Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 115 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 long-term investor, we believe material ESG Sustainable Investing Solutions To further support clients in making their homes Private issues can impact portfolio returns and are more energy efficient, we have a plan of Launched in 2018, our Sustainable Investment Bank relevant considerations in managing risk education and guidance for clients and we intend strategies seek to invest in businesses that effectively and delivering successful investing to launch our Private Bank ‘Sustainability Hub’, provide products and services to support the Responsible Investing outcomes for our clients. Understanding how which will provide clients with information on transition to a more sustainable economy. In our Private Bank, Responsible Investing means businesses are, for example, impacting the financial products and services we offer that may These strategies exclude certain companies that integrating material ESG considerations (among environment, engaging with employees and key support them to refurbish their home in ways generate revenues over our internally defined others) into our investment decisions and stakeholders and practising good governance that may improve their home's energy efficiency. thresholds from adult entertainment, alcohol, fulfilling our stewardship responsibilities through helps us understand how well these businesses armaments, gambling, fossil fuels tobacco and This information is available to all clients and engagement and voting. We regard Responsible are positioned now and for the future. controversial weapons. throughout 2023 we will produce an Insights Investing as an integral element in meeting our Engagement and voting . series to provide further education specific to We also identify businesses that we believe are fiduciary duties towards our clients. the types of properties in our portfolio. We are We undertake engagement and voting in able to mitigate ESG risks from an investment Our Discretionary Portfolio Management (DPM) building relationships with partners in the wider partnership with our stewardship services perspective and also demonstrate high services are offered across the Private Bankand b real estate domain, such as freeholders, brokers, provider, EOS at Federated Hermes (EOS) . standards of non-financial ESG quality (e.g. high sit at the core of the Private Bank's long-term and estate agents, to ensure a joint approach to We view engagement and voting as an important quality environmental standards or safe working strategy. Our DPM Traditional strategies include reducing carbon emissions on properties. mechanism through which to hold management environment). These businesses must also the Global Multi-Asset Class Strategy, Equity to account and act as a lever to promote change address sustainability considerations through strategies and Fixed Income strategies. Our DPM in investee companies on material ESG issues their economic activities, by aligning to at least Notes: Sustainable strategies are the Multi-Asset Class a The exception is India where we offer strategies developed for the where appropriate. We believe companies that one of the United Nations' Sustainable Sustainable Total Return Strategy and the local market. ESG integration and engagement and voting are not can better manage material ESG issues could be Development Goals (UN SDGs). undertaken. Sustainable Global Equity Strategy. b Engagement (on select material ESG issues) and voting activities are less prone to severe incidents, such as fraud, Responsible Lending being exercised in relation to all of our Private Bank DPM investment While we incorporate the same approach in each litigation or reputational risks. strategies globally with the exception of services provided in India. We are expanding our credit offering with Green of our discretionary strategies and in all Engagement activity is undertaken for our fixed income and equity a In 2022, across our UK and Jersey DPM Private Bank Mortgages, launching in 2023. We holdings, while voting activity is only undertaken for our equity jurisdictions in which we operate, we may have holdings. Please note, engagement and voting activities have been services, we voted at 125 shareholder intend to offer a discounted arrangement fee for portfolios with specific requirements where we undertaken for portfolios managed in Ireland, Switzerland and Monaco meetings, supporting management on 88% of UK-based new-build properties with an EPC since Q4 2022 and relevant reports for these regions are expected to need to vary our approach to our core strategies. be publicly available commencing Q1 2023. It is our intention to the resolutions we voted on. This, alongside rating of A-B to incentivise clients to seek out exercise voting in all markets, although at times our ability to do so For our Traditional strategies, we maintain a our engagement practices, reflects our energy efficient properties and to encourage may be hindered by regulatory and practical considerations as well as standard set of exclusions that do not allow us to internal restrictions. approach of promoting constructive dialogue home builders to achieve maximum energy invest in businesses we view as being involved in with our investee companies by building long- efficiency from their projects. Clients will also be the manufacture of controversial weapons and term relationships to seek to influence ESG supported in improving the energy efficiency of we consider material ESG risks as part of the and other practices. their existing properties, primarily through standard investment process. For our retrofitting their homes. Our engagement and voting activities are publicly Sustainable strategies, more detail can be found available to all stakeholders on the Barclays We are enhancing our lending policy in order to in the Sustainable Investing Solutions section Private Bank website. We believe that such support clients who wish to make their homes below. transparency is an integral part of good more energy efficient and will work with All our DPM strategies seek to deliver governance. industry experts to understand how best to competitive investment returns for our clients do this with the properties in our portfolio. Further details on our responsible investing can be found at: and create long-term value for stakeholders. We + privatebank.barclays.com/what-we-offer/investments/ For example, listed buildings are subject to strict believe that Responsible Investing helps us responsible-investing-engagement-and-voting-activities planning regulations and therefore require a achieve this. bespoke approach.