Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 255 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) ensure we are respecting human rights in Further details on Barclays Supplier Control Deforestation and agricultural + Obligations can be found at: home.barclays/who-we- our own operations through our commodities are/our-suppliers/our-requirements-of-external- employment policies, in our screening and suppliers/external-supplier-control-obligations/ Barclays recognises that deforestation is a engagement within our supply chain and The TPCoC makes specific reference to key driver of climate change and through the responsible provision of our the International Labour Orgnization (ILO) biodiversity loss and is frequently linked products and services. Core Conventions and the UK Modern with significant adverse human rights We have continued to progress our efforts Slavery Act 2015 and is owned by Barclays’ impacts. We are a signatory to the New to identify salient human rights risks Chief Procurement Officer. It outlines the York Declaration on Forests and its associated with our client financing behaviours we encourage in our supply objectives of ending deforestation by portfolio and on our plan to review our chain and seeks to align the practices of 2030. We seek to support clients that approach to managing these risks. our suppliers with our own policies. This promote sustainable land management includes on issues such as freely chosen We seek to proactively monitor issues and practices while respecting the rights of employment (work that is completed developments globally that may present workers and local communities. voluntarily and without slavery, servitude, new or elevated human rights risks and A major cause of deforestation is the forced or compulsory labour and human work to investigate our potential exposure production of agricultural commodities trafficking) and practices, the absence of to these and consider our responsibilities such as timber products, palm oil and soy, which could lead to exploitation in any to seek to mitigate these risks. for which we have established a position complex global supply chain, such as lack Our position statements and related due statement and due diligence approach of access to an independent diligence approach for clients operating in that applies to clients involved in these whistleblowing process and grievance certain sectors with elevated activities. Our approach is outlined in our mechanism. environmental and social impacts, seek to Forestry and Agricultural Commodities In 2022, we incorporated new contract include consideration of human rights Statement and includes specific clauses focusing on modern slavery into impacts. For example, we include specific requirements for clients in these sectors, our standard supplier terms and due diligence questions around respect for such as requiring that they: conditions, which will apply to new Indigenous Peoples’ rights, health and • prohibit the conversion or degradation contracts and contract renewals moving safety and provision of security in our due of primary forests, High Conservation forward. Specifically, these clauses diligence questionnaires for clients in Value (HCV) and High Carbon Stock prohibit suppliers from using forced, energy sub-sectors such as fracking and (HCS) areas and peatlands bonded or involuntary prison labour, oil sands which are covered under our human trafficking, child labour or modern Climate Change Statement. • adhere to recognised certification slavery practices, which include practices schemes, such as the Forest Modern slavery in our supply such as the retention of personal Stewardship Council (FSC), Roundtable chain identification or immigration on Sustainable Palm Oil (RSPO) or documentation and denying individuals the We recognise that the nature of our Round Table on Responsible Soy freedom to leave their employment. Our business means we may be exposed to Association (RTRS) contract negotiators are being supported modern slavery risks across our by a dedicated in-house expert advisor operations, supply chain, and customer • work to obtain the consent of during implementation of these new and client relationships. We are conscious indigenous and local communities terms. of the links between human rights abuse, affected by their operations through a labour exploitation, human trafficking and credible, 'free, prior and informed We continue to include modern slavery environmentally destructive practices. consent' process. and sustainability-related considerations Therefore, we are focusing our efforts on during the sourcing processes for key We have established a detailed due the delivery of actions specifically designed products or services in categories diligence questionnaire which we require to seek to identify and try to address identified as presenting with an elevated these clients to complete on an annual modern slavery and other exploitative inherent risk of modern slavery, such as basis to assess their alignment with the practices in our supply chain, in the renewal of our major IT services requirements of the Forestry and collaboration with our environmental contract, purchase of large IT hardware Agricultural Commodities Statement and experts. and printing solutions. other environmental and social criteria and Regardless of the industry or geography in We aim to work with the service providers seek to evaluate whether they are which our suppliers operate, we require of that make up 70% of our Addressable appropriately managing their material b them to comply with applicable laws and Spend to encourage them to have a environmental and social impacts. We regulations. Barclays' standard approach Modern Slavery policy or standard in place intend to update the Forestry and to new supplier onboarding and renewal by 2025. We continue to track our Agricultural Commodities Statement and begins by assessing the services that are progress in line with this target. client due diligence questionnaire in Q2 being provided and ascertaining the level 2023. Further details on our Forestry and Agricultural of risk. Suppliers that are assessed as + Commodities Statement and Barclays Group Human rights Statement on Modern Slavery can be found at: being at a heightened risk of exposure home.barclays/sustainability/esg-resource-hub/ from a business risk perspective are Barclays is committed to operating in reporting-and-disclosures/ subject to Barclays' Supplier Control accordance with the International Bill of Notes Obligations. Assessment of suppliers a We do have relationships with financial institutions and market Human Rights and takes account of other counterparties which, because of the nature of the services against these controls may include, but is internationally accepted human rights being provided (such as international account holding services), not limited to, reviewing copies of standards and frameworks, including the are not subject to our usual supplier on-boarding procedures and which are therefore not subject to the TPCoC. employment and health and safety policies UN Guiding Principles on Business and b Addressable Spend is defined as external costs incurred by and requesting suppliers to attest to Human Rights (UNGPs) and the OECD Barclays in the normal course of business where Barclays has supporting our expectations defined in the influence over where the spend is placed. It excludes costs Guidelines for Multinational Enterprises a such as regulatory fines or charges, exchange fees, taxation, Third Party Code of Conduct (TPCoC). (OECD Guidelines). We take steps to employee expenses or litigation costs.