ESG ratings and benchmarks
Across a set of key ESG ratings, our performance improved or remained stable for most ratings year-on-year, with methodology changes the primary drivers of scoring rather than 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 disclosures are a significant driver of ESG ratings performance, we would expect this to continue to support our ratings and benchmarks 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 EG scoring models used by the various agencies.
There is currently some inconsistency in terms of what best practice looks like and how it is measured across different ratings agencies. This is reflected in the variance in methodologies, and therefore in the variance in Barclays’ ESG rating across the different providers. There is limited consistency in the underlying data used both within and across sectors. While this remains an unregulated area, we believe that it is important that these agencies, working with companies, investors and other market participants, continue to enhance consistency and transparency to support increasingly robust ESG data and ratings in the future.
We recognise that markets and stakeholders need clear, relevant and consistent information and we will continue to focus on enhancing our disclosures. This year, we have launched a new online ESG Data Hub on our ESG Resource Hub website, providing access to key ESG related metrics in a single place.