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 was rated BBB by MSCI ESG Ratings (2018:’BBB’).
We scored 66 points in Sustainalytics ESG Ratings (2018: 60 points) and 31.7 points in the Sustainalytics risk rating (2018: 31.2). The change in Sustainalytics ESG Risk Ratings was driven by the application of standard industry average scores for additional ESG factors, and does not currently reflect Barclays’ actual performance on those issues.
We saw an increase in our RobecoSAM percentile score to the 77th percentile, up from 72nd in 2018. We saw a decrease in our actual score to 70, from 75 in 2018, against a sector average of 46 points.
Our FTSE4Good ESG Rating increased to 4.8/5 (2018: 4.3/5) with an 97th percentile ranking against the global banks sector.
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 A- in the 2019 Carbon Disclosure Project (CDP) Climate Change questionnaire (2018: A-). Barclays has been recognised by CDP as a Supplier Engagement Leader in 2019, by being in the top 3% of companies engaging suppliers on climate change.