Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 100 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) | Strategic Pillar 3 As a growing area of sustainable finance, we have New $1trn Sustainable and Transition Sustainable Impact Capital Barclays' Sustainable seen issuers aligning their financing Financing target We firmly believe that innovation is key to tackling Finance Framework commitments to social use of proceeds bonds climate change and we are committed to In light of the progress made against our which allocate funds to categories such as Our sustainable financing is tracked using the supporting transformative change by investing previously announced targets and after a access to healthcare, affordable housing and methodology set out in the Barclays our own capital in entrepreneurial companies. In strategic review of the Group's capabilities, Sustainable Finance Framework, which defines essential services. We have also seen the use of 2020 Barclays announced that it would invest up market demand and growth opportunities, in the criteria we use for social financing, social KPIs within sustainability-linked financing to £175m equity capital into environmentally- environmental financing, green financing and December 2022 we announced a new target to such as targets linked to gender diversity. sustainability-linked financing for the purpose focused start-ups by 2025, helping to support facilitate $1trn of Sustainable and Transition Environmental financing of recording progress against our sustainable our clients' transition towards a low-carbon Financing between 2023 and the end of 2030. finance targets. Our environmental financing consists of labelled, economy. This encompasses the green, social, transition dedicated use of proceeds and general purpose Barclays is developing a similar Transition To date, we have invested £89m into 16 and broader sustainability-linked financing Finance Framework, that will determine the financing in environmental categories. In 2022, innovative start-ups, helping them to scale requirements of clients including corporates, Δ eligibility of transition transactions. we facilitated £18.0bn versus £22.6bn in 2021, solutions to environmental challenges and fill governments and consumers. This includes reflecting continued strong demand for Our Sustainable Finance Framework can be found online their growth-stage funding gaps. financing of climate and environmental solutions + environmental financing and our strategy to work within our ESG Resource Hub at: home.barclays/ including green mortgages, energy efficient sustainability/esg-resource-hub/reporting-and- These investments have supported many with our clients and customers to help facilitate disclosures/ technology and renewable energy, as well as aspects of climate-tech innovation, from their transitions towards a low-carbon economy. financing for broader social and sustainability property retrofit solutions to long-duration Sustainability-linked financing (including social) Facilitating £100bn of green financing work, including sustainability-linked structures energy storage and hydrogen technologies. Δ In addition to dedicated use of proceeds and areas such as affordable housing. We facilitated £25.5bn of green financing in Momentum has so far been in-line with transactions where financing is allocated to 2022 (down from £29.8bn in 2021, reflecting The inclusion of transition financing in this target expectations creating strategic opportunities specific eligible green, social or sustainable lower market activity), comprising: reflects our recognition of the importance of across the Group. The success of the activities, projects or assets, sustainability-linked supporting the decarbonisation of "hard to • labelled use of proceeds and general purpose investments to date meant that an increase in the bonds (SLBs) and sustainability-linked loans abate" sectors that are carbon intensive. financing in environmental categories investment mandate was required to allow Barclays (SLLs) are forward-looking, performance-based Δ (£18.0bn in 2022) and to continue existing efforts and support new Progress towards this target may vary from year debt instruments issued with specific KPIs and investments. As a consequence, in December to year. Changes in market conditions, policy, • sustainability-linked financing that sustainability performance targets. 2022 we announced that the investment laws, regulation and stakeholder expectations, incorporates environmental performance Our sustainability-linked financing totalled Δ mandate will increase to £500m by the end of including approaches to product labelling and targets (£7.5bn in 2022). Δ £11.4bn in 2022, up 5% from £10.8bn in 2021. 2027. regulatory scrutiny of green and sustainable The SLB market continues to be of significant Since 2018, we have facilitated a total of products could impact lending and capital We expect the next phase of investments will see an Δ importance to both investors and issuers alike £87.8bn across these categories. We are markets appetite. New climate and enhanced focus on decarbonisation technologies who use these instruments to embed their therefore on-track to meet our target of £100bn decarbonisation technologies may scale at that are enabling transition within carbon intensive sustainability targets into financing of green financing well ahead of the 2030 target varying rates, including being reliant on the supply sectors, particularly where Barclays has meaningful commitments. date. and demand of raw materials. We will continue to client exposure such as energy and power, real Breaking down our green financing by product review and adapt our approach to sustainable estate and transport. A particular focus will be on type, the largest category was debt issuance, financing in response to the evolving market carbon capture and hydrogen technologies. accounting for 61% (2021: 63%) of the total. opportunities. Loans and equity made up 33% (2021: 21%) and Notes: 4% (2021: 15%) respectively. Δ 2022 data subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Current and previous limited assurance scope and opinions can be found within the ESG Resource Hub for further details: home.barclays/sustainability/esg-resource-hub/reporting-and- disclosures/