ESG ratings and benchmarks
Barclays’ strategy and performance on ESG factors is evaluated by a range of external agencies. Clear and credible ESG information is critically important to enable effective investment decision-making, support company and investor engagement and underpin the growing range of products based on ESG factors.
Across a set of key ESG ratings, our performance was broadly stable year-on-year with methodology changes the primary drivers of scoring instead of underlying changes in approach or performance.
We continue to enhance disclosures on ESG factors and provide detailed information on our positions and policy statements. As a significant driver of ESG ratings performance is underpinned by disclosure, we would expect this to support our scores over time. We are further engaging with our stakeholders, including ratings agencies, investors and expert bodies, to improve transparency and enhance understanding of different assessment frameworks and ESG scoring models used by the various agencies.
Barclays’ MSCI ESG Rating increased to ‘A’ in 2020 (2019:’BBB’).
Barclays scored 23.9 in the Sustainalytics ESG Risk Rating (2019: 31.6). This improved lower score represents a lowered risk rating overall. In the banking industry, Barclays ranks in the 21st percentile (1st = lowest risk).
We saw an increase in our percentile score to the 88th percentile for banks, up from 77th in 2020. We also saw an increase in our actual score to 77, from 70 in 2020.
Our FTSE Russell ESG Rating for 2020 is 4.7/5 (2019: 4.8/5).
The Institutional Shareholder Services’ (ISS) assigns environmental and social quality scores for corporate disclosures. On a 1-10 scale where 1 is highest, Barclays was rated as ‘1’ for both social and environmental reporting.
Barclays was rated as B in the 2020 CDP Climate Change questionnaire (2019: A-) using the new Financial Services specific methodology.