BARCLAYS PLC

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 20-F

(Mark One)

OR

For the fiscal year ended 31 December 2025

OR

For the transition period from _______________to _______________

Date of event requiring this shell company report _______________

BARCLAYS PLC

(Exact Name of Registrant as Specified in its Charter)

England

(Jurisdiction of Incorporation or Organization)

1 CHURCHILL PLACE, LONDON E14 5HP, England

(Address of Principal Executive Offices)

KATHRYN ROBERTS,+44 (0)20 7116 3170, KATHRYN.ROBERTS@BARCLAYS.COM

1 CHURCHILL PLACE, LONDON E14 5HP, England

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

• Not for trading, but in connection with the registration of American Depository Shares, pursuant to the requirements to the Securities and

Exchange Commission.

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by

the annual report.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or

15(d) of the Securities Exchange Act of 1934.

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Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been

subject to such filing requirements for the past 90 days.

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has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided

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to its Accounting Standards Codification after April 5, 2012.

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(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections12, 13 or 15(d) of the

Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes ¨ No ¨

SEC Form 20-F Cross reference information

• Captions have been included only in respect of pages with multiple sections on the same page in order to identify the relevant caption on that page covered by the

corresponding Form 20-F item number.

2025 Annual Report on Form 20-F

Notes

The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis

compares the year ended 31 December 2025 to the corresponding twelve months of 2024 and balance sheet analysis as at 31 December 2025

with comparatives relating to 31 December 2024. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds

Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; and the

abbreviations ‘€m’ and ‘€bn’ represent millions and thousands of millions of Euros respectively.

There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to

ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time.

Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting

Standards (IFRS) are explained in the results glossary that can be accessed at home.barclays/investor-relations/reports-and-events/latest-

financial-results.

Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings.

Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to

discuss these results and other matters relating to the Group.

The Group's management believes that the non-IFRS performance measures included in this document provide valuable information to the

between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most

directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating

targets are defined and performance is monitored by Barclays management. 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 to the appendix on pages 330 to 334 for

further information and calculations of non-IFRS performance measures included throughout this document, and the most directly

comparable IFRS measures.

Key non-IFRS measures included in this document, and the most directly comparable IFRS measures, are:

•Average allocated equity represents the average shareholders’ equity that is allocated to the businesses. The comparable IFRS measure is

average equity. A reconciliation is provided on page 332;

•Average allocated tangible equity is calculated as the average of the previous month’s period end allocated tangible equity and the current

month’s period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages

within that period. Period end allocated tangible equity is calculated as 13.5% (2024: 13.5%) of RWAs for each business, adjusted for

capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Group uses for capital planning purposes.

Head Office allocated tangible equity represents the difference between the Group’s tangible shareholders’ equity and the amounts

allocated to businesses. The comparable IFRS measure is average equity. A reconciliation is provided on page 332;

•Average tangible shareholders’ equity is calculated as the average of the previous month’s period end tangible equity and the current

month’s period end tangible equity. The average tangible shareholders’ equity for the period is the average of the monthly averages within

that period. The comparable IFRS measure is average equity. A reconciliation is provided on page 332;

•Group net interest income (NII) excluding Barclays Investment Bank (IB) and Head Office represents Group NII excluding IB NII and

Head Office NII. The comparable IFRS measure is Group NII. A reconciliation is provided on page 333;

•Operating expenses excluding litigation and conduct represents operating expenses excluding litigation and conduct charges. The

comparable IFRS measure is operating expenses. A reconciliation is provided on page 333;

•Return on average allocated equity represents the return on shareholders’ equity that is allocated to the businesses. The comparable IFRS

measure is return on equity. A reconciliation is provided on page 334;

•Return on average allocated tangible equity is calculated as the annualised profit after tax attributable to ordinary equity holders of the

parent, as a proportion of average allocated tangible equity. The comparable IFRS measure is return on equity. A reconciliation is

provided on page 334;

•Return on average tangible shareholders’ equity is calculated as the annualised profit after tax attributable to ordinary equity holders of

the parent, as a proportion of average shareholders’ equity excluding non-controlling interests and other equity instruments adjusted for

the deduction of intangible assets and goodwill. The comparable IFRS measure is return on equity. A reconciliation is provided on page

334; and

•Tangible net asset value per share is calculated by dividing shareholders’ equity, excluding non-controlling interests and other equity

instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The comparable IFRS measure is net asset value

per share. A reconciliation is provided on page 333.

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

forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures

could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that

they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’,

‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar

meaning. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the

Group (including during management presentations) in connection with this document. Examples of forward-looking statements include,

among others, statements or guidance regarding or relating to the Group’s future financial position, business strategy, income levels, costs,

assets and liabilities, impairment charges, provisions, capital leverage and other regulatory ratios, capital distributions (including policy on

dividends and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any

commitments and targets (including sustainability-related commitments and targets), plans and objectives for future operations, International

Financial Reporting Standards ('IFRS') and other statements that are not historical or current facts. By their nature, forward-looking

statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at

the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes

in legislation, regulations, governmental and regulatory policies, expectations and actions, voluntary codes of practices and the interpretation

thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and

emerging and developing sustainability reporting standards (including emissions accounting methodologies); changes in tax laws and

practice; the outcome of current and future legal proceedings and regulatory investigations; the Group’s ability along with governments and

other stakeholders to measure, manage and mitigate the impacts of climate change effectively or navigate inconsistencies and conflicts in the

manner in which climate policy is implemented in the regions where the Group operates, including as a result of the adoption of rules and

regulations taking a different or opposing position on sustainability matters, or other forms of governmental and regulatory action against

sustainability policies; environmental, social and geopolitical risks and incidents and similar events beyond the Group’s control; financial

crime; the impact of competition in the banking and financial services industry; capital, liquidity, leverage and other regulatory rules and

requirements applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including

inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; reforms to

benchmark interest rates and indices; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any

securities issued by it; changes in counterparty risk; changes in consumer behaviour; changes in trade policy, including the imposition of

tariffs or other protectionist measures; the direct and indirect consequences of the conflicts in Ukraine and the Middle East on European and

global macroeconomic conditions, political stability and financial markets; changes in US legislation and policy; developments in the UK’s

relationship with the European Union; the risk of cyberattacks, information or security breaches, technology failures or operational

disruptions and any subsequent impact on the Group’s reputation, business or operations; the use of new technology, including artificial

intelligence; the Group’s ability to access funding; and the success of acquisitions, disposals, joint ventures and other strategic transactions.

A number of these factors are beyond the Group’s control. As a result, the Group’s actual financial position, results, financial and non-

financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or

guidance set forth in the Group’s forward-looking statements. In setting its targets and outlook for the period 2026-2028, Barclays has made

certain assumptions about the macroeconomic environment, including, without limitation, inflation, interest and unemployment rates, the

different markets and competitive conditions in which Barclays operates, and its ability to grow certain businesses and achieve costs savings

and other structural actions. Additional risks and factors which may impact the Group’s future financial condition and performance are

identified in Barclays PLC’s filings with the US Securities and Exchange Commission ("SEC") (including, without limitation, this Barclays

PLC Annual Report on Form 20-F for the financial year ended 31 December 2025), which are available on the SEC’s website at

www.sec.gov.

Subject to Barclays PLC's obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation,

the UK and the US) in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-

looking statements, whether as a result of new information, future events or otherwise.

Market and other data

This document contains information, including statistical data, about certain Barclays markets and its competitive position. Except as

otherwise indicated, this information is taken or derived from Datastream and other external sources. Barclays cannot guarantee the accuracy

of information taken from external sources, or that, in respect of internal estimates, a third party using different methods would obtain the

same estimates as Barclays.

Uses of Internet addresses

This document contains inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made

for information purposes only, and information found at such websites is not incorporated by reference into this document.

References to Strategic Report and Pillar 3 Report

This document contains references throughout to the Barclays PLC Strategic Report and Pillar 3 Report. References to the aforementioned

reports are made for information purposes only, and information found in said reports is not incorporated by reference into this document.

Our business environment

The world in which

we operate

Barclays is driven by a common Purpose: working

together for a better financial future. To do so, we must

be strong as an institution, prepared for the future,

and able to navigate different market conditions and

evolving trends.

Broader considerations in our operating environment

In the development of our strategy and the evolution of our operating model, we regularly review and reflect on the changing environment in which we operate. Our plan is designed to remain resilient amid ongoing volatility and uncertainty, while meeting the needs of our wider stakeholders – including customers, clients, regulators, and shareholders.

Geopolitical

•Ongoing geopolitical conflicts

•Rising protectionism and influence on trade flows

•Political polarisation

Macroeconomic

•Economic uncertainty and subsequent volatility

•Disintermediation of existing markets

•Demographic and immigration trends

•Focus on defence spending

Climate

•Energy transition and security

•Changing climate cycles and associated physical risks

Technology

•Adoption of AI and increasing cyber security threats

•Customer expectations regarding digital experience and resilience

•Traction of crypto and digital assets

Regulatory

•Regulatory divergence

•Implementation of capital regulations

Our business model

Working together for

a better financial future

Our universal banking model enables us to create synergies

across the organisation and deliver

long-term value for our stakeholders.

...to serve a broad range of customer and client needs...

We provide a comprehensive offering through UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a specialist US consumer bank.

Lending We lend to customers and clients to support their needs.

ProtectingWe ensure the assets of our clients and customers are safe.

Investing and advisingWe help our customers and clients invest.

MovingWe facilitate transactions and move money around the world.

Connecting We connect companies seeking funding.

…deliver sustainably higher returns…

We seek growth and stability of income, delivering cost efficiencies, prudent risk management, and efficient allocation of our resources.

Total income by business (£m)

Profit before tax (PBT) by business (£m)

Excludes Head Office.

Excludes Head Office.

Supercharging our strategy

through technology

Innovating for customers and clients

For customers and businesses, our investment translates into real benefits. From more intuitive digital experiences that make everyday banking simple, to faster onboarding so new customers can get started without delay, stronger fraud protection to keep accounts safe, and richer market insights to help businesses grow.Technology, including AI, is enabling us to deliver seamless, connected services that anticipate customer and client needs and provide faster, more personalised, more intuitive services.

AI Help Hub Assistant

In Barclays UK, our newly introduced AI-powered Help Hub Assistant supports colleagues in delivering exceptional customer service. This conversational tool gives colleagues instant access to accurate information as they support customers in-the-moment.

Technology is at the heart of Barclays’ ambition

to be Simpler, Better and More balanced

Modernising our technology

We’re focused on consolidating and simplifying our estate by investing in enterprise-wide platforms across infrastructure, data and digital.This focus on common platform adoption is supported by decommissioning legacy platforms to reduce technology debt, complexity and cost, whilst strengthening resilience.

We’re investing in modern tools and smarter systems

so we can deliver better and more personal experiences

for our customers and clients, while strengthening our

resiliency and reducing complexity and cost.

Empowering our colleagues

Our teams have access to modern tools like Copilot and the Barclays AI platform to help them make better decisions, collaborate more effectively across regions and focus on higher value activities. We're also fostering a culture of experimentation and collaboration. Through hackathons, demos and other interactive events we've reached over 20,000 colleagues, empowering them to experiment to deliver scalable solutions that drive sustainable growth and value for our customers and clients.

AI for colleagues

M365 Copilot is Microsoft's AI-powered assistant and we have c.100,000 licences for colleagues across the bank to help improve productivity and encourage innovation. In addition, we’re investing in our Barclays AI platform, which provides a common set of services for the responsible development, deployment and operation of AI solutions.

Driving innovation through partnerships

We’re working with leading technology partners, including Amazon Web Services, Microsoft, GitLab and Databricks, to harness data, digital and AI. These collaborations also shape thinking on AI, innovation and industry standards; for example, in November 2025 Barclays was recognised as one of the inaugural Frontier Firms – an initiative by Harvard Business School and Microsoft that brings together organisations putting AI at the heart of their transformation strategy.

AI for engineers

Through our partnerships we’re embracing AI across our software development tools to enable developers to plan, develop and deploy new technologies at pace and responsibly. Across Barclays, 19,000 developers have access to AI tools, with early-stage adoption already delivering productivity gains of c.15%.

Hybrid cloud strategy

Our hybrid cloud strategy - where we use both internal and external services - helps to build resilience, reliability, agility, and improved operational performance across our technology. Today, we have almost 90% of our estate in the cloud. This hybrid multi-cloud environment provides flexibility, scalability and the control needed for future growth, underpinning our data, AI and digital-platform capabilities.

Our plan and targets

Delivering our next

three-year plan

We have a clear plan to deliver a better run,

more strongly performing and sustainably

higher returning Barclays.

Simpler

Simpler businessFive focused businessesDigital and AI enabling revenue growth and efficiencies

Simpler organisationStandardised, modernised, harmonised processes

Simpler operationsResilient, reliable, secure systems

Better

Better financial returnsContinue to improve performance across all our businessesImproving mix towards UK businesses

Better customer experience and outcomesImproving customer experience across businesses Deepening relationships in corporates and retail

More balanced

More balanced allocation of RWAsCapital allocation to our highest returning businessesUK lending growth to diversify sources of net interest incomeCapital discipline in Investment Bank

Diversify sources of income growth Invest in fee-based income growth

Notes:

1 Management does not assess forward-looking “return on equity” (target RoE) as a performance indicator of the business,

and therefore reconciliation of the forward-looking non-IFRS measure “return on tangible equity” (target RoTE) to an

equivalent IFRS measure is not available without unreasonable efforts.

2 This multiyear plan, including planned dividend of £2bn for 2026,is subject to supervisory and Board approval, anticipated

financial performance and our published CET1 range of 13%-14%.

3 Progressive increase in 2026 total capital returns versus 2025.

4 Updated to reflect IRB model migration and Basel 3.1 now expected in 2027.

Group overview

A diversified structure

promoting synergies

Our five business areas deliver greater accountability and

transparency for our shareholders while supporting synergies across

the Group that allow us to better serve our customers

and clients.

Barclays PLC

UK

Our ring-fenced UK retail banking

division, trusted by over 20 million

customers. Barclays UK includes

Retail Banking which helps

customers with their day-to-day

banking needs, and Business

Banking which serves

business clients from

start-ups to companies with up

to £6.5m annual turnover.

UK Corporate

Bank

Providing financial andadvisory

capabilities to power the UK’s mid

to large corporates with over

£6.5m annual turnover through to

FTSE350 companies. Barclays UK

Corporate Bank has a relationship

with over a quarter of UK

corporates.

Barclays Private

Bank and Wealth

Management

Our Private Bank offers a

full-service proposition supporting

clients in the wealth hubs and

corridors across the UK, Europe,

Middle East and Asia. Our UK wealth

offering provides a range of financial

planning and advice services, as well

as our digital investing service,

Smart Investor 1.

Investment

Bank

Incorporates leading Global

Markets and Investment Banking

franchises operating at scale,

including International Corporate

Banking, serving multinational

corporate and institutional

clients globally.

US Consumer

Bank

Offering co-branded partner

cards, deposit accounts

and personal loans. With more

than 25 million customers, we work

with some of America's leading

brands across the airline, travel,

retail and affinity sectors.

Head Office 2

2025 RWA allocation

£357 bn

Notes:

1 Smart Investor will be known as Barclays Direct Investing.

2 Head Office provides centralised services across the Group.

2025 divisional review

Barclays UK is one of the country’sleading

financial brands. We are committed to putting

customers first – powered by the expertise and

passion of our people, and strengthened by

technology. Our multi-brand proposition - which

includes Barclaycard, Tesco Bank, Kensington

Mortgages and relationships with Amazonand

IAG Loyalty (to offer Avios benefits) - reflects the

broad range of solutions we offer customers. Our

2025 performance demonstrates Barclays UK’s

strength, delivering a RoE of 15.5% and RoTE of

20.7%.

Customers and clients remain at the heart of

everything we do. This year, we enhanced

experiences and deepened relationships. We

extended opening hours across 86 branches, adding

c.33,500 hours per year of in-branch availability to

support customers at times that work for them. A

significant increase in our channel transactional

Net Promoter Score (tNPS) - which measures

customer satisfaction across our retail colleague-

led channels -since 2023 reflects the high level of

support our colleagues give our customers. This

now stands at +61 for branch servicing.

Technology and digitisation play an important role

in helping us better serve our customers and

clients. Within Barclays UK, a significant amount

of innovation is driven by our teams, leading to

faster response times provided by the tools and

technology our colleagues use every day.

We also used technology to make it easier for our

customers to save. We redesigned our Savings

Hub, making it simpler to find and choose the right

products. Our customers can now digitally provide

instructions on maturing bonds through the app in

just a few minutes.

Notes:

1 Three month rolling average for December 2025.

A key focus for Barclays UK is to grow lending to

individuals and businesses, and we have continued

to make progress.

We are making our mortgage application process

simpler and helping more customers achieve home

ownership. We relaunched Mortgage Boost,

enabling customers to support family members to

get onto the property ladder beyond just helping

with a deposit – another option alongside our

Family Springboard offering. Ahead of the 1 April

2025 stamp duty changes, we processed over

14,000 completions in March alone. In total, we

supported 146,000 mortgage completions, the

highest since 2021 and an increase of 42% on

Loans acquisitions have increased 4% year-on-year

driven by more relevant, in-the-moment marketing

and improved decisioning capabilities.

For the second year running, we have onboarded

over one million new Barclaycard customers and

provided existing customers with improved

journeys and capabilities, including the option to

switch to the Amazon Barclaycard.

"Our efforts to enhance

customer and client service

have helped improve NPS

scores - with Barclays UK

NPS reaching +252,

the highest since we

started tracking."

Vim Maru

CEO, Barclays UK

One year since the Tesco Bank acquisition, we are

making good progress on the integration and have

grown credit card and personal loan balances by

continuing to offer value to customers through

Clubcard.

Business Banking contributed to the UK business

landscape by lending £3bn to small businesses. We

also celebrated 10 years of Eagle Labs, which has

supported almost 20,000 businesses that have

collectively secured over £5bn in investment and

created more than 50,000 jobs 1 over the course of a

decade.

We remain focused on improving our products and

services to deliver a world-class experience for

customers and clients. We will continue to enhance

how customers interact with us, making banking

simpler and more intuitive across personal and

business channels. Technology, AI and innovation

will play a key role, helping us to streamline

processes, strengthen resilience, offer a better

experience on our digital channels and support

colleagues in providing exceptional service.

We seeopportunities to grow retail deposits and

lending, and business bankingby deepening

engagement and relationships, and building

stronger propositions. In particular, we are focused

on growing our Premier customer base.

Completing the Tesco Bank integration will allow

us to broaden our reach and create greater value for

customers. We are also committed to helping

people manage their money better to achieve their

goals, and are focused on building people's

financial confidence across the UK.

Notes:

1 Source: Beahurst, for businesses supported by Eagle Labs

between December 2015 to September 2025.

Barclays UK Corporate Bank serves over 13,000

businesses across the UK, playing an important

role in joining together the different aspects of the

organisation to deliver for clients.

In 2025, the UK Corporate Bank delivered robust

income growth of 16% underpinned by a strong

deposit franchise and growing debt balances. RoE

was 18.9% and RoTE was 18.9%, and we

maintained a disciplined cost-to-income ratio,

ensuring operational efficiency.

Throughout the year, we responded proactively to a

competitive market. By adapting to evolving client

needs and maintaining our focus on providing

lending to help our clients to invest, we positively

repositioned ourselves among peers and grew

lending market share by 1%1.

In 2025, we attracted c.580 new to bank clients

who drove c.50% of the increase in lending

compared to 2024.

This focus enabled us to achieve total loan growth

of £4.6bn for the year. Despite our growth in

lending, our loan loss rate remains well within our

stated risk appetite and guidance.

Our willingness to lend plays a crucial role ingiving

UK businesses the confidence to invest in their

workforce and technology, helping in turn to unlock

economic growth.

We made strides in enhancing client experience by

advancing our digital capabilities and streamlining

processes. Clients now have more opportunities to

self-serve through digital channels, including our

‘Client Chat’ capability, which resolves a significant

number of queries atfirst contact. In 2025, c.50% of

client interactions were self-served, compared to

c.40% in 2024.

Notes:

1 Bank of England December 2025 market data.

We’ve also reduced client onboarding times by

around 50% since the start of 2024 and, in response

to client feedback, we have improved the speed,

ease, and flexibility of our borrowing solutions,

with further enhancements planned

for 2026.

To strengthen client relationships and support

diversified income streams, we’ve invested

significantly in modernising our technology.

Our iPortal platform, which is now available to

more clients, has simplified how they interact with

us – a key step towards consolidating five online

access channels to a single online point of access to

our products and services. All our corporate clients

will be enabled on iPortal through 2026.

Our focus on deepening relationships and our

efforts to improve experience have been reflected

in improved client satisfaction scores. Measured as

an independent benchmarking score by Savanta,

our overall client satisfaction score has increased to

66%, up four percentage points from 2024 and 10

percentage points from 2023. Satisfaction scores

relating to our client-facing colleagues are also

strong, placing us second among our peers 1.

In April 2025, we announced a long‑term strategic

partnership with Brookfield to grow and transform

Barclays’ payment acceptance business, which

provides critical infrastructure to the UK economy,

processing billions of pounds of payments annually

for small businesses and corporate clients.

Our extensive client relationships and experience

of UK payments will benefit from Brookfield’s

global private equity expertise in payments,

technology, operational transformation and

corporate carve-outs, to ensure that the payment

acceptance business is strategically positioned for

long‑term growth. The partnership will drive

business growth by broadening the range of

services offered and enhancing the experience for

both existing and prospective clients.

We will continue to deepen client relationships,

accelerate digital transformation and improve

operational efficiency. We are focused on

enhancing our product mix, strengthening income

quality and driving technology-led improvements

in client experience.

Efforts will be shaped by the evolving market

environment, with an emphasis on adapting to

client needs, regulatory changes and competitive

pressures. We will continue to simplify processes,

invest in talent and leverage data-driven insights to

support growth and resilience.

"Our willingness to lend

plays a crucial role in

giving UK businesses the

confidence to invest in their

workforce and technology,

helping in turn to unlock

economic growth."

Matt Hammerstein

CEO, Barclays UK Corporate Bank

Notes:

1 SavantaMarket Vue Survey, Q4 2025.

PBWM’s vision is to be the investment partner for

our clients, their families and the next generation.

In 2025, financial markets witnessed trade and

geopolitical volatility, and strong tailwinds driven

by AI – investors looked to take advantage of

volatility spikes while diversifying risk. For

PBWM, this led to strong transactional activity

supported by increased trading on our digital

investing offering, continued inflows into multi-

asset portfolios, and alternative strategies such as

private markets and hedge funds.

Our ability to support clients in such environments

sustained our strong business performance. Assets

under management grew by £5.2 bn and PBWM

overall achieved a RoE of 24.3% and RoTE of

26.3%.

At the start of 2025, PBWM simplified its business

model to operate through two core areas: PBWM

UK and PBWM International. Throughout the

year, there were a series of strategic hires to

strengthen the business.

In our UK Digital Investing business, we further

enhanced client journeys and investment

capabilities on our Smart Investor platform. These

changes continued to support growth, with

c.65,000 new accounts opened in 2025, up 11%

year on year and up 169% compared to 2023

levels. In addition, we were awarded Best Stocks &

Shares ISA Provider from Moneyfacts and

received a ‘Value for Money’ consumer rating

from Boring Money.

Notes:

1 The lower end threshold is under review.

2 For India, the Private Bank proposition is available for

clients with investable assets of £3m+.

In UK Affluent, we launched a pilot of a new

digitally enabled mass affluent proposition –

focused initially on Barclays UK Premier clients

with £250k-£1m in assets to invest. Our ambition

is to provide a fairly priced, transparently

constructed advice service addressing the needs of

this segment.

In our UK Private Bank, we expanded our Private

Markets proposition with the launch of a new

multi-vintage private equity fund and made it

easier for clients to use our securities backed

lending capability. In addition, we continued to

grow our assets under management in our flagship

funds and discretionary managed portfolios, and

maintained their strong underlying long-term

investment performance.

Internationally, we have been focused on building

our presence in the Middle East and Asia. In order

to further support our international capabilities, we

continue to progress the development of our new

Singapore booking centre, which we intend to

launch during 2026.

Underpinning all of our strategic ambitions is a

continued focus on improving our risk and control

resilience, including by increasing our automation

levels.

Within UK Digital Investing, we're committed to

delivering an integrated digital SIPP (self-invested

personal pension). Following the completion of our

pilot, we're launching our new UK mass affluent

proposition, starting with Barclays UK Premier

customers. We will also focus on supporting retail

investing through the launch of Targeted Support

following the FCA’s Advice Guidance Boundary

Review.

Within the Private Bank we will continue to

enhance our client experience, focusing on our

digital capabilities, as well as further expanding

our credit proposition. We're investing in

productivity and generative AI (GenAI)

capabilities that support our front-line colleagues

so they canspend more time with clients. We plan

to expand our international business with further

investments in the Middle East and Asia markets,

including the launch of our new Singapore booking

centre.

"We have continued to

strengthen our capabilities

and service this year,

supporting clients across the

UK and in priority

international markets.”

Sasha Wiggins

CEO, Barclays Private Bank and Wealth Management

Barclays has a top-tier Investment Bank supporting

corporate and institutional clients around the world.

In 2025, we maintained our rank of sixth across the

Investment Bank in both Global Markets 2 and

Investment Banking 3. We are a leading non-US-

domiciled bank that can consistently compete with

its US peers in each of the major capital markets of

the US, Europe, and Asia. Through our expertise,

scale, and reach, we support global clients and help

them achieve their commercial goals.

The Investment Bank delivered a RoE of 10.6% and

RoTE of 10.6% and remained disciplined on costs

with consistent operational progress, following

seven consecutive quarters of positive jaws leading

to a cost-to-income ratio of 62%.

RWAs remained stable for the fourth consecutive

year. We grew income and improved return on

RWAs by focusing on more stable income streams

and on disciplined client management, capital

deployment, and technology enhancements to

improve client experience, such as BARXBot, a

client-facing GenAI chatbot that automates how

colleagues in Global Markets handle Requests for

Quotes (RFQs) for clients.

Notes:

1 Top 5 market share as defined in the 20 February 2024

Investor Update: 1H23 and FY19 Coalition Greenwich

Global Competitor Analytics. Industry wallet is defined

as the total revenue of the following banks: BofA,

Barclays, BNP Paribas, Citigroup, Credit Suisse,

Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan

Stanley and UBS. Analysis is based on Barclays’ internal

business structure and internal revenues. Market share for

purpose of this analysis is calculated as Barclays’ internal

revenues divided by the aggregate revenue of the banks

identified above within the given product set.

2 Based on external reported revenues. Peer banks include

BoA, BNP, CITI, DB, GS, JPM, MS and UBS.

3 Dealogic for the period 1 January 2025 to 31 December

2025 (as at 6 January 2026).

"Our relentless client focus,

trusted expertise, and fully

integrated model allow us

to better understand client

needs and deliver tailored

products and services to

help them succeed."

Adeel Khan

Head of Global Markets

The Investment Bank helped clients navigate a

complex, evolving landscape throughout 2025 - one

shaped by policy change, geopolitical events and

economic conditions - by delivering strategic

solutions through our diversified portfolio of

products and services.

In Global Markets, we remain focused on executing

our key product priorities while delivering our full

suite of products and services to our clients. We

continue to progress on our goal of achieving 70 top

five ranks with our Top 100 clients. We have made

strong progress with improved performance in the

three focus businessesin Markets, while sustaining

momentum in financing.

Our Research team is central to our Investment

Bank franchise and continues to rank highly among

our institutional client base. According to Extel,

Barclays ranks as the #4 overall global research

firm and #3 for developed markets. We continue to

expand our Barclays conference and corporate

access offering across the Americas and EMEA.

Engagement with our Barclays Live platform has

grown, with site visits up 11% and readership up

18%, highlighting the strength of the platform in

delivering differentiated insights to our clients.

In Investment Banking, we delivered revenue

growth of 3% year on year. We also made good

progress in key focus areas, continuing to optimise

our loan book which helped to drive improved

return on RWAs. This year, we maintained our

traditional strength in DCM, and saw an increase in

both ECM fee share and advisory fee share with

financial sponsors 2.

International Corporate Bank (ICB) revenues were

up 10% year on year, reflecting the continued

rollout of the Treasury Coverage model - which

has doubled the number of focus clients with this

model since 2024. This has also helped to drive

c.23%year on year growth in US deposits 3.

Our goal is to strengthen our position as a leading

global investment bank by leveraging our advisory

expertise, deep sector knowledge, and

differentiated client offering.

The Investment Banking business is focused on

building share in Advisory and Capital Markets

through productivity improvement, Treasury

Coverage evolution and the continued investment

and growth of our International Corporate Bank.

Global Markets continues its focus on

strengthening its core capabilities while

maintaining a strong baseline of stable revenues in

the form of financing.

We aim to be prudent managers of the firm’s

capital, and to drive consistent returns through

client discipline, focused execution, capital

nimbleness and operational efficiency. We’re also

streamlining operations, reducing legacy systems,

and leveraging AI to scale and innovate.

We plan to achieve this through low single-digit

compound annual income growth combined with

disciplined cost management, driving operating

leverage.

Notes:

1 Dealogic as at 31 December 2025, based on offer to

market.

2 Dealogic Banking Fee share as at 31 December 2025.

3 Reflects month-end deposits.

The US is the world’s largest credit card market,

and growing. With a c.3% share 1 of the total

market and partnerships with 20 major brands, we

continue to see significant opportunities for

growth. In 2025, we delivered RoE of 9.5%, up

from 8.1% in 2024 and 3.4% in 2023, and a RoTE

of 11.0%, up from 9.1% in 2024 and 4.1% in 2023.

Our results were impacted by the appreciation of

the average GBP against USD through 2025.

However, when normalised for FX movements, in

USD terms income andprofit before tax were up

14% and 31% respectively, year on year.

We remain focused on building lasting partnerships

with top US brands. In 2025, we launched a new

co-branded card programme with iconic automaker

General Motors (GM) and acquired $1.6bn in

receivables, further diversifying our mix of card

partners. We also extended our current partnership

agreements with Wyndham Hotels & Resorts,

Upromise and our cruise line partners: Carnival,

Princess and Holland America.

We added three million new customers organically

in 2025, and our average FICO® score 2 remains

stable at 757, reflecting the strength of our prime

customer base. Our average payment rate of 31%

in the fourth quarter is higher than pre-pandemic

levels, further demonstrating the resilience and

quality of our book.

We grew our retail deposit balances by

20% year on year and increased the percentage of

core deposit funding for USCB from 64% to 69%.

This was driven by demand for the tiered savings

product and a new suite of exclusive digital

banking products offered through our co-branded

banking partnership with AARP.

Notes:

1 Source: newyorkfed.org/microeconomics/hhdc

2 FICO® is a registered trademark of Fair Isaac

Corporation in the United States and other countries.

In 2025, we announced that we had entered into an

agreement to acquire Best Egg 1, a leading US

digital direct-to-consumer originator of personal

loans.

Through our continuous focus on enhancing

customer experience, transactional NPS (tNPS) for

digital and contact centre agent servicing averaged

63 and 52 respectively. Digital performance

remained consistent with 2024, while contact

centre performance improved by one point year on

year.

In 2025, we improved digital onboarding,

increased self-service options and developed

flexible payment features for our customers. We

also expanded our Rewards Hub, an intuitive, one-

stop digital shop for cardmembers to more easily

manage their benefits. Over the past year, unique

visitors to the Rewards Hub increased by 15%,

demonstrating stronger brand loyalty and digital

"In 2025, we launched a new

co-branded card programme

with General Motors, entered into

an agreement to acquire Best

Egg, and extended our current

partnership agreements with

Wyndham Hotels & Resorts,

Upromise and our cruise line

partners: Carnival, Princess

and Holland America."

Denny Nealon

CEO of US Consumer Bank

connection.

Since 2023, our investments in digitisation have

led to an increase in customers using e-statements

and resulted in higher digital engagement with

96.2%of customers who interact with us doing so

through digital channels 2. The percentage of

customers using the Barclays mobile app also

increased 5.5 percentage points year on year 3.

Leveraging digital platforms to drive greater

efficiency has helped reduce full year 2025 USCB

cost to income ratio to 45%, down from 49% in

2024 and 51% in 2023.

We remain committed to executing our strategy

and improving returns. We plan to scale the cards

business through organic growth and new

partnership acquisitions as appropriate and

accelerate USCB's diversification through the Best

Egg acquisition.

We're embracing the latest technologies, such as AI

and agile scalable platforms, to drive greater

efficiency and deliver better experiences for our

We continue to enhance our digital capabilities and

provide seamless, intuitive experiences across all

channels. We will maintain our focus on customer

feedback, continually optimise our processes, and

invest in tools to reduce friction and drive loyalty

and sustainable growth.

Note:

1 Measured at exit at end December 2025. Includes

primary consumer card customers. Monthly interactions

exclude Interactive Voice Response (IVR).

2 Reflects rate movement from December 2024 to

December 2025 for mobile app users divided by open

Barclays UK Net Promoter Score(NPS)

2025

2024

2023

About this KPI and why we use it Net Promoter Score (NPS) is used to measure the strength of customer relationships. We track NPS to identify both our strengths and where there is room for improvement, informing how we develop our services and products in the future. Maintaining strong, personal relationships and building trust and advocacy is key across all our divisions, but most observable and material in Barclays UK which represents the largest customer base for which we serve customers throughout their financial lives.

How we performedWe improved Barclays UK main current account NPS to +251; our highest score since we began tracking in 2013, and an increase of eight on December 2024. This uplift was broadly across customer segments. Premier NPS was a significant driver, alongside improvements to customer service across channels and journeys.

Barclays UK complaints(% movement year on year)

2025

2024

2023

About this KPI and why we use itThe FCA publishes complaints information every six months – a good measure of how well UK institutions are driving customer outcomes. We measure our volume of complaints, tracking against goals and reviewing root causes to inform changes to our products and services.

How we performedMaterial increase in complaints year on year was driven by the IT incident on 31 January 2025. Excluding this, complaints reduced by 2%.

US Consumer Bank digitally interacting customer(%)

96.2

95.9

95.1

About this KPI and why we use itDigitally interacting customer percentage assesses the monthly rate of customers using digital channels to interact with us2. This measurement reflects the general health of the digital experience and allows us to better understand customer behaviour to boost satisfaction and efficiency.

How we performed Digitally interacting customer percentage improved by 30 bps year on year, driven by continued investment in our mobile app and digital capabilities, including enhancements to registration and self-service.

Investment Bankrevenue ranks and market shares(%, #)

2025

2024

2023

#6

#6

#6

#6

#6

#6

About this KPI and why we use itRevenue ranks and market shares are a good indicator to monitor success and identify opportunities. By using Dealogic Investment Banking global fee ranking and share, and a comparison to global peers' share of reported revenues for Global Markets, we can assess our relative performance versus a defined peer group3 clearly and transparently.

How we performedIn 2025, we maintained our rank of sixth across the Investment Bank in both Global Markets and Investment Banking.

See page 116 for details on Executive Director remuneration linked to these KPIs

Notes:

1© Ipsos 2025, Financial Research Survey (FRS), 12 months ended December 2025 (Dec 2024). Results based on a sample of 7,546 (6,646) Barclays main current account customers and 1,028 (865) Barclays Premier main current account customers.

Total sample of ~50,000 GB adults (aged 16+) a year, weighted to align with overall profile of GB population.

2 Measured at exit at end of December 2025. Includes primary consumer card customers. Excludes Interactive Voice Response (IVR).

3 FY25 Market share for Barclays is based on external reported revenues. Peer banks include BoA, BNP, CITI, DB, GS, JPM, MS and UBS.

4 Dealogic for the period 1 January 2025 to 31 December 2025 (as at 6 January 2026).

Colleagues

At the heart of achieving our plan to make Barclays Simpler, Better and More balanced are our c.93,000 colleagues. We are united by a shared Purpose, Values and Mindset, delivering to a consistently excellent standard in all we do – and we are making Barclays a great place to work, where every colleague can reach their potential.

Engaging with colleagues

Sharing our strategy with colleagues – and

explaining how they can contribute towards its

delivery – has been a key part of our 2025

engagement. Regular, two-way dialogue helps us

understand what is working well across the

organisation and where we can improve.

Engagement with colleagues is delivered through

townhalls, skip-level meetings, site visits, leader-

led events, focus groups and surveys. Through

our bi-annual Your View survey, our people can

share their feedback on working at Barclays – and

75% took part in 2025. We are committed to a

respectful and inclusive environment where

everyone feels safe to speak up. Our processes for

raising concerns and whistleblowing provide

channels for anonymous colleague feedback.

Our longstanding partnership with Unite in the

UK offers further insight into the views of our

people. We continue to consult with Unite on

major change programmes to minimise job losses

and prioritise reskilling and redeployment.

Embedding a consistently

excellent standard

A consistently excellent standard is what we expect

of ourselves – and what our customers, clients and

all our stakeholders trust us to deliver. This

continues to be an integral part of our culture and a

key enabler of our three-year plan. Our

consistently excellent culture-change programme

continued to embed these standards across the

organisation. Throughout 2025, local initiatives

across divisions and functions supported Group-

wide efforts to simplify processes, strengthen risk

and control, and drive efficiency.

Notes:

1 Except for employees at Managing Director grade and

Where to find out more:

For further metrics, please see home.barclays/our-sustainability-/sustainability-resource-hub/reporting-and-disclosures/

Material Risk Takers, for whom aportion of

compensation is typically delivered in shares.

Global Share Award Colleagues share in our success

To thank colleagues for their hard work and commitment as we continue to execute our strategy, in February 2025, colleagues1 were granted Barclays shares – valued at approximately £500. In 2026, we will grant a similar colleague share award for the second successive year. By enabling colleagues to share directly in the bank’s future success, these awards celebrate the achievements to date and recognise the collective effort that is still required to help build a Simpler, Better and More balanced Barclays.

A consistently excellent standard is now embedded

in HR tools, processes and products from hiring

and induction, to performance management,

promotions and development programmes. By

2025, 1,995 workshops were delivered to our

colleagues globally, creating strong understanding

across the organisation of what it means to deliver

to a consistently excellent standard.

We also launched the Risk and Control Digital

Credential (RCDC) – our first Group-wide,

externally accredited online learning programme,

certified by the Institute of Risk Management.

The RCDC equips colleagues with the knowledge

and skills to proactively manage risk and

strengthen controls. At the end of 2025, almost

25,000 colleagues had achieved accreditation. This

initiative marked a significant step in our ongoing

commitment to strong risk management and

delivering to a consistently excellent standard.

Investing in our talent

Our talent ambition is to help our colleagues grow,

develop and thrive at every level of our

organisation, building a strong talent pipeline for

the future. In 2025, we strengthened how we

identify, assess and develop high-potential talent,

introducing greater rigour and consistency, through

implementing our Talent Management Standards

including a consistent definition of potential,

approach to talent reviews and calibration. We

delivered accelerator programmes and sponsorship

initiatives and continued our Evolution leadership

development programme. We also offered senior

leaders a suite of practical tools, targeted

workshops, and resources to develop their skills.

In 2025, we hired 1,595 graduates, 1,508 interns

and 213 apprentices globally, and continued

building on our relationships with key partners to

support inclusive access to all our opportunities.

Barclays won the National Graduate Recruitment

Award for Most Popular Graduate Recruiter in

Banking, Insurance and Financial Services and was

ranked in the top 20 in The Times Top 100

Graduate Employers list – recognising our focus on

our Early Careers population as a key talent

pipeline for the future.

We simplified and personalised learning for

colleagues and invested in technology to support

our People Leaders’ development. For example, by

piloting virtual coaching for our People Leaders

and newly promoted Managing Directors (MDs)

and expanding the deployment of our 360-feedback

tool.

In 2025, we focused on enhancing our alumni

proposition – including by launching a

differentiated experience for our Executive Alumni.

Our Group CEO hosted our first-ever MD alumni

networking event in London, attended by members

of the Executive Committee and Board.

Our inclusive culture

We are evolving our approach to Inclusion and

Opportunity with a focus on empowering our

colleagues and leaders and driving company

success – cultivating high-performing teams and

providing rich opportunities for colleagues to

progress, while aspiring to hire from the broadest

global talent pools. We are committed to creating a

workplace where everyone feels valued and

respected, within a culture of belonging and equal

opportunity for all.

Supporting our workforce

Helping our people perform at their best remains a

priority. We provide a range of support for

colleagues through our policies covering annual

leave, life events, health issues, family and caring,

and flexible working. We support colleague

wellbeing with data-driven campaigns that

encourage healthy habits and a positive culture –

reflected by an 87% favourable Wellbeing Index

score in our 2025 Autumn Your View survey. Our

mental health awareness eLearning has been

completed by 87% of colleagues and 90% of

People Leaders, and over 53,000 colleagues are

registered on our ‘Be Well’ online wellbeing

portal.

We also continued to enhance our provision for

colleagues in the UK with an updated Employee

Assistance Programme providing additional mental

health support to their family members.

Rewarding our colleagues

We offer eligible colleagues the opportunity to

acquire Barclays shares on beneficial terms, with

voluntary all-employee share plans available in

countries representing 99% of our global

workforce. In recognition of colleagues' collective

effort towards delivering our three-year plan

and the effort that is still required, in February

2025 we granted colleagues a share award worth

approximately £500, and in 2026 we will grant a

similar colleague share award, for a second

successive year. In July 2025, all UK colleagues

were given access to Barclays Premier Banking,

which offers a suite of exclusive products, services

and benefits.

Enhancements to policy provisions

In 2025, we focused on aligning to our global

policies to better support our colleagues and People

Leaders in managing their work life at Barclays. In

November, we announced that our paternity leave

policy in the UK will increase from two weeks to

16 weeks, and that the non-primary caregiver

leave policy in Asia Pacific will increase from six

weeks to 10 weeks. Effective from 1 January 2026,

these updates aim to help new parents spend more

time with their families and support colleagues in

balancing work and personal life.

Our people policies

Our people policies 1 help us recruit the best people,

provide equal opportunities and create an inclusive

culture – in line with our Purpose, Values and

Mindset, and in support of our long-term success.

They are reviewed and updated regularly to ensure

they remain aligned with our broader people

strategy.

As part of our Fair Pay Agenda, we are committed

to paying our colleagues fairly and appropriately

relative to their role, seniority, skills, experience

and performance. We pay at least a living wage in

all our locations and provide colleagues with

resources to ensure everyone has equal opportunity

to progress.

You can read more about our Fair Pay Agenda on page 124.

Companies Act Diversity Disclosure

In accordance with section 414C 2 basis of the

Companies Act 2006, as of 31 December 2025,

Barclays employed 98,141 colleagues globally

(53,595 male, 44,037 female, and 509

undisclosed), including 540 senior managers (394

male, 146 female), and 13 Board of Directors at

Barclays PLC (seven male, six female).

Notes:

1 Our policies reflect relevant employment law, including

the provisions of the Universal Declaration of Human

Rights and the International Labour Organization (ILO)

Declaration on Fundamental Principles and Rights

at Work.

2 The variance to the c.93,000 stated earlier in the report is

due to the Companies Act disclosure definition using

Headcount rather than FTE, and also including

colleagues on long-term leave. Unreported refers to

colleagues who do not record their gender in our systems.

‘Senior managers’ is defined by the Companies Act, and

is different to both our Senior Managers under the FCA

and PRA Senior Managers regime, our Director and

Managing Director corporate grades. It includes Barclays

PLC Group Executive Committee members, their direct

reports and directors on the boards of undertakings of the

Group, but excludes Directors on the Board of Barclays

PLC. Where such persons hold multiple directorships

across the Group they are only counted once.

Colleague engagement(%)

About this KPIColleague engagement is derived from the responses to three questions in our Your View survey that measure advocacy, motivation and sense of personal accomplishment. The questions that make up this KPI are: I would recommend Barclays to people I know as a great place to work; my work provides me with a sense of personal accomplishment; Barclays motivates me to contribute more than is normally required to complete my work. It enables us to monitor how engaged our workforce is and closely relates to key organisational and colleague outcomes such as productivity, wellbeing and retention.

How we performedColleague engagement has remained stable at 85% compared with 2024. Overall, this continues to be a strong engagement score and four percentage points above our external benchmark.

Inclusion index(%)

About this KPI Our Inclusion Index1 measures colleague sentiment around feeling included, valued, respected, listened to and treated fairly. It closely relates to key colleague outcomes like engagement, wellbeing and retention.

How we performedIn 2025, the Inclusion Index remained stable against 2024, at 81%.

“I believe that my team and I do a good job of role modelling the Values every day” (%)

About this KPIThis question within our Your View survey measures colleagues’ perception of how well the Barclays Values are role modelled by colleagues. The Values are our moral compass; the fundamentals of who we are and what we believe is right.

How we performedThis score has remained largely consistent and high over the past three years with 93% of colleagues believing themselves and their team do a good job of role modelling our Values.

“I believe strongly in the goals and objectives of Barclays” (%)

About this KPI This question within our Your View survey measures colleague perception of, and belief in, our three-year plan.

How we performedIn 2025, 89% of colleagues expressed strong belief in Barclays goals and objectives, an increase of one percentage point compared to 2024.

Notes:

1 Our Inclusion Index is derived from seven questions in the Your View survey: I feel included in/within my team; Colleague performance is evaluated fairly; When a similar mistake has been made by different people, it is dealt with in the same way;

Senior Leadership is truly committed to building a workforce with different perspectives and skills; My team makes adequate use of recognitionand rewards other than money to encourage good performance; In my team people respect other people's

opinions when making a decision; Everyone has equal opportunities to progress in their career regardless of background and working circumstances.

Net zero operations progress

About these KPIs and why we use them

We are working towards achieving net

zero operations as part of our ambition

to be a net zero bank by 2050. This

includes setting and meeting various

milestones 1 and targets 1 to reduce our

operational emissions, with significant

progress already made.

The metrics measure total gross Scope

1 and 2 (market-based and location-

based) emissions generated from

Barclays’ global real estate portfolio 2

and UK corporate vehicles, as well as

emissions generated indirectly from

our supply chain 3.

Our detailed analysis of our

Notes:

1 On this page a reference to a 'milestone' denotes an indicator we are working towards and report against and a reference to a 'target' denotes an

indicator linked to our executive remuneration.

2 On this page a reference to global real estate portfolio includes offices, campuses, branches, warehouses and data centres within our operational

control.

3 Our reporting of supply chain emissions includes the following GHG Protocol Scope 3 Categories: Category 1, 2 and 4. Due to changes in GHG

emissions conversion factors, we have recalculated our FY2024 supply chain emissions. For further details see page 59.

4 In the 2026 update to the Barclays Sustainable Finance Framework the reference to the target has been updated to reference $1trn Sustainable and

Transition Finance between 2023 and the end of 2030 (the 'Target') and accordingly references to the Target in this Annual Report have been

reflected as such other than in this chart.

5 Our reporting of the number of people upskilled has changed from previous reports to reflect the cumulative number, since 2023.

6 Our reporting of the number of businesses supported has changed from previous reports to reflect the cumulative number, since 2023.

performance iscontained within the

Climate and Sustainability section

from page 58.

Sustainable and Transition Financing4 facilitated ($bn)

2025

2024

In 2022, we set a target of $1trn

Sustainable and Transition Financing

between 2023 and the end of 20304 –

encompassing green, social, transition

and sustainability-linked financing,

having exceeded our previous targets to

facilitate £150bn of social,

environmental and sustainability-linked

financing by 2025 and£100bn of green

financing by 2030.

During 2025 we facilitated an

additional $98.5 bn of Sustainable and

Transition Financing, bringing the total

to date to $260.7 bn. The 4% year-on-

year increase in financing facilitated

demonstrates our continued efforts in

supporting our clients on their

sustainability journeys.

Skills and employability: Number of people upskilled5 (millions)

2025

2024

Barclays is delivering skills and

employment opportunities for people

in the communities where we operate.

The total number of unique people

supported to unlock skills and

employment opportunities includes

those upskilled through our LifeSkills,

Digital Eagles and Military and

Veterans Outreach programmes.

After removing duplicates to account

for repeat users, we upskilled a further

2.11 million people in 2025 through

Barclays LifeSkills, Digital Eagles and

Military and Veterans Outreach,

growing the total to 8.16 million 5 since

the beginning of 2023 and

demonstrating steady progress across

Barclays’ community programmes.

Please see page 41 for further detail on our target

2025

2024

Barclays is championing innovation

and sustainable growth through

programmes that enable businesses and

economies to grow. The total number

of businesses supported in our

communities includes those engaged

through Barclays’ Eagle Labs,

Unreasonable Impact and select

impact-led portfolios managed by

Barclays’ Principal Investments team.

After removing duplicates to account

for repeat users, in 2025, through these

programmes, we supported a further

3,931 businesses, growing the total to

14,1786 since the beginning of 2023

and demonstrating Barclays’ continued

commitment to providing a connected

pathway of support for start-ups and

scale-ups at every stage of their growth

journey.

Progress of financed emissions

All portfolios show physical intensity

apart from: * absolute emissions.

About these KPIs and why we use

them

In pursuit of our strategy to reduce

our financed emissions, which are

those deriving from in-scope activities

of the clients that we finance, we have

set 2030 financed emissions reduction

targets which integrate 1.5 o C aligned

scenarios for

eight high-emitting sectors. We also

have a convergence point for our UK

Housing portfolio.

Our detailed analysis of our sectors

and performance is contained within

the Climate and Sustainability section

from page 48.

See the Barclays Sustainability Reporting Framework for details on our operational emissions accounting approach.

Barclays' climate strategy: Clients, Capital and Innovation

A strategy for a better

financial future

In 2025 we published our Transition Update, reiterated our

ambition to be a net zero bank by 2050 and outlined how

we continue to deliver against our strategy.

In recognition of the realities of the transition and to balance our climate ambition, shareholder

expectations and continue to deliver our strategy, we outlined in our Transition Update how we have

evolved our approach to focus on working with clients on their transition, financing clients’ transition

and scaling climate tech, while integrating nature and social considerations.

To read the Barclays Transition Update, visit home.barclays/our-sustainability-/barclays-approach-to-the-transition/

Working with clients on their transition

Barclays serves a wide range of retail customers,

corporate and institutional clients worldwide.

Understanding our clients' priorities is central to

how Barclays supports the transition. Each client is

at a different point in the transition and there is no

single pathway that our clients may follow.

We listen to our clients and build a nuanced

understanding of the commercial realities shaping

their transition pathways. This is informed by

regular client dialogue led by our coverage teams

See page 36

See page 41

See page 46

and dedicated sustainable finance specialists,

supported by specialised analytical tools such as

our Client Transition Framework (CTF). This

enables more informed conversations with clients

about their transition strategies, challenges, and

progress.

Managing climate-related risks to our business and portfolios

Reducing our financed emissions

Achieving net zero operations

Our capabilities and tools strengthen our ability to

support client progress while helping us to

maintain accountability for our own financed

See page 33

See page 48

See page 58

emissions reduction targets.

Financing clients' transition

Across the bank we are helping to provide the

sustainable and transition finance needed to

support the transition to a low-carbon economy.

From homeowners to UK farmers through to

global multinationals, we are supporting all levels

of the economy to transition.

Since 2020, we have mobilised over $500bn of

sustainable and transition finance, ensuring

Barclays remains well positioned to support our

clients and capture the addressable market.

Reflecting our focus to mobilise capital for the

transition, we have a target to facilitate $1trn of

Sustainable and Transition Finance between 2023

and the end of 2030. In 2025, we facilitated

$98.5 bn, and $260.7 bn since 2023. As the role for

us to support our clients has continued to expand,

in 2025, we generated just under £0.6bn ofrevenue

from sustainable and transition-related activity 1.

The sustained volumes of and revenue from

sustainable and transition related activity

underscores our continued momentum. Even in a

more complex policy and market environment, we

view the transition as a commercial opportunity for

our clients, and in turn, Barclays.

Reflecting society’s need for available and

affordable energy, we also remain a significant

provider of capital to the conventional energy and

power sector. Financing for clients in this sector is

managed in line with Barclays’ risk appetite, with

decisions informed by transition progress,

commercial returns, client engagement and market

realities. The bank’s approach recognises that

energy security and transition progress must

advance in parallel and that continued investment

in both is critical to meeting evolving client needs

and supporting economic stability.

Note:

1 For further detail on revenue definition see footnote 2 on

page 41.

Scaling climate technology

Scaling climate tech is integral to accelerating the

transition, with the potential to create profitable

means of decarbonisation for many sectors of the

real economy.

We are playing a key role in scaling climate tech

companies from idea to IPO through the Barclays

Climate Tech Escalator. Companies are provided

tailored, dedicated support as they grow to help

them to harness the power of capital markets.

Barclays Climate Ventures, part of the Climate

Tech Escalator, has a mandate to invest up to

£500m of our own capital by the end of 2027.

Barclays Climate Ventures prioritise investments

into commercially scalable technologies that can

unlock the transition for the high-emitting sectors

in which we have meaningful client exposure, such

as energy and power, real estate, and food and

agriculture.

Since 2020, £274m has been invested in over 20

companies, and in 2025, £71m was deployed.

Integrating nature and social considerations Our climate strategy integrates nature and social considerations, including our work on human rights, recognising the need to address these interconnected topics holistically. In 2025, we extended nature-related criteria within our CTF assessments to now cover four sectors in total, building on a successful pilot for the Power sector in 2024. We also leveraged the findings from our application of the Taskforce on Nature-related Financial Disclosures (TNFD) ‘Locate Evaluate Assess Prepare’ (LEAP)1 approach across a sample of clients in the Barclays Mining and European Power portfolios to engage with companies in both sectors, and began extending this work to assess our Automotive manufacturing portfolio.

Achieving net zero operations

We are working towards achieving net zero

operations as part of our ambition to be a net zero

bank by 2050. This includes setting and meeting

various milestones and targets to reduce our

operational emissions, with significant progress

already made. We have achieved all our 2025 net

zero operations milestones and targets, including

continuing to source 100% renewable electricity

for our global real estate portfolio and reducing our

Scope 1 and 2 market-based emissions by 97%

against a 2018 baseline - exceeding our 90%

reduction target.

Building on this progress, we aim to continue

sourcing 100% renewable electricity through to

2030 and work towards our 2030 milestones,

inclusive of our Scope 1 and 2 location-based

emissions and supply chain emissions reduction

milestones.

Reducing our financed emissions

In pursuit of our strategy to reduce our financed

emissions, which are those deriving from in-scope

activities of the clients that we finance, we have set

2030 financed emissions reduction targets which

integrate 1.5 o C aligned scenarios for eight high-

emitting sectors: Upstream Energy, Power,

Cement, Steel, Automotive manufacturing,

Aviation, UK Agriculture and UK Commercial

Real Estate. We also have 2025 targets for

Upstream Energy and Power and a convergence

point for our UK Housing portfolio.

We set out our progress against our financed

emissions reduction targets in this report. We have

continued to make progress towards these targets,

including exceeding our 2025 target in Upstream

Energy and Power.

Implementing our strategy against

a shifting landscape

The current pace and momentum of the transition is

uneven as governments pursue increasingly divergent

approaches, creating a complex and fragmented

policy environment.

Some regions and sectors are accelerating, while

others, are transitioning at a slower pace than

anticipated in 2020 when we announced our

ambition. Higher decarbonisation costs, a lack of

clear and consistent long-term demand and

persistent structural barriers often mean the

economics of transition are not yet sufficiently

compelling. At the same time, understanding of

climate and nature-related risks, such as water

scarcity, is becoming clearer for us and our clients.

As a result, the window to limit global warming

to 1.5°C above pre-industrial levels is narrowing.

Decarbonisation is falling behind the pace required

and the likelihood of a prolonged overshoot above

1.5°C is increasing, potentially making it more

difficult to return to the

pathway that underpins current corporate

and financial planning.

These developments and in the absence of

consistent global policy signals and clearer long-

term frameworks, mean financial institutions may

need to choose between financing growth and

maintaining the pace of reducing financed

We are actively monitoring the latest science and

economic modelling to assess how such risks could

affect our portfolios and targets and will continue

to maintain a disciplined, forward-looking

approach.

The transition, and therefore our future progress,

will be affected by the significant uncertainties,

will not be linear and constrained by the policy

environment and availability of technology.

Furthermore, these factors have scope to put our

clients, customers’, and our own, net zero

ambitions at risk.

We recognise we have an important role to play in

the transition, we cannot tackle this challenge on

our own and that our ability to implement our

climate strategy and deliver against our targets

depends heavily on our clients progress and a wide

range of external factors. We will consider and

adapt our approach as needed to reflect the

evolving landscape.

We remain committed to supporting the transition

in a way that is inclusive, resilient,

and economically sound, guided by our net zero

ambition and our Purpose: working together

for a better financial future.

Notes:

1 These LEAP assessments were undertaken in 2024.

‘European Power’ refers Barclays Bank Ireland plc’s

counterparties. For both ‘Mining’ and ‘European

Power’, we only included counterparties that met selected

criteria, as set out in our 'Navigating Nature Risk-

Applying the TNFD's LEAP framework' paper.

Our strategy, selected targets and progress

The table below sets out progress against our strategy and selected targets.

Notes:

1 Our previously announced target to facilitate £150bn of social, environmental and sustainability-linked financing by 2025

was exceeded in 2021and £100bn of green financing by 2030 was exceeded in 2023. In the 2026 update to the Barclays

Sustainable Finance Framework, the reference to the target has been updated to reference $1 trillion Sustainable and

Transition Finance between 2023 and the end of 2030 (the "Target") and accordingly references to the Target in this

Annual Report have been reflected as such, other than in this chart.

2 Previously reported baseline values have been re-baselined in the current year. For further details please see page 51.

3 Baseline values have not changed in the current year

4 The power sector has been re-baselined due to a data sourcing update. The impact of this change is not considered

material.

Risk and opportunities

TCFD Strategy Recommendation A

Climate-related risks identified over the short, medium and long term

Our climate strategy is underpinned by the way we assess and manage our exposure to climate-related risks. Climate Risk is a Principal Risk within the Barclays Enterprise Risk Management Framework (ERMF).

Barclays faces exposure to climate-related risks

either directly through its operations and

infrastructure or indirectly through its financing

and investment activities. The two main categories

of climate risk are physical risks and transition

risks.

•Physical risk is defined by Barclays as the risk

of financial losses related to physical impacts of

a changing climate. Physical risks can be event-

driven (acute risks), including increased

frequency and/or severity of extreme weather

events such as cyclones, hurricanes and floods.

Longer-term shifts in climate patterns (chronic

hazards) arise from sustained higher

temperatures that may cause rises in sea levels,

changing precipitation patterns or heat stress.

•Transition risk 1 is defined by Barclays as the

risk of financial losses caused by the changes

driven by theeconomy shifting toa lower

carbon basis, including for example changes in

policy, technology and consumer and investor

sentiment.

Physical and transition risks can have varying

degrees of impact on Barclays and its clients,

influenced by geographic and jurisdictional factors,

including differing vulnerabilities to physical

hazards like flooding and hurricanes, as well as

diverse regulatory requirements that must be

adhered to for transitioning to a low-carbon

Time horizons

The impact of physical and transition risks can be

significant and widespread, affecting Barclays'

portfolio and financial performance over short-,

medium- and long-term horizons. Significant

uncertainty remains around the timing of major

climate-related impacts, although some effects

have already surfaced. So far, these impacts have

been largely contained within specific geographies

and sectors, but they carry the potential to escalate

and trigger broader impacts on financial systems.

In the short term, physical risks arising from extreme

weather events and climate-related disasters pose a

direct threat to Barclays' physical assets and

infrastructure. This can potentially result in

immediate losses, increased costs for repair and

higher insurance premiums. Similarly, acute events

may also potentially damage the physical facilities of

Barclays' clients or cause business disruptions,

which may adversely impact the value of clients'

assets, reduce their profitability and subsequently

lead to potential increase in credit risk for Barclays.

Additionally, business facilities and operations in

regions prone to high physical risks may also

experience higher insurance premiums or limited

insurance coverage.

Transition risks could occur in all timeframes. Short

to medium-term developments may be largely

driven by new regulations and technological

breakthroughs aimed at replacing carbon-intensive

methods. There remains significant uncertainty

around the speed and scale of the transition. The cost

of transitioning to cleaner technologies and

sustainable business practices may strain the

financial resources of businesses, affecting their

profitability and long-term viability. There may be

challenges related to employment as businesses

transition away from carbon-intensive practices. This

in turn may impact the creditworthiness of Barclays'

clients and their ability to repay loans. Financial

institutions like Barclays could also face significant

increases in costs and resources allocated to adhere

to new policies, laws and regulations aimed at

transitioning to a low-carbon economy. This in turn

may lead to higher conduct and operational risks to

Barclays.

Transition risks arising from actions aimed at

mitigating climate change can shift market

sentiment, introduce price volatility and equity

shocks, leading to declines in the valuation of

financial instruments and potential trading losses in

Barclays' portfolios. Additionally, companies may

face reputational damage and legal actions,

including litigation, regulatory penalties, and

shareholder lawsuits in relation to climate risks.

These could lead to decreased customer trust or

investor support and heightened liability risks for

both the companies and their financial partners.

Barclays may also face adverse media, negative

investor sentiment or climate-related litigation in

relation to its business activities. This in turn may

adversely impact customer demand for Barclays'

products, returns on business activities, and the

value of assets and trading positions, resulting in

higher impairment charges.

In the longer term, the cumulative effects of global

temperature rises are likely to become increasingly

pronounced – influencing ecosystems, sea levels

and societal structures. Climate change can also

trigger tipping points through feedback loops that

amplify its effects. Certain tipping points are already

underway, manifesting in observable changes across

the globe. Different tipping points, such as the

melting of ice sheets or changes in ocean

circulation, have varying time horizons. As the

climate science develops, it appears that some

tipping points may run on a shorter timeline than

initially expected. Accordingly, the uncertainty of

exact timeframes in which such tipping points could

materialise adds a layer of complexity – making it

challenging to precisely predict when impacts will

materialise.

When considering the timescales of climate-related

risks, Barclays has categorised short, medium and

long term as follows:

•Short term (S): 0-1 year

•Medium term (M): 1-5 years

•Long term (L): > 5 years.

The short-term timescale coincides with the short-

term plan for annual budgets and granular financial

plans. The medium term coincides with the five-year

financial, capital and funding plans.

Climate change as a driver of risk

The feedback effects of climate risk drivers through

transmission channels are observed in Barclays'

portfolio through traditional risk categories such as

credit risk, market risk, operational risk and

reputational risk. Climate risk is designated as a

Principal Risk within Barclays’ ERMF, with the

purpose of capturing the impact of climate change

on the bank’s Financial and Operational risk

categories. Barclays has implemented a dedicated

risk management framework for climate risk. This

framework aims to guide effective management of

climate risk and support the delivery of Barclays'

climate strategy. The Climate Risk Framework is

reinforced by policies and standards, which contain

control objectives and requirements that must be

adhered to by different teams across business lines

and risk management departments. Climate risk

may also drive non-financial risks such as

reputational risk, which continue to be managed

under their respective risk frameworks. Barclays'

approach and framework undergoes regular reviews

and updates – including changes to the risk

taxonomy, definitions and methodology – to align

with changing regulatory expectations and external

developments.

Note:

1 The revised transition risk definition reflects further

refinement of the underlying drivers and transmission

channels as illustrated on the next page.

The potential impacts of physical and transition risk drivers will vary across Barclays' portfolios depending on composition, industry, geographic location, business operations and other contextual factors.

The tables below set out example drivers and transmission channels, and the expected time horizons of physical and transition risks.

Further details on how Barclays manages climate risk can be found on pages 202 to 204.

Building our understanding of nature-related risk

Barclays' understanding of nature impacts and

dependencies and how they translate into physical,

transition, and financial risks is evolving. We

recognise the importance of supporting our clients

in navigating the transition to nature-positive and

net zero. We have continued to advance our work

on nature, integrating it into our efforts to mitigate

and adapt to climate change.

In 2025, we published ‘Navigating Nature Risk –

Applying the TNFD’s LEAP framework’, which

sets out the findings from our initial application of

the Taskforce on Nature-related Financial

Disclosures’ (TNFD) Locate Evaluate Assess

Prepare (LEAP) approach across a sample of

clients in the Barclays Mining and European Power

portfolios 1, We carried out this work to better

understand the nature-related impacts,

dependencies and financial risks associated with

these companies. While there were limitations in

our approach (including in both the data and

methodological approaches used), we were able to

use the output to assess various outcomes. In

particular, the results indicated potential adverse

cumulative earnings impact over five years for

both sectors, across their modelled scenarios.

However, while these earnings impacts varied

between these portfolios, the analysis indicated that

• despite scenario‑driven losses – the impacts on

each portfolio remained manageable and did not

amount to a material change in overall portfolio

credit quality. We leveraged these insights to

engage with companies in both sectors in 2025,

testing our approach, learning how they measure

and manage nature-related impacts and risks and

identifying potential collaboration opportunities.

We are now carrying out an additional sectoral

TNFD LEAP assessment of our Automotive

manufacturing portfolio, measuring selected

material impacts for this sector such as water use,

water pollution, and air pollution across the value

chain. This will be followed by client engagement

to discuss our approach and results.

For more information on our ‘Navigating Nature Risk – Applying the TNFD’s LEAP framework’ paper, see our website: home.barclays/our-sustainability-/barclays-approach-to-the-transition/nature/

Sustainability and climate-related opportunities identified over the short, medium and long term

We recognise that the global transition to a low-carbon economy presents an opportunity for Barclays to work with our clients, scaling up zero or near-zero-emitting technologies and businesses, and supporting emissions reductions in high-emitting and hard-to-abate sectors. We have a target a facilitate $1 trillion of Sustainable and Transition Finance between 2023 and the end of 2030.

The market opportunity

Through 2025, the global landscape has continued

to evolve. Investment in the energy transition has

accelerated, climate technologies have matured

further, and both energy demand and the focus on

energy security have intensified. The physical

impacts of climate change are becoming more

apparent too.

Global investment flows reached $2.3trn in 2025,

concentrated in mature segments such as renewable

power, grid infrastructure, energy storage, energy

efficiency solutions and low emission fuels 2, 3. The

green economy is now valued at $8 trillion 4.

Against this backdrop, our sustainable finance

strategy is aimed to support clients in the transition

while enabling Barclays to capture this associated

growth opportunity.

The UK's residential sector is increasingly seeking

to improve housing energy efficiency. Barclays is

capturing this demand trend through its Green

Home Mortgage performance, which performed

strongly in 2025 with £2.4bn lent, and Greener

Home Reward payments totalling £3m since

launch supporting eligible retail mortgage

customers in retrofitting their properties and

helping reduce their energy consumption.

Since 2020, we have mobilised over $500 billion

of sustainable and transition finance, showcasing

Barclays' ability to support clients and capture this

market5. We expect our progress towards

achieving our target of facilitating $1trn of

Sustainable and Transition Finance will be non-

linear and will be shaped by market demand,

evolving policy and regulatory developments;

however so far capital flows into the transition

have remained resilient.

The Barclays Transition Update provides further

insights into how Barclays is supporting clients

with transition opportunities, with sector-specific

analysis on how we are working with clients across

the Energy and Power, Food and Agriculture, Real

Estate, and Industrials 6, sectors.

For further details please see the Barclays Transition Update

Identifying nature-related opportunities

Nature-related financing represents a growth

opportunity for the financial services sector,

reflecting the scale of capital required to halt and

reverse nature loss by 2030 as outlined in the

Global Biodiversity Framework (GBF). Private

finance for nature has accelerated rapidly – rising

from just $9.4 billion to more than $102 billion

over four years – yet remains far short of what is

needed to close the global nature financing gap 7.

In 2025, we incorporated nature-related eligibility

criteria in the Transition Finance Framework (TFF)

for the first time and expanded nature-related

eligibility criteria in the Sustainable Finance

Framework (SFF). These enhancements develop

our ability to identify opportunities aligned with

the SFF and TFF, scale finance that supports

nature, and contribute to achieving our $1trn

Sustainable and Transition Finance target.

During 2025, we also assessed potential nature-

related opportunities and products that Barclays

could advance. Following our Barclays Mining and

European Power LEAP assessments, we engaged

with clients in these sectors, exploring potential

opportunities to support their nature-positive

transition across value chains. We have noted that

interventions that help clients avoid and minimise

negative impacts on nature could have clear

potential, supporting them in the transition to net

zero and nature-positive activities.

Notes:

1 These LEAP assessments were undertaken in 2024.

‘European Power’ refers Barclays Bank Ireland plc’s

counterparties. For both ‘Mining’ and ‘European

Power’, we only included counterparties that met selected

criteria, as set out in our 'Navigating Nature Risk-

Applying the TNFD's LEAP framework' paper

2 about.bnef.com/insights/clean-energy/bloombergnef-

finds-global-energy-transition-investment-reached-

record-2-3-trillion-in-2025-up-8-from-2024/

3 www.iea.org/reports/world-energy-investment-2025/

executive-summary

4 about.bnef.com/insights/clean-energy/bloombergnef-

finds-global-energy-transition-investment-reached-

record-2-3-trillion-in-2025-up-8-from-2024/

5 This $500bn figure refers to the sustainable and transition

finance mobilised from 2020, of which approximately

$260bn contributes towards the $1trn Sustainable and

Transition Finance Target (2023 - 2030).

6 Industrials includes automotive manufacturing, aviation,

cement, mining and steel. For further details please see

the Barclays Transition Update.

7 UNEP FI: unepfi.org/wordpress/wp-content/

uploads/2024/06/Press-release-New-Green-Shoots-

research-Clean-10062024-updated-2.pdf

Implementing our climate strategy

TCFD Strategy Recommendation B

Working with clients on their transition

Barclays serves a wide range of retail customers, corporate and institutional clients worldwide. Understanding our clients' priorities is central to how Barclays supports the transition. Each client is at a different point in the transition and there is no single pathway that our clients may follow.We listen to our clients and build a nuanced understanding of the commercial realities shaping their transition pathways. This is informed by regular client dialogue led by our coverage teams and dedicated sustainable finance specialists, supported by specialised analytical tools such as our Client Transition Framework (CTF), see page 39. This enables more informed conversations with clients about their transition strategies, challenges, and progress.

Barclays UK and UK Corporate Bank

In 2025, we continued to support the transition in

our home market by helping households,

businesses and corporate clients make more

sustainable choices. Working across our UK

focused businesses, we worked to address common

barriers, facilitated access to practical industry

insight and peer-to-peer learning opportunities. We

have evolved our products and propositions that

contribute to our progress towards our $1 trillion

Sustainable and Transition Finance target.

For further details please see the Barclays Transition Update

Barclays Partnerships

UK Corporate Bank

Barclays UK Retail and Business Banking

Private Bank and Wealth Management

Barclays Climate Ventures

Retail Bank

Sustainability Hub

In 2025, we launched our in-app Sustainability

Hub for current account customers providing

information on our financial products, services,

informative content and partner offers that may

support them in making more sustainable choices.

Greener Home Reward

A key factor in decarbonising the UK Housing

sector is improving the energy efficiency of the

housing stock. Through our financial products and

partner offers, we support our retail mortgage

customers in retrofitting their properties and

helping reduce their energy consumption.

Investment Bank

Green Bond Investment portfolio

In 2025, wecontinued to support existing eligible

residential mortgage customers in installing

eligible energy-efficiency-related measures in their

homes through our Greener Home Reward offer,

providing a cash reward of up to £2,000. We

supported more than twice as many customers as in

any previous year, bringing the total reward

payments since launch to £3 million. From January

2025, we expanded the offer to include

Microgeneration Certification Scheme (MCS)

accredited installers focussed on small scale

renewable energy technologies. Since the launch of

the Greener Home Reward, more than 90% of

customers installed renewable energy technologies,

with 60% of reward payments attributed to

installations of solar panels and solar battery

storage, followed by 31% for low-carbon heating.

All of our sustainable products and offers remain

under review as we consider how we best support

our customers and clients in making more

sustainable choices.

Reward payments by retrofit type 1,2

Notes:

1 Data based on retrofit type for rewards paid since launch.

2 Previously titled 'Retrofit type at claim'.

Further details on Barclays Greener Home Reward can be found at: barclays.co.uk/mortgages/greener-home-reward/

TCFD Strategy Recommendation B

Working with clients on their transition (continued)

Business Bank

We recognise the importance and opportunities as

businesses transition to a low-carbon economy.

Within Business Banking we continue to actively

engage and support our Small and Medium Sized

Enterprises (SME) clients, including Agriculture

and Real Estate.

Barclays co-chaired the independent, government-

backed Willow Review, which explored how UK

SMEs can benefit financially from sustainability.

The Willow Review was launched in 2025, and the

UK Government formally responded to its

recommendations in December. In line with the

Review's recommendations for financial services,

we have introduced a range of initiatives for our

Business Banking clients, including SME

Workshops, dedicated mentors and Eagle Labs

modules focused on the business case for

sustainability. The review also highlighted an

important insight: access to finance was a key

obstacle preventing SMEs from investing in

sustainable practices. Building on the findings of

the Willow Review, we published apolicy

snapshot 1 on access to sustainability grants.

We recognise that a successful transition relies on

businesses remaining profitable, resilient and

innovative. Within our Innovation Banking

community, we are exploring how Climate Tech

solutions can solve for real-world challenges that

SMEs experience. We recognise that some clients

like to learn from each other - to encourage peer-

to-peer learning, we have launched monthly

Sustainability Breakfasts at Barclays Innovation

Hub to convene businesses and industry experts on

topics such as supply chains and the business case

for sustainability.

Our customer research and industry events help us

develop policy positions and thought leadership,

such asour 'Agritech: supporting the future of

farming' report.

For our Agriculture clients, Barclays research

showed that >70% of our UK farming customers

had witnessed the effect of climate change on their

farms. It highlighted the importance of developing

practical steps to help farms adopt innovative and

more sustainable farming practices. In response,

we worked with farmers, multinationals and other

stakeholders to pilot a new model for supporting

farmers to adopt regenerative practices through the

Sustainable Markets Initiative's 'Routes to Regen'

project. The pilot offered simplified support

through a menu of options, on-farm guidance,

technical assistance, peer-to-peer learning and

financial support. The results of the pilot showed

that 57% of participants reported that they were

more likely to farm more regeneratively as a result,

and 82% rated the multi-company collaboration as

important in their decision to take part.

Our Farm2Farm network was established in 2023

to enable farmers to learn from one another and

share practical insights. We continue to facilitate

gatherings that support peer-to-peer learning, assist

with farmers' daily banking needs, and facilitate

climate and sustainability discussions to help them

navigate their transition to more sustainable

farming practices.

In 2025, we built on this and launched a

collaboration with Dyson Farming to bring

technology and engineering into farming. Through

this, we connect farmers and Agritech founders to

explore new technologies and learn about

innovation trials and research that could be

considered for implementation on their farms.

Working with clients to support their sustainability

and transition ambitions remains a key factor in our

focus of deepening client relationships and grow

lending and products. There is demand from clients

across the value chain for support and toinform

them on products, services and relevant industry

and regulatory themes as they transition to a low-

carbon economy and are required to comply with

evolving sustainability standards. We continue to

work closely with clients to help them adapt

through various collaborations including using our

insights on best practice gleaned through industry

working groups.

Throughout 2025, UK Corporate Bank (UKCB)

delivered specialised client support by assessing

our clients' sustainability position and tailoring

engagement to meet their objectives. We also

developed a proactive strategy for select sectors to

prioritise outreach, integrate innovative financing

solutions, and deliver meaningful client impact.

We regularly convened clients across a range of

sectors and technology showcases to promote

learning, peer-to-peer feedback, and direct

engagement. Clients benefited from hearing about

the latest relevant technologies, directly accessing

Barclays Climate Tech ecosystem, discussing

broader industry thematics and these sessions

provided actionable insight on how Barclays can

practically assist clients in their transition.

Utilising some of this broader client feedback, we

expanded our sustainable capabilities to help us

support clients with innovative, practical solutions.

These included preparing to launch a tool for

Commercial Real Estate clients, undertaking a

consulting and market landscape project to develop

a carbon tracking tool for our Barclaycard

Commercial Issuing clients, and launching a

sustainable deposit solution in July 2025, enabling

clients to align liquidity with their sustainability

priorities.

Amplifying client perspectives in key sustainability

forums helps to ensure our clients' voices inform

policy and helps position and develop UKCB's

leadership role in aiming to drive systematic

change through our thought leadership. In UKCB,

we extended our external leadership, joining the

Future Homes Hub and partnering with the

Partnership for Carbon Accounting Financials

(PCAF) and a range of global financial institutions

to align industry thinking on accounting for

embodied carbon.

Broader engagement across Business Bank and

Across both the Business Bank and UK Corporate

Bank, we recognise from industry reports and

Barclays' ownresearch that barriers to action for

clients and customers include a lack of awareness

of trusted information sources, understanding what

actions to take, as well as access to finance.

Note:

1 Policy Snapshot: home.barclays/insights/2025/10/

making-sustainability-grants-work-for-SMEs/

TCFD Strategy Recommendation B

Working with clients on their transition (continued)

Noting these challenges, in UKCB we have

continued our collaboration with

SaveMoneyCutCarbon (SMCC) and have

expanded the collaboration to our Business Bank,

allowing a broader set of clients and customers the

opportunity to complete carbon mentor calls. These

calls assist clients in identifying practical steps to

reduce energy consumption and operating costs,

supporting measurable progress towards their

sustainability goals.

Nature markets, such as the Biodiversity Net Gain

(BNG) scheme in England, are opening potential

new revenue streams and the opportunity to better

utilise areas of unproductive land for landowners

and help property developers comply with

legislation. We continue to provide support for our

property developer and landowner clients through

our collaboration with Environment Bank.

To help clients across Business Banking and

UKCB access information and share insights we

have co-hosted regional roundtables with the

British Chamber of Commerce focusing on topics

such as supporting SMEs in the supply chain and

decarbonisation in the built environment. We

participated in various industry forums including

Icebreaker One's Perseus, UK Business Climate

Hub and the Net Zero Council and produced a

series of Thought Leadership reports for clients

and wider industry stakeholders, highlighting

potential barriers and opportunities in our

customers' and clients' transition journeys.

Investment Bank

Embedding sustainability in our business

We have embedded sustainability expertise directly

within our Investment Bank so that climate and

transition considerations are integrated into day to

day client coverage, financing and strategic

advisory activities. By placing sustainability

specialists alongside bankers in sector, product and

markets teams, we can identify transition‑driven

risks and opportunities earlier, develop tailored

financing and advisory solutions, and help clients

navigate rapidly evolving policy and technology

landscapes.

Leveraging our teams' expertise to work with

our clients

Across sectors, especially Energy, Power,

Industrials and Climate Technology, we

increasingly supported firms responding to the

major transition themes shaping 2025. These

included investment in grid modernisation,

growing renewable capacity, helping Industrial

clients decarbonise, and the rapid expansion of

battery storage and distributed energy solutions

needed to stabilise the system. Much of our work

focused on helping these businesses secure

financing and navigate the scale up challenges that

come with deploying new technologies at pace.

Our Sustainable and Transition Finance Advisory

team supported clients ahead of IPOs, M&A and

capital raises, helping them articulate their

transition strategy and address key investor

concerns such as policy exposure, technology

choices and capital expenditure plans.

Our Sustainable Investing Research team provided

data‑driven insights on the sectors undergoing the

most significant transition shifts, helping both

issuers and investors navigate emerging risks and

opportunities. Throughout the year, the team has

met with clients around the world to discuss key

sustainability themes and how to invest in them,

and hosted a number of flagship events. Our work

was recognised through industry rankings,

including #1 in FICC sustainable investing

research and ESG insight and UK's Best Bank for

ESG 1.

For further details on how we work with clients across specific sectors please see the Barclays Transition Update

Building relationships through engagement

with stakeholders

In 2025, Barclays strengthened client engagement

in sustainable finance by leveraging major industry

platforms, convening over 1,000 CEOs, investors,

corporates and policymakers across our flagship

Sustainable Finance Conferences, Climate Weeks

in London and New York, and COP30. These

forums focused on energy security, nature and

landscape restoration, carbon management, grid

optimisation and the commercial opportunities

within the transition.

Working with partners including the Sustainable

Markets Initiative, C2ES, Johnson Controls and

Fauna & Flora, we delivered practical sessions that

deepened client relationships, supported

knowledge-sharing and equipped clients with

actionable pathways for decarbonisation and

resilience.

Note:

1 In 2025 Barclays was ranked #1 by Extel for FICC

sustainable investing research and was also awarded

IFR’s Best Bank for ESG Insights and Euromoney's

award for the UK’s Best Bank for ESG for the third

consecutive year.

TCFD Strategy Recommendation B

Working with clients on their transition (continued)

Client Transition Framework (CTF)

In 2025, we extended the CTF Methodology to

increase the scope of clients covered by our

assessments. For the first time, we have now

evaluated our in-scope publicly listed corporate clients

in all sectors across our Investment Bank and UK

Corporate Bank, as well as in-scope clients within our

UK Commercial Real Estate portfolio. This is in

addition to continuing our annual CTF assessments

for in-scope clients in the previously assessed sectors

(Upstream Energy, Power, Steel, Cement,

Automotive Manufacturing, & Aviation). The

continued use of AI for data collection of clients

public disclosures has enabled this expanded scope

and has approximately quintupled the total limits

covered by our assessments versus 2024. The

aggregate 2025 CTF results reflects the impacts of our

expanded scope, methodology updates, and lending

activity.

The CTF evaluates our in-scope clients’ progress

towards business models aligned to a low-carbon

economy, primarily focused on clients' public

disclosures. It provides a detailed understanding of

clients’ current and future transition activities.

Clients who are assessed receive a CTF score of T1

(most developed) to T5.

The CTF helps us monitor and measure the

decarbonisation progress of our in-scope clients,

which in turn informs our engagement efforts.

Engaging with our clients to assist with understanding

their businesses, the challenges

they face and the risks and opportunities they are

seeking to address is critical to our ability to

support them as they navigate the transition to

a low-carbon economy.

In the sectors where we have set financed emissions

reduction targets, these scores inform our engagement,

origination decisions, and portfolio management, and

help ensure that our approach is both commercially

disciplined and forward-looking, enabling us to

support clients credibly whilst managing transition-

related exposures across the bank. We intend to

implement this approach for UK Commercial Real

Estate during 2026. For sectors where we have not set

financed emissions reduction targets, we will continue

to consider how we embed the outputs from these

CTF assessments during 2026. In all cases, financing

decisions continue to remain transaction-specific and

subject to standard committee reviews including for

credit risk, reputational risk, and

capital impact.

Since the CTF relies on clients' public transition

plans and other related disclosures, changes in the

breadth, depth, or frequency of these, often

voluntary, disclosures could materially impact

assessment results.The scores should be considered

against the backdrop of evolving market dynamics

and developments in the

policy landscape.

For further details please see the Barclays Transition Update

Incorporating nature into the CTF

In 2025, we extended nature-related criteria within our

CTF assessments to cover four sectors in total: Power,

Mining, Automotive Manufacturing and Food,

building on the pilot conducted for the Power sector

last year. The evaluation focuses on governance,

strategy, risk management and metrics and targets,

providing a structured view of how clients are

integrating nature considerations into their business

models. Initial findings show around one in five link

executive remuneration to nature and around two

thirds have an executive accountable for nature, across

the four sectors. These insights will help to inform

client engagement activity for next year.

Aggregate CTF results1, 2(% by lending limits)

T1

T2

T3

T4

T5

T1

T2

T3

T4

T5

T1 (most developed)

T5 (least developed)

c.5 x increase of

in scope limits

Notes:

1 Clients may have scores in multiple sectors but are

included only once to avoid double-counting.

2 Given the expanded scope in total limits covered in 2025,

aggregate CTF results are not directly comparable with 2024

Private Bank and Wealth Management

Responsible investing and stewardship

Private Bank and Barclays Investment Solutions

Limited (BISL)1,2

Private Bank and BISL provide clients with access

to sustainable investing solutions across asset

classes and investment approaches, within

discretionary portfolio management (DPM) and

managed funds. These are available alongside

traditional investment products and allow clients to

align investments with their financial objectives and

where relevant, sustainability preferences.

We support clients in meeting financial and, where

applicable non-financial objectives. This includes

clients who consider transition-related risks and

opportunities to be financially material to long-term

portfolio performance, as well as those seeking

exposure to areas such as clean energy, resource

efficiency, and low-carbon technologies, while

managing downside risks in sectors exposed to

regulatory change, evolving market expectations, or

physical climate impacts.

Where relevant to the investment strategy and asset

class, as part of the investment process, we assess,

among other things, an issuer’s/company’s

management of environmental, social and governance

related risks and opportunities, helping to identify

risks and opportunities that are financially material

and may affect long term returns.

TCFD Strategy Recommendation B

Working with clients on their transition (continued)

Private Bank and BISL are signatories to the

Principles for Responsible Investment (PRI). BISL

became a UK Stewardship Code signatory in 2023

and continues to meet the Code’s requirements

through periodic reassessment. Since our initial PRI

reporting, we have continued to enhance our ESG

integration 3 approach, supporting meaningful client

engagement as well as through engagement and

voting as core components of responsible

investing 4,5.

For Private Bank clients please find further details on the Private Bank's approach to responsible investing and stewardship activities at: privatebank.barclays.com/what-we-offer/investments/responsible-investing-engagement-and-voting-activities For Wealth Management clients please find further details on BISL's approach to responsible investing and stewardship activities at: barclays.co.uk/wealth-management/important-information/responsible-investing-statement

We undertake this activity in partnership with our

stewardship provider, EOS at Federated Hermes

Limited (EOS), which engages with companies on

our behalf where they identify controversies and

selected material ESG issues or opportunities to

strengthen risk management practices 3,5. We

provide transparent reporting to our clients and

publicly on engagement and voting activity, giving

visibility on how these matters are escalated and

considered over time.

During 2025, we delivered targeted client

engagement events to help clients understand how

climate-related developments and the energy

transition may influence financial markets, asset

classes and investment decision making. Sessions

covered key sustainability concepts and emerging

technologies (including hydrogen, carbon capture,

utilisation and storage and energy storage) and how

these themes may translate into investment risks,

opportunities, and portfolio construction

considerations.

Notes:

1 Private Bank and Wealth Management (PBWM) is one of

Barclays’ five operating divisions (created during the

2024 Group restructuring). It brings together the Private

Bank and the Wealth Management businesses under a

single division. The Private Bank is a client-facing

business line within PBWM, providing investment

offerings. BISL is a wholly owned UK investment firm,

operating within PBWM which serves as the investment

manager responsible for delivering DPM and

fund‑of‑fund solutions used across PBWM investment

offerings.

2 Private Bank operates across multiple jurisdictions,

including Ireland, the UK, the Channel Islands,

Switzerland, India, South Africa, Dubai International

Financial Centre, Monaco and Singapore. BISL manages

investments for Barclays Asset Management Limited

(BAML is an Authorised Fund Manager) for its UK

domiciled funds and is delegated investment manager for

external management companies for selected

Luxembourg and Irish domiciled funds. BISL is

responsible for making all day-to-day investment

decisions on behalf of each fund range wherever it is

domiciled.

3 Please refer to the respective Private Bank

privatebank.barclays.com/what-we offer/investments/

responsible-investing-engagement-and voting-activities

and BISL Responsible Investing (barclays.co.uk/wealth-

management/important information/responsible-

investing-statement) websites for more details.

4 Applies to Private Bank DPM and BISL DPM and BISL

funds. Responsible Investing activities are not undertaken

in India; where strategies are developed for the local

market.

5 Please note our stewardship approach (guided by our

stewardship provider EOS) may differ across different

regions. Any voting is undertaken in line with applicable

laws and rules, including on antitrust, conflicts of interest

and acting in concert.

Treasury green programmes

Green bond investment portfolio

Barclays Treasury invests in green bonds as part of

the liquidity pool. As an investor we undertake

work to ascertain the sustainability credentials of

proposed investments. We engage with green,

social and sustainability bond issuers to understand

how their frameworks and goals align with our

investment approach. The proceeds of our green

bond investments fund projects in areas such as

renewable energy and clean transport. We continue

to consider new investments in supranational

organisations and government-issued green bonds

as they become available, with the aim to invest

£4bn over time.

Green bond investment portfolio size by year (£bn)

2025

2024

2023

2022

Green bond investment portfolio impact by sector (%)

We've

Green bond investment portfolio impact by region (%)

TCFD Strategy Recommendation B

Financing clients’ transition

Barclays is helping to provide the sustainable and transition finance needed to support the transition to a low-carbon economy and has set a target to facilitate $1trn of Sustainable and Transition Finance between 2023 and the end of 20301. Our ability to meet the target and annual progress towards it, is subject to external factors such as policy, laws and geopolitics. For 2025, we generated just under £0.6bn of revenues from sustainable and transition-related activity2.

Progress against our $1trn target

Our target to facilitate $1trn of Sustainable and

Transition Finance between 2023 and the end of

2030 encompasses the green, social, transition and

broader sustainability-linked finance requirements

of clients including corporates, governments and

the public sector, financial institutions and

consumers.

Progress towards delivering our target will be non-

linear and will be shaped by market demand,

evolving policy and regulatory developments;

however so far capital flows into the transition

have remained resilient. We will continue to

review and adapt our approach to Sustainable and

Transition Finance in response to the evolving

market environment.

During 2025, we facilitated $98.5 bn of Sustainable

and Transition Financing 3, comprising $94.0bn in

sustainable financing, (2024: $88.7bn) and $4.5 bn

in transition financing, (2024 :$5.7 bn). Bond

issuance 4 remained the largest product category,

representing 72% of total Sustainable and

Transition Financing. Loans and equity accounted

for 24% and 1% respectively. This mix represents

growth in bond activity and a shift away from

loans and equity, compared with 2024, when the

composition was 69% bond issuance, 22% loans,

and 5% equity. As at the end of 2025 we had

facilitated a cumulative $260.7 bn of Sustainable

and Transition Financing.

Sustainable finance

Sustainable finance, aligned to our Sustainable

Finance Framework (SFF), consists of dedicated

use of proceeds financing for clients with an

eligible business mix in relevant greenand/or

social categories, and sustainability-linked

financing.

In 2025 our sustainable financing activities

continued to support progress towards the UN

Sustainable Development Goals (SDGs). Through

the categories defined in our Sustainable Finance

Framework (SFF), we assess how eligible social

and environmental finance contributes to SDG

aligned outcomes, including affordable and clean

energy, climate action, sustainable cities and

communities, good health and wellbeing,

affordable housing and basic infrastructure. As our

understanding evolves, we continue to refine our

approach to tracking and reporting SDG

contributions, which are disclosed in our

Sustainability Resource Hub 5.

Social finance

Raising finance for clients including supranational,

national and regional development institutions was

a key driver of the $40.2 bn of social financing

facilitated in 2025 (2024: $46.2 bn). In 2025, we

continued to see issuers aligning their finance

commitments to social use of proceeds bonds

which allocate funds to categories such as access to

healthcare, affordable housing and essential

Environmental finance

In 2025, we facilitated $42.1 bn of green or

environmental financing (2024: $30.6 bn). This

performance reflected continued demand from our

clients and our strategy to support them in the

transition to a low-carbon economy.

Sustainability-linked finance

Instruments such as sustainability-linked bonds

(SLBs) and sustainability-linked loans (SLLs) are

forward-looking, performance-based debt

instruments issued with specific sustainability

performance targets. Our sustainability-linked

financing totalled $11.7 bn in 2025 (2024:

$12.0 bn). We expect product innovation in the

sustainability-linked market given its importance to

both investors and issuers alike.

Transition finance

We published version 2.0 of our Transition Finance

Framework (TFF) in February 2026, which

introduced changes to product scope, eligibility

and screening. See page 42 for further detail.

Over 2025, we generated $4.5 bn of transition

financing compared to $5.7 bn in 2024.

Notes:

1 This Target was previously known as the $1trn

Sustainable and Transition Financing Target

2 Activity refers to transactions, products and

counterparties. Sustainable revenues as at 31 December

2025 is defined more broadly than finance covered by the

Sustainable Finance Framework and the Transition

Finance Framework and covers the net revenue on the

following:

a) Revenues generated from providing financing and

lending activities and products qualified as per the SFF

and TFF;

b) Revenues from providing a broader range of products

and services to counterparties assessed as 'pure play' as

defined in the SFF and TFF. This includes all applicable

qualifying revenues from M&A advisory, risk

management solutions including derivatives, and liability

products associated with the counterparty (as referenced

in table on page 42);

c) Revenues from qualifying products and services

outside of the SFF and TFF, from Markets and Private

Bank and Wealth Management offerings (as referenced in

table on page 42);

d) Revenues from investments in Barclays Climate

Ventures (BCV).

3 In the 2026 update to the Barclays Sustainable Finance

Framework the reference to the target has been updated

to reference the facilitation of $1 trillion Sustainable and

Transition Finance between 2023 and the end of 2030

(the "Target") and accordingly references to the Target in

this Annual Report have been reflected as such other than

in this reference.

4 Bond issuance includes Bonds (DCM), CMBS,

Securitisation, Munis and PCM Debt.

5 Barclays Sustainability Resource Hub: home.barclays/

our-sustainability-/sustainability-resource-hub/reporting-

and-disclosures/

TCFD Strategy Recommendation B

Financing clients’ transition (continued)

Sustainable finance dashboard

Annual breakdown by category($bn)

2025

2024

Annual breakdown by region($bn)

2025

2024

2025

2024

Annual breakdown by product($bn)

Note:

1 For further detail on revenue definition see footnote 2 on page 41.

Barclays' Sustainable and Transition

Finance Frameworks

Sustainable Finance Framework

We seek to be transparent about our approach to

reporting against our sustainable finance targets.

Our sustainable finance is tracked using the

methodology set out in the Barclays Sustainable

Finance Framework (SFF). This framework defines

the criteria we use for green, social, sustainable and

sustainability-linked finance.

The legal and regulatory landscape relating to

sustainable finance – including the naming and

categorisation of products as ‘green’, ‘social’,

‘sustainability-linked’ and otherwise – is rapidly

evolving with differing regulations across

jurisdictions. We may wish to revisit our approach

in that context in the future.

There is currently no globally accepted framework

or definition (legal, regulatory or otherwise)

governing what constitutes 'ESG', 'green',

'sustainable', or similarly labelled products – nor is

there unanimous agreement on what attributes a

particular investment, product or asset should have

to be labelled as such.

We recognise that the quality, consistency and

comparability of the data relied upon is not yet of

the same standard as more traditional financial

metrics and presents an inherent limitation to the

performance reported. We will continue to review

available data sources and enhance our

methodology and processes to improve the

robustness of the performance disclosed.

Transition Finance Framework

Our transition finance is tracked using the

methodology set out in the Barclays Transition

Finance Framework (TFF). The TFF sits alongside

Barclays' SFF and determines the eligibility of

transition activities that are outside the green and

social sustainable finance criteria already covered

by the SFF.

The inclusion of transition finance in this target

reflects our recognition of the importance of

lending, facilitating funding and investing in

technologies and activities that support GHG

emissions reduction, directly or indirectly, in high-

emitting and hard-to-abate sectors and finance real-

economy decarbonisation.

As innovation in sustainable and transition finance

continues to accelerate, we will continue to review

and update our SFF and TFF, our measurement of

performance against targets, and keep our general

approach under review.

TCFD Strategy Recommendation B

Financing clients’ transition (continued)

Framework updates

We published version 5.0 of SFF and 2.0 of TFF in

February 2026, with changes to product scope,

eligibility criteria and transaction screening

processes.

The following changes apply from 1 January 2026:

•Product scope: we will include eligible M&A

advisory andwill also include finance provided

to banks and funds, provided these activities

align with the SFF/TFF;

•Eligibility criteria: we will includea new

general purpose category in the TFF aligned to

evolving market practice and guidelines for

classifying entity level Transition Finance, as

well as a Transition Incentive Products category

for BUK and UKCB clients . Furthermore, we

have been supported by technical expertise from

The Biodiversity Consultancy to incorporate

nature-related criteria into the TFF for the first

time and to expand nature-related eligibility

criteria in the SFF;

•Risk management: we will widen our

environmental and social screening approach for

qualifying transactions and clients in the SFF/

TFF;

•Derecognition: we will update our approach to

derecognise transactions which become

ineligible based on our derecognition processes.

In line with the updated SFF and TFF, our $1trn

target will be referenced as Sustainable and

Transition Finance from 2026 onwards.

Barclays' SFF and the TFF can be found at: home.barclays/our-sustainability-/sustainability-resource-hub/reporting-and-disclosures/

Retail Bank

Through our financial products and partner offers,

we support our UK retail customers in purchasing

energy-efficient homes and in retrofitting their

properties to help reduce their energy consumption.

Green Home Mortgage

We continue to support custo mers purchasing EPC

A- and B-rated new-build homes with our Green

Home Mortgage, launched in 2018 and expanded

to buy-to-let in 2022. In 2025, we broadened our

Green Home Mortgage range, now supporting

more customers by offering LTVs from 60% to

90% . Our Green Home Mortgage has performed

strongly, with £2.4bn lent to Green Home

Mortgage customers in 2025. Since inception,

Barclays UK has lent over £7.1bn to Green Home

Mortgage customers.

Further details on Barclays Green Home Mortgages can be found at: barclays.co.uk/mortgages/green-home-mortgage/Further details on Barclays Green Buy-To-Let Mortgages can be found at: barclays.co.uk/mortgages/green-buy-to-let-mortgage/

Green Home Mortgage completionsNumber of completions

Value of completions (£m)

TCFD Strategy Recommendation B

Financing clients’ transition (continued)

Greener Home Loan

In 2025, we continued our Greener Home Loan

pilot, offering a cashback of up to £250 for eligible

current account customers who take out a loan and

use the money for qualifying energy-efficiency

home improvements. We continue to monitor take-

up and retrofit type, with solar being the most

popular installation with 59% ofclaims where

cashback payment was made.

In 2026, following the pilot, the Greener Home

Loan will be considered for inclusion within our

full product range to continue supporting our

customers in making home energy-efficiency

improvements.

Business Bank

In 2025, uptake of Green Loans for Business

continued to grow, supporting more customers than

in any previous year to adopt eligible green assets.

Our research showed that 48% of those of our UK

farmers surveyed want products and services which

incentivise them to farm more sustainably. In

2025, we launched Farm Transition Finance, which

provides lending with discounted interest ratesto

agricultural businesses demonstrating adoption of

more sustainable or regenerative practices. The

facility is designed to support those clients making

improvements in soil health, biodiversity, water

efficiency and emissions reduction, thus supporting

farmers and the UK agricultural transition.

To enhance UKCB's sustainable client engagement

we have integrated Sustainable Product Group

specialists into the new dedicated UKC Sustainable

Finance team.

Empowering UKCB Clients

We continued to support our clients with

sustainability-aligned corporate banking solutions 1

to help enable clients to embed their sustainability

and transition ambitions into financing structures

through traditional and sustainability-linked and

green products.

UKCB Green Loans

In 2025, UKCB successfully launched the Fee Free

Green Loan programme to help support UK clients'

sustainable growth plans and transition to more

sustainable operations. The product offers loans

with no arrangement fees for projects with an

eligible green purpose 2. Since launch we have

identified a variety of opportunities that could

utilise the programme.

UKCB Green loans under Sustainable

Residential Development Framework (SRDF)

We updated our SRDF 3 following its launch in

2022 to address evolving market and technological

advances, regulation and policy. This proposition

and framework provides a holistic and balanced

approach to key sustainability themes including

whole-life carbon, natural resources and social

engagement.

Notes:

1 Sustainability-aligned corporate banking solutions:

barclayscorporate.com/solutions/sustainable-solutions/

2 Barclays green purpose as defined in the Sustainable

Finance Framework.

3 Sustainable Residential Development Framework.

TCFD Strategy Recommendation B

Financing clients’ transition (continued)

Investment Bank

Our Investment Bank plays a role in financing our

clients’ transition by providing access to capital

markets, structuring innovative financing solutions

and connecting issuers with investors focused on

the transition. In 2025, we continued to work with

clients across sectors as they sought to invest in

renewables, strengthen grid and storage

infrastructure, scale emerging technologies and

accelerate decarbonisation across their operations.

We also supported major sovereign and public

sector entities in mobilising capital at scale.

Barclays played key roles, such as Joint Active

Bookrunner, facilitating capital raising for

national-level transition priorities including

renewable energy deployment, grid and network

upgrades, climate resilience infrastructure and

broader economic diversification programmes

In the wider debt capital markets, we supported

clients across sectors such as Power Generation

and Industrials to issue sustainable and transition

aligned instruments that channel investment into

the areas most critical for decarbonisation

including, renewables expansion, energy efficiency

improvements, low‑carbon transport, industrial

electrification, and next‑generation technologies

such as storage, nuclear and hydrogen. This

activity contributed to Barclays achieving a #1

ranking for UK Sustainable Labelled Bonds and a

#2 ranking for 2025 Global Corporate Sustainable

Labelled Bonds 1.

Through our bookrunning and underwriting

activity, Barclays supported clients’ transition

financing across a series of significant equity

capital markets transactions. This activity enabled

continued investment in low carbon and resilience

focused programmes. Proceeds from these

transactions were used to refinance maturing

sustainability‑linked instruments, fund regulated

infrastructure cycles and scale next generation

energy and power‑system technologies. For

example we acted as Joint Global Coordinator and

Joint Bookrunner for SSE’s £2bn equity placing,

underpinning its five-year £33bn investment plan,

which will support the upgrading and expansion of

Britain’s electricity networks. The transaction

further exemplifies our role in enabling the

delivery of critical transition infrastructure.

In project finance, activity remained strong as

clients pursued new renewable generation, storage,

and network projects. By bringing together

technical, financing and risk management

expertise, we have grown our project finance

threefold since 2020, including lead roles in all

greenfield UK fixed-bottom offshore wind project

financings closed in this period.

Our Markets team continued to help clients

manage exposures linked to their transition

strategies. To deepen this support we launched the

Barclays Bank PLC Sustainability Issuance

Programme Framework that sets clear eligibility

criteria for sustainability issuance products,

including debt securities anddeposits 2, issued by

Barclays Bank PLC and select subsidiaries. The

Framework complements the Barclays SFF and

enhances the tools and infrastructure we use to

finance clients’transition at scale 3.

Notes:

1 Data from Dealogic as at 31st December 2025.

2 Barclays Sustainability Issuance Framework.

TCFD Strategy Recommendation B

Scaling climate technology

Scaling climate technology is integral to accelerating the transition. Innovation is a key driver for opening new avenues for profitable decarbonisation. However, innovation alone is not enough. Widespread adoption is needed to convert emerging solutions into commercially mainstream, system-integrated offerings.

Climate Tech Escalator

Now in its second year, the Barclays Climate Tech

Escalator provides a connected pathway that brings

together the business units and partnerships

dedicated to growing climate tech companies. The

Climate Tech Escalator supports scaling by

providing tailored, dedicated support as the

companies grow and helps them to harness the

power of capital markets. In June we launched our

Barclays Innovation Banking proposition within

the Business Bank, with Climate Tech as one of the

four core sectors. Innovation Banking provides

support for next-level growth through our

dedicated relationship managers, financial products

and network of Eagle Labs, including the

rebranded Barclays Innovation Hub in Shoreditch.

We continue to recognise the funding challenge

inhibiting the success of growth-stage climate tech

companies, particularly those at the Series B+

investment stage. In November, we announced our

participation in Salica Investments Growth Debt

Fund II, to expand the range of venture funding

options to high-growth innovation-led businesses

in the UK.

The addition of venture funding provides growth

stage companies with the opportunity to extend the

funding continuum from Business Banking to

Corporate Bank and onto Investment Bank as the

companies grow.

Barclays Climate Ventures

A key pillar of the Climate Tech Escalator is

Barclays Climate Ventures (BCV), which has a

mandate to invest up to £500 million of Barclays’

capital in climate tech start-ups by the end of 2027

to help address the funding gap facing early and

growth-stage climate technology companies.

Many such companies are capital-intensive and

face longer paths to commercial scale than

traditional venture-backed businesses. Barclays

Climate Ventures aims to help bridge this gap,

helping to crowd in additional funding 1.

Access to Barclays’

expertise and

the bank’s wider

ecosystems

Synergies

between portfolio

companies

Climate

Ventures

Accelerate growth and

net zero through adoption

of innovative technology

by Barclays’ client base

Further examples of our green innovation financing can be found at: home.barclays/sustainability/our-position-on-climate-change/accelerating-the-transition/sustainable-impact-capital/

BCV prioritises investments into commercially

scalable technologies that can unlock the transition

for the high-emitting sectors in which we have

meaningful client exposure, such as energy and

power, real estate, and food and agriculture.

Since 2020 £274m has been invested in over 20

companies, with £71m invested in 2025.

Note:

1 See 2025 Climate-Tech-Report for further details.

£274mAchieved as of the end of 2025

Our portfolio of investments since 2020 (£m)

TCFD Strategy Recommendation B

Climate tech partnerships

and initiatives

In 2025, Barclays strengthened its work on climate

innovation through strategic partnerships,

accelerator programmes and mentoring support.

Our partnership with Sustainable Ventures has

expanded to launch a National Climate Tech

Accelerator with the Innovation Banking team

providing a digital-first programme designed to

reach ventures across the UK with support from

Barclays Eagle Labs. It combined free access to

platforms with enhanced services for Barclays

banked customers.

Business Bank Sustainable Finance sponsored

Bright Tideto deliver programmes to Climate Tech

businesses focused on 'Sustainability and AI' and

'Agriculture and Oceans'. This year also marked

the third year of the Carbon 13 Venture

Launchpad, These two programmes focused on

venture growth, investment and carbon impact for

early-stage climate tech startups.

Specialist sustainability mentors have also been

added to the existing Eagle Labs mentoring support

with a focus on practical, commercially-minded

sustainability such as carbon accounting, strategy,

circular economy and regenerative agricultural

practices.

In 2025 we announced a collaboration with

ExpectAI, aimed at helping small and medium-

sized businesses grow their profits using AI-based

sustainability insights. SMEs generate about half of

UK private-sector turnover and employ around

60% of the workforce 1. Strengthening their energy

resilience while reducing emissions is essential to

the UK’s economic transition. This initiative will

assess how advanced AI can make this both

practical and commercially attractive for SMEs.

These initiatives reflect Barclays’ ongoing work to

help foster innovation and support the UK’s

climate tech landscape, supported by the launch of

Barclays Innovation Banking in Barclays UK.

Unreasonable Impact

Since 2016, through its Unreasonable Impact

programme, a partnership between Barclays and

Unreasonable Group, Barclays has supported 3952

high-growth ventures that seek to address global

issues, through networks, resources and

mentorship. Hundreds of Barclays colleagues

around the world have been involved in coaching

the participating entrepreneurs. Through regional

gatherings and ongoing community-building

initiatives, the programme is designed to help

participants form strategic relationships and solve

key challenges facing their businesses to help them

scale.

Unreasonable Impact entrepreneurs are pursuing

solutions across a range of industries from food

and agriculture to energy and manufacturing.

Several of these high-growth ventures have also

been supported through Barclays Climate

Ventures, and some are involved in Barclays’ own

operations today. To date, the Unreasonable Impact

ventures have raised more than $18bn in financing

and employ more than 33,000 people globally.

Further details on Unreasonable Impact can be found at: home.barclays/sustainability/supporting-our-communities/unreasonable-impact/

Notes:

1 See the "Business population estimates for the UK and

regions 2025: statistical release" for more details.gov.uk/

government/statistics/business-population-

estimates-2025/business-population-estimates-for-the-uk-

and-regions-2025-statistical-release

2 After achieving its goal to support 250 ventures by the

end of 2022, Barclays aims to support an additional 200

ventures through Unreasonable Impact, from 2023

through end 2027.

TCFD Strategy Recommendation B

Reducing our financed emissions

We are committed to aligning our financing with the goals and timelines of the Paris Agreement, consistent with limiting the increase in global temperatures to 1.5°C. To meet our ambition, we need to reduce the client emissions we finance – not just for lending but for capital markets activities too.

Estimating the full in-scope balance sheet financed emissions

Scope of activities included and basis of preparation

We have estimated the financed emissions for c.£856 bn of Barclays' activity as at December 2024 (of

which c. £459 bn are on-balance sheet exposures) as set out in the following table.

We work closely with our clients to ensure that

over time the activities we finance are aligned to

the goals and timelines of the Paris Agreement.

Consistent with our Purpose, and taking into

account considerations of all relevant business

factors, we have set emissions reduction targets for

our Upstream Energy, Power, Steel, Cement,

Automotive manufacturing, Aviation, UK

Commercial Real Estate, UK Agriculture portfolios

and convergence point for UK Housing. We have

also set clear restrictions on financing certain

Further details on our financing restrictions can be found on page 164

Understanding our financed emissions

A building block for Barclays' ambition to be a net

zero bank by 2050 is our ability to estimate the full

in-scope balance sheet financed emissions:

1. In 2020, we developed our BlueTrack™

methodology to measure our financed emissions

and track our progress against our Upstream

Energy and Power generation targets. As of

2023, we extended the scope of our calculations

to cover the full in-scope balance sheet financed

emissions based on methodology which has been

developed using the PCAF Standard 1 and

expanded the scope of BlueTrack™ to track our

progress against targets for a total of eight

sectors as well as UK Housing for which we set

a convergence point.

2. In 2025, we have refreshed our estimate of full

in-scope balance sheet financed emissions.

These emissions are set out on pages 48 to 51

where we also set out further information about

this methodology. Because it takes time to fully

analyse this data, these emissions are as at

December 2024. For sectors where we have set

2030 targets, we have continued to use the

BlueTrack™ methodology and have updated our

financed emissions metrics and progress against

those targets with data as at December 2025.

Our approach to disclosing financed emissions is

pivoted across two sections:

1. Estimating the full in-scope balance sheet

financed emissions (Scope 3, Category 15) using

a methodology which has been developed using

the PCAF Standard. The data reported in this

section of the Annual Report (up to page 51) is

as at December 2024. Hence, these numbers

follow a lag of one year when compared to other

climate-related disclosures based on December

2025 in this report, due to the lead time required

to fully analyse our entire in-scope exposures.

2. Continuing to use the BlueTrack™ methodology

to assess financed emissions for material sectors

and set 2030 targets integrating 1.5°C aligned

scenarios. This data is being reported as at

Note:

1 PCAF Standard - PCAF (2022). The Global GHG

Accounting and Reporting Standard Part A: Financed

Emissions. Second Edition.

TCFD Strategy Recommendation B

Our approach for estimating financed emissions is

based on a methodology which has been developed

using the PCAF Standard with the following key

exceptions:

1. We have gone beyond the scope of PCAF’s

definition of asset classes to additionally cover

undrawn commitments, contingent liabilities and

capital markets financing activities. For

instance, in the case of a loan we consider the

committed amount (both drawn and undrawn),

as opposed to just outstanding amounts (which

is the approach preferred by PCAF) for

calculating financed emissions.

2. We have also consistently used the book value

of equity and debt for all clients to calculate the

attribution factor, while PCAF recommends

using the Enterprise Value Including Cash

(EVIC) for listed entities.

3. PCAF recommends calculating emissions at a

client level. For certain sectors, clients could

have presence in activities across multiple parts

of the value chain and in such cases reported

emissions may not be consistent and reliable to

estimate financed emissions. To overcome this

challenge we calculate emissions at an activity

level, using a range of options aligned to the

PCAF Standard's guidance to calculate client

For certain activities – including Upstream Energy,

Power Generation, Automotive manufacturing, UK

Agriculture and Aviation – we employ asset-level

production data to estimate client emissions. For

activities such as Cement and Steel production, we

use client reported emissions. Where we do not

have sufficient data on reported emissions or

physical activities – for example, in relation to

mortgages where we do not have EPC data

available – we use fallbacks based on emission

factors.

For an immaterial part of our balance sheet

(c.1%), where the appropriate sector fallbacks

could not be reliably obtained, we have used the

respective asset class average economic emissions

intensity to estimate emissions.

Our Financed Emissions Methodology paper (published in 2026) provides more details of our methodology and can be found within the Sustainability Resource Hub: home.barclays/our-sustainability-/sustainability-resource-hub/reporting-and-disclosures/

Emissions coverage

We have estimated the full in-scope balance sheet

financed emissions based on Scope 1 and Scope 2

of our clients’ emissions as at December 2024.

Hence, these numbers follow a lag of one year

when compared to other disclosures based on

December 2025 in this report. The lag of one year

is due to the lead time required to fully analyse our

entire in-scope exposures.

We have excluded our clients’ Scope 3 emissions

from these calculations except for activities where

we have set a target which covers Scope 3

emissions (which includes Upstream Energy,

Automotive manufacturing, Aviation and UK

Agriculture). This is due to challenges in sourcing

reliable and consistent data, not just on reported

Scope 3 emissions but also the fallback emission

factors for downstream emission estimations. As

we refine our approach and data sourcing strategy,

we will continue toassess the suitability of

including Scope 3 emissions in our financed

emissions disclosures.

We have included emissions on a CO 2 e basis. For

activities where we have set targets, we have

included emissions relating to GHGs which are

relevant and material for the relevant sector.

One of the approaches that we can use to assess the

extent to which our financing is aligned to a well-

below 2 o C pathway is by calculating the extent to

which our financed emissions reduction targets

cover our full in-scope balance sheet.

Our 2030 financed emissions reduction targets (and

our UK Housing convergence point) covering

Scope 1 and 2 emissions integrate 1.5°C aligned

scenarios and cover 41% of our full in-scope

balance sheet financed emissions. This coverage

has decreased from 43% reported last year. This

reduction was primarily driven by increase in

emissions for energy midstream and downstream

activities which are outside the scope of our

Upstream Energy target and a decline in emissions

for power generation activities where we have set

targets. Our targets include Scope 3 emissions for

Upstream Energy, Automotive manufacturing,

Aviation and UK Agriculture.

TCFD Strategy Recommendation B

Financed emissions for activities with targets (as at December 2024)

Financed emissions for other activities not covered by targets (as at December 2024)

Notes:

1 For further details on Data quality score please refer 'Data sourcing and data quality'

section on page 51.

2 Emissions excluding land-use, land-use change and forestry.

TCFD Strategy Recommendation B

Data sourcing and data quality

There are data quality challenges inherent in the

calculation of financed emissions.

Climate data, models and methodologies are

evolving – and are not yet at the same standard as

more traditional financial metrics. Our financed

emissions calculations rely on externally sourced

data mapped to internal customer and client

identifiers. The externally sourced data has various

limitations for each sector, including lack of

coverage, low resolution, consistency and

transparency of company-reported data, as well as

the time lag for external sources to report estimates

or actuals. Time lags in our external data could be

as much as two years for data such as company

value, company revenue share, emissions,

production capacity and capacity factors. As a

result, our financed emissions metrics are at best an

estimate of our clients' activities on a given date,

using the external data available at that point in

time.

We have scored the quality of the data we have

used to estimate our financed emissions using

PCAF's Global GHG Accounting and Reporting

Standard. In the Standard, data quality score DQ1

and 2 relates to high quality data from company

disclosures, DQ3 to emissions estimated using

physical activity data and DQ4 and DQ5 to

deriving emissions estimated using revenue or

asset-based emission factors. We disclose DQ

score at an activity level and at portfolio level.

For activities where we have set targets (and for

our UK Housing convergence point), DQ is mostly

concentrated across DQ1/2 and DQ3, signifying

that most of the relevant estimated financed

emissions are either company-reported or

calculated using the company’s physical activity

data.

For activities where we have not set targets,

activities have DQ score spread across the scale

which signifies we have used a combination of

company-reported emissions and revenue/asset

fallbacks to calculate financed emissions.

Our data vendor does not provide a split for

reported emissions between DQ1 and DQ2. Hence,

where we have relied on reported emissions

sourced from the data vendor, we have

conservatively used DQ2 for calculating DQ scores

at an activity level. This indicates that we need to

consider the current estimate of financed emissions

for these activities as highly preliminary and

indicative only, and which can change materially

as we improve data quality.

Our approach to reporting financed

emissions data

Given the evolving nature of climate data, models

and methodologies, past-period metrics may

change to reflect updates. To manage the impact of

these changes we have adopted a principles-based

approach to guide whether prior metrics and

baselines should be restated or re-baselined. Where

information has been restated or re-baselined this

will be identified or explained.

We will continue to review and evolve our

approach as our processes mature and as

accounting practices become clearer.

•A restatement involves updating the historical

starting point for a period and, if the impact is

greater than five percentage points, recalculating

the historical performance.

•A re-baseline involves keeping the historical

performance constant and recalculating the

current period baseline to ensure consistency

when reviewing performance. The indicative

historical baseline will also be disclosed.

As a result, reported baseline metrics may change

from one reporting period to another and direct

like-for-like comparisons may not always be

possible from one reporting period to another.

Updates in external client data are captured in-year.

In line with our reporting approach for past period

metrics, we have re-baselined the following

metrics:

•Our Power baseline physical intensity metric

from 311 to 316 kgCO 2 e/MWh to reflect

revisions to our model and data sourcing. Since

the net impact of these revisions to the reported

progress was below our restatement threshold,

we have not restated the past period progress,

instead reflecting the impact in 2025.

•In 2025, the UK Housing portfolio intensity

metric has been re-baselined from 32.1 to 27.9

kgCO 2 e/m 2 to reflect an updated methodology

which now considers sensitivities to energy

consumption patterns using publicly available

data which has a two-year lag. Despite the lag,

the additional information helps to better reflect

actual consumption trends.

•Our UK Commercial Real Estate portfolio

intensity metric has been re-baselined from 30.0

to 26.3 kgCO 2 e/m 2 to reflect a similar updated

methodology noted above as well as an

expanded scope of the assessment to include

capital market financing activities.

Please refer to page 55 for the re-baselined metrics

for these sectors.

TCFD Strategy Recommendation B

Our approach to reporting financed emissions data

Financed emissions in scope

of our targets

Our targets

We set our initial targets for our Upstream Energy 1

and Power portfolios in 2020, and since then have

expanded the scope of sectors covered under a target

to also include Cement, Steel, Automotive

manufacturing, Aviation, UK Commercial Real

Estate and UK Agriculture. We have also set a

convergence point for the UK Housing sector.

We keep our targets, policies that support our

progress towards them, and our year-on-year and

cumulative progress under review in light of the

rapidly changing external environment and our need

to balance a range of factors when managing our

portfolios, including commercial objectives, effective

risk management and the need to support

governments and clients both in delivering an orderly

transition and providing energy security.

See page 57 for information on future target progress.

Measuring our progress

We have developed our BlueTrack TM methodology to

measure and track our progress against our targets.

The first step of our methodology is to use an

external climate scenario to construct a Paris-aligned

portfolio benchmark that defines how a given

financing portfolio will need to reduce emissions over

time. We estimate certain financed emissions within

the selected boundary for a sector, then aggregate

these into a portfolio-level metric, which is then

compared to the benchmark. Our approach is

explained in more detail below.

Our Financed Emissions Methodology paper (published in 2026) provides more details of our methodology and can be found within the Sustainability Resource Hub at: home.barclays/our-sustainability-/sustainability-resource-hub/reporting-and-disclosures/

Sector boundaries

We have set targets on the segment of the

value chain where either (i) it is generally

recognised that decarbonisation efforts are likely to

spur the rest of the sector value chain to fall into

alignment or (ii) where financiers are likely

to be able to engage with companies active

in that segment. Our choice of segment is based on

Barclays' own view, informed by guidance and

recommended practice from portfolio alignment

initiatives such as PACTA, SBTi and others.

TCFD Strategy Recommendation B

Emissions scope

Within the boundary of our target we aim to

capture the part of a company's value chain that

generates most of their emissions, taking into

account considerations including materiality,

consistency to benchmark, level of control and

whether the emissions can be abated by the

company. The financed emissions covered under

BlueTrack TM are therefore a subset of the total

financed emissions for each customer or client, as

they only include the portion of the client's

activities that are within both the value chain we

have chosen for the sector, and the scope and type

of greenhouse gas emissions we deem material for

that activity. For example, our Upstream Energy

target includes Scope 3 emissions for carbon

dioxide and methane – recognising they are

significant for a company extracting fossil fuels.

Use of carbon credits

We do not allow company-purchased offsets such

as carbon credits to reduce emissions, as we

believe it is important to base a metric on

operational activities under a company's control.

We therefore do allow company-operated

removals, such as on-site carbon capture at a plant.

Given that company-operated removals are

currently marginal in the context of emissions, they

currently have no impact on our portfolio-financed

emissions metrics.

Portfolio-level metrics

Barclays uses two financed emissions metrics:

1. Absolute emissions: a measure of the absolute

emissions generated, or fair share of the

company's emissions over time;

2. Emissions intensity: how much CO 2 e (Carbon

Dioxide Equivalent) is released on average for a

certain amount of economic activity or material

produced.

We use absolute emissions for the Upstream

Energy and UK Agriculture sectors, whose

decarbonisation pathways rely on a reduction in

production volume as well as on a reduction in

intensity. The Upstream Energy sector cannot

reduce its carbon emissions intensity below a

certain point – a barrel of oil cannot be

decarbonised, for instance – and therefore a

reduction in absolute carbon emissions is more

appropriate. The Agriculture sector requires a shift

away from the production of meat and dairy

towards alternative protein sources, as farmers

respond to changing diets, and therefore a

reduction in absolute emissions is more

appropriate. We use emissions intensity for the

other sectors, whose decarbonisation pathways rely

primarily on reduction in intensity rather than

volumes. Both absolute and intensity metrics are

sensitive to factors which are not directly related to

real-world emissions. For example, absolute

emissions are sensitive to changes in the book

value of debt and equity, and intensity metrics are

sensitive to changes in revenue share.

Reference scenario 1

Each of our 2030 targets were developed with

reference to a 1.5°C-aligned scenario. For the

majority, this was using the IEA's Net Zero by

2050 (NZE2050) scenario. In calculating a

convergence point for our UK Housing portfolio

and a target for UK Agriculture, we use a UK-

focused Balanced Net Zero Scenario developed by

the UK's Climate Change Committee (CCC BNZ).

For the UK CRE portfolio we use the CRREM

scenario that provides decarbonisation pathways

across different property types consistent with the

NZE2050 scenario. For the Aviation sector we use

the Mission Possible Partnership (MPP)'s

'Prudent' (PRU) scenario – a 1.5°C-compatible

roadmap for the sector to achieve net zero

emissions by 2050.

Baseline year

We measure our financed emissions for each

portfolio against a baseline metric determined in

the year we first assessed that target. The baseline

year therefore varies across the nine sectors

assessed to date, to ensure we are using the most

up-to-date data available when we set our targets –

or, in the case of UK Housing, a convergence

point.

Use of target ranges

Our 2030 financed emissions reduction targets for

five sectors (Power, Cement, Steel, Automotive

manufacturing, and Aviation) are expressed as

ranges. The upper end of each range represents the

reduction needed to align with the 1.5°C

benchmark pathway at the time we set these

targets. The lower end reflects our assessment of

sector and client commitments at that time. Since

these targets were set, the NZE2050 scenario we

used to inform these targets has been updated and

the scenario assumes slower progress to the

transition up to 20302. As a result, some of our

target ranges now exceed the emissions reductions

reflected in the latest 1.5°C scenario.

While we continue to seek to reduce our financed

emissions in line with our ambition to be a net zero

bank by 2050, our ability to achieve reductions

within these ranges at any given point in time

depends on a wide range of factors and scenario

assumptions as explained in the Future target

progress section on page 57.

Notes:

1 When we first developed BlueTrack TM, the best available

scenario to develop Paris-aligned benchmarks for our

financing portfolios was the International Energy

Agency’s Sustainable Development Scenario (SDS)

which was aligned to a 1.7°C world. The 2025 targets set

for the Upstream Energy and Power sectors were

informed by the SDS scenario.

2 International Energy Agency: iea.org/reports/world-

energy-outlook-2025

TCFD Strategy Recommendation B

Overview of financed emissions reduction targets and progress

Notes:

1 Physical intensity (CO 2 e emissions per v-km travelled by LDV produced), expressed in gCO 2 e/km.

2 Barclays has identified a 2030 emissions intensity convergence point for UK Housing but has not set a formal target.

TCFD Strategy Recommendation B

Baselines at December 2025

Notes:

1 Baseline values have not changed in the current year.

2 Barclays has identified a 2030 emissions intensity convergence point for UK Housing but has not set a formal target.

3 The power sector has been re-baselined due to a data sourcing update. The impact of this change is not considered material.

TCFD Strategy Recommendation B

BlueTrack™dashboard

Progress of our financed emission metrics

Upstream EnergyAbsolute emissions (MtCO2e) (Indexed 2020 = 100)

Dec’2025 target:

(-15%)

(-40%)

Dec'25: 43.7

(-41%)

SteelPhysical Intensity (tCO2e/t) (Indexed 2021 = 100)

(-20% to -40%)

Dec'25: 1.352

(-30%)

UK AgricultureAbsolute emissions (MtCO2e) (Indexed December 2023 = 100)

PowerPhysical Intensity (kgCO2e/MWh) (Indexed 2020 = 100)

Dec'2025 target:

(-30%)

(-50% to -69%)

Dec'25:204

(-35%)

Automotive manufacturingPhysical Intensity (gCO2e/km) (Indexed December 2022 = 100)

Dec'25: 169.1

(-3%)

(-40% to -64%)

UK Housing Physical Intensity (kgCO2e/m2) (Indexed December 2023 = 100)

CementPhysical Intensity (tCO2e/t) (Indexed 2021 = 100)

(-20% to -26%)

Dec'25:0.551

(-13%)

Aviation (passenger and cargo) Physical Intensity (gCO2e/RTK) (Indexed December 2023 = 100)

(-11% to -16%)

Dec'25:866

(-2%)

UK Commercial Real Estate Physical Intensity (kgCO2e/m2) (Indexed December 2023 = 100)

(-21%)

Dec'25:27.1

(-3%)

(-51%)

Dec'25: 24.7

(-6%)

Dec'25: 0.46

(-13%)

2030 convergence point:

(-40%)

TCFD Strategy Recommendation B

Update on progress against targets

We have successfully achieved our 2025 financed

emissions reduction targets for both the Upstream

Energy and Power portfolios.

Upstream Energy

We achieved our 2025 target to reduce our absolute

financed emissions by 15%. Cumulatively our

absolute financed emissions from our Upstream

Energy portfolio have decreased by 41% from our

2020 baseline.

Our 2025 financed emissions comprised

approximately 79% from clients with oil, gas and

natural gas liquids (NGLs) production activities,

and 21% from clients with coal production.

Power

We achieved our 2025 target to reduce our Power

financed emissions intensity by 30% from a 2020

baseline. Cumulatively our Power portfolio

emissions intensity has decreased by 35% from our

updated 2020 baseline, see page 51.

Aviation

Our Aviation portfolio financed emissions intensity

has cumulatively reduced by 2% from our 2023

Automotive manufacturing

Our Automotive manufacturing portfolio financed

emissions intensity has cumulatively decreased by

3% from our 2022 baseline.

Steel

Our Steel portfolio financed emissions intensity

has cumulatively decreased by 30% from our 2021

Cement

Our Cement portfolio financed emissions intensity

has cumulatively decreased by 13% from our 2021

UKAgriculture

Our UK Agriculture portfolio absolute financed

emissions have cumulatively decreased by 13%

from our 2023 baseline.

UK Commercial Real Estate

Our UK Commercial Real Estate portfolio financed

emissions intensity has cumulatively decreased by

6% from our 2023 baseline which was re-

baselined in 2025 (see page 51).

UK Housing

Our UK Housing portfolio financed emissions

intensity has cumulatively decreased by 3% from

our 2023 baseline, which was re-baselined in 2025

(see page 51).

We continue to make strong progress against our

EPC ambition for 55% of in-scope properties and

collateral with a known EPC to be rated band C or

better by 2030, achieving 51.4% by the end of

Further details on each of these portfolios and sector targets can be found in Barclays Transition Update: home.barclays/content/dam/home-barclays/documents/citizenship/Sustainability/Barclays-Transition-Update.pdf

Basis of Preparation

Changes in our portfolio metrics reflect evolving

financing activity, improved data inputs, and

methodology refinements detailed in our latest

Financed Emissions Methodology paper.

In line with our established reporting approach, we

have re-baselined our Power, UK Commercial Real

Estate and UK Housing metrics as noted on page

See 'Data sourcing and data quality' on page 51 for more information on the data used to estimate our financed emissions

Further details of how climate risk-related considerations are managed can be found in the managing impacts in lending and financing section on page 163.

EPC ratings of properties and collateral in scope of EPC ambition

A

B

C

D

E

F

G

Notes:

1 EPC ambition scope does not currently include Private

Bank due to EPC data reporting limitations.

2 Metric based on number of properties and collateral in

portfolios that make up the EPC ambition scope as of

31 December 2025.

3 EPC data for Barclays UK mortgages and Kensington

Mortgage Company Limited are as of 30 September 2025.

Matched EPC data for Social Housing and Business

Banking Real Estate are as of 31 December 2025.

Future target progress

Our ability to make progress towards our 2030

financed emissions reduction targets depends

heavily on our clients’ ability to decarbonise their

business models. This, in turn, is influenced by a

wide range of external factors including market

developments, technological progress and its

financial viability, public policy interventions,

regulatory alignment, changes to societal

behaviour, geopolitical developments and regional

variations, energy security requirements, and an

orderly transition. For more detail, please see

'Implementing our strategy against a shifting

landscape' on page 31.

Our sector portfolios will be affected by the

complexity and significant uncertainties around the

transition to a low-carbon economy. For example,

aviation continues to depend on future sustainable

aviation fuel (SAF) price and availability, as well

as the continued production and delivery of lower

emissions aircraft.

Similarly, decarbonisation of the automotive sector

depends on the pace of the adoption of electric

vehicles and impacts from related policy initiatives

and regulation in our key markets.

Additionally, within UK Commercial Real Estate

and UK Housing, decarbonisation is significantly

dependent on the growing share of renewable

energy sources in the UK energy mix and

deployment of low carbon heating solutions.

Globally, the expected pace and increase of AI-

driven energy demand may impact our Upstream

Energy and Power clients' decarbonisation

progress.

Our metrics will continue to be impacted in

the future as data availability and quality,

methodologies, guidance and best practices for

calculating financed emissions, all involving

varying estimation levels, continue to evolve and

be refined.

Our Cement and Steel portfolios are comprised of a

small number clients. We rely on data reported by

those clients. Changes in the availability and

quality of that data and changes in our financing

activity with these clients can have a material

impact on our financed emissions intensity metrics

for these portfolios.

We monitor our target performance regularly,

recognising metrics are sensitive to the factors

described above as well as changes in our

financing mix, capital markets shifts, client

financing needs and client emissions data. We

continue to manage our portfolios and will

continue to reassess our approach as new

information becomes available, balancing between

our and our clients' commercial goals, including

potential franchise impacts, risk management and

other non-financial objectives in support of our

strategy. Our progress will likely remain non-linear

amid these complexities and the significant

uncertainties around the transition to a low-carbon

TCFD Strategy Recommendation B

Achieving net zero operations

We are working towards achieving net zero operations as part of our ambition to be a net zero bank by 2050. This includes setting and meeting various milestones1 and targets1 to reduce our operational emissions, with significant progress already made.

Net zero operations approach

To achieve net zero operations we are pursuing a

state in which we will achieve a greenhouse gas

(GHG) emissions reduction of our Scope 1, Scope

2 and Scope 3 operational emissions 2 consistent

with a 1.5°C-aligned pathway and counterbalance

any residual emissions. We aim to develop our

approach to counterbalancing residual emissions as

we approach 2050, by evaluating the latest

technology and market practices on carbon credits.

We continue to focus our efforts on the most

emission-intensive areas of our operations and

where we think we have the greatest ability to

influence a reduction in those emissions over time.

We pursue this recognising that our progress is

likely to be non-linear amid the significant

uncertainties around the transition to a low-carbon

economy.This is because projects will take time to

be fully realised and because we depend on

external factors, including changes in legislation,

regulation and governmental policy, as well as the

decarbonisation efforts of our Third-Party Service

Providers (TPSPs)3 and the energy grids in the

We aim to continue evaluating and evolving our

approach, taking into consideration internal

management decisions and external factors,

including the latest scientific developments and

market standards.

Progress to date

Barclays has achieved all its 2025 net zero

operations milestones and targets, continuing to

source 100% renewable electricity for our global

real estate portfolio 4 and reducing our Scope 1 and

2 market-based emissions by 97% against a 2018

baseline - exceeding our 90% reduction target.

We maintained 100% renewable electricity

sourcing for our global real estate portfolio through

instruments including green tariffs 5 (2%), energy

attribute certificates (EACs 6)(49%), and EACs

from a power purchase agreement (PPA)(49%).

We have also achieved our milestone to have 100%

of our UK corporate vehicle fleet transition to

electric vehicles (EVs), andexceeded our

milestone that 70% of suppliers, by addressable

spend 8, have science-based GHG emissions

reduction targets 9 in place— having achieved

73%10 by the end of the 2025 reporting year.

Building on this progress, in 2025 we reviewed our

milestones and targets and plan to:

•Conclude reporting on our achieved 2025 targets

and milestones, while continuing to work

towards our 2030, 2035 and 2050 milestones.

•Continue sourcing 100% renewable electricity

through to the end of 2030, signalling demand

for renewable electricity generation in the

Notes:

1 In this Achieving net zero operations section, a reference

to a 'milestone' denotes an indicator we are working

towards and report against and a reference to a 'target'

denotes an indicator linked to our executive

remuneration.

2 We define the scope of our Scope 3 operational

emissions for the purposes of our net zero operations

approach, to include the following GHG Protocol Scope

3 categories: supply chain (Category 1,2 and 4), waste

(Category 5), business travel (Category 6) and leased

assets (Category 8 and 13).

3 TPSP means any entity that has entered into an

arrangement with Barclays in order to provide business

functions, activities, goods and/or services to Barclays.

4 In this Achieving net zero operations section a reference

to global real estate portfolio includes offices, campuses,

branches, warehouses and data centres within our

operational control.

5 Green tariffs (retail procurement) are standardised

renewable electricity products in regulated electricity

markets offered by utility companies, allowing large

commercial and industrial customers to buy bundled

renewable electricity through a special utility tariff rate.

Project-specificity is not a requirement for retail

procurement.

6 EACs are standardised, tradable instruments, that prove

that generally 1 MWh of electricity has been generated

from a renewable source and added to a grid.

7 The performance metric comprises Battery Electric

Vehicles and Plug-In Hybrid Vehicles that are at a

maximum of 50g CO 2/km and a minimum 30 miles in

electric range.

8 Addressable spend is a subset of external costs incurred

by Barclays in the normal course of business where

Procurement has oversight over spend. It excludes costs

such as regulatory fines or charges, exchange fees,

taxation, employee expenses or litigation costs and

property rent.

9 Targets are considered ‘science-based’ if they are in line

with what the latest climate science deems necessary to

meet the goals and timelines of the Paris Agreement –

limiting global warming to well below 2°C above pre-

industrial levels and pursuing efforts to limit warming to

1.5°C.

10 The performance metric reflects the number of TPSPs, by

addressable spend, that contribute to our supply chain

emissions and have science‑based targets in place. The

2025 reporting period addressable spend data is based on

data extracted on 3 November 2025.

TCFD Strategy Recommendation B

Our approach to operational climate-

related data

Accurate and meaningful climate-related data 9 is

central to our net zero operations strategy. The data

helps us better identify sources of emissions,

understand which actions to prioritise to reduce

these emissions, and model expected impacts of

our activities and external factors on our

performance.

We continue to focus our efforts on increasing our

climate-related data quality and coverage. For

example, in 2025, 60% of our supply chain

emissions data was provided directly by our

TPSPs, compared with 2018, when no such data

was collected.

However, due to the evolving nature of climate-

related data, market methodologies and our

continuous data enhancements, we are likely to see

changes to previously reported figures and the

overall trajectory of our decarbonisation efforts.

In 2025 we recalculated our operational emissions

2018 baseline to reflect business changes, by:

•Incorporating emissions from Tesco Bank

operations following Barclays' acquisition of the

Tesco Bank business on 1 November 2024.

•Excluding emissions from Hamburg operations

following Barclays' sale of its consumer finance

business in Germany on 3 February 2025.

To calculate our 2024 performance, we used the

2018 baseline reported in our FY2024 disclosures,

and to calculate our 2025 performance we used our

recalculated 2018 baseline (reflecting these

business changes).

We also recalculated our previously reported

supply chain emissions 2018 baseline and 2024

emissions due to the UK Department for

Environment, Food & Rural Affairs (Defra)

updating its GHG emissions conversion factors.

Barclays applies these factors in the calculation of

its spend-based supply chain emissions. Following

this recalculation we have observed an overall

reduction in both our 2018 baseline and 2024

supply chain emissions. This update led to a

change of our previously reported 2024 supply

chain performance (from 36% to 35% reduction in

GHG emissions relative to the 2018 baseline).

For more details on our operational emissions

accounting approach please refer to the Barclays

Sustainability Reporting Framework, found here:

home.barclays/investor-relations/reports-and-

events/annual-reports/.

Notes:

1 We report on our zero waste milestone in the context of

our nature programme, on page 60.

2 For UK vehicles the performance metric comprises,

BEVs and PHEVs that are at a maximum of 50g CO 2/km

and a minimum 30 miles in electric range; for Europe

vehicles, BEVs and PHEVs that are at a maximum of 50g

CO 2/km; for India vehicles, BEVs only.

3 Addressable spend is a subset of external costs incurred

by Barclays in the normal course of business where

Procurement has oversight over spend. It excludes costs

such as regulatory fines or charges, exchange fees,

taxation, employee expenses or litigation costs and

property rent.

4 Targets are considered ‘science-based’ if they are in line

with what the latest climate science deems necessary to

meet the goals and timelines of the Paris Agreement –

limiting global warming to well below 2°C above pre-

industrial levels and pursuing efforts to limit warming to

1.5°C.

5 The performance metric reflects the number of TPSPs, by

addressable spend, that contribute to our supply chain

emissions and have science‑based targets in place. The

2025 reporting period addressable spend data is based on

data extracted on 3 November 2025.

6 Our reporting of supply chain emissions includes the

following GHG Protocol Scope 3 categories: Category 1:

Purchased Goods and Services, Category 2: Capital

Goods, Category 4: Upstream transportation and

distribution. In 2025 we reported GHG emissions of

Categories 1, 2 and 4 by aggregating these under

Category 1.

7 Our EUI milestone includes energy and floor space from

our campuses and offices.

8 VAT, where applicable, is currently included in our

spend-based supply chain emissions data.The 2025

reporting period addressable spend data is based on data

extracted on 3 November 2025.

9 In this net zero operations section, climate-related data

refers to quantitative and qualitative data that informs our

net zero operations strategy. This may include but is not

limited to GHG emissions data, energy and water usage,

TPSP decarbonisation activities and industry data on

climate scenarios.

TCFD Strategy Recommendation B

Reducing our Scope 1 and 2 emissions

Global real estate portfolio

We are making progress towards our 2030 Scope 1

and 2 location-based emissions reduction

milestone, having by the end of 2025, reduced

these emissions by 62% against a 2018 baseline.

This progress was driven by:

•A reduction in our operational energy demand

from the consolidation of our global real estate

•Improvements in energy efficiency of our global

real estate portfolio.

•The targeted electrification of our global real

estate portfolio and our vehicle fleet.

KWh

•The decarbonisation of external grids in the

We continued to progress decarbonisation

initiatives across our real estate portfolio by

implementing transformation projects across

several of our campuses. For example, by the end

of 2025:

•We installed 2.33 MW of on-site renewable

electricity capacity across our global real estate

portfolio, with the Whippany 1 campus making

the largest contribution through the installation

of 3,400 solar panels.

•At 1 Churchill Place 2, upgrades to the building

management system (BMS), installation of solar

panels and multi-function units contributed to an

estimated 11%3 year on year reduction in the

building's electricity consumption.

These transformation projects are complemented

by our ongoing efforts to improve energy

efficiency across selected locations in our global

real estate portfolio. For example, in 2025 as part

of our energy optimisation programme at our

Pune 4, Noida 5 and Mumbai 6 locations we adjusted

our BMS during periods of low or no occupancy to

reduce these properties' energy demand. These

types of initiatives have contributed to a 51%

reduction in our energy consumption across our

global real estate portfolio compared to 2018.

Figure 1: Impacts of our energy optimisation programme at our Pune campus7

A

B

As we advance the energy optimisation programme

and invest in energy-efficient equipment across

selected locations in our global real estate portfolio,

we recognise that energy savings may fluctuate over

time and will be realised progressively as those

improvements begin to take effect. By the end of

2025, the energy use intensity (EUI) of our

corporate offices 8 was 234 kWh/m²/year, an

increase from prior year driven by our corporate

office footprint consolidation. Overall, however, we

have been operating our corporate offices more

efficiently, as our EUI has reduced by 26% against a

2018 baseline.

In addition to transformation projects and ongoing

energy efficiency activities, we are working with

our landlords to pursue electrification and energy

efficiency upgrades through our Green Leasing

Toolkit. Since its launch in 2023, we have

embedded green lease clauses 9 into 68% of newly

acquired or renewed offices and campus leases. This

is a significant development given our leases makes

up a substantial proportion of our Scope 1 and 2

In 2025 we updated our Sustainability Design and

Construction Checklist, by including nature-related

considerations that align to our initial real estate

LEAP 10 (Locate Evaluate Assess Prepare)

assessment findings 11. This work is helping us to

better understand and manage potential nature-

related impacts within our real estate portfolio.

To manage our nature-related impacts, we are also

delivering on our zero waste programme 12. Across

our campuses 13 we have an ambition to achieve and

maintain TRUE (Total Resource Use and

Efficiency) zero waste certified projects by the end

of 2035. By the end of 2025, wediverted 56% of

our campuses' waste away from landfill,

incineration and the environment, against a

milestone to divert 90% by the end of 2035.

In 2025, we built and launched our Managed Lab

Service at our Radbroke campus - a secure micro

data centre environment to support validation and

testing of current and next‑generation IT hardware

and software. The facility is intended to support

our resilience, end-of-life management capabilities

for our IT infrastructure, and adoption of emerging

low-emission technologies, including the testing of

direct liquid cooling capabilities.

Corporate vehicle fleet

By the end of 2025, as part of our commitment to

Climate Group’s EV100 initiative, we achieved our

milestone to have 100% of our UK corporate

vehicle fleet transition to electric vehicles (EVs).

We have also made progress in transitioning our

global corporate vehicle fleet to electric vehicles

(EVs) or ultra-low emissions vehicles (ULEVs)

having transitioned 68% of our 5,216 global fleet.

We continue to monitor market developments,

such as the adoption of Zero Emission Vehicles

(ZEVs, which emit zero emissions at the tailpipes),

as we transition our global fleet to EVs. We also

recognise we are largely dependent on transport

policy and infrastructure decarbonisation in the

markets where we operate. These factors will

influence our ability to progress towards our 2030

milestone.

Notes:

1 Buildings 100, 300 & 400, Jefferson Park, Whippany, NJ

07981, USA.

21 Churchill Place, Canary Wharf, London, E14 5HP, UK.

3 Data represents reduction when comparing September 2024

and September 2025 electricity consumption for 1 Churchill

Place.

4 Gera Commerzone SEZ, Eon It Park Road, Kharadi, Pune,

411014, India.

5 Candor Techspace, Institutional Plot No 2, 1& 2 Blk B,

Sec-62, Gautam Budh Nagar, Uttar Pradesh, Noida, 201309,

India.

6 Nirloin Knowledge Park, Wing B Block B-6, Off Western

Exp Hwyi, Goregaon (East), Mumbai, 400063, India.

7 Figure 1 represents the energy use patterns on a normal

working day, a public holiday and a weekend day, at our

Pune campus, which has adopted the energy optimisation

programme. It highlights the resulting reduction in

energy consumption from the programme, a trend we

have observed across locations in our global real estate

portfolio implementing the programme.

8 Our EUI milestone includes energy and floor space from

our campuses and offices.

9 For more detail on our green lease clauses, please seepage

75 of Barclays PLC Annual Report 2024.

10 Taskforce on Nature-related Financial Disclosure’s (TNFD)

methodology.

11 Refer to page 77 of Barclays PLC Annual Report 2024 to

find out more on our TNFD LEAP assessment findings.

12 For more detail on the zero waste programme, please see

page 77 of Barclays PLC Annual Report 2024.

13 Campuses include 1 Churchill Place, London, Radbroke,

Northampton, Glasgow, Whippany, 745 7 th Avenue, New

York, Wilmington, Pune, Chennai and Noida. Chennai and

Noida have been classified ascampuses in our 2025

operational emissions reporting year.

TCFD Strategy Recommendation B

Addressing our Scope 3 operational

emissions

In 2025, supply chain emissions accounted for the

2025

2024

2018

largest proportion (67%) of our total operational

GHG emissions 1. While emissions from waste and

leased assets are comparatively lower, we remain

committed to identifying and pursuing opportunities

to reduce them. Further details on our waste and

leased assets approach can be found in the Global real

estate portfolio section on page 60.

Supply chain

In the 2025 reporting year, we observed a 39%

reduction in our absolute supply chain emissions

relative to the 2018 baseline. While this represents

progress, it is important to note that approximately

40% of our supply chain emissions are estimated

using spend-based data. As a result, reported

reductions may not fully reflect actual

decarbonisation within our supply chain. To look

to address this limitation, we work with our TPSPs

to enhance the availability and quality of our

supply chain climate-related data, enabling more

accurate tracking of our emissions reduction

milestones.

We leverage Carbon Disclosure Project (CDP) and

EcoVadis as platforms to gather data and engage

with TPSPs. In 2025, 89% of invited TPSPs

responded to CDP, demonstrating strong

engagement across our supply chain. This enabled

us to enhance our use of primary supply chain

emissions data, reaching 60% by year-end.

Supply chain emissions primary and spend-based data

Notes:

*Spend-based data: data based on the calculation of the

economic value of the goods and services purchased,

multiplied byrelevant industry average GHG emission

factors (i.e. Defra).

**Primary data: GHG emissions data sourced from TPSPs.

TPSP engagements also supported us to exceed our

milestone of 70% of suppliers, by addressable

spend, having science-based GHG emissions

reduction targets in place — achieving 73%.

Insights from our TPSP engagements and supply

chain emissions were incorporated into our

Supplier Transition Framework (STF)2, identifying

priority TPSPs that accounted for approximately

68% of Barclays' supply chain emissions in the

2024 reporting year. We are working closely with

these priority TPSPs and their Barclays

Accountable Executives to develop strategic,

actionable engagement plans aimed at driving

continuous improvement in data quality, climate

commitments, and decarbonisation opportunities.

Our approach is tailored to support priority TPSPs'

unique needs, recognising that they are at different

stages in their transition journeys.

We continued to upskill our TPSPs Barclays

Accountable Executives, supplier managers and

sourcing colleagues on the sustainability impact of

our supply chain to support with the delivery of the

engagement plans.

We also continued to seek to negotiate climate-

related requirements in our TPSP contract terms

and set climate-related expectations in the Barclays

TPSP CoC.

In 2025 we also began assessing our supply chain

nature-related impacts by using the LEAP

approach. Through this assessment, we identified

27 of 120 supply chain goods and services

categories with potential for significant 3 nature-

related impacts. We are using these findings to

prioritise pilot engagements with selected TPSPs,

focusing on their maturity on nature-related topics.

This pilot initiative is integrated within the STF

strategic engagement plans.

Travel

Our 2025 total colleague business travel emissions

reduced by 45% compared to the 2018 baseline,

partly driven by an update in external emissions

factors and a shift in business travel behaviours.

To inform our decarbonisation approach we plan to

continue monitoring our business travel emissions

data. However, we recognise that where we can't

reduce travel, to decarbonise these emissions we

are dependent on transport and grid

decarbonisation in the markets where we operate.

Carbon credits

In 2025 we signed an offtake agreement with

UNDO 4, a UK-based climate technology company,

with the intent to contribute to high-potential

climate mitigation projects. Under this agreement,

UNDO expects to permanently remove 6,5385

tonnes of carbon dioxide from the atmosphere

through enhanced rock weathering. These offtake

agreements are funded through a carbon price on

internal travel and forms part of our approach to

focus on catalytic high-integrity carbon dioxide

removal technologies. We do not use this for

carbon offsetting.

Net zero operations co-benefits

As we progress on our transition to net zero

operations, we seek to deliver strategic co-benefits

for Barclays and its key stakeholders. These

include driving cost savings - for example, through

the energy optimisation programme - strengthening

operational resilience, identifying commercial

opportunities by collaborating with Climate

Ventures and Unreasonable Impact companies, and

building stronger relationships with TPSPs and

clients.

Notes:

1 In this net zero operations section, our total accounted

operational GHG emissions include Scope 1, Scope 2

(location-based) and Scope 3 Category 1-8 and 13. Scope

3 Category 3 and 7 currently are not part of our net zero

operations approach.

2 For more detail on the Supplier Transition Framework

structure, please see page 57 of the Barclays Transition

Update.

3 Significance is determined through ENCORE (Exploring

Natural Capital Opportunities, Risks, and Exposure) a

industry-standard tool to help businesses assess how they

may depend on and impact nature.

4 To find out more please see our press release with

UNDO: home.barclays/news/press-releases/2025/09/

barclays-backs-british-climate-tech-pioneer-undo-in-

landmark-car/

5 This offtake has not been netted against our operational

emissions, as we continue to focus our efforts to reduce

our operational emissions consistent with a 1.5 o C-aligned

pathway.

Implementing our Climate Strategy (continued)

TCFD Strategy Recommendation B

Embedding climate and sustainability into our business

We are embedding climate and sustainability throughout Barclays, taking into account the impact of climate-related risks and opportunities on our businesses, strategy and financial planning.

Impact of climate-related risks

and opportunities on our business,

strategy and financial planning

Barclays’ 2025 financial planning process included

a review of our strategy, its implementation, and

tracking of our progress against climate-related

targets – as well as capturing a view of climate-

related risks and opportunities.

During 2025 we continued to enhance our monthly

reporting framework to cover a view of the balance

sheet and revenues from sustainable and transition-

related activity. This supports our ability to review

our Sustainable and Transition Finance portfolio at

greater granularity and improve relevant business

engagement through the financial planning process.

Enhancements were made to help us further

evaluate the portfolio's performance and identify

opportunities to maximise revenue generation

We also considered impairment over the horizon of

the financial plan. There are no associated material

amendments required to the 2025 financial plan.

All key businesses and applicable functions are

involved in integrating climate-related risks and

opportunities into our financial planning process.

Implementing our climate strategy is managed

through central Sustainable Finance teams under

the Group Head of Sustainable and Transition

For example:

•Our climate strategy is a factor in ourfinance

planning process with a pathway towards aiming

to achieve this as well as risks and opportunities

reviewed with business heads.

•We continue to develop our sustainable and

transition finance to ensure that we have a full

offering for our clients and customers.

•We strive to continue to decarbonise our own

operations, reducing our Scope 1 and 2

emissions and our Scope 3 operational

•We measure and track progress towards our

financed emissions reduction targets through our

BlueTrack methodology.

•We conduct portfolio reviews to monitor

whether business activities are conducted within

Barclays’ mandate and aligned with our

expectations, and whether they are of an

appropriate scale relative to the risk and reward

of the underlying activities. Mandate & Scale

Exposure Controls form part of our overall Risk

Appetite Control Framework and climate risks

have been integrated into annual credit portfolio

reviews for elevated risk sectors since 2020. We

continue to monitor against mandate and scale

limits linked to scoring within our Client

Transition Framework.

The 2025 financial planning process used a five-

year baseline scenario to consider the impacts of

climate risks. The baseline scenario implicitly

considered the impact of current and agreed

climate policies across the UK, US and EU on key

macroeconomic variables (such as GDP growth

and unemployment rates), consistent with market

consensus forecasts. The outcome of this

assessment found only a de minimis impact from

climate-related factors on those macroeconomic

variables used to project financial performance.

We will continue to review how climate risks

manifest in the economy through a baseline

scenario.

Workstreams specifically related to finance have

been further embedded within our overall global

financial planning processes, including dedicated

climate management reporting information. Further

details of how this work has served as an input in

our five-year financial planning process and are set

out below – including our approach to Sustainable

and Transition Finance, targets and capital

investments.

During the 2025 financial planning process we

assessed the financial impact of embedding

individual parts of our climate strategy, new

initiatives and targets across our businesses.

A range of scenario analyses were undertaken

during 2025 with the aim to further uncover areas

of risk and opportunity, as well as integrate climate

scenario analysis into our strategic and financial

planning. This included a climate aware Internal

Stress Test with the results allowing Barclays to

also understand resilience to climate risks in this

scenario.

The strategic review of sustainable and transition

finance was also refreshed during the year across

key businesses. The review built upon both new

and previously identified commercial

opportunities. The output was considered in the

financial planning process, including incremental

revenue, cost and capital. For further detail on the

strategy, please see the ‘Sustainability and climate-

related opportunities identified over the short,

medium and long term' on page 35.

The planning process included an assessment of

our financed emissions portfolios for the eight

high-emitting sectors where we have set absolute

emissions or emissions intensity targets: Upstream

Energy, Power, Cement, Steel, Aviation,

Automotive manufacturing, UK Commercial Real

Estate and UK Agriculture, as well as our UK

Housing portfolio for which we have set a

convergence point. The impacts of our current

plans to achieve these targets (where applicable)

are considerations and factors in our financial

planning process.

Barclays continues to engage with our clients to

support them in the transition to a low-carbon

economy. Our current financed emissions

reduction targets are not currently forecasted to

materially impact financial performance over the

next five years.

The financial planning process also covered a

review of our net zero operations strategy.

We will continue to endeavour to further enhance

how Barclays' climate strategy is embedded into

the way we think about financial planning over the

coming years – reflecting on the progress we made

during 2025.

Implementing our Climate Strategy (continued)

TCFD Strategy Recommendation B

Incentives

Financial and non-financial measures, including

key climate and sustainability-related measures, are

considered in the determination of the Group

incentive pool and the incentive outcomes for the

Executive Directors of Barclays PLC. Measures

are reviewed annually to ensure they reflect the

Group’s strategic priorities.

The incentive pool is also adjusted to take account

of risks, both crystallised and potential future risks,

and consideration is given to vulnerabilities across

all of Barclays’ principal risks, which include

Climate and sustainability-related measures are

included as part of the Executive Directors’ Long

Term Incentive Plan (LTIP), reflecting the long-

term nature of our ambition, and that progress is

expected to be non-linear and is best assessed over

a multi-year period. For the 2026-2028 LTIP, an

overall weighting of 25% is allocated to the

broader category of measures relating to

Sustainability, customers and clients.

The Group Executive Committee members

responsible for Barclays’ five business divisions

have specific sustainability-related objectives

relevant to the businesses they manage against

which their performance is assessed at the end of

each year.

Performance for all colleagues is assessed against

individual performance objectives, which are

aligned to the consistently excellent standard and

include sustainability considerations where

applicable. Specific sustainability-related

objectives will depend on the role of the individual.

Further details can be found in our Remuneration report from page 116

Resilience of our strategy

TCFD Strategy Recommendation C

Scenario analysis

Climate scenario analysis forms a key part of Barclays' approach to assessing and quantifying the impact of physical and transition climate risks on the bank's portfolios. We use this to better understand the significant uncertainty that arises from how climatic weather patterns will change, as well as the rapidly evolving nature of the climate transition from government policies, new technologies and changing individuals' sentiment.

Through climate scenario analysis, the risks and

uncertainties can be translated into financial impacts

to Barclays, allowing us to better understand the

resilience of the business strategy. The scenarios

explored in this section are under a stressed pathway.

Barclays uses climate scenario analysis primarily for

(i) understanding Barclays’ resilience to climate

scenarios, (ii) as a consideration within its financial

planning process, (iii)as a consideration within its

assessment of Expected Credit Losses reported under

IFRS 9. More detail on the Expected Credit Losses

uses can be found on page 242.

Barclays has progressively developed its internal

scenario analysis capabilities, developing new

climate assessment methodologies, running internal

targeted exercises with external subject matter

experts, and participating in regulatory climate stress

testing.

Barclays continues to build its use of scenario

analysis to explore and further understand the

evolving landscape – identifying areas of risks and

opportunities – to challenge existing assumptions of

future climate pathways and measure the risks that

climate change poses to the Group.

Barclays' resilience to climate scenarios

Two stress tests incorporating climate risk were conducted during 2025, each with its own scenario aligned to a less than 2°C pathway, to assess Barclays’ financial resilience to transition and physical risks. Firstly, the 2025 Internal Stress Test (IST) featured a scenario with climate risk drivers over a five-year period. Secondly, a climate-based Reverse Stress Test (RST) was run with a shorter-term focus, designed to test resilience to extreme, near-term climate events.Based on the results of the scenario analysis performed to date, our view is that Barclays' strategy remains resilient to climate scenarios. Given the evolving climate landscape, we seek to further enhance our capabilities and modelling to refine our understanding of Barclays' resilience to various climate scenarios, particularly given high uncertainty in this area.

Internal Stress Test

The 2025 Internal Stress Test was conducted as a

Group-wide exercise across all portfolios over a

five-year period, with the scenario specifically

designed to evaluate Barclays’ ability to withstand

both climate-related and traditional

macroeconomic risks. This year’s scenario placed

greater emphasis on physical climate risks than in

previous years, featuring two years of stormy and

wet weather followed by three years of hot, dry

conditions with droughts and wildfires.

The 2025 Internal Stress Test (IST25) scenario was

designed to be climate-aware, with climate risk

drivers incorporated into the development of

macroeconomic factors. By doing so, the exercise

directly addresses Barclays’ climate-related

vulnerabilities, while complementing conventional

macroeconomic stress testing.

To achieve this, Barclays leverages its in-house

scenario design capabilities, enabling a more

tailored approach and deeper understanding of our

risk profile. Rather than relying solely on external

scenarios, such as those provided by the Network

for Greening the Financial System (NGFS), we

developed our own scenario for several reasons:

1)Baseline assumptions differ: External

scenarios typically assume a stable

macroeconomic backdrop. Our approach layers

climate stress on top of an already stressed

macroeconomic environment.

2)Policy outlook has shifted: Global climate

policy continues to evolve rapidly. Since the

NGFS established its baseline assumptions,

significant changes have occurred, particularly

in the United States.

3)Barclays-specific vulnerabilities: We sought to

test risks unique to our portfolios. For example,

given our substantial UK mortgage exposure, we

incorporated an extreme flood event in London

and The Wash region in eastern England to

better assess these vulnerabilities, rather than

relying on the more generic shocks used by

external scenario providers.

The scenario narrative was designed over a five-

year timeframe aligned with Barclays' Medium

Term Planning and Internal Stress Testing

scenarios time frame. Specific variables were

expanded using subject matter expert judgement by

Barclays' internal Global Economic Scenarios and

Climate Risk teams to assess both physical and

transition climate risks.

The exercise is designed to complement

conventional Barclays macroeconomic stress

testing, and seeks to understand:

1)How transition policies can influence

conventional macroeconomic stressed

environment pathways and severity.

2)The incremental impact of climate above

macroeconomic stressed pathways.

3)How physical risk events may impact key

Barclays’ exposures.

The climate scenario consists of three

chronological stages, as depicted in the below

chart. These stages include initial policy

announcements that trigger immediate asset

repricing, while more stringent policy requirements

unfold over a longer time horizon - dampening

recovery in years 3 to 5. Against this backdrop, the

scenario stages also incorporate physical risk

considerations: In the first two years, severe

‘stormy and wet’ weather occurs, characterised

through floods and hurricanes. This is followed by

three years of ‘hot and dry’ weather, resulting in

water stress and wildfires. The insurance market

tightens in the face of increased claims, with

restricted risk appetite in high-risk zones and to

key perils. Events create greater societal awareness

of physical risks and their damages, shifting

preferences towards lower risk assets.

Implications and policies of the three stages are

outlined below:

TCFD Strategy Recommendation C

Stage 1:

Consumer preferences shift toward greener

products and practices, particularly in the UK and

EU, while consumption is cut to cope with the

recessionary environment. Behavioural shifts are

pronounced at sector level as consumers turn away

from firms who finance carbon-heavy industries.

Investors reassess their participation with certain

firms. Those with heavy exposure to brown income

and/or assets, combined with poor transition plans,

are negatively impacted in equity markets – with

capital reallocated to greener firms.

Scenario impact (Illustrative only)

Stage 2:

Regional climate policy divergence grows as the

UK, EU and China forge ahead as leaders on the

transition, with India pivoting because of increased

energy security concerns, and the US continuing to

focus on domestic fossil fuel energy production,

putting downward pressure on oil and gas prices.

Low-carbon investments surge due to accelerated

investment in the power grid and electric vehicles

(EV) infrastructure, supported by declining costs

and efficiency increases.

In 2028, the UK and EU accelerate or announce

additional climate policies. Governments rapidly

scale-up investment in EV charging infrastructure

to speed up the automotive sector’s transition.

Existing emissions trading schemes are

strengthened to align with a 1.5°C pathway,

triggering a significant carbon price shock in 2028.

This slows economic recovery and leads to

heightened inflation as production costs rise due to

increased energy costs, although some of these

impacts are partially offset by substantial public

and private investment aimed at enabling a faster

transition. Carbon Border Adjustment Mechanisms

(CBAMs) are introduced, causing supply-side

shocks and increased trade frictions. Proposals to

tighten EPC minimum standards are accelerated,

bringing forward compliance deadlines for Buy-to-

Let, Social Housing, and UK Commercial Real

Estate properties to achieve EPC rating C or above.

In the US, no additional climate policy is assumed

at this stage. Nevertheless, some indirect effects

are felt from the transition in Europe, primarily

through reduced demand for carbon-intensive US

exports as CBAMs decrease their competitiveness,

and global fossil fuel price shocks.

Stage 3:

By 2029, carbon price growth in the UK and EU

slows but remains high. Technological progress,

coupled with global capital shifting towards low-

carbon solutions, drives the creation of new green

jobs.

In 2029, the US makes a rapid pivot back to

transition policy, aiming to catch up domestically

in low-carbon technologies. Policies similar to

those introduced in Stage 2 in Europe are

implemented, with similar inflationary impacts.

The scenario will have significant impacts on

Barclays, including:

1. Amplified market shocks: additional to existing

macroeconomic shocks, there will be further

equity and credit shocks for brown industries

and financiers, as a result of immediate

repricing.

2. Amplified credit deterioration: additional

credit risk on brown industries as a result of

lower earnings expectations and refinancing

risks.

3. Increase in frequency of physical risk events:

throughout the time horizon, there is an increase

in the occurrence of physical hazards such as

flood, hurricanes and droughts.

TCFD Strategy Recommendation C

Results and insights

Over the five-year horizon, the IST25 exercise

demonstrates that Barclays remains resilient under

a scenario of global economic fragmentation,

persistent inflation and a combined climate shock.

The scenario features both transition and physical

climate risks, including severe weather events and

a rapid repricing of financial assets. Following this

is a steep increase in carbon prices in the EU and

UK and accelerated policy action on energy

efficiency and real estate standards.

The Investment Bank is the main contributor to

climate-related losses under IST25, reflecting its

exposure to sectors most sensitive to transition and

physical climate risks. Losses are driven by

declining demand and sustained low prices in oil

and gas, The scenario incorporates a sharp rise in

carbon prices in the EU and UK, with the EU

Emissions Trading System (ETS) price rising to

$309/tCO 2 e.

The UK Mortgages portfolio is directly impacted

by both transition and physical climate risks. The

scenario assumes major flood and storm events, as

well as increased compliance costs from tightened

EPC legislation, requiring upgrades to minimum

energy performance standards by 2028.

Other portfolios, such as BUK Business Bank and

unsecured lending, are primarily affected by the

broader macroeconomic environment under stress.

While these portfolios are included in the overall

scenario, their results are not materially driven by

climate-specific factors in IST25.

The IST25 results are fully integrated into the

Group’s Internal Capital Adequacy Assessment

Process (ICAAP), informing the setting of risk

appetite and supporting the Board’s approval of the

medium-term capital plan. The scenario confirms

that the Group’s capital and liquidity positions

remain robust, with headroom above regulatory

and internal thresholds. Management actions, both

business-as-usual and strategic, provide additional

capacity to absorb stress impacts if required.

While the IST25 exercise incorporates further

enhancements in scenario design, modelling, and

risk transfer mechanisms, it is acknowledged that

results are subject to inherent uncertainties and

limitations. These include the evolving nature of

climate risk modelling, the potential for more

severe or frequent physical events, and the impact

of future regulatory changes. The Group continues

to refine its approach to stress testing, with a focus

on improving data quality, model governance, and

scenario relevance to ensure ongoing resilience in

the face of emerging risks.

Reverse Stress Test

A climate-based Reverse Stress Test was

conducted during 2025, testing the Group’s

resilience to extreme climate events that challenge

the viability of the Group's business model. The

exercise tested both physical and transition risk

drivers. For physical risk, the scenario included

more frequent and severe physical hazards

unfolding and resultant tightening of insurance

markets; for transition risk it explored a volatile

transition, where uncertainty causes challenges to

firms' business models in transition-sensitive

sectors.

Physical Risk: Extreme weather events strike in

the UK, EU and US. In the scenario, the Thames

Barrier in the UK is modelled as failing due to

inadequate funding of repairs, and an extreme

hurricane season in the US is ~3x worse than

historic averages. This leads to an insurance

'Minsky Moment', where (re)insurers rapidly

update risk appetite for severe physical risks,

leading to significant coverage restrictions,

increases to premiums and stranded assets.

Transition Risk: As a result of these physical risk

events, the pressure for transition increases, as the

ability to do so declines. Global responses are

disorderly and divergent, as they seek to reduce

GHGs whilst addressing impacts of physical risk

events, and this increases the volatility and

uncertainty over where and how fast the transition

will occur. As a result, firms struggle to establish

effective and efficient business plans, impacting

firms with green and brown exposure and causing

deterioration in financial performance.

Results and insights

Three sensitivities were assessed across the

Group’s Corporate, Mortgage, Cards and

Structured Lending and Financing portfolios,

reflecting the high level of uncertainty of the

scenario. The Group’s business model could reach

non-viability in the two most extreme cases which

tested our vulnerability to income losses and

capital increases. The exercise highlighted the

ways in which these portfolios could be the major

driver of losses in a climate scenario, particularly

due to physical risk, and provided valuable

learnings for further investigation:

1 For UK Mortgages, the exercise provided

valuable insights into how concentrations of

flood risk can affect the portfolio, how acute

(severe flood event) and chronic (ongoing

precipitation saturating the ground) can interact

to cause significant floods, and highlighted the

crucial role that flood defences play in

alleviating the impact of flooding on UK homes.

2 For the Corporate Portfolio, results highlighted

how physical perils can impact those with high

concentrations of assets exposed to these risks,

as well as a longer tail of firms with some of

their operating sites in sensitive locations. For

transition, the portfolio can be exposed to both a

fast and slow transition, particularly those

companies who have a concentration of green or

brown technologies.

3 For Cards, the assessment focused on the US

portfolio, and demonstrated the reliance on

ongoing affordable home, health and car

insurance for customers, as well as wider

reliance on FEMA and State disaster relief

programmes.

4 For our Structured Lending and Financing

portfolio, the exercise pointed out that extreme

tail risk is driven by commensurately severe

devaluation of properties in certain US states.

TCFD Strategy Recommendation C

2025 Enhancements

During 2025, Barclays have made several key enhancements across climate scenario development, climate risk modelling, and the ways in which we embed climate learnings into our risk management.

•Climate scenariosare developed by our Global

Economic Scenarios Team using existing

scenario expansion tools and processes,

supplemented with dedicated climate analysis

for consistency and granularity. Climate

considerations are increasingly embedded within

our internal stress testing framework.

•An expanded set of climate-specific variables

enables modelling of a wider range of impacts.

For example, this year we worked with the

Barclays Commodities Research Team to assess

the likely effect of the scenario on Brent oil

prices, strengthening our climate stress-testing

capabilities.

•A new judgement-based approach model for

climate scenario design has been introduced,

establishing dedicated governance for climate

scenario development.

•Scenarios are benchmarked against the latest

NGFS short-term scenarios to ensure alignment

with industry standards.

•For UK residential mortgages, we have

continued enhancing the model for both Stress

Testing and Economic Capital assessment. The

methodology is now able to assess the impacts

of windstorm, in addition to flood, subsidence

and EPC risk. The model was also enhanced to

capture properties for which we did not have

flood or subsidence risk data by using a fallback

mechanism.

•The Corporate Model has been further enhanced

this year by the addition of a capital expenditure

module, delineating costs between clients who

are more or less well-positioned under a climate

scenario. This comes with refined assumptions,

to address the fact that not all clients can achieve

the same level of production that the economy

desires in green alternatives, and that clients

lagging behind would have to engage in further

research and development to meet product

demand.

•The model is also taking greater geographical

granularity into account, by considering regional

specific demand and price curves across

industries, to better reflect climate policy and

sentiment.

•The Commercial Real Estate portfolio continues

to be an area of focus for assessing climate risk

impacts, with additional sensitivities performed

to help understand the range of outcomes.

•The US REITs portfolio has been analysed using

a qualitative model in IST 2025, with key

considerations being physical risk drivers, e.g.

floods, hurricanes and wildfires. The REITs

book is analysed over a five-year horizon at a

property and geography level. The analysis

factors in rental revenue impact, property

valuation impact, restoration costs, operating

expense, insurance cover and debt. A sensitivity

analysis has also been conducted to validate the

model internally for all relevant parameters.

Challenges and limitations

Barclays is continuing to better its understanding of the interlinking relationships between climate, particularly transition risk, and macro variables, a lack of adequate historical data being a key limitation to progress.

Data

There are inherent challenges in climate modelling

due to limitations in data quality and availability,

given the short history of climate assessments

within the financial services industry.

•Data coverage is often lacking, where a subset

of assets may not have the appropriate

information publicly disclosed. Climate scenario

risk analysis requires approaches and tools that

are more granular (e.g. focus on company-level

analysis), which differs from more traditional

stress-testing exercises conducted at portfolio or

sector level. This creates a need for more

granular data.

•While high data granularity is desirable to model

client-specific features, the balances between

high data granularity and the additional insights

provided must be investigated to assess the

appropriate level of modelling.

•Data coherence issues may present

inconsistencies in modelling. Emissions data is

often one-year lagged, thus where the latest

quarter/year financials are available, the

emissions data may not be reflective of the

company's operations, especially where there

has been substantial growth or decline, mergers

and acquisitions or other special activities.

There are inherent unce rtainties with scenario

design, largely attributed to limited history of the

interactions between climate risks and the

•Timing and interactions of physical and

transition risks can impact the Group's

assessment of capital adequacy and resilience.

Assumptions around such compounding effects,

while nuanced, are critical to our loss

assessment and subsequently risk management

processes and business strategy.

•There is a level of uncertainty with climate

stress-testing projections in (i) how the scenario

will manifest; (ii) how customers and clients

will react; and (iii) the final loss quantification.

•An understanding of compounding risks and

feedback loops between financial systems, the

economy, and climate risks remains a challenge,

given the lack of historical precedent of such

interactions. Over longer time horizons, it

becomes increasingly difficult to capture the

range of second-order effects as physical and

transition risks evolve, assess the rate in which

risks manifest or subside, or identify inflection

points.

Important information/Disclaimers

Information provided in climate and

sustainability disclosures

What is important to our investors and stakeholders

evolves over time, and we aim to anticipate and

respond to these changes. Disclosure expectations

in relation to climate change and sustainability

matters are particularly fast moving, and differ

from more traditional areas of reporting including

in relation to the level of detail and forward-

looking nature of the information involved and the

consideration of impacts on the environment and

other persons. We have adapted our approach in

relation to the disclosure of such matters. Our

climate and sustainability disclosures take into

account the wider context relevant to these topics,

which may include evolving stakeholder views, the

development of our climate strategy, longer

timeframes for assessing potential risks and

impacts, international long-term climate and

nature-based policy goals, evolving sustainability-

related policy frameworks (and the harmonisation

or interoperability of relevant regulation) and

geopolitical developments and regional variations.

Our climate and sustainability disclosures are

subject to more uncertainty than disclosures

relating to other subjects, given market challenges

in relation to data reliability, consistency and

timeliness – the use of estimates, judgements and

assumptions which are likely to change over time,

the application and development of data, models,

scenarios and methodologies, changes in the

regulatory landscape, and variations in reporting

standards. Our approach to materiality may

continue to evolve as our, and the industry's,

understanding of climate and sustainability-related

risks and opportunities continues to develop.

These factors mean disclosures may be amended,

updated, and recalculated in future as market

practice and data quality and availability develops,

and could cause actual achievements, results,

performance or other future events or conditions to

differ, in some cases materially, from those stated,

implied and/or reflected in any forward-looking

statements or metrics included in our climate and

sustainability disclosures. We give no assurance as

to the likelihood of the achievement or

reasonableness of any projections, estimates,

forecasts, targets, commitments, ambitions,

prospects or returns contained in our climate and

sustainability disclosures and make no

commitment to revise or update any such

disclosures to reflect events or circumstances

occurring or existing after the date of such

Disclaimers

In preparing the climate and sustainability content

within the Barclays PLC annual report on Form 20-

F wherever it appears, we have:

•Made certain key judgements, estimations and

assumptions. This is, for example, the case in

relation to financed emissions, portfolio

alignment, classification of sustainable and

transition finance and revenues, operational

emissions and sustainability metrics,

measurement of climate risk and scenario

analysis

•Used climate and sustainability data, models,

scenarios and methodologies that we considered

appropriate for these purposes at the time of

deployment. Some of these were provided by

third parties, over whom we have no control,

and may have been based on differing or

unknown methodologies. The underlying

assumptions, interpretations or methodologies

may not be independently verifiable and could

be inaccurate. Climate and sustainability data,

models, scenarios and methodologies are subject

to future risks and uncertainties and may change

over time. Climate and sustainability disclosures

in this document, including climate and

sustainability-related data, models and

methodologies, are not of the same standard as

those available in the context of other financial

information and use a greater number and level

of judgements, assumptions and estimates,

including with respect to the classification of

sustainable and transition finance and revenues.

Climate and sustainability disclosures are also

not subject to the same or equivalent disclosure

standards, historical reference points,

benchmarks or globally accepted accounting

principles. Historical data cannot be relied on as

a strong indicator of future trajectories in the

case of climate change and its evolution.

Outputs of models, processed data, scenario

analysis and the application of methodologies

will also be affected by underlying data quality,

which can be hard to assess, or challenges in

accessing data on a timely basis

•Continued (and will continue) to review and

develop our approach to data, models, scenarios

and methodologies in line with market principles

and standards as this subject area matures. The

data, models, scenarios and methodologies used

(including those made available by third parties)

and the judgements, estimates and/or

assumptions made in them or by us are rapidly

evolving, including scientific evidence relating

to climate change and scenarios outlining

pathways to net zero, and this may directly or

indirectly affect the metrics, data points, targets,

convergence points and milestones contained in

the climate and sustainability content within the

annual report on Form 20-F. Further, changes in

external factors which are outside of our control

such as accounting and/or reporting standards,

improvements in data quality, data availability,

or updates to methodologies and models and/or

updates or restatements of data by third parties,

could impact – potentially materially – the

performance metrics, data points, targets,

convergence points and milestones contained in

the climate and sustainability content within the

annual report on Form 20-F. In future reports we

may present some or all of the information for

this reporting period (including information

made available by third parties) using updated or

more granular data or improved models,

scenarios methodologies, market practices or

standards. Equally, we may need to re-baseline,

restate, revise, recalculate or recalibrate

performance against targets, convergence points

or milestones on the basis of such updated data.

Important information/Disclaimers (continued)

Such updated information may result in different

outcomes than those included in the annual

report on Form 20-F. It is important for readers

and users of the annual report on Form 20-F to

be aware that direct, like-for-like comparisons of

each piece of information disclosed may not

always be possible from one reporting period to

another. The 'Reducing our financed emissions'

section of the annual report on Form 20-F

highlights where information in respect of a

previous reporting period has been updated.

Page 51 sets out the data sourcing and data

quality considerations and our approach to

reporting financed emissions data. For

operational emissions, this is covered on page 59.

•Included in the annual report on Form 20-F a

number of graphics, infographics, text boxes and

illustrative case studies and credentials which

aim to give a high-level overview of certain

elements of the climate and sustainability

content within the annual report on Form 20-F

and improve accessibility for readers. These

graphics, infographics, text boxes and

illustrative case studies and credentials are

designed to be read within the context of the

annual report on Form 20-F as a whole.

•On sustainable revenues, we review our revenue

perimeter on an ongoing basis and assess our

coverage against the pure-play criteria in our

SFF and TFF. As a result, reported baseline

metrics may change from one reporting period

to another, and direct like-for-like comparisons

may not always be possible from one reporting

period to another.

There are a variety of internal and external factors

which may impact our reported metrics and

progress against our targets, convergence points

and milestones. We expect to continue to see this

impact our metrics in the future as data availability

and quality, methodologies, guidance, and best

practices for calculating our financed and

operational emissions metrics - all of which

include differing levels of estimation - continue to

evolve and be refined.

Any information contained or referred to in the

annual report on Form 20-F, in relation to any

actual or potential climate and sustainability

objective, issue or consideration is not intended to

be relied upon for EU Sustainable Finance

Disclosure Regulation classification purposes, EU

Taxonomy Regulation classification purposes, or

any other classification regimes.

Our governance framework facilitates the effective

management of the Group across its diverse businesses.

Board Governance

Welcome to our 2025 Board Governance report. The report sets out

the composition of our Board and explains how our Board governance

framework operates, alongside the key areas of focus for our Board and Board

Committees in 2025.

Aim of our governance

The primary aim of our governance is that it:

•seeks to ensure that our decision-making is aligned to our

Purpose, Values and Mindset

•creates long-term sustainable value for our shareholders, having

regard to the interests of all our stakeholders

•is effective in providing constructive challenge, advice and

support to management

•provides checks and balances and drives informed, collaborative

and accountable decision-making.

Compliance with the Code

•Our Board Governance report reflects the requirements of the

2024 UK Corporate Governance Code (the Code) in force as at 31

•To view how we comply with the Code,

please see the How We Comply section on page 107.

Certain additional information, signposted throughout this report,

is available at home.barclays/corporategovernance

Directors' report: Board of Directors