Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 90 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 2 Cement Steel Future target progress For some sectors progress can occur in the short term while, for others, the technologies Last year we announced a 2030 target to reduce In 2022, we announced a 2030 target to reduce As previously noted in our disclosures, in the required to transition are not yet fully available the scope 1 and 2 gross emissions intensity of the intensity of financed emissions for our steel short term, we may experience significant meaning they are likely to transition at a later financed emissions for our cement portfolio by portfolio by 20% to 40% against a 2021 baseline. decreases or increases in our metrics, partly due point in time. 20% to 26% against a 2021 baseline. to the volatility of the mix and volume of capital In 2022 the intensity of this portfolio reduced by Ultimately our progress may prove challenging markets financing included in our metrics. During 2022, we reduced the intensity of this 11%. This progress was largely driven by and may be affected (positively or negatively) by portfolio by 2%. This reflects a net increase in decreases in some clients’ emission intensities Our future progress in achieving these targets is these external factors. dependent on many external factors including, financing to clients with an intensity below our as they built lower emission Electric Arc Furnace Our Client Transition Framework will support our for example, our clients’ pace of progress on portfolio average. capacity, rather than as the result of changes in evaluation of our corporate clients' current and their individual transition pathways, the public our financing. expected future progress as they transition to a policy and regulatory environment, technological Both our Steel and Cement portfolios are low-carbon business model. advancement, geopolitical or regional comprised of small populations of clients with a developments, energy security, cost of living and range of intensities, thus, changes in our just transition considerations. The transition to a financing activity even for a single client within a low-carbon economy will be reflective of the portfolio can have a significant impact on our specific pathways companies take. metrics and reported progress.