About our Financed Emissions Methodology
Our approach to tracking our financed emissions involves calculating an estimate of our full in-scope balance sheet financed emissions, based on a methodology developed using the Partnership for Carbon Accounting Financials (PCAF) Standard, and by setting targets for specific activities using our BlueTrack™ methodology.
Most of our emissions result from the activities of the customers and clients we finance, and those generated in their respective value chains – falling within the general definition of Scope 3 emissions. Our climate dashboards show our financed emissions targets over time – and our progress towards them – by comparing the BlueTrack™ metrics for individual sectors against a benchmark emissions level.
Since 2020, Barclays has been an active member of PCAF, an industry wide-initiative that aims to build consensus on approaches to carbon accounting, disclosure and portfolio alignment. In 2023, we calculated an estimate of our full in-scope balance sheet financed emissions as at December 2022. This has enabled us to calculate the coverage of our reduction targets across our portfolio – including integration 1.5°C aligned scenarios, with ranges for certain sectors – and to assess the extent to which the business is aligned to a well-below 2°C pathway. We will continue to evolve our approach over the coming years.
We continue to engage with peers to share our experience and many welcomed our level of transparency in relation to our methodology. We have also been pleased to hear that some have used BlueTrack™ to inform their own approach.