Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 08 report information sustainability report Governance review review statements Annual Report 2022 Chief Executive’s introduction (continued) The second growth priority is to produce This scale of early investment has helped to Alongside global capital markets, support from This year, we have expanded the programme in sustainable growth in the CIB. We have stimulate innovation in climate technology from governments and regulators is critical to setting partnership with charities like the Trussell Trust continued to diversify our income in the CIB, residential property retrofit to energy storage the right frameworks to guide action and support to help communities most in need. In the face of growing our financing business in Markets to and hydrogen technologies. This next phase of investment decisions. This theme of a sharply rising cost of living, we also launched a balance the intermediary business. For example, Sustainable Impact Capital investments we governments and the capital markets working Money Worries hub in September, to help UK our investment in Financing has continued and expect will see a focus on decarbonisation together to solve large and complex issues is one customers evaluate and manage the impact of income has grown by c.16% CAGR from technologies within carbon-intensive sectors, to which I will return later in this letter. rising inflation and interest rates on their 2019-2022. This diversification allows us to particularly where Barclays has meaningful client personal finances. In particular cases where we Supporting customers and clients generate income even in periods of relatively low exposure such as energy and power, real estate identify customers entering financial distress we Barclays’ financial performance and our progress market volatility, creating more predictable and transport. have offered tailored help to support them. against our strategic priorities is inextricably revenues. We are focused on being the In respect of financing the transition, Barclays Skills and information are one way we can build linked to the global economy and the financial corporate banking partner of choice for clients has passed its 2018 target to deliver £150bn of financial resilience. In September we launched wellbeing of our customers and clients. across our CIB core markets and delivered Social, Environmental and Sustainability-linked another, the Rainy Day Saver, a new instant- increased transaction banking revenue in 2022. financing by 2025 and is on track to meet its Barclays has long sought to build the access account with an interest rate of 5% on We have continued to invest in people and target to deliver £100bn of Green Finance well employability skills and improve the financial balances up to £5,000. The product is designed ahead of the 2030 target date. As a result of a technology. We have broadened our trading health of our communities by providing people specifically to help customers build savings strategic review of our capabilities, market teams, and our capability in Investment Banking with the information and tools more confidently equivalent to three months of outgoings for an demand and new growth opportunities, we coverage and advisory, and in November we to manage their money. Our LifeSkills average household, providing a cushion should announced a new target to facilitate $1trn of opened new state-of-the-art trading floors in programme has been the nucleus of this effort they need it. Sustainable and Transition Financing between our London headquarters. for almost a decade, reaching 18 million people. 2023 and the end of 2030. A major effect of rising rates is the increased Our third priority is to continue to support our cost of mortgage interest. With approximately a clients and capture opportunities as the world quarter of customers approaching the end of transitions to a low-carbon economy. We are their fixed-rate terms each year, we increased building capability and reputation with clients in the window for renewing from 90 days to 180 this area. We continued to invest in senior talent days prior to the fixed rate ending, enabling to help build expertise in sustainable finance, so customers to lock in a new fixed rate, should they that we are better able to support our clients as We continued to invest in senior so wish, in anticipation of further rate rises. they transition their businesses to a low-carbon Small and Medium Enterprises (SME) customers economy. An example of our growing strength are also facing pressure from rising wages and talent to help build expertise in was acting as the sole M&A advisor to ConEdison input costs without being able to pass them in the $6.8bn sale of its clean energy business. onward. We held 450 'Masterclasses' for these sustainable finance, so that we are We have made good progress in two priority customers, helping them anticipate and manage areas to support the transition to a low-carbon pressures common to many small businesses. economy: investing in sustainable technology better able to support our clients This focus on supporting the needs of our retail start-ups, and facilitating sustainable finance. and SME customers is matched in our wholesale With the former, our early commitment of business, through which we support as they transition their businesses. Sustainable Impact Capital of up to £175m by governments and some of the largest financial 2025 generated substantial demand and in and industrial enterprises in the world by December 2022 we announced we would managing their financial risk and growth increase that to £500m by the end of 2027. ambitions. In volatile markets, through tremendous economic uncertainty, that ability to deliver for clients is critical.