Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 119 report information sustainability report Governance review review statements Annual Report 2022 Implementing our Climate Strategy (continued) TCFD Strategy Recommendation (b) Barclays recognises the need for financial We are playing our part to translate the concept Our approach to nature Just transition and nature institutions to integrate social considerations of a just transition into tangible actions for the and biodiversity and biodiversity into their net zero plans and targets, and in their industry, by continuing our engagement with Banks have an important role to play in stewarding contributions to nature-positive goals. Financing a Just Transition Alliance (FJTA) and nature-positive finance and managing their We have continued to develop our work on other key initiatives: Just transition nature-related risks. just transition and nature and biodiversity, • as part of our engagement with the FJTA, we International policy frameworks provide broad which are intrinsically connected to efforts Nature and biodiversity is a growing ESG focus for actively participated in the development of the support to address just transition within climate to mitigate and adapt to climate change. Barclays and the wider industry, given that nature 'Making Transition Plans Just' report that strategies. The Just Transition Declaration, and its ecosystem services fundamentally begins to provide non-binding guidance to adopted at COP26, committed governments to underpin economies and societies. Nature and We aim to enhance our understanding of the financial institutions on how they can integrate ensure that workers, businesses and biodiversity are also important to the sector due interdependencies between climate action, the social dimension of climate action in their communities are supported as countries to their interlinkages with climate change. During nature and biodiversity and the social aspects of net zero transition plans transition. 2022, nature and biodiversity loss continued to be the transition to net zero. This is in line with the • Barclays is also a member of the CISL Banking recognised at a global scale. The Convention on increasing support of international policy At COP27, Barclays participated in a panel Environmental Initiative (BEI) and through this Biological Diversity (CBD) COP15 in December frameworks to address just transition as part of discussion with the International Chamber of initiative, Barclays has engaged with member saw the agreement of the new Global Biodiversity climate strategies, as well as the new Global Commerce regarding unleashing the full banks on practical steps that banks can take to Framework, which will be the framework for Biodiversity Framework, adopted at COP15, potential of sustainable finance, highlighting that support SME customers with a just transition national and international action. For companies which references the impacts of climate action a just transition is crucial for reaching net zero and financial institutions, the Taskforce on • we have worked closely with Ceres to develop and social dimensions related to nature. This also and financial institutions need to put it at the Nature-related Financial Disclosures (TNFD) an understanding of just transition in the US aligns with ongoing work in the development of heart of what they do. More broadly, efforts were released its third draft iteration of the framework context. the Taskforce on Nature-related Financial intensified during COP27 to ensure that Just for organisations to assess and disclose on Disclosures (TNFD) and initial guidance of the UK Transition was a prevalent theme throughout As part of our work on client transition plans, we nature-related risk and opportunity. Transition Plan Taskforce. conversations for governments, business and have launched a pilot assessment to evaluate finance, trade unions and civil society. Notably, a At Barclays we recognise the important role of the whether certain of our clients are considering There is clear evidence that climate change and breakthrough for climate justice was reached finance sector in stewarding responsible finance how to decarbonise in line with a just transition nature and biodiversity loss have significant with the 'loss and damage' fund providing towards a nature-positive future. We continue to for their stakeholders, considering the social risks interdependencies, where change in one area financial assistance for vulnerable countries work to build an understanding of the ways in and opportunities of the transition and ensuring can impact the other. We are reviewing ways in impacted by climate disasters. which our financing activities impact nature, as well effective dialogue with affected stakeholders. which these interlinkages could be addressed as the ways in which the bank and our clients together when considering the bank's While still at a relatively nascent stage, the Further details on the just transition within the Client + depend on nature. This includes engaging with Transition Framework can be found on page 97. environmental impacts, dependencies and strategic importance of the just transition is industry groups and our membership of the TNFD opportunities. One example of this is our rapidly becoming clearer, and first efforts are Forum. We also continue to review the ways in participation in the UNEP FI TNFD pilot, as part of being made by governments, businesses and which our financing activities can help to facilitate which we have tested a number of nature and financial institutions to deliver a transition to net a nature-positive future. climate scenarios on our European Agriculture zero underpinned by the principles of social and Food portfolio. justice. Barclays is working to build an approach We recognise interlinkages across environmental to a just transition cognisant of the important and social themes, in particular key crossovers Further details on the TNFD pilot + can be found on page 120. dynamic between climate actions and social with our approaches to climate change and justice, while being mindful of the potential human rights. Given these interdependencies, it is interconnectedness with biodiversity. important for banks to consider nature-related considerations alongside other ESG factors, such as climate change and social considerations. Further details on our approach to nature and biodiversity in + our own operations can be found on page 83.