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.