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Making growth ‘green’, sustainable and inclusive

Making growth ‘green’, sustainable and inclusive

With a key focus on the impact of our financing, we are continuing to grow our product offering and social and environmental financing activity across the bank.

As a global financial institution, the way we prioritise and mobilise financial resources and the manner in which we do business ensures we can help to shape a cleaner, fairer future, which leaves no one behind.

Social and environmental financing

Our existing platform for green and sustainable finance also continues to grow as we work towards facilitating £150bn in social and environmental financing by 2025. As part of our climate change approach, we will also increase our commitment to green finance, with a new target to provide at least £100bn of Green Finance by 20301.

1 Target time frame 2018-2030. Eligible categories and basis of calculation in line with Barclays' Impact Eligibility Framework, including renewable energy, energy efficiency, low-carbon transport, sustainable food, agriculture and forestry.

Capital and financing
Green and sustainable capital markets

Green and Sustainable Capital Markets

In March 2019, our Banking business formalised and launched the Green and Sustainable Capital Markets team. The team originates, structures and executes green, social and sustainability debt capital market transactions as well as new products and issuance frameworks for our clients globally.

Working in collaboration with coverage, sector and product teams, the team works to identify tailor-made debt solutions for clients as they continue on their individual journeys to transition to a sustainable low carbon economy. In 2019, the team executed a wide range of green, social and sustainability transactions, such as a joint active book runner on Orsted’s

£900m of Green Bonds issuance, which will, in part, help to finance Hornsea 2 – which once complete in 2022 will be able to power over 1.3 million UK homes.

The Sustainable and Impact Banking group

The Sustainable and Impact Banking (SIB) group is advising two groups of corporate clients; emerging growth companies with an innovative technology or business model that is enabling the low-carbon economy; and large established companies that are transitioning their businesses to become more sustainable. The SIB group advises these companies on corporate strategy and capital raising. With respect to the emerging growth companies, the SIB group is initially focused on companies in four key sectors: Food and Agriculture, Clean Energy Technologies, Recycling and the Circular Economy and Water. Each sector contains a growing pipeline of companies that are helping to address climate change and lower carbon emissions. In addition to the positive environmental impact, the companies exhibit strong financial potential.

sustainable banking group
sustainable and thematic investing

Sustainable and Thematic Investing

As investors increasingly look to align investments with Environment, Social and Governance (ESG) considerations, the Investment Bank Research team aims to help clients navigate this new paradigm. Its ESG effort comprises three pillars:

Thematic: The Sustainable & Thematic Investing team within Barclays Equity Research focuses on identifying global thematic trends that could shape the business environment over the coming five to 10 years. Such trends include demographic change, emerging industries and technology, and evolving consumer behaviour.

Fundamental: Barclays’ Fundamental ESG Research is a cross-asset initiative aimed to provide clients with a multi-dimensional analysis of where companies sit on the spectrum of ESG performance and whether markets are incorporating ESG attributes in security pricing.

Systematic: The Barclays Quantitative Portfolio Strategy group within Research focuses on developing evidence-based empirical analysis of the market relationships between ESG ratings of issuers and the performance and valuation of their debt and equity securities.

The three pillars of Barclays ESG Research will feed into and inform each other to produce new and actionable ESG insights that enable investors and asset owners to assess the impact of regulatory and consumer change on markets and industries; the extent of adoption of ESG principles by companies under coverage; and how and to what extent adoption of ESG is influencing portfolio performance.

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Accessible retail products and services

We believe that banking should work for everyone and we have a pivotal role to play in society, building relationships where we understand our customers, clients’ aspirations and developing the products and services that meet their needs.

retail products
green bonds

Green bonds

Barclays remains wholly committed to the green bond market, both as an investor and as an issuer.

Green products

Barclays offers a range of Green products supporting a variety of eligible environmental activities aligned to our Green Product Framework.

Green products
Green

Backing the UK

When the societies where we operate succeed, Barclays succeeds. That is why, for over three centuries, we have risen to the challenges that our communities face, and played our part.

We are proud to be part of the fabric of the United Kingdom, where we help the 23 million customers and almost one million businesses, who put their trust in us, every day.

Sustainable innovation

For Barclays, sustainable innovation encompasses multiple mechanisms for fostering growth, including developing new commercial financial products and services which address environmental and social needs, exploring novel ways to support local businesses and encouraging the growth of FinTechs (financial technology) and disruptive technologies for the financial services sector.

  • We will continue to support Barclays’ Social Innovation Facility (SIF) to enable colleagues to develop new products and services that allow Barclays to generate both commercial and social value.
  • We will support innovative business models and help to mentor over 2501 high impact businesses solving social and environmental challenges through our Unreasonable Impact programme by 2022

Footnotes:
1 - Total number of participating ventures since launch (2016-2022)

Sustainable Innovation Facility

The Barclays Social Innovation Facility (SIF) is an internal mechanism which incubates colleague ideas for financial products and services that seek to specifically address environmental or social challenges.The SIF was launched in 2012 and continues to be one of Barclays’ most innovative mechanisms to advance socially and environmentally impactful products and services in a commercial way.

 

Eagle Labs

Unreasonable Impact is a global partnership between Barclays and Unreasonable Group. It supports growth-stage entrepreneurs whose ventures have the potential to employ thousands of people worldwide while solving some of the world’s most pressing social and environmental challenges.

Rise

RISE

Known as the #HomeofFinTech, Rise is a global community of the world’s top innovators working together with Barclays colleagues, partners and clients to create the future of financial services. Members of the programme across the world get access to a diverse programme of training, workshops and events, as well as opportunities to connect into our Barclays network of colleagues, clients, partners, investors and industry experts. At the end of 2019, we had over 175 technology companies resident at Rise, and a virtual community of over 1,000 members.

Social Innovation Facility

The Barclays Social Innovation Facility (SIF) is an internal mechanism that incubates ideas for financial products and services that seek to specifically address environmental or social challenges, and continues to be one of Barclays’ most innovative mechanisms to advance socially and environmentally impactful products and services in a commercial way.

SIF focuses on a number of issue areas that are relevant to the business, including but not limited to driving financial inclusion for our clients, supporting social businesses and producing climate finance solutions.

Our 2019 ESG Report

Barclays recognises that the focus on the societal impact of businesses and performance on wider Environmental, Social and Governance (ESG) factors has increased in recent years, with growing interest from a range of stakeholders including investors, clients, policy makers and regulators.