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.