Our climate dashboard
Our climate dashboard tracks our progress in reducing our financed emissions, measuring that progress against the goals of the Paris Agreement.
To determine the reduction of our financed emissions, we must first estimate the emissions that our clients produce. Next, we link those emissions to the financing provided. Finally, we aggregate those measurements into a portfolio-level metric, shown in blue in the charts below.
Our portfolio-level metric is then compared to an independently provided measurement, known as a ‘sectoral pathway’. This is the International Energy Agency’s Net-zero Emissions by 2050 (IEA NZE), shown in yellow in the charts below.
We have set 2030 reduction targets for four of the high-emitting sectors in our portfolio: Energy, Power, Cement and Steel. We plan to set targets for all material high-emitting sectors in our portfolio by 2024.
For Power, Cement and Steel, we are using a target range, rather than a ‘spot target’. This is because we recognise that there are additional dependencies and variables outside our control that will determine the pace of the transition and, therefore, how quickly financed emissions intensity can be reduced. For each target range:
- The lower emissions reduction ambition reflects an estimated emissions reduction trajectory based on Barclays’ view of sector and client pathways and commitments;
- The higher emissions reduction ambition is in line with the IEA NZE pathway that is consistent with limiting global warming to 1.5 degrees C. This pathway incorporates an assumption that public policy interventions, shifts in demand and new technologies will enable Barclays’ clients to accelerate their transition plans beyond current commitments or expectations.
Our climate dashboard will be updated in line with our annual reporting in the first quarter of each year, alongside the information we publish under the guidelines of the Taskforce on Climate-Related Financial Disclosures.
Our methodology and the data on which it draws are continuously improving; any changes to metrics as a result of methodology changes or new information that lead to materially different outcomes may result in metrics being restated. As company disclosures continue to improve, we are hopeful that this data will become sufficiently robust to play a much greater role in the calculation of BlueTrack™ metrics.
More information on our approach is available in our About BlueTrack whitepaper.