Environmental Social Governance Supplement

Contents Notes Page The term Barclays or Group refers to Barclays PLC together with its subsidiaries. The abbreviations ‘£m’ and ‘£bn’ represent millions and Con thousands of millions of Pounds Sterling respectively; the abbreviations The strategic context for our t e ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars xt and Appr respectively; and the abbreviations ‘€m’ and ‘€bn’ represent millions and citizenship performance 02 thousands of millions of Euros respectively. Relevant terms that are used in this document but are not defined under o applicable regulatory guidance or International Financial Reporting Shared Growth Ambition 04 ach Standards (IFRS) are explained in the results glossary that can be accessed at home.barclays/results. Non-IFRS performance measures Global Reporting Initiative G4 table 17 Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of General Standard Disclosures 18 the financial statements as they enable the reader to identify a more consistent basis for comparing the business’ performance between Specific Standard Disclosures 30 financial periods, and provide more detail concerning the elements of Shar performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also Assurance Statement 49 ed Gr reflect an important aspect of the way in which operating targets are o defined and performance is monitored by Barclays’ management. wth Ambition However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer the Annual Report for further information, reconciliations and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures. Forward-looking statements This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no Gener forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could al S differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they tandar do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, d Disclosur ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Examples of forward-looking statements include, among others, statements or guidance regarding the Group’s future financial position, income growth, es assets, impairment charges, provisions, notable items, business strategy, structural reform, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Specific S Group Strategy Update, rundown of assets and businesses within Barclays Non-Core, sell down of the Group’s interest in Barclays Africa Group Limited, estimates of capital expenditures and plans and objectives for tandar future operations, projected employee numbers and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and d Disclosur circumstances. These may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting Standards, evolving practices with regard to the interpretation and application of accounting and regulatory standards, the es outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, future levels of notable items, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, KP leverage and other regulatory rules (including with regard to the future MG Assur structure of the Group) applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of continued volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of ance S changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of ta t any entities within the Group or any securities issued by such entities; the emen potential for one or more countries exiting the Eurozone; the implications of the results of the 23 June 2016 referendum in the United Kingdom and t the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; the implementation of the strategic cost programme; and the success of future acquisitions, Where can I find out more? disposals and other strategic transactions. A number of these influences and factors are beyond the Group’s control. As a result, the Group’s actual You can learn about Barclays’ future results, dividend payments, and capital and leverage ratios may strategy, our businesses and performance, differ materially from the plans, goals, expectations and guidance set forth in the Group’s forward-looking statements. Additional risks and factors approach to governance and risk online, which may impact the Group’s future financial condition and performance where latest and archived annual are identified in our filings with the SEC (including, without limitation, our and strategic reports are available annual report on form 20-F for the fiscal year ended 31 December 2016), which are available on the SEC’s website at www.sec.gov. Subject to our to view or download. obligations under the applicable laws and regulations of the United Kingdom and the United States in relation to disclosure and ongoing For further information and a fuller understanding of the results and the information, we undertake no obligation to update publicly or revise any forward looking statements, whether as a result of new information, state of affairs of the Group, please refer to the full 2016 Annual Report future events or otherwise. and Accounts at home.barclays/annualreport home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 01

The strategic context for our citizenship performance Purpose Strategic goal Stakeholder focus Con t e Barclays seeks to help people achieve Our goal is to become the bank of Our objective is to deliver long-term xt and Appr their ambitions - in the right way choice by providing superior services sustainable value for all our stakeholders and supporting our stakeholders, and assess progress using key o via a commercially successful financial performance metrics and ach business that generates long-term strategic non-financial measures. sustainable returns. Shar ed Gr o Performance Shared Growth Broader non-financial wth Ambition performance and disclosure using a commitments standardised framework See pages 04-16 See pages 17-48 Gener al S To better understand how we are doing, Shared Growth Ambition Global Reporting Initiative disclosures tandar we measure… d Disclosur es Introduction Environmental Social Governance Specific S This report forms part of the full Barclays 2016 Annual Report suite, (ESG) Supplement along with other documents including Barclays PLC and Barclays Bank tandar PLC Annual Reports and other regulatory filings. The suite can be found We recognise specific stakeholder interest in more detailed at barclays.com/annualreport. This report covers environmental, social technical information and have developed this ESG d Disclosur and governance (ESG) topics that were identified as material to Barclays Supplement (formerly the ‘Citizenship Data Supplement’) to provide and our stakeholders along with disclosures on Barclays’ new citizenship additional data and act as a guide to supporting information in the strategy – Shared Growth Ambition (SGA). Annual Report and other disclosures. The Supplement has been es Barclays continues to align and integrate our citizenship and ESG prepared in accordance with the Core option of the Global Reporting disclosures within our overall annual reporting framework. We are on a Initiative (GRI) G4 Guidelines as set out on page 17. journey towards further integration – both in terms of disclosures but Definitions and measurement methodologies for our key KP also, more fundamentally, in strategy and performance. performance metrics as well as broader reporting criteria are MG Assur In order to deliver long-term sustainable value, we consider that when published in a separate SGA 2016 Reporting Framework, available at customers and clients do well, so do we. When the communities we live home.barclays/citizenship/our-reporting and work in thrive, we do too. And when society prospers, we all do – it’s ance S not one, or the other. These simple concepts help us focus our Shared ta t Growth Ambition – our approach to citizenship and sustainability of the emen business model we operate. t Please refer to the 2016 Strategic Report for further information on how delivering social value is integrated into our business model, strategy and performance measurement framework. This is the primary integrated communication designed to meet the information needs of all our stakeholders. All Annual Report documents are available at home.barclays/annualreport home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 02

About this report Report navigation Con t e Focusing on specific topics that are important to our stakeholders and More information on all Environmental topics can be found primarily on xt and Appr strategically significant to our business performance allows us to pages 35-37, 41-43 and 46-47. address the right issues and provide disclosure on them. One of our More information on all Social topics can be found primarily within the major sustainability milestones in 2016 was the launch of the Shared o Growth Ambition, our new citizenship strategy. During its development GRI’s social indicator pages 38-48 and in the Annual Report. ach we engaged in extensive stakeholder consultation. The insights gained More information on all Governance topics can be found in the Annual from this exercise informed this year’s materiality assessment. Report, including the Corporate governance report, Risk review and on Every year we review our materiality matrix in order to align it with home.barclays/barclays-investor-relations. current trends and the changing context of the business, and reflect A range of case studies, research, policies and additional disclosures are feedback from ongoing stakeholder engagement. As a result of the 2016 available on home.barclays/citizenship. review, we made changes to the matrix and decreased the number of Shar topics from 23 to 18 primarily through grouping topics into broader ed Gr categories. o Please see pages 21-22 for a description of the materiality wth Ambition process. We have presented the results of the 2016 materiality process below and allocated each one of the material topics into an Environmental, Social or Governance category. Gener al S tandar d Disclosur Issues rFHighly significant ocus acr Financial performance es eleoss all cImportance t v an Conduct and compliance t acr Regulatory change oss geogror e stak Remuneration Specific S eholder gr aphies o stak Access to financial services and tandar oups eholders financial empowerment d Disclosur Climate change risks and opportunities Social and environmental financing Transparency es Customer satisfaction F ocus f Cybersecurity and data protection or one or tw Human capital development, incl. diversity and inclusion KP Digital access MG Assur Entrepreneurial support Human rights o k Supply chain management Employability ance S e y stak Direct environmental impact other than GHG emissions Taxation ta t eholder gr emen Significant t oups Importance to Barclays Significant Highly significant Relevant for specific business activities Group-wide significance Strategic relevance for long-term performance Key: Environmental Social Governance, incl. economic impact (refer to Annual Report and our website) home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 03

Shared Growth Ambition Con t e xt and Appr o ach Shar ed Gr o wth Ambition Gener al S tandar d Disclosur es Specific S tandar d Disclosur es KP MG Assur ance S ta t Growing Underground emen Growing Underground (GU) was part of the first cohort of the UK t Unreasonable Impact programme. It utilises the latest LED lighting and hydroponic growing systems to sustainably grow fresh herbs and salads year-round. Supplying local food services, retail, and farmers’ markets, GU reduces the need to import crops and minimises wasted energy from long-distance food transport. For more details about Unreasonable Impact, refer to page 14. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 04

Introduction and strategic context Con t e xt and Appr o ach Shar ed Gr o wth Ambition The Board Reputation Committee is I went into this industry as a young man out of 2016 was an important milestone in the responsible for overseeing our citizenship college because I was fascinated by the evolution of Barclays’ Citizenship journey, with agenda. This includes active engagement in profession of finance: how banks and bankers the launch of our Shared Growth Ambition developing and approving our strategy, can help people, businesses and countries which defines our objectives for the years regularly reviewing our performance against succeed. It mattered to me when I started my ahead. the objectives we have set, and signing off our career and it matters even more today. annual disclosure. In one way or another, finance when delivered Each and every person at Barclays has a role to Gener play in realising our ambition, and we are I am very proud of the work that Barclays does with transparency and integrity makes a working together with our network of clients, al S to improve the economic and social prospects fundamental difference to everyone’s lives. The partners and other stakeholders to collectively tandar of people in the communities we serve. This profession of finance is absolutely integral to achieve the commitments we have made. By report is an important reflection on that work. the successful running and growth of healthy continually focusing our efforts on the d Disclosur It is also a valuable tool which will help us economies, and in giving everyone access to a opportunities that align most closely with our continue to shape and improve our strategy more prosperous future. This is the core focus core strengths as a bank, we will be able to es over the coming years. of our Shared Growth Ambition. have the greatest and most sustainable Citizenship is an integral part of the ethos of I’m immensely proud of the work that is impact. this company, and the Board will continue to reflected in this report. The progress we have Citizenship matters to the future success of our work hard to ensure that we are focused on made in the first year of our Shared Growth business. But it’s not good enough to think, Specific S driving sustainable economic development and Ambition is a significant step towards building wish and hope. We have set out an ambitious social prosperity in the long term. a better Barclays and I’m looking forward to plan, and aspire to act with both integrity and seeing what more we can achieve in the years persistence to deliver against it. tandar to come. Strong progress has been made in 2016 across d Disclosur our businesses and geographical markets. We’re incredibly proud of the growing suite of Sir Gerry Grimstone innovative products, services and partnerships es Deputy Chairman, that Barclays has developed to deliver both Senior Independent Director, societal and commercial value in tandem. Chairman of the Board Reputation Committee We hope you will enjoy reading about our progress to date and our ambition for the KP coming years. MG Assur James E. Staley ance S Group Chief Executive ta t emen Diane Eshleman t Global Head of Citizenship and Reputation home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 05

Introduction to Shared Growth Barclays has always played a part in driving In arriving at our Shared Growth Ambition, we recognised that we Con should concentrate our efforts on those sectors of the economy t e economic growth and societal progress. where we could have the greatest impact, and which would align xt and Appr And today, we have a greater opportunity to with our core strengths as a financial services institution. Therefore, our Shared Growth Ambition is about making decisions and o play a pivotal role in fostering innovation and doing business that provides our clients, customers, colleagues, ach facilitating inclusive, shared growth for all – shareholders and the communities which we serve with access to a now and as we develop the future of banking. prosperous future. We will do this in three specific ways, by supporting: 1. A ccess to Financing – this helps to fund crucial social and environmental infrastructure while giving us opportunities in Shar growing markets. 2. A ccess to Financial and Digital Empowerment – this ensures ed Gr o customers and communities can benefit from financial and digital wth Ambition services, while helping us increase loyalty and engagement. 3. A ccess to Employment – this addresses a major global challenge, while also building long-term demand for banking services. Our long-term aim is to create and grow a collection of products, services and partnerships that improve the lives of people in the communities which we serve, whilst providing the commercial return our shareholders deserve. In order to deliver long-term sustainable value, we consider that when Gener customers and clients do well, so do we. When the communities we live and work in thrive, we do too. And when society prospers, we all do – it’s al S not one, or the other. tandar Please refer to the 2016 Strategic Report for further information on how d Disclosur Shared Growth and delivering social value is integrated into our business model, strategy and performance measurement framework. es Specific S tandar Metrics and targets Evaluating impact d Disclosur In line with our objective of building a simplified bank focused on We believe that a combination of new tools and the growth of es delivering long-term sustainable value for all our stakeholders, we are analytical technology will enable us to continue to get better, faster now evolving our approach to performance measurement to reflect and more comprehensive information on the change that our Shared better the way in which management monitors the performance of the Growth Ambition is delivering – for society and for Barclays. Impacts Group. The framework incorporates a balance of key financial can be challenging to understand and measure, particularly when we KP performance metrics, while broadening our approach to strategic try to assess portfolio-level outcomes instead of individual initiatives. MG Assur non-financial measures, and represents an evolution from the We are, however, committed to working with internal and external Balanced Scorecard that has been used since 2013. We retain a similar partners to develop new tools and methods to best capture and focus on achieving positive outcomes for our key stakeholders. contribute to the impact of our strategy. ance S However, rathen than focusing on a few narrowly defined targets to ta t measure our performance, the revised approach allows for a more Reporting emen holistic assessment, and provides a better reflection of our progress towards the strategic goals of the organisation. Please see the We continue to report against our goals using a range of quantitative t Strategic Report for further information. and qualitative indicators, tracking both the outputs and, where Following a review of ESG frameworks, we believe it is more beneficial possible, the outcomes of our activity. for all stakeholders if we focus on understanding and reporting the Assurance impacts and outcomes of our efforts, so we are moving away from setting public targets for our Shared Growth Ambition. KPMG LLP undertook a limited assurance engagement over We will continue to have performance targets for ‘The Way We Do selected performance information in this report and the Business’ including our commitment to reducing our carbon emissions presentation of the description of our materiality process. by 30% by 2018. Please see page 15. Refer to their statement on page 49. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 06

Access to financing New solutions to address global social and Barclays’ role Con t e environmental challenges are emerging Barclays is well-positioned to connect providers of capital with users. xt and Appr A range of business lines are actively involved in delivering solutions rapidly but need access to financing to that help solve some of the most pressing social and environmental challenges. This includes the capital markets and financing franchises o commercialise and scale. Institutional and in the Corporate and Investment Bank (CIB) and funding for ach individual investors are also increasingly entrepreneurs and small businesses in Barclays UK. taking account of sustainability factors and looking for opportunities to invest in a way Significant funding needs that generates both financial return and will require access to positive impact. capital markets… …and momentum is building Shar $90tn +60% ed Gr o in infrastructure investments increase in Sustainable and wth Ambition to keep within a 2º Celsius Responsible Investing assets temperature rise by 2030 between 2012 and 2014 $3.3–$4.5tn $1tn per year in additional investments a year of green bonds by 2020 to meet United Nations Sustainable needed towards achieving a Development Goals (SDGs) in 2 degree global warming target developing countries alone by the end of the century Gener al S $1.4tn 33% tandar investment funding gap for average annual growth in Green d Disclosur five US infrastructure sectors Bond issuance since 2011. Up from  2016–2025 $42bn in 2015 to $92.9bn in 2016 £ 21.1bn Sources: New Climate Economy, US SIF, UNCTAD, International Energy Agency, es American Society of Civil Engineers, Climate Bond Initiative GBP financing volume delivered in select social and environmental segments Specific S Housing Health tandar Financial Access Education Social Global d Disclosur Challenges Financing Development Finance Markets es Critical Infrastructure Environmental KP Adaption Infrastructure Challenges Water MG Assur Energy Waste Management Energy Efficiency Land Use Transport ance S ta t 2016 Progress Overview emen Focus areas Progress in 2016 2017 objectives t Deliver financing solutions ■■ Delivered £21.1bn of financing in select social and environmental ■■ Continue to deliver innovative segments financing solutions across ■■ Helped clients raise £1.5bn in Green Bonds and continued to grow business lines our Treasury Green Bond portfolio ■■ Launch additional Impact Series ■■ Developed High Growth Entrepreneur lending framework research ■■ Launched new Impact Series on key ESG topics ■■ Expand range of Impact ■■ Launched Impact Investing proposition Investing products and services ■■ Signed up to Principles for Responsible Investment ■■ Continue to grow Green Bond portfolio towards £2bn goal over time Note  Within KPMG’s limited assurance scope. Please see page 49. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 07

Access to financing 2016 Progress overview In the first year of our new Shared Growth Ambition, Barclays helped Con clients raise capital or provided lending facilities across a range of t e Barclays delivered social and environmental segments. xt and Appr £21.1bn financing for selected social and environmental This includes environmental and renewable energy projects; social infrastructure such as housing and education, financing to supranational o segments across our business lines. and global development organisations whose missions, through education, ach health, environment and infrastructure, are rooted in shared economic growth and social equality; and lending to Small and Medium-sized Spotlight Enterprises (SMEs) in the most economically deprived areas of the UK, Green Bonds, UK Corporate Lending portfolio and Debt Capital Markets to help them develop and grow, creating jobs and accelerating economic growth in their local communities. We will continue to execute on this commitment to drive new sources of Shar £1.5bn Green Bond issuance (Source: Bloomberg). sustainable growth, provide financing to key solutions and enable ed Gr Barclays to generate returns by acting as an intermediary in mobilising o £308m provided of new (and mandated) lending to Social significant flows of capital. wth Ambition Housing clients by Corporate. We estimate that this will facilitate the We recognise that private and public sector actors are continuing to development of around 3,000 new homes in 2017. identify innovative solutions and develop supportive policy frameworks to enable the transition to a more sustainable global economy. We aim £450m for UK social housing raised from Debt Capital to partner with our clients and other stakeholders to navigate these Markets in conjunction with the Investment Bank. We estimate this will trends and deploy both our intellectual capital and convening power. We facilitate the development of a further 4,500 homes. will continue to support global partnerships such as the United Nations Environment Programme Finance Initiative, Equator Principles and the Banking Environment Initiative Gener 500MW The Corporate Bank has supported the financing of In collaboration with Sustainalytics, a global provider of ESG and al S over 500MW of clean energy in the UK and Ireland in 2016, equivalent to corporate governance research, ratings and analytics, tandar powering c220,000 homes per annum. Projects include the first we have developed a use of proceeds framework to define the qualifying energy-from-waste plant to be supported under the Contract for social and environmental categories tracked as part of our financing d Disclosur Difference low carbon technology subsidy regime and a 344MW solar commitments. The framework is available at home.barclays/citizenship/ PV portfolio in the UK. our-reporting.html. es Case study: Harburnhead Wind Farm Specific S Harburnhead Wind Farm is a 51.7MW project in West Lothian, tandar Scotland. On completion, the 22-wind turbine Harburnhead site will generate enough electricity to power the equivalent of 31,000 d Disclosur homes, and is expected to contribute over £3m to the local economy. Barclays teamed up with the Bank of Tokyo Mitsubishi UFJ to provide es £70m term loan towards the development and construction of the wind farm. The project is one of the last projects remaining under the current Renewables Obligation subsidy regime. It is implemented through KP the joint venture vehicle, LDV Harburnhead Ltd, set up by Oxfordshire MG Assur based FIM Services Ltd, a leading independent renewable energy investment manager, and its partner and original developer of the ance S site, LDV Enel Viento. ta t Dr Wayne Cranstone, FIM’s Chief Operating Officer said, “We are emen delighted to have secured project finance through two experienced lenders such as Barclays and MUFG. It is great to be working with t both banks again and I look forward to seeing this exciting project enter the operational phase towards the end of the year”. Nial Gemmell, Director, Infrastructure and Project Finance at Barclays, said, “Harburnhead marks another significant step in developing the UK’s wind power capabilities. Working alongside FIM Services and LDV Enel Viento further demonstrates our continued commitment to the renewable energy sector where we have a strong track record in supporting quality projects.” home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 08

Access to financing Barclays has client relationships across a range of industry sectors and Case study: ESG research impact series Con we have processes in place to manage environmental and social t e considerations. We do not exclude entire sectors; to do so would be Barclays’ Research department launched the first report in its Impact xt and Appr impractical given that many of our larger corporate clients are Series focusing on the effect of Environmental, Social and multifaceted and can have dynamic portfolios of businesses which may Governance (ESG) investing on bond portfolio performance. Jeff Meli, change according to shifts in markets or business model. We prefer to o assess relationships or transactions on a case by case basis, identifying Co-head of Research and Lev Dynkin and Albert Desclee from the ach relevant merits and taking into account material social and environmental Quantitative Portfolio Strategy Team answer some questions about risks and issues. Please see page 46 for further information. the launch of the Impact Series and its first report. Q: How did this initiative start? Financing social infrastructure In October 2016, Barclays’ Social Innovation Facility (SIF) funded the Barclays offers financing solutions for a number of businesses and launch of an Impact Series through the Investment Bank’s Research governments that generate positive social outcomes, including department. This series is designed to explore the impact of Shar supranational agencies, municipalities, health care systems, universities, economic, demographic, and disruptive changes on markets, sectors, ed Gr social housing authorities, and other not-for-profit organisations, among and society at large. o others. In 2016, Barclays acted as bookrunner on over €21.2bn of Q: How is Barclays research approaching ESG themes: wth Ambition financings in 19 separate transactions for the European Investment what are your areas of focus? Bank, EIB. As the European Union bank, the EIB provides long-term Barclays’ Quantitative Portfolio Strategy (QPS) team is part of finance for sound, sustainable investment projects in support of EU Barclays’ Research department and focuses on the quantitative policy goals in Europe and beyond. aspects of portfolio management. As clients’ interest in ESG investing Green Bonds and environmental financing continues to grow, there is a need to better understand the effect of Green Bonds are fixed income securities designed to raise capital to ESG factors on the investment process. Although significant research finance environmental projects. The CIB has been active in issuing green has already been published on the performance implications of an bonds for a variety of clients including municipalities, corporations and ESG tilt in equity portfolios, much less has been published on this Gener topic in credit markets. The QPS research report addresses this void. supranational organisations. In 2016 we underwrote £1.5bn of green It has been released externally as the first publication in the Impact al S bonds (Source: Bloomberg). In addition to corporate issuance including Series, bringing its findings to an audience that is broader than tandar US and European utilities, Barclays also led Green Bond transactions for banks including a US$500m 3-year Green Covered Bond offering for Bank traditional institutional investor clients. d Disclosur of China London Branch. This transaction marks the first green notes Q: What are the key research themes and findings? issued by a Chinese entity that is secured by on-shore qualifying By constructing a US investment grade credit portfolio with a positive climate-aligned bonds that are traded on the China interbank bond ESG tilt designed to replicate the corresponding index, we found that es market. Use of proceeds will fund eligible green projects in renewable this portfolio modestly outperformed a corresponding portfolio with energy, pollution prevention and control, clean transportation, and a negative ESG tilt, as well as the index, over the period of the study. sustainable water management. We also managed a €500m 7-year There was no evidence to suggest that this outperformance resulted Sustainable Covered Bond transaction for Caja Rural de Navarra, a Spanish bank. This was Barclays’ first Sustainable/ESG Covered Bond transaction. in high ESG bonds becoming expensive compared to their peers. Specific S The proceeds will be allocated to existing or new loans financing projects Therefore – no reason to expect that it would be followed by underperformance. focused on creating a social impact in local communities and tandar environmental sustainability. In the United States, Barclays acted as a lead Of the three components of ESG scores, the G – governance score – bookrunner in a US$1.3bn offering, including 3- and 5-year Green Bonds is the main contributor to performance (followed by E and by S) and d Disclosur for Southern Power Company, a wholly-owned subsidiary of The Southern can often be taken as an indicator of management quality. Company which manages long-term contracted generation assets including renewable energy projects. The proceeds will be allocated to Our research finds that strong governance attributes are related to a es solar and wind power generation facilities. Also in 2016, Barclays executed lower frequency of credit downgrades. ESG scores are shown to have a €1.1bn Green Bond offering for Southern Power Company – the first contained information independent of credit ratings over the period Euro Green Bond issued by a US-based corporate. of the study. Please see pages 44-48 for further information on our social and Q: How have investors responded? KP environmental financing product portfolio. The QPS team fielded many questions on the ESG report from MG Assur investors around the globe, as well as through one-on-one discussions with client teams. Interest in this research remains strong with a ance S growing number of investors looking to align their portfolios with their values. In turn, this is forcing portfolio managers to implement ESG ta t factors in their credit portfolio management framework. emen We believe ESG investing is a long-term trend, not only because t investors want to align their investments with their values, but also because the ESG tilt may have positive risk and performance implications on a credit portfolio. At Barclays, we have seen an increase in the number of our asset manager clients starting to offer ESG funds. More broadly ESG attributes are increasingly being considered alongside other financial metrics to form investment decisions. Read the full study and see the infographic at investmentbank.barclays.com/our-insights/esg- sustainable-investing-and-bond-returns. html?icid=ESG_20217_Annualreport home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 09

Access to financial and digital empowerment Inclusive financial systems are key to Con t e achieving economic and societal progress. xt and Appr However, there are several barriers to access o including geographical challenges, lack of ach credit history, and cultural and physical factors such as disability, low financial literacy or an inability to access digital services. Shar ed Gr o wth Ambition Digital is a key enabler for improving financial inclusion and health 21% £8bn 1 in 5 45m 1.7bn Gener of the UK population of estimated cost to people of working age in people have no people globally own al S lack basic internet skills UK economy of bad England have a disability credit score and cannot mobile phones but tandar debt per year access mainstream don’t have access to credit in the US financial services d Disclosur Sources: BBC Digital Capabilities Update, StepChange, 2011 Census, Consumer Financial Protection Bureau (US), World Bank es Barclays’ role We are improving access to financial services, Specific S With technology moving at such a fast rate, we need to make sure our developing targeted products and services for customers and communities aren’t left behind. We’ve developed a host individuals and small businesses. We also tandar of learning tools to boost access to financial services and improve financial and digital literacy. provide digital and financial literacy tools to d Disclosur Our Digital Eagles network helps more people become empowered to help empower our customers. operate in the digital economy, reduce exclusion and enhance access to es a range of digital tools and services. KP 249,000 MG Assur individuals and small businesses with improved ance S access to financial and digital services ta t 2016 Progress overview emen t Focus areas Progress in 2016 2017 objectives Developing targeted products ■■ Continued to grow Barclaycard Initial Cards ■■ Enhance and advance the and services for individuals and ■■ Barclaycard Anywhere has continued to grow including the launch development of accessible small businesses of an improved bluetooth and contactless payment solution for products and services small businesses Improving accessibility and ■■ Launched Financial Wings ■■ Continue to develop and enhancing financial and digital ■■ Launched UK Money Worries Hub and access to free credit scores enhance learning platforms skills ■■ Continued to roll out Digital Wings platform ■■ Innovate to deliver functionality ■■ Continued to grow our Digital Eagles network to help our customers manage their finances ■■ Develop partnerships to enhance reach home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 10

Access to financial and digital empowerment We are innovating to reach under-banked and underserved Case study: Empowering customers Con individuals and small business customers with financial services by: t e Developing accessibility solutions for customers and SMEs. We build in Barclaycard in the UK and the US xt and Appr on accessible services such as Sign Video and high-visibility cards for customers with disabilities, and share advice and provide learning to help Credit Score and the Money Worries Hub are two initiatives o other businesses become more accessible. We also provide targeted developed to support and empower UK customers by giving them ach products, such as the Barclaycard Initial Card, to help enhance access to knowledge and resources to take control of their financial health. credit for those with limited credit histories and provide a way to build They show how Barclaycard colleagues use their internal knowledge, their credit health over time. skills and resources to provide holistic support for customers. Hosted Enhancing digital skills. In 2016, we used our Digital Eagles network to on the Barclaycard website, the hub is the first of its kind for a UK help people become empowered to operate in the digital economy, reduce card provider, leveraging real-life, financially challenging events to exclusion and enhance access to a range of digital tools and services. In provide tangible and relevant stories to help them understand how Shar addition, we have also provided digital skills training through our Digital Barclaycard can support them when they need it most. Within the ed Gr Wings online learning platform. online account management Credit Score provides customers with a o Improving access to financial literacy and financial health. We use detailed, free credit score helping to promote responsible credit wth Ambition improvements in technology and analytics to develop a range of tools to behaviour and educate customers about the importance of provide better and quicker information and money management maintaining their credit health. capabilities. We provide proactive and reactive support to customers in The free credit score service has been used by more than 650,000 financial difficulty, and develop new financial education resources with a customers and more than 100,000 have visited the stories and range of experts including apps and gamified learning platforms, such as information on the Money Worries Hub. Financial Wings, our online financial skills learning platform. Garry Hepherd, Relationship Manager at StepChange Debt Charity See pages 44-48 for further detail on our product portfolio and supports the work that Barclaycard is doing: “The Money Worries accessibility initiatives. Hub has been a great addition in helping people with debt worries. Gener We know that people can often have sleepless nights and if they can al S Further information on our programmes is available access help and advice online 24/7, confidentially and anonymously tandar at a time that suits them, it really helps them to face up to that debt at home.barclays/citizenship. problem and seek help as early as possible. d Disclosur In Barclaycard US, Jennifer Hitchens recently embarked on a mission to provide Barclaycard Ring card members with a clearer path to es credit health. Jennifer partnered with the credit experts at advanced analytics Case study: Financial Wings company FICO, the company behind the FICO® Score, the standard In April 2016, Barclays launched Financial Wings, our free online money measure of consumer credit risk in the United States. Working with Specific S Senior Scores Consultant, Roy Pfeifer, Jennifer co-ordinated a 12-day management tool. With content written in collaboration with experts ‘Ask FICO’ online event which connected members of the Barclaycard from the Money Advice Service, StepChange Debt Charity and National Ring Community directly with the credit experts at FICO. The event tandar Debtline, Financial Wings looks to give colleagues and customers the opened up long-term benefits for card members and consumers, knowledge, skills and confidence to plan financial goals and deal with while improving existing products and services. d Disclosur the financial impact of life’s ups and downs. The website employs FICO’s Roy Pfeifer, describes his initial reaction to Jennifer’s idea: gamification to help users engage with the information and users can test their knowledge and earn points in a series of games. “When Barclays approached us about doing the ‘Ask FICO’ es programme, we were really excited about the opportunity to help On launching Financial Wings, Clare Francis, Savings and Investing directly answer questions that Barclays customers are asking about Expert at Barclays said: “Every day we hear from customers who FICO scores. Like Barclays, we are trying to get credit education out want to understand how to make the most of their money but find into the marketplace and to help people better understand credit KP managing their finances a complex and daunting task. We are scoring and how credit scoring affects their lives.” MG Assur committed to supporting their achievement of financial fitness and believe that Financial Wings will help many to achieve this.” Talking about her experience of using Financial Wings, Rachael Murphy, ance S ta Community Banker said: “I made time last week to complete my t #financialwings and it has been really helpful to see some of the emen problems our customers might be facing from their point of view. Some t great tips for customers and staff on budgeting and where to go for help!” Talking about Financial Wings, Raymond Petit, Managing Director of Community Banking said: “Financial Wings was created to empower people and give them the confidence to make better financial decisions. With Financial Wings we want to remove any fear or confusion by providing essential information in manageable chunks.” home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 11

Access to employment Unemployment is one of the world’s biggest The global labour market is undergoing Con t e challenges. In the 21st century, new jobs are major structural changes with far-reaching xt and Appr increasingly coming from fast-growing small implications for future workforces. o businesses and entrepreneurs that have ach become the engine of job creation, but will require support to scale. Supply Demand Barclays’ role Shar Addressing unemployment improves social and economic prospects ed Gr and creates broader opportunities for growth and increased resilience – o investing in the future health of the communities where we do business. wth Ambition This, in turn, helps build long-term demand for, and access to, banking Upskill workers Create jobs services. Barclays is committed to helping people gain access to the Lack of qualified candidates Entrepreneurs and SMEs are vital skills they need to get into work and provide access to job applying to jobs due to lack significant engines of both job opportunities at high-growth companies by supporting entrepreneurs of the right vocational skills creation and economic growth to scale these businesses. to get a job, including digital, Upskill workers technology and life skills We provide access to skills training and pathways to employment Gener for those who lack the necessary opportunities. 40% of employers 66% of new job creation al S Create jobs globally report they are in developed economies will tandar We support high-growth businesses that demand skilled labour, experiencing difficulty filling jobs come from entrepreneurs providing access to job opportunities at these companies. due to lack of available talent We will support high-growth d Disclosur We will provide vocational businesses that demand training and pathways to skilled labour employment es Sources: Manpower, EY  1,717,600 Specific S tandar people up-skilled to help achieve their ambitions d Disclosur es 2016 Progress overview Focus areas Progress in 2016 2017 objectives KP MG Assur Up skill ■■ Launched a range of new LifeSkills content to help young people get the key ■■ Through LifeSkills we will continue to workers 21st century skills that we know businesses need now and in the future, including champion and drive quality employability problem solving, communication, creativity, proactivity, leadership and resilience. skills interventions in schools, colleges, ance S ■■ LifeSkills also set up its first Youth Advisory Council, to set a ‘youth’ perspective on universities and youth groups as well as ta t employability issues and help shape programme content going forward. supporting young people who access emen ■■ Launched new strategic partnerships to build employability skills including: content directly. – Connect with Work in the UK ■■ We will continue to develop innovative and t – Partnerships with Per Scholas, Robin Hood Foundation, Tech Impact, Good impactful employability programmes with a Shepherd in the US focused portfolio of organisations that – Partnerships with NASSCOM Foundation – Global Talent Track, International enable us to combine our resources with Association of Human Values, QUEST Alliance, Be Better Education and Teach the skills and energy of our people. for China in Asia Pacific Create jobs ■■ Launched Unreasonable Impact Accelerator in the UK in September and the US in ■■ Launch in Asia. November. ■■ Run 2nd entrepreneur cohorts for the UK and US. Note  Within KPMG’s limited assurance scope. Please see page 49. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 12

Access to employment Con t e xt and Appr o ach US UK Asia Pacific Shar In the US our programme is concentrated on In the UK our focus has been to address Across Asia Pacific, our Access to ed Gr vocational skills training in targeted sectors unemployment, improving individuals’ social Employment programme touches the lives o that exhibit high employer-demand, such as and economic prospects and creating broader of young people in multiple ways. wth Ambition coding, web development and cyber-security. opportunities for growth and increased resilience. Our focus is to partner with organisations ■■ In Hong Kong, our programme with who demonstrate innovation and impact, ■■ LifeSkills is Barclays flagship employability Changing Young Lives provides young working together to positively impact programme that brings together educators, people with the right skills to help them underserved communities. businesses, young people and parents to find employment. support young people in developing core ■■ Through our partnership with Japan ■■ Our new Per Scholas Technology Training employability skills. Since its launch in 2013 Association of Refugees, Syrian refugees Centre in Brooklyn and co-designed more than 3.6 million young people have cybersecurity curriculum has so far helped  will be provided language training and the Gener participated in LifeSkills (1.6 million in 2016). skills to help them find jobs and 449 New Yorkers to receive free technology 2016 was marked by the launch of some new mainstream them into Japanese society. al S training. We also work with The Robin innovative resources – Virtual Work Experience, tandar Hood foundation, so far helping over 1,700 Virtual Interview Practice. ■■ In India, our partnership with NASSCOM low-income New Yorkers either access the ■■ Connect with Work is a newly launched Foundation – GTT and International d Disclosur digital economy or receive web innovative employability programme, aimed Association of Human Values provides development training. at individuals with the aptitude and attitude young engineers and graduates with LifeSkills, helping them to find jobs in es ■■ Our recently launched Tech Impact to enter the workplace, but who face barriers leading organisations including Amazon, Opportunity Centre in Nevada has helped such as a lack of qualifications, experience or Infosys, HDFC Bank. Over 120,000 young over 56 students receive IT and customer confidence. The programme connects people were upskilled and approximately service training. individuals aged 16 or over with businesses that are recruiting but struggling to find 30,000 placed in 2016. Specific S ■■ As a Cornerstone partner of Acumen America we support their Workforce skilled and motivated individuals. Together ■■ In Singapore, our partnership with YMCA Development Portfolio, providing patient with a selection of charity partners, including will provide the right skills for ‘at risk’ tandar capital to early-stage companies that are the Prince’s Trust and Catch 22, we train young people to enable them find skilled delivering social impact through their people in the job-specific skills that employment while mainstreaming them d Disclosur business model. businesses are looking for and support them into society. into jobs or apprenticeships. es KP Case study: Focusing on the impact of LifeSkills MG Assur In 2016, The Work Foundation carried out the third independent evaluation of the LifeSkills programme and its impact on participants. ance S The research shows that of those young people surveyed who had ta t participated in LifeSkills, 53% said the programme had helped them to emen get a job, 83% feel more confident to succeed at work, 68% said they make more informed decisions about their future and 91% got better at t managing their finances. The report highlighted that LifeSkills is raising young people’s aspirations and helping them to feel more confident about their future. Academic reports highlight the fact that there are strong links between young people’s aspirations and future educational attainment and subsequent labour market success. The report was launched in November 2016 at a reception in Parliament hosted by Barclays CEO, Jes Staley, that brought together 38 MPs, Ministers, Peers and advisers; LifeSkills schools from right across the UK; with charity To find out more, please visit partners, Ambassadors and the LifeSkills Advisory and Youth Advisory barclayslifeskills.com Councils to showcase the scale and impact the programme has in the UK. Note Within KPMG’s limited assurance scope. Please see page 49. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 13

Access to employment Con t e xt and Appr o ach Shar ed Gr o wth Ambition Case study: Unreasonable Impact Gener al S We joined forces with Unreasonable Group, a leading platform for Destination New York tandar entrepreneurs solving global challenges with scalable models, to launch a The global programme moved to New York in November and the US new partnership called Unreasonable Impact. This is a multi-year, participants were a diverse mix, from Thread, a textile company that d Disclosur international network of Accelerators focused on scaling up entrepreneurial transforms trash into thread, to Accio Energy, a venture employing a solutions that will in turn help employ thousands worldwide. wind system that generates high-voltage energy without turbines. Each company participating in the Accelerators must be focused on The US programme saw the entrepreneurs receive mentorship and es solving a pressing societal and/or environmental challenge and have a advice from business experts and serial entrepreneurs, such as Hunter solution that can scale. The programme selects ventures that each Lovins, president of Natural Capital Solutions and Time Magazine Hero demonstrate potential to create at least 500 new jobs over the next of the planet for 2009, Tom Chi, co-founder of Google Glass and five years. Google’s self-driving car, and Steven Berkenfeld, Managing Director at Specific S Barclays, among others. A successful launch “Scale ups are fundamental in driving economic growth,” explained Joe tandar In October, we launched UK Accelerator with 10 businesses participating, each focused on finding solutions to a diverse range of global McGrath, CEO of Barclays Americas and Global Head of Capital Markets. d Disclosur challenges, including food production, remote healthcare support, “It’s an honour to partner with Unreasonable to create an accelerator deforestation and water scarcity. The selected entrepreneurs attended a program in the US to help alleviate unemployment and grow the green two week programme in Gloucestershire where they received focused economy. By supporting ventures that have scalable solutions to some es and bespoke support, and guidance from business experts, serial of the world’s greatest challenges with our resources and mentorship, entrepreneurs, key funders as well as experts from across Barclays. we will not only help to address significant societal and environmental issues, but we will also be creating the jobs of tomorrow.” A profound experience KP 26 Barclays specialists provided discussion on topics ranging from 2017 and beyond MG Assur Public Relations management, marketing advice through to looking Following New York, the programme will head to Singapore in 2017 after Intellectual Property rights. with companies selected to participate from across Asia Pacific. Successive programmes will then run in the UK, US and Asia over the ance S The Barclays specialists soaked in the energy and enthusiasm of the next three years, creating a global network centred around scaling ta entrepreneurs and were inspired by their innovation and desire to t address such impactful issues. Feedback received from the specialists impact entrepreneurs as job creators. emen was unanimously positive, with some citing they had a special and You can read more about the programme and entrepreneurs t profound experience. taking part by visiting unreasonableimpact.com. Nichola Sharpe, Director External Communications, Barclays UK attended as a specialist and said “It was great to see Barclays supporting such a worthwhile accelerator initiative and I was thankful for having the opportunity to lend my communications expertise to such an inspiring group of entrepreneurs and to meet wonderful individuals from the Unreasonable Group, a diverse range of inspiring mentors, plus a great collection of Barclays colleagues. I came away with positivity, confidence, inspiration and a great network of fascinating individuals and entrepreneurs I will definitely stay connected with.” home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 14

The way we do business Our ability to deliver Shared Growth for Prompt payment Con t e our stakeholders is underpinned by a strong Prompt payment is critical to the cash flow of every business, and xt and Appr especially to smaller businesses within the supply chain as cash flow commitment to the way we do business. issues are a major contributor to business failure. o This means using our skills, resources and commitment to drive and  ach deliver the best results for all our stakeholders; by seeking fair, ethical and open solutions to problems and by always striving to leave things 88% better than we found them. Fostering the right culture at Barclays is critical to our success and we continue to build a positive conduct and Percentage of suppliers paid on time values-based culture through initiatives aimed at strengthening the profession of banking. Please see the Annual Report for more (45 days, by value) Shar information. We also apply a wide range of policies and standards across ed Gr a range of social and environmental issues, with further detail available o in the General and Specific Standard Disclosures in the Global Reporting Barclays is a signatory to the Prompt Payment Code in the UK, wth Ambition Initiative sections of this report. We continue to apply performance promptpaymentcode.org.uk. We commit to paying our suppliers within targets for key metrics from our previous plan, including training on the clearly defined terms, and to ensuring there is a proper process for Barclays Way, our global code of conduct, carbon emissions and supplier dealing with any issues that may arise. In 2016, Barclays achieved 88% payment on time. payment on time, exceeding our public commitment of 85%. By paying our suppliers promptly, we live the Barclays Values and Behaviours. Global carbon emissions We are committed to supplier diversity and further development of our supply chain in line with best sustainability practice. Barclays is committed to managing our own carbon footprint home.barclays/citizenship/our-approach/policy-positions.html Gener and reducing our absolute carbon emissions. The Barclays Way al S Having exceeded our goal to reduce carbon emissions by 10% tandar by 2015 against a 2012 baseline (actual reduction was 37.3%), The Barclays Way was launched in 2013, replacing a number of we have set a new target to reduce carbon emissions by a further 30% existing codes of conduct with one unifying document. d Disclosur (against a 2015 baseline) by 2018. We plan to do this by investing in low carbon technology and improving the energy efficiency of our  operations. We also offset the emissions remaining through the es purchase of carbon credits. 99.6%  15 . 8 % The Barclays Way code Specific S (% employees attested) tandar  The Barclays Way, our Code of Conduct, outlines the Purpose and Values In 2016, we reduced our emissions by 15.8% keeping us on track to which govern our way of working across our business globally. It d Disclosur achieve our 30% carbon reduction by 2018. We exceeded our in-year constitutes a reference point covering all aspects of colleagues’ working target for carbon reduction through the implementation of our managed relationships, specifically (but not exclusively) with other Barclays energy efficiency programme aimed at improving the operational employees, customers and clients, governments and regulators, es efficiency of our property portfolio together with initiatives in our Data business partners, suppliers, competitors and the broader community. Centre estate such as server decommissioning and improving the efficiency of the building plant. We also saw a reduction in our business As at end 2016, 99.6% of our colleagues had attested to The Barclays Way. travel emissions through the implementation of stricter controls on The Barclays Way is available on our website and can be KP business travel and approval processes. downloaded from home.barclays/citizenship/our-approach/ MG Assur Global carbon emissions policy-positions.html (tonnes CO2 equivalent) ance S ta t 2016 406,242 emen 2015 482,609 t We offset all our carbon emissions by investing in projects, such as the 1 Wildlife Works’ Kasigau Corridor REDD+ Project. The project, which became the world’s first REDD+ project to be validated and verified under the Verified Carbon Standard (VCS) and the Climate, Community and Biodiversity Standard (CCB), protects over 500,000 acres of highly threatened Kenyan forest known as the Kasigau Corridor, securing the wildlife migration corridor between Tsavo East and Tsavo West National Notes Parks. 1 Reducing Emissions from Deforestation and Degradation (REDD) was originated by the United Nations to help stop the destruction of the world’s forests. “REDD+” goes beyond avoiding deforestation to include the roles of wildlife conservation, community development and job creation, and enhancement of forest carbon stocks among other benefits.  Within KPMG’s limited assurance scope. Please see page 49. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 15

Colleague engagement and external recognition Colleague engagement ESG ratings and benchmarks Con t e Our people are Barclays’ greatest ambassadors, Our performance is benchmarked by a xt and Appr contributing time, skills and expertise to create range of ESG analysts and rating agencies o a positive and sustainable societal impact. on an annual basis. A summary of 2016 ach performance is available below. In 2016 more than 43,000 colleagues participated in a range of causes, contributing over 212,000 hours, donating a total of almost £25m, including Barclays matched funding. Colleagues also have the opportunity to share their ideas for innovative Shar products or services that can deliver commercial returns for Barclays while addressing a social cause. Each year Barclays Social Innovation Facility ed Gr o (SIF) engages intrapreneurs across our business globally (see case study). Dow Jones Sustainability Index The Dow Jones Sustainability Index wth Ambition (DJSI) tracks the financial performance of the leading sustainability- driven companies worldwide. In 2016, we maintained our membership of both the DJSI World and DJSI Europe Indices. Our score increased to Social Innovation Facility 84% overall (industry average 61%), making this the highest score since Barclays’ inclusion in the Index. Barclays Social Innovation Facility (SIF) is committed to developing FTSE4Good The FTSE4Good Index Series is designed to objectively commercial solutions that directly address societal challenges. measure the performance of companies that meet globally recognised The SIF is a resource available to employees across Barclays business corporate responsibility standards. We have been a member of the Gener divisions and geographies, providing support, networks and funding FTSE4Good index since its inception in 2001. In 2016, our absolute score for products that benefit society. Purpose driven colleagues from the was 3.9/5 (up from 3.6 in 2015). al S UK, US and Asia are engaged through Hackathons, and Innovation MSCI ESG Ratings MSCI is a leading investor-focused ESG ratings tandar Labs. To date, the SIF has incubated more than 40 products within research provider. Barclays maintained a ‘BBB’ rating in 2016. d Disclosur Barclays core business which is driving an ongoing social impact. Sustainalytics ESG Ratings Sustainalytics is a leading provider of ESG “Fostering social innovation in the way we think, work and operate is a priority for Barclays. Through the Social Innovation Facility, B research and analysis, serving investors and financial institutions around es arclays is cultivating an intrapreneurial mind-set where colleagues the world. Barclays ESG score improved to 62 points in 2016, up from are encouraged to think and develop independent ideas in order 61 points in 2015. to bring new perspectives to our businesses and clients.” Barbara Byrne, Awards and recognition Specific S Vice Chair of Barclays Investment Bank ■■ Tower Hamlets Education Business Partnership 2016 ‘Partnership of Product innovations supported by Barclays Social Innovation Facility the Year' Award. tandar are created, and lead by intrapreneurs – our innovative purpose-driven ■■ Lender of the Year at the 2016 Education Investor Awards. Barclays d Disclosur colleagues. Barclays top performing talent are given the opportunity has won this in each of the seven years that the awards have run. to spend time at Rise (thinkrise.com) in India, the UK, and the US, ■■ Bank or Lender of the Year at the 2016 HealthInvestor Awards. innovating product solutions to the vast challenges outlined in the UN’s Barclays has won for the sixth time in eight years. es Sustainable Development Goals. Selected proposals are then incubated and launched within Barclays, providing meaningful leadership ■■ The Asset Triple A Regional Awards. ‘Best Corporate Green Bond’ - opportunities for the intrapreneurs who created them. Zhejiang Geely Holding Group Company US$400 million green bond. ■■ ‘Vulnerable Customer Support Initiative - Creator’ at the Collections KP and Customer Service Awards. MG Assur ■■ The Prince’s Trust Corporate Employee Award in the category ‘Services to Young People’. ance S ■■ Business Disability Forum’s annual Disability Smart Award for Products and Services - business to business category. ta t ■■ Voted 2nd runner up for the 'Best Integrated Report' in the 2016 emen Corporate Register Reporting Awards. t ■■ LifeSkills and Early Careers Team reaccredited with the ‘Inspiring Young Talent’ Award at the BiTC Responsible Business Awards. Recognition ■■ Barclays Social Innovation and Intrapreneur programmes were featured in the Harvard Business Review. ■■ The ‘Barclays Lens’ decision making tool featured within new Transparency International research on Incentivising Ethics – Managing incentives to encourage good and deter bad behaviour. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 16

Global Reporting Initiative G4 disclosures Page Barclays’ disclosures have been prepared Con General Standard Disclosures t e in accordance with the Core option of the 1. Strategy and analysis 19 xt and Appr Global Reporting Initiative (GRI) G4 Guidelines 2. Organisational profile 19 o and we have self-declared reporting against 3. Identified material aspects and boundaries 20 ach GRI criteria for relevant key performance 4. Stakeholder engagement 23 indicators. 5. Report profile 25 The GRI aims to drive sustainability reporting by all organisations 6. Governance 26 by producing a comprehensive Sustainability Reporting Framework 7. Ethics and integrity 29 Shar (the Framework).The GRI Sustainability Reporting Guidelines (the Guidelines) provide standard global principles and reporting criteria Specific Standard Disclosures* ed Gr o for stakeholders interested in management and disclosure of social, Economic 31 wth Ambition economic and environmental impacts and performance of organisations. The GRI launched its fourth generation Sustainability Reporting 1. Economic performance 31 Guidelines (G4) in 2013. This is Barclays’ third year reporting using 2. Indirect economic impacts 33 the G4 framework. A number of sector-specific indicators have been 3. Procurement practices 34 disclosed in accordance with the Financial Services Sector Disclosures document. Environmental 35 We have edited the GRI indicators description for the sake of clarity. Please refer to g4.globalreporting.org for full indicator descriptions. 1. Materials 35 Gener We will continue to refine our citizenship reporting against appropriate 2. Energy 35 al S frameworks over the coming years. We aim to align with the new GRI 3. Water 35 tandar Standards launched in 2016. 4. Emissions 36 d Disclosur 5. Effluents and waste 37 6. Products and services 37 es 7. Compliance 37 Social 38 Specific 1. Labour practices and decent work 38 S 2. Human rights 39 tandar 3. Society 40 d 4. Product responsibility 41 Disclosur * Including Financial Services Sector Disclosures es KP MG Assur ance S ta t emen t Within this document we report against the Global Reporting Initiative G4 Guidelines and Financial Services Sector Disclosures document. We have self-declared our reporting to be ‘in accordance’ with the Core option of the guidelines. Key Fully disclosed Partially disclosed Not disclosed home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 17

General standard disclosures Con t e xt and Appr o ach Shar ed Gr o wth Ambition Gener al S tandar d Disclosur es Specific S tandar d Disclosur es KP MG Assur ance S ta t Bitty Foods emen Bitty Foods was part of the first cohort of the US Unreasonable t Impact programme. Bitty Foods is a San Francisco-based company that makes delicious, healthy snacks with cricket flour. The name might be Bitty, but their mission is huge – to help alleviate stress on the global food system by popularising edible insects as a sustainable protein source that conserves natural resources and can feed billions of people. Bitty’s mission and products have received accolades in publications including the New York Times, Fast Company and Vogue, and Bitty was named one of Entrepreneur magazine’s 100 Brilliant Companies. For more details about Unreasonable Impact, refer to page 14. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 18

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Strategy and analysis Indicator requirement Status Con t e Indicator requirement Status G4-9 xt and Appr G4-1 Report the scale of the organisation. Provide a statement from the most senior decision-maker of the Disclosure organisation (such as CEO, chair or equivalent senior position) Barclays is a transatlantic consumer, corporate and investment bank o about the relevance of sustainability to the organisation and the offering products and services across personal, corporate and ach organisation’s strategy for addressing sustainability. investment banking, credit cards and wealth management, with a strong Disclosure presence in our two home markets of the UK and the US. With over 325 At Barclays, citizenship is one of the ways in which we live and embed years of history and expertise in banking, Barclays operates in over 40 our purposes and values. Please see the Chairman and Chief Executive countries. Barclays moves, lends, invests and protects money for introductions in the Barclays Strategic Report 2016. customers and clients worldwide. Shar Organisational profile Indicator requirement Status ed Gr o Indicator requirement Status G4-10 wth Ambition G4-3 Workforce Report the name of the organisation. Disclosure Please see the People section in the Annual Report 2016, Disclosure which provides detailed information on employee statistics and Barclays PLC workforce programmes. Further details can be found on our website at home.barclays/annualreport Indicator requirement Status G4-4 Indicator requirement Status Gener Report the primary brands, products and services. G4-11 Disclosure al S Our services are described in the Annual Report. Further details Report the percentage of total employees covered by collective tandar bargaining agreements. can be found on our website at home.barclays/annualreport Disclosure d Disclosur Employees covered by collective bargaining agreements in the UK (%): 78 Indicator requirement Status G4-5 Employee trade union members in the UK (%): 35 es Report the location of the organisation’s headquarters. Employees covered by collective bargaining agreements globally (%): 55 Disclosure Employee trade union members globally (%): 35 1 Churchill Place, London E14 5HP, United Kingdom (These figures are best estimates based on collective bargaining Specific coverage and numbers in grades covered by collective bargaining.) Indicator requirement Status S G4-6 Indicator requirement Status tandar d Report the number of countries where the organisation operates and names of countries where either the organisation has G4-12 Disclosur significant operations or that are specifically relevant to the Describe the organisation’s supply chain. sustainability topics covered in the report. Disclosure es With nearly 19,000 companies from more than 39 countries supplying Disclosure us across a broad range of products and services, our supply chain helps We operate in over 40 countries around the world. us deliver for all our customers, clients and colleagues. Our supply base home.barclays/about-barclays/around-the-world.html is diverse, including start-ups, small and medium-sized businesses, KP businesses owned, controlled and operated by underrepresented MG Assur Indicator requirement Status segments of society as well as multinational corporations. Many of our G4-7 direct suppliers have their own extensive supply chains, connecting us Report the nature of ownership and legal form. with thousands more businesses worldwide. Our supplier relationships ance S are managed based upon a risk segmentation approach and are required Disclosure ta to operate in accordance with our Supplier Code of Conduct – an t PLC (public limited company). extension of the Barclays Values throughout our supply chain. emen You can find out more about what we expect of our suppliers here: t Indicator requirement Status home.barclays/about-barclays/suppliers/requirements-of- G4-8 external-suppliers.html Report the markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries). Disclosure The types of customers and the services we offer to each of them are described in the Annual Report. Further details can be found on our website at home.barclays/annualreport home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 19

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Organisational profile Indicator requirement Status Con t e Indicator requirement Status G4-16 xt and Appr G4-13 List memberships of associations (such as industry Report any significant changes during the reporting period associations) and national or international advocacy organisations in which the organisation: regarding the organisation’s size, structure, ownership or its o supply chain, including: ach ■■ Holds a position on the governance body ■■ Changes in the location of, or changes in, operations, ■■ Participates in projects or committees including facility openings, closings and expansions ■■ Provides substantive funding beyond routine membership dues ■■ Changes in the share capital structure and other capital formation, maintenance and alteration operations (for private ■■ Views membership as strategic sector organisations) Disclosure Shar ■■ Changes in the location of suppliers, the structure of the ■■ Banking Environment Initiative ed Gr supply chain, or in relationships with suppliers, including ■■ Equator Principles o selection and termination wth Ambition ■■ Business in the Community Disclosure In March 2016, we announced the following actions to materially ■■ United Nations Environment Programme Finance Initiative (UNEP FI) progress our restructuring and lay the foundations for a period of ■■ Thun Group increased stability and improved performance. ■■ Business for Social Responsibility (BSR) ■■ The creation of two clearly defined divisions, Barclays UK and Barclays International, consistent with the regulatory requirement of Trade associations ringfencing in the UK. Barclays is a member of several trade associations globally. These Gener ■■ associations work to represent their members and shape Sell-down of our 62.3% stake in Barclays Africa Group Limited (BAGL) industry’s collective response to public policy issues. A summary of the key al S to a non-controlling, non-consolidated, position. associations in which we participate is also available on our website – tandar ■■ A one-time increase to Barclays Non-Core, whilst retaining our plan to barclays.com/citizenship/reports-and-publications/public-policy.html accelerate the run down our Non-Core business and close it by the d Disclosur end of 2017. Identified material aspects and boundaries Details of the Strategic Review and Group structure can be found in Indicator requirement Status es the Annual Report. Further details can be found on our website at G4-17 home.barclays/annualreport List all entities included in the organisation’s consolidated financial statements or equivalent documents. Indicator requirement Status Report whether any entity included in the organisation’s Specific G4-14 consolidated financial statements or equivalent documents is S Report whether and how the precautionary approach or not covered by the report. tandar principle is addressed by the organisation. Disclosure d Disclosure This Report covers Barclays operations globally except for Barclays Africa Disclosur In 2016, we reviewed 410 transactions for environmental or social Group Limited (BAGL). impacts. Refer to page 41 of this document for details. Please refer to Barclays Africa Group Limited (BAGL) Integrated es Indicator requirement Status Report and other disclosures available at barclaysafrica.com/ barclaysafrica/Investor-Relations/Announcements-and-publications/ G4-15 Annual-and-interim-reports List externally developed economic, environmental and social KP charters, principles, or other initiatives to which the organisation As part of our CRD IV Country by Country Reporting requirements, we MG Assur subscribes or which it endorses. also publish a list of the main entities that Barclays operates around the world and which together contribute over 90% of the Group’s turnover. Disclosure This document is available at the following link home.barclays/ ance S ■■ Equator Principles citizenship/reports-and-publications/country-snapshot.html ta t ■■ Green Bond Principles emen ■■ United Nations Environment Programme Finance Initiative (UNEP FI) t ■■ Wolfsburg Principles ■■ Soft Commodities Compact (Banking Environment Initiative and Consumer Goods Forum) ■■ Living Wage (UK) ■■ New York Declaration on Forests (2014) ■■ The Paris Pledge for Action (2015) ■■ UN Principles for Responsible Investment (The Barclays UK Retirement fund and Barclays Asset Management Ltd are signatories) home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 20

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Identified material aspects and boundaries within the non-financial reporting sphere. We also considered alignment Con with the United Nations’ Sustainable Development Goals and first round t e Indicator requirement Status of recommendations produced by the Financial Stability Board Task xt and Appr G4-18 Force on Climate-related Financial Disclosures. Explain the process for defining the report content and the Aspect Boundaries. 2. Prioritisation of relevant topics o Outcomes of the stakeholder engagement and desktop study were ach Explain how the organisation has implemented the Reporting presented to the working group for prioritisation. As in 2015, the working Principles for Defining Report Content. group comprised representatives from different parts of the business, Disclosure chosen for their specialised knowledge of different stakeholder groups Ω (including Reputation Risk and Environmental Risk, Group Strategy, Materiality process description Investor Relations, HR, Insights and Research, Citizenship). 1. 2016 process for defining report content, aspect boundaries and Prioritisation of relevant topics was based on two main assessments: the Shar material topics Every year, we revisit our materiality process to ensure that previous influence they have on our stakeholders and their importance to ed Gr Barclays. We have made the following judgements: a topic was o assessments are still valid and to assess if any additional relevant topics considered to have a high influence on stakeholders if it: a) influences wth Ambition need to be considered or less relevant topics removed. In 2016, we followed the GRI G4 materiality process as described in the more than one stakeholder group, b) influences multiple geographical G4 Sustainability Reporting Guidelines. Following a materiality areas, c) has long-term consequences or is of growing interest or d) is assessment conducted last year, this year we reviewed the existing very likely to occur. materiality matrix based on the outcomes of an internal desktop study. The desktop study included the review of the engagement outcomes Note with external stakeholders, results of Barclays’ sustainability benchmarks Ω Within KPMG’s limited assurance scope. Please see page 49 for assurance statement. Stakeholder engagement activity referenced in G4-24 to G4-27 is outside of KPMG’s performance, horizon scans, media analysis and regulatory changes limited assurance scope. Gener al S tandar d Disclosur Issues rFHighly significant ocus acr Financial performance es eleoss all cImportance t v an Conduct and compliance t acr Regulatory change oss geogror e stak Remuneration Specific eholder gr aphies o stak S Access to financial services and tandar oups eholders financial empowerment d Climate change risks and opportunities Disclosur Social and environmental financing Transparency es Customer satisfaction F ocus f Cybersecurity and data protection or one or tw Human capital development, incl. diversity and inclusion KP Digital access MG Assur Entrepreneurial support Human rights o k Supply chain management Employability ance S e y stak Direct environmental impact other than GHG emissions Taxation ta t eholder gr emen Significant t oups Importance to Barclays Significant Highly significant Relevant for specific business activities Group-wide significance Strategic relevance for long-term performance Key: Environmental Social Governance, incl. economic impact (refer to Annual Report and our website) home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 21

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Identified material aspects and boundaries Indicator requirement Status Con t It was considered to have a high importance to Barclays if it: a) impacts e more than one business unit or function, b) impacts multiple G4-19 xt and Appr List all the material Aspects identified in the process for defining geographical locations, c) is critical for our long-term performance or d) report content. is likely to cause risks or opportunities to arise for Barclays. Disclosure o Following prioritisation review, three new topics were added - digital Refer to G4-18 ach empowerment and employability to reflect our commitments under the Shared Growth Ambition; along with Human Rights to reflect the Indicator requirement Status evolving agenda in this space. A number of topics were grouped to G4-20 reflect the overarching themes, including supply chain management, For each material Aspect, report the Aspect Boundary within the human capital development, financial inclusion and literacy, social and environmental financing and financial product governance and organisation. Shar responsibility; two topics were removed: community investment and Disclosure ed Gr occupational health and safety, because they are not part of our core Refer to Reporting Criteria at home.barclays/citizenship/ o strategy. However, they remain important aspects that we continue to our-reporting.html wth Ambition promote. 3. Validation Indicator requirement Status We have assessed the result of our materiality process assessment G4-21 against the outcome of previous stakeholder engagement exercises. We For each material Aspect, report the Aspect Boundary within the have also aligned the citizenship materiality assessment to the Barclays organisation. Annual Risk Factors Review which also considers the most material Disclosure aspects. The final output of the materiality process has fed into the Refer to Reporting Criteria at home.barclays/citizenship/ planning stages of our Annual Report and Citizenship Supplement. The our-reporting.html Gener ESG Supplement content and GRI disclosures have been approved by al S senior management and Board Committees. Indicator requirement Status tandar 4. Review G4-22 d Disclosur We engaged KPMG LLP to provide limited assurance over the Report the effect of any restatements of information provided in presentation of our description of our materiality process as marked with previous reports, and the reasons for such restatements. the symbol Ω. The assurance report can be found on page 49 of this Disclosure es supplement. We will review this matrix on an annual basis. Environmental data Barclays’ data collection processes are continuous, and each year we report the most accurate data then available for the baseline and subsequent years. This can lead to restatements of previously reported Specific data if data quality improves, more data is available or updated carbon S emission factors are applied. tandar In cases where we have collected new data for previously unreported d consumption, we will go back and restate the baseline if the new data Disclosur amounts to a material change greater than 1% of the total consumption. If the change is less than 1%, we will report consumption from the point es at which the data became available. If it is greater than 1%, we will restate the baseline and previous year’s figures based on actual or estimated figures. Reasons for restatements in data are due to more accurate data being available which led to replacements of estimates KP with actual data for 2015. In 2016, we have also aligned to the latest MG Assur carbon conversion factors as released by the GHG Protocol. ance S ta t emen t Note Ω Within KPMG’s limited assurance scope. Please see page 49. Stakeholder engagement activity referenced in G24 to G27 is outside of KPMG’s limited assurance scope. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 22

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Identified material aspects and boundaries Indicator requirement Status Con The following restatements apply this year to previously reported t e 2015 data: G4-26 xt and Appr Report the organisation’s approach to stakeholder engagement, 2015 new 2015 old including frequency of engagement by type and by stakeholder b Metric (2016 AR) (2015 AR) group, and an indication of whether any of the engagement was o Energy (MWh) 912,825 1,214,868 undertaken specifically as part of the report preparation process. ach a Disclosure Carbon (tCO e) 489,621 701,600 2 3 Barclays key stakeholder groups Total water withdrawal by source (m ) 1,220,152 1,187,814 Total water withdrawal by source (coverage) 72% 42% a. Including fugitive emissions for all years apart from 2012. Shar b. Excluding Barclays Africa Group Limited (BAGL). Customers and Clients ed Gr o Indicator requirement Status wth Ambition G4-23 Report significant changes from previous reporting periods in NGOs and Employees the Scope and Aspect Boundaries. Interest Groups Disclosure There were no significant changes from previous reporting periods in the Scope and Aspect Boundaries apart from the exclusion of Barclays information for Barclays Africa Group Limited (BAGL). Please refer to Barclays Africa Group Limited (BAGL) Integrated Gener Report and other disclosures available at barclaysafrica.com/ al S barclaysafrica/Investor-Relations/Announcements-and-publications/ Suppliers Shareholders tandar Annual-and-interim-reports. d Disclosur Stakeholder engagement Government Indicator requirement Status and Regulators es G4-24 Provide a list of stakeholder groups engaged by the organisation. Disclosure Stakeholder insight and engagement is vitally important to ensuring we Specific See below serve our customers, clients, communities and our shareholders to the S best of our ability. tandar Indicator requirement Status Our dedicated teams take an integrated approach to engaging with each d G4-25 stakeholder group; maintaining ongoing dialogue, focusing our priorities Disclosur Report the basis for identification and selection of stakeholders and holding us to account. with whom to engage. Through our code of conduct The Barclays Way and our decision making es Disclosure framework The Barclays Lens we embed stakeholder accountability into Extensive market research programmes help confirm that Barclays the way we do business and our decision making. engagement programmes both target and reach key stakeholders. Stakeholder engagement programmes are reviewed with the help of our KP comprehensive tracking programme. Twice annually, via independent MG Assur research, Barclays engages 2,000 key stakeholders from the NGO, governmental, media, and business sectors to critically access the impact of our work. In addition we research consumers continuously to ance S ensure our products and services are meeting expectations. ta t Stakeholder engagement is increasingly important to us as we deliver emen our Shared Growth Ambition. The opportunities for us to create the t largest positive societal impacts are through collaborations and partnerships; whether this is to provide Access to financing of renewable energy sources or social infrastructure, or helping people gain Access to financial and digital empowerment (all of which are Sustainable Development Goals (SDGs)). home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 23

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Stakeholder engagement Stakeholder group Con t Shareholders e Indicator requirement Status Issues identified xt and Appr G4-27 Report key topics and concerns that have been raised through ■■ Financial performance ■■ Strategic review stakeholder engagement, and how the organisation has o responded to those key topics and concerns, including through ■■ Capital and leverage ach its reporting. Report the stakeholder groups that raised each of Our response the key topics and concerns. Barclays is committed to promoting effective and open communication Disclosure with all shareholders, ensuring consistency and clarity of disclosure at all See below times. For more information on Barclays’ 2016 financial performance, please see the Annual Report 2016. Stakeholder group Detailed information on Investor Relations is presented Shar Customers and clients Issues identified home.barclays/barclays-investor-relations.html ed Gr o ■■ Customer service enhancements Stakeholder group wth Ambition ■■ Complaints Suppliers ■■ Individual and SME support through the provision of credit Issues identified ■■ Transparency and accessibility of products and services ■■ Prompt payments Our response ■■ Diversity and inclusion We continue to be a major provider of personal and housing finance, ■■ Our sustainability expectations of suppliers bringing innovative banking solutions across the world. Our response Please see the Strategic Report 2016 for information. We see our suppliers as an extension of our business Through collaboration with industry sector leads, academics and In 2016, we continued to promote prompt payment to suppliers across Gener researchers – sector specific and key topics for research are identified, the Group. al S commissioned, published and shared to assist customers and clients in We are committed to supplier diversity and further development tandar their financial matters. of our supply chain in line with best sustainability practice. Research publications can be found here: home.barclays/citizenship/our-approach/policy-positions.html d Disclosur Stakeholder group Corporate Bank: Government and regulators es barclayscorporate.com/insight-and-research.html Issues identified Barclaycard: ■■ Regulatory reforms home.barclaycard/media-centre/press-releases.html ■■ Conduct and compliance Barclays business banking: Our response Specific barclays.co.uk/business-insight Information on our public policy activity is available on our website S Wealth: home.barclays/citizenship/reports-and-publications/ tandar public-policy.html wealth.barclays.com/en_gb/home/research/research-centre.html d Investment Bank: Disclosur investmentbank.barclays.com/research.html and investmentbank.barclays.com/our-insights.html es With a view to continually improving banking experience with us, we gather and publish complaints data. home.barclays/citizenship/ reports-and-publications/uk-complaints-data.html KP Stakeholder group MG Assur Employees Issues identified ance S ■■ Culture and values ■■ Diversity and inclusion ta t ■■ Training and development emen Our response t Our colleagues form the core of our business. We are committed to investing in them and ensuring they are fully engaged. We conduct a global employee opinion survey Your View. Further details can be found on our website at home.barclays/ annualreport. In 2016, we continued our efforts to increase the proportion of women in senior roles home.barclays/citizenship.html. Robust training and development initiatives allow us to recruit and retain top talent. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 24

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Stakeholder engagement Report profile Con Stakeholder group t e Non-governmental organisations and interest groups Indicator requirement Status xt and Appr Issues identified G4-28 Reporting period (such as fiscal or calendar year) for information ■■ Need for a change in values, conduct and culture, along with a provided. o longer-term outlook Disclosure ach ■■ Impact of lending to sensitive sectors Year ended 31 December 2016. ■■ Banking sector approach to managing human rights ■■ Supporting products and services that address social challenges Indicator requirement Status Our response G4-29 We engage with NGOs and other interest groups to improve our public Date of most recent previous report (if any). Shar disclosures, maintain greater overall transparency and further our ability Disclosure ed Gr to serve our stakeholders. Here are five examples of stakeholder Year ended 31 December 2015. o engagement in action: We have been reporting key citizenship performance information within wth Ambition NGOs, academics and thought leaders helped mould our Shared Growth our Strategic Report, as part of the Annual Report, since 2014. However, Ambition, joining our launch event in June to further embed collaboration Barclays has been producing a separate Annual Report since 1990 and a into the delivery model. Citizenship or CSR Report since 2002. In 2016, we have constructively engaged with a number of NGOs on These are available in our archives: for Annual Reports please see their specific areas of interest, including WWF (on world heritage sites), home.barclays/citizenship/our-approach/our-archive.html Christian Aid (climate change and fossil fuel financing), BankTrack (human rights and climate change) and Transparency International Indicator requirement Status Gener (financial crime and use of incentives in remuneration structures). We use this dialogue to help inform our strategy and approach to managing G4-30 al S individual issues. Reporting cycle (such as annual, biennial). tandar Disclosure Consumer groups not only hold us to account on vital customer issues, Annual. d Disclosur but impactful collaborations are deepening our ability to serve our customers. As a member of the Equator Principles, the UN Environment Programme Indicator requirement Status es Finance Initiative, the Financial Stability Board: Task Force on Climate- G4-31 related Financial Disclosures (FSB TCFD) along with being signatories to Provide the contact point for questions regarding the report or the BEI’s Soft commodities compact and the Green Bond Principles we its contents. continue to apply a stringent risk management approach to project Disclosure Specific finance and other transactions, and contribute to industry debates on [email protected]. S this and wider sustainability issues. 1 Churchill Place, London, E14 5HP tandar We are collaborating with other European banks, as a member of the d Thun Group, to examine how the UN Guiding Principles for Human Indicator requirement Status Disclosur Rights and Business may be integrated into bank policies and practices. G4-32 Report the ‘in accordance’ option the organisation has chosen. es Report the GRI Content Index for the chosen option. Report the reference to the External Assurance Report, if the report has been externally assured. KP Disclosure MG Assur Barclays reports in accordance with the Core option of the GRI G4 Guidelines, as evidenced by this table, Annual Report and supporting disclosures. ance S ta Refer to G4-33 for details on assurance. t emen t home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 25

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Report profile Environmental, social and reputational issues form part of the remit of Con the Board Reputation Committee (RepCo). The principal purpose of the t e Indicator requirement Status Committee is to review, on behalf of the Board, the efficiency of the xt and Appr G4-33 processes for the identification and management of conduct risk and Report the organisation’s policy and current practice with regard reputation risk. It also reviews and monitors the effectiveness of Barclays’ to seeking external assurance for the report. Citizenship strategy, including the management of Barclays’ social and o environmental contribution. The Committee’s report for 2016 is available ach If not included in the assurance report accompanying the in the Annual Report 2016. sustainability report, report the scope and basis of any external assurance provided. The Barclays Corporate Governance Report and Directors’ Report set out Report the relationship between the organisation and the the governance structure and further detail on the Board of Directors assurance providers. and Board Committees. Report whether the highest governance body or senior Shar executives are involved in seeking assurance for the Indicator requirement Status ed Gr organisation’s sustainability report. G4-35 o Disclosure Report the process for delegating authority for economic, wth Ambition KPMG LLP undertook a limited assurance engagement over environmental and social topics from the highest governance selected performance information in this report and the body to senior executives and other employees. presentation of the descritption of our materiality process. Disclosure Refer to their statement on page 49. The Group Board delegates authority for oversight of environmental and The outcomes of the assurance along with relevant recommendations social topics to the Board Reputation Committee (RepCo), which reviews are presented in the Management Report that is reviewed at senior level management’s recommendations on conduct and reputational risk and the effectiveness of the processes by which the Group identifies and and circulated to data owners. manages these risks. It also reviews and monitors the effectiveness of Gener Barclays’ Citizenship strategy, including the management of Barclays’ Governance social and environmental contribution (see G4-45 and G4-48 for further al S detail). The RepCo provides strategic direction to the management tandar Indicator requirement Status G4-34 committees and Business Unit and Functional heads, through the Group d Disclosur Report the governance structure of the organisation, including Head of Compliance. committees of the highest governance body. Identify any The Global Citizenship Council (GCC) is a management committee committees responsible for decision-making on economic, comprised of senior leaders with responsibility for providing overall es environmental and social impacts. strategic direction and leadership of Barclays Global Citizenship strategy Disclosure and driving engagement, collaboration, consistency and alignment The Board is responsible to shareholders for creating and delivering across all Business Units, Functions and geographies in relation to the sustainable shareholder value through the management of the Group’s Citizenship strategy. Specific businesses. It should therefore determine the strategic objectives and S policies of the Group to deliver long-term value, providing overall Indicator requirement Status tandar strategic direction within a framework of rewards, incentives and G4-36 d controls. Report whether the organisation has appointed an executive- Disclosur The Board must ensure that management strikes an appropriate balance level position or positions with responsibility for economic, between promoting long-term growth and delivering short-term environmental and social topics, and whether post holders es objectives. report directly to the highest governance body. The Board, in order to be effective, should demonstrate ethical Disclosure leadership and promote the Company’s collective vision of purpose, The Global Head of Citizenship and Reputation leads a range of values, culture and behaviours. Directors must act in a way they specialist teams globally and has a reporting line into the Group Chief KP consider, in good faith, would promote the success of the Company for Executive. The Global Head also presents regular updates to the Board MG Assur the benefit of the shareholders as a whole and, in doing so, have regard Reputation Committee and management committees. (among other matters) to: ance S (a) The lik ely consequences of any decision in the long-term; ta t (b) The in terests of Barclays’ employees; emen (c) The need to foster Barclays’ business relationships with suppliers, t customers and others; (d) The imp act of Barclays’ operations on the community and the environment; (e) The de sirability of Barclays’ maintaining a reputation for high standards of business conduct; and (f) The ne ed to act fairly between shareholders of Barclays. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 26

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Governance Indicator requirement Status Con t e Indicator requirement Status G4-40 xt and Appr G4-37 Report the nomination and selection processes for the highest Report processes for consultation between stakeholders and the governance body and its committees, and the criteria used for nominating and selecting highest governance body members highest governance body on economic, environmental and o social topics. If consultation is delegated, describe to whom and Disclosure ach any feedback processes to the highest governance body. The balance and mix of appropriate skills and experience of non- Disclosure executive Directors will be taken into account when considering a Barclays conducts a series of stakeholder engagement and horizon- proposed appointment. The behaviours likely to be demonstrated by scanning exercises on a regular basis. These are designed to gather potential non-executive Directors will also be considered when stakeholder insight from a broad range of groups, including investors, interviewing for new appointments to ensure that an environment in academics and NGOs, and provide more detail on current and emerging which challenge is expected and achieved is maintained in the Shar reputation and citizenship issues. Results from stakeholder engagement boardroom. ed Gr and horizon scanning are communicated to RepCo. In reviewing Board composition, the Board Nominations Committee will o consider the benefits of diversity, including gender, and look to ensure a wth Ambition Indicator requirement Status geographical mix of Directors, together with representatives from G4-38 different industry sectors. The Board’s objective is that approximately Report the composition of the highest governance body and its 50% of non-executive Directors, including the Group Chairman and committees. Chairmen of the principal Board Committees, should have banking and/ or financial experience and this will also be taken into account when Disclosure recommending appointments. The Barclays Board has 13 members, including the Chairman, See Corporate Governance at Barclays home.barclays/ 2 executive Directors and 10 non-executive Directors. about-barclays/barclays-corporate-governance.html Gener The gender balance as at end 2016 is 4 female Directors (31%) for more detail and refer to Board Nominations Committee report for 2016 al S and 9 male Directors (69%). in the Annual Report 2016. tandar Further detail on the composition of the Board, Director biographies and the principal Board Committees is available in the Governance section of Indicator requirement Status d Disclosur the Annual Report 2016. G4-41 Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether es Indicator requirement Status conflicts of interest are disclosed to stakeholders. G4-39 Disclosure Report whether the Chair of the highest governance body is also No Director will put themselves in a position where their interests an executive officer (and, if so, his or her function within the conflict or may be perceived to conflict, with those of the Group. Specific organisation’s management and the reasons for this Directors must not accept a benefit from a third party conferred by arrangement). S reason of: (a) being a Director, or (b) doing (or not doing) anything as a tandar Disclosure Director. The Chairman of the Board of Directors is not an executive officer, with d separation between the roles of Chairman and Chief Executive. If Directors have any doubts whether a conflict or potential conflict may Disclosur arise, before doing anything that might compromise the Group, non-executive Directors should consult the Chairman or Company Secretary and Executive Directors should consult the Chief Executive. es Directors are required to notify the Company Secretary in advance of any potential conflicts through other Directorships or shareholdings. If a conflict or potential conflict may arise, Directors must seek authorisation KP from the Board, in accordance with Barclays’ Articles of Association. MG Assur Once authorised, conflicts will be recorded in a Conflicts Register to ensure the Director’s duty to avoid conflicts is not infringed. Directors are also required to notify the other Directors of any potential or existing ance S transactional conflicts and may do so via the Company Secretary. ta t See Corporate Governance at Barclays home.barclays/ emen about-barclays/barclays-corporate-governance.html t for further detail. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 27

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Disclosure Governance The Board Reputation Committee reviews Citizenship Key Performance Con t e Indicator requirement Status Indicators and progress against Citizenship objectives twice yearly; and xt and Appr G4-42 reviews and signs-off the content of Barclays’ ESG Supplement. Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the o organisation’s purpose, value or mission statements, strategies, Indicator requirement Status ach policies, and goals related to economic, environmental and G4-51 social impacts. a. Report the remuneration policies for the highest governance Disclosure body and senior executives for the below types of remuneration: See G4-34 and G4-45 ■■ Fixed pay and variable pay – Performance-based pay Indicator requirement Status – Equity-based pay Shar G4-43 – Bonuses ed Gr – Deferred or vested shares o Report the measures taken to develop and enhance the highest wth Ambition governance body’s collective knowledge of economic, ■■ Sign-on bonuses or recruitment incentive payments environmental and social topics. ■■ Termination payments Disclosure ■■ Clawbacks Part of the role requirement for the Chairman of the Board Reputation Retirement benefits, including the difference between benefit Committee includes: schemes and contribution rates for the highest governance The Chairman must have a good understanding of Corporate Social body, senior executives, and all other employees. Responsibility and Sustainability Principles and make every effort to keep b. Report how performance criteria in the remuneration policy up to date with domestic and international best practice developments. relate to the highest governance body’s and senior executives’ Gener As part of the annual performance evaluation process the individual economic, environmental and social objectives. al S development needs of each non-executive Director are reviewed and Disclosure tandar discussed with the Chairman. Training can be provided through a. Barclays’ Directors’ remuneration policies and disclosures are available one-to-one meetings with senior executives, in order to receive further in the 2016 Remuneration Report in the Annual Report 2016. d Disclosur insight into a particular area of the Group’s business, or as part of b. Barclays’ Balanced Scorecard covers performance across financial and dedicated training on a particular issue identified by the Directors and the Company Secretary. non-financial measures including economic, social and environmental es objectives. Please see the Strategic Report 2016 for further detail on the See Corporate Governance at Barclays home.barclays/ Balanced Scorecard. about-barclays/barclays-corporate-governance.html for more detail and refer to Board Reputation Committee report for 2016 Indicator requirement Status Specific in the Annual Report 2016. G4-52 S Indicator requirement Status Report the process for determining remuneration. Report tandar G4-45 whether remuneration consultants are involved in determining d remuneration and whether they are independent of a. Report the highest governance body’s role in the identification management. Report any other relationships which the Disclosur and management of economic, environmental and social remuneration consultants have with the organisation. impacts, risks, and opportunities. Include the highest es governance body’s role in the implementation of due diligence Disclosure processes. Please see Barclays Directors’ Remuneration Report. b. Report whether stakeholder consultation is used to support home.barclays/annualreport the highest governance body’s identification and management KP of economic, environmental and social impacts, risks, and MG Assur opportunities. Disclosure ance S a. RepCo reviews and approves Barclays’ overall Citizenship strategy and associated policies, including policies on financial inclusion, diversity, ta t Citizenship and environment, ensuring that they take appropriate emen account of external developments and expectations. t b. Barclays conducts regular stakeholder engagement and horizon scanning exercises to identify current and emerging reputational, social and environmental issues, which are communicated to RepCo. In addition, the results of Barclays’ annual materiality assessment for Citizenship reporting is also reviewed by the Committee as part of their approval of the ESG Supplement. Indicator requirement Status G4-48 Report the highest committee or position that formally reviews and approves the organization’s sustainability report and ensures that all material Aspects are covered. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 28

General Standard Disclosures Key Fully disclosed Partially disclosed Not disclosed Governance Indicator requirement Status Con t e Indicator requirement Status G4-57 xt and Appr G4-53 Report the internal and external mechanisms for seeking advice Report how stakeholders’ views are sought and taken into on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines. account regarding remuneration, including the results of votes o on remuneration policies and proposals, if applicable. Disclosure ach Disclosure Arrangements have been put in place for employees to obtain free, Please see Barclays Directors’ Remuneration Report. independent and confidential advice on whether or how to make a whistleblowing report by calling the Public Concern at Work advice line home.barclays/annualreport or by visiting their website. Employees are also informed that they are able to raise their concerns directly with a regulator. When a concern is Indicator requirement Status raised, where there is sufficient information, a case is created and the Shar specific concern(s) independently reviewed. Where merited, concerns ed Gr G4-54 are escalated to senior management and where appropriate, regulators. o Report the ratio of the annual total compensation for the wth Ambition organisation’s highest-paid individual in each country of Indicator requirement Status significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the G4-58 same country. Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters Disclosure related to organizational integrity, such as escalation through We provide detailed disclosures on remuneration in our Annual Report; line management, whistleblowing mechanisms or hotlines. this includes additional remuneration disclosures (including voluntary Disclosure disclosures) about levels of remuneration of employees in the Barclays In September 2016, the Raising Concerns (Whistleblowing) Policy was Gener Group. See the Annual Report for more information. updated to reflect and accommodate recent FCA regulatory changes. al S This document sets out Barclays Whistleblowing process and strongly tandar Indicator requirement Status encourages our employees to raise concerns about behaviour and G4-55 practices that are counter to our Values and Behaviours. d Disclosur Report the ratio of percentage increase in annual total To facilitate the raising of these concerns Barclays provides internal and compensation for the organisation’s highest-paid individual in external gateways for employees and others connected with the Bank to es each country of significant operations to the median percentage report both confidentially and, where permissible, anonymously. Where a increase in annual total compensation for all employees person raising a concern wishes to remain anonymous, no attempt will (excluding the highest-paid individual) in the same country. be made to identify them. To promote awareness of the process and in Disclosure particular the gateways, the Bank delivers annual mandatory We provide detailed disclosures on remuneration in our Annual Report; whistleblowing training to every employee. Specific this includes additional remuneration disclosures (including voluntary Barclays operates a strict no retaliation policy to protect employees who S disclosures) about levels of remuneration of employees in the Barclays raise concerns and others who assist in a subsequent investigation. All tandar Group. See the Annual Report for more information. allegations of retaliation are treated very seriously. To deliver the very d best service to individuals who raise their concerns, Barclays has a Disclosur Ethics and integrity dedicated Whistleblowing Team which consists of seven specialist operatives based in London, Birmingham and New York and three es Indicator requirement Status additional employees located in Mumbai and Tokyo. G4-56 In March 2016 Barclays’ appointed a non-executive Director, Mike Ashley, Describe the organisation’s values, principles, standards and to fulfil the role of ‘Whistleblowers’ Champion’. His responsibilities norms of behaviour such as codes of conduct and codes of ethics. include ensuring and overseeing the integrity, independence and KP Disclosure effectiveness of the firm’s policies and procedures on whistleblowing MG Assur Barclays’ values are: respect, integrity, service, excellence and and on the protection of whistleblowers against retaliation as a result of stewardship. All Barclays colleagues have annual reviews, which include raising concerns. an assessment of their performance against these values. ance S In 2016, over 500 concerns were raised by employees through the The Barclays Way – our Code of Conduct – was launched in 2013, ta whistleblowing process. t replacing a number of existing codes of conduct with one unifying emen document. It outlines the Purpose and Values which govern our way of t working across our business globally. It constitutes a reference point covering all aspects of colleagues’ working relationships, specifically (but not exclusively) with other Barclays employees, customers and clients, governments and regulators, business partners, suppliers, competitors and the broader community. As at end 2016, 99.6% of our colleagues had attested to the Barclays Way (2015: 99%). The Barclays Way is available on our website. home.barclays/citizenship/our-approach/policy- positions.html home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 29

Specific standard disclosures Con t e xt and Appr o ach Shar ed Gr o wth Ambition Gener al S tandar d Disclosur es Specific S tandar d Disclosur es KP MG Assur ance S ta t Semtive emen Semtive was part of the first cohort of the US Unreasonable Impact t programme. Semtive addresses the dependence on fossil fuels with its simple, reliable, and affordable wind turbine. The design of the noiseless turbine allows it to work with limited roof space, withstand extreme weather conditions, operate alone, or function as a complement to other energy sources. With a track record of over 7 years, Semtive’s turbines can be applied to residential, industrial, commercial, and isolated areas with a lifetime warranty. For more details about Unreasonable Impact refer to page 14. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 30

Specific Standard Disclosures Key Fully disclosed Economic Partially disclosed Not disclosed Indicator requirement Status Economic performance Con t e G4-DMA Indicator requirement Status xt and Appr Disclosures on management approach. G4-EC1 Disclosure Direct economic value generated and distributed. A successful, vibrant finance and banking sector is an essential enabler o of social and economic progress, growth and development. Disclosure ach We report the direct economic value generated and distributed in our We focus on three key material aspects in the economic category: financial review in the Annual Report, including revenues, operating (1) Economic performance – we believe the best way to support our costs, economic value retained and dividends paid. stakeholders is by operating a strong, profitable and growing business, We publish a summary of turnover, profits, employees, which creates jobs and contributes to the economic success of the taxes paid and subsidies received by country in the 2016 communities in which we live and work. ‘Country Snapshot’ available online home.barclays/citizenship/ Shar reports-and-publications/country-snapshot.html Our strategy to deliver economic performance and key financial ed Gr performance indicators for 2016 are available in the Strategic Report. Direct economic value generated and distributed o (2) Indirect economic impacts – banks play a central role in financing VALUE GENERATED 2016 2015 2014 2013 wth Ambition the real economy; including individuals and households; small 1 Revenues (Total Income) £21,451m £22,040m £21,763m £24,044m businesses; corporates; and institutions and governments. VALUE DISTRIBUTED Our business model enables us to maintain relevance to our customers Shareholders and clients, whatever stage of life they are in. For example, for Dividends paid to £757m £1,081m £1,057m £859m individuals, our model can provide a safe place to store savings, help a shareholders first-time buyer make their first steps onto the property ladder, create an investment portfolio as wealth grows, or provide cross-border advice for Government Gener the affluent. For businesses this means being ready to help 2 entrepreneurs launch a business, fund its growth, expand internationally, Taxes paid £2,824m £3,577m £3,485m £3,374m al S 3 tandar protect against currency risk, and issue bonds and listed equity shares. Taxes collected £2,733m £2,957m £3,187m £3,044m (3) Community support – Barclays plays a broader role in the Employees d Disclosur communities in which we live and work beyond what we deliver through Group compensation £7,445m £7,301m £7,819m £8,517m our core business activities. We support communities by: 1 costs Investing money, time and skills in partnerships with respected Communities es and relevant non-governmental organisations, charities and Global investment in our £48m £63m £62.4m £72m social enterprises. Read more about our community investment 4 programmes barclays.com/citizenship/supporting-communities/ communities our-programmes.html 1. Comparatives have been restated to reflect the implementation of the Group business Specific S Enabling colleagues to use their professional skills and expertise in a reorganisation. These restatements were detailed in our announcement on 14 April 2016, accessible at home.barclays/results. range of activities, including volunteering and fundraising. Read more 2. Taxes paid are the Company’s own tax contribution, representing taxes paid or suffered tandar about our employee programmes barclays.com/citizenship/ at source by the Company in the year. These disclosures include Barclays Africa Group. supporting-communities/employees-in-action.html 3. Taxes collected are those collected from employees and customers on behalf of d Disclosur governments. The VAT collected represents Barclays’ contribution to the public finances and comprises VAT charged on sales to clients less VAT incurred on costs that Barclays is entitled to recover. These disclosures include Barclays Africa Group. 4. These disclosures include Barclays Africa Group. es KP MG Assur ance S ta t emen t home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 31

Specific Standard Disclosures Key Fully disclosed Economic Partially disclosed Not disclosed Economic performance Indicator requirement Status Con t 1 e ■■ Overview of tax paid by type and region 2016 G4-EC2 xt and Appr Financial implications and other risks and opportunities for the Tax paid globally (£m) organisation’s activities due to climate change Disclosure o 6 1 1 Corporation tax 701 Climate change, with its risks and financial implications, is a critical issue ach 5 2 Irrecoverable VAT 636 that must be addressed. Understanding those risks, as well as the 3 Employer payroll tax 611 opportunities, through increased disclosure and transparency is 4 UK Bank levy 391 necessary for all market participants to make informed and efficient 4 2 5 Withholding taxes 383 capital allocation decisions. 6 Other taxes 102 There has been significant activity to further the financial sector’s 3 understanding of the potential financial, operational and strategic Shar implications of climate change during 2016. Barclays remains a ed Gr Tax paid by region participant in the Task Force on Climate Related Financial Disclosures o (£m) (TCFD), established under the auspices of the Financial Stability Board wth Ambition 1 1 UK 1,463 (FSB). We are supportive of the work done by the TCFD and will 5 2 Americas 290 continue to engage with this and other initiatives. The principles laid out 4 3 Europe (excl. UK) 512 in the Task Force’s Recommendations are an important step in providing 4 Africa and Middle East 426 the foundations from which companies, investors, banks and other 5 Asia Pacific 133 market participants can move forward together to improve transparency 3 and build better understanding of those potential climate-related risks and opportunities. 2 Risk management Gener Barclays Board is responsible for approving risk appetite. This is al S Tax paid in the UK (£m) determined through the Enterprise Risk Management Framework tandar 1 Corporation tax 121 (ERMF) with Principal Risks managed through a framework and policy 5 1 2 2 d Disclosur 2 Social Security 374 which set out responsibilities for risk management. Business risks are 3 VAT 497 split into eight categories: credit; market; funding; operational; conduct, 4 Bank levy 391 reputation, legal and model risk. Please see the Risk Review within the es 4 5 Other taxes 80 2016 Annual Report for more information. 3 Climate change considerations are currently managed mainly within credit, operational and reputation risk. Credit Risk: Barclays has a dedicated Environmental Risk Management Specific S 1. Please see 2016 Country Snapshot for more information. This includes Barclays Africa (ERM) team in place to advise on client transactions that have Group. 2. Social Security – includes employer national insurance contributions. associated environmental or climate related risks. This team reports tandar directly to the Managing Director, Group Credit Risk; and high risk ■■ Community investment transactions are referred to the Risk Chief Credit Officer (or individual d Disclosur Invested in our communities in 2016 (%): £48m business divisions’ committees) for consideration. There is regular dialogue between the ERM and credit managers on environmental risk 83 management issues to raise awareness and ensure protocol is followed. es 5 Please see pages 41-42 of this Report for further detail on policies and 12 standards applied for key industry sectors and transaction types. Operational risk: Key risk indicators that affect the resilience and Cash Management cost Volunteer work time contribution continuous operation of the business are identified, especially for key KP business locations. These include, amongst others, regulatory risks and MG Assur ■■ Community investment employee programme participation (excludes extreme weather events. Premises risk management processes cover Barclays Africa Group). risks and opportunities associated with regulatory risks and extreme ance S Metric 2016 weather events. Business continuity management processes also include ta assessment of natural hazards associated with climate change and the t Total unique colleagues participating in Barclays’ 43,000 impact of these on location selection as well as development of emen volunteering, fundraising or giving programmes contingency plans. Location risk assessments also include climate t Total number of volunteering hours 212,000 change risks where relevant. Total number of colleagues volunteering their time and 23,000 expertise Percentage of volunteering interactions leveraging 51% colleagues’ skills Total amount raised and matched through fundraising £25m home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 32

Specific Standard Disclosures Key Fully disclosed Economic Partially disclosed Not disclosed Economic performance We continue to work to understand and measure the impact our Con business makes on society. t e Reputation Risk: As the Paris Agreement comes into force, banks are In an effort to illustrate the positive ways in which all our UK businesses xt and Appr coming under increased pressure from society, shareholders and are contributing to the UK economy and to society, we produced an potentially national governments regarding the management and in-depth report called ‘Barclays in the UK’. This report has been disclosure of their climate risks and opportunities, including the activities o of certain sections of their client base. With effect from 2017, Reputation developed with an independent research partner, Development ach Risk has been re-designated as a Principal Risk within Barclays’ Economics Ltd, and brings together our activity across all of our Enterprise Risk Management Framework and climate change is businesses in the UK to tell the story – in a snapshot of time – of what managed as a potential risk factor. Please see the Risk Review within the we do, and how we do it. 2016 Annual Report for more information. We processed one third of all payments made in the UK through customer spending and our merchant acquiring network. Climate-related opportunities Shar Banks are uniquely positioned to facilitate the flow of capital towards Turning to Barclays as a whole, our total contribution ed Gr environmentally and socially beneficial activity. Barclays is well- to the UK economy across a year was £8.5bn. o positioned to help facilitate the capital required to accelerate the This is more than: wth Ambition transition to a low carbon economy. Significant financing requirements for the energy transition and resilient infrastructure will require access to the UK the UK the UK the capital markets, bank debt and wider funding solutions, providing air transportation beverages pharmaceuticals revenue pools that are projected to grow over time. Multiple business industry industry industry lines are actively involved in delivering innovative solutions across product groups that help our clients achieve their environmental goals and ambitions. Barclays supports renewable energy sector coverage offering strategic Gener advice to and facilitating access to finance globally in wind, solar, geothermal, waste and hydro. Financing includes project financing, loans al S and bonds, convertibles, IPOs, follow-ons and private placements and is £4.6bn £4.6bn £5.7bn tandar coupled with a leading M&A advisory practice. Please see pages 7-9 for an overview of climate related financing delivered as part of Barclays d Disclosur Shared Growth Ambition and page 46 for further detail on our product When you also take into account the national prosperity we enabled by solutions and select transactions across the Corporate and Investment meeting a financial need for nearly one in two adults in the UK, this Bank. number rises to £36bn. es Read the full report home.barclays/news/2016/12/ Indirect economic impacts supporting-growth-in-the-uk.html Indicator requirement Status Specific S G4-EC8 Significant indirect economic impacts, including the extent of tandar impacts d Disclosur ■■ By supporting our customers and clients and working in partnership with other stakeholders we can create an environment in which individuals, institutions and governments are able to invest in es sustainable progress and enable growth. ■■ To achieve long-term sustainable economic growth, a number of policy challenges must first be addressed, including: raising employment, improving access to housing and supporting families in KP planning for their futures. All of these goals rely on access to MG Assur appropriate and responsible finance. In addition, new solutions to help tackle social and environmental challenges also need access to ance S appropriate financing to help innovate, develop, commercialise and scale deployment. ta t emen ■■ Banks play a key role in enabling the flow of capital towards environmentally or socially beneficial activity. A range of business lines t across our firm are actively involved in delivering solutions across product groups, geographies and industry sectors. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 33

Specific Standard Disclosures Key Fully disclosed Economic Partially disclosed Not disclosed Procurement practices We anticipate that over time, benefits will accrue to diverse suppliers Con beyond opportunities to partner on Barclays’ work – enjoying the reach t e Indicator requirement Status their clients have in servicing the larger UK and global corporate xt and Appr G4-DMA marketplace. Aspect: Procurement Practices As we move forward, how well a prospective first tier provider supports o Disclosure an inclusive supply chain will become a weighted factor in measuring ach Our supplier relationships are managed based upon an operational risk and scoring proposals, helping inform which companies make for the segmentation approach and are required to operate in accordance with best supply chain partners. our Supplier Code of Conduct. Barclays will always require that our suppliers comply with all applicable laws, regulations and standards In future years, we will introduce similar conferences on other Supplier within the geographies in which they operate. In instances where Code of Conduct specific themes. standards outlined in the Supplier Code of Conduct differ from local laws and customs, we expect suppliers to respect these standards within the Prompt payment Shar context of the customs and the local laws of their specific geography. Prompt payment is critical to the cash flow of every business, and ed Gr especially to smaller businesses within the supply chain as cash flow o In 2016, informed by the GRI reporting guidelines, the Barclays Supplier issues are a major contributor to business failure. wth Ambition Code of Conduct expanded beyond the previous four principal components that focused primarily on our minimum expectations with Barclays is a signatory to the Prompt Payment Code in the UK, regards to Diversity and Inclusion, Environmental Management, Human promptpaymentcode.org.uk. We commit to paying our suppliers within Rights and working in accordance with the Barclays Values. We’ve added clearly defined terms, and to ensuring there is a proper process for standards that also address supply chain related societal impact issues, dealing with any issues that may arise. We measure prompt payment by such as the encroachment upon indigenous people, and product and calculating the percentage of third-party supplier spend paid within a service responsibility, such as labelling and avoidance of use of banned specified time following invoice date, or receipt date if the invoice is or disputed products, to further delineate responsible business practices already over 45 days from invoice date (by value over a three-month within our supply chain. We are minimising the risk of modern slavery rolling period) for all entities where invoices are managed centrally. In Gener and human trafficking in our operations and supply chain. 2016, Barclays achieved 88% payment on time, exceeding our public commitment of 85%. By paying our suppliers promptly, we live the al S Details can be found in our Modern Slavery Statement Barclays Values and Behaviours. We expect the same to be the practice tandar home.barclays/content/dam/barclayspublic/docs/ Citizenship/Policy-Positions/MSA2016.pdf of our suppliers in doing business with their subcontractors. d Disclosur The Barclays Supplier Code of Conduct is a prerequisite set of Indicator requirement Status expectations that must be accepted by prospective suppliers before G4-EC9 es having an opportunity to submit a competitive offering. On an annual Proportion of spending on local suppliers at significant locations basis, incumbent suppliers categorised as high or medium risk must of operation attest to their ongoing commitment to meeting those expectations and, Disclosure where failure, must remediate in order to remain in good standing. Once All suppliers are treated equally and fairly in accordance with relevant Specific S every three years, for the high and medium risk segmented suppliers, an onsite review is conducted as part of our controls assurance process to sourcing and procurement policies. We select suppliers based upon best look for evidence that the expectations are being delivered in an effective value and seek ways to maximise competition from all segments of tandar manner. society. Some of the highlights of our Supplier Code of Conduct in practice are As part of our Supplier Diversity initiative, in the major regions of the world d Disclosur summarised below. where we do business, we work with non-governmental agencies (NGOs) to identify local, diverse businesses to compete for business throughout es Diversity and inclusion our supply chain. The diversity of these businesses span size and maturity Barclays has a strong commitment to enable equality of opportunity and differences, as well as ownership characteristics – gender, racial, cultural, workplace cultures that promote inclusion, as outlined in the Barclays sexual identity, military background and physical-ability differences, as Diversity Charter. We not only meet the basic legal requirements in every defined by local law or standards. Through establishment of policy and KP jurisdiction we operate in, but seek to lead the way in this area. Through practices within our strategic sourcing function, we implemented MG Assur our Supplier Code of Conduct, we encourage our suppliers to partner reporting, education and engagement programmes that have seen us with us to achieve excellence in equality, diversity and inclusion through: steadily improve our proportion of global expenditure with diverse suppliers, moving from 5.6% of spend in 2014 to nearly 7% in 2016. ance S ■■ Workplace Inclusion ■■ Inclusive supply chain management. Our Supplier Diversity Days hosted on three continents have introduced ta t diverse companies to our business leaders. In 2016, we awarded our largest emen Inclusive Supply Chain ever contract to a diverse supplier introduced at our New York event. More t In 2016, to reinforce an inclusive supply chain, we hosted the inaugural broadly we also saw an uptick in inclusion of diverse companies competing Barclays Supplier Diversity Second Tier Conference in London. for local, regional and global contracting opportunities. Recognising the position in our supply chain that diverse suppliers – We held Open Innovation events that provided an opportunity for pre-IPO small and medium sized as well as diverse owned businesses – can play companies to pitch and demonstrate their solutions to three technology in the delivery of goods and services on the second tier, or challenges. It offers an opportunity to win a supplier contract with Barclays subcontractors to our first tier suppliers, we enlisted 40 of our largest and collaborate with our technologists on product development. first tier suppliers in a one-day conference to help us identify ways of increasing the throughput of diverse suppliers on Barclays’ work. Most The benefits that accrue to diverse suppliers on Barclays work can often of the large suppliers had no prior experience in supplier diversity and be traced back to their local communities. One of our largest UK-based have since committed to instituting similar initiatives in their companies. diverse suppliers has been able to pass on some of the benefit they’ve As part of the activity, we introduced dozens of UK-based diverse received from the Barclays relationship in the form of apprenticeships for suppliers to be considered as potential partners and subcontractors. young individuals who are seeking work. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 34

Specific Standard Disclosures Key Fully disclosed Environmental Partially disclosed Not disclosed Indicator requirement Status Energy Con t e G4-DMA Indicator requirement Status xt and Appr Disclosure G4-EN3 At Barclays we aim for continuous improvement in mitigating our direct Energy consumption within the organisation environmental impacts, reducing use of natural resources and o preventing pollution. Barclays’ approach to managing environmental Disclosure ach Energy (GWh) impacts is set out in Barclays Environmental Sustainability Policy. 2016 836 As per the Companies Act 2006 (Strategic Report and Directors’ Report) 2015 913 Regulations 2013, Barclays reports on greenhouse gas emissions as part Coverage of our Annual Directors’ Report. 2016 96% Environmental data is collected and reported for all offices, retail 2015 97% Shar branches and data centres where Barclays has operational control and is Omissions ed Gr financially responsible for the utility supply, and as defined by the World Does not currently include emissions from the use of courier services. o Resources Institute/World Business Council for Sustainable wth Ambition Development (WRI/WBCSD) Greenhouse Gas Protocol (GHG): A Corporate Accounting and Reporting Standard, Revised Editiona. Indicator requirement Status Environmental data from joint ventures, investments, or sub-leased G4-EN5 properties that are owned or leased by Barclays have not been included Energy intensity within the reported figures. Disclosure Environmental data from travel is reported for business-related travel 2016 energy intensity ratio is 433 calculated as Barclays 2016 total 2 only, and excludes commuting travel. energy consumption (kWh) divided by 2016 floor space (m ). Gener Reporting period Indicator requirement Status al S Environmental data for 2013 - 2016 is reported for the periods running G4-EN6 tandar from 1 October to 30 September. Reduction of energy consumption Environmental data prior to 2013 is reported on the basis of Barclays’ Disclosure d Disclosur financial year, running from 1 January to 31 December. Please refer to our website for further details on our energy efficiency programme home.barclays/citizenship/the-way-we- This change in period was adopted in order to meet reporting deadlines do-business/managingenvironmental-impact.html es for the Annual Report and meet reporting requirements under the Companies Act. In 2016, we launched a new target to achieve a 30% carbon reduction All information in this section excludes Barclays Africa Group Limited by 2018 against the 2015 baseline. As part of this, we have a programme (BAGL). to deploy managed energy efficiency initiatives in our property portfolio Specific S to reduce the amount of energy our sites consume. Materials Water tandar Indicator requirement Status Indicator requirement Status d Disclosur G4-EN1 G4-EN8 Materials used by weight or volume 3 Disclosure Water (m ) es Disclosure Our paper consumption in 2016 is presented below. We capture paper 3 Water (m ) purchased data from our Sourcing teams globally. 16 1,104,399 20 Paper purchased (tonnes) 2015 1,218,109 KP 2016 2,248 Coverage MG Assur 2015 2,468 2016 82% 16 Coverage 82% 2015 75% ance S 20 84% ta 2015 t emen t Note a www.ghgprotocol.org home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 35

Specific Standard Disclosures Key Fully disclosed Environmental Partially disclosed Not disclosed Emissions Indicator requirement Status Con t e Indicator requirement Status G4-EN17 xt and Appr G4-EN15 Other indirect greenhouse gas emissions (scope 3). Direct greenhouse gas emissions (scope 1). Disclosure Scope 3 emissions include global air travel (except BAGL), private cars, rail o Disclosure and taxis in the UK and car hire in the UK, India and the US. Travel-related ach All our greenhouse gas emissions are reported in the emissions cover 99% of travel, and have an accuracy rate of 95%. Annual Report. For further details see our website home.barclays/annualreport Flights (tonnes CO e) 2 Scope 1 building-related emissions include diesel fuel and natural gas for 2016 71,071 our global operations. The report covers 100% of our portfolio by floor 2015 104,389 Private cars (tonnes CO e) Shar space, as defined in the ‘reporting boundaries’ section. For real estate 2 related CO e emissions, 95% of the reported emissions come from data 2016 1,549 2 2015 2,103 ed Gr provided by on-site delegates, invoices and meter readings, as opposed o to estimates. For data centres-related CO e emissions, 100% of the wth Ambition 2 Rail (tonnes CO e) reported emissions come from data provided by on-site delegates, 2 2016 595 invoices and meter readings. 2015 1,191 For company car related CO e emissions, 90% of the reported Taxis (tonnes CO e) 2 2 emissions come from data provided by an expense portal as managed 2016 246 by our HR teams. 2015 343 Car hire (tonnes CO e) Total emissions by scope 2016 (tonnes CO e)1 2 2 2016 538 3 1 1 Scope 1: 19,003  2015 955 Gener 2 Direct combustion of fuels, and company- owned vehicles (from UK only). Scope 1 Omissions al S excludes fugitive emissions. Does not currently include emissions from the use of courier services. tandar 2 Scope 2: 313,240  d Disclosur Purchased electricity and steam for own use. Indicator requirement Status G4-EN18 3 Scope 3: 73,998  Greenhouse gas (GHG) emissions intensity. es 1. Bar clays Africa Group Limited (BAGL) emissions equate to 272,172tCO e in 2016 and 2 Disclosure 230,307tCO e in 2015. We have excluded Barclays Africa Group Limited (BAGL) from 2 2016 greenhouse gas (GHG) emissions intensity ratio is 5.31 tonnes/FTE our reporting boundary as part of our GRI disclosure, however BAGL emissions are included in our Directors Report disclosure. calculated as Barclays total GHG emissions for 2016 divided by 2016 FTE. Omissions Specific S Does not currently include emissions from the use of courier services. Indicator requirement Status G4-EN19 tandar Indicator requirement Status Reduction of greenhouse gas (GHG) emissions. d Disclosur G4-EN16 Disclosure Energy indirect greenhouse gas emissions (scope 2). In 2016, Barclays set a new carbon reduction target of 30% by the end of Disclosure 2018, against the 2015 baseline. This commitment has been published es Scope 2 emissions are all building-related and include electricity and in the Shared Growth Ambition Citizenship Plan. At the end of 2016 we steam for our global operations. The reporting boundaries are the same achieved a 15.8% reduction against the 2015 baseline. as for scope 1 building-related emissions. Electricity (GWh) KP 2016 759 MG Assur 2015 823 Steam (GWh) ance S 20 16 7 ta t 2015 8 emen t home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 36

Specific Standard Disclosures Key Fully disclosed Environmental Partially disclosed Not disclosed Effluents and waste Compliance Con t e Indicator requirement Status Indicator requirement Status xt and Appr G4-EN23 G4-EN29 Total weight of waste by type and disposal method. Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with o Waste produced (tonnes) environmental laws and regulations. ach 2016 14,035 2015 17,577 Disclosure Confidential paper waste (tonnes) Please see Note 29 to the Financial Statements contained in our Annual 2016 4,101 Report 2016 which outlines our legal, competition and regulatory 2015 4,814 matters. Recycled confidential Indicator requirement Status Shar 2016 4,085 G4-EN32 ed Gr 2015 4,792 o Construction waste Percentage of new suppliers that were screened using wth Ambition 2016 1,603 environmental criteria 20 Disclosure 15 1,407 Coverage Barclays recognises that the management of environmental impacts is 2016 88% integral to good business practice, as is outlined within the Barclays 2015 84% Environmental Sustainability Policy. We encourage our suppliers to join us in similar environmental efforts to implement Environmental Omissions Management Systems (EMS) as appropriate to their businesses, and Total waste excludes Asia-Pacific and the Middle East. align with best practice activities including the following: Gener ■■ Set Environmental Targets al S Products and services ■■ Reduce Environmental Impacts tandar Indicator requirement Status ■■ Report Progress. G4-EN27 We recognise that our impacts extend beyond our direct footprint. d Disclosur Extent of impact mitigation of environmental impacts of In 2016, we built the foundation to capture and report environmental performance data from our top 40 suppliers (by spend) and in 2017 products and services. we will aim to increase the number of suppliers to 150. es Disclosure Our Environmental Risk Management (ERM) team ensures that environmental issues form part of credit risk assessment, and that environmental risk standards are clearly referenced in our credit Specific S sanctioning policies. Our property and land valuers can use our environmental screening product, Barclays SiteGuard, to assess the history of a piece of land and the operational implications of a site’s tandar current or intended commercial use. Where appropriate, cases are referred to Barclays ERM for review. In 2016, 3,639 commercial d Disclosur properties were screened, with 1,566 cases referred. Barclays fulfils the requirements of the Equator Principles (EP), an es internationally recognised framework for environmental and social risk due diligence in project finance. Barclays was one of four banks to collaborate on developing the principles. In 2016, 410 (2015: 374) transactions were reviewed in Barclays’ central credit risk team, of which KP six were subject to scrutiny against the Principles’ due diligence MG Assur framework. See page 42 for more details. ance S ta t emen t home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 37

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Labour practices and decent work Training and education Con t e Indicator requirement Status Indicator requirement Status xt and Appr G4-DMA G4-LA9 Disclosures on management approach. Disclosure o Disclosure We continue to make substantial investment in our people through ach At Barclays, retaining, developing and attracting the best people is training and development to support them to fulfil their ambitions for crucial to our long-term success. We do this through a variety of the future. We continue to provide programmes on specific, technical leadership development programmes and training, as well as focusing subjects such as LEAN and how to work in an Agile way or on the engagement of our people through locally led, line manager understanding the financial markets, as well as training focused on owned activities. personal development, such as presentation skills, influence and impact and management and leadership. Throughout 2016 we have been We measure our progress in all of these areas in our quarterly (since Q2 increasingly targeting the way we deliver training so that only the people Shar 2016) employee survey, which also feeds into a quarterly Culture Dashboard. In addition, we measure our people in our performance who really need certain training receive it and we have focused on ed Gr reducing unnecessary duplication in a number of mandatory training o management and appraisal system – both on what they do as well as modules, which have been well received by colleagues. This, together wth Ambition how they do it. This ensures our colleagues are able to continually with an increase in the channels through which we deliver training and broaden their skills, emphasising their personal development and development (some of which do not currently synchronise with our working in a way which mirrors our Values. learning management system), has resulted in an overall decrease in the We operate in accordance with the Universal Declaration of Human average hours of training per annum per employee delivered through Rights and take account of other internationally accepted human rights our LMS (see below). This is in no way however a reflection of our standards. We also promote human rights through our employment continued commitment to developing our people. policies and practices, through our supply chain and through the responsible use of our products and services. 1 Gener Barclays Statement on Human Rights summarises our objectives Average hours of training per year (2016) per employee : Split by gender: al S and commitments in this area. home.barclays/citizenship/ Female 41.64 tandar our-approach/policy-positions.html Male 37.92 d Disclosur Employment Split by employee category: Indicator requirement Status Permanent 45.79 es G4-LA1 Other 25.67 Total number and rates of new employee hires and Split by grade: employee turnover by age group, gender and region. BA1 22.52 Disclosure BA2 45.57 Specific S In 2016: the overall employee monthly turnover was 19.3% (2015: 20.32%). BA3 42.55 tandar 12-month rolling attrition was 11.1% (2015: 14.72%) BA4 46.64 All turnover and attirition metrics are based on a 12 month basis: leavers AVP 48.75 d Disclosur for the 12 month period divided by average headcount for the same VP 43.66 period. Turnover/attrition numbers are based on headcount and not D 43.23 es FTE. 2016 turnover/attrition numbers exclude Barclays Africa Group Limited (BAGL). 2015 turnover/attrition numbers exclude Barclays Africa MD 44.97 Group Limited (BAGL). 1. Numbers include colleagues from Barclays Africa Group Limited (BAGL). KP Indicator requirement Status Diversity and equal opportunity MG Assur G4-LA2 Indicator requirement Status Benefits provided to full-time employees that are not G4-LA12 ance S provided to temporary or part-time employees, by Composition of governance bodies and breakdown of employees per ta t significant locations of operation employee category according to gender, age group, minority group emen Disclosure membership and other indicators of diversity. Benefits provided to full-time employees are not always provided to Disclosure t part-time employees in all jurisdictions (a minimum level of scheduled We report female, multicultural and multigenerational hours applies to qualify for Benefits). Benefits are not provided to representation in the Annual Report. For further details temporary employees. see our website home.barclays/annualreport home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 38

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Equal remuneration for women and men Investment Con t e Indicator requirement Status Indicator requirement Status xt and Appr G4-LA13 G4-HR1 Ratio of basic salary and remuneration of women to Total number and percentage of significant investment men by employee category, by significant locations of agreements and contracts that include human rights o operation. clauses or that underwent human rights screening. ach Disclosure Disclosure Barclays fully supports gender equality in pay. We are enhancing our Evaluation of human rights and social aspects is integrated into our reporting to ensure alignment with the UK Gender Pay Gap regulations. product development, assessment of business relationships and Human rights transaction review. New financial products and services developed should be consistent with Barclays’ human rights aspirations and any Indicator requirement Status risks or opportunities in this area should be evaluated. Shar G4-DMA Human rights is incorporated into our due diligence processes. We have ed Gr o Disclosures on management approach. a suite of tools, policies and statements that guide colleagues on how to wth Ambition Disclosure manage human rights related impacts and risks. At Barclays, we operate in accordance with the International Bill of Our Code of Conduct ‘The Barclays Way’ outlines how we expect our Human Rights, and take account of other internationally accepted colleagues to behave and the required standards of working. It makes human rights standards, including the UN Guiding Principles on Business specific reference to human rights and covers a number of issues and Human Rights. We respect and promote human rights through our relevant to client review. employment policies and practices, through our supply chain screening The Barclays Statement on Human Rights aims to achieve a consistent and engagement and through the responsible provision of our products and comprehensive approach to respecting human rights across the and services. Barclays Statement on Human Rights summarises our objectives and commitments in this area and is reviewed annually. Barclays Group in four areas: employees, customers/clients, suppliers Gener and communities. home.barclays.com/citizenship/our-approach/policy-positions.html al S We provide internal guidance for lending and relationship Our Supplier Code of Conduct outlines the expected standard we have tandar of our suppliers and includes our expectation in areas such as human managers on how to integrate human rights issues into their rights, environmental management, diversity and inclusion, in addition d Disclosur assessment of financial transactions and business relationships. Using the to providing information on monitoring, due diligence and online human rights guidance tool (unepfi.org/humanrightstoolkit) whistleblowing. which we helped to develop in conjunction with other financial institutions es participating in the UNEP FI social issues advisory group, we provide Barclays further requires our main suppliers to conduct an annual guidance on: identifying potential human rights risk in lending and self-certification against our Supplier Code of Conduct. investing; assessing the materiality of the risk; and identifying possible risk All three of these documents make specific reference to the UK Modern mitigation opportunities. Slavery Act. Specific S In line with the UK Modern Slavery Act’s requirements, The Barclays Lens is a decision-making tool that provides a clear we have published our Modern Slavery Statement (https://www.home.barclays/content/dam/barclayspublic/docs/ framework to ensure that we move beyond legal, regulatory and tandar compliance concerns to consider broader societal impacts and Citizenship/Policy-Positions/MSA2016.pdf ) which outlines how opportunities. d Disclosur we are minimising the risk of modern slavery and human trafficking in our operations and supply chain. We will continue to work on this throughout 2017 and we will publish an updated Modern Slavery Indicator requirement Status es Statement in early 2018. G4-HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the KP percentage of employees trained. MG Assur Disclosure In 2016, we introduced a Human Rights training module which includes ance S reference to the UK Modern Slavery Act. This has currently been assigned as mandatory to colleagues in Global Sourcing and Supplier ta t Management as the Act specifically looks at slavery and human emen trafficking within an organisation’s direct operations and its supply chain. t We will look to roll this out to a wider network of colleagues in 2017. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 39

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Supplier human rights assessment Society Con t e Indicator requirement Status Indicator requirement Status xt and Appr G4-HR10 G4-DMA Percentage of new suppliers that were screened using Disclosures on management approach. human rights criteria o Disclosure ach Disclosure We aspire to run our business in an open and transparent manner and Barclays seeks to support human rights through our supply chain by therefore take a zero tolerance approach to bribery and corruption. encouraging behaviours and practices that are consistent with the Barclays Anti-Bribery and Anti-Corruption Policy and Standards objectives of the Barclays Statement on Human Rights. We welcome summarise our commitments in conducting our global activities free relationships with our suppliers as opportunities to improve and evolve from any form of bribery and corruption. practices with respect to human rights. These behaviours and practices consider specifically: Shar ■■ Occupational Health and Safety Anti-corruption ed Gr Indicator requirement Status o ■■ Freely Chosen Employment G4-SO3 wth Ambition ■■ Avoidance of Child Labour ■■ Working hours Total number and percentage of operations assessed ■■ Wages and benefits for risks related to corruption and the significant risks ■■ Employee freedom of association identified. ■■ Avoidance of discrimination Disclosure ■■ Grievance and Whistleblowing mechanisms. Barclays conducts a comprehensive Anti-Bribery and Anti-Corruption We continuously evaluate and implement laws and marketplace (ABC) Risk Assessment on an annual basis. This covers all operations globally, divided into 74 assessment units along business, functional and practices designed to avoid or mitigate negative impacts on society. geographical lines. The Risk Assessment is overseen by the Financial Gener As stated on page 34 it is a prerequisite of any prospective supplier to Crime team who monitors the completion of action plans to mitigate key al S agree to adhere to the Supplier Code of Conduct before having an risks identified. These risks tend to relate to the countries where we tandar opportunity to submit a competitive proposal. The code of conduct conduct business, how we engage certain parts of our diverse customer makes reference to a number of human rights considerations as well as base, how we manage third-party relationships or areas of our anti- d Disclosur specific reference to the Modern Slavery Act. bribery and anti-corruption control framework that require further In 2016, we established a relationship with an organisation who strengthening. specialise in driving improvements in responsible and ethical business Indicator requirement Status es practices in global supply chains. We will continue to work with this G4-SO4 partner to collect and analyse information on ethical and responsible Communication and training on anti-corruption policies business practices. and procedures. We encourage our suppliers to partner with us in achieving this goal, by Disclosure Specific S ensuring that all their employees and sub-contractors who interact with Our ABC policy applies to all businesses, functions and Barclays’ personnel, clients and customers on Barclays’ behalf, geographies globally and covers 100% of Barclays’ operations. We tandar demonstrate these Values and Behaviours. The annual supplier have a zero tolerance approach towards any form of bribery or corruption. attestation process and once every three year on-site supplier assurance The ‘Barclays Statement on Bribery and Corruption’ can be downloaded d Disclosur process for high and medium risk suppliers reinforce our expectation for from the Barclays website. home.barclays.com/citizenship/our- compliance with Human Rights and all other aspects of our supplier approach/policy-positions.html Code of Conduct. Our ABC policy, standards, procedures and training are designed to es ensure compliance with all applicable anti-bribery laws in countries in which we operate. We have a comprehensive global ABC training programme which KP consists of mandatory general awareness training delivered via the MG Assur Barclays learning management system. This training is further supplemented by role-specific enhanced ABC training (online, paper- ance S based or face to face) for areas of our business where we have identified increased ABC risks. ta t In accordance with our risk-based approach to managing ABC risk, we emen also assess whether our increased risk third parties should be required to t undertake ABC training. Indicator requirement Status G4-SO5 Confirmed incidents of corruption and actions taken. Disclosure Please see Note 29 to the Financial Statements contained in our Annual Report 2016 which outlines our legal, competition and regulatory matters. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 40

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Public policy Product responsibility Con t e Indicator requirement Status Indicator requirement Status xt and Appr G4-SO6 G4-DMA Total value of political contributions by country and Disclosures on management approach. recipient/beneficiary. o Disclosure ach Disclosure Responsible lending for retail customers The Group did not give any money for political purposes in the UK, the We support retail customers who are facing difficulties in a number of rest of the EU or outside of the EU, nor did it make any political ways. An affordability assessment takes into account the nature of the donations to political parties or other political organisations, or to any customer’s difficulties and ability to repay, to ensure that any solutions independent election candidates, or incur any political expenditure are appropriate, responsible and sustainable. during the year. For example, support for mortgage customers who meet our criteria Shar In accordance with the US Federal Election Campaign Act, Barclays could include: provides administrative support to a federal Political Action Committee ed Gr ■■ Offering short-term reductions in repayment amounts o (PAC) in the US funded by the voluntary political contributions of eligible wth Ambition Barclays’ employees. The PAC is not controlled by Barclays and all ■■ Allowing the longer-term restructuring of mortgage loans, either by decisions regarding the amounts and recipients of contributions are extending the term or reducing the interest rates. directed by a steering committee comprising employees eligible to Our teams are trained to recognise signs where customers are in contribute to the PAC. Contributions to political organisations reported financial difficulty, such as unauthorised borrowing, incurring significant by the PAC during the calendar year 2016 totalled $12,500 (2015: fees or persistent overdraft balances. This enables us to intervene at an $79,500). early stage and offer proactive advice on the best way to get out of debt We disclose on public policy engagements on a regular basis and back on track. via our website. home.barclays/citizenship/reports-and- In the UK, we help customers do this in a variety of ways, including: Gener publications/public-policy.html ■■ Reductions in minimum payment requirements for credit cards al S Compliance tandar ■■ Short-term reductions in loan repayment amounts Indicator requirement Status ■■ Longer-term plans that combine lower repayments with reduced d Disclosur G4-SO8 interest rates. Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws See the Annual Report Risk Review section for more detail on es and regulations. our forbearance programmes: home.barclays/annualreport Disclosure Policies with specific environmental and social components applied Please see Note 29 to the Financial Statements contained in our Annual Report 2016 which outlines our legal, competition and regulatory to business lines Specific S matters. Our Environmental Risk Standard barclays.com/citizenship/ our-approach/policy-positions.html applies to project related finance proposals for an asset that may give rise to environmental tandar or social risks. It is also the mechanism through which we apply the Equator Principles. These Principles are an internationally recognised d Disclosur framework for environmental and social risk due diligence in project related finance. Barclays was one of four banks to collaborate on developing the principles ahead of their launch in 2003. There are today es over 85 banks worldwide that have adopted the Equator Principles (see equator-principles.com). We consider environmental and social issues to be a mainstream KP business risk, which is why they are incorporated into our core credit MG Assur decision-making process. We are committed to undertaking environmental risk assessments of any project related finance application for more than US$10m, as stipulated by the Equator ance S Principles. We also review applications below this threshold on a ta t case-by-case basis. We have a dedicated Environmental Risk emen Management (ERM) team as a part of our Head Office Credit Risk function, together with further ERM resource in the Credit Risk function t in South Africa. In 2016, there were 410 transactions (2015: 374) reviewed in the central team, of which six were subject to scrutiny against the Equator Principles’ due diligence framework. Rigorous adherence to the provisions of the Equator Principles ensures that Barclays would only proceed with such transactions if potentially adverse environmental and impacts are appropriately mitigated. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 41

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Product responsibility In July 2016, Barclays introduced a Coal Risk Appetite to set a framework Con for our approach to the sector in the light of the global action agreed at t 1 e Project Finance screened in line with Equator Principles the 2015 Paris Climate Conference. Barclays will seek to reduce credit xt and Appr Sector Category A2 Category B3 Category C4 exposure to the thermal coal sector globally over the medium term, with Mining future transactions subject to enhanced due diligence and escalated for senior management decision. o Infrastructure 1 ach In addition, Barclays has no appetite for project financing to support the Oil & Gas construction of new coal fired power stations in developed economies, Power 2 except those employing carbon capture and sequestration technology Others which will be considered on a case-by-case basis. Region Category A Category B Category C Reflecting the diversity of our business, mitigating circumstances to the Americas overall appetite direction may include, in developing economies, the Shar support of critical power sources or where coal fired power using cleaner ed Gr Europe, Middle East & Africa 2 1 technology is part of a nationally determined plan to transition to a low o Asia Pacific carbon economy. wth Ambition Country Designation Category A Category B Category C As a result of increasingly frequent and severe flood events, Barclays UK Designated 1 Home Finance unit undertook a flood risk assessment of the mortgage book in 2014. The scope looked at portfolio exposure to properties with Non-Designated 1 1 both a high risk of flooding and the likely risk of mortgage repayment Independent Review Category A Category B Category C default. In 2016, this was revisited in light of continuing flood risk events Yes 2 1 and of the potential risk of access to flood risk insurance for residential households. The 2016 review concluded that whilst there was continued No availability of cost effective flood risk insurance, there should be a Gener continuing watching brief with further periodic flood risk reviews. Project Finance Subtotals 0 2 1 al S Project-related Corporate Loans 2 Processes for monitoring clients’ implementation of and compliance tandar Project Finance Advisory 1 with environmental and social requirements included in agreements d Disclosur 5 or transactions Services Totals 1 4 1 Our Environmental Risk Standard is supported by a toolkit for employees comprising a range of practical guidance documents. These include a es 1. This data includes Barclays Africa Group Limited (BAGL). detailed process guide, a screening tool, guidance for engaging 2. Category A – Projects with potential significant adverse social or environmental impacts consultants for environmental assessments and sample clauses for loan which are diverse, irreversible or unprecedented. documentation. We also have detailed guidance notes for sectors where 3. Category B – Projects with potential limited adverse social or environmental impacts environmental and social risks are common and specific policies on that are few in number, generally site-specific, largely reversible and readily addressed highly sensitive sectors such as power. If transactions are escalated for Specific S through mitigation measures. 4. Category C – Projects with minimal or no social or environmental impacts. further consideration at a more senior level, we will, where applicable, 5. Initial categorisation due to early stage of transaction. work with the company to mitigate the risks causing concern, build tandar environmental management requirements into contracts, or if 1 d Disclosur Other transactions appropriate action isn’t taken or the risks are deemed too high, we may Sector 2016 decline support for the finance application. Agribusiness/Food production/forestry 17 Process(es) for improving staff competency to implement the es Chemicals 13 environmental and social standards and procedures as applied to Infrastructure 78 business lines In addition to the guidance documents mentioned above, we have Manufacturing and engineering 71 provided training to a number of credit risk managers across Barclays on KP Mining and metals 66 environmental and social risk assessments, reinforcing awareness of MG Assur Oil and Gas 52 when to refer specific transactions to the specialist ERM team. Other Power 71 ance S Renewable power (biomass, hydro (dams), hydro (run of river), 36 ta t solar, tidal, wind) emen t Geography Americas 65 Europe, Middle East and Africa 263 Asia Pacific 23 Global 53 Total 404 1. This data includes Barclays Africa Group Limited (BAGL). home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 42

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Product responsibility Product and service labelling Con t e Interactions with clients/investees/business partners regarding Indicator requirement Status xt and Appr environmental and social risks and opportunities G4-PR5 Engagement with clients is on a case-by-case basis. If potential Results of surveys measuring customer satisfaction. risks associated with a particular transaction/client are highlighted o through the ERM process, our ERM team may engage with the company Disclosure ach to discuss mitigation options, where necessary build environmental The adoption of Relationship NPS, a straightforward and highly regarded management requirements into contracts, or if appropriate action is not measurement system, provides clear focus for teams across Barclays to taken or the risks are deemed too high, we may decline support for the help us achieve our ambition in 2018. Relationship NPS is a well-established finance application. On our website we provide specific examples of how measure of satisfaction and advocacy and allows us to benchmark our policy has made a difference. home.barclays.com/citizenship/ ourselves against a broad set of brands, categories and sectors. Our Group score is generated by using a weighted average rank from key our-approach/environmental-risk-in-lending.html business divisions. Shar Managing Reputation Risk At the end of 2016, Barclays was ranked fourth. We undertake NPS ed Gr o The Reputation Key Risk Framework sets out what is required to ensure surveying wherever relevant across our business. wth Ambition Reputation Risk is managed effectively and consistently across Barclays. It helps to ensure that we: protect both our franchise and brand; meet Customer privacy strengthening regulatory requirements in this area; and fulfil our aspiration to be a responsible corporate citizen. The Framework and its Indicator requirement Status related policies outline requirements of businesses and functions in G4-PR8 establishing systems and procedures for identifying and mitigating Total number of substantiated complaints regarding reputation risk – which can arise from any decision, action or inaction breaches of customer privacy and losses of customer which is perceived by stakeholders as controversial, unethical or is in data. breach of a law, regulation or policy. Disclosure Gener The Framework supports, and is applied in the context of, decision- We have robust controls in place to protect the personal data about our al S making tools such as the Barclays Lens and the Barclays Way Code of customers that we use in the course of our business activities. tandar Conduct which articulates the purpose, values and behaviours to which all employees must adhere and which are relevant to all our business Protecting personal data is a top priority and a matter that Barclays takes d Disclosur processes, practices and decisions. extremely seriously. Barclays handles privacy complaints in line with our complaints-handling procedures, and works with privacy regulators The central Reputation Management team within Corporate Relations globally to ensure we meet legal and regulatory requirements. es provides advice and guidance on implementation of the Framework and We continually review our procedures to ensure that they comply with its associated reporting. This team handles: day-to-day referrals from the international privacy laws and we have run both external and internal business on reputation risks; participates in business level committee awareness campaigns about fraud and cyber awareness to work discussions on more material risks; advises on escalation of risks to the together with customers and employees to minimise customer data Specific S Group Risk Committee or Board Reputation Committee (the highest loss. More specifically, governance body) where required; collates quarterly business and function reports on their reputation risk priorities; and engages with ■■ Barclays has formal information risk management training for all tandar NGOs and other stakeholder groups regarding Barclays position on employees potentially sensitive or controversial issues. The team receives referrals d Disclosur from businesses and functions from all regions of operation on any ■■ Cyber Champions based in 42 locations have registered as matters that may incur material reputation risk, including economic, ambassadors to spread the word about cyber security by attending environmental and social topics. The majority of queries relate to client guest speaker sessions, monthly cyber catch up calls and receive es relationships and transactions and are raised by KYC (Know Your updates around the latest threats to help protect others Customer) and relationship teams, credit risk, financial crime, sanctions ■■ to reduce our vulnerability to cyber-attacks and to become the leading and legal teams. However, a small number involve other areas e.g.: bank in cyberspace, Barclays celebrated Cybersecurity Awareness supplier or employee issues, new or existing products and services. In month in October by organising a wealth of events to help educate KP providing advice, the team consults a broad range of subject matter our staff about keeping themselves, colleagues, customers, MG Assur experts and resources and builds consensus on the best way forward. It stakeholders and the wider bank safe online through an ongoing also participates in transaction review and business unit reputation learning environment ance S committee discussions where required. The team handled 617 referrals ■■ learning resources for information security are available to all staff ta in 2016 of which approximately half were related to specific transactions. t These referrals cover a variety of high risk countries and sensitive sectors ■■ periodic staff publications on the intranet highlight the importance of emen including but not limited to defence, fossil fuels and mining. information security t ■■ recent email publications to all staff reinforced the need for vigilance with our data home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 43

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Compliance Family Springboard Mortgage Con At Barclays we know how important it is for people to buy their own t e Indicator requirement Status home, so in January 2013 we launched the Family Springboard xt and Appr G4-PR9 mortgage, responding to the significant burden high deposits placed on Monetary value of significant fines for non-compliance first time buyers and their parents. with laws and regulations concerning the provision and o use of products and services. The Family Springboard mortgage allows home buyers to secure a ach mortgage with the help from family or friends (helper), while allowing Disclosure the helper to earn interest at the same time. It is available for first time Please see Note 29 to the Financial Statements contained in our Annual buyers and home movers, moving up the property ladder, for loans of up Report 2016 which outlines our legal, competition and regulatory matters. to £500k. The borrower takes out the mortgage, while the helper puts 10% of the Product portfolio* purchase price into a Helpful Start Account – earning an attractive rate of Shar Indicator requirement Status interest. As long as the borrower keeps up their repayments, the helper ed Gr gets their money back with interest (Bank of England base rate + 1.5%). FS7* o Monetary value of products and services designed to Voice Security technology wth Ambition deliver a specific social benefit for each business line In August 2016 Barclays launched Voice Security technology to Personal broken down by purpose. and Premier customers. This technology verifies customers based solely Omissions on their voice, making it a highly secure method of verification. The Initiatives reported represent a selection of examples service is free and makes it easier for telephone banking customers to and exclude Barclays Africa Group Limited (BAGL). access their account, especially those who struggle to remember Please refer to 2016 BAGL Annual Report for details: passwords and may unwittingly make their accounts vulnerable by barclaysafrica.com/barclaysafrica/Investor-Relations/ writing them down. During a natural conversation with a Personal Announcements-and-publications/Annual-and-interim-reports. Banker we start to collect the customer’s voice print, once we have Gener Barclays UK Barclays International created the voice print the customer can register for Voice Security. Each al S Personal Banking Corporate and Investment Bank time a customer calls, the technology will compare their voice against tandar the voice print to establish if it matches, enabling customers to be ■■ Basic Bank Accounts supports the following sectors: quickly verified and gain access to their account. In 2013 Barclays was d Disclosur ■■ Family Springboard Mortgage ■■ social housing and the first European bank to launch this ground-breaking technology to ■■ Home Pathway Insurance infrastructure our Wealth clients. The feedback, both internally and externally, has been ■■ Financial and Digital Wings ■■ education incredibly positive. Following on from this successful deployment the es education platforms ■■ renewable and alternative functionality has now been rolled out to both our Personal and Premier energy customers groups. ■■ supranationals ■■ US municipalities Digital, Community and Financial Wings Specific S Financial Wings Financial Wings was launched in June 2016. It is an educational online UK Cards Consumer, Cards and Payments tool which builds the financial knowledge and confidence of customers, tandar ■■ Barclaycard Initial ■■ Anywhere, Bpay colleagues and all financial service consumers. It provides access to d Disclosur ■■ Money Worries Hub ■■ FICO service In the US industry-leading information and guidance, partnered with interactive Wealth and Investment content. This dual approach allows users to both learn, and apply their Management learning, in a safe environment. es ■■ Instant Lending for SME Community Wings ■■ Charity Fund Management Community Wings (formerly the Community Driving Licence) was ■■ Impact Investing launched in January 2014. It is an interactive learning tool that enables KP colleagues to live in our customers’ world, providing colleagues with MG Assur Barclays UK insight, skills and tools to better serve our customers, strengthen their Basic bank account relationships within their local communities. We have over 19,000 In December 2015, we launched our new Basic Current Account which colleagues using Community wings and launched new modules during ance S meets HM Treasury’s Memorandum of Understanding (MoU) on basic 2016 on critical and long term illness and on fraud and scams. ta t bank accounts. These financial inclusion accounts are available to emen anyone who does not already have a bank account or who is not eligible for a standard account. They provide over-the-counter services, access t to the ATM network and digital and telephone banking. They also offer free text alerts to help customers manage their money and stay in control of their finances. Over half a million customers are on the Barclays Basic Current Account. Note * Financial Services Sector Disclosures document home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 44

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Barclaycard Product portfolio* Barclaycard Anywhere Con t Digital Wings e Barclays Digital Wings is an online tool available to anyone to use to help Barclaycard Anywhere (BCA) is a mobile point-of-sale solution that was xt and Appr build their knowledge and confidence in the digital world. Partnering created in response to a gap in the market for card acceptance in the with technology experts, Barclays Digital Wings offers a suite of written small business customer segment. The cost effectiveness of utilising customers’ mobile technology means that the proposition appeals to a o modules covering all aspects of digital skills. In 2016, we delivered nine broad range of customers who previously would not have entered the ach new modules in Digital Wings including Cyber Security in partnership market, particularly start-ups and micro businesses who can now offer with Symantec and Making technology easier to use in association with card acceptance to their customers on a pay-as-you-go basis without AbilityNet. We also worked to revamp existing modules, and improved committing to fixed monthly terminal fees. Barclaycard research shows user experience of engaging with the platform. that 32% of people would consider walking away from a purchase if (1) Supporting vulnerable customers they could not pay by card – and 24% have done so in the past year . In our branches, Barclays’ colleagues see customers who they have Small businesses are the lifeblood of the UK economy and BCA Shar concerns about and who need help that Barclays is not able to provide. epitomises the fundamental role that Barclaycard plays in supporting ed Gr and enabling small business growth. BCA has supported 15,000 This may be concerns about the mental capacity of a customer, or o someone we worry might be a victim of financial abuse. We have set up customers to take card payments since launch in 2014. wth Ambition a pilot with Manchester Social Services to help our colleagues A new and improved service that offers Bluetooth and contactless understand when it is appropriate to engage social services about a capability will be launched shortly and this will further help the growth customer we’re concerned about. This pilot is taking place in 3 of our of small businesses. branches and running for 8 weeks, and we are evaluating the results of Barclaycard has also worked with a range of partners including Visa and the pilot to see if it has worked. Colleagues will be trained to understand the Charities Aid Foundation to trial an innovative approach to accepting when it is suitable to engage social services and how to do so, as well as contactless donations as an alternative to cash. A Barclaycard survey has information on the role of other external support agencies, such as highlighted that four in ten citizens say they carry less cash now than charities. they did three years ago, and one in ten admit to walking away from a Gener Savings Goals donation opportunity at least once last year because they were unable al S In November 2016, Barclays launched a new online Savings Goals tool to give using a debit or credit card. The solution has been trialled with 10 tandar available through Barclays Finance Manager. This new online banking national charities, including NSPCC, Oxfam and Barnardos. Results have tool aims to support customers in setting and reaching their savings been very positive and we plan to bring the solution to market in 2017. d Disclosur goals. Whether saving for something in particular, or just for a rainy day, Money Worries Hub we know that having something clear to work towards makes it easier to Financial worries are the biggest single cause of stress among UK adults es achieve. Customers can set up and personalise their savings goals online and very often people do not know where to turn for help and advice. As in three easy steps and track progress whenever they log into Online the largest issuer of credit cards in the UK, Barclaycard launched Money Banking. Throughout 2017, we will be raising awareness of Savings Goals Worries Hub, a digital tool to support customers when they find helping customers to understand the benefits of saving and how this themselves in difficult circumstances. The tool, which is available online new tool can support them. and in our mobile app uses life-like case studies of financially challenging Specific S events such as job loss, relationship changes and medical conditions. Home pathway These case studies help customers relate to situations they may be tandar Through Barclays Home Insurance, customers only pay to cover what facing and demonstrate how Barclaycard can support them when they they want. Instead of one-size-fits-all policies, we provide customers need it most. Approximately 1,000 incremental customers a month d Disclosur with the opportunity to create their own, picking the cover they need make contact with us after accessing the information. rather than paying for cover they don’t. So whether a customer is simply looking to cover a new mountain bike, or want cover for their whole Barclays Corporate and Investment Bank es house and its contents, our policies are designed to grow with them and Barclays offers financing solutions for a number of businesses and their needs and circumstances. governments that generate positive social outcomes, including We do not charge administration fees if a customer’s circumstances supranational agencies, municipalities, health care systems, universities, social housing authorities, and other not-for-profit organisations, KP change and they need to amend or cancel their cover and, unlike other among others. MG Assur insurance policies, a claim on one type of cover will not affect the premium on another when it comes to renewal. In 2016, the Corporate and Investment Bank has enabled £21.1bn in Charity Funds financing towards socially and environmentally beneficial solutions. ance S Select transactions included: ta The Barclays Charity fund was launched on 16 September 2013. It is t designed to give the ‘best of Barclays’ investment thinking to UK ■■ £20m Revolving Credit Facility (RCF) over a five-year term for emen Pembrokeshire Housing Association Limited (PHA). The RCF will allow registered charities. The fund returned 17.6% in 2016 easily meeting its PHA to develop over 440 new social housing homes over the next five t dual investment objectives of providing an income of 3.5% and inflation years and create new jobs in the construction sector by using local protection. It invests over a total of nine asset classes and combines suppliers; negative and positive screening tools. Practically, this means we have excluded direct investment in certain UK equities such as tobacco production and arms. We have also invested in a Green Bond. Where third-party funds have been used the fund manager favours those with the highest Environmental Social Governance (ESG) rating. Note * Financial Services Sector Disclosures document (1) Source: Opinium, July 2016. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 45

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Product portfolio* Indicator requirement Status Con ■■ t New homes plan for over 400 homes in central Manchester: e Mosscare, operating primarily in the Moss Side area of Manchester FS8* xt and Appr was incorporated in 1968 and has been a client of Barclays since 1984. Monetary value of products and services designed to deliver a Barclays provides banking and treasury services and capital for specific environmental benefit for each business line broken down by purpose. o development and day-to-day operations. A recently completed Omissions ach funding transaction paves the way for their ongoing development Initiatives reported represent a selection of examples and programme for over 400 properties, an increase in homes of more exclude Barclays Africa Group Limited (BAGL). than 10%. The outline plan is for a mix of affordable rent and extra Please refer to 2016 BAGL Annual Report for details: care property and a learning disability project. barclaysafrica.com/barclaysafrica/Investor-Relations/ ■■ Longhurst Group owns and manages over 18,700 homes and Announcements-and-publications/Annual-and-interim-reports.. operates in more than 45 local authority areas across the Midlands Shar and East of England. We recently helped the group restructure an Corporate and Investment Bank ed Gr existing £23m facility which was due to expire in 2017 and also ■■ Debt Finance, including Infrastructure and Project Finance o provide additional funding of £27.0m including a £25.0m Revolving ■■ Debt and Equity Capital Markets wth Ambition Credit Facility (RCF). The RCF will give them certainty of funding for a ■■ Green Bonds further period of time and spread the re-finance risk out, as well as an ■■ IB Research additional £25m capital to assist their development programme. It will ■■ Trade Finance – Sustainable Shipment Letters of Credit provide the Homes and Community Agency (HCA) with comfort that Barclays UK Longhurst Group has certainty of funding and will mean they can ■■ Lending for high growth green enterprises continue to build around 500 new social housing properties in the ■■ Impact Investing Midlands area. Treasury ■■ £18.5m revolving credit facility for new-to-bank client, Birmingham ■■ Green Bond portfolio Gener Community Healthcare NHS Foundation Trust, to support their working capital requirements and transition to Foundation Trust Barclays Corporate and Investment Bank al S status. Banks are uniquely positioned to facilitate the flow of capital towards tandar ■■ Barclays continues to be an innovator and active lender in the low and environmentally and socially beneficial activity. A range of business lines are d Disclosur moderate income housing finance space in the US. During 2016, actively involved in delivering solutions across product groups, geographies Barclays assisted the Massachusetts Housing Finance Agency in and industry sectors. Barclays supports renewable energy sector coverage raising $118 million through a combination of publically offered debt offering strategic advice to and facilitating access to finance globally in es and a private bond sale. The transaction spanned both construction wind, solar, geothermal, waste and hydro. Financing includes project and permanent financings and included an interest rate hedge to help financing, loans and bonds, convertibles, IPOs, follow-ons and private further subsidize the borrowing cost for the client. The deal provided placements and is coupled with a leading M&A advisory practice. Specifically within Cleantech coverage, Barclays has executed projects in funding for the construction and rehabilitation of six multifamily rental the following sectors: advanced materials, energy efficiency, water, Specific S housing projects totalling 801 units of housing throughout the State. manufacturing, transportation and agriculture. 613 of the apartments are affordable housing units and the remaining 214 are age-restricted units. This financing served a vital role in See pages 8-9 for further information on financing activity in 2016 tandar assisting the State ensure the availability of clean and safe housing for including Green Bonds. low and moderate income families and moreover, provide greater d Disclosur support for an underserved population. The Corporate and Investment Bank also offers more specialist solutions, such as £2m in Asset Finance to Lookers to fund sustainable green ■■ Barclays served as bookrunning senior manager for a $600 million initiatives over a relatively short payback period. Lookers is a North West es refinancing bond issued by the City of Detroit. As a result of this based motor retail group with 150 dealerships throughout the UK. transaction, the City’s interest costs were reduced by over $60 million, Heating, power and energy requirements across its network are not only of which $25 million will be realized directly by City residents over the a financial drain but place a firm dent in its green credentials. The next five years in the form of reduced property taxes and the balance finance helped activate a five-year plan to install biomass heating and KP is expected to be applied toward the City’s revitalization initiatives over cooling systems across the group, and a standalone solar panel facility in MG Assur the next three years. Additionally, the transaction allowed the City to Northern Ireland. realize administrative and operational improvements by consolidating 35 prior series of bonds into the new series. The success of this Our Corporate Banking Trade and Working Capital team in Singapore ance S has been successful in the launch of the Sustainable Shipment LC, transaction was the direct result of close coordination between the ta designed to help clients in the soft commodities sector achieve their t City of Detroit, Michigan’s Department of Treasury and Barclays, and environmental goals by certifying that goods have been produced in a emen reflects the power of governmental cooperation to improve the lives of Detroit’s residents and support the City’s post-bankruptcy recovery. sustainable way. Since then, the Barclays Sustainable Shipment product t suite has expanded and now includes documentary collections as well Barclays also offers two investment products in the socially-responsible as Letters of Credit. Barclays Sustainable Shipment products show how investment space: the Women in Leadership Index and Exchange Traded trade finance can positively influence the environment. Using a simple Note (ETNs) and the Return on Disability ETN, both listed on the NYSE adaptation to existing products and protocols, this is an innovation Arca Exchange. The Women in Leadership ETN tracks the Barclays which avoids the need for complex and expensive systems changes Women in Leadership Total Return USD Index and is designed to provide making it easy for the market to adopt. investors with exposure to US companies with gender-diverse executive leadership and governance. The Return on Disability ETNs are linked to the performance of a US Large Cap index developed in conjunction with The Donovan Group LLC and is designed to provide investors with exposure to US-based companies that have acted to attract and serve people with disabilities as customers and employees. Note * Financial Services Sector Disclosures document home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 46

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Product portfolio* Fraud and scams Con Barclays is committed to protecting our customers and has invested t Following the success of the Sustainable Shipment products, a e committee was formed ‘Sustainable Trade Finance Council’ facilitated by significantly in anti-fraud and anti-scam initiatives. As part of this, we xt and Appr Cambridge Institute of Sustainability Leadership (CISL), where Barclays have worked hard to educate not just Barclays customers but consumers is represented along with NGOs and other banks. The objective of the more generally about how they can keep themselves safe. o Council is to progress on workstreams and create awareness to banks Barclays is the only UK bank to run above the line TV advertising on ach and corporates on the importance of sustainability. The work done by scams. We have now run three adverts; one which first ran in the council has captured a lot of attention and in 2016, Global Trade January 2016 on account takeover fraud and a further two in September, Review has provided dedicated space in their magazine to provide October and November on email and text scams. Barclays also has over updates to the broader business community on what has been done. 16,000 Digital Eagles in our branches and communities who are there to China was one of the target markets and we have been very successful help anyone, whether they are a Barclays customer or not with in creating awareness on the importance of sustainable financing. information and guidance on staying safe online. Shar Please see barclayscorporate.com/content/dam/corppublic/ In addition, in 2016, Barclays delivered over 240 fraud and scam ed Gr corporate/Documents/research/Investing_in_the_environment.pdf awareness sessions working with local trading standards, the police and o other stakeholders to warn customers and the public on how to avoid wth Ambition Local communities falling victim to fraud and scams. During December we also piloted some Student Fraud Awareness Events covering fraud and scams that Indicator requirement Status affect young people at university and college. FS13* As well as investing in education, Barclays is also delivering new Access points in low-populated or economically disadvantaged innovations to better protect our customers. Barclays has over 200 areas by type. branches participating in a new banking protocol pilot that has been in Omissions operation in the London Metropolitan Police area since 24 October. Initiatives reported represent a selection of examples and The initiative is a multi-agency initiative between financial sector Gener exclude Barclays Africa Group Limited (BAGL). Please refer to organisations, Trading Standards and the police and its aim is to prevent 2016 BAGL Annual Report for details: barclaysafrica.com/ more customers from falling victim to scams whilst providing al S barclaysafrica/Investor-Relations/Announcements-and-publications/ consistency across financial institutions. Alongside supporting banking tandar Annual-and-interim-reports.. colleagues to query transactions, the protocol means colleagues who d Disclosur Our ability to support customers and clients hinges on our ability to have concerns that fraud is taking place can ring 999 and the police will reach them through the channels most convenient and useful to them. attend. The aim is that this scheme, led by the BBA, will roll out We continued with our multi-channel programme which included the nationally next year. es reshaping of our network to more closely reflect market opportunities Barclays also uses transaction profiling as a real time fraud control which and our customer base. The ongoing investment in digitization, pro-actively identifies out-of-character payments across our banking innovation, intensified focus on developing our people and reinvigorating channels. This allows us to intervene and interact with our customers to the branch and ATM networks. ensure they are happy to make the payment. In addition to this, Barclays Specific S has a dedicated team focused on preventing investment fraud, scams Personal Banking and beneficiary accounts. We have developed a series of controls to In the UK, we have analysed Economic Disadvantage/Low population detect potential victims of investment scams, allowing us to stop our tandar density using Local Authority (LA) boundaries – these divide the United Kingdom into 377 zones. We have used a combination of data sourced customers falling victim with some great successes seen in 2016. d Disclosur from poverty.org.uk (e.g. benefits claimed, pension credits, Power of Attorney and delegated access unemployment, low wages) together with populations drawn from the We have developed a tool to support colleagues when having es 2011 UK Census to identify 65 LAs that might be described as areas conversations with customers about delegating access to ensure they under economic stress. 229 of our branches (18%) are present in these help them to make the right choices to suit the support they need whilst areas, a number which has reduced by 11 in 2016 (19% of closures). maintaining their independence and control. 22% of our remote ATM estate is present in these LAs. By way of The customer experience for registering a Power of Attorney with us has KP comparison 20% of our competitors’ branches are present in these LAs. been improved by automating the process that colleagues follow in our MG Assur Our low historic branch presence in Scotland impacts the comparisons, branches. This means that in simple cases, customers can register their with Scotland having many of the lowest density LAs. Power of Attorney on the day in the branch and it will be effective Our reach into these areas of economic stress is unchanged, remaining immediately. ance S at 18% as it was at the end of 2015. ta We have also improved in the moment support for our colleagues t allowing them to answer complex questions from customers in a quicker emen Indicator requirement Status and more accurate way. Barclays has also produced a guide for new t FS14* attorneys to help them understand their roles and responsibilities and Initiatives to improve access to financial services for what we can do to support them. disadvantaged people. Omissions Initiatives reported represent a selection of examples and exclude Barclays Africa Group Limited (BAGL). Please refer to 2016 BAGL Annual Report for details: barclaysafrica.com/ barclaysafrica/Investor-Relations/Announcements-and-publications/ Annual-and-interim-reports. Note * Financial Services Sector Disclosures document home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 47

Specific Standard Disclosures Key Fully disclosed Social Partially disclosed Not disclosed Local communities Con t Mobile Banking app accessibility e Barclays mobile banking, Pingit and the Barclaycard mobile apps on the xt and Appr Apple operating platform have been re-accredited by external accessibility experts AbilityNet for the second year running – highlighting o our efforts to ensure that we deliver the best experiences to the ach broadest customer base possible – particularly disabled and older users. In 2016, we have also broadened accessibility accreditations to include the Barclays Mobile Banking and PingIt Android apps. It gives us greater assurances that our mobile channels are accessible to all, including disabled and older people as well as the external recognition that we are serious and committed to the accessibility agenda. Shar Accessibility Digital Wings module ed Gr We recognise that in addition to digital inclusion programmes, there is a o growing need to ensure all individuals can make the most of digital wth Ambition technologies and are armed with the know-how to adjust accessibility settings to make their IT easier to see, hear, understand and use. In association with AbilityNet, we launched the Making technology easier to use Digital Wings module (digital. wings.uk.barclays/making-technology-easier-to-use-in-association- with-abilitynet/) – a free online learning resource containing engaging videos and guidance. By up-skilling customers on digital accessibility and educating them on how best to optimise the technology they use, Gener we are supporting all customers to become digitally included and al S empowered regardless of their age or abilities. tandar B2B Accessibility portal d Disclosur We launched the Corporate Bank B2B Accessibility portal (barclayscorporate.com/insight-and-research/managing- your-business/making-your-business-accessible.html), providing es information and inspiration to other businesses on why accessibility matters to Barclays and society at large, including useful case studies and best practices from us and other organisations. We also open- source our accessibility standards and other useful resources on our Specific S supplier code of conduct site, helping to ensure that suppliers are clear on what we expect and require. tandar Simpler security We implemented a number of inclusive customer service enhancements d Disclosur throughout 2016 such as Barclays Mobile Banking fingerprint touch authentication – making customers’ lives easier. We recognize that PINs es and passcodes can be a real barrier for those with sight, dexterity, dyslexia or memory difficulties through consultation. High visibility cards, audio cash machines and Sign Video KP Barclays continues to provide and see demand for our high visibility MG Assur debit cards, our audio cash machines and our SignVideo service for customers who use British Sign Language. bPay ance S ta bPay is a range of contactless payment devices, based around a pre-paid t account that links to most major credit or debit cards. bPay works like a emen contactless card and can be used to pay for anything under £30. bPay t may be helpful for people with dexterity problems, sight loss or conditions such as dyslexia who may find chip and pin and chip and card transactions more challenging. We have been working to raise awareness of this product and its potential accessibility benefits. home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 48

KPMG Assurance Statement Independent Limited Assurance Report to Barclays PLC KPMG LLP (‘KPMG’ or ‘we’) were engaged by Barclays Bank PLC to provide Assurance standards applied limited assurance to Barclays PLC (‘Barclays’) over the Selected Information We performed our work in accordance with International Standard on described below for the reporting year ended 31 December 2016. Assurance Engagements 3000 – ‘Assurance Engagements other than Audits or Reviews of Historical Financial Information’ (‘ISAE 3000’) and, Our conclusion in respect of the greenhouse gas emissions information included within Based on the work we have performed and the evidence we have the Selected Information, in accordance with International Standard on obtained, nothing has come to our attention that causes us to believe Assurance Engagements 3410 - ‘Assurance Engagements on that the Selected Information has not been properly prepared, in all Greenhouse Gas Statements’ (‘ISAE 3410’), issued by the International Con material respects, in accordance with the Reporting Criteria. Auditing and Assurance Standards Board. t e This conclusion is to be read in the context of the remainder of this The work performed in a limited assurance engagement varies in nature and xt and Appr report, in particular the inherent limitations explained below and this timing from, and is less in extent than for, a reasonable assurance engagement. report’s intended use. Consequently, the level of assurance obtained in a limited assurance o engagement is substantially lower than the assurance that would have been ach Selected Information obtained had a reasonable assurance engagement been performed. The scope of our work includes only the information included within the Barclays Environmental Social Governance Supplement (‘the Report’) for Independence, professional standards and quality control the reporting year ended 31 December 2016 marked with the symbol ∆, We comply with the Code of Ethics for Professional Accountants issued by Ω or (‘the Selected Information’). the International Ethics Standards Board for Accountants and we apply the We have not performed any work, and do not express any conclusion, International Standard on Quality Control (UK and Ireland) 1, ‘Quality Control Shar for Firms that Perform Audits and Reviews of Historical Financial Information, over any other information that may be displayed in the Report or on and Other Assurance and Related Services Engagements’. Accordingly, we ed Gr Barclays’ website for the current year or for previous periods unless o otherwise indicated. maintain a comprehensive system of quality control including documented wth Ambition policies and procedures regarding compliance with ethical requirements and Reporting Criteria professional standards (including independence, and other requirements The Reporting Criteria we used to form our judgements are: founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour) as well ■■ The Shared Growth Ambition 2016 Reporting Framework for the as applicable legal and regulatory requirements. Selected Information marked with the symbol ; ■■ the Global Reporting Initiative (‘GRI’) G4 reporting principles for Summary of work performed defining report quality as set out at https://www.globalreporting.org Considering the level of assurance and our assessment of the risk of for the Selected Information marked with the symbol Ω; and material misstatement of the Selected Information, whether due to fraud Gener or error, our work included, but was not restricted to: ■■ Barclays LifeSkills Reporting Guidelines as set out at al S www.barclayslifeskills.com/reporting for Selected Information marked ■■ assessing the appropriateness of the Reporting Criteria for the tandar with the symbol . Selected Information; d Disclosur The Selected Information needs to be read together with the Reporting Criteria. ■■ conducting interviews with Barclays management to obtain an understanding of the key processes, systems and controls in place Inherent limitations over the preparation of the Selected Information; es The nature of non-financial information; the absence of a significant ■■ agreeing a selection of the Selected Information to the corresponding body of established practice on which to draw; and the methods and source documentation; precision used to determine non-financial information, allow for different, ■■ performing analytical review procedures over the aggregated Selected but acceptable evaluation and measurement techniques and can result Information, including a comparison to the prior year amounts having Specific S in materially different measurements, affecting comparability between due regard to changes in business volume and the business portfolio; entities and over time. ■■ agreeing a selection of processes from the Barclays Materiality Process In particular, for the Selected Information marked with the symbol the Description to the corresponding supporting documentation; tandar method of collecting data on the number of participants could allow for ■■ consideration of a selection of Barclays processes for the identification, d Disclosur some double-counting of participants. Barclays apply estimation techniques prioritisation and validation of relevant material issues, including to adjust for the effect of any such double-counting. The cumulative attendance at, and inspecting the output of, selected Barclays number of participants since inception of the scheme will include a number stakeholder workshops; es of participants who are no longer involved in the scheme. It is not an indication of the number of active participants at 31 December 2016. ■■ for the Selected Information marked with a symbol agreeing the brought forward cumulative number of participants as at 31 January Directors’ responsibilities 2016 to previously reported Selected Information; and ■■ KP The Directors of Barclays are responsible for: reading the Report and narrative accompanying the Selected MG Assur Information in the Report with regard to the Reporting Criteria, and for ■■ designing, implementing and maintaining internal controls relevant to consistency with our findings. the preparation and presentation of the Selected Information that is ance S free from material misstatement, whether due to fraud or error; This report’s intended use ta ■■ selecting and/or developing objective Reporting Criteria; This assurance report is made solely to Barclays in accordance with the t terms of the engagement contract between us. Those terms permit emen ■■ measuring and reporting the Selected Information in accordance with the Reporting Criteria; and disclosure to other parties, solely for the purpose of Barclays showing t that it has obtained an independent assurance report in connection with ■■ the contents and statements contained within the Report and the the Selected Information. Reporting Criteria. We have not considered the interest of any other party in the Selected Our responsibilities Information. To the fullest extent permitted by law, we accept no Our responsibility is to plan and perform our work to obtain limited responsibility and deny any liability to any party other than Barclays for our assurance about whether the Selected Information has been prepared in work, for this assurance report or for the conclusions we have reached. accordance with the Reporting Criteria and to report to Barclays in the form of an independent limited assurance conclusion based on the work performed and the evidence obtained. Paul Holland for and on behalf of KPMG LLP Chartered Accountants London 23rd February 2017 home.barclays/annualreport Barclays PLC Environmental Social Governance Supplement 2016 • 49

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