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