our approach to climate relation to the specific environmental and change and relevant sensitive sectors and social risks that we have identified as part are considered as part of our existing of our enhanced due diligence process. We transaction origination, review and have used this engagement as an approval process. opportunity to gain a more detailed understanding of the risks and challenges that the client is facing and to better understand any climate transition plan that they may have.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 254 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Environmental credit risks Environmental risk identification Equator Principles in Barclays UK Environmental risk is regarded as a credit For project-related finance, we apply our risk driver, and is considered within our Environmental Risk standard, which Our property and land valuers can use our credit risk assessment process. The implements the Equator Principles and environmental screening product, Barclays Environmental Risk team is responsible for relevant International Finance Corporation SiteGuard, to assess the history of a piece advising on the environmental and (IFC) Performance Standards. Barclays was of land and the operational implications of climate-related credit risks to Barclays one of the four banks which collaborated in a site’s current or intended commercial associated with particular transactions. developing the Principles, ahead of their use. In 2022, 386 (2021: 891) commercial Environmental risks in credit are governed launch in 2003. properties were screened using a Barclays under the Client Assessment and SiteGuard Report, with 155 cases in the During 2022, 1 of the 869 (2021: 3 of 903) Aggregation, Environmental Risk and waste sector referred (2021: 256 cases). transactions reviewed for social and Nuclear Industry Risk standards. These The difference in the number of referrals environmental risks was captured in the standards are part of the overall ERMF. made in 2022 reflect enhancements made scope of the Equator Principles. to our assessment process. In 2022, 361 (2021: 417) Environmental Our Environmental risk standard is risk reviews were referred to the Further details can be found in our Environmental risk supported by a toolkit for employees + in lending statement at: home.barclays/citizenship/ Environmental risk team across comprising a range of practical guidance the-way-we-do-business/environmental-risks-in- transaction originations and annual review lending/ documents. cycles. The lower number of transaction Further details can be found at: Training reviews compared with last years's reflects + equator-principles.com/ increased awareness of environmental To support Climate risk becoming a risks across the Credit risk function. Principal risk from January 2022, Equator Principles transactions 2022 mandatory training was completed by over Transactions and client relationships Category 14,600 colleagues in selected teams subject to social and environmental risk Sector A B C across Risk, Compliance, Internal Audit, review Markets Post Trade and the Business Mining n Agriculture Bank. The training provided an overview of 25 26 Infrastructure physical and transition risks to enable n Business and 11 14 professional colleagues to identify, assess and manage Oil & Gas services Climate risk. n Chemicals 1 Power 167 202 Sustainability and ESG training with detail n Commodity traders Others on our policies and approach to certain n Construction Region A B C sensitive sub-sectors was delivered to 31 24 and 12,200 colleagues in selected teams engineering Americas across the Corporate and Investment n Defence, aerospace and 1 EMEA Bank, Trade and Working Capital, 170 security Wholesale Onboarding and Group FCO, APAC n Infrastructure 236 Finance and Public Policy and Corporate and Country designation A B C transportation Responsibility. 53 n Manufacturing 1 Designated Further details can be found on page 118 22 n Metals and + 31 Non-designated mining 70 n Oil and gas Independent review A B C 24 n Paper and 1 30 Yes forestry n Power and No utilities 287 Finance type A B C n Waste 215 1 Project finance n Other Category A: Projects with potentially significant adverse social 6 4 or environmental impacts that are diverse, irreversible or 13 unprecedented. 12 36 14 35 Category B: Projects with potentially limited adverse social and 14 environmental impacts that are few in number, generally site- specific, largely reversible and readily addressed through 2022 2021 mitigation measures. Total 869 Total 903 Category C: Projects with minimal or no social or environmental impacts. Country Designation is based on the World Bank's income criteria. Projects in designated countries (High Income OECD members) are assessed only according to local laws. Projects in 'non-designated' countries are assessed according to local laws and the IFC's standards.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 255 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) ensure we are respecting human rights in Further details on Barclays Supplier Control Deforestation and agricultural + Obligations can be found at: home.barclays/who-we- our own operations through our commodities are/our-suppliers/our-requirements-of-external- employment policies, in our screening and suppliers/external-supplier-control-obligations/ Barclays recognises that deforestation is a engagement within our supply chain and The TPCoC makes specific reference to key driver of climate change and through the responsible provision of our the International Labour Orgnization (ILO) biodiversity loss and is frequently linked products and services. Core Conventions and the UK Modern with significant adverse human rights We have continued to progress our efforts Slavery Act 2015 and is owned by Barclays’ impacts. We are a signatory to the New to identify salient human rights risks Chief Procurement Officer. It outlines the York Declaration on Forests and its associated with our client financing behaviours we encourage in our supply objectives of ending deforestation by portfolio and on our plan to review our chain and seeks to align the practices of 2030. We seek to support clients that approach to managing these risks. our suppliers with our own policies. This promote sustainable land management includes on issues such as freely chosen We seek to proactively monitor issues and practices while respecting the rights of employment (work that is completed developments globally that may present workers and local communities. voluntarily and without slavery, servitude, new or elevated human rights risks and A major cause of deforestation is the forced or compulsory labour and human work to investigate our potential exposure production of agricultural commodities trafficking) and practices, the absence of to these and consider our responsibilities such as timber products, palm oil and soy, which could lead to exploitation in any to seek to mitigate these risks. for which we have established a position complex global supply chain, such as lack Our position statements and related due statement and due diligence approach of access to an independent diligence approach for clients operating in that applies to clients involved in these whistleblowing process and grievance certain sectors with elevated activities. Our approach is outlined in our mechanism. environmental and social impacts, seek to Forestry and Agricultural Commodities In 2022, we incorporated new contract include consideration of human rights Statement and includes specific clauses focusing on modern slavery into impacts. For example, we include specific requirements for clients in these sectors, our standard supplier terms and due diligence questions around respect for such as requiring that they: conditions, which will apply to new Indigenous Peoples’ rights, health and • prohibit the conversion or degradation contracts and contract renewals moving safety and provision of security in our due of primary forests, High Conservation forward. Specifically, these clauses diligence questionnaires for clients in Value (HCV) and High Carbon Stock prohibit suppliers from using forced, energy sub-sectors such as fracking and (HCS) areas and peatlands bonded or involuntary prison labour, oil sands which are covered under our human trafficking, child labour or modern Climate Change Statement. • adhere to recognised certification slavery practices, which include practices schemes, such as the Forest Modern slavery in our supply such as the retention of personal Stewardship Council (FSC), Roundtable chain identification or immigration on Sustainable Palm Oil (RSPO) or documentation and denying individuals the We recognise that the nature of our Round Table on Responsible Soy freedom to leave their employment. Our business means we may be exposed to Association (RTRS) contract negotiators are being supported modern slavery risks across our by a dedicated in-house expert advisor operations, supply chain, and customer • work to obtain the consent of during implementation of these new and client relationships. We are conscious indigenous and local communities terms. of the links between human rights abuse, affected by their operations through a labour exploitation, human trafficking and credible, 'free, prior and informed We continue to include modern slavery environmentally destructive practices. consent' process. and sustainability-related considerations Therefore, we are focusing our efforts on during the sourcing processes for key We have established a detailed due the delivery of actions specifically designed products or services in categories diligence questionnaire which we require to seek to identify and try to address identified as presenting with an elevated these clients to complete on an annual modern slavery and other exploitative inherent risk of modern slavery, such as basis to assess their alignment with the practices in our supply chain, in the renewal of our major IT services requirements of the Forestry and collaboration with our environmental contract, purchase of large IT hardware Agricultural Commodities Statement and experts. and printing solutions. other environmental and social criteria and Regardless of the industry or geography in We aim to work with the service providers seek to evaluate whether they are which our suppliers operate, we require of that make up 70% of our Addressable appropriately managing their material b them to comply with applicable laws and Spend to encourage them to have a environmental and social impacts. We regulations. Barclays' standard approach Modern Slavery policy or standard in place intend to update the Forestry and to new supplier onboarding and renewal by 2025. We continue to track our Agricultural Commodities Statement and begins by assessing the services that are progress in line with this target. client due diligence questionnaire in Q2 being provided and ascertaining the level 2023. Further details on our Forestry and Agricultural of risk. Suppliers that are assessed as + Commodities Statement and Barclays Group Human rights Statement on Modern Slavery can be found at: being at a heightened risk of exposure home.barclays/sustainability/esg-resource-hub/ from a business risk perspective are Barclays is committed to operating in reporting-and-disclosures/ subject to Barclays' Supplier Control accordance with the International Bill of Notes Obligations. Assessment of suppliers a We do have relationships with financial institutions and market Human Rights and takes account of other counterparties which, because of the nature of the services against these controls may include, but is internationally accepted human rights being provided (such as international account holding services), not limited to, reviewing copies of standards and frameworks, including the are not subject to our usual supplier on-boarding procedures and which are therefore not subject to the TPCoC. employment and health and safety policies UN Guiding Principles on Business and b Addressable Spend is defined as external costs incurred by and requesting suppliers to attest to Human Rights (UNGPs) and the OECD Barclays in the normal course of business where Barclays has supporting our expectations defined in the influence over where the spend is placed. It excludes costs Guidelines for Multinational Enterprises a such as regulatory fines or charges, exchange fees, taxation, Third Party Code of Conduct (TPCoC). (OECD Guidelines). We take steps to employee expenses or litigation costs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 256 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) The Barclays Way The Barclays Way is our Code of Conduct. Together with more formal policies and practices, this provides a clear path towards achieving a positive and dynamic culture within the Group. Our commitment to being a responsible The Barclays Way was launched in 2013, The Barclays Way also includes advice and business includes seeking to ensure that: replacing a number of existing codes of guidance on speaking up and raising conduct with a single document. Endorsed concerns. It is important for the success of • we conduct ourselves in line with The by our Chairman, it governs our way of Barclays, and for the safety and wellbeing Barclays Way, our Code of Conduct, to working across our business globally and of our customers, clients and colleagues, create the best possible working constitutes a reference point covering all that we encourage a culture that supports environment for our colleagues aspects of colleagues’ working speaking up when things aren’t as they • we treat our customers fairly and the relationships, specifically but not should be. All colleagues are required to products and services we deliver are exclusively with other Barclays employees, undertake training on The Barclays Way. transparent and responsible customers and clients, governments, We know that our success over the long • we operate in line with relevant laws and regulators, business partners, suppliers, term is based not just on how well we run regulations including those applicable to competitors and the broader community. the organisation commercially, but also on financial crime It is aligned to the Code of Professional how well we manage it to protect the • we safeguard the data that has been Conduct, published by the Chartered environment, support positive social entrusted to us. Banker Professional Standards Board, progress and make responsible, well- which sets out the ethical and professional governed decisions. We are focused on Our Code of Conduct reflects the trust attitudes and behaviours expected of the areas where we can have the greatest that millions of people place in us every bankers. Barclays subscribes to this code long-term impact: making growth ‘green’, day. We know that trust is earned by and is committed to embedding its broad sustainable and inclusive; managing the repeatedly doing the right thing. We principles into our business. environmental and social impacts of our believe the best way to build that trust is to business; running a responsible business; invest in our culture and support our The Barclays Way includes information and and investing in our communities. people in the choices they make every day, guidance on how employees are expected with guidance and policies that help them to behave and take personal accountability Employee survey results do this. for making decisions. We apply a range of % criteria, over and above financial That starts with our Purpose, Values and considerations, aimed at building a "I believe that my team and I do a good job Mindset, and is locked into our of role modelling the Values every day" sustainable, strong and profitable business organisation through The Barclays Way, for the long term and adding value to our the touchstone for everyone in Barclays on 2022 92 business relationships and the broader the standard of conduct we expect, setting communities in which we live and work. We an unequivocal tone from the top about 2021 92 provide guidance across all key who we are and what we stand for. stakeholder groups, including servicing our % of colleagues completing mandatory customers and clients, promoting respect, training on The Barclays Way diversity and performance in the workplace and maintaining strong governance, In challenging times such robust controls and strict ethical 99% standards. as these, it is more The Barclays Way Code of Conduct is available at: + home.barclays/citizenship/the-way-we-do-business/ important than ever that code-of-conduct/ we conduct ourselves in the right way. The Barclays Way sets out the standards of behaviour we should all aspire to in our professional lives. It is a guiding light for everyone in Barclays, helping us to make the right decisions every day.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 257 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Whistleblowing We want to continue to foster a culture where our colleagues feel safe to speak up. Barclays is committed to providing a Other issues were identified in a further They have responsibility for ensuring and respectful and inclusive environment to 25% of whistleblowing concerns. 66 overseeing the integrity, independence work in and colleagues are encouraged to actions were defined to address issues and effectiveness of Barclays’ speak up about actions and behaviours identified during the course of whistleblowing programme across their that have no place in the organisation. whistleblowing investigations. These respective entities. Their oversight is Individuals are encouraged to speak up primarily included recommendations to supported by periodic impartial reviews of directly to their management, Compliance, enhance processes and procedures. the end-to-end whistleblowing process. HR or Legal. However, where they do not Barclays also works with Protect, the UK The Chair of the Group Board Audit feel comfortable using these avenues, the Whistleblowing Charity. Committee is the Group Whistleblowers’ Raising Concerns process is in place. 83% Champion and the Chair of the Barclays of global respondents of the 2022 Your Bank UK PLC (BBUKPLC) Board Audit View survey said it was 'safe to speak up'. Committee is the BBUKPLC The Raising Concerns team will carefully Whistleblowers’ Champion. assess the concerns raised and refer them to the most appropriate team for review and, where appropriate, investigation. All concerns are taken seriously and managed sensitively and confidentially. Details about the Raising Concerns reporting channels are available both internally and externally. Whistleblowing cases closed by region Whistleblowing is a core element of Raising Concerns at Barclays and any concerns assessed as whistleblowing will be directed to a dedicated team within Compliance. Whistleblowing relates to concerns which fall within the wider public interest, such as a breach of our policies and procedures; breaches of law and regulation; and behaviour that harms or is likely to harm the reputation or financial wellbeing of the Group. All whistleblowing reports are taken seriously, and controls are in place to protect whistleblowers’ identities and confidentiality. Barclays has a zero-tolerance approach to 72 retaliation against any whistleblower or any Cases closed individual who has provided information as in 2022 part of an investigation. Any confirmed instances of retaliation will be dealt with extremely seriously and may result in Whistleblowing cases opened by (top 4) categories disciplinary action, including dismissal. Annual mandatory training is delivered to 6 4 C a s e 1. Breach of controls, s o p e 15 n e d colleagues regarding the whistleblowing i process or other n 2 0 2 2 programme. 2. Retaliation 13 In 2022, the whistleblowing team opened a total of 52 whistleblowing concerns, down 3. Breach of policy 11 61% from the year before (2021: 134), including 13 retaliation concerns. The fall in 4. Financial crime 5 concerns is attributed to a number of factors, including the impact of the 5. Other 8 pandemic. 72 whistleblowing matters were closed in 2022, of which 15% were found to have some level of substantiation. None of the retaliation concerns closed in 2022 were substantiated.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 258 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Tax Barclays supports a fair and transparent tax system. Barclays was ranked as the fifth-largest UK taxpayer; in terms of taxes paid, in the December 2022 PwC Total Tax Contribution survey of the One Hundred Group. Barclays has a responsible approach to tax, Key highlights on our approach to Approach to tax tax include: strong governance and risk management Barclays’ Purpose is to deploy finance over tax risk and is committed to • we follow clear Tax Principles that we responsibly to support people and transparency around tax. have published. These allow us to businesses, acting with empathy and balance the needs of all our For further details, see our Country Snapshot Report integrity, championing innovation and + at: home.barclays/annualreport stakeholders and make clear that tax sustainability, for the common good and planning must support genuine the long term. Our approach to taxation, commercial activity, Taxes paid globally also known as our tax strategy, is aligned • as a result of this approach, transactions with this Purpose as well as our Values of which artificially transfer profits into a Respect, Integrity, Service, Excellence and low tax jurisdiction would not be £2,255m Stewardship. consistent with our Tax Principles, Our approach to tax has three core Taxes paid globally • we seek to comply with the spirit as well objectives: £m as the letter of the law and we take • responsible approach to tax, account of established practice in the Corporation tax and n 74 • effective interaction with tax authorities territories in which we operate. We are 202 withholding taxes and transparent in both the disclosure of our 688 Employer payroll taxes n tax affairs to tax authorities as well as Irrecoverable VAT • transparency in relation to our tax n 590 our tax reporting to other stakeholders; affairs. Bank levy n and Other taxes including n We manage our tax affairs in accordance business rates • we aim to comply with all of our tax with our Tax Principles, Tax Code of 701 2021 taxes paid globally obligations in the territories in which we £2,781m Conduct and HMRC’s Code of Practice on operate and where there is uncertainty Taxation for Banks and aim to file our Tax contribution we may seek external tax advice in order returns on time and pay the correct to help ensure our tax filings are We continue to make substantial tax amount of tax. We are committed to only appropriate. contributions across the jurisdictions in dealing with customer or client assets that which we operate, both in terms of taxes have been appropriately declared to the paid and taxes collected. Our total tax relevant tax authority. contribution for 2022 was £5,572m. This We are committed to being a leader in tax includes taxes paid of £2,255m which transparency. We have published details of represent a cost to us, and taxes collected the taxes we pay by country and our on behalf of governments of £3,317m. approach to tax since 2013, and have Barclays was ranked as the fifth-largest UK chosen to expand external publications taxpayer, in terms of taxes paid, in the such as the Country Snapshot. We make most recent PwC Total Tax Contribution clear disclosures to tax authorities. survey of the One Hundred Group (‘100 Our Country Snapshot is publicly available Group’). The 100 Group represents and sets out our approach to tax in detail, members of the FTSE 100 along with including our Tax Principles. Our Country several large UK private companies. Over Snapshot, including our UK tax strategy is the last decade, we have consistently been reviewed and approved annually by the ranked as one of the top five largest UK Barclays PLC Board Audit Committee. taxpayers, paying over £14bn of taxes in the UK alone.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 259 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) • our tax department comprises • our dealings with tax authorities are Tax governance, control and appropriately qualified in-house handled proactively, constructively and risk management transparently, in real-time where professionals who are subject to clear As a Globally Systemically Important Bank, standards including that they uphold our possible, our Group-wide risk and governance Tax Principles and follow our tax code of • we recognise that early resolution of our procedures are subject to continuous conduct, which is an integral part of how tax affairs is in everyone’s interest. We review and scrutiny. More details on our we operate, have ongoing engagement with tax approach to tax governance, control and authorities to discuss their inquiries and • our governance requires that suitably risk management can be found in our qualified people are involved in decisions material issues in relation to our tax Country Snapshot, the key highlights of related to tax, tax is fully taken into affairs, and we respond to feedback which include: account when making business from tax authorities, • our Board has ultimate responsibility for decisions and tax risk is identified, • where we face significant uncertainty in tax matters and the Board Audit assessed and kept under review, and relation to the application of tax law, we Committee oversees our approach • we have no tolerance for tax evasion and may seek to agree with the tax authority to tax, have well-established mechanisms for how the tax law should apply, • at Barclays, risks are identified and raising concerns about unethical or • where relevant we seek to reach managed through our ERMF, which unlawful behaviour through our agreement with tax authorities using supports the business in its aim to ‘Whistleblowing’ policy, which applies mechanisms available to all taxpayers embed effective risk management and a equally to tax matters. including Advance Pricing Agreements strong risk management culture. Under and Mutual Agreement Procedures to the ERMF risk, including tax risk is Stakeholder engagement and clearly establish in which territories our managed in accordance with a ‘three management of concerns profits should be taxed, lines of defence’ model, related to tax: • we engage with governments, tax • as part of the ‘first line of defence’ the Our reputation is very important to us and authorities and NGOs through public tax department identifies and manages we take our external stakeholders’ consultations and other discussions to tax risk by developing appropriate expectations into account when we make assist with the development of tax policy policies, standards and controls to apply decisions in relation to our tax affairs. More and the improvement of tax systems, across our organisation. Risk and details on our approach to stakeholder and maintain our transparency with Compliance comprise the ‘second line engagement and managing stakeholder these stakeholders; and of defence’, and Barclays Internal Audit concerns related to tax can be found in our are the ‘third line of defence’, and these • we cooperate with tax authorities Country Snapshot, and key highlights functions review, challenge and provide globally to reduce the scope for include: assurance to the Board in relation to the individuals and companies to evade tax, • we believe that it is important to be effectiveness of governance, risk and have met all of our 2022 information transparent in the disclosure of our tax management and controls including reporting obligations under the affairs both to tax authorities and those relating to tax risk, Common Reporting Standard and stakeholders more broadly, Foreign Account Tax Compliance Act. • we are subject to the Sarbanes-Oxley Act control requirements in relation to The BPLC Board Audit Committee is responsible for + financial statements disclosures considering the Group's tax strategy and overseeing compliance with the Group's Tax Principles. Please including those related to tax, refer to page 174 for details of BPLC Board Audit Committee oversight of tax related matters

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 260 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Financial crime Barclays recognises that economic crimes have an adverse effect on individuals and communities wherever they occur. Endemic economic crime can threaten laws, democratic processes and basic human freedoms, impoverishing states and distorting free trade and competition. Barclays recognises that financial crimes Anti-Bribery & Corruption Anti-Tax Evasion Facilitation have an adverse effect on individuals and Bribery and corruption constitutes of: Tax evasion is a financial crime and a communities wherever they occur. predicate offence to money laundering in a. improperly obtaining or retaining Endemic financial crime (particularly when the UK and many other countries in which business; and/or associated with organised crime and we operate. Barclays takes a zero- terrorist financing) can threaten laws, b. improperly securing a business or tolerance approach to deliberate democratic processes and basic human personal advantage; and/or facilitation of tax evasion in any country freedoms, impoverishing states and and has procedures in place to prevent it. c. inducing another person to perform distorting free trade and competition. We also expect the same from our their role in breach of an expectation of Barclays is committed to conducting its employees and third parties providing good faith, impartiality or trust. global activities with integrity and services for or on our behalf. Barclays is respecting its regulatory, ethical and social Barclays and its employees are prohibited committed to: responsibilities to: from engaging in or facilitating any form of a. dealing only with customers who have a. protect employees, customers, and bribery and corruption (giving and appropriately declared their assets to others with whom we do business receiving, directly or indirectly). The the relevant tax authorities; and Financial Crime Policy contains the b. support governments, regulators and b. preventing tax evasion facilitation by our minimum risk-based control requirements law enforcement in wider financial crime employees or third parties acting for or that all our businesses, legal entities and prevention. on our behalf. employees must follow. The Financial Crime Policy is designed to ensure that Sanctions We will not tolerate any deliberate breach Barclays’ employees know how to identify of financial crime laws and regulations that Sanctions are restrictions on activity with and manage the legal, regulatory and apply to our business and the transactions targeted countries, regions, governments, reputational risks associated with all forms we undertake. entities, individuals and industries that are of bribery and corruption. imposed by bodies such as the European Barclays has adopted a holistic approach Union, the United Nations, groups of to financial crime and has one Group-wide Anti-Money Laundering countries, or individual countries, such as Financial Crime Policy that sets the control Money laundering (including terrorist the United Kingdom and the United States. requirements in four key risk areas. The financing and the proliferation of nuclear, In order to protect its reputation and other Financial Crime Policy applies to all our chemical or biological weapons) has been legitimate business interests, in certain businesses, legal entities and employees. identified as a major threat to the circumstances, Barclays' risk appetite for Employees receive training on financial international financial services community sanctions may be stricter than its legal crime risk management and are made and therefore to Barclays. The Financial obligations. aware that failure to comply with the Crime Policy is designed to ensure that all Financial Crime Policy may give rise to The Financial Crime Policy is designed to our businesses and legal entities have disciplinary action, up to and including ensure that all our businesses, legal adequate systems and controls in place to dismissal. entities and employees know how to mitigate the risk of the firm being used to identify and manage the risks associated facilitate money laundering. As a with sanctions, including the risk that transatlantic bank, the Financial Crime activity is undertaken through Barclays in Policy takes into account EU and US anti- breach of sanctions regulations. money laundering requirements, as well as For further details of the Barclays approach to guidance issued by bodies such as the + Financial Crime compliance and prevention, please Wolfsberg Group and the European see our Financial Crime Compliance Statement in the ESG Resource Hub at home.barclays/esg-resource- Banking Authority. hub/reporting-and-disclosures/

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 261 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Health and Safety Barclays has a comprehensive Health and Measure Q1 2022 Q2 2022 Q3 2022 Q4 2022 Safety Management System (HSMS) Number of High or Exceptional Accidents 0 0 0 0 operating globally, which is independently a a Lost Time Incidents (per 100 employees) 0.0074 0.012 0.019 0.023 certified to the international standard b b % Completion Mandatory Training 99% 99% 99.6% 99.9% ISO45001 in the USA, UK, India and Asia Notes: PAC. a. Increase to LTIR is due to increased activities on site following Covid restrictions being lifted b. Reason for change from Q1&Q2, is due to new H&S Mandatory training launched at end of Q2 Barclays has a suite of Health and Safety (H&S) Policies and Standards that combine There is a programme of technical and site Information and knowledge is available together under a single high-level risk assessments to ensure the hazards through our intranet global safety hub, statement of commitment endorsed by and risk controls remain relevant and to which provides key information on minimal the Group ExCo. H&S policies are owned identify emerging themes and trends. H&S requirements, hazard register, risk by three risk horizontals – Premises, assessments, training and templates (for People and Physical Security. Each On-site monitoring is undertaken across fire evacuation personal plans, Display Horizontal manages specific hazards our portfolio by the Barclays H&S team Screen Equipment (DSE), stress, lone through the Group Policies and Standards. through our building facilities management working etc). partners for corporate sites, and Barclays has global risk assessments, Customer Care Leads for our retail This year, we have taken learnings from which identify the hazards and controls network. Working with the Chief Security the coronavirus pandemic and maintained needed to reduce risks to as low as Office (CSO), there are processes and a number of enhanced procedures put into reasonably practicable.These are procedures in place to cover terrorism, place during that time such as enhanced underpinned by local regulatory disasters, fire and other emergency hygiene and cleaning which kept our requirements and procedures. The evacuations. These are tested on a colleagues and customers safe and Barclays H&S Hazard Register is published programme schedule as required by our included within a refresh of our mandatory on the Barclays H&S Service intranet and minimum requirements or (if more training for H&S achieved 99.8% all required changes to controls and policy stringent) local regulatory requirements. completion. We have also introduced content are tracked through to completion additional health, safety and wellbeing within the annual policy standard refresh. Incident reporting systems exist to ensure training for working at home. incidents are captured and investigated Where applicable, our suppliers are enabling a review to take place of the subjected to obligations to adhere to our hazard profile of the organisation. Review minimum H&S requirements and vetted of incident data is completed by each during the onboarding process and region, reviewed at the Group H&S Forum through annual reviews by conducting an and lessons learned shared. Incidents are assessment of their activities to identify reported and escalated as required by local applicable controls (including Health and regulatory statute, along with the principle Safety). Barclays is supported by a Health of Barclays’ risk framework for risk issues and Safety Team, operating globally, who and events. provide support, competent advice and assurance where required. The Health and Safety Risk Management Framework over view is as follows: Health and Safety Forum Leadership Statement of Commitment for Health and Safety H&S Data Data: Performance against commitment Horizontal Premises People Physical Security Harm to people through physical injury Harm to people related to mental health Physical security incidents resulting in Risks (excluding injuries caused by Physical or mismanagement of employees harm to staff or external parties L3 Security related incidents) impacting personal welfare L.3 Health and Safety People Risk Policies Group Physical Security Policy (Premises & Infrastructure) Policy Health & Wellbeing Policy Health and Safety People Risk Standards Group Physical Security Standard (Premises & Infrastructure) Standard Health & Wellbeing Standard

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 262 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Managing data privacy, security and resilience We have strict policies to protect privacy and keep data secure. Barclays provides a public mailbox and As Barclays accelerates the migration of Data privacy secure channels via its website to enable digital services to the cloud, we apply the Most of the jurisdictions in which Barclays individuals to make their privacy requests same design principles that underpin our operates have privacy and data protection and receive responses from a dedicated existing control environment. We have laws in effect. While these may vary in team. strong controls and monitoring in place detail, generally they reflect internationally designed to secure cloud-hosted data and Barclays requires its suppliers to comply recognised privacy principles found in the maintain its integrity. with data protection and privacy laws, UN’s Universal Declaration of Human regulations and standards relevant to the Rights, the European Convention on Barclays has continued to take steps in jurisdictions in which they operate and Human Rights and the European Union’s 2022 to address the security of data we relevant to any transferred personal data. Charter of Fundamental Rights. share with third parties, including Our requirements are set out and conducting remote and on-site We strive to operate in accordance with managed through the Barclays Supplier inspections with certain suppliers to review these standards and recognise that Control Obligations, available online, which their controls against contractual respect for privacy rights is a key element look to provide assurance that all new and obligations and industry standards. A Third of good corporate governance and social existing suppliers commit to ensuring Party Service Provider Framework is in responsibility. We strive to be transparent personal data shared with them is place which sets out control requirements about our use of personal information safeguarded and respected throughout for business units to manage the when delivering our products and services the supply chain. operational, reputational, conduct and and acknowledge the responsibility we legal risks to Barclays through its supply have for safeguarding privacy. Data security chain. As Barclays increasingly adopts digital In 2022, we continued to strengthen our As we have transitioned to a more hybrid solutions to deliver next-generation data security policies and controls to working model, we have augmented the consumer financial services, we appreciate protect Barclays' sensitive information and education we provide to colleagues and our clients, customers and others may the data that has been entrusted to us by strengthened the monitoring of how have concerns about the use of their customers and clients. customer and client data is accessed and personal information. A globally applicable Barclays assesses its cybersecurity used to help minimise the risk of Barclays Data Privacy Standard sets out programme against the industry- exploitation or leakage. what is expected of all Barclays businesses recognised National Institute of Standards and functions when collecting, using and and Technology (NIST) Cyber security Data resilience sharing personal information. Framework, and we have adopted the The Barclays CSO has a set of To promote clear accountability, the extended Financial Services Sector Profile. preventative key controls that mitigate Standard includes the requirement for During 2022, we have continued to deploy cyber-related risks. These focus on each business to appoint an accountable automated controls which work to understanding internal and external executive who has ultimate responsibility threats and delivering our capability to discover data that is highly sensitive that for the processing of personal data within needs to be protected in line with our counteract them. Large-scale data that business. An agreed assurance standards. corruption is one cyber threat on which we programme measures compliance with are focused. the Data Privacy Standard. Barclays Major risk events have been seen in other colleagues must complete annual privacy organisations and Barclays is focused on training which is reviewed and refreshed continuously reviewing and improving our each year, with additional tailored training response and recovery plans in provided as necessary. The Group Data preparation for these evolving threats. Our Protection Officer (DPO) reports on data teams use intelligence to create plausible privacy issues to the highest level of cybersecurity and data compromise management. scenarios which we simulate to help us Through customer and employee privacy focus on continuous improvement. notices, we endeavour to explain clearly and openly how and why we use personal information and the legal grounds we rely on. When we receive complaints we seek to address them fairly. Several jurisdictions also provide individuals with specific rights, such as the right to have access to or request deletion of their personal information.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 263 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) Operational resilience Chief Security Office Certifications Customers and clients have increased The Chief Security Officer for the Group Barclays holds three ISO27001 expectations for us to be ‘Always On’ and heads the Chief Security Office and certifications (being the international the interconnectivity of the financial sector reports directly to the Chief Operating standard on how to manage information means the stability and resilience of our Officer, who sits on the Group Executive security) and successfully renewed the systems, workforce and continued Committee. The Global Chief Information Triennial Recertification for Barclays provision of third-party services all have a Security Officer (CISO) for the Group Corporate Banking (Government Banking direct impact on the quality of our service. reports directly to the Chief Security Service). Barclays also has a UK Officer and is supported by a team of certification for Digital Banking. Barclays continues to invest in a multi-year CISOs for individual business units and resilience programme which is focused on Reporting phishing jurisdictions. CSO leadership manages our ability to recover from ‘severe but The CSO performs a number of key Barclays’ cybersecurity programme and is plausible’ scenarios which could cause activities related to identifying, accountable for the day-to-day detriment to our customers and clients investigating, responding to and monitoring of residual risk, identification of and the broader financial market. containing phishing / malicious email gaps, oversight of remedial actions and To enable this, we define Group-wide incidents. The CSO has embedded an implementation of strategy. business services and their operational process that provides The Group has an Information and Cyber interdependencies across the Group, education and awareness content via Security Policy supported by 10 Standards including technology, third-party services email to colleagues who clicked a malicious which define the minimum requirements and our workforce and develop the link or attachment in a phishing email, with for cyber security matters across the recovery plans and business response escalating training exercises and entire Barclays Group. These Standards plans required should a disruption event management interventions for repeated cover topics such as Vulnerability occur. We work to review and validate instances. Management, Cryptography, Network and these mechanisms on an ongoing basis All colleagues have a reporting tool Data Security, Access Management, through regular testing, with the aim of integrated into their email account, Insider Threat and Incident Response. reducing the volume and impact of enabling them to report suspected operational incidents year on year. We also An important part of Barclays’ phishing mails to Barclays JOC for further conduct regular assurance on third parties cybersecurity programme is its Joint investigation and receive feedback on to assess their capability. Operations Centres (JOCs), which operate whether the reported mail was suspect, 24x7x365 from three globally strategic Resilience and security is set as a priority genuine or part of an educational locations, linking CSO’s security from the Barclays PLC Board and is the campaign. professionals and incident response responsibility of everyone within the Training managers with control functions and Group. Every colleague must complete business unit representatives. Barclays has adopted a 65-day window for mandatory training at regular intervals mandatory training completion to allow across the year. Within CSO, Barclays has a dedicated colleagues sufficient time to complete External Cybersecurity Assurance & Please refer to pages 184 for details of Barclays PLC Board Risk Committee oversight relating to operational resilience. training. The consequence of non- Monitoring (ECAM) team that uses a risk- Please refer to the 'Material existing and emerging risks' completion is a breach which can lead to based approach to assess, monitor and section in our Risk review on pages 269 to 281 for further details on cyber-attacks, data management and information disciplinary action and impact respond to threats relating to third-party protection. compensation. service providers. Please refer to the 'Supervision and regulation' section in our Risk review on pages 370 to 377 for further details on our The 65-day window covers many different regulatory approach to managing such risks. colleague situations, including new joiners, returners from sick leave or parental leave and internal movers. Some of these situations are required by law to have a reasonable adjustment time to enable the successful completion of training. This process is managed by Barclays HR and Compliance.

Risk review The management of risk is a critical underpinning to the execution of Barclays’ strategy. The material risks and uncertainties the Group faces across its business and portfolios are key areas of management focus. Pillar 3 Page Report Risk management strategy Enterprise Risk Management 266 93 Overview of Barclays’ approach to risk Segregation of duties – the ‘Three Lines management. A detailed overview together 266 93 of Defence’ model with more specific information on policies that the Group determines to be of Principal risks 268 93 particular significance in the current operating environment can be found in the 268 94 Barclays PLC Pillar 3 Report 2022 or at 268 95 barclays.com 268 97 Material existing and emerging risks 269 N/A Insight into the level of risk across our business and portfolios, the material existing 273 N/A and emerging risks and uncertainties we face and the key areas of management focus. Credit risk 274 N/A Market risk 275 N/A Treasury and Capital risk 275 N/A Liquidity risk 275 N/A Capital risk 276 N/A IRRBB 276 N/A Operational risk 276 N/A Tax risk 279 N/A Model risk 279 N/A Conduct risk 279 N/A Reputation risk 280 N/A Legal risk 280 N/A

Pillar 3 Page Report Principal risk management Climate risk management 282 104 Barclays’ approach to risk management Credit risk management (audited) 289 107 for each principal risk with focus on Market risk management (audited) 291 139 organisation and structure and roles and responsibilities. Treasury and capital risk management 291 154 Model risk management 293 168 Operational risk management 293 164 Conduct risk management 294 171 Reputation risk management 295 173 Legal risk management 295 175 Climate risk performance Carbon-related assets 296 N/A Elevated risk sectors 296 N/A Financing (capital markets) 298 N/A Risk performance Risk performance 300 N/A Credit risk performance Maximum exposure and effects of netting, 302 N/A collateral and risk transfer Expected Credit Losses 304 N/A Movement in gross exposures and impairment allowance including provisions for loan commitments 308 N/A and financial guarantees Management adjustments to models 315 N/A for impairment (audited) Measurement uncertainty and sensitivity analysis 317 N/A Analysis of the concentration of credit risk 326 N/A The approach to management 328 N/A and representation of credit quality Analysis of specific portfolios and asset types 333 N/A Credit cards, unsecured loans and other retail lending 335 N/A Forbearance 337 N/A Market risk performance Market risk overview and summary of performance 341 79 Treasury and capital risk performance Treasury and Capital risk 343 N/A Capital risk overview and summary of performance 355 N/A Interest rate risk in the banking book 364 N/A Operational risk performance Operational risk overview and summary 366 89 of performance Operational risk profile 366 91 Model risk performance Model risk overview 368 N/A Conduct risk performance Conduct risk overview 368 N/A Reputation risk performance Reputation risk overview 368 N/A Legal risk performance Legal risk overview 369 N/A Supervision and regulation 370 N/A

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 266 report information sustainability report Governance review review statements Annual Report 2022 Risk management Barclays’ risk management strategy This section introduces the Group’s approach to managing and identifying risks, and for fostering a sound risk culture. Enterprise Risk Management risks, and set out details of which policies ▪ The Second line is comprised of the Risk Framework (ERMF) are needed, and high level governance and Compliance functions. The role of arrangements the second line is to establish the limits, The ERMF outlines the highest level rules and constraints, and the principles for risk management by setting ▪ policies set out the control objectives frameworks, policies and standards out standards, objectives and key and high level requirements to address under which all activities shall be responsibilities of different groups of the key principles articulated in their performed, consistent with the risk employees of the Group. associated frameworks. Policies state appetite of the Group, and to oversee ‘what’ those within scope are required to It is approved by the Barclays PLC Board the performance of the firm against do on recommendation of the Group Board these limits, rules and constraints . Risk Committee and the Group Chief Risk ▪ standards set out the detail of the Controls for first line activities will Officer. control requirements to ensure the ordinarily be established by the control The ERMF sets out: control objectives set by the policies are officers operating within the control met. ▪ principal risks faced by the Group, which framework of the firm. These will remain guide the organisation of risk subject to oversight by the second line. Segregation of duties – the ‘Three Lines management processes of Defence’ model ▪ The Third line of defence is Internal ▪ risk appetite requirements. This helps The ERMF sets out a clear lines of defence Audit, who are responsible for providing define the level of risk we are willing to model. All colleagues are responsible for independent assurance over the undertake in our business understanding and managing risks within effectiveness of governance, risk the context of their individual roles and management and controls over current, ▪ risk management and segregation of responsibilities, as set out below. systemic and evolving risks. duties: The ERMF defines a Three Lines of Defence model ▪ The First line comprises all employees ▪ The Legal function provides support to engaged in the revenue-generating and all areas of the bank and is not formally ▪ roles and responsibilities for key risk client-facing areas of the Group and all part of any of the three lines of defence, management and governance: The associated support functions, including The Legal function is responsible for the accountabilities of the Group CEO, Finance, Operations, Treasury, and identification of all Legal and Regulatory Group CRO and other senior managers, Human Resources. The first line is Risks. Except in relation to the legal as well as an overview of Barclays PLC responsible for identifying and managing advice it provides or procures, it is committees. the risks in which they are engaged, subject to second line oversight with The ERMF is complemented by operating within applicable limits, and respect to its own operational and frameworks, policies and standards which escalating risk events or issues as conduct risks, as well as with respect to are mainly aligned to individual principal appropriate. Employees in the first line the Legal and Regulatory Risks to which risks: have primary responsibility for their risks the bank is exposed. and their activities are subject to ▪ frameworks cover high level principles oversight from the relevant parts of the guiding the management of principal second and third lines.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 267 report information sustainability report Governance review review statements Annual Report 2022 Risk management (continued)

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 268 report information sustainability report Governance review review statements Annual Report 2022 Risk management (continued) Principal risks • The Barclays PLC Board Risk Barclays’ risk culture Committee (BRC): the BRC monitors The ERMF identifies nine principal risks Risk culture can be defined as the norms, the Group’s risk profile against the namely: credit risk, market risk, treasury attitudes and behaviours related to risk agreed appetite. Where actual and capital risk, climate risk, operational awareness, risk taking and risk performance differs from expectations, risk, model risk, conduct risk, reputation management. This is reflected in how the the actions taken by management are risk and legal risk. Note that climate risk Group identifies, escalates and manages reviewed to ascertain that the BRC is was added in January 2022; see page 273 risk matters. comfortable with them. The BRC also for more information. Barclays is committed to maintaining a reviews certain key risk methodologies, Each of the principal risks is overseen by an robust risk culture in which: the effectiveness of risk management, accountable executive within the Group and the Group’s risk profile, including the • management expect, model and reward who is responsible for overseeing and/or material issues affecting each business the right behaviours from a risk and assigning responsibilities for the portfolio and forward risk trends. The control perspective framework, policies and standards that set committee also commissions in-depth • colleagues identify, manage and out associated responsibilities and analysis of significant risk topics, which escalate risk and control matters, and expectations and detail the related are presented by the Group CRO or meet their responsibilities around risk requirements around risk management. In senior risk managers. management. addition, certain risks span across more • The Barclays PLC Board Audit than one principal risk. The Group CEO works with the Executive Committee (BAC): the BAC receives Management to embed a strong risk Risk appetite regular reports on the effectiveness of culture within the firm, with particular Risk appetite is defined as the level of risk internal control systems, quarterly regard to the identification, escalation and which the Group is prepared to accept in reports on material control issues of management of risk matters, in carrying out its activities. It provides a basis significance, quarterly papers on accordance with the ERMF. Specifically, all for ongoing dialogue between accounting judgements (including employees regardless of their positions, management and Board with respect to impairment), and a quarterly review of functions or locations must play their part the Group’s current and evolving risk the adequacy of impairment allowances, in the Group’s risk management. profile, allowing strategic and financial relative to the risk inherent in the Employees are required to be familiar with decisions to be made on an informed portfolios, the business environment, risk management policies which are basis. and Barclays policies and relevant to their responsibilities, know how Risk appetite is approved by the Barclays methodologies. to escalate actual or potential risk issues, PLC Board in aggregate and disseminated • The Barclays PLC Board Remuneration and have a role-appropriate level of across legal entities and businesses, Committee (RemCo): the RemCo awareness of the risk management supported by limits to enable and control receives proposals on ex-ante and ex- process as defined by the ERMF. specific exposures and activities that have post risk adjustments to variable Our Code of Conduct – the Barclays Way material concentration risk implications. remuneration based on risk Globally, all colleagues must attest to the Risk committees management performance including ‘Barclays Way’, our Code of Conduct, and events, issues and the wider risk profile. Barclays various risk committees consider comply with all frameworks, policies and These inputs are considered in the risk matters relevant to their business, and standards applicable to their roles. The setting of performance incentives. escalate as required to the Group Risk Code of Conduct outlines the Purpose, Committee (GRC), whose Chair, in turn, The terms of reference and additional Values and Mindset which govern our escalates to the Barclays PLC Board details on membership and activities for ‘Barclays Way’ of working across our Committees and the Barclays PLC Board. each of the principal Board committees business globally. It constitutes a are available from the corporate In addition to setting the risk appetite of reference point covering all aspects of governance section of the Barclays the Group, the Board is responsible for colleagues’ working relationships, and website at: home.barclays/who-we-are/ approving the ERMF, and reviewing provides guidance on working with other our-governance/board-committees/ reputation risk matters. It receives regular Barclays employees, customers and information on the risk profile of the clients, governments and regulators, The GRC is the most senior executive Group, and has ultimate responsibility for business partners, suppliers, competitors body responsible for reviewing and risk appetite and capital plans. and the broader community. See monitoring the risk profile of the Group. home.barclays/sustainability/esg- This includes coverage of all principal risks, Further, there are two Board-level resource-hub/statements-and-policy- and any other material risks, to which the committees which oversee the application positions/ for more details. Group is exposed. The GRC reviews and of the ERMF and implementation of key recommends the proposed risk appetite aspects, the Barclays PLC Board Risk and relative limits to the BRC. The Committee (BRC) and the Barclays PLC committee covers all business units and Board Audit Committee (BAC). legal entities of the Group and Additionally, the Barclays PLC Board incorporates specific coverage of Barclays Remuneration Committee oversee pay Bank Group. practices focusing on aligning pay to sustainable performance.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 269 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks In particular: growth, higher unemployment and Material existing and emerging falling property prices, which could risks to the Group’s future • Global GDP growth in 2022 was severely lead to increased impairments in hampered by inflationary pressures performance relation to a number of the Group’s resulting from; (a) the disruptive legacy The Group has identified a broad range of portfolios (including, but not limited of the COVID-19 pandemic on supply risks to which its businesses are exposed. to, the UK mortgage portfolio, chains; (b) restricted labour markets and Material risks are those to which senior unsecured lending portfolio (including upward pressure on employment costs; management pay particular attention and credit cards) and commercial real and (c) escalating energy and food which could cause the delivery of the estate exposures. prices intensified by the conflict in Group’s strategy, results of operations, Ukraine. These pressures have led to – increased market volatility (in financial condition and/or prospects to the on-going 'cost of living' pressures in particular in currencies and interest differ materially from expectations. much of the world, but particularly in the rates), which could impact the Emerging risks are those which have Group’s trading book positions and UK and Europe. unknown components, the impact of affect the underlying value of assets in • In response to persistent inflationary which could crystallise over a longer time the banking book and securities held pressures, throughout 2022, central period. In addition, certain other factors by the Group for liquidity purposes banks pursued policies of raising interest beyond the Group’s control, including rates while also curtailing quantitative – a credit rating downgrade for one or escalation of global conflicts, acts of more members of the Group (either easing and in some cases commencing terrorism, natural disasters, pandemics quantitative tightening. directly or indirectly as a result of a and similar events, although not detailed downgrade in the UK sovereign credit below, could have a similar impact on the • Both the elevated inflationary ratings), which could significantly Group. environment and higher interest rates increase the Group’s cost of funding are likely to adversely affect economic Material existing and emerging and/or reduce its access to funding, growth globally in 2023, particularly in risks potentially impacting more widen credit spreads and materially developed markets, with the possibility than one principal risk adversely affect the Group’s interest of elevated unemployment as a result, i) Business conditions, general economy margins and liquidity position and/or with potentially negative implications for and geopolitical issues the Group's performance, including – a widening of credit spreads more The Group’s operations are subject to generally or reduced investor appetite through increased impairment changes in global and local economic and allowances. It remains possible that a for the Group’s debt securities, which market conditions, as well as geopolitical resurgence in COVID-19 and/or could negatively impact the Group’s developments, which may have a material restrictions on movement imposed cost of and/or access to funding impact on the Group’s business, results of locally to combat outbreaks or new • A significant proportion of the Group's operations, financial condition and strains, could exacerbate the expected portfolio is located in the US, including a prospects. slowdown in global economic major credit card portfolio and a range performance. A deterioration in global or local economic of corporate and investment banking and market conditions may result in • In the UK and Europe, governments exposures. The possibility of significant (among other things): (i) deteriorating responded to escalating energy prices changes in US policy in certain sectors business, consumer or investor via short term subsidies for consumers (including trade, healthcare and confidence and lower levels of investment and industry, in part funded by windfall commodities) may have an impact on and productivity growth, which in turn may taxes on targeted sectors. Revisions to the Group’s associated portfolios. lead to lower customer and client activity, these schemes during 2023 may cause Stress in the US economy, weakening including lower demand for borrowing; (ii) upward pressure on household and GDP and the associated exchange rate higher default rates, delinquencies, write- corporate finances, which could result in fluctuations, heightened trade tensions offs and impairment charges as borrowers higher impairment charges. (such as between the US and China), and struggle with their debt commitments; (iii) increased interest rates (particularly if • Trading arrangements between the UK subdued asset prices, which may impact accompanied by rise in unemployment) and the European Union (EU), following the value of any collateral held by the could lead to increased levels of the UK's exit from the EU, may: (i) raise Group and require the Group and its impairment, which may have a material costs for UK customers trading with the customers to post additional collateral in adverse effect on the Group's results of EU, and/or otherwise adversely affect order to satisfy margin calls; (iv) mark-to- operations and profitability. their business; and (ii) impact the market losses in trading portfolios Group's EU operations. • An escalation in geopolitical tensions or resulting from changes in factors such as increased use of protectionist measures • Further, any trading disruption between credit ratings, share prices and solvency of (such as the US and China implementing the EU and the UK may have a significant counterparties; and (v) revisions to reciprocal trade tariffs) may have a impact on economic activity in the EU calculated ECLs leading to increases in material adverse effect on the Group’s and the UK which, in turn, could have a impairment allowances. In addition, the business in the affected regions. material adverse effect on the Group’s Group’s ability to borrow from other business, results of operations, financial • In China the level of debt, particularly in financial institutions or raise funding from condition and prospects. Unstable the property sector, remains a concern, external investors may be affected by economic conditions could result in given the high level of leverage and deteriorating economic conditions and (among other things): despite government and regulatory market disruption. Geopolitical events can action. The rapid unwinding of “zero also cause financial instability and affect – a deeper recession in the UK and/or COVID-19” policies may initially result in economic growth. one or more member states of the EU economic slowdown should large in which it operates, with lower

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 270 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) numbers of the population catch infrastructure and supply chains, business in the lending portfolio and underwriting COVID-19. Longer term, the shift away processes and technology services activity of the Group with resultant higher credit losses driving an increased from market-based reforms towards provided by third parties, and unavailability state led initiatives to increase self- of staff due to illness. These interruptions impairment charge which would most sufficiency and economic security, with to business may be detrimental to notably impact retail unsecured portfolios potentially negative implications for customers (who may seek reimbursement and wholesale non-investment grade world trade. from the Group for costs and losses lending and could have a material effect on the Group’s business, results of incurred as a result of such interruptions), • Higher US interest rates and slowing and result in potential litigation costs operations, financial condition and demand for natural resources could (including regulatory fines, penalties and prospects. cause economic deterioration in other sanctions), as well as reputational emerging markets, with a material Interest rate cuts may affect, and put damage. adverse effect on the Group's results pressure on, the Group’s net interest margins (the difference between its from operations if these stresses lead to Changes in macroeconomic variables such higher impairment charges from a as gross domestic product (GDP) and lending income and borrowing costs) and deterioration in sovereign or corporate unemployment have a significant impact could adversely affect the profitability and creditworthiness. on the modelling of expected credit losses prospects of the Group. (ECLs) by the Group. The economic In addition, changes in interest rates could ii) Risks relating to the impact of environment remains uncertain and future have an adverse impact on the value of the COVID-19 impairment charges may be subject to securities held in the Group’s liquid asset The COVID-19 pandemic has had a additional volatility (including from changes portfolio. Consequently, this could create material adverse impact on businesses to macroeconomic variable forecasts) more volatility than expected through the around the world and the economic and caused by further waves or new strains of Group’s Fair Value through Other social environments in which they operate. the COVID-19 pandemic and related Comprehensive Income (FVOCI) reserve Consequently there are a number of containment measures and the continued and could adversely affect the profitability factors associated with the COVID-19 efficacy of vaccines and/or boosters, as and prospects of the Group. pandemic and its impact on global well as the longer- term effectiveness of iv) Competition in the banking and economies that have had and could central bank, government and other financial services industry continue to have a material adverse effect support measures. For further details on on the profitability, capital and liquidity of The Group operates in a highly macroeconomic variables used in the competitive environment in which it must the Group. calculation of ECLs, refer to the credit risk evolve and adapt to significant changes as The COVID-19 pandemic caused performance section. a result of regulatory reform, disruption to the Group’s customers, Any and all such events mentioned above technological advances, increased public suppliers and staff globally. Most could have a material adverse effect on the scrutiny and prevailing economic jurisdictions in which the Group operates Group’s business, results of operations, conditions. The Group expects that implemented severe restrictions on the financial condition, prospects, liquidity, competition in the financial services movement of their respective populations, capital position and credit ratings (including industry will continue to be intense and with a resultant significant impact on potential credit rating agency changes of may have a material adverse effect on the economic activity. It remains unclear how outlooks or ratings), as well as on the Group’s future business, results of the COVID-19 pandemic will evolve Group’s customers, employees and operations, financial condition and through 2023 and the risks from further suppliers. prospects. waves, new strains and/or vaccines iii) The impact of interest rate changes proving ineffective, cannot be ruled out New competitors in the financial services on the Group’s profitability and could result in the reintroduction of, or industry continue to emerge. Changes to interest rates are significant for additional, restrictions placed on local Technological advances and the growth of the Group, especially given the uncertainty e-commerce have made it possible for populations . The Group continues to as to the size and frequency of such monitor the situation. non- banks to offer products and services changes, particularly in the Group’s main that traditionally were banking products Macroeconomic expectations are that the markets of the UK, the US and the EU. such as electronic securities trading, effects of the COVID-19 pandemic will be Interest rate rises result in higher funding payments processing and online long lasting with the level and speed of costs but could positively impact the automated algorithmic-based investment economic recovery still uncertain. To the Group’s profitability as retail and corporate advice. Furthermore, payments extent that the residual impacts of the business net interest income increases processing and other services could be COVID-19 pandemic continue to due to margin decompression, as significantly disrupted by technologies, adversely affect the global economy and/ observed for the interest rate rises in such as blockchain (used in cryptocurrency or the Group, it may also have the effect of 2022. However, increases in interest rates, systems) and 'buy now pay later' lending, increasing the likelihood and/or magnitude if larger or more frequent than expected, both of which are currently subject to of other risks described herein or may could lead to generally weaker than lower levels of regulatory oversight. pose other risks which are not presently expected growth, reduced business Furthermore, the introduction of Central known to the Group or not currently confidence and higher unemployment. Bank Digital Currencies could potentially expected to be significant to the Group’s This, combined with the impact interest have significant impact on the banking profitability, capital and liquidity. rate rises may have on the affordability of system and the role of commercial banks Further waves or new strains of COVID-19 loan arrangements for borrowers within it by disrupting the current provision could impact the Group's ability to conduct (especially when combined with of banking products and services. This business in the jurisdictions in which it inflationary pressures), could cause stress disruption could allow new competitors, operates through disruptions to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 271 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) some previously hindered by banking which the business of financial services is (including central bank digital currencies regulation (such as FinTechs), to provide conducted. Measures taken include and global stable coins) and cybersecurity. This also includes the customers with access to banking facilities enhanced capital, liquidity and funding and increase disintermediation of banking requirements, the separation or introduction of new and/or enhanced services. prohibition of certain activities by banks, regulatory standards in these areas; changes in the operation of capital New technologies and changing consumer • increasing regulatory expectations of markets activities, the introduction of tax behaviour have required and could require firms around governance and risk levies and transaction taxes, changes in management frameworks, particularly the Group to incur additional cost to compensation practices and more detailed modify or adapt its products or make for management of climate change, requirements on how business is additional capital investments in its diversity and inclusion and other ESG conducted. The governments and businesses to attract and retain clients and risks and enhanced ESG disclosure and regulators in the UK, the US, the EU or customers or to match products and reporting obligations; elsewhere may intervene further in relation services offered by its competitors, • the continued evolution of the UK’s to areas of industry risk already identified, including technology companies. regulatory framework following the UK's or in new areas, which could adversely Ongoing or increased competition and/or withdrawal from the EU, including in light affect the Group. disintermediation of banking services may of the UK financial services regulatory Current and anticipated areas of particular put pressure on the pricing of the Group’s reform agenda announced in December focus for the Group’s regulators, where 2022 and the proposals in the Financial products and services, which could reduce regulatory changes could have a material the Group’s revenues and profitability, or Services and Markets Bill, and similarly effect on the Group’s business, financial may cause the Group to lose market share, regarding the access of UK and other condition, results of operations, prospects, particularly with respect to traditional non-EU financial institutions to EU capital position, and reputation, include, banking products such as deposits, bank markets; but are not limited to: accounts and mortgage lending. This • the implementation of the reforms to competition may be on the basis of quality • the increasing focus by regulators, the Basel III package, which includes and variety of products and services international bodies, organisations and changes to the RWA approaches to offered, transaction execution, innovation, unions on how institutions conduct credit risk, market risk, counterparty risk, reputation and/or price. These factors business, particularly with regard to the operational risk, and credit valuation delivery of fair outcomes for customers, may be exacerbated by further industry adjustments and the application of RWA wide initiatives to address access to promoting effective competition in the floors and the leverage ratio; banking. The failure of any of the Group’s interests of consumers and ensuring the • the implementation of more stringent businesses to meet the expectations of orderly and transparent operation of capital, liquidity and funding clients and customers, whether due to global financial markets, including the requirements; proposed introduction in the UK of a general market conditions, • the ongoing regulatory response to the underperformance, a decision not to offer new consumer duty and measures COVID-19 pandemic and its a particular product or service, branch resulting from ongoing thematic reviews implications for banks’ credit risk closures, changes in client and customer into the workings of the retail, small- and management and provisioning expectations or other factors, could affect medium-sized enterprise and wholesale processes, capital adequacy and banking sectors and the provision of the Group’s ability to attract or retain liquidity, and a renewed focus on clients and customers. Any such impact financial advice to consumers; vulnerable customers including the could, in turn, reduce the Group’s • the implementation of any conduct treatment of customers and revenues. measures as a result of regulators’ focus consideration of longer-term initiatives v) Regulatory change agenda and impact on organisational culture, employee to support borrowers in financial on business model behaviour and whistleblowing; difficulty and measures designed to The Group’s businesses are subject to • the demise of certain benchmark maximise access to cash for consumers; ongoing regulation and associated interest rates and the transition to new • the incorporation of climate change regulatory risks, including the effects of risk-free reference rates (as discussed within the global prudential framework, changes in the laws, regulations, policies, further under ‘vi) Impact of benchmark including the transition risks resulting voluntary codes of practice and interest rate reforms on the Group’ from a shift to a low carbon economy interpretations in the UK, the US, the EU below); and its financial effects; and the other markets in which it operates. • reviews of regulatory frameworks Many regulatory changes relevant to the • increasing requirements to detail applicable to the wholesale financial Group’s business may have an effect management accountability within the markets, including reforms and other beyond the country in which they are Group (for example, the requirements of changes to conduct of business, listing, the Senior Managers and Certification enacted, either because the Group’s securitisation and derivatives related regulators deliberately enact regulation Regime in the UK and similar regimes requirements; with extra-territorial impact or its global elsewhere that are either in effect or • the focus globally on technology operations mean that the Group is obliged under consideration/implementation), adoption and digital delivery, to give effect to local laws and regulations as well as requirements relating to underpinned by customer protection, executive remuneration; on a wider basis. including the use of artificial intelligence In recent years, regulators and • changes in national or supra-national and digital assets (data, identity and governments have focused on reforming requirements regarding the ability to disclosures), financial technology risks, both the prudential regulation of the offshore or outsource the provision of payments and related infrastructure, financial services industry and the ways in services and resources or transfer operational resilience, virtual currencies

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 272 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) material risk to financial services discontinuation of certain reference rates • Litigation risk: members of the Group companies located in other countries, (including LIBOR), and the introduction of may face legal proceedings, regulatory which impact the Group’s ability to implementing legislation and regulations. investigations and/or other actions or implement globally consistent and Specifically, certain LIBOR tenors either proceedings regarding (among other efficient operating models; ceased at the end of 2021 or became things): (i) the conduct risks identified permanently unrepresentative. above, (ii) the interpretation and • financial crime, fraud and market abuse Furthermore, certain US dollar LIBOR enforceability of provisions in LIBOR- standards and increasing expectations tenors are to cease by the end of June based contracts and securities, and (iii) for related control frameworks, to 2023, and restrictions have been imposed the Group’s preparation and readiness ensure firms are adapting to new threats on new use of US dollar LIBOR. for the replacement of LIBOR with such as those arising from the Notwithstanding these developments, alternative RFRs. COVID-19 pandemic, and are given the unpredictable consequences of protecting customers from cyber- • Financial risk: the valuation of certain of benchmark reform, any of these enabled crime; the Group’s financial assets and liabilities developments could have an adverse may change. Moreover, transitioning to • the application and enforcement of impact on market participants, including alternative RFRs may impact the ability economic sanctions including those with the Group, in respect of any financial of members of the Group to calculate extra-territorial effect and those arising instruments linked to, or referencing, any and model amounts receivable by them from geopolitical tensions; of these benchmark interest rates. on certain financial assets and determine • requirements flowing from Uncertainty associated with such potential the amounts payable on certain financial arrangements for the resolution changes, including the availability and/or liabilities (such as debt securities issued strategy of the Group and its individual suitability of alternative RFRs, the by them) because certain alternative operating entities that may have participation of customers and third party RFRs (such as the Sterling Overnight different effects in different countries; market participants in the transition Index Average (SONIA) and the Secured process, challenges with respect to • the increasing regulatory expectations Overnight Financing Rate (SOFR)) are required documentation changes, and and requirements relating to various look-back rates whereas term rates impact of legislation to deal with certain aspects of operational resilience, (such as LIBOR) allow borrowers to legacy contracts that cannot convert into including an increasing focus on the calculate at the start of any interest or add fall-back RFRs before cessation of response of institutions to operational period exactly how much is payable at the benchmark they reference, may disruptions; the end of such interest period. This may adversely affect a broad range of have a material adverse effect on the • continuing regulatory focus on data transactions (including any securities, Group’s cash flows. privacy, including the collection and use loans and derivatives which use LIBOR or of personal data, and protection against • Pricing risk: changes to existing any other affected benchmark to loss and unauthorised or improper reference rates and indices, determine the interest payable which are access; discontinuation of any reference rate or included in the Group’s financial assets and • the regulatory focus on policies and indices and transition to alternative liabilities) that use these reference rates procedures for identifying and managing RFRs may impact the pricing and indices, and present a number of risks cybersecurity risks, cybersecurity mechanisms used by the Group on for the Group, including but not limited to: governance and the corresponding certain transactions. • Conduct risk: in undertaking actions to disclosure and reporting obligations; and • Operational risk: changes to existing transition away from using certain • continuing regulatory focus on the reference rates and indices, reference rates (such as LIBOR) to new effectiveness of internal controls and discontinuation of any reference rate or alternative RFRs, the Group faces risk management frameworks, as index and transition to alternative RFRs conduct risks. These may lead to evidenced in regulatory fines and other may require changes to the Group’s IT customer complaints, regulatory measures imposed against the Group systems, trade reporting infrastructure, sanctions or reputational impact if the and other financial institutions. operational processes, and controls. In Group is considered to be (among other addition, if any reference rate or index For further details on the regulatory supervision of, things): (i) undertaking market activities + and regulations applicable to, the Group, refer to the (such as LIBOR) is no longer available to that are manipulative or create a false or Supervision and regulation section on page 370. calculate amounts payable, the Group misleading impression; (ii) misusing may incur additional expenses in sensitive information or not identifying vi) Impact of benchmark interest rate amending documentation for new and reforms on the Group or appropriately managing or mitigating existing transactions and/or effecting conflicts of interest; (iii) providing Global regulators and central banks in the the transition from the original customers with inadequate advice, UK, the US and the EU have driven reference rate or index to a new misleading information, unsuitable international efforts to reform key reference rate or index. products or unacceptable service; (iv) benchmark interest rates and indices, such not taking a consistent approach to • Accounting risk: an inability to apply as the London Interbank Offered Rate remediation for customers in similar hedge accounting in accordance with (LIBOR), used to determine the amounts circumstances; (v) unduly delaying the IAS 39 could lead to increased volatility payable under a wide range of transactions communication and migration activities in the Group’s financial results and and make them more reliable and robust. in relation to client exposure, leaving performance. These benchmark reforms have resulted in them insufficient time to prepare; or (vi) significant changes to the methodology Any of these factors may have a material colluding or inappropriately sharing and operation of certain benchmarks and adverse effect on the Group’s business, information with competitors. indices, the adoption of alternative risk- results of operations, financial condition, free reference rates (RFRs), the prospects and reputation.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 273 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) conditions but also to applicable local laws, restrict Barclays PLC’s ability to meet its For further details on the impacts of benchmark + interest rate reforms on the Group, refer to Note 41. capital regulations (including internal MREL obligations and/or to pay dividends to ordinary shareholders. requirements) and other restrictions vii) Change delivery and execution risks (including restrictions imposed by Shareholders should assume that, in a The Group will need to adapt and/or governments and/or regulators, which resolution situation, public financial transform the way it conducts business in limit management’s flexibility in managing support will only be available to a relevant response to changing customer behaviour the business and taking action in relation entity as a last resort after the relevant UK and needs, technological developments, to capital distributions and capital resolution authorities have assessed and regulatory expectations, increased allocation). These laws and restrictions used, to the maximum extent practicable, competition and cost management could limit the payment of dividends and the resolution tools, including the bail-in initiatives. Accordingly, effective distributions to Barclays PLC by its tool (the Bank of England’s preferred management of transformation projects is subsidiaries and any other entities in which approach for the resolution of the Group is required to successfully deliver the it holds an investment from time to time, a bail-in strategy with a single point of Group's strategic priorities, involving which could restrict Barclays PLC’s ability entry at Barclays PLC). The exercise of any delivering both on externally driven to meet its obligations and/or to make of such powers under the Banking Act or programmes, as well as key business capital distributions (such as dividends to any suggestion of any such exercise could initiatives to deliver revenue growth, ordinary shareholders and share materially adversely affect the value of product enhancement and operational buybacks). Barclays PLC ordinary shares and could efficiency outcomes. The magnitude, ix) Application of resolution measures lead to shareholders losing some or all of complexity and, at times, concurrent and stabilisation powers under the their investment. demands of the projects required to meet Banking Act these priorities can result in heightened In addition, any safeguards within the Under the Banking Act 2009, as amended execution risk. Banking Act (such as the ‘no creditor worse (Banking Act), substantial powers are off’ principle) may not result in The ability to execute the Group’s strategy granted to the Bank of England (or, in compensation to shareholders that is may be limited by operational capacity and certain circumstances, HM Treasury), in equivalent to the full losses incurred by the increasing complexity of the regulatory consultation with the PRA, the FCA and them in the resolution and there can be no environment in which the Group operates. HM Treasury, as appropriate, as part of a assurance that shareholders would In addition, whilst the Group continues to special resolution regime (SRR). These recover such compensation promptly. pursue cost management initiatives, they powers enable the relevant UK resolution may not be as effective as expected and Material existing and emerging authority to implement resolution cost saving targets may not be met. risks impacting individual measures and stabilisation options with The failure to successfully deliver or principal risks respect to a UK bank or investment firm achieve any of the expected benefits of and certain of its affiliates (currently i) Climate risk these strategic initiatives and/or the failure including Barclays PLC) (each, a relevant The risks associated with climate change to meet customer and stakeholder entity) in circumstances in which the are subject to rapidly increasing societal, expectations could have a material relevant UK resolution authority is satisfied regulatory and political focus, both in the adverse effect on the Group’s business, that the resolution conditions are met. UK and internationally. In line with results of operations, financial condition, The SRR consists of five stabilisation regulatory expectations and requirements, customer outcomes, prospects and options: (i) private sector transfer of all or the Group has embedded climate risk reputation. part of the business or shares of the within the Enterprise Risk Management viii) Holding company structure of relevant entity; (ii) transfer of all or part of Framework (ERMF), to address the Barclays PLC and its dependency on the business of the relevant entity to a financial and operational risks resulting distributions from its subsidiaries ‘bridge bank’ established by the Bank of from: (i) the physical risk of climate change; Barclays PLC is a holding company and its England; (iii) transfer to an asset and (ii) the risk from the transition to a low- principal sources of income are, and are management vehicle wholly or partly carbon economy. Climate risk is expected to continue to be, distributions owned by HM Treasury or the Bank of considered to be a driver of financial and (in the form of dividends and interest England; (iv) the cancellation, transfer or operational risks. payments) from operating subsidiaries dilution of the relevant entities’ equity Physical risks from climate change arise which also hold the principal assets of the (including Barclays PLC’s ordinary share from a number of factors and relate to Group. As a separate legal entity, Barclays capital) and write-down or conversion of specific weather events (acute) and PLC relies on such distributions in order to the relevant entity’s capital instruments longer-term shifts in the climate (chronic). be able to meet its obligations as they fall and liabilities (the bail-in tool); and (v) The nature and timing of extreme weather due (including its payment obligations with temporary public ownership (i.e. events are uncertain, but they are respect to its debt securities) and to nationalisation). increasing in frequency and in the potential create distributable reserves for capital In addition, the relevant UK resolution severity of economic impact. distributions (such as dividends to ordinary authority may, in certain circumstances, in The potential impact on the economy shareholders and share buybacks). accordance with the Banking Act require includes, but is not limited to, lower GDP The ability of Barclays PLC’s subsidiaries to the permanent write-down or conversion growth, higher unemployment, shortage pay dividends and interest and Barclays into equity of any outstanding Tier 1 capital of raw materials and products due to PLC’s ability to receive such distributions instruments, Tier 2 capital instruments and supply chain disruptions and significant from its investments in its subsidiaries and internal MREL prior to, or together with, changes in asset prices and profitability of other entities will be subject not only to the the exercise of any stabilisation option. industries. Damage to the properties and financial performance of such subsidiaries Any such action could result in the dilution operations of borrowers could decrease and entities and prevailing macroeconomic of Barclays PLC’s ordinary share capital,

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 274 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) production capacity, increase operating market expectations on a timely basis, may occur on a timely basis, the Group may fail costs, impair asset values and the have a material and adverse impact on the to achieve its climate-related ambitions and targets and this could have a material creditworthiness of customers leading to Group’s level of business growth, increased default rates, delinquencies, competitiveness, profitability, capital adverse effect on the Group’s business, write-offs and impairment charges in requirements, cost of funding, and results of operations, financial condition, Barclays' portfolios. In addition, the financial condition. prospects and reputation. Group’s premises and resilience may also In March 2020, the Group announced its For further details on the Group’s suffer physical damage due to weather approach to climate change, refer to the ambition to become a net zero bank by events leading to increased costs for the 2050 and its commitment to align all of its climate risk management section. Group. financing activities with the goals and ii) Credit risk As the economy transitions to a low- timelines of the Paris Agreement. In order Credit risk is the risk of loss to the Group carbon economy, financial institutions to reach these ambitions and targets or from the failure of clients, customers or such as the Group face significant and any other climate-related ambitions or counterparties, including sovereigns, to rapid developments in stakeholder targets the Group may commit to in fully honour their obligations to members expectations, policy, law and regulation future, the Group will need to continue to of the Group, including the whole and which could impact the lending activities incorporate climate considerations into its timely payment of principal, interest, the Group undertakes, as well as the risks strategy, business model, the products collateral and other receivables. Credit risk associated with its lending portfolios, and and services it provides to customers and is impacted by a number of factors outside the Group’s control, including wider the value of the Group’s assets. As new its financial and non-financial risk economic conditions. policies and regulations are enforced, management processes (including market sentiment and societal processes to measure and manage the a) Impairment preferences change and new various financial and non-financial risks the Impairment is calculated in line with the Group faces as a result of climate change). technologies emerge, this may result in requirements of IFRS9 which results in increased costs and reduced demand of The Group also needs to ensure that its recognition of loss allowances, based on product and services of a company, early strategy and business model adapt to ECLs, on a forward-looking basis using a retirement and impairment of assets, changing, and sometimes conflicting, broad scope of financial metrics. Measurement involves complex decreased revenue and profitability for national and international standards, judgement and impairment charges are industry and scientific practices, regulatory Barclays customers. This in turn may potentially volatile and may not impact creditworthiness of customers and requirements and market expectations successfully predict actual credit losses, their ability to repay loans. Additionally, the regarding climate change, which remain particularly under stressed conditions. Any Group may face greater scrutiny of the under continuous development and vary failure by the Group to accurately estimate type of business it conducts, adverse between regions, sometimes to a credit losses through ECLs could have a significant extent. There can be no media coverage and reputational damage, material adverse effect on the Group's which may in turn impact customer assurance that these standards, practices, business, results of operations, financial demand for the Group's products, returns requirements and expectations will not condition and prospects. on certain business activities and the value change in a manner that substantially of certain assets and trading positions increases the cost or effort for the Group For further details, refer to Note 8. + to achieve such ambitions and targets. In resulting in impairment charges. addition, the Group’s ambitions and b) Specific portfolios, sectors and Furthermore, the impacts of physical and targets may prove more challenging to concentrations transition climate risks can lead to second achieve due to changing circumstances order connected risks, which have the The Group is subject to risks arising from and potentially volatile external factors potential to affect the Group’s retail and changes in credit quality and recovery which are beyond our control, including wholesale portfolios. The impacts of rates for loans and advances due from geopolitical issues, energy security, energy climate change may increase losses for borrowers and counterparties and is poverty and other considerations such as those sectors sensitive to the effects of subject to a concentration of those risks just transition to a low carbon economy. physical and transition risks. Any where the Group has significant exposures This may be exacerbated if the Group subsequent increase in defaults and rising to borrowers and counterparties in specific chooses or is required to accelerate its unemployment could create recessionary sectors, or to particular types of borrowers climate-related ambitions or targets as a pressures, which may lead to wider and counterparties. Any deterioration in result of UK or international regulatory deterioration in the creditworthiness of the the credit quality of such borrowers and developments or stakeholder Group’s clients, higher expected credit counterparties could lead to lower expectations. losses (ECLs), and increased charge-offs recoverability from loans and advances Achieving the Group’s climate-related and defaults among retail customers. and higher impairment charges. ambitions and targets will also depend on a Accordingly, any of the following areas of From January 2022, climate risk became number of factors outside the Group’s uncertainty could have a material adverse one of the principal risks within the Group’s control, including reliable forecast of impact on the Group's business, results of ERMF. Failure to adequately embed the hazards from the physical climate models, operations, financial condition and financial and operational risks associated availability of data and models to measure prospects: with climate change into its risk framework and assess the climate impact of the to appropriately measure, manage and • Consumer affordability: remains a key Group’s customers, advancements of low- disclose the various financial and area of focus, particularly in unsecured carbon technologies and supportive public operational risks it faces as a result of lending, as the 'cost of living' pressures policies in the markets where the Group climate change or failure to adapt the grow. Macroeconomic factors, such as operates. If these external factors and Group's strategy and business model to unemployment, higher interest rates or other changes do not occur, or do not the changing regulatory requirements and broader inflationary pressures, that

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 275 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) impact a customer’s ability to service events and market volatility during the iii) Market risk debt payments could lead to increased underwriting period, which may result in Market risk is the risk of loss arising from arrears in both unsecured and secured losses for the Group, or increased potential adverse changes in the value of products. capital requirements should there be a the Group’s assets and liabilities from need to hold the exposure for an fluctuation in market variables including, • UK retail, hospitality and leisure: falling extended period. but not limited to, interest rates, foreign demand, rising costs and, for UK retail, a exchange, equity prices, commodity structural shift to online shopping, • Oil & Gas sector: High market energy prices, credit spreads, implied volatilities continue to pressurise sectors heavily prices during 2022 have helped restore and asset correlations. reliant on consumer discretionary balance sheet strength to companies spending. Such sectors may also be operating in this sector. However, in the Economic and financial market adversely impacted by cost of living longer term, costs associated with the uncertainties remain elevated, driven by pressures and other macroeconomic transition towards renewable sources of elevated inflation and tightening monetary factors which affect consumers This energy may place greater financial policy, both of which are exacerbated by represents a potential risk in the Group’s demands on oil and gas companies. the conflict in Ukraine and supply-chain UK corporate portfolio as a higher disruptions caused by the COVID-19 • Air travel: the sector struggled to probability of default exists for retailers, pandemic. A disruptive adjustment to resource for the recovery in lower hospitality providers and their landlords higher interest rate levels and margin (tourist) demand for air travel while these pressures remain. deteriorating trade and geopolitical evidenced in 2022 (after the drop in tensions could heighten market risks for • UK real estate: UK property represents a demand during the pandemic), and to the Group’s portfolios. significant portion of the Group's overall adjust to the structural decline in higher retail and corporate credit exposure and margin business travel. While this In addition, the Group’s trading business is the Group remains at risk of increased transition plays out, there remains a generally exposed to a prolonged period of heightened risk to the revenue streams impairment from a material fall in elevated asset price volatility, particularly if property prices. During 2021 and of the Group’s clients and, it adversely affects market liquidity. Such a continuing through the first half of 2022, consequentially, their ability to service scenario could impact the Group’s ability property prices rose, particularly in the debt obligations. Increasing concerns to execute client trades and may also residential property market where about the impact of air travel on climate result in lower client flow-driven income change will also influence consumer customers sought more space as home and/or market-based losses on its existing working became more prevalent. behaviour, representing additional risks portfolio of market risks. These can include However, rising mortgage interest rates for the sector. higher hedging costs from rebalancing and increasing economic concerns have risks that need to be managed dynamically The Group also has large individual reduced demand and borrowing as market levels and their associated exposures to single name counterparties, capacity which resulted in small house volatilities change. (such as brokers, central clearing houses, price decreases in Q4 2022. This is likely dealers, banks, mutual and hedge funds Changes in market conditions could have a to continue in 2023, especially in London and other institutional clients) both in its material adverse effect on the Group’s and the South East of the UK where the lending and trading activities, including business, results of operations, financial Group has a high exposure. Additionally, derivative trades. The default of one such condition and prospects. as mortgages roll off existing rates and counterparty could cause contagion For further details on the Group’s approach to onto new rates at higher levels, there is a across clients involved in similar activities + market risk, refer to the market risk management and risk of increasing borrower defaults market risk performance sections. and/or adversely impact asset values which could then put further downward should margin calls necessitate rapid asset iv) Treasury and capital risk pressure on property prices and in turn disposals by that counterparty to raise impact the Group’s impairment and There are three primary types of treasury liquidity. In addition, where such capital position. Furthermore, small and capital risk faced by the Group: counterparty risk has been mitigated by segments of the housing market could taking collateral, credit risk may remain a) Liquidity risk be subject to specific valuation impacts high if the collateral held cannot be Liquidity risk is the risk that the Group is (for example, certain properties within monetised, or has to be liquidated at prices unable to meet its contractual or the Group's residential loan portfolio which are insufficient to recover the full contingent obligations or that it does not may be subject to remediation activities amount of the loan or derivative exposure. have the appropriate amount, tenor and relating to fire safety standards). The Any such defaults could have a material composition of funding and liquidity to Group’s corporate exposure is adverse effect on the Group’s results due support its assets. This could cause the vulnerable to a deteriorating economic to, for example, increased credit losses Group to fail to meet regulatory and/or environment and (for offices in and higher impairment charges. internal liquidity requirements, make particular) post COVID-19 pandemic repayments of principal or interest as they For further details on the Group’s approach to credit structural shifts, such as the + risk, refer to the credit risk management and credit risk fall due or to support day-to-day business performance sections. normalisation of remote working. activities. Key liquidity risks that the Group Landlords serving discretionary faces include: consumer spending sector tenants are • Stability of the Group’s deposit funding also at risk from reduced rent collection. profile: deposits which are payable on • Leveraged finance underwriting: the demand or at short notice could be Group takes on non-investment grade adversely affected by the Group failing underwriting exposure, including single to preserve the current level of name risk, particularly in the US and the customer and investor confidence or as UK. The Group is exposed to credit

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 276 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) a result of competition in the banking environments and stressed conditions (non-traded) assets and liabilities. The industry. (both actual and as defined for internal Group’s hedging programmes for interest planning or regulatory stress testing rate risk in the banking book rely on • Ongoing access to wholesale funding: purposes). This also includes the risk from behavioural assumptions and, as a result, the Group regularly accesses the money the Group’s pension plans. Key capital risks the effectiveness of the hedging strategy and capital markets to provide short- that the Group faces include: cannot be guaranteed. A potential term and long-term unsecured and mismatch in the balance or duration of the secured funding to support its • Failure to meet prudential capital hedging assumptions could lead to requirements: this could lead to the operations. A loss of counterparty earnings deterioration if there are interest Group being unable to support some or confidence, or adverse market rate movements which are not adequately all of its business activities, a failure to conditions (such as the recent rises in hedged. A decline in interest rates may pass regulatory stress tests, increased interest rates) could lead to a reduction cost of funding due to deterioration in also compress net interest margin on retail in the tenor, or an increase in the costs, investor appetite or credit ratings, and corporate portfolios. In addition, the of the Group’s unsecured and secured restrictions on distributions (including in Group’s liquid asset portfolio is exposed to wholesale funding or affect the Group’s respect of its shares and/or additional potential capital and/or income volatility access to such funding. tier 1 instruments), leading to the due to movements in market rates and • Impacts of market volatility: adverse inability to comply with the Group's prices which may have a material adverse dividend policy and/or the need to take market conditions, with increased effect on the capital position of the Group. additional measures to strengthen the volatility in asset prices could: (i) For further details on the Group’s approach to Group’s capital or leverage position. negatively impact the Group’s liquidity + treasury and capital risk, refer to the treasury and • Adverse changes in FX rates impacting position through increased derivative capital risk management and treasury and capital risk performance sections. capital ratios: the Group has capital margin requirements and/or wider resources, risk weighted assets and haircuts when monetising liquidity pool v) Operational risk leverage exposures denominated in securities; and (ii) make it more difficult Operational risk is the risk of loss to the foreign currencies. Changes in foreign for the Group to execute secured Group from inadequate or failed processes currency exchange rates may adversely financing transactions. or systems, human factors or due to impact the sterling equivalent value of • Intraday liquidity usage: increased external events where the root cause is these items. As a result, the Group’s collateral requirements for payments not due to credit or market risks. Examples regulatory capital ratios are sensitive to and securities settlement systems could include: foreign currency movements. Failure to negatively impact the Group’s liquidity appropriately manage the Group’s a) Operational resilience position, as cash and liquid assets balance sheet to take account of foreign The Group functions in a highly required for intraday purposes are currency movements could result in an competitive market, with customers and unavailable to meet other outflows. adverse impact on the Group’s clients that expect consistent and smooth • Off-balance sheet commitments: regulatory capital and leverage ratios. business processes. The loss of or deterioration in economic and market • Adverse movements in the pension disruption to business processing is a conditions could cause customers to fund: adverse movements in pension material inherent risk within the Group and draw on off-balance sheet assets and liabilities for defined benefit across the financial services industry, commitments provided to them, for pension schemes could result in deficits whether arising through failures in the example revolving credit facilities, on a technical provision and/or IAS 19 Group’s technology systems, closure of negatively affecting the Group’s liquidity accounting basis. This could lead to the the Group's real estate services including position. Group making substantial additional its retail branch network, or availability of • Credit rating changes and impact on contributions to its pension plans and/or personnel or services supplied by third funding costs: any reductions in a credit a deterioration in its capital position. The parties. Failure to build resilience and rating (in particular, any downgrade market value of pension fund assets recovery capabilities into business below investment grade) may affect the might decline; or investment returns processes or into the services on which Group’s access to the money or capital might reduce. Under IAS 19, the the Group’s business processes depend, markets and/or terms on which the liabilities discount rate is derived from may result in significant customer Group is able to obtain market funding the yields of high-quality corporate detriment, costs to reimburse losses (for example, this could lead to bonds. Therefore, the valuation of the incurred by the Group’s customers, and increased costs of funding and wider Group’s defined benefits schemes reputational damage. credit spreads, the triggering of would be adversely affected by a b) Cyberattacks additional collateral or other prolonged fall in the discount rate due to Cyberattacks continue to be a global requirements in derivative contracts and a persistent low interest rate and/or threat that is inherent across all industries, other secured funding arrangements, or credit spread environment. Inflation is with the number and severity of attacks limits on the range of counterparties another significant risk driver to the continuing to rise. The financial sector who are willing to enter into transactions pension fund as the liabilities are remains a primary target for with the Group). adversely impacted by an increase in cybercriminals, hostile nation states, long-term inflation expectations. b) Capital risk opportunists and hacktivists. The Group, c) Interest rate risk in the banking book Capital risk is the risk that the Group has an like other financial institutions, experiences Interest rate risk in the banking book is the insufficient level or composition of capital numerous attempts to compromise its risk that the Group is exposed to capital or to support its normal business activities cybersecurity protections. income volatility because of a mismatch and to meet its regulatory capital The Group dedicates significant resources between the interest rate exposures of its requirements under normal operating to reducing cybersecurity risks, but it

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 277 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) cannot provide absolute security against contractors, and third party service For further details on the Group’s approach to cyberattacks, see the operational risk + cyberattacks. Malicious actors are providers and suppliers and their performance section. For further details on increasingly sophisticated in their subcontractors as a long-term cybersecurity regulation applicable to the Group, refer to the Supervision and regulation methods, tactics, techniques and consequence of the COVID-19 pandemic. section. procedures, seeking to steal money, gain Bad actors have taken advantage of unauthorised access to, destroy or remote working practices and modified c) New and emergent technology manipulate data, and disrupt operations, customer behaviours, exploiting the Technology is fundamental to the Group’s and some of their attacks may not be situation in novel ways that may elude business and the financial services recognised or discovered until launched or defences. Additionally, geopolitical turmoil industry. Technological advancements after initial entry into the environment, may serve to increase the risk of a present opportunities to develop new and such as novel or zero-day attacks that are cyberattack that could impact Barclays innovative ways of doing business across launched before patches are available and directly, or indirectly through its critical the Group, with new solutions being defences can be readied. Malicious actors suppliers or national infrastructure. In developed both in-house and in are also increasingly developing methods 2022, the Group faced a heightened risk of association with third party companies. For to avoid prevention, detection and alerting cyberattack as a result of the conflict in example, payment services and securities, capabilities, including employing counter- Ukraine. futures and options trading are forensic tactics making response activities increasingly occurring electronically, both Common types of cyberattacks include more difficult. Cyberattacks can originate on the Group’s own systems and through deployment of malware to obtain covert from a wide variety of sources and target other alternative systems, and becoming access to systems and data; ransomware the Group in numerous ways, including automated. Whilst increased use of attacks that render systems and data attacks on networks, systems, applications electronic payment and trading systems unavailable through encryption and or devices used by the Group or parties and direct electronic access to trading attempts to leverage business interruption such as service providers and other markets could significantly reduce the or stolen data for extortion; novel or zero- suppliers, counterparties, employees, Group’s cost base, it may, conversely, day exploits; denial of service and contractors, customers or clients, reduce the commissions, fees and margins distributed denial of service (DDoS) presenting the Group with a vast and made by the Group on these transactions attacks; infiltration via business email complex defence perimeter. Moreover, which could have a material adverse effect compromise; social engineering, including the Group does not have direct control on the Group’s business, results of phishing, vishing and smishing; automated over the cybersecurity of the systems of operations, financial condition and attacks using botnets; third-party its clients, customers, counterparties and prospects. customer, vendor, service provider and third-party service providers and suppliers, supplier account take-over; malicious Introducing new forms of technology, limiting the Group’s ability to effectively activity facilitated by an insider; and however, has the potential to increase protect and defend against certain threats. credential validation or stuffing attacks inherent risk. Failure to evaluate, actively Some of the Group’s third-party service using login and password pairs from manage and closely monitor risk during all providers and suppliers have experienced unrelated breaches. A successful phases of business development and successful attempts to compromise their cyberattack of any type has the potential implementation could introduce new cybersecurity. These included to cause serious harm to the Group or its vulnerabilities and security flaws and have a ransomware attacks that disrupted the clients and customers, including exposure material adverse effect on the Group’s service providers’ or suppliers’ operations to potential contractual liability, claims, business, results of operations, financial and, in some cases, had an impact on the litigation, regulatory or other government condition and prospects. Group's operations. Such cyberattacks are action, loss of existing or potential d) External fraud likely to continue. customers, damage to the Group’s brand The nature of fraud is wide-ranging and and reputation, and other financial loss. A failure in the Group’s adherence to its continues to evolve, as criminals seek cybersecurity policies, procedures or The impact of a successful cyberattack opportunities to target the Group’s controls, employee malfeasance, and also is likely to include operational business activities and exploit changes in human, governance or technological error consequences (such as unavailability of customer behaviour and product and could also compromise the Group’s ability services, networks, systems, devices or channel use (such as the increased use of data) remediation of which could come at to successfully prevent and defend against digital products and enhanced online cyberattacks. Furthermore, certain legacy significant cost. services) or exploit new products. Fraud technologies that are at or approaching Regulators worldwide continue to attacks can be very sophisticated and are end-of-life may not be able to maintain recognise cybersecurity as an increasing often orchestrated by organised crime acceptable levels of security. The Group systemic risk to the financial sector and groups who use various techniques to has experienced cybersecurity incidents have highlighted the need for financial target customers and clients directly to and near-misses in the past, and it is institutions to improve their monitoring obtain confidential or personal information inevitable that additional incidents will and control of, and resilience to that can be used to commit fraud. The UK occur in the future. Cybersecurity risks are cyberattacks. A successful cyberattack market has also seen significant growth in expected to increase, due to factors such may, therefore, result in significant ‘scams’ where the Group takes increased as the increasing demand across the regulatory fines on the Group. In addition, levels of liability as part of a voluntary code industry and customer expectations for any new regulatory measures introduced to provide additional safeguards to continued expansion of services delivered to mitigate these risks are likely to result in customers and clients who are tricked into over the Internet; increasing reliance on increased technology and compliance making payments to fraudsters. The Internet-based products, applications and costs for the Group. impact from fraud can lead to customer data storage; and changes in ways of detriment, financial losses (including the working by the Group’s employees, reimbursement of losses incurred by

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 278 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) customers), loss of business, missed require changes to certain operations or to clients and counterparties in a timely practices which could also inhibit the business opportunities and reputational manner; (ii) failing to settle and/or confirm Group’s development or marketing of damage, all of which could have a material transactions; (iii) causing funds transfers, certain products or services, or increase adverse impact on the Group’s business, capital markets trades and/or other the costs of offering them to customers. results of operations, financial condition transactions to be executed erroneously, Any of these events could damage the and prospects. illegally or with unintended consequences; Group’s reputation, subject the Group to and (iv) adversely affecting financial, e) Data management and information material fines or other monetary penalties, trading or currency markets. Any of these protection make the Group liable to the payment of events could materially disadvantage the The Group holds and processes large compensatory damages, divert Group’s customers, clients and management's time and attention, lead to volumes of data, including personal counterparties (including them suffering enhanced regulatory oversight and information, financial data and other financial loss) and/or result in a loss of otherwise materially adversely affect its confidential information, and the Group’s confidence in the Group which, in turn, business, results of operations, financial businesses are subject to complex and could have a material adverse effect on the condition and prospects. evolving laws and regulations governing Group’s business, results of operations, the privacy and protection of data, For further details on data protection regulation financial condition and prospects. + applicable to the Group, refer to the supervision and including Regulation (EU) 2016/679 regulation section. h) Supplier exposure (General Data Protection Regulation as it applies in the EU and the UK). This data The Group depends on suppliers for the f) Algorithmic trading could relate to: (i) the Group’s clients, provision of many of its services and the In some areas of the investment banking customers, prospective clients and development of technology. Whilst the business, trading algorithms are used to customers and their employees; (ii) clients Group depends on suppliers, it remains price and risk manage client and principal and customers of the Group’s clients and fully accountable to its customers and transactions. An algorithmic error could customers and their employees;(iii) the clients for risks arising from the actions of result in erroneous or duplicated Group’s suppliers, counterparties and suppliers and may not be able to recover transactions, a system outage, or impact other external parties, and their from its suppliers any amounts paid to the Group’s pricing abilities, which could employees; and (iv) the Group’s customers and clients for losses suffered have a material adverse effect on the employees and prospective employees. by them. The dependency on suppliers and Group’s business, results of operations, sub-contracting of outsourced services The international nature of both the financial condition, prospects and introduces concentration risk where the Group’s business and its IT infrastructure reputation. failure of specific suppliers could have an also means that data and personal g) Processing errors information may be available in countries impact on the Group’s ability to continue The Group’s businesses are highly other than those from where the to provide material services to its dependent on its ability to process and information originated. Accordingly, the customers. Failure to adequately manage Group must ensure that its collection, use, monitor, on a daily basis, a very large supplier risk could have a material adverse transfer and storage of data, including number of transactions, many of which are effect on the Group’s business, results of personal information, complies with all highly complex and occur at high volumes operations, financial condition and applicable laws and regulations in all and frequencies, across numerous and prospects. relevant jurisdictions, which could: (i) diverse markets in many currencies. As the increase the Group’s compliance and Group’s customer base and geographical operating costs; (ii) impact the reach expand and the volume, speed, development of new products or services frequency and complexity of transactions, or the offering of existing products or especially electronic transactions (as well services; (iii) affect how products and as the requirements to report such services are offered to clients and transactions on a real-time basis to clients, customers; (iv) demand significant regulators and exchanges) increase, oversight by the Group’s management; developing, maintaining and upgrading and (v) require the Group to review some operational systems and infrastructure elements of the structure of its businesses, operations and systems in less becomes more challenging, and the risk of efficient ways. Concerns regarding the systems or human error in connection with effectiveness of the Group’s measures to such transactions increases, as well as the safeguard data, including personal potential consequences of such errors due information, or even the perception that to the speed and volume of transactions those measures are inadequate, could involved and the potential difficulty expose the Group to the risk of loss or associated with discovering errors quickly unavailability of data or data integrity enough to limit the resulting issues and/or cause the Group to lose consequences. Furthermore, events that existing or potential clients and customers, are wholly or partially beyond the Group’s and thereby reduce the Group’s revenues. control, such as a spike in transaction Furthermore, any failure or perceived volume, could adversely affect the Group’s failure by the Group to comply with ability to process transactions or provide applicable privacy or data protection laws banking and payment services. and regulations may subject it to potential contractual liability, claims, litigation, Processing errors could result in the regulatory or other government action Group, among other things: (i) failing to (including significant regulatory fines) and provide information, services and liquidity

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 279 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) i) Estimates and judgements relating to minimum tax on adjusted financial data. For instance, the quality of the data critical accounting policies and statement income effective from 1 used in models across the Group has a regulatory disclosures January 2023. These new tax regimes may material impact on the accuracy and require systems and process changes. Any completeness of its risk and financial The preparation of financial statements systems and process changes introduce metrics. Model uncertainty, errors and requires the application of accounting additional operational risk. inappropriate use may result in (among policies and judgements to be made in k) Ability to hire and retain appropriately other things) the Group making accordance with IFRS. Regulatory returns qualified employees inappropriate business decisions and/or and capital disclosures are prepared in As a regulated financial institution, the inaccuracies or errors in the Group’s risk accordance with the relevant capital Group requires diversified and specialist management and regulatory reporting reporting requirements and also require skilled colleagues. The Group’s ability to processes. This could result in significant assumptions and estimates to be made. attract, develop and retain a diverse mix of financial loss, imposition of additional The key areas involving a higher degree of talent is key to the delivery of its core capital requirements, enhanced regulatory judgement or complexity, or areas where business activity and strategy. This is supervision and reputational damage, all of assumptions are significant to the impacted by a range of external and which could have a material adverse effect consolidated and individual financial internal factors, such as macroeconomic on the Group’s business, results of statements, include credit impairment factors, labour and immigration policy in operations, financial condition and provisions, taxes, fair value of financial the jurisdictions in which the Group prospects. instruments, goodwill and intangible operates, industry-wide headcount assets, pensions and post-retirement For further details on the Group’s approach + to model risk, refer to the model risk reductions in particular sectors, regulatory benefits, and provisions including conduct management and model risk performance limits on compensation for senior and legal, competition and regulatory sections. executives and the potential effects on matters (refer to the notes to the audited employee engagement and wellbeing from financial statements for further details). vii) Conduct risk long-term periods of working remotely. There is a risk that if the judgement Conduct risk is the risk of poor outcomes Failure to attract or prevent the departure exercised, or the estimates or for, or harm to, customers, clients and of appropriately qualified and skilled assumptions used, subsequently turn out markets, arising from the delivery of the employees could have a material adverse to be incorrect, this could result in material Group's products and services. This risk effect on the Group’s business, results of losses to the Group, beyond what was could manifest itself in a variety of ways, operations, financial condition and anticipated or provided for. Further including: prospects. Additionally, this may result in development of accounting standards and a) Market conduct disruption to service which could in turn regulatory interpretations could also The Group’s businesses are exposed to lead to customer detriment and materially impact the Group’s results of risk from potential non-compliance with its reputational damage. operations, financial condition and policies and standards and instances of prospects. For further details on the Group’s approach wilful and negligent misconduct by + to operational risk, refer to the operational j) Tax risk risk management and operational risk employees, all of which could result in performance sections. The Group is required to comply with the potential customer and client detriment, domestic and international tax laws and enforcement action (including regulatory vi) Model risk practice of all countries in which it has fines and/or sanctions), increased business operations. There is a risk that Model risk is the potential for adverse operation and compliance costs, redress the Group could suffer losses due to consequences from decisions based on or remediation or reputational damage additional tax charges, other financial costs incorrect or misused model outputs and which in turn could have a material adverse or reputational damage as a result of failing reports. The Group relies on models to effect on the Group’s business, financial to comply with such laws and practice support a broad range of business and risk condition and prospects. Examples of (including where the Group’s interpretation management activities, including informing employee misconduct which could have a of such laws differs from the interpretation business decisions and strategies, material adverse effect on the Group’s of tax authorities), or by failing to manage measuring and limiting risk, valuing business include: (i) improperly selling or its tax affairs in an appropriate manner, exposures (including the calculation of with much of this risk attributable to the marketing the Group’s products and impairment), conducting stress testing, international structure of the Group. In services; (ii) engaging in insider trading, calculating RWAs and assessing capital addition, the introduction of new market manipulation or unauthorised adequacy, supporting new business international tax regimes, increasing tax trading; or (iii) misappropriating acceptance, risk and reward evaluation, authority focus on reporting and disclosure confidential or proprietary information requirements around the world as well as managing client assets, and meeting belonging to the Group, its customers or the digitisation of the administration of tax reporting requirements. third parties. These risks may be have the potential to increase the Group’s Models are, by their nature, imperfect exacerbated in circumstances where the tax compliance obligations further. The representations of reality and have some Group is unable to rely on physical OECD and G20 Inclusive Framework on degree of uncertainty because they rely on oversight and supervision of employees, Base Erosion and Profit Shifting has assumptions and inputs, and so are subject noting the move to a hybrid working model announced plans to introduce a global to intrinsic uncertainty, errors and for many colleagues. minimum tax from 2023. UK legislation to inappropriate use affecting the accuracy of implement these rules is expected to apply b) Customer protection their outputs. This may be exacerbated from 1 January 2024 which will increase The Group must ensure that its when dealing with unprecedented the Group's tax compliance obligations. In customers, particularly those that are addition, the US enacted the Inflation scenarios, as was the case during the vulnerable, are able to make well-informed Reduction Act in August 2022 which COVID-19 pandemic, due to the lack of decisions on how best to use the Group’s introduced a corporate alternative reliable historical reference points and

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 280 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) financial services and understand the Group operates. Understanding the carbon intensity or local environmental protection available to them if something Conflicts of Interest that impact or impact; (ii) potential association with goes wrong. Poor customer outcomes can potentially impact the Group enables human rights violations (including result from the failure to: (i) communicate them to be handled appropriately. Even if combating modern slavery) in the Group’s fairly and clearly with customers; (ii) there is no evidence of improper actions, a operations or supply chain and by clients provide services in a timely and fair Conflict of Interest can create an and customers; and (iii) the financing of manner; (iii) handle and protect customer appearance of impropriety that businesses which manufacture and export data appropriately; and (iv) undertake undermines confidence in the Group and military and riot control goods and appropriate activity to address customer its Employees. If the Group does not services. detriment, including the adherence to identify and manage Conflicts of Interest Reputation risk could also arise from regulatory and legal requirements on (business or personal) appropriately, it negative public opinion about the actual, or complaint handling. The Group is at risk of could have an adverse effect on the perceived, manner in which the Group financial loss and reputational damage as a Group’s business, customers and the (including its employees, clients and other result. markets within which it operates. associations) conducts its business A key area of focus is the implementation f) Regulatory focus on culture and activities, or the Group’s financial accountability and embedment of the FCA’s new performance, as well as actual or perceived Consumer Duty, with rules for open practices in banking and the financial Regulators around the world continue to products and services due to take effect at services industry generally. Modern emphasise the importance of culture and the end July 2023. This will impact areas technologies, in particular, online social personal accountability and enforce the including governance and accountability, media channels and other broadcast tools adoption of adequate internal reporting MI and reporting, communications, that facilitate communication with large and whistleblowing procedures to help to product design and end-to-end customer audiences in short time frames and with promote appropriate conduct and drive journeys. The Group may be required to minimal costs, may significantly enhance positive outcomes for customers, incur significant additional expense in and accelerate the distribution and effect colleagues, clients and markets. The connection with this regulatory change. of damaging information and allegations. requirements and expectations of the UK Negative public opinion may adversely Senior Managers Regime, Certification c) Product design and review risk affect the Group’s ability to retain and Regime and Conduct Rules reinforce Products and services must meet the attract customers, in particular, corporate additional accountabilities for individuals needs of clients, customers, markets and and retail depositors, and to retain and across the Group, with an increased focus the Group throughout their life cycle, motivate staff, and could have a material on governance and rigour, with similar However, there is a risk that the design and adverse effect on the Group’s business, requirements also introduced in other review of the Group’s products and results of operations, financial condition jurisdictions globally. Failure to meet these services fail to reasonably consider and and prospects. requirements and expectations may lead address potential or actual negative to regulatory sanctions, both for the In addition to the above, reputation risk has outcomes for customers, which may result individuals and the Group. the potential to arise from operational in customer detriment, enforcement issues or conduct matters which cause For further details on the Group’s approach action (including regulatory fines and/or + to conduct risk, refer to the conduct risk detriment to customers, clients, market sanctions), redress and remediation and management and conduct risk performance integrity, effective competition or the sections. reputational damage. Both the design and Group (refer to ‘v) Operational risk’ above). review of products and services are a key viii) Reputation risk area of focus for regulators and the Group. For further details on the Group’s approach + to reputation risk, refer to the reputation Reputation risk is the risk that an action, d) Financial crime risk management and reputation risk transaction, investment, event, decision or performance sections. The Group may be adversely affected if it business relationship will reduce trust in fails to effectively mitigate the risk that ix) Legal risk and legal, competition and the Group’s integrity and/or competence. third parties or its employees facilitate, or regulatory matters Any material lapse in standards of integrity, that its products and services are used to The Group conducts activities in a highly compliance, customer service or operating facilitate, financial crime (money regulated global market which exposes it efficiency may represent a potential laundering, terrorist financing, breaches of and its employees to legal risk arising from: reputation risk. Stakeholder expectations economic and financial sanctions, bribery (i) the multitude of laws and regulations constantly evolve, and so reputation risk is and corruption, and the facilitation of tax that apply to the businesses it operates, dynamic and varies between geographical evasion). UK and US regulations covering which are highly dynamic, may vary regions, groups and individuals. A risk financial institutions continue to focus on between jurisdictions and/or conflict, and arising in one business area can have an combating financial crime. Failure to may be unclear in their application to adverse effect upon the Group’s overall comply may lead to enforcement action by particular circumstances especially in new reputation and any one transaction, the Group’s regulators, including severe and emerging areas; and (ii) the diversified investment or event (in the perception of penalties, which may have a material and evolving nature of the Group’s key stakeholders) can reduce trust in the adverse effect on the Group’s business, businesses and business practices. In each Group’s integrity and competence. The financial condition, prospects and case, this exposes the Group and its Group’s association with sensitive topics reputation. employees to the risk of loss or the and sectors has been, and in some e) Conflicts of interest imposition of penalties, damages or fines instances continues to be, an area of from the failure of members of the Group Identifying and managing Conflicts of concern for stakeholders, including: (i) the to meet their respective obligations, Interest is fundamental to the conduct of financing of, and investments in, including legal, regulatory or contractual the Group's business, relationships with businesses which operate in sectors that requirements. Legal risk may arise in Customers, and the markets in which the are sensitive because of their relative

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 281 report information sustainability report Governance review review statements Annual Report 2022 Material existing and emerging risks (continued) relation to any number of the material against the Group for financing or existing and emerging risks identified contributing to climate change and above. environmental degradation. A breach of applicable legislation and/or The outcome of legal, competition and regulatory matters, both those to which regulations by the Group or its employees the Group is currently exposed and any could result in criminal prosecution, others which may arise in the future, is regulatory censure, potentially significant difficult to predict (and any provision made fines and other sanctions in the in the Group’s financial statements relating jurisdictions in which the Group operates. to those matters may not be sufficient to Where clients, customers or other third cover actual losses). In connection with parties are harmed by the Group’s such matters, the Group may incur conduct, this may also give rise to civil legal significant expense, regardless of the proceedings, including class actions. Other ultimate outcome, and any such matters legal disputes may also arise between the could expose the Group to any of the Group and third parties relating to matters following outcomes: substantial monetary such as breaches or enforcement of legal damages, settlements and/or fines; rights or obligations arising under remediation of affected customers and contracts, statutes or common law. clients; other penalties and injunctive relief; additional litigation; criminal prosecution; Adverse findings in any such matters may the loss of any existing agreed protection result in the Group being liable to third from prosecution; regulatory restrictions parties or may result in the Group’s rights on the Group’s business operations not being enforced or not being enforced including the withdrawal of authorisations; in the manner intended or desired by the increased regulatory compliance Group. requirements or changes to laws or Details of legal, competition and regulatory regulations; suspension of operations; matters to which the Group is currently public reprimands or censure; loss of exposed are set out in Note 26. In addition significant assets or business; a negative effect on the Group’s reputation; loss of to matters specifically described in Note confidence by investors, counterparties, 26, the Group is engaged in various other clients and/or customers; risk of credit legal proceedings which arise in the rating agency downgrades; potential ordinary course of business. The Group is negative impact on the availability and/or also subject to requests for information, cost of funding and liquidity; and/or investigations and other reviews by dismissal or resignation of key individuals. regulators, governmental and other public In light of the uncertainties involved in bodies in connection with business legal, competition and regulatory matters, activities in which the Group is, or has there can be no assurance that the been, engaged and may (from time to outcome of a particular matter or matters time) be subject to legal proceedings and (including formerly active matters or those other investigations relating to financial arising after the date of this Annual Report) and non-financial disclosures made by will not have a material adverse effect on members of the Group (including, but not the Group’s business, results of operations, financial condition and limited to, in relation to ESG disclosures). prospects. Additionally, due to the increasing number of new climate and sustainability-related laws and regulations (or laws and regulatory processes and policies (including approach to fiduciary duties) seeking to protect the energy and other high carbon sectors from any risks of divestment or challenges in accessing finance), growing demand from investors and customers for environmentally sustainable products and services, and regulatory scrutiny, financial institutions, including the Group, may through their business activities face increasing litigation, conduct, enforcement and contract liability risks related to climate change, environmental degradation and other social, governance and sustainability-related issues. Furthermore, there is a risk that shareholders, campaign groups, customers and other interest groups could seek to take legal action

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 282 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management To support the oversight of Barclays’ The elevation of climate risk to Principal Climate risk management climate risk profile, a Climate Risk Risk included establishment of governance The impact on Financial and Operational Committee (CRC) has been established as elements, including: Risks arising from climate change through a sub-committee of the GRC. Authority of • a Climate Risk Framework that defines physical risks, risks associated with the CRC is delegated by the GRC. climate risk and summarises the transitioning to a lower carbon economy CRC is chaired by Head of Climate Risk. approach to identification, and connected risks arising as a result of CRC has reviewed and approved a range of measurement, monitoring and reporting second order impacts of these two drivers updates including a refreshed Climate Risk of climate risk on portfolios. Vision, updates from each of the financial • Climate Risk Appetite and constraint at Overview and operational risks and from the material Group level established in line with the Given the risks associated with climate legal entities of the firm, along with key Group’s risk appetite approach and change, and to support the Group’s regulatory, policy and legal themes, the risk informed by scenario analysis ambition to be a net zero bank by 2050, register and appetite statement and • Climate Risk Register is used to inform climate risk became a Principal Risk in constraint, and reviewed the control risk appetite. This includes a breakdown January 2022. To support the embedment environment. of key risk drivers for physical and of the Principal Risk, in 2022 the Group The Climate Risk Control Forum (CRCF) transition risks, and materiality ratings delivered a Climate Risk Plan with three was established in July 2022 and escalates which are inferred from the results of overarching objectives: to GRC via the Group Controls the 2020 climate Internal Stress Test 1. Governance Framework: Establish a Committee. The purpose of the CRCF is to and 2021 Bank of England’s Climate Climate Risk Committee, a Climate Risk oversee the consistent and effective Biennial Exploratory Scenario (CBES). Controls Forum, and refresh the Board implementation and operation of the The Climate Risk Register continues to Risk Committee reporting Barclays Controls Framework as relating to align with the Group’s Risk Register 2. Scenario Analysis: Build out the vision Climate risk. It reviews the control Taxonomy. and plan for undertaking scenario environment relating to Climate risk, Further details on our Scenario Analysis can be found analysis exercises. This involved including risk events, policy and issues + from page 128 developing a climate scenario analysis management. Climate risk assurance framework Climate risk across Financial and groups have been established and are Operational Risks is managed via a Climate responsible for performing Climate risk 3. Carbon Modelling: Expand the TM Change Financial Risk and Operational Risk specific reviews to ensure we are BlueTrack model for measuring and Policy (CCFOR), which is embedded in continually improving and addressing tracking financed emissions to cover our each of the Financial and Operational identified issues in our risk practices. automobiles and residential real estate Principal Risk Frameworks. portfolios, in addition to energy, power, Barclays entities, namely Barclays Bank UK, cement and steel. Climate risk across Model, Conduct, Barclays International, Barclays Bank Reputation and Legal Principal Risks are Ireland and the US Intermediate Holding Organisation, roles and responsibilities out of the scope of the Climate Risk Company, also continued to implement On behalf of the Board, the Board Risk Framework and continue to be managed Climate risk within their frameworks, where Committee (BRC) reviews and approves under their respective Principal Risk Heads of Climate Risk have been the Group’s approach to managing the Frameworks. appointed. financial and operational risks associated with climate change. Reputation risk is the responsibility of the Board, which directly handles the most material issues facing Enterprise Risk Framework (ERMF) the Group. Broader sustainability matters and other reputation risk issues associated Reputation Risk Management with climate change are coordinated by Climate Risk Framework (CRF) Governance Framework (RRMF) the Sustainability Team. The Head of Climate Risk reports directly to the Group Chief Risk Officer. Board Risk Committee (BRC) Board The Group Risk Committee (GRC) is the most senior executive body responsible for review and challenge of risk practices Credit, market, treasury & capital Sustainability matters and reputation Risk and risk profile, for climate risk and other and operational risks risk associated with climate change principal risk types. Global Head of Public Policy and Group Risk Committee (GRC) Corporate Responsibility Ownership Climate Risk Committee (CRC)

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 283 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) Risk appetite An assessment of progress to reduce on a Client Transition Framework which will financed emissions against the disclosed support our evaluation of our corporate In 2022, as part of establishing Climate risk targets was made. It noted that reaching clients' current and expected future as a principal risk, Barclays defined a risk even the lower emissions reduction in the progress as they transition to a low-carbon appetite statement and constraint for disclosed ranges may prove challenging business model and we are continuing to climate risk. The statement outlines that and that a clearer forward plan be defined invest in developing tools that will enhance Barclays views climate change as a driver to set out the range of management the quality of our forecasting and better of financial and operational risk. Barclays actions that could be taken to meet the understand the potential volatility in our has appetite to manage climate risk in line disclosed target ranges, including a more progress over the remaining target period. with its climate ambition and to reduce detailed understanding of client transition financed emissions in line with disclosed Further details on Barclays' disclosed targets can be + found in the Climate and Sustainability report expectations and the external targets. Targets to 2025 are set for Energy dependencies and variables beyond and Power. Targets to 2030 are set for Barclays' control that may determine the Energy, Power, Cement, Steel and pace of transition. Work has commenced Automotive Manufacturing. The table below sets out how climate risk is integrated across Barclays using the ERMF aligned Climate Risk Framework, CCFOR and the Climate Change Standard. Enterprise Risk Management Framework (ERMF) Climate Risk Framework Climate Change Climate Change Financial Risk and Operational Risk Policy Standard Responsibilities Climate Risk Credit Risk Market Risk Treasury and Capital Risk Operational Risk Reputation Risk • Provide climate • Monitor portfolio • Identify and • Identify exposure • Integrate climate • Outline minimum horizon scanning level exposure to Assess climate- to climate risk change across requirements and information and the physical and related risk factors different risk controls for • Consider key risk emerging trends transition risks of categories, e.g. Reputation Risk • Apply stress indicators and to BRC and climate change Operational management scenarios, assess limits to support Principal Risk Recovery Planning relating to client • Review individual stress losses and risk management Leads and Premises relationships or obligors’ exposure set risk limits • Include in ICAAP transactions • Recommend risk to climate risk via • Include climate • Oversight by and ILAAP appetite the Climate Lens change within risk • Outline the Market Risk • Oversight by statement, questionnaire assessment expected business Committee and Treasury & Capital constraints and processes behaviours in • Assess climate risk Board Risk Risk Committee exclusions to BRC including Strategic relation to these within Sovereign Committee and Board Risk Risk Assessment issues • Define areas of Credit Risk reviews Committee concern and • Outline the • Include material recommend approach to exposures to scenario analysis enhanced due climate risk within priorities diligence. the Internal Capital • Lead the Adequacy development of Assessment climate-specific Process (ICAAP) risk • Oversight by Legal methodologies Entity Climate Risk • Interpret stress Forums and test results for relevant Risk relevance as Management drivers of risk Committees as appropriate, • Review and including regular challenge risk type climate risk approaches and reporting up to support Board Risk consistency Committee level across risk types • Aggregate and monitor a central climate risk view across in scope risk types Climate Risk Credit Risk Market Risk Treasury & Capital Operational Risk Group Head of Ownership Accountable Officer Accountable Officer Accountable Officer Risk Accountable Accountable Officer Sustainability Officer Read more on Read more on Read more on Read more on Read more on + + + + + pages 285-286 pages 286-287 pages 287-288 pages 288-289 page 289

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 284 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) Climate-related Risk Management Processes Credit Risk Market Risk Treasury and Capital Risk Operational Risk Annually Quarterly Various (quarterly for Annually Frequency of pensions, IRRBB and liquidity assessment risk; annually for capital risk) Identified through risk Confirmed operational risks Exposure in mortgage Identified by assessing Risk identification portfolio identified through a climate-related risk factors assessment activity across associated with climate concentration risk across asset classes, certain industries and asset change are included in the framework. sectors and geographies, classes to analyse and Bank’s Operational Risk and aggregating market risk assess exposures which may Taxonomy. Climate risks are Exposure in BBPLC exposures from climate- be impacted by climate- included within the Strategic Identified as part of related risks. related risks. Risk Assessment process. sovereign, portfolio and obligor credit annual reviews. Portfolios are monitored Measured by using adverse Measured as part of stress Established reporting on Risk assessment through regular reporting of multi-asset stress scenarios testing and key risk indicator internal and external climate metrics and are applied to individual risk monitoring. climate-related risk events assessed against mandates factors reflecting climate to the Climate Risk Control and limits where appropriate risks across sectors, Forum. Risk tolerances for countries and regions. premises and resilience risks Clients in elevated risk are reviewed so these sectors above a threshold adequately capture climate- exposure will have their related risk drivers. credit risk exposure to Climate risk qualitatively assessed through the Credit Climate Lens questionnaire. Future exposure to Climate risk as a driver to Credit risk is quantified through scenario analysis and stress testing exercises. In addition to the Credit Climate Lens questionnaire, Sovereign Credit Reviews are also carried out for Sovereigns above a threshold exposure to assess their susceptibility to Climate risks.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 285 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) TCFD Climate risk Risk Type Focus area Sample question management Acute: Frequency and intensity of What is the exposure of operations and Physical extreme weather events supporting assets to direct damage Credit Risk from extreme weather events? Definition Reducing availability of financial What is the severity of the potential lack The risk of loss to the Group from the protection/insurance of insurance covering business failure of clients, customers or interruptions caused by extreme counterparties, including sovereigns, to weather events? fully honour their financial obligations to Regulatory, policy and supervisory Does the company have an adaptation Transition the Group, including the whole and timely change plan in place? payment of principal, interest, collateral Technology change What is the likelihood of accelerating and other receivables. contingent liabilities, with alternative technologies displacing existing Climate Risk Identification operations and supporting assets? Risk identification is driven by assessing portfolios’ sensitivity and susceptibility to Each lens question has a threshold Sovereign Risk Assessment the financial and operational risks of assigned to it that corresponds to a rating Our assessment of climate risk for climate change. Sectors are categorised of Low, Moderate or High risk. These are sovereigns includes a risk factors matrix into elevated and non-elevated risk. These aggregated to provide an overall rating for incorporating physical, transition and sectors have been identified through the the client with rationale for the assigned connected risk factors and is part of our analysis of Barclays Industrial rating, and comments on both physical and ongoing risk identification as part of the Classifications by portfolio, informed by transition risks. CCFOR Policy challenges, including seven results of scenario analysis exercises. In 2022, a Climate Lens review was carried Transition Risk factors, three Physical Risk Across corporate and industrial sectors, out on annual review, origination or other factors and three Economic & Fiscal elevated risk sectors are those with high purpose facility review of 382 transactions Strength factors. A number of external exposure to both physical and transition in Barclays International. In Barclays UK, metrics have also been utilised, including 181 clients have been assessed by risks of climate change. These are defined the University of Notre Dame’s Global Relationship Teams using the Credit in the Climate Change Financial Risk and Adaptation Index and Climate Change Climate Lens. Operational Risk (CCFOR) Policy and apply Performance Index – Climate Policy. These As part of Barclays ongoing focus to review across the Group. This assessment is factors are then applied to all countries implementation and adherence to principal updated on an annual basis. The list of Barclays has exposure to. Sovereigns that risk frameworks, and our drive to develop Elevated Sectors is revisited on an annual are most impacted to these factors are our capabilities in this area, the climate lens basis to ensure that the risks identified as monitored on an ongoing basis. will be evolved to further improve impacting the sector are still accurately Climate Risk Management implementation and to become more articulated and assessed, and that On an annual basis, where an overall Credit quantitative. emerging risks are being captured within Climate Lens rating for a client is assessed the assessment. Non-Corporate Risk Assessment as Medium or High, clients are referred to Each sector is assessed by climate risk To support our scenario analysis the Climate Risk team. Following their drivers and impacts. Physical and transition modelling, in 2021 we developed risk factor analysis, the Climate Risk team provides risk drivers and impacts were designed assessments for Municipalities, Financial recommendations and guidance on how to internally and are based on rating agencies’ Institutions and Non-Bank Financial proceed, addressing any issues identified climate change assessments, Institutions, building on initial work to during the EDD process and the results of recommendations of the TCFD and our develop our Sovereign approach. Each of EDD are factored into credit decisions. involvement in UNEP FI’s TCFD Banking these portfolios uses a risk matrix Pilot Project Phase II. Information and insights gained from the approach across tailored physical, EDD and Credit Climate Lens rating To assist in determining the level of transition and connected risk factors. process also inform portfolio review potential credit risk arising from climate change for Sovereigns with material meetings, which itself forms part of the These factors include, for example, the exposure, risks are reviewed annually at a overall risk appetite control framework. proportion of institution’s exposure to minimum. Climate Risk Reporting sectors exposed to climate risk, reputation Climate Risk Assessment risk scores from climate-related issues. A Group-level Climate Risk Dashboard is Corporate Risk Assessment presented to the Climate Risk Committee In addition to the risk assessment In 2019,the Credit Climate Lens was and Board Risk Committee on a quarterly completed for these areas, scenario developed to identify and assess how basis, informing senior management and analysis and stress testing are used as Climate Change may impact the Group’s the Board of current climate risk primary tools to support climate risk wholesale credit risk exposures, against exposures, concentrations and to monitor assessment and the overall resilience of physical and transition risks. trends across both sectors, portfolios and Barclays’ strategy. regions. The dashboard was updated in The Credit Climate Lens review is 2022 to incorporate learnings from the completed for wholesale clients operating Bank of England's Climate Biannual in elevated risk sectors with material Exploratory Scenario (CBES). It includes exposure of more than £10m (£5m for exposure to portfolios with elevated BUK clients). It is completed by either transition or physical risk and progress Banking or Credit Risk teams across all against sector emissions targets. Climate Barclays entities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 286 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) risk dashboards were also developed for flood risk areas. This mandate was 2022, portfolio deep dives were conducted material legal entities in 2022. enhanced in 2022, and a high subsidence to supplement the existing analysis risk mandate has also been introduced to provided in the existing Mandate & Scale Portfolio Reviews and Mandate & Scale the UK Mortgage portfolio. reviews. This included identifying and Mandate & Scale Exposure Controls are a evaluating the credit risk implications of As a part of the bank’s general approach to portfolio risk management tool and form Climate risk on elevated sectors within the portfolio management, Barclays considers part of the overall risk appetite control portfolio. macroeconomic and other drivers and framework to review and control business events which may impact on certain Market Risk activities. Mandates and scales are sectors or geographies. This includes introduced to avoid the build-up of Definition impacts on the identified climate elevated adverse exposure concentrations within The risk of loss arising from potential risk sectors and may lead to action for portfolios through ensuring exposure is adverse changes in the value of the specific sectors or geographies. For within Barclays’ mandate (i.e. aligned with Group’s assets and liabilities from example, in the oil & gas sector, we have expectations), and of an appropriate scale fluctuation in market variables including, considered longer-term impacts from (relative to the risk and reward of the but not limited to, interest rates, foreign climate transition and physical risks into underlying activities). exchange, equity prices, commodity our assessments and approach to the Limits and triggers are put in place to avoid prices, credit spreads, implied volatilities sector. In keeping with our overall aim to concentrations that may lead to and asset correlations. maintain a portfolio with a high credit unexpected losses detrimental to the Climate Risk Identification quality, we take a number of stability of the relevant business or the considerations into account for our oil & Climate change may lead to Market risk Group. They take the broader economic gas portfolio – including location of assets, through a disorderly transition to a low- outlook, wider Group strategy, and risk/ the economic profile (profitability) of carbon economy or via physical climate return considerations into account and are assets, geopolitical risks, size and events and shifts in supply and demand for set for a number of sectors and products. resilience of counterparties, and liquidity financial instruments, which may then Climate risks have been integrated into considerations. impact market prices for susceptible Mandate & Scale annual credit portfolio sectors or countries. Physical, transition and connected risks reviews for elevated risk sectors since arising from climate change are Climate-related risks are determined at a 2020. In 2021 Barclays Bank UK introduced considered as part of the wider risk Group level and used in the Market risk a flood risk mandate within the UK management decision process to account identification process. Mortgage portfolio to monitor the for the potential credit risk consequences percentage of properties (stock) in high of climate change on affected portfolios. In The table below outlines the climate-related risks, transition and physical, considered for all market risks under each asset class Physical Risk Transition Risk Asset Class Country impact Sector impact Sector impact Countries most susceptible • Sectors reliant on stable • Carbon intensive sectors: Traded credit to climate change weather conditions and – Primary producers (e.g. coal miner, oil and gas) power/water supply (e.g. Securitised products – Consumers (e.g. petrochemicals, transport) agriculture, soft – Supply chain (e.g. auto, retailer) commodities, tourism, Equities mining, manufacturing, • Additional cost to meet new regulatory requirements, transportation) financial penalties, carbon taxes, green energy subsidies Macro (FX, rates, • Financial protection – • Increased capex/cost for primary producers and commodities) insurance against consumers due to: weather events – Technological/regulatory-driven shifts in consumer demand – Tightening efficiency/emissions • Increases in cost, impaired quality of goods and speed of delivery due to weaknesses within the supply chain, need for alternative suppliers/products

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 287 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) Climate Risk Assessment • the scenario is meant to test the bank’s preparation. The climate related risks are ability to absorb a large shock by identified using severe yet plausible Market risk arising from climate change is climate related scenarios to provide combining Transition and Physical risks. measured by applying a range of stress qualitative and/or quantitative impacts on, scenarios, that stress the core risks Stress losses arising from this scenario or in addition to financial risk drivers. susceptible to climate change over long measure and aggregate climate-related and short-term horizons to individual risk Climate Risk Assessment risks, and are calculated quarterly. factors. Treasury & Capital Risk have focused on Climate Risk Management Initially a Climate Internal Stress Test building awareness of how the areas within The pattern of stress losses arising from (Climate-IST) was run in 2020 to further our risk oversight may be impacted by the stress scenario is used to estimate and inform understanding of climate risks. physical, transition and connected risks, set ongoing limits, consistent with the and calibration of key indicators for regular Market Risk performed an assessment of Board-approved maximum stress loss the impact of a disorderly transition to a reporting and monitoring. The function has capacity for Market risk, under which low-carbon economy on the market risk continued to build upon our understanding Barclays monitors and controls Market risk portfolios across Barclays Group. of climate risks, including through Barclays’ arising from climate change. These limits participation in CBES and the addition of In addition to the main Markets portfolios, are reviewed on an annual basis and must climate risk elements to internal stress Cross Markets and Commodities include consideration of potential portfolio tests. portfolios were also included. This risk impacts arising from climate-related risks. assessment was enabled by Capital Risk Furthermore, climate-related Market risk is enhancements in system technology Barclays’ capital position is indirectly managed through ongoing monitoring that allowing the exploration of climate change subject to climate risk through Group-wide is reported through the existing risk impact on less-climate risk exposed exposures across all risk types. Treasury & committee structures so that key risk sectors. Capital Risk oversees the bank’s capital indicators are monitored and escalated as management and planning activities and Market Risk continues to run such required. use the output of Group-wide climate Climate-IST scenarios every quarter, and Treasury and Capital Risk stress tests to inform our understanding has further refined the existing sector/ of how capital management may be Definition country taxonomy to reflect the climate impacted. Further consideration to climate risk sensitivity. Although Market Risk was Capital Risk risk has also been incorporated into the out of scope of the 2021 Bank of England The risk that the Group has an insufficient Group’s ICAAP narrative. Climate Biennial Exploratory Scenario level or composition of capital to support (CBES), the existing Market Risk scenario Pension Risk its normal business activities and to meet analysis has been more closely aligned to its regulatory capital requirements under Pension exposures are subject to climate the CBES scenarios. normal operating environments or stresses impacting market conditions. Market Risk Climate Scenario Narrative stressed conditions (both actual and as Pension holdings are primarily affected by defined for internal planning or regulatory interest rates, inflation and credit spreads The scenario is designed to explore a testing purposes). which may be impacted by longer term disorderly transition to a low-carbon climate change effects. To identify key economy until 2050, assuming insufficient Pension Risk areas of focus pension scheme assets progress in climate policy changes until The risk that the Group's capital and/or have been categorised based on their 2030. distributable earnings are reduced due to country and industry risk through the lens In 2030, the climate policy changes are put changes in the value of the Group's of climate change. in place at speed in order to meet the defined benefit obligations or the assets Liquidity Risk global climate targets by 2050 which funding these defined benefit obligations. causes global macroeconomic shock and Barclays proactively reviews its approach Liquidity Risk adverse market reaction in 2030, followed to managing funding and liquidity risks that The risk that the Group is unable to meet by markets recovery in 2031 (no other risk- may arise from certain physical risks such its contractual or contingent obligations or off episodes until 2050): as extreme weather events, or transition that it does not have the appropriate risks such as a move to a low-carbon • severe and prolonged global recession, amount, tenor and composition of funding economy. An enhanced risk assessment elevated risk premium, rise in and liquidity to support its assets. has been performed during 2022 to unemployment and borrowing cost, Interest Rate Risk in the Banking Book explore the potential vulnerabilities to sharp drop in global demand and in (IRRBB) certain industries and asset classes that economic activity, housing market The risk that the Group is exposed to may be subject to a lack of available slump capital or income volatility because of a liquidity under a climate stress scenario. • supply disruptions alongside currency mismatch between the interest rate Additional scenario analysis has been weakness and trade war causes sharp exposures of its (non-traded) assets and carried out during 2022 to further explore increase in inflation. Central Banks liabilities. specific climate related liquidity risks. attempt to contain rising prices by hiking Further consideration to climate risk has Climate Risk Identification the Bank Rate by several percentage also been incorporated into the Group’s Climate change may lead to additional points. This causes the usual “safe- ILAAP. levels of risk within Treasury & Capital Risk havens” such as Treasuries, Gilts or Interest Rate Risk in the Banking Book through physical, transition or connected Bonds to sell off along with Equity and (IRRBB) climate risks. Climate related risks within Credit markets Treasury & Capital Risk are identified as Fair value positions such as those within part of the climate risk register the Liquid Asset Buffer are exposed to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 288 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) general market conditions which could Climate Risk Identification Operational Recovery Planning deteriorate under longer term climate From a climate risk perspective, Barclays is An integral part of the firm’s approach to stress. Physical or transition risks may lead exposed to climate change risks in its Operational Resilience. The purpose is to to government fiscal responses that would operations, either directly or via the enable Barclays to minimise the impact of impact market volatility. Building on operations of its suppliers. This exposure is disruption when it occurs, which could be analysis from 2021 exercises, updates caused by climate related events. Barclays predominantly related to physical risks have been made to climate related such as extreme weather events (e.g. maintains and annually reviews recovery categorisation of investments and cyclones, hurricanes and floods), along plans and capabilities. subsequent stress methodologies specific with longer-term changes in weather Climate Risk Assessment to climate risk reporting. patterns (e.g. increased mean Operational Risk continues to identify, temperatures, sea levels, changing rain Fair value private equity positions manage and measure climate risk as part patterns, water stress/scarcity or drought managed by the Principal Investments of the existing operational risk profile conditions). team are most likely to be impacted by through its business as usual activities. stresses to energy markets and carbon The Operational Risk Framework includes These activities include working with transition changes. The future investment risks that are associated with climate Premises and Operational Recovery strategy of the team and long-term change as well as the activities required to Planning Horizontal Owners to identify and revenue of these investments may be identify, measure and manage these risks respond to any new emerging climate risk influenced by changing climate and as part of the operational risk profile. related impacts or regulatory legislative conditions. In line with Barclays’ Operational Risk maintains a taxonomy of requirements, and consideration of strategy, the team has continued to operational risks on behalf of the Group, changes to approach or taxonomy in line increase exposure to new initiatives which includes the operational risks across with regulatory requirements. We continue through the Sustainable Impact Capital Principal Risks (e.g. Conduct risk, Legal risk, to explore different approaches to provide programme. At the same time the Model risk) as well as operational failures a quantification assessment, albeit divestment of legacy natural resource associated with the financial Principal Risks challenges for quantification relating to the investments has accelerated and total (Credit, Market, Treasury and Capital). lack of appropriately granular, business- exposure to the Oil & Gas sector has relevant data and tools remain. Quantifying The Operational Risk Taxonomy forms significantly decreased. operational risk through existing part of the Operational Risk Framework. Accrual Banking Book Net Interest Income structured scenarios would allow us to This framework is reviewed and updated, may be moderately impacted by climate better examine and size the potential where appropriate, on an annual basis. As change through both physical and incremental impact arising from climate physical risk events related to extreme transition risks. Such risks could risks. However, the challenge of weather events could impact Barclays’ materialise through impact on deposit determining scenarios that are business operational capabilities, climate change is levels and lead to potential changes in orientated, sourcing available and relevant already integrated into the Operational composition and performance of asset information to support the effort, and Risk Framework. The risks categories most portfolios, pricing and changes to longer connecting the given scenario to the likely to be impacted by physical risks are term interest rate risk management idiosyncrasies of operational risk, remains Premises Risk and Operational Recovery strategies. In 2021, an assessment was a factor under consideration. Planning. completed focusing on the economic In 2022, a third party organisation Premises Risk impact of potential forced unwind of conducted a climate risk assessment on Ensures that operational risk requirements structural hedges on the deposit base as a our mission critical buildings and data are understood, monitored and mitigated result of significant outflows triggered by centres. The results of the analysis appropriately, and are managed to ensure concerns about Barclays’ climate change identified risks and opportunities. These compliance with relevant legal and credentials. included physical and transition risks such regulatory requirements, including any Climate Risk Management as flooding and market risks and required authorisations, permissions and opportunities such as embedding energy Insights on climate-related risks and licenses. Premises risk is managed under and material efficiency and installing low potential impacts are incorporated as the Group Property Policy and Standards, carbon heating and cooling technologies. appropriate to inform the setting of which outline Barclays’ approach to Furthermore, the assessment identified relevant key indicators and risk limits, addressing environmental risks with the potential average annual loss (AAL) to which are overseen by the Treasury and respect to the availability of operational our operational portfolio following different Capital Risk Committee on a quarterly premises. This Policy defines a low climate scenarios. In a low emissions basis. Barclays’ assessment of capital and tolerance threshold for premises scenario, it was estimated we have an AAL liquidity requirements factors in climate unavailability which covers the risk of the of £40 million and in a high emissions considerations as part of Barclays annual physical impacts of climate change, and scenario it was estimated we could ICAAP and ILAAP submissions. aims to ensure that Barclays’ premises do experience an AAL of £60 million. These not become unavailable and/or do not Operational Risk findings will inform our risk management affect at least one Barclays product/ Definition and decision-making process. service for a sustained period of time. The risk of loss to the Group from Additionally, any potential strategic site’s Additionally, Barclays has a portfolio of inadequate or failed processes, systems, exposure to extreme weather events is structured scenarios that are assessed for human factors or due to external events considered. Similarly, this Policy defines no Group and certain Legal Entities, for which (for example, extreme weather events) tolerance for failures in Barclays Premises Operational Risk coordinates the process. where the root cause is not due to credit that result, or are likely to result, in harm to These scenarios map to the risk taxonomy or market risks. the environment. and cover a range of risks where climate

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 289 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) implications could be an incremental operational risk profile through business as Overview factor. The potential effect of climate usual activities. The credit risk that the Group faces arises change has been considered qualitatively This includes working with Premises and from wholesale and retail loans and in the latest scenario assessment cycle, Operational Recovery Planning Horizontal advances together with the counterparty where climate has been found not to be an Owners to identify and respond to any new credit risk arising from derivative contracts immediate factor impacting most emerging climate change related impacts with clients; trading activities, including: scenarios, although greenwashing at or regulatory requirements, and debt securities, settlement balances with product level, and disclosures about our consideration of changes to approach or market counterparties, fair value through green credentials, are two topical areas taxonomy in line with regulatory other comprehensive income (FVOCI) subject to further analysis. requirements. assets and reverse repurchase loans. Climate Risk Management Reputation Risk Credit risk management objectives are to: The Group Property Standard outlines Definition • maintain a framework of controls to Barclays’ approach to addressing climate oversee credit risk Reputation risk is the risk that an action, risks with respect to the availability of transaction, investment, event, decision or • identify, assess and measure credit risk operational premises. Additionally, business relationship will reduce trust in clearly and accurately across the Group exposure to extreme weather events is the Group’s integrity and/or competence. and within each separate business, from considered during the design or Barclays is linked to clients across a wide the level of individual facilities up to the refurbishment of new and existing range of sectors and geographies, total portfolio strategic sites. including those that have the potential to • control and plan credit risk taking in line The Operational Recovery Planning cause or contribute to significant adverse with external stakeholder expectations standards outline Barclays’ requirements impacts on the climate. and avoiding undesirable concentrations to anticipate, prevent, adapt, respond to, Climate Risk Management recover and learn from internal or external • monitor credit risk and adherence to Environmental and social risks are disruption. Our focus is on continuing to agreed controls. governed and managed through our deliver Important Business Services to Organisation, roles and responsibilities ERMF, setting our strategic approach for customers and clients, and minimise any The first line of defence has primary risk management by defining standards, impact on the wider financial system, in the responsibility for managing credit risk objectives and responsibilities for all areas event of operational disruption. The within the risk appetite and limits set by the of Barclays. The ERMF is complemented Operational Recovery Planning risk from Risk function, supported by a defined set by a number of other frameworks, policies climate change is expected to manifest of policies, standards and controls. In the and standards, all of which are aligned to through premises and supplier risk in the entities, business risk committees individual Principal Risks. first instance, and if this leads to (attended by the first line) monitor and operational disruption, our operational Our assessment of environmental and review the credit risk profile of each recovery planning framework would help social risks not only helps safeguard our business unit where the most material mitigate the impacts through invocation of reputation, which supports longevity of the issues are escalated to the Retail Credit crisis management, and response and business but also enhances our ability to Risk Management Committee, Wholesale recovery plans. Our approach to serve our clients and support them in Credit Risk Management Committee and Operational Recovery Planning evolves in improving their own sustainability practices Group Risk Committee. response to the changing threat and disclosures. Our approach to Wholesale and retail portfolios are managed landscape, and this will include identification, assessment/escalation and separately to reflect the differing nature of consideration of climate change and its monitoring can be located within the the assets; wholesale balances tend to be associated impacts. Managing Impact section of this report larger and are managed on an individual basis, (from page 253) while the oversight and Barclays deploys and validates appropriate while retail balances are greater in number management of climate-related issues are recovery strategies for its critical but lesser in value and are, therefore, embedded with the Barclays governance processes, including the ability to transfer managed in aggregated segments. framework (from page 141). processing to alternative locations or The responsibilities of the credit risk premises. In addition to maintaining Credit risk management management teams in the businesses, the response plans in the event of a third party (audited) sanctioning team and other shared disruption, for our third party service The risk of loss to the Group from the services include: sanctioning new credit providers Operational Recovery Planning failure of clients, customers or agreements (principally wholesale); setting requirements are articulated through our counterparties, including sovereigns, to strategies for approval of transactions Supplier Control Obligations (SCOs). Each fully honour their obligations to the Group, (principally retail); setting risk appetite; third party service provider is required to including the whole and timely payment of monitoring risk against limits and other attest to their compliance with the SCOs principal, interest, collateral and other parameters; maintaining robust on an annual basis and further assurance is receivables. processes, data gathering, quality, storage undertaken on a risk-based approach. and reporting methods for effective credit Management, reporting and oversight is in risk management; performing effective place to monitor internal and external risk turnaround and workout scenarios for events that may be attributable to climate wholesale portfolios via dedicated change. Operational Risk continues to restructuring and recoveries teams; identify, manage and measure climate maintaining robust collections and change risks as part of the existing recovery processes/units for retail portfolios; and review and validation of

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 290 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) credit risk measurement models. The • wholesale lending: a fixed charge over i) Impairment policy requirements are set credit risk management teams in each commercial property and other physical and reviewed regularly, at a minimum legal entity are accountable to the relevant assets, in various forms annually, to maintain adherence to Legal Entity CRO, who reports to the accounting standards. Key judgements • other retail lending: includes charges Group CRO. inherent in policy, including the estimated over motor vehicles and other physical life of revolving credit facilities and the For wholesale portfolios, credit risk assets; second lien charges over quantitative criteria for assessing the managers are organised in sanctioning residential property; and finance lease significant increase in credit risk (SICR), are teams by geography, industry and/or receivables separately supported by analytical study. In product. In wholesale portfolios, credit risk • derivatives: the Group also often seeks particular, the quantitative thresholds used approval is undertaken by experienced to enter into a margin agreement (e.g. for assessing SICR are subject to a number credit risk professionals operating within a Credit Support Annex) with of internal validation criteria, particularly in clearly defined delegated authority counterparties with which the Group has retail portfolios where thresholds decrease framework, with only the most senior master netting agreements in place. as the origination Probability of Default credit officers assigned the higher levels of These annexes to master agreements (PD) of each facility increases. Key policy delegated authority. The largest credit provide a mechanism for further requirements are also typically aligned to exposures, which are outside the Risk reducing credit risk, whereby collateral the Group’s credit risk management Sanctioning Unit or Risk Distribution (margin) is posted on a regular basis strategy and practices, for example, Committee authority, require the support (typically daily) to collateralise the mark wholesale customers that are risk of a legal entity Senior Credit Officer. For to market exposure of a derivative managed on an individual basis are exposures in excess of the legal entity portfolio measured on a net basis assessed for ECL on an individual basis Senior Credit Officer’s authority, approval • reverse repurchase agreements: upon entering Stage 3; furthermore, key by Group Senior Credit Officer/Board Risk collateral typically comprises highly liquid internal risk management indicators of Committee is also required. The Group securities which have been legally high risk are used to set SICR policy, for Credit Risk Committee, attended by legal transferred to the Group subject to an example, retail customers identified as entity Senior Credit Officers, provides a agreement to return them for a fixed high risk account management are formal mechanism for the Group Senior price automatically deemed to have met the Credit Officer to exercise the highest level SICR criteria. • financial guarantees and similar off- of credit authority over the most material balance sheet commitments: cash Group single name exposures. ii) ECL is estimated in line with internal collateral may be held against these policy requirements using models which Credit risk mitigation arrangements. are validated by a qualified independent The Group employs a range of techniques party to the model development area, the Risk transfer and strategies to actively mitigate credit Independent Validation Unit (IVU), before A range of instruments including risks. These can broadly be divided into first use and on a regular basis, at a guarantees, credit insurance, credit three types: minimum every three years. Each model is derivatives and securitisation can be used • netting and set-off designated an owner who is responsible to transfer credit risk from one for: • collateral counterparty to another. These mitigate • model maintenance: monitoring of • risk transfer. credit risk in two main ways: model performance including Netting and set-off • if the risk is transferred to a backtesting by comparing predicted counterparty which is more Credit risk exposures can be reduced by ECL versus flow into stage 3 and creditworthy than the original applying netting and set-off. For derivative coverage ratios; proposing material counterparty, then overall credit risk is transactions, the Group’s normal practice changes for independent IVU approval; reduced is, on a legal entity basis, to enter into and recalibrating model parameters on standard master agreements with • where recourse to the first counterparty more timely data counterparties (e.g. ISDAs). These master remains, both counterparties must • proposing post-model adjustments agreements typically allow for netting of default before a loss materialises. This is (PMA) to address model weaknesses or credit risk exposure to a counterparty less likely than the default of either to account for situations where known resulting from derivative transactions counterparty individually so credit risk is against the obligations to the counterparty or expected risk factors and information reduced. in the event of default, and so produce a have not been considered in the Detailed policies are in place to appropriately + lower net credit exposure. These modelling process. All PMAs relating to recognise and record credit risk mitigation. For more information, refer to pages 118 to 120 of the Barclays agreements may also reduce settlement model deficiencies, regardless of value PLC Pillar 3 Report 2022 (unaudited). exposure (e.g. for foreign exchange are approved by IVU for a set time transactions) by allowing payments on the period. PMAs representing Expert Governance and oversight of ECLs under same day in the same currency to be set- Judgement are validated by Risk, as the IFRS 9 off against one another. second line of defence and approved for The Group’s organisational structure and a set time period. The most material internal governance processes oversee Collateral PMAs are also approved by the CRO. the estimation of ECL across several The Group has the ability to call on areas, including: i) setting requirements in Models must also assess ECL across a collateral in the event of default of the policy, including key assumptions and the range of future economic conditions. counterparty, comprising: application of key judgements; ii) the These economic scenarios are generated • home loans: a fixed charge over design and execution of models; and iii) via an independent model and ultimately residential property in the form of review of ECL results. set by the Senior Scenario Review houses, flats and other dwellings

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 291 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) Committee. Economic scenarios are the day-to-day limit management of responsible for implementing the risk regenerated at a minimum twice annually market risk exposures through control framework for market risk. but more frequently if deemed governance processes which are outlined For more information on market risk appropriate, and also to align with the in supporting market risk policies and management, refer to the Barclays PLC Group’s medium term planning exercise. standards. Pillar 3 Report 2022 (unaudited). Each model used in the estimation of ECL, Market risk oversight and challenge is Management value at risk (VaR) including key inputs, are governed by a provided by business committees and VaR is an estimate of the potential loss series of internal controls, which include Group committees, including the Market arising from unfavourable market the validation of completeness and Risk Committee (MRC). movements if the current positions were accuracy of data in golden source The objectives of market risk management to be held unchanged for one business systems, documented data are to: day. For internal market risk management transformations and documented lineage purposes, a historical simulation • identify, understand and control market of data transfers between systems. methodology with a one-year equally risk by robust measurement, limit i) The Group Impairment Committee, weighted historical period, at the 95% setting, reporting and oversight formed of members from both Finance confidence level is used for all trading • facilitate business growth within a and Risk and attended by both the Group books and some banking books. controlled and transparent risk Finance Director and the Group CRO, is Limits are applied at the total level as well management framework responsible for overseeing impairment as by risk factor type, which are then policy and practice across the Group and • control market risk in the businesses cascaded down to particular trading desks will approve impairment results. Reported according to the allocated appetite. and businesses by the market risk results and key messages are To meet the above objectives, a management function. communicated to the BAC, which has an governance structure is in place to oversight role and provides challenge of See the market risk performance section for a manage these risks consistent with the + review of management VaR. key assumptions, including the basis of the ERMF. scenarios adopted. Impairment results are Treasury and capital risk The BRC recommends market risk then factored into management decision management appetite to the Board for their approval. making, including but not limited to, The Market Risk Principal Risk Lead (PR This comprises: business planning, risk appetite setting and Lead) is responsible for the Market Risk portfolio management. Liquidity risk: The risk that the Group is Control Framework and, under delegated unable to meet its contractual or Market risk management authority from the Group CRO, agrees contingent obligations or that it does not (audited) with the business CROs a limit framework have the appropriate amount, tenor and within the context of the approved market The risk of loss arising from potential composition of funding and liquidity to risk appetite. adverse changes in the value of the support its assets. Group’s assets and liabilities from The Market Risk Committee (MRC) reviews Capital risk: The risk that the Group has an fluctuation in market variables including, and makes recommendations concerning insufficient level or composition of capital but not limited to, interest rates, foreign the group-wide market risk profile. This to support its normal business activities exchange, equity prices, commodity includes overseeing the operation of the and to meet its regulatory capital prices, credit spreads, implied volatilities Market Risk Framework and associated requirements under normal operating and asset correlations. policies and standards, monitoring market environments and stressed conditions and regulatory changes, and reviewing limit Overview (both actual and as defined for internal utilisation levels. The committee is chaired Market risk arises primarily as a result of planning or regulatory testing purposes). by the PR Lead and attendees include the client facilitation in wholesale markets, This also includes the risk from the Group’s business heads of market risk and business involving market-making activities, risk pension plans. aligned market risk managers. management solutions and execution of Interest rate risk in the banking book: The In addition to MRC, the Corporate and syndications. Upon execution of a trade risk that the Group is exposed to capital or Investment Bank Risk Committee (‘CIBRC’) with a client, the Group will look to hedge income volatility because of a mismatch is the main forum in which market risk against the risk of the trade moving in an between the interest rate exposures of its exposures are discussed and reviewed adverse direction. Mismatches between (non-traded) assets and liabilities. with senior business heads. The client transactions and hedges result in The Treasury function manages treasury Committee is chaired by the CRO of market risk due to changes in asset prices, and capital risk exposure on a day-to-day Barclays International and meets weekly, volatility or correlations. basis with the Group Treasury Committee covering current market events, notable Organisation, roles and responsibilities acting as the principal management body. market risk exposures, and key risk topics. Market risk in the businesses resides The Treasury and Capital Risk function is New business initiatives are generally primarily in Barclays International and responsible for oversight and provides socialised at CIBRC before any changes to Treasury. These businesses have the insight into key capital, liquidity, interest risk appetite or associated limits are mandate to assume market risk. The front rate risk in the banking book (IRRBB) and considered in other governance office and Treasury trading desks are pension risk management activities. committees. responsible for managing market risk on a The head of each business is accountable day-to-day basis, where they are required for all market risks associated with its to understand and adhere to all limits activities, while the head of the market risk applicable to their businesses. The Market team covering each business is Risk team supports the trading desks with

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 292 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) to meet pension payments is achieved Liquidity risk management Capital risk management with investments and contributions. (audited) (audited) Pension risk arises because the market Overview Overview value of pension fund assets might decline; The efficient management of liquidity is Capital risk is managed through ongoing investment returns might reduce; or the essential to the Group in order to retain monitoring and management of the capital estimated value of pension liabilities might the confidence of the financial markets position, regular stress testing and a increase. The Group monitors the pension and maintain the sustainability of the robust capital governance framework. The risks arising from its defined benefit business. Treasury and Capital Risk have objectives of the framework are to pension schemes and works with the created a framework to manage all liquidity maintain adequate capital for the Group relevant pension fund’s trustees to risk exposures under both normal and and legal entities to withstand the impact address shortfalls. In these circumstances, stressed conditions. The framework is of the risks that may arise under normal the Group could be required or might designed to maintain liquidity resources and stressed conditions, and maintain choose to make extra contributions to the that are sufficient in amount, quality and adequate capital to cover current and pension fund. The Group’s main defined funding tenor profile to remain within the forecast business needs and associated benefit scheme was closed to new liquidity risk appetite as expressed by the risks to provide a viable and sustainable entrants in 2012. Barclays PLC Board. The liquidity risk business offering. Interest rate risk in the banking appetite is monitored against both internal Organisation, roles and responsibilities and regulatory liquidity metrics. book management (IRRBB) Treasury has the primary responsibility for Organisation, roles and responsibilities Overview managing and monitoring capital Treasury has the primary responsibility for adequacy. The Treasury and Capital Risk Interest rate risk in the banking book is managing liquidity risk within the set risk function provides oversight of capital risk. driven by customer deposit taking and appetite. Both Risk and Treasury Production of the Barclays PLC Internal lending activities, investments in the liquid contribute to the production of the Capital Adequacy Assessment Process asset portfolio and funding activities. As Internal Liquidity Adequacy Assessment (ICAAP) is the responsibility of Treasury. per the Group’s policy to remain within the Process (ILAAP). The Treasury and Capital defined risk appetite, hedging strategies Capital risk management is underpinned by Risk function is responsible for the are executed to mitigate the various IRRBB a control framework and policy. The capital management and governance of the risks that result from these activities. management strategy, outlined in the liquidity risk mandate, as defined by the However, the Group remains susceptible Group and legal entity capital plans, is Board. to interest rate risk and other non-traded developed in alignment with the control market risks from the following key The framework established by Treasury framework and policy for capital risk, and is sources: and Capital Risk is designed to deliver the implemented consistently in order to appropriate term and structure of funding, deliver on the Group’s objectives. • Interest rate and repricing risk: the risk consistent with the liquidity risk appetite that net interest income could be The Board approves the Group capital set by the Board. The framework adversely impacted by a change in plan, internal stress tests and results of incorporates a range of ongoing business interest rates, differences in the timing regulatory stress tests, and the Group management tools to monitor, limit and of interest rate changes between assets recovery plan. The Group Treasury stress test the Group’s balance sheet, and liabilities, and other constraints on Committee is responsible for monitoring contingent liabilities and the recovery plan. interest rate changes as per product and managing capital risk in line with the Limit setting and transfer pricing are tools terms and conditions. Group’s capital management objectives, designed to control the level of liquidity risk capital plan and risk frameworks. The • Customer behavioural risk: the risk that taken and drive the appropriate mix of Treasury and Capital Risk Committee net interest income could be adversely funds. Adherence to limits reduces the monitors and reviews the capital risk profile impacted by the discretion that likelihood that a liquidity stress event could and control environment, providing customers and counterparties may have lead to an inability to meet Group’s second line oversight of the management in respect of being able to vary from obligations as they fall due. of capital risk. The BRC reviews the risk their contractual obligations with The Board approves the Group funding profile, and reviews risk appetite at least Barclays. This risk is often referred to by annually and the impact of stress scenarios plan, internal stress tests, regulatory stress industry regulators as ‘embedded option test results, recovery plan and liquidity risk on the Group capital plan/forecast in order risk’. appetite. The Group Treasury Committee to agree the Group’s projected capital • Investment risks in the liquid asset is responsible for monitoring and adequacy. portfolio: the risk that the fair value of managing liquidity risk in line with the Local management assures compliance assets held in the liquid asset portfolio Group’s funding management objectives, with an entity’s minimum regulatory capital and associated risk management funding plan and risk appetite. The requirements by reporting to local Asset portfolios could be adversely impacted Treasury and Capital Risk Committee and Liability Committees (ALCOs) with by market volatility, creating volatility in monitors and reviews the liquidity risk oversight by the Group Treasury capital directly. profile and control environment, providing Committee, as required. In 2022, Barclays Organisation, roles and responsibilities second line oversight of the management complied with all regulatory minimum The entity ALCOs and/or treasury of liquidity risk. The BRC reviews the risk capital requirements. committees, together with the Group profile, and reviews liquidity risk appetite at Pension risk Treasury Committee, are responsible for least annually and the impact of stress The Group maintains a number of defined monitoring and managing IRRBB risk in line scenarios on the Group funding plan/ benefit pension schemes for past and with the Group’s management objectives forecast in order to agree the Group’s current employees. The ability of schemes and risk frameworks. The GRC and projected funding abilities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 293 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) Treasury and Capital Risk Committee development, monitoring, annual review, be transacted and risk taken without monitors and reviews the IRRBB risk profile independent validation and approval, exposing it to unacceptable potential losses or reputational damages. and control environment, providing change and reporting processes. The second line oversight of the management policy is supported by global standards Organisation, roles and responsibilities of IRRBB. The BRC reviews the interest covering model inventory, documentation, The prime responsibility for the rate risk profile, including review of the risk validation, testing and monitoring, management of operational risk and the appetite at least annually and the impact of overlays, risk appetite, and stress testing compliance with control requirements stress scenarios on the interest rate risk of challenger models. rests within the business and functional the Group’s banking books. The function reports to the Group CRO units where the risk arises. The operational In addition, the Group’s IRRBB policy sets and operates a global framework. risk profile and control environment is out the processes and key controls Implementation of best practice standards reviewed by management through required to identify all IRRBB risks arising is a central objective of the Group. business risk committees and control from banking book operations, to monitor committees. Operational risk issues The key model risk management activities the risk exposures via a set of metrics with escalated from these meetings are include: a frequency in line with the risk considered through the second line of • Correctly identifying models across all management horizon, and to manage defence review meetings. Depending on relevant areas of the Group, and these risks within agreed risk appetite and their nature, the outputs of these recording models in the Group Models limits. meetings are presented to the Operational Database (GMD), the Group-wide model Risk Profile Forum, the Operational Risk Model risk management inventory. Committee, the BRC or the BAC. In The potential for adverse consequences • Enforcing that every model has a model addition, specific reports are prepared by from decisions based on incorrect or owner who is accountable for the model. Operational Risk on a regular basis for the misused model outputs and reports. The model owner must sign off models GRC and the BRC. prior to submission to IVU for validation Overview Legal entities, businesses and functions and maintain that the model presented The Group uses models to support a broad are required to report their operational to IVU is and remains fit for purpose. range of activities, including informing risks on both a regular and an event-driven • Overseeing that every model is subject business decisions and strategies, basis. The reports include a profile of the to validation and approval by IVU, prior measuring and limiting risk, valuing material risks that may threaten the to being used and on a continual basis. exposures, conducting stress testing, achievement of their objectives and the assessing capital adequacy, managing • Defining model risk appetite in terms of effectiveness of key controls, operational client assets, and meeting reporting risk tolerance, and qualitative metrics risk events and a review of scenarios. requirements. which are used to track and report The Group Head of Operational Risk is model risk. Organisation, roles and responsibilities responsible for establishing, owning and The Group has a dedicated Model Risk maintaining an appropriate group-wide Operational risk management Management (MRM) function that consists Operational Risk Framework and for The risk of loss to the Group from of five teams: (i) Independent Validation overseeing the portfolio of operational risk inadequate or failed processes or systems, Unit (IVU), responsible for model validation across the Group. human factors or due to external events and approval; (ii) Group Model Risk The Operational Risk function acts in a (for example, fraud) where the root cause Governance , responsible for model risk second line of defence capacity, and is is not due to credit or market risks. governance, controls and reporting, as well responsible for defining and overseeing Overview as providing oversight for compliance of the implementation of the framework and The management of operational risk has the Model Owner community with the monitoring the Group’s operational risk three key objectives: Model Risk Framework; (iii) Framework profile. The Operational Risk function team, responsible for the Model Risk Policy • deliver an operational risk capability alerts management when risk levels and associated standards; (iv) Strategy and owned and used by business leaders to exceed acceptable tolerance in order to Transformation, responsible for inventory, enable sound risk decisions over the drive timely decision- making and actions strategy, communications and business long term by the first line of defence. management; and v) Model Risk • provide the frameworks, policies and Operational risk categories Measurement and Quantification (MRMQ), standards to enable management to Operational risks are grouped into risk responsible for the design of the meet their risk management categories to support effective risk framework and methodology to measure responsibilities while the second line of management, measurement and and, where possible, quantify model risk. It defence provides robust, independent, reporting. These comprise: Data is also responsible for the strategic and effective oversight and challenge Management Risk; Financial Reporting Validation Centre of Excellence (VCoE), • deliver a consistent and aggregated Risk; Fraud Risk; Information Security Risk; which is an independent quality assurance measurement of operational risk that Operational Recovery Planning Risk; function within MRM with the mandate to will provide clear and relevant insights, Payments Process Risk; People Risk; review and challenge validation outcomes. so that the right management actions Premises Risk; Physical Security Risk; The Model Risk Framework consists of can be taken to keep the operational risk Change Delivery Management Risk; the Model Risk Policy and standards. The profile consistent with the Group’s Supplier Risk; Tax Risk; Technology Risk; policy prescribes Group-wide, end-to-end strategy, the stated risk appetite and and Transaction Operations Risk. requirements for the identification, stakeholder needs. In addition to the above, operational risk measurement and management of model The Group operates within a system of encompasses risks associated with risk, covering model documentation, internal controls that enables business to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 294 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) compliance with Group Resolution first and second lines of defence with clear this by operating two processes, which Planning Prudential regulatory escalation and reporting lines to the Board. together form our product design and requirements. The Barclays Group and Barclays Bank review risk framework. Group Risk Committee and the Barclays We have a process that supports the Connected risks Bank UK Group Risk Committee are the Group in the approval and implementation Barclays also recognises that there are primary second line governance of New and Amended Products and certain threats/risk drivers which are committees for the oversight of the Approval process (known as the NAPA interconnected and have the potential to Conduct Risk Profile. The risk committees’ Process, set out in the Barclays NAPA impact the Group’s strategic objectives. responsibilities include the identification Policy and Standards). These are referred to as Connected Risks and discussion of any emerging conduct This process outlines the requirements and require an overarching and integrated risks exposures in their respective entities. and risk assessment standards that must risk management and/or reporting Conduct be met to help ensure that new and approach. The Group’s Connected Risks amended products and services are include Cyber, Data, Resilience and Third- By effectively managing Conduct risks, we appropriately designed prior to their Party Service Providers. can continue to strengthen the culture of launch. Barclays. For definitions of the Group’s Operational Risk + Categories and connected risks, refer to the In addition we have a complementary Culture and conduct management of operational risk section in the Barclays process that reviews the existing portfolio PLC Pillar 3 Report 2022. We believe the stronger our culture, the of products and services throughout their better the choices our people will make; Conduct Risk management lifecycle (known as the Product Review and the stronger our business will be for all Process, set out in the Barclays Product The risk of poor outcomes for, or harm to, our stakeholders. While our culture helps Review Policy and Standard). This process customers, clients and markets, arising us reduce the impact of poor conduct on considers information about the from the delivery of the Group’s products our customers, we also do not intend to performance and operation of the product and services. repeat the errors of the past. or service through a conduct lens. Overview Our most senior leaders spend significant Wherever a product or service is found to The Group defines, manages and time setting the right tone at Barclays and be outside appetite, the product or service mitigates conduct risk with the objective of our Purpose and Values are now deeply owner must seek to ensure actions are providing good customer and client embedded in their messages. The Barclays taken to address it. These actions are outcomes and protecting market integrity. Way sets out the standards and behaviour validated by functional areas, including all employees must demonstrate and Conduct risk incorporates market Legal and Compliance. guides the execution of our business. We integrity, customer protection, financial Areas of Barclays that undertake also strengthen our culture with clear and crime and product design and review risks. Investment activity also operate additional effective controls. We continue investing Organisation, roles and responsibilities product governance processes and to enhance our controls to support our The Conduct Risk Management controls, reflecting the higher risk of these commitment to conducting all activities Framework (CRMF) outlines how the more complex products and the with integrity. Group manages and measures its conduct importance of products and services For details of the Board's role in embedding our risk profile. The Group Chief Compliance meeting the needs of our Clients. + Culture, Purpose, Values and Mindset, please refer to Officer is accountable for developing, page 154 of the Directors' Report. The BPLC, BBPLC and BBUKPLC Board Risk maintaining and overseeing the CRMF. + Committees review, on behalf of their respective Boards, the management of Conduct risk and the The Barclays Mindset This includes defining and owning the Conduct risk profile for their respective entities. relevant conduct risk policies which detail Our Mindset acts as an operating manual Please refer to the report of the BPLC Board Risk the control objectives, principles and other for how to get things done at Barclays. It Committee on pages 179 and 184 and the reports of core requirements for the activities of the the BBPLC and BBUKPLC Board Risk Committees focuses on three key elements that are within the BBPLC and BBUKPLC 2022 Annual Reports Group. It is the responsibility of the first line core to our success – Empower, Challenge available at home.barclays/investor-relations/reports- of defence to establish controls to manage and-events/annual-reports/ for more information. and Drive. Our research shows that when its performance and assess conformance we demonstrate behaviours aligned to to these policies and controls. Customer communications these three elements, outcomes are better, colleagues are more engaged and Senior managers are accountable within It is important that our engagement with they are more likely to stay longer to build their areas of responsibility for owning and our customers is open and honest and that their career at Barclays. managing conduct risk in accordance with we treat them fairly to avoid foreseeable the CRMF, as defined within their harm and to make sure they are not For further details, see page 31 in the Strategic + Report for more information on the Barclays regulatory Statement of Responsibilities. exploited or misled. Barclays continues to Mindset. take steps to ensure that our customers’ Compliance as an independent second line needs and priorities are understood before function oversees that conduct risks are Managing Conduct risks making recommendations and that the effectively identified, managed, monitored See page 184 in the Directors' report in addition to pages , 279 and 368 in the risk review section for more information communications we provide allow and escalated, and has a key role in helping on how the Group defines, manages and mitigates Conduct informed decisions to be made. We work Barclays achieve the right conduct risks. to achieve this through a number of outcomes and evolve a conduct-focused Product design and review risk controls which focus on ensuring our culture. It is important that the design of our customers receive clear information in The governance of conduct risk within the products and services meets the needs of order to understand the risks and benefits Group is fulfilled through management clients, customers, markets as well as of the products we offer. For example: committees and forums operated by the being aligned with Barclays' policies. We do

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 295 report information sustainability report Governance review review statements Annual Report 2022 Principal risk management (continued) • communications are sufficient, targeted legislative action, loss of existing and identification of legal risks by legal and distributed to recipients whom potential client business, reduced professionals, engagement of legal professionals in situations that have the Barclays knows or reasonably believes workforce morale and difficulties in may stand to benefit from the recruiting talent. Ultimately it may destroy potential for legal risk, and escalation of communication, and are communicated shareholder value. legal risk as necessary. Notwithstanding in a manner and style that will be these mitigating actions, the Group Organisation, roles and responsibilities understood by the average recipient (or operates with a level of residual legal risk, Barclays PLC Board is the most senior for which the Group has limited tolerance. likely recipient), body responsible for reviewing and • communications are withdrawn from Organisation, roles and responsibilities monitoring the effectiveness of the further circulation when they are no Group’s management of reputation risk. The Group's businesses and functions longer accurate or fit for purpose, and have responsibility for identifying and The Group Chief Compliance Officer is escalating to the Legal Function legal risk in • customers do not receive inadequate accountable for developing a Reputation their area, as well as responsibility for advice, misleading information, Risk Management Framework (RRMF), and adherence to control requirements. unsuitable products or unacceptable the Group Head of Public Policy and service. Corporate Responsibility is responsible for The Legal Function organisation and coverage model aligns legal expertise to developing a reputation risk policy and Our processes include a review of relevant associated standards, including tolerances businesses, functions, products, activities communications which are supported by against which data is monitored, reported and geographic locations so that the the Compliance, Privacy and Legal on and escalated, as required. The RRMF Group receives legal advice and support functions to help ensure we meet both sets out what is required to manage from appropriate legal professionals, internal customer engagement standards working in partnership proactively to reputation risk across the Group. and we are compliant with external identify, manage and escalate legal risks as The primary responsibility for identifying regulations. Furthermore annual necessary. and managing reputation risk and mandatory training is completed by adherence to the control requirements The senior management of the Legal marketing colleagues. The training covers sits with the business and support Function oversees, challenges and key customer and brand standards along monitors the legal risk profile and functions where the risk arises. with the role and key policies set by effectiveness of the legal risk control external regulators e.g. regulatory Barclays Bank Group and Barclays Bank UK environment across the Group. The Legal requirements may require Group are required to operate within Function does not sit in any of the three communications to be provided that are established reputation risk appetite, and lines of defence but supports them all. accessible to customers, or provide their component businesses prepare Except in relation to the legal advice it customers with the option to 'opt out'. reports highlighting their most significant provides or procures, the Legal Function is current and potential reputation risks and Remediation and redress subject to oversight from the second line issues and how they are being managed. Barclays recognises that customer of defence. These reports are a key internal source of detriment may occur as a result of our information for the quarterly reputation The Group General Counsel is responsible error, actions or inactions, and that we risk reports which are prepared for for developing and maintaining a Group- must undertake appropriate activity Barclays Group ExCo and reviewed by the wide legal risk management framework. designed to ensure our customers are put Group Board twice-yearly. This includes defining the relevant legal risk back in the position they would have been policies, developing Group-wide risk The Group Reputation Risk Committee is a in had the issue not occurred. appetite for legal risk, and oversight of the sub-committee of the Group Executive Remediation can be proactive, where we implementation of controls to manage and Committee, authorised to manage have identified the issue ourselves (for escalate legal risk. material reputation risks and issues as they example through identifying a pattern in are brought to the attention of the The legal risk profile and control customer complaints), or reactive, where committee via relevant reputation risk environment is reviewed by management identified by a third party such as a assessment and escalation processes. through business risk committees and regulator of Barclays. control committees. The Group Risk Legal Risk management Where it is appropriate, Barclays works to Committee is the most senior executive The risk of loss or imposition of penalties, ensure the operation of consistent body responsible for reviewing and damages or fines from the failure of the principles for remediation which includes monitoring the effectiveness of risk Group to meet its legal obligations, timely notification to the relevant management across the Group. Escalation including regulatory or contractual regulatory bodies. paths from this committee exist to the requirements. Barclays PLC Board Risk Committee. Reputation Risk management Overview The risk that an action, transaction, The Group has no tolerance for wilful investment, event, decision, or business breaches of laws, regulations or other legal relationship will reduce trust in the Group’s obligations. However, the multitude of laws integrity and/or competence. and regulations across the globe are highly Overview dynamic and their application to particular A reduction of trust in the Group’s integrity circumstances is often unclear. This and competence may reduce the results in a high level of inherent legal risk attractiveness of the Group to which the Group seeks to mitigate through stakeholders and could lead to negative the operation of a Group-wide legal risk publicity, loss of revenue, regulatory or management framework, which requires

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 296 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Climate risk Climate risk performance The impact on Financial and Operational Risks arising from climate change through, physical risks, risks associated with transitioning to a lower carbon economy and connected risks arising as a result of second order impacts of these two drivers on portfolios. risks arising from the second order impacts of these two drivers on portfolios. As part of climate risk performance, we monitor carbon-related assets and elevated risk sectors, which are identified as portfolios with 'elevated' exposure to the physical and transition risks of climate change. Carbon-related assets We disclose concentrations of credit exposure to carbon-related assets. The TCFD recommends that carbon-related assets are those assets tied to the energy, transportation, materials and buildings and agriculture, food and forest products sectors. All of the sectors that the TCFD now considers to be carbon-related assets include the sectors that Barclays considers at elevated risk from the impacts of climate change. These can be found in the table on the following page. Elevated risk sectors Credit exposures Barclays is working to understand the risks associated with sectors sensitive to the impacts from climate change. Disclosing risk management metrics and quantitative credit exposures supports this approach and our ongoing alignment with the TCFD recommendations. The sectors highlighted blue in the table represent those that the Group considers at an elevated risk from the impacts of climate change. However, in each sector there will exist a range of vulnerabilities and as such these figures do not represent elevated carbon emission exposures and should not be interpreted as an indicator of relative carbon intensity. These sectors have been identified through an analysis of Barclays Industrial Classifications by portfolio and benchmarked against external sources, with additional input from subject matter experts. UK Retail Mortgages For 2022, UK Mortgage assets have been included in the table below. Mortgages do not meet the TCFD definition of a carbon-related asset. However, Mortgages are considered carbon-related, and have been covered as part of our work to assess the financed emissions across our portfolio and measure the baseline emissions that we finance across sectors. Elevated risk sector Drivers of risk Aviation More stringent air emission and carbon regulations, requiring high levels of capital investment and Research & Development (R&D) expenditure. Automotive Policy pressure to cut emissions to meet emission requirements, requiring high levels of capital investment and R&D expenditure. Phase out of fossil fuel vehicles and introduction of low emission zones in city centres. Cement Being one of the hard to abate sectors, policy pressure to cut emissions requires high levels of capital investment and R&D expenditure. Coal Mining and Coal Reduction in demand of thermal coal, as utilities transition away from fossil fuel. More stringent air emissions regulation, Terminals resulting in higher levels of capital investment. Chemicals Increasing environmental regulation, including carbon regulations. The increasing efforts to eliminate single-use plastics and improve recycling to prevent marine pollution could also impact demand for products used in plastic manufacture. Mining (including Rising costs as a result of tighter environmental regulations and increasing water stress. diversified miners) Oil and Gas Policy pressure to cut emissions, exposure to carbon taxes and overall increasing environmental regulation of operations and restrictions on access to new resources. Over time, falling demand for fossil fuels Power Utilities Policy pressure to cut emissions, leading to increased capital expenditure costs, plus potential exposure to carbon taxes. Agriculture Evolving taxation on emissions may impact production methods, supply chain and farm viability. Reduced demand for meat and dairy as a consequence of shifts in consumer behaviour. Volatile weather conditions and extreme weather events may impact farm credit quality. Shipping Policy pressure to cut emissions, requiring higher levels of capital investment. Steel Being an energy-intensive sector, the sector is exposed to the policy pressure to cut emissions and evolving air pollution regulation Road Haulage Policy pressure to cut emissions, requiring high levels of capital investment.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 297 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Climate risk (continued) Carbon-related assets (Incl. sub-sector breakdown) 2022 2021 £m £m Loans & Loans & Loan advances Loan commitments Total advances commitments Total % Change Agriculture, Food and Forest Products 5,639 9,425 15,064 5,718 9,489 15,207 (1%) 3,765 894 4,659 4,081 1,111 5,192 Agriculture 1,669 7,886 9,555 1,428 7,497 8,925 Food, Bev and Tobacco 205 645 850 209 881 1,090 Paper and Forest Products Energy 5,233 26,578 31,811 3,558 24,352 27,910 14% — — — — 45 45 Coal Mining and Coal Terminals 2,752 12,608 15,360 2,365 12,477 14,842 Oil and Gas 2,481 13,970 16,451 1,193 11,830 13,023 Power Utilities Materials and Building 31,610 36,295 67,905 29,945 33,336 63,281 7% 222 160 382 37 353 390 Cement 584 4,377 4,961 498 4,227 4,725 Chemicals 1,574 2,128 3,702 1,416 1,989 3,405 Construction and Materials 3,513 2,121 5,634 4,014 2,066 6,080 Homebuilding and Property Development 3,406 13,110 16,516 3,326 12,141 15,467 Manufacturing 327 656 983 247 553 800 Metals 201 2,262 2,463 152 1,769 1,921 Mining (Incl. diversified miners) 95 314 409 85 288 373 Packaging Manufacturers: Metal, Glass and Plastics 21,648 10,983 32,631 20,135 9,723 29,858 Real Estate Management and Development 40 184 224 35 227 262 Steel Transport 2,937 10,123 13,060 3,211 9,129 12,340 6% 968 5,493 6,461 879 5,133 6,012 Automotive 465 2,221 2,686 553 1,663 2,216 Aviation 647 1,170 1,817 622 1,181 1,803 Other Transport Services 95 87 182 99 115 214 Ports 453 429 882 671 419 1,090 Road Haulage 309 723 1,032 387 618 1,005 Shipping Carbon-related assets in UK Retail Mortgages 162,263 12,103 174,366 158,113 11,315 169,428 3% Subtotal (Elevated risk sectors) 12,240 43,321 55,561 10,851 39,872 50,723 10% Carbon-related Assets Grand Total 207,682 94,524 302,206 200,545 87,621 288,166 5% Total Loans & Advances & Loan Commitments 398,779 395,508 794,287 361,451 345,711 707,162 12% Carbon-related assets / Total Loans & Advances 52% 24% 38% 55% 25% 41% & Loan Commitments Notes: The scope has been widened to 1) include UK Retail Mortgages (£169bn increase in reported exposure) and 2) include all Barclays entities as opposed to just material entities (£15bn increase in reported exposure, predominantly driven by ESHLA loans in BBUKPLC) in 2021. The prior year comparatives have been represented, in line with the expanded scope. The carbon-related assets classification excluded £5.9bn of Fronting Stand By Letter of Credits (SBLCs) that are part of Total loans & advances commitments, since these amounts are counter- indemnified by other lenders.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 298 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Climate risk (continued) Financing To facilitate greater understanding and transparency of our capital markets financing, we disclose the total capital raised for clients across all sectors using data sourced from Dealogic. We have provided the breakdown of our 2021 and 2022 financing below. Barclays discloses the total capital raised for clients across all sectors using data sourced from Dealogic. We then align each transaction by issuer to a sector according to the Barclays Industry Classification (BIC) we apply to that issuer. BIC is Barclays' internal sector classification system. The industry sector categories are designated by Dealogic General and Specific Industry Group classifications. Financing volumes are reported on a manager-proceeds basis including bonds, equities, loans and securitised bonds and no modifications have been made by Barclays. This data represents a third party view of our financing and is subject to Dealogic’s league table methodology, which pro-rates volume across lead-managers. We are presenting the data in this format to support transparency and comparability but it should be noted that this data is subject to further analysis and methodological enhancements, before it is included in BlueTrack™. Carbon-related sectors in wholesale credit (Dealogic Industry Classification) % Change (2022 vs. 2021) 31.12.2022 ($m) 31.12.2021 ($m) Agriculture, Food and Forest Products 9,486 18,416 (48) % Agriculture - 382 Food, Bev and Tobacco 8,609 14,997 Paper and Forest Products 877 3,037 Energy 43,042 39,294 10 % Coal Mining and Coal Terminals - - Oil and Gas 9,747 12,558 Power Utilities 33,295 26,736 Materials and Building 33,750 63,473 (47) % Cement 200 - Chemicals 2,800 4,876 Construction and Materials 3,006 3,181 Homebuilding and Property Development 760 976 Manufacturing 14,062 28,482 Metals 744 1,130 Mining (Incl. diversified miners) 436 2,515 Packaging Manufacturers: Metal, Glass and Plastics 33 932 Real Estate Management and Development 11,271 20,860 Steel 438 521 Transport 9,904 23,559 (58) % Automotive 3,865 9,961 Aviation 2,132 6,221 Other Transport Services 2,648 3,947 Ports - 124 Road Haulage - 1,062 Shipping 1,259 2,244 Carbon-related assets in UK Retail Mortgages - - - Carbon-related Sectors Grand Total 96,182 144,742 (34) % Capital Market Financing Total 374,899 549,118 (32) % Financing to Carbon-related Sector over Total Capital Market Financing 26 % 26 %

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 299 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Climate risk (continued) Subsidence: Total Volume of stock (as % of total UK Mortgage Flood: Total Volume of stock (as % of total UK Mortgage book) book) per risk band per risk band Subsidence is driven by the interplay of precipitation, temperature Flooding in the UK is forecast to increase over time, with the and soil type factors, which result in volumetric changes to the potential for this increase to accelerate if greenhouse gas soil. Increased volatility in weather conditions, as a result of emissions are not reduced. The increased risk of flooding has the climate change, contributes to the acceleration of subsidence potential to impact the valuation of properties directly, as well as impacts. Some areas, particularly those with high concentrations indirectly where a particular area becomes high risk and property of clay soil (i.e. London), are more susceptible to subsidence. This demand falls. Remediation costs, high insurance premiums or shrink-swell impact can cause localised property level impacts, potential lack of insurance coverage have the potential to impact resulting in impacts to the valuation of a property, or impacts to affordability. affordability through remediation costs and high insurance In 2022, Barclays on-boarded a third party to support climate risk premiums. data enhancements within the UK Mortgages portfolio, this resulted in improvements in granularity, moving from postcode In 2022 Barclays on-boarded a third party to support climate risk level to property level flood data. Flood Risk bands are based on data enhancements within the UK Mortgages portfolio, which average annual loss, generated using flood hazard frequency and included the ability to map the UK Mortgage portfolio to flood depth from tidal, surface, pluvial and fluvial flooding and subsidence risk bands based on the near surface subsidence accounting for the mitigating impact of flood defences where hazard level. The scoring is based on soil properties, in particular these are present. Properties in the Moderate and High Risk bands the extent to which the soil will shrink under hot and dry weather are expected to face above average insurance costs given their conditions, as well as the predicted temperature and probability of elevated exposure to flood risk. Those within the Very High band extreme rainfall. These variables are combined with subsidence are considered likely to cede to Flood Re. claims per postcode to generate a pseudo-quantitative score, where a property in class 10 is around ten times as likely as a As at 30 September 2022 property in class 1 to make a subsidence claim. Risk Band Volume % Negligible 78.8% As at 30 September 2022 Very Low 8.0% Risk Band Volume % 1 9.5% Low 2.0% 2 35.3% Moderate 1.8% 3 23.0% High 2.8% 4 4.6% Very High 1.3% 5 4.6% Missing 5.4% 6 3.3% 7 2.4% 8 0.0% 9 0.2% 10 9.9% Missing 7.0%

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 300 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk Credit risk Credit risk: summary of contents Page Credit risk represents a significant risk and mainly arises Credit risk overview and summary of performance 301 from exposure to wholesale and retail loans and advances Maximum exposure and effects of netting, collateral and risk 302 together with the counterparty credit risk arising from transfer derivative contracts entered into with clients. This section outlines the expected credit loss allowances, Expected Credit Losses 304 the movements in allowances during the period, material – Loans and advances at amortised cost by stage 304 management adjustments to model output and – Loans and advances at amortised cost by product 306 measurement uncertainty and sensitivity analysis. – Movement in gross exposure and impairment allowance for 308 loans and advances at amortised cost – Stage 2 decomposition 313 – Stage 3 decomposition 314 Management adjustments to models for impairment 315 Measurement uncertainty and sensitivity analysis 317 The Group reviews and monitors risk concentrations in a Analysis of the concentration of credit risk 326 variety of ways. This section outlines performance against – Geographic concentrations 326 key concentration risks. – Industry concentrations 326 Approach to management and representation of credit quality 328 – Asset credit quality 328 – Debt securities 328 – Balance sheet credit quality 329 – Credit exposures by internal PD grade 331 Credit risk monitors exposure performance across a range Analysis of specific portfolios and asset types 333 of significant portfolios. – Secured home loans 333 – Credit cards, unsecured loans and other retail lending 335 – Government supported loans 336 The Group monitors exposures to assets where there is a Forbearance 337 heightened likelihood of default and assets where an actual – Retail forbearance programmes 338 default has occurred. From time to time, suspension of – Wholesale forbearance programmes 339 certain aspects of client credit agreements are agreed, generally during temporary periods of financial difficulties where the Group is confident that the client will be able to remedy the suspension. This section outlines the current exposure to assets with this treatment. This section provides an analysis of credit risk on debt Analysis of debt securities 339 securities and derivatives. Analysis of derivatives 340

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 301 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Credit quality Charge Credit risk A gradual increase in delinquencies has Credit impairment charges were £1,220m All disclosures in this section are unaudited been observed driven by resumption of (2021: £(653)m release). The charges unless otherwise stated. more regular spend activity in retail. A range reflect an updated macroeconomic Overview of activities are in progress to protect our scenario together with a partial return to Credit risk represents a significant risk to existing defensive positioning against the more normalised levels of customer current macroeconomic headwinds. behaviour. the Group and mainly arises from exposure Gross exposures for government to wholesale and retail loans and advances Management Adjustments supported loan schemes stands at £8bn as together with the counterparty credit risk Macroeconomic uncertainty PMAs at 31 at 2022 (2021: £11.4bn). arising from derivative contracts entered December 2022 amount to £317m (2021: with clients. In wholesale, loans to high-risk sectors as £1,692m). The reduction is informed by the release of COVID-19 related adjustments well as the broader portfolio benefited from Credit risk disclosures include many of the as credit performance stabilises at or below high-quality exposure and credit recommendations of the Taskforce on pre-pandemic levels which is reflected in protection. Disclosures about Expected Credit Losses the models, and a rebuild of certain models (DECL) and it is expected that relevant Further analysis on the credit quality of assets is to better capture the macroeconomic + presented in the approach to management and disclosures will continue to be developed in representation of credit quality section. outlook. Refer to the Management future periods. adjustment to models for impairment Credit risk disclosures exclude other Stage Decomposition section on page 315 for further details. financial assets not subject to credit risk, A net increase of £5.6bn is observed in Refer to the Management adjustment to models for + mainly equity securities. For off-balance Stage 2 gross exposures driven by a weaker impairment section on page 315 for further details. sheet exposures certain contingent macroeconomic forecast in wholesale liabilities not subject to credit risk such as lending (£4.5bn) and normalisation of PDs in Climate performance guarantees are excluded. retail lending (£1.1bn), predominantly credit Whilst there have been no separately cards. Summary of performance in the identifiable charges relating to climate risk in the 2022 reported ECL, it is period Stage 3 balances have decreased by £0.2bn acknowledged that impairment could to £7.1bn compared to 2021 primarily Loans increase over time as risks become more driven by write-offs partially offset by Gross loans and advances at amortised tangible and impact consumers and clients delinquencies in retail unsecured lending. cost to customers and banks have through physical risk or via impacts from increased by £37bn compared to £367bn in Refer to pages 313 to 314 for further details. + the transition to a low carbon economy. 2021. This includes £14bn increase in debt Further detail can be found in the Financial securities driven by Treasury investments. Scenario + statements section in Note 8 Credit impairment Of the remaining growth, £21bn is charges/(releases). Description of terminology can During the year, the economic risk from the be found in the glossary, available at home.barclays/ attributable to strong lending activity in COVID-19 pandemic has receded; annualreport. investment banking and home loans. however, economic uncertainty linked to Further, £9bn in credit cards and unsecured high inflation in major economies and Refer to credit risk management section for the lending is driven by increased customer + details of governance, policies and procedures. heightened geopolitical tensions persists. spending and strategic acquisitions. For Q422, macroeconomic scenarios have Maximum exposure been refreshed and are designed around a broad range of economic outcomes. The The Group’s net exposure to credit risk Downside 2 scenario has been updated increased 13% to £1,033bn (2021: £912bn) with reference to the most recent BoE which is mainly driven by increase in off- Annual Cyclical Scenarios (ACS) stress test. balance sheet loan commitments (£53bn), This has resulted in a movement in weights cash collateral and settlement balances from the upside scenarios to the downside (£20bn), cash held at central banks (£18bn) scenarios. and debt securities issued by governments (£13bn), all of which are considered to be ECL lower risk. Overall, the extent to which the Impairment allowances on loans and Group held mitigation against its total advances at amortised cost including off- exposure remained stable at 44% (2021: balance sheet has decreased to £6,175m 44%). (2021:£6,284m) primarily driven by write- offs. On-balance sheet coverage has reduced to 1.4% (2021: 1.6%) due to movement in portfolio mix towards lower ECL balances, revised recovery expectations and evolving macroeconomic scenarios. Coverage levels remain strong.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 302 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Maximum exposure and effects of netting, collateral and risk transfer The following tables present a reconciliation between the Group's maximum exposure and its net exposure to credit risk, reflecting the financial effects of risk mitigation reducing the Group's exposure. The Group mitigates the credit risk to which it is exposed through netting and set-off, collateral and risk transfer. Further detail on the Group’s policies to each of these forms of credit enhancement is presented on pages 118 to 120 of the Barclays PLC Pillar 3 Report 2022 (unaudited). Collateral obtained Where collateral has been obtained in the event of default, the Group does not, ordinarily, use such assets for its own operations and they are usually sold on a timely basis. The carrying value of assets held by the Group as at 31 December 2022, as a result of the enforcement of collateral, was £31m (2021: £22m). Maximum exposure and effects of netting, collateral and risk transfer (audited) Maximum Netting and Cash Non-cash exposure set-off collateral collateral Risk transfer Net exposure As at 31 December 2022 £m £m £m £m £m £m On-balance sheet: Cash and balances at central banks 256,351 — — — — 256,351 Cash collateral and settlement balances 112,597 — — — — 112,597 Loans and advances at amortised cost: Home loans 173,770 — (328) (173,308) (98) 36 Credit cards, unsecured loans and other retail lending 50,704 — (1,220) (4,161) (243) 45,080 Wholesale loans 174,305 (4,442) (660) (61,335) (17,367) 90,501 Total loans and advances at amortised cost 398,779 (4,442) (2,208) (238,804) (17,708) 135,617 Of which credit-impaired (Stage 3): Home loans 2,000 — (1) (1,996) — 3 Credit cards, unsecured loans and other retail lending 844 — (32) (323) (3) 486 Wholesale loans 2,023 — (6) (742) (709) 566 Total credit-impaired loans and advances at amortised cost 4,867 — (39) (3,061) (712) 1,055 Reverse repurchase agreements and other similar secured lending 776 — — (776) — — Trading portfolio assets: Debt securities 55,475 — — (530) — 54,945 Traded loans 13,198 — — (250) (48) 12,900 Total trading portfolio assets 68,673 — — (780) (48) 67,845 Financial assets at fair value through the income statement: Loans and advances 39,429 — (17) (31,544) (9) 7,859 Debt securities 3,249 — — (321) — 2,928 Reverse repurchase agreements 164,681 — (3,672) (160,347) — 662 Other financial assets 118 — — — — 118 Total financial assets at fair value through the income statement 207,477 — (3,689) (192,212) (9) 11,567 Derivative financial instruments 302,380 (238,337) (34,547) (11,434) (7,275) 10,787 Financial assets at fair value through other comprehensive income 65,054 — — (222) (711) 64,121 Other assets 1,656 — — — — 1,656 Total on-balance sheet 1,413,743 (242,779) (40,444) (444,228) (25,751) 660,541 Off-balance sheet: Contingent liabilities 24,205 — (1,295) (1,596) (280) 21,034 Loan commitments 395,508 — (129) (41,917) (1,666) 351,796 Total off-balance sheet 419,713 — (1,424) (43,513) (1,946) 372,830 Total 1,833,456 (242,779) (41,868) (487,741) (27,697) 1,033,371 Off-balance sheet exposures are shown gross of provisions of £583m (2021: £542m). See Note 25 for further details. In addition to the above, the Group holds forward starting reverse repos with notional contract amounts of £48.4bn (2021: £39.3bn). These balances are fully collateralised. Wholesale loans and advances at amortised cost include £8bn (2021: £11.4bn) of BBLS, CBILS and CLBILS supported by UK government guarantees of £7.6bn (2021: £11bn), which are included within the Risk transfer column in the table. For further information on credit risk mitigation techniques, refer to the Credit risk management section.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 303 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Maximum exposure and effects of netting, collateral and risk transfer (audited) Maximum Netting and Cash Non-cash exposure set-off collateral collateral Risk transfer Net exposure As at 31 December 2021 £m £m £m £m £m £m On-balance sheet: Cash and balances at central banks 238,574 — — — — 238,574 Cash collateral and settlement balances 92,542 — — — — 92,542 Loans and advances at amortised cost: Home loans 169,205 — (339) (168,627) (146) 93 Credit cards, unsecured loans and other retail lending 41,793 — (1,050) (4,560) (252) 35,931 Wholesale loans 150,453 (5,001) (128) (42,691) (23,104) 79,529 Total loans and advances at amortised cost 361,451 (5,001) (1,517) (215,878) (23,502) 115,553 Of which credit-impaired (Stage 3): Home loans 1,725 — (11) (1,714) — — Credit cards, unsecured loans and other retail lending 828 — (29) (229) (3) 567 Wholesale loans 2,161 — (1) (717) (765) 678 Total credit-impaired loans and advances at amortised cost 4,714 — (41) (2,660) (768) 1,245 Reverse repurchase agreements and other similar secured lending 3,227 — — (3,227) — — Trading portfolio assets: Debt securities 50,864 — — (461) — 50,403 Traded loans 12,525 — — (268) — 12,257 Total trading portfolio assets 63,389 — — (729) — 62,660 Financial assets at fair value through the income statement: Loans and advances 38,667 — — (31,263) — 7,404 Debt securities 2,305 — — (319) — 1,986 Reverse repurchase agreements 145,014 — (1,428) (143,057) — 529 Other financial assets 111 — — — — 111 Total financial assets at fair value through the income statement 186,097 — (1,428) (174,639) — 10,030 Derivative financial instruments 262,572 (202,519) (34,598) (5,887) (5,738) 13,830 Financial assets at fair value through other comprehensive income 60,851 — — (53) (1,164) 59,634 Other assets 1,212 — — — — 1,212 Total on-balance sheet 1,269,915 (207,520) (37,543) (400,413) (30,404) 594,035 Off-balance sheet: Contingent liabilities 21,346 — (906) (1,367) (256) 18,817 Loan commitments 345,711 — (141) (44,777) (1,668) 299,125 Total off-balance sheet 367,057 — (1,047) (46,144) (1,924) 317,942 Total 1,636,972 (207,520) (38,590) (446,557) (32,328) 911,977

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 304 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Expected Credit Losses Loans and advances at amortised cost by stage The table below presents a stage allocation and business segment analysis of loans and advances at amortised cost by gross exposure, impairment allowance, impairment charge and coverage ratio as at 31 December 2022. Also included are stage allocation of off- balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage as at 31 December 2022. Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to gross loans and advances to the extent allowance does not exceed the drawn exposure and any excess is reported on the liabilities side of the balance sheet as a provision. For wholesale portfolios, impairment allowance on undrawn exposure is reported on the liability side of the balance sheet as a provision. Loans and advances at amortised cost by stage (audited) Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure As at 31 December 2022 £m £m £m £m £m £m £m £m £m Barclays UK 160,424 24,837 2,711 187,972 232 718 485 1,435 186,537 Barclays International 33,735 4,399 1,793 39,927 392 1,200 949 2,541 37,386 Head Office 3,644 252 661 4,557 3 24 359 386 4,171 Total Barclays Group retail 197,803 29,488 5,165 232,456 627 1,942 1,793 4,362 228,094 Barclays UK 34,858 2,954 805 38,617 129 109 96 334 38,283 Barclays International 117,692 14,298 1,098 133,088 301 265 312 878 132,210 Head Office 192 — 18 210 — — 18 18 192 a Total Barclays Group wholesale 152,742 17,252 1,921 171,915 430 374 426 1,230 170,685 Total loans and advances at amortised cost 350,545 46,740 7,086 404,371 1,057 2,316 2,219 5,592 398,779 Off-balance sheet loan commitments and financial b guarantee contracts 372,945 30,694 1,180 404,819 245 315 23 583 404,236 c Total 723,490 77,434 8,266 809,190 1,302 2,631 2,242 6,175 803,015 Loan impairment charge and loan loss rate Loan impairment Coverage ratio charge/ Loan loss Stage 1 Stage 2 Stage 3 Total (release) rate As at 31 December 2022 % % % % £m bps Barclays UK 0.1 2.9 17.9 0.8 169 9 Barclays International 1.2 27.3 52.9 6.4 763 191 Head Office 0.1 9.5 54.3 8.5 — Total Barclays Group retail 0.3 6.6 34.7 1.9 932 40 Barclays UK 0.4 3.7 11.9 0.9 106 27 Barclays International 0.3 1.9 28.4 0.7 127 10 Head Office — — 100 8.6 — a Total Barclays Group wholesale 0.3 2.2 22.2 0.7 233 14 Total loans and advances at amortised cost 0.3 5.0 31.3 1.4 1,165 29 Off-balance sheet loan commitments and financial b guarantee contracts 0.1 1.0 1.9 0.1 18 Other financial assets subject to c 37 impairment d Total 0.2 3.4 27.1 0.8 1,220 Notes a Includes Wealth and Private Banking exposures measured on an individual customer exposure basis, and excludes Business Banking exposures, including lending under the government backed Bounce Back Loan Scheme (BBLS) of £6.6bn that are managed on a collective basis and reported within BUK Retail. The net impact is a difference in total exposure of £3.8bn of balances reported as wholesale loans in the Loans and advances at amortised cost by product disclosure. b Excludes loan commitments and financial guarantees of £14.9bn carried at fair value. c Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £180.1bn and impairment allowance of £163m. This comprises £10m ECL on £178.4bn Stage 1 assets, £9m on £1.5bn Stage 2 fair value through other comprehensive income assets, other assets, cash collateral and settlement assets and £144m on £149m Stage 3 other assets. d The loan loss rate is 30bps after applying the total impairment charge of £1,220m

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 305 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Loans and advances at amortised cost by stage (audited) Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Net exposure As at 31 December 2021 £m £m £m £m £m £m £m £m £m Barclays UK 160,695 22,779 2,915 186,389 261 949 728 1,938 184,451 Barclays International 25,981 2,691 1,566 30,238 603 795 858 2,256 27,982 Head Office 3,735 429 705 4,869 2 36 347 385 4,484 Total Barclays Group retail 190,411 25,899 5,186 221,496 866 1,780 1,933 4,579 216,917 Barclays UK 35,571 1,917 969 38,457 153 43 111 307 38,150 Barclays International 92,341 13,275 1,059 106,675 187 192 458 837 105,838 Head Office 542 2 21 565 — — 19 19 546 a Total Barclays Group wholesale 128,454 15,194 2,049 145,697 340 235 588 1,163 144,534 Total loans and advances at amortised cost 318,865 41,093 7,235 367,193 1,206 2,015 2,521 5,742 361,451 Off-balance sheet loan commitments and financial b guarantee contracts 312,142 34,815 1,298 348,255 217 302 23 542 347,713 c Total 631,007 75,908 8,533 715,448 1,423 2,317 2,544 6,284 709,164 Loan impairment charge and loan loss rate Loan Coverage ratio impairment Loan loss Stage 1 Stage 2 Stage 3 Total charge rate As at 31 December 2021 % % % % £m bps Barclays UK 0.2 4.2 25.0 1.0 (227) — Barclays International 2.3 29.5 54.8 7.5 181 60 Head Office 0.1 8.4 49.2 7.9 — — Total Barclays Group retail 0.5 6.9 37.3 2.1 (46) — Barclays UK 0.4 2.2 11.5 0.8 122 32 Barclays International 0.2 1.4 43.2 0.8 (197) — Head Office — — 90.5 3.4 — — a Total Barclays Group wholesale 0.3 1.5 28.7 0.8 (75) — Total loans and advances at amortised cost 0.4 4.9 34.8 1.6 (121) — Off-balance sheet loan commitments and financial b guarantee contracts 0.1 0.9 1.8 0.2 (514) Other financial assets subject to c impairment (18) Total 0.2 3.1 29.8 0.9 (653) Notes a Included in the above analysis are Wealth and Private Banking exposures measured on an individual customer exposure basis, and excludes Business Banking exposures including BBLS of £9.4bn that are managed on a collective basis and reported within BUK Retail. The net impact is a difference in total exposure of £6.0bn of balances reported as wholesale loans in the Loans and advances at amortised cost by product disclosure. b Excludes loan commitments and financial guarantees of £18.8bn carried at fair value. c Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £155.2bn and impairment allowance of £114m. This comprises £6m ECL on £154.9bn Stage 1 assets, £1m on £0.157bn Stage 2 fair value through other comprehensive income assets, cash collateral and settlement balances and £107m on £110m Stage 3 other assets.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 306 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Loans and advances at amortised cost by product (audited) The table below presents a breakdown of loans and advances at amortised cost and the impairment allowance with stage allocation by asset classification. Loans and advances at amortised cost by product (audited) Stage 2 30 days past Stage 1 Not past due Total Stage 3 Total As at 31 December 2022 past due due Gross exposure £m £m £m £m £m £m £m 153,672 15,990 1,684 526 18,200 2,414 174,286 Home loans 44,175 7,126 397 576 8,099 2,122 54,396 Credit cards, unsecured loans and other retail lending 152,698 20,194 150 97 20,441 2,550 175,689 Wholesale loans 350,545 43,310 2,231 1,199 46,740 7,086 404,371 Total Impairment allowance 29 53 11 9 73 414 516 Home loans 582 1,483 129 220 1,832 1,278 3,692 Credit cards, unsecured loans and other retail lending 446 403 6 2 411 527 1,384 Wholesale loans 1,057 1,939 146 231 2,316 2,219 5,592 Total Net exposure 153,643 15,937 1,673 517 18,127 2,000 173,770 Home loans 43,593 5,643 268 356 6,267 844 50,704 Credit cards, unsecured loans and other retail lending 152,252 19,791 144 95 20,030 2,023 174,305 Wholesale loans 349,488 41,371 2,085 968 44,424 4,867 398,779 Total Coverage ratio % % % % % % % — 0.3 0.7 1.7 0.4 17.1 0.3 Home loans 1.3 20.8 32.5 38.2 22.6 60.2 6.8 Credit cards, unsecured loans and other retail lending 0.3 2.0 4.0 2.1 2.0 20.7 0.8 Wholesale loans 0.3 4.5 6.5 19.3 5.0 31.3 1.4 Total As at 31 December 2021 Gross exposure £m £m £m £m £m £m £m Home loans 148,058 17,133 1,660 707 19,500 2,122 169,680 37,840 5,102 300 248 5,650 2,332 45,822 Credit cards, unsecured loans and other retail lending Wholesale loans 132,967 15,246 306 391 15,943 2,781 151,691 Total 318,865 37,481 2,266 1,346 41,093 7,235 367,193 Impairment allowance Home loans 19 46 6 7 59 397 475 824 1,493 85 123 1,701 1,504 4,029 Credit cards, unsecured loans and other retail lending Wholesale loans 363 248 4 3 255 620 1,238 Total 1,206 1,787 95 133 2,015 2,521 5,742 Net exposure Home loans 148,039 17,087 1,654 700 19,441 1,725 169,205 37,016 3,609 215 125 3,949 828 41,793 Credit cards, unsecured loans and other retail lending Wholesale loans 132,604 14,998 302 388 15,688 2,161 150,453 Total 317,659 35,694 2,171 1,213 39,078 4,714 361,451 Coverage ratio % % % % % % % Home loans — 0.3 0.4 1.0 0.3 18.7 0.3 2.2 29.3 28.3 49.6 30.1 64.5 8.8 Credit cards, unsecured loans and other retail lending Wholesale loans 0.3 1.6 1.3 0.8 1.6 22.3 0.8 Total 0.4 4.8 4.2 9.9 4.9 34.8 1.6

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 307 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Loans and advances at amortised cost by selected sectors The table below presents a breakdown of drawn exposure and impairment allowance for loans and advances at amortised cost with stage allocation for selected industry sectors within the wholesale loans portfolio. As the nature of macroeconomic uncertainty has evolved from the COVID-19 pandemic towards high inflation, supply chain constraints and consumer demand headwinds, so has the selected population under management focus. The credit risk industry concentration disclosure in the analysis of the concentration of credit risk section represents all the industry categories and the below only covers a subset of that table. The gross loans and advances to selected sectors has declined during the year. The increased provisions is informed by the current macroeconomic outlook and underlying portfolio performance. The wholesale portfolio also benefits from a hedge protection programme that enables effective risk management against credit losses. An additional £115m (December 2021: £123m) impairment allowance has been applied to the undrawn exposures not included in the table below Loans and advances at amortised cost by selected sectors Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 31 December 2022 £m £m £m £m £m £m £m £m Autos 881 194 31 1,106 6 5 6 17 Consumer Manufacture 3,845 1,729 199 5,773 45 41 46 132 Discretionary retail and wholesale 5,143 1,711 249 7,103 41 37 51 129 Hospitality and leisure 3,902 1,316 429 5,647 40 31 70 141 Passenger travel 744 267 51 1,062 9 7 13 29 Real Estate 13,042 3,049 499 16,590 91 66 123 280 Steel and Aluminium manufacturers 486 85 18 589 7 1 8 16 Total 28,043 8,351 1,476 37,870 239 188 317 744 Total of wholesale exposures (%) 18 % 41 % 58 % 22 % 54 % 46 % 60 % 54 % Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 31 December 2021 £m £m £m £m £m £m £m £m Autos 656 295 2 953 3 3 0 6 Consumer Manufacture 3,904 1,304 211 5,419 18 22 43 83 Discretionary retail and wholesale 5,413 1,197 230 6,840 47 20 54 121 Hospitality and leisure 4,348 1,613 384 6,345 28 33 44 105 Passenger travel 856 285 143 1,284 30 8 40 78 Real Estate 13,620 3,314 518 17,452 65 53 93 211 Steel and Aluminium manufacturers 415 75 6 496 2 3 1 6 Total 29,212 8,083 1,494 38,789 193 142 275 610 Total of wholesale exposures (%) 22 % 51 % 54 % 26 % 53 % 56 % 44 % 49 % a Exposure to UK Commercial Real Estate (CRE) £9.7bn (2021: £10bn ) remained stable and was predominantly in Stage1 81% (2021: 78%). The loan portfolio was well collateralised, hence a low coverage of 1.1% (ECL: £0.1bn). Exposure at Stage 3 was 2% (2021: 3%) with a coverage ratio of 12% (2021: 18%). However, UK CRE has been included within selected sector scoping as the broader real estate sector remains under pressure due to pricing and affordability concerns, as well as construction input costs and supply chain issues adding to the uncertainty, in particular across non-investment grade exposures. The coverage ratio for selected sectors has increased from 1.6% as at 31 December 2021 to 2.0% as at 31 December 2022. Non- default coverage ratio has increased from 0.9% as at 31 December 2021 to 1.2% as at 31 December 2022. Note a From 2022, Barclays has enhanced the process of identifying UK CRE exposures.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 308 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Movement in gross exposures and impairment allowance including provisions for loan commitments and financial guarantees The following tables present a reconciliation of the opening to the closing balance of the exposure and impairment allowance. An explanation of the methodology used to determine credit impairment provisions is included in Note 8. Transfers between stages in the tables have been reflected as if they had taken place at the beginning of the year. The movements are measured over a 12-month period.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 309 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Loans and advances at amortised cost (audited) Stage 1 Stage 2 Stage 3 Total Gross Gross Gross Gross exposure ECL exposure ECL exposure ECL exposure ECL £m £m £m £m £m £m £m £m Home loans As at 1 January 2022 148,058 19 19,500 59 2,122 397 169,680 475 Transfers from Stage 1 to Stage 2 (8,747) (1) 8,747 1 — — — — Transfers from Stage 2 to Stage 1 7,489 24 (7,489) (24) — — — — Transfers to Stage 3 (400) — (725) (6) 1,125 6 — — Transfers from Stage 3 32 1 229 4 (261) (5) — — a Business activity in the year 30,028 10 1,142 7 6 — 31,176 17 Refinements to models used for calculation — — — — — — — — Net drawdowns, repayments, net re-measurement (8,846) (22) (1,081) 36 (125) 52 (10,052) 66 and movements due to exposure and risk parameter changes b Final repayments (13,942) (2) (2,123) (4) (426) (9) (16,491) (15) Disposals — — — — — — — — c Write-offs — — — — (27) (27) (27) (27) d As at 31 December 2022 153,672 29 18,200 73 2,414 414 174,286 516 Credit cards, unsecured loans and other retail lending As at 1 January 2022 37,840 824 5,650 1,701 2,332 1,504 45,822 4,029 Transfers from Stage 1 to Stage 2 (3,474) (80) 3,474 80 — — — — Transfers from Stage 2 to Stage 1 1,941 489 (1,941) (489) — — — — Transfers to Stage 3 (649) (20) (707) (307) 1,356 327 — — Transfers from Stage 3 87 33 25 13 (112) (46) — — a Business activity in the year 11,339 177 769 186 157 126 12,265 489 e Refinements to models used for calculation — 86 — (45) — 96 — 137 Net drawdowns, repayments, net re-measurement 1,246 (887) 1,199 736 179 787 2,624 636 and movements due to exposure and risk parameter changes b Final repayments (3,996) (36) (341) (32) (228) (60) (4,565) (128) f Disposals (159) (4) (29) (11) (275) (169) (463) (184) c Write-offs — — — — (1,287) (1,287) (1,287) (1,287) d As at 31 December 2022 44,175 582 8,099 1,832 2,122 1,278 54,396 3,692 Wholesale loans As at 1 January 2022 132,967 363 15,943 255 2,781 620 151,691 1,238 Transfers from Stage 1 to Stage 2 (9,488) (67) 9,488 67 — — — — Transfers from Stage 2 to Stage 1 5,258 55 (5,258) (55) — — — — Transfers to Stage 3 (1,480) (6) (684) (11) 2,164 17 — — Transfers from Stage 3 204 21 339 28 (543) (49) — — a Business activity in the year 40,490 83 4,104 86 239 30 44,833 199 e Refinements to models used for calculation — (64) — (66) — (374) — (504) Net drawdowns, repayments, net re-measurement 12,799 103 352 154 (1,504) 693 11,647 950 and movements due to exposure and risk parameter g changes b Final repayments (26,540) (42) (3,812) (47) (232) (57) (30,584) (146) f Disposals (1,512) — (31) — (49) (47) (1,592) (47) c Write-offs — — — — (306) (306) (306) (306) d As at 31 December 2022 152,698 446 20,441 411 2,550 527 175,689 1,384 Notes a Business activity in the year does not include additional drawdowns on the existing facility which are reported under 'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes'. Business activity reported within Credit cards, unsecured loans and other retail lending portfolio includes GAP portfolio acquisition in US cards of £2.7bn. b Final repayments include repayment from the facility closed during the year whereas partial repayments from existing facility are reported under 'Net drawdowns, repayments, net remeasurement and movements due to exposure and risk parameter changes'. c In 2022, gross write-offs amounted to £1,620m (2021: £1,836m). In Q422, £329m of balances with de minimis recovery expectations were written off in line with policy in UK Cards and Unsecured loans. Post write-off recoveries amounted to £64m (2021: £66m). Net write-offs represent gross write-offs less post write-off recoveries and amounted to £1,556m (2021: £1,770m). d Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £180.1bn (December 2021: £155.2bn) and impairment allowance of £163m (December 2021: £114m). This comprises £10m ECL (December 2021: £6m) on £178.4bn Stage 1 assets (December 2021: £154.9bn), £9m (December 2021: £1m) on £1.5bn Stage 2 fair value through other comprehensive income assets, cash collateral and settlement assets (December 2021: £157m) and £144m (December 2021: £107m) on £149m Stage 3 other assets (December 2021: £110m) e Refinements to models used for calculation reported within Credit cards, unsecured loans and other retail lending portfolio include a £0.3bn movement in US Cards and £(0.2)bn in UK Cards. Wholesale loans include a £(0.5)bn movement in Business Banking. Refinement to models reflect model enhancements made during the year. Barclays continually review the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used continue to reflect the risks inherent across the businesses. f The £0.5bn disposals reported within Credit cards, unsecured loans and other retail lending portfolio includes £0.2bn sale of NFL portfolio within US Cards and £0.3bn of debt sales undertaken during the year. The £1.6bn disposal reported within Wholesale loans includes sale of debt securities as part of Group Treasury Operations. g 'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes' reported within Wholesale loans also include assets of £1.3bn de-recognised due to payment received on defaulted loans from government guarantees issued under government’s Bounce Back Loans Scheme.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 310 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Reconciliation of ECL movement to credit impairment charge/(release) for the period Stage 1 Stage 2 Stage 3 Total £m £m £m £m Home loans 10 14 44 68 Credit cards, unsecured loans and other retail lending (238) 142 1,230 1,134 Wholesale loans 83 156 260 499 ECL movement excluding assets derecognised due to disposals and write-offs (145) 312 1,534 1,701 ECL movement on loan commitments and other financial guarantees 28 13 — 41 a ECL movement on other financial assets 4 8 37 49 b Recoveries and reimbursements (122) (63) (78) (263) c Total exchange and other adjustments (308) Total credit impairment charge for the year 1,220 Notes a Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £180.1bn (December 2021: £155.2bn) and impairment allowance of £163m (December 2021: £114m). This comprises £10m ECL (December 2021: £6m) on £178.4bn Stage 1 assets (December 2021: £154.9bn), £9m (December 2021: £1m) on £1.5bn Stage 2 fair value through other comprehensive income assets, cash collateral and settlement assets (December 2021: £157m) and £144m (December 2021: £107m) on £149m Stage 3 other assets (December 2021: £110m). b Recoveries and reimbursements includes £199m for reimbursements expected to be received under the arrangement where Group has entered into financial guarantee contracts which provide credit protection over certain assets with third parties and cash recoveries of previously written off amounts of £64m. c Includes foreign exchange and interest and fees in suspense. Loan commitments and financial guarantees (audited) Stage 1 Stage 2 Stage 3 Total Gross Gross Gross Gross exposure ECL exposure ECL exposure ECL exposure ECL £m £m £m £m £m £m £m £m Home loans As at 1 January 2022 10,833 — 532 — 3 — 11,368 — Net transfers between stages 8 — (17) — 9 — — — Business activity in the year 8,034 — — — — — 8,034 — Net drawdowns, repayments, net re- measurement and movement due to exposure (6,793) — (21) — (6) — (6,820) — and risk parameter changes Limit management and final repayments (368) — (44) — — — (412) — As at 31 December 2022 11,714 — 450 — 6 — 12,170 — Credit cards, unsecured loans and other retail lending As at 1 January 2022 122,819 50 5,718 61 218 20 128,755 131 Net transfers between stages (3,390) 47 3,050 (42) 340 (5) — — Business activity in the year 38,204 25 451 27 14 2 38,669 54 Net drawdowns, repayments, net re- measurement and movement due to exposure 9,633 (54) (1,949) 67 (151) 5 7,533 18 and risk parameter changes Limit management and final repayments (8,212) (7) (503) (23) (89) (2) (8,804) (32) As at 31 December 2022 159,054 61 6,767 90 332 20 166,153 171 Wholesale loans As at 1 January 2022 178,490 167 28,565 241 1,077 3 208,132 411 Net transfers between stages 5,826 60 (5,759) (64) (67) 4 — — Business activity in the year 43,683 28 4,233 54 15 — 47,931 82 Net drawdowns, repayments, net re- measurement and movement due to exposure 28,353 (42) 5,953 59 138 (2) 34,444 15 and risk parameter changes Limit management and final repayments (54,175) (29) (9,515) (65) (321) (2) (64,011) (96) As at 31 December 2022 202,177 184 23,477 225 842 3 226,496 412

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 311 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Loans and advances at amortised cost (audited) Stage 1 Stage 2 Stage 3 Total Gross Gross Gross Gross exposure ECL exposure ECL exposure ECL exposure ECL £m £m £m £m £m £m £m £m Home loans As at 1 January 2021 138,639 33 19,312 84 2,234 421 160,185 538 Transfers from Stage 1 to Stage 2 (7,672) (2) 7,672 2 — — — — Transfers from Stage 2 to Stage 1 5,336 32 (5,336) (32) — — — — Transfers to Stage 3 (282) — (469) (9) 751 9 — — Transfers from Stage 3 35 1 203 5 (238) (6) — — a Business activity in the year 32,744 7 1,243 5 4 — 33,991 12 b Refinements to models used for calculation — — — (4) — 38 — 34 Net drawdowns, repayments, net re- (8,131) (50) (1,090) 12 (216) (26) (9,437) (64) measurement and movements due to exposure and risk parameter changes c Final repayments (12,039) (2) (2,009) (4) (392) (18) (14,440) (24) d Disposals (572) — (26) — — — (598) — e Write-offs — — — — (21) (21) (21) (21) f As at 31 December 2021 148,058 19 19,500 59 2,122 397 169,680 475 Credit cards, unsecured loans and other retail lending As at 1 January 2021 33,021 680 10,320 2,769 3,172 2,251 46,513 5,700 Transfers from Stage 1 to Stage 2 (1,894) (78) 1,894 78 — — — — Transfers from Stage 2 to Stage 1 4,717 1,174 (4,717) (1,174) — — — — Transfers to Stage 3 (529) (22) (790) (370) 1,319 392 — — Transfers from Stage 3 55 26 32 19 (87) (45) — — a Business activity in the year 7,842 119 257 62 42 19 8,141 200 b Refinements to models used for calculation — (5) — (33) — 14 — (24) Net drawdowns, repayments, net re- (2,793) (1,030) (848) 389 (165) 620 (3,806) (21) measurement and movements due to exposure g and risk parameter changes c Final repayments (2,579) (40) (498) (39) (212) (92) (3,289) (171) d Disposals — — — — (287) (205) (287) (205) e Write-offs — — — — (1,450) (1,450) (1,450) (1,450) f As at 31 December 2021 37,840 824 5,650 1,701 2,332 1,504 45,822 4,029 Wholesale loans As at 1 January 2021 119,304 320 21,374 711 3,591 1,066 144,269 2,097 Transfers from Stage 1 to Stage 2 (6,115) (19) 6,115 19 — — — — Transfers from Stage 2 to Stage 1 9,137 257 (9,137) (257) — — — — Transfers to Stage 3 (804) (4) (377) (21) 1,181 25 — — Transfers from Stage 3 580 23 410 22 (990) (45) — — a Business activity in the year 34,804 95 1,774 18 283 50 36,861 163 b Refinements to models used for calculation — 8 — 11 — — — 19 Net drawdowns, repayments, net re- (417) (268) 721 (68) (211) 67 93 (269) measurement and movements due to exposure and risk parameter changes c Final repayments (22,219) (34) (4,734) (174) (545) (131) (27,498) (339) d Disposals (1,303) (15) (203) (6) (163) (47) (1,669) (68) e Write-offs — — — — (365) (365) (365) (365) f As at 31 December 2021 132,967 363 15,943 255 2,781 620 151,691 1,238 Notes a Business activity in the year does not include additional drawdowns on the existing facility which are reported under 'Net drawdowns, repayments, net re-measurement and movements due to exposure and risk parameter changes'. b Refinements to models used for calculation include a £34m movement in Home loans, £(24)m in Credit cards, unsecured loans and other retail lending and £19m in Wholesale loans. These reflect methodology changes made during the year. Barclays continually review the output of models to determine accuracy of the ECL calculation including review of model monitoring, external benchmarking and experience of model operation over an extended period of time. This ensures that the models used continue to reflect the risks inherent across the businesses. c Final repayments include repayment from the facility closed during the year whereas partial repayments from existing facility are reported under 'Net drawdowns, repayments, net remeasurement and movements due to exposure and risk parameter changes'. d The £598m disposals reported within Home loans relate to transfer of facilities to a non-consolidated special purpose vehicle for the purpose of securitisation. The £287m disposals reported within Credit cards, unsecured loans and other retail lending portfolio relate to debt sales undertaken during the year. The £1.7bn disposal reported within Wholesale loans include a £1.0bn sale of Barclays Asset Finance and a £0.7bn of debt sales. e In 2021, gross write-offs amounted to £1,836m (2020: £1,964m) and post write-off recoveries amounted to £66m (2020: £35m). Net write-offs represent gross write-offs less post write-off recoveries and amounted to £1,770m (2020: £1,929m). f Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £155.2bn (December 2020: £180.3bn) and impairment allowance of £114m (December 2020: £165m). This comprises £6m ECL (December 2020: £11m) on £154.9bn Stage 1 assets (December 2020: £175.7bn), £1m (December 2020: £9m) on £157m Stage 2 fair value through other comprehensive income assets, cash collateral and settlement assets (December 2020: £4.4bn) and £107m (December 2020: £145m) on £110m Stage 3 other assets (December 2020: £154m). g Transfers and risk parameters change include a £0.3bn (2020: £0.6bn) net release in ECL arising from reclassification of £1.9bn (2020: £2.0bn) gross loans and advances from Stage 2 to Stage 1 in Credit cards, unsecured loans and other retail lending. The reclassification followed a review of back-testing of results which indicated that accuracy of origination probability of default characteristics require management adjustments to correct and was first established in Q220.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 312 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Reconciliation of ECL movement to credit impairment charge/(release) for the period Stage 1 Stage 2 Stage 3 Total £m £m £m £m Home loans (14) (25) (3) (42) Credit cards, unsecured loans and other retail lending 144 (1,068) 908 (16) Wholesale loans 58 (450) (34) (426) ECL movement excluding assets derecognised due to disposals and write-offs 188 (1,543) 871 (484) ECL movement on loan commitments and financial guarantees (39) (456) (27) (522) a ECL movement on other financial assets (5) (8) (2) (15) b Recoveries and reimbursements 59 224 (43) 240 c Total exchange and other adjustments 128 Total credit impairment release for the year (653) Notes a Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of £155.2bn (December 2020: £180.3bn) and impairment allowance of £114m (December 2020: £165m). This comprises £6m ECL (December 2020: £11m) on £154.9bn Stage 1 assets (December 2020: £175.7bn), £1m (December 2020: £9m) on £157mn Stage 2 fair value through other comprehensive income assets, cash collateral and settlement assets (December 2020: £4.4bn) and £107m (December 2020: £145m) on £110m Stage 3 other assets (December 2020: £154m). b Recoveries and reimbursements includes a net reduction in amounts recoverable from financial guarantee contracts held with third parties of £306m and cash recoveries of previously written off amounts of £66m. c Includes foreign exchange and interest and fees in suspense. Loan commitments and financial guarantees (audited) Stage 1 Stage 2 Stage 3 Total Gross Gross Gross Gross exposure ECL exposure ECL exposure ECL exposure ECL £m £m £m £m £m £m £m £m Home loans As at 1 January 2021 11,861 — 516 — 5 — 12,382 — Net transfers between stages (131) — 124 — 7 — — — Business activity in the year 7,034 — — — — — 7,034 — Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes (7,556) — (64) — (4) — (7,624) — Limit management and final repayments (375) — (44) — (5) — (424) — As at 31 December 2021 10,833 — 532 — 3 — 11,368 — Credit cards, unsecured loans and other retail lending As at 1 January 2021 114,371 55 12,117 305 229 23 126,717 383 Net transfers between stages 5,769 206 (6,379) (213) 610 7 — — Business activity in the year 11,206 — 430 — 2 — 11,638 — Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes (742) (207) 217 (24) (526) (10) (1,051) (241) Limit management and final repayments (7,785) (4) (667) (7) (97) 0 (8,549) (11) As at 31 December 2021 122,819 50 5,718 61 218 20 128,755 131 Wholesale loans As at 1 January 2021 163,707 201 40,258 453 2,096 27 206,061 681 Net transfers between stages 8,227 221 (7,174) (215) (1,053) (6) — — Business activity in the year 44,085 14 4,658 102 10 — 48,753 116 Net drawdowns, repayments, net re- measurement and movement due to exposure and risk parameter changes 8,819 (229) (151) 7 515 (11) 9,183 (233) Limit management and final repayments (46,348) (40) (9,026) (106) (491) (7) (55,865) (153) As at 31 December 2021 178,490 167 28,565 241 1,077 3 208,132 411

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 313 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Stage 2 decomposition a Loans and advances at amortised cost Gross Exposure Impairment Allowance Quantitative 30 days past due Quantitative 30 days past due Qualitative test Qualitative test Total Stage 2 Total Stage 2 test backstop test backstop As at 31 December 2022 £m £m £m £m £m £m £m £m 9,467 8,232 501 18,200 47 19 7 73 Home Loans Credit cards, unsecured 6,009 1,986 104 8,099 1,379 428 25 1,832 loans and other retail lending 17,274 3,024 143 20,441 324 82 5 411 Wholesale loans Total Stage 2 32,750 13,242 748 46,740 1,750 529 37 2,316 a Loans and advances at amortised cost Gross Exposure Impairment Allowance Quantitative 30 days past due Quantitative 30 days past due Qualitative test Qualitative test test backstop test backstop Total Stage 2 Total Stage 2 As at 31 December 2021 £m £m £m £m £m £m £m £m 11,997 6,900 603 19,500 38 10 11 59 Home Loans Credit cards, unsecured 4,045 1,503 102 5,650 1,368 318 15 1,701 loans and other retail lending 13,054 2,488 401 15,943 206 44 5 255 Wholesale loans Total Stage 2 29,096 10,891 1,106 41,093 1,612 372 31 2,015 Note a Where balances satisfy more than one of the above three criteria for determining a significant increase in credit risk, the corresponding gross exposure and ECL has been assigned in order of categories presented. Stage 2 exposures are predominantly identified using quantitative tests where the lifetime PD has deteriorated more than a pre- determined amount since origination during the year. This is augmented by inclusion of accounts meeting the designated high risk criteria (including watchlist) for the portfolio under the qualitative test. Qualitative tests predominantly include £9.8bn (2021: £8.3bn) in Barclays UK of which £8.2bn (2021: £6.8bn) relates to UK Home Finance, £0.8bn (2021: £1.0bn) relates to Business Banking and £0.5bn (2021: £0.2bn) relates to Barclaycard UK. A further £3.4bn (2021: £2.6bn) relates to Barclays International of which £2.1bn (2021: £1.4bn) relates to Corporate and Investment Bank and £1.2bn (2021: £1.1bn) relates to Consumer, Cards and Payments. A small number of other accounts (2% of impairment allowances and 2% of gross exposure) are included in Stage 2. These accounts are not otherwise identified by the quantitative or qualitative tests but are more than 30 days past due. The percentage triggered by these backstop criteria is a measure of the effectiveness of the Stage 2 criteria in identifying deterioration prior to delinquency. These balances include items in the Corporate and Investment Bank for reasons such as outstanding interest and fees rather than principal balances. For further detail on the three criteria for determining a significant + increase in credit risk required for Stage 2 classification, refer to Note 8.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 314 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Stage 3 decomposition Loans and advances at amortised cost Gross Exposure Impairment Allowance Exposures not Exposures not Exposures Exposures charged-off charged-off individually individually Total Stage 3 including within including within assessed or in assessed or in a a cure period cure period recovery book recovery book Total Stage 3 As at 31 December 2022 £m £m £m £m £m £m 1,481 933 2,414 75 339 414 Home Loans Credit cards, unsecured loans and other retail 1,056 1,066 2,122 609 669 1,278 lending 1,525 1,025 2,550 110 417 527 Wholesale loans Total Stage 3 4,062 3,024 7,086 794 1,425 2,219 Loans and advances at amortised cost Gross Exposure Impairment Allowance Exposures not Exposures not Exposures Exposures charged-off charged-off individually individually Total Stage 3 including within including within assessed or in assessed or in a a cure period cure period recovery book recovery book Total Stage 3 As at 31 December 2021 £m £m £m £m £m £m 1,159 963 2,122 65 332 397 Home Loans Credit cards, unsecured loans and other retail 929 1,403 2,332 477 1,027 1,504 lending 1,806 975 2,781 115 505 620 Wholesale loans Total Stage 3 3,894 3,341 7,235 657 1,864 2,521 Note a Includes £2.2bn (2021: £2.9bn) of gross exposure in a cure period that must remain in Stage 3 for a minimum of 12 months before moving to Stage 2. Stage 3 is comprised of exposures that are considered to be credit impaired. An asset is considered credit impaired when one or more events occur that have a detrimental impact on the estimated future cash flows of the financial asset. This comprises assets defined as defaulted and other individually assessed exposures where imminent default or actual loss is identified. Stage 3 exposures have reduced compared to 2021 driven by de-recognition of defaulted Wholesale Bounce Back Loans and Cards and Unsecured balances with de minimis recovery expectations, offset by on-going flows into default. In Home Loans, the increase is driven by adoption of the new definition of default under the Capital Requirements Regulation.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 315 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Management adjustments to models for impairment (audited) Management adjustments to impairment models are applied in order to factor in certain conditions or changes in policy that are not fully incorporated into the impairment models, or to reflect additional facts and circumstances at the period end. Management adjustments are reviewed and incorporated into future model development where applicable. Management adjustments are captured through “Economic uncertainty” and “Other” adjustments presented by product below: a Management adjustments to models for impairment allowance presented by product (audited) Proportion of Impairment Economic Management allowance pre uncertainty Other Management Total adjustments to management adjustments adjustments adjustments impairment total impairment b C adjustments (a) (b) (a+b) allowance allowance As at 31 December 2022 £m £m £m £m £m % Home loans 427 4 85 89 516 17.2 Credit cards, unsecured loans and other retail lending 3,543 118 202 320 3,863 8.3 Wholesale loans 1,680 195 (79) 116 1,796 6.5 Total 5,650 317 208 525 6,175 8.5 As at 31 December 2021 £m £m £m £m £m % Home loans 372 72 31 103 475 21.7 Credit cards, unsecured loans and other retail lending 2,798 1,217 145 1,362 4,160 32.7 Wholesale loans 1,628 403 (382) 21 1,649 1.3 Total 4,798 1,692 (206) 1,486 6,284 23.6 Economic uncertainty adjustments presented by stage (audited) Stage 1 Stage 2 Stage 3 Total As at 31 December 2022 £m £m £m £m Home loans 1 3 — 4 Credit cards, unsecured loans and other retail lending 24 93 1 118 Wholesale loans 181 14 — 195 Total 206 110 1 317 Stage 1 Stage 2 Stage 3 Total As at 31 December 2021 £m £m £m £m Home loans 5 35 32 72 Credit cards, unsecured loans and other retail lending 403 803 11 1,217 Wholesale loans 333 70 — 403 Total 741 908 43 1,692 Notes a Positive values reflect an increase in impairment allowance and negative values reflect a reduction in the impairment allowance. b Includes £4.8bn (December 2021: £4.2bn) of modelled ECL, £0.4bn (December 2021: £0.5bn) of individually assessed impairments and £0.5bn (December 2021: £0.1bn) ECL from non-modelled exposures. c Total impairment allowance consists of ECL stock on drawn and undrawn exposure. Economic uncertainty adjustments Models have been developed with data from non-inflationary periods establishing a relationship between input variables and customer delinquency based on past behaviour. Additionally, models are trying to interpret significant rates of change in macroeconomic variables and applying these to stable probability of default (PD) levels. As such there is a risk that the modelled output fails to capture the appropriate response to changes in macroeconomic variables and rising costs with modelled impairment provisions impacted by uncertainty. This uncertainty continues to be captured in two ways. Firstly, customer uncertainty: the identification of customers and clients who may be more vulnerable to economic instability; and secondly, model uncertainty: to capture the impact from model limitations and sensitivities to specific macroeconomic parameters which are applied at a portfolio level. In 2022, previously established economic uncertainty adjustments have been partially released, informed by some normalisation of customer behaviour, refreshed scenarios and a rebuild of certain models to better capture the macroeconomic outlook. The balance as at 31 December 2022 is £317m (December 2021: £1,692m) and includes: Customer and client uncertainty provisions of £423m (December 2021: £1,508m) includes: Credit cards, unsecured loans and other retail lending includes an adjustment of £118m (December 2021: £1,203m) which has been applied to customers and clients considered most vulnerable to affordability pressures. This adjustment is predominantly held in Stage 2 in line with customer risk profiles. The reduction is informed by the release of COVID-19 related adjustments as credit performance stabilises at or below pre-pandemic levels which is reflected in the models, and a rebuild of certain models to better capture the macroeconomic outlook.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 316 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Wholesale loans: £301m (December 2021: £305m) includes an adjustment of £205m for exposures considered most at risk from inflationary concerns, supply chain constraints and consumer demand headwinds. The adjustment involves applying stage 2 coverage rates to stage 1 exposures assessed as most vulnerable. Sectors in scope are presented in the selected sectors disclosure on page 307. The remaining adjustment includes £92m to reflect possible cross default risk on Barclays’ lending in respect of clients who have taken bounce back loans. Model uncertainty provisions of £(106)m (December 2021: £184m) includes: Wholesale loans: £(106)m (December 2021: £98m) includes an adjustment to correct for the deterioration in wholesale PDs impacted by model over-sensitivity to certain macroeconomic variables. In 2021, this adjustment was held at £98m driven by an unintuitive model output from certain Q421 macroeconomic variables. Management adjustments of £72m within home loans in 2021 primarily comprised of a now retired adjustment, reflecting the non- linearity of the UK mortgages portfolio in order to generate a more appropriate level of predicted results. Other adjustments Other adjustments are operational in nature and are expected to remain in place until they can be reflected in the underlying models. These adjustments result from data limitations and model performance related issues identified through model monitoring and other established governance processes. Other adjustments of £208m (December 2021: £(206)m) includes: Home loans: £85m (December 2021: £31m) primarily includes adjustments for model performance informed by model monitoring and an adjustment for the adoption of the new definition of default under the Capital Requirements Regulation. Credit cards, unsecured loans and other retail lending: £202m (December 2021: £145m) primarily includes an adjustment for adoption of the new definition of default under the Capital Requirements Regulation and an adjustment to the qualitative measures used in identification of high-risk account management (HRAM) accounts for US cards, partially offset by a recalibration of Loss Given Default (LGD) to reflect revised recovery expectations. The £145m adjustments held in December 2021 primarily included adjustments for model performance informed by model monitoring, partially offset by an adjustment for reclassification of loans and advances from Stage 2 to Stage 1 in credit cards. The reclassification followed a review of back-testing results which indicated that accuracy of origination probability of default characteristics require management adjustment. These adjustments are no longer required due to model enhancements made during the year. Wholesale loans: £(79)m (December 2021: £(382)m) includes adjustments for model performance informed by model monitoring. Management adjustments of £(382)m within wholesale loans in 2021 consisted of an adjustment of £(380)m applied on bounce back loans to reverse out the modelled charge which did not consider the government guarantee. This adjustment is no longer needed due to model enhancements made during the year.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 317 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Measurement uncertainty and sensitivity analysis The measurement of modelled ECL involves complexity and judgement, including estimation of probabilities of default (PD), loss given default (LGD), a range of unbiased future economic scenarios, estimation of expected lives, estimation of exposures at default (EAD) and assessing significant increases in credit risk. The Group uses a five-scenario model to calculate ECL. An external consensus forecast is assembled from key sources, including HM Treasury (short and medium term forecasts) and Bloomberg (based on median of economic forecasts) which forms the Baseline scenario. In addition, two adverse scenarios (Downside 1 and Downside 2) and two favourable scenarios (Upside 1 and Upside 2) are derived, with associated probability weightings. The adverse scenarios are calibrated to a broadly similar severity to the Group's internal stress tests and stress scenarios provided by regulators whilst also considering IFRS 9 specific sensitivities and non-linearity. The favourable scenarios are designed to reflect plausible upside risks to the Baseline scenario which are broadly consistent with the economic narrative approved by the Senior Scenario Review Committee. All scenarios are regenerated at a minimum semi-annually. The scenarios include key economic variables, (including GDP, unemployment, House Price Index (HPI) and base rates in both the UK and US markets), and expanded variables using statistical models based on historical correlations. The upside and downside shocks are designed to evolve over a five-year stress horizon, with all five scenarios converging to a steady state after approximately seven years. Scenarios used to calculate the Group’s ECL charge were refreshed in Q422 with the Baseline scenario reflecting the latest consensus macroeconomic forecasts available at the time of the scenario refresh. In the Baseline scenario, further deterioration in major economies, as inflation pressures continue to squeeze household income, along with significant monetary policy tightening, contribute to lower growth prospects. UK GDP is expected to continue falling into 2023 and the US economy dips into mild recession in 2023. Slight increases in the UK and US unemployment rates are expected, peaking at 4.9% in Q423 and 4.7% in Q124 respectively. Central banks continue raising interest rates, peaking during 2023, and consumer price inflation eases over 2023. In the Downside 2 scenario, inflation continues to accelerate amid increasing gas and oil prices and persistent supply-chain pressures as a result of the conflict in Ukraine. Central banks are forced to raise interest rates sharply with the UK bank rate reaching 8.0% and the US federal funds rate peaking at 7.0%. Unemployment peaks at 8.5% in the UK and 8.6% in the US. Given already stretched valuations, the sharp increase in borrowing costs sees house prices decrease significantly. In the Upside 2 scenario, lower energy prices add downward pressure on prices globally, while recovering labour force participation limits wage growth. Asa result of easing inflation, central banks lower interest rates to support the economic recovery. The methodology for estimating scenario probability weights involves simulating a range of future paths for UK and US GDP using historical data with the five scenarios mapped against the distribution of these future paths. The median is centred around the Baseline with scenarios further from the Baseline attracting a lower weighting before the five weights are normalised to total 100%. The same scenarios used in the estimation of expected credit losses are also used to inform Barclays' internal planning. The impacts across the portfolios are different because of the sensitivities of each of the portfolios to specific macroeconomic variables, for example, mortgages are highly sensitive to house prices, credit cards and unsecured consumer loans are highly sensitive to unemployment. The increase in the Downside weightings and the decrease in the Upside weightings reflected the deteriorating economic outlook which moved the Baseline UK/US GDP paths closer to the Downside scenarios For further details see page 320. The economic uncertainty adjustments of £0.3bn (2021: £1.7bn) have been applied as overlays to the modelled ECL output. These adjustments consist of a customer and client uncertainty provision of £0.4bn (2021: £1.5bn) which has been applied to customers and clients considered most vulnerable to affordability pressures, and a model uncertainty adjustment of £(0.1)bn (2021: £0.2bn). For further details see pages 315 to 316. The tables below show the key macroeconomic variables used in the five scenarios (5 year annual paths), the probability weights applied to each scenario and the macroeconomic variables by scenario using ‘specific bases’ i.e. the most extreme position of each variable in the context of the scenario, for example, the highest unemployment for downside scenarios and the lowest unemployment for upside scenarios. 5-year average tables and movement over time graphs provide additional transparency. Annual paths show quarterly averages for the year (unemployment and base rate) or change in the year (GDP and HPI).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 318 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Baseline average macroeconomic variables used in the calculation of ECL 2022 2023 2024 2025 2026 As at 31 December 2022 % % % % % a UK GDP 3.3 (0.8) 0.9 1.8 1.9 b UK unemployment 3.7 4.5 4.4 4.1 4.2 c UK HPI 8.4 (4.7) (1.7) 2.2 2.2 UK bank rate 1.8 4.4 4.1 3.8 3.4 a US GDP 1.8 0.5 1.2 1.5 1.5 d US unemployment 3.7 4.3 4.7 4.7 4.7 e US HPI 11.2 1.8 1.5 2.3 2.4 US federal funds rate 2.1 4.8 3.6 3.1 3.0 2021 2022 2023 2024 2025 As at 31 December 2021 % % % % % a UK GDP 6.2 4.9 2.3 1.9 1.7 b UK unemployment 4.8 4.7 4.5 4.3 4.2 c UK HPI 4.7 1.0 1.9 1.9 2.3 UK bank rate 0.1 0.8 1.0 1.0 0.8 a US GDP 5.5 3.9 2.6 2.4 2.4 d US unemployment 5.5 4.2 3.6 3.6 3.6 e US HPI 11.8 4.5 5.2 4.9 5.0 US federal funds rate 0.2 0.3 0.9 1.2 1.3 Downside 2 average macroeconomic variables used in the calculation of ECL 2022 2023 2024 2025 2026 As at 31 December 2022 % % % % % a UK GDP 3.3 (3.4) (3.8) 2.0 2.3 b UK unemployment 3.7 6.0 8.4 8.0 7.4 c UK HPI 8.4 (18.3) (18.8) (7.7) 8.2 UK bank rate 1.8 7.3 7.9 6.6 5.5 a US GDP 1.8 (2.7) (3.4) 2.0 2.6 d US unemployment 3.7 6.0 8.5 8.1 7.1 e US HPI 11.2 (3.1) (4.0) (1.9) 4.8 US federal funds rate 2.1 6.6 6.9 5.8 4.6 2021 2022 2023 2024 2025 As at 31 December 2021 % % % % % a UK GDP 6.2 0.2 (4.0) 2.8 4.3 b UK unemployment 4.8 7.2 9.0 7.6 6.3 c UK HPI 4.7 (14.3) (21.8) 11.9 15.2 UK bank rate 0.1 2.2 3.9 3.1 2.2 a US GDP 5.5 (0.8) (3.5) 2.5 3.2 d US unemployment 5.5 6.4 9.1 8.1 6.4 e US HPI 11.8 (6.6) (9.0) 5.9 6.7 US federal funds rate 0.2 2.1 3.4 2.6 2.0 Notes a Average Real GDP seasonally adjusted change in year. b Average UK unemployment rate 16-year+. c Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. d Average US civilian unemployment rate 16-year+. e Change in year end US HPI = FHFA house price index, relative to prior year end.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 319 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Downside 1 average macroeconomic variables used in the calculation of ECL 2022 2023 2024 2025 2026 As at 31 December 2022 % % % % % a UK GDP 3.3 (2.1) (1.5) 1.9 2.1 b UK unemployment 3.7 5.2 6.4 6.0 5.8 c UK HPI 8.4 (11.7) (10.6) (2.8) 5.2 UK bank rate 1.8 5.9 6.1 5.3 4.6 a US GDP 1.8 (1.1) (1.1) 1.7 2.1 d US unemployment 3.7 5.1 6.6 6.4 5.9 e US HPI 11.2 (0.7) (1.3) 0.2 3.6 US federal funds rate 2.1 5.8 5.4 4.4 3.9 2021 2022 2023 2024 2025 As at 31 December 2021 % % % % % a UK GDP 6.2 2.8 (0.7) 2.3 2.9 b UK unemployment 4.8 6.2 6.8 6.0 5.3 c UK HPI 4.7 (6.8) (10.5) 6.9 8.6 UK bank rate 0.1 1.6 2.7 2.3 1.6 a US GDP 5.5 1.6 (0.4) 2.4 2.7 d US unemployment 5.5 5.4 6.6 6.1 5.2 e US HPI 11.8 (1.2) (2.1) 4.8 5.2 US federal funds rate 0.2 1.3 2.3 2.1 1.8 Upside 2 average macroeconomic variables used in the calculation of ECL 2022 2023 2024 2025 2026 As at 31 December 2022 % % % % % a 3.3 2.8 3.7 2.9 2.4 UK GDP b 3.7 3.5 3.4 3.4 3.4 UK unemployment c 8.4 8.7 7.5 4.4 4.2 UK HPI 1.8 3.1 2.6 2.5 2.5 UK bank rate a 1.8 3.3 3.5 2.8 2.8 US GDP d 3.7 3.3 3.3 3.3 3.3 US unemployment e 11.2 5.8 5.1 4.5 4.5 US HPI 2.1 3.6 2.9 2.8 2.8 US federal funds rate 2021 2022 2023 2024 2025 As at 31 December 2021 % % % % % a 6.2 7.2 4.0 2.7 2.1 UK GDP b 4.8 4.5 4.1 4.0 4.0 UK unemployment c 4.7 8.5 9.0 5.2 4.2 UK HPI 0.1 0.2 0.5 0.5 0.3 UK bank rate a 5.5 5.3 4.1 3.5 3.4 US GDP d 5.5 3.9 3.4 3.3 3.3 US unemployment e 11.8 10.6 8.5 7.2 6.6 US HPI 0.2 0.3 0.4 0.7 1.0 US federal funds rate Notes a Average Real GDP seasonally adjusted change in year. b Average UK unemployment rate 16-year+. c Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. d Average US civilian unemployment rate 16-year+. e Change in year end US HPI = FHFA house price index, relative to prior year end.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 320 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Upside 1 average macroeconomic variables used in the calculation of ECL 2022 2023 2024 2025 2026 As at 31 December 2022 % % % % % a UK GDP 3.3 1.0 2.3 2.4 2.1 b UK unemployment 3.7 4.0 3.9 3.8 3.8 c UK HPI 8.4 1.8 2.9 3.3 3.2 UK bank rate 1.8 3.5 3.3 3.0 2.8 a US GDP 1.8 1.9 2.3 2.2 2.2 d US unemployment 3.7 3.8 4.0 4.0 4.0 e US HPI 11.2 3.8 3.3 3.4 3.4 US federal funds rate 2.1 3.9 3.4 3.0 3.0 2021 2022 2023 2024 2025 As at 31 December 2021 % % % % % a UK GDP 6.2 6.0 3.1 2.3 1.9 b UK unemployment 4.8 4.6 4.3 4.2 4.1 c UK HPI 4.7 5.0 5.0 3.9 3.3 UK bank rate 0.1 0.6 0.8 0.8 0.5 a US GDP 5.5 4.6 3.4 2.9 2.9 d US unemployment 5.5 4.0 3.5 3.5 3.5 e US HPI 11.8 8.3 7.0 6.0 5.7 US federal funds rate 0.2 0.3 0.6 1.0 1.1 Notes a Average Real GDP seasonally adjusted change in year. b Average UK unemployment rate 16-year+. c Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. d Average US civilian unemployment rate 16-year+. e Change in year end US HPI = FHFA house price index, relative to prior year end. a Scenario probability weighting (audited) Upside 2 Upside 1 Baseline Downside 1 Downside 2 % % % % % As at 31 December 2022 Scenario probability weighting 10.9 23.1 39.4 17.6 9.0 As at 31 December 2021 Scenario probability weighting 20.9 27.2 30.1 14.8 7.0 Note a For further details on changes to scenario weights see page 317. Specific bases shows the most extreme position of each variable in the context of the downside/upside scenarios, for example, the highest unemployment for downside scenarios, average unemployment for baseline scenarios and lowest unemployment for upside scenarios. GDP and HPI downside and upside scenario data represents the lowest and highest cumulative position relative to the start point, in the 20 quarter period.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 321 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) a Macroeconomic variables (specific bases) (audited) Upside 2 Upside 1 Baseline Downside 1 Downside 2 As at 31 December 2022 % % % % % b UK GDP 13.9 9.4 1.4 (3.2) (6.8) c UK unemployment 3.4 3.6 4.2 6.6 8.5 d UK HPI 37.8 21.0 1.2 (17.9) (35.0) UK bank rate 0.5 0.5 3.5 6.3 8.0 b US GDP 14.1 9.6 1.3 (2.5) (6.3) c US unemployment 3.3 3.6 4.4 6.7 8.6 d US HPI 35.0 27.5 3.8 3.7 0.2 US federal funds rate 0.1 0.1 3.3 6.0 7.0 As at 31 December 2021 b UK GDP 21.4 18.3 3.4 (1.6) (1.6) c UK unemployment 4.0 4.1 4.5 7.0 9.2 d UK HPI 35.7 23.8 2.4 (12.7) (29.9) UK bank rate 0.1 0.1 0.7 2.8 4.0 b US GDP 22.8 19.6 3.4 1.5 (1.3) c US unemployment 3.3 3.5 4.1 6.8 9.5 d US HPI 53.3 45.2 6.2 2.2 (5.0) US federal funds rate 0.1 0.1 0.8 2.3 3.5 Average basis represents the average quarterly value of variables in the 20 quarter period with GDP and HPI based on yearly average and quarterly CAGRs respectively. a Macroeconomic variables (5 year averages) (audited) Upside 2 Upside 1 Baseline Downside 1 Downside 2 As at 31 December 2022 % % % % % e UK GDP 3.0 2.2 1.4 0.7 0.0 f UK unemployment 3.5 3.8 4.2 5.4 6.7 g UK HPI 6.6 3.9 1.2 (2.6) (6.4) UK bank rate 2.5 2.9 3.5 4.7 5.8 e US GDP 2.9 2.1 1.3 0.7 0.0 f US unemployment 3.4 3.9 4.4 5.5 6.7 g US HPI 6.2 5.0 3.8 2.5 1.2 US federal funds rate 2.8 3.1 3.3 4.3 5.2 As at 31 December 2021 e UK GDP 4.4 3.9 3.4 2.7 1.8 f UK unemployment 4.3 4.4 4.5 5.8 7.0 g UK HPI 6.3 4.4 2.4 0.3 (2.0) UK bank rate 0.3 0.5 0.7 1.7 2.3 e US GDP 4.4 3.9 3.4 2.4 1.3 f US unemployment 3.9 4.0 4.1 5.7 7.1 g US HPI 8.9 7.7 6.2 3.6 1.4 US federal funds rate 0.5 0.6 0.8 1.5 2.1 Notes a UK GDP = Real GDP growth seasonally adjusted; UK unemployment = UK unemployment rate 16-year+; UK HPI = Halifax All Houses, All Buyers Index; US GDP = Real GDP growth seasonally adjusted; US unemployment = US civilian unemployment rate 16-year+; US HPI = FHFA house price index. 20 quarter period starts from Q121 (2020: Q120). b Maximum growth relative to Q420 (2021: Q419), based on 20 quarter period in Upside scenarios; 5-year yearly average CAGR in Baseline; minimum growth relative to Q420 (2021: Q419), based on 20 quarter period in Downside scenarios. c Lowest quarter in Upside scenarios; 5-year average in Baseline; highest quarter in Downside scenarios. Period based on 20 quarters from Q121 (2021: Q120). d Maximum growth relative to Q420 (2021: Q419), based on 20 quarter period in Upside scenarios; 5-year quarter end CAGR in Baseline; minimum growth relative to Q420 (2021: Q419), based on 20 quarter period in Downside scenarios. e 5-year yearly average CAGR, starting 2021 (2021: 2020). f 5-year average, Period based on 20 quarters from Q121 (2021: Q120). g 5-year quarter end CAGR, starting Q420 (2021: Q419).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 322 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) The graphs below plot the historical data for GDP growth rate and unemployment rate in the UK and US as well as the forecasted data under each of the five scenarios. UK unemployment UK GDP (%) (%) 10 30 9 20 8 7 10 6 5 0 4 -10 3 2 -20 1 0 -30 2020 2022 2024 2026 2028 2030 2032 2020 2022 2024 2026 2028 2030 2032 U2 U1 BL D1 D2 U2 U1 BL D1 D2 US unemployment US GDP (%) (%) 15 14 12 10 10 5 8 0 6 -5 4 -10 2 -15 0 2020 2022 2024 2026 2028 2030 2032 2020 2022 2024 2026 2028 2030 2032 U2 U1 BL D1 D2 U2 U1 BL D1 D2 GDP growth based on year on year growth each quarter (Q/(Q-4)). ECL under 100% weighted scenarios for modelled portfolios (audited) The table below shows the modelled ECL assuming each of the five modelled scenarios are 100% weighted with the dispersion of results around the Baseline, highlighting the impact on exposure and ECL across the scenarios. Model exposure uses exposure at default (EAD) values and is not directly comparable to gross exposure used in prior disclosures.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 323 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Scenarios a As at 31 December 2022 Weighted Upside 2 Upside 1 Baseline Downside 1 Downside 2 Stage 1 Model exposure (£m) Home loans 144,701 147,754 146,873 145,322 142,599 138,619 Credit cards, unsecured loans and other retail 81,329 81,772 81,457 81,171 80,921 80,529 b, c lending Wholesale loans 186,838 194,970 192,218 188,746 181,247 167,848 Stage 1 Model ECL (£m) Home loans 7 3 3 4 9 30 Credit cards, unsecured loans and other retail lending 592 562 579 594 604 610 Wholesale loans 325 245 274 308 382 431 Stage 1 Coverage (%) Home loans — — — — — — Credit cards, unsecured loans and other retail lending 0.7 0.7 0.7 0.7 0.7 0.8 Wholesale loans 0.2 0.1 0.1 0.2 0.2 0.3 Stage 2 Model exposure (£m) Home loans 18,723 15,670 16,551 18,102 20,825 24,805 Credit cards, unsecured loans and other retail 9,414 8,131 8,817 9,535 10,377 11,456 b, c lending Wholesale loans 25,634 17,503 20,255 23,726 31,226 44,624 Stage 2 Model ECL (£m) Home loans 33 15 18 23 45 151 Credit cards, unsecured loans and other retail lending 1,786 1,487 1,629 1,785 2,004 2,274 Wholesale loans 603 392 463 562 809 1,288 Stage 2 Coverage (%) Home loans 0.2 0.1 0.1 0.1 0.2 0.6 Credit cards, unsecured loans and other retail lending 19.0 18.3 18.5 18.7 19.3 19.8 Wholesale loans 2.4 2.2 2.3 2.4 2.6 2.9 d Stage 3 Model exposure (£m) Home loans 1,553 1,553 1,553 1,553 1,553 1,553 Credit cards, unsecured loans and other retail lending 1,606 1,606 1,606 1,606 1,606 1,606 Wholesale loans 2,855 2,855 2,855 2,855 2,855 2,855 Stage 3 Model ECL (£m) Home loans 332 311 317 323 347 405 Credit cards, unsecured loans and other retail lending 1,033 1,011 1,023 1,034 1,048 1,059 e Wholesale loans 49 45 47 49 57 64 Stage 3 Coverage (%) Home loans 21.4 20 20.4 20.8 22.3 26.1 Credit cards, unsecured loans and other retail lending 64.3 63 63.7 64.4 65.3 65.9 e Wholesale loans 1.7 1.6 1.6 1.7 2 2.2 Total Model ECL (£m) Home loans 372 329 338 350 401 586 Credit cards, unsecured loans and other retail lending 3,411 3,060 3,231 3,413 3,656 3,943 e Wholesale loans 977 682 784 919 1,248 1,783 Total ECL 4,760 4,071 4,353 4,682 5,305 6,312 £m Reconciliation to total ECL Total weighted model ECL 4,760 e ECL from individually assessed impairments 434 ECL from non-modelled exposures and others 456 ECL from post model management adjustments 525 Of which: ECL from economic uncertainty adjustments 317 Total ECL 6,175 Notes a Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach, as required for Barclays reported impairment allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage dependent on the scenario. b For Credit cards, unsecured loans and other retail lending, the model exposure movement between stages 1 and 2 across scenarios differs due to additional impacts from the undrawn exposure. c For Credit cards, unsecured loans and other retail lending, the dispersion of results around Baseline has narrowed following model enhancements made during the year. d Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 31 December 2022 and not on macroeconomic scenario. e Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, ECL of £434m is reported as an individually assessed impairment in the reconciliation table.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 324 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) The use of five scenarios with associated weighting results in a total weighted ECL uplift from the Baseline ECL of 1.7% Home loans: Total weighted ECL of £372m represents a 6.3% increase over the Baseline ECL (£350m), with coverage ratios remaining steady across the Upside scenarios, Baseline and Downside 1 scenario. Under the Downside 2 scenarios, total ECL increases to £586m, driven by a significant fall in UK HPI (18.3)% in 2023 reflecting the non-linearity of the UK portfolio. Credit cards, unsecured loans and other retail lending: Total weighted ECL of £3,411m is aligned to the Baseline ECL (£3,413m). The impact of the deteriorated Baseline scenario relative to the severity of the downside scenarios is greater than the impact of the higher weights applied to the Downside scenarios when compared to 2021. This results in a convergence between Baseline and Weighted ECL in 2022. Total ECL increases to £3,943m under the Downside 2 scenario, mainly driven by significant increase in UK unemployment rate to 6% and US unemployment rate to 6% in 2023 Wholesale loans: Total weighted ECL of £977m represents a 6.3% increase over the Baseline ECL (£919m). Total ECL increases to £1,783m under Downside 2 scenario, driven by a significant decrease in UK GDP to (3.4)% and US GDP to (2.7)% in 2023

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 325 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Scenarios a As at 31 December 2021 Weighted Upside 2 Upside 1 Baseline Downside 1 Downside 2 Stage 1 Model exposure (£m) Home loans 137,279 139,117 138,424 137,563 135,544 133,042 b, c Credit cards, unsecured loans and other retail lending 56,783 54,758 55,771 56,821 57,698 55,315 Wholesale loans 174,249 177,453 176,774 175,451 169,814 161,998 Stage 1 Model ECL (£m) Home loans 4 2 2 3 6 14 Credit cards, unsecured loans and other retail lending 324 266 272 279 350 418 Wholesale loans 290 240 262 286 327 350 Stage 1 Coverage (%) Home loans — — — — — — Credit cards, unsecured loans and other retail lending 0.6 0.5 0.5 0.5 0.6 0.8 Wholesale loans 0.2 0.1 0.1 0.1 0.2 0.2 Stage 2 Model exposure (£m) Home loans 22,915 21,076 21,769 22,631 24,649 27,151 b, c Credit cards, unsecured loans and other retail lending 7,500 6,447 6,757 7,084 10,689 18,452 Wholesale loans 32,256 29,052 29,732 31,054 36,692 44,507 Stage 2 Model ECL (£m) Home loans 15 10 11 12 22 47 Credit cards, unsecured loans and other retail lending 1,114 925 988 1,058 1,497 3,295 Wholesale loans 572 431 467 528 851 1,510 Stage 2 Coverage (%) Home loans 0.1 — 0.1 0.1 0.1 0.2 Credit cards, unsecured loans and other retail lending 14.9 14.3 14.6 14.9 14.0 17.9 Wholesale loans 1.8 1.5 1.6 1.7 2.3 3.4 d Stage 3 Model exposure (£m) Home loans 1,724 1,724 1,724 1,724 1,724 1,724 Credit cards, unsecured loans and other retail lending 1,922 1,922 1,922 1,922 1,922 1,922 Wholesale loans 1,811 1,811 1,811 1,811 1,811 1,811 Stage 3 Model ECL (£m) Home loans 303 292 295 299 320 346 Credit cards, unsecured loans and other retail lending 1,255 1,236 1,245 1,255 1,277 1,297 e Wholesale loans 323 321 322 323 326 332 Stage 3 Coverage (%) Home loans 17.6 16.9 17.1 17.3 18.6 20.1 Credit cards, unsecured loans and other retail lending 65.3 64.3 64.8 65.3 66.4 67.5 e Wholesale loans 17.8 17.7 17.8 17.8 18.0 18.3 Total Model ECL (£m) Home loans 322 304 308 314 348 407 Credit cards, unsecured loans and other retail lending 2,693 2,427 2,505 2,592 3,124 5,010 e Wholesale loans 1,185 992 1,051 1,137 1,504 2,192 Total ECL 4,200 3,723 3,864 4,043 4,976 7,609 £m Reconciliation to total ECL Total weighted model ECL 4,200 e ECL from individually assessed impairments 524 ECL from non-modelled exposures and others 74 f ECL from post model management adjustments 1,486 Of which: ECL from economic uncertainity adjustments 1,692 Total ECL 6,284 Notes a Model exposures are allocated to a stage based on an individual scenario rather than a probability-weighted approach, as required for Barclays reported impairment allowances. As a result, it is not possible to back solve the final reported weighted ECL from individual scenarios given balances may be assigned to a different stage dependent on the scenario. b For Credit cards, unsecured loans and other retail lending, the model exposure movement between stages 1 and 2 across scenarios differs due to additional impacts from the undrawn exposure. c In 2021, Loans & Advances at Amortised Cost were used as Modelled Exposure for the International Consumer Bank within this disclosure. The process was revised in 2022 to incorporate Exposure at Default (EAD) with no impact to ECL. This has been represented in Prior Year comparatives. d Model exposures allocated to Stage 3 does not change in any of the scenarios as the transition criteria relies only on an observable evidence of default as at 31 December 2021 and not on macroeconomic scenario. e Material wholesale loan defaults are individually assessed across different recovery strategies. As a result, ECL of £524m is reported as an individually assessed impairment in the reconciliation table. f Post Model Adjustments include negative adjustments reflecting operational post model adjustments.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 326 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Analysis of the concentration of credit risk A concentration of credit risk exists when a number of counterparties are located in a common geographical region or are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Group implements limits on concentrations in order to mitigate the risk. The analysis of credit risk concentrations presented below are based on the location of the counterparty or customer or the industry in which they are engaged. Further detail on the Group policies with regard to managing concentration risk is presented in the Barclays PLC Pillar 3 Report 2022 (unaudited). Geographic concentrations As at 31 December 2022, the geographic concentration of the Group’s assets remained broadly consistent with 2021. Exposure concentrated in the UK was 38% (2021: 40%), in the Americas 37% (2021: 35%) and in Europe 18% (2021: 19%). Credit risk concentrations by geography (audited) United Africa and Middle Kingdom Americas Europe Asia East Total £m £m £m £m £m £m As at 31 December 2022 On-balance sheet: Cash and balances at central banks 129,000 49,830 73,677 3,553 291 256,351 Cash collateral and settlement balances 42,442 36,572 22,058 10,467 1,058 112,597 Loans and advances at amortised cost 270,554 74,851 32,484 15,504 5,386 398,779 Reverse repurchase agreements and other similar secured lending — 127 380 262 7 776 Trading portfolio assets 9,333 35,490 16,970 5,299 1,581 68,673 Financial assets at fair value through the income statement 30,024 106,741 41,355 20,538 8,819 207,477 Derivative financial instruments 99,053 101,407 77,146 22,299 2,475 302,380 Financial assets at fair value through other comprehensive income 7,692 25,666 18,842 12,562 292 65,054 Other assets 1,473 115 61 4 3 1,656 Total on-balance sheet 589,571 430,799 282,973 90,488 19,912 1,413,743 Off-balance sheet: Contingent liabilities 6,485 11,297 4,811 1,210 402 24,205 Loan commitments 103,575 240,356 44,479 4,334 2,764 395,508 Total off-balance sheet 110,060 251,653 49,290 5,544 3,166 419,713 Total 699,631 682,452 332,263 96,032 23,078 1,833,456 As at 31 December 2021 On-balance sheet: Cash and balances at central banks 114,959 38,735 76,846 7,789 245 238,574 Cash collateral and settlement balances 34,249 28,469 21,822 7,260 742 92,542 Loans and advances at amortised cost 270,261 51,599 24,352 11,039 4,200 361,451 Reverse repurchase agreements and other similar secured lending 9 123 401 2,508 186 3,227 Trading portfolio assets 12,926 29,539 15,092 4,943 889 63,389 Financial assets at fair value through the income statement 28,737 95,478 30,083 21,800 9,999 186,097 Derivative financial instruments 78,710 92,010 75,247 14,709 1,896 262,572 Financial assets at fair value through other comprehensive income 7,661 27,391 19,235 6,164 400 60,851 Other assets 949 223 39 1 — 1,212 Total on-balance sheet 548,461 363,567 263,117 76,213 18,557 1,269,915 Off-balance sheet: Contingent liabilities 5,527 10,328 3,957 1,131 403 21,346 Loan commitments 105,844 192,303 40,523 5,104 1,937 345,711 Total off-balance sheet 111,371 202,631 44,480 6,235 2,340 367,057 Total 659,832 566,198 307,597 82,448 20,897 1,636,972 Industry concentrations The concentration of the Group’s assets by industry remained broadly consistent year on year. As at 31 December 2022, total assets concentrated in banks and other financial institutions was 39% (2021: 38%), predominantly within derivative financial instruments. The proportion of the overall balance concentrated in governments and central banks was 22% (2021: 23%), cards, unsecured loans and other personal lending was 11% (2021: 10%) and in home loans remained stable at 10% (2021: 11%). Further details on material and emerging risks can be found on pages 269 to 281 .

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 327 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Credit risk concentrations by industry (audited) Whole- sale Cards, and retail unsecured Other Const- Govern- distri- loans and financial ruction ment and Energy bution Business other insti- Manu- and central and and and other Home personal Banks tutions facturing property bank water leisure services loans lending Other Total £m £m £m £m £m £m £m £m £m £m £m £m As at 31 December 2022 On-balance sheet: Cash and balances at central banks 731 63 — — 255,557 — — — — — — 256,351 Cash collateral and settlement balances 15,083 78,740 229 67 17,265 269 136 167 — 55 586 112,597 Loans and advances at amortised cost 9,726 49,181 8,025 26,029 33,989 5,626 11,362 19,020 173,815 50,913 11,093 398,779 agreements and other similar secured lending 634 92 — — 50 — — — — — — 776 4,663 9,314 5,007 1,405 36,355 2,330 789 2,782 — — 6,028 68,673 Trading portfolio assets through the income statement 30,838 149,328 712 3,524 16,609 197 479 4,053 1,255 — 482 207,477 Derivative financial 127,391 153,013 4,095 597 3,027 4,778 1,541 3,175 — — 4,763 302,380 instruments Financial assets at fair value through other comprehensive income 14,205 3,918 — 758 45,682 — — 112 — — 379 65,054 Other assets 494 975 9 3 1 1 1 118 17 28 9 1,656 203,765 444,624 18,077 32,383 408,535 13,201 14,308 29,427 175,087 50,996 23,340 1,413,743 Total on-balance sheet Off-balance sheet: 1,108 6,193 3,695 1,430 1,818 3,891 1,165 2,627 — 143 2,135 24,205 Contingent liabilities 1,840 65,671 44,951 12,599 1,501 29,607 16,759 25,137 12,223 158,599 26,621 395,508 Loan commitments 2,948 71,864 48,646 14,029 3,319 33,498 17,924 27,764 12,223 158,742 28,756 419,713 Total off-balance sheet 206,713 516,488 66,723 46,412 411,854 46,699 32,232 57,191 187,310 209,738 52,096 1,833,456 Total As at 31 December 2021 On-balance sheet: Cash and balances at central banks 52 74 — — 238,448 — — — — — — 238,574 Cash collateral and settlement balances 14,811 61,581 320 79 14,526 390 60 366 — 68 341 92,542 Loans and advances at amortised cost 8,519 32,332 6,701 25,722 30,827 4,345 11,455 19,113 169,205 42,198 11,034 361,451 Reverse repurchase agreements and other similar secured lending 645 2,049 — — 533 — — — — — — 3,227 Trading portfolio assets 2,586 8,817 4,881 1,097 32,574 4,043 1,734 4,716 — — 2,941 63,389 Financial assets at fair value through the income statement 26,074 131,264 771 7,999 13,945 87 181 3,753 1,595 — 428 186,097 Derivative financial instruments 120,666 117,400 4,169 1,898 7,233 3,544 1,172 2,696 — — 3,794 262,572 Financial assets at fair value through other comprehensive income 14,441 4,274 — 662 40,872 — — 455 — — 147 60,851 Other assets 618 450 1 3 8 — 2 104 — 21 5 1,212 Total on-balance sheet 188,412 358,241 16,843 37,460 378,966 12,409 14,604 31,203 170,800 42,287 18,690 1,269,915 Off-balance sheet: Contingent liabilities 1,006 5,356 3,080 1,341 1,682 3,284 1,209 2,518 — 73 1,797 21,346 Loan commitments 1,395 55,071 42,587 16,673 1,362 26,461 16,299 25,682 11,656 121,680 26,845 345,711 Total off-balance sheet 2,401 60,427 45,667 18,014 3,044 29,745 17,508 28,200 11,656 121,753 28,642 367,057 Total 190,813 418,668 62,510 55,474 382,010 42,154 32,112 59,403 182,456 164,040 47,332 1,636,972

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 328 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) The approach to management and representation of credit quality Asset credit quality The credit quality distribution is based on the IFRS 9 12-month probability of default (PD) at the reporting date to ensure comparability with other ECL disclosures in the Expected Credit Losses section. The following internal measures are used to determine credit quality for loans: Default Probability Internal Default Credit Quality Standard and PD Range % Grade Band >Min Mid

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 329 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Balance sheet credit quality The following tables present the credit quality of the Group’s assets exposed to credit risk. Overview As at 31 December 2022, the ratio of the Group’s on-balance sheet assets classified as strong (0.0 to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 330 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Balance sheet credit quality (audited) PD range PD range 0.60 to 11.35 to 0.60 to 11.35 to 0.0 to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 331 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Credit exposures by internal PD grade The below tables represent credit risk profile by PD grade for loans and advances at amortised cost, contingent liabilities and loan commitments. Stage 1 higher risk assets, presented gross of associated collateral held, are of weaker credit quality but have not significantly deteriorated since origination. IFRS 9 Stage 1 and Stage 2 classification is not dependent solely on the absolute probability of default but on elements that determine a Significant Increase in Credit Risk (see Note 8), including relative movement in probability of default since initial recognition. There is therefore no direct relationship between credit quality and IFRS 9 stage classification. Credit risk profile by internal PD grade for loans and advances at amortised cost (audited) Gross carrying amount Allowance for ECL Net Coverage PD range Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total exposure ratio Credit quality Grading % description £m £m £m £m £m £m £m £m £m % As at 31 December 2022 108,494 1,787 5 110,286 16 23 3 42 110,244 1 - 3 0.0 to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 332 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) a Credit risk profile by internal PD grade for contingent liabilities (audited) Gross carrying amount Allowance for ECL Net Coverage PD range Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total exposure ratio Credit quality Grading % description £m £m £m £m £m £m £m £m £m % As at 31 December 2022 1 - 3 0.0 to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 333 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Analysis of specific portfolios and asset types This section provides an analysis of principal portfolios and businesses, in particular, home loans, credit cards, unsecured loans and other retail lending and a summary of government supported loans. Secured home loans The UK home loans portfolio comprises first lien home loans and accounts for 93% (2021: 93%) of the Group’s total home loan balances. Home loans principal portfolios Barclays UK As at 31 December 2022 2021 Gross loans and advances (£m) 162,380 158,192 >90 day arrears, excluding recovery book (%) 0.1 0.1 Annualised gross charge-off rates (%) 0.5 0.5 Recovery book proportion of outstanding balances (%) 0.5 0.6 Recovery book impairment coverage ratio (%) 5.2 4.2 Within the UK home loans portfolio: • gross loans and advances increased by £4.2bn (2.7%) following an increase in Residential (3.2%), while Buy to Let (BTL) remained broadly stable. • owner-occupied interest-only home loans comprised 17% (2021: 19%) of total balances. The average balance weighted LTV on owner occupied loans remained stable at 50.0% (2021: 50.3%). • BTL home loans comprised 12.7% (2021: 13.1%) of total balances. In BTL, the average balance weighted LTV remained stable at 53.2% (2021: 53.4%). a Home loans principal portfolios - distribution of balances by LTV Distribution of Balances Distribution of impairment allowance Coverage ratio Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Barclays UK % % % % % % % % % % % % As at 31 December 2022 75% and 90% and 100% — — — — 0.1 0.6 3.3 4.0 0.4 21.4 64.9 13.1 As at 31 December 2021 75% and 90% and 100% 0.0 — — 0.0 0.2 1.0 8.9 10.1 0.4 6.4 100.0 14.1 Note a Portfolio marked to market based on the most updated valuation including recovery book balances. Updated valuations reflect the application of the latest HPI available as at 31 December 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 334 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Home loans principal portfolios – average LTV Barclays UK As at 31 December 2022 2021 Overall portfolio LTV (%): Balance weighted % 50.4 50.7 Valuation weighted % 37.3 37.5 For >100% LTVs: Balances £m 34 58 Marked to market collateral £m 26 47 Average LTV: Balance weighted % 210.6 160.9 Average LTV: Valuation weighted % 145.5 129.1 % of Balances in Recoveries 18.9 14.5 Home loans principal portfolios - new lending Barclays UK As at 31 December 2022 2022 2021 New Home loan bookings (£m) 30,307 33,945 New home loan proportion above 90% LTV (%) 2.8 1.9 Average LTV on new home loan: balance weighted (%) 68.1 69.5 Average LTV on new home loan: valuation weighted (%) 59.6 61.9 New bookings: New lending in 2022 was £30.3bn, a reduction of 11% on 2021. This was mainly driven by economic conditions that resulted in general mortgage market suppression, including higher mortgage payments as rates continued to rise and increased cost of living factors in line with inflation. Head Office: Italian home loans and advances at amortised cost reduced to £4.5bn (2021: £4.7bn) and continue to run-off since new bookings ceased in 2016. The portfolio is secured on residential property with an average balance weighted mark to market LTV of 58.8% (2021: 60.4%). 90-day arrears decreased to 1.2% (2021: 1.3%), gross charge-off rate increased to 0.6% (2021: 0.3%) due to a combination of affordability stress related to rising inflation and interest rates, and the particularly low rate observed in 2021 due to the COVID portfolio improvements.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 335 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Credit cards, unsecured loans and other retail lending The principal portfolios listed below accounted for 85% (2021: 82%) of the Group’s total credit cards, unsecured loans and other retail lending. Credit cards and unsecured loans principal portfolios 30 day arrears rate, 90 day arrears rate, excluding excluding Annualised gross Annualised net Gross exposure recoveries book recoveries book write-off rates write-off rates £m % % % % As at 31 December 2022 Barclays UK UK cards 9,939 0.9 0.2 3.7 3.6 UK personal loans 4,023 1.4 0.6 4.1 3.8 Barclays Partner Finance 2,612 0.5 0.2 0.7 0.7 Barclays International US cards 25,554 2.2 1.2 2.4 2.3 Germany consumer lending 4,269 1.7 0.7 0.7 0.6 As at 31 December 2021 Barclays UK UK cards 9,933 1.0 0.2 4.1 4.0 UK personal loans 4,011 1.5 0.7 3.5 3.2 Barclays Partner Finance 2,471 0.4 0.2 1.4 1.4 Barclays International US cards 17,779 1.6 0.8 4.3 4.2 Germany consumer lending 3,559 1.5 0.7 0.9 0.8 UK cards: 30 day arrears rate reduced marginally to 0.9% (2021: 1.0%) and 90 day arrears rate remained stable at 0.2% (2021: 0.2%), whilst total exposure was stable at £9.9bn. Both the gross and net write off rates decreased by 0.4% due to reduced debt sales and monthly delinquency flows. UK personal loans: 30 and 90 day arrears rates have reduced marginally to 1.4% (2021: 1.5%) and 0.6% (2021: 0.7%) respectively, whilst total exposure was stable at £4.0bn. Both the annualised gross and net write off rates increased by 0.6% due to increased regular debt sales. Barclays Partner Finance: 30 day arrears rate increased slightly to 0.5% (2021: 0.4%) and 90 day arrears rate remained stable at 0.2% (2021: 0.2%), reflecting marginally higher entry rates with stable flows through the delinquency cycles. Total exposure grew by £0.1bn to £2.6bn (2021: £2.5bn) as a result of increased sales. Both the annualised gross and net write off rates decreased by 0.7% as a result of the reducing delinquent stock and subsequent flow into recoveries. US cards: Balances increased due to the acquisition of the Gap portfolio in June 2022, movement in the USD/GBP exchange rate and core portfolio growth. 30 and 90 day arrears rates increased to 2.2% (2021: 1.6%) and 1.2% (2021: 0.8%) due to the partial normalisation of customer behaviour and the acquisition of the Gap portfolio, though rates remain below pre-pandemic levels. Write- off rates decreased reflecting portfolio growth and the impact of lower charge offs in 2021 due to the benefit of government support schemes . Germany consumer lending: 30 day arrears rate increased to 1.7% (2021: 1.5%) due to increased macroeconomic uncertainty in Europe, though the rate was consistent with pre-pandemic levels.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 336 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Government supported loans Throughout the COVID-19 pandemic Barclays has supported its customers and clients by participating in the UK Government's Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Recovery Loan Scheme (RLS). Government supported loans Government guaranteed Gross exposure Impairment allowance Impairment coverage exposure Impairment post Pre Post Modelled Management management management management Stage 1 Stage 2 Stage 3 Total impairment adjustment adjustment adjustment adjustment Total £m £m £m £m £m £m £m % % £m As at 31 December 2022 Barclays UK BBLS 3,066 2,903 618 6,587 6 27 33 0.1 0.5 6,554 CBILS 286 396 66 748 22 (9) 13 2.9 1.7 598 RLS 13 4 1 18 — — — — — 14 Barclays International CBILS 306 154 8 468 5 — 5 1.1 1.1 375 CLBILS 67 32 13 112 2 — 2 2.1 2.1 89 RLS 17 3 1 21 — — — 1.5 1.5 16 Total 3,755 3,492 707 7,954 35 18 53 0.4 0.7 7,646 As at 31 December 2021 Barclays UK BBLS 7,881 797 704 9,382 396 (380) 16 4.2 0.2 9,366 CBILS 900 110 47 1,057 12 (7) 5 1.1 0.5 845 RLS 11 — 1 12 — — — 2.7 2.7 10 Barclays International CBILS 619 146 6 771 5 — 5 0.6 0.6 617 CLBILS 163 56 2 221 1 — 1 0.4 0.4 177 RLS 1 — — 1 — — — 4.7 4.7 1 Total 9,575 1,109 760 11,444 414 (387) 27 3.6 0.2 11,016 The BBLS and CBILS schemes were launched to provide financial support to smaller and medium-sized businesses and CLBILS for larger businesses in the UK who may experience financial difficulties as a result of the COVID-19 outbreak. The RLS aims to help UK businesses access finance as they recover and grow following the COVID-19 pandemic. These loans are guaranteed by the government at 100% for BBLS and 80% for CBILS, CLBILS and RLS (70% for RLS issued post January 1, 2022) as at the balance sheet date. Management adjustment of £(380)m applied in December 2021 has been discontinued following an update in the underlying ECL model that now fully recognises the 100% government guarantee against BBLS exposure within BUK Business Banking. However, we continue to hold the £(9)m (December 2021: £(7)m) adjustment against CBILS as the 80% government guarantee is not fully recognised in the models. In instances where Barclays has assessed the BBLS exposure to have not met strict assessment criteria, no claim has been made against the government guarantee resulting in an impairment allowance against these loans of £33m (December 2021: £16m) as at the balance sheet date. Additionally, while the government supported loans are covered by guarantees, many BBLS customers have other financing arrangements with Barclays which are not covered by the government guarantee. Noting the elevated levels of delinquency across the BBLS population, Barclays has continued to apply management adjustment of £0.1bn to BBLS customers outside the scheme.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 337 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Forbearance Forbearance measures consist of concessions towards a debtor that is experiencing or about to experience difficulties in meeting their financial commitments ("financial difficulties"). Analysis of forbearance programmes Balances Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total £m £m £m £m £m £m £m £m As at 31 December 2022 Barclays UK 83 151 455 689 1 26 145 172 Barclays International 1 3 243 247 — 114 114 — Head Office 101 151 15 17 20 30 — 2 Total retail 104 184 799 1,087 1 28 274 303 Barclays UK 58 127 519 704 1 4 47 52 Barclays International — 903 698 1,601 — 21 108 129 Head Office — — — — — — — — Total wholesale 1,030 1,217 2,305 1 25 155 181 58 Group total 162 1,214 2,016 3,392 2 53 429 484 As at 31 December 2021 Barclays UK 140 140 737 1,017 2 46 284 332 Barclays International 1 3 244 248 — 1 152 153 Head Office — — 116 116 — — 15 15 Total retail 141 143 1,097 1,381 2 47 451 500 Barclays UK 59 76 494 629 — 2 48 50 Barclays International — 1,051 961 2,012 — 38 321 359 Head Office — — — — — — — — Total wholesale 59 1,127 1,455 2,641 — 40 369 409 Group total 200 1,270 2,552 4,022 2 87 820 909 Retail balances on forbearance decreased by 21%, reflecting a decrease in UK cards and UK personal loans, driven by lower entries into forbearance. Wholesale balances subject to forbearance decreased to £2.3bn (2021: £2.6bn) with reductions in exposure in Corporate Bank and Investment Bank of £204m and £127m respectively. Impairment allowances reduced to £181m (2021: £409m) following a range of notable write offs. Barclays International accounted for 69% of wholesale forbearance with corporate cases representing 84% of these balances.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 338 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Retail forbearance programmes Forbearance on the Group’s principal retail portfolios is presented below. The principal portfolios account for 99% (2021: 99%) of total retail forbearance balances. Analysis of Key Portfolios in Forbearance Programmes Impairment Marked to market Marked to market allowances marked Total balances on Balances on Forbearance Programmes LTV of forbearance LTV of forbearance against balances forbearance % of gross retail balances: balance balances: valuation on forbearance programmes Total loans and advances weighted weighted programmes coverage ratio £m £m % % £m % As at 31 December 2022 Barclays UK UK Home Loans 263 0.2 39.6 28.3 4 1.5 UK cards 338 3.4 n/a n/a 118 34.9 UK personal loans 59 1.5 n/a n/a 33 55.9 Barclays Partner Finance 16 0.6 n/a n/a 10 62.5 Barclays International US cards 206 0.8 n/a n/a 87 42.2 Germany consumer lending 40 0.9 n/a n/a 27 67.5 Head Office Italy Mortgages 151 3.4 61.1 45.2 17 11.3 As at 31 December 2021 Barclays UK UK Home Loans 293 0.2 42.2 30.0 3 1.0 UK cards 577 5.8 n/a n/a 242 41.9 UK personal loans 120 3.0 n/a n/a 69 57.9 Barclays Partner Finance 15 0.6 n/a n/a 9 61.6 Barclays International US cards 196 1.1 n/a n/a 122 62.2 Germany consumer lending 51 1.4 n/a n/a 31 60.7 Head Office Italy Mortgages 116 2.4 58.4 41.9 15 13.2 UK home loans: Forbearance balances decreased to £263m (2021: £293m) driven by a run down in repayment-to-interest-only switches that entered forbearance during the COVID-19 period. UK cards: Balances on forbearance decreased to £338m (2021: £577m), reflecting lower entries into forbearance and the impact of a year-end strategy change to align the point of charge off and write off. UK personal loans: Balances on forbearance programmes decreased to £59m (2021: £120m), reflecting lower entries into forbearance and the impact of a year-end strategy change to align the point of charge off and write off. Barclays Partner Finance: Balances on forbearance remain relatively stable and aligned to the total delinquent stock. US cards: Forbearance balances increased to £206m (2021: £196m) reflecting a small underlying decrease, more than offset by the movement in the USD/GBP exchange rate. Germany consumer lending: Forbearance balances decreased to £40m (2021: £51m) due to lower customer demand. Italian home loans: Forbearance balances increased to £151m (2021: £116m) due to a standardisation of the definition of forbearance to comply with EBA Reporting rules.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 339 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Wholesale forbearance programmes The table below details balance information for wholesale forbearance cases. Analysis of wholesale balances in forbearance programmes Impairment Balances on forbearance programmes allowances marked Total balances on % of gross against balances forbearance wholesale loans on forbearance programmes Total balances and advances programmes coverage ratio £m % £m % As at 31 December 2022 Barclays UK 704 1.8 52 7.4 Barclays International 1,601 1.2 129 8.1 Total 2,305 1.3 181 7.9 As at 31 December 2021 Barclays UK 629 1.6 50 7.9 Barclays International 2,012 1.9 359 17.8 Total 2,641 1.8 409 15.5 Analysis of debt securities Debt securities include government securities held as part of the Group’s treasury management portfolio for liquidity and regulatory purposes, and are for use on a continuing basis in the activities of the Group. The following tables provide an analysis of debt securities held by the Group for trading and investment purposes by issuer type, and where the Group held government securities exceeding 10% of shareholders’ equity. Further information on the credit quality of debt securities is presented in the Balance sheet credit quality section. Debt securities 2022 2021 As at 31 December £m % £m % Of which issued by: Governments and other public bodies 106,676 63.1 94,730 65.0 Corporate and other issuers 41,794 24.7 36,916 25.3 US agency 6,399 3.8 4,364 3.0 Mortgage and asset backed securities 14,174 8.4 9,788 6.7 Total 169,043 100 145,798 100 Government securities Fair value 2022 2021 As at 31 December £m £m United States 34,187 30,023 United Kingdom 22,329 27,409 Japan 16,938 8,555 Germany 7,666 3,520

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 340 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Credit risk (continued) Analysis of derivatives The tables below set out the fair values of the derivative assets together with the value of those assets subject to enforceable counterparty netting arrangements for which the Group holds offsetting liabilities and eligible collateral. Derivative assets (audited) 2022 2021 Balance sheet Counterparty Net Balance sheet Counterparty Net assets netting exposure assets netting exposure As at 31 December £m £m £m £m £m £m Foreign exchange 109,938 88,096 21,842 76,975 60,525 16,450 Interest rate 134,579 101,646 32,933 125,905 92,669 33,236 Credit derivatives 5,423 4,356 1,067 5,682 4,525 1,157 Equity and stock index 48,665 41,200 7,465 51,723 43,084 8,639 Commodity derivatives 3,775 3,039 736 2,287 1,717 570 Total derivative assets 302,380 238,337 64,043 262,572 202,520 60,052 Cash collateral held 34,547 34,598 Net exposure less collateral 29,496 25,454 Derivative asset exposures would be £273bn (2021: £237bn) lower than reported under IFRS if netting were permitted for assets and liabilities with the same counterparty or for which the Group holds cash collateral. Similarly, derivative liabilities would be £(264)bn (2021: £(235)bn) lower reflecting counterparty netting and collateral placed. In addition, non-cash collateral of £11bn (2021: £6bn) was held in respect of derivative assets. The Group received collateral from clients in support of over the counter derivative transactions. These transactions are generally undertaken under International Swaps and Derivative Association (ISDA) agreements governed by either UK or New York law. The table below sets out the fair value and notional amounts of OTC derivative instruments by type of collateral arrangement. Derivatives by collateral arrangement 2022 2021 Fair value Fair value Notional contract Notional contract amount Assets Liabilities amount Assets Liabilities £m £m £m £m £m £m Unilateral in favour of Barclays Foreign exchange 37,149 1,130 (677) 26,905 437 (635) Interest rate 17,967 151 (57) 6,790 816 (6) Credit derivatives 823 26 (224) 1,200 24 (202) Equity and stock index 19 3 (2) 245 33 (4) Total unilateral in favour of Barclays 55,958 1,310 (960) 35,140 1,310 (847) Unilateral in favour of counterparty Foreign exchange 22,673 638 (637) 22,987 385 (883) Interest rate 61,158 2,270 (2,752) 36,230 3,162 (3,684) Credit derivatives 144 — — 152 1 — Equity and stock index 492 96 (26) 507 159 (21) Total unilateral in favour of counterparty 84,467 3,004 (3,415) 59,876 3,707 (4,588) Bilateral arrangement Foreign exchange 5,381,723 102,077 (95,377) 5,261,708 71,624 (68,186) Interest rate 14,566,844 124,463 (107,895) 13,956,001 116,656 (108,723) Credit derivatives 582,943 3,635 (3,790) 570,968 3,635 (4,190) Equity and stock index 393,664 9,505 (12,280) 259,066 12,749 (15,965) Commodity derivatives 4,303 14 (50) 4,485 54 (102) Total bilateral arrangement 20,929,477 239,694 (219,392) 20,052,228 204,718 (197,166) Uncollateralised derivatives Foreign exchange 349,569 5,638 (6,979) 403,523 4,348 (4,526) Interest rate 287,026 3,119 (6,864) 227,093 3,244 (1,759) Credit derivatives 35,933 601 (717) 34,184 347 (360) Equity and stock index 16,101 3,075 (4,416) 18,865 5,881 (8,478) Commodity derivatives 108 — (1) 185 2 (5) Total uncollateralised derivatives 688,737 12,433 (18,977) 683,850 13,822 (15,128) Total OTC derivative assets/(liabilities) 21,758,639 256,441 (242,744) 20,831,094 223,557 (217,729)

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 341 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Market risk Market risk Summary of contents Page Outlines key measures used to summarise the market risk Market risk overview and summary of performance 341 profile of the bank such as value at risk (VaR). The Group discloses details on management measures of Traded market risk 341 market risk. Total management VaR includes all trading positions and is presented on a diversified basis by risk factor. Review of management measures 341 This section also outlines the macroeconomic conditions – The daily average, maximum and minimum values of management 342 modelled as part of the Group’s risk management – Business scenario stresses VaR framework. 342 Summary of performance in the Traded market risk review Market risk period Review of management measures All disclosures in this section are unaudited Average management VaR increased 89% unless otherwise stated. The following disclosures provide details to £36m (2021: £19m) driven by higher on management measures of market risk. Overview market volatility. The conflict in Ukraine Refer to the market risk management This section contains key statistics and elevated inflation increased volatility section of the Barclays PLC Pillar 3 Report describing the market risk profile of the across all asset classes as central banks 2022 (unaudited) for more detail on Group. The market risk management increased base rates, equity markets management measures and the section provides a description of declined, and credit spreads widened differences when compared to regulatory management VaR. during this period. The Global Markets measures. business maintained a generally short and Measures of market risk in the The table below shows the total defensive risk profile (i.e. positioned to gain Group and accounting measures management VaR on a diversified basis by as the market sells off) for most of 2022. risk factor. Total management VaR Traded market risk measures such as VaR VaR increased in Q4 2022 from an includes all trading positions in CIB and and balance sheet exposure measures increase in funded, fair-value leverage loan Treasury and it is calculated with a one-day have fundamental differences: exposure in Investment Banking. Risk holding period, measured to a confidence • balance sheet measures show accruals- taking remained within agreed risk appetite level of 95%. based balances or marked to market limits at all times in 2022. Limits are applied against each risk factor values as at the reporting date; VaR as well as total management VaR, • VaR measures also take account of which are then cascaded further by risk current marked to market values, but in managers to each business. addition hedging effects between positions are considered; • market risk measures are expressed in terms of changes in value or volatilities as opposed to static values. For these reasons, it is not possible to present direct reconciliations of traded market risk and accounting measures.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 342 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Market risk (continued) The daily average, high and low values of management VaR Management VaR (95%, one day) (audited) 2022 2021 a a a a Average High Low Average High Low For the year ended 31 December £m £m £m £m £m £m Credit risk 25 71 8 14 30 7 Interest rate risk 13 23 4 7 15 4 Equity risk 10 29 4 9 29 4 Basis risk 12 24 4 6 10 3 Spread risk 7 11 3 4 6 3 Foreign exchange risk 8 25 2 4 16 1 Commodity risk — 1 — — 1 — Inflation risk 6 17 3 3 5 2 a (45) n/a n/a (28) n/a n/a Diversification effect 36 73 13 19 36 6 Total management VaR Note a Diversification effects recognise that forecast losses from different assets or businesses are unlikely to occur concurrently, hence the expected aggregate loss is lower than the sum of the expected losses from each area. Historical correlations between losses are taken into account in making these assessments. The high and low VaR figures reported for each category did not necessarily occur on the same day as the high and low VaR reported as a whole. Consequently, a diversification effect balance for the high and low VaR figures would not be meaningful and is therefore omitted from the above table. Group Management VaR (£m) 80 60 40 20 0 Jan 2021 Jan 2022 Dec 2022 Business scenario stresses As part of the Group’s risk management framework, on a regular basis the performance of the trading business in hypothetical scenarios characterised by severe macroeconomic conditions is modelled. Up to seven global scenarios are modelled on a regular basis, for example, a sharp deterioration in liquidity, a slowdown in the global economy, global recession, and a sharp increase in economic growth. In 2022, the scenario analyses showed that the largest market risk related impacts would be due to a severe deterioration in financial liquidity and an associated global recession.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 343 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk Treasury and Capital risk Treasury and Capital risk: summary of contents Page Liquidity risk performance The risk that the firm is unable to meet its contractual or contingent obligations or that Liquidity overview and summary of performance 344 it does not have the appropriate amount, tenor and composition of funding and liquidity Liquidity risk stress testing 344 to support its assets. – Liquidity risk appetite This section provides an overview of the Group’s liquidity risk. 344 – Liquidity regulation 345 – Liquidity coverage ratio 346 – Net stable funding ratio 346 The liquidity pool is held unencumbered and is intended to offset stress outflows. Liquidity pool 346 – Composition of the liquidity pool 346 – Liquidity pool by currency 347 – Management of the liquidity pool 347 – Contingent liquidity 347 The basis for sound liquidity risk management is a funding structure that reduces the Funding structure and funding relationships 347 probability of a liquidity stress leading to an inability to meet funding obligations as they – Deposit funding 348 fall due. – Wholesale funding 348 Provides details on the contractual maturity of all financial instruments and other assets Contractual maturity of financial assets and 351 and liabilities. liabilities Capital risk performance Capital risk is the risk that the firm has an insufficient level or composition of capital to Capital risk overview and summary of performance 355 support its normal business activities and to meet its regulatory capital requirements Regulatory minimum capital, leverage and MREL 355 under normal operating environments or stressed conditions (both actual and as requirements defined for internal planning or regulatory testing purposes). This also includes the risk – Capital 355 from the firm’s pension plans. This section details the Group’s capital position providing information on both capital – Leverage 355 resources and capital requirements. It also provides details of the leverage ratios and exposures. This section outlines the Group’s capital ratios, capital composition, and provides Analysis of capital resources 357 information on significant movements in CET1 capital during the year. Capital ratios 357 – Capital resources 357 – Movement in CET1 capital 358 This section outlines risk weighted assets by risk type, business and macro drivers. Analysis of risk weighted assets 359 – Risk weighted assets by risk type and business 359 – Movement analysis of risk weighted assets 359 This section outlines the Group’s leverage ratios, leverage exposure composition, and Analysis of leverage ratios and exposures 360 provides information on significant movements in the IFRS and leverage balance sheet. – Leverage ratios and exposures 360 This section outlines the Group’s Minimum requirement for own funds and Eligible – Minimum requirement for own funds and eligible 361 Liabilities (MREL) position and ratios. liabilities The Group discloses the two sources of foreign exchange risk that it is exposed to. Foreign exchange risk 362 – Transactional foreign currency exposure 362 – Translational foreign exchange exposure 362 – Functional currency of operations 362 A review focusing on the UK retirement fund, which represents the majority of the Pension risk review 362 Group’s total retirement benefit obligation. 362 – Assets and liabilities 363 – IAS 19 position – Risk measurement 363

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 344 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Page Interest rate risk in the banking book performance A description of the non-traded market risk framework is provided. Net interest income sensitivity 364 – by business unit 364 The Group discloses a sensitivity analysis on pre-tax net interest income for non- trading financial assets and liabilities. The analysis is carried out by business unit and – by currency 365 currency. Analysis of equity sensitivity 365 The Group measures some non-traded market risks, in particular prepayment, Volatility of the FVOCI portfolio in the liquidity pool 365 recruitment, and residual risk using an economic capital methodology. The Group discloses the overall impact of a parallel shift in interest rates on other comprehensive income and cash flow hedges. The Group measures the volatility of the value of the FVOCI instruments in the liquidity pool through non-traded market risk VaR. Liquidity risk Summary of performance Liquidity Liquidity risk stress testing All disclosures in this section are The liquidity pool at £318bn (December unaudited unless otherwise stated. 2021: £291bn) reflects the Group’s Barclays’ Liquidity Risk is managed within prudent approach to liquidity the Principal Risk: Treasury and Capital Overview management. The Liquidity Coverage Risk Framework. Under this framework, The Group Liquidity Risk is managed within Ratio (LCR) remained well above the 100% the Group has established a liquidity risk Treasury and Capital Risk framework that regulatory requirement at 165% appetite together with the appropriate meets the PRA standards and is designed (December 2021: 168%), equivalent to a limits for the management of the liquidity to maintain liquidity resources that are surplus of £117bn (December 2021: risk. This is the level of liquidity risk the sufficient in amount and quality, and a £116bn). Group chooses to take in pursuit of its funding profile that is appropriate to meet the Group’s Liquidity Risk Appetite. The business objectives and in meeting its The increase in the liquidity pool over the liquidity risk framework is delivered via a regulatory obligations. The Group sets its year was driven by continued deposit combination of policy formation, review internal liquidity risk appetite based on growth and an increase in wholesale and governance, analysis, stress testing, internal liquidity risk stress tests and, funding, partly offset by an increase in limit setting and monitoring. external regulatory requirements namely business funding consumption. An This section provides an analysis of the the Liquidity Coverage Ratio (LCR) and increase in net stress outflows and Group’s: (i) summary of performance, (ii) Net Stable Funding Ratio (NSFR). trapped liquidity within Barclays’ liquidity risk stress testing, iii) liquidity subsidiaries led to a modest reduction in Liquidity risk appetite (LRA) regulation, iv) liquidity pool, (v) funding the LCR ratio. The Net Stable Funding The internal liquidity risk stress test structure and funding relationships, (vi) Ratio (average of last four quarter ends) measures the potential contractual and credit ratings, and (vii) contractual was 137%, which represents £155bn contingent stress outflows under a range maturity of financial assets and liabilities. surplus above 100% regulatory of internally defined stress scenarios, For further detail on liquidity risk requirement. which are then used to determine the size governance and framework, refer to During the year, the Group issued £15bn of the liquidity pool that is immediately pages 156 to 163 of the Barclays PLC Pillar of minimum requirement for own funds available to meet anticipated outflows 3 Report 2022 (unaudited). and eligible liabilities (MREL) instruments in should a stress occur. Key metrics a range of tenors and currencies. As part of the LRA, the Group runs four Liquidity Coverage Ratio Barclays Bank PLC continued to issue in liquidity stress scenarios, aligned to the the shorter-term and medium-term PRA’s prescribed stresses: markets and Barclays Bank UK PLC • 90 days market-wide stress event 165% continued to issue in the shorter-term • 30 days Barclays-specific stress event markets and maintain active secured • 30 days combined market-wide and funding programmes. This funding a Net Stable Funding Ratio Barclays-specific stress event capacity enables the respective entities to maintain their stable and diversified • 12 months market wide stress funding bases. 137% The Group’s reliance on short-term a Average represents the last four spot quarter end positions wholesale funding, as measured by the proportion of wholesale funding maturing in less than one year decreased year-on- year to 39% (December 2021: 40%).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 345 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Key LRA assumptions For the year ended 31 December 2022 Drivers of Liquidity Risk LRA Combined stress – key assumptions Wholesale Secured and Unsecured Funding Risk Zero rollover of maturing wholesale unsecured funding Partial loss of repo capacity on non-extremely liquid repos at contractual maturity date Roll of repo for extremely liquid repo at wider haircut at contractual maturity date Withdrawal of contractual buyback obligations, excess client futures margin, Prime Brokerage (PB) client cash and overlifts Haircuts applied to the market value of marketable assets held in the liquidity buffer Retail and Corporate Funding Risk Retail and Corporate deposit outflows as counterparties seek to diversify their deposit balances Intraday Liquidity Risk Liquidity held to meet increased intraday liquidity usage due to payment and receipts volatility, loss of unsecured credit lines and haircuts applied to collateral values used to back secured credit lines, in a stress Intra-Group Liquidity Risk Liquidity support for material subsidiaries. Surplus liquidity held within certain subsidiaries is not taken as a benefit to the wider Group Cross-Currency Liquidity Risk Deterioration in FX market capacity that may result in restriction in net currency positions (managed as a separate framework) Off-Balance Sheet Liquidity Risk Drawdown on committed facilities based on facility and counterparty type Collateral outflows due to a two-notch credit rating downgrade Increase in the Group's initial margin requirement across all major exchanges Variation margin outflows from collateralised risk positions Outflow of collateral owing but not called Loss of internal sources of funding within the PB synthetics business Franchise-Viability Risk Liquidity held to enable the firm to meet select non-contractual obligations to ensure market confidence in the firm is maintained, including debt buy-backs, swap tear-ups and increased prime brokerage margin debits Funding Concentration Risk Funding from counterparties providing greater than 1% of total funding As at 31 December 2022, the Group held eligible liquid assets well in excess of 100% of net stress outflows of the 30 days combined scenario, which has the highest net outflows of the three short-term liquidity stress scenarios. The Group also runs a long term liquidity stress test, which measures the anticipated outflows over a 12 months market-wide scenario. As at 31 December 2022, the Group remained compliant with this internal metric. Liquidity regulation Certain Basel III standards including those relating to the introduction of the liquidity adequacy requirement measured through the LCR were implemented in EU law through CRR, as amended by CRRII, and the Capital Requirements Directive IV. These standards were retained in the UK regulatory framework via a series of onshoring instruments as part of the UK’s withdrawal from the EU. In October 2021, the PRA published the final policy statement setting out its planned implementation of supplementary Basel III standards, including the Net Stable Funding Ratio (NSFR). These came into effect in the UK on 1 January 2022 from which date the Group monitors its position against both the LCR and NSFR.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 346 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Liquidity coverage ratio The external LCR requirement is designed to promote short-term resilience of a bank’s liquidity risk profile by holding sufficient High Quality Liquid Assets (HQLA) to survive an acute stress scenario lasting for 30 days. 2022 2021 As at 31 December £bn £bn LCR Eligible High Quality Liquid Assets (HQLA) 295 285 Net stress outflows (178) (169) Surplus 117 116 Liquidity coverage ratio 165 % 168 % Net Stable Funding Ratio (NSFR) The external NSFR metric requires banks to maintain a stable funding profile taking into account both on and certain off balance sheet exposures over a medium to long term period. The ratio is defined as the Available Stable Funding (capital and certain liabilities which are defined as stable sources of funding) relative to the Required Stable Funding (assets on balance sheet and certain off balance sheet exposures). The NSFR was 137% at December 2022 (average of last four quarter ends) equivalent to a surplus of £155bn above the regulatory requirement and demonstrates Barclays’ stable funding profile in relation to our on- and certain off-balance sheet activities. 2022 a Net Stable Funding Ratio (NSFR) £bn Total Available Stable Funding 576 Total Required Stable Funding 421 Surplus 155 Net Stable Funding Ratio 137 % Note a Average represents the last four spot quarter end positions As part of the liquidity risk appetite, Barclays establishes minimum LCR, NSFR and internal liquidity stress test limits. The Group plans to maintain its surplus to the internal and regulatory requirements at an efficient level. Risks to market funding conditions, the Group’s liquidity position and funding profile are assessed continuously, and actions are taken to manage the size of the liquidity pool and the funding profile as appropriate. Liquidity pool The Group liquidity pool as at 31 December 2022 was £318bn (2021: £291bn). During 2022, the month-end liquidity pool ranged from £309bn to £359bn (2021: £290bn to £337bn), and the month-end average balance was £331bn (2021: £303bn). The liquidity pool is held unencumbered and is intended to offset stress outflows. It comprises the following cash and unencumbered assets. Composition of the Group liquidity pool as at 31 December 2022 a LCR eligible High Quality Liquid Assets (HQLA) Liquidity pool Cash Level 1 Level 2A Level 2B Total 2022 2021 £bn £bn £bn £bn £bn £bn £bn b Cash and deposits with central banks 248 248 263 245 c Government bonds AAA to AA- — 21 10 — 31 39 26 A+ to A- — 1 2 — 3 3 2 BBB+ to BBB- — — — — — — — Total government bonds — 22 12 — 34 42 28 Other Government guaranteed issuers, PSEs and GSEs — 5 1 — 6 6 6 International organisations and MDBs — 2 — — 2 2 5 Covered bonds — 2 2 — 4 5 6 Other — — — 1 1 — 1 Total other — 9 3 1 13 13 18 Total as at 31 December 2022 248 31 15 1 295 318 Total as at 31 December 2021 243 37 3 2 285 291 Notes a The LCR eligible HQLA is adjusted for operational restrictions upon consolidation under Article 8 of the Liquidity Coverage Ratio section of the PRA rulebook (CRR) such as trapped liquidity within Barclays subsidiaries. It also reflects differences in eligibility of assets between the LCR and Barclays’ Liquidity Pool. b Includes cash held at central banks and surplus cash at central banks related to payment schemes. Of which over 99% (2021: over 99%) was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank. c Of which over 79% (2021: over 82%) comprised UK, US, French, German, Japanese, Swiss and Dutch securities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 347 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) The Group liquidity pool is well diversified by major currency and the Group monitors LRA stress scenarios for major currencies. Liquidity pool by currency USD EUR GBP Other Total £bn £bn £bn £bn £bn Liquidity pool as at 31 December 2022 72 79 142 25 318 Liquidity pool as at 31 December 2021 59 52 132 48 291 Management of the liquidity pool The composition of the liquidity pool is subject to limits set by the Board and the independent liquidity risk, credit risk and market risk functions. In addition, the investment of the liquidity pool is monitored for concentration risk by issuer, currency and asset type. Given the returns generated by these highly liquid assets, the risk and reward profile is continuously managed. As at 31 December 2022, 60% (2021: 58%) of the liquidity pool was located in Barclays Bank PLC, 25% (2021: 30%) in Barclays Bank UK PLC and 9% (2021: 7%) in Barclays Bank Ireland PLC. The residual portion of the liquidity pool is held outside of these entities, predominantly in the US subsidiaries, to meet entity-specific stress outflows and local regulatory requirements. To the extent the use of this portion of the liquidity pool is restricted due to local regulatory requirements, it is assumed to be unavailable to the rest of the Group in calculating the LCR. Contingent liquidity In addition to the Group liquidity pool, the Group has access to other unencumbered assets which provide a source of contingent liquidity. While these are not relied on in the Group’s LRA, a portion of these assets may be monetised in a stress to generate liquidity through their use as collateral for secured funding or through outright sale. In a Barclays-specific, market-wide or combined liquidity stress, liquidity available via market sources could be severely disrupted. In circumstances where market liquidity is unavailable or available only at significantly elevated prices, the Group could generate liquidity via central bank facilities. To this end, as at 31 December 2022, the Group had £83.3bn (December 2021: £93.3bn) of assets positioned at various central banks. For more detail on the Group’s other unencumbered assets, see pages 180 to 182 of the Barclays PLC Pillar 3 Report 2022 (unaudited). Funding structure and funding relationships The basis for sound liquidity risk management is a funding structure that reduces the probability of a liquidity stress leading to an inability to meet funding obligations as they fall due. The Group’s overall funding strategy is to develop a diversified funding base (geographically, by type and by counterparty) and maintain access to a variety of alternative funding sources, to provide protection against unexpected fluctuations, while minimising the cost of funding. Within this, the Group aims to align the sources and uses of funding. As such, retail and corporate loans and advances are largely funded by deposits in the relevant entities, with the surplus primarily funding the liquidity pool. The majority of reverse repurchase agreements are matched by repurchase agreements. Derivative liabilities and assets are largely matched. A substantial proportion of balance sheet derivative positions qualify for counterparty netting and the remaining portions are largely offset when netted against cash collateral received and paid. Wholesale debt and equity is used to fund residual assets. These funding relationships are summarised below: c Restated 2022 2021 2022 2021 Assets Liabilities £bn £bn £bn £bn Loans and advances at amortised a cost 385 358 Deposits at amortised cost 546 519 Group liquidity pool 318 291 1 Year wholesale funding 111 101 Reverse repurchase agreements, Repurchase agreements, trading trading portfolio assets, cash collateral portfolio liabilities, cash collateral and and settlement balances 412 388 settlement balances 370 330 Derivative financial instruments 302 263 Derivative financial instruments 290 257 b Other assets 97 84 Other liabilities 55 40 Equity 69 70 Total assets 1,514 1,384 Total liabilities 1,514 1,384 Notes a Adjusted for liquidity pool debt securities reported at amortised costs of £14bn (December 2021: £3bn). b Other assets include fair value assets that are not part of reverse repurchase agreements or trading portfolio assets, and other asset categories. c 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Impact of the Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 348 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Deposit funding 2022 2021 Loans and advances at Deposits at Loan: deposit Loan: deposit a Funding of loans and advances amortised cost amortised cost ratio ratio As at 31 December 2022 £bn £bn % % Barclays UK 225 258 87 % 85 % Barclays International 170 288 59 % 52 % Head Office 4 — Barclays Group 399 546 73 % 70 % Note a The loan: deposit ratio is calculated as loans and advances at amortised cost divided by deposits at amortised cost. As at 31 December 2022, £224bn (2021: £222bn) of total customer deposits were insured through the UK Financial Services Compensation Scheme (FSCS) and other similar schemes. In addition to these customer deposits £5.7bn (2021: £1.3bn) of other liabilities are insured by other governments. Contractually current accounts are repayable on demand and savings accounts at short notice. In practice, their observed maturity is typically longer than their contractual maturity. Similarly, repayment profiles of certain types of assets e.g. mortgages, overdrafts and credit card lending, differ from their contractual profiles. The Group therefore assesses the behavioural maturity of both customer assets and liabilities to identify structural balance sheet funding gaps. In doing so, it applies quantitative modelling and qualitative assessments which take into account historical experience, current customer composition, and macroeconomic projections. The Group’s broad base of customers, numerically and by depositor type, helps protect against unexpected fluctuations in balances and hence provides a stable funding base for the Group’s operations and liquidity needs. Wholesale funding Barclays Bank Group and Barclays Bank UK Group maintain access to a variety of sources of wholesale funds in major currencies, including those available from term investors across a variety of distribution channels and geographies, short-term funding markets and repo markets. Barclays Bank Group has direct access to US, European and Asian capital markets through its global investment banking operations and to long-term investors through its clients worldwide. Key sources of wholesale funding include money markets, certificates of deposit, commercial paper, medium term issuances (including structured notes) and securitisations. Key sources of wholesale funding for Barclays Bank UK Group include money markets, certificates of deposit, commercial paper, covered bonds and other securitisations. The Group expects to continue issuing public wholesale debt from Barclays PLC (the Parent company), in order to maintain compliance with indicative MREL requirements and maintain a stable and diverse funding base by type, currency and market. During the year, the Group issued £15.3bn of MREL instruments from Barclays PLC (the Parent company) in a range of different currencies and tenors. Barclays Bank PLC continued to issue in the shorter-term markets and maintain active medium-term notes programmes. Barclays Bank UK PLC continued to issue in the shorter-term markets and maintain active secured funding programmes. This funding capacity enables the respective entities to maintain their stable and diversified funding bases. As at 31 December 2022, the Group’s total wholesale funding outstanding (excluding repurchase agreements) was £184.0bn (2021: £167.5bn), of which £19.2bn (2021: £16.6bn) was secured funding and £164.8bn (2021: £150.9bn) unsecured funding. Unsecured funding includes £59.7bn (2021: £59.7bn) of privately placed senior unsecured notes issued through a variety of distribution channels including intermediaries and private banks. d d Wholesale funding of £72.5bn (2021: £66.7bn ) matures in less than one year, representing 39% (December 2021: 40% ) of total d b wholesale funding outstanding. This includes £15.0bn (2021: £24.9bn ) related to term funding . Although not a requirement, the d liquidity pool exceeded the wholesale funding maturing in less than one year by £246bn (2021: £224bn ). Barclays Bank Group and Barclays Bank UK Group also support various central bank monetary initiatives, such as the Bank of England’s Term Funding Scheme with additional incentives for SMEs (TFSME), and the European Central Bank’s Targeted Long-Term Refinancing Operations (TLTRO). These are reported under ‘repurchase agreements and other similar secured borrowing’ on the balance sheet. In 2022, Barclays repaid £1.1bn of its TLTRO drawings reducing its outstanding balance to £1.4bn as at 31 December 2022. In addition, Barclays had £22.0bn TFSME balances outstanding at the year-end.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 349 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) a,b Maturity profile of wholesale funding 1-3 3-6 6-12

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 350 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Credit ratings In addition to monitoring and managing key metrics related to the financial strength of the Group, Barclays also solicits independent credit ratings from Standard & Poor’s Global (S&P), Moody’s, Fitch, and Rating and Investment Information (R&I). These ratings assess the creditworthiness of the Group, its subsidiaries and its branches, and are based on reviews of a broad range of business and financial attributes including capital strength, profitability, funding, liquidity, asset quality, strategy and governance. Credit ratings As at 31 December 2022 Standard & Poor's Moody's Fitch Barclays Bank PLC A/Positive A1/Negative A+/Stable Long term A-1 P-1 F1 Short term Barclays Bank UK PLC A/Positive A1/Stable A+/Stable Long term A-1 P-1 F1 Short term Barclays PLC BBB/Positive Baa2/Review for upgrade A/Stable Long term A-2 P-2 F1 Short term In June 2022, S&P affirmed all ratings for Barclays PLC, Barclays Bank PLC and Barclays Bank UK PLC and maintained positive outlooks. In June 2021, S&P revised the outlooks of Barclays PLC, Barclays Bank PLC and Barclays Bank UK PLC to positive from stable reflecting the view that Barclays is delivering a stronger, more consistent business profile and financial performance. In October 2022, Moody’s revised the outlook of Barclays Bank PLC to negative from stable alongside other major UK bank operating subsidiaries, reflecting Moody’s view of the potentially weaker capacity of the UK Government to support the country's systemic banks. However, Moody’s also noted that the impact of a UK sovereign downgrade could be offset by an upgrade of Barclays PLC, because lower support from a weakening sovereign would be offset by higher support from a strengthening parent. In December 2022, Moody’s revised the outlook of Barclays PLC to review for upgrade from positive, whilst affirming all ratings. The revision reflects Moody’s view that the Group's earnings has improved, driven by repositioning and investments in the capital markets and US credit cards businesses, higher net interest income following rate hikes in the UK, US and EU, and low cost of risk. In September 2022, Fitch affirmed all ratings for Barclays PLC, Barclays Bank PLC and Barclays Bank UK PLC. Barclays also solicits issuer ratings from R&I and the ratings of A for Barclays PLC and A+ for Barclays Bank PLC were affirmed in November 2022 with stable outlooks. A credit rating downgrade could result in outflows to meet collateral requirements on existing contracts. Outflows related to credit rating downgrades are included in the LRA stress scenarios and a portion of the liquidity pool is held against this risk. Credit ratings downgrades could also result in reduced funding capacity and increased funding costs. The contractual collateral requirement following one- and two-notch long-term and associated short-term downgrades across all credit rating agencies, would result in outflows of £1bn and £3bn respectively, and are provided for in determining an appropriate liquidity pool size given the Group’s liquidity risk appetite. These numbers do not assume any management or restructuring actions that could be taken to reduce posting requirements. These outflows do not include the potential liquidity impact from loss of unsecured funding, such as from money market funds, or loss of secured funding capacity. However, unsecured and secured funding stresses are included in the LRA stress scenarios and a portion of the liquidity pool is held against these risks.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 351 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Contractual maturity of financial assets and liabilities The table below provides detail on the contractual maturity of all financial instruments and other assets and liabilities. Derivatives (other than those designated in a hedging relationship) and trading portfolio assets and liabilities are included in the ‘on demand’ column at their fair value. Liquidity risk on these items is not managed on the basis of contractual maturity since they are not held for settlement according to such maturity and will frequently be settled before contractual maturity at fair value. Derivatives designated in a hedging relationship are included according to their contractual maturity. Contractual maturity of financial assets and liabilities (audited) Over three Over six Over nine Over one Over two Over three Over five months but months but months but year years but years but years but Not more not more not more not more but not not more not more not more On than three than six than nine than one more than than three than five than ten Over ten demand months months months year two years years years years years Total As at 31 December 2022 £m £m £m £m £m £m £m £m £m £m £m Assets Cash and balances at central banks 256,097 254 — — — — — — — — 256,351 Cash collateral and settlement balances 2,977 109,620 — — — — — — — — 112,597 Loans and advances at amortised cost 17,764 12,719 9,716 8,275 11,942 34,790 29,325 56,519 40,539 177,190 398,779 Reverse repurchase agreements and other similar secured lending 127 648 — — — — — — — 1 776 Trading portfolio assets 133,813 — — — — — — — — — 133,813 Financial assets at fair value through the income statement 32,071 147,644 6,771 4,718 2,047 6,491 4,922 3,292 2,292 3,320 213,568 Derivative financial instruments 301,647 54 66 70 — 110 352 44 21 16 302,380 Financial assets at fair value through other comprehensive income 8 6,433 4,535 1,687 1,395 9,206 7,560 16,418 10,385 7,435 65,062 Other financial assets 433 1,177 — — 43 — — 1 — 2 1,656 Total financial assets 744,937 278,549 21,088 14,750 15,427 50,597 42,159 76,274 53,237 187,964 1,484,982 Other assets 28,717 Total assets 1,513,699 Liabilities Deposits at amortised cost 443,736 63,076 19,388 5,090 8,575 4,263 327 499 589 239 545,782 Cash collateral and settlement balances 2,932 93,995 — — — — — — — — 96,927 Repurchase agreements and other similar secured borrowing 256 9,562 — — 943 1,105 5,034 10,069 — 83 27,052 Debt securities in issue — 33,109 13,259 5,582 6,294 9,435 6,817 14,808 15,526 8,051 112,881 Subordinated liabilities — 17 — 83 179 1,181 — 1,987 6,493 1,483 11,423 Trading portfolio liabilities 72,924 — — — — — — — — — 72,924 Financial liabilities designated at fair value 10,844 186,733 14,352 5,292 3,812 14,000 10,548 8,528 6,708 10,820 271,637 Derivative financial instruments 288,573 45 63 5 2 157 105 273 56 341 289,620 Other financial liabilities 86 7,803 43 43 41 261 148 247 391 93 9,156 Total financial liabilities 819,351 394,340 47,105 16,095 19,846 30,402 22,979 36,411 29,763 21,110 1,437,402 Other liabilities 7,037 Total liabilities 1,444,439 Cumulative liquidity gap (74,414) (190,205) (216,222) (217,567) (221,986) (201,791) (182,611) (142,748) (119,274) 47,580 69,260

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 352 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) a Contractual maturity of financial assets and liabilities (audited) Over three Over six Over nine Over one Over two Over three Over five months but months but months but year years but years but years but Not more not more not more not more but not not more not more not more On than three than six than nine than one more than than three than five than ten Over ten demand months months months year two years years years years years Total As at 31 December 2021 £m £m £m £m £m £m £m £m £m £m £m Assets Cash and balances at central banks 238,369 205 — — — — — — — — 238,574 Cash collateral and settlement balances 2,807 89,735 — — — — — — — — 92,542 Loans and advances at amortised cost 19,749 8,670 8,879 5,291 10,192 23,716 26,037 47,614 39,822 171,481 361,451 Reverse repurchase agreements and other similar secured lending 58 2,984 — — — 184 — — — 1 3,227 Trading portfolio assets 147,035 — — — — — — — — — 147,035 Financial assets at fair value through the income statement 24,257 127,085 9,281 7,042 3,451 5,889 5,394 2,590 2,564 4,419 191,972 Derivative financial instruments 261,678 58 48 — — 82 145 537 15 9 262,572 Financial assets at fair value through other comprehensive income — 4,280 1,488 1,245 1,419 3,834 8,205 13,188 18,226 9,868 61,753 Other financial assets 707 474 26 2 — 1 — — 1 2 1,213 Total financial assets 694,660 233,491 19,722 13,580 15,062 33,706 39,781 63,929 60,628 185,780 1,360,339 Other assets 23,946 Total assets 1,384,285 Liabilities Deposits at amortised cost 454,961 40,755 13,524 2,994 3,724 2,025 433 241 545 231 519,433 Cash collateral and settlement balances 2,983 76,388 — — — — — — — — 79,371 Repurchase agreements and other similar secured borrowing 20 6,621 — — — 2,195 8,925 10,504 — 87 28,352 Debt securities in issue — 24,399 12,606 5,845 3,254 9,792 8,957 12,948 12,218 8,848 98,867 Subordinated liabilities — 1,007 — 74 1,218 27 1,063 1,885 5,603 1,882 12,759 Trading portfolio liabilities 54,169 — — — — — — — — — 54,169 Financial liabilities designated at fair value 21,339 157,900 16,857 10,268 3,588 6,540 6,114 7,734 7,366 13,254 250,960 Derivative financial instruments 255,747 4 22 18 5 124 177 302 122 362 256,883 Other financial liabilities 184 4,331 43 42 40 691 145 266 420 139 6,301 Total financial liabilities 789,403 311,405 43,052 19,241 11,829 21,394 25,814 33,880 26,274 24,803 1,307,095 Other liabilities 7,149 Total liabilities 1,314,244 Cumulative liquidity gap (94,743) (172,657) (195,987) (201,648) (198,415) (186,103) (172,136) (142,087) (107,733) 53,244 70,041 Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Impact of the Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. Expected maturity date may differ from the contractual dates, to account for: • trading portfolio assets and liabilities and derivative financial instruments, which may not be held to maturity as part of the Group’s trading strategies • corporate and retail deposits, reported under deposits at amortised cost, are repayable on demand or at short notice on a contractual basis. In practice, their behavioural maturity is typically longer than their contractual maturity, and therefore these deposits provide stable funding for the Group’s operations and liquidity needs because of the broad base of customers, both numerically and by depositor type • loans to corporate and retail customers, which are included within loans and advances at amortised cost and financial assets at fair value, may be repaid earlier in line with terms and conditions of the contract • debt securities in issue, subordinated liabilities, and financial liabilities designated at fair value, may include early redemption features.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 353 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Contractual maturity of financial liabilities on an undiscounted basis The table below presents the cash flows payable by the Group under financial liabilities by remaining contractual maturities at the balance sheet date. The amounts disclosed in the table are the contractual undiscounted cash flows of all financial liabilities (i.e. nominal values). The balances in the below table do not agree directly to the balances in the consolidated balance sheet as the table incorporates all cash flows, on an undiscounted basis, related to both principal as well as those associated with all future coupon payments. Derivative financial instruments held for trading and trading portfolio liabilities are included in the on demand column at their fair value. Contractual maturity of financial liabilities - undiscounted (audited) Over three Over one Over three Over five months but Over six year years but years but Not more not more months but but not not more not more On than three than six not more more than than five than ten Over ten demand months months than one year three years years years years Total £m £m £m £m £m £m £m £m £m As at 31 December 2022 Deposits at amortised cost 443,736 63,235 19,393 13,798 4,606 499 706 376 546,349 Cash collateral and settlement balances 2,932 94,183 — — — — — — 97,115 Repurchase agreements and other similar secured borrowing 256 9,575 — 946 6,920 12,234 — 252 30,183 Debt securities in issue — 33,226 13,375 12,165 16,964 16,790 19,207 14,871 126,598 Subordinated liabilities — 17 — 263 1,274 2,356 7,902 2,429 14,241 Trading portfolio liabilities 72,924 — — — — — — — 72,924 Financial liabilities designated at fair value 10,844 187,126 14,905 9,399 25,662 9,847 8,345 24,754 290,882 Derivative financial instruments 288,573 107 101 8 290 321 71 722 290,193 Other financial liabilities 86 7,813 56 109 488 308 455 109 9,424 Total financial liabilities 819,351 395,282 47,830 36,688 56,204 42,355 36,686 43,513 1,477,909 a Restated As at 31 December 2021 Deposits at amortised cost 454,961 40,755 13,524 6,718 2,461 239 559 261 519,478 Cash collateral and settlement balances 2,983 76,388 — — — — — — 79,371 Repurchase agreements and other similar secured borrowing 20 6,621 — — 11,356 10,885 — 146 29,028 Debt securities in issue — 24,450 12,625 9,075 19,225 14,060 14,147 13,690 107,272 Subordinated liabilities — 1,063 — 1,379 1,213 2,316 6,627 2,867 15,465 Trading portfolio liabilities 54,169 — — — — — — — 54,169 Financial liabilities designated at fair value 21,339 158,070 16,887 13,946 12,944 8,086 7,544 21,638 260,454 Derivative financial instruments 255,747 5 22 24 305 316 134 449 257,002 Other financial liabilities 184 4,344 57 111 932 327 502 162 6,619 Total financial liabilities 789,403 311,696 43,115 31,253 48,436 36,229 29,513 39,213 1,328,858 Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See Impact of the Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 354 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Maturity of off-balance sheet commitments received and given The table below presents the maturity split of the Group’s off-balance sheet commitments received and given at the balance sheet date. The amounts disclosed in the table are the undiscounted cash flows (i.e. nominal values) on the basis of earliest opportunity at which they are available. Maturity analysis of off-balance sheet commitments received (audited) Over three Over six Over months months Over nine Over one Over two three Over five but not but not months year but years but years but years but Not more more than more than but not not more not more not more not more On than three six nine more than than two than three than five than ten Over ten demand months months months one year years years years years years Total £m £m £m £m £m £m £m £m £m £m £m As at 31 December 2022 Guarantees, letters of credit and credit insurance 19,301 92 102 10 46 16 37 76 96 1 19,777 Other commitments received 7,473 — — — — — — — — — 7,473 Total off-balance sheet commitments received 26,774 92 102 10 46 16 37 76 96 1 27,250 As at 31 December 2021 Guarantees, letters of credit and credit insurance 25,613 31 21 10 12 4 12 83 65 19 25,870 Other commitments received 455 — — — — — — — — — 455 Total off-balance sheet commitments received 26,068 31 21 10 12 4 12 83 65 19 26,325 Maturity analysis of off-balance sheet commitments given (audited) Over three Over six Over months months Over nine Over one Over two three Over five but not but not months year but years but years but years but Not more more than more than but not not more not more not more not more On than three six nine more than than two than three than five than ten Over ten demand months months months one year years years years years years Total £m £m £m £m £m £m £m £m £m £m £m As at 31 December 2022 Contingent liabilities and financial guarantees 24,103 86 14 1 — 1 — — — — 24,205 Documentary credits and other short- term trade related transactions 1,740 3 5 1,748 Standby facilities, credit lines and other commitments 393,723 — — — — 37 — — — — 393,760 Total off-balance sheet commitments given 419,566 89 19 1 — 38 — — — — 419,713 As at 31 December 2021 Contingent liabilities and financial guarantees 21,207 135 4 — — — — — — — 21,346 Documentary credits and other short- term trade related transactions 1,582 2 — — — — — — — — 1,584 Standby facilities, credit lines and other commitments 344,055 — — — — 72 — — — — 344,127 Total off-balance sheet commitments given 366,844 137 4 — — 72 — — — — 367,057

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 355 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Capital risk Summary of performance in the Minimum capital requirements All disclosures in this section are unaudited period The Group’s Overall Capital Requirement unless otherwise stated. for CET1 is 11.3% comprising a 4.5% Pillar The Group continues to be in excess of Overview 1 minimum, a 2.5% Capital Conservation overall capital, leverage and MREL Buffer (CCB), a 1.5% Global Systemically regulatory requirements. The CET1 ratio, among other metrics, is a Important Institution (G-SII) buffer, a 2.4% measure of the capital strength and The reported CET1 ratio decreased by Pillar 2A requirement and a 0.4% resilience of Barclays. Maintenance of our c.120bps to 13.9% (December 2021: Countercyclical Capital Buffer (CCyB). capital resources is vital in order to meet 15.1%) as RWAs increased by £22.4bn to the overall regulatory capital requirement, The Group’s CCyB is based on the buffer £336.5bn and CET1 capital decreased by to withstand the impact of the risks that rate applicable for each jurisdiction in which £0.4bn to £46.9bn may arise under normal and stressed the Group has exposures. On 13 ▪ c.150bps increase from 2022 conditions, and maintain adequate capital December 2021, the Financial Policy attributable profit to cover current and forecast business Committee (FPC) announced the re- ▪ c.80bps returned to shareholders needs and associated risks to provide a introduction of a CCyB rate of 1% for UK including the 2.25p half year dividend viable and sustainable business offering. exposures with effect from 13 December paid in September 2022, £1.5bn of share 2022. The buffer rates set by other This section provides an overview of the buybacks announced with FY21 and national authorities for non-UK exposures Group’s: (i) CET1 capital, leverage and own H122 results and a FY22 dividend are not currently material. Overall, this funds and eligible liabilities requirements; accrual results in a 0.4% CCyB for the Group. On 5 (ii) capital resources; (iii) risk weighted ▪ c.80bps reduction due to the impact of July 2022, the FPC announced that the UK assets (RWAs); (iv) leverage ratios and regulatory change on 1 January 2022 as CCyB rate will be increased from 1% to 2% exposures; and (v) own funds and eligible CET1 capital decreased £1.7bn and with effect from 5 July 2023. liabilities. RWAs increased £6.6bn The Group’s updated Pillar 2A requirement More details on monitoring and managing ▪ c.70bps reduction from decreases in the as per the PRA’s Individual Capital capital risk may be found in the risk fair value of the bond portfolio through requirement is 4.3% of which at least management sections of the Barclays PLC other comprehensive income and other 56.25% needs to be met with CET1 capital, Pillar 3 Report 2022 (unaudited). capital deductions equating to 2.4% of RWAs. The Pillar 2A requirement, based on a point in time ▪ c.40bps reduction due to pension Key metrics assessment, has been set as a proportion contributions, including the accelerated Common Equity Tier 1 ratio of RWAs and is subject to at least annual cash settlement to the UK Retirement review. Fund (UKRF) of earlier deficit reduction contributions and deficit reduction The Group’s CET1 target ratio of 13-14% 13.9% payments made in 2022 takes into account headroom above requirements which includes a confidential ▪ A £14.1bn increase in RWAs as a result institution-specific PRA buffer. The Group UK leverage ratio of foreign exchange movements was remains above its minimum capital broadly offset by a £2bn increase in the regulatory requirements including the PRA currency translation reserve buffer. 5.3% The UK leverage ratio increased to 5.3% Minimum leverage requirements (December 2021: 5.2%) primarily due to a decrease in the leverage exposure of The Group is subject to a leverage ratio Average UK leverage ratio £7.9bn to £1,130.0bn and an increase in requirement of 4.0% as at 31 December Tier 1 Capital of £0.6bn to £60.1bn. 2022. This comprises the 3.25% minimum requirement, a G-SII additional leverage 4.8% ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer Own funds and eligible liabilities ratio as a (CCLB) of 0.2%. Although the leverage percentage of RWAs ratio is expressed in terms of Tier 1 (T1) capital, 75% of the minimum requirement, equating to 2.4375%, needs to be met 33.5% with CET1 capital. In addition, the G-SII ALRB and CCLB must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was £5.9bn and against the 0.2% CCLB was £2.3bn. The Group is also required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 356 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) On 30 November 2022, the PRA published The securities issued in excess of the Minimum requirements for own its consultation paper 'Implementation of registered amount included structured funds and eligible liabilities the Basel 3.1 standards', which covers the products and exchange traded notes. As The Group is required to meet the higher remaining parts of the Basel III standards these securities were not issued in of: (i) two times the sum of 8% Pillar 1 and to be implemented in the UK. Changes are compliance with the Securities Act, a right 4.3% Pillar 2A equating to 24.5% of RWAs; expected to come in to force from 1 of rescission arose for certain purchasers and (ii) 6.75% of leverage exposures. In January 2025, other than those areas of the securities. A portion of the costs addition, the higher of regulatory capital associated with the right of rescission subject to transitional provisions. Barclays and leverage buffers apply. CET1 capital currently expects the impact on RWAs on were attributable to the financial cannot be counted towards both MREL 1 January 2025 to be at the lower end of statements for the year ended 31 and the buffers, meaning that the buffers, the prior 5-10% RWA inflation guidance. December 2021, resulting in the including the above mentioned The PRA is currently consulting on the rule restatement of the 2021 figures in the confidential institution-specific PRA buffer, disclosures below. changes, and there will be a review of the will effectively be applied above MREL Pillar 2A framework in 2024 which may Prior to the restatement, litigation and requirements. offset some of the impact. conduct charges in the income statement Significant regulatory updates in Leverage in relation to 2021 were underreported by the period £220m (pre-tax). This resulted in a CET1 From 1 January 2022, UK banks became capital decrease of £170m from £47,497m Capital and RWAs subject to a single UK leverage ratio to £47,327m. Both the transitional and fully requirement meaning that the CRR On 1 January 2022, the PRA’s loaded CET1 ratios remained unchanged leverage ratio no longer applies. Under the implementation of Basel III standards took at 15.1% and 14.7% respectively. The T1 revised UK leverage ratio framework, effect including the re-introduction of the ratio moved from 19.2% to 19.1% and the central bank claims have been excluded 100% CET1 capital deduction for qualifying total capital ratio moved from 22.3% to from the UK leverage exposure measure software intangible assets and the 22.2%. where they are matched by qualifying introduction of the Standardised Approach liabilities (rather than deposits). for Counterparty Credit Risk (SA-CCR) The leverage exposure increased £1.9bn which replaces the Current Exposure to recognise on a regulatory basis, the In the disclosures that follow, references Method for Standardised derivative potential commitment relating to the to CRR, as amended by CRR II, mean the exposures as a more risk sensitive rescission offer. This resulted in the UK capital regulatory requirements, as they approach. In addition, the PRA also leverage ratio moving from 5.3% to 5.2% form part of domestic law by virtue of the implemented IRB roadmap changes which whilst the average UK leverage ratio European Union (Withdrawal) Act 2018, as includes revisions to the criteria for remained unchanged at 4.9%. amended. definition of default, probability of default Total own funds and eligible liabilities Impact of Over-issuance of and loss given default estimation to ensure decreased £0.2bn to £108bn, which was in Securities in the US supervisory consistency and increase excess of a restated requirement to hold transparency of IRB models. In March 2022, the Group became aware £94bn of own funds and eligible liabilities. that Barclays Bank PLC had issued securities materially in excess of the amount it had registered with the SEC under Barclays Bank PLC’s 2019 F-3. Subsequently, the Group became aware that securities had also been issued in excess of the amount it had registered with the SEC under the Predecessor Shelf.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 357 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Capital resources b,c Capital ratios a Restated As at 31 December 2022 2021 CET1 13.9 % 15.1 % Tier 1 (T1) 17.9 % 19.1 % Total regulatory capital 20.8 % 22.2 % Capital resources (audited) 2022 2021 As at 31 December £m £m Total equity excluding non-controlling interests per the balance sheet 68,292 69,052 Less: other equity instruments (recognised as AT1 capital) (13,284) (12,259) Adjustment to retained earnings for foreseeable ordinary share dividends (787) (666) (37) (32) Adjustment to retained earnings for foreseeable other equity coupons Other regulatory adjustments and deductions Additional value adjustments (PVA) (1,726) (1,585) Goodwill and intangible assets (8,224) (6,804) Deferred tax assets that rely on future profitability excluding temporary differences (1,500) (1,028) Fair value reserves related to gains or losses on cash flow hedges 7,237 852 Excess of expected losses over impairment (119) — Gains or losses on liabilities at fair value resulting from own credit (620) 892 Defined benefit pension fund assets (3,430) (2,619) Direct and indirect holdings by an institution of own CET1 instruments (20) (50) Adjustment under IFRS 9 transitional arrangements 700 1,229 Other regulatory adjustments 396 345 CET1 capital 46,878 47,327 AT1 capital Capital instruments and related share premium accounts 13,284 12,259 Qualifying AT1 capital (including minority interests) issued by subsidiaries — 637 Other regulatory adjustments and deductions (60) (80) AT1 capital 13,224 12,816 T1 capital 60,102 60,143 T2 capital Capital instruments and related share premium accounts 9,000 8,713 Qualifying T2 capital (including minority interests) issued by subsidiaries 1,095 1,113 Credit risk adjustments (excess of impairment over expected losses) 35 73 Other regulatory adjustments and deductions (160) (160) Total regulatory capital 70,072 69,882 336,518 314,136 Total RWAs (Unaudited) Notes a Capital and leverage metrics as at 31 December 2021 have been restated to reflect the impact of the Over-issuance of Securities.See Impact of Over-issuance of Securities on page 356 for further details. b CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the grandfathering of CRR II non-compliant capital instruments. December 2021 comparatives include the grandfathering of CRR non-compliant capital instruments. c The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC AT1 securities, was 13.7%, with £46.2bn of CET1 capital and £336.3bn of RWAs calculated without applying the transitional arrangements of the CRR as amended by CRR II.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 358 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Movement in CET1 capital 2022 £m a Opening balance as at 1 January 2022 47,327 Profit for the period attributable to equity holders 5,928 Own credit relating to derivative liabilities (85) Ordinary share dividends paid and foreseen (1,149) Purchased and foreseeable share repurchase (1,500) Other equity coupons paid and foreseen (910) Increase in retained regulatory capital generated from earnings 2,284 Net impact of share schemes 108 Fair value through other comprehensive income reserve (1,277) Currency translation reserve 2,032 Other reserves 138 Increase in other qualifying reserves 1,001 Pension remeasurements within reserves (281) Defined benefit pension fund asset deduction (811) Net impact of pensions (1,092) Additional value adjustments (PVA) (141) Goodwill and intangible assets (1,420) Deferred tax assets that rely on future profitability excluding those arising from temporary differences (472) Excess of expected loss over impairment (119) Direct and indirect holdings by an institution of own CET1 instruments 30 Adjustment under IFRS 9 transitional arrangements (529) Other regulatory adjustments 9 Decrease in regulatory capital due to adjustments and deductions (2,642) Closing balance as at 31 December 2022 46,878 Note a Opening balance as at 1January 2022 has been restated to reflect the impact of the Over-issuance of Securities.See Impact of Over-issuance of Securities on page 356 for further details. CET1 capital decreased £0.4bn to £46.9bn (December 2021: £47.3bn). CET1 capital decreased by £1.7bn as a result of regulatory changes that took effect from 1 January 2022 including the re-introduction of the 100% CET1 capital deduction for qualifying software intangible assets and a reduction in IFRS9 transitional relief due to the relief applied to the pre-2020 impairment charge reducing to 25% in 2022 from 50% in 2021 and the relief applied to the post-2020 impairment charge reducing to 75% in 2022 from 100% in 2021. £5.9bn of capital generated from profit, after absorbing the £0.6bn net of tax impact of the Over-issuance of Securities, was partially offset by distributions of £3.5bn comprising: • £1.5bn of total buybacks including the £1bn buyback announced with FY21 results and the £0.5bn buyback announced with H122 results • £1.1bn of ordinary share dividends paid and foreseen reflecting the £0.4bn half year 2022 dividend paid and a £0.8bn accrual towards a full year 2022 dividend • £0.9bn of equity coupons paid and foreseen Other significant movements in the period were: • £1.3bn reduction from decreases in the fair value of the bond portfolio through other comprehensive income • £2.0bn increase in the currency translation reserve driven by the appreciation of period end USD against GBP • £1.1bn decrease due to the net impact of pensions primarily as a result of the accelerated cash settlement to the UKRF of earlier deficit reduction contributions as well as deficit reduction payments made in 2022

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 359 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Risk weighted assets Risk weighted assets (RWAs) by risk type and business Operation Total Credit risk Counterparty credit risk Market risk al risk RWAs Settlemen Std IRB Std IRB t risk CVA Std IMA As at 31 December 2022 £m £m £m £m £m £m £m £m £m £m Barclays UK 6,836 54,752 167 — — 72 233 — 11,023 73,083 Corporate and Investment Bank 35,738 75,413 16,814 21,449 80 3,093 13,716 22,497 27,064 215,864 Consumer, Cards and Payments 27,882 3,773 214 46 — 61 — 388 6,559 38,923 Barclays International 63,620 79,186 17,028 21,495 80 3,154 13,716 22,885 33,623 254,787 Head Office 2,636 6,843 — — — — — — (831) 8,648 Barclays Group 73,092 140,781 17,195 21,495 80 3,226 13,949 22,885 43,815 336,518 As at 31 December 2021 Barclays UK 7,195 53,408 426 — — 138 100 — 11,022 72,289 Corporate and Investment Bank 29,420 64,416 15,223 19,238 105 2,289 17,306 27,308 25,359 200,664 Consumer, Cards and Payments 20,770 2,749 215 18 — 21 — 57 6,391 30,221 Barclays International 50,190 67,165 15,438 19,256 105 2,310 17,306 27,365 31,750 230,885 Head Office 4,733 7,254 — — — — — — (1,025) 10,962 Barclays Group 62,118 127,827 15,864 19,256 105 2,448 17,406 27,365 41,747 314,136 Movement analysis of risk weighted assets Counterparty Credit risk credit risk Market risk Operational risk Total RWAs Risk weighted assets £m £m £m £m £m As at 31 December 2021 189,945 37,673 44,771 41,747 314,136 Book size 15,371 (3,254) (9,707) 2,068 4,478 Acquisitions and disposals (1,187) — — — (1,187) Book quality (2,236) 1,320 — — (916) Model updates — — — — — Methodology and policy 2,961 2,952 — — 5,913 a Foreign exchange movement 9,019 3,305 1,770 — 14,094 Total RWA movements 23,928 4,323 (7,937) 2,068 22,382 As at 31 December 2022 213,873 41,996 36,834 43,815 336,518 Note a Foreign exchange movements does not include impact of foreign exchange for modelled market risk or operational risk. Overall RWAs increased £22.4bn to £336.5bn (December 2021: £314.1bn) Credit risk RWAs increased £23.9bn: • A £15.4bn increase in book size primarily driven by an increase in lending activities across CIB, CC&P and growth in mortgages within Barclays UK • A £1.2bn decrease in acquisitions and disposals primarily driven by the disposal of Barclays' equity stake in Absa, offset by Gap portfolio acquisition • A £2.2bn decrease in RWAs due to book quality primarily driven by the benefit in mortgages from an increase in the HPI, partially offset by movements in risk parameters primarily within Barclays UK • A £3.0bn increase in methodology and policy primarily as a result of regulatory changes relating to implementation of IRB roadmap changes, partially offset by the reversal of the software intangibles benefit • A £9.0bn increase in FX primarily due to appreciation of USD against GBP Counterparty Credit risk RWAs increased £4.3bn: • A £3.3bn decrease in book size primarily driven by derivative mark-to-market movements • A £1.3bn increase in RWAs due to book quality primarily driven by movements in risk parameters within CIB • A £3.0bn increase in methodology and policy as a result of regulatory changes relating to the introduction of SA-CCR • A £3.3bn increase in FX primarily due to appreciation of USD against GBP Market risk RWAs decreased £7.9bn: • A £9.7bn decrease in book size primarily driven by a £6.7bn in Stressed Value at Risk (SVaR) model adjustment as a result of changes in portfolio composition, a £2.3bn decrease due to client and trading activities and a £0.7bn reduction in Structural FX • A £1.8bn increase in FX primarily due to appreciation of USD against GBP

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 360 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Operational risk RWAs increased £2.1bn: • A £2.1bn increase in book size primarily driven by the inclusion of higher 2022 CIB income compared to 2019 Leverage ratios and exposures The Group is required to disclose a UK leverage ratio based on capital and exposure on the last day of the quarter. The Group is also required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter. b,c Leverage ratios a Restated 2022 2021 As at 31 December £m £m Average UK leverage ratio 4.8 % 4.9 % Average T1 capital 60,865 59,739 Average UK leverage exposure 1,280,972 1,229,041 UK leverage ratio 5.3 % 5.2 % CET1 capital 46,878 47,327 AT1 capital 13,224 12,179 T1 capital 60,102 59,506 UK leverage exposure 1,129,973 1,137,904 UK leverage exposure 2022 2021 As at 31 December £m £m Accounting assets Derivative financial instruments 302,380 262,572 Derivative cash collateral 69,048 58,177 Securities financing transactions (SFTs) 189,637 170,853 Loans and advances and other assets 952,634 892,683 Total IFRS assets 1,513,699 1,384,285 Regulatory consolidation adjustments (8,278) (3,665) Derivatives adjustments Derivatives netting (256,309) (236,881) Adjustments to collateral (52,715) (50,929) Net written credit protection 16,190 15,509 Potential future exposure (PFE) on derivatives 84,168 137,291 Total derivatives adjustments (208,666) (135,010) SFTs adjustments 24,203 24,544 Regulatory deductions and other adjustments (21,447) (20,219) Weighted off-balance sheet commitments 124,169 115,047 Qualifying central bank claims (272,321) (210,134) Settlement netting (21,386) (16,944) UK leverage exposure 1,129,973 1,137,904 Notes a Capital and leverage metrics as at 31 December 2021 have been restated to reflect the impact of the Over-issuance of Securities. See Impact of Over-issuance of Securities on page 356 for further details. b Fully loaded average UK leverage ratio was 4.7%, with £60.1bn of T1 capital and £1,280.2bn of leverage exposure. Fully loaded UK leverage ratio was 5.3%, with £59.4bn of T1 capital and £1,129.3bn of leverage exposure. Fully loaded UK leverage ratios are calculated without applying the transitional arrangements of the CRR as amended by CRR II. c Capital and leverage measures are calculated applying the transitional arrangements of the CRR as amended by CRR II.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 361 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) The UK leverage ratio increased to 5.3% (December 2021: 5.2%) primarily due to a £7.9bn decrease in the leverage exposure and a £0.6bn increase in Tier 1 capital. The UK leverage exposure decreased to £1,130.0bn (December 2021: £1,137.9bn) largely due to the following movements: • £53.1bn decrease in PFE on derivatives largely driven by increased netting eligibility due to the introduction of SA-CCR • £42.0bn decrease in cash at central banks net of the qualifying central bank claims exemption primarily due to the matching of allowable liabilities rather than deposits introduced under the UK leverage ratio framework and a decrease in Swiss Franc cash assets • £33.0bn increase in loans and advances and other assets (excluding cash and settlement balances which are subject to regulatory exemptions) primarily due to increased lending • £29.5bn increase in derivative financial instruments post additional regulatory netting and adjustments for cash collateral primarily driven by market volatility, increased activity in CIB and the application of a 1.4 multiplier introduced under SA-CCR • £18.4bn increase in SFTs primarily driven by increased reverse repurchase activity in CIB The average UK leverage ratio decreased to 4.8% (December 2021: 4.9%) due to a £51.9bn increase in average leverage exposure partially offset by a £1.1bn increase in average T1 capital. The average UK leverage exposure increased to £1,281.0bn (December 2021: £1,229.0bn) mainly driven by increased activity during the year that was partially offset by the impact of regulatory changes that came into effect from 1 January 2022 under the UK leverage ratio framework. Minimum requirement for own funds and eligible liabilities a,b,c,d MREL requirements including buffers Requirement (£m): Requirement (%): a a Restated Restated As at 31.12.2022 As at 31.12.2021 As at 31.12.2022 As at 31.12.2021 Requirement based on RWAs 97,387 77,302 28.9 % 24.6 % d Requirement based on UK leverage exposure 91,213 93,975 8.1 % 6.9 % a,c a Own funds and eligible liabilities Restated £m £m CET1 capital 46,878 47,327 e AT1 capital instruments and related share premium accounts 13,224 12,179 e T2 capital instruments and related share premium accounts 8,875 8,626 Eligible liabilities 43,851 39,889 Total Barclays PLC (the Parent company) own funds and eligible liabilities 112,828 108,021 Total RWAs 336,518 314,136 d Total UK leverage exposure 1,129,973 1,356,191 a Restated a Own funds and eligible liabilities ratios as a percentage of: As at 31.12.2022 As at 31.12.2021 Total RWAs 33.5 % 34.4 % d Total UK leverage exposure 10.0 % 8.0 % Notes a Opening balance as at 1 January 2022 has been restated to reflect the impact of the Over-issuance of Securities. See Impact of Over-issuance of Securities on page 356 for further details. b Minimum requirement excludes the confidential institution-specific PRA buffer. c CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II including IFRS 9 transitional arrangements. d As at 31 December 2021, MREL requirements were on a CRR leverage basis which, from 1 January 2022, was no longer applicable for UK banks. e Includes other AT1 capital regulatory adjustments and deductions of £60m (December 2021: £80m), and other T2 credit risk adjustments and deductions of £125m (December 2021: £87m). As at 31 December 2022, Barclays PLC (the Parent company) held £112.8bn of own funds and eligible liabilities equating to 33.5% of RWAs. This was in excess of the Group's MREL requirement, excluding the PRA buffer, to hold £97.4bn of own funds and eligible liabilities equating to 28.9% of RWAs. The Group remains above its MREL regulatory requirement including the PRA buffer.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 362 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Foreign exchange risk (audited) The Group is exposed to two sources of foreign exchange risk. a) Transactional foreign currency exposure Transactional foreign currency exposures represent exposure on banking assets and liabilities, denominated in currencies other than the functional currency of the transacting entity. The Group’s risk management policies are designed to prevent the holding of significant open positions in foreign currencies outside the trading portfolio managed by Barclays International which is monitored through VaR. Banking book transactional foreign exchange risk outside of Barclays International is monitored on a daily basis by the market risk function and minimised by the businesses. b) Translational foreign exchange exposure The Group’s investments in overseas subsidiaries and branches create capital resources denominated in foreign currencies, principally USD and EUR. Changes in the GBP value of the net investments due to foreign currency movements are captured in the currency translation reserve, resulting in a movement in CET1 capital. The Group’s strategy is to minimise the volatility of the capital ratios caused by foreign exchange movements, by matching the CET1 capital movements to the revaluation of the Group’s foreign currency RWA exposures. Functional currency of operations (audited) Structural Borrowings which Derivatives which currency Remaining Foreign currency hedge the net hedge the net exposures pre- structural currency net investments investments investments economic hedges Economic hedges exposures £m £m £m £m £m £m 31 December 2022 USD 27,441 (7,363) (2,086) 17,992 (8,688) 9,304 EUR 9,776 (5,461) (3) 4,312 (283) 4,029 JPY 689 — (197) 492 — 492 Other currencies 3,330 — (1,676) 1,654 (279) 1,375 Total 41,236 (12,824) (3,962) 24,450 (9,250) 15,200 31 December 2021 USD 25,958 (7,707) (2,356) 15,895 (7,389) 8,506 EUR 8,453 (3,408) (3) 5,042 (268) 4,774 JPY 614 (97) — 517 — 517 Other currencies 2,448 — (64) 2,384 — 2,384 Total 37,473 (11,212) (2,423) 23,838 (7,657) 16,181 Economic hedges relate to exposures arising on foreign currency denominated preference share and AT1 instruments. These are accounted for at historical cost under IFRS and do not qualify as hedges for accounting purposes. The gain or loss arising from changes in the GBP value of these instruments is recognised on redemption in retained earnings. During 2022, total structural currency exposure net of hedging instruments decreased by £1.0bn to £15.2bn (2021: £16.2bn). Foreign currency net investments increased by £3.7bn to £41.2bn (2021: £37.5bn) driven predominantly by a £1.5bn increase in USD, £1.3bn increase in EUR and £0.9bn increase in other currencies. The hedges associated with these investments increased by £3.2bn to £16.8bn (2021: £13.6bn). Pension risk review The UK Retirement Fund (UKRF) represents approximately 96% (2021: 97%) of the Group’s total retirement benefit obligations globally. As such this risk review section focuses exclusively on the UKRF. The UKRF is closed to new entrants and there is no new final salary benefit being accrued. Existing active members accrue a combination of a cash balance benefit and a defined contribution element. Pension risk arises as the market value of the pension fund assets may decline, investment returns may reduce or the estimated value of the pension liabilities may increase. Refer to the Management of pension risk section in the Barclays PLC Pillar 3 Report 2022 (unaudited) for more information on how pension risk is managed. Assets The Trustee Board of the UKRF defines its overall long-term investment strategy with investments across a broad range of asset classes. This results in an appropriate mix of return seeking assets as well as liability matching assets to better match future pension obligations. The two largest market risks within the asset portfolio are credit spread and growth assets. The split of scheme assets is shown within Note 33 to the financial statements. The fair value of the UKRF assets was £24.7bn as at 31 December 2022 (2021: £34.7bn). Liabilities The UKRF retirement benefit obligations are a series of future cash flows with relatively long duration. On an IAS 19 basis these cash flows are sensitive to changes in the expected long-term price inflation rate (RPI) and the discount rate (GBP AA corporate bond yield): • An increase in long-term expected inflation corresponds to an increase in liabilities;

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 363 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) • A decrease in the discount rate corresponds to an increase in liabilities. Pension risk is generated through the Group’s defined benefit schemes and this risk is set to reduce over time as the main defined benefit scheme is closed to new entrants. The chart below outlines the shape of the UKRF’s liability cash flow profile as at 31 December 2022 that takes account of the future inflation indexing of payments to beneficiaries. The majority of the cash flows (approximately 95%) fall between 0 and 40 years, peaking between 11 and 20 years and reducing thereafter. The shape may vary depending on changes to inflation and longevity expectations and any members who elect to transfer out. Transfers out will bring forward the liability cash flows. For more detail on the UKRF’s financial and demographic assumptions, see Note 33 to the financial statements. Proportion of liability cash flows Net IAS 19 position (%) (£bn) 6 0-10 years 28.6 n 11-20 years 31.4 n 4.63bn 5 21-30 years 23.2 n 3.82bn 31-40 years 12.1 n 4 41-50 years 4.3 n 3 51+ years 0.5 n 1.77bn 2 1 0 Dec Dec Dec 2020 2021 2022 The graph above shows the evolution of the UKRF’s net IAS 19 position over the last two years. During 2022 the increase in the IAS 19 pension surplus was primarily driven by scheduled deficit reduction contributions, including payments made to unwind Heron transactions. The significant increase in interest rates over 2022 has had a broadly neutral impact on the net funding position. Benefit obligation reductions due to higher discount rates have been broadly offset by the changes in the fair value of scheme assets. Higher realised inflation over the year had a negative impact by increasing the projected liabilities, which was partially offset by updates to the demographic assumptions. Refer to Note 33 to the financial statements for the sensitivity of the UKRF to changes in key assumptions. Risk measurement In line with Barclays’ risk management framework the assets and liabilities of the UKRF are modelled within a VaR framework to show the volatility of the pension position at a total portfolio level. This enables the risks, diversification and liability matching characteristics of the UKRF obligations and investments to be adequately captured. VaR is measured and monitored on a monthly basis. Risks are reviewed and reported regularly at forums including the Board Risk Committee, the Group Risk Committee and the Pension Executive Board. The VaR model takes into account the valuation of the liabilities on an IAS 19 basis (see Note 33 to the financial statements). The Trustee receives quarterly VaR measures on a funding basis. The pension liability is also sensitive to post-retirement mortality assumptions which are reviewed regularly (See Note 33 to the financial statements). To mitigate part of this risk the UKRF has entered into longevity swaps hedging approximately three quarters of current pensioner liabilities. In addition, the impact of pension risk to the Group is taken into account as part of the stress testing process. Stress testing is performed internally on at least an annual basis. The UKRF exposure is also included as part of regulatory stress tests. Barclays defined benefit pension schemes affects capital in two ways: • An IAS 19 deficit is treated as a liability on the Group’s balance sheet. Movement in a deficit due to remeasurements, including actuarial losses, are recognised immediately through Other Comprehensive Income and as such reduces shareholders’ equity and CET1 capital. An IAS 19 surplus is treated as an asset on the balance sheet and increases shareholders’ equity; however, it is deducted for the purposes of determining CET1 capital. • In the Group’s statutory balance sheet an IAS 19 surplus or deficit is partially offset by a deferred tax liability or asset respectively. These may or may not be recognised for calculating CET1 capital depending on the overall deferred tax position of the Group at the particular time. Pension risk is taken into account in the Pillar 2A capital assessment undertaken by the PRA at least annually. The Pillar 2A requirement forms part of the Group’s Overall Capital Requirement for CET1 capital, Tier 1 capital and total capital. More detail on minimum regulatory requirements can be found in the Overall capital requirements section.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 364 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Interest rate risk in the banking Summary of performance in the book period All disclosures in this section are unaudited • NII sensitivity to a -25bp rates shock has unless otherwise stated. decreased year on year due to the timing impact of customer rate changes Overview following the rate shock, combined with The treasury and capital risk framework changes in balance sheet composition. covers interest rate sensitive exposures Net interest income sensitivity held in the banking book, mostly relating to accrual accounted and FVOCI The table below shows a sensitivity instruments. The potential volatility of net analysis on pre-tax net interest income for interest income is measured by an Annual non-traded financial assets and liabilities, Earnings at Risk (AEaR) metric which is including the effect of any hedging. This monitored regularly and reported to senior analysis is not a forward guidance on NII management and the Barclays PLC Board and is intended as a quantification of risk Risk Committee as part of the limit exposure utilising the Net Interest Income monitoring framework. (NII) metric as described on page 162 of the Barclays PLC Pillar 3 Report 2022 For further detail on the interest rate risk in (unaudited), which includes the banking book governance and documentation of the main model framework refer to pages 160 to 162 of assumptions. the Barclays PLC Pillar 3 Report 2022 (unaudited). Key metrics AEaR -73m AEaR across the Group from a -25bps shock to forward interest rate curves. Net interest income sensitivity (AEaR) by business unit (audited) Barclays Barclays UK International Head Office Total As at 31 December £m £m £m £m 2022 15 25 (15) 25 +25bps -25bps (59) (29) 15 (73) 2021 +25bps (2) 68 5 71 -25bps (54) (99) (5) (158) Notes The Group’s customer banking book hedging activity is risk reducing from an NII sensitivity perspective. The hedges in place remove interest rate risk and smooth income over the medium term. The NII sensitivity for the Group at 31 December 2022 without hedging in place for +/-25bp rate shocks would be £233m/£(281)m respectively. NII sensitivity asymmetry is due to the timing impact of customer rate changes following the rate shock and also due to changes in the balance sheet composition. Reduction in overall NII sensitivity in both shock scenarios is due to the current rate levels removing the impact of embedded floors on product margins.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 365 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Treasury and Capital risk (continued) Net interest income sensitivity (AEaR) by currency (audited) 2022 2021 +25 basis points -25 basis points +25 basis points -25 basis points As at 31 December £m £m £m £m GBP (6) (40) 14 (85) USD 43 (45) 58 (62) EUR 3 (4) 5 (15) Other currencies (15) 16 (6) 4 Total 25 (73) 71 (158) Analysis of equity sensitivity Equity sensitivity measures the overall impact of a +/-25bps movement in interest rates on retained earnings, FVOCI, cash flow hedge reserves and pensions. For non-NII items a DV01 metric is used, which is an indicator of the shift in value for a 1bp movement in the yield curve. Analysis of equity sensitivity (audited) As at 31 December 2022 2021 +25 basis -25 basis +25 basis -25 basis points points points points £m £m £m £m Net interest income 25 (73) 71 (158) Taxation effects on the above (5) 15 (15) 33 Effect on profit for the year 20 (58) 56 (125) As percentage of net profit after tax 0.3% (1.0%) 0.8% (1.7%) Effect on profit for the year (per above) 20 (58) 56 (125) Fair value through other comprehensive income reserve (291) 302 (479) 408 Cash flow hedge reserve (774) 774 (859) 859 Taxation effects on the above 288 (291) 361 (342) Effect on equity (757) 727 (921) 800 As percentage of equity (1.1%) 1.0% (1.3%) 1.2% Movements in the FVOCI reserve impact CET1 capital. However, movements in the cash flow hedge reserve and pensions remeasurement reserve recognised in FVOCI do not affect CET1 capital. Volatility of the FVOCI portfolio in the liquidity pool Changes in value of FVOCI exposures flow directly through capital via the FVOCI reserve. The volatility of the value of the FVOCI investments in the liquidity pool is captured and managed through a value measure rather than an earning measure, i.e. non-traded market risk VaR. Although the underlying methodology to calculate the non-traded VaR is identical to the one used in traded management VaR, the two measures are not directly comparable. The non-traded VaR represents the volatility to capital driven by the FVOCI exposures. These exposures are in the banking book and do not meet the criteria for trading book treatment. Analysis of volatility of the FVOCI portfolio in the liquidity pool 2022 2021 Average High Low Average High Low For the year ended 31 December £m £m £m £m £m £m 48 62 35 51 62 34 Non-traded market value at risk (daily, 95%) Value at risk decreased in the first half of the year driven by a reduction in interest rate risk positioning. This was partially offset by an increase in H2 due to elevated market volatility.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 366 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Operational risk Operational risk All disclosures in this section are unaudited unless otherwise stated. Overview Key metrics Summary of performance in the Operational risks are inherent in the period a Group’s business activities and it is not During 2022, total operational risk losses 84% cost effective or possible to attempt to remained stable at £159m (2021: £163m) eliminate all operational risks. The of the Group’s net reportable operational while the number of recorded events for Operational Risk Framework is therefore risk events had a loss value of £50,000 or 2022 (2,965) increased from the level for focused on identifying operational risks, less 2021 (2,724). The total operational risk assessing them and managing them within losses for the year were mainly driven by the Group’s approved risk appetite. events falling within the Execution, Delivery 86% The Operational Risk principal risk & Process Management and External comprises the following risks: Change Fraud BASEL Event Type categories, which of events by number are due to External Delivery Management Risk; Data tend to be high volume but low impact Fraud Management Risk; Financial Reporting events. Risk; Fraud Risk; Information Security Risk; Operational risk profile Operational Recovery Planning Risk; 46% Within operational risk, there are a large Payments Process Risk; People Risk; of losses are from events aligned to number of smaller value risk events. In Physical Security Risk; Premises Risk; Risk External Fraud 2022, 84% (2021: 84%) of the Group’s Reporting; Supplier Risk; Tax Risk; reportable operational risk events by Technology Risk and Transaction volume had a value of less than £50,000 Operations Risk. The operational risk 53% each. Cumulatively, events under this profile is also informed by a number of £50,000 threshold accounted for only 31% of losses are from events aligned to connected risks: Cyber, Data, and (2021: 28%) of the Group’s total net Execution, Delivery and Process Resilience. These represent threats to the operational risk losses. A small proportion Management Group that extend across multiple risk of operational risk events have a material types, and therefore require an integrated impact on the financial results of the risk management approach. Group. For definitions of these risks refer to the Operational Risk section of the Barclays PLC Pillar 3 Report 2022. To provide complete coverage of the potential adverse impacts on the Group arising from operational risk, the operational risk taxonomy extends beyond the risks listed above to cover operational risks associated with other principal risks too. This section provides an analysis of the Group’s operational risk profile, including events above the Group’s reportable threshold, which have had a financial impact in 2022. The Group’s operational risk profile is informed by bottom-up risk assessments undertaken by each business unit and top-down qualitative review for each risk type. Fraud, Transaction Operations, Information Security and Technology continue to be highlighted as key operational risk exposures. For information on conduct risk events, see the conduct risk section.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 367 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Operational risk (continued) • External Fraud remains the category with The analysis below presents the Group’s operational risk events the highest frequency of events at 86% of by Basel event category: total events in 2022 (2021: 84%). Impacts from events arising from External Fraud Operational risk events by BASEL decreased in 2022 to £73m (2021: £82m) a event category and accounted for 46% of total 2022 losses (2021: 51%). In this category, high volume, low value events are driven by % of total risk events by count % of total risk events by value transactional fraud often related to debit and credit card usage. Internal fraud Internal fraud • Execution, Delivery and Process Management impacts increased to 2022 2022 0.7 0.2 £84m (2021: £77m) and accounted for 53% (2021: 47%) of total operational risk 2021 2021 0 0 losses. The events in this category are typical of the banking industry as a whole where high volumes of transactions are External fraud External fraud processed on a daily basis, mapping mainly to Barclays Transaction 2022 2022 85.6 45.9 Operations risk type. The overall 2021 2021 84.1 50.6 frequency of events in this category remained stable at 14% of total events by volume (2021: 14%). Execution delivery Execution delivery Investment continues to be made in and process management and process management improving the control environment across the Group. Particular areas of focus include 2022 2022 13.6 52.7 new and enhanced fraud prevention systems 2021 2021 14 47.2 and tools to combat the increasing level of fraud attempts being made whilst minimising disruption to genuine transactions. Fraud Employment practices Employment practices remains an industry wide threat and the and workplace safety and workplace safety Group continues to work closely with external partners on various prevention initiatives. 2022 2022 0.3 0.3 Operational Resilience remains a key area of 2021 2021 focus for the Group, having been reinforced 0.3 0.1 in recent years due to potential operational disruption from the COVID-19 pandemic. The Group continues to strengthen its Damage to physical assets Damage to physical assets resilience approach across its most 2022 2022 important business services to improve 0.1 0.2 recoverability and assurance thereof by 2021 2021 0 0 reviewing scenarios based on current global climates. Operational risk associated with Clients, products Clients, products cybersecurity remains a top focus for the and business practices and business practices Group. The sophistication of threat actors continues to grow as noted by multiple 2022 2022 0 0.1 external risk events observed throughout the 2021 2021 0.1 0.2 year. Ransomware attacks across the global Barclays supplier base were observed and we worked closely with the affected suppliers to Business disruption Business disruption and system manage potential impacts to the Group and and system failures failures its clients and customers. The Group’s cybersecurity events were managed within 2022 2022 0.3 0.2 its risk tolerances and there were no material 2021 2021 loss events associated with cybersecurity 1.5 1.9 recorded within the event categories above. For further information, refer to the operational risk management section. Note a The data disclosed includes operational risk losses for reportable events impacting the Barclays Bank UK Group business areas, having impact of > £10,000 and excludes events that are conduct or legal risk, aggregate and boundary events. A boundary event is an operational risk event that results in a credit risk impact. Due to the nature of risk events that keep evolving, prior year losses are updated.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 368 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Model risk, Conduct risk, Reputation risk and Legal risk Model risk, Conduct risk, Reputation risk and Legal risk All disclosures in this section are unaudited unless otherwise stated. Trading Entity conduct risk dashboards, Model risk Conduct risk setting out key indicators in relation to Barclays is committed to continuously Barclays is committed to continuing to conduct and risk, are provided to the improving model risk management and drive the right culture throughout all levels respective Board Risk Committees and made a number of enhancements in 2022, of the organisation. The Group will senior management. These continue to be evolved and enhanced to allow effective including: continue to enhance effective oversight and decision-making. Work is management of conduct risk and • Improved transparency and oversight of ongoing to enhance the Conduct Risk appropriately consider the relevant tools, models risk through implementation of Control Environment in a timely and governance and management information upgrades to model risk governance effective manner to ensure the Group in decision-making processes. Focus on structure. operates within Risk Appetite. The management of conduct risk is ongoing • Upgraded model risk standards to tolerance adherence is assessed by the and, alongside other relevant business and business areas through key indicators and improve readability, consistency and control management information, the reported to the relevant Trading Entity framework cohesiveness. Trading Entity conduct risk dashboard is a Board Committees as part of the conduct • Refreshed the model risk controls suite, key component of this. risk dashboard governance process. providing additional clarity on several The Group remains focused on the The Group continues to review the role controls and ensuring evidentiary continuous improvements being made to and impact of conduct risk events and requirements are aligned to MRM’s BAU manage risk effectively with an emphasis issues in remuneration decisions at both processes. on enhancing governance and the individual and business level. • Enhanced the Group Model Risk management information to identify risk at In 2022, the Group maintained focus on Appetite Statement, incorporating earlier stages. new and heightened inherent conduct model quality and uncertainty around a risks, including those relating to the cost of Reputation risk model’s output. living crisis, and continues to monitor Barclays is committed to identifying • Strengthened validation practices these on an ongoing basis. reputation risks and issues as early as through expansion of model-level Businesses have continued to assess the possible and managing them appropriately. validation procedures, implementation potential customer, client and market At a Group level throughout 2022, of an on-going validation training impacts of strategic change. As part of the reputation risks and issues were overseen program and embedment of a validation 2022 medium-term planning process, by the Board which reviews the processes quality assurance process. material conduct risks associated with and policies which Barclays identifies and • Executed on hiring strategy by strategic and financial plans were manages reputation risk. Within the expanding the model risk team to assessed. Barclays Bank UK Group and the Barclays support a wider range of model Bank Group reputation risks and issues Throughout 2022, conduct risks were validation demand and newly emerging were overseen by the respective risk and raised by each business area for model risks. Board risk committees. The top live and consideration by relevant Board level emerging reputation risks and issues within • Progressed model inception validation committees. These committees reviewed the Barclays Bank UK Group and the by bringing more than 95% of model risk the risks raised and whether Barclays Bank Group are included within an (by model output) into compliance with management’s proposed actions were over-arching quarterly report at the the model risk management framework. appropriate to mitigate the risks respective Board level. effectively. The Board reviewed risks escalated by the The Group continued to incur costs in businesses and considered whether relation to litigation and conduct matters, management’s proposed actions, for refer to Note 26 Legal, competition and example attaching conditions to proposed regulatory matters and Note 24 Provisions client transactions or increased for further details. Costs include customer engagement with impacted stakeholders, redress and remediation, as well as fines were appropriate to mitigate the risks and settlements. Resolution of these effectively. The Board also received regular matters remains a necessary and updates with regard to key reputation risks important part of delivering the Group’s and issues, including: Barclays' response to strategy and an ongoing commitment to the conflict in Ukraine; Barclays’ improve oversight of culture and conduct. association with sensitive sectors; access to banking; lending practices and the resilience of key Barclays systems and processes.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 369 report information sustainability report Governance review review statements Annual Report 2022 Risk performance - Model risk, Conduct risk, Reputation risk and Legal risk (continued) The Group continued to incur costs in Tolerances adherence is assessed Legal risk relation to litigation and conduct matters, through key indicators, which are also used The Group remains committed to refer to Note 26 Legal, competition and to evaluate the legal risk profile and are continuous improvements in managing regulatory matters and Note 24 Provisions reviewed, at least annually, through the legal risk effectively. At the end of 2022, for further details. Costs include customer relevant risk and control committees. enhancements were made to the Group- redress and remediation, as well as fines Mandatory controls to manage legal risks wide legal risk management framework and settlements. Resolution of these are set out in the legal risk standards and primarily relating to the Legal Function's matters remains an ongoing commitment are subject to ongoing monitoring. The responsibility for the identification of legal to improve oversight of culture and changes to the legal risk management risks and the escalation of legal risk as conduct and management of reputation framework referred to above are intended necessary. risks. to provide continuing improvements to Other improvements during 2022 included the effectiveness of the legal risk control As part of Barclays 2022 Medium Term a review and update of the supporting legal environment as they are implemented Planning process, material reputation risks risk policies, standards and mandatory through 2023. associated with strategic and financial training, reinforced by ongoing plans were also assessed. engagement with and education of the Group’s businesses and functions by Legal Function colleagues. Legal risk tolerances and legal risk appetite have also been reviewed.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 370 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation Barclays Capital Securities Limited is current indications, it is not expected to Supervision of the Group authorised and subject to prudential result in a materially different standard of The Group’s operations, including its regulation with respect to PRA and FCA supervision by the PRA as a PRA- overseas branches, subsidiaries and designated investment firm and subject to standards. The medium term outlook for associates, are subject to a large number conduct regulation and supervision by the the costs and impact of operating under of rules and regulations applicable to the FCA. Barclays Execution Services Limited the post-Brexit UK regime remains unclear conduct of banking and financial services is an appointed representative of Barclays until details of any changes are confirmed. business in each of the jurisdictions in There is potential for an increase in Bank PLC, Barclays Bank UK PLC and which the Group operates. These apply to Clydesdale Financial Services Limited. regulatory implementation costs in the business operations, impact financial near term to adapt systems and controls. The PRA’s supervision of the Group is returns and include capital, leverage and conducted through a variety of regulatory Both the PRA and the FCA have assessed liquidity requirements, authorisation, the impact of COVID-19 and Brexit on UK tools, including the collection of registration and reporting requirements, financial markets and customers as well as information by way of prudential returns or restrictions on certain activities, conduct the orderly transition away from LIBOR cross-firm reviews, reports obtained from of business regulations and many others. and have issued guidance for regulated skilled persons, regular supervisory visits to Regulatory developments impact the entities accordingly. In each case, the firms and regular meetings with Group globally. We focus particularly on guidance focussed on customer / client management and directors to discuss UK, US and EU regulation due to the outcomes and conduct risk, as well as issues such as strategy, governance, location of the Group’s principal areas of ensuring fair and orderly markets . financial resilience, operational resilience, business. Regulations elsewhere may also Supervision in the EU risk management, and recovery and have a significant impact on the Group due The Group’s operations in Europe are resolution. to the location of its branches, subsidiaries authorised and regulated by a combination Further, the BoE, as the UK resolution and, in some cases, clients. For more of its home regulators and host regulators authority, informs prudential requirements information on the risks related to the in the European countries where the and sets requirements for the Group supervision and regulation of the Group, Group operates. relating to resolution preparedness. including regulatory change, see the Barclays Bank Ireland PLC is licensed as a material existing and emerging risk entitled The FCA’s supervision of the UK firms in credit institution by the Central Bank of ‘Regulatory Change agenda and impact on the Group is carried out through a Ireland (CBI) and is designated as a Business Model’ in the Material existing and combination of proactive engagement, significant institution falling under direct emerging risks section. regular thematic work and project work supervision on a solo basis by the based on the FCA’s sector assessments, Supervision in the UK European Central Bank (ECB) for which analyse the different areas of the In the UK, day-to-day regulation and prudential purposes. Barclays Bank Ireland market and the risks that may lie ahead. supervision of the Group is divided PLC’s EU branches are supervised by the The FCA and the PRA also apply the Senior between the Prudential Regulation ECB and are also subject to direct Managers and Certification Regime (the Authority (PRA) (a division of the Bank of supervision for local conduct purposes by SMCR) which imposes a regulatory England (BoE)) and the Financial Conduct national supervisory authorities in the approval, individual accountability and Authority (FCA). In addition, the Financial jurisdictions where they are established. fitness and propriety framework in respect Policy Committee (FPC) of the BoE has Barclays Bank Ireland PLC is subject to the of senior or key individuals within relevant influence on the prudential requirements requirements set by the Single Resolution firms. that may be imposed on the banking Board (SRB) as the host resolution system through its powers of direction and authority of Barclays Bank Ireland PLC. FCA supervision has focused on conduct recommendation. Certain members of the Barclays Bank Ireland PLC is also subject to risk and customer/client outcomes, Group are also subject to regulatory supervision by the CBI as home state or including product design, customer initiatives undertaken by the UK Payment competent authority under various EU behaviour, market operations, fair pricing, Systems Regulator (PSR), as a participant financial services directives and affordability, access to cash, and fair in payment systems regulated by the PSR. regulations. treatment of vulnerable customers. Barclays Bank PLC and Barclays Bank UK The Group provides the majority of its PRA supervision has focused on financial PLC are authorised with permission to cross-border banking and investment resilience, credit risk management, Board accept deposits, amongst other things, services to EEA clients via Barclays Bank effectiveness, operational resilience, and subject to prudential supervision by Ireland PLC. Additionally, in certain EEA climate risk and resolvability, where the PRA and subject to conduct regulation Member States, Barclays Bank PLC and resolvability is reviewed in conjunction with and supervision by the FCA. The Barclays Barclays Capital Securities Limited (BCSL) the Resolution Directorate (a separate Bank Group is subject to prudential have cross-border licences to enable them division of the BoE). supervision on a solo-consolidated basis to continue to conduct a limited range of Both the PRA and the FCA apply standards and the Barclays Bank UK Group is subject activities, including accessing EEA trading that generally either anticipate or go to prudential supervision on a group venues and interdealer trading. Barclays beyond requirements established by global consolidated basis and on an individual Bank PLC also has a Paris branch (to or EU standards, whether in relation to basis. The Group is also subject to facilitate access to Target 2), which is capital, leverage and liquidity, resolvability prudential supervision by the PRA on a regulated by the ACPR. and resolution or matters of conduct. The group consolidated basis. Barclays PLC UK is in the process of reviewing and has been approved by the PRA as a revising the EU legislation that was financial holding company. onshored into English law following the UK's departure from the EU. This process is at a very early stage, but based on

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 371 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation (continued) Supervision in the US the Federal Deposit Insurance Corporation Prudential regulation (FDIC), the FRB and the Consumer Barclays PLC, Barclays Bank PLC and its Certain Basel III standards were Financial Protection Bureau (CFPB). The New York branch, and Barclays Bank PLC’s implemented in EU law through the Capital deposits of Barclays Bank Delaware are US subsidiaries are subject to a Requirements Regulation (CRR) and the insured by the FDIC, up to applicable limits. comprehensive regulatory framework Capital Requirements Directive IV (CRD Barclays PLC, Barclays Bank PLC, BUSHL, IV), as amended by CRR II and CRD V. involving numerous statutes, rules and BUSL, and BGUS are required to act as a regulations in the US. For example, the These standards were retained in the UK source of strength for Barclays Bank Group’s US activities and operations are regulatory framework via a series of Delaware. This could, among other things, subject to supervision and regulation by onshoring instruments as part of the UK’s require these entities to provide capital the Board of Governors of the Federal withdrawal from the European Union. support to Barclays Bank Delaware if it fails Beyond the minimum standards required Reserve System (FRB), as well as additional to meet applicable regulatory capital supervision, requirements and restrictions by CRR, the PRA has expected the Group, requirements. imposed by other federal and state in common with other major UK banks and regulators and self-regulatory building societies, to meet a 7% Common The Group’s US securities broker/dealer organisations (SROs). In some cases, US Equity Tier 1 (CET1) ratio at the level of the and investment banking operations are consolidated group since 1 January 2016. requirements may impose restrictions on conducted primarily through BCI, and are the Group’s global activities, in addition to The 7% CET1 ratio is made up of a Pillar 1 also subject to ongoing supervision and its activities in the US. minimum capital requirement of 4.5% regulation by the Securities and Exchange CET1 and a capital conservation buffer Commission (SEC), the Financial Industry Barclays PLC, Barclays Bank PLC, Barclays which must be met entirely with CET1 Regulatory Authority (FINRA) and other US Holdings Limited (BUSHL), Barclays US capital. government agencies and SROs under US LLC (BUSL), and Barclays Group US Inc. federal and state securities laws. BCI is also (BGUS) are regulated as bank holding Global systemically important banks (G- registered as a Futures Commission companies (BHCs) by the FRB. SIBs), such as the Barclays Group, are Merchant with the Commodity Futures subject to a number of additional BUSL is the Group’s ultimate US holding Trading Commission (CFTC), through prudential requirements, including the company that holds substantially all of the which the Group conducts its US futures requirement to hold additional loss- Group’s US subsidiaries (including Barclays and options on futures business, including absorbing capacity and additional capital Capital Inc. (BCI) and Barclays Bank client clearing operations, which are buffers above the level required by Basel III Delaware). BUSL is subject to subject to ongoing supervision and standards. The level of the G-SIB buffer is requirements in respect of capital regulation by the CFTC, the National set by the Financial Stability Board (FSB) adequacy, capital planning and stress Futures Association and other SROs. according to a bank’s systemic importance testing, risk management and governance, and can range from 1% to 3.5% of risk- Under the US framework for regulating liquidity, leverage limits, large exposure weighted assets (RWAs). The G-SIB buffer swaps and security-based swaps limits, activities restrictions and financial must be met with CET1. In November established under Title VII of the Dodd- regulatory reporting. Barclays Bank PLC’s 2022, the FSB published an update to its Frank Act, the CFTC has regulatory New York branch is also subject to list of G-SIBs, maintaining the 1.5% G-SIB authority over swaps, the SEC has enhanced prudential standards relating to, buffer that applies to the Group. regulatory authority over security-based among other things, liquidity and risk swaps, and the CFTC and SEC jointly management. The Group is also subject to a ‘combined regulate mixed swaps (as such terms are buffer requirement’ consisting of (i) a Barclays PLC, Barclays Bank PLC, BUSHL defined in the relevant legislation). capital conservation buffer of 2.5%, and (ii) and BUSL have financial holding company Accordingly, the Group’s activities related a countercyclical capital buffer (CCyB). The (FHC) status under the Bank Holding to US swaps and security-based swaps are CCyB is based on rates determined by the Company Act of 1956. FHC status allows principally conducted by Barclays Bank regulatory authorities in each jurisdiction in these entities to engage in a variety of PLC and are subject to ongoing which the Group maintains exposures. In financial and related activities, directly or supervision and regulation by the CFTC March 2020, the FPC cut the UK CCyB rate through subsidiaries, including and the SEC, respectively. Barclays Bank to 0% with immediate effect in order to underwriting, dealing and market making in PLC is provisionally registered as a swap support the supply of credit expected as a securities. Failure to maintain FHC status dealer with the CFTC and conditionally result of the COVID-19 pandemic. In could result in increasingly stringent registered as a Security-based swap dealer December 2021, the FPC raised the UK penalties and, ultimately, in the closure or with the SEC. Barclays Bank PLC is also CCyB to 1% with effect from 13 December cessation of certain operations in the US. subject to the FRB swaps rules with 2022. In July 2022, the FPC announced In addition to oversight by the FRB, respect to margin and capital that it would raise the UK CCyB rate to 2% Barclays Bank PLC’s New York branch and requirements. In addition, Barclays Bank with effect from 5 July 2023. many of the Group’s subsidiaries are Ireland PLC is provisionally registered as a The PRA requires UK firms to hold regulated by additional US authorities swap dealer with the CFTC and is subject additional capital to cover risks which the based on the location or activities of those to the FRB swaps rules with respect to PRA assesses are not fully captured by the entities. The New York branch of Barclays margin and capital. Pillar 1 capital requirement. The PRA sets Bank PLC is subject to supervision and Supervision in Asia Pacific this additional capital requirement (Pillar regulation by the New York State The Group’s operations in Asia Pacific are 2A) at least annually, derived from each Department of Financial Services supervised and regulated by a broad range firm’s individual capital guidance. Under (NYSDFS). Barclays Bank Delaware, a of national banking and financial services current PRA rules, the Pillar 2A must be Delaware chartered bank, is subject to regulators. met with at least 56.25% CET1 capital and supervision and regulation by the Delaware no more than 25% tier 2 capital. In addition, Office of the State Bank Commissioner,

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 372 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation (continued) the capital that firms use to meet their risk standard (SA-CCR) and rules on large Stress testing minimum requirements (Pillar 1 and Pillar exposures. As part of this policy The Group and certain of its members are 2A) cannot be counted towards meeting statement, the PRA also confirmed that it subject to supervisory stress testing the combined buffer requirement. would maintain its approach of requiring exercises in a number of jurisdictions, the deduction of software assets from designed to assess the resilience of banks The PRA may also impose a confidential capital. On 30 November 2022, the PRA to adverse economic or financial 'PRA buffer' to cover risks over a forward published consultation paper CP16/22 developments and ensure that they have looking planning horizon, including with concerning the implementation of the robust, forward-looking capital planning regard to firm-specific stresses or remaining Basel III standards, which include processes that account for the risks management and governance a revised standardised approach for credit associated with their business profile. weaknesses. If the PRA buffer is imposed risk, the elimination of modelled Assessment by regulators is on both a on a specific firm, it must be met approaches for certain credit risk exposure quantitative and qualitative basis, the latter separately to the combined buffer categories, a new standardised approach focusing on such elements as data requirement, and must be met fully with for operational risk, a new market risk provision, stress testing capability CET1 capital. approach and the implementation of an including model risk management and As part of its approach to ring fencing, the output floor requiring reported RWAs internal management processes and FPC established a framework to apply a calculated under standardised and controls. firm-specific systemic risk buffer (SRB) modelled approaches to be a minimum of Recovery and Resolution which could be set between 0% and 3% of 72.5% of fully standardised calculations. RWAs and which had to be met solely with Stabilisation and resolution framework The EU has also launched its legislative CET1 capital. The purpose of the SRB was The UK framework for recovery and process for implementing these remaining to increase the capacity of ring-fenced resolution was established by the Banking Basel III reforms. In October 2021, the FPC bodies, such as Barclays Bank UK PLC, to Act 2009, as amended. The EU framework and PRA published a policy statement absorb stress. The buffer rate applicable to was established by the 2014 Bank setting out changes to the leverage ratio the Group’s ring-fenced sub-group was Recovery and Resolution Directive (BRRD), framework, including applying the leverage set at 1% with effect from August 2019. as amended by BRRD II. ratio requirement on an individual basis and With the implementation of CRD V, the making sub-consolidation available as an The BoE, as the UK resolution authority, Other Systemically Important Institutions alternative to individual application where a has the power to resolve a UK financial Buffer (O-SII buffer) replaced the SRB. As firm has subsidiaries that can be institution that is failing or likely to fail by part of the implementation of CRD V, the consolidated, which apply from 1 January exercising certain stabilisation tools, PRA and FPC confirmed that the Barclays 2023. including (i) bail-in: the cancellation, Bank UK PLC O-SII buffer would be held at transfer or dilution of a relevant entities’ In the US, in October 2019, the FRB and the historic SRB rate of 1% until equity and write-down or conversion of other US regulatory agencies released final reassessment in December 2021. On 8 the claims of a relevant entities' unsecured rules to tailor the applicability of prudential October 2021, the PRA extended the O- creditors (including holders of capital requirements for large domestic US SII buffer rate of 1% for a further year, with instruments) and conversion of those banking organisations, foreign banking any future adjustment to the O-SII buffer claims into equity as necessary to restore organisations and their intermediate applicable from January 2024. In addition, solvency; (ii) the transfer of all or part of a holding companies (IHCs), including BUSL. in May 2022, the FPC decided to change relevant entities' business to a private BUSL is a “Category III” IHC. BUSL (and the metric used to determine O-SII buffer sector purchaser; and (iii) the transfer of all Barclays Bank Delaware) is therefore rates from total assets to the UK leverage or part of a relevant entities' business to a subject to reduced (calibrated at 85%) exposure measure and to recalibrate the “bridge bank” controlled by the BoE. When standardised liquidity requirements, thresholds used to determine O-SII buffer exercising any of its stabilisation powers, including the liquidity coverage ratio and rates to prevent an overall tightening or the BoE must generally provide that NSFR. loosening of the framework relative to its shareholders bear first losses, followed by pre-Covid level. The FPC determined that In June 2018 and October 2019, the FRB creditors in accordance with the priority of the average of firms’ quarter-end leverage finalised rules regarding single their claims in insolvency. exposure measure over the year will be counterparty credit limits (SCCL). The In order to enable the exercise of its SCCL apply to the largest US BHCs and used to determine O-SII buffer rates, stabilisation powers, the BoE may impose rather than the year-end value and that foreign banks’ (including the Group’s) US a temporary stay on the rights of creditors this change will only take effect after the operations. The SCCL creates two to terminate, accelerate or close out PRA’s December 2023 review. Thus, the separate limits for foreign banks, the first contracts, or override events of default or December 2023 review will be based on on combined US operations (CUSO) and termination rights that might otherwise be the second on the US IHC (BUSL). The end-2022 leverage exposure measure. invoked as a result of a resolution action Rates set in 2023 will apply from January SCCL for US BHCs, including BUSL, and modify contractual arrangements in 2025. In addition, Barclays Bank Ireland requires that exposure to an unaffiliated certain circumstances (including a PLC is identified as a O-SII by the CBI, who counterparty of BUSL not exceed 25% of variation of the terms of any securities). have imposed an O-SII buffer on Barclays BUSL’s tier 1 capital. With respect to the HM Treasury may also amend the law for CUSO, the SCCL rule allows certification to Bank Ireland PLC. the purpose of enabling it to use its powers the FRB that a foreign bank complies with In July 2021 and October 2021, the PRA, under this regime effectively, potentially comparable home country regulation. respectively, published a policy statement with retrospective effect. and confirmation, setting out its planned Barclays Bank PLC was not required to In addition, the BoE has the power, under implementation of certain Basel III comply with the CUSO requirement until 1 the Banking Act, to permanently write- January 2022, with the first certification standards, including the net stable funding down or convert into equity tier 1 capital ratio (NSFR), the new counterparty credit applicable for Q1 2022 results.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 373 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation (continued) instruments, tier 2 capital instruments and there are no shortcomings, deficiencies or structural and other information from internal eligible liabilities at the point of substantive impediments identified in the Barclays Bank Ireland PLC on a regular basis, as well as engaging with the bank to non-viability of an institution. Group’s resolution capabilities that could impede its ability to execute the preferred identify and address impediments to The BoE’s preferred approach for the resolution strategy. In future, should any resolution. This work is done in resolution of the Group is a bail-in strategy such issues be identified, the PRA/BoE coordination with the BoE, as the Group with a single point of entry at Barclays PLC. could exercise its various powers to direct resolution authority. Barclays Bank Ireland Under such a strategy, Barclays PLC’s PLC will need to meet the SRB’s the Group to address the relevant issues. subsidiaries would remain operational while requirements for resolution as set out in Barclays PLC’s capital instruments and While regulators in many jurisdictions have the SRB’s ‘Expectations for Banks’ eligible liabilities would be written down or indicated a preference for single point of document by 31 December 2023. converted to equity in order to recapitalise entry resolution for the Group, additional the Group and allow for the continued resolution or bankruptcy provisions may TLAC and MREL provision of services and operations apply to certain Group entities or The Group is under the supervision of the throughout the resolution. The order in branches. BoE, as the UK resolution authority, and is which the bail-in tool is applied reflects the subject to a Minimum Requirement for In the US, BUSL is subject to the Orderly hierarchy of capital instruments under UK own funds and Eligible Liabilities (MREL), Liquidation Authority established by Title II CRD IV and otherwise respecting the which includes a component reflecting the of the Dodd-Frank Act (DFA), a regime for hierarchy of claims in an ordinary FSB’s standards on total loss absorbency the orderly liquidation of systemically insolvency. Accordingly, the more capacity (TLAC). important financial institutions by the subordinated the claim, the more likely FDIC, as an alternative to proceedings The MREL requirements were fully losses will be suffered by owners of the under the US Bankruptcy Code. In addition, implemented by 1 January 2022, from claim. the licensing authorities of Barclays Bank which time G-SIBs with resolution entities PLC New York branch and of Barclays Bank The PRA has made rules that require incorporated in the UK are required to authorised firms to draw up recovery plans Delaware have the authority to take meet an MREL equivalent to the higher of: and resolution packs, as required by the possession of the business and property (i) two times the sum of their Pillar 1 and BRRD. Recovery plans are designed to of the applicable branch or entity they Pillar 2A requirements; or (ii) the higher of outline credible actions that authorised license and/or to revoke or suspend such two times their leverage ratio requirement licence. firms could implement in the event of or 6.75% of leverage exposures. Internal severe stress in order to restore their MREL for operating subsidiaries is subject In the US, Title I of the DFA, as amended, business to a stable and sustainable to a scalar in the 75-90% range of the and the implementing regulations issued condition. Removal of potential external requirement that would apply to by the FRB and the FDIC require each bank impediments to an orderly resolution of a the subsidiary if it were a resolution entity. holding company with assets of $250bn or banking group or one or more of its The starting point for the scalar is 90% for more, including those within the Group, to subsidiaries is considered as part of the ring-fenced bank sub-groups. prepare and submit a plan for the orderly BoE’s and PRA’s supervisory strategy for resolution of subsidiaries and operations in Barclays Bank Ireland PLC is subject to the each firm, and the PRA can require firms to the event of future material financial SRB’s MREL policy, as issued in June 2022, make significant changes in order to distress or failure. The Group submitted a in respect of the internal MREL that it will enhance resolvability. The submission of “targeted plan” in December 2021. The be required to issue to the Group. The resolution packs was suspended by the agencies did not identify any shortcomings SRB’s current calibration of internal MREL PRA in 2018 until further notice and or deficiencies with the Group’s 2021 US for non-resolution entities is expressed as replaced by annual EBA resolution Resolution Plan. The Group’s next two ratios that have to be met in parallel: reporting. The Group has provided the submission of the US Resolution Plan in (a) two times the sum of: (i) the firm’s Pillar PRA with a recovery plan annually, respect of its US operations will be a “full 1 requirement; and (ii) its Pillar 2 however, the PRA notified in October 2022 plan” due in 2024. requirement; and (b) two times the that it has moved submission to a biennial leverage ratio requirement. The SRB’s Barclays Bank Ireland PLC is required by submission cycle. The Barclays Group policy does not apply any scalar in respect the ECB to submit a standalone BRRD continues to maintain the recovery plan of the internal MREL requirement. Under compliant recovery plan on an annual annually. the SRB MREL policy, a bank specific basis. As a Significant Institution under Under the Resolvability Assessment adjustment can be applied by the SRB to direct ECB supervision, Barclays Bank Framework (RAF) firms are required to MREL requirements. Ireland PLC falls within the remit of the EU have in place capabilities covering three Single Resolution Board (SRB), as the In the US, the FRB’s TLAC rule includes resolvability outcomes: (i) adequate resolution authority for the Eurozone. provisions that require BUSL to have: (i) a financial resources; (ii) being able to Under the provisions of the BRRD and EU specified outstanding amount of eligible continue to do business through Single Resolution Mechanism Regulation long-term debt; (ii) a specified outstanding resolution and restructuring; and (iii) being (SRMR), the SRB is required to determine amount of TLAC (consisting of common able to communicate and co-ordinate the optimal resolution strategy for and preferred equity regulatory capital plus within the firm and with authorities. The Barclays Bank Ireland PLC and, also, to eligible long-term debt); and (iii) a specified first self-assessment report on these prepare a resolution plan for the bank. The common equity buffer. In addition, the capabilities was submitted by the Group to SRB undertakes this work within the FRB’s TLAC rule prohibits BUSL, for so the PRA/BoE in 2021 and public context of the BoE’s preferred resolution long as the Group’s overall resolution plan disclosures by both firms and the PRA/BoE strategy of single point of entry with bail in treats BUSL as a non-resolution entity, were made in June 2022 (and are required at Barclays PLC. In order to carry out its from issuing TLAC to entities other than every two years thereafter). The Bank of mandate, the SRB collects detailed those within the Group. England’s assessment concluded that

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 374 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation (continued) Bank Levy and FSCS Market infrastructure regulation of market participants with effect from 2022. Access to the clearing services of The BRRD established a requirement for In recent years, regulators as well as certain Central Clearing Counterparties EU member states to set up a pre-funded global-standard setting bodies such as the (CCPs) used by Group entities is currently resolution financing arrangement with International Organisation of Securities permitted under temporary equivalence funding equal to 1% of covered deposits Commissions (IOSCO) have focused on and recognition regimes and decisions in by 31 December 2024 to cover the costs improving transparency and reducing risk the UK and EU. If not extended or made of bank resolutions. The UK has in markets, particularly risks related to permanent, the EU’s equivalence decision implemented this requirement by way of a over-the-counter (OTC) derivative for UK Central Clearing Counterparties tax on the balance sheets of banks known transactions. This focus has resulted in a (CCPs), and exemption for certain as the ‘Bank Levy’. variety of new regulations across the G20 intragroup transactions from the EMIR countries and beyond that require or In addition, the UK has a statutory derivatives clearing and margin obligations, encourage on-venue trading, clearing, compensation fund called the Financial both due to expire at the end of June 2025, posting of margin and disclosure of pre- Services Compensation Scheme (FSCS), could also have operational and financial trade and post-trade information. which is funded by way of annual levies on impacts on the Group, as could the most authorised financial services firms. In particular, the Markets in Financial removal of temporary recognition of non- Instruments Directive and Markets in Structural reform UK CCPs by the UK. EMIR is currently Financial Instruments Regulation In the UK, the Financial Services (Banking undergoing a review process in the EU (collectively referred to as MiFID II) have Reform) Act 2013 put in place a framework which may result in changes to the affected many of the markets in which the for ring-fencing certain operations of large intragroup transactions exemption, Group operates, the instruments in which banks. Ring-fencing requires, among other potentially making it easier to rely on. it trades and the way it transacts with things, the separation of the retail and However, the review is in its very early market counterparties and other smaller deposit-taking business activities stages so it is not yet certain what changes customers. MiFID II is currently undergoing of UK banks into a legally distinct, may result from it. a review process in both the EU and the operationally separate and economically US regulators have imposed similar rules UK, including as part of the EU’s ongoing independent entity, which is not permitted as the EU with respect to the mandatory focus on the development of a stronger to undertake a range of activities. This on-venue trading and clearing of certain Capital Markets Union and the UK’s regime was independently reviewed in derivatives, and post-trade transparency, Wholesale Markets Review. 2021, with the final report published in as well as in relation to the margining of Regulation of benchmarks March 2022. The review recommended OTC derivatives. US regulators have that HM Treasury should review the The EU and UK Benchmarks Regulation finalised certain aspects of their rules with practicalities of aligning the ring-fencing apply to the administration, contribution respect to their application on a cross- and resolution regimes, amongst other and use of benchmarks within the EU and border basis, including with respect to their things, and the government has stated the UK, respectively. Financial institutions registration requirements in relation to within the EU or the UK, as applicable, are that it intends to issue a public call for non-US swap dealers and security-based evidence on this issue in the first quarter of prohibited from using benchmarks unless swap dealers. The regulators may adopt 2023 and to consult on reforms to the their administrators are authorised, further rules, or provide further guidance, ring-fencing regime in mid 2023 in line with registered or otherwise recognised in the regarding cross-border applicability. In the recommendations in the independent EU or the UK, respectively. The FCA has December 2017, the CFTC and the also been working to phase out use of review. European Commission recognised the LIBOR, with GBP LIBOR ceasing to be US regulation places further substantive trading venues of each other’s jurisdiction published in its original form from the end limits on the activities that may be to allow market participants to comply with of 2021 and synthetic versions of GBP conducted by banks and holding mandatory on-venue trading LIBOR being made available only for a companies, including foreign banking requirements while trading on certain limited period of time. Similarly, USD LIBOR organisations such as the Group. The venues recognised by the other will cease to be published in its current ‘Volcker Rule’, which was part of the DFA jurisdiction. In December 2022, the CFTC form in June 2023 and other LIBOR and and which came into effect in the US in extended temporary relief that would IBOR rates are also being wound down. 2015, prohibits banking entities from permit trading venues and market Global regulators in conjunction with the undertaking certain proprietary trading participants located in the UK to continue industry have developed and are activities and limits such entities’ ability to to rely on this mutual recognition continuing to develop alternative sponsor or invest in certain private equity framework following the withdrawal of the benchmarks and risk-free rate fallback funds and hedge funds (in each case UK from the EU. arrangements, including updates to broadly defined). As required by the rule, Certain participants in US swap markets existing, as well as new, applicable the Group has developed and are required to register with the CFTC as legislation. implemented an extensive compliance and ‘swap dealers’ or ‘major swap participants’ monitoring programme addressing Regulation of the derivatives market and/or, with the SEC as ‘security-based proprietary trading and covered fund The European Market Infrastructure swap dealers’ or ‘major security-based activities (both inside and outside of the Regulation (EMIR) has introduced swap participants’. Such registrants are US). requirements designed to improve subject to CFTC and/or SEC regulation transparency and reduce the risks and oversight. Entities required to register associated with the derivatives market. as swap dealers and/or security-based EMIR has operational and financial impacts swap dealers are subject to business on the Group, including by imposing new conduct, record-keeping and reporting collateral requirements on a broader range requirements under either or both CFTC

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 375 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation (continued) and SEC rules. Barclays Bank PLC is also Many of the regulations under the CFTC matching service providers; (ii) a proposed subject to regulation by the FRB, and is and SEC regimes are similar in scope of rule that would mandate central clearing of many US Treasury securities transactions both provisionally registered with the application. The rules of both the SEC and CFTC as a swap dealer and conditionally the CFTC are roughly divided into and would amend the broker-dealer registered with the SEC as a security- “transaction-level rules” and “entity-level customer protection rule as it applies to based swap dealer. In addition, Barclays rules”. Transaction-level rules apply only in margin posted for transactions in US Bank Ireland PLC is provisionally registered circumstances in which at least one of the Treasury securities, which could impose additional costs on the Group’s Treasury as a Swap Dealer with the CFTC. parties to the swap or security-based swap transaction has sufficient nexus to the securities trading activity; and (iii) a series Accordingly, Barclays Bank PLC and United States. Entity-level rules apply to of market structure proposals which would Barclays Bank Ireland PLC are subject to swap dealers or security-based swap have a significant impact on securities CFTC rules on business conduct, record- dealers across all their swap or security- trading activity by BCI and other Group keeping and reporting and to FRB rules on entities, as the SEC proposals would (a) based swaps without distinction as to the capital and margin. The CFTC has counterparty or location of the impose a new SEC best execution approved certain comparability transaction. Unlike the CFTC, certain SEC obligation on securities broker-dealers, determinations that permit substituted rules apply to transactions entered into by including BCI, (b) require that certain compliance with non-US regulatory non-US security-based swap dealers individual investor orders be exposed to regimes for certain swap regulations. auctions before they could be executed based on the location from which certain Substituted compliance is a recognition activities are undertaken. These SEC rules internally by certain trading centres, and (c) program whereby compliance with a apply to security-based swap transactions amend certain rules under Regulation NMS comparable regulatory requirement of a facing non-US person counterparties that (National Market System) to adopt variable foreign jurisdiction is deemed to serve as a are “arranged, negotiated or executed” by minimum pricing increments, reduce substitute for compliance with comparable US-based security-based swap dealer access fee caps for protected quotations, requirements of the U.S. Commodity personnel. This distinction expands the require that the amount of exchange fees Exchange Act and the CFTC’s regulations. scope and impact of the SEC regime to and rebates be determinable at the time of Substituted compliance has been granted transactions with a greater number of execution, and update and expand to only in respect of certain requirements non-US counterparties. certain broker-dealers the disclosures promulgated by regulatory authorities in required for order executions in NMS As noted above, Barclays Bank PLC and certain identified jurisdictions that the stocks, among other changes. CFTC believes are sufficiently comparable Barclays Bank Ireland PLC are subject to to its own requirements. Substituted FRB rules on capital and margin. Other regulation compliance was granted in respect of Consumer protection, culture, and In 2022, the SEC proposed Rule 10B-1 that certain European Union requirements in diversity and inclusion would require any person with a security- December 2013. In December 2022, the based swap position (aggregated across all In May 2021, the FCA published a CFTC extended temporary relief that affiliated persons) that exceeds any of the consultation paper proposing the would permit swap dealers located in the thresholds specified by the SEC to imposition of a new consumer duty on UK to continue to rely on existing CFTC promptly report certain information by the firms. The duty looks to set higher substituted compliance determinations next business day, including the identity of expectations for the standard of care that with respect to EU requirements in the the reporting person and the security- firms provide to customers and will impact event of a withdrawal of the UK from the based swap position, as well as the all aspects of Barclays' retail businesses, EU. Barclays Bank PLC and Barclays Bank ownership of securities positions related including every customer journey, product Ireland PLC rely upon the CFTC’s grant of to the security-based swap position. Such and service as well as our relationships with substituted compliance as a means to reports would be available publicly. If partners, suppliers and third parties. This comply with certain swap dealer adopted as proposed, this rule could will result in significant implementation requirements. increase the burden and cost to Barclays costs and there will also be higher ongoing Barclays Bank PLC conditionally registered Bank PLC of utilising security-based costs for the industry as a result of as a security-based swap dealer with the swaps. extensive monitoring and evidential SEC as of 1 November 2021. As a requirements. Final rules were published in Other regulatory developments in the registered security-based swap dealer, July 2022 and will come into force on 31 US Barclays Bank PLC is subject to SEC July 2023 for new and existing products or The SEC has also put forth a number of business conduct, recordkeeping and services that are open to sale or renewal, other recent proposals that, if adopted, reporting rules similar to the CFTC rules and on 31 July 2024 for closed products or could have a significant impact on the noted above. Like the CFTC, the SEC services. Group’s business and operations, approved certain comparability Our regulators have enhanced their focus including: (i) proposed amendments to determinations that permit conditional on the promotion of cultural values as a Exchange Act Rule 15c6-1 that would substituted compliance with non-US key area for banks, although they generally shorten the standard settlement cycle for regulatory regimes for certain security- view the responsibility for reforming most broker-dealer transactions in based swap regulations. Due to the culture as primarily sitting with the securities from two business days after the imposition by the SEC of more stringent industry. The UK regulators have also trade (T+2) to one business day after the requirements on which its grant of begun focusing on diversity and inclusion in trade (T+1), which could require significant substituted compliance is conditioned, financial services firms, with the Bank of changes to BCI’s settlement procedures Barclays Bank PLC is relying on substituted England, PRA and FCA having published a and practices, and new Exchange Act Rule compliance only with respect to a limited joint discussion paper and the FCA having 15c6-2 which would generally require number of SEC security-based swap published a policy statement on this topic market-wide improvements in the rate of dealer rules. in April 2022. same-day affirmations and on central

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 376 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation (continued) Data protection In the US, Barclays Bank Delaware is recent years and the growing reliance of subject to the US Federal Gramm-Leach- financial services on Cloud and other third Most countries where the Group operates party service providers. This is evidenced Bliley Act (GLBA) and the California Privacy have comprehensive laws requiring Rights Act of 2020, which amended the by the continuing introduction of new laws openness and transparency about the California Consumer Privacy Act of 2018 and regulatory frameworks directed at collection and use of personal information, and came into effect on 1 January 2023 enhancing resilience of both firms and and protection against loss and (CPRA). The GLBA limits the use and their critical third party providers. A new UK unauthorised or improper access. framework introduced last year requires disclosure of non-public personal Regulations regarding data protection are information to non-affiliated third parties, firms to be able to remain within impact increasing in number, as well as levels of and requires financial institutions to tolerances set for their important business enforcement, as manifested in increased provide written notice of their privacy services by no later than 31 March 2025, amounts of fines and the severity of other policies and practices and implement with further legislation focusing on the penalties. We expect that personal privacy resilience of critical third party providers certain information security policies and and data protection will continue to receive practices. Any violations of the GLBA could now in the pipeline. The European Union’s attention and focus from regulators, as subject Barclays Bank Delaware to Digital Operational Resilience Act (DORA) well as public scrutiny and attention. additional reporting requirements or entered into force in January 2023 and will The EU’s General Data Protection regulatory investigation or audits by the apply in early 2025 (after a two-year Regulation (GDPR) created a broadly implementation period), introducing financial regulators. More broadly, the harmonised privacy regime across EU Group's US operations are subject to the comprehensive and sector specific member states, introducing mandatory CPRA which applies to personal regulation on Information Communication breach notification, enhanced individual information that is not collected, Technologies( ICT) incident reporting, rights, a need to openly demonstrate processed, sold or disclosed subject to the testing and third party risk management, compliance, and significant penalties for and providing for direct oversight of critical GLBA. The CPRA requires applicable breaches. The extraterritorial effect of the members of the Group to both provide third party providers servicing the EU GDPR means entities established outside California residents with additional financial services sector. The existing and the EU may fall within the Regulation’s disclosures regarding the collection, use anticipated requirements for increased ambit when offering goods or services to and sharing of personal information and controls will serve to improve industry European based customers or clients. grant California residents access, deletion, standardisation and resilience capabilities, Following the UK’s withdrawal from the EU, correction and other rights, including the enhancing our ability to deliver services the UK continues to apply the GDPR right to opt-out of certain sales or during periods of potential disruption. framework (as onshored into UK law and transfers of personal information and the However, such measures are likely to hence now referred to as the ‘UK GDPR’ - right to limit the processing of sensitive result in increased technology and this sits alongside an amended version of personal information to certain purposes. compliance costs for the Group. the UK Data Protection Act 2018). Any violations of the CPRA may be subject In 2022, the SEC published proposed Following the invalidation by the European to enforcement by the California Privacy disclosure rules and amendments Court of Justice (CJEU) of the EU-US Protection Agency and the California regarding cybersecurity risk management, Privacy Shield as a mechanism for Attorney General and the imposition of governance and incident reporting by US- transferring EU personal data to the US, monetary penalties, as well as potential listed companies, including foreign private the European Commission published new lawsuits arising from the private right of issuers such as Barclays PLC and Barclays standard contractual clauses (SCCs) in action provided to California residents in Bank PLC. Also in 2022, NYDFS both 2021 to meet the requirements of GDPR the case of certain data breaches. Bills increased enforcement of and published and the CJEU decision, known as Schrems proposed in the United States Congress proposed amendments to its main II. In early 2022, the UK Information and in the legislatures of various US states, cybersecurity regulation applying to the Commissioner set out its own if enacted, may have further impact on the New York Branch of Barclays Bank PLC. international data transfer agreement, and data privacy practices of Barclays’ US Final versions of the SEC proposed the international data transfer addendum operations. In addition, all 50 states have disclosure rules and NYDFS proposed to the European Commission’s SCCs for laws including obligations to provide amendments are expected in 2023. international data transfers. Implementing notification of security breaches of the new EU SCCs and/or the UK Regulatory initiatives on ESG disclosure computer databases that contain personal addendum, which involve case-by-case The EU Regulation on Sustainability- information to affected individuals, state transfer impact assessments and other Related Disclosures introduces disclosure officers and others. safeguards, is likely to result in increased obligations requiring financial institutions Cybersecurity and operational resilience compliance costs for the Group. In 2021, to explain how they integrate China adopted its first comprehensive law Regulators globally continue to focus on environmental, social and governance in relation to personal information called cybersecurity risk management, factors in their investment decisions for the Personal Information Protection Law organisational operational resilience and certain financial products. In addition, the overall soundness across all financial (PIPL). The PIPL applies to processing EU Taxonomy Regulation provides for a activities within mainland China, but similar services firms, with customer and market general framework for the development of to the GDPR, the PIPL has extraterritorial expectations of uninterrupted access to an EU-wide classification system for reach. As the global data protection financial services remaining at an all-time environmentally sustainable economic regulatory landscape develops, high. activities. The EU Corporate Sustainability noncompliance with any such The regulatory focus has been further Reporting Directive will introduce requirements could lead to regulatory heightened by the increasing number of sustainability related reporting obligations fines and other penalties. high-profile ransomware and other supply for various entities including EU banks and chain attacks seen across the industry in certain listed companies, with reporting to

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 377 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation (continued) commence on a phased basis from the In March 2022, the SEC proposed climate The Sanctions and Anti-Money Laundering financial year 2024. Draft sustainability related-disclosure requirements for US- Act (the Sanctions Act) became law in the UK in 2018. The Sanctions Act allows for reporting standards are being developed listed companies (which would include by the European Financial Reporting Barclays PLC and Barclays Bank PLC) that the adoption of an autonomous UK Advisory Group. would, among other things, require sanctions regime, as well as a more flexible disclosure of direct and indirect licensing regime post-Brexit. On 6 July From June 2022, the EU’s Capital greenhouse gas emissions, with certain 2020, the UK Government announced the Requirements Regulation requires certain first sanctions that have been emissions disclosures subject to third- large financial institutions to disclose party attestation requirements; climate- implemented independently by the UK information on environmental, social and related scenario analysis (if the issuer outside the auspices of the UN and EU. governance risks, including physical risks conducts scenario analysis), together with The autonomous UK sanctions regime and transition risks. qualitative and quantitative information came into force on 1 January 2021. The The EU has also proposed a Directive on sanctions apply within the UK and in about the hypothetical future climate Corporate Sustainability Due Diligence scenarios used in its analysis; climate relation to the conduct of all UK persons which, if adopted, would require EU firms, transition plans or climate-related targets wherever they are in the world; they also including financial institutions, to carry out or goals, along with disclosure of progress apply to overseas branches of UK due diligence on companies in their value against any such plans, targets or goals; companies (including the Barclays Bank chain and identify and prevent, bring to an PLC New York branch). climate-related risks over the short-, end or mitigate the impact of their medium- and long-term; qualitative and In the US, the Bank Secrecy Act, the USA activities on human rights and the quantitative information regarding PATRIOT Act 2001, the Anti-Money environment. climate-related risks and historical impacts Laundering Act of 2020 and regulations In the UK, the UK Government has in audited financial statements; corporate thereunder contain numerous anti-money confirmed its intention to develop a UK governance of climate-related risks; and laundering and anti-terrorist financing Green Taxonomy, and the Green climate-related risk-management requirements for financial institutions. In Technical Advisory Group has published processes. addition, the Group is subject to the US advice on development of a Green Sanctions and financial crime Foreign Corrupt Practices Act, which Taxonomy with further advice expected to prohibits, among other things, corrupt The UK Bribery Act 2010 introduced a new follow. Reporting against the Taxonomy payments to foreign government officials. form of corporate criminal liability focused will form part of the UK’s new Sustainability It is also subject to various economic broadly on a company’s failure to prevent Disclosure Requirements (SDR). Certain sanctions laws, regulations and executive bribery on its behalf. The Criminal Finances companies will be required to disclose orders administered by the US Act 2017 introduced new corporate which portion of their activities are government, which prohibit or restrict criminal offences of failing to prevent the Taxonomy-aligned. The structure of the some or all business activities and other facilitation of UK and overseas tax evasion. Taxonomy draws on the EU approach and dealings with or involving certain Both pieces of legislation have broad has six environmental objectives (climate individuals, entities, groups, countries and application and in certain circumstances change mitigation, climate change territories. may have extraterritorial impact on adaptation, sustainable use and protection entities, persons or activities located In some cases, US state and federal of water and marine resources, transition outside the UK, including Barclays PLC’s regulations addressing sanctions, money to a circular economy, pollution prevention subsidiaries outside the UK. The UK Bribery laundering and other financial crimes may and control and protection and restoration Act requires the Group to have adequate impact entities, persons or activities of biodiversity). The UK regulators are also procedures to prevent bribery which, due located or undertaken outside the US, consulting on a new SDR Framework for to the extraterritorial nature of the Act, including Barclays PLC and its subsidiaries. firms as well as investment product makes this both complex and costly. US government authorities have disclosures, including a new sustainable Additionally, the Criminal Finances Act aggressively enforced these laws against investment labelling regime. Additionally, requires the Group to have reasonable financial institutions in recent years. TCFD-aligned reporting requirements now prevention procedures in place to prevent apply to UK publicly quoted companies, As a result of the conflict in Ukraine, there the criminal facilitation of tax evasion by large private companies and LLPs with has been an increased regulatory focus on persons acting for, or on behalf of, the sanctions compliance in various financial years starting on or after 6 April Group. 2022 (in addition to existing TCFD-related jurisdictions, including in the US, UK and reporting requirements under the Listing EU. Rules). Failure of a financial institution to ensure compliance with such laws could have serious legal, financial and reputational consequences for the institution.

Financial review A review of the Group’s performance, including the key performance indicators, and the contribution of each of our businesses to the overall performance of the Group. Key performance indicators 379 Consolidated summary income statement 381 Income statement commentary 382 Consolidated summary balance sheet 383 Balance sheet commentary 384 Analysis of results by business 385 Non-IFRS performance measures 392

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 379 report information sustainability report Governance review review statements Annual Report 2022 Key performance indicators In assessing the financial performance of the Group, management uses a range of KPIs which focus on the Group’s financial strength, the delivery of sustainable returns and cost management. Barclays continues to target return on tangible equity ( RoTE) of greater than 10% over the medium-term. Cost discipline remains a priority and management continues to target a cost: income ratio below 60%. Non-IFRS performance measures The Group’s management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the non-IFRS performance measures section for further information and calculations of non-IFRS performance measures included throughout this section and the most directly comparable IFRS measures. Definition Why is it important and how the Group performed a CET1 ratio The Group’s capital management objective is to maximise Common Equity Tier 1 (CET1) shareholder value by prudently managing the level and mix of ratio its capital to: ensure the Group and all of its subsidiaries are 13.9% Capital requirements are part of the appropriately capitalised relative to their regulatory minimum regulatory framework governing how banks 2021: 15.1% and stressed capital requirements, support the Group’s risk and depository institutions are supervised. 2020: 15.1% appetite, growth and strategic options, while seeking to Capital ratios express a bank’s capital as a maintain a robust credit proposition for the Group and its percentage of its Risk Weighted Assets subsidiaries. (RWAs) as defined by the PRA. The CET1 ratio decreased to 13.9% (2021: 15.1%) as £5.0bn CET1 ratio is a measure of capital as of attributable profit was offset by returns to shareholders, defined within the Definition of Capital impacts of regulatory change from 1 January 2022, pension section of the PRA's Prudential and deficit contribution payments and decreases in the fair value of Resolution Policy - Banking Index. the bond portfolio through other comprehensive income and other capital deductions. Increases in RWAs, largely as a result of foreign exchange movements, were broadly offset by an increase in the currency translation reserve within CET1. Group target: a CET1 ratio in the range of 13-14%. a This measure indicates the return generated by the Group RoTE Return on average tangible management of the business based on ordinary shareholders’ equity shareholders’ tangible equity. Achieving a target RoTE 10.4% RoTE is calculated as profit after tax demonstrates the organisation’s ability to execute its attributable to ordinary shareholders, as a 2021: 13.1% strategy and align management’s interests with the proportion of average shareholders’ equity 2020: 3.2% shareholders’. RoTE lies at the heart of the Group’s capital excluding non-controlling interests and allocation and performance management process. other equity instruments adjusted for the RoTE was 10.4% (2021: 13.1%) from the normalisation of deduction of intangible assets and goodwill. credit impairment charges and higher litigation and conduct costs, partially offset by income growth across all operating divisions. Group target: RoTE of greater than 10%.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 380 report information sustainability report Governance review review statements Annual Report 2022 Key performance indicators (continued) Definition Why is it important and how the Group performed a Barclays views total operating expenses as a key strategic Total operating expenses Total operating expenses area for banks; those who actively manage costs and control them effectively will gain a strong competitive £16.7bn advantage. 2021: £14.7bn Group operating expenses increased to £16.7bn (2021: 2020: £13.9bn £14.7bn) mainly due to higher litigation and conduct charges: Group operating expenses excluding litigation and conduct increased 6% to £15.1bn, reflecting the impact of inflation and the appreciation of average USD against GBP. Litigation and conduct charges were £1.6bn (2021: £0.4bn) including £1.0bn impact from the Over-issuance of b Securities in the US (Over-issuance of Securities) . a This is a measure management uses to assess the Cost: income ratio Cost: income ratio productivity of the business operations. Managing the cost Total operating expenses divided by total base is a key execution priority for management and 67% income. includes a review of all categories of discretionary spending 2021: 67% and an analysis of how we can run the business to ensure 2020: 64% that costs increase at a slower rate than income. The Group cost: income ratio was 67% (2021: 67%), as increased income was offset by higher litigation and conduct charges, primarily from the Over-issuance of Securities. Group target: a cost: income ratio below 60%. Notes a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. b Denotes the Over-issuance of Securities under Barclays Bank PLC’s (BBPLC) US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 381 report information sustainability report Governance review review statements Annual Report 2022 Consolidated summary income statement a Restated 2022 2021 2020 2019 2018 For the year ended 31 December £m £m £m £m £m Interest income 19,096 11,240 11,892 15,456 14,541 Interest expense (8,524) (3,167) (3,770) (6,049) (5,479) Net interest income 10,572 8,073 8,122 9,407 9,062 Fee and commission income 9,637 9,880 8,641 9,122 8,893 Fee and commission expense (3,038) (2,206) (2,070) (2,362) (2,084) Net fee and commission income 6,599 7,674 6,571 6,760 6,809 Other income 7,785 6,193 7,073 5,465 5,265 Total income 24,956 21,940 21,766 21,632 21,136 Operating costs (14,957) (14,092) (13,434) (13,359) (13,627) UK bank levy (176) (170) (299) (226) (269) b GMP charge — — — — (140) Litigation and conduct (1,597) (397) (153) (1,849) (2,207) Total operating expenses (16,730) (14,659) (13,886) (15,434) (16,243) Other net income 6 260 23 71 69 Profit before impairment 8,232 7,541 7,903 6,269 4,962 Credit impairment (charges)/releases (1,220) 653 (4,838) (1,912) (1,468) Profit before tax 7,012 8,194 3,065 4,357 3,494 Tax charge (1,039) (1,138) (604) (1,003) (911) Profit after tax 5,973 7,056 2,461 3,354 2,583 Non-controlling interests (45) (47) (78) (80) (234) Other equity instrument holders (905) (804) (857) (813) (752) Attributable profit 5,023 6,205 1,526 2,461 1,597 Selected financial statistics Basic earnings per share 30.8p 36.5p 8.8p 14.3p 9.4p Diluted earnings per share 29.8p 35.6p 8.6p 14.1p 9.2p Return on average tangible shareholders’ equity 10.4% 13.1% 3.2% 5.3% 3.6% Cost: income ratio 67% 67% 64% 71% 77% Notes a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. b Guaranteed minimum pensions (GMP) The financial information above is extracted from the published accounts. This information should be read together with the information included in the accompanying consolidated financial statements.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 382 report information sustainability report Governance review review statements Annual Report 2022 Income statement commentary a 2022 compared to 2021 Barclays delivered a profit before tax of £7,012m (2021: £8,194m), RoTE of 10.4% (2021: 13.1%) and earnings per share (EPS) of 30.8p (2021: 36.5p). The Group has a diverse income profile across businesses and geographies including a significant presence in the US. The 10% appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges and total operating expenses. Group income increased to £24,956m (2021: £21,940m). Excluding the income benefit of £292m relating to hedging arrangements to manage the risks of the rescission offer in relation to the Over-issuance of Securities, total Group income was £24,664m, up 12% year- on-year. Group operating expenses increased to £16,730m (2021: £14,659m) mainly due to higher litigation and conduct charges: Group operating expenses excluding litigation and conduct charges increased 6% to £15,133m, reflecting the impact of inflation and the appreciation of average USD against GBP. Litigation and conduct charges were £1,597m (2021: £397m) including £966m from the Over-issuance of Securities. Credit impairment charges were £1,220m (2021: £653m net release). The increase in charges reflect macroeconomic deterioration and a gradual increase in delinquencies, partially offset by the utilisation of macroeconomic uncertainty post-model adjustments (PMAs) and the release of COVID-19 related adjustments informed by refreshed scenarios. Total coverage ratio decreased to 1.4% (December 2021: 1.6%) driven by changes in portfolio mix and write-offs. Coverage levels remain strong. The effective tax rate (ETR) was 14.8% (2021: 13.9%). The tax charge included a £346m re-measurement of the Group’s UK deferred tax assets (DTAs) due to the enactment of legislation to reduce the UK banking surcharge rate. Excluding this DTAs downward re- measurement, the ETR was 9.9%, reflecting tax benefits in the current year, primarily arising from tax relief related to government bonds linked to the high prevailing rate of inflation in 2022, as well as beneficial adjustments in respect of prior years. Attributable profit was £5,023m (2021: £6,205m). Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 383 report information sustainability report Governance review review statements Annual Report 2022 Consolidated summary balance sheet a Restated 2022 2021 2020 2019 2018 As at 31 December £m £m £m £m £m Assets Cash and balances at central banks 256,351 238,574 191,127 150,258 177,069 Cash collateral and settlement balances 112,597 92,542 101,367 83,256 77,222 Loans and advances at amortised cost 398,779 361,451 342,632 339,115 326,406 Reverse repurchase agreements and other similar secured lending 776 3,227 9,031 3,379 2,308 Trading portfolio assets 133,813 147,035 127,950 114,195 104,187 Financial assets at fair value through the income statement 213,568 191,972 175,151 133,086 149,648 Derivative financial instruments 302,380 262,572 302,446 229,236 222,538 Financial assets at fair value through other comprehensive income 65,062 61,753 78,688 65,750 52,816 Other assets 30,373 25,159 21,122 21,954 21,089 Total assets 1,513,699 1,384,285 1,349,514 1,140,229 1,133,283 Liabilities Deposits at amortised cost 545,782 519,433 481,036 415,787 394,838 Cash collateral and settlement balances 96,927 79,371 85,423 67,341 67,522 Repurchase agreements and other similar secured borrowings 27,052 28,352 14,174 14,517 18,578 b Debt securities in issue 112,881 98,867 75,796 76,369 82,286 Subordinated liabilities 11,423 12,759 16,341 18,156 20,559 Trading portfolio liabilities 72,924 54,169 47,405 36,916 37,882 Financial liabilities designated at fair value 271,637 250,960 249,765 204,326 216,834 Derivative financial instruments 289,620 256,883 300,775 229,204 219,643 Other liabilities 16,193 13,450 11,917 11,953 11,362 Total liabilities 1,444,439 1,314,244 1,282,632 1,074,569 1,069,504 Equity Called up share capital and share premium 4,373 4,536 4,637 4,594 4,311 Other equity instruments 13,284 12,259 11,172 10,871 9,632 Other reserves (2,192) 1,770 4,461 4,760 5,153 Retained earnings 52,827 50,487 45,527 44,204 43,460 Total equity excluding non-controlling interests 68,292 69,052 65,797 64,429 62,556 Non-controlling interests 968 989 1,085 1,231 1,223 Total equity 69,260 70,041 66,882 65,660 63,779 Total liabilities and equity 1,513,699 1,384,285 1,349,514 1,140,229 1,133,283 Net asset value per ordinary share 347p 339p 315p 309p 309p Tangible net asset value per share 295p 291p 269p 262p 262p Number of ordinary shares of Barclays PLC (in millions) 15,871 16,752 17,359 17,322 17,133 Year-end USD exchange rate 1.20 1.35 1.37 1.32 1.28 Year-end EUR exchange rate 1.13 1.19 1.11 1.18 1.12 Notes a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. b Debt securities in issue include covered bonds of £3.2bn (2021: £5.0bn).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 384 report information sustainability report Governance review review statements Annual Report 2022 Balance sheet commentary Total assets Total assets increased £129bn to £1,514bn. Cash and balances at central banks increased by £18bn to £256bn, predominantly driven by strong growth in customer deposits. Financial assets at fair value through other comprehensive income increased £3bn to £65bn. Loans and advances at amortised cost increased £37bn to £399bn, which reflected increased lending to customers across Barclays International and Barclays UK, and increased investment in debt securities. Derivative financial instrument assets increased £40bn to £302bn, driven by market volatility and increased activity. Cash collateral and settlement balances increased by £20bn to £113bn. Trading portfolio assets decreased £13bn to £134bn due to reduction in equity securities as clients repositioned their demand, partially offset by increased trading activity in debt securities. Financial assets at fair value through the income statement increased £22bn to £214bn driven by increased reverse repurchase activity. Total liabilities Total liabilities increased £130bn to £1,444bn. Deposits at amortised cost increased £26bn to £546bn primarily due to an increase in short-term money market deposits and growth in Barclays International deposits. Derivative financial instrument liabilities increased £33bn to £290bn, driven by market volatility and increased activity. Cash collateral and settlement balances increased by £18bn to £97bn. Trading portfolio liabilities increased £19bn to £73bn due to increases in equity securities as clients repositioned their demand. Financial liabilities designated at fair value increased £21bn to £272bn due to increased prime brokerage deposits and repurchase agreements. Total shareholders’ equity Total shareholders’ equity decreased £0.7bn to £69.3bn. Other equity instruments increased £1.0bn to £13.3bn due to the issuance of three AT1 instruments (£1.25bn, $2.0bn and SGD450m), offset by two redemptions (£1.0bn and $1.5bn). AT1 securities are perpetual subordinated contingent convertible securities structured to qualify as AT1 instruments under prevailing capital rules applicable as at the relevant issue date. Other reserves decreased by £4.0bn, mainly due to a reduction in the cash flow hedging reserve of £6.4bn to £7.2bn debit, as a result of fair value movements on interest rate swaps held for hedging purposes due to an increase in major interest rate curves. This was partially offset by an increase in the currency translation reserve of £2.0bn to £4.8bn, driven by the depreciation of GBP against USD. Retained earnings increased £2.3bn to £52.8bn, mainly due to profits of £5.0bn, offset by share repurchases of £1.5bn and dividends of £1.0bn. Tangible net asset value per share increased to 295p (December 2021: 291p) with EPS of 30.8p and currency movements partially offset by net negative reserve movements due to higher interest rates, primarily in the cash flow hedging reserve.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 385 report information sustainability report Governance review review statements Annual Report 2022 Analysis of results by business Barclays UK 2022 2021 2020 £m £m £m Income statement information Net interest income 5,893 5,202 5,234 Net fee, commission and other income 1,366 1,334 1,113 Total income 7,259 6,536 6,347 Operating costs (4,260) (4,357) (4,270) UK bank levy (26) (36) (50) Litigation and conduct (41) (37) (32) Total operating expenses (4,327) (4,430) (4,352) Other net income — — 18 Profit before impairment 2,932 2,106 2,013 Credit impairment (charges)/releases (286) 365 (1,467) Profit before tax 2,646 2,471 546 Attributable profit 1,877 1,756 325 Balance sheet information Loans and advances to customers at amortised cost £205.1bn £208.8bn £205.4bn Total assets £313.2bn £321.2bn £289.1bn Customer deposits at amortised cost £258.0bn £260.6bn £240.5bn Loan: deposit ratio 87% 85% 89% Risk weighted assets £73.1bn £72.3bn £73.7bn Period end allocated tangible equity £10.1bn £10.0bn £9.7bn Key facts UK mortgage balances £162.2bn £158.1bn £148.3bn Mortgage gross lending flow £30.3bn £33.9bn £22.8bn a Average LTV of mortgage portfolio 50% 51% 51% a Average LTV of new mortgage lending 68% 70% 68% Number of branches 481 666 859 Mobile banking active customers 10.5m 9.7m 9.2m 30 day arrears rate - Barclaycard Consumer UK 0.9% 1.0% 1.7% Number of employees (full time equivalent) 6,200 7,100 21,300 Performance measures Return on average allocated tangible equity 18.7% 17.6% 3.2% Average allocated tangible equity £10.0bn £10.0bn £10.1bn Cost: income ratio 60% 68% 69% Loan loss rate (bps) 13 (16) 68 Net interest margin 2.86% 2.52% 2.61% Note a Average loan to value (LTV) of mortgages is balance weighted and reflects both residential and buy-to-let (BTL) mortgage portfolios within the Home Loans portfolio.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 386 report information sustainability report Governance review review statements Annual Report 2022 Analysis of results by business (continued) Analysis of Barclays UK 2022 2021 2020 £m £m £m Analysis of total income Personal Banking 4,540 3,883 3,522 Barclaycard Consumer UK 1,093 1,250 1,519 Business Banking 1,626 1,403 1,306 Total income 7,259 6,536 6,347 Analysis of credit impairment (charges)/releases Personal Banking (167) 28 (380) Barclaycard Consumer UK 30 404 (881) Business Banking (149) (67) (206) Total credit impairment (charges)/releases (286) 365 (1,467) Analysis of loans and advances to customers at amortised cost Personal Banking £169.7bn £165.4bn £157.3bn Barclaycard Consumer UK £9.2bn £8.7bn £9.9bn Business Banking £26.2bn £34.7bn £38.2bn Total loans and advances to customers at amortised cost £205.1bn £208.8bn £205.4bn Analysis of customer deposits at amortised cost Personal Banking £195.6bn £196.4bn £179.7bn Barclaycard Consumer UK — — £0.1bn Business Banking £62.4bn £64.2bn £60.7bn Total customer deposits at amortised cost £258.0bn £260.6bn £240.5bn 2022 compared to 2021 Profit before tax increased to £2,646m (2021: £2,471m), with benefits from the rising rate environment in the UK more than offsetting the non-recurrence of a prior year credit impairment release . Total income increased 11% to £7,259m. Net interest income increased 13% to £5,893m with a NIM of 2.86% (2021: 2.52%) primarily driven by the rising interest rate environment in the UK. Net fee, commission and other income increased 2% to £1,366m. Personal Banking income increased 17% to £4,540m, driven by rising interest rates, partially offset by mortgage margin compression. Barclaycard Consumer UK income decreased 13% to £1,093m as higher customer spend volumes were more than offset by lower interest earning lending (IEL) balances following repayments and ongoing prudent risk management. Business Banking income increased 16% to £1,626m driven by rising interest rates alongside improved transaction based revenues, partially offset by lower government scheme lending income as repayments continue. Total operating expenses decreased 2% to £4,327m driven by efficiency savings more than offsetting the impact of inflation. Credit impairment charges were £286m (2021: £365m net release). The charges reflect an updated macroeconomic scenario together with a partial return to more normalised levels of customer behaviour. This is partially offset from the release of COVID-19 related adjustments as performance stabilises at or below pre-pandemic levels. As at 31 December 2022, UK cards 30 and 90 day arrears a remain at 0.9% (Q421: 1.0%) and 0.2% (Q421: 0.2%) respectively . The UK cards business is supported by a total coverage ratio of 7.6% (December 2021: 12.8%). The UK cards coverage reflects revised recovery expectations under the ongoing debt sale program and continued resilience in the underlying book. PMAs are in place for the anticipated stress arising from the cost-of-living crisis. Loans and advances to customers at amortised cost decreased 2% to £205.1bn as £4.1bn of mortgage growth was more than offset by a £8.5bn decrease in Business Banking balances due to the repayment of government scheme lending and the yield curve impact from rising interest rates on the Education, Social Housing and Local Authority portfolio carrying value. Customer deposits at amortised cost remained broadly stable at £258.0bn (December 2021: £260.6bn), maintaining a strong loan: deposit ratio of 87% (December 2021: 85%). RWAs remained broadly stable at £73.1bn (December 2021: £72.3bn). Note a As at 31 December 2019, UK Cards 30 and 90 day arrears were 1.7% and 0.8% respectively.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 387 report information sustainability report Governance review review statements Annual Report 2022 Analysis of results by business (continued) Barclays International a Restated 2022 2021 2020 £m £m £m Income statement information Net interest income 4,927 3,263 3,282 Net trading income 7,709 5,693 6,920 Net fee, commission and other income 5,231 6,709 5,719 Total income 17,867 15,665 15,921 Operating costs (10,361) (9,076) (8,765) UK bank levy (133) (134) (240) Litigation and conduct (1,503) (345) (48) Total operating expenses (11,997) (9,555) (9,053) Other net income 28 40 28 Profit before impairment 5,898 6,150 6,896 Credit impairment (charges)/releases (933) 288 (3,280) Profit before tax 4,965 6,438 3,616 Attributable profit 3,844 4,647 2,220 Balance sheet information Loans and advances to customers at amortised cost £133.7bn £106.4bn £100.1bn Loans and advances to banks at amortised cost £8.7bn £8.4bn £8.0bn Debt securities at amortised cost £27.2bn £19.0bn £14.7bn Loans and advances at amortised cost £169.6bn £133.8bn £122.7bn Trading portfolio assets £133.8bn £146.9bn £127.7bn Derivative financial instrument assets £301.7bn £261.5bn £301.8bn Financial assets at fair value through the income statement £210.5bn £188.2bn £170.7bn Cash collateral and settlement balances £107.7bn £88.1bn £97.5bn Other assets £258.0bn £225.6bn £221.4bn Total assets £1,181.3bn £1,044.1bn £1,041.8bn Deposits at amortised cost £287.6bn £258.8bn £240.5bn Derivative financial instrument liabilities £288.9bn £256.4bn £300.4bn Loan: deposit ratio 59% 52% 51% Risk weighted assets £254.8bn £230.9bn £222.3bn Period end allocated tangible equity £36.8bn £33.2bn £30.2bn Key facts Number of employees (full time equivalent) 10,900 10,400 10,800 Performance measures Return on average allocated tangible equity 10.2% 14.4% 7.1% Average allocated tangible equity £37.6bn £32.4bn £31.5bn Cost: income ratio 67% 61% 57% Loan loss rate (bps) 54 (21) 257 Net interest margin 5.02% 4.01% 3.64% Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 388 report information sustainability report Governance review review statements Annual Report 2022 Analysis of results by business (continued) Analysis of Barclays International a Restated 2022 2021 2020 Corporate and Investment Bank £m £m £m Income statement information Net interest income 1,949 1,351 1,084 Net trading income 7,733 5,652 6,975 Net fee, commission and other income 3,686 5,331 4,417 Total income 13,368 12,334 12,476 Operating costs (7,630) (6,818) (6,689) UK bank levy (126) (128) (226) Litigation and conduct (1,189) (237) (4) Total operating expenses (8,945) (7,183) (6,919) Other net income 2 2 6 Profit before impairment 4,425 5,153 5,563 Credit impairment (charges)/releases (119) 473 (1,559) Profit before tax 4,306 5,626 4,004 Attributable profit 3,364 4,032 2,554 Balance sheet information Loans and advances to customers at amortised cost £90.5bn £73.4bn £70.3bn Loans and advances to banks at amortised cost £8.1bn £7.6bn £7.4bn Debt securities at amortised cost £27.2bn £19.0bn £14.7bn Loans and advances at amortised cost £125.8bn £100.0bn £92.4bn Trading portfolio assets £133.7bn £146.7bn £127.5bn Derivative financial instrument assets £301.6bn £261.5bn £301.7bn Financial assets at fair value through the income statement £210.5bn £188.1bn £170.4bn Cash collateral and settlement balances £106.9bn £87.2bn £96.7bn Other assets £222.6bn £195.8bn £194.9bn Total assets £1,101.1bn £979.3bn £983.6bn Deposits at amortised cost £205.8bn £189.4bn £175.2bn Derivative financial instrument liabilities £288.9bn £256.4bn £300.3bn Risk weighted assets £215.9bn £200.7bn £192.2bn Performance measures Return on average allocated tangible equity 10.2% 14.3% 9.5% Average allocated tangible equity £32.8bn £28.3bn £27.0bn Cost: income ratio 67% 58% 55% Loan loss rate (bps) 9 (47) 166 Analysis of total income FICC 5,695 3,448 5,138 Equities 3,149 2,967 2,471 Global Markets 8,844 6,415 7,609 Advisory 768 921 561 Equity capital markets 166 813 473 Debt capital markets 1,281 1,925 1,697 Investment Banking fees 2,215 3,659 2,731 Corporate lending (231) 588 590 Transaction banking 2,540 1,672 1,546 Corporate 2,309 2,260 2,136 Total income 13,368 12,334 12,476 Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 389 report information sustainability report Governance review review statements Annual Report 2022 Analysis of results by business (continued) Analysis of Barclays International continued 2022 2021 2020 Consumer, Cards and Payments £m £m £m Income statement information Net interest income 2,979 1,912 2,198 Net fee, commission, trading and other income 1,520 1,419 1,247 Total income 4,499 3,331 3,445 Operating costs (2,731) (2,258) (2,076) UK bank levy (7) (6) (14) Litigation and conduct (314) (108) (44) Total operating expenses (3,052) (2,372) (2,134) Other net income 26 38 22 Profit before impairment 1,473 997 1,333 Credit impairment charges (814) (185) (1,721) Profit/(loss) before tax 659 812 (388) Attributable profit/(loss) 480 615 (334) Balance sheet information Loans and advances to customers at amortised cost £43.2bn £33.0bn £29.7bn Total assets £80.2bn £64.8bn £58.2bn Deposits at amortised cost £81.8bn £69.4bn £65.3bn Risk weighted assets £38.9bn £30.2bn £30.1bn Key facts US cards 30 day arrears rate 2.2% 1.6% 2.5% US cards customer FICO score distribution 660 89% 90% 87% Total number of payments clients 395k 380k 365k a Value of payments processed £307bn £277bn £274bn Performance measures Return on average allocated tangible equity 10.0% 15.0% (7.5%) Average allocated tangible equity £4.8bn £4.1bn £4.5bn Cost: income ratio 68% 71% 62% Loan loss rate (bps) 175 51 517 Analysis of total income International Cards and Consumer Bank 2,913 2,092 2,433 Private Bank 1,014 781 707 Payments 572 458 305 Total income 4,499 3,331 3,445 Note a Includes £296bn (2021: £270bn; 2020: £268bn) of merchant acquiring payments.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 390 report information sustainability report Governance review review statements Annual Report 2022 Analysis of results by business (continued) a 2022 compared to 2021 Profit before tax decreased 23% to £4,965m with a RoTE of 10.2% (2021: 14.4%), reflecting a RoTE of 10.2% (2021: 14.3%) in CIB and 10.0% (2021: 15.0%) in CC&P. Excluding the impact of the Over-issuance of Securities, CIB RoTE was 12.0%. Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US. The 10% appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges, total operating expenses and RWAs. Total income increased to £17,867m (2021: £15,665m). CIB income increased 8% to £13,368m. Global Markets income increased 38% to £8,844m representing the best full year for both Global Markets and FICC on a comparable b basis . FICC income increased 65% to £5,695m, mainly in macro, reflecting higher levels of activity as we supported our clients through a period of market volatility. Equities income of £3,149m (2021: £2,967m) included £292m of income related to hedging arrangements to manage the risks of the rescission offer in relation to the Over-issuance of Securities. c Investment Banking fees decreased 39% to £2,215m due to the reduced fee pool, particularly in Equity and Debt capital markets . Within Corporate, Transaction banking income increased 52% to £2,540m driven by improved margins and growth in deposits, and higher fee income. Corporate lending income reflected fair value losses on leverage finance lending of c.£335m net of mark to market gains on related hedges, of which c.£85m was recognised in Q422, and higher costs of hedging and credit protection. CC&P income increased 35% to £4,499m. International Cards and Consumer Bank income increased 39% to £2,913m reflecting higher cards balances, including the Gap portfolio acquisition, partially offset by higher customer acquisition costs. Private Bank income increased 30% to £1,014m, reflecting client balance growth and improved margins partially offset by the non- recurrence of a property sale gain in the prior year. Payments income increased 25% to £572m driven by turnover growth from the easing of lockdown restrictions. Total operating expenses increased 26% to £11,997m. CIB total operating expenses increased 25% to £8,945m. Operating expenses excluding litigation and conduct charges increased 12% to £7,756m driven by continued investment in talent and technology, and the impact of inflation. Litigation and conduct charges were £1,189m (2021: £237m) including £966m from the Over-issuance of Securities d and £165m relating to the Devices Settlements . CC&P total operating expenses increased 29% to £3,052m. Operating expenses excluding litigation and conduct charges increased 21% to £2,738m, including higher investment spend reflecting an increase in marketing and partnership costs. Litigation and conduct charges were £314m (2021: £108m) mainly driven by customer remediation costs relating to legacy loan portfolios. Credit impairment charges were £933m (2021: £288m net release) driven by a deteriorating macroeconomic forecast. CIB credit impairment charges of £119m (2021: £473m net release) were driven by a net increase in modelled impairment and single name charges partially offset by the benefit of credit protection. CC&P credit impairment charges increased to £814m (2021: £185m), driven by higher balances in US cards, including the day one impact of acquiring the Gap portfolio, macroeconomic deterioration and a gradual increase in delinquencies, partially offset by the utilisation of economic uncertainty PMAs and the release of COVID-19 related adjustments informed by refreshed macroeconomic scenarios. As at 31 December 2022, US cards 30 and 90 day arrears remain below e pre-pandemic levels at 2.2% (Q421: 1.6%) and 1.2% (Q421: 0.8%) respectively . The US cards business is supported by a total coverage ratio of 8.1% (December 2021: 10.6%). Loans and advances at amortised cost increased £35.8bn to £169.6bn due to increased lending to customers across CIB and CC&P, inclusive of the Gap portfolio acquisition and appreciation of USD against GBP, and increased investment in debt securities. Trading portfolio assets decreased £13.1bn to £133.8bn due to a reduction in equity securities as clients repositioned their demand, partially offset by increased trading activity in debt securities. Derivative assets and liabilities increased £40.2bn and £32.5bn respectively to £301.7bn and £288.9bn driven by market volatility and increased activity. Financial assets at fair value through the income statement increased £22.3bn to £210.5bn driven by increased reverse repurchase activity. Deposits at amortised cost increased £28.8bn to £287.6bn primarily due to growth in Corporate deposits and an increase in short-term money market deposits. RWAs increased to £254.8bn (December 2021: £230.9bn) mainly resulting from the impact of the appreciation of USD against GBP, regulatory changes and higher CC&P balances including the Gap portfolio. Notes a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. b Period covering 2014-2022. Pre 2014 data was not restated following re-segmentation in 2016. c Data source: Dealogic for the period covering 1 January to 31 December 2022. d Refers to the settlements with the SEC and CFTC in connection with their investigations of the use of unauthorised devices for business communications. e As at 31 December 2019, US cards 30 and 90 days arrears were 2.7% and 1.4% respectively.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 391 report information sustainability report Governance review review statements Annual Report 2022 Analysis of results by business (continued) Head Office Restated 2022 2021 2020 £m £m £m Income statement information Net interest income (248) (392) (393) Net fee, commission and other income 78 131 (109) Total income (170) (261) (502) Operating costs (336) (659) (399) UK bank levy (17) — (9) Litigation and conduct (53) (15) (73) Total operating expenses (406) (674) (481) Other net (expenses)/income (22) 220 (23) Loss before impairment (598) (715) (1,006) Credit impairment charges (1) — (91) Loss before tax (599) (715) (1,097) Attributable loss (698) (198) (1,019) a Balance sheet information Total assets £19.2bn £19.0bn £18.6bn Risk weighted assets £8.6bn £11.0bn £10.2bn Period end allocated tangible equity £(0.2)bn £5.5bn £6.8bn Key facts b,c Number of employees (full time equivalent) 70,300 64,100 50,900 Performance measures Average allocated tangible equity £0.7bn £5.0bn £6.7bn Notes a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. b Head Office includes employees in Barclays Execution Services. c Barclays Execution Services Employees are reported within the Head Office Segment. Barclays UK transformed its business in 2021 and consolidated all Customer Care employees, who directly serve customers, into Barclays Execution Services to improve customer service and experience. Costs are recharged, while FTEs are reported within Head Office, as at 31 December 2021 10,700 FTEs were impacted by the move from Barclays UK to Head Office. The 2020 comparative figures have not been restated. 2022 compared to 2021 Loss before tax was £599m (2021: £715m). Total income was an expense of £170m (2021: £261m) primarily reflecting treasury items, funding costs on legacy capital instruments and mark-to-market losses on legacy investments, partially offset by hedge accounting gains. Additionally, there was a £74m loss on sale arising from disposals of Barclays’ equity stake in Absa, and a £72m interest expense that became payable to a US tax authority upon the resolution of historical tax issues. This was partially offset by a gain of £86m from the sale and leaseback of UK data centres and the receipt of £30m of dividends from Absa prior to disposal. Total operating expenses reduced to £406m (2021: £674m) reflecting the non-recurrence of the £266m structural cost action charge taken as part of the real estate review in June 2021. Other net income was an expense of £22m (2021: £220m income) driven by a fair value loss on investments held by the Business Growth Fund in which Barclays has an associate interest. RWAs reduced to £8.6bn (December 2021: £11.0bn) reflecting the disposals of Barclays' equity stake in Absa in April 2022 and September 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 392 report information sustainability report Governance review review statements Annual Report 2022 Non-IFRS performance measures The Group’s management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses’ performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Non-IFRS performance measures glossary Measure Definition Loans and advances at amortised cost divided by deposits at amortised cost. The components of the Loan: deposit ratio calculation have been included on page 348. Allocated tangible equity is calculated as 13.5% (2021; 13.5% and 2020: 13.0%) of RWAs for each business, Period end allocated tangible adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the equity Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Group’s tangible shareholders’ equity and the amounts allocated to businesses. Calculated as the average of the previous month’s period end tangible equity and the current month’s Average tangible shareholders’ period end tangible equity. The average tangible shareholders’ equity for the period is the average of the equity monthly averages within that period. Calculated as the average of the previous month’s period end allocated tangible equity and the current Average allocated tangible month’s period end allocated tangible equity. The average allocated tangible equity for the period is the equity average of the monthly averages within that period. Statutory profit after tax attributable to ordinary equity holders of the parent, as a proportion of average Return on average tangible shareholders’ equity excluding non-controlling interests and other equity instruments adjusted for the shareholders’ equity deduction of intangible assets and goodwill. The components of the calculation have been included on pages 394. Statutory profit after tax attributable to ordinary equity holders of the parent, as a proportion of average Return on average allocated allocated tangible equity. The components of the calculation have been included on page 395. tangible equity A measure of total operating expenses excluding litigation and conduct charges. Operating expenses excluding litigation and conduct A measure of total operating expenses excluding litigation and conduct charges, UK bank levy and GMP. Operating costs Total operating expenses divided by total income. Cost: income ratio Quoted in basis points and represents total impairment charges divided by gross loans and advances held Loan loss rate at amortised cost at the balance sheet date. The components of the calculation have been included on page 304. Net interest income divided by the sum of average customer assets. The components of the calculation Net interest margin have been included on page 393. Calculated by dividing shareholders’ equity, excluding non-controlling interests and other equity Tangible net asset value per instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The share components of the calculation have been included on page 396. Calculated by excluding the impact of the Over-issuance of Securities from performance measures. The Performance measures components of the calculations have been included on page 395. excluding the impact of the Over-issuance of Securities Calculated by excluding credit impairment charges or releases from profit before tax. Profit before impairment

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 393 report information sustainability report Governance review review statements Annual Report 2022 Non-IFRS performance measures (continued) Margins analysis 2022 2021 Net interest Average customer Net interest Net interest Average customer Net interest income assets margin income assets margin £m £m % £m £m % For the year ended 31 December Barclays UK 5,893 205,972 2.86 5,202 206,628 2.52 a 1,796 56,008 3.21 1,238 47,725 2.59 Corporate and Investment Bank Consumer, Cards and Payments 2,979 39,193 7.60 1,911 30,805 6.21 a Barclays International 4,775 95,201 5.02 3,149 78,530 4.01 10,668 301,173 3.54 Total Barclays UK and Barclays International 8,351 285,158 2.93 b (96) Other (278) Total Barclays Group 10,572 8,073 Notes a Corporate and Investment Bank and Barclays International margins include IEL balances within the corporate and investment banking business. b Other includes Head Office and non-lending related corporate and investment banking businesses not included in Barclays International margins. The Group NIM increased 61bps to 3.54%. Barclays UK NIM increased 34bps to 2.86%, reflecting the impact of higher UK interest rates. Barclays International NIM increased 101bps to 5.02%. CIB NIM increased 62bps to 3.21% and CC&P NIM increased 139bps to 7.60%, reflecting the impact of balance growth and higher interest rates. The Group’s combined product and equity structural hedge notional as at 31 December 2022 was £263bn (December 2021: £228bn), with an average duration of approximately 2.5 years (2021: close to 3 years). Group net interest income includes gross structural hedge contributions of £2,196m (2021: £1,415m) and net structural hedge contributions of £(1,544)m (2021: £1,187m). Gross structural hedge contributions represent the absolute interest income earned from the fixed receipts on the swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 394 report information sustainability report Governance review review statements Annual Report 2022 Non-IFRS performance measures (continued) Returns Return on average tangible equity is calculated as profit for the period attributable to ordinary equity holders of the parent as a proportion of average tangible equity for the period, excluding non-controlling and other equity interests for businesses. Allocated tangible equity has been calculated as 13.5% (2021: 13.5%, 2020: 13.0%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes. Head Office average allocated tangible equity represents the difference between the Group’s average tangible shareholders’ equity and the amounts allocated to businesses. Profit/(loss) attributable Average Return on to ordinary equity holders tangible average of the parent equity tangible equity £m £bn % For the year ended 31 December 2022 Barclays UK 1,877 10.0 18.7 Corporate and Investment Bank 3,364 32.8 10.2 Consumer, Cards and Payments 480 4.8 10.0 Barclays International 3,844 37.6 10.2 Head Office (698) 0.7 n/m Barclays Group 5,023 48.3 10.4 a For the year ended 31 December 2021 Barclays UK 1,756 10.0 17.6 Corporate and Investment Bank 4,032 28.3 14.3 Consumer, Cards and Payments 615 4.1 15.0 Barclays International 4,647 32.4 14.4 Head Office (198) 5.0 n/m Barclays Group 6,205 47.3 13.1 For the year ended 31 December 2020 Barclays UK 325 10.1 3.2 Corporate and Investment Bank 2,554 27.0 9.5 Consumer, Cards and Payments (334) 4.5 (7.5) Barclays International 2,220 31.5 7.1 Head Office (1,019) 6.7 n/m Barclays Group 1,526 48.3 3.2 Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. Performance measures For the year ended 31 December 2022 Corporate and Consumer, Cards Barclays Barclays UK Investment Bank and Payments International Head Office Barclays Group Return on average tangible shareholders' equity £m £m £m £m £m £m Attributable profit/(loss) 1,877 3,364 480 3,844 (698) 5,023 Average shareholders' equity £13.6bn £32.8bn £5.7bn £38.5bn £4.3bn £56.4bn Average goodwill and intangibles (£3.6bn) — (£0.9bn) (£0.9bn) (£3.6bn) (£8.1bn) Average tangible shareholders' equity £10.0bn £32.8bn £4.8bn £37.6bn £0.7bn £48.3bn Return on average tangible shareholders' equity 18.7% 10.2% 10.0% 10.2% n/m 10.4% Barclays Group average tangible shareholders’ £47.7bn equity based on a CET1 ratio of 13.5%

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 395 report information sustainability report Governance review review statements Annual Report 2022 Non-IFRS performance measures (continued) a For the year ended 31 December 2021 Corporate and Consumer, Cards Barclays Barclays UK Investment Bank and Payments International Head Office Barclays Group Return on average tangible shareholders' equity £m £m £m £m £m £m Attributable profit/(loss) 1,756 4,032 615 4,647 (198) 6,205 £13.6bn £28.3bn £4.8bn £33.1bn £8.7bn £55.4bn Average shareholders' equity (£3.6bn) — (£0.7bn) (£0.7bn) (£3.7bn) (£8.1bn) Average goodwill and intangibles Average tangible shareholders' equity £10.0bn £28.3bn £4.1bn £32.4bn £5.0bn £47.3bn Return on average tangible shareholders' equity 17.6% 14.3% 15.0% 14.4% n/m 13.1% Barclays Group average tangible shareholders’ £42.7bn equity based on a CET1 ratio of 13.5% Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details. For the year ended 31 December 2020 Corporate and Consumer, Cards Barclays Barclays UK Investment Bank and Payments International Head Office Barclays Group Return on average tangible shareholders' equity £m £m £m £m £m £m Attributable profit/(loss) 325 2,554 (334) 2,220 (1,019) 1,526 £13.7bn £27.0bn £5.1bn £32.1bn £10.6bn £56.4bn Average shareholders' equity (£3.6bn) — (£0.6bn) (£0.6bn) (£3.9bn) (£8.1bn) Average goodwill and intangibles Average tangible shareholders' equity £10.1bn £27.0bn £4.5bn £31.5bn £6.7bn £48.3bn Return on average tangible shareholders' equity 3.2% 9.5% (7.5%) 7.1% n/m 3.2% Barclays Group average tangible shareholders’ £45.1bn equity based on a CET1 ratio of 13.0% Performance measures excluding the impact of the Over-issuance of Securities Corporate and Investment Bank For the year ended 31.12.22 Attributable profit excluding the impact of the Over-issuance of Securities £m 3,364 Attributable profit (552) Post-tax impact of the Over-issuance of Securities 3,916 Attributable profit excluding the impact of the Over-issuance of Securities Return on average allocated tangible equity £32.8bn Average allocated tangible equity £0.3bn The impact of the Over-issuance of Securities £32.5bn Average allocated tangible equity adjusted for the impact of the Over-issuance of Securities Return on average allocated tangible equity 10.2% The impact of the Over-issuance of Securities (1.8)% Return on average allocated tangible equity excluding the impact of the Over-issuance of 12.0% Securities

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 396 report information sustainability report Governance review review statements Annual Report 2022 Non-IFRS performance measures (continued) Tangible net asset value per share a 2022 2021 2020 £m £m £m Total equity excluding non-controlling interests 68,292 69,052 65,797 Other equity instruments (13,284) (12,259) (11,172) Goodwill and intangibles (8,239) (8,061) (7,948) Tangible shareholders’ equity attributable to ordinary shareholders of the parent 46,769 48,732 46,677 Shares in issue 15,871m 16,752m 17,359m Tangible net asset value per share 295p 291p 269p Note a 2021 financial and capital metrics have been restated to reflect the impact of the Over-issuance of Securities. See impact of Over-issuance of Securities on page 356 and Restatement of financial statements (Note 1a) on page 428 for further details.

Financial statements Detailed analysis of our statutory accounts, independently audited and providing in-depth disclosure on the financial performance of the Group. Barclays has adopted the British Bankers’ Association (BBA) Code for Financial Reporting Disclosure as adopted by UK Finance in 2017 and has prepared the 2022 Annual Report in compliance with the BBA Code. Barclays is committed to continuously reflect the objectives of reporting set out in the BBA Code. Page Note Consolidated financial statements Independent Auditor’s Report 399 Consolidated income statement 416 Consolidated statement of comprehensive income 417 Consolidated balance sheet 418 Consolidated statement of changes in equity 419 Consolidated cash flow statement 420 Parent company accounts 421 Notes to the financial statements Significant accounting policies 424 1 Financial performance and returns Segmental reporting 430 2 Net interest income 432 3 Net fee and commission income 433 4 Net trading income 435 5 Net investment income 435 6 Operating expenses 436 7 Credit impairment charges 436 8 Tax 440 9 Earnings per share 445 10 Dividends on ordinary shares 445 11 Assets and liabilities held at fair value Trading portfolio 446 12 Financial assets at fair value through 446 13 the income statement Derivative financial instruments 447 14 Financial assets at fair value through 455 15 other comprehensive income Financial liabilities designated at fair value 455 16 Fair value of financial instruments 456 17 Offsetting financial assets and financial liabilities 468 18

Page Note Assets at amortised cost Loans and advances and deposits at amortised cost 469 19 and other investments Property, plant and equipment 469 20 Leases 471 21 Goodwill and intangible assets 473 22 Accruals, provisions, contingent Other liabilities 477 23 liabilities and legal proceedings Provisions 477 24 Contingent liabilities and commitments 478 25 Legal, competition and regulatory matters 479 26 Capital instruments, Subordinated liabilities 485 27 equity and reserves Ordinary shares, share premium and other equity 488 28 Reserves 489 29 Non-controlling interests 490 30 Employee benefits Staff costs 491 31 Share-based payments 492 32 Pensions and post-retirement benefits 494 33 Scope of consolidation Principal subsidiaries 500 34 Structured entities 502 35 Investments in associates and joint ventures 506 36 Securitisations 507 37 Assets pledged, collateral received 509 38 and assets transferred Other disclosure matters Related party transactions and Directors’ remuneration 511 39 Auditor’s remuneration 513 40 Interest rate benchmark reform 513 41 Barclays PLC (the Parent company) 517 42 Related undertakings 519 43

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 399 report information sustainability report Governance review review statements Annual Report 2022 KPMG LLP’s independent auditor’s report to the members of Barclays PLC consistent with those discussed and 1. Our opinion is unmodified Key Audit Matters Item included in our reporting to the Board In our opinion: Impairment allowance on Audit Committee (“BAC”). • the financial statements of Barclays PLC loans and advances at 4.1 & We have fulfilled our ethical responsibilities give a true and fair view of the state of amortised cost under, and we remain independent of the the Group’s and of the Parent Valuation of financial 4.2 Group in accordance with, UK ethical 1 Company’s affairs as at 31 December instruments held at fair value requirements including the FRC Ethical 2022, and of the Group’s profit for the UK Pension scheme valuation 4.3 1 Standard as applied to listed public interest year then ended; User access management 4.4 entities. 1 • the Group financial statements have Recoverability of Parent 2. Overview of our audit been properly prepared in accordance Company’s investment 4.5 1 with UK-adopted international Factors driving our view of risks in subsidiaries accounting standards; Following our FY21 audit and considering • the Parent Company financial developments affecting the Barclays PLC Similar risk to FY21 statements have been properly Group since then, we have updated our 1 prepared in accordance with UK- risk assessment. Increased risk since FY21 & adopted international accounting The macro-economic environment standards as applied in accordance with continues to drive our risk assessment as Our use of specialists and innovation the provisions of the Companies Act the uncertainty which arose during the Using the work of specialists and specific 2006; COVID-19 pandemic has evolved into team members with expertise in a • the financial statements have been increasing affordability pressures specialised area of accounting or prepared in accordance with the associated with rising inflation and interest auditing: We used our specialists and requirements of the Companies Act rates. specific team members with expertise in a 2006. The economic uncertainty and change has specialised area of accounting or auditing brought both pressures and opportunities. to assist us in various aspects of our audit. What our opinion covers Fee income across the equity and debt This includes, for example: We have audited the Group and Parent capital markets is down versus the prior • Credit risk modellers for our testing of Company financial statements of Barclays year but income in the markets business the ECL models PLC for the year ended 31 December has risen versus 2021 due to a higher 2022 (FY22) included in the Annual Report • Economics specialists for our work volume of trading activity linked to volatility and Accounts, which comprise: related to the macro-economic across various asset classes. In addition, variables and scenarios used in the Group (Barclays PLC and its subsidiaries) the increasing interest rate environment determination of the ECL provisions • Consolidated income statement and changes in portfolio mix have led to an increase in the net interest margin. • Valuation specialists for our • Consolidated statement of independent repricing of samples of comprehensive income As part of our risk assessment, we have financial instruments maintained our focus on future economic • Consolidated balance sheet assumptions used by the Group in its key • Corporate finance valuation specialists • Consolidated statement of changes in estimates both at the year end and, where for our work over the methodology equity relevant, on a forward-looking basis. underpinning and certain of the • Consolidated cash flow statement assumptions used in the impairment Our risk assessment also considered assessment of goodwill and intangibles • Notes 1 to 43 of the Consolidated instances of non-compliance with laws and and the carrying value of subsidiaries Financial Statements, including the regulations and enforcement actions summary of significant accounting against the Group during the year and • Actuarial pensions specialists for our policies specifically those that could reasonably be work on the valuation of the defined expected to have a material effect on the benefit obligation Parent Company (Barclays PLC) financial statements. We considered • Tax specialists for our work over the tax • Statement of comprehensive income management’s assessment of how these charge, effective tax rate and uncertain • Balance sheet occurred, their assessment of whether the tax positions. risk could be more pervasive, and actions • Statement of changes in equity Incorporating unpredictability into our taken to remediate and prevent • Cash flow statement audit: A requirement of the auditing recurrences or similar issues. • Note 42 to the Financial Statements, standards is that we undertake procedures : including the summary of significant which are deliberately unexpected and could not have reasonably been predicted accounting policies by Barclays’ management. As an example, Basis for opinion we update our criteria for selecting journals We conducted our audit in accordance with a higher risk of management override with International Standards on Auditing for testing each year so that the selection (UK) (“ISAs (UK)”) and applicable law. Our criteria do not become predictable. This responsibilities are described below. We year we added additional key words we searched for in journal descriptions and believe that the audit evidence we have also introduced new search criteria for obtained is a sufficient and appropriate journals posted and approved by the same basis for our opinion. Our audit opinion individuals. and matters included in this report are

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 400 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) Innovation in the audit: Our audit is In our professional judgment, we confirm 31 December 2017. The period of total committed to driving innovation and the that based on our assessment of the uninterrupted engagement is for the six increased use of technology. In 2022 we breach, our integrity and objectivity as financial years ended 31 December 2022. have continued to deploy a large number auditor has not been compromised and we The Group lead engagement partner is of data and analytics tools across our audit. believe that an objective, reasonable and required to rotate after five years. This is We have also continued to innovate our informed third party would conclude that the first set of UK Financial Statements audit of the estimation of expected credit the provision of this service would not that Stuart Crisp has signed. losses through independently recalculating impair our integrity or objectivity for any of The average tenure of key audit partners a selection of model assumptions using the impacted financial years. The audit who are responsible for component audits, more recent data for certain portfolios. committee have concurred with this view. as set out in section 7 below, is three years, This is used to develop a range for ECL We were first appointed as auditor by the with the shortest being their first year of which we then compare to management’s shareholders for the year ended involvement and longest being five years. own point estimate. Board Audit Committee (“BAC”) £58m Total audit fee interaction £11m Other audit related fees During the year, the BAC met 14 times. £2m Other services KPMG are invited to attend all BAC 31 March 2017 Date first appointed meetings and are provided an opportunity to meet with the BAC in private sessions 6 years Uninterrupted audit tenure without the Executive Directors being 31 December 2027 Next financial period which requires a tender present. For each Key Audit Matter, we 1 year Tenure of Group lead engagement partner have set out communications with the BAC in section 4, including matters that 3 years Average tenure of key audit partners required particular judgement for each. Materiality In addition, our audit team includes a Normalised profit before tax from (Item 6 below) senior partner who has specific continuing operations £7,012m responsibility for ensuring audit quality (our (2021: normalised PBT:£6,071m) The scope of our work is influenced by our “Audit Quality Partner”). The Board Audit view of materiality and our assessed risk of Committee met with the Audit Quality material misstatement. Partner, without the audit team present, to We have determined overall materiality for Profit before £7,012 n receive a report on his assessment of audit tax from the Barclays PLC Group to be £275m continuing quality. operations (FY21: £230m). Group £275 The matters included in the BAC Chair’s n A key judgement in determining materiality materiality report on page 169 are materially (and performance materiality) is the consistent with our observations of those appropriate benchmark to select, based on meetings. our perception of the needs of £275m A Our independence shareholders. We considered which Whole financial statements materiality benchmarks and key performance We have fulfilled our ethical responsibilities (2021: £230m) indicators have the greatest bearing on and remain independent of the Group in shareholder decisions. accordance with UK ethical requirements, £170m B Highest component materiality. including the FRC Ethical Standard as Range of materiality for We determined that profit before tax the five components applied to listed public interest entities. remains the key benchmark for the (£100m-£170m) (2021: £75m-£170m) Barclays PLC Group. For FY21 we Apart from the matter noted below, we £13m normalised profit before tax downward by have not performed any non-audit Misstatements reported to the £2.3bn to adjust for the fact that ECL services during the year ended Board Audit Committee C (2021: £11m) charges were considered abnormally low 31 December 2022 or subsequently which as the economy recovered from the are prohibited by the FRC Ethical Standard. In line with our audit methodology, our procedures on individual account balances and disclosures were performed COVID-19 pandemic. For FY22 we did not During 2023, we identified that a KPMG to a lower threshold, performance materiality, so as to reduce normalise profit before tax. This is to an acceptable level the risk that individually immaterial member firm had provided preparation of misstatements in individual account balances add up to a reflective of the impact of COVID-19 on local GAAP financial statement services material amount across the financial statements as a whole. ECL being less pronounced in the current over the period 2019 to 2022 to entities Performance materiality was set at 65% (2021: 74%) of period. This change is a driver of the materiality for the financial statements as a whole, which not in scope for the group audit. The equates to £179m (2021: £170m) for the group and £169m increase in materiality in 2022. As such, for services involved administrative (2021: £169m) for the parent company. We applied this FY22 we based our materiality on profit percentage in our determination of performance materiality preparation of the local statutory financial based on the level of control deficiencies during the prior before tax, of which it represents 3.9% statements and did not involve any period. (FY21: 3.8% of normalised PBT). management decision-making or We have determined overall materiality for bookkeeping. The work was undertaken the Parent Company to be £260m (FY21: after the group audit opinion was signed by £225m). Materiality for the Parent KPMG LLP for each of the impacted Company financial statements was financial years and had no direct or indirect determined with reference to a benchmark effect on Barclays PLC’s consolidated of net assets of which it represents 0.5% financial statements. (FY21: 0.4%).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 401 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) Group scope Coverage of Group financial statements As part of our audit we performed a risk assessment of the impact of climate (Item 7 below) Group total income* change risk and the commitments made We have performed top down risk by the Group in respect of climate change assessment and planning to determine on the financial statements and our audit which of the Group’s components are likely approach. As a part of this we held to include risks of material misstatement discussions with our own climate change to the Group financial statements, the professionals to challenge our risk type of procedures to be performed at assessment. In doing this we performed these components and the extent of the following: involvement required from component • Understanding management’s auditors around the world for the purpose processes: we made enquiries to of our opinion on the consolidated financial understand management’s assessment statements. of the potential impact of climate We have also considered the extent to change risk on the Group’s Annual Group total assets* which the Group has established central Report and Accounts and the Group’s hubs in shared service centre structures in preparedness for this. As a part of this India. The outputs from these hubs are we made enquiries to understand included in the financial information of the management’s risk assessment process reporting components and so the India as it relates to possible effects of operations are not considered to be a climate change on the Annual Report separate component. and Accounts including the way in which We have performed certain audit the accounting policies of the Group procedures centrally across the Group, set (including those relating to products out in more detail in Section 7. In addition, with specific climate features) are we have performed Group level analysis on updated to reflect climate change risks. the remaining components to determine • Retail credit risk: we assessed how the whether further risks of material Note Group considers the impact of physical * Percentage of Group total income/assets over which we misstatement exist in those components. performed full scope audit or audit of account balances risks on the valuation of mortgage We consider the scope of our audit, as collateral. Specifically, we performed The impact of climate change on our audit communicated to the Board Audit data and analytic driven risk assessment Committee, to be an appropriate basis for In planning our audit, we have considered procedures to understand the potential our audit opinion. the potential impact of risks arising from impact of flooding and subsidence on climate change on the Group’s business The components within the scope of our the valuation of mortgage collateral and and its financial statements. The Group work accounted for the following made enquiries of management to has set out its ambition under the Paris percentages: understand how this is considered within Accord to be a net zero bank by 2050. their own collateral valuation process. Further information is provided in the • Corporate credit risk: we assessed how Group’s Environment, Social and the Group considers the impact of Governance report which has been climate risk on corporate counterparties incorporated into the 2022 Annual Report. through our individual loan assessments Climate change risks, opportunities and where, for performing counterparties, the Group’s own commitments and we assessed how climate change risk changing regulations could have a impacts certain counterparties within significant impact on the Group’s business the commercial bank, including the and operations. There is the possibility that impact on their credit rating as climate change risks, both physical and applicable. The focus of our procedures transitional, could affect financial was on certain counterparties who statement balances, through estimates operate in industries with greater such as credit risk and market risk. There is exposure to climate risk - the energy, enhanced narrative in the Annual Report transportation, materials and buildings, on climate matters. agriculture, food and forest product sectors. • Market risk: as part of our risk assessment, we incorporated a consideration of the climate change impact on unobservable inputs used in the valuation of certain financial instruments in elevated risk sectors including energy, metals and mining.

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

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 403 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) 4. Key audit matters What we mean Key Audit Matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: • the overall audit strategy; • the allocation of resources in the audit; • and directing the efforts of the engagement team. We include below the Key Audit Matters in decreasing order of audit significance together with our key audit procedures to address those matters and our results from those procedures. These matters were addressed, and our results are based on procedures undertaken for the purpose of our audit of the financial statements as a whole. We do not provide a separate opinion on these matters. 4.1 Impairment allowances on loans and advances at amortised cost, including off-balance sheet elements Financial Statement Elements FY22 FY21 Our assessment of risk vs FY21 Our results Impairment allowances on loans and advances £6.2bn £6.3bn FY22: & Our assessment is that the risk has increased since FY21. at amortised cost, including off-balance sheet Acceptable This is due to the increased macroeconomic uncertainty elements seen during the year considering rising interest rates and FY21: inflationary pressures. Acceptable Description of the Key Audit Matter Our response to the risk Our procedures to address the risk included: Subjective estimate The estimation of expected credit losses Risk assessment: We performed granular and detailed risk assessment procedures over the entirety (“ECL”) on financial instruments, involves of the loan and advances at amortised cost including off-balance sheet elements within the Group’s significant judgement and estimates. The key financial statements. As part of these risk assessment procedures, we identified which portfolios are areas where we identified greater levels of associated with a risk of material misstatement including those arising from significant judgements management judgement and therefore over the estimation of ECL either due to inputs, methods or assumptions. increased levels of audit focus in the Group’s Controls testing: We performed end to end process walkthroughs to identify the key systems, estimation of ECLs are: applications and controls used in the ECL processes. We tested the relevant manual, general IT and • Model estimations – Inherently judgemental application controls over key systems used in the ECL process. modelling and assumptions are used to Key aspects of our controls testing involved evaluating the design and implementation and testing the estimate ECL which involves determining operating effectiveness of the key controls over the: Probabilities of Default (“PD”), Loss Given Default (“LGD”), and Exposures at Default • completeness and accuracy of the key inputs into the IFRS 9 impairment models; (“EAD”). ECLs may be inappropriate if certain • application of the staging criteria; models or underlying assumptions do not • model validation, implementation and monitoring; accurately predict defaults or recoveries over time, become out of line with wider • authorisation and calculation of post model adjustments and management overlays; industry experience, or fail to reflect the • selection and implementation of economic variables and the controls over the economic scenario credit risk of financial assets. As a result, selection and probabilities; and certain IFRS 9 models and model • credit reviews that determine customer risk ratings used in the models for wholesale customers. assumptions are the key drivers of complexity and uncertainty in the Group’s Our credit risk modelling expertise: We involved our own credit risk modellers who assisted in the calculation of the ECL estimate. following: • Economic scenarios – IFRS 9 requires the • evaluating the Group’s impairment methodologies for compliance with IFRS 9; Group to measure ECLs on an unbiased • inspecting model code for the calculation of certain components of the ECL model to assess its forward-looking basis reflecting a range of consistency with the Group’s model methodology; future economic conditions. Significant management judgement is applied in • evaluating for a selection of models which were changed or updated during the year as to whether determining the forward-looking economic the changes (including the updated model code) were appropriate by assessing the updated model scenarios used as an input to calculate ECL, methodology against the applicable accounting standard; the probability weightings associated with • reperforming the calculation of certain adjustments to assess consistency with the qualitative the scenarios and the complexity of models adjustment methodologies; used to derive the probability weightings. • assessing and reperforming, for a selection of models, the reasonableness of the model predictions by comparing them against actual results and evaluating the resulting differences; • evaluating the model output for a selection of models by inspecting the corresponding model functionality and independently implementing the model by rebuilding the model code and comparing our independent output with management’s output; and • independently recalculating a selection of model assumptions using more recent data for certain portfolios. This is used to develop a range for ECL which is compared to management’s point estimate

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 404 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) Description of the Key Audit Matter Our response to the risk Our economics expertise: We involved our own economic specialists who assisted us in: ▪ Qualitative adjustments – Adjustments to the model-driven ECL results are raised by • assessing the reasonableness of the Group’s methodology and models for determining the management to address known impairment economic scenarios used and the probability weightings applied to them; model limitations or emerging trends as well • assessing key economic variables which included comparing samples of economic variables to as risks not captured by models. They external sources; represent approximately 8.5% of the ECL. These adjustments are inherently uncertain • assessing the overall reasonableness of the economic forecasts by comparing the Group’s and significant management judgement is forecasts to our own modelled forecasts; and involved in estimating certain post model • assessing the reasonableness of the Group’s qualitative adjustments by challenging key economic adjustments (“PMA’s”) and management assumptions applied in their calculation based on external sources. overlays. Other test of details: Key aspects of our testing in addition to those set out above involved: The effect of these matters is that, as part of our risk assessment, we determined that the • sample testing over key inputs into the ECL calculations; impairment of loans and advances to • selecting a sample of post model adjustments, considering the size and complexity of customers including off balance sheet management overlays, in order to assess the reasonableness of the adjustments by challenging elements has a high degree of estimation key assumptions, inspecting the calculation methodology and tracing a sample of the data used uncertainty, with a potential range of back to source data; and reasonable outcomes greater than our • selecting a sample of credit reviews in order to assess the reasonableness of customer risk ratings materiality for the financial statements as a by challenging key judgements and considering disconfirming or contradictory evidence. whole, and possibly many times that amount. The credit risk sections of the financial Assessing transparency: We assessed whether the disclosures appropriately disclose and address statements (pages 301-340) disclose the the uncertainty which exists when determining the ECL. In addition, we assessed whether the sensitivities estimated by the Group. disclosure of the key judgements and assumptions was sufficiently clear. Disclosure quality The disclosures regarding the Group’s application of IFRS 9 are key to explaining the key judgements and material inputs to the IFRS 9 ECL results. Communications with the Barclays PLC Areas of particular auditor judgement Further information in the Annual Report Board Audit Committee and Accounts: See the Board Audit We identified the following as the areas of Our discussions with and reporting to the Committee Report on page 173 for details particular auditor judgement: Board Audit Committee included: on how the Board Audit Committee • The appropriateness of the model considered impairment as an area of • The effectiveness of the control estimations and adjustments recorded focus, page 425 for the accounting policy environment operating over the to the model driven ECL calculations to on accounting for the impairment of calculation of the ECL provisions; reflect the current economic financial assets under IFRS 9, pages • The determination and utilisation of environment. 300-340 for the credit risk disclosures, and judgemental post model adjustments Our results page 436 for the financial disclosure note recognised; Based on the risk identified and our 8; Credit Impairment charges/(releases). • Model monitoring results and procedures performed we considered the adjustments made; impairment allowances on loans and • Management’s economic forecast and advances at amortised cost, including off- associated scenario probability weights; balance sheet elements and the related and disclosures to be acceptable (2021 result: acceptable). • The disclosures made to explain ECL, including explaining the resulting estimation uncertainty.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 405 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) 4.2 Valuation of financial instruments held at fair value Financial Statement Elements FY22 FY21 Our assessment of risk vs FY21 Our results Level 2 assets at fair value* (note 17) £595bn £533bn FY22: 1 Our assessment is that the risk is similar to FY21. Acceptable Level 2 liabilities at fair value* (note 17) £572bn £521bn FY21: Level 3 assets at fair value (note 17) £21bn £16bn Acceptable Level 3 liabilities at fair value (note 17) £7.5bn £6.5bn *The key audit matter identified relates to one derivatives portfolio within these balances, and xVA adjustments made to derivative valuations, both of which we considered to be harder-to-value. Description of the Key Audit Matter Our response to the risk Subjective valuation Our procedures to address the risk included: The fair value of the Group’s financial Risk assessment: We performed granular and detailed risk assessment procedures throughout the instruments is determined through the audit period over the entirety of the balances within the Group’s financial statements (i.e. all of the fair application of valuation techniques which can value financial instruments held by the Group). As part of these risk assessment procedures, we involve the exercise of significant judgement identified which portfolios and the associated valuation inputs have a risk of material misstatement by the Group in relation to the choice of the including those arising from significant judgements over valuation either due to unobservable inputs valuation models, pricing inputs and post- or complex models. model pricing adjustments, including fair value Control testing: We attended management’s valuation committee throughout the year and adjustments (FVAs) and credit and funding observed discussion and challenge over valuation themes including items related to the valuation of adjustments (together referred to as XVAs). certain difficult-to-value financial instruments recorded at fair value. Where significant pricing inputs are We performed end to end process walkthroughs to identify the key systems, applications and controls unobservable, management has limited used in the valuations processes. We tested the design and operating effectiveness of key controls reliable, relevant market data available in relating specifically to these portfolios. determining the fair value and hence estimation uncertainty can be high. These Key aspects of our controls testing involved evaluating the design and implementation and testing the financial instruments are classified as Level 3, operating effectiveness of the key controls over: with management having controls in place • independent price verification (IPV), performed by a control function, of key market pricing inputs, over the boundary between Level 2 and 3 including completeness of positions and valuation inputs subject to the IPV process; positions. Our significant audit risk is therefore primarily over significant Level 3 portfolios. • FVAs, including exit adjustments (to mark the portfolio to bid or offer prices), model shortcoming reserves to address model limitations and XVAs; In addition, there may also be valuation • the validation, completeness, implementation and usage of valuation models. This included complexity associated with Level 2 portfolios, controls over assessment of model limitations and assumptions; and specifically where valuation modelling techniques result in significant limitations or • the assessment of the observability of a product and their unobservable inputs. where there is greater uncertainty around the Our valuations expertise: We involved our own valuations specialists in the following: choice of an appropriate pricing methodology, and consequently more than one valuation • independently re-pricing a selection of fair value financial instruments and challenging methodology could be used for that product management on the valuations where they were outside our tolerance; and across the market. • challenging the appropriateness of significant models and methodologies used in calculating fair values, risk exposures and in calculating FVAs, including comparison to industry practice. We identified two areas of such complexity. Seeking contradictory evidence: For a selection of collateral disputes identified through The first a derivatives portfolio that we management’s control we challenged management’s valuation where significant fair value differences considered to be harder to value Level 2 due to were observable with the market participant on the other side of the trade. We also utilised collateral an element of modelling complexity dispute data to identify fair value financial instruments with significant fair value differences against associated with the product, and the second market counter parties and selected these to independently reprice. the XVA adjustments made to uncollateralised Inspection of movements: We inspected trading revenue arising on level 3 positions to assess and partially collateralised derivative whether material gains or losses generated were in line with the accounting standards. valuations. Historical comparison: We performed a retrospective review by inspecting significant gains and The effect of these matters is that, as part of losses on a selection of new fair value financial instruments, position exits, novations and our risk assessment, we determined that the restructurings throughout the audit period and evaluated whether these data points indicated subjective estimates in fair value elements of fair value not incorporated in the current valuation methodologies. We also inspected measurement of certain portfolios, and movements in unobservable inputs throughout the period to challenge whether any gain or loss harder-to-value Level 2 portfolios have a high generated was appropriate. degree of estimation uncertainty, with a potential range of reasonable outcomes Assessing transparency: For the Level 3 portfolios, we assessed the adequacy of the Group’s greater than our materiality for the financial financial statements disclosures in the context of the relevant accounting standards. statements as a whole, and possibly many times that amount. The financial statements (note 17) disclose the sensitivity estimated by the Group. Disclosure quality For the Level 3 portfolios, the disclosures are key to explaining the valuation techniques, key judgements, assumptions and material inputs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 406 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) Communications with the Barclays PLC Areas of particular auditor judgement Further information in the Annual Report Board Audit Committee and Accounts: See the Board Audit We identified the following as the areas of Our discussions with and reporting to the Committee Report on page 173 for details particular auditor judgement: Board Audit Committee included: on how the Board Audit Committee • The appropriateness of the valuation of considered Valuations as an area of focus, • Our approach to the audit of the fair harder to value Level 2 and Level 3 page 425 for the accounting policy on value of Level 3 and harder-to-value financial instruments, and particularly financial assets and liabilities, and page 456 Level 2 financial instrument assets and the selection of market data inputs and for the financial disclosure note 17; Fair liabilities. This included details of our risk valuation models. value of financial instruments. assessment, controls and substantive Our results procedures. Based on the risk identified and our • Our conclusions on the appropriateness procedures performed we consider the fair of the Group’s fair value methodology, value of Level 3 and harder-to-value Level models, pricing inputs, and fair value 2 financial instrument assets and liabilities adjustments. recognised and the related disclosures to be acceptable (2021 result: acceptable).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 407 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) 4.3 Valuation of the defined benefit pension obligation in respect of the UK Retirement Fund (‘UKRF’) Financial Statement Elements FY22 FY21 Our assessment of risk vs FY21 Our results Defined benefit obligation related to UKRF £20.0bn £30.9bn FY22: 1 Our assessment is that the risk is similar to FY21. (note 33) Acceptable FY21: Acceptable Description of the Key Audit Matter Our response to the risk Subjective valuation Our procedures to address the risk included: The valuation of the defined benefit obligation Control testing: We performed end to end process walkthroughs to identify the key systems, in respect of the UKRF is dependent on key applications and controls used in the defined benefit obligation process. We tested the design and actuarial assumptions, including the discount operating effectiveness of key controls relating to the process. These included: rates, retail price index (‘RPI’) and mortality • controls over management’s review of IAS19 assumptions including the discount rate, RPI and assumptions. Small changes to these mortality assumptions; assumptions may still have a significant impact • reconciliation controls of the IAS19 disclosures to underlying data. on the measurement of the defined benefit pension obligation. Evaluation of management’s expert: We evaluated the objectivity and competence of management’s actuarial expert involved in the valuation of the defined benefit pension obligation. As part of our risk assessment, we determined that the defined benefit pension obligation has Our actuarial expertise: we involved our own actuarial professionals in the following: a high degree of estimation uncertainty, with a • evaluating the judgements made and the appropriateness of methodologies used by management potential range of reasonable outcomes and management’s actuarial expert in determining the key actuarial assumptions; greater than our materiality for the financial statements, and possibly many times that • comparing the assumptions used by Barclays PLC to our independently compiled expected ranges amount. based on market observable indices and our market experience; • evaluating the output from the triennial funding valuation as at 30 September 2022 and the impact At 31 December 2022, the Group reported a on demographic assumptions and future funding requirements. gross defined benefit pension obligation of £20.0bn relating to UKRF. Assessing transparency: We assessed the adequacy of the Group’s financial statements disclosures in the context of the relevant accounting standards. Disclosure quality The disclosures regarding the Group’s application of IAS 19 (including risks, assumptions and sources of estimation uncertainty) are key to explaining the key judgements applied in the IAS 19 Defined Benefit Obligation calculation. Further information in the Annual Report Communications with the Barclays PLC Areas of particular auditor judgement and Accounts: See page 496 for the Board Audit Committee We identified the following as areas of accounting policy on defined benefit Our discussions with and reporting to the particular auditor judgement: schemes, and page 494 for the financial Board Audit Committee included: • Subjective and complex auditor disclosure note 33; Pensions and post- • Our definition of the Key Audit Matter judgement was required in evaluating retirement benefits. relating to the valuation of the defined the key actuarial assumptions used by benefit pension obligation including the the Group (including the discount rate, rationale for not including the valuation retail price index and mortality of pension assets in the key audit assumptions). matter. Our results • We also discussed our audit response to Based on the risk identified and our the key audit matter which included the procedures performed we consider the use of specialists to challenge key valuation of the defined benefit pension aspects of management’s actuarial obligation in respect of UKRF and the valuation. related disclosures to be acceptable (2021 result: acceptable).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 408 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) 4.4 User access management Financial Statement Elements Our assessment of risk vs FY21 Our results User access management has a potential impact FY22 and FY21: 1 Our assessment is the risk is similar to FY21 throughout the financial statements. Our testing did not identify unauthorised user activities in the systems relevant to financial reporting which would have required us to significantly expand the extent of our planned detailed testing. Description of the Key Audit Matter Our response to the risk Control Performance Our procedures to address the risk included: Operations across several countries support a wide Control testing: We tested the design, implementation and operating effectiveness of range of products and services resulting in a large and automated controls that support material balances in the financial statements. We also complex IT infrastructure relevant to the financial tested the design and operating effectiveness of the relevant preventative and detective reporting processes and related internal controls. general IT controls over user access management including: User access management controls are an integral part • authorising access rights for new joiners of the IT environment to ensure both system access • timely removal of user access rights and changes made to systems and data are authorised • logging and monitoring of user activities and appropriate. Our audit approach relies on the • privileged user access management and monitoring effectiveness of IT access management controls. Our audit procedures identified deficiencies in certain IT • developer access to transaction and balance information access controls for systems relevant to financial • segregation of duties; and reporting. More specifically, control deficiencies • re-certification of user access rights. continue to be identified around monitoring of activities performed by privileged users on infrastructure We performed procedures to assess whether additional detective compensating controls components. Management has ongoing programmes operate at the same level of precision to support our assessed risk of unauthorised activities to remediate the deficiencies. Since these deficiencies and we tested management’s detective compensating controls. were open during the year, we performed additional procedures to respond to the risk of unauthorised changes to automated controls over financial reporting, such as an assessment of compensating controls implemented by management. Communications with the Barclays PLC Areas of particular auditor judgement Our results Board Audit Committee We identified the following as the areas of Based on the risk identified and our Our discussions with and reporting to the particular auditor judgement: procedures performed, we did not identify Board Audit Committee included: unauthorised user activities in the systems • The Key Audit Matter relates to • Our response to the Key Audit Matter. relevant to financial reporting which would determining whether user access have required us to significantly expand management controls were designed the extent of our planned detailed testing. and implemented and operated effectively. Limited auditor judgement was required relative to the other Key Audit Matters which have been identified.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 409 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) 4.5 Recoverability of parent company’s investment in subsidiaries Financial Statement Elements FY22 FY21 Our assessment of risk vs FY21 Our results Investment in subsidiaries (Parent company £64.5bn £62.5bn FY22: 1 Our assessment is the risk is similar to FY21 accounts and note 42) Acceptable FY21: Impairment/ (Reversal of Impairment) of £0bn (£2.6bn) Acceptable investment in BBUK PLC (note 42) Description of the Key Audit Matter Our response to the risk Subjective assessment Our procedures to address the risk included: The Parent Company’s investment in subsidiaries may be Control testing: We performed end to end process walkthroughs to identify the key misstated if the carrying value of the investment in the systems, applications and controls used in the process. We tested the design and balance sheet is not supported by the future cash flows of operating effectiveness of the key controls relating to the process. These included the underlying business (the value in use (“VIU”)). controls over the identification of indicators of impairment or reversal of impairment and review of the key assumptions in determining the value in use. The calculation of VIU is dependent on certain key assumptions around the future cash flows which have been Test of details: We compared the carrying amount of each subsidiary to its draft balance forecasted using the Group’s Medium-Term Plan (‘MTP’), sheet to identify whether their net assets, being an approximation of their minimum the discount rates and the terminal growth rates. These recoverable amount, were in excess of their carrying amount we assessed for potential assumptions, which are judgemental, are derived from a indicators that investments in subsidiaries might be impaired. combination of management estimates, market data and Benchmarking assumptions: For the two largest subsidiaries (BB PLC and BBUK PLC) other information obtained from external sources. we compared key assumptions including those underlying certain estimated future cash flows, the discount rate and the terminal growth rate to externally derived data including These assumptions continued to be impacted by the economic uncertainty in the wider economic environment. analyst broker reports, peer bank data and projected economic growth. This has contributed to the complexity and subjectivity in Our valuations expertise: We involved our own valuations specialists to assist us in the the impairment assessment process, in addition to the following: complexities of the valuation of a Bank. • evaluating the appropriateness of the discount rate used by independently developing Due to the materiality of the investment in subsidiaries in discount rate ranges using external data sources and peer bank data; and the context of the Parent Company financial statements, • assessing whether the methodology over management’s calculation of the VIU is this is the area that had the greatest impact on the overall compliant with the requirements of the accounting standard. Parent Company audit. Our business understanding: We used our business understanding to evaluate the Our work focused on the Parent Company’s investment in reasonableness of certain key assumptions and considerations made when developing Barclays Bank UK PLC given the material size of the cost of the Group’s MTP estimated future cash flows. investment, the impairment loss recognised in 2020 and reversal of impairment in 2021, as well as Barclays Bank PLC Historical comparison: We performed a retrospective review by comparing the MTP due to the material size of the cost of investment. from previous years to actual results to assess the Group’s ability to accurately prepare cash flow forecasts at the individual subsidiary level. Communications with the Barclays Areas of particular auditor judgement Further information in the Annual Report Board Audit Committee and Accounts: See page 517 for the We identified the following as the areas of accounting policy on the recoverability of Our discussions with and reporting to the particular judgement: the investment in subsidiaries and page Board Audit Committee included: • We identified the reasonableness of the 517 for the financial disclosure note 42; • Our audit response to the Key Audit assumptions underlying the estimated Parent Company. Matter which included the use of future cash flows and appropriateness specialists to challenge key aspects of of the discount rate, which was used in management’s impairment assessment the impairment assessment, as the and the range of reasonably possible areas of particular judgement. alternatives for significant assumptions. Our results Based on our procedures performed, we consider the Parent Company’s investment in subsidiaries balance to be acceptable (2021 result: acceptable).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 410 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) Fraud risk communication journals posted and approved by the same 5. Our ability to detect individuals. We communicated identified fraud risks irregularities, and our response Link to key audit matters throughout the audit team and we Fraud - identifying and responding to remained alert to any indications of fraud Further details of the testing we perform risks of material misstatement due to throughout the audit. This included over the identified fraud risks for ECL and fraud communication from the Group to fair value of financial instruments are Fraud risk assessment component audit teams of relevant fraud included in the respective key audit To identify risks of material misstatement risks identified at the Group level. matters sections 4.1 and 4.2 of this report, due to fraud (“fraud risks”) we assessed as the procedures relating to those Fraud risks and our procedures to events or conditions that could indicate an estimates also address the risk of fraud. address them incentive or pressure to commit fraud or We identified five fraud risks which were Laws and regulations - identifying and provide an opportunity to commit fraud. In responding to risks of material communicated to component audit this risk assessment we considered the misstatement due to non-compliance teams. The nature of these fraud risks is following: with laws and regulations substantially unchanged from the prior • Our meetings throughout the year with Risk assessment year. The fraud risks we identified are set the Group Head of Risk, Group Head of out below: We identified areas of laws and regulations Compliance and Group Head of Legal that could reasonably be expected to have 1. IFRS 9 ECL: Judgemental qualitative and inspection of Barclays’ internal a material effect on the financial adjustments made to the ECL provision ethics and compliance reporting statements. For this risk assessment, summaries, including those concerning 2. Valuations - risk relating to matters considered include the following: investigations and regulatory unobservable pricing inputs used to • our general commercial and sector correspondence; price level 3 fair value instruments experience; • Enquiries of operational managers, 3. Revenue recognition: Cut-off of the • inquiries with the directors and other internal audit, and the Board Audit recognition of revenue from investment management (as required by auditing Committee and inspection of policy banking advisory fees standards); documentation as to the Group’s high- 4. Existence and accuracy of unconfirmed level policies and procedures relating to • inspection of the Group’s key regulatory over-the-counter bilateral derivatives and legal correspondence; • detecting and responding to the risks 5. The risk of management override of of fraud as well as whether they have • inspection of the policies and controls, common with all audits under knowledge of any actual, suspected or procedures regarding compliance with ISAs (UK). alleged fraud; and laws and regulations; As required by auditing standards and • the internal controls established to • relevant discussions with the Group’s taking into account our overall knowledge mitigate risks related to fraud, external legal counsel; of the control environment, we performed including the appropriateness and procedures to address the above risks, the • relevant discussions with the Group’s impact of changes made to these risk that Group and component key regulatory supervisors including the controls to facilitate remote/hybrid management may be in a position to make Prudential Regulation Authority, working; inappropriate accounting entries and the Financial Conduct Authority, Federal • The Group’s remuneration policies and risk of bias in accounting estimates and Reserve Board, Federal Deposit key drivers for remuneration and bonus judgements. Insurance Corporation and the Joint levels; Supervisory Team; and Our audit procedures included evaluating • Discussions among the engagement the design and implementation and • the Group’s own assessment of the team regarding how and where fraud operating effectiveness of relevant risks of non-compliance with laws and might occur in the financial statements internal controls, assessing significant regulations, and the internal controls and any potential indicators of fraud. accounting estimates for bias, as well as established to mitigate these. This The engagement team includes audit substantive procedures to address the assessment was considered and partners and staff who have extensive fraud risks. approved by the Board Audit experience of working with banks, and Committee. These procedures also included identifying this experience was relevant to the journal entries to test based on risk criteria discussion about where fraud risks may and comparing the identified entries to arise. The discussions also involved our supporting documentation. forensic specialists to assist us in Incorporating unpredictability into our identifying fraud risks based on audit: A requirement of the auditing discussions of the circumstances of the standards is that we undertake procedures Group and Company, including which are deliberately unexpected and consideration of fraudulent schemes could not have reasonably been predicted that had arisen in similar sectors and by Barclays’ management. As an example, industries. The forensic specialists we update our criteria for selecting journals participated in the initial fraud risk with a higher risk of management override assessment discussions and were for testing each year so that the selection criteria do not become predictable. This consulted as required where further year we added additional key words we guidance was deemed necessary. searched for in journal descriptions and also introduced new search criteria for

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 411 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) Our risk assessment also considered Most significant indirect law/ statements, as disclosed by management regulation areas instances of non-compliance with laws and in note 26, and which resulted in a restatement of the 2021 comparatives. regulations and enforcement actions Secondly, the Group is subject to many against the Group during the year and Our audit approach in respect of the over- other laws and regulations where the specifically those that could reasonably be issuance included the following consequences of non-compliance could expected to have a material effect on the procedures and we reported the results of have a material effect on amounts or financial statements. We considered these to the Board Audit Committee disclosures in the financial statements, for management’s assessment of how these instance through the imposition of fines, • Performance of risk assessment occurred, their assessment of whether the remediation payments or litigation, or the procedures which included inspecting risk could be more pervasive, and actions loss of the Group’s permission to operate correspondence with regulators and taken to remediate and prevent in countries where the non-adherence to making enquires of Barclays internal and recurrences or similar issues. laws could prevent trading in such external counsel. countries. As the Group operates in a highly regulated • Testing the design and operating environment, our assessment of risks of We identified the following areas as those effectiveness of the controls covering material misstatement also considered the most likely to have such an effect: the calculation and utilisation of the control environment, including the Group’s recission right provision and the • Specific aspects of regulatory capital higher-level procedures for complying with identification of debt-issuance and liquidity regulatory requirements. Our assessment programme issuance limits and the • Other banking laws and regulations, included inspection of key frameworks, monitoring of the utilisation against including securities issuance law policies and standards in place, these. • Customer conduct rules understanding and evaluating the role of • Performing substantive procedures the compliance function in establishing • Money laundering over the determination and utilisation of these and monitoring compliance and • Sanctions list and financial crime the recission right provision. testing of related controls around • Market abuse regulations whistleblowing and complaints. Context of the ability of the audit to detect fraud or breaches of law or • Certain aspects of company legislation Risk communication regulation recognising the financial and regulated Our identified laws and regulations risks nature of the Group’s activities. Owing to the inherent limitations of an was communicated throughout our team audit, there is an unavoidable risk that we Auditing standards limit the required audit and we remained alert to any indications of may not have detected some material procedures to identify non-compliance non-compliance throughout the audit. misstatements in the financial statements, with these laws and regulations to enquiry This included communication from the even though we have properly planned and of the directors and other management Group to component audit teams of performed our audit in accordance with and inspection of regulatory and legal relevant laws and regulations identified at auditing standards. For example, the correspondence, if any. If a breach of Group level. further removed non-compliance with operational regulations is not disclosed to Direct laws context and link to audit laws and regulations is from the events and us or evident from relevant The potential effect of these laws and transactions reflected in the financial correspondence, an audit will not detect regulations on the financial statements statements, the less likely the inherently that breach. varies considerably. limited procedures required by auditing Audit response standards would identify it. Firstly, the Group is subject to laws and In relation to the legal, competition and regulations that directly impact the In addition, as with any audit, there regulatory matters disclosed in note 26 we financial statements including: remained a higher risk of non-detection of performed audit procedures which fraud, as these may involve collusion, • financial reporting legislation (including included making enquiries of Barclays forgery, intentional omissions, related companies’ legislation); internal counsel and inspection of minutes misrepresentations, or the override of • distributable profits legislation; and of meetings and of regulatory internal controls. Our audit procedures are correspondence. For a subset of these • taxation legislation (direct and indirect). designed to detect material misstatement. matters which we deemed to be more We assessed the extent of compliance We are not responsible for preventing significant we also made enquiries of with these laws and regulations as part of non-compliance or fraud and cannot be external counsel and obtained legal our procedures on the related financial expected to detect non-compliance with confirmations from Barclays’ external statement items. all laws and regulations. counsel. In respect of regulatory matters relating to conduct risk as disclosed in note 41 our procedures included inspection of regulatory correspondence, independent enquiry of the Group’s main regulators and performing audit procedures to respond to risks of material misstatement identified in recognised conduct provisions. We also specifically considered the sale of securities in excess of the amount of securities registered with the SEC under Barclays Bank PLC’s shelf registration

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 412 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) Our materiality of £275m (2021: £230m) Audit misstatement posting threshold 6. Our determination of was determined by applying a percentage 2022: £13m 2021: £11m materiality to Profit Before Tax. When using a profit- What we mean The scope of our audit was influenced by related measure to determine overall our application of materiality. We set This is the amount below which identified materiality, KPMG’s approach is to apply a quantitative thresholds and overlay misstatements are considered to be percentage between 3% and 5% to the qualitative considerations to help us clearly trivial from a quantitative point of pre-tax measure. In setting overall determine the scope of our audit and the view. We may become aware of materiality, we applied a rate of 3.9% nature, timing and extent of our differences below this threshold which (2021: 3.8%) which is lower than the top procedures, and in evaluating the effect of could alter the nature, timing and scope of end of the allowable percentage range. misstatements, both individually and in the our audit procedures, for example if we Materiality for the Parent Company aggregate, on the financial statements as a identify smaller differences which are financial statements was set at £260m whole. indicators of fraud. (2021: £225m), determined with reference Materiality for the financial statements This is also the amount above which all to a benchmark of Parent Company net as a whole differences identified are communicated assets (of which it represents 0.5% (2021: 2022: £275m 2021: £230m to Barclays PLC’s Board Audit Committee. 0.4%)). What we mean Basis for determining the audit Performance materiality misstatement reporting threshold and A quantitative reference for the purpose of 2022: £179m 2021: £170m judgements applied planning and performing our audit What we mean The audit misstatement posting threshold Basis for determining materiality and has been set at a level of 5% (2021:5%) of Our procedures on individual account judgements applied materiality for Barclays PLC’s Group balances and disclosures were performed We have determined overall materiality for financial statements. We consider this to a lower threshold, performance the Barclays PLC Group to be £275m appropriate based on the number and materiality, so as to reduce, to an (FY21: £230m). nature of adjusted and unadjusted audit acceptable level, the risk that individually A key judgement in determining materiality differences (certain of which were immaterial misstatements in individual (and performance materiality) is the judgemental) identified during previous account balances add up to a material appropriate benchmark to select, based on audits. amount across the financial statements as our perception of the needs of a whole. We also report to the Audit Committee shareholders. We considered which any other identified misstatements that Basis for determining performance benchmarks and key performance warrant reporting on qualitative grounds. materiality and judgements applied indicators have the greatest bearing on We have considered performance shareholder decisions. materiality at a level of 65% (2021: 74%) of We determined that profit before tax materiality for Barclays PLC Group’s remains the key benchmark for the financial statements as a whole to be Barclays PLC Group. For FY21 we appropriate. We applied this percentage in normalised profit before tax downward by our determination of performance £2.3bn to adjust for the fact that ECL materiality based on the level of control charges were considered abnormally low deficiencies during the prior period. as the economy recovered from the The Group performance materiality was COVID-19 pandemic. For FY22 we did not set at £179m (2021: £170m) and £169m normalise profit before tax. This is (2021: £169m) for the parent company. reflective of the impact of COVID-19 on ECL being less pronounced in the current period. We determined that no adjustments to profit before tax were required for FY22. This change is a driver of the increase in materiality in 2022. The overall materiality for the Group of £275m (2021: £230m) compares as follows to the other main financial statement elements amounts in the table below. Total Revenue Total Assets Net Assets 2022 2021 2022 2021 2022 2021 £21,940m £1,384,285m £69,260m £70,041m £24,956m £1,513,699m 1.05% 0.02% 0.40% 0.33% Group Materiality as % of caption 1.10% 0.02%

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 413 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) Barclays PLC has centralised certain • The components in scope for Group 7. The scope of our audit Group-wide processes a shared service reporting purposes were either visited Group scope centre in India, the outputs of which are by the Group audit team to assess the What we mean included in the financial information of the audit risk and strategy, or such review How the Group audit team determined the reporting components it services and occurred remotely to assess the audit procedures to be performed across the therefore it is not a separate reporting risk and strategy. Conference meetings Group component. This service centre is subject and calls were also held with these to specified audit procedures, component auditors throughout the We have subjected four (2021: three) of predominantly the testing of transaction conduct of the audit. At these visits and the Group’s five components to full scope processing, reconciliations and review meetings, we reviewed the audits for Group purposes. Our approach controls. Additional procedures are components’ key working papers, the to scoping the four components was as performed at certain reporting findings reported to the Group team follows: for two components, Barclays components to address the audit risks not were discussed in more detail, and any Bank UK PLC and Barclays Execution covered by the work performed by the further work required by the Group team Services Limited Solus, we directly shared service centre. was then performed by the component instructed the component audit teams to auditors; conduct and report to us on full scope The Group audit team has also performed audits; the third full scope component, audit procedures on the following areas on • Instructions issued by the Group audit Barclays PLC Solus was subject to a full behalf of the components: team to component auditors setting out scope audit by us (2021: audit of account the significant areas to be covered, • Testing of IT systems and automated balance), and the fourth component, including the relevant key audit matters business controls; and Barclays Bank PLC Group, was subject to a identified above and the information to • Operating expenses and Group full scope audit by us and for which we be reported back to the Group audit recharges. specified seven (2021: seven) components team. For example, minimum criteria for within that group. The Group team communicated the high-risk journals were set by the Group results of these procedures to the team and applied consistently across We have subjected one (2021: two) of the component teams. the audit; Group’s components, Barclays PLC Subsidiaries, to audits of certain account In addition, we have performed Group level • Review and approval by the Group audit balances carried out by us, this component analysis on the remaining components to team of the component materiality for represents less than 1% of total Barclays determine whether further risks of material all components; PLC Group assets. misstatement exist in those components. • Risk assessment and challenge sessions Within the Barclays Bank PLC Group we We were able to rely upon the Group's with each component audit team were specified the components as follows; internal control over financial reporting in held in the planning, interim and final Barclays Bank Solus to be subject to a full all areas of our audit, and where our phases of the audit, led by the Group scope audit carried out by us; Barclays controls testing supported this approach, engagement partner and audit quality Bank Delaware and Barclays Capital Inc to which enabled us to reduce the scope of partner; be subject to a full scope audit as our substantive audit work. • Fortnightly video conferences with the instructed by us; and Barclays Bank Ireland Group audit team oversight partners and directors of the Group and PLC and Barclays Capital Securities component audit teams along with What we mean Limited to be subject to an audit of certain regular ad-hoc contact in person and via The extent of the Group audit team’s account balances as instructed by us. We video calls and email exchanges to involvement in component audits. have subjected Barclays Bank Subsidiaries challenge the component audit A hybrid communication and oversight and Barclays Bank Intermediate Holding approach and findings; strategy was implemented between the Companies (‘IHC’) Subsidiaries to an audit • Stuart Crisp, the Group Lead Group audit team and the components of certain account balances carried out by Engagement Partner (and Senior during the year as opposed to virtual us, these components represent less than Statutory Auditor), attended each Board oversight during the COVID 19 pandemic. 2% of total Barclays Bank PLC Group Audit Committee for Barclays Bank PLC assets. This included: and at least one Board Audit Committee The components within the scope of our • A virtual global planning conference led for each of Barclays Bank UK, the IHC work accounted for the percentages by the Group audit team to discuss key covering Barclays Capital Inc. and illustrated in section 2 – Group scope. audit risks and obtain input from Barclays Bank Delaware, and Barclays component teams and other The materiality levels applied to the audits Bank Europe; participating locations; of the components of Barclays PLC are as • Review of key working papers within follows: component audit files (both in person and using remote technology capabilities) to understand and Scope Number of components Range of materiality applied challenge the audit approach and audit Full scope audit 4 £100m - £170m findings of each component. Audit of account balance 1 £100m

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 414 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) Corporate governance disclosures Other matters on which we are required 8. Other information in the to report by exception Our responsibility annual report Our responsibility We are required to perform procedures to The directors are responsible for the other Under the Companies Act 2006, we are identify whether there is a material information presented in the Annual required to report to you if, in our opinion: inconsistency between the financial Report together with the financial statements and our audit knowledge, and: statements. Our opinion on the financial • adequate accounting records have not statements does not cover the other been kept by the Parent Company, or • the directors’ statement that they information and, accordingly, we do not returns adequate for our audit have not consider that the annual report and express an audit opinion or, except as been received from branches not visited financial statements taken as a whole is explicitly stated below, any form of by us; or fair, balanced and understandable, and assurance conclusion thereon. provides the information necessary for • the Parent Company financial shareholders to assess the Group’s All other information statements and the part of the position and performance, business Directors’ Remuneration Report to be Our responsibility model and strategy; audited are not in agreement with the Our responsibility is to read the other accounting records and returns; or • the section of the annual report information and, in doing so, consider describing the work of the Board Audit • certain disclosures of directors’ whether, based on our financial Committee, including the significant remuneration specified by law are not statements audit work, the information issues that the Board Audit Committee made; or therein is materially misstated or considered in relation to the financial inconsistent with the financial statements • we have not received all the information statements, and how these issues were or our audit knowledge. and explanations we require for our addressed; and audit. Our reporting • the section of the annual report that Based solely on that work we have not Our reporting describes the review of the identified material misstatements or We have nothing to report in this respect. effectiveness of the Group’s risk inconsistencies in the other information. management and internal control Strategic report and Directors’ report systems. Our responsibility and reporting Our reporting Based solely on our work on the other Based on those procedures, we have information described above we report to concluded that each of these disclosures you as follows: is materially consistent with the financial • we have not identified material statements and our audit knowledge. misstatements in the strategic report We are also required to review the part of and the Directors’ Report; Corporate Governance Statement relating • in our opinion the information given in to the Group’s compliance with the those reports for the financial year is provisions of the UK Corporate consistent with the financial statements; Governance Code specified by the Listing and Rules for our review. • in our opinion those reports have been We have nothing to report in this respect. prepared in accordance with the Companies Act 2006. Directors’ remuneration report Our responsibility We are required to form an opinion as to whether the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006. Our reporting In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 415 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) 9. Respective responsibilities 10. The purpose of our audit work and to whom we owe our Directors’ responsibilities responsibilities As explained more fully in their statement set out on page 152, the Directors are This report is made solely to the responsible for: the preparation of the Company’s members, as a body, in financial statements including being accordance with Chapter 3 of Part 16 of satisfied that they give a true and fair view; the Companies Act 2006 and the terms of such internal control as they determine is our engagement by the Company. Our necessary to enable the preparation of audit work has been undertaken so that we financial statements that are free from might state to the Company’s members material misstatement, whether due to those matters we are required to state to fraud or error; assessing the Group and them in an auditor’s report and the further Parent Company’s ability to continue as a matters we are required to state to them in going concern, disclosing, as applicable, accordance with the terms agreed with the matters related to going concern; and Company, and for no other purpose. To using the going concern basis of the fullest extent permitted by law, we do accounting unless they either intend to not accept or assume responsibility to liquidate the Group or the parent Company anyone other than the Company and the or to cease operations, or have no realistic Company’s members, as a body, for our alternative but to do so. audit work, for this report, or for the opinions we have formed. Auditor’s responsibilities Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance Stuart Crisp is a high level of assurance but does not (Senior Statutory Auditor) guarantee that an audit conducted in for and on behalf of KPMG LLP, Statutory accordance with ISAs (UK) will always Auditor detect a material misstatement when it exists. Misstatements can arise from fraud Chartered Accountants or error and are considered material if, 15 Canada Square individually or in aggregate, they could London reasonably be expected to influence the E14 5GL economic decisions of users taken on the 14 February 2023 basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. The Company is required to include these financial statements in an annual financial report prepared using the single electronic reporting format specified in the TD ESEF Regulation. The auditor’s report provides no assurance over whether the financial report has been prepared in accordance with that format.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 416 report information sustainability report Governance review review statements Annual Report 2022 Consolidated financial statements Consolidated income statement a Restated 2022 2021 2020 For the year ended 31 December Notes £m £m £m Interest and similar income 3 19,096 11,240 11,892 Interest and similar expense 3 (8,524) (3,167) (3,770) Net interest income 10,572 8,073 8,122 Fee and commission income 4 9,637 9,880 8,641 Fee and commission expense 4 (3,038) (2,206) (2,070) Net fee and commission income 6,599 7,674 6,571 Net trading income 5 8,049 5,794 7,029 Net investment income 6 (434) 311 13 Other income 170 88 31 Total income 24,956 21,940 21,766 Staff costs 31 (9,252) (8,511) (8,097) Infrastructure costs 7 (3,435) (3,614) (3,323) Administration and general expenses 7 (2,446) (2,137) (2,313) Litigation and conduct 7 (1,597) (397) (153) Operating expenses 7 (16,730) (14,659) (13,886) Share of post-tax results of associates and joint ventures 6 260 6 Profit on disposal of subsidiaries, associates and joint ventures — — 17 Profit before impairment 8,232 7,541 7,903 Credit impairment (charges)/releases 8 (1,220) 653 (4,838) Profit before tax 7,012 8,194 3,065 Taxation 9 (1,039) (1,138) (604) Profit after tax 5,973 7,056 2,461 Attributable to: Equity holders of the parent 5,023 6,205 1,526 Other equity instrument holders 905 804 857 Total equity holders of the parent 5,928 7,009 2,383 Non-controlling interests 30 45 47 78 Profit after tax 5,973 7,056 2,461 Earnings per share p p p Basic earnings per ordinary share 10 30.8 36.5 8.8 Diluted earnings per share 10 29.8 35.6 8.6 Note a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 417 report information sustainability report Governance review review statements Annual Report 2022 Consolidated financial statements (continued) Consolidated statement of comprehensive income a Restated 2022 2021 2020 For the year ended 31 December £m £m £m Profit after tax 5,973 7,056 2,461 Other comprehensive income/(loss) that may be recycled to profit or loss: Currency translation reserve b Currency translation differences 2,032 (131) (473) Fair value through other comprehensive income reserve movements relating to debt securities Net (losses)/gains from changes in fair value (7,516) (1,668) 2,902 Net losses/(gains) transferred to net profit on disposal 111 (305) (295) Net losses/(gains) relating to (releases of) impairment 9 (8) 2 Net gains/(losses) due to fair value hedging 5,452 1,354 (2,000) Tax 523 198 (155) Cash flow hedging reserve Net (losses)/gains from changes in fair value (9,052) (2,280) 1,299 Net losses/(gains) transferred to net profit 339 (1,173) (510) Tax 2,331 1,025 (216) Other — — 5 Other comprehensive (loss)/income that may be recycled to profit or loss (5,771) (2,988) 559 Other comprehensive income/(loss) not recycled to profit or loss: Retirement benefit remeasurements (754) 1,298 (80) Fair value through other comprehensive income reserve movements relating to equity instruments 228 141 (262) Own credit 2,092 (106) (810) Tax (156) (563) 198 Other comprehensive income/(loss) not recycled to profit or loss 1,410 770 (954) Other comprehensive loss for the year (4,361) (2,218) (395) Total comprehensive income for the year 1,612 4,838 2,066 Attributable to: Equity holders of the parent 1,567 4,791 1,988 Non-controlling interests 45 47 78 Total comprehensive income for the year 1,612 4,838 2,066 Notes a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. b Includes £1m gain (2021: £26m loss; 2020: £17m gain ) on recycling of currency translation differences to net profit.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 418 report information sustainability report Governance review review statements Annual Report 2022 Consolidated financial statements (continued) Consolidated balance sheet a Restated 2022 2021 As at 31 December Notes £m £m Assets Cash and balances at central banks 256,351 238,574 Cash collateral and settlement balances 112,597 92,542 Loans and advances at amortised cost 19 398,779 361,451 Reverse repurchase agreements and other similar secured lending 776 3,227 Trading portfolio assets 12 133,813 147,035 Financial assets at fair value through the income statement 13 213,568 191,972 Derivative financial instruments 14 302,380 262,572 Financial assets at fair value through other comprehensive income 15 65,062 61,753 Investments in associates and joint ventures 36 922 999 Goodwill and intangible assets 22 8,239 8,061 Property, plant and equipment 20 3,616 3,555 Current tax assets 385 261 Deferred tax assets 9 6,991 4,619 Retirement benefit assets 33 4,743 3,879 Other assets 5,477 3,785 Total assets 1,513,699 1,384,285 Liabilities Deposits at amortised cost 19 545,782 519,433 Cash collateral and settlement balances 96,927 79,371 Repurchase agreements and other similar secured borrowing 27,052 28,352 Debt securities in issue 112,881 98,867 Subordinated liabilities 27 11,423 12,759 Trading portfolio liabilities 12 72,924 54,169 Financial liabilities designated at fair value 16 271,637 250,960 Derivative financial instruments 14 289,620 256,883 Current tax liabilities 580 689 Deferred tax liabilities 9 16 37 Retirement benefit liabilities 33 264 311 Other liabilities 23 13,789 10,505 Provisions 24 1,544 1,908 Total liabilities 1,444,439 1,314,244 Equity Called up share capital and share premium 28 4,373 4,536 Other equity instruments 28 13,284 12,259 Other reserves 29 (2,192) 1,770 Retained earnings 52,827 50,487 Total equity excluding non-controlling interests 68,292 69,052 Non-controlling interests 30 968 989 Total equity 69,260 70,041 Total liabilities and equity 1,513,699 1,384,285 Note a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. The Board of Directors approved the financial statements on pages 416 to 522 on 14 February 2023. Nigel Higgins C.S. Venkatakrishnan Anna Cross Group Chairman Group Chief Executive Group Finance Director

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 419 report information sustainability report Governance review review statements Annual Report 2022 Consolidated financial statements (continued) Consolidated statement of changes in equity c c c Restated Restated Restated Total equity Called up share excluding non- capital and share Other equity Retained controlling Non-controlling a a b premium instruments Other reserves earnings interests interests Total equity £m £m £m £m £m £m £m Balance as at 1 January 2022 4,536 12,259 1,770 50,487 69,052 989 70,041 Profit after tax — 905 — 5,023 5,928 45 5,973 Currency translation movements — — 2,032 — 2,032 — 2,032 Fair value through other comprehensive income reserve — — (1,193) — (1,193) — (1,193) Cash flow hedges — — (6,382) — (6,382) — (6,382) Retirement benefit remeasurements — — — (281) (281) — (281) Own credit reserve — — 1,463 — 1,463 — 1,463 Total comprehensive income for the year — 905 (4,080) 4,742 1,567 45 1,612 Employee share schemes and hedging thereof 70 — — 476 546 — 546 Issue and redemption of other equity instruments — 1,032 — 28 1,060 (20) 1,040 Other equity instruments coupons paid — (905) — — (905) — (905) Disposal of Absa holding — — (84) 84 — — — Increase in treasury shares — — (248) — (248) — (248) Vesting of shares under employee share schemes — — 253 (485) (232) — (232) Dividends paid — — — (1,028) (1,028) (45) (1,073) Repurchase of shares (233) — 233 (1,508) (1,508) — (1,508) Own credit realisation — — (36) 36 — — — Other reserve movements — (7) — (5) (12) (1) (13) Balance as at 31 December 2022 4,373 13,284 (2,192) 52,827 68,292 968 69,260 Balance as at 1 January 2021 4,637 11,172 4,461 45,527 65,797 1,085 66,882 Profit after tax — 804 — 6,205 7,009 47 7,056 Currency translation movements — — (131) — (131) — (131) Fair value through other comprehensive income reserve — — (288) — (288) — (288) Cash flow hedges — — (2,428) — (2,428) — (2,428) Retirement benefit remeasurements — — — 643 643 — 643 Own credit reserve — — (14) — (14) — (14) Total comprehensive income for the year — 804 (2,861) 6,848 4,791 47 4,838 Employee share schemes and hedging thereof 60 — — 235 295 — 295 Issue and exchange of other equity instruments — 1,078 — 6 1,084 (75) 1,009 Other equity instruments coupons paid — (804) — — (804) — (804) Increase in treasury shares — — (240) — (240) — (240) Vesting of shares under employee share schemes — — 241 (410) (169) — (169) Dividends paid — — — (512) (512) (44) (556) Repurchase of shares (161) — 161 (1,200) (1,200) — (1,200) Other reserve movements — 9 8 (7) 10 (24) (14) Balance as at 31 December 2021 4,536 12,259 1,770 50,487 69,052 989 70,041 Notes a For further details refer to Note 28. b For further details refer to Note 29. c 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 420 report information sustainability report Governance review review statements Annual Report 2022 Consolidated financial statements (continued) Consolidated cash flow statement b Restated 2021 2020 2022 For the year ended 31 December Notes £m £m £m Reconciliation of profit before tax to net cash flows from operating activities: Profit before tax 7,012 8,194 3,065 Adjustment for non-cash items: Credit impairment (releases)/charges 1,220 (653) 4,838 Depreciation, amortisation and impairment of property, plant, equipment and intangibles 1,786 2,076 1,734 Other provisions, including pensions 1,724 468 1,365 Net loss on disposal of investments and property, plant and equipment 54 39 47 Other non-cash movements including exchange rate movements (13,298) 3,093 (2,977) Changes in operating assets and liabilities Net (increase)/decrease in cash collateral and settlement balances (881) 4,101 4,321 Net increase in loans and advances at amortised cost (24,949) (10,728) (4,365) Net decrease/(increase) in reverse repurchase agreements and other similar secured lending 2,451 5,804 (5,652) Net increase in deposits at amortised cost 26,349 38,397 65,249 Net increase/(decrease) in debt securities in issue 9,210 18,131 (6,309) Net (decrease)/increase in repurchase agreements and other similar secured borrowing (1,300) 14,178 (343) Net increase in derivative financial instruments (7,071) (4,018) (1,845) Net decrease/(increase) in trading portfolio assets 13,222 (19,085) (13,755) Net increase in trading portfolio liabilities 18,755 6,764 10,489 Net (increase)/decrease in financial assets and liabilities at fair value through the income statement (919) (15,626) 3,374 Net (increase)/decrease in other assets (3,497) (2,133) 452 Net increase/(decrease) in other liabilities 1,051 1,252 (1,500) Corporate income tax paid (688) (1,335) (683) Net cash from operating activities 30,231 48,919 57,505 Purchase of debt securities at amortised cost (27,731) (12,500) (14,671) Proceeds from redemption or sale of debt securities at amortised cost 14,277 3,757 8,480 Purchase of financial assets at fair value through other comprehensive income (69,380) (75,673) (91,744) Proceeds from sale or redemption of financial assets at fair value through other comprehensive income 62,821 89,342 80,895 Purchase of property, plant and equipment and intangibles (1,746) (1,720) (1,324) Disposal of subsidiaries and associates, net of cash disposed — 1,057 — Other cash flows associated with investing activities 86 7 (12) Net cash from investing activities (21,673) 4,270 (18,376) Dividends paid and other coupon payments on equity instruments (1,978) (1,360) (936) Issuance of subordinated liabilities 27 1,477 1,890 1,438 Redemption of subordinated liabilities 27 (2,679) (4,807) (3,258) Issue of shares and other equity instruments 3,205 1,118 1,165 Repurchase of shares and other equity instruments (3,655) (1,275) (1,056) a Issuance of debt securities 11,139 8,415 5,736 a Redemption of debt securities (6,335) (3,475) — Net purchase of treasury shares (478) (399) (357) Net cash from financing activities 696 107 2,732 Effect of exchange rates on cash and cash equivalents 10,330 (4,232) 1,668 Net increase/(decrease) in cash and cash equivalents 19,584 49,064 43,529 Cash and cash equivalents at beginning of year 259,206 210,142 166,613 Cash and cash equivalents at end of year 278,790 259,206 210,142 Cash and cash equivalents comprise: Cash and balances at central banks 256,351 238,574 191,127 Loans and advances to banks with original maturity less than three months 6,431 6,488 5,955 Cash collateral balances with central banks with original maturity less than three months 15,150 13,532 12,204 Treasury and other eligible bills with original maturity less than three months 858 612 856 Cash and cash equivalents at end of year 278,790 259,206 210,142 Notes a Issuance of debt securities and Redemption of debt securities included in financing activities relate to instruments that qualify as eligible liabilities and satisfy regulatory requirements for MREL instruments which came into effect during 2019. Refer to Note 1, paragraph 4(vi), for further details. b 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. Interest received was £40,975m (2021: £17,194m; 2020: £18,748m) and interest paid was £28,709m (2021: £8,063m; 2020: £9,577m). These amounts include interest paid and received arising from trading activities. Dividends received were £31m (2021: £20m; 2020: £37m). The Group is required to maintain balances with central banks and other regulatory authorities. These amounted to £3,457m (2021: £4,750m; 2020: £3,392m) and are included within the Cash and cash equivalents. For the purposes of the cash flow statement, cash comprises cash on hand and demand deposits and cash equivalents comprise highly liquid investments that are convertible into cash with an insignificant risk of changes in value with original maturities of three months or less. Repurchase and reverse repurchase agreements are not considered to be part of cash equivalents.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 421 report information sustainability report Governance review review statements Annual Report 2022 Parent company accounts Statement of comprehensive income 2022 2021 2020 For the year ended 31 December Notes £m £m £m 42 2,797 1,356 763 Dividends received from subsidiary Net interest (expense) (163) (161) (175) Other (expense)/ income 42 (654) 659 1,192 Impairment reversal/(charge) of investment in subsidiary 42 — 2,573 (2,573) Operating expenses (257) (160) (241) Profit/(loss) before tax 1,723 4,267 (1,034) Taxation 440 76 16 Profit/(loss) after tax 2,163 4,343 (1,018) Other comprehensive income — — — Total comprehensive income/(loss) 2,163 4,343 (1,018) Profit/(loss) after tax attributable to: Ordinary equity holders 1,258 3,539 (1,875) Other equity instrument holders 905 804 857 Profit/(loss) after tax 2,163 4,343 (1,018) Total comprehensive income/(loss) attributable to: Ordinary equity holders 1,258 3,539 (1,875) Other equity instrument holders 905 804 857 Total comprehensive income/(loss) 2,163 4,343 (1,018) For the year ended 31 December 2022, profit after tax was £2,163m (2021: £4,343m) and total comprehensive income was £2,163m (2021:£4,343m). The Company has 61 members of staff (2021: 65). Balance sheet 2022 2021 As at 31 December Notes £m £m Assets Investment in subsidiaries 42 64,544 62,528 Loans and advances to subsidiaries 23,628 22,072 42 Financial assets at fair value through the income statement 42 28,930 25,091 Derivative financial instruments 31 4 Other assets 402 68 Total assets 117,535 109,763 Liabilities Deposits at amortised cost 544 488 Debt securities in issue 42 24,086 25,658 Subordinated liabilities 42 11,230 9,301 Financial liabilities designated at fair value 42 22,971 16,319 Derivative financial instruments 42 906 43 Other liabilities 131 117 Total liabilities 59,868 51,926 Equity Called up share capital 28 3,968 4,188 Share premium account 28 405 348 Other equity instruments 28 13,250 12,241 Other reserves 788 555 Retained earnings 39,256 40,505 Total equity 57,667 57,837 Total liabilities and equity 117,535 109,763 The financial statements on pages 421 to 423 and the accompanying note on pages 517 to 518 were approved by the Board of Directors on 14 February 2023 and signed on its behalf by: Nigel Higgins C.S.Venkatakrishnan Anna Cross Group Chairman Group Chief Executive Group Finance Director

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 422 report information sustainability report Governance review review statements Annual Report 2022 Parent company accounts (continued) Statement of changes in equity Called up share capital and share Other equity premium instruments Other reserves Retained earnings Total equity Notes £m £m £m £m £m Balance as at 1 January 2022 4,536 12,241 555 40,505 57,837 Profit/(loss) after tax and other comprehensive income — 905 — 1,258 2,163 Issue of shares under employee share schemes 70 — — 34 104 Issue and exchange of other equity instruments — 1,009 — 17 1,026 Vesting of shares under employee share schemes — — — (22) (22) Dividends paid 11 — — — (1,028) (1,028) Other equity instruments coupons paid — (905) — — (905) Repurchase of shares (233) — 233 (1,508) (1,508) Balance as at 31 December 2022 4,373 13,250 788 39,256 57,667 Balance as at 1 January 2021 4,637 11,169 394 38,672 54,872 Profit/(loss) after tax and other comprehensive income — 804 — 3,539 4,343 Issue of shares under employee share schemes 60 — — 29 89 Issue and exchange of other equity instruments — 1,072 — — 1,072 Vesting of shares under employee share schemes — — — (18) (18) Dividends paid — — — (512) (512) Other equity instruments coupons paid — (804) — — (804) Repurchase of shares 11 (161) — 161 (1,200) (1,200) Other movements — — — (5) (5) Balance as at 31 December 2021 4,536 12,241 555 40,505 57,837

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 423 report information sustainability report Governance review review statements Annual Report 2022 Parent company accounts (continued) Cash flow statement 2022 2021 2020 For the year ended 31 December £m £m £m Reconciliation of profit before tax to net cash flows from operating activities: Profit/(loss) before tax 1,723 4,267 (1,034) Adjustment for non-cash items: Impairment (reversal)/charge of investment in subsidiary — (2,573) 2,573 Other non-cash items 868 383 528 Changes in operating assets and liabilities 1,037 17 — Net cash generated from operating activities 3,628 2,094 2,067 a Net increase in loans and advances to subsidiaries of the parent (5,087) (6,118) (4,732) Capital contribution to and investment in subsidiary (1,769) (1,083) (393) Net cash used in investing activities (6,856) (7,201) (5,125) Issue of shares and other equity instruments 3,180 1,114 1,175 Redemption of other equity instruments (2,097) — (898) b Net increase in debt securities in issue 4,813 4,939 3,720 Proceeds of borrowings and issuance of subordinated debt 1,000 1,579 158 Repurchase of shares (1,508) (1,200) — Dividends paid (1,028) (512) — Coupons paid on other equity instruments (905) (804) (857) Net cash generated from financing activities 3,455 5,116 3,298 Net increase in cash and cash equivalents 227 9 240 Cash and cash equivalents at beginning of year 249 240 — Cash and cash equivalents at end of year 476 249 240 Net cash generated from operating activities includes: Dividends received 2,797 1,356 763 Net interest (paid)/received (163) (161) (175) Notes a Includes financial assets at fair value through the income statement. b Includes financial liabilities designated at fair value. The Parent company’s principal activity is to hold the investment in its wholly-owned subsidiaries, Barclays Bank PLC, Barclays Bank UK PLC, Barclays Execution Services Limited and Barclays Principal Investments Limited. Dividends received are treated as operating income.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 424 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements For the year ended 31 December 2022 This section describes the Group’s significant policies and critical accounting estimates that relate to the financial statements and notes as a whole. If an accounting policy or a critical accounting estimate relates to a particular note, the accounting policy and/or critical accounting estimate is contained with the relevant note. 1 Significant accounting policies 1. Reporting entity Barclays PLC is a public company limited by shares registered in England under company number 48839, having its registered office at 1 Churchill Place, London, E14 5HP. These financial statements are prepared for Barclays PLC and its subsidiaries (the Group) under Section 399 of the Companies Act 2006. The Group is a major global financial services provider engaged in retail banking, credit cards, wholesale banking, investment banking, wealth management and investment management services. In addition, separate financial statements have been presented for the holding company. 2. Compliance with International Financial Reporting Standards The consolidated financial statements of the Group, and the separate financial statements of Barclays PLC, have been prepared in accordance with UK-adopted international accounting standards. The consolidated financial statements of the Group, and the separate financial statements of Barclays PLC, have also been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), including interpretations issued by the IFRS Interpretations Committee, as there are no applicable differences from IFRS as issued by the IASB for the periods presented. The principal accounting policies applied in the preparation of the consolidated and separate financial statements are set out below, and in the relevant notes to the financial statements. These policies have been consistently applied. 3. Basis of preparation The consolidated and separate financial statements have been prepared under the historical cost convention modified to include the fair valuation of investment property, and particular financial instruments, to the extent required or permitted under IFRS as set out in the relevant accounting policies. These financial statements are stated in millions of Pounds Sterling (£m), the functional currency of Barclays PLC. The financial statements have been prepared for Barclays PLC and its subsidiaries (the Group) under Section 399 of the Companies Act 2006 as applicable to companies using IFRS. The financial statements are prepared on a going concern basis, as the Board is satisfied that the Group and the parent company have the resources to continue in business for a period of at least 12 months from approval of the financial statements. In making this assessment, the Board has considered a wide range of information relating to present and future conditions and includes a review of a working capital report (WCR). The WCR is used by the Board to assess the future performance of the Group and that it has the resources in place that are required to meet its ongoing regulatory requirements. The assessment is based upon business plans which contain future projections of profitability taken from the Group’s medium-term plan as well as projections of regulatory capital requirements and business funding needs. The WCR also includes an assessment of the impact of internally generated stress testing scenarios on the liquidity and capital requirement forecasts. The stress tests used were based upon an assessment of reasonably possible downside economic scenarios that the Group could experience. Further details are set out in the Viability statement on page 58. The WCR showed that the Group had sufficient capital and liquidity in place to support its future business requirements and remained above its regulatory minimum requirements in the stress scenarios. Accordingly, the Directors concluded that there was a reasonable expectation that the Group and parent company has adequate resources to continue as a going concern for a period of at least 12 months from the date of approval of the financial statements. 4. Accounting policies The Group prepares financial statements in accordance with IFRS. The Group’s significant accounting policies relating to specific financial statement items, together with a description of the accounting estimates and judgements that were critical to preparing those items, are set out under the relevant notes. Accounting policies that affect the financial statements as a whole are set out below. (i) Consolidation The Group applies IFRS 10 Consolidated financial statements. The consolidated financial statements combine the financial statements of Barclays PLC and all its subsidiaries. Subsidiaries are entities over which Barclays PLC has control. The Group has control over another entity when the Group has all of the following: 1)power over the relevant activities of the investee, for example through voting or other rights 2)exposure to, or rights to, variable returns from its involvement with the investee, and 3)the ability to affect those returns through its power over the investee. The assessment of control is based on the consideration of all facts and circumstances. The Group reassesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Intra-group transactions and balances are eliminated on consolidation. Consistent accounting policies are used throughout the Group for the purposes of the consolidation. Changes in ownership interests in subsidiaries are accounted for as equity transactions if they occur after control has already been obtained and they do not result in loss of control.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 425 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 As the consolidated financial statements include partnerships where the Group member is a partner, advantage has been taken of the exemption under Regulation 7 of the Partnership (Accounts) Regulations 2008 with regard to preparing and filing of individual partnership financial statements. Details of the principal subsidiaries are given in Note 34. (ii) Foreign currency translation The Group applies IAS 21 The Effects of Changes in Foreign Exchange Rates. Transactions in foreign currencies are translated into Sterling at the rate ruling on the date of the transaction. Foreign currency monetary balances are translated into Sterling at the period end exchange rates. Exchange gains and losses on such balances are taken to the income statement. Non-monetary foreign currency balances in relation to items measured in terms of historical cost are carried at historical transaction date exchange rates. Non- monetary foreign currency balances in relation to items measured at fair value are translated using the exchange rate at the date when the fair value was measured. The Group’s foreign operations (including subsidiaries, joint ventures, associates and branches) based mainly outside the UK may have different functional currencies. The functional currency of an operation is the currency of the main economy to which it is exposed. Prior to consolidation (or equity accounting) the assets and liabilities of non-Sterling operations are translated at the period end exchange rate and items of income, expense and other comprehensive income are translated into Sterling at the rate on the date of the transactions. Exchange differences arising on the translation of foreign operations are included in currency translation reserves within equity. These are transferred to the income statement when the Group disposes of the entire interest in a foreign operation, when partial disposal results in the loss of control of an interest in a subsidiary, when an investment previously accounted for using the equity method is accounted for as a financial asset, or on the disposal of a foreign operation within a branch. (iii) Financial assets and liabilities The Group applies IFRS 9 Financial Instruments to the recognition, classification and measurement, and derecognition of financial assets and financial liabilities and the impairment of financial assets. The Group applies the requirements of IAS 39 Financial Instruments: Recognition and Measurement for hedge accounting purposes. Recognition The Group recognises financial assets and liabilities when it becomes a party to the terms of the contract. Trade date or settlement date accounting is applied depending on the classification of the financial asset. Classification and measurement Financial assets are classified on the basis of two criteria: i) the business model within which financial assets are managed, and ii) their contractual cash flow characteristics (whether the cash flows represent ‘solely payments of principal and interest’ (SPPI)). The Group assesses the business model criteria at a portfolio level. Information that is considered in determining the applicable business model includes (i) policies and objectives for the relevant portfolio, (ii) how the performance and risks of the portfolio are managed, evaluated and reported to management, and (iii) the frequency, volume and timing of sales in prior periods, sales expectation for future periods, and the reasons for such sales. The contractual cash flow characteristics of financial assets are assessed with reference to whether the cash flows represent SPPI. In assessing whether contractual cash flows are SPPI compliant, interest is defined as consideration primarily for the time value of money and the credit risk of the principal outstanding. The time value of money is defined as the element of interest that provides consideration only for the passage of time and not consideration for other risks or costs associated with holding the financial asset. Terms that could change the contractual cash flows so that it would not meet the condition for SPPI are considered, including: (i) contingent and leverage features, (ii) non-recourse arrangements and (iii) features that could modify the time value of money. Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and their contractual cash flows represent SPPI. Financial assets are measured at fair value through other comprehensive income if they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and their contractual cash flows represent SPPI. Other financial assets are measured at fair value through profit and loss. There is an option to make an irrevocable election on initial recognition for non-traded equity investments to be measured at fair value through other comprehensive income, in which case dividends are recognised in profit or loss, but gains or losses are not reclassified to profit or loss upon derecognition, and the impairment requirements of IFRS 9 do not apply. The accounting policy for each type of financial asset or liability is included within the relevant note for the item. The Group’s policies for determining the fair values of the assets and liabilities are set out in Note 17. Derecognition The Group derecognises a financial asset, or a portion of a financial asset, from its balance sheet where (i) the contractual rights to cash flows from the asset have expired, or (ii) the contractual rights to cash flows from the asset have been transferred (usually by sale) and with them either (a) substantially all the risks and rewards of the asset have been transferred, or (b) where neither substantially all the risks and reward have been transferred or retained, where control over the asset has been lost. Financial liabilities are derecognised when the liability has been settled, has expired or has been extinguished. An exchange of an existing financial liability for a new liability with the same lender on substantially different terms – generally a difference of 10% or more in the

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 426 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 present value of the cash flows or a substantive qualitative amendment – is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Transactions in which the Group transfers assets and liabilities, portions of them, or financial risks associated with them can be complex and it may not be obvious whether substantially all of the risks and rewards have been transferred. It is often necessary to perform a quantitative analysis. Such an analysis compares the Group’s exposure to variability in asset cash flows before the transfer with its retained exposure after the transfer. A cash flow analysis of this nature may require judgement. In particular, it is necessary to estimate the asset’s expected future cash flows as well as potential variability around this expectation. The method of estimating expected future cash flows depends on the nature of the asset, with market and market-implied data used to the greatest extent possible. The potential variability around this expectation is typically determined by stressing underlying parameters to create reasonable alternative upside and downside scenarios. Probabilities are then assigned to each scenario. Stressed parameters may include default rates, loss severity, or prepayment rates. Accounting for reverse repurchase and repurchase agreements including other similar lending and borrowing Reverse repurchase agreements (and stock borrowing or similar transactions) are a form of secured lending whereby the Group provides a loan or cash collateral in exchange for the transfer of collateral, generally in the form of marketable securities subject to an agreement to transfer the securities back at a fixed price in the future. Repurchase agreements are where the Group obtains such loans or cash collateral, in exchange for the transfer of collateral. The Group purchases (a reverse repurchase agreement) or borrows securities subject to a commitment to resell or return them. The securities are not included in the balance sheet as the Group does not acquire the risks and rewards of ownership. Consideration paid (or cash collateral provided) is accounted for as a loan asset at amortised cost, unless it is designated or mandatorily at fair value through profit and loss. The Group may also sell (a repurchase agreement) or lend securities subject to a commitment to repurchase or redeem them. The securities are retained on the balance sheet as the Group retains substantially all the risks and rewards of ownership. Consideration received (or cash collateral provided) is accounted for as a financial liability at amortised cost, unless it is designated at fair value through profit and loss. (iv) Issued debt and equity instruments The Group applies IAS 32, Financial Instruments: Presentation, to determine whether funding is either a financial liability (debt) or equity. Issued financial instruments or their components are classified as liabilities if the contractual arrangement results in the Group having an obligation to either deliver cash or another financial asset, or a variable number of equity shares, to the holder of the instrument. If this is not the case, the instrument is generally an equity instrument and the proceeds included in equity, net of transaction costs. Dividends and other returns to equity holders are recognised when paid or declared by the members at the Annual General Meeting and treated as a deduction from equity. Where issued financial instruments contain both liability and equity components, these are accounted for separately. The fair value of the debt is estimated first and the balance of the proceeds is included within equity. (v) Changes in the basis for determining contractual cash flows resulting from interest rate benchmark reform A change in the basis of determining the contractual cash flows of a financial instrument that is required by interest rate benchmark reform is accounted for by updating the effective interest rate, without the recognition of an immediate gain or loss. This practical expedient is only applied where (1) the change to the contractual cash flows is necessary as a direct consequence of the reform and (2) the new basis for determining the contractual cash flows is economically equivalent to the previous basis. For changes made in addition to those required by the interest rate benchmark reform, the practical expedient is applied first, after which the normal IFRS 9 requirements for modifications of financial instruments is applied. Refer to Note 14 for further details regarding hedge accounting policies in respect of interest rate benchmark reform. Refer to Note 41 for further disclosure related to interest rate benchmark reform. (vi) Cash flow statement Cash comprises cash on hand and balances at central banks. Cash equivalents comprise loans and advances to banks, cash collateral balances with central banks related to payment schemes and treasury and other eligible bills, all with original maturities of three months or less. Repurchase and reverse repurchase agreements are not considered to be part of cash equivalents. Investments in debt securities at amortised cost, presented within loans and advances on the balance sheet, are deemed to be investing activities for the purposes of the cash flow statement, except those instruments considered to be cash equivalents. Debt securities issued and redeemed are considered to be operating activities, except qualifying eligible liabilities that satisfy regulatory requirements for MREL instruments (or have previously satisfied these requirements since 2019 when they came into effect), which are considered to be financing activities. 5. New and amended standards and interpretations The accounting policies adopted have been consistently applied. Future accounting developments The following accounting standards have been issued by the IASB but are not yet effective:

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 427 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 IFRS 17 – Insurance contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. IFRS 17 will replace IFRS 4 Insurance Contracts that was issued in 2005. In June 2020, the IASB published amendments to IFRS 17, to include scope exclusion for certain credit card contracts and similar contracts that provide insurance coverage, the optional scope exclusion for loan contracts that transfer significant insurance risk, and the clarification that only financial guarantees issued are in scope of IFRS 9. IFRS 17 applies to all types of insurance contracts (i.e. life, non-life, direct insurance and reinsurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. A few scope exceptions will apply. IFRS 17 is effective for accounting periods beginning on or after 1 January 2023. The Group does not expect the impact of IFRS 17 to be material. Classification of Liabilities as Current or Non-current (Amendments to IAS 1) In January 2020 the IASB issued amendments to IAS 1 to clarify the presentation of liabilities in the balance sheet, with an effective date of 1 January 2024. The amendments clarify that a liability should be classified as non-current only if the entity has the right to defer settlement of the liability for at least 12 months after the reporting period, and that (i) the right to defer settlement must exist at the end of the reporting period and (ii) management’s intentions or expectations about whether it will exercise its right to defer settlement does not affect the classification. Further clarifications include how lending conditions affect classification and classification of liabilities the entity will or may settle by issuing its own equity instruments. In October 2022, the IASB also issued further amendments to IAS 1 to improve the information an entity provides when its right to defer settlement of a liability for at least twelve months is subject to compliance with covenants, and to respond to stakeholders’ concerns about the classification of such a liability as current or non-current. Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 In February 2021 the IASB issued amendments to IAS 1 that require entities to disclose their material accounting policies rather than their significant accounting policies. The amendments to IFRS Practice Statement 2 provide guidance on the concept of materiality and its application to accounting policy information. Under the amendments, accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments are effective for annual periods beginning on or after 1 January 2023, and will be applied from that date. Definition of Accounting Estimate - Amendments to IAS 8 In February 2021 the IASB issued amendments to IAS 8 that replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are clarified as monetary amounts in financial statements that are subject to measurement uncertainty. Where an entity's accounting policy requires an item to be measured at monetary amounts that cannot be observed directly, it should develop an accounting estimate to achieve this objective. The amendments are effective for annual periods beginning on or after 1 January 2023, and will be applied from that date. 6. Critical accounting estimates and judgements The preparation of financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise judgement in applying the accounting policies. The key areas involving a higher degree of judgement or complexity or areas where assumptions are significant to the consolidated and individual financial statements are highlighted under the relevant note. Critical accounting estimates and judgements are disclosed in: ▪ Credit impairment charges on page 436 ▪ Tax on page 441 ▪ Fair value of financial instruments on page 456 ▪ Goodwill and intangible assets on page 475 ▪ Pensions and post-retirement benefit obligations on page 496 ▪ Provisions including conduct and legal, competition and regulatory matters on page 477. 7. Other disclosures To improve transparency and ease of reference, by concentrating related information in one place, certain disclosures required under IFRS have been included within the Risk review section as follows: ▪ Credit risk on pages 289 to 291 and 300 to 340 ▪ Market risk on page 291 and 341 to 342 ▪ Treasury and Capital risk – liquidity on page 292 and 344 to 354 ▪ Treasury and Capital risk – capital on page 292 and 355 to 362. These disclosures are covered by the Audit opinion (included on pages 399 to 415) where referenced as audited.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 428 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 1a Restatement of financial statements The comparatives in these consolidated financial statements for the year ended 31 December 2022 (the financial statements) have been restated to reflect both a provision and contingent liability disclosure in respect of the impact of an over-issuance of securities (the Over-issuance of Securities) in excess of the maximum aggregate offering price registered under Barclays Bank PLC’s shelf registration statement on Form F-3, as declared effective by the SEC in August 2019 (2019 F-3) and Barclays Bank PLC’s prior shelf registration statement (Predecessor Shelf). The comparatives have been restated so as to align them to those reported in the restated 2021 financial statements included in the Company’s amended Annual Report on Form 20-F for the year ended 31 December 2021. Due to an SEC settlement order in 2017, at the time the 2019 F-3 was filed and the Predecessor Shelf was amended, Barclays Bank PLC had ceased to be a “well-known seasoned issuer” (or WKSI) and had become an “ineligible issuer”, as defined in Rule 405 under the Securities Act of 1933, as amended (Securities Act), thus being required to register upfront a fixed amount of securities with the SEC. In March 2022, Barclays Bank PLC became aware that it had issued securities in the US materially in excess of the amount it had registered with the SEC under the 2019 F-3. Subsequently, Barclays Bank PLC became aware that securities had also been issued in excess of the amount it had registered with the SEC under the Predecessor Shelf. The securities that were over-issued included structured notes and exchange traded notes (ETNs). Certain offers and sales of these securities were not made in compliance with the Securities Act, giving rise to rights of rescission for certain purchasers of the securities. Under Section 12(a)(1) of the Securities Act, certain purchasers of unregistered securities have a right to recover, upon the tender of such security, the consideration paid for such security with interest, less the amount of any income received, or damages if the purchaser sold the securities at a loss (the Rescission Price). As a result, Barclays Bank PLC made a rescission offer to eligible purchasers of the relevant affected securities at the Rescission Price (the Rescission Offer). A portion of the costs associated with the rights of rescission of certain investors was attributable to Barclays PLC’s financial statements for the year ended 31 December 2021. Accordingly, the comparatives in these financial statements have been restated. The restatement impacts the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, and the consolidated cash flow statement for the year ended 31 December 2021. There was no material impact on Barclays PLC’s previously reported financial statements for the year ended 31 December 2020. The impact of the restatement is as follows: • Litigation and conduct charges in the income statement for the year ended 31 December 2021 were underreported by £220m, increasing total operating expenses from a reported £14,439m to £14,659m. • Provisions on the consolidated balance sheet have increased from a reported £1,688m to £1,908m. • The taxation charge in the income statement has reduced by £50m from a reported £1,188m to £1,138m with a corresponding decrease in current tax liabilities on the balance sheet from £739m to £689m. • The overall impact of the restatement has been to reduce reported profit after tax from £7,226m to £7,056m. • The consolidated financial statements have been restated for the increased provision of £220m and lower tax charge of £50m. • The contractual maturity profile of financial liabilities designated at fair value has been restated to reflect the impact of the Over- issuance of Securities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 429 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 The table below reflects each of the consolidated financial statement line items that were affected by the restatement: For the year ended 31 December 2021 As reported Restatement As restated Impact on the consolidated income statement £m £m £m Litigation and conduct (177) (220) (397) Operating expenses (14,439) (220) (14,659) Profit before tax 8,414 (220) 8,194 Taxation (1,188) 50 (1,138) Profit after tax 7,226 (170) 7,056 Impact on the consolidated statement of comprehensive income Profit after tax 7,226 (170) 7,056 Total comprehensive income for the year 5,008 (170) 4,838 Impact on the consolidated balance sheet Liabilities Current tax liabilities (739) 50 (689) Provisions (1,688) (220) (1,908) Total liabilities (1,314,074) (170) (1,314,244) Equity Retained earnings 50,657 (170) 50,487 Total equity 70,211 (170) 70,041 Impact on the consolidated cash flow statement Profit before tax 8,414 (220) 8,194 Adjustments for non-cash items: Other provisions, including pensions 248 220 468 The financial impact of the restatement has been reflected in Notes 2, 7, 9, 10 and 24. Further, Note 26 (Legal, competition and regulatory matters) has also been amended to reflect the Over-issuance of Securities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 430 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 Financial performance and returns The notes included in this section focus on the results and performance of the Group. Information on the income generated, expenditure incurred, segmental performance, tax, earnings per share and dividends are included here. For further detail on performance, see income statement commentary within Financial Review (unaudited). 2 Segmental reporting Presentation of segmental reporting The Group’s segmental reporting is in accordance with IFRS 8 Operating Segments. Operating segments are reported in a manner consistent with the internal reporting provided to the Executive Committee, which is responsible for allocating resources and assessing performance of the operating segments, and has been identified as the chief operating decision maker. All transactions between business segments are conducted on an arm’s-length basis, with intra-segment revenue and costs being eliminated in Head Office. Income and expenses directly associated with each segment are included in determining business segment performance. The Group is a British universal bank diversified by business, geography and income type, serving consumer and wholesale customers and clients globally and for segmental reporting purposes it defines its two operating divisions as Barclays UK and Barclays International. ▪ Barclays UK consists of our UK Personal Banking, UK Business Banking and Barclaycard Consumer UK businesses. These businesses are carried on by our UK ring-fenced bank (Barclays Bank UK PLC) and certain other entities within the Group. ▪ Barclays International consists of our Corporate and Investment Bank and Consumer, Cards and Payments businesses. These businesses are carried on by our non ring-fenced bank (Barclays Bank PLC) and its subsidiaries, and certain other entities within the Group. The below table also includes Head Office which comprises head office and legacy businesses, as well as the FTEs employed by Barclays Execution Services. Analysis of results by business Barclays Barclays UK International Head Office Group results £m £m £m £m For the year ended 31 December 2022 Total income 7,259 17,867 (170) 24,956 Operating costs (4,260) (10,361) (336) (14,957) UK bank levy (26) (133) (17) (176) Litigation and conduct (41) (1,503) (53) (1,597) Total operating expenses (4,327) (11,997) (406) (16,730) a Other net income/(expenses) — 28 (22) 6 Profit/(loss) before impairment 2,932 5,898 (598) 8,232 Credit impairment charges (286) (933) (1) (1,220) Profit/(loss) before tax 2,646 4,965 (599) 7,012 Total assets (£bn) 313.2 1,181.3 19.2 1,513.7 Number of employees (full time equivalent) 6,200 10,900 70,300 87,400 Average number of employees (full time equivalent) 83,900 Note a Other net income/(expenses) represents the share of post-tax results of associates and joint ventures, profit on disposal of subsidiaries, associates and joint ventures, and gains on acquisitions.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 431 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 a a Restated Restated Barclays Barclays UK International Head Office Group results £m £m £m £m For the year ended 31 December 2021 Total income 6,536 15,665 (261) 21,940 Operating costs (4,357) (9,076) (659) (14,092) UK bank levy (36) (134) — (170) Litigation and conduct (37) (345) (15) (397) Total operating expenses (4,430) (9,555) (674) (14,659) b Other net income — 40 220 260 Profit/(loss) before impairment 2,106 6,150 (715) 7,541 Credit impairment releases 365 288 — 653 Profit/(loss) before tax 2,471 6,438 (715) 8,194 Total assets (£bn) 321.2 1,044.1 19.0 1,384.3 c Number of employees (full time equivalent) 7,100 10,400 64,100 81,600 Average number of employees (full time equivalent) 82,900 Notes a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. b Other net income represents the share of post-tax results of associates and joint ventures, profit on disposal of subsidiaries, associates and joint ventures, and gains on acquisitions. c Barclays Execution Services Employees are reported within the Head Office Segment. Barclays UK transformed its business in 2021 and consolidated all Customer Care employees, who directly serve customers, into Barclays Execution Services to improve customer service and experience. Costs are recharged, while FTEs are reported within Head Office, as at 31 December 2021 10,700 FTEs were impacted by the move from Barclays UK to Head Office. The 2020 comparative figures have not been restated. Barclays Head a a Barclays UK International Office Group results £m £m £m £m For the year ended 31 December 2020 Total income 6,347 15,921 (502) 21,766 Operating costs (4,270) (8,765) (399) (13,434) UK bank levy (50) (240) (9) (299) Litigation and conduct (32) (48) (73) (153) Total operating expenses (4,352) (9,053) (481) (13,886) b Other net income/(expenses) 18 28 (23) 23 Profit/(loss) before impairment 2,013 6,896 (1,006) 7,903 Credit impairment charges (1,467) (3,280) (91) (4,838) Profit/(loss) before tax 546 3,616 (1,097) 3,065 Total assets (£bn) 289.1 1,041.8 18.6 1,349.5 Number of employees (full time equivalent) 21,300 10,800 50,900 83,000 Average number of employees (full time equivalent) 81,800 Notes a On 1 April 2020, assets of £2.2bn relating to the Barclays Partner Finance business were moved from Barclays International to Barclays UK, with net operating income of £19m and loss before tax of £5m subsequently recognised in Barclays UK for the rest of 2020. b Other net income/(expenses) represents the share of post-tax results of associates and joint ventures, profit (or loss) on disposal of subsidiaries, associates and joint ventures, and gains on acquisitions. a Income by geographic region 2022 2021 2020 For the year ended 31 December £m £m £m United Kingdom 14,908 11,256 11,211 Europe 2,321 2,372 2,059 Americas 6,353 7,199 7,425 Africa and Middle East 63 45 36 Asia 1,311 1,068 1,035 Total 24,956 21,940 21,766 a Income from individual countries which represent more than 5% of total income . 2022 2021 2020 For the year ended 31 December £m £m £m United Kingdom 14,908 11,256 11,211 United States 6,176 7,048 7,318 Note a The geographical analysis is based on the location of the office where the transactions are recorded.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 432 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 3 Net interest income Accounting for interest income and expenses Interest income on loans and advances at amortised cost and financial assets at fair value through other comprehensive income, and interest expense on financial liabilities held at amortised cost, are calculated using the effective interest method which allocates interest, and direct and incremental fees and costs, over the expected lives of the assets and liabilities. The effective interest method requires the Group to estimate future cash flows, in some cases based on its experience of customers’ behaviour, considering all contractual terms of the financial instrument, as well as the expected lives of the assets and liabilities. The Group incurs certain costs to originate credit card balances with the most significant being co-brand partner fees. To the extent these costs are attributed to customers that continuously carry an outstanding balance (revolvers) and incremental to the origination of credit card balances, they are capitalised and subsequently included within the calculation of the effective interest rate. They are amortised to interest income over the period of expected repayment of the originated balance. Costs attributed to customers that settle their outstanding balances each period (transactors) are deferred on the balance sheet as a cost of obtaining a contract and amortised to fee and commission expense over the life of the customer relationship (refer to Note 4). There are no other individual estimates involved in the calculation of effective interest rates that are material to the results or financial position. 2022 2021 2020 £m £m £m Cash and balances at central banks 2,916 184 275 Loans and advances at amortised cost 13,376 9,540 10,180 Fair value through other comprehensive income 1,963 550 776 Negative interest on liabilities 208 248 68 Other 633 718 593 Interest and similar income 19,096 11,240 11,892 Deposits at amortised cost (3,573) (561) (1,030) Debt securities in issue (3,240) (1,340) (1,360) Subordinated liabilities (530) (507) (670) Negative interest on assets (208) (374) (344) Other (973) (385) (366) Interest and similar expense (8,524) (3,167) (3,770) Net interest income 10,572 8,073 8,122 Interest and similar income presented above represents interest revenue calculated using the effective interest method. Costs to originate credit card balances of £786m (2021: £652m; 2020: £698m) have been amortised to interest and similar income during the year. Interest and similar income includes £59m (2021: £37m; 2020: £40m) accrued on impaired loans. Other interest expense includes £56m (2021: £64m; 2020:£70m) relating to IFRS 16 lease interest expenses.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 433 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 4 Net fee and commission income Accounting for net fee and commission income The Group applies IFRS 15 Revenue from Contracts with Customers. IFRS 15 establishes a five-step model governing revenue recognition. The five-step model requires the Group to (i) identify the contract with the customer, (ii) identify each of the performance obligations included in the contract, (iii) determine the amount of consideration in the contract, (iv) allocate the consideration to each of the identified performance obligations and (v) recognise revenue as each performance obligation is satisfied. The Group recognises fee and commission income charged for services provided by the Group as and when performance obligations are satisfied, for example, on completion of the underlying transaction. Where the contractual arrangements also result in the Group recognising financial instruments in scope of IFRS 9, such financial instruments are initially recognised at fair value in accordance with IFRS 9 before applying the provisions of IFRS 15. Fee and commission income is disaggregated below by fee types that reflect the nature of the services offered across the Group and operating segments, in accordance with IFRS 15. The below table includes a total for fees in scope of IFRS 15. Refer to Note 2 for more detailed information about operating segments. 2022 Barclays Barclays UK International Head Office Total £m £m £m £m Fee type Transactional 1,084 3,256 — 4,340 Advisory 161 964 — 1,125 Brokerage and execution 256 1,521 — 1,777 Underwriting and syndication — 2,037 — 2,037 Other 59 153 3 215 Total revenue from contracts with customers 1,560 7,931 3 9,494 Other non-contract fee income — 143 — 143 Fee and commission income 1,560 8,074 3 9,637 Fee and commission expense (319) (2,713) (6) (3,038) Net fee and commission income 1,241 5,361 (3) 6,599 2021 Barclays Barclays UK International Head Office Total £m £m £m £m Fee type Transactional 871 2,572 — 3,443 Advisory 172 1,096 1 1,269 Brokerage and execution 228 1,135 — 1,363 Underwriting and syndication — 3,425 — 3,425 Other 74 182 3 259 Total revenue from contracts with customers 1,345 8,410 4 9,759 Other non-contract fee income — 121 — 121 Fee and commission income 1,345 8,531 4 9,880 Fee and commission expense (218) (1,983) (5) (2,206) Net fee and commission income 1,127 6,548 (1) 7,674 2020 Barclays Barclays UK International Head Office Total £m £m £m £m Fee type Transactional 810 2,353 — 3,163 Advisory 159 693 2 854 Brokerage and execution 212 1,173 — 1,385 Underwriting and syndication — 2,867 — 2,867 Other 71 173 9 253 Total revenue from contracts with customers 1,252 7,259 11 8,522 Other non-contract fee income — 119 — 119 Fee and commission income 1,252 7,378 11 8,641 Fee and commission expense (308) (1,754) (8) (2,070) Net fee and commission income 944 5,624 3 6,571

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 434 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 Fee types Transactional Transactional fees are service charges on deposit accounts, cash management services fees and transactional processing fees. These include interchange and merchant fee income generated from credit and bank card usage. Transaction and processing fees are recognised at the point in time the transaction occurs or service is performed. Interchange and merchant fees are recognised upon settlement of the card transaction payment. The Group incurs certain card-related costs including those related to cardholder reward programmes and payments to co-brand partners. Cardholder reward programme costs related to customers that settle their outstanding balance each period (transactors) are expensed when incurred and presented in fee and commission expense, while costs related to customers that continuously carry an outstanding balance (revolvers) are included in the effective interest rate of the receivable (refer to Note 3). Payments to partners for new cardholder account originations related to transactor accounts are deferred as costs to obtain a contract under IFRS 15, while costs related to revolver accounts are included in the effective interest rate of the receivable (refer to Note 3). Those costs deferred under IFRS 15 are capitalised and amortised over the estimated life of the customer relationship. Payments to co-brand partners based on revenue sharing to the extent the revenue share relates to "revolvers" are included in the effective interest rate of the receivable and to the extent revenue share relates to “transactors” it must be presented in fee and commission expense. Payments based on profitability are presented in fee and commission expense. Advisory Advisory fees are generated from wealth management services and investment banking advisory services related to mergers, acquisitions and financial restructurings. Wealth management advisory fees are earned over the period the services are provided and are generally recognised quarterly when the market value of client assets is determined. Investment banking advisory fees are recognised at the point in time when the services related to the transaction have been completed under the terms of the engagement. Investment banking advisory costs are recognised as incurred in fee and commission expense if direct and incremental to the advisory services or are otherwise recognised in operating expenses. Brokerage and execution Brokerage and execution fees are earned for executing client transactions with various exchanges and over-the-counter markets and assisting clients in clearing transactions and facilitating foreign exchange transactions for spot/forward contracts. Brokerage and execution fees are recognised at the point in time the associated service has been completed which is generally the trade date of the transaction. Underwriting and syndication Underwriting and syndication fees are earned for the distribution of client equity or debt securities and the arrangement and administration of a loan syndication. This includes commitment fees to provide loan financing. Underwriting fees are generally recognised on trade date if there is no remaining contingency, such as the transaction being conditional on the closing of an acquisition or another transaction. Underwriting costs are deferred and recognised in fee and commission expense when the associated underwriting fees are recorded. Syndication fees are earned for arranging and administering a loan syndication; however, the associated fee may be subject to variability until the loan has been syndicated to other syndicate members or until other contingencies have been resolved and therefore the fee revenue is deferred until the uncertainty is resolved. Included in the underwriting and syndication fees are loan commitment fees, when the drawdown is not probable, which are not presented as part of the carrying value of the loan in accordance with IFRS 9. Such commitment fees are recognised over time through to the contractual maturity of the commitment. Contract assets and contract liabilities The Group had no material contract assets or contract liabilities as at 31 December 2022 (2021: £nil; 2020: £nil). Impairment of fee receivables and contract assets During 2022, there have been no material impairments recognised in relation to fees receivable and contract assets (2021: £nil; 2020: £nil). Fees in relation to transactional business can be added to outstanding customer balances. These amounts may be subsequently impaired as part of the overall loans and advances balance. Remaining performance obligations The Group applies the practical expedient of IFRS 15 and does not disclose information about remaining performance obligations that have original expected durations of one year or less or because the Group has a right to consideration that corresponds directly with the value of the service provided to the client or customer. Costs incurred in obtaining or fulfilling a contract The Group expects that incremental costs of obtaining a contract such as success fee and commission fees paid are recoverable and therefore capitalise such contract costs. Capitalised contract costs net of amortisation as at 31 December 2022 are £198m (2021: £154m; 2020: £141m). Capitalised contract costs are amortised over the customer relationship period depending on the transfer of services to which the asset pertains. In 2022, the amount of amortisation was £47m (2021: £36m; 2020: £36m) and there was no impairment loss recognised in connection with the capitalised contract costs (2021: £nil; 2020: £nil).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 435 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 5 Net trading income Accounting for net trading income In accordance with IFRS 9, trading positions are held at fair value, and the resulting gains and losses are included in net trading income, together with interest and dividends arising from long and short positions and funding costs relating to trading activities. Income arises from both the sale and purchase of trading positions, margins which are achieved through market-making and customer business and from changes in fair value caused by movements in interest and exchange rates, equity prices and other market variables. Gains or losses on non-trading financial instruments designated or mandatorily at fair value with changes in fair value recognised in the income statement are included in net trading income where the business model is to manage assets and liabilities on a fair value basis which includes use of derivatives or where an instrument is designated at fair value to eliminate an accounting mismatch and the related instrument's gain and losses are reported in net trading income. 2022 2021 2020 £m £m £m Net gains on financial instruments held for trading 6,021 3,992 5,342 Net gains on financial instruments designated at fair value 508 692 700 Net gains on financial instruments mandatorily at fair value 1,520 1,110 987 Net trading income 8,049 5,794 7,029 6 Net investment income Accounting for net investment income/(expense) Dividends are recognised when the right to receive the dividend has been established. Other accounting policies relating to net investment income are set out in Note 13 and Note 15. 2022 2021 2020 £m £m £m Net (losses)/gains from financial instruments mandatorily at fair value (51) 73 (50) Net (losses)/gains from disposal of debt instruments at fair value through other comprehensive income (111) 305 295 Net (losses)/gains from disposal of financial assets and liabilities measured at amortised cost (18) 114 (61) Dividend income 31 20 37 a Net losses on other investments (285) (201) (208) Net investment (expense)/income (434) 311 13 Note a Included within the 2022 balance are losses of £74m on sale arising from disposal of Barclays’ equity stake in Absa Group Limited (Absa) in April 2022 and September 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 436 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 7 Operating expenses a Restated 2022 2021 2020 £m £m £m Infrastructure costs Property and equipment 1,649 1,538 1,590 Depreciation and amortisation 1,723 1,673 1,539 b Impairment of property, equipment and intangible assets 63 403 194 Total infrastructure costs 3,435 3,614 3,323 Administration and general expenses Consultancy, legal and professional fees 669 610 567 Marketing and advertising 500 399 330 UK bank levy 176 170 299 Other administration and general expenses 1,101 958 1,117 Total administration and general expenses 2,446 2,137 2,313 Staff costs 9,252 8,511 8,097 Litigation and conduct 1,597 397 153 Operating expenses 16,730 14,659 13,886 Notes a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. b In 2021, Impairment of property, equipment and intangible assets included £266m relating to structural cost actions taken as part of the real estate review. For further details on staff costs including accounting policies, refer to Note 31. 8 Credit impairment charges/(releases) Accounting for the impairment of financial assets Impairment In accordance with IFRS 9, the Group is required to recognise expected credit losses (ECLs) based on unbiased forward-looking information for all financial assets at amortised cost, lease receivables, debt financial assets at fair value through other comprehensive income, loan commitments and financial guarantee contracts. At the reporting date, an allowance (or provision for loan commitments and financial guarantees) is required for the 12 month (Stage 1) ECLs. If the credit risk has significantly increased since initial recognition (Stage 2), or if the financial instrument is credit impaired (Stage 3), an allowance (or provision) should be recognised for the lifetime ECLs. The measurement of ECL is calculated using three main components: (i) probability of default (PD) (ii) loss given default (LGD) and (iii) the exposure at default (EAD). The 12 month and lifetime ECLs are calculated by multiplying the respective PD, LGD and the EAD. The 12 month and lifetime PDs represent the PD occurring over the next 12 months and the remaining maturity of the instrument respectively. The EAD represents the expected balance at default, taking into account the repayment of principal and interest from the balance sheet date to the default event together with any expected drawdowns of committed facilities. The LGD represents expected losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral value at the time it is expected to be realised and the time value of money. Expected credit loss measurement is based on the ability of borrowers to make payments as they fall due. The Group also considers sector-specific risks and whether additional adjustments are required in the measurement of ECL. Credit risk may be impacted by climate considerations for certain sectors, such as oil and gas. Determining a significant increase in credit risk since initial recognition: The Group assesses when a significant increase in credit risk has occurred based on quantitative and qualitative assessments. The credit risk of an exposure is considered to have significantly increased when: i) Quantitative test The annualised lifetime PD has increased by more than an agreed threshold relative to the equivalent at origination. PD deterioration thresholds are defined as percentage increases, and are set at an origination score band and segment level to ensure the test appropriately captures significant increases in credit risk at all risk levels. Generally, thresholds are inversely correlated to the origination PD, i.e. as the origination PD increases, the threshold value reduces. The assessment of the point at which a PD increase is deemed ‘significant’, is based upon analysis of the portfolio’s risk profile against a common set of principles and performance metrics (consistent across both retail and wholesale businesses), incorporating expert credit judgement where appropriate. Application of quantitative PD floors does not represent the use of the low credit risk exemption as exposures can separately move into Stage 2 via the qualitative route described below. Wholesale assets apply a 100% increase in PD and 0.2% PD floor to determine a significant increase in credit risk. Retail assets apply bespoke relative increase and absolute PD thresholds based on product type and origination PD. Thresholds are subject to maximums defined by Group policy and typically apply minimum relative thresholds of 50-100% and a maximum relative threshold of 400%.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 437 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 For existing/historical exposures where origination point scores or data are no longer available or do not represent a comparable estimate of lifetime PD, a proxy origination score is defined, based upon: • back-population of the approved lifetime PD score either to origination date or, where this is not feasible, as far back as possible (subject to a data start point no later than 1 January 2015); or • use of available historical account performance data and other customer information, to derive a comparable ‘proxy’ estimation of origination PD. ii) Qualitative test This is relevant for accounts that meet the portfolio’s ‘high risk’ criteria and are subject to closer credit monitoring. High risk customers may not be in arrears but either through an event or an observed behaviour exhibit credit distress. The definition and assessment of high risk includes as wide a range of information as reasonably available, such as industry and Group-wide customer level data, including but not limited to bureau scores and high consumer indebtedness index, wherever possible or relevant. Whilst the high risk populations applied for IFRS 9 impairment purposes are aligned with risk management processes, they are also regularly reviewed and validated to ensure that they capture any incremental segments where there is evidence of credit deterioration. iii) Backstop criteria This is relevant for accounts that are more than 30 calendar days past due. The 30 days past due criteria is a backstop rather than a primary driver of moving exposures into Stage 2. The criteria for determining a significant increase in credit risk for assets with bullet repayments follows the same principle as all other assets, i.e. quantitative, qualitative and backstop tests are all applied. Exposures will move back to Stage 1 once they no longer meet the criteria for a significant increase in credit risk. This means that, at a minimum all payments must be up-to-date, the PD deterioration test is no longer met, the account is no longer classified as high risk, and the customer has evidenced an ability to maintain future payments. Exposures are only removed from Stage 3 and reassigned to Stage 2 once the original default trigger event no longer applies. Exposures being removed from Stage 3 must no longer qualify as credit impaired, and: a) the obligor will also have demonstrated consistently good payment behaviour over a 12-month period, by making all consecutive contractual payments due and, for forborne exposures, the relevant EBA defined probationary period has also been successfully completed or; b)(for non-forborne exposures) the performance conditions are defined and approved within an appropriately sanctioned restructure plan, including 12 months’ payment history have been met. Management overlays and other exceptions to model outputs are applied only if consistent with the objective of identifying significant increases in credit risk. Forward-looking information The measurement of ECL involves complexity and judgement, including estimation of PD, LGD, a range of unbiased future economic scenarios, estimation of expected lives (where contractual life is not appropriate), and estimation of EAD and assessing significant increases in credit risk. Credit losses are the expected cash shortfalls from what is contractually due over the expected life of the financial instrument, discounted at the original effective interest rate (EIR). ECLs are the unbiased probability-weighted credit losses determined by evaluating a range of possible outcomes and considering future economic conditions. The Group uses a five-scenario model to calculate ECL. An external consensus forecast is assembled from key sources, including HM Treasury (short and medium-term forecasts) and Bloomberg (based on median of economic forecasts), which forms the Baseline scenario. In addition, two adverse scenarios (Downside 1 and Downside 2) and two favourable scenarios (Upside 1 and Upside 2) are derived, with associated probability weightings. The adverse scenarios are calibrated to a broadly similar severity to the Group's internal stress tests and stress scenarios provided by regulators whilst also considering IFRS 9 specific sensitivities and non-linearity. The favourable scenarios are designed to reflect plausible upside risks to the Baseline scenario which are broadly consistent with the economic narrative approved by the Senior Scenario Review Committee. All scenarios are regenerated at a minimum semi-annually. The scenarios include key economic variables (including GDP, unemployment, House Price Index (HPI) and base rates in both the UK and US markets) and expanded variables using statistical models based on historical correlations. The upside and downside shocks are designed to evolve over a five-year stress horizon, with all five scenarios converging to a steady state after approximately seven years. The methodology for estimating probability weights for each of the scenarios involves a comparison of the distribution of key historical UK and US macroeconomic variables against the forecast paths of the five scenarios. The methodology works such that the baseline (reflecting current consensus outlook) has the highest weight and the weights of adverse and favourable scenarios depend on the deviation from the baseline; the further from the baseline, the smaller the weight. A single set of five scenarios is used across all portfolios and all five weights are normalised to equate to 100%. The same scenarios used in the estimation of expected credit losses are also used to inform Barclays' internal planning. The impacts across the portfolios are different because of the sensitivities of each of the portfolios to specific macroeconomic variables, for example, mortgages are highly sensitive to house prices, and credit cards and unsecured consumer loans are highly sensitive to unemployment. Definition of default, credit impaired assets, write-offs, and interest income recognition The definition of default for the purpose of determining ECLs, and for internal credit risk management purposes, has been aligned to the Regulatory Capital CRR Article 178 definition of default, to maintain a consistent approach with IFRS 9 and associated regulatory guidance. The Regulatory Capital CRR Article 178 definition of default considers indicators that the debtor is unlikely to pay, includes

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 438 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 exposures in forbearance and is no later than when the exposure is more than 90 days past due. When exposures are identified as credit impaired at the time when they are purchased or originated interest income is calculated on the carrying value net of the impairment allowance. An asset is considered credit impaired when one or more events occur that have a detrimental impact on the estimated future cash flows of the financial asset. This comprises assets defined as defaulted and other individually assessed exposures where imminent default or actual loss is identified. Uncollectable loans are written off against the related allowance for loan impairment on completion of the Group’s internal processes and when all reasonably expected recoverable amounts have been collected. Subsequent recoveries of amounts previously written off are credited to the income statement. The timing and extent of write-offs may involve some element of subjective judgement. Nevertheless, a write-off will often be prompted by a specific event, such as the inception of insolvency proceedings or other formal recovery action, which makes it possible to establish that some or the entire advance is beyond realistic prospect of recovery. Accounting for purchased financial guarantee contracts The Group may enter into a financial guarantee contract which requires the issuer of such contract to reimburse the Group for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. For these separate financial guarantee contracts, the Group recognises a reimbursement asset aligned with the recognition of the underlying ECLs, if it is considered virtually certain that a reimbursement would be received if the specified debtor fails to make payment when due in accordance with the terms of the debt instrument. Loan modifications and renegotiations that are not credit-impaired When modification of a loan agreement occurs as a result of commercial restructuring activity rather than due to the credit risk of the borrower, an assessment must be performed to determine whether the terms of the new agreement are substantially different from the terms of the existing agreement. This assessment considers both the change in cash flows arising from the modified terms as well as the change in overall instrument risk profile. In respect of payment holidays granted to borrowers which are not due to forbearance, if the revised cash flows on a present value basis (based on the original EIR) are not substantially different from the original cash flows, the loan is not considered to be substantially modified. Where terms are substantially different, the existing loan will be derecognised and a new loan will be recognised at fair value, with any difference in valuation recognised immediately within the income statement, subject to observability criteria. Where terms are not substantially different, the loan carrying value will be adjusted to reflect the present value of modified cash flows discounted at the original EIR, with any resulting gain or loss recognised immediately within the income statement as a modification gain or loss. Note 1 sets out details for changes in the basis of determining the contractual cash flows of a financial instrument that are required by interest rate benchmark reform. Expected life Lifetime ECLs must be measured over the expected life. This is restricted to the maximum contractual life and takes into account expected prepayment, extension, call and similar options. The exceptions are certain revolving financial instruments, such as credit cards and bank overdrafts, that include both a drawn and an undrawn component where the entity’s contractual ability to demand repayment and cancel the undrawn commitment does not limit the entity’s exposure to credit losses to the contractual notice period. For revolving facilities, expected life is analytically derived to reflect the behavioural life of the asset, i.e. the full period over which the business expects to be exposed to credit risk. Behavioural life is typically based upon historical analysis of the average time to default, closure or withdrawal of facility. Where data is insufficient or analysis inconclusive, an additional ‘maturity factor’ may be incorporated to reflect the full estimated life of the exposures, based upon experienced judgement and/or peer analysis. Potential future modifications of contracts are not taken into account when determining the expected life or EAD until they occur. Discounting ECLs are discounted at the EIR at initial recognition or an approximation thereof and consistent with income recognition. For loan commitments the EIR is the rate that is expected to apply when the loan is drawn down and a financial asset is recognised. Issued financial guarantee contracts are discounted at the risk free rate. Lease receivables are discounted at the rate implicit in the lease. For variable/floating rate financial assets, the spot rate at the reporting date is used and projections of changes in the variable rate over the expected life are not made to estimate future interest cash flows or for discounting. Modelling techniques The regulatory Basel Committee of Banking Supervisors (BCBS) ECL calculations are leveraged for IFRS 9 modelling but adjusted for key differences which include: ▪ BCBS requires 12 month through the economic cycle losses whereas IFRS 9 requires 12 months or lifetime point in time losses based on conditions at the reporting date and multiple forecasts of the future economic conditions over the expected lives; ▪ IFRS 9 models do not include certain conservative BCBS model floors and downturn assessments and require discounting to the reporting date at the original EIR rather than using the cost of capital to the date of default; ▪ Management adjustments are made to modelled output to account for situations where known or expected risk factors and information have not been considered in the modelling process, for example forecast economic scenarios for uncertain political events; and ▪ ECL is measured at the individual financial instrument level, however a collective approach where financial instruments with similar risk characteristics are grouped together, with apportionment to individual financial instruments, is used where effects can only be seen at a collective level, for example for forward-looking information.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 439 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 For the IFRS 9 impairment assessment, the Group’s risk models are used to determine the PD, LGD and EAD. For Stage 2 and 3, the Group applies lifetime PDs but uses 12 month PDs for Stage 1. The ECL drivers of PD, EAD and LGD are modelled at an account level which considers vintage, among other credit factors. Also, the assessment of significant increase in credit risk is based on the initial lifetime PD curve, which accounts for the different credit risk underwritten over time. Forbearance A financial asset is subject to forbearance when it is modified due to the credit distress of the borrower. A modification made to the terms of an asset due to forbearance will typically be assessed as a non-substantial modification that does not result in derecognition of the original loan, except in circumstances where debt is exchanged for equity. Both performing and non-performing forbearance assets are classified as Stage 3 except where it is established that the concession granted has not resulted in diminished financial obligation and that no other regulatory definition of default criteria have been triggered, in which case the asset is classified as Stage 2. The minimum probationary period for non-performing forbearance is 12 months and for performing forbearance, 24 months. Hence, a minimum of 36 months is required for non-performing forbearance to move out of a forborne state. No financial instrument in forbearance can transfer back to Stage 1 until all of the Stage 2 thresholds are no longer met and can only move out of Stage 3 when no longer credit impaired. Critical accounting estimates and judgements IFRS 9 impairment involves several important areas of judgement, including estimating forward-looking modelled parameters (PD, LGD and EAD), developing a range of unbiased future economic scenarios, estimating expected lives and assessing significant increases in credit risk, based on the Group’s experience of managing credit risk. The determination of expected life is most material for Barclays' credit card portfolios which is obtained via behavioural life analysis to materially capture the risk of these facilities. Within the retail and small businesses portfolios, which comprise large numbers of small homogenous assets with similar risk characteristics where credit scoring techniques are generally used, the impairment allowance is calculated using forward-looking modelled parameters which are typically run at account level. There are many models in use, each tailored to a product, line of business or customer category. Judgement and knowledge is needed in selecting the statistical methods to use when the models are developed or revised. Management adjustments to impairment models, which contain an element of subjectivity, are applied in order to factor in certain conditions or changes in policy that are not fully incorporated into the impairment models, or to reflect additional facts and circumstances at the period end. Management adjustments are reviewed and incorporated into future model development where appropriate. The impairment charge reflected in the income statement for retail portfolios is £976m (2021: £289m release; 2020: £3,116m charge) of the total impairment charge on loans and advances and off-balance sheet loan commitments and financial guarantee contracts. For individually significant assets in Stage 3, impairment allowances are calculated on an individual basis and all relevant considerations that have a bearing on the expected future cash flows across a range of economic scenarios are taken into account. These considerations can be particularly subjective and can include the business prospects for the customer, the realisable value of collateral, the Group’s position relative to other claimants, the reliability of customer information and the likely cost and duration of the work-out process. The level of the impairment allowance is the difference between the value of the discounted expected future cash flows (discounted at the loan’s original effective interest rate), and its carrying amount. Furthermore, judgements change with time as new information becomes available or as work-out strategies evolve, resulting in frequent revisions to the impairment allowance as individual decisions are taken. Changes in these estimates would result in a change in the allowances and have a direct impact on the impairment charge. The impairment charge reflected in the financial statements in relation to wholesale portfolios is £207m (2021: £346m release; 2020: £1,569m charge) of the total impairment charge on loans and advances and off-balance sheet loan commitments and financial guarantee contracts. Further information on impairment allowances, impairment charges, management adjustments to models for impairment, measurement uncertainty, sensitivity analysis and related credit information is set out within the Credit risk performance section. Temporary adjustments to calculated IFRS9 impairment allowances may be applied in limited circumstances to account for situations where known or expected risk factors or information have not been considered in the ECL assessment or modelling process. For further information please see page 315 in the Credit risk performance section. Information about the potential impact of the physical and transition risks of climate change on borrowers is considered, taking into account reasonable and supportable information to make accounting judgements and estimates. Climate change is inherently of a long-term nature, with significant levels of uncertainty, and consequently requires judgement in determining the possible impact in the next financial year, if any.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 440 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 2022 2021 2020 Recoveries Recoveries Recoveries Impairment and Impairment and Impairment and Charges/ reimburse- Charges/ reimburse- Charges/ reimburse- a (Releases) ments Total (Releases) ments Total (Releases) ments Total £m £m £m £m £m £m £m £m £m Loans and advances at amortised cost 1,428 (263) 1,165 (361) 240 (121) 4,308 (399) 3,909 Off-balance sheet loan commitments and financial guarantee contracts 18 — 18 (514) — (514) 776 — 776 Total 1,446 (263) 1,183 (875) 240 (635) 5,084 (399) 4,685 Cash collateral and settlement balances 28 — 28 (4) — (4) 2 — 2 Financial instruments at fair value through other comprehensive income 9 9 (8) — (8) 2 — 2 Other financial assets measured at cost — — — (6) — (6) 149 — 149 Credit impairment charges/ (releases) 1,483 (263) 1,220 (893) 240 (653) 5,237 (399) 4,838 Note a Recoveries and reimbursements includes a net increase in amounts recoverable from financial guarantee contracts held with third parties of £199m (2021: £(306)m) and cash recoveries of previously written off amounts of £64m (2021: £66m). Write-offs that can be subjected to enforcement activity The contractual amount outstanding on financial assets that were written off during the year and that can still be subjected to enforcement activity is £949m (2021: £1,190m). This is lower than the write-offs presented in the movement in gross exposures and impairment allowance table due to assets sold during the year post write-offs and post write-off recoveries. Modification of financial assets Financial assets of £2,412m (2021: £3,446m), with a loss allowance measured at an amount equal to lifetime ECL, were subject to non- substantial modification during the year, with a resulting loss of £4m (2021: £11m). The gross carrying amount of financial assets subject to non-substantial modification for which the loss allowance has changed to a 12 month ECL during the year amounts to £1,077m (2021: £419m). 9 Tax Accounting for income taxes The Group applies IAS 12 Income Taxes in accounting for taxes on income. Income tax payable on taxable profits (current tax) is recognised as an expense in the periods in which the profits arise. Withholding taxes are also treated as income taxes. Income tax recoverable on tax allowable losses is recognised as a current tax asset only to the extent that it is regarded as recoverable by offsetting against taxable profits arising in the current or prior periods. Current tax is measured using tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised. Deferred tax liabilities are recognised for all taxable temporary differences except for the initial recognition of goodwill. Deferred tax is not recognised where the temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. Deferred tax is determined using tax rates and legislation enacted or substantively enacted by the balance sheet date which are expected to apply when the deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets and liabilities are only offset when there is both a legal right to set-off and an intention to settle on a net basis. The Group considers an uncertain tax position to exist when it considers that ultimately, in the future, the amount of profit subject to tax may be greater than the amount initially reflected in the Group’s tax returns. The Group accounts for provisions in respect of uncertain tax positions in two different ways. A current tax provision is recognised when it is considered probable that the outcome of a review by a tax authority of an uncertain tax position will alter the amount of cash tax due to, or from, a tax authority in the future. From recognition, the current tax provision is then measured at the amount the Group ultimately expects to pay the tax authority to resolve the position. The accrual of interest and penalty amounts in respect of uncertain income tax positions is recognised as an expense within profit before tax. Deferred tax provisions are adjustments made to the carrying value of deferred tax assets in respect of uncertain tax positions. A deferred tax provision is recognised when it is considered probable that the outcome of a review by a tax authority of an uncertain tax position will result in a reduction in the carrying value of the deferred tax asset. From recognition of a provision, measurement of the underlying deferred tax asset is adjusted to take into account the expected impact of resolving the uncertain tax position on the loss or temporary difference giving rise to the deferred tax asset. The approach taken to measurement takes account of whether the uncertain tax position is a discrete position that will be reviewed by the tax authority in isolation from any other position, or one of a number of issues which are expected to be reviewed together

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 441 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 concurrently and resolved simultaneously with a tax authority. The Group’s measurement of provisions is based upon its best estimate of the additional profit that will become subject to tax. For a discrete position, consideration is given only to the merits of that position. Where a number of issues are expected to be reviewed and resolved together, the Group will take into account not only the merits of its position in respect of each particular issue but also the overall level of provision relative to the aggregate of the uncertain tax positions across all the issues that are expected to be resolved at the same time. In addition, in assessing provision levels, it is assumed that tax authorities will review uncertain tax positions and that all facts will be fully and transparently disclosed. Critical accounting estimates and judgements There are two key areas of judgement that impact the reported tax position. Firstly, the level of provisioning for uncertain tax positions; and secondly, the recognition and measurement of deferred tax assets. The Group does not consider there to be a significant risk of a material adjustment to the carrying amount of current and deferred tax balances, including provisions for uncertain tax positions in the next financial year. The provisions for uncertain tax positions cover a diverse range of issues and reflect advice from external counsel where relevant. It should be noted that only a proportion of the total uncertain tax positions will be under audit at any point in time, and could therefore be subject to challenge by a tax authority over the next year. Deferred tax assets have been recognised based on business profit forecasts. Details on the recognition of deferred tax assets are provided in this note. a Restated 2022 2021 2020 £m £m £m Current tax charge/(credit) Current year 1,045 1,417 1,255 Adjustments in respect of prior years (444) 317 31 601 1,734 1,286 Deferred tax charge/(credit) Current year 235 (352) (830) Adjustments in respect of prior years 203 (244) 148 438 (596) (682) Tax charge 1,039 1,138 604 Note a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. In 2022 the adjustments in respect of prior years are principally a result of various steps taken in the US and UK tax groups that have affected the timing of the tax deductibility of expenditure related to fixed assets. Across the Barclays Bank PLC’s US Branch Tax Group and US Intermediate Holding Company Tax Group ('IHC Tax Group'), elections have been made in 2022 to advance tax deductions in relation to fixed assets that would otherwise have arisen in later periods. Those elections resulted in a current tax credit in respect of prior years of £556m and a deferred tax charge in respect of prior years of a similar amount. In the UK Tax Group various tax claims and elections will have the effect of deferring the timing of deductions related to plant and machinery and this has resulted in a current tax charge in respect of prior years of £167m and a deferred tax credit in respect of prior years of 213m.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 442 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 The table below shows the reconciliation between the actual tax charge and the tax charge that would result from applying the standard UK corporation tax rate to the Group’s profit before tax. a a Restated Restated 2022 2022 2021 2021 2020 2020 £m % £m % £m % Profit before tax 7,012 8,194 3,065 Tax charge based on the standard UK corporation tax rate of 19% (2021: 19%; 2020: 19% ) 1,332 19.0% 1,557 19.0% 582 19.0% Impact of profits/losses earned in territories with different statutory rates 167 2.4% 277 3.4% 188 6.1% to the UK (weighted average tax rate is 21.4% (2021: 22.4%; 2020: 25.1% )) Recurring items: Non-creditable taxes including withholding taxes 126 1.8% 134 1.6% 109 3.5% b Banking surcharge and other items 101 1.4% 83 1.0% 6 0.2% Non-deductible expenses 51 0.7% 80 1.0% 48 1.6% Impact of UK bank levy being non-deductible 33 0.5% 32 0.4% 57 1.9% Impact of Barclays Bank PLC's overseas branches being taxed both locally 17 0.2% 25 0.3% 25 0.8% and in the UK Tax adjustments in respect of share-based payments 13 0.2% (5) (0.1%) 26 0.8% Non-taxable gains and income (135) (1.9%) (198) (2.4%) (185) (6.0%) Changes in recognition of deferred tax and effect of unrecognised tax losses (146) (2.1%) (140) (1.7%) (123) (4.0%) Tax relief on payments made under AT1 instruments (172) (2.4%) (149) (1.8%) (165) (5.4%) Adjustments in respect of prior years (241) (3.4%) 73 0.9% 179 5.8% (556) (7.9%) Tax relief on holdings of inflation-linked government bonds (169) (2.1%) (23) (0.8%) Non-recurring items: Remeasurement of UK deferred tax assets due to tax rate changes 346 4.9% (462) (5.6%) (118) (3.8%) Non-deductible provisions for investigations and litigation 93 1.3% — — 5 0.2% Non-deductible provisions for UK customer redress 10 0.1% — — (7) (0.2%) Total tax charge 1,039 14.8% 1,138 13.9% 604 19.7% Notes a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. b Banking surcharge includes the impact of the 8% UK banking surcharge rate on profits/losses and tax adjustments relating to UK banking entities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 443 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 Factors driving the effective tax rate The effective tax rate of 14.8% is lower than the UK corporation tax rate of 19% primarily due to tax relief on holdings of inflation-linked government bonds, beneficial prior year adjustments, tax relief on payments made under AT1 instruments and the utilisation of unrecognised tax losses in the period. These factors, which have each decreased the effective tax rate, are partially offset by adjustments for the remeasurement of UK deferred tax assets as a result of the enactment during 2022 of a reduction in the banking surcharge rate to 3% from 1 April 2023 and profits earned outside the UK being taxed at local statutory tax rates that are higher than the UK tax rate. The Group’s future tax charge will be sensitive to the geographic mix of profits earned, the tax rates in force and changes to the tax rules in the jurisdictions that the Group operates in. In its Autumn Statement held in November 2022, the UK Government confirmed that, as currently enacted, the banking surcharge rate will be reduced from 8% to 3% from 1 April 2023. UK deferred tax assets as at 31 December 2022 are measured at this rate, having been remeasured when the 3% rate was substantively enacted in 2022. The statutory tax rate applicable to banks' UK profits will therefore be 28% (comprising a rate of 25% for corporation tax and of 3% for banking surcharge) from 1 April 2023. The OECD and G20 Inclusive Framework on Base Erosion and Profit Shifting announced plans to introduce a global minimum tax rate of 15% and the OECD issued model rules in 2021. During 2022 further OECD guidance has been released and draft legislation to implement the global minimum tax regime has been published by the UK Government. The UK Government has stated that it intends to enact legislation in 2023 to apply for accounting periods beginning on or after 31 December 2023. The Group has reviewed the published OECD model rules and further guidance along with the draft UK legislation and has been assessing the expected impact ahead of the implementation of the new regime. The Group will review further guidance as well as new legislation expected to be released by governments implementing this new tax regime and continue to assess the potential impact. In the USA, the Inflation Reduction Act was enacted in August 2022. The Act does not include changes to the US corporate income tax rate or to US international tax provisions included in the previously proposed Build Back Better Act but does introduce a corporate alternative minimum tax on adjusted financial statements income, effective from 1 January 2023. Further regulations and guidance are expected to be published in 2023, however the Group’s preliminary view is that the alternative minimum tax is not expected to materially increase the Group’s effective tax rate. The Group will review future guidance when it is published and continue to monitor other legislative developments and assess the potential impact. Tax in the consolidated statement of comprehensive income The tax relating to each component of other comprehensive income can be found in the consolidated statement of comprehensive income . The total amount recognised in relation to the remeasurement of UK deferred tax through other comprehensive income was a £28m charge (2021: £111m). Tax included directly in equity Tax included directly in equity comprises a £1m credit (2021: £58m) relating to share-based payments and deductible costs on issuing other equity instruments. Deferred tax assets and liabilities The deferred tax amounts on the balance sheet were as follows: 2022 2021 £m £m UK Tax Group 4,925 2,183 IHC Tax Group 1,094 1,004 Barclays Bank PLC's US Branch Tax Group 482 1,002 Other (outside the UK and US tax groups) 490 430 Deferred tax asset 6,991 4,619 Deferred tax liability (16) (37) Net deferred tax 6,975 4,582 US deferred tax assets in the IHC and US Branch Tax Groups The deferred tax asset in the IHC Tax Group of £1,094m (2021: £1,004m) includes £21m (2021: £1m) relating to tax losses, with the balance relating to temporary differences. The deferred tax asset in Barclays Bank PLC’s US Branch Tax Group of £482m (2021: £1,002m) relates entirely to temporary differences. In relation to the IHC Tax Group, these temporary differences include £434m (2021: £301m) arising from New York State and City prior net operating loss conversion which can be carried forward and will expire in 2034. Business profit forecasts indicate these amounts will be fully recovered before expiry. UK Tax Group deferred tax asset The deferred tax asset in the UK Tax Group of £4,925m (2021: £2,183m) includes £1,535m (2021: £1,098m) relating to tax losses, with the balance relating to temporary differences. There is no time limit on utilisation of UK tax losses and business profit forecasts indicate that these losses will be fully recovered.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 444 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 Other deferred tax assets (outside the UK and US tax groups) The deferred tax asset of £490m (2021: £430m) in other entities within the Group includes £90m (2021: £121m) relating to tax losses. These deferred tax assets relate to a number of different territories and their recognition is based on profit forecasts or local country law which indicate that it is probable that those deferred tax assets will be fully recovered. Of the deferred tax asset of £490m (2021: £430m), an amount of £33m (2021: £9m) relates to entities which have suffered a loss in either the current or prior year and for which the utilisation of the deferred tax is dependent on future taxable profits. This has been taken into account in reaching the above conclusion that these deferred tax assets will be fully recovered in the future. The table below shows movements on deferred tax assets and liabilities during the year. The amounts are different from those disclosed on the balance sheet and in the preceding table as they are presented before offsetting asset and liability balances where there is a legal right to set-off and an intention to settle on a net basis. Fair value Share-based Fixed asset through other Retirement Loan payments and Other Tax losses timing comprehensive Cash flow benefit impairment deferred temporary carried differences income hedges obligations allowance Own credit compensation differences forward Total £m £m £m £m £m £m £m £m £m £m Assets 1,647 155 521 40 693 426 414 1,248 1,220 6,364 Liabilities (42) — — (1,674) — — — (66) — (1,782) As at 1 January 2022 1,605 155 521 (1,634) 693 426 414 1,182 1,220 4,582 Income statement (458) (6) — (3) (11) — 14 (400) 426 (438) Other comprehensive — 523 2,354 357 — (616) (17) — — 2,601 income and reserves Other movements 72 3 — 5 20 — 22 108 — 230 1,219 675 2,875 (1,275) 702 (190) 433 890 1,646 6,975 Assets 1,296 675 2,875 40 702 — 433 1,280 1,646 8,947 Liabilities (77) — — (1,315) — (190) — (390) — (1,972) As at 31 December 2022 1,219 675 2,875 (1,275) 702 (190) 433 890 1,646 6,975 Assets 1,465 — — 43 666 329 363 1,378 735 4,979 Liabilities (41) (38) (566) (826) — — — (79) — (1,550) As at 1 January 2021 1,424 (38) (566) (783) 666 329 363 1,299 735 3,429 Income statement 184 (6) — 5 39 — 12 (123) 485 596 Other comprehensive — 198 1,088 (855) — 98 36 (1) — 564 income and reserves Other movements (3) 1 (1) (1) (12) (1) 3 7 — (7) 1,605 155 521 (1,634) 693 426 414 1,182 1,220 4,582 Assets 1,647 155 521 40 693 426 414 1,248 1,220 6,364 Liabilities (42) — — (1,674) — — — (66) — (1,782) As at 31 December 1,605 155 521 (1,634) 693 426 414 1,182 1,220 4,582 2021 Other movements include the impact of changes in foreign exchange rates as well as deferred tax amounts relating to acquisitions and disposals. The amount of deferred tax assets expected to be recovered after more than 12 months is £8,155m (2021: £5,886m). The amount of deferred tax liability expected to be settled after more than 12 months is £1,864m (2021: £1,778m). These amounts are before offsetting asset and liability balances where there is a legal right to set-off and an intention to settle on a net basis. Unrecognised deferred tax Tax losses and temporary differences Deferred tax assets have not been recognised in respect of gross deductible temporary differences of £111m (2021: £110m), unused tax credits of £323m (2021: £283m), and gross tax losses of £22,537m (2021: £22,835m). The tax losses include capital losses of £3,935m (2021: £3,981m). Of these tax losses, £149m (2021: £63m) expire within five years, £401m (2021: £370m) expire within six to ten years, £10,393m (2021: £10,529m) expire within 11 to 20 years and £11,594m (2021: £11,873m) can be carried forward indefinitely. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profits and gains will be available against which they can be utilised. Group investments in subsidiaries, branches and associates Deferred tax is not recognised in respect of the value of the Group's investments in subsidiaries, branches and associates where the Group is able to control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. The aggregate amount of these temporary differences for which deferred tax liabilities have not been recognised was £852m (2021: £858m).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 445 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) For the year ended 31 December 2022 10 Earnings per share a Restated 2022 2021 2020 £m £m £m Profit attributable to ordinary equity holders of the parent 5,023 6,205 1,526 2022 2021 2020 million million million Basic weighted average number of shares in issue 16,333 16,985 17,300 Number of potential ordinary shares 534 435 368 Diluted weighted average number of shares 16,867 17,420 17,668 Basic earnings per share Diluted earnings per share a a Restated Restated 2022 2021 2020 2022 2021 2020 p p p p p p Earnings per ordinary share 30.8 36.5 8.8 29.8 35.6 8.6 Note a 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the basic weighted average number of shares excluding treasury shares held in employee benefit trusts or held for trading. When calculating the diluted earnings per share, the weighted average number of shares in issue is adjusted for the effects of all expected dilutive potential ordinary shares held in respect of Barclays PLC, totalling 534m (2021: 435m) shares. The total number of share options outstanding, under schemes considered to be potentially dilutive, was 789m (2021: 688m). These options have strike prices ranging from £0.84 to £1.66. Of the total number of employee share options and share awards at 31 December 2022, 27m (2021: 5m) were anti-dilutive. The 652m decrease (2021: 315m decrease) in the basic weighted average number of shares is primarily due to the impact of the share buy-back programmes completed in the year. 11 Dividends on ordinary shares The Directors have approved a total dividend in respect of 2022 of 7.25p per ordinary share of 25p each. The full year dividend for 2022 of 5.00p per ordinary share will be paid on 31 March 2023 to shareholders on the Share Register on 24 February 2023. On 31 December 2022, there were 15,871m ordinary shares in issue. The financial statements for the year ended 31 December 2022 do not reflect this dividend, which will be accounted for in shareholders’ equity as an appropriation of retained profits in the year ending 31 December 2023. The Directors have confirmed their intention to initiate a share buyback of up to £500m after the balance sheet date. The proposed share buyback is expected to commence in the first quarter of 2023. The financial statements for the year ended 31 December 2022 do not reflect the impact of the proposed share buyback, which will be accounted for as and when shares are repurchased by the Company. The 2022 financial statements include the 2022 interim dividend of £364m (2021: £339m); a full year dividend declared in relation to 2021 of £664m (2020: £173m) and two share buyback programmes totalling £1,500m (2021: £1,200m). Dividends and share buybacks are funded out of distributable reserves.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 446 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Assets and liabilities held at fair value The notes included in this section focus on assets and liabilities the Group holds and recognises at fair value. Fair value refers to the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date, which may be an observable market price or, where there is no quoted price for the instrument, may be an estimate based on available market data. Detail regarding the Group’s approach to managing market risk can be found in the Market risk management section. 12 Trading portfolio Accounting for trading portfolio assets and liabilities In accordance with IFRS 9, all assets and liabilities held for trading purposes are held at fair value with gains and losses in the changes in fair value taken to the income statement in net trading income (Note 5). Trading portfolio assets Trading portfolio liabilities 2022 2021 2022 2021 £m £m £m £m Debt securities and other eligible bills 55,475 50,864 (39,531) (34,957) Equity securities 65,031 83,113 (33,393) (19,212) Traded loans 13,198 12,525 — — Commodities 109 533 — — Trading portfolio assets/(liabilities) 133,813 147,035 (72,924) (54,169) 13 Financial assets at fair value through the income statement Accounting for financial assets mandatorily at fair value Financial assets that are held for trading are recognised at fair value through profit or loss. In addition, financial assets are held at fair value through profit or loss if they do not contain contractual terms that give rise on specified dates to cash flows that are SPPI, or if the financial asset is not held in a business model that is either (i) a business model to collect the contractual cash flows or (ii) a business model that is achieved by both collecting contractual cash flows and selling. Accounting for financial assets designated at fair value Financial assets, other than those held for trading, are classified in this category if they are so irrevocably designated at inception and the use of the designation removes or significantly reduces an accounting mismatch. Subsequent changes in fair value for these instruments are recognised in the income statement in net investment income, except if reporting it in trading income reduces an accounting mismatch. The details on how the fair value amounts are derived for financial assets at fair value are described in Note 17. Designated at fair value Mandatorily at fair value Total 2022 2021 2022 2021 2022 2021 £m £m £m £m £m £m Loans and advances 3,658 5,579 35,771 33,088 39,429 38,667 Debt securities 205 319 3,044 1,986 3,249 2,305 Equity securities — — 6,091 5,875 6,091 5,875 Reverse repurchase agreements and other similar secured lending — — 164,681 145,014 164,681 145,014 Other financial assets 1 — 117 111 118 111 Financial assets at fair value through the income statement 3,864 5,898 209,704 186,074 213,568 191,972 Credit risk of financial assets designated at fair value and related credit derivatives The following table shows the maximum exposure to credit risk, the changes in fair value attributable to changes in credit risk, and the cumulative changes in fair value since initial recognition for loans and advances. The table does not include debt securities and reverse repurchase agreements and other similar secured lending designated at fair value as they have minimal exposure to credit risk. Reverse repurchase agreements are collateralised and debt securities are primarily relating to high quality sovereigns. Changes in fair value during the year Cumulative changes in fair value from Maximum exposure as at 31 December ended inception 2022 2021 2022 2021 2022 2021 £m £m £m £m £m £m 3,658 5,579 10 5 (9) (19) Loans and advances designated at fair value, attributable to credit risk 855 1,617 (1) (3) (1) (3) Value mitigated by related credit derivatives

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 447 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value 14 Derivative financial instruments Accounting for derivatives Derivative instruments are contracts whose value is derived from one or more underlying financial instruments or indices defined in the contract. They include swaps, forward-rate agreements, futures, options and combinations of these instruments and primarily affect the Group’s net interest income, net trading income and derivative assets and liabilities. Notional amounts of the contracts are not recorded on the balance sheet. Derivatives are used to hedge interest rate, credit risk, inflation risk, exchange rate, commodity equity exposures, and exposures to certain indices such as house price indices and retail price indices related to non-trading positions. All derivative instruments are held at fair value through profit or loss, except for derivatives that are in a designated cash flow or net investment hedge accounting relationship. Derivatives are classified as assets when their fair value is positive or as liabilities when their fair value is negative. This includes terms included in a contract or financial liability (the host), which, had it been a standalone contract, would have met the definition of a derivative. If these are separated from the host, i.e. when the economic characteristics of the embedded derivative are not closely related with those of the host contract and the combined instrument is not measured at fair value through profit or loss, then they are accounted for in the same way as derivatives. For financial assets, the requirements are whether the financial assets contain contractual terms that give rise on specified dates to cash flows that are SPPI, and consequently the requirements for accounting for embedded derivatives are not applicable to financial assets. Hedge accounting The Group applies the requirements of IAS 39 Financial Instruments: Recognition and Measurement for hedge accounting purposes. The Group applies hedge accounting to represent the economic effects of its interest rate, currency and contractually-linked inflation risk management strategies. Where derivatives are held for risk management purposes, and when transactions meet the required criteria for documentation and hedge effectiveness, the Group applies fair value hedge accounting, cash flow hedge accounting, or hedging of a net investment in a foreign operation, as appropriate to the risks being hedged. The Group applies the ‘Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform’ issued in September 2019 (the Phase 1 amendments). The amendments provide temporary relief from applying specific hedge accounting requirements to hedging relationships directly affected by IBOR (‘Interbank Offered Rates’) reform. The reliefs have the effect that IBOR reform should not generally cause hedge accounting to terminate. However, any hedge ineffectiveness continues to be recorded in the income statement. Furthermore, the amendments set out triggers for when the reliefs will end, which include the uncertainty arising from interest rate benchmark reform no longer being present. In summary, the reliefs provided by the Phase 1 amendments are: ▪ When considering the ‘highly probable’ requirement, the Group has assumed that the IBOR interest rates upon which our hedged items are based do not change as a result of IBOR Reform. ▪ In assessing whether the hedge is expected to be highly effective on a forward-looking basis the Group has assumed that the IBOR interest rates upon which the cash flows of the hedged items and the interest rate swaps that hedge them are based are not altered by IBOR reform. ▪ The Group will not discontinue hedge accounting during the period of IBOR-related uncertainty solely because the retrospective effectiveness falls outside the required 80–125% range. ▪ The Group has not recycled the cash flow hedge reserve relating to the period after the reforms are expected to take effect. ▪ The Group has assessed whether the hedged IBOR risk component is a separately identifiable risk only when it first designates a hedged item in a fair value hedge and not on an ongoing basis. The Group also applies the ‘Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2’ issued in August 2020. The Phase 2 amendments provide relief when changes are made to hedge relationships as a result of the interest rate benchmark reform. In summary, the reliefs provided by the Phase 2 amendments are: ▪ Under a temporary exception, the Group has considered that changes to the hedge designation and hedge documentation due to the interest rate benchmark reform would not constitute the discontinuation of the hedge relationship nor the designation of a new hedging relationship. ▪ In respect of the retrospective hedge effectiveness assessment, the Group may elect, on a hedge-by-hedge basis, to reset the cumulative fair value changes to zero when the exception to the retrospective assessment ends (Phase 1 relief). Any hedge ineffectiveness will continue to be measured and recognised in full in profit or loss. ▪ The Group has deemed the amounts accumulated in the cash flow hedge reserve to be based on the alternative benchmark rate (on which the hedge future cash flows are determined) when there is a change in basis for determining the contractual cash flows. ▪ For hedges of groups of items (such as those forming part of a macro cash flow hedging strategy), the amendments provide relief for items within a designated group of items that are amended for changes directly required by the reform. ▪ In respect of whether a risk component of a hedged item is separately identifiable, the amendments provide temporary relief to entities to meet this requirement when an alternative risk free rate (RFR) financial instrument is designated as a risk component. These amendments allow the Group upon designation of the hedge to assume that the separately identifiable requirement is met if the Group reasonably expects the RFR risk will become separately identifiable within the next 24 months. The Group applies this relief to each RFR on a rate-by-rate basis and starts when the Group first designates the RFR as a non-contractually specified risk component.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 448 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Fair value hedge accounting Changes in fair value of derivatives that qualify and are designated as fair value hedges are recorded in the income statement, together with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The fair value changes adjust the carrying value of the hedged asset or liability held at amortised cost. If hedge relationships no longer meet the criteria for hedge accounting, hedge accounting is discontinued. For fair value hedges of interest rate risk, the fair value adjustment to the hedged item is amortised to the income statement over the period to maturity of the previously designated hedge relationship using the effective interest method. If the hedged item is sold or repaid, the unamortised fair value adjustment is recognised immediately in the income statement. For items classified as fair value through other comprehensive income, the hedge accounting adjustment is included in other comprehensive income. Cash flow hedge accounting For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge is recognised initially in other comprehensive income, and then recycled to the income statement in the periods when the hedged item will affect profit or loss. Any ineffective portion of the gain or loss on the hedging instrument is recognised in the income statement immediately. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged item is ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was recognised in equity is immediately transferred to the income statement. Hedges of net investments The Group’s net investments in foreign operations, including monetary items accounted for as part of the net investment, are hedged for foreign currency risks using both derivatives and foreign currency borrowings. Hedges of net investments are accounted for similarly to cash flow hedges; the effective portion of the gain or loss on the hedging instrument is being recognised directly in other comprehensive income and the ineffective portion being recognised immediately in the income statement. The cumulative gain or loss recognised in other comprehensive income is recognised in the income statement on the disposal or partial disposal of the foreign operation, or other reductions in the Group’s investment in the operation. Total derivatives 2022 2021 Notional Fair value Fair value Notional contract contract amount Assets Liabilities amount Assets Liabilities £m £m £m £m £m £m Total derivative assets/(liabilities) held for trading 52,689,773 301,647 (288,573) 47,812,774 261,678 (255,747) Total derivative assets/(liabilities) held for risk management 285,505 733 (1,047) 219,551 894 (1,136) Derivative assets/(liabilities) 52,975,278 302,380 (289,620) 48,032,325 262,572 (256,883) Further information on netting arrangements of derivative financial instruments can be found within Note 18. The fair values and notional amounts of derivative instruments held for trading and held for risk management are set out in the following table:

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 449 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Derivatives held for trading and held for risk management 2022 2021 Notional Notional Fair value Fair value contract contract amount Assets Liabilities amount Assets Liabilities £m £m £m £m £m £m Derivatives held for trading Foreign exchange derivatives OTC derivatives 5,775,206 108,833 (103,439) 5,705,108 75,959 (74,226) Derivatives cleared by central counterparty 113,455 440 (473) 99,664 171 (208) Exchange traded derivatives 19,426 15 (6) 20,084 10 (3) Foreign exchange derivatives 5,908,087 109,288 (103,918) 5,824,856 76,140 (74,437) Interest rate derivatives OTC derivatives 14,924,915 129,920 (116,752) 14,216,846 123,819 (113,051) Derivatives cleared by central counterparty 21,927,570 2,319 (2,371) 19,398,748 1,122 (845) Exchange traded derivatives 5,654,126 2,257 (2,167) 5,200,838 905 (907) Interest rate derivatives 42,506,611 134,496 (121,290) 38,816,432 125,846 (114,803) Credit derivatives OTC derivatives 619,843 4,262 (4,731) 606,504 4,007 (4,752) Derivatives cleared by central counterparty 1,107,377 1,161 (1,321) 665,600 1,675 (1,809) Credit derivatives 1,727,220 5,423 (6,052) 1,272,104 5,682 (6,561) Equity and stock index derivatives OTC derivatives 410,276 12,679 (16,724) 278,683 18,822 (24,468) Exchange traded derivatives 1,924,613 35,986 (36,774) 1,469,078 32,901 (33,174) Equity and stock index derivatives 2,334,889 48,665 (53,498) 1,747,761 51,723 (57,642) Commodity derivatives OTC derivatives 4,411 14 (51) 4,670 56 (107) Exchange traded derivatives 208,555 3,761 (3,764) 146,951 2,231 (2,197) Commodity derivatives 212,966 3,775 (3,815) 151,621 2,287 (2,304) Derivative assets/(liabilities) held for trading 52,689,773 301,647 (288,573) 47,812,774 261,678 (255,747) Total OTC derivatives 21,734,651 255,708 (241,697) 20,811,811 222,663 (216,604) Total derivatives cleared by central counterparty 23,148,402 3,920 (4,165) 20,164,012 2,968 (2,862) Total exchange traded derivatives 7,806,720 42,019 (42,711) 6,836,951 36,047 (36,281) Derivative assets/(liabilities) held for trading 52,689,773 301,647 (288,573) 47,812,774 261,678 (255,747) Derivatives held for risk management Derivatives designated as cash flow hedges OTC foreign exchange derivatives 11,946 549 (211) 7,592 798 — OTC interest rate derivatives 266 — (1) 788 0 (3) Interest rate derivatives cleared by central counterparty 143,271 — — 105,933 — — Derivatives designated as cash flow hedges 155,483 549 (212) 114,313 798 (3) Derivatives designated as fair value hedges OTC interest rate derivatives 7,814 83 (815) 8,480 59 (1,118) Interest rate derivatives cleared by central counterparty 118,246 — — 94,335 — (11) Derivatives designated as fair value hedges 126,060 83 (815) 102,815 59 (1,129) Derivatives designated as hedges of net investments OTC foreign exchange derivatives 3,962 101 (20) 2,423 37 (4) Derivatives designated as hedges of net investments 3,962 101 (20) 2,423 37 (4) Derivative assets/(liabilities) held for risk management 285,505 733 (1,047) 219,551 894 (1,136) Total OTC derivatives 23,988 733 (1,047) 19,283 894 (1,125) Total derivatives cleared by central counterparty 261,517 — — 200,268 — (11) Derivative assets/(liabilities) held for risk management 285,505 733 (1,047) 219,551 894 (1,136)

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 450 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Hedge accounting Hedge accounting is applied predominantly for the following risks: ▪ Interest rate risk – arises due to a mismatch between fixed interest rates and floating interest rates. Interest rate risk also includes exposure to inflation risk for certain types of investments. ▪ Currency risk – arises due to assets or liabilities being denominated in different currencies than the functional currency of the relevant entity. At a consolidated level, currency risk also arises when the functional currency of subsidiaries are different from the parent. ▪ Contractually linked inflation risk – arises from financial instruments within contractually specified inflation risk. The Group does not hedge inflation risk that arises from other activities. In order to hedge these risks, the Group uses the following hedging instruments: ▪ Interest rate derivatives to swap interest rate exposures into either fixed or variable rates. ▪ Currency derivatives to swap foreign currency exposures into the entity’s functional currency, and net investment exposure to local currency. ▪ Inflation derivatives to swap inflation exposure into either fixed or variable interest rates. In some cases, certain items which are economically hedged may be ineligible hedged items for the purposes of IAS 39, such as core deposits and equity. In these instances, a proxy hedging solution can be utilised whereby portfolios of floating rate assets are designated as eligible hedged items in cash flow hedges. In some hedging relationships, the Group designates risk components of hedged items as follows: ▪ Benchmark interest rate risk as a component of interest rate risk, such as the LIBOR or Risk Free Rate (RFR) component. ▪ Inflation risk as a contractually specified component of a debt instrument. ▪ Spot exchange rate risk for foreign currency financial assets or financial liabilities. ▪ Components of cash flows of hedged items, for example certain interest payments for part of the life of an instrument. Using the benchmark interest rate risk results in other risks, such as credit risk and liquidity risk, being excluded from the hedge accounting relationship. Following market-wide interest rate benchmark reform, sensitivity to risk-free rates is considered to be the predominant interest rate risk and therefore the hedged items (which often reference risk-free or similar 'overnight' rates) change in fair value on a proportionate basis with reference to this risk. In respect of many of the Group’s hedge accounting relationships, the hedged item and hedging instrument change frequently due to the dynamic nature of the risk management and hedge accounting strategy. The Group applies hedge accounting to dynamic scenarios, predominantly in relation to interest rate risk, with a combination of hedged items in order for its financial statements to reflect as closely as possible the economic risk management undertaken. In some cases, if the hedge accounting objective changes, the relevant hedge accounting relationship is de-designated and is replaced with a different hedge accounting relationship. Changes in the GBP value of net investments due to foreign currency movements are captured in the currency translation reserve, resulting in a movement in CET1 capital. The Group mitigates this by matching the CET1 capital movements to the revaluation of the foreign currency RWA exposures. Net investment hedges are designated where necessary to reduce the exposure to movement in a particular exchange rate to within limits mandated by Risk. As far as possible, existing external currency liabilities are designated as the hedging instruments. The hedging instruments share the same risk exposures as the hedged items. Hedge effectiveness is determined with reference to quantitative tests, predominantly regression testing, but to the extent hedging instruments are exposed to different risks than the hedged items, this could result in hedge ineffectiveness or hedge accounting failures. Sources of ineffectiveness include the following: ▪ Mismatches between the contractual terms of the hedged item and hedging instrument, including basis differences. ▪ Changes in credit risk of the hedging instruments. ▪ If a hedging relationship becomes over-hedged, for example in hedges of net investments if the net asset value designated at the start of the period falls below the amount of the hedging instrument. ▪ Cash flow hedges using external swaps with non-zero fair values. ▪ The effects of the reforms to IBOR because these might take effect at a different time and have a different impact on hedged items and hedging instruments. The Group's risk exposure continues, in part, to be affected by interest rate benchmark reform. In most cases, hedged items and hedging instruments are expected to transition to relevant risk-free rates at the end of their current cash flow period. USD LIBOR, Canadian Dollar Offerred Rate (CDOR) and Singapore Swap Offered Rate (SOR) linked hedge accounting relationships are still exposed to uncertainty regarding the precise timing and effects of benchmark reform. USD LIBOR and SOR benchmarks will cease to be published after 30 June 2023, CDOR - after 28 June 2024, but certain hedged items and hedging instruments continue to contractually reference these benchmarks beyond the cessation date.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 451 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value The following table summarises the significant hedge accounting exposures impacted by the IBOR reform (see Note 41 for further updates) as at 31 December 2022: Nominal amount of hedging Nominal amount of hedged items instruments directly impacted by directly impacted by IBOR reform IBOR reform Current benchmark rate Expected convergence to RFR £m £m USD LIBOR Secured Overnight Financing Rate (SOFR) 26,448 35,678 Singapore Swap Offered Rate (SOR) Singapore Overnight Rate Average (SORA) 124 124 Canadian Dollar Offered Rate (CDOR) Overnight Repo Rate Average (CORRA) 1,306 1,335 Total IBOR Notionals 27,878 37,137 The hedged items and hedging instruments are expected to be transitioned to SOFR and SORA by 30 June 2023 and CORRA by 28 June 2024. Hedged items in fair value hedges Accumulated fair value adjustment included in carrying amount Of which: Accumulated fair Hedge value adjustment Change in fair ineffectiveness on items no longer value used as a recognised in the in a hedge basis to determine income a Carrying amount Total relationship ineffectiveness statements Hedged item statement of financial position classification and risk category £m £m £m £m £m 2022 Assets Loans and advances at amortised cost - Interest rate risk 4,906 (3,474) (1,268) (4,405) 44 - Inflation risk 445 243 — (111) 2 Debt securities classified at amortised cost - Interest rate risk 159 (19) (11) (133) (20) - Inflation risk 4,858 (1,304) (1) (1,693) (16) Financial assets at fair value through other comprehensive income - Interest rate risk 33,583 (3,758) (232) (4,799) 168 - Inflation risk 8,514 (261) 14 (804) (9) Total assets 52,465 (8,573) (1,498) (11,945) 169 Liabilities Debt securities in issue - Interest rate risk (51,893) 4,825 527 5,946 13 Total liabilities (51,893) 4,825 527 5,946 13 Total hedged items 572 (3,748) (971) (5,999) 182 2021 Assets Loans and advances at amortised cost - Interest rate risk 8,512 671 (642) (1,643) 33 - Inflation risk 556 354 — 9 0 Debt securities classified at amortised cost - Interest rate risk 1,378 (39) — (75) (18) - Inflation risk 4,087 400 — (16) (1) Financial assets at fair value through other comprehensive income - Interest rate risk 31,485 (258) 32 (1,436) 39 - Inflation risk 9,066 470 (32) 161 13 Total assets 55,084 1,598 (642) (3,000) 66 Liabilities Debt securities in issue - Interest rate risk (48,251) (1,084) 86 1,606 (48) Total liabilities (48,251) (1,084) 86 1,606 (48) Total hedged items 6,833 514 (556) (1,394) 18 Note a Hedge ineffectiveness is recognised in net interest income.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 452 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value For items classified as fair value through other comprehensive income, the hedge accounting adjustment is not included in the carrying amount, but rather adjusts other comprehensive income. The following table shows the fair value hedging instruments which are carried on the Group’s balance sheet: Change in fair Carrying value value used as a Nominal amount Derivative basis to determine directly impacted Derivative assets liabilities Loan liabilities Nominal amount ineffectiveness by IBOR reform Hedge type Risk category £m £m £m £m £m £m As at 31 December 2022 Fair value Interest rate risk — — — 109,761 3,596 25,676 Inflation risk 83 (815) — 16,299 2,585 2,493 Total 83 (815) — 126,060 6,181 28,169 As at 31 December 2021 Fair value Interest rate risk 54 (11) — 92,447 1,554 15,577 Inflation risk 5 (1,118) — 10,368 (142) 1,624 Total 59 (1,129) — 102,815 1,412 17,201 The following table profiles the expected notional values of current hedging instruments in future years: 2028 and 2022 2023 2024 2025 2026 2027 later As at 31 December £m £m £m £m £m £m £m Fair value hedges of: Interest rate risk (outstanding notional amount) 109,761 104,565 90,291 74,338 60,285 43,683 39,302 Inflation risk (outstanding notional amount) 16,299 15,828 12,688 11,459 8,295 7,826 6,779

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 453 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value There are 1,796 (2021: 1,782) interest rate risk fair value hedges with an average fixed rate of 1.97% (2021: 1.88%) across the relationships and 94 (2021: 96) inflation risk fair value hedges with an average rate of 0.54% (2021: 0.51%) across the relationships. Hedged items in cash flow hedges and hedges of net investments in foreign operations Balances remaining Balances remaining Change in value of in cash flow in currency Hedging gains or hedged item used Balance in cash Balance in currency hedging reserve translation reserve losses recognised Hedge as the basis for flow hedging translation reserve for which hedge for which hedge in other ineffectiveness recognising reserve for for continuing accounting is no accounting is no comprehensive recognised in the a ineffectiveness continuing hedges hedges longer applied longer applied income income statement Description of hedge relationship and hedged risk £m £m £m £m £m £m £m 2022 Cash flow hedge of: Interest rate risk Loans and advances at amortised cost 8,448 6,457 — 2,858 — 8,448 (83) Foreign exchange risk Loans and advances at amortised cost 3 (13) — — — 3 2 Debt securities classified at amortised cost 483 601 — — — 483 — Inflation risk Debt securities classified at amortised cost 362 142 — 16 — 98 33 Total cash flow hedge 9,296 7,187 — 2,874 — 9,032 (48) Hedge of net investment in foreign operations USD foreign operations 1,240 — 1,886 — — 1,240 — EUR foreign operations 265 — 141 — — 265 — Other foreign operations 34 — 242 — 23 34 — Total foreign operations 1,539 — 2,269 — 23 1,539 — 2021 Cash flow hedge of: Interest rate risk Loans and advances at amortised cost 2,465 1,536 — (492) — 2,465 (347) Foreign exchange risk Loans and advances at amortised cost (88) (16) — — — (88) 1 Debt securities classified at amortised cost (356) 123 — — — (356) 1 Inflation risk Debt securities classified at amortised cost 252 204 — (12) — 252 (22) Total cash flow hedge 2,273 1,847 — (504) — 2,273 (367) Hedge of net investment in foreign operations USD foreign operations 138 — 943 — — 138 — EUR foreign operations (117) — 100 — — (117) — Other foreign operations (3) — 44 — 186 (3) — Total foreign operations 18 — 1,087 — 186 18 — Note a Hedge ineffectiveness is recognised in net interest income.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 454 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value The following table shows the cash flow and net investment hedging instruments which are carried on the Group’s balance sheet: Change in fair Carrying value value used as a Nominal amount Derivative basis to determine directly impacted Derivative assets liabilities Loan liabilities Nominal amount ineffectiveness by IBOR reform Hedge type Risk category £m £m £m £m £m £m As at 31 December 2022 Cash flow Interest rate risk — (1) — 140,901 (8,531) 8,968 Foreign exchange risk 549 (211) — 11,946 (484) — Inflation risk — — — 2,636 (329) — Total 549 (212) — 155,483 (9,344) 8,968 Net investment Foreign exchange risk 101 (20) (12,824) 16,786 (1,539) As at 31 December 2021 Cash flow Interest rate risk — — — 102,629 (2,812) 8,397 Foreign exchange risk 798 — — 7,592 446 — Inflation risk — (3) — 4,092 (274) — Total 798 (3) — 114,313 (2,640) 8,397 Net investment Foreign exchange risk 37 (4) (11,212) 13,635 (239) — There are 58 (2021: 36) foreign exchange risk cash flow hedges with an average foreign exchange rate of 148.00 JPY:1 GBP (2021: 137.85 JPY:1 GBP) across the relationships. The effect on the income statement and other comprehensive income of recycling amounts in respect of cash flow hedges and net investment hedges of foreign operations is set out in the following table: 2022 2021 Amount recycled Amount recycled Amount recycled from other Amount recycled from other from other comprehensive from other comprehensive comprehensive income due to sale comprehensive income due to sale income due to of investment, or income due to of investment, or hedged item cash flows no hedged item cash flows no affecting income longer expected to affecting income longer expected to statement occur statement occur Description of hedge relationship and hedged risk £m £m £m £m Cash flow hedge of interest rate risk Recycled to net interest income (320) (13) 541 2 Cash flow hedge of foreign exchange risk Recycled to other income (6) — 630 — Hedge of net investment in foreign operations Recycled to other income — (58) — (26) A detailed reconciliation of the movements of the cash flow hedging reserve and the currency translation reserve is as follows: 2022 2021 Cash flow hedging Currency Cash flow hedging Currency reserve translation reserve reserve translation reserve £m £m £m £m Balance on 1 January (853) 2,740 1,575 2,871 (20) 3,513 (7) (139) Currency translation movements Hedging gains/(losses) for the year (9,032) (1,539) (2,273) (18) Amounts reclassified in relation to cash flows affecting profit or loss 339 58 (1,173) 26 2,331 — 1,025 — Tax Balance on 31 December (7,235) 4,772 (853) 2,740

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 455 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value 15 Financial assets at fair value through other comprehensive income Accounting for financial assets at fair value through other comprehensive income (FVOCI) Financial assets that are debt instruments held in a business model that is achieved by both collecting contractual cash flows and selling and that contain contractual terms that give rise on specified dates to cash flows that are SPPI are measured at FVOCI. They are subsequently remeasured at fair value and changes therein (except for those relating to impairment, interest income and foreign currency exchange gains and losses) are recognised in other comprehensive income until the assets are sold. Interest (calculated using the effective interest method) is recognised in the income statement in net interest income (Note 3). Upon disposal, the cumulative gain or loss recognised in other comprehensive income is included in net investment income (Note 6). In determining whether the business model is achieved by both collecting contractual cash flows and selling financial assets, it is determined that both collecting contractual cash flows and selling financial assets are integral to achieving the objective of the business model. The Group will consider past sales and expectations about future sales to establish if the business model is achieved. For equity securities that are not held for trading, the Group may make an irrevocable election on initial recognition to present subsequent changes in the fair value of the instrument in other comprehensive income (except for dividend income which is recognised in profit or loss). Gains or losses on the derecognition of these equity securities are not transferred to profit or loss. These assets are also not subject to the impairment requirements and therefore no amounts are recycled to the income statement. Where the Group has not made the irrevocable election to present subsequent changes in the fair value of the instrument in other comprehensive income, equity securities are measured at fair value through profit or loss. 2022 2021 £m £m Debt securities and other eligible bills 64,832 60,798 a Equity securities 8 902 Loans and advances 222 53 Financial assets at fair value through other comprehensive income 65,062 61,753 Note a 2021 includes Barclays’ equity stake in Absa Group Limited (Absa) which was sold in April 2022 and September 2022. The fair value of the stake sold in April 2022 was £557m and in September 2022 was £566m. The cumulative gains on disposal of £48m and £36m respectively were recognised within Retained earnings. 16 Financial liabilities designated at fair value Accounting for liabilities designated at fair value through profit and loss In accordance with IFRS 9, financial liabilities may be designated at fair value, with gains and losses taken to the income statement within net trading income (Note 5) and net investment income (Note 6). Movements in own credit are reported through other comprehensive income, unless the effects of changes in the liability's credit risk would create or enlarge an accounting mismatch in P&L. In these scenarios, all gains and losses on that liability (including the effects of changes in the credit risk of the liability) are presented in P&L. On derecognition of the financial liability no amount relating to own credit risk is recycled to the income statement. The Group has the ability to make the fair value designation when holding the instruments at fair value reduces an accounting mismatch (caused by an offsetting liability or asset being held at fair value), or is managed by the Group on the basis of its fair value, or includes terms that have substantive derivative characteristics (Note 14). The details on how the fair value amounts are arrived at for financial liabilities designated at fair value are described in Note 17. 2022 2021 Contractual Contractual amount due amount due Fair value on maturity Fair value on maturity £m £m £m £m Debt securities 57,846 73,757 53,647 61,946 Deposits 41,037 42,455 29,246 29,673 Repurchase agreements and other similar secured borrowing 172,746 173,511 168,060 168,129 Other financial liabilities 8 8 7 7 Financial liabilities designated at fair value 271,637 289,731 250,960 259,755 The cumulative own credit net gain recognised is £674m (2021: £960m loss).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 456 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value 17 Fair value of financial instruments Accounting for financial assets and liabilities – fair values Financial instruments that are held for trading are recognised at fair value through profit or loss. In addition, financial assets are held at fair value through profit or loss if they do not contain contractual terms that give rise on specified dates to cash flows that are SPPI, or if the financial asset is not held in a business model that is either (i) a business model to collect the contractual cash flows or (ii) a business model that is achieved by both collecting contractual cash flows and selling. Subsequent changes in fair value for these instruments are recognised in the income statement in net investment income, except if reporting it in trading income reduces an accounting mismatch. All financial instruments are initially recognised at fair value on the date of initial recognition (including transaction costs, other than financial instruments held at fair value through profit or loss) and depending on the subsequent classification of the financial asset or liability, may continue to be held at fair value either through profit or loss or other comprehensive income. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Wherever possible, fair value is determined by reference to a quoted market price for that instrument. For many of the Group’s financial assets and liabilities, especially derivatives, quoted prices are not available and valuation models are used to estimate fair value. The models calculate the expected cash flows under the terms of each specific contract and then discount these values back to a present value. These models use as their basis independently sourced market inputs including, for example, interest rate yield curves, equities and commodities prices, option volatilities and currency rates. For financial liabilities measured at fair value, the carrying amount reflects the effect on fair value of changes in own credit spreads derived from observable market data such as in primary issuance and redemption activity for structured notes. On initial recognition, it is presumed that the transaction price is the fair value unless there is observable information available in an active market to the contrary. The best evidence of an instrument’s fair value on initial recognition is typically the transaction price. However, if fair value can be evidenced by comparison with other observable current market transactions in the same instrument, or is based on a valuation technique whose inputs include only data from observable markets, then the instrument should be recognised at the fair value derived from such observable market data. For valuations that have made use of unobservable inputs, the difference between the model valuation and the initial transaction price (Day one profit) is recognised in profit or loss either: on a straight-line basis over the term of the transaction; or over the period until all model inputs will become observable where appropriate; or released in full when previously unobservable inputs become observable. Various factors influence the availability of observable inputs and these may vary from product to product and change over time. Factors include the depth of activity in the relevant market, the type of product, whether the product is new and not widely traded in the marketplace, the maturity of market modelling and the nature of the transaction (bespoke or generic). To the extent that valuation is based on models or inputs that are not observable in the market, the determination of fair value can be more subjective, dependent on the significance of the unobservable input to the overall valuation. Unobservable inputs are determined based on the best information available, for example by reference to similar assets, similar maturities or other analytical techniques. The sensitivity of valuations used in the financial statements to possible changes in significant unobservable inputs is shown on page 465. Critical accounting estimates and judgements The valuation of financial instruments often involves a significant degree of judgement and complexity, in particular where valuation models make use of unobservable inputs (‘Level 3’ assets and liabilities). This note provides information on these instruments, including the related unrealised gains and losses recognised in the period, a description of significant valuation techniques and unobservable inputs, and a sensitivity analysis. Climate-related risks are assumed to be included in the fair values of assets and liabilities traded in active markets. Valuation IFRS 13 Fair value measurement requires an entity to classify its assets and liabilities according to a hierarchy that reflects the observability of significant market inputs. The three levels of the fair value hierarchy are defined below with judgement applied in determining the boundary between Level 2 and 3 classification. Quoted market prices – Level 1 Assets and liabilities are classified as Level 1 if their value is observable in an active market. Such instruments are valued by reference to unadjusted quoted prices for identical assets or liabilities in active markets where the quoted price is readily available, and the price represents actual and regularly occurring market transactions. An active market is one in which transactions occur with sufficient volume and frequency to provide pricing information on an ongoing basis. Valuation technique using observable inputs – Level 2 Assets and liabilities classified as Level 2 have been valued using models whose inputs are observable either directly or indirectly. Valuations based on observable inputs include assets and liabilities such as swaps and forwards which are valued using market standard pricing techniques, and options that are commonly traded in markets where all the inputs to the market standard pricing models are observable.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 457 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Valuation technique using significant unobservable inputs – Level 3 Assets and liabilities are classified as Level 3 if their valuation incorporates significant inputs that are not based on observable market data (unobservable inputs). A valuation input is considered observable if it can be directly observed from transactions in an active market, or if there is compelling external evidence demonstrating an executable exit price. Unobservable input levels are generally determined via reference to observable inputs, historical observations or using other analytical techniques. The following table shows the Group’s assets and liabilities that are held at fair value disaggregated by valuation technique (fair value hierarchy) and balance sheet classification: Assets and liabilities held at fair value 2022 2021 Valuation technique using Valuation technique using Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total As at 31 December £m £m £m £m £m £m £m £m Trading portfolio assets 62,478 64,855 6,480 133,813 80,926 63,828 2,281 147,035 Financial assets at fair value through the income statement 5,720 198,723 9,125 213,568 5,093 177,167 9,712 191,972 Derivative financial assets 10,054 287,152 5,174 302,380 6,150 252,412 4,010 262,572 Financial assets at fair value through other comprehensive income 20,704 44,347 11 65,062 22,009 39,706 38 61,753 Investment property — — 5 5 — — 7 7 Total assets 98,956 595,077 20,795 714,828 114,178 533,113 16,048 663,339 Trading portfolio liabilities (44,128) (28,740) (56) (72,924) (27,529) (26,613) (27) (54,169) Financial liabilities designated at fair value (133) (270,454) (1,050) (271,637) (174) (250,376) (410) (250,960) Derivative financial liabilities (10,823) (272,434) (6,363) (289,620) (6,571) (244,253) (6,059) (256,883) Total liabilities (55,084) (571,628) (7,469) (634,181) (34,274) (521,242) (6,496) (562,012) The following table shows the Group’s Level 3 assets and liabilities that are held at fair value disaggregated by product type: Level 3 assets and liabilities held at fair value by product type 2022 2021 Assets Liabilities Assets Liabilities £m £m £m £m Interest rate derivatives 2,362 (2,858) 1,091 (1,351) Foreign exchange derivatives 1,513 (1,474) 376 (374) Credit derivatives 290 (603) 323 (709) Equity derivatives 1,009 (1,428) 2,220 (3,625) Corporate debt 1,677 (49) 1,205 (21) Reverse repurchase and repurchase agreements 37 (434) 13 (172) Non-asset backed loans 9,949 — 6,405 — Private equity investments 1,291 (8) 1,095 (6) a Other 2,667 (615) 3,320 (238) Total 20,795 (7,469) 16,048 (6,496) Note a Other includes commercial real estate loans, asset backed loans, funds and fund-linked products, issued debt, Government and Government sponsored debt, asset backed securities, equity cash products and investment property. Valuation techniques and sensitivity analysis Sensitivity analysis is performed on products with significant unobservable inputs (Level 3) to generate a range of reasonably possible alternative valuations. The sensitivity methodologies applied take account of the nature of the valuation techniques used, as well as the availability and reliability of observable proxy and historical data and the impact of using alternative models. Sensitivities are dynamically calculated on a monthly basis. The calculation is based on range or spread data of a reliable reference source or a scenario based on relevant market analysis alongside the impact of using alternative models. Sensitivities are calculated without reflecting the impact of any diversification in the portfolio. The valuation techniques used, observability and sensitivity analysis for material products within Level 3, are described below. Interest rate derivatives Description: Derivatives linked to interest rates or inflation indices. The category includes futures, interest rate and inflation swaps, swaptions, caps, floors, inflation options, balance guaranteed swaps and other exotic interest rate derivatives. Valuation: Interest rate and inflation derivatives are generally valued using curves of forward rates constructed from market data to project and discount the expected future cash flows of trades. Instruments with optionality are valued using volatilities implied from market inputs, and use industry standard or bespoke models depending on the product type.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 458 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Observability: In general, inputs are considered observable up to liquid maturities which are determined separately for each input and underlying. Unobservable inputs are generally set by referencing liquid market instruments and applying extrapolation techniques or inferred via another reasonable method. Foreign exchange derivatives Description: Derivatives linked to the foreign exchange (FX) market. The category includes FX forward contracts, FX swaps and FX options. The majority are traded as over the counter (OTC) derivatives. Valuation: FX derivatives are valued using industry standard and bespoke models depending on the product type. Valuation inputs include FX rates, interest rates, FX volatilities, interest rate volatilities, FX interest rate correlations and others as appropriate. Observability: FX correlations, forwards and volatilities are generally observable up to liquid maturities which are determined separately for each input and underlying. Unobservable inputs are set by referencing liquid market instruments and applying extrapolation techniques, or inferred via another reasonable method. Credit derivatives Description: Derivatives linked to the credit spread of a referenced entity, index or basket of referenced entities or a pool of referenced assets (e.g. a securitised product). The category includes single name and index credit default swaps (CDS) and total return swaps (TRS). Valuation: CDS are valued on industry standard models using curves of credit spreads as the principal input. Credit spreads are observed directly from broker data, third party vendors or priced to proxies. Observability: CDS contracts referencing entities that are actively traded are generally considered observable. Other valuation inputs are considered observable if products with significant sensitivity to the inputs are actively traded in a liquid market. Unobservable valuation inputs are generally determined with reference to recent transactions or inferred from observable trades of the same issuer or similar entities. Equity derivatives Description: Exchange traded or OTC derivatives linked to equity indices and single names. The category includes vanilla and exotic equity products. Valuation: Equity derivatives are valued using industry standard models. Valuation inputs include stock prices, dividends, volatilities, interest rates, equity repurchase curves and, for multi-asset products, correlations. Observability: In general, valuation inputs are observable up to liquid maturities which are determined separately for each input and underlying. Unobservable inputs are set by referencing liquid market instruments and applying extrapolation techniques, or inferred via another reasonable method. Corporate debt Description: Primarily corporate bonds. Valuation: Corporate bonds are valued using observable market prices sourced from broker quotes, inter-dealer prices or other reliable pricing sources. Observability: Prices for actively traded bonds are considered observable. Unobservable bonds prices are generally determined by reference to bond yields or CDS spreads for actively traded instruments issued by or referencing the same (or a similar) issuer. Reverse repurchase and repurchase agreements Description: Includes securities purchased under resale agreements, securities sold under repurchase agreements, and other similar secured lending agreements. The agreements are primarily short-term in nature. Valuation: Repurchase and reverse repurchase agreements are generally valued by discounting the expected future cash flows using industry standard models that incorporate market interest rates and repurchase rates, based on the specific details of the transaction. Observability: Inputs are deemed observable up to liquid maturities or for consensus pricing with low pricing-range and are determined based on the specific features of the transaction. Unobservable inputs are generally set by referencing liquid market instruments and applying extrapolation techniques, or inferred via another reasonable method. Non-asset backed loans Description: Largely made up of fixed rate loans. Valuation: Fixed rate loans are valued using models that discount expected future cash flows based on interest rates and loan spreads. Observability: Within this loan population, the loan spread is generally unobservable. Unobservable loan spreads are determined by incorporating funding costs, the level of comparable assets such as gilts, issuer credit quality and other factors.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 459 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Private equity investments Description: Includes investments in equity holdings in operating companies not quoted on a public exchange. Valuation: Private equity investments are valued in accordance with the ‘International Private Equity and Venture Capital Valuation Guidelines’ which require the use of a number of individual pricing benchmarks such as the prices of recent transactions in the same or similar entities, discounted cash flow analysis and comparison with the earnings or revenue multiples of listed companies. While the valuation of unquoted equity instruments is subjective by nature, the relevant methodologies are commonly applied by other market participants and have been consistently applied over time. Observability: Inputs are considered observable if there is active trading in a liquid market of products with significant sensitivity to the inputs. Unobservable inputs include earnings or revenue estimates, multiples of comparative companies, marketability discounts and discount rates. Other Description: Other includes commercial real estate loans, asset backed loans, funds and fund-linked products, issued debt, government sponsored debt, asset backed securities, equity cash products and investment property. Assets and liabilities reclassified between Level 1 and Level 2 During the period, there were no material transfers between Level 1 and Level 2 (2021: there were no material transfers between Level 1 and Level 2). Level 3 movement analysis The following table summarises the movements in the Level 3 balances during the period. The table shows gains and losses and includes amounts for all financial assets and liabilities that are held at fair value transferred to and from Level 3 during the period. Transfers have been reflected as if they had taken place at the beginning of the year. Asset and liability transfers between Level 2 and Level 3 are primarily due to i) an increase or decrease in observable market activity related to an input or ii) a change in the significance of the unobservable input, with assets and liabilities classified as Level 3 if an unobservable input is deemed significant.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 460 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Analysis of movements in Level 3 assets and liabilities Total gains and (losses) in the period recognised in the Total gains income statement Transfers As at 1 or (losses) As at 31 January Trading Other recognised December b 2022 Purchases Sales Issues Settlements income income in OCI In Out 2022 £m £m £m £m £m £m £m £m £m £m £m Corporate debt 389 394 (182) — (18) (39) — — 87 (34) 597 Non asset backed loans 758 7,009 (2,635) — (19) (264) — — 10 (22) 4,837 Other 1,134 665 (412) — (298) (43) — — 275 (275) 1,046 Trading portfolio assets 2,281 8,068 (3,229) — (335) (346) — — 372 (331) 6,480 Non asset backed loans 5,647 2,739 (1,019) — (1,487) (733) — — 49 (84) 5,112 Private equity investments 1,095 192 (64) — (24) 95 (66) — 56 — 1,284 Other 2,970 6,482 (6,540) — (189) 4 3 — 17 (18) 2,729 Financial assets at fair value through the income statement 9,712 9,413 (7,623) — (1,700) (634) (63) — 122 (102) 9,125 Private equity investments — — — — — — — 1 6 — 7 Other 38 — — — (32) — — (2) — — 4 Assets at fair value through other comprehensive income 38 — — — (32) — — (1) 6 — 11 Investment properties 7 — (1) — — — (1) — — — 5 Trading portfolio liabilities (27) (23) 8 — — 9 — — (27) 4 (56) Financial liabilities designated at fair value (410) (286) — (98) 82 70 — — (448) 40 (1,050) Interest rate derivatives (260) (216) — — 54 (467) — — 431 (38) (496) Foreign exchange derivatives 2 — — — (6) 27 — — — 16 39 Credit derivatives (386) (4) (2) — 57 23 — — 11 (12) (313) Equity derivatives (1,405) (213) — — 333 306 — — (11) 571 (419) Net derivative financial a instruments (2,049) (433) (2) — 438 (111) — — 431 537 (1,189) Total 9,552 16,739 (10,847) (98) (1,547) (1,012) (64) (1) 456 148 13,326

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 461 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Analysis of movements in Level 3 assets and liabilities Total gains and (losses) in the period recognised in the Total gains income statement Transfers As at 1 or (losses) As at 31 January Trading Other recognised December b 2021 Purchases Sales Issues Settlements income income in OCI In Out 2021 £m £m £m £m £m £m £m £m £m £m £m Corporate debt 151 310 (123) — (12) 38 — — 41 (16) 389 Non-asset backed loans 709 1,580 (1,409) — (85) (1) — — 45 (81) 758 Other 1,003 371 (425) — (57) (49) — — 442 (151) 1,134 Trading portfolio assets 1,863 2,261 (1,957) — (154) (12) — — 528 (248) 2,281 Non-asset backed loans 5,580 1,380 (306) — (748) (181) (174) — 113 (17) 5,647 Private equity investments 874 166 (24) — (9) — 163 — 35 (110) 1,095 Other 2,052 11,256 (10,230) — (185) 2 27 — 49 (1) 2,970 Financial assets at fair value through the income statement 8,506 12,802 (10,560) — (942) (179) 16 — 197 (128) 9,712 Non-asset backed loans 106 — — — — — — — — (106) — Other 47 — — — (7) — — (2) — — 38 Financial assets at fair value through other comprehensive income 153 — — — (7) — — (2) — (106) 38 Investment property 10 — (2) — — — (1) — — — 7 — Trading portfolio liabilities (28) (5) 23 — — (6) — — (12) 1 (27) — Financial liabilities designated at fair value (355) (4) — (101) 66 21 (1) — (68) 32 (410) Interest rate derivatives (2) 20 — — 105 (255) — — 90 (218) (260) Foreign exchange derivatives 1 — — — 40 (2) — — 10 (47) 2 Credit derivatives (155) (239) 9 — (45) 34 — — 10 — (386) Equity derivatives (1,614) 90 (1) — (15) (4) — — (3) 142 (1,405) Net derivative financial a instruments (1,770) (129) 8 — 85 (227) — — 107 (123) (2,049) Total 8,379 14,925 (12,488) (101) (952) (403) 14 (2) 752 (572) 9,552 Notes a The derivative financial instruments are represented on a net basis. On a gross basis, derivative financial assets are £5,174m (2021: £4,010m) and derivative financial liabilities are £6,363m (2021: £6,059m). b Trading income represents gains and (losses) on level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in level 2.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 462 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Unrealised gains and losses on Level 3 financial assets and liabilities The following table discloses the unrealised gains and losses recognised in the year arising on Level 3 financial assets and liabilities held at year end. Unrealised gains and (losses) recognised during the period on Level 3 assets and liabilities held at year end 2022 2021 Other Other Income statement Income statement compre- compre- Trading Other hensive Trading Other hensive a a income income income Total income income income Total As at 31 December £m £m £m £m £m £m £m £m Trading portfolio assets (290) — — (290) (67) — — (67) Financial assets at fair value through the income statement (551) (66) — (617) (176) 154 — (22) Fair value through other comprehensive income — — 1 1 — — — — Investment property — (1) — (1) — — — — Trading portfolio liabilities 8 — — 8 (5) — — (5) Financial liabilities designated at fair value 55 — — 55 16 (1) — 15 Net derivative financial instruments (80) — — (80) (196) — — (196) Total (858) (67) 1 (924) (428) 153 — (275) Note a Trading income represents gains and (losses) on level 3 financial instruments which in the majority are offset by losses and gains on financial instruments disclosed in level 2.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 463 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Significant unobservable inputs The following table discloses the valuation techniques and significant unobservable inputs for material products recognised at fair value and classified as Level 3 along with the range of values used for those significant unobservable inputs: 2022 Range 2021 Range a b Valuation technique(s) Significant unobservable inputs Min Max Min Max Units Derivative financial c instruments Interest rate derivatives Discounted cash flows Inflation forwards 3 5 0 3 % Credit spread 17 2,159 9 1,848 bps Yield (3) 56 — — % Correlation model Inflation forwards (20) (13) (20) (13) % Option model Inflation volatility 49 315 31 130 bps vol Interest rate volatility 36 430 5 600 bps vol Option volatility 57 60 — — £m FX - IR correlation (20) 78 (20) 78 % IR - IR correlation 12 99 (100) 99 % Credit derivatives Discounted cash flows Credit spread 3 2,943 2 2,925 bps Comparable pricing Price 79 92 — — points Equity derivatives Option model Equity volatility 3 140 2 108 % Equity - equity correlation 40 100 10 100 % Discounted cash flow Discounted margin (205) 634 (129) 93 bps Foreign exchange derivatives Option model Option volatility 0 100 0 100 points Discounted Cash Flows Yield (3) 4 — — % Non-derivative financial instruments Non-asset backed loans Discounted cash flows Loan spread 50 801 31 1,552 bps Credit spread 200 300 200 300 bps Yield 5 34 3 10 % Comparable pricing Price 0 101 0 145 points Private equity investments EBITDA multiple EBITDA multiple 11 15 16 20 Multiple Earnings multiple Earnings multiple 4 23 5 28 Multiple Discounted cash flow Credit spread 496 559 725 1,916 bps Discount margin 8 10 8 10 % Corporate debt Comparable pricing Price 0 232 0 284 points Discounted cash flows Loan spread 229 834 229 854 bps Commercial Real Estate loans Discounted cash flows Credit spread 267 426 68 543 bps Reverse repurchase and repurchase agreements Discounted cash flows Repo spread 321 502 — — bps Issued debt Discounted cash flows Credit spread 73 548 — — bps Option model Equity volatility 3 111 — — % Interest rate volatility 42 261 — — bps vol Notes a A range has not been provided for Net Asset Value as there would be a wide range reflecting the diverse nature of the positions. b The units used to disclose ranges for significant unobservable inputs are percentages, points and basis points. Points are a percentage of par; for example, 100 points equals 100% of par. A basis point equals 1/100th of 1%; for example, 150 basis points equals 1.5%. c Certain derivative instruments are classified as Level 3 due to a significant unobservable credit spread input into the calculation of the Credit Valuation Adjustment for the instruments. The range of significant unobservable credit spreads is between 17-2159bps (2021: 32-1,848bps).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 464 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value The following section describes the significant unobservable inputs identified in the table above, and the sensitivity of fair value measurement of the instruments categorised as Level 3 assets or liabilities to increases in significant unobservable inputs. Where sensitivities are described, the inverse relationship will also generally apply. Where reliable interrelationships can be identified between significant unobservable inputs used in fair value measurement, a description of those interrelationships is included below. Forwards A price or rate that is applicable to a financial transaction that will take place in the future. In general, a significant increase in a forward in isolation will result in a fair value increase for the contracted receiver of the underlying (currency, bond, commodity, etc.), but the sensitivity is dependent on the specific terms of the instrument. Credit spread Credit spreads typically represent the difference in yield between an instrument and a benchmark security or reference rate. Credit spreads reflect the additional yield that a market participant demands for taking on exposure to the credit risk of an instrument and form part of the yield used in a discounted cash flow calculation. In general, a significant increase in credit spread in isolation will result in a movement in a fair value decrease for a cash asset. For a derivative instrument, a significant increase in credit spread in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument. Volatility Volatility is a measure of the variability or uncertainty in return for a given derivative underlying. It is an estimate of how much a particular underlying instrument input or index will change in value over time. In general, volatilities are implied from observed option prices. For unobservable options the implied volatility may reflect additional assumptions about the nature of the underlying risk, and the strike/ maturity profile of a specific contract. In general a significant increase in volatility in isolation will result in a fair value increase for the holder of a simple option, but the sensitivity is dependent on the specific terms of the instrument. There may be interrelationships between unobservable volatilities and other unobservable inputs (e.g. when equity prices fall, implied equity volatilities generally rise) but these are generally specific to individual markets and may vary over time. Correlation Correlation is a measure of the relationship between the movements of two variables. Correlation can be a significant input into valuation of derivative contracts with more than one underlying instrument. Credit correlation generally refers to the correlation between default processes for the separate names that make up the reference pool of a CDO structure. A significant increase in correlation in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument. Comparable price Comparable instrument prices are used in valuation by calculating an implied yield (or spread over a liquid benchmark) from the price of a comparable observable instrument, then adjusting that yield (or spread) to account for relevant differences such as maturity or credit quality. Alternatively, a price-to-price basis can be assumed between the comparable and unobservable instruments in order to establish a value. Non-asset backed loans includes a portfolio of loans extended to clients within the Group’s leveraged finance business. Leveraged finance loans are originated where Barclays provide financing commitments to clients to facilitate strategic transactions such as leverage buyouts and acquisitions. The sensitivity of the portfolio to unobservable inputs is judgmental reflecting their illiquid nature and the significance of unobservable price inputs to the valuation. In general, a significant increase in comparable price in isolation will result in an increase in the price of the unobservable instrument. For derivatives, a change in the comparable price in isolation can result in a fair value increase or decrease depending on the specific terms of the instrument. Loan spread Loan spreads typically represent the difference in yield between an instrument and a benchmark security or reference rate. Loan spreads typically reflect credit quality, the level of comparable assets such as gilts and other factors, and form part of the yield used in a discounted cash flow calculation. Non-asset backed loans contains a portfolio primarily consisting of long-dated fixed rate loans extended to counterparties in the UK Education, Social Housing and Local Authority sectors (ESHLA). The loans are categorised as Level 3 in the fair value hierarchy due to their illiquid nature and the significance of unobservable loan spreads to the valuation. Valuation uncertainty arises from the long-dated nature of the portfolio, the lack of secondary market in the loans and the lack of observable loan spreads. The majority of ESHLA loans are to borrowers in heavily regulated sectors that are considered extremely low credit risk, and have a history of near zero defaults since inception. While the overall loan spread range is from 50bps to 589bps (2021: 31bps to 1,552bps), the vast majority of spreads are concentrated towards the bottom end of this range, with 88% of the loan notional being valued with spreads less than 200bps consistently for both years. In general, a significant increase in loan spreads in isolation will result in a fair value decrease for a loan.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 465 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value EBITDA multiple EBITDA multiple is the ratio of the valuation of the investment to the earnings before interest, taxes, depreciation and amortisation. In general, a significant increase in the multiple will result in a fair value increase for an investment. Earnings multiple Earnings or Revenue multiple is the ratio of the valuation of the investment to the earnings or revenue. In general, a significant increase in the multiple will result in a fair value increase for an investment. Sensitivity analysis of valuations using unobservable inputs 2022 2021 Favourable changes Unfavourable changes Favourable changes Unfavourable changes Income Income Income Income statement Equity statement Equity statement Equity statement Equity £m £m £m £m £m £m £m £m Interest rate derivatives 119 — (155) — 51 — (79) — Foreign exchange derivatives 16 — (22) — 20 — (28) — Credit derivatives 79 — (71) — 111 — (103) — Equity derivatives 161 — (168) — 187 — (195) — Corporate debt 45 — (27) — 38 — (28) — Non-asset backed loans 316 — (521) — 165 — (256) — Private equity investments 268 1 (281) (1) 246 — (236) — a Other 71 — (82) — 62 — (80) — Total 1,075 1 (1,327) (1) 880 — (1,005) — Note a Other includes asset backed loans, equity cash products and funds and fund-linked products The effect of stressing unobservable inputs to a range of reasonably possible alternatives, alongside considering the impact of using alternative models, would be to increase fair values by up to £1,076m (2021: £880m) or to decrease fair values by up to £1,328m (2021: £1,005m) with substantially all the potential effect impacting profit and loss rather than reserves. Fair value adjustments Key balance sheet valuation adjustments are quantified below: 2022 2021 £m £m Exit price adjustments derived from market bid-offer spreads (577) (506) Uncollateralised derivative funding (11) (127) Derivative credit valuation adjustments (319) (212) Derivative debit valuation adjustments 208 91 Exit price adjustments derived from market bid-offer spreads The Group uses mid-market pricing where it is a market maker and has the ability to transact at, or better than, mid price (which is the case for certain equity, bond and vanilla derivative markets). For other financial assets and liabilities, bid-offer adjustments are recorded to reflect the exit level for the expected close out strategy. The methodology for determining the bid-offer adjustment for a derivative portfolio involves calculating the net risk exposure by offsetting long and short positions by strike and term in accordance with the risk management and hedging strategy. Bid-offer levels are generally derived from market quotes such as broker data. Less liquid instruments may not have a directly observable bid-offer level. In such instances, an exit price adjustment may be derived from an observable bid-offer level for a comparable liquid instrument, or determined by calibrating to derivative prices, or by scenario or historical analysis. Exit price adjustments derived from market bid-offer spreads have increased by £71m to £(577)m. Discounting approaches for derivative instruments Collateralised In line with market practice, the methodology for discounting collateralised derivatives takes into account the nature and currency of the collateral that can be posted within the relevant credit support annex (CSA). The CSA aware discounting approach recognises the ‘cheapest to deliver’ option that reflects the ability of the party posting collateral to change the currency of the collateral. Uncollateralised A fair value adjustment of £(11)m is applied to account for the impact of incorporating the cost of funding into the valuation of uncollateralised and partially collateralised derivative portfolios and collateralised derivatives where the terms of the agreement do not allow the rehypothecation of collateral received. This adjustment is referred to as the Uncollateralised derivative funding. Uncollateralised derivative funding has decreased by £116m to £(11)m as a result of underlying moves in the exposure profile of the derivative portfolio in scope.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 466 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Derivative credit and debit valuation adjustments Derivative credit valuation adjustments and Derivative debit valuation adjustments are incorporated into derivative valuations to reflect the impact on fair value of counterparty credit risk and Barclays’ own credit quality respectively. These adjustments are calculated for uncollateralised and partially collateralised derivatives across all asset classes. Derivative credit valuation adjustments and Derivative debit valuation adjustments are calculated using estimates of exposure at default, probability of default and recovery rates, at a counterparty level. Counterparties include (but are not limited to) corporates, sovereigns and sovereign agencies and supranationals. Exposure at default is generally estimated through the simulation of underlying risk factors through approximating with a more vanilla structure, or by using current or scenario-based mark to market as an estimate of future exposure. Probability of default and recovery rate information is generally sourced from the CDS markets. Where this information is not available, or considered unreliable, alternative approaches are taken based on mapping internal counterparty ratings onto historical or market- based default and recovery information. Derivative credit valuation adjustments increased by £107m to £(319)m as a result of widening input counterparty credit spreads. Derivative debit valuation adjustments increased by £117m to £208m as a result of widening input own credit spreads. Correlation between counterparty credit and underlying derivative risk factors, termed ‘wrong-way,’ or ‘right-way’ risk, is not systematically incorporated into the derivative credit valuation adjustments calculation but is adjusted where the underlying exposure is directly related to the counterparty. Barclays continues to monitor market practices and activity to ensure the approach to uncollateralised derivative valuation remains appropriate. Portfolio exemptions The Group uses the portfolio exemption in IFRS 13 Fair Value Measurement to measure the fair value of groups of financial assets and liabilities. Instruments are measured using the price that would be received to sell a net long position (i.e. an asset) for a particular risk exposure or to transfer a net short position (i.e. a liability) for a particular risk exposure in an orderly transaction between market participants at the balance sheet date under current market conditions. Accordingly, the Group measures the fair value of the group of financial assets and liabilities consistently with how market participants would price the net risk exposure at the measurement date. Unrecognised gains as a result of the use of valuation models using unobservable inputs The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair value at initial recognition) and the amount that would have arisen had valuation models using unobservable inputs been used on initial recognition, less amounts subsequently recognised, is £126m (2021: £133m) for financial instruments measured at fair value and £216m (2021: £230m) for financial instruments carried at amortised cost. There are additions and FX gains of £59m (2021: £59m), and amortisation and releases of £66m (2021: £42m) for financial instruments measured at fair value and additions of £0m (2021: £0m) and amortisation and releases of £14m (2021: £17m) for financial instruments measured at amortised cost. Third-party credit enhancements Structured and brokered certificates of deposit issued by Barclays are insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC) in the US. The FDIC is funded by premiums that Barclays and other banks pay for deposit insurance coverage. The carrying value of these issued certificates of deposit that are designated under the IFRS 9 fair value option includes this third party credit enhancement. The on-balance sheet value of these brokered certificates of deposit amounted to £5,197m (2021: £790m). Comparison of carrying amounts and fair values for assets and liabilities not held at fair value The following table summarises the fair value of financial assets and liabilities measured at amortised cost on the Group’s balance sheet: 2022 2021 Carrying Carrying amount Fair value Level 1 Level 2 Level 3 amount Fair value Level 1 Level 2 Level 3 As at 31 December £m £m £m £m £m £m £m £m £m £m Financial assets Loans and advances at amortised cost 398,779 391,661 15,117 113,153 263,391 361,451 362,424 17,381 83,191 261,852 Reverse repurchase agreements and other similar secured lending 776 776 — 776 — 3,227 3,227 — 3,227 — Financial liabilities Deposits at amortised cost (545,782) (545,738) (426,016) (116,157) (3,565) (519,433) (519,436) (434,431) (83,501) (1,504) Repurchase agreements and other similar secured borrowing (27,052) (27,054) — (27,054) — (28,352) (28,358) — (28,358) — Debt securities in issue (112,881) (113,276) — (110,151) (3,125) (98,867) (100,657) — (98,364) (2,293) Subordinated liabilities (11,423) (11,474) — (11,254) (220) (12,759) (13,334) — (13,267) (67) The fair value is an estimate of the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As a wide range of valuation techniques are available, it may not be appropriate to directly compare this fair value information to independent market sources or other financial institutions. Different valuation methodologies and assumptions can have a significant impact on fair values which are based on unobservable inputs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 467 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value Financial assets The carrying value of financial assets held at amortised cost is determined in accordance with the relevant accounting policy in Note 19. Loans and advances at amortised cost The fair value of loans and advances, for the purpose of this disclosure, is derived from discounting expected cash flows in a way that reflects the current market price for lending to issuers of similar credit quality. Where market data or credit information on the underlying borrowers is unavailable, a number of proxy/extrapolation techniques are employed to determine the appropriate discount rates. For 2022, the fair value is lower than carrying value mainly on fixed rate products driven by rising interest rates. The majority will be part of a wider portfolio which includes fair valued instruments that are not presented in this table. Reverse repurchase agreements and other similar secured borrowing The fair value of reverse repurchase agreements approximates carrying amount as these balances are generally short dated and fully collateralised. Financial liabilities The carrying value of financial liabilities held at amortised cost is determined in accordance with the accounting policy in Note 1. Deposits at amortised cost In many cases, the fair value disclosed approximates carrying value because the instruments are short term in nature or have interest rates that reprice frequently, such as customer accounts and other deposits and short-term debt securities. The fair value for deposits with longer-term maturities, mainly time deposits, are estimated using discounted cash flows applying either market rates or current rates for deposits of similar remaining maturities. Consequently, the fair value discount is minimal. Repurchase agreements and other similar secured borrowing The fair value of repurchase agreements approximates carrying amounts as these balances are generally short dated. Debt securities in issue Fair values of other debt securities in issue are based on quoted prices where available, or where the instruments are short dated, carrying amount approximates fair value. Subordinated liabilities Fair values for dated and undated convertible and non-convertible loan capital are based on quoted market rates for the issuer concerned or issuers with similar terms and conditions.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 468 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets and liabilities held at fair value 18 Offsetting financial assets and financial liabilities In accordance with IAS 32 Financial Instruments: Presentation, the Group reports financial assets and financial liabilities on a net basis on the balance sheet only if there is a legally enforceable right to set-off the recognised amounts and there is intention to settle on a net basis, or to realise the asset and settle the liability simultaneously. The following table shows the impact of netting arrangements on: ▪ all financial assets and liabilities that are reported net on the balance sheet ▪ all derivative financial instruments and reverse repurchase and repurchase agreements and other similar secured lending and borrowing agreements that are subject to enforceable master netting arrangements or similar agreements, but do not qualify for balance sheet netting. The ‘Net amounts’ presented are not intended to represent the Group’s actual exposure to credit risk, as a variety of credit mitigation strategies are employed in addition to netting and collateral arrangements. Amounts subject to enforceable netting arrangements Effects of offsetting on-balance sheet Related amounts not offset Amounts not Net amounts subject to reported on enforceable Amounts the balance Financial Financial netting Balance sheet a b c d Gross amounts offset sheet instruments collateral Net amount arrangements total £m £m £m £m £m £m £m £m As at 31 December 2022 Derivative financial assets 374,253 (76,429) 297,824 (238,337) (45,981) 13,506 4,556 302,380 Reverse repurchase agreements and e other similar secured lending 558,977 (396,323) 162,654 — (162,024) 630 2,803 165,457 Total assets 933,230 (472,752) 460,478 (238,337) (208,005) 14,136 7,359 467,837 Derivative financial liabilities (360,630) 76,530 (284,100) 238,337 26,639 (19,124) (5,520) (289,620) Repurchase agreements and other e similar secured borrowing (571,774) 396,323 (175,451) — 175,451 — (24,347) (199,798) Total liabilities (932,404) 472,853 (459,551) 238,337 202,090 (19,124) (29,867) (489,418) As at 31 December 2021 Derivative financial assets 279,568 (24,137) 255,431 (202,519) (40,485) 12,427 7,141 262,572 Reverse repurchase agreements and e other similar secured lending 514,360 (370,003) 144,357 — (143,854) 503 3,884 148,241 Total assets 793,928 (394,140) 399,788 (202,519) (184,339) 12,930 11,025 410,813 Derivative financial liabilities (274,356) 23,606 (250,750) 202,519 34,321 (13,910) (6,133) (256,883) Repurchase agreements and other e similar secured borrowing (535,653) 370,003 (165,650) — 165,650 — (30,762) (196,412) Total liabilities (810,009) 393,609 (416,400) 202,519 199,971 (13,910) (36,895) (453,295) Notes a Amounts offset for derivative financial assets additionally includes cash collateral netted of £15,199m (2021: £3,815m). Amounts offset for derivative financial liabilities additionally includes cash collateral netted of £15,098m (2021: £4,346m). Settlements assets and liabilities have been offset amounting to £24,250m (2021: £22,837m). b Financial collateral of £45,981m (2021: £40,485m) was received in respect of derivative assets, including £34,547m (2021: £34,598m) of cash collateral and £11,434m (2021: £5,887m) of non-cash collateral. Financial collateral of £26,639m (2021: £34,321m) was placed in respect of derivative liabilities, including £25,222m (2021: £32,031m) of cash collateral and £1,417m (2021: £2,290m) of non- cash collateral. The collateral amounts are limited to net balance sheet exposure so as to not include overcollateralisation. c This column includes contractual rights of set-off that are subject to uncertainty under the laws of the relevant jurisdiction. d The balance sheet total is the sum of ‘Net amounts reported on the balance sheet’ that are subject to enforceable netting arrangements and ‘Amounts not subject to enforceable netting arrangements’. e Reverse repurchase agreements and other similar secured lending of £165,457m (2021: £148,241m) is split by fair value £164,681m (2021: £145,014m) and amortised cost £776m (2021: £3,227m). Repurchase agreements and other similar secured borrowing of £199,798m (2021: £196,412m) is split by fair value £172,746m (2021: £168,060m) and amortised cost £27,052m (2021: £28,352m). Derivative assets and liabilities The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set-off under netting agreements, such as the ISDA Master Agreement or derivative exchange or clearing counterparty agreements, whereby all outstanding transactions with the same counterparty can be offset and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events occur. Financial collateral refers to cash and non-cash collateral obtained, typically daily or weekly, to cover the net exposure between counterparties by enabling the collateral to be realised in an event of default or if other predetermined events occur. Repurchase and reverse repurchase agreements and other similar secured lending and borrowing The ‘Financial instruments’ column identifies financial assets and liabilities that are subject to set-off under netting agreements, such as Global Master Repurchase Agreements and Global Master Securities Lending Agreements, whereby all outstanding transactions with the same counterparty can be offset and close-out netting applied across all outstanding transactions covered by the agreements if an event of default or other predetermined events occur. Financial collateral typically comprises highly liquid securities which are legally transferred and can be liquidated in the event of counterparty default. These offsetting and collateral arrangements and other credit risk mitigation strategies used by the Group are further explained in the Credit risk management section.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 469 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments Assets at amortised cost and other investments The notes included in this section focus on the Group’s loans and advances and deposits at amortised cost, leases, property, plant and equipment and goodwill and intangible assets. Details regarding the Group’s liquidity and capital position can be found in the Treasury and Capital risk section. 19 Loans and advances and deposits at amortised cost Accounting for loans and advances and deposits held at amortised cost Loans and advances to customers and banks, customer accounts, debt securities and most financial liabilities, are held at amortised cost. That is, the initial fair value (which is normally the amount advanced or borrowed) is adjusted for repayments and the amortisation of coupon, fees and expenses to represent the effective interest rate of the asset or liability. Balances deferred on-balance sheet as effective interest rate adjustments are amortised to interest income over the life of the financial instrument to which they relate. Financial assets that are held in a business model to collect the contractual cash flows and that contain contractual terms that give rise on specified dates to cash flows that are SPPI, are measured at amortised cost. The carrying value of these financial assets at initial recognition includes any directly attributable transaction costs. Refer to Note 1 for details on ‘solely payments of principal and interest’. In determining whether the business model is a ‘hold to collect’ model, the objective of the business model must be to hold the financial asset to collect contractual cash flows rather than holding the financial asset for trading or short-term profit taking purposes. While the objective of the business model must be to hold the financial asset to collect contractual cash flows this does not mean the Group is required to hold the financial assets until maturity. When determining if the business model objective is to collect contractual cash flows the Group will consider past sales and expectations about future sales. Loans and advances and deposits at amortised cost 2022 2021 As at 31 December £m £m Loans and advances at amortised cost to banks 10,015 9,698 Loans and advances at amortised cost to customers 343,277 319,922 Debt securities at amortised cost 45,487 31,831 Total loans and advances at amortised cost 398,779 361,451 Deposits at amortised cost from banks 19,979 17,819 Deposits at amortised cost from customers 525,803 501,614 Total deposits at amortised cost 545,782 519,433 20 Property, plant and equipment Accounting for property, plant and equipment The Group applies IAS 16 Property Plant and Equipment and IAS 40 Investment Properties. Property, plant and equipment is stated at cost, which includes direct and incremental acquisition costs less accumulated depreciation and provisions for impairment, if required. Subsequent costs are capitalised if these result in enhancement of the asset. Depreciation is provided on the depreciable amount of items of property, plant and equipment on a straight-line basis over their estimated useful economic lives. Depreciation rates, methods and the residual values underlying the calculation of depreciation of items of property, plant and equipment are kept under review to take account of any change in circumstances. The Group uses the following annual rates in calculating depreciation: Annual rates in calculating depreciation Depreciation rate Freehold land Not depreciated Freehold buildings and long-leasehold property (more than 50 years to run) 2-3.3% Leasehold property over the remaining life of the lease (less than 50 years to run) Over the remaining life of the lease Costs of adaptation of freehold and leasehold property 6-10% Equipment installed in freehold and leasehold property 6-10% Computers and similar equipment 17-33% Fixtures and fittings and other equipment 9-20% Costs of adaptation and installed equipment are depreciated over the shorter of the life of the lease or the depreciation rates noted in the table above. Investment property The Group initially recognises investment property at cost, and subsequently at fair value at each balance sheet date, reflecting market conditions at the reporting date. Gains and losses on remeasurement are included in the income statement.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 470 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments Investment Right of use a property Property Equipment assets Total £m £m £m £m £m Cost As at 1 January 2022 7 4,131 3,210 1,920 9,268 Additions — 273 313 37 623 b Disposals (1) (923) (641) (68) (1,633) Exchange and other movements (1) 104 136 61 300 As at 31 December 2022 5 3,585 3,018 1,950 8,558 Accumulated depreciation and impairment As at 1 January 2022 — (2,255) (2,586) (872) (5,713) Depreciation charge — (181) (227) (206) (614) Impairment — (23) — (22) (45) b Disposals — 882 630 65 1,577 Exchange and other movements — (65) (61) (21) (147) As at 31 December 2022 — (1,642) (2,244) (1,056) (4,942) Net book value 5 1,943 774 894 3,616 Cost As at 1 January 2021 10 4,002 3,091 1,934 9,037 Additions — 274 189 32 495 Disposals (2) (160) (74) (114) (350) Exchange and other movements (1) 15 4 68 86 As at 31 December 2021 7 4,131 3,210 1,920 9,268 Accumulated depreciation and impairment As at 1 January 2021 — (2,013) (2,421) (567) (5,001) Depreciation charge — (249) (222) (204) (675) Impairment — (106) — (170) (276) Disposals — 136 66 60 262 Exchange and other movements — (23) (9) 9 (23) As at 31 December 2021 — (2,255) (2,586) (872) (5,713) Net book value 7 1,876 624 1,048 3,555 Notes a Right of use (ROU) asset balances relate to property leases under IFRS 16. Refer to Note 21 for further details. b Disposals primarily pertain to fully depreciated assets which are not in use. Property rentals of £10m (2021: £16m) have been included in other income. The fair value of investment property is determined by reference to current market prices for similar properties, adjusted as necessary for condition and location, or by reference to recent transactions updated to reflect current economic conditions. Discounted cash flow techniques may be employed to calculate fair value where there have been no recent transactions, using current external market inputs such as market rents and interest rates. Valuations are carried out by management with the support of appropriately qualified independent valuers.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 471 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments 21 Leases Accounting for leases IFRS 16 applies to all leases with the exception of licences of intellectual property, rights held by licensing agreements within the scope of IAS 38 Intangible Assets, service concession arrangements, leases of biological assets within the scope of IAS 41 Agriculture and leases of minerals, oil, natural gas and similar non-regenerative resources. IFRS 16 includes an accounting policy choice for a lessee to elect not to apply IFRS 16 to remaining assets within the scope of IAS 38 Intangible Assets which the Group has decided to apply. When the Group is the lessee, it is required to recognise both: ▪ A lease liability, measured at the present value of remaining cash flows on the lease, and ▪ A right of use (ROU) asset, measured at the amount of the initial measurement of the lease liability, plus any lease payments made prior to commencement date, initial direct costs, and estimated costs of restoring the underlying asset to the condition required by the lease, less any lease incentives received. Subsequently the lease liability will increase for the accrual of interest, resulting in a constant rate of return throughout the life of the lease, and reduce when payments are made. The right of use asset will amortise to the income statement over the life of the lease. The lease liability is remeasured when there is a change in one of the following: ▪ Future lease payments arising from a change in an index or rate; ▪ The Group’s estimate of the amount expected to be payable under a residual value guarantee; or ▪ The Group’s assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying amount of the ROU asset, or is recorded in the income statement if the carrying amount of the ROU asset has been reduced to nil. On the balance sheet, the ROU assets are included within property, plant and equipment and the lease liabilities are included within other liabilities. The Group applies the recognition exemption in IFRS 16 for leases with a term not exceeding 12 months. For these leases the lease payments are recognised as an expense on a straight line basis over the lease term unless another systematic basis is more appropriate. When the Group is the lessor, the lease must be classified as either a finance lease or an operating lease. A finance lease is a lease which confers substantially all the risks and rewards of the leased assets on the lessee. An operating lease is a lease where substantially all of the risks and rewards of the leased asset remain with the lessor. When the lease is deemed a finance lease, the leased asset is not held on the balance sheet; instead a finance lease receivable is recognised representing the minimum lease payments receivable under the terms of the lease, discounted at the rate of interest implicit in the lease. When the lease is deemed an operating lease, the lease income is recognised on a straight-line basis over the period of the lease unless another systematic basis is more appropriate. The Group holds the leased assets on balance sheet within property, plant and equipment. As a Lessor Finance lease receivables are included within loans and advances at amortised cost. The following table sets out a maturity analysis of lease receivables, showing the lease payments to be received after the reporting date. 2022 2021 Present value Present value Gross of minimum Gross of minimum investment in lease Unguaranteed investment in lease Unguaranteed finance lease Future finance payments residual finance lease Future finance payments residual receivables income receivable values receivables income receivable values £m £m £m £m £m £m £m £m Not more than one year 14 (1) 13 — 29 (3) 26 — One to two years 9 (1) 8 — 19 (2) 17 — Two to three years 2 — 2 — 6 — 6 — Three to four years 1 — 1 — 2 — 2 — Four to five years 1 — 1 — 1 — 1 — Over five years 1 — 1 — 1 — 1 — Total 28 (2) 26 — 58 (5) 53 — Barclays Asset Finance provided leasing and other asset finance facilities across a broad range of asset types to business and individual customers.There is no impairment allowance for finance lease receivables in current and previous year. The Group does not have any material operating leases as a lessor.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 472 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments Finance lease income Finance lease income is included within interest income. The following table shows amounts recognised in the income statement during the year. 2022 2021 £m £m Finance income from net investment in lease 2 21 Profit on sales — 1 As a Lessee The Group leases various offices, branches and other premises under non-cancellable lease arrangements to meet its operational business requirements. In some instances, Barclays will sublease property to third parties when it is no longer needed to meet business requirements. Currently, Barclays does not have any material subleasing arrangements. ROU asset balances relate to property leases only. Refer to Note 20 for the carrying amount of ROU assets. The total expenses recognised during the year for short term leases were £1m (2021: £3m). The portfolio of short term leases to which Barclays is exposed at the end of the year is not dissimilar to the expenses recognised in the year. Lease liabilities 2022 2021 £m £m As at 1 January 1,317 1,444 Interest expense 56 64 New leases 42 43 Disposals (13) (54) Cash payments (239) (258) Exchange and other movements 53 78 As at 31 December (see Note 23) 1,216 1,317 The below table sets out a maturity analysis of undiscounted lease liabilities, showing the lease payments after the reporting date. Undiscounted lease liabilities maturity analysis 2022 2021 £m £m Not more than one year 229 230 One to two years 216 215 Two to three years 193 197 Three to four years 160 182 Four to five years 140 149 Five to ten years 457 503 Greater than ten years 105 163 Total undiscounted lease liabilities as at 31 December 1,500 1,639 In addition to the cash flows identified above, Barclays is exposed to: ▪ Variable lease payments: This variability will typically arise from either inflation index instruments or market-based pricing adjustments. Currently, Barclays has 401 (2021: 609) leases out of the total 896 (2021: 1,111) leases which have variable lease payment terms based on market-based pricing adjustments. Of the gross cash flows identified above, £1,087m (2021: £1,196m) is attributable to leases with some degree of variability predominately linked to market-based pricing adjustments. ▪ Extension and termination options: The table above represents Barclays' best estimate of future cash outflows for leases, including assumptions regarding the exercising of contractual extension and termination options. The above gross cash flows have been reduced by £516m (2021: £434m) for leases where Barclays is highly expected to exercise an early termination option. However, there is no significant impact where Barclays is expected to exercise an extension option. In 2022, the Group recorded a one-off gain of £88m from sale and leaseback (2021: £33m). The Group does not have any restrictions or covenants imposed by the lessor on its property leases which restrict its businesses.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 473 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments 22 Goodwill and intangible assets Accounting for goodwill and intangible assets Goodwill The carrying value of goodwill is determined in accordance with IFRS 3 Business Combinations and IAS 36 Impairment of Assets. Goodwill arising on the acquisition of subsidiaries represents the excess of the fair value of the purchase consideration over the fair value of the Group’s share of the assets acquired and the liabilities and contingent liabilities assumed on the date of the acquisition. Goodwill is reviewed annually for impairment, or more frequently when there are indications that impairment may have occurred. The test involves comparing the carrying value of a cash generating unit (CGU) including goodwill with the present value of the pre-tax cash flows, discounted at a rate of interest that reflects the inherent risks, of the CGU to which the goodwill relates, or the CGU's fair value if this is higher. Intangible assets Intangible assets other than goodwill are accounted for in accordance with IAS 38 Intangible Assets. Intangible assets are initially recognised when they are separable or arise from contractual or other legal rights, the cost can be measured reliably and, in the case of intangible assets not acquired in a business combination, where it is probable that future economic benefits attributable to the assets will flow from their use. For internally generated intangible assets, only costs incurred during the development phase are capitalised. Expenditure in the research phase is expensed when it is incurred. Intangible assets are stated at cost (which is, in the case of assets acquired in a business combination, the acquisition date fair value) less accumulated amortisation and impairment, if any, and are amortised over their useful lives in a manner that reflects the pattern to which they contribute to future cash flows, generally using the amortisation periods set out below: Annual rates in calculating amortisation Amortisation period Goodwill Not amortised a Internally generated software 12 months to 6 years Other software 12 months to 6 years Customer lists 12 months to 25 years Licences and other 12 months to 25 years Note a Exceptions to the above rate relate to useful lives of certain core banking platforms that are assessed individually and, if appropriate, amortised over longer periods ranging from 10 to 15 years. Intangible assets are reviewed for impairment when there are indications that impairment may have occurred. Intangible assets not yet available for use are reviewed annually for impairment.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 474 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments Intangible assets Internally generated Other Customer Licences Goodwill software software lists and other Total £m £m £m £m £m £m 2022 Cost As at 1 January 2022 4,718 7,180 626 1,431 908 14,863 Additions — 1,047 18 76 19 1,160 a Disposals — (774) (36) (12) (39) (861) Exchange and other movements 19 174 12 159 96 460 As at 31 December 2022 4,737 7,627 620 1,654 984 15,622 Accumulated amortisation and impairment As at 1 January 2022 (825) (3,884) (364) (1,300) (429) (6,802) a Disposals — 774 36 12 39 861 Amortisation charge — (946) (50) (44) (69) (1,109) Impairment charge — (18) — — — (18) Exchange and other movements — (121) (7) (143) (44) (315) As at 31 December 2022 (825) (4,195) (385) (1,475) (503) (7,383) Net book value 3,912 3,432 235 179 481 8,239 2021 Cost As at 1 January 2021 4,716 7,247 639 1,419 490 14,511 Additions — 842 6 — 407 1,255 a Disposals — (894) (15) (5) (3) (917) Exchange and other movements 2 (15) (4) 17 14 14 As at 31 December 2021 4,718 7,180 626 1,431 908 14,863 Accumulated amortisation and impairment As at 1 January 2021 (825) (3,779) (328) (1,252) (379) (6,563) a Disposals — 894 15 5 3 917 Amortisation charge — (867) (51) (36) (44) (998) Impairment charge — (127) — — — (127) Exchange and other movements — (5) — (17) (9) (31) As at 31 December 2021 (825) (3,884) (364) (1,300) (429) (6,802) Net book value 3,893 3,296 262 131 479 8,061 Note a Disposals pertain to fully amortised assets which are not in use. Goodwill Goodwill and Intangible assets are allocated to business operations according to business segments as follows: 2022 2021 Goodwill Intangibles Total Goodwill Intangibles Total £m £m £m £m £m £m Barclays UK 3,560 1,263 4,823 3,560 1,233 4,793 Barclays International 310 3,062 3,372 291 2,930 3,221 Head Office 42 2 44 42 5 47 Total 3,912 4,327 8,239 3,893 4,168 8,061

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 475 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments Critical accounting estimates and judgements Goodwill Testing goodwill for impairment involves a significant amount of judgement. Goodwill is allocated to CGUs for the purpose of impairment testing. The review of goodwill for impairment involves calculating a value in use (VIU) valuation which is compared to the carrying value of a CGU associated with the goodwill to determine whether any impairment has occurred. This includes the identification of independent CGUs across the organisation and the allocation of goodwill to those CGUs. The calculation of a value in use contains a high degree of uncertainty in estimating the future cash flows and the rates used to discount them. Key judgements include determining the carrying value of the CGU, the cash flows and discount rates used in the calculation. ▪ The cash flow forecasts used by management involve judgement and are based upon a view of the future prospects of the business and market conditions at the point in time the assessment is prepared. The estimation of cash flows is sensitive to the periods for which detailed forecasts are available and to assumptions regarding long-term sustainable cash flows. ▪ The discount rates applied to the future cash flows also involve judgement as they can have a significant impact on the valuation. The discount rates used are compared to market participants to ensure that they are appropriate and based on an estimated cost of equity for each CGU. ▪ The choice of a terminal growth rate used to determine the present value of the future cash flows of the CGUs is also a judgement that can impact the outcome of the assessment. The terminal growth rate and discount rates used may vary due to external market rates and economic conditions that are beyond management’s control, including the potential effect of climate change. Further details of some of the key judgements are set out below. 2022 impairment review The 2022 impairment review was performed during Q4 2022. In comparison to the prior year, there is an expectation of an increasing interest rate environment which would impact favourably on the Barclays UK CGUs. A detailed assessment has been performed, with the approach and results of this analysis set out below. Determining the carrying value of CGUs The carrying value for each CGU is the sum of the tangible equity, goodwill and intangible asset balances associated with that CGU. The Group manages the assets and liabilities of its CGUs with reference to the tangible equity of the respective businesses. That tangible equity is derived from the level of risk weighted assets (RWAs) and capital required to be deployed in the CGU and therefore reflects its relative risk, as well as the level of capital that management consider a market participant would be required to hold and retain to support business growth. The goodwill held across the Group has been allocated to the CGU where it originated, based upon historical records. The intangible asset balances are allocated to the CGUs based upon their expected usage of these assets. Cash flows The five-year cash flows used in the calculation are based on the formally agreed medium-term plans approved by the Board. These are prepared using macroeconomic assumptions which management consider reasonable and supportable, and reflect business agreed initiatives for the forecast period. The macroeconomic assumptions underpinning the medium term plan were determined in August 2022 and management has considered whether there are subsequent significant changes in those assumptions which would adversely impact the results of the impairment review. As required by IAS 36, all estimates of future cash flows exclude cash inflows or outflows that are expected to arise from restructuring initiatives where a constructive obligation to carry out the plan does not yet exist. In line with prior year treatment, the Education, Social Housing and Local Authority (ESHLA) portfolio has been excluded from the Business Banking CGU cash flows. This is a legacy loan portfolio which was previously within the Non-Core bank and was not part of the business to which the goodwill relates. As such, the cash flows relating to this portfolio have been excluded from the Business Banking VIU calculation. Discount rates IAS 36 requires that the discount rate used in a value in use calculation reflects the pre-tax rate an investor would require if they were to choose an investment that would generate similar cash flows to those that the entity expects to generate from the asset. In determining the discount rate, management have in previous years identified the cost of equity associated with market participants that closely resemble the Group's CGUs and adjusted them for tax to arrive at the pre-tax equivalent rate. This method assumed a static rate of tax that was applicable to the pre-tax cash flows of the CGU. The cost of equity without adjusting for the tax rate has been used as the discount rate in the 2022 impairment assessment and applied to the post tax cash flows of the CGU. This post-tax method incorporates the impact of changing tax rates on the cash flows and is expected to produce the same VIU result as the pre-tax method adjusted for varying tax rates. Using the resultant VIU the equivalent pre-tax discount rate has been calculated. The range of equivalent pre-tax discount rates applicable across the CGUs range from 14.1% to 16.5% (2021: 12.5% to 15.1%). Terminal growth rate The terminal growth rate is used to estimate the effect of projecting cash flows to the end of an asset’s useful economic life. It is management’s judgement that the cash flows associated with the CGUs will grow in line with the major economies in which the Group operates. Inflation rates are used as an approximation of future growth rates and form the basis of the terminal growth rates applied. The terminal growth rate used is 2.0% (2021: 2.0%).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 476 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Assets at amortised cost and other investments Outcome of goodwill and intangibles review The Personal Banking and Business Banking CGUs carry the majority of the Group’s goodwill balance, predominantly as a consequence of the Woolwich acquisition. The goodwill within Personal Banking was £2,752m (2021: £2,752m), of which £2,501m (2021: £2,501m) was attributable to Woolwich, and within Business Banking was £629m (2021: £629m), fully attributable to Woolwich. The recoverable amount for both Personal Banking and Business Banking have increased in comparison to the 2021 impairment review, reflective of improvements in the interest rate and macroeconomic outlook. The largest portion of the Group’s intangible assets sit within the Cards and Payments CGU, part of Barclays International with an allocation of £1,531m (2021: £1,351m). Based on management’s plans and assumptions the value in use exceeds the carrying value of the CGUs and no impairment has been indicated. The outcome of the impairment review for Personal Banking, Business Banking and Cards and Payments are set out below: Value in use Value in use exceeding carrying exceeding carrying Cash generating unit Tangible equity Goodwill Intangibles Carrying value Value in use value value 2021 £m £m £m £m £m £m £m 5,091 2,752 928 8,771 Personal Banking 13,438 4,667 1,489 1,549 629 216 2,394 Business Banking 9,017 6,623 3,623 Cards and Payments 3,780 229 1,531 5,540 7,138 1,598 1,025 Total 10,420 3,610 2,675 16,705 29,593 12,888 6,137 Sensitivity of key judgements The CGUs are sensitive to possible adverse changes in the key assumptions that support the recoverable amount: Cash flows: The medium-term plans used to determine the cash flows used in the VIU calculation rely on macroeconomic forecasts, including interest rates, GDP and unemployment, and forecast levels of market and client activity. Interest rate assumptions impact planned cash flows from both customer income and structural hedge contributions and therefore cash flow expectations are highly sensitive to movements in the yield curve. The cash flows also contain assumptions with regard to the prudential and financial conduct regulatory environment which may be subject to change. Given the current level of economic uncertainty, a 10% reduction in cash flows has been provided to show the sensitivity of the outcome to a change in these key assumptions. Discount rate: The discount rate should reflect the market risk-free rate adjusted for the inherent risks of the business it is applied to. Management have identified discount rates for comparable businesses and consider these to be a reasonable estimate of a suitable market rate for the profile of the business unit being tested. The risk that these discount rates may not be appropriate is quantified below and shows the impact of a 100 bps change in the discount rate. Terminal growth rate: The terminal growth rate is used to estimate the cash flows into perpetuity based on the expected longevity of the CGUs' businesses. The terminal growth rate is sensitive to uncertainties in the macroeconomic environment. The risk that using inflation data may not be appropriate for its determination is quantified below and shows the impact of 100 bps change in the terminal growth rate. Allocated capital rate: Tangible equity is allocated based on the level of risk weighted assets (RWAs) and capital required to be deployed in the CGU which is dependent on the relative risk of businesses. The capital ratio used in determining the level of tangible equity allocated to the CGU and its capital cash flows could move over time. The impact of a 50bps increase in capital ratio is quantified below. The sensitivity of the value in use to key judgements in the calculations is set out below: Reduction in headroom Change required to reduce headroom to zero Value in 100 bps 100 bps use increase decrease 50 bps 10% exceeding Terminal in the in terminal increase to reduction in Terminal Allocated Carrying Value in carrying Discount growth discount growth allocated forecasted Discount growth capital Cash Cash generating unit value use value rate rate rate rate capital rate cash flows rate rate rate flows £m £m £m % % £m £m £m £m % % % % Personal Banking 8,771 13,438 4,667 16.5 2.0 (944) (596) (279) (1,493) 6.9 (14.8) 8.4 (31.3) Cards and Payments 5,540 7,138 1,598 15.9 2.0 (724) (515) (287) (1,005) 2.5 (3.7) 2.8 (15.9) Total 14,311 20,576 6,265

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 477 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings Accruals, provisions, contingent liabilities and legal proceedings The notes included in this section focus on the Group’s accruals, provisions and contingent liabilities. Provisions are recognised for present obligations arising as consequences of past events where it is probable that a transfer of economic benefit will be necessary to settle the obligation, and it can be reliably estimated. Contingent liabilities reflect potential liabilities that are not recognised on the balance sheet. 23 Other liabilities 2022 2021 £m £m Accruals and deferred income 4,618 4,173 Other creditors 7,870 4,793 Items in the course of collection due to other banks 85 202 Lease liabilities (refer to Note 21) 1,216 1,317 Liabilities included in disposal groups classified as held for sale — 20 Other liabilities 13,789 10,505 24 Provisions Accounting for provisions The Group applies IAS 37 Provisions, Contingent Liabilities and Contingent Assets in accounting for non-financial liabilities. Provisions are recognised for present obligations arising as consequences of past events where it is more likely than not that a transfer of economic benefit will be necessary to settle the obligation, which can be reliably estimated. Provision is made for the anticipated cost of restructuring, including redundancy costs, when an obligation exists; for example, when the Group has a detailed formal plan for restructuring a business and has raised valid expectations in those affected by the restructuring by announcing its main features or starting to implement the plan. Critical accounting estimates and judgements The financial reporting of provisions involves a significant degree of judgement and is complex. Identifying whether a present obligation exists and estimating the probability, timing, nature and quantum of the outflows that may arise from past events requires judgements to be made based on the specific facts and circumstances relating to individual events and often requires specialist professional advice. When matters are at an early stage, accounting judgements and estimates can be difficult because of the high degree of uncertainty involved. Management continues to monitor matters as they develop to re-evaluate on an ongoing basis whether provisions should be recognised, however there can remain a wide range of possible outcomes and uncertainties, particularly in relation to legal, competition and regulatory matters, and as a result it is often not practicable to make meaningful estimates even when matters are at a more advanced stage. The complexity of such matters often requires the input of specialist professional advice in making assessments to produce estimates. Customer redress and legal, competition and regulatory matters are areas where a higher degree of professional judgement is required. The amount that is recognised as a provision can also be very sensitive to the assumptions made in calculating it. This gives rise to a large range of potential outcomes which require judgement in determining an appropriate provision level. See Note 26 for more detail of legal, competition and regulatory matters. b b Restated Restated Undrawn Legal, contractually competition Redundancy committed and Onerous and facilities and Customer regulatory Sundry a contracts restructuring guarantees redress matters provisions Total £m £m £m £m £m £m £m 5 326 542 530 226 279 1,908 As at 1 January 2022 Additions — 77 145 1,184 462 120 1,988 Amounts utilised (2) (186) — (1,393) (557) (60) (2,198) Unused amounts reversed (3) (88) (128) (94) (15) (64) (392) Exchange and other movements — 7 24 151 43 13 238 As at 31 December 2022 — 136 583 378 159 288 1,544 Notes a Undrawn contractually committed facilities and guarantees provisions are accounted for under IFRS 9. b 2021 financial metrics have been restated to reflect the impact of the Over-issuance of Securities. See Restatement of financial statements (Note 1a) on page 428 for further details. Provisions expected to be recovered or settled within no more than 12 months after 31 December 2022 were £1,348m (2021: £1,754m). Onerous contracts Onerous contract provisions comprise an estimate of unavoidable costs involved with fulfilling the terms and conditions of contracts net of any expected benefits to be received.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 478 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings Redundancy and restructuring These provisions comprise the estimated cost of restructuring, including redundancy costs where an obligation exists. Additions made during the year relate to formal restructuring plans and have either been utilised, or reversed where total costs are now expected to be lower than the original provision amount. Undrawn contractually committed facilities and guarantees Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to the drawn exposure to the extent that the allowance does not exceed the exposure as ECL is not reported separately. Any excess is reported on the liability side of the balance sheet as a provision. For wholesale portfolios, the impairment allowance on the undrawn exposure is reported on the liability side of the balance sheet as a provision. For further information, refer to the Credit risk section for loan commitments and financial guarantees on page 308. Customer redress Customer redress provisions comprise the estimated cost of making redress payments to customers, clients and counterparties for losses or damages associated with inappropriate judgement in the execution of the Group’s business activities. Legal, competition and regulatory matters The Group is engaged in various legal proceedings, both in the UK and a number of other overseas jurisdictions, including the US. For further information in relation to legal proceedings and discussion of the associated uncertainties, refer to Note 26. Sundry provisions This category includes provisions that do not fit into any of the other categories, such as fraud losses and dilapidation provisions. 25 Contingent liabilities and commitments Accounting for contingent liabilities Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events and present obligations where the transfer of economic resources is uncertain or cannot be reliably measured. Contingent liabilities are not recognised on the balance sheet but are disclosed unless the likelihood of an outflow of economic resources is remote. The following table summarises the nominal principal amount of contingent liabilities and commitments which are not recorded on- balance sheet: 2022 2021 £m £m Guarantees and letters of credit pledged as collateral security 17,760 15,549 Performance guarantees, acceptances and endorsements 6,445 5,797 Total contingent liabilities and financial guarantees 24,205 21,346 Of which: Financial guarantees carried at fair value 1,423 231 Documentary credits and other short-term trade related transactions 1,748 1,584 Standby facilities, credit lines and other commitments 393,760 344,127 Total commitments 395,508 345,711 Of which: Loan commitments carried at fair value 13,471 18,571 Provisions for expected credit losses held against contingent liabilities and commitments equal £583m (2021: £542m) and are reported in Note 24. Further details on contingent liabilities relating to legal and competition and regulatory matters can be found in Note 26.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 479 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings 26 Legal, competition and regulatory matters The Group faces legal, competition and regulatory challenges, many of which are beyond our control. The extent of the impact of these matters cannot always be predicted but may materially impact our operations, financial results, condition and prospects. Matters arising from a set of similar circumstances can give rise to either a contingent liability or a provision, or both, depending on the relevant facts and circumstances. The recognition of provisions in relation to such matters involves critical accounting estimates and judgments in accordance with the relevant accounting policies applicable to Note 24, Provisions. We have not disclosed an estimate of the potential financial impact or effect on the Group of contingent liabilities where it is not currently practicable to do so. Various matters detailed in this note seek damages of an unspecified amount. While certain matters specify the damages claimed, such claimed amounts do not necessarily reflect the Group’s potential financial exposure in respect of those matters. Matters are ordered under headings corresponding to the financial statements in which they are disclosed. 1. Barclays PLC and Barclays Bank PLC Investigations into certain advisory services agreements FCA proceedings In 2008, Barclays Bank PLC and Qatar Holdings LLC entered into two advisory service agreements (the Agreements). The Financial Conduct Authority (FCA) conducted an investigation into whether the Agreements may have related to Barclays PLC’s capital raisings in June and November 2008 (the Capital Raisings) and therefore should have been disclosed in the announcements or public documents relating to the Capital Raisings. In 2013, the FCA issued warning notices (the Warning Notices) finding that Barclays PLC and Barclays Bank PLC acted recklessly and in breach of certain disclosure-related listing rules, and that Barclays PLC was also in breach of Listing Principle 3. The financial penalty provided in the Warning Notices was £50m. Barclays PLC and Barclays Bank PLC contested the findings. In September 2022, the FCA’s Regulatory Decisions Committee (RDC) issued Decision Notices finding that Barclays PLC and Barclays Bank PLC breached certain disclosure-related listing rules. The RDC also found that in relation to the disclosures made in the Capital Raising of November 2008, Barclays PLC and Barclays Bank PLC acted recklessly, and that Barclays PLC breached Listing Principle 3. The RDC upheld the combined penalty of £50m on Barclays PLC and Barclays Bank PLC, the same penalty as in the Warning Notices. Barclays PLC and Barclays Bank PLC have referred the RDC’s findings to the Upper Tribunal for reconsideration. Investigations into LIBOR and other benchmarks and related civil actions Regulators and law enforcement agencies, including certain competition authorities, from a number of governments have conducted investigations relating to Barclays Bank PLC’s involvement in allegedly manipulating certain financial benchmarks, such as LIBOR. Various individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Group and other banks in relation to the alleged manipulation of LIBOR and/or other benchmarks. USD LIBOR civil actions The majority of the USD LIBOR cases, which have been filed in various US jurisdictions, have been consolidated for pre-trial purposes in the US District Court in the Southern District of New York (SDNY). The complaints are substantially similar and allege, among other things, that Barclays PLC, Barclays Bank PLC, Barclays Capital Inc. (BCI) and other financial institutions individually and collectively violated provisions of the US Sherman Antitrust Act (Antitrust Act), the US Commodity Exchange Act (CEA), the US Racketeer Influenced and Corrupt Organizations Act (RICO), the US Securities Exchange Act of 1934 and various state laws by manipulating USD LIBOR rates. Putative class actions and individual actions seek unspecified damages with the exception of one lawsuit, in which the plaintiffs are seeking no less than $100m in actual damages and additional punitive damages against all defendants, including Barclays Bank PLC. Some of the lawsuits also seek trebling of damages under the Antitrust Act and RICO. Barclays Bank PLC has previously settled certain claims. In 2022, Barclays Bank PLC also settled one further matter. The financial impact of the settlement is not material to the Group’s operating results, cash flows or financial position. Sterling LIBOR civil actions In 2016, two putative class actions filed in the SDNY against Barclays Bank PLC, BCI and other Sterling LIBOR panel banks alleging, among other things, that the defendants manipulated the Sterling LIBOR rate in violation of the Antitrust Act, CEA and RICO, were consolidated. The defendants’ motion to dismiss the claims was granted in 2018. The plaintiffs have appealed the dismissal. Japanese Yen LIBOR civil actions In 2012, a putative class action was filed in the SDNY against Barclays Bank PLC and other Japanese Yen LIBOR panel banks by a lead plaintiff involved in exchange-traded derivatives and members of the Japanese Bankers Association’s Euroyen Tokyo Interbank Offered Rate (Euroyen TIBOR) panel. The complaint alleges, among other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates and breaches of the CEA and the Antitrust Act. In 2014, the court dismissed the plaintiff’s antitrust claims, and in 2020, the court dismissed the plaintiff’s remaining CEA claims. In 2015, a second putative class action, making similar allegations to the above class action, was filed in the SDNY against Barclays PLC, Barclays Bank PLC and BCI. Barclays and the plaintiffs have reached a settlement of $17.75m for both actions. A final court approval hearing has been scheduled for March 2023. SIBOR/SOR civil action In 2016, a putative class action was filed in the SDNY against Barclays PLC, Barclays Bank PLC, BCI and other defendants, alleging manipulation of the Singapore Interbank Offered Rate (SIBOR) and Singapore Swap Offer Rate (SOR). The plaintiffs and remaining defendants (which includes Barclays Bank PLC) reached a joint settlement to resolve this matter for $91m, which received final court

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 480 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings approval in November 2022. This matter is now concluded. The financial impact of Barclays’ share of the joint settlement is not material to the Group’s operating results, cash flows or financial position. ICE LIBOR civil actions In 2019, several putative class actions were filed in the SDNY against a panel of banks, including Barclays PLC, Barclays Bank PLC, BCI, other financial institution defendants and Intercontinental Exchange Inc. and certain of its affiliates (ICE), asserting antitrust claims that the defendants manipulated USD LIBOR through the defendants’ submissions to ICE. These actions have been consolidated. The defendants’ motion to dismiss was granted in 2020 and the plaintiffs appealed. In February 2022, the dismissal was affirmed on appeal. The plaintiffs did not seek US Supreme Court review. This matter is now concluded. In August 2020, an ICE LIBOR-related action was filed by a group of individual plaintiffs in the US District Court for the Northern District of California on behalf of individual borrowers and consumers of loans and credit cards with variable interest rates linked to USD ICE LIBOR. The plaintiffs’ motion seeking, among other things, preliminary and permanent injunctions to enjoin the defendants from continuing to set LIBOR or enforce any financial instrument that relies in whole or in part on USD LIBOR was denied. The defendants’ motion to dismiss the case was granted in September 2022. The plaintiffs have filed an amended complaint, which the defendants have moved to dismiss. Non-US benchmarks civil actions There remains one claim, issued in 2017, against Barclays Bank PLC and other banks in the UK in connection with alleged manipulation of LIBOR. Proceedings have also been brought in a number of other jurisdictions in Europe, Argentina and Israel relating to alleged manipulation of LIBOR and EURIBOR. Additional proceedings in other jurisdictions may be brought in the future. Credit Default Swap civil action A putative antitrust class action is pending in New Mexico federal court against Barclays Bank PLC, BCI and various other financial institutions. The plaintiffs, the New Mexico State Investment Council and certain New Mexico pension funds, allege that the defendants conspired to manipulate the benchmark price used to value Credit Default Swap (CDS) contracts at settlement (i.e. the CDS final auction price). The plaintiffs allege violations of US antitrust laws and the CEA, and unjust enrichment under state law. The defendants have moved to dismiss the case. Foreign Exchange investigations and related civil actions The Group has been the subject of investigations in various jurisdictions in relation to certain sales and trading practices in the Foreign Exchange market. Settlements were reached in various jurisdictions in connection with these investigations, including the EU and US. The financial impact of any remaining ongoing investigations is not expected to be material to the Group’s operating results, cash flows or financial position. Various individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the Group and other banks in relation to alleged manipulation of Foreign Exchange markets. US FX opt out civil action In 2018, Barclays Bank PLC and BCI settled a consolidated action filed in the SDNY, alleging manipulation of Foreign Exchange markets (Consolidated FX Action), for a total amount of $384m. Also in 2018, a group of plaintiffs, who opted out of the Consolidated FX Action, filed a complaint in the SDNY against Barclays PLC, Barclays Bank PLC, BCI and other defendants. Some of the plaintiffs’ claims were dismissed in 2020. Barclays PLC, Barclays Bank PLC, and BCI have reached a settlement in principle of all claims against them in the matter. The financial impact of this settlement is not material to the Group’s operating results, cash flows or financial position. US retail basis civil action In 2015, a putative class action was filed against several international banks, including Barclays PLC and BCI, on behalf of a proposed class of individuals who exchanged currencies on a retail basis at bank branches (Retail Basis Claims). The SDNY has ruled that the Retail Basis Claims are not covered by the settlement agreement in the Consolidated FX Action. The Court subsequently dismissed all Retail Basis Claims against the Group and all other defendants. The plaintiffs have filed an amended complaint. Non-US FX civil actions Legal proceedings have been brought or are threatened against Barclays PLC, Barclays Bank PLC, BCI and Barclays Execution Services Limited (BX) in connection with alleged manipulation of Foreign Exchange in the UK, a number of other jurisdictions in Europe, Israel, Brazil and Australia. Additional proceedings may be brought in the future. The above-mentioned proceedings include two purported class actions filed against Barclays PLC, Barclays Bank PLC, BX, BCI and other financial institutions in the UK Competition Appeal Tribunal (CAT) in 2019. The CAT refused to certify these claims in the first quarter of 2022 although the claimants have obtained permission to appeal and judicially review the CAT’s decisions. Also in 2019, a separate claim was filed in the UK in the High Court of Justice (High Court), and subsequently transferred to the CAT, by various banks and asset management firms against Barclays Bank PLC and other financial institutions alleging breaches of European and UK competition laws related to FX trading. This claim has been settled as part of the settlement in principle referred to under the US FX opt out civil action above. Metals-related civil actions A number of US civil complaints, each on behalf of a proposed class of plaintiffs, have been consolidated and transferred to the SDNY. The complaints allege that Barclays Bank PLC and other members of The London Gold Market Fixing Ltd. manipulated the prices of gold and gold derivative contracts in violation of the Antitrust Act and other federal laws. The parties reached a joint settlement to resolve this matter for $50m. The settlement received final court approval in August 2022. This matter is now concluded. The financial impact of Barclays’ share of the joint settlement is not material to the Group’s operating results, cash flows or financial position. A separate US civil complaint by a proposed class of plaintiffs against a number of banks, including Barclays Bank PLC, BCI and BX, alleging

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 481 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings manipulation of the price of silver in violation of the CEA, the Antitrust Act and state antitrust and consumer protection laws, has been dismissed as against the Barclays entities. The plaintiffs have the option to seek the court’s permission to appeal. Civil actions have also been filed in Canadian courts against Barclays PLC, Barclays Bank PLC, Barclays Capital Canada Inc. and BCI on behalf of proposed classes of plaintiffs alleging manipulation of gold and silver prices. US residential mortgage related civil actions There are two pending US Residential Mortgage-Backed Securities (RMBS) related civil actions arising from unresolved repurchase requests submitted by Trustees for certain RMBS, alleging breaches of various loan-level representations and warranties (R&Ws) made by Barclays Bank PLC and/or a subsidiary acquired in 2007. In one action, the Barclays defendants’ motion for summary judgment was granted in June 2022 and the plaintiffs’ R&W breach claim was dismissed. The plaintiffs are appealing the decision. The other repurchase action is pending. Barclays Bank PLC reached settlements to resolve two other repurchase actions, which have received final court approval. Payment of the settlement amounts was completed in July 2022. These matters are now concluded. The financial impact of the settlements is not material to the Group’s operating results, cash flows or financial position. In 2020, a civil litigation claim was filed in the New Mexico First Judicial District Court by the State of New Mexico against six banks, including BCI, on behalf of two New Mexico state pension funds and the New Mexico State Investment Council relating to legacy RMBS purchases. As to BCI, the complaint alleges that the funds purchased approximately $22m in RMBS underwritten by BCI. The parties have reached a joint settlement to resolve this matter for $32.5m. The settlement was paid in April 2022. The financial impact of BCI’s share of the joint settlement is not material to the Group’s operating results, cash flows or financial position. Government and agency securities civil actions Treasury auction securities civil actions Consolidated putative class action complaints filed in US federal court against Barclays Bank PLC, BCI and other financial institutions under the Antitrust Act and state common law allege that the defendants (i) conspired to manipulate the US Treasury securities market and/or (ii) conspired to prevent the creation of certain platforms by boycotting or threatening to boycott such trading platforms. The court dismissed the consolidated action in March 2021. The plaintiffs filed an amended complaint. The defendants’ motion to dismiss the amended complaint was granted in March 2022. The plaintiffs are appealing this decision. In addition, certain plaintiffs have filed a related, direct action against BCI and certain other financial institutions, alleging that defendants conspired to fix and manipulate the US Treasury securities market in violation of the Antitrust Act, the CEA and state common law. Supranational, Sovereign and Agency bonds civil actions Civil antitrust actions have been filed in the SDNY and Federal Court of Canada in Toronto against Barclays Bank PLC, BCI, BX, Barclays Capital Securities Limited and, with respect to the civil action filed in Canada only, Barclays Capital Canada, Inc. and other financial institutions alleging that the defendants conspired to fix prices and restrain competition in the market for US dollar-denominated Supranational, Sovereign and Agency bonds. In one of the actions filed in the SDNY, the court granted the defendants’ motion to dismiss the plaintiffs’ complaint. The dismissal was affirmed on appeal; however, the district court subsequently informed the parties of a potential conflict. The matter was assigned to a new district court judge and the plaintiffs moved to vacate the dismissal order, which was denied. The plaintiffs’ time to appeal has expired and this matter is now concluded. The plaintiffs have voluntarily dismissed the other SDNY action. In the Federal Court of Canada action, the parties have reached a settlement in principle, which will require court approval. The financial impact of the settlement is not expected to be material to the Group’s operating results, cash flows or financial position. Variable Rate Demand Obligations civil actions Civil actions have been filed against Barclays Bank PLC and BCI and other financial institutions alleging the defendants conspired or colluded to artificially inflate interest rates set for Variable Rate Demand Obligations (VRDOs). VRDOs are municipal bonds with interest rates that reset on a periodic basis, most commonly weekly. Two actions in state court have been filed by private plaintiffs on behalf of the states of Illinois and California. Three putative class action complaints have been consolidated in the SDNY. In the consolidated SDNY class action, certain of the plaintiffs' claims were dismissed in November 2020 and June 2022. In the California action, the plaintiffs’ claims were dismissed in June 2021. The plaintiffs have appealed the dismissal. In the Illinois action, trial has been scheduled for August 2023. Odd-lot corporate bonds antitrust class action In 2020, BCI, together with other financial institutions, were named as defendants in a putative class action. The complaint alleges a conspiracy to boycott developing electronic trading platforms for odd-lots and price fixing. The plaintiffs demand unspecified money damages. The defendants’ motion to dismiss was granted in 2021 and the plaintiffs have appealed the dismissal. Interest rate swap and credit default swap US civil actions Barclays PLC, Barclays Bank PLC and BCI, together with other financial institutions that act as market makers for interest rate swaps (IRS), are named as defendants in several antitrust class actions which were consolidated in the SDNY in 2016. The complaints allege the defendants conspired to prevent the development of exchanges for IRS and demand unspecified money damages. In 2018, trueEX LLC filed an antitrust class action in the SDNY against a number of financial institutions including Barclays PLC, Barclays Bank PLC and BCI based on similar allegations with respect to trueEX LLC’s development of an IRS platform. In 2017, Tera Group Inc. filed a separate civil antitrust action in the SDNY claiming that certain conduct alleged in the IRS cases also caused the plaintiff to suffer harm with respect to the Credit Default Swaps market. In 2018 and 2019, respectively, the court dismissed certain claims in both cases for unjust enrichment and tortious interference but denied motions to dismiss the federal and state antitrust claims, which remain pending.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 482 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings BDC Finance L.L.C. In 2008, BDC Finance L.L.C. (BDC) filed a complaint in the Supreme Court of the State of New York (NY Supreme Court), demanding damages of $298m, alleging that Barclays Bank PLC had breached a contract in connection with a portfolio of total return swaps governed by an ISDA Master Agreement (the Master Agreement). Following a trial, the court ruled in 2018 that Barclays Bank PLC was not a defaulting party, which was affirmed on appeal. In April 2021, the trial court entered judgement in favour of Barclays Bank PLC for $3.3m and as yet to be determined legal fees and costs. BDC appealed. In January 2022, the appellate court reversed the trial court’s summary judgment decision in favour of Barclays Bank PLC and remanded the case to the lower court for further proceedings. The parties have filed cross-motions on the scope of trial. The trial has been adjourned pending a decision on the motions and any subsequent appeal. In 2011, BDC’s investment advisor, BDCM Fund Adviser, LLC and its parent company, Black Diamond Capital Holdings, LLC, also sued Barclays Bank PLC and BCI in Connecticut State Court for unspecified damages allegedly resulting from Barclays Bank PLC’s conduct relating to the Master Agreement, asserting claims for violation of the Connecticut Unfair Trade Practices Act and tortious interference with business and prospective business relations. This case is currently stayed. Civil actions in respect of the US Anti-Terrorism Act There are a number of civil actions, on behalf of more than 4,000 plaintiffs, filed in US federal courts in the US District Court in the Eastern District of New York (EDNY) and SDNY against Barclays Bank PLC and a number of other banks. The complaints generally allege that Barclays Bank PLC and those banks engaged in a conspiracy to facilitate US dollar-denominated transactions for the Iranian Government and various Iranian banks, which in turn funded acts of terrorism that injured or killed the plaintiffs or the plaintiffs’ family members. The plaintiffs seek to recover damages for pain, suffering and mental anguish under the provisions of the US Anti-Terrorism Act, which allow for the trebling of any proven damages. The court granted the defendants’ motions to dismiss three out of the six actions in the EDNY. The plaintiffs appealed in one action and the dismissal was affirmed in January 2023. The remaining EDNY actions are stayed. Out of the two actions in the SDNY, the court granted the defendants’ motion to dismiss the first action. That action is stayed, and the second SDNY action is stayed pending any appeal on the dismissal of the first. Shareholder derivative action In November 2020, a purported Barclays shareholder filed a putative derivative action in New York state court against BCI and a number of current and former members of the Board of Directors of Barclays PLC and senior executives or employees of the Group. The shareholder filed the claim on behalf of nominal defendant Barclays PLC, alleging that the individual defendants harmed the company through breaches of their duties, including under the Companies Act 2006. The plaintiff seeks damages on behalf of Barclays PLC for the losses that Barclays PLC allegedly suffered as a result of these alleged breaches. An amended complaint was filed in April 2021, which BCI and certain other defendants moved to dismiss. The motion to dismiss was granted in April 2022. The plaintiff is appealing the decision. Derivative transactions civil action In 2021, Vestia, a Dutch housing association, brought a claim against Barclays Bank PLC in the UK in the High Court in relation to a series of derivative transactions entered into with Barclays Bank PLC between 2008 and 2011, seeking damages of £329m. Barclays Bank PLC is defending the claim and has made a counterclaim. Timeshare loans, skilled person review, and associated matters In August 2020, the FCA granted an application by Clydesdale Financial Services Limited (CFS), which trades as Barclays Partner Finance and houses Barclays’ point-of-sale finance business, for a validation order with respect to certain loans to customers brokered between April 2014 and April 2016 by Azure Services Limited (ASL), a timeshare operator, which did not, at the point of sale, hold the necessary broker licence. As a condition to the validation order, the FCA required CFS to undertake a skilled person review of the assessment of affordability processes for the loans brokered by ASL (ASL Loans) as well as CFS’ policies and procedures for assessing affordability and oversight of brokers more generally, and dictated a remediation methodology in the event that ASL Loans did not pass the affordability test. The skilled person made a number of observations, some of which were adverse, about both current and historic affordability practices as well as current oversight practices. CFS is not required to conduct a full back book review but, following a review of certain cohorts of loans to determine historic affordability and/or broker oversight practices that may have caused customer harm, where harm is identified, CFS’ intention is to remediate. To date, CFS has identified a number of areas for remediation, but the scoping exercise is ongoing and remediation will only begin once the scoping exercise is complete. As at 31 December 2022, CFS booked a provision in respect of the expected remediation for these matters of £10.4m. Separately, and notwithstanding this, CFS decided in March 2022 to extend the proactive remediation of ASL Loans beyond those brokered between April 2014 and April 2016 to include the full portfolio of ASL Loans brokered between 2006 and 2018. In the first quarter of 2022, an additional customer remediation provision was recognised in relation to the remediation of the ASL Loans originated outside the April 2014 to April 2016 period. As at 31 December 2022, the provision recognised in relation to this matter by CFS is £183m. Remediation of the full portfolio of ASL Loans started in October 2022 and is expected to be completed in 2023. In addition, CFS completed a review of all other legacy timeshare retailers during 2022. No concerns were identified in relation to the majority of those retailers, but where concerns were identified, CFS’ intention is to remediate. As at 31 December 2022, the provision recognised in relation to this matter by CFS is £96m. Over-issuance of Securities in the US Barclays Bank PLC maintains a US shelf registration statement with the US Securities and Exchange Commission (SEC) in order to issue securities to US investors. In May 2017, Barclays Bank PLC lost its status as a “well-known seasoned issuer” (or WKSI) as a result of an SEC settlement order involving BCI. Due to its loss of WKSI status, Barclays Bank PLC was required to register a specified amount of

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 483 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings securities to be issued under certain US shelf registration statements filed with the SEC. In March 2022, executive management became aware that Barclays Bank PLC had issued securities materially in excess of the set amount under its 2019 US shelf registration statement and subsequently became aware that securities had also been issued in excess of the set amount under the predecessor US shelf registration statement. The securities that were over-issued included structured notes and exchange traded notes (ETNs). Securities issued in excess of the amount registered were considered to be “unregistered securities” for the purposes of US securities laws, with certain purchasers of those securities having a right to recover, upon the tender of such security to Barclays Bank PLC, the consideration paid for such security with interest, less the amount of any income received, or to recover damages from Barclays Bank PLC if the purchaser sold the security at a loss (the Rescission Price). Barclays Bank PLC commenced its rescission offer on 1 August 2022, by which Barclays Bank PLC offered to repurchase the relevant affected securities for the Rescission Price (the Rescission Offer). The Rescission Offer expired on 12 September 2022. In September 2022, the SEC announced the resolution of its investigation of Barclays PLC and Barclays Bank PLC relating to the over- issuance of securities by Barclays Bank PLC under certain of its US shelf registration statements. Pursuant to the terms of the a resolution, Barclays PLC and Barclays Bank PLC paid in the fourth quarter of 2022 a combined penalty of $200m (£165m ), without admitting or denying the SEC’s findings. The SEC found that the independent Rescission Offer made by Barclays Bank PLC to holders of the relevant over-issued securities satisfied its requirements for disgorgement and related prejudgment interest. The Group is engaged with, and responding to inquiries and requests for information from, various other regulators who may seek to impose fines, penalties and/or other sanctions as a result of this matter. Furthermore, Barclays Bank PLC and/or its affiliates may incur costs and liabilities in relation to private civil claims which have been filed and may face other potential private civil claims, class actions or other enforcement actions in relation to this matter. By way of example, in September 2022, a purported class action claim was filed in the US District Court in Manhattan seeking to hold Barclays PLC and former and current executives responsible for declines in the prices of its American depositary receipts, which the plaintiffs claim occurred as a result of alleged misstatements and omissions in its public disclosures; and in February 2023, a claim was brought in a New York federal court by holders of a series of ETNs alleging that Barclays' failure to disclose that these ETNs were unregistered securities misled investors and that, as a result, Barclays is liable for the holders' alleged losses following the suspension of further sales and issuances of such series of ETNs. Following completion of the rescission offer on 12 September 2022, Barclays utilised a provision of £1,008m in settlement of valid 1 structured note claims and paid a monetary penalty of $200m (£165m ) to the SEC. A contingent liability exists in relation to civil claims or any further enforcement actions taken against Barclays Bank PLC and/or its affiliates, but Barclays Bank PLC is unable to assess the likelihood of liabilities that may arise out of such claims or actions. Any liabilities, claims or actions in connection with the over-issuance of securities under Barclays Bank PLC’s US shelf registration statements could have an adverse effect on the Group’s business, financial condition, results of operations and reputation as a frequent issuer in the securities markets. Note a Exchange rate USD/GBP 1.22 as at 30 June 2022. Investigation into the use of unapproved communications platforms In September 2022, the SEC and the Commodity Futures Trading Commission (CFTC) announced settlements with a number of financial institutions, including Barclays Bank PLC and BCI, of financial industry-wide investigations regarding compliance with record- keeping obligations in connection with business-related communications sent over unapproved electronic messaging platforms. The SEC and the CFTC found that Barclays Bank PLC and BCI failed to comply with their respective record-keeping rules, where such communications were sent or received by employees over electronic messaging platforms that had not been approved by the bank for business use by employees. As part of the settlement, in the third quarter of 2022, Barclays Bank PLC and BCI paid a combined $125m civil monetary penalty to the SEC and a $75m civil monetary penalty to the CFTC. There are also non-financial components to the settlements, including the retention of an independent compliance consultant and certain ongoing undertakings. This matter is now concluded. 2. Barclays PLC, Barclays Bank PLC and Barclays Bank UK PLC HM Revenue & Customs (HMRC) assessments concerning UK Value Added Tax In 2018, HMRC issued notices that have the effect of removing certain overseas subsidiaries that have operations in the UK from Barclays’ UK VAT group, in which group supplies between members are generally free from VAT. The notices have retrospective effect and correspond to assessments of £181m (inclusive of interest), of which Barclays would expect to attribute an amount of approximately £128m to Barclays Bank UK PLC and £53m to Barclays Bank PLC. HMRC’s decision has been appealed to the First Tier Tribunal (Tax Chamber). Local authority civil actions concerning LIBOR Following settlement by Barclays Bank PLC of various governmental investigations concerning certain benchmark interest rate submissions referred to above in ‘Investigations into LIBOR and other benchmarks and related civil actions’, in the UK, certain local authorities brought claims in 2018 against Barclays Bank PLC and Barclays Bank UK PLC asserting that they entered into loans between 2006 and 2008 in reliance on misrepresentations made by Barclays Bank PLC in respect of its conduct in relation to LIBOR. Barclays Bank PLC and Barclays Bank UK PLC were successful in their applications to strike out the claims. The claims have been settled on terms such that the parties have agreed not to pursue these claims further and to bear their own costs. The financial impact of the settlements is not material to the Group's operating results, cash flows or financial position. FCA investigation into transaction monitoring The FCA has been investigating Barclays’ compliance with UK money laundering regulations and the FCA’s rules and Principles for Businesses in an investigation which is focussed on aspects of Barclays’ transaction monitoring in relation to certain business lines now in Barclays Bank UK PLC. Barclays has been co-operating with the investigation and responding to information requests.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 484 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Accruals, provisions, contingent liabilities and legal proceedings 3. Barclays PLC Alternative trading systems In 2020, a claim was brought against Barclays PLC in the UK in the High Court by various shareholders regarding Barclays PLC’s share price based on the allegations contained within a complaint by the New York State Attorney General (NYAG) in 2014. Such claim was settled in 2016, as previously disclosed. The more recent claim seeks unquantified damages and Barclays is defending the claim. The NYAG complaint was filed against Barclays PLC and BCI in the NY Supreme Court alleging, among other things, that Barclays PLC and BCI engaged in fraud and deceptive practices in connection with LX, BCI’s SEC-registered alternative trading system. General The Group is engaged in various other legal, competition and regulatory matters in the UK, the US and a number of other overseas jurisdictions. It is subject to legal proceedings brought by and against the Group which arise in the ordinary course of business from time to time, including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud, trusts, client assets, competition, data management and protection, intellectual property, money laundering, financial crime, employment, environmental and other statutory and common law issues. The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, compliance with legislation and regulation, wholesale trading activity and other areas of banking and business activities in which the Group is or has been engaged. The Group is cooperating with the relevant authorities and keeping all relevant agencies briefed as appropriate in relation to these matters and others described in this note on an ongoing basis. At the present time, Barclays PLC does not expect the ultimate resolution of any of these other matters to have a material adverse effect on the Group’s financial position. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be no assurance that the outcome of a particular matter or matters (including formerly active matters or those matters arising after the date of this note) will not be material to Barclays PLC’s results, operations or cash flows for a particular period, depending on, among other things, the amount of the loss resulting from the matter(s) and the amount of profit otherwise reported for the reporting period.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 485 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Capital instruments, equity and reserves Capital instruments, equity and reserves The notes included in this section focus on the Group’s loan capital and shareholders’ equity including issued share capital, retained earnings, other equity balances and interests of minority shareholders in our subsidiary entities (non-controlling interests). For more information on capital management and how the Group maintains sufficient capital to meet our regulatory requirements refer to the Capital risk management section. 27 Subordinated liabilities Accounting for subordinated liabilities Subordinated liabilities are measured at amortised cost using the effective interest method under IFRS 9. 2022 2021 £m £m As at 1 January 12,759 16,341 Issuances 1,477 1,890 Redemptions (2,679) (4,807) Other (134) (665) As at 31 December 11,423 12,759 Issuances of £1,477m comprise £1,000m GBP 8.407% Fixed Rate Resetting Subordinated Callable Notes, issued externally by Barclays PLC and £317m USD Floating Rate Notes, £89m ZAR Floating Rate Notes,£42m EUR Floating Rate Notes and £29m JPY Floating Rate Notes issued externally by Barclays subsidiaries. Redemptions of £2,679m comprise £2,349m notes issued externally by Barclays Bank PLC, £175m USD Floating Rate Notes, £88m USD Fixed Rate Notes issued externally by Barclays subsidiaries and £67m GBP Undated Subordinated Loan Notes (secured) issued externally by a Barclays securitisation special purpose vehicle (SPV). £2,349m notes issued externally by Barclays Bank PLC comprise £1,275m USD 7.625% Fixed Rate Contingent Capital Notes, £838m EUR 6.625% Fixed Rate Subordinated Notes, £147m USD 6.86% Callable Perpetual Core Tier One Notes, £42m EUR Subordinated Floating Rate Notes, £35m GBP 5.3304% Step-up Callable Perpetual Reserve Capital Instruments and £12m GBP 6% Callable Perpetual Core Tier One Notes. Other movements predominantly comprise foreign exchange movements and fair value hedge adjustments. Subordinated liabilities include accrued interest and comprise undated and dated subordinated liabilities as follows: 2022 2021 £m £m Undated subordinated liabilities 28 355 Dated subordinated liabilities 11,395 12,404 Total subordinated liabilities 11,423 12,759 None of the Group’s subordinated liabilities are secured. a Undated subordinated liabilities 2022 2021 Initial call date £m £m Barclays Bank PLC issued Tier One Notes (TONs) b 6% Callable Perpetual Core Tier One Notes 2032 15 — b 6.86% Callable Perpetual Core Tier One Notes (USD 179m) 2032 194 — Reserve Capital Instruments (RCIs) b 5.3304% Step-up Callable Perpetual Reserve Capital Instruments 51 2036 — Undated Notes Junior Undated Floating Rate Notes (USD 38m) Any interest payment date 28 28 Barclays securitisation SPV issued Undated Subordinated Loan Notes (secured) Undated Subordinated Loan Notes (secured) (GBP 67m) At any time 67 — Total undated subordinated liabilities 355 28 Notes a Instrument values are disclosed to the nearest million. b The GBP 6% Callable Perpetual Core Tier One Notes, USD 6.86% Callable Perpetual Core Tier One Notes and GBP 5.3304% Step-up Callable Perpetual Reserve Capital Instruments were redeemed by exercising a regulatory call option in 2022.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 486 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Capital instruments, equity and reserves Undated subordinated liabilities The undated subordinated liabilities that are issued by Barclays Bank PLC and its subsidiaries are for the development and expansion of the businesses and to strengthen the capital bases. The principal terms of such undated subordinated liabilities are described below: Junior Undated Floating Rate Notes The Junior Undated Floating Rate Notes rank behind the claims against Barclays Bank PLC of depositors and other unsecured unsubordinated creditors and holders of dated subordinated liabilities. The Junior Undated Floating Rate Notes are floating rate notes where rates are fixed periodically in advance based on the related market rate. The Junior Undated Floating Rate Notes are repayable at the option of Barclays Bank PLC, in whole, on any interest payment date. In addition, the Junior Undated Floating Rate Notes are repayable, at the option of Barclays Bank PLC in whole for certain tax reasons, on an interest payment date. There are no events of default except non-payment of principal or mandatory interest. Any repayments require the prior consent of the PRA. The Junior Undated Floating Rate Notes are non-convertible. Dated subordinated liabilities 2022 2021 Initial call date Maturity date £m £m Barclays PLC issued 2023 2028 1,345 1,283 2% Fixed Rate Subordinated Callable Notes (EUR 1,500m) 2024 1,013 974 4.375% Fixed Rate Subordinated Notes (USD 1,250m) 2025 2030 445 483 3.75% Fixed Rate Resetting Subordinated Callable Notes (GBP 500m) 2025 2030 120 113 3.75% Fixed Rate Resetting Subordinated Callable Notes (SGD 200m) 2026 1,588 1,564 5.20% Fixed Rate Subordinated Notes (USD 2,050m) 2031 795 833 1.125% Fixed Rate Resetting Subordinated Callable Notes (EUR 1,000m) 2026 2028 1,554 1,564 4.836% Fixed Rate Subordinated Callable Notes (USD 2,000m) 2027 2032 1,013 — 8.407% Fixed Rate Resetting Subordinated Callable Notes (GBP 1,000m) 2027 2029 2030 1,117 1,162 5.088% Fixed-to-Floating Rate Subordinated Callable Notes (USD 1,500m) 2030 2035 664 696 3.564% Fixed Rate Resetting Subordinated Callable Notes (USD 1,000m) 2042 646 3.811% Fixed Rate Resetting Subordinated Callable Notes (USD 1,000m) 2041 782 Barclays Bank PLC issued 2022 — 42 Subordinated Floating Rate Notes (EUR 50m) 2022 — 889 6.625% Fixed Rate Subordinated Notes (EUR 1,000m) 2022 — 1,133 7.625% Contingent Capital Notes (USD 3,000m) 2023 44 42 Subordinated Floating Rate Notes (EUR 50m) 2026 280 322 5.75% Fixed Rate Subordinated Notes 2027 93 97 5.4% Reverse Dual Currency Subordinated Loan (JPY 15,000m) 2032 46 59 6.33% Subordinated Notes 2040 60 57 Subordinated Floating Rate Notes (EUR 68m) External issuances by other subsidiaries 2032 572 309 Total dated subordinated liabilities 11,395 12,404

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 487 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Capital instruments, equity and reserves Dated subordinated liabilities Dated subordinated liabilities are issued by Barclays PLC, Barclays Bank PLC and its subsidiaries for the development and expansion of their businesses and to strengthen their respective capital bases. The principal terms of the dated subordinated liabilities are described below: Subordination Dated subordinated liabilities issued by Barclays PLC ranks behind the claims against Barclays PLC of unsecured unsubordinated creditors but before the claims of the holders of its equity. All dated subordinated liabilities externally issued by Barclays Bank PLC rank behind the claims against Barclays Bank PLC of depositors and other unsecured unsubordinated creditors but before the claims of the undated subordinated liabilities and the holders of its equity. The dated subordinated liabilities externally issued by other subsidiaries are similarly subordinated as the external subordinated liabilities issued by Barclays Bank PLC. Interest Interest on the Floating Rate Notes is fixed periodically in advance, based on the related market rates. Interest on Fixed Rate Notes is set by reference to market rates at the time of issuance and fixed until maturity. Interest on the 4.836% Fixed Rate Subordinated Callable Notes, 2% Fixed Rate Subordinated Callable Notes, 3.75% SGD Fixed Rate Resetting Subordinated Callable Notes, 3.75% GBP Fixed Rate Resetting Subordinated Callable Notes, 3.811% Fixed Rate Resetting Subordinated Callable notes, 1.125% Fixed Rate Resetting Subordinated Callable Notes, 3.564% Fixed Rate Resetting Subordinated Callable Notes, and the 8.407% Fixed Rate Resetting Subordinated Callable Notes are fixed until the call date. After the respective call dates, in the event that they are not redeemed, the interest rates will be reset and fixed until maturity based on a market rate. Interest on the 5.088% Fixed-to-Floating Rate Subordinated Callable Notes is fixed until the call date. After the call date, in the event that they are not redeemed, the interest rate will reset periodically in advance based on market rates. Repayment Those subordinated liabilities with a call date are repayable at the option of the issuer on such call date in accordance with the conditions governing the respective debt obligations, some in whole or in part, and some only in whole. The remaining dated subordinated liabilities outstanding at 31 December 2022 are redeemable only on maturity, subject in particular cases to provisions allowing an early redemption in the event of certain changes in tax law, or to certain changes in legislation or regulations. Any repayments prior to maturity require, in the case of Barclays PLC and Barclays Bank PLC, the prior consent of the PRA, or in the case of the overseas issues, the approval of the local regulator for that jurisdiction and of the PRA in certain circumstances. There are no committed facilities in existence at the balance sheet date which permit the refinancing of debt beyond the date of maturity.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 488 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Capital instruments, equity and reserves 28 Ordinary shares, share premium, and other equity Called up share capital, allotted and fully paid Ordinary share Ordinary share Total share capital Other Number of shares capital premium and share premium equity instruments m £m £m £m £m As at 1 January 2022 16,752 4,188 348 4,536 12,259 Issued to staff under share incentive plans 50 13 57 70 — AT1 securities issuance — — — — 3,158 AT1 securities redemption — — — — (2,126) Repurchase of shares (931) (233) — (233) — Other movements — — — — (7) As at 31 December 2022 15,871 3,968 405 4,373 13,284 As at 1 January 2021 17,359 4,340 297 4,637 11,172 Issued to staff under share incentive plans 37 9 51 60 — AT1 securities issuance — — — — 1,078 AT1 securities redemption — — — — — Repurchase of shares (644) (161) — (161) — Other movements — — — — 9 As at 31 December 2021 16,752 4,188 348 4,536 12,259 Called up share capital Called up share capital comprises 15,871m (2021: 16,752m) ordinary shares of 25p each. Share repurchase At the 2022 AGM on 4 May 2022, Barclays PLC was authorised to repurchase up to an aggregate of 1,676m of its ordinary shares of 25p. The authorisation is effective until the AGM in 2023 or the close of business on 30 June 2023, whichever is the earlier. During 2022, 931m shares were repurchased with a total nominal value of £233m (2021: 644m shares with a nominal value of £161m). Other equity instruments Other equity instruments of £13,284m (2021: £12,259m) include AT1 securities issued by Barclays PLC. The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under prevailing capital rules applicable as at the relevant issue date. In 2022, there were three issuances of AT1 instruments, in the form of Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities, for £3,158m (2021: one issuance for £1,078m) which includes issuance costs of £9m (2021: £4m). There were two redemptions in 2022 totalling £2,126m (2021: no redemptions). AT1 equity instruments 2022 2021 Initial call date £m £m AT1 equity instruments - Barclays PLC — 7.875% Perpetual Subordinated Contingent Convertible Securities 2022 995 — 7.875% Perpetual Subordinated Contingent Convertible Securities (USD 1,500m) 2022 1,131 a 1,243 7.25% Perpetual Subordinated Contingent Convertible Securities 2023 1,245 a 1,925 7.75% Perpetual Subordinated Contingent Convertible Securities (USD 2,500m) 2023 1,924 1,244 5.875% Perpetual Subordinated Contingent Convertible Securities 2024 1,244 1,509 8% Perpetual Subordinated Contingent Convertible Securities (USD 2,000m) 2024 1,509 a 993 7.125% Perpetual Subordinated Contingent Convertible Securities 2025 996 996 6.375% Perpetual Subordinated Contingent Convertible Securities 2025 996 a 1,142 6.125% Perpetual Subordinated Contingent Convertible Securities (USD 1,500m) 2025 1,141 1,078 4.375% Perpetual Subordinated Contingent Convertible Securities (USD 1,500m) 2028 1,078 264 8.300% Perpetual Subordinated Contingent Convertible Securities (SGD 450m) 2027 — 1,247 8.875% Perpetual Subordinated Contingent Convertible Securities 2027 — a 8.000% Perpetual Subordinated Contingent Convertible Securities (USD 2,000m) 2029 1,643 — Total AT1 equity instruments 13,284 12,259 Note a Reported net of securities held by the Group.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 489 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Capital instruments, equity and reserves The principal terms of the AT1 securities are described below: ▪ AT1 securities rank behind the claims against Barclays PLC of i) unsubordinated creditors; ii) claims which are expressed to be subordinated to the claims of unsubordinated creditors of Barclays PLC but not further or otherwise; or iii) claims which are, or are expressed to be, junior to the claims of other creditors of Barclays PLC, whether subordinated or unsubordinated, other than claims which rank, or are expressed to rank, pari passu with, or junior to, the claims of holders of the AT1 securities. ▪ AT1 securities are undated and are redeemable, at the option of Barclays PLC, in whole on (i) the initial reset date, or on any fifth anniversary after the initial reset date or (ii) any day falling in a named period ending on the initial reset date, or on any fifth anniversary after the initial reset date. In addition, the AT1 securities are redeemable, at the option of Barclays PLC, in whole in the event of certain changes in the tax or regulatory treatment of the securities. Any redemptions require the prior consent of the PRA. ▪ Interest on the AT1 securities will be due and payable only at the sole discretion of Barclays PLC, and Barclays PLC has sole and absolute discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would otherwise be payable on any interest payment date. . 29 Reserves Currency translation reserve The currency translation reserve represents the cumulative gains and losses on the retranslation of the Group’s net investment in foreign operations, net of the effects of hedging. Fair value through other comprehensive income reserve The fair value through other comprehensive income reserve represents the changes in the fair value of financial instruments accounted for at fair value through other comprehensive income investments since initial recognition. Cash flow hedging reserve The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that will be recycled to profit or loss when the hedged transactions affect profit or loss. Own credit reserve The own credit reserve reflects the cumulative own credit gains and losses on financial liabilities at fair value. Amounts in the own credit reserve are not recycled to profit or loss in future periods. Other reserves and treasury shares Other reserves relate to redeemed ordinary and preference shares issued by the Group. Treasury shares relate to Barclays PLC shares held in relation to the Group’s various share schemes. These schemes are described in Note 32. Treasury shares are deducted from shareholders’ equity within other reserves. A transfer is made to retained earnings in line with the vesting of treasury shares held for the purposes of share-based payments. 2022 2021 £m £m Currency translation reserve 4,772 2,740 Fair value through other comprehensive income reserve (1,560) (283) Cash flow hedging reserve (7,235) (853) Own credit reserve 467 (960) Other reserves and treasury shares 1,364 1,126 Total (2,192) 1,770

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 490 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Capital instruments, equity and reserves 30 Non-controlling interests Profit attributable to non-controlling Equity attributable to non-controlling Dividends paid to non-controlling interest interest interest 2022 2021 2022 2021 2022 2021 £m £m £m £m £m £m Barclays Bank PLC issued: – Preference shares 31 27 529 529 31 27 – Upper Tier 2 instruments 14 17 438 458 14 17 Other non-controlling interests — 3 1 2 — — Total 45 47 968 989 45 44 In 2022, there were no issuances (2021: none) and one redemption of £20m (2021: £75m) relating to the Undated Floating Rate Primary Capital Notes Series 3. Barclays Bank PLC and protective rights of non-controlling interests Barclays PLC holds 100% of the voting rights of Barclays Bank PLC. As at 31 December 2022, Barclays Bank PLC has in issue preference shares and Upper Tier 2 instruments. These are non-controlling interests to the Group. A fixed coupon rate is attached to all Upper Tier 2 instruments until the initial call date, with the exception of the 9% Bonds, which are fixed for the life of the issue and the Series 1 and Series 2 Undated Notes, which are floating rate at rates fixed periodically in advance based on market rates. After the initial call date, in the event they are not redeemed, coupon payments in relation to the 6.125% Undated Notes are fixed periodically in advance for five-year periods based on market rates. Coupon payments for all other Upper Tier 2 instruments are at rates fixed periodically in advance based on market rates. The payment of preference share dividends and Upper Tier 2 coupons are typically at the discretion of Barclays Bank PLC, except for coupon payments that become compulsory where Barclays PLC has declared or paid a dividend on ordinary shares, or in certain cases, any class of preference shares, in the preceding six-month period. Coupons not paid become payable in each case if such a dividend is subsequently paid or in certain other circumstances. No dividend or coupon payments may be made unless Barclays Bank PLC satisfies a specified solvency test. Under the terms of these instruments, Barclays PLC may not pay dividends on ordinary shares until a dividend or coupon is next paid on these instruments or the instruments are redeemed or purchased by Barclays Bank PLC. There are no restrictions on Barclays Bank PLC’s ability to remit capital to the Parent as a result of these issued instruments. Preference share redemptions are typically at the discretion of Barclays Bank PLC. Upper Tier 2 instruments are repayable, at the option of Barclays Bank PLC generally in whole at the initial call date and on any subsequent coupon payment date or, in the case of the 6.125% Undated Notes on any fifth anniversary after the initial call date. In addition, each issue of Upper Tier 2 instruments is repayable, at the option of Barclays Bank PLC, in whole for certain tax reasons, either at any time, or on an interest payment date. There are no events of default except non-payment of principal or mandatory interest. Any repayments or redemptions require the prior consent of the PRA, and in respect of the preference shares, any such redemption will be subject to the Companies Act 2006 and the Articles of Barclays Bank PLC. 2022 2021 Instrument £m £m Preference Shares: US Dollar Preference Shares 318 318 Euro Preference Shares 211 211 Total Barclays Bank PLC Preference Shares 529 529 Upper Tier 2 Instruments: Undated Floating Rate Primary Capital Notes Series 1 93 93 Undated Floating Rate Primary Capital Notes Series 2 179 179 5.03% Undated Reverse Dual Currency Subordinated Loan (JPY8bn) 39 39 5.0% Reverse Dual Currency Undated Subordinated Loan (JPY12bn) 53 53 Undated Floating Rate Primary Capital Notes Series 3 (£145m) — 20 9% Permanent Interest Bearing Capital Bonds (£100m) 40 40 6.125% Undated Subordinated Notes (£550m) 34 34 Total Upper Tier 2 Instruments 438 458

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 491 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits Employee benefits The notes included in this section focus on the costs and commitments associated with employing our staff. 31 Staff costs Accounting for staff costs The Group applies IAS 19 Employee benefits in its accounting for most of the components of staff costs. Short-term employee benefits – salaries, accrued performance costs and social security are recognised over the period in which the employees provide the services to which the payments relate. Performance costs – recognised to the extent that the Group has a present obligation to its employees that can be measured reliably and are recognised over the period of service that employees are required to work to qualify for the payments. Deferred cash and share awards are made to employees to incentivise performance over the period employees provide services. To receive payment under an award, employees must provide service over the vesting period. The period over which the expense for deferred cash and share awards is recognised is based upon the period employees consider their services contribute to the awards. For past awards, the Group considers that it is appropriate to recognise the awards over the period from the date of grant to the date that the awards vest. In relation to awards granted from 2017, the Group, taking into account the changing employee understanding surrounding those awards, considered it appropriate for expense to be recognised over the vesting period including the financial year prior to the grant date. The accounting policies for share-based payments, and pensions and other post-retirement benefits are included in Note 32 and Note 33 respectively. 2022 2021 2020 £m £m £m Incentive awards granted: Current year bonus 1,241 1,278 1,090 Deferred bonus 549 667 490 Total incentive awards granted 1,790 1,945 1,580 Reconciliation of incentive awards granted to income statement charge: Less: deferred bonuses granted but not charged in current year (388) (457) (335) Add: current year charges for deferred bonuses from previous years 399 280 293 Other differences between incentive awards granted and income statement charge 35 (23) (34) Income statement charge for performance costs 1,836 1,745 1,504 Other income statement charges: Salaries 4,732 4,290 4,322 Social security costs 714 619 613 a Post-retirement benefits 563 539 519 Other compensation costs 504 431 479 b Total compensation costs 8,349 7,624 7,437 Other resourcing costs: Outsourcing 607 357 342 Redundancy and restructuring (7) 296 102 Temporary staff costs 113 109 102 Other 190 125 114 Total other resourcing costs 903 887 660 Total staff costs 9,252 8,511 8,097 Notes a Post-retirement benefits charge includes £313m (2021: £289m; 2020: £279m) in respect of defined contribution schemes and £250m (2021: £250m; 2020: £240m) in respect of defined benefit schemes. b £604m (2021: £484m; 2020: £451m) of Group compensation was capitalised as internally generated software and excluded from the Staff cost disclosed above .

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 492 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits 32 Share-based payments Accounting for share-based payments The Group applies IFRS 2 Share-based Payments in accounting for employee remuneration in the form of shares. Employee incentives include awards in the form of shares and share options, as well as offering employees the opportunity to purchase shares on favourable terms. The cost of the employee services received in respect of the shares or share options granted is recognised in the income statement over the period that employees provide services. The overall cost of the award is calculated using the number of shares and options expected to vest and the fair value of the shares or options at the date of grant. The number of shares and options expected to vest takes into account the likelihood that performance and service conditions included in the terms of the awards will be met. Failure to meet the non-vesting condition is treated as a cancellation, resulting in an acceleration of recognition of the cost of the employee services. The fair value of shares is the market price ruling on the grant date, in some cases adjusted to reflect restrictions on transferability. The fair value of options granted is determined using the Black Scholes model to estimate the numbers of shares likely to vest. The model takes into account the exercise price of the option, the current share price, the risk-free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. Market conditions that must be met in order for the award to vest are also reflected in the fair value of the award, as are any other non-vesting conditions – such as continuing to make payments into a share-based savings scheme. The charge for the year arising from share-based payment schemes was as follows: Charge for the year 2022 2021 2020 £m £m £m Deferred Share Value Plan and Share Value Plan 295 256 245 Others 214 216 184 Total equity settled 509 472 429 Cash settled 4 5 2 Total share-based payments 513 477 431 The terms of the main current plans are as follows: Share Value Plan (SVP) The SVP was introduced in Barclays PLC Group in March 2010. SVP awards have been granted to participants in the form of a conditional right to receive Barclays PLC shares or provisional allocations of Barclays PLC shares which vest or are considered for release over a period of three, four, five or seven years. Participants do not pay to receive an award or to receive a release of shares. For awards granted before December 2017, the grantor may also make a dividend equivalent payment to participants on release of a SVP award. SVP awards are also made to eligible employees for recruitment purposes. All awards are subject to potential forfeiture in certain leaver scenarios. Deferred Share Value Plan (DSVP) The DSVP was introduced in February 2017. The terms of the DSVP are materially the same as the terms of the SVP as described above, save that Executive Directors are not eligible to participate in the DSVP and the DSVP operates over market purchase shares only. Other schemes In addition to the SVP and DSVP, the Barclays PLC Group operates a number of other schemes settled in Barclays PLC Shares including Sharesave (both UK and Ireland), Sharepurchase (both UK and overseas), and the Barclays PLC Group Long Term Incentive Plan. A delivery of upfront shares to ‘Material Risk Takers’ can be made as a Share Incentive Award (Holding Period) under the SVP. Share option and award plans The weighted average fair value per award granted, weighted average share price at the date of exercise/release of shares during the year, weighted average contractual remaining life and number of options and awards outstanding (including those exercisable) at the balance sheet date were as follows: 2022 2021 Weighted Weighted Weighted Weighted average fair average Weighted average fair average Weighted value per share price at average Number of value per share price at average Number of award exercise/ remaining options/ award exercise/ remaining options/ granted in release contractual awards granted in release contractual awards year during year life outstanding year during year life outstanding £ £ in years (000s) £ £ in years (000s) a,b DSVP and SVP 1.43 1.61 1 501,454 1.62 1.76 1 413,859 a Others 0.38-1.64 1.59-1.66 0-3 316,534 0.64-1.8 1.75-1.92 0-3 335,976 Notes a Options/award granted over Barclays PLC shares. b Weighted average exercise price is not applicable for SVP and DSVP awards as these are not share option schemes.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 493 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits SVP and DSVP are nil cost awards on which the performance conditions are substantially completed at the date of grant. Consequently, the fair value of these awards is based on the market value at that date. Sharesave has a contractual life of 3 years and 5 years,the expected volatility is 31.10% for 3 years and 30.56% for 5 years. The risk free interest rates used for valuations are 4.28% and 4.05% for 3 years and 5 years respectively. The pure dividend yield rates used for valuations are 4.01% and 3.93% for 3 years and 5 years respectively. The repo rates used for valuations are (0.47)% and (0.63)% for 3 years and 5 years respectively. The inputs into the model such as risk free interest rate, expected volatility, pure dividend yield rates and repo rates are derived from the market data. Movements in options and awards The movement in the number of options and awards for the major schemes and the weighted average exercise price of options was: a,b a,c DSVP and SVP Others Number (000s) Number (000s) Weighted average ex. price (£) 2022 2021 2022 2021 2022 2021 Outstanding at beginning of year/acquisition date 413,859 416,941 335,976 356,033 0.95 0.96 Granted in the year 291,876 187,667 146,203 120,385 1.33 1.43 Exercised/released in the year (178,634) (160,460) (133,682) (107,688) 1.15 1.38 Less: forfeited in the year (25,647) (30,289) (28,789) (24,489) 1.01 0.95 Less: expired in the year — — (3,174) (8,265) 1.23 1.67 Outstanding at end of year 501,454 413,859 316,534 335,976 0.97 0.95 Of which exercisable: — — 34,247 28,609 1.19 1.23 Notes a Options/award granted over Barclays PLC shares. b Weighted average exercise price is not applicable for SVP and DSVP awards as these are not share option schemes. c The number of awards within Others at the end of the year principally relates to Sharesave (number of awards exercisable at end of year was 13,954,749). The weighted average exercise price relates to Sharesave. Awards and options granted under the Group’s share plans may be satisfied using new issue shares, treasury shares and market purchase shares. Awards granted under the DSVP may be satisfied using market purchase shares only. There were no significant modifications to the share-based payments arrangements in 2022 and 2021. As at 31 December 2022, the total liability arising from cash-settled share-based payments transactions was £5m (2021: £5m). Holdings of Barclays PLC shares and hedges Various employee benefit trusts established by the Group hold shares in Barclays PLC to meet obligations under the Barclays share- based payment schemes. The total number of Barclays shares held in these employee benefit trusts at 31 December 2022 was 14m (2021: 12.9m). Dividend rights have been waived on all these shares. The total market value of the shares held in trust based on the year end share price of £1.59 (2021: £1.87) was £22m (2021: £24m). For accounting of treasury shares, see Note 29. The Group has entered into physically settled forward contracts to hedge the settlement of certain share-based payment schemes. The fixed forward price to be paid under these contracts is £469m and has been recorded in retained earnings.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 494 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits 33 Pensions and post-retirement benefits Accounting for pensions and post-retirement benefits The Group operates a number of pension schemes and post-employment benefit schemes. Defined contribution schemes – the Group recognises contributions due in respect of the accounting period in the income statement. Any contributions unpaid at the balance sheet date are included as a liability. Defined benefit schemes – the Group recognises its obligations to members of each scheme at the period end, less the fair value of the scheme assets after applying the asset ceiling test. Each scheme’s obligations are calculated using the projected unit credit method. Scheme assets are stated at fair value as at the period end. Changes in pension scheme liabilities or assets (remeasurements) that do not arise from regular pension cost, net interest on net defined benefit liabilities or assets, past service costs, settlements or contributions to the scheme, are recognised in other comprehensive income. Remeasurements comprise experience adjustments (differences between previous actuarial assumptions and what has actually occurred), the effects of changes in actuarial assumptions, return on scheme assets (excluding amounts included in the interest on the assets) and any changes in the effect of the asset ceiling restriction (excluding amounts included in the interest on the restriction). Post-employment benefit schemes – the cost of providing healthcare benefits to retired employees is accrued as a liability in the financial statements over the period that the employees provide services to the Group, using a methodology similar to that for defined benefit pension schemes. Pension schemes UK Retirement Fund (UKRF) The UKRF is the Group’s main scheme, representing 96% (2021: 97%) of the Group’s total retirement benefit obligations. Barclays Bank PLC is the principal employer of the UKRF. The UKRF was closed to new entrants on 1 October 2012, and comprises 10 sections, the two most significant of which are: ▪ Afterwork, which comprises a contributory cash balance defined benefit element, and a voluntary defined contribution element. The cash balance element is accrued each year and revalued until Normal Retirement Age in line with the increase in Retail Price Index (RPI) (up to a maximum of 5% p.a.). The main risks that Barclays runs in relation to Afterwork are limited although additional contributions are required if pre-retirement investment returns are not sufficient to provide for the benefits. ▪ The 1964 Pension Scheme. Most employees recruited before July 1997 built up benefits in this non-contributory defined benefit scheme in respect of service up to 31 March 2010. Pensions were calculated by reference to service and pensionable salary. From 1 April 2010, members became eligible to accrue future service benefits in either Afterwork or the Pension Investment Plan, a historic defined contribution section which is now closed to future contributions. The risks that Barclays runs in relation to the 1964 section are typical of final salary pension schemes, principally that investment returns fall short of expectations, that inflation exceeds expectations, and that retirees live longer than expected. Barclays Pension Savings Plan (BPSP) The BPSP is a defined contribution scheme providing benefits for all new UK hires from 1 October 2012. BPSP is not subject to the same investment return, inflation or life expectancy risks for Barclays that defined benefit schemes are. Members’ benefits reflect contributions paid and the level of investment returns achieved. Other Apart from the UKRF and the BPSP, Barclays operates a number of smaller pension and long-term employee benefits and post- retirement healthcare plans globally, the largest of which are the US defined benefit and defined contribution schemes. Many of the schemes are funded, with assets backing the obligations held in separate legal vehicles such as trusts. Others are operated on an unfunded basis. The benefits provided, the approach to funding, and the legal basis of the schemes, reflect local environments. Governance The UKRF operates under trust law and is managed and administered on behalf of the members in accordance with the terms of the Trust Deed and Rules and all relevant legislation. The Corporate Trustee is Barclays Pension Funds Trustees Limited, a private limited company and a wholly owned subsidiary of Barclays Bank PLC. The Trustee is the legal owner of the assets of the UKRF which are held separately from the assets of the Group. The Trustee Board comprises six Management Directors selected by Barclays, of whom three are independent Directors with no relationship with Barclays (and who are not members of the UKRF), plus three Member Nominated Directors selected from eligible active members of the UKRF, deferred and pensioner members who apply for the role. The BPSP is a Group Personal Pension arrangement which operates as a collection of personal pension plans. Each personal pension plan is a direct contract between the employee and the BPSP provider (Legal & General Assurance Society Limited), and is regulated by the FCA. Similar principles of pension governance apply to the Group’s other pension schemes, depending on local legislation. Amounts recognised The following tables include amounts recognised in the income statement and an analysis of benefit obligations and scheme assets for all Group defined benefit schemes. The net position is reconciled to the assets and liabilities recognised on the balance sheet. The

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 495 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits tables include funded and unfunded post-retirement benefits. The income statement charge with respect to Defined contribution schemes is disclosed as part of footnotes to Note 31 Staff costs. Income statement (credit)/charge 2022 2021 2020 £m £m £m Current service cost 227 247 243 Net finance (income)/cost (122) (26) (40) Past service cost 20 — (4) Other movements 3 3 1 Total 128 224 200 Balance sheet reconciliation 2022 2021 Of which relates to Of which relates to Total UKRF Total UKRF £m £m £m £m Benefit obligation at beginning of the year (31,899) (30,859) (33,190) (32,108) Current service cost (227) (197) (247) (225) Interest costs on scheme liabilities (724) (707) (422) (405) Past service cost (20) (20) — — Remeasurement (loss)/gain – financial 10,995 10,734 848 820 Remeasurement (loss)/gain – demographic 268 270 53 50 Remeasurement (loss)/gain – experience (521) (510) (249) (259) Employee contributions (4) — (4) — Benefits paid 1,339 1,299 1,309 1,268 Exchange and other movements (88) — 3 — Benefit obligation at end of the year (20,881) (19,990) (31,899) (30,859) Fair value of scheme assets at beginning of the year 35,467 34,678 34,713 33,915 Interest income on scheme assets 846 829 448 434 Employer contribution 1,808 1,785 971 955 Remeasurement – return on scheme assets (less)/greater than discount rate (11,510) (11,313) 653 642 Employee contributions 4 — 4 — Benefits paid (1,339) (1,299) (1,309) (1,268) Exchange and other movements 84 — (13) — Fair value of scheme assets at end of the year 25,360 24,680 35,467 34,678 Net surplus 4,479 4,690 3,568 3,819 Retirement benefit assets 4,743 4,690 3,879 3,819 Retirement benefit liabilities (264) — (311) — Net retirement benefit assets 4,479 4,690 3,568 3,819 Included within the benefit obligation is £690m (2021: £821m) relating to overseas pensions and £201m (2021: £219m) relating to other post-employment benefits. As at 31 December 2022, the UKRF’s scheme assets were in surplus versus IAS 19 obligations by £4,690m (2021: £3,819m). The increase in the UKRF surplus during the year was driven by £294m of deficit reduction contributions and the unwind of the Senior Notes (see later in note), partially offset by higher than expected inflation experienced during the year. The UKRF assets and benefit obligation have reduced by c£10bn and c£11bn respectively over the year, primarily due to higher gilt and bond yields. This is as expected from the investment strategy which aims to invest in assets that move in value in line with changes in liability values. The weighted average duration of the benefit payments reflected in the defined benefit obligation for the UKRF is 13 years (2021: 16 years) . The decrease in duration is primarily due to the increase in discount rate, driven by higher corporate bond yields. The UKRF expected benefits are projected to be paid out for in excess of 50 years, although 30% of the total benefits are expected to be paid in the next 10 years; 30% in years 11 to 20 and 25% in years 21 to 30. The remainder of the benefits are expected to be paid beyond 30 years. Of the £1,299m (2021: £1,268m) UKRF benefits paid out, £390m (2021: £419m) related to transfers out of the fund. Where a scheme’s assets exceed its obligation, an asset is recognised to the extent that it does not exceed the present value of future contribution holidays or refunds of contributions (the asset ceiling). In the case of the UKRF the asset ceiling is not applied as, in certain specified circumstances such as wind-up, the Group expects to be able to recover any surplus. Similarly, a liability in respect of future minimum funding requirements is not recognised. The Trustee does not have a substantive right to augment benefits, nor do they have the right to wind up the plan except in the dissolution of the Group or termination of contributions by the Group. The application of the

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 496 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits asset ceiling to other plans and recognition of additional liabilities in respect of future minimum funding requirements are considered on an individual plan basis. Critical accounting estimates and judgements Actuarial valuation of the scheme's obligation is dependent upon a series of assumptions. Below is a summary of the main financial and demographic assumptions adopted for the UKRF. 2022 2021 Key UKRF financial assumptions % p.a. % p.a. Discount rate 4.80 1.84 Inflation rate (RPI) 3.21 3.56 The UKRF discount rate assumption for 2022 was based on a standard WTW RATE Link model. The RPI inflation assumption for 2022 was set by reference to the Bank of England’s implied inflation curve. The inflation assumption incorporates a deduction of 20 basis points as an allowance for an inflation risk premium. The methodology used to derive the discount rate and inflation assumptions is consistent with that used at the prior year end. The UKRF’s post-retirement mortality assumptions are based on an updated best estimate assumption derived from an analysis in 2022 of the UKRF’s own post-retirement mortality experience and taking account of recent evidence from published mortality surveys. An allowance has been made for future mortality improvements based on the 2021 core projection model published by the Continuous Mortality Investigation Bureau subject to a long-term trend of 1.25% per annum in future improvements (2021: 1.5% per annum). An additional allowance has been made within the mortality assumptions to reflect the uncertain impact of COVID-19 in the long term. The table below shows how the assumed life expectancy at 60, for members of the UKRF, has varied over the past three years: Assumed life expectancy 2022 2021 2020 Life expectancy at 60 for current pensioners (years) – Males 26.8 27.3 27.2 – Females 29.5 29.6 29.4 Life expectancy at 60 for future pensioners currently aged 40 (years) – Males 28.3 29.1 29.0 – Females 31.0 31.4 31.2 The UKRF entered into a longevity reinsurance contract in 2022 covering £7bn of the pensioner liabilities. This is in addition to a £5bn transaction executed in 2020. In total, over three-quarters of the longevity risk for current pensioners has been reinsured, and the transactions will provide income to the UKRF in the event that pensions are paid out for longer than expected. The contracts form part of the UKRF’s investment portfolio. At 31 December 2022, the contracts are valued at £(123)m (2021: nil). The negative value placed on the longevity reinsurance contracts at 31 December 2022 reflects the estimated impact of changes in the reinsurance market, demographic assumptions and risk premia since the 2020 transaction was entered into by the UKRF. The 2022 transaction is valued at nil as it is assessed to have been transacted recently at fair value. Sensitivity analysis on actuarial assumptions The sensitivity analysis has been calculated by valuing the UKRF liabilities using the amended assumptions shown in the table below and keeping the remaining assumptions the same as disclosed in the table above, except in the case of the inflation sensitivity where other assumptions that depend on assumed inflation have also been amended correspondingly. The difference between the recalculated liability figure and that stated in the balance sheet reconciliation table above is the figure shown. The selection of these movements to illustrate the sensitivity of the defined benefit obligation to key assumptions should not be interpreted as Barclays expressing any specific view of the probability of such movements happening.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 497 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits Change in key assumptions 2022 2021 (Decrease)/ (Decrease)/ Increase in UKRF Increase in UKRF defined benefit defined benefit obligation obligation £bn £bn Discount rate 0.5% p.a. increase (1.1) (2.3) 0.25% p.a. increase (0.6) (1.2) 0.25% p.a. decrease 0.6 1.3 0.5% p.a. decrease 1.2 2.6 Assumed RPI 0.5% p.a. increase 0.8 1.6 0.25% p.a. increase 0.4 0.8 0.25% p.a. decrease (0.4) (0.8) 0.5% p.a. decrease (0.8) (1.6) Life expectancy at 60 One year increase 0.6 1.2 One year decrease (0.5) (1.2) Assets A long-term investment strategy has been set for the UKRF, with its asset allocation comprising a mixture of equities, bonds, property and other appropriate assets. This recognises that different asset classes are likely to produce different long-term returns and some asset classes may be more volatile than others. The long-term investment strategy ensures, among other aims, that investments are adequately diversified.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 498 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits The value of the assets of the schemes and their percentage in relation to total scheme assets were as follows: Analysis of scheme assets Total Of which relates to UKRF % of total fair % of total fair value of value of scheme scheme a a Quoted Unquoted Value assets Quoted Unquoted Value assets £m £m £m % £m £m £m % As at 31 December 2022 Equities 113 — 113 0.5 — — — — Private equities — 2,734 2,734 10.8 — 2,734 2,734 11.1 Bonds - fixed government 1,353 — 1,353 5.3 1,098 — 1,098 4.4 Bonds - index-linked government 9,847 — 9,847 38.9 9,829 — 9,829 39.9 Bonds - corporate and other 5,884 1,551 7,435 29.3 5,690 1,551 7,241 29.3 Property 13 1,310 1,323 5.2 — 1,310 1,310 5.3 Infrastructure 793 790 1,583 6.2 793 790 1,583 6.4 Hedge funds 11 1,362 1,373 5.4 — 1,362 1,362 5.5 Derivatives (20) (1,837) (1,857) (7.3) (20) (1,837) (1,857) (7.5) Longevity reinsurance contracts — (123) (123) (0.5) — (123) (123) (0.5) b Cash and liquid assets (1,776) 3,286 1,510 6.0 (1,789) 3,286 1,497 6.1 Mixed investment funds 11 — 11 — — — — — Other 7 51 58 0.2 — 6 6 — Fair value of scheme assets 16,236 9,124 25,360 100.0 15,601 9,079 24,680 100.0 As at 31 December 2021 Equities 294 — 294 0.8 167 — 167 0.5 Private equities — 3,113 3,113 8.8 — 3,113 3,113 9.0 Bonds - fixed government 2,384 161 2,545 7.2 2,080 161 2,241 6.5 Bonds - index-linked government 15,375 — 15,375 43.5 15,352 — 15,352 44.4 Bonds - corporate and other 7,451 1,498 8,949 25.2 7,214 1,498 8,712 25.1 Property 14 1,490 1,504 4.2 — 1,490 1,490 4.3 Infrastructure — 1,815 1,815 5.1 — 1,815 1,815 5.2 Hedge funds — 1,365 1,365 3.8 — 1,365 1,365 3.9 Derivatives 1 10 11 — 1 10 11 — Longevity reinsurance contract — — — — — — — — b Cash and liquid assets (1,865) 2,275 410 1.2 (1,878) 2,275 397 1.1 Mixed investment funds 9 — 9 — — — — — Other 20 57 77 0.2 — 15 15 — c Fair value of scheme assets 23,683 11,784 35,467 100.0 22,936 11,742 34,678 100.0 Notes a Valuation of unquoted assets is provided by the underlying managers or qualified independent valuers. Valuations of complex instruments are based on UKRF custodian valuations. The valuation for some of the unquoted assets, in particular Private equities, is based on valuations as at 30 September 2022 adjusted by cash flows, these being the latest available valuations as at the point of publication. All valuations are determined in accordance with relevant industry guidance. b Cash and liquid assets for the UKRF consists of £521m (2021: £488m) Cash, £80m (2021: £93m) Receivables/payables, £3,286m (2021:£2,275m) Pooled cash funds and £(2,390)m (2021: £(2,459)m) Repurchase agreements. c The asset allocation for 2021 has been re-presented to reflect the re-interpretation of the asset classifications as well as a reclassification of £1.2bn between unquoted/quoted bonds, in a manner that management believes better represents the underlying nature of the assets. Included within the fair value of UKRF scheme assets was nil (2021: nil) relating to shares in Barclays PLC and nil (2021: nil) relating to bonds issued by Barclays PLC. The UKRF also invests in pooled investment vehicles which may hold shares or debt issued by Barclays PLC. There has been no significant change in the UKRF investment strategy over the year, however, given the movement in the gilt and bond yields over the year, the relative weights of assets classes have changed. No additional support from the Group was required in response to the market volatility experienced over the year. The UKRF assets as at 31 December 2021 do not include the Senior Notes referred to in the section below on Triennial Valuation, as these were non-transferable instruments and not recognised under IAS 19. The Senior Notes were redeemed in December 2022, and the redemption proceeds are now included in Cash and Liquid Assets as at 31 December 2022. Approximately 34% of the UKRF assets are invested in liability-driven investment strategies; primarily UK gilts as well as interest rate and inflation swaps. These swaps are used to better match the assets to its liabilities. The swaps are used to reduce the scheme’s inflation and duration risks against its liabilities.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 499 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Employee benefits The UKRF employs derivative instruments, where appropriate, to match assets more closely to liabilities, or to achieve a desired exposure or return. The value of assets shown reflects the assets held by the UKRF, with any derivative holdings reflected on a fair value basis. The UKRF uses repurchase agreements and reverse repurchase agreements to achieve the Trustee’s liability hedging objective. Investment managers are allowed to undertake repo transactions on the UKRF’s existing gilt holdings to raise cash with which to buy additional gilts for efficient portfolio management; and reverse repo transactions to receive gilts and be paid a fee for providing cash. For information on the UKRF Trustee’s approach to Responsible Investment and Climate Risk, in the context of managing the UKRF, please refer to the UKRF Trustee website at https://epa.towerswatson.com/accounts/barclays/public/barclays-bank-responsible- investment-policy/. Triennial valuation The latest triennial actuarial valuation of the UKRF showed a funding surplus of £2.0bn at 30 September 2022 (2021 update: £0.6bn surplus). The improvement was mainly due to £294m of deficit reduction contributions, changes to views on life expectancy and inflationary returns on assets relative to liabilities being better than expected. The main differences between the funding and accounting assumptions are a different approach to setting the discount rate and a more conservative longevity assumption for funding. As the UKRF has a funding surplus, the 2023 deficit reduction contribution (£286m), agreed as part of the 2019 triennial actuarial valuation, is no longer required, and a new recovery plan was not required. As part of the 2022 triennial valuation, the Trustee and Barclays Bank PLC agreed an annual adequacy test on a basis more prudent than the IAS 19 or funding bases. Should the UKRF be sufficiently funded on this basis, the regular employer contributions to the UKRF to fund future Afterwork accrual will not be required in the following calendar year. The test will be reviewed at the 2025 triennial valuation. The next funding valuation of the UKRF is due to be completed in 2026 with an effective date of 30 September 2025. Subscription for Fixed rate notes During 2019 and 2020 the UKRF subscribed for non-transferable listed senior fixed rate notes for £1,250m, backed by UK gilts (the Senior Notes). These investments were partially financed by £1,000m deficit reduction contributions. The Senior Notes were issued by two entities consolidated in the Barclays Bank Group under IFRS 10: Heron Issuer Limited (Heron) for £500m and Heron Issuer Number 2 Limited (Heron 2) for £750m. The Senior Notes entitled the UKRF to semi-annual coupon payments for five years, and full repayment in cash in three tranches: £250m in 2023, £750m in 2024 and £250m at final maturity in 2025. Heron and Heron 2 acquired a total of £1,500m of gilts from Barclays Bank PLC for cash to support payments on the Senior Notes. Barclays Bank PLC subscribed for the junior notes issued by Heron and Heron 2 for £250m. The regulatory capital impact, which otherwise would have occurred in 2019 and 2020 from the regular deficit reduction contributions, would have been deferred until 2023, 2024 and 2025 upon maturity of the Senior Notes. As part of the planned early unwind of these transactions disclosed in Barclays PLC’s Q1 2022 Results Announcement, Barclays Bank PLC purchased the Senior Notes at fair value from the UKRF for cash in December 2022. The UKRF’s investment in the Senior Notes did not qualify as a plan asset under IAS 19; so the purchase of the Senior Notes for cash increased IAS 19 plan assets by £1,250m and thereby accelerated the regulatory capital impact of the deficit reduction contributions to 2022 from 2023, 2024 and 2025. Barclays Bank PLC subsequently reacquired the gilts held by Heron and Heron 2 in exchange for the redemption of all the fixed rate notes. The gilts were disposed of by Barclays Bank PLC prior to year end. Other support measures agreed which remain in place Collateral – Barclays Bank PLC has entered into an agreement with the UKRF Trustee to provide collateral to cover at least 100% of any funding deficit with an overall cap of £9bn, to provide security for the UKRF funding deficit as it increases or decreases over time. The collateral pool is currently zero, reflecting the surplus funding position. The arrangement provides the UKRF Trustee with dedicated access to the pool of assets in the event of Barclays Bank PLC not paying a deficit reduction contribution to the UKRF or in the event of Barclays Bank PLC’s insolvency. Participation – As permitted under the Financial Services and Markets Act 2000 (Banking Reform) (Pensions) Regulations 2016, Barclays Bank UK PLC is a participating employer in the UKRF and will remain so during a transitional phase until September 2025 as set out in a deed of participation. Barclays Bank UK PLC will make contributions for the future service of its employees who are currently Afterwork members and, in the event of Barclays Bank PLC’s insolvency during this period provision has been made to require Barclays Bank UK PLC to become the principal employer of the UKRF. Barclays Bank PLC’s Section 75 debt would be triggered by the insolvency (the debt would be calculated after allowing for the payment to the UKRF of the collateral above). Defined benefit contributions paid with respect to the UKRF were as follows: Contributions paid £m 2022 1,785 2021 955 2020 748 There were nil (2021: nil) Section 75 contributions included within the Group’s contributions paid as no participating employers left the UKRF in 2022. The Group’s expected contribution to the UKRF in respect of defined benefits in 2023 is £38m (2022: £546m). In addition, the expected contributions to UK defined contribution schemes in 2023 is £32m (2022: £33m) to the UKRF and £243m (2022: £221m) to the BPSP.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 500 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation Scope of consolidation The notes included in this section present information on the Group’s investments in subsidiaries, joint ventures and associates and its interests in structured entities. Detail is also given on securitisation transactions the Group has entered into and arrangements that are held off-balance sheet. 34 Principal subsidiaries The Group applies IFRS 10 Consolidated Financial Statements. The consolidated financial statements combine the financial statements of the Group and all its subsidiaries. Subsidiaries are entities over which the Group has control. Under IFRS 10, this is when the Group is exposed or has rights to variable returns from its involvement in the entity and has the ability to affect those returns through its power over the entity. The Group reassesses whether it controls an entity if facts and circumstances indicate that there have been changes to its power, its rights to variable returns or its ability to use its power to affect the amount of its returns. Intra-group transactions and balances are eliminated on consolidation and consistent accounting policies are used throughout the Group for the purposes of the consolidation. Changes in ownership interests in subsidiaries are accounted for as equity transactions if they occur after control has been obtained and they do not result in loss of control. The significant judgements used in applying this policy are set out below. Accounting for investment in subsidiaries In the individual financial statements of Barclays PLC, investments in subsidiaries are stated at cost less impairment. Principal subsidiaries for the Group are set out below. This includes those subsidiaries that are most significant in the context of the Group’s business, results or financial position. Non-controlling interests - Non-controlling proportion of interests - Percentage of ownership proportion of voting rights held interests voting interests Principal place of business or Company name incorporation Nature of business % % % Barclays Bank PLC United Kingdom Banking, holding company 100 2 — Barclays Bank UK PLC United Kingdom Banking, holding company 100 — — Barclays Bank Ireland PLC Ireland Banking 100 — — Barclays Execution Services Limited United Kingdom Service company 100 — — Barclays Capital Inc. United States Securities dealing 100 — — Barclays Capital Securities Limited United Kingdom Securities dealing 100 — — Barclays Securities Japan Limited Japan Securities dealing 100 — — Barclays US LLC United States Holding company 100 — — Barclays Bank Delaware United States Credit card issuer 100 — — The country of registration or incorporation is also the principal area of operation of each of the above subsidiaries. Ownership interests are in some cases different to voting interests due to the existence of non-voting equity interests, such as preference shares. Refer to Note 30 for more information. Determining whether the Group has control of an entity is generally straightforward based on ownership of the majority of the voting capital. However, in certain instances, this determination will involve judgement, particularly in the case of structured entities where voting rights are often not the determining factor in decisions over the relevant activities. This judgement will involve assessing the purpose and design of the entity. It will also often be necessary to consider whether the Group, or another involved party with power over the relevant activities, is acting as a principal in its own right or as an agent on behalf of others. There is also often considerable judgement involved in the ongoing assessment of control over structured entities. In this regard, where market conditions have deteriorated such that the other investors’ exposures to the structure’s variable returns have been substantively eliminated, the Group may conclude that the managers of the structured entity are acting as its agent and therefore will consolidate the structured entity.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 501 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation An interest in equity voting rights exceeding 50% would typically indicate that the Group has control of an entity. However, the entity set out below is excluded from consolidation because the Group does not have exposure to its variable returns. Equity Percentage of shareholders' Retained profit for voting rights held funds the year Company name Country of registration or incorporation % £m £m Palomino Limited Cayman Islands 100 — — This entity is managed by an external counterparty and consequently is not controlled by the Group. Interests relating to this entity are included in Note 35. Significant restrictions As is typical for a group of its size and international scope, there are restrictions on the ability of Barclays PLC to obtain distributions of capital, access the assets or repay the liabilities of members of its Group due to the statutory, regulatory and contractual requirements of its subsidiaries and due to the protective rights of non-controlling interests. These are considered below. Regulatory requirements Barclays’ principal subsidiary companies have assets and liabilities before intercompany eliminations of £1,962bn (2021: £1,833bn) and £1,869bn (2021: £1,737bn) respectively. Certain of these assets and liabilities are subject to prudential regulation and regulatory capital requirements in the countries in which they are regulated. These require entities to maintain minimum capital levels which cannot be returned to the parent company, Barclays PLC, on a going concern basis. In order to meet capital requirements, subsidiaries may issue certain equity-accounted and debt-accounted financial instruments and non-equity instruments such as Tier 1 and Tier 2 capital instruments and other forms of subordinated liabilities. Refer to Note 27 and Note 28 for particulars of these instruments. These instruments may be subject to cancellation clauses or preference share restrictions that would limit the ability of the entity to repatriate the capital on a timely basis. Liquidity requirements Regulated subsidiaries of the Group are required to meet applicable PRA or local regulatory requirements pertaining to liquidity. Some of the regulated subsidiaries include Barclays Bank PLC and Barclays Capital Securities Limited (which are regulated on a combined basis under a Domestic Liquidity Sub-Group (DoLSub) arrangement), Barclays Bank UK PLC, Barclays Bank Ireland PLC, Barclays Capital Inc. and Barclays Bank Delaware. Refer to the Liquidity risk section for further details of liquidity requirements, including those of the Group’s significant subsidiaries. Statutory requirements The Group’s subsidiaries are subject to statutory requirements not to make distributions of capital and unrealised profits and generally to maintain solvency. These requirements restrict the ability of subsidiaries to make remittances of dividends to Barclays PLC, the ultimate parent, except in the event of a legal capital reduction or liquidation. In most cases, the regulatory restrictions referred to above exceed the statutory restrictions. Asset encumbrance The Group uses its financial assets to raise finance in the form of securitisations and through the liquidity schemes of central banks, as well as to provide security to the UK Retirement Fund. Once encumbered, the assets are not available for transfer around the Group. The assets typically affected are disclosed in Note 38. Other restrictions The Group is required to maintain balances with central banks and other regulatory authorities, and these amounted to £3,457m (2021: £4,750m).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 502 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation 35 Structured entities A structured entity is an entity in which voting or similar rights are not the dominant factor in deciding who controls the entity. Voting rights may relate to administrative tasks only, with the relevant activities of the entity being directed by means of contractual arrangements. Structured entities are generally created to achieve a narrow and well-defined objective with restrictions around their ongoing activities. Depending on the Group’s power over the activities of the entity and its exposure to and ability to influence its own returns, it may consolidate the entity. In other cases, it may sponsor or have exposure to such an entity but not consolidate it. Consolidated structured entities The Group has contractual arrangements which may require it to provide financial support to the following types of consolidated structured entities: • Securitisation vehicles: The Group uses securitisation as a source of financing and a means of risk transfer. Where entities are controlled by the Group, they are consolidated. Refer to Note 37 for further detail. ▪ Commercial Paper (CP) conduits: These entities issue CP and use the proceeds to lend to clients as part of the Group's multi-seller conduit programme. The Group has provided £20.8bn (2021: £17.2bn) in contractual liquidity facilities to the CP conduits that the Group consolidates. These amounts represent the maximum the conduits can lend externally. The amounts of CP conduit lending (drawn and undrawn) to unconsolidated structured entities can be seen in Other interests in unconsolidated structured entities under multi-seller conduit programme in the Nature of interest table. ▪ Employee benefit trusts: The Group provides capital contributions to employee benefit trusts to enable them to meet obligations to employees in relation to share-based remuneration arrangements. ▪ Tender Option Bond (TOB) trusts: During 2022, the Group provided undrawn liquidity facilities of £3.8bn (2021: £3.3bn) to consolidated TOB trusts. These trusts invest in fixed income instruments issued by state, local or other municipalities in the United States, funded by long-term senior floating-rate notes and junior residual securities. Unconsolidated structured entities The term ‘unconsolidated structured entities’ refers to structured entities not controlled by Barclays, and are established either by Barclays or a third party. An interest in a structured entity is any form of contractual or non-contractual involvement which creates variability in returns arising from the performance of the entity for the Group. Such interests include holdings of debt or equity securities, derivatives that transfer financial risks from the entity to the Group, lending, loan commitments, financial guarantees and investment management agreements. The Group enters into transactions with unconsolidated structured entities in the normal course of business to facilitate customer transactions, to provide risk management services and for specific investment opportunities. This is predominantly within the CIB business. Structured entities may take the form of funds, trusts, securitisation vehicles, and private investment companies. The largest transactions for Barclays include loans and derivatives with hedge fund structures and special purpose entities, multi-seller conduit lending, holding notes issued by securitisation vehicles, and facilitating customer requirements through funds. The nature and extent of the Group’s interests in structured entities is summarised below:

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 503 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation Summary of interests in unconsolidated structured entities Short-term traded Secured financing interests Traded derivatives Other interests Total £m £m £m £m £m As at 31 December 2022 Assets Trading portfolio assets — 8,632 — — 8,632 Financial assets at fair value through the income statement 75,166 — — 2,459 77,625 Derivative financial instruments — — 4,555 — 4,555 Financial assets at fair value through other comprehensive income — — — 423 423 Loans and advances at amortised cost — — — 44,292 44,292 Reverse repurchase agreements and other similar secured lending 117 — — — 117 Other assets — — — 69 69 Total assets 75,283 8,632 4,555 47,243 135,713 Liabilities — Derivative financial instruments — — 8,460 — 8,460 As at 31 December 2021 Assets Trading portfolio assets — 7,170 — — 7,170 Financial assets at fair value through the income statement 61,816 — — 3,490 65,306 Derivative financial instruments — — 5,160 — 5,160 Financial assets at fair value through other comprehensive income — — — 91 91 Loans and advances at amortised cost — — — 28,227 28,227 Reverse repurchase agreements and other similar secured lending 104 — — — 104 Other assets — — — 17 17 Total assets 61,920 7,170 5,160 31,825 106,075 Liabilities Derivative financial instruments — — 9,543 — 9,543 Secured financing arrangements, short-term traded interests and traded derivatives are typically managed under Market risk management policies described in the Market risk management section which includes an indication of the change of risk measures compared to last year. For this reason, the total assets of these entities are not considered meaningful for the purposes of understanding the related risks and so have not been presented. Other interests include conduits and lending where the interest is driven by normal customer demand. As at 31 December 2022, there were 6,267 (2021: 5,891) structured entities that Barclays entered into transactions with. Secured financing The Group routinely enters into reverse repurchase contracts, margin lending, stock borrowing and similar arrangements on normal commercial terms where the counterparty to the arrangement is a structured entity. Due to the nature of these arrangements, especially the transfer of collateral and ongoing margining, the Group is able to manage its variable exposure to the performance of the structured entity counterparty. The counterparties included in secured financing mainly include hedge fund limited structures, investment companies and special purpose entities. Short-term traded interests As part of its market making activities, the Group buys and sells interests in structured vehicles, which are predominantly debt securities issued by asset securitisation vehicles. Such interests are typically held individually or as part of a larger portfolio for no more than 90 days. In such cases, the Group typically has no other involvement with the structured entity other than the securities it holds as part of trading activities and its maximum exposure to loss is restricted to the carrying value of the asset. Traded derivatives The Group enters into a variety of derivative contracts with structured entities which reference market risk variables such as interest rates, equities, foreign exchange rates and credit indices among other things. The main derivative types which are considered interests in structured entities include equity options, index-based and entity-specific credit default swaps, and total return swaps. Interest rate swaps and foreign exchange derivatives that are not complex and which expose the Group to insignificant credit risk by being senior in the payment waterfall of a securitisation and derivatives that are determined to introduce risk or variability to a structured entity are not considered to be an interest in an entity and have been excluded from the disclosures. A description of the types of derivatives and the risk management practices are detailed in Note 14. The risk of loss may be mitigated through ongoing margining requirements as well as a right to cash flows from the structured entity which are senior in the payment

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 504 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation waterfall. Such margining requirements are consistent with market practice for many derivative arrangements and in line with the Group’s normal credit policies. Derivative transactions require the counterparty to provide cash or other collateral under margining agreements to mitigate counterparty credit risk. The Group is mainly exposed to settlement risk on these derivatives which is mitigated through daily margining. Total notional contract amounts were £244,780m (2021: £217,055m). Except for credit default swaps where the maximum exposure to loss is the swap notional amount, it is not possible to estimate the maximum exposure to loss in respect of derivative positions as the fair value of derivatives is subject to changes in market rates of interest, exchange rates and credit indices which by their nature are uncertain. In addition, the Group’s losses would be subject to mitigating action under its traded market risk and credit risk policies that require the counterparty to provide collateral in cash or other assets in most cases. Other interests in unconsolidated structured entities The Group’s interests in structured entities not held for the purposes of short-term trading activities are set out below, summarised by the nature of the interest and limited to significant categories, based on maximum exposure to loss. Nature of interest Of which: Barclays Multi-seller owned, not conduit consolidated a programme Lending Other Total entities £m £m £m £m £m As at 31 December 2022 Financial assets at fair value through the income statement — 59 2,400 2,459 2,284 Financial assets at fair value through other comprehensive income — 220 203 423 — Loans and advances at amortised cost 8,681 22,069 13,542 44,292 — Other assets 32 33 4 69 — Total on-balance sheet exposures 8,713 22,381 16,149 47,243 2,284 Total off-balance sheet notional amounts 10,552 10,926 — 21,478 — Maximum exposure to loss 19,265 33,307 16,149 68,721 2,284 Total assets of the entity 66,504 160,002 88,779 315,285 8,690 As at 31 December 2021 Financial assets at fair value through the income statement — 70 3,420 3,490 3,335 Financial assets at fair value through other comprehensive income — 53 38 91 — Loans and advances at amortised cost 5,184 14,538 8,505 28,227 — Other assets 8 4 5 17 — Total on-balance sheet exposures 5,192 14,665 11,968 31,825 3,335 Total off-balance sheet notional amounts 11,015 9,426 — 20,441 — Maximum exposure to loss 16,207 24,091 11,968 52,266 3,335 Total assets of the entity 65,441 166,238 52,873 284,552 11,513 Note a Comprises of Barclays owned, not consolidated structured entities per IFRS 10 Consolidated Financial Statements, and Barclays sponsored entities, Refer to Note 34 Principal subsidiaries for more details on consolidation. Maximum exposure to loss Unless specified otherwise below, the Group’s maximum exposure to loss is the total of its on-balance sheet positions and its off- balance sheet arrangements, being loan commitments and financial guarantees. Exposure to loss is mitigated through collateral, financial guarantees, the availability of netting and credit protection held. Multi-seller conduit programme Barclays' multi-seller conduit programme engages in providing financing to various clients and holds whole or partial interests in pools of receivables or similar obligations. These instruments are protected from loss through over-collateralisation, seller guarantees, or other credit enhancements provided to the conduit entities. The Group’s off-balance sheet exposure included in the table above represents liquidity facilities that are provided to the conduit for the benefit of the holders of the commercial paper issued by the conduit and will only be drawn where the conduit is unable to access the commercial paper market. If these liquidity facilities are drawn, the Group is protected from loss through over-collateralisation, seller guarantees, or other credit enhancements provided to the conduit. Lending The portfolio includes lending provided by the Group to unconsolidated structured entities in the normal course of its lending business to earn income in the form of interest and lending fees and includes loans to structured entities that are generally collateralised by property, equipment or other assets. All loans are subject to the Group’s credit sanctioning process. Collateral arrangements are

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 505 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation specific to the circumstances of each loan with additional guarantees and collateral sought from the sponsor of the structured entity for certain arrangements. During the period the Group incurred an impairment of £32m (2021: £28m) against such facilities. Other This includes fair value loans with structured entities where the market risk is materially hedged with corresponding derivative contracts, interests in debt securities issued by securitisation vehicles and drawn and undrawn loan facilities to these entities. In addition, other includes investment funds with interests restricted to management fees based on performance of the fund and trusts held on behalf of beneficiaries with interests restricted to unpaid fees. Assets transferred to sponsored unconsolidated structured entities Barclays is considered to sponsor another entity if: it had a key role in establishing that entity, it transferred assets to the entity, the Barclays name appears in the name of the entity or it provides guarantees on the entity’s performance. As at 31 December 2022, assets transferred to sponsored unconsolidated structured entities were £1,665m (2021: £1,662m).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 506 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation 36 Investments in associates and joint ventures Accounting for associates and joint ventures The Group applies IAS 28 Investments in Associates and IFRS 11 Joint Arrangements. Associates are entities in which the Group has significant influence, but not control, over the operating and financial policies. Generally the Group holds more than 20% but less than 50% of their voting shares. Joint ventures are arrangements where the Group has joint control and rights to the net assets of the entity. The Group’s investments in associates and joint ventures are initially recorded at cost and increased (or decreased) each year by the Group’s share of the post acquisition profit/(loss). The Group ceases to recognise its share of the losses of equity accounted associates when its share of the net assets and amounts due from the entity have been written off in full, unless it has a contractual or constructive obligation to make good its share of the losses. In some cases, investments in these entities may be held at fair value through profit or loss, for example, those held by private equity businesses. The equity accounted associates include the Group's investment in the Business Growth Fund £669m (2021: £699m) which has increased due to a fair value gain in its investments by £(21)m (2021: £220m). 2022 2021 Associates Joint ventures Total Associates Joint ventures Total £m £m £m £m £m £m Equity accounted 695 227 922 722 277 999 Held at fair value through profit or loss — 435 435 — 444 444 Total 695 662 1,357 722 721 1,443 Summarised financial information for the Group’s equity accounted associates and joint ventures is set out below. The amounts shown are the Group’s share of the net income of the investees for the year ended 31 December 2021, with the exception of certain undertakings for which the amounts are based on accounts made up to dates not earlier than three months before the balance sheet date. Associates Joint ventures 2022 2021 2022 2021 £m £m £m £m Profit/(loss) from continuing operations (21) 219 26 35 Other comprehensive income/(loss) — 1 1 5 Total comprehensive income/(loss) from continuing operations (21) 220 27 40 Unrecognised shares of the losses of individually immaterial associates and joint ventures were £nil (2021: £nil). The Group has provided £nil (2021: £nil) to its joint ventures and associates. The Barclays drawn commitments to finance or otherwise provide resources to its joint ventures and associates are £474m (2021: £482m) The Barclays share of the associates and joint ventures unutilised credit facilities commitments amounted to £1,796m (2021: £1,760m).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 507 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation 37 Securitisations Accounting for securitisations The Group uses securitisations as a source of finance and a means of risk transfer. Such transactions generally result in the transfer of contractual cash flows from portfolios of financial assets to holders of issued debt securities. Securitisations may, depending on the individual arrangement, result in continued recognition of the securitised assets and the recognition of the debt securities issued in the transaction; lead to partial continued recognition of the assets to the extent of the Group’s continuing involvement in those assets or lead to derecognition of the assets and the separate recognition, as assets or liabilities, of any rights and obligations created or retained in the transfer. Full derecognition only occurs when the Group transfers both its contractual right to receive cash flows from the financial assets, or retains the contractual rights to receive the cash flows, but assumes a contractual obligation to pay the cash flows to another party without material delay or reinvestment, and also transfers substantially all the risks and rewards of ownership, including credit risk, prepayment risk and interest rate risk. In the course of its normal banking activities, the Group makes transfers of financial assets, either where legal rights to the cash flows from the asset are passed to the counterparty or beneficially, where the Group retains the rights to the cash flows but assumes a responsibility to transfer them to the counterparty. Depending on the nature of the transaction, this may result in derecognition of the assets in their entirety, partial derecognition or no derecognition of the assets subject to the transfer. A summary of the main transactions, and the assets and liabilities and the financial risks arising from these transactions, is set out below: Transfers of financial assets that do not result in derecognition Securitisations The Group was party to securitisation transactions involving its credit card balances and other personal lending. In these transactions, the assets, interests in the assets, or beneficial interests in the cash flows arising from the assets, are transferred to a special purpose entity, which then issues interest bearing debt securities to third party investors. Securitisations may, depending on the individual arrangement, result in continued recognition of the securitised assets and the recognition of the debt securities issued in the transaction. Partial continued recognition of the assets to the extent of the Group’s continuing involvement in those assets can also occur or derecognition of the assets and the separate recognition, as assets or liabilities, of any rights and obligations created or retained in the transfer. The following table shows the carrying amount of securitised assets that have not resulted in full derecognition, together with the associated liabilities, for each category of asset on the balance sheet: 2022 2021 Assets Liabilities Assets Liabilities Carrying Carrying Carrying Carrying amount Fair value amount Fair value amount Fair value amount Fair value £m £m £m £m £m £m £m £m Loans and advances at amortised cost Credit cards, unsecured and other retail lending 5,324 5,761 (1,537) (1,460) 1,262 1,382 (1,225) (1,219) Mortgage Loans 496 439 (20) (20) 0 0 0 0 Financial assets at FVTPL Mortgage Loans 330 330 0 0 41 41 0 0 Total 6,150 6,530 (1,557) (1,480) 1,303 1,423 (1,225) (1,219) Balances included within loans and advances at amortised cost represent securitisations where substantially all the risks and rewards of the asset have been retained by the Group and balances included within Financial assets at FVTPL represent securitisations where the risks and rewards are neither substantially transferred nor retained. The relationship between the transferred assets and the associated liabilities is that holders of notes may only look to cash flows from the securitised assets for payments of principal and interest due to them under the terms of their notes, although the contractual terms of their notes may be different to the maturity and interest of the transferred assets. If Barclays transfers a financial asset but does not transfer or retain substantially all the risk and rewards of the asset and retains control over it, the transferred assets is recognised to the extent of Barclays’ continuing involvement. In 2022, financial assets of £828m (2021: £249m) were transferred in this manner and the carrying value of the asset representing continued involvement is included in the table above. For transfers of assets in relation to repurchase agreements, refer to Note 38. Continuing involvement in financial assets that have been derecognised In some cases, the Group may have transferred a financial asset in its entirety but may have continuing involvement in it. This arises in asset securitisations where loans and asset backed securities were derecognised as a result of the Group’s involvement with asset backed securities, residential mortgage backed securities and commercial mortgage backed securities. Continuing involvement largely arises from providing financing into these structures in the form of retained notes, which do not bear first losses.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 508 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation The table below shows the potential financial implications of such continuing involvement: a Continuing involvement Gain from continuing involvement Maximum Cumulative to 31 Carrying amount Fair value exposure to loss For the year ended December Type of transfer £m £m £m £m £m 2022 Asset backed securities 8 8 8 1 3 Residential mortgage backed securities 913 907 913 18 22 Commercial mortgage backed securities 412 357 412 5 16 Total 1,333 1,272 1,333 24 41 2021 Asset backed securities 25 25 25 1 2 Residential mortgage backed securities 574 574 574 3 4 Commercial mortgage backed securities 311 307 311 5 11 Total 910 906 910 9 17 Note a Assets which represent the Group’s continuing involvement in derecognised assets are recorded in Loans and advances at amortised cost and Debt securities at FVTPL.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 509 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation 38 Assets pledged, collateral received and assets transferred Assets are pledged or transferred as collateral to secure liabilities under repurchase agreements, securitisations and stock lending agreements or as security deposits relating to derivatives. Assets transferred are non-cash assets transferred to a third party that do not qualify for derecognition from the Group balance sheet, for example because Barclays retains substantially all the exposure to those assets under an agreement to repurchase them in the future for a fixed price. Assets pledged or transferred as collateral include all assets categorised as encumbered in the disclosure on pages 180 to 182 of the Barclays PLC Pillar 3 Report 2022 (unaudited), other than those held in commercial paper conduits. In these transactions, the Group will be required to step in to provide financing itself under a liquidity facility if the vehicle cannot access the commercial paper market. Where non-cash assets are pledged or transferred as collateral for cash received, the asset continues to be recognised in full, and a related liability is also recognised on the balance sheet. Where non-cash assets are pledged or transferred as collateral in an exchange for non-cash assets, the transferred asset continues to be recognised in full, and there is no associated liability as the non-cash collateral received is not recognised on the balance sheet. The Group is unable to use, sell or pledge the transferred assets for the duration of the transaction and remains exposed to interest rate risk and credit risk on these pledged assets. Unless stated, the counterparty's recourse is not limited to the transferred assets. The following table summarises the nature and carrying amount of the assets pledged as security against these liabilities: 2022 2021 £m £m Cash collateral and settlements 78,996 66,138 Loans and advances at amortised cost 64,772 65,216 Trading portfolio assets 63,969 71,518 Financial assets at fair value through the income statement 8,220 5,595 Financial assets at fair value through other comprehensive income 18,210 13,748 Assets pledged 234,167 222,215 The following table summarises the transferred financial assets and the associated liabilities. The transferred assets represent the gross carrying value of the assets pledged and the associated liabilities represent the IFRS balance sheet value of the related liability recorded on the balance sheet: Associated Transferred assets liabilities £m £m At 31 December 2022 Derivatives 79,474 (79,474) Repurchase agreements 74,291 (46,617) Securities lending arrangements 67,554 — Other 12,848 (11,055) 234,167 (137,146) At 31 December 2021 Derivatives 66,744 (66,744) Repurchase agreements 71,820 (49,543) Securities lending arrangements 69,316 — Other 14,335 (12,121) 222,215 (128,408) For repurchase agreements the difference between transferred assets and the associated liabilities is predominantly due to IFRS netting. Included within Other are agreements where a counterparty's recourse is limited to the transferred assets. The relationship between the gross transferred assets and the associated liabilities is that holders of notes may only look to cash flows from the securitised assets for payments of principal and interest due to them under the terms of their notes. Carrying value Fair value Associated Associated Transferred assets liabilities Transferred assets liabilities Net position £m £m £m £m £m 2022 Recourse to transferred assets only 6,150 (1,557) 6,530 (1,480) 5,050 2021 Recourse to transferred assets only 1,303 (1,225) 1,423 (1,219) 204 The Group has an additional £5.3bn (2021: £5.8bn) of loans and advances within its asset backed funding programmes that can readily be used to raise additional secured funding and are available to support future issuances.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 510 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Scope of consolidation Collateral held as security for assets Under certain transactions, including reverse repurchase agreements and stock borrowing transactions, the Group is allowed to resell or re-pledge the collateral held. The fair value at the balance sheet date of collateral accepted and re-pledged or transferred to others was as follows: 2022 2021 £m £m Fair value of securities accepted as collateral 988,340 928,999 Of which fair value of securities re-pledged/transferred to others 892,026 814,448 Additional disclosure has been included in collateral and other credit enhancements in the Risk review section. Assets pledged as collateral include all assets categorised as encumbered in the disclosure on pages 180 to 182 of the Barclays PLC Pillar 3 Report 2022 (unaudited).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 511 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Other disclosure matters The notes included in this section focus on related party transactions, Auditor's remuneration and Directors’ remuneration. Related parties include any subsidiaries, associates, joint ventures and Key Management Personnel. 39 Related party transactions and Directors’ remuneration Related party transactions Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions, or one other party controls both. Subsidiaries Transactions between Barclays PLC and its subsidiaries meet the definition of related party transactions. Where these are eliminated on consolidation, they are not disclosed in the Group’s financial statements. Transactions between Barclays PLC and its subsidiaries are fully disclosed in Barclays PLC’s financial statements. A list of the Group’s principal subsidiaries is shown in Note 34. Associates, joint ventures and other entities The Group provides banking services to its associates, joint ventures and the Group pension funds (principally the UK Retirement Fund), providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other services. Group companies also provide investment management and custodian services to the Group pension schemes. All of these transactions are conducted on the same terms as third party transactions. Summarised financial information for the Group’s investments in associates and joint ventures is set out in Note 36. Amounts included in the Group’s financial statements, in aggregate, by category of related party entity are as follows: Associates Joint ventures Pension funds £m £m £m For the year ended and as at 31 December 2022 Total income (2) 91 5 Credit impairment charges — — — Operating expenses (15) — (1) Total assets — 1,336 3 Total liabilities 408 — 166 For the year ended and as at 31 December 2021 Total income — 50 5 Credit impairment charges — — — Operating expenses (20) — (1) Total assets — 1,278 3 Total liabilities 177 — 81 Total liabilities includes derivatives transacted on behalf of the pension funds of £110m (2021: £18m). Key Management Personnel Key Management Personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of Barclays PLC (directly or indirectly) and comprise the Directors and Officers of Barclays PLC, certain direct reports of the Group Chief Executive and the heads of major business units and functions. The Group provides banking services to Key Management Personnel and persons connected to them. Transactions during the year and the balances outstanding were as follows: Loans outstanding 2022 2021 £m £m As at 1 January 7.8 9.2 a Loans issued during the year 1.4 0.4 b Loan repayments during the year (1.7) (1.8) As at 31 December 7.5 7.8 Notes a Includes loans issued to existing Key Management Personnel and new or existing loans issued to newly appointed Key Management Personnel. b Includes loan repayments by existing Key Management Personnel and loans to former Key Management Personnel.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 512 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters No allowances for impairment were recognised in respect of loans to Key Management Personnel (or any connected person). Deposits outstanding 2022 2021 £m £m As at 1 January 9.1 10.4 a Deposits received during the year 47.9 37.6 b Deposits repaid during the year (41.8) (38.9) As at 31 December 15.2 9.1 Notes a Includes deposits received from existing Key Management Personnel and new or existing deposits received from newly appointed Key Management Personnel. b Includes deposits repaid by existing Key Management Personnel and deposits of former Key Management Personnel. Total commitments outstanding Total commitments outstanding refers to the total of any undrawn amounts on credit cards and/or overdraft facilities provided to Key Management Personnel. Total commitments outstanding as at 31 December 2022 were £0.5m (2021: £0.6m). All loans to Key Management Personnel (and persons connected to them) were made in the ordinary course of business; were made on substantially the same terms, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other persons; and did not involve more than a normal risk of collectability or present other unfavourable features. Remuneration of Key Management Personnel Total remuneration awarded to Key Management Personnel below represents salaries, short term benefits and pensions contributions received during the year and awards made as part of the latest remuneration decisions in relation to the year. Costs recognised in the income statement reflect the accounting charge for the year included within operating expenses. The difference between the values awarded and the recognised income statement charge principally relates to the recognition of costs for deferred awards. Figures are provided for the period that individuals met the definition of Key Management Personnel. 2022 2021 £m £m Salaries and other short-term benefits 32.4 37.8 Pension costs — — Other long-term benefits 7.8 8.5 Share-based payments 9.8 12.2 Employer social security charges on emoluments 6.7 7.2 Costs recognised for accounting purposes 56.7 65.7 Employer social security charges on emoluments (6.7) (7.2) Other long-term benefits – difference between awards granted and costs recognised — 3.1 Share-based payments – difference between awards granted and costs recognised 6.5 6.9 Total remuneration awarded 56.5 68.5 Disclosure required by the Companies Act 2006 The following information regarding the Barclays PLC Board of Directors is presented in accordance with the Companies Act 2006: 2022 2021 £m £m a Aggregate emoluments 9.3 8.2 b Amounts paid under LTIPs 0.4 1.2 9.7 9.4 Notes a The aggregate emoluments include amounts paid for the 2022 year. In addition, deferred share awards for 2022 with a total value at grant of £2.3m (2021: £1.4m) will be made to C.S. Venkatakrishnan, Anna Cross and Tushar Morzaria which will only vest subject to meeting certain conditions. b The figure above for "Amounts paid under LTIPs" in 2022 relates to LTIP awards that were released to Tushar Morzaria in 2022. Dividend shares released are excluded. The LTIP figure in the single total figure table for Executive Directors' 2022 remuneration in the Directors' Remuneration report relates to the award that is scheduled to be released in 2023 in respect of the 2020-2022 LTIP cycle. There were no pension contributions paid to defined contribution schemes on behalf of Directors (2021: £nil). There were no notional pension contributions to defined contribution schemes. As at 31 December 2022, there were no Directors accruing benefits under a defined benefit scheme (2021: nil). Directors’ and Officers’ shareholdings and options The beneficial ownership of ordinary share capital of Barclays PLC by all Directors and Officers of Barclays PLC (involving 23 persons) at 31 December 2022 amounted to 15,944,986 (2021: 17,876,352) ordinary shares of 25p each (0.11% of the ordinary share capital outstanding). As at 31 December 2022, Executive Directors and Officers of Barclays PLC (involving 11 persons) held options to purchase a total of 62,268 (2021: 62,268) Barclays PLC ordinary shares of 25p each at a weighted average price of 93p under Sharesave.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 513 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Advances and credit to Directors and guarantees on behalf of Directors In accordance with Section 413 of the Companies Act 2006, the total amount of advances and credits made available in 2022 to persons who served as Directors during the year was £0.2m (2021: £0.2m). The total value of guarantees entered into on behalf of Directors during 2022 was £nil (2021: £nil). 40 Auditor’s remuneration Auditor’s remuneration is included within consultancy, legal and professional fees in administration and general expenses and comprises: 2022 2021 2020 £m £m £m Audit of the Barclays Group's annual accounts 10 9 9 Other services: a Audit of the Company's subsidiaries 48 41 38 b Other audit related fees 11 10 10 Other services 2 2 2 Total Auditor's remuneration 71 62 59 Notes a Comprises the fees for the statutory audit of subsidiaries both inside and outside the UK and fees for work performed by associates of KPMG in respect of the consolidated financial statements of the Company. b Comprises services in relation to statutory and regulatory filings. These include audit services for the review of the interim financial information under the Listing Rules of the UK listing authority. Audit scope changes are finalised following the completion of the audit and recognised when agreed. The 2022 audit fee includes £2m (2021: £3m) relating to the previous year’s audit. 41 Interest rate benchmark reform Following the financial crisis, the reform and replacement of benchmark interest rates such as LIBOR has been a priority for global regulators. As a result, the UK’s Financial Conduct Authority (FCA) and other global regulators instructed market participants to prepare for the cessation of most LIBOR rates after the end of 2021, and to adopt “Risk-Free Rates” (RFRs). Pursuant to FCA announcements during 2021, panel bank submissions for all GBP, JPY, EUR and CHF LIBOR tenors ceased after 31 December 2021. For USD, certain actively used tenors will continue to be provided until end June 2023 in their current form, however in line with the US banking regulators’ joint statement, Barclays ceased issuing or entering into new contracts that use USD LIBOR as a reference rate from 31 December 2021, other than in relation to those allowable use cases set out under the FCA's prohibition notice (ref 21A). These include, amongst others, market making in support of client activity; or transactions that reduce or hedge Barclays' or any client of Barclays' USD LIBOR exposure on contracts entered into before 1 January 2022. The Group’s exposure to rates subject to benchmark interest rate reform has been predominantly to GBP, USD, JPY and CHF LIBOR and Euro Overnight Index Average (EONIA) in addition to GBP LIBOR ICE Swap Rate, JPY LIBOR Tokyo Swap Rate and USD LIBOR ICE Swap Rate, with the vast majority concentrated in derivatives within the Investment Bank. Some additional exposure exists on floating rate loans and advances, repurchase and securities lending agreements and debt securities held and issued within the Corporate and Investment Bank. Following transition activity in late 2021 and early 2022, almost all GBP LIBOR, GBP LIBOR ICE Swap Rate, JPY LIBOR and JPY LIBOR Tokyo Swap Rate and CHF LIBOR and EONIA positions (“2021 scope”) have transitioned onto RFRs and while there are a number of benchmarks yet to cease, the Group’s risk exposure is now mainly to USD LIBOR and the USD LIBOR ICE Swap Rate. There are key differences between IBORs and RFRs. IBORs are ‘term rates’, which means that they are published for a borrowing period (for example three months) and they are ‘forward-looking’, because they are published at the beginning of a borrowing period, based upon an estimated inter-bank borrowing cost for the period. RFRs are based upon overnight rates from actual transactions and are therefore published after the end of the overnight borrowing period. Furthermore, IBORs include term and credit risk premiums. Therefore, to transition existing contracts and agreements to RFRs, adjustments for term and credit differences may need to be applied to RFR-linked rates. The methodologies for these adjustments have been determined through in-depth consultations by industry working groups, on behalf of the respective global regulators and related market participants. How the Group is managing the transition to alternative benchmark rates Barclays has established a Group-wide LIBOR Transition Programme. The Transition Programme spans all business lines and has cross-functional governance which includes Legal, Compliance, Conduct Risk, Risk and Finance. The Transition Programme aims to drive strategic execution and identify, manage and resolve key risks and issues as they arise. Barclays continues to provide quarterly updates on progress and exposures to the PRA/FCA and other regulators as required. The Transition Programme follows a risk-based approach, using recognised ‘change delivery’ control standards. Accountable Executives are in place within key working groups and workstreams, with overall Board oversight delegated to the Board Risk Committee. Approaches to USD LIBOR and USD LIBOR ICE Swap Rate exposure transition vary by product and nature of counterparty. The Group has engaged with counterparties to transition or include robust fallback provisions where not already agreed in contracts with maturities after June 2023, when USD LIBOR and the USD LIBOR ICE Swap Rate will either cease to be published or cease to be published, in its current form. Any fallback provision will provide the relevant replacement rate, in the case of the ISDA 2020 IBOR Fallbacks Protocol this is the RFR plus a credit adjustment spread. For bilateral derivative exposure, adherence to the relevant ISDA Fallback Protocols have provided Barclays with an efficient mechanism to amend outstanding trades to incorporate fallbacks. Beyond the ISDA 2020 IBOR Fallbacks Protocol and the ISDA 2021 Fallbacks Protocol, another option has been to bilaterally amend terms with

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 514 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters counterparties. Derivative contracts facing central clearing counterparties (CCP) will follow a market-wide, standardised approach to reform through a series of CCP-led conversions, similar to those used for GBP, JPY and CHF LIBOR and EONIA. GBP and JPY LIBOR ceased to be published in their original form from the end of 2021 and synthetic versions of GBP and JPY LIBOR have been made available for a limited period of time. This was to help mitigate the risk of widespread disruption to legacy LIBOR contracts which had not transitioned by end 2021, when the GBP and JPY panel bank submissions ended. The FCA has reiterated that any synthetic LIBOR tenors are only a bridge to give time to transition to appropriate alternative RFRs and not a permanent solution. Barclays continues to monitor, assess and limit the reliance on synthetic LIBOR. On 29th September 2022 the FCA announced that the 1- and 6- month synthetic GBP LIBOR tenors would cease immediately after 31st March 2023 and confirmed that the synthetic JPY LIBOR tenors would cease permanently at end 2022. On 23rd November 2022 the FCA announced that the 3-month synthetic GBP LIBOR tenor will cease at end March 2024 and that the overnight and 12-month USD LIBOR tenors will cease at end June 2023. The FCA also proposed that the 1-, 3- and 6-month USD LIBOR tenors should be published under a synthetic methodology for a temporary period until end September 2024. A final decision from the FCA is expected by early in the second quarter of 2023. US Federal legislation (the Adjustable Interest Rate (LIBOR) Act) has been enacted which provides a solution for contracts governed under US law which reference USD LIBOR but do not have adequate fallbacks. The effect of this legislation on in scope agreements will be to deem all references to USD LIBOR to the replacement Secured Overnight Financing Rate (SOFR) with the additional benefit of statutory contract continuity and safe harbour protection. This contrasts with the legislation implemented in the UK which provides for statutory contract continuity with safe harbour protection only for the administrator and could expose market participants to additional litigation risk. Progress made during 2022 During 2022, Barclays delivered technology and business process changes required to ensure operational readiness in preparation for transitions to RFRs for those benchmark rates ceasing June 2023, this included new RFR product capabilities and alternatives to LIBOR across loans, bonds, repurchase and securities lending transactions and derivatives. Barclays continued to monitor and address its unremediated exposure to 2021 scope; noting that this exposure, excluding secondary traded loans and bonds, was reduced to £2bn gross notional as at 31 December 2022, which accounts for less than 0.2% of baseline exposure for 2021 scope. Of this, £1.2bn relates to undrawn lending facilities with £1.1bn of this made up of syndicated loans where transition is led by a third-party agent. The remaining £0.8bn is predominantly made up of bilateral derivatives without appropriate fallbacks. Work is ongoing with clients and agents, as appropriate, to address the outstanding unremediated exposures. Barclays is now focused on transition of legacy positions related to USD LIBOR and USD LIBOR ICE Swap Rate (and other in-scope IBORs) and remains on track to meet the associated industry deadlines. In the first half of 2022, Barclays successfully transitioned all uncommitted lending exposures. Risks to which the Group is exposed as a result of the transition Global regulators and central banks in the UK, US, EU and APAC have been driving international efforts to reform key benchmark interest rates and indices, such as LIBOR, which are used to determine the amounts payable under a wide range of transactions and make them more reliable and robust. These benchmark reforms have resulted in significant changes to the methodology and operation of certain benchmarks and indices, the adoption of RFRs, the discontinuation of certain reference rates (including LIBOR), and the introduction of implementing legislation and regulations. Notwithstanding these developments, given the unpredictable consequences of benchmark reform, any of these developments could have an adverse impact on market participants, including the Group, in respect of any financial instruments linked to, or referencing, any of these benchmark interest rates. Uncertainty associated with such potential changes include: • the availability and/or suitability of alternative RFRs, • the participation of customers and third-party market participants in the transition process • challenges with respect to required documentation changes; and • impact of legislation to deal with ‘certain legacy’ contracts that cannot convert into RFRs or add RFR fallbacks before cessation of the benchmark they reference. This uncertainty may adversely affect a broad range of transactions (including any securities, loans, repurchase and securities lending transactions and derivatives which use LIBOR or any other affected benchmark to determine the amount of interest payable that are included in the Group’s financial assets and liabilities) that use these reference rates and indices, and present a number of risks for the Group, including, but not limited to: ▪ Conduct risk: in undertaking actions to transition away from using certain reference rates (such as LIBOR) to new alternative RFRs, the Group faces conduct risks. These may lead to customer complaints, regulatory sanctions or reputational impact if the Group is considered to be (among other things): (i) undertaking market activities that are manipulative or create a false or misleading impression, (ii) misusing sensitive information or not identifying or appropriately managing or mitigating conflicts of interest, (iii) providing customers with inadequate advice, misleading information, unsuitable products or unacceptable service, (iv) not taking a consistent approach to remediation for customers in similar circumstances, (v) unduly delaying the communication and migration activities in relation to client exposure, leaving them insufficient time to prepare, or (vi) colluding or inappropriately sharing information with competitors. ▪ Litigation risk: members of the Group may face legal proceedings, regulatory investigations and/or other actions or proceedings regarding (among other things): (i) the conduct risks identified above, (ii) the interpretation and enforceability of provisions in LIBOR- based contracts, and (iii) the Group’s preparation and readiness for the replacement of LIBOR with alternative RFRs.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 515 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters ▪ Financial risk: the valuation of certain of the Group’s financial assets and liabilities may change. Moreover, transitioning to alternative RFRs may impact the ability of members of the Group to calculate and model amounts receivable by them on certain financial assets and determine the amounts payable on certain financial liabilities (such as debt securities issued by them) because certain alternative RFRs (such as SONIA and the SOFR) are look-back rates whereas term rates (such as LIBOR) allow borrowers to calculate at the start of any interest period exactly how much is payable at the end of such interest period. This may have a material adverse effect on the Group’s cash flows. ▪ Pricing risk: changes to existing reference rates and indices, discontinuation of any reference rate or indices and transition to alternative RFRs may impact the pricing mechanisms used by the Group on certain transactions. ▪ Operational risk: changes to existing reference rates and indices, discontinuation of any reference rate or index and transition to alternative RFRs may require changes to the Group’s IT systems, trade reporting infrastructure, operational processes, and controls. In addition, if any reference rate or index (such as LIBOR) is no longer available to calculate amounts payable, the Group may incur additional expenses in amending documentation for new and existing transactions and/or effecting the transition from the original reference rate or index to a new reference rate or index. ▪ Accounting risk: an inability to apply hedge accounting in accordance with IAS 39 could lead to increased volatility in the Group’s financial results and performance. Any of these factors may have a material adverse effect on the Group’s business, results of operations, financial condition, prospects, and reputation. While a number of the above risks in relation to transition of legacy 2021 scope onto RFRs have been substantially mitigated, they remain relevant in relation to USD LIBOR transitions. The Group does not expect material changes to its risk management approach and strategy as a result of interest rate benchmark reform. The following tables summarise USD LIBOR and USD LIBOR ICE Swap Rate non-derivatives exposures due to mature post 30 June 2023, when USD LIBOR and the USD LIBOR ICE Swap Rate will either cease to be published or cease to be published, in its current form: USD LIBOR 2022 2021 As at 31 December £m £m Non-derivative financial assets Loans and advances at amortised cost 8,659 15,812 Reverse repurchase agreements and other similar secured lending — 186 Financial assets at fair value through the income statement 4,282 8,538 Financial assets at fair value through other comprehensive income — — Non-derivative financial assets 12,941 24,536 Non-derivative financial liabilities Debt securities in issue (9,062) (6,137) Subordinated liabilities (1,132) (1,088) Financial liabilities designated at fair value (1,740) (212) Non-derivative financial liabilities (11,934) (7,437) Equity Other equity instruments (1,786) (3,374) a Standby facilities, credit lines and other commitments 68,118 42,767 Note a For year ended 2021, multi currency loan facilities are reported in the currency which needs to be remediated first, which were mainly non-USD. As the non-USD rates transitioned, this has resulted in a corresponding increase in USD LIBOR exposure for year ended 2022 as USD LIBOR exposure is yet to transition. Balances reported at amortised cost are disclosed at their gross carrying value and do not include any expected credit losses that may be held against them. The following tables summarise USD LIBOR and USD LIBOR ICE Swap Rate derivative exposures due to mature post 30 June 2023: USD LIBOR 2022 2021 £m £m Derivative notional contract amount OTC interest rate derivatives 2,594,268 2,283,236 OTC interest rate derivatives - cleared by central counterparty 2,137,245 2,228,399 Exchange traded interest rate derivatives 337,535 466,339 OTC foreign exchange derivatives 84 461,680 OTC equity and stock index derivatives 1,261 9,949 Derivative notional contract amount 5,070,393 5,449,603 Derivatives are reported using the notional contract amount As at 31 December 2022 the Group also had £9bn (2021: £9bn) of Barclays issued debt retained by the group, impacted by the interest rate benchmark reform, in USD LIBOR.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 516 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Fallback clauses The USD LIBOR and USD LIBOR ICE Swap Rate as at 31 December 2022 exposure has been broken up into those with robust fallbacks and those without. Fallbacks here are defined as any mechanism involving a ‘switch’ or ‘hardwire’ or a contractual agreement to automatically transition to an agreed rate. One of the most commonly used market solutions to incorporate fallback provisions into certain legacy non-cleared derivative agreements are the ISDA Fallbacks Protocols, namely the ISDA 2020 IBOR Fallbacks Protocol and the ISDA 2021 Fallbacks Protocol published in October 2020. Market participants who have adhered to the relevant ISDA Fallbacks Protocol agree, between adhering parties, that their legacy non-cleared contracts will be amended to include the relevant fallback provisions. The following table presents a breakdown of USD LIBOR and USD LIBOR ICE Swap Rate non-derivative exposures with robust fallbacks in place and those without as at 31 December 2022: With robust Without robust USD LIBOR fallback clause fallback clause £m £m As at 31 December 2022 Non-derivative financial assets 7,770 889 Loans and advances at amortised cost 4,282 — Financial assets at fair value through the income statement 12,052 889 Non-derivative financial assets Non-derivative financial liabilities (9,062) — Debt securities in issue (1,132) — Subordinated liabilities (1,740) — Financial liabilities designated at fair value (11,934) — Non-derivative financial liabilities Equity (1,786) — Other equity instruments 64,632 3,486 Standby facilities, credit lines and other commitments The following table presents a breakdown of USD LIBOR and USD LIBOR ICE Swap Rate derivative exposures with robust fallbacks in place and those without as at 31 December 2022: With robust Without robust USD LIBOR fallback clause fallback clause £m £m As at 31 December 2022 Derivative notional contract amount 2,538,218 56,050 OTC interest rate derivatives 2,137,245 — OTC interest rate derivatives - cleared by central counterparty 337,535 — Exchange traded interest rate derivatives 84 — OTC foreign exchange derivatives 770 491 OTC equity and stock index derivatives 5,013,852 56,541 Derivative notional contract amount The majority of USD LIBOR and USD LIBOR ICE Swap Rate exposures are already covered by fallbacks as a result of the 2020 ISDA IBOR Fallbacks Protocol and the June 2022 Benchmark Module of the ISDA 2021 Fallbacks Protocol which relevant Barclays entities have adhered to.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 517 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters 42 Barclays PLC (the Parent company) Total income Dividends received from subsidiaries Dividends received from subsidiaries of £2,797m (2021: £1,356m, 2020: £763m) relates to dividends received from Barclays Execution Services Limited £1,080m, Barclays Bank UK PLC £1,010m, Barclays Principal Investments Limited £507m and Barclays Bank PLC £200m. The dividends received in 2020 from its banking subsidiaries were paid up to Barclays PLC prior to the announcement made by the PRA on 31 March 2020 that capital be preserved for use in serving Barclays customers and clients through the extraordinary challenges presented by the COVID-19 pandemic. As part of a response to this announcement, Barclays PLC took steps to provide additional capital to its banking subsidiaries. Other expenses Other expenses of £654m (2021: £659m income, 2020: £1,192m income) includes fair value and foreign exchange losses of £1,673m (2021: £250m, 2020: £248m) on positions with subsidiaries partially offset by £905m (2021: £804m, 2020: £857m) of income received from gross coupon payments on Barclays Bank PLC and Barclays Bank UK PLC-issued AT1 securities. Total assets and liabilities Investment in subsidiaries The investment in subsidiaries of £64,544m (2021: £62,528m) predominantly relates to investments in the ordinary shares of Barclays Bank PLC of £36,340m (2021: £35,590m) and their AT1 securities of £10,760m (2021: £9,493m), as well as investments in the ordinary shares of Barclays Bank UK PLC of £14,245m (2021: 14,245m) and their AT1 securities of £2,570m (2021: £2,570m). The increase of £2,016m during the year was driven by a capital injection of £750m and an increase in the AT1 holdings and associated fair value which totalled £998m. Impairment in subsidiaries At the end of each reporting period an impairment review is undertaken in respect of investment in the ordinary shares of subsidiaries. Where impairment may be indicated a test of the carrying value against the recoverable value is performed; impairment being indicated where the investment exceeds the recoverable amount. The recoverable amount is calculated as a value in use (VIU) which is derived from the present value of future cash flows expected to be received from the investment. The VIU calculations use forecast attributable profit based on financial budgets approved by management, covering a five year period as an approximation of future cash flows discounted using a pre-tax discount rate appropriate to the subsidiary being tested. A terminal growth rate has then been applied to the cash flows thereafter which is based upon expectations of future inflation rates. The 2022 review identified the value in use calculated was higher than the carrying value for all subsidiaries. Due to the improved market conditions and interest rate environment for the Group’s UK banking business in December 2021 compared to December 2020, the review further identified that the accumulated impairment for the investment in Barclays Bank UK PLC of £2,573m no longer existed. The VIU of Barclays Bank UK PLC was found to be significantly higher than both the carrying amount of the investment and the gross cost of the investment and hence all accumulated impairment was reversed in December 2021. For Barclays Bank UK PLC, a discount rate of 14.5% was applied to the cash flow forecast in December 2021 (2020: 13.8%). In determining the discount rate, management identified a cost of equity associated with market participants that closely resemble the subsidiary and adjusted for tax to arrive at the pre-tax equivalent rate. A terminal growth rate of 2.0% was used to calculate a terminal value for the investment based on inflation rates to approximate future long term growth in December 2021 (2020:2.0%). Loans and advances in subsidiaries During the year loans and advances to subsidiaries increased by £1,556m to £23,628m (2021: £22,072m). The increase was largely driven by £4,487m new intra-group loans to Barclays PLC subsidiaries and foreign exchange impact of £1,663m due to the depreciation of GBP largely against USD. This was partially offset by the maturity of intra-group loans to Barclays PLC subsidiaries of £4,765m. Subordinated liabilities and debt securities in issue During the year, Barclays PLC issued £1,000m of Fixed Rate Resetting Subordinated Callable Notes, which are included within the subordinated liabilities balance of £11,230m (2021: £9,301m). Debt securities in issue of £24,086m (2021: £25,658m) have reduced during the year primarily due to net maturities of £2,969m senior issuances partially offset by foreign exchange impact of £1,404m due to the depreciation of GBP largely against USD. Management of internal investments Barclays PLC retains the discretion to manage the nature of its internal investments in subsidiaries according to their regulatory and business needs. Barclays PLC may invest capital and funding into Barclays Bank PLC, Barclays Bank UK PLC and other Group subsidiaries such as Barclays Execution Services Limited and the US Intermediate Holding Company (IHC). Financial assets and liabilities designated at fair value Financial liabilities designated at fair value of £22,971m (2021: £16,319m) primarily included new issuances during the year of USD 7,250m, EUR 2,250m Fixed Rate Resetting Senior Callable Notes and USD 400m Zero Coupon Callable Notes. The proceeds raised through these transactions were used to invest in subsidiaries of Barclays PLC and are included within the financial assets designated at fair value through the income statement balance of £28,930m (2021: £25,091m). The effect of changes in the liabilities’ fair value, including those due to credit risk, is expected to offset the changes in the fair value of the related financial asset in the income statement The difference between the financial liabilities’ carrying amount and the contractual amount on maturity is £2,100m (2021: £271m).

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 518 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Derivative financial instruments During the year derivative financial liabilities increased by £863m to £906m (2021: £43m). The increase in the year is primarily driven by the rising rate environment. Total equity Called up share capital and share premium Called up share capital and share premium of Barclays PLC is £4,373m (2021: £4,536m). The decrease in the year is primarily due to 931m shares repurchased with a total nominal value of £233m. This decrease was offset by shares issued under employee share schemes. Other equity instruments Other equity instruments of £13,250m (2021: £12,241m) comprises AT1 securities issued by Barclays PLC. The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under prevailing capital rules applicable as at the relevant issue date. During the year there were three issuances with principal amounts totalling £1,250m, $2,000m, SGD450m and redemptions with principal amounts totalling £1,000m and $1,500m. For further details, please refer to Note 28.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 519 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Wholly owned subsidiaries Note 43 Related undertakings Notes Barclays Services (Japan) Limited The Group’s corporate structure consists R Class A, B, C, D & E Shares Barclays Shea Limited of a number of related undertakings, S Class A and Class B Shares Barclays Singapore Global Shareplans Nominee comprising subsidiary undertakings, joint T PEF Carry Shares Limited ventures, associated undertakings and U Not Consolidated (see Note 35 IFRS12 Barclays Term Funding Limited Liability Partnership B significant holdings. A full list of these Structured entities) Barclays UK Investments Limited related undertakings is set out below, V USD Linked Ordinary Shares Barclays Unquoted Investments Limited together with the country of incorporation, W Redeemable Class B Shares Barclays Unquoted Property Investments Limited registered office (or principal place of X Capital Contribution Shares Barclays Wealth Nominees Limited business) and the identity and percentage Y Class A Redeemable Preference Shares Barclayshare Nominees Limited of each share class held by the Group. The Z Class B Redeemable Preference Shares Barcosec Limited information is provided as at 31 December AA First Class Common Shares, Second Class Barsec Nominees Limited Common Shares 2022. BB Client Nominees Limited BB Tracker 1 GBP, USD, Euro Shares; The entities are grouped by the countries Tracker 2 USD Shares, Tracker 3 USD Shares BMI (No.9) Limited in which they are incorporated. The profits CC Non-Voting Redeemable Preference Shares BNRI ENG 2014 Limited Partnership B earned by the activities of these entities BNRI ENG GP LLP B Wholly owned subsidiaries Note are in some cases taxed in countries other BNRI England 2010 Limited Partnership B United Kingdom than the country of incorporation, for BNRI England 2011 Limited Partnership B example where the entity carries on 1 Churchill Place, London, E14 5HP BNRI England 2012 Limited Partnership B business through a branch in a territory Aequor Investments Limited Carnegie Holdings Limited H,I, J outside of its country of incorporation . Ardencroft Investments Limited Chapelcrest Investments Limited Barclays’ PLC Country Snapshot provides B D & B Investments Limited Clydesdale Financial Services Limited details of where the Group carries on its B.P.B. (Holdings) Limited Cornwall Home Loans Limited business, where its profits are subject to Barclay Leasing Limited CPIA England 2009 Limited Partnership B tax and the taxes it pays in each country it Barclays Aldersgate Investments Limited CPIA England No.2 Limited Partnership B operates in. Barclays Asset Management Limited DMW Realty Limited Wholly owned subsidiaries Barclays Bank PLC A Dorset Home Loans Limited Barclays Bank UK PLC A Unless otherwise stated the undertakings Durlacher Nominees Limited Barclays Capital Asia Holdings Limited below are wholly owned and included in the Eagle Financial and Leasing Services (UK) Barclays Capital Finance Limited consolidation and the share capital held by Limited the Group comprises ordinary and/or Barclays Capital Nominees (No.2) Limited Finpart Nominees Limited common shares, which are held by Barclays Capital Nominees (No.3) Limited FIRSTPLUS Financial Group Limited subsidiaries of Barclays PLC. Unless Barclays Capital Nominees Limited Foltus Investments Limited otherwise stated, the Group holds 100% Barclays Capital Securities Client Nominee Limited Global Dynasty Natural Resource Private B of the nominal value of each share class. Barclays Capital Securities Limited E, H Equity Limited Partnership Barclays CCP Funding LLP B Globe Nominees Limited Notes Barclays Converted Investments (No.2) Limited Hawkins Funding Limited A Directly held by Barclays PLC Barclays Direct Investing Nominees Limited Heraldglen Limited B Partnership Interest Barclays Directors Limited Isle of Wight Home Loans Limited C Membership Interest Barclays Equity Holdings Limited J.V. Estates Limited D Guarantor Barclays Execution Services Limited A Kirsche Investments Limited E Preference Shares Barclays Executive Schemes Trustees Limited Long Island Assets Limited F A Preference Shares Barclays Financial Planning Nominee Company Maloney Investments Limited G Limited B Preference Shares Menlo Investments Limited H Ordinary/Common Shares in addition to Barclays Funds Investments Limited other shares Mercantile Credit Company Limited Barclays Global Shareplans Nominee Limited I Mercantile Leasing Company (No.132) Limited A Ordinary Shares Barclays Group Holdings Limited J MK Opportunities LP B B Ordinary Shares Barclays Industrial Development Limited K Naxos Investments Limited C Ordinary Shares Barclays Industrial Investments Limited L North Colonnade Investments Limited F Ordinary Shares Barclays Insurance Services Company Limited M First Preference Shares, Second Preference Northwharf Investments Limited H,T Barclays International Holdings Limited shares Northwharf Nominees Limited Barclays Investment Management Limited N Registered Address not in country of Radbroke Mortgages UK Limited incorporation Barclays Investment Solutions Limited Real Estate Participation Management Limited O Core Shares, Insurance (Classified) Shares Barclays Leasing (No.9) Limited Real Estate Participation Services Limited P Class B, C, D (100%), E, F, G, H, I (94.36%), J Barclays Long Island Limited (95.32%) and K (100%) Relative Value Investments UK Limited Liability B Barclays Nominees (George Yard) Limited Z Partnership Q Non-Redeemable Ordinary Shares Barclays OCIO Services Limited Relative Value Trading Limited Barclays Pension Funds Trustees Limited N Roder Investments No. 1 Limited H, BB Barclays Principal Investments Limited A, I, J Roder Investments No. 2 Limited H, BB Barclays Private Bank RVT CLO Investments LLP B Barclays SAMS Limited Solution Personal Finance Limited Barclays Security Trustee Limited Surety Trust Limited

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 520 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Wholly owned subsidiaries Note Wholly owned subsidiaries Note Wholly owned subsidiaries Note Sustainable Impact Capital Limited 5th to 12th Floor (Part), Building G2, Gera Cayman Islands Commerzone SEZ, Survey No.65, Kharadi, Pune, Swan Lane Investments Limited PO Box 309, Ugland House, George Town, Grand 411014 Cayman, KY1-1104 US Real Estate Holdings No.1 Limited Barclays Global Service Centre Private Limited Alymere Investments Limited F, G, H US Real Estate Holdings No.2 Limited Nirlon Knowledge Park, Level 9, Block B-6, Off Analytical Trade UK Limited Western Express Highway, Goregaon (East), US Real Estate Holdings No.3 Limited Mumbai, 400063 Barclays Capital (Cayman) Limited US Real Estate Holdings No.4 Limited Barclays Investments & Loans (India) Private Limited E, H Barclays Securities Financing Limited F, G ,H US Real Estate Holdings No.5 Limited Barclays US Holdings Limited E, I US Real Estate Holdings No.6 Limited Braven Investments No.1 Limited Ireland Wedd Jefferson (Nominees) Limited Calthorpe Investments Limited One Molesworth Street, Dublin 2, D02RF29 Westferry Investments Limited Capton Investments Limited Barclaycard International Payments Limited Woolwich Homes Limited Claudas Investments Limited H, Y, Z Barclays Bank Ireland Public Limited Company Woolwich Qualifying Employee Share Ownership Trustee Limited Claudas Investments Two Limited Barclays Europe Client Nominees Designated Activity U Company Zeban Nominees Limited CPIA Investments No.2 Limited Barclays Europe Firm Nominees Designated Activity U Barclays Capital Japan Securities Holdings Gallen Investments Limited Company Limited (In liquidation) Hurley Investments No.1 Limited Barclays Europe Nominees Designated Activity U Barclays Marlist Limited (In liquidation) JV Assets Limited (In liquidation) K Company Cobalt Investments Limited (In liquidation) Mintaka Investments No. 4 Limited 25-28 North Wall Quay, Dublin1, D01H104 Leonis Investments LLP B OGP Leasing Limited (In liquidation) Erimon Home Loans Ireland Limited 1-4, Clyde Place Lane, Glasgow, G5 8DP Palomino Limited U 70 Sir John Rogerson’s Quay, Dublin 2 R.C. Greig Nominees Limited Pelleas Investments Limited Barclays Finance Ireland Limited 50 Lothian Road, Festival Square, Edinburgh, Pippin Island Investments Limited EH3 9WJ Razzoli Investments Limited E, H BNRI PIA Scot GP Limited Isle of Man RVH Limited E, H BNRI Scots GP, LLP B PO Box 9, Victoria Street, Douglas, IM99 1AJ Wessex Investments Limited Pecan Aggregator LP B, U Barclays Nominees (Manx) Limited Walkers Corporate Limited, Cayman Corporate Logic House, Waterfront Business Park, Park, Fleet Barclays Private Clients International Limited I, J Centre, 27 Hospital Road, George Town, KY1- 9008 Road, Fleet, GU51 3SB 2nd Floor, St Georges Court, Upper Church Street, Long Island Holding B Limited The Logic Group Enterprises Limited Douglas, IM1 1EE The Logic Group Holdings Limited I Barclays Holdings (Isle of Man) Limited (In Liquidation) 9, allée Scheffer, L-2520, Luxembourg Germany Barclays Claudas Investments Partnership B, N TaunusTurm, Taunustor 1, 60310, Frankfurt Barclays Pelleas Investments Limited Partnership B, N Japan Barclays Capital Effekten GmbH (In liquidation) Barclays Blossom Finance Limited Partnership B,N 10-1, Roppongi 6-chome, Minato-ku, Tokyo Stuttgarter Straße 55-57, 73033 Göppingen 1 Churchill Place, London, E14 5HP Barclays Funds and Advisory Japan Limited Holding Stuttgarter Straße GmbH Alynore Investments Limited Partnership B,N Barclays Securities Japan Limited F, H (In liquidation) Barclays Wealth Services Limited Argentina Guernsey Jersey 855 Leandro N.Alem Avenue, 8th Floor, Buenos P.O. Box 33, Dorey Court, Admiral Park, St. Aires Gaspé House, 66-72 Esplanade, St. Helier, JE1 1GH Peter Port, GY1 4AT Compañía Sudamerica S.A. Barclays Services Jersey Limited Barclays Insurance Guernsey PCC Limited O Marval, O’Farrell & Mairal, Av. Leandro N. 5 Espalanade, St Helier, JE2 3QA Alem 882, Buenos Aires, C1001AAQ Barclays Wealth Management Jersey Limited Compañia Regional del Sur S.A. Hong Kong BIFML PTC Limited (In liquidation) 42nd floor Citibank Tower, Citibank Plaza, 13 Library Place, St Helier, JE4 8NE 3 Garden Road Barclays Nominees (Jersey) Limited U Brazil Barclays Bank (Hong Kong Nominees) Limited Av. Brigadeiro Faria Lima, No.4.440, 12th Floor, Barclaytrust Channel Islands Limited U (In liquidation) Bairro Itaim Bibi, Sao Paulo, CEP, 04538-132 Esplanade, St Helier, JE1 1EE Barclays Capital Asia Nominees Limited Barclays Brasil Assessoria Financeira Ltda (In liquidation) MK Opportunities GP Ltd A BNC Brazil Consultoria Empresarial Ltda Level 41,Cheung Kong Center, 2 Queen's Road, Central Barclays Capital Asia Limited Luxembourg Canada 9, allée Scheffer, L-2520 333 Bay Street, Suite 4910, Toronto ON M5H Barclays Alzin Investments S.à r.l. R 2R2 India Barclays Bedivere Investments S.à r.l. Barclays Capital Canada Inc. 208 Ceejay House, Shivsagar Estate, Dr A Beasant Barclays Bordang Investments S.à r.l. S Road, Worli, Mumbai, 400 018 Stikeman Elliot LLP, 199 Bay Street, 5300 Barclays BR Investments S.à r.l. Commerce Court West, Toronto ON M5L 1B9 Barclays Securities (India) Private Limited Barclays Cantal Investments S.à r.l. Barclays Corporation Limited Barclays Wealth Trustees (India) Private Limited Barclays Capital Luxembourg S.à r.l. 1 Churchill Place, London, E14 5HP Barclays Capital Trading Luxembourg S.à r.l. S CPIA Canada Holdings B, N Barclays Claudas Investments S.à r.l. Barclays Equity Index Investments S.à r.l.

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 521 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Other Related Undertakings Wholly owned subsidiaries Note Wholly owned subsidiaries Note Barclays International Luxembourg Dollar Unless otherwise stated, the undertakings Taiwan (Province of China) Holdings S.à r.l. below are included in the consolidation and 19F-1, No. 7, Xinyi Road, Sec. 5, Taipei,A322, Barclays Lamorak Investments S.à r.l. E, Q Taiwan the share capital held by the Group Barclays Leto Investments S.à r.l. U Barclays Securities Taiwan Limited comprises ordinary and/or common Barclays Luxembourg EUR Holdings S.à r.l Q shares, which are held by subsidiaries of Barclays Luxembourg Finance S.à r.l. Barclays PLC. The percentage of the United States Barclays Luxembourg GBP Holdings S.à r.l. T nominal value of each share class held by Corporation Service Company, 251 Little Falls Barclays Luxembourg Global Funding S.à r.l. the Group is provided below. Drive, Wilmington, DE 19808 Barclays Luxembourg Holdings S.à r.l. H, V Analytical Trade Holdings LLC Other Related Undertakings % Note Barclays Luxembourg Holdings SSC B Analytical Trade Investments LLC W United Kingdom 68-70 Boulevard de la Petrusse, L-2320 Barclays Bank Delaware 1 Churchill Place, London, E14 5HP Adler Toy Holding Sarl Barclays Capital Derivatives Funding LLC C Barclaycard Funding PLC 100.00 I 10 rue du Cha'teau d'Eau, Leudelange, L-3364 Barclays Capital Energy Inc. 100.00 J BPM Management GP SARL Barclays Capital Equities Trading GP B PSA Credit Company Limited 100.00 I (In liquidation) Barclays Capital Holdings Inc. F, G, H 100.00 K Barclays Capital Real Estate Finance Inc. Mauritius Barclays Covered Bonds Limited 50.00 B Barclays Capital Real Estate Holdings Inc. C/O Rogers Capital Corporate Services Limited, Liability Partnership 3rd Floor, Rogers House, No.5 President John Barclays Capital Real Estate Inc. St Helen’s, 1 Undershaft, London, Kennedy Street, Port Louis Barclays Commercial Mortgage Securities LLC C EC3P 3DQ Barclays Capital Mauritius Limited (In liquidation) Barclays Dryrock Funding LLC C Igloo Regeneration (General Partner) 100.00 K, U Barclays Capital Securities Mauritius Limited Limited Barclays Financial LLC C Fifth Floor, Ebene Esplanade, 24 Cybercity, Ebene 3-5 London Road, Rainham, Kent, Barclays Group US Inc. ME8 7RG Barclays Mauritius Overseas Holdings Limited Barclays Oversight Management Inc. Trade Ideas Limited 20.00 U Barclays Receivables LLC C 50 Lothian Road, Festival Square, Edinburgh, EH3 9WJ Barclays Services Corporation Mexico Equistone Founder Partner II L.P. 20.00 B, U Paseo de la Reforma 505, 41 Floor, Torre Mayor, Barclays Services LLC C Col. Cuauhtemoc, CP 06500 Equistone Founder Partner III L.P. 35.00 B, U Barclays US CCP Funding LLC C Barclays Bank Mexico, S.A. J, L Enigma, Wavendon Business Park Barclays US Investments Inc. Milton Keynes, MK178LX Barclays Capital Casa de Bolsa, S.A. de C.V. J, L Barclays US LLC Intelligent Processing Solutions Limited 19.50 U Grupo Financiero Barclays Mexico, S.A. de C.V. J, L BCAP LLC C c/o BDP LLP, Two Snow Hill, Servicios Barclays, S.A. de C.V. Curve Investments GP B Queensway, Birmingham, B4 6GA Gracechurch Services Corporation GW City Ventures Limited (In liquidation) 100.00 J,U Lagalla Investments LLC GN Tower Limited (In liquidation) 100.00 U Monaco Long Island Holding A LLC C Haberfield Old Moor Road, Wennington, 31 Avenue de la Costa, Monte Carlo BP 339 Lancaster, LA2 8PD Marbury Holdings LLC Barclays Private Asset Management (Monaco) S.A.M Full House Holdings Limited 67.42 U Preferred Liquidity, LLC I 13-15 York Buildings, London, Procella Investments No.2 LLC C WC2N 6JU Saudi Arabia Procella Investments No.3 LLC C BGF Group PLC 24.62 U 3rd Floor Al Dahna Center, 114 Al-Ahsa Street, PO Relative Value Holdings, LLC Unit 9 Westbrook Court, Sharrowvale Box 1454, Riyadh 11431 Road, Sheffield, United Kingdom, Surrey Funding Corporation Barclays Saudi Arabia (In liquidation) S11 8YZ Sussex Purchasing Corporation Palms Row Healthcare Holdings Limited 99.99 U, CC Sutton Funding LLC C 5th Floor, 44 Great Marlborough Street, Singapore US Secured Investments LLC CC London, W1F 7JL 10 Marina Boulevard, #25-01 Marina Bay Financial Verain Investments LLC AVFI TIDE I LP 37.60 B, U Centre, Tower 2, 018983 Wilmington Riverfront LLC W 41 Luke Street, London, EC2A 4DP Barclays Capital Futures (Singapore) Private Limited Aon Insurance Managers, 76 Paul Street Suite, 500, (In liquidation) Fintech for International Development 26.37 I Burlington VT 05401 Limited Barclays Capital Holdings (Singapore) Private Limited Barclays Insurance U.S. Inc. (In liquidation) 100.00 J Barclays Merchant Bank (Singapore) Ltd. Corporation Service Company, 80 State Street, U Albany, NY, 12207-2543 1 America Square, Crosswall, London, Barclays Equity Holdings Inc. EC3N 2SG Spain Corporation Service Company, 100 Pearl Street, BMC (UK) Ltd 44.90 E, I, U 17th Floor, MC-CSC1, Hartford, CT 06103 Calle Jose, Abascal 51, 28003, Madrid 3rd Floor, 25 Soho Square, London, Barclays Capital Inc. W1D 3QR Barclays Tenedora De Inmuebles SL. Glenwood Ave, Suite 550, Raleigh, NC, 27608 Female Innovators Lab LP 73.17 B, U BVP Galvani Global, S.A.U. Barclays US GPF Inc. Aurora House, 120 Bothwell Street, Glasgow, G2 7JT Equifirst Corporation (In liquidation) Buchanan Wharf (Glasgow) Management 78.00 E Switzerland Limited Chemin de Grange Canal 18-20, PO Box 3941, 1211, Geneva Barclays Bank (Suisse) SA Barclays Switzerland Services SA BPB Holdings SA

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 522 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Subsidiaries by virtue of control Joint Ventures Other Related Undertakings % Note Aviation House, 125 Kingsway, The related undertakings below are The related undertaking below is dealt with London, WC2B 6NH subsidiary undertakings in accordance as a Joint Venture in accordance with s. Huntress Group Limited 25.00 I, U with s.1162 Companies Act 2006 by virtue 18, Schedule 4, The Large and Medium- of the fact that the Group can exercise sized Companies and Groups (Accounts dominant influence or control over them. and Reports) Regulations 2008 and is Belgium proportionally consolidated. The Postbus 751, Neiuwegein, Utrecht, Subsidiaries by virtue of dominant % Note 3430 AT influence or control proportion of the capital of the related undertaking held by the Group is stated Euphony Benelux NV (In liquidation) 20.00 U United Kingdom below. 1 Churchill Place, London, E14 5HP Oak Pension Asset Management Limited 0.00 U Cayman Islands Joint Venture % Note PO Box 309, Ugland House, Grand Water Street Investments Limited 0.00 U United Kingdom Cayman KY1-1104 All Saints Triangle, Caledonian Road, Cupric Canyon Capital GP Limited 50.00 U London, N1 9UT Cayman Islands Cupric Canyon Capital LP 42.2 I, U Vaultex UK Limited 50.00 PO Box 309GT, Ugland House, South Southern Peaks Mining LP 54.4 B, U Church Street, Grand Cayman, KY1-1104 Joint management factors SPM GP Limited 90.00 U Hornbeam Limited 0.00 U The Board of Directors of the above Joint Korea, Republic of Venture comprises two Barclays Guernsey representative Directors, two JV partner 18th Floor, Daishin Finance Centre, 343, P.O. Box 33, Dorey Court, Admiral Park, St. Samil-daero, Jung-go, Seoul Directors and three non-JV partner Peter Port, GY1 4AT Woori BC Pegasus Securitization 70.00 AA Directors. The Board of Directors are Barclays UKRF No.1 IC Limited 0.00 U Specialty Co. Ltd responsible for setting the Company Barclays UKRF ICC Limited 0.00 U strategy and budgets. Barclays UKRF No.2 IC Ltd 0.00 U Luxembourg The last financial year of the above JV 9, allee Scheffer, L-2520 ended on 6 October 2022. BNRI Limehouse No.1 S.à r.l. 96.30 P Preferred Funding S.à r.l. 100.00 W Preferred Investments S.à r.l. 100.00 H, W Malta RS2 Buildings, Fort Road, Mosta MST 1859 RS2 Software PLC 18.25 U Netherlands Alexanderstraat 18, The Hague, 2514 JM, Zuid-Holland Tulip Oil Holding BV 34.90 I 23.20 K U Sweden c/o ForeningsSparbanken AB 105 34 Stockholm EnterCard Group AB 100 I United States Corporation Services Company, 251 Little Falls, Drive Wilmington, DE 19808 DG Solar Lessee, LLC 75.00 C, U Corporation Trust Company, Corporation Trust Centre, 1209 Orange Street, Wilmington DE 19801 DG Solar Lessee II, LLC 75.00 C, U VS BC Solar Lessee I LLC 50 C, U 1415 Louisiana Street, Suite 1600, TX 77002-0000 Sabine Oil & Gas Holdings, Inc. 22.12 U

Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 523 report information sustainability report Governance review review statements Annual Report 2022 Notes to the financial statements (continued) Other disclosure matters Notes Forward-looking statements The terms Barclays or Group refer to Barclays PLC together with This document contains certain forward-looking statements its subsidiaries. Unless otherwise stated, the income statement within the meaning of Section 21E of the US Securities analysis compares the year ended 31 December 2022 to the Exchange Act of 1934, as amended, and Section 27A of the US corresponding twelve months of 2021 and balance sheet Securities Act of 1933, as amended, with respect to the Group. analysis as at 31 December 2022 with comparatives relating to Barclays cautions readers that no forward-looking statement is 31 December 2021.The historical financial information used for a guarantee of future performance and that actual results or the purposes of such analysis has been restated..The other financial condition or performance measures could differ abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of materially from those contained in the forward-looking millions of Pounds Sterling respectively; the abbreviations ‘$m’ statements. Forward-looking statements can be identified by and ‘$bn’ represent millions and thousands of millions of US the fact that they do not relate only to historical or current facts. Dollars respectively; and the abbreviations ‘€m’ and ‘€bn’ Forward-looking statements sometimes use words such as represent millions and thousands of millions of Euros ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, respectively. ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Forward-looking There are a number of key judgement areas, for example statements can be made in writing but also may be made impairment calculations, which are based on models and which verbally by directors, officers and employees of the Group are subject to ongoing adjustment and modifications. Reported (including during management presentations) in connection with numbers reflect best estimates and judgements at the given this document. Examples of forward-looking statements point in time. include, among others, statements or guidance regarding or Relevant terms that are used in this document but are not relating to the Group’s future financial position, income levels, defined under applicable regulatory guidance or International costs, assets and liabilities, impairment charges, provisions, Financial Reporting Standards (IFRS) are explained in the results capital, leverage and other regulatory ratios, capital distributions glossary that can be accessed at home.barclays/ investor- (including dividend policy and share buybacks), return on tangible relations/reports-and-events/latest-financial-results. equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets The information in this document, which was approved by the (including environmental, social and governance (ESG) Board of Directors on 14 February 2023, does not comprise commitments and targets), business strategy, plans and statutory accounts within the meaning of Section 434 of the objectives for future operations and other statements that are Companies Act 2006. Statutory accounts for the year ended 31 not historical or current facts. By their nature, forward-looking December 2022, which contain an unmodified audit report statements involve risk and uncertainty because they relate to under Section 495 of the Companies Act 2006 (which does not future events and circumstances. Forward-looking statements make any statements under Section 498 of the Companies Act speak only as at the date on which they are made. Forward- 2006), will be delivered to the Registrar of Companies in looking statements may be affected by a number of factors, accordance with Section 441 of the Companies Act 2006. including, without limitation: changes in legislation, regulation These results will be filed on a Form 20-F with the US Securities and the interpretation thereof, changes in IFRS and other and Exchange Commission (SEC) as soon as practicable accounting standards, including practices with regard to the following their publication. Once filed with the SEC, a copy of the interpretation and application thereof and emerging and Form 20-F will be available from the Barclays Investor Relations developing ESG reporting standards; the outcome of current website at home.barclays/annualreport and from the SEC’s and future legal proceedings and regulatory investigations; the website at www.sec.gov. policies and actions of governmental and regulatory authorities; the Group’s ability along with governments and other Barclays is a frequent issuer in the debt capital markets and stakeholders to measure, manage and mitigate the impacts of regularly meets with investors via formal road-shows and other climate change effectively; environmental, social and ad hoc meetings. Consistent with its usual practice, Barclays geopolitical risks and incidents and similar events beyond the expects that from time to time over the coming quarter it will Group’s control; the impact of competition; capital, leverage and meet with investors globally to discuss these results and other other regulatory rules applicable to past, current and future matters relating to the Group. periods; UK, US, Eurozone and global macroeconomic and Non-IFRS performance measures business conditions, including inflation; volatility in credit and Barclays’ management believes that the non-IFRS performance capital markets; market related risks such as changes in interest measures included in this document provide valuable rates and foreign exchange rates; higher or lower asset information to the readers of the financial statements as they valuations; changes in credit ratings of any entity within the enable the reader to identify a more consistent basis for Group or any securities issued by it; changes in counterparty risk; comparing the businesses’ performance between financial changes in consumer behaviour; the direct and indirect periods and provide more detail concerning the elements of consequences of the conflict in Ukraine on European and global performance which the managers of these businesses are most macroeconomic conditions, political stability and financial directly able to influence or are relevant for an assessment of markets; direct and indirect impacts of the coronavirus the Group. They also reflect an important aspect of the way in (COVID-19) pandemic; instability as a result of the UK’s exit from which operating targets are defined and performance is the European Union (EU), the effects of the EU-UK Trade and monitored by Barclays’ management. However, any non-IFRS Cooperation Agreement and any disruption that may performance measures in this document are not a substitute for subsequently result in the UK and globally; the risk of cyber- IFRS measures and readers should consider the IFRS measures attacks, information or security breaches or technology failures as well. Refer to pages 392 to 396 for further information and on the Group’s reputation, business or operations; the Group’s calculations of non-IFRS performance measures included ability to access funding; and the success of acquisitions, throughout this document, and the most directly comparable disposals and other strategic transactions. A number of these IFRS measures. factors are beyond the Group’s control. As a result, the Group’s actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group’s forward-looking statements. Additional risks and factors which may impact the Group’s future financial condition and performance are identified in the description of material existing and emerging risks on pages 269 to 281 of this Annual Report. Subject to Barclays PLC’s obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US) in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This document is printed on Revive 100 Offset, made from 100% FSC® Recycled certified fibre sourced from de-inked post-consumer waste. The printer and the manufacturing mill are both credited with ISO 14001 Environmental Management Systems Standard and both are FSC® certified. The mill also holds EMAS, the EU Eco-label. Revive 100 Offset is a Carbon balanced paper which means that the carbon emissions associated with its manufacture have been measured and offset using the World Land Trust’s Carbon Balanced scheme.

Our 2022 suite of Reports Barclays PLC Annual Report 2022 Barclays PLC Pillar 3 Report 2022 Barclays PLC Country Snapshot 2022 A detailed review of Barclays’ 2022 A summary of our risk profile, its interaction An overview of our global tax contribution performance with disclosures that provide with the Group’s risk appetite, and risk as well as our approach to tax, including useful insight and go beyond reporting management. our UK tax strategy, together with our requirements. The 2022 report integrates country-by-country data. Barclays PLC Fair Pay Report 2022 our ESG (Environmental, Social and An overview of our approach to pay, including Governance), and DEI (Diversity, Equity and the principles and policies of our Fair Pay Inclusion) reporting, and incorporates our agenda. Task Force on Climate-related Financial Disclosures (TCFD) recommendations in this, the sixth year of disclosure. © Barclays PLC 2023 Registered office: 1 Churchill Place, London E14 5HP Registered in England. Registered No: 48839