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