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.