BARCLAYS PLC
For the period ended Dec 31, 2025. Filed Feb 10, 2026.
View on SEC.govAbout this filing
The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2025 · Filed Feb 10, 2026
Contents
Cover page
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 20-F
(Mark One)
| ¨ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
OR
For the fiscal year ended 31 December 2025
OR
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
For the transition period from _______________to _______________
| ¨ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|
Date of event requiring this shell company report _______________
| Commission file number | Barclays PLC | 1-09246 |
|---|
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:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| 25p ordinary shares* | Not applicable* | New York Stock Exchange* |
| American Depositary Shares, each representing four 25p ordinary shares | BCS | New York Stock Exchange |
| 5.25% Fixed Rate Senior Notes due 2045 | BCS45 | New York Stock Exchange |
| 4.375% Fixed Rate Senior Notes due 2026 | BCS26 | New York Stock Exchange |
| 5.20% Fixed Rate Subordinated Notes due 2026 | BCS26A | New York Stock Exchange |
| 4.337% Fixed Rate Senior Notes due 2028 | BCS28 | New York Stock Exchange |
| 4.950% Fixed Rate Senior Notes due 2047 | BCS47 | New York Stock Exchange |
|---|---|---|
| 4.836% Fixed Rate Subordinated Callable Notes due 2028 | BCS28A | New York Stock Exchange |
| 3.250% Fixed Rate Senior Notes due 2033 | BCS33 | New York Stock Exchange |
| 4.972% Fixed-to-Floating Rate Senior Notes due 2029 | BCS29 | New York Stock Exchange |
| 5.088% Fixed-to-Floating Rate Subordinated Notes due 2030 | BCS30 | New York Stock Exchange |
| 2.645% Fixed Rate Resetting Senior Callable Notes due 2031 | BCS31 | New York Stock Exchange |
| 3.564% Fixed Rate Resetting Subordinated Callable Notes due 2035 | BCS35 | New York Stock Exchange |
| 2.667% Fixed Rate Resetting Senior Callable Notes due 2032 | BCS32 | New York Stock Exchange |
| 3.811% Fixed Rate Resetting Subordinated Callable Notes due 2042 | BCS42 | New York Stock Exchange |
| 2.279% Fixed Rate Resetting Senior Callable Notes due 2027 | BCS27 | New York Stock Exchange |
| 2.894% Fixed Rate Resetting Senior Callable Notes due 2032 | BCS32A | New York Stock Exchange |
| 3.330% Fixed Rate Resetting Senior Callable Notes due 2042 | BCS42A | New York Stock Exchange |
| 5.501% Fixed Rate Resetting Senior Callable Notes due 2028 | BCS28B | New York Stock Exchange |
| 5.746% Fixed Rate Resetting Senior Callable Notes due 2033 | BCS33A | New York Stock Exchange |
| 7.385% Fixed Rate Resetting Senior Callable Notes due 2028 | BCS28C | New York Stock Exchange |
| 7.437% Fixed Rate Resetting Senior Callable Notes due 2033 | BCS33B | New York Stock Exchange |
| 5.829% Fixed-to-Floating Rate Resetting Senior Callable Notes due 2027 | BCS27A | New York Stock Exchange |
| 6.224% Fixed-to-Floating Rate Resetting Senior Callable Notes due 2034 | BCS34 | New York Stock Exchange |
| 7.119% Fixed-to-Floating Rate Subordinated Callable Notes due 2034 | BCS34A | New York Stock Exchange |
| 6.496% Fixed-to-Floating Rate Senior Callable Notes due 2027 | BCS27B | New York Stock Exchange |
| 6.490% Fixed-to-Floating Rate Senior Callable Notes due 2029 | BCS29A | New York Stock Exchange |
| 6.692% Fixed-to-Floating Rate Senior Callable Notes due 2034 | BCS34B | New York Stock Exchange |
| Floating Rate Senior Callable Notes due 2027 | BCS27C | New York Stock Exchange |
| 5.674% Fixed-to-Floating Rate Senior Callable Notes due 2028 | BCS28D | New York Stock Exchange |
| 5.690% Fixed-to-Floating Rate Senior Callable Notes due 2030 | BCS30A | New York Stock Exchange |
|---|---|---|
| 6.036% Fixed-to-Floating Rate Senior Callable Notes due 2055 | BCS55 | New York Stock Exchange |
| Floating Rate Senior Callable Notes due 2028 | BCS28E | New York Stock Exchange |
| 4.837% Fixed-to-Floating Rate Senior Callable Notes due 2028 | BCS28F | New York Stock Exchange |
| 4.942% Fixed-to-Floating Rate Senior Callable Notes due 2030 | BCS30B | New York Stock Exchange |
| 5.335% Fixed-to-Floating Rate Senior Callable Notes due 2035 | BCS35A | New York Stock Exchange |
| 5.086% Fixed-to-Floating Rate Senior Callable Notes due 2029 | BCS29B | New York Stock Exchange |
| 5.367% Fixed-to-Floating Rate Senior Callable Notes due 2031 | BCS31A | New York Stock Exchange |
| 5.785% Fixed-to-Floating Rate Senior Callable Notes due 2036 | BCS36 | New York Stock Exchange |
| 4.476% Fixed-to-Floating Rate Senior Callable Notes due 2029 | BCS29C | New York Stock Exchange |
| 5.860% Fixed-to-Floating Rate Senior Callable Notes due 2046 | BCS46 | New York Stock Exchange |
| Floating Rate Senior Callable Notes due 2029 | BCS29D | New York Stock Exchange |
- 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.
| 25p ordinary shares | 13,866,661,730 |
|---|
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.
Yes ¨ No þ
Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
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.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to
Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth
company. See definition of “large accelerated filer”, “accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
| Large Accelerated Filer | þ | Accelerated Filer | ¨ | Non-Accelerated Filer | ¨ | Emerging growth company | ¨ |
|---|
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided
pursuant to Section 13(a) of the Exchange Act.¨
†The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board
to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public
accounting firm that prepared or issued its audit report. þ
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.¨
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive- based
compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).¨
*Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP¨
International Financial Reporting Standards as issued by the International Accounting Standards Boardþ
Other¨
*If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has
elected to follow:
Item 17¨
Item 18¨
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No þ
(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
| Form 20-F item number · Page and caption referencesin this document* | ||
|---|---|---|
| 1 | Identity of Directors, Senior Management and Advisers | Not applicable |
| 2 | Offer Statistics and Expected Timetable | Not applicable |
| 3 · Key Information | ||
| A. [Reserved] | ||
| B. Capitalization and indebtedness · Not applicable | ||
| C. Reason for the offer and use of proceed · Not applicable | ||
| D. Risk factor | 184-201 | |
| 4 | Information on the Company | |
| A. History and development of the company · 14, 80-83, 315-336, 402-406 (Note 25), 441, 449 | ||
| B. Business overview · ii (Market and other data), 14-24, 186-188, 300-313, 355-357 (Note 2) | ||
| C. Organizational structure · 421-425 (Notes 33 and 34), 434-436 (Note 42) | ||
| D. Property, plants and equipment · 392-395 (Notes 19 and 20) | ||
| 4A | Unresolved staff comments | Not applicable |
| 5 | Operating and Financial Review and Prospects | |
| A. Operating result · 100-104, 193-197, 202-213, 276-285, 290-291, 300-313, 315-336, 371-377 (Note 14) | ||
| B. Liquidity and capital resource · 192-193, 207-208, 276-285, 287, 347, 350, 351 (Note 1), 371-377 (Note 14), 407-410 (Notes 26 and 27), 421-422 (Note 33), 426-427 (Note 36), 466-475 | ||
| C. Research and development, patents and licenses, etc · Not applicable | ||
| D. Trend information | 184-201, 275-294, 315-336 | |
| E. Critical Accounting Estimates · Not applicable | ||
| F. [Reserved] | ||
| G. [Reserved] | ||
| 6 | Directors, Senior Management and Employees | |
| A. Directors and senior management | 72-75, 79, 109-115 | |
| B. Compensation · 116-156, 413-420 (Notes 31 and 32), 430-431 (Note 38), 457-8, 464-465, 478 | ||
| C. Board practice | 72-75, 77-79, 92-99, 107-108, 116, 155-156, 457-458 | |
| D. Employees · 26-28, 321-329, 355-357 (Note 2), 461 | ||
| E. Share ownership · 153-154, 413-414 (Note 31), 430-431 (Note 38), 464-465, 478 | ||
| F. Erroneously awarded compensation · Not applicable | ||
| 7 | Major Shareholders and Related Party Transactions | |
| A. Major shareholder | 113-114, 444-445, 452 | |
| B. Related party transaction · 430-431 (Note 38), 478 | ||
| C. Interest of experts and counsel · Not applicable | ||
| 8 | Financial Information | |
| A. Consolidated statements and other financial information | 339-437, 442, 444 | |
| B. Significant change · Not applicable | ||
| 9 · The Offer and Listing | ||
|---|---|---|
| A. Offer and listing detail | 444, 451 | |
| B. Plan of distribution · Not applicable | ||
| C. Market | 444, 451 | |
| D. Selling shareholder · Not applicable | ||
| E. Dilution · Not applicable | ||
| F. Expenses of the issue · Not applicable | ||
| 10 | Additional Information | |
| A. Share capital · Not applicable | ||
| B. Memorandum and Articles of Association | 109-115. 441-443 | |
| C. Material contract | 130-133. 456-458 | |
| D. Exchange control | 449 | |
| E. Taxation | 446-449 | |
| F. Dividends and paying agent · Not applicable | ||
| G. Statement by expert · Not applicable | ||
| H. Documents on display | 449 | |
| I. Subsidiary information · 421-422 (Note 33), 434-436 (Note 42) | ||
| 11 | Quantitative and Qualitative Disclosure about Market Risk | 182-313, 371-390 (Notes 14-17) |
| 12 | Description of Securities Other than Equity Securities | |
| A. Debt Securities · Not applicable | ||
| B. Warrants and Rights · Not applicable | ||
| C. Other Securities · Not applicable | ||
| D. American Depository Shares | 450 | |
| 13 | Defaults, Dividend Averages and Delinquencies | Not applicable |
| 14 | Material Modifications to the Rights of Security Holders and Use of Proceeds | Not applicable |
| 15 | Controls and Procedures | |
| A. Disclosure controls and procedures | 453 | |
| C. Attestation report of the registered public accounting firm | 339-341 | |
| D. Changes in internal control over financial reporting | 114-115 | |
| 16A | Audit Committee Financial Expert | 75. 92-99 |
| 16B | Code of Ethics | 451 |
| 16C | Principal Accountant Fees and Services | 98-99, 432 (Note 39) |
| 16D | Exemptions from Listing Standards for Audit Committees | Not applicable |
| 16E | Purchases of Equity Securities by the Issuer and Affiliated Purchasers | 460 |
| 16F | Change in Registrant's Certifying Accountant | Not applicable |
| 16G | Corporate Governance | 107-108, 451 |
| 16H | Mine Safety Disclosure | Not applicable |
| 16I | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | Not applicable |
| 16J | Insider Trading Policies | 459 |
| 16K | Cybersecurity | 80-83, 102-104, 178-179, 193-194, 295-297 |
| 17 | Financial Statements | See item 8 |
| 18 | Financial Statements | Not applicable |
| 19 | Exhibits | Exhibit Index |
- 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.
| Strategy | 10 | |
|---|---|---|
| Climate & Sustainability | 30 | |
| Governance | •Governance contents | 70 |
| •Directors’ report | 102 | |
| •Remuneration report | 116 | |
| •Other Governance | 157 | |
| Risk review | •Risk review contents | 180 |
| •Risk management | 182 | |
| •Material existing and emerging risks | 184 | |
| •Principal risk management | 202 | |
| •Risk performance | 275 | |
| •Supervision and regulation | 300 | |
| Financial review | •Key performance indicators | 315 |
| •Consolidated summary income statement | 317 | |
| •Income statement commentary | 318 | |
| •Consolidated summary balance sheet | 319 | |
| •Balance sheet commentary | 320 | |
| •Analysis of results by business | 321 | |
| •Non-IFRS performance measures | 330 | |
| Financial statements | •Consolidated financial statements | 342 |
| •Notes to the financial statements | 351 | |
| Shareholder information | •Key dates, Annual General Meeting, dividends, and other useful information | 438 |
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 10 |
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
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 11 |
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.
| We deploy our resources... | |
| We draw on tangible and intangible assets to drive long-term, sustainable value creation. We invest and maintain our resources to ensure we can continue to provide maximum value to our customers and clients. | |
| Our people, Purpose, Values and Mindset Our people are our organisation. We deliver success through a Purpose-driven culture. | |
| Our brandOur brand equity instils trust, lowers the cost of acquiring customers and clients, and helps retain them for longer. | |
| Technology and infrastructureOur AI-enabled technology and infrastructure capabilities enhance customer experience and support strong resilience. | |
| Operations and governance Our risk management, governance and controls help ensure customer and client outcomes are delivered in the right way. |
...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)
| ...and provide positive outcomes for our stakeholders. | |
| Our diversified model positively impacts our stakeholders and provides the resilience and consistency needed to deliver value for them. | |
| Customers and clientsSupporting our customers and clients to achieve their goals with our products and services. | |
| ColleaguesProviding employment to c.93,000 colleagues globally and helping them develop as professionals. | |
| SocietyProviding support to our communities, and access to social and environmental financing to address societal needs. | |
| InvestorsDelivering attractive and sustainable shareholder returns on the foundation of a strong balance sheet. |
| A | Barclays UK | 8,708 |
|---|---|---|
| B | Barclays UK Corporate Bank | 2,064 |
| C | Barclays Private Bank and Wealth Management | 1,380 |
| D | Barclays Investment Bank | 13,055 |
| E | Barclays US Consumer Bank | 3,681 |
Excludes Head Office.
| A | Barclays UK | 3,413 |
|---|---|---|
| B | Barclays UK Corporate Bank | 970 |
| C | Barclays Private Bank and Wealth Management | 375 |
| D | Barclays Investment Bank | 4,614 |
| E | Barclays US Consumer Bank | 515 |
Excludes Head Office.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 12 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 13 |
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.
| Our Purpose | Working together for a better financial future |
| Our Vision | The UK-centred leader in global finance |
| Our PrioritiesWe want Barclays to be renowned for excellent operational performance, highly satisfied customers and clients, strong liquidity, capital and risk management, and predictable, attractive shareholder returns. We have built strong foundations and have a clear plan to achieve these objectives and deliver further value for shareholders by 2028. Over the next three years we are accelerating momentum towards making Barclays Simpler, Better and More balanced. |
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
| 2028 targets | Statutory RoTE¹>14% | Total payout 2026-2028>£15bn2with capacity to support investment and growth | Investment Bank RWAsc.50% | Supporting targets | Income>5% CAGR2025-2028 | Cost: income ratioLow 50s% | Loan loss rate 50-60bpsthrough the cycle |
|---|---|---|---|---|---|---|---|
| 2026 targets | Statutory RoTE1>12% | Total payout 2024-2026 At least £10bn2,3incl. planned £2bn dividend for 2026 | Investment Bank RWAsMid 50s%4 | Supporting targets | Incomec.£31bn | Cost: income ratioHigh 50s% | Loan loss rate50-60bpsthrough the cycle |
| 2025 actuals | Statutory RoE 9.8%Statutory RoTE 11.3% | Total payout 2025 £3.7bn | Investment Bank RWAs55% | Supporting actuals | Income£29.1bn | Cost: income ratio61% | Loan loss rate52bps |
| Continue to target a 13-14% CET1 ratio range | |||||||
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 14 |
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
| Barclays UK | 24% |
|---|---|
| Barclays UK Corporate Bank | 7% |
| Barclays Private Bank and Wealth Management | 2% |
| Barclays US Consumer Bank | 8% |
| Head Office | 4% |
£357 bn
| Barclays Investment Bank | 55% |
|---|
Notes:
1 Smart Investor will be known as Barclays Direct Investing.
2 Head Office provides centralised services across the Group.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 15 |
2025 divisional review
| Barclays UK | |
| Barclays UK consists of Retail Banking and Business Banking. | |
| Our business•Retail Banking offers retail solutions to help customers with their day-to-day banking needs, including current accounts, savings accounts, mortgages and unsecured lending, such as credit cards and loans.•Business Banking serves business clients, from high-growth start-ups to SMEs, with banking solutions and specialist advice. | Focus areas•Improving customer experience.•Creating opportunities to deepen relationships with our customers and clients.•Growing lending market share.•Delivering operational efficiencies to facilitate investment in growth. |
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
| Measuring where we are | |
| £8.7bnIncome 2024: £8.3bn | £3.4bnProfit before tax 2024: £3.6bn |
| £4.9bnOperating expenses 2024: £4.3bn | 15.5%Return on equity 2024: 16.9%20.7%Return on tangible equity 2024: 23.1% |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 16 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 17 |
| UK Corporate Bank | |
| UK Corporate Bank offers a range of Corporate Lending and Transaction Banking services to clients with an annual revenue of more than £6.5m, through to FTSE350 companies. | |
| Our business•Corporate Lending: Offers a range of term, revolving and overdraft facilities to medium and large-sized corporates across the UK, with financing solutions tailored to specific industries and sectors.•Transaction Banking: Provides cash management, trade and working capital solutions, risk management solutions and payment services internationally. | Focus areas•Driving productivity and seamless digital delivery, simplifying and improving client experience.•Growing broad-based income through deeper client relationships with products and solutions which address their needs.•Growing share of lending and attracting new clients. |
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
| Measuring where we are | |
| £2.1bnIncome 2024: £1.8bn | £1.0bnProfit before tax 2024: £0.7bn |
| £1.1bnOperating expenses 2024: £1.0bn | 18.9%Return on equity 2024: 16.0%18.9%Return on tangible equity 2024: 16.0% |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 18 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 19 |
| Private Bank and Wealth Management | |
| Private Bank and Wealth Management (PBWM) comprises PBWM UK – serving clients across the full wealth continuum in the UK and Crown Dependencies – and PBWM International, serving high- and ultra-high-net worth clients in selected international markets. | |
| Our business•UK Digital Investing is for self-directed investors, with investment starting from just £1.•UK Affluent is for UK clients with £250k to £3m of investable assets1.•Private Banking UK is a full-service proposition for clients with investable assets of £3m+. •Private Banking International is a full-service proposition for clients with investable assets of £5m+ internationally2 , with a focus on clients in the Europe, Middle East and Asia wealth corridors. | Focus areas•Leveraging our simplified business structure – aligned to market opportunity in the UK and internationally – and reinvesting cost efficiencies to strengthen the business and support growth. •Supporting Private Bank clients with their lifestyle, liquidity and legacy, and helping retail investors gain access to transparent, fairly priced investment solutions.•Continuing to grow assets under management to increase the relative contribution of non-interest income, to deliver high-quality recurring revenue. |
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
| Measuring where we are | |
| £1.4bnIncome 2024: £1.3bn | £0.4bnProfit before tax 2024: £0.4bn |
| £1.0bnOperating expenses 2024: £0.9bn | 24.3%Return on equity 2024: 25.7%26.3%Return on tangible equity 2024: 28.1% |
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+.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 20 |
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
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 21 |
| Investment Bank | |
| The Investment Bank provides corporate clients, money managers, financial institutions, governments and supranational organisations with advisory, finance and risk management services. | |
| Our business•Global Markets provides institutional investors, sovereigns, and corporates with a full range of execution services, ideas and risk management solutions across asset classes (Equities, Credit, Rates, FX and Securitised Products). The Research team provides institutional investors with data-driven analysis, actionable insights and access to our analysts across global sectors, markets and economies. •Investment Banking works with companies, governments and financial institutions worldwide to provide expert advice, innovative solutions and access to capital. It includes International Corporate Banking, which provides financial institutions and large corporate clients with wholesale lending and treasury solutions – supported by deep industry knowledge and local, on-the-ground specialists. | Focus areas•Driving higher RWA productivity across all Investment Bank businesses.•Deepening client relationships while maintaining prudent risk management.•In Global Markets, sustaining momentum in our businesses with Top 5 market share1, growing our focus businesses and continuing to scale more stable financing income. •In Investment Banking, building share and product penetration across Advisory, Capital Markets and Treasury Coverage, and delivering an expanded reach for our International Corporate Bank. |
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
| Measuring where we are | |
| £13.1bnIncome 2024: £11.8bn | £4.6bnProfit before tax 2024: £3.8bn |
| £8.1bnOperating expenses 2024: £7.9bn | 10.6%Return on equity 2024: 8.5%10.6%Return on tangible equity 2024: 8.5% |
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).
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 22 |
"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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 23 |
| US Consumer Bank | |
| US Consumer Bank (USCB) is a leading co-branded credit card issuer and financial services partner in the United States. | |
| Our business•Barclays US Consumer Bank has more than 25 million customers and partnerships with 20 of America's leading brands across the airline, travel, retail and affinity sectors.•We provide co-branded, small business and private label credit cards, personal loans, online savings accounts, and certificates of deposits. | Focus areas•Scaling and diversifying by growing existing partnerships and winning new partners.•Investing in digitisation and AI to deliver enhanced customer experiences and operational efficiencies.•Improving net interest margin by optimising pricing and credit mix, while reducing funding costs.•Selective risk transfer to optimise use of balance sheet. |
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
| Measuring where we are | |
| £3.7bnIncome 2024: £3.3bn | £0.5bnProfit before tax 2024: £0.4bn |
| £1.6bnOperating expenses 2024: £1.6bn | 9.5%Return on equity 2024: 8.1%11.0%Return on tangible equity 2024: 9.1% |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 24 |
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
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 25 |
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
| 2025 | 2024 | 2023 |
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
| A | Global Markets revenue ranking and share3 |
| B | Dealogic Investment Banking global fee ranking and share demonstrating our performance vs peers4 |
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).
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 26 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 27 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 28 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 29 |
Net zero operations progress
| Operational emissions | ||
|---|---|---|
| FY2025 absolute emissions (tCO2e) | FY2024 absolute emissions (tCO2e) | Performance vs. 2018 baseline |
| Scope 1 and 2 market-based emissions | ||
| 7,276 | 10,745 | -97% |
| Scope 1 and 2 location-based emissions | ||
| 80,096 | 93,789 | -62% |
| Supply chain emissions | ||
| 532,797 | 547,587 | -39% |
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
| Cumulative performance vs baseline | ||
|---|---|---|
| Portfolio · Dec 2025 | ||
| December 2020 baseline | ||
| Upstream Energy* | 43.7MtCO2e | -41% |
| Power | 204 kgCO2e/MWh | -35% |
| December 2021 baseline | ||
| Cement | 0.551 tCO2e/t | -13% |
| Steel | 1.352 tCO2e/t | -30% |
| December 2022 baseline | ||
| Automotive manufacturing | 169.1 gCO2e/km | -3% |
| December 2023 baseline | ||
| UK Commercial Real Estate | 24.7 kgCO2e/m2 | -6% |
| UK Agriculture* | 0.46 MtCO2e | -13% |
| Aviation | 866 gCO2e/RTK | -2% |
| UK Housing | 27.1 kgCO2e/m2 | -3% |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 30 |
|---|
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/
| Our Purpose Working together for a better financial future | ||
|---|---|---|
| Working with clients on their transition | Financing clients’ transition | Scaling climate technology |
| Integrating nature and social considerations | ||
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 31 |
|---|
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.
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Our strategy, selected targets and progress
The table below sets out progress against our strategy and selected targets.
| Previously announced target or mandate · Progress | ||||
|---|---|---|---|---|
| 2025 performance | ||||
| Financing clients' transition | Sustainable financing | •Facilitate $1trn of Sustainable and Transition Financing between 2023 and the end of 20301 | •$98.5bn•(Life-to-date $260.7bn) | |
| Scaling climate technology | Barclays Climate Ventures | •Increase mandate to invest up to £500m of Barclays' capital in climate tech start-ups by the end of 2027 | •£71m (£274m invested by the end of 2025) | |
| By the end of 2025/2030 · Cumulative change | ||||
| Reducing our financed emissions portfolio reduction targets/ convergence point | Upstream Energy3 | •By the end of 2025: 15% reduction in absolute CO2e emissions against a 2020 baseline of 74.1 MtCO2e (Scopes 1, 2 & 3) | -41% | |
| •By the end of 2030: 40% reduction in absolute CO2e emissions against a 2020 baseline of 74.1 MtCO2e (Scopes 1, 2 & 3) | ||||
| Power4 | •By the end of 2025: 30% reduction in CO2e emissions intensity against a 2020 baseline of 316 kgCO2e/MWh (Scope 1) | -35% | ||
| •By the end of 2030: 50-69% reduction in CO2e emissions intensity against a 2020 baseline of 316 kgCO2e/MWh (Scope 1) | ||||
| Cement3 | •20-26% reduction in CO2e emission intensity against a 2021 baseline of 0.631 tCO2e/t (Scopes 1 & 2) | -13% | ||
| Steel3 | •20-40% reduction in CO2e emissions intensity against a 2021 baseline of 1.945 tCO2e/t (Scopes 1 & 2) | -30% | ||
| Automotive manufacturing3 | •40-64 % reduction in CO2e emissions intensity against a 2022 baseline of 174.8 gCO2e/km (Scopes 1, 2 & 3) | -3% | ||
| Aviation3 | •11-16 % reduction in CO2e emissions intensity against a 2023 baseline of 882 gCO2e/RTK (Scopes 1 & 3) | -2% | ||
| UK Commercial Real Estate2 | •51% reduction in CO2e emissions intensity against a 2023 baseline of 26.3 kgCO2e/m2 (Scopes 1 & 2) | -6% | ||
| UK Agriculture3 | •21% reduction in absolute CO2e emissions against a 2023 baseline of 0.53 MtCO2e (Scopes 1, 2 & 3) | -13% | ||
| UK Housing2 | •Convergence point: 40% reduction in CO2e emissions intensity against a baseline of 27.9 kgCO2e/m2 (Scopes 1 & 2) | -3% | ||
| By the end of 2025 · 2025 performance | ||||
| Achieving net zero operations | Renewable electricity sourcing | •100% renewable electricity sourcing for our global real estate portfolio by the end of 2025 | 100% sourced | |
| Scope 1 and 2 emissions | •90% absolute reduction in our Scope 1 and 2 market-based GHG emissions against a 2018 baseline by the end of 2025 | 97% reduction | ||
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.
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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.
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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.
| Transition risks | Policy | Consumer/Investor Sentiment | Technology | Litigation and Enforcement |
|---|---|---|---|---|
| Definition | •Risks arising due to evolving climate and /or environmental legislation and policy, regulatory changes / penalties, disclosure mandates as the economy transitions. | •Risks arising from stakeholders’ changing perceptions of businesses and industries, or individual preferences under a transitioning economy, impacting supply, demand and price dynamics. | •Risks arising from rapid innovation or obsolescence and the cost of adopting new, cleaner technologies. | •Risk of being the subject of a legal claim or regulatory investigation on the basis of perceived action or inaction relating to climate or environmental matters. |
| Example transmission channels | •Increased costs and higher capital expenditure to meet regulatory compliance.•Asset stranding as a result of inability to operate under evolving regulatory or policy landscape. | •Asset devaluation as preferences shift away from certain goods and services.•Lowered revenue as demand falls in certain sectors and prices in turn drop. | •Higher capital expenditure costs as new technologies require increased investments.•Costs increasing as a result of changing prices of raw materials or supply chains altering. | •Increased costs via responding to claim or investigation, or potential liability for fine or damages.•Lowered revenue as demand falls due to reputational impacts. |
| Expected time horizons | •S, M, L | |||
| Physical risks | Acute | Chronic |
|---|---|---|
| Definition | •Risks arising due to event-driven hazards, including increasing frequency and/or intensity of extreme weather events, such as storms, heatwaves, wildfires, floods, etc. | •Risks arising due to longer-term changes in weather patterns, including increased mean temperatures, including sea-level rise, changing precipitation patterns, water stress/ scarcity, drought conditions, etc. |
| Example transmission channels | •Business interruption causes lower revenues as physical hazards create production challenges from damaged building and operating sites. •Lower revenue or higher operating costs, driven by supply chain squeezes making raw materials more challenging to obtain. •Devaluation of assets as damages and risks to property from natural hazards are priced into the valuation. | •Higher capital expenditure costs to invest in adaptation measures to prevent future damages as climate causes increased frequency/severity of weather events. •Costs increase as a result of rising insurance costs and premiums. |
| Expected time horizons | •S, M, L | •M, L |
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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
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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.
| Key: | Programmes | Business units |
|---|
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
| How we operate across our client base | ||||
|---|---|---|---|---|
| Consumer | Small and growth stage | Mid-size corporates | Large corporates and governments | Investors |
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
| A | B | C | D |
|---|
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
| A | Solar energy | 60% |
|---|---|---|
| B | Low-carbon heating | 31% |
| C | Doors and windows | 5% |
| D | Insulation | 4% |
| E | Solid wall insulation | 0% |
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/
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 37 |
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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/
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 38 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 39 |
|---|
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.
| 2025 | 2024 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 40 |
|---|
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
| A | Transport |
|---|---|
| B | Renewable Energy and Energy Efficiency |
| C | Agriculture, Land Use |
| D | Water and Waste |
| E | Other |
Green bond investment portfolio impact by region (%)
| A | Europe |
|---|---|
| B | Asia |
| C | South America |
| D | Africa |
| E | North America |
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 41 |
|---|
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/
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 42 |
|---|
TCFD Strategy Recommendation B
Financing clients’ transition (continued)
Sustainable finance dashboard
| Sustainable and Transition Financing facilitated (2023 - the end of 2030)$1trn target | Achieved to date$260.7bn | For 2025, we generated just under £0.6bn of revenues from sustainable and transition-related activity1 |
Annual breakdown by category($bn)
| A | B | C | D |
|---|
2025
2024
| A | B | C | D |
|---|
| 2025 · 2024 | |||
|---|---|---|---|
| A | Environmental | 42.1 | 30.6 |
| B | Social | 40.2 | 46.2 |
| C | Sustainability-linked | 11.7 | 12.0 |
| D | Transition | 4.5 | 5.7 |
Annual breakdown by region($bn)
2025
2024
| A | B | C |
|---|
2025
2024
| A | B | C |
|---|
| 2025 · 2024 | |||
|---|---|---|---|
| A | Americas | 37.2 | 37.1 |
| B | UK/Europe | 53.8 | 51.3 |
| C | Asia and Rest of World | 7.5 | 6.0 |
Annual breakdown by product($bn)
| A | B | C | E |
|---|
| A | B | C | E |
|---|
| 2025 · 2024 | |||
|---|---|---|---|
| A | Bonds | 71.0 | 65.5 |
| B | Equity | 1.3 | 5.0 |
| C | Loans | 23.5 | 21.2 |
| D | Investments | 0.0 | 0.0 |
| E | Other (Contingent) | 2.7 | 2.7 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 43 |
|---|
TCFD Strategy Recommendation B
Financing clients’ transition (continued)
| Products, transactions and counterparties included in Sustainable Finance volume and revenues | ||
|---|---|---|
| $1tn Sustainable Finance volume target | Sustainablerevenues | |
| Products/transactions qualified per the Barclays SFF/TFF | ||
| Transactions eligible under the Barclays SFF | ü | ü |
| Transactions eligible under the Barclays TFF | ü | ü |
| Pure play clients | ü | ü |
| Additional products beyond the scope of Barclays SFF/TFF provided to pure play clients | ||
| Merger and acquisition advisory | ü | |
| Risk management solutions products / derivatives | ü | |
| Liability products | ü | |
| Products and services outside the SFF/TFF framework | ||
| Sustainable Discretionary Portfolio Management | ü | |
| Risk management solution products / derivatives on sustainable and transition products | ü | |
| Products with an underlying sustainable and/or transition feature | ü | |
| Investment products with an underlying sustainable and/or transition feature | ü | |
| Financing of sustainable or transition funds | ü | |
| Revenue from Barclays Climate Ventures | ü | |
| Note:Sustainable Revenues as at 31 December 2025 and their basis of preparation are based on v4.2 of the SFF and v1.1 of the TFF. 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. | ||
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
| A | 2025 progress | B | Total since 2018 |
|---|
Value of completions (£m)
| A | 2025 progress | B | Total since 2018 |
|---|
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 44 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 45 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 46 |
|---|
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.
| A | B | C | D | E | F | G |
|---|
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)
| A | 2020 | 24 |
|---|---|---|
| B | 2021 | 30 |
| C | 2022 | 35 |
| D | 2023 | 49 |
| E | 2024 | 65 |
| F | 2025 | 71 |
| G | Mandate by end of 2027 | 500 |
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 47 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 48 |
|---|
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:
- 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.
- 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:
- 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.
- 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.
| Identification of in-scope exposure to calculate financed emissions (as at December 2024) | ||
|---|---|---|
| Category | Value (as at Dec 2024) in £m | Comments |
| Total Barclays balance sheet | 1,518,202 | |
| Exclusions: | ||
| Cash and bank balances, Cash collateral and settlement balances, Derivative financial instruments, Goodwill and intangible assets, Current tax assets, Deferred tax assets, Other assets, Trading portfolio assets (excluding drawn loans), Reverse Repos, and Retail lending (personal lending, retail cards) | (-)1,052,618 | Exposures which have been excluded by the PCAF Standard |
| Property, plant and equipment | (-)3,604 | Emissions covered under Barclays Scope 1 and Scope 2 |
| Retirement benefit assets | (-)3,263 | Emissions on Barclays Bank UK Retirement Fund reported separately as part of Task Force on Climate-related Financial Disclosures Report 2024 |
| Total Barclays exposure in scope for computing financed emissions | 458,717 | |
| Inclusions | ||
| Total Undrawn commitments and contingent liabilities | (+)261,687 | We have gone beyond the scope of PCAF’s definition of asset classes to additionally cover undrawn commitments and contingent liabilities. We have excluded exposures for which PCAF is yet to establish a methodology (personal lending, retail cards and Trading balances) from our total undrawn commitments and contingent liabilities. |
| Capital markets financing (33% of Barclays share) | (+)135,545 | Equity holdings, Bond issuances, Equity issuances, Syndicated loans |
| Total Barclays activities considered for financed emissions calculations | 855,949 | |
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 49 |
|---|
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:
- 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.
- 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.
- 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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 50 |
|---|
TCFD Strategy Recommendation B
Financed emissions for activities with targets (as at December 2024)
| Activities · Scope 1,2 emissions (MtCO2e) · Scope 3 emissions (MtCO2e) | ||||||||
|---|---|---|---|---|---|---|---|---|
| On-balance-sheet lending · Undrawn commitments and contingent liabilities · Capital markets financing · Data quality score1 · On-balance-sheet lending · Undrawn commitments and contingent liabilities · Capital markets financing · Data Quality score | ||||||||
| Mining and Quarrying | ||||||||
| Upstream Energy | 0.7 | 3.0 | 0.9 | 3.1 | 7.6 | 22.2 | 6.6 | 3.1 |
| Energy and water | ||||||||
| Power Generation | 0.5 | 9.2 | 4.5 | 3.2 | — | — | — | — |
| Agriculture, Food and Forest Products | ||||||||
| UK Agriculture | 0.4 | 0.1 | — | 4.3 | 0.0 | 0.0 | — | 4.3 |
| Manufacturing | ||||||||
| Automotive manufacturing (LDV) | 0.0 | 0.1 | 0.0 | 2.4 | 0.4 | 2.7 | 0.6 | 3.3 |
| Cement manufacturing | 0.3 | 0.4 | 0.0 | 2.0 | — | — | — | — |
| Steel manufacturing | 0.2 | 0.6 | 0.0 | 2.4 | — | — | — | — |
| Mortgages | ||||||||
| UK Housing (Convergence point) | 1.4 | 0.1 | 0.0 | 3.5 | — | — | — | — |
| Materials and Building | ||||||||
| UK Commercial Real Estate | 0.1 | 0.0 | — | 4.1 | — | — | — | — |
| Transport | ||||||||
| Aviation | 0.5 | 2.7 | 0.9 | 3.0 | 0.1 | 0.6 | 0.2 | 3.0 |
| Total Portfolio | 4.1 | 16.2 | 6.3 | — | 8.1 | 25.5 | 7.4 | — |
Financed emissions for other activities not covered by targets (as at December 2024)
| Activities | Scope 1,2 emissions (MtCO2e) | |||
|---|---|---|---|---|
| On-balance-sheet lending · Undrawn commitments and contingent liabilities · Capital markets financing · Data quality score | ||||
| Mining and Quarrying | 0.7 | 1.6 | 0.3 | 3.0 |
| Energy and water | 0.7 | 1.7 | 0.7 | 2.8 |
| Agriculture, Food and Forest Products | 2.3 | 1.1 | — | 4.8 |
| Manufacturing | 1.4 | 7.1 | 1.8 | 2.8 |
| Mortgages | 0.0 | — | — | 5.0 |
| Materials and Building | 0.2 | 0.2 | 0.0 | 3.9 |
| Transport | 0.4 | 3.1 | 2.9 | 3.7 |
| Other Sectors | 4.4 | 5.2 | 2.8 | 4.0 |
| Total Portfolio | 10.1 | 20.0 | 8.5 | — |
| Government and central bank | 18.9 | — | — | — |
| Government and central bank (excluding LULUCF2) | 20.5 | — | — | — |
| Portfolio Data Quality score (Scope 1, 2) | 3.7 | |||
| Emissions covered under targets integrating 1.5°C aligned scenarios (excluding Government and central bank) | 41% | |||
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 51 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 52 |
|---|
TCFD Strategy Recommendation B
Our approach to reporting financed emissions data
| Scenario | Our approach | |
|---|---|---|
| Error identified in our internal finance data or methodology | Restatement | •Financed emissions metrics for all years impacted by the error will be recalculated including the baseline year•If the impact to portfolio progress over the reporting period is less than 5 percentage points (pp) we will reflect the updated progress in the current reporting period and update the baseline. If the impact is greater than 5pp we will restate prior progress. |
| Changes to our methodology and/or data sources to calculate financed emissions (for example, including additional GHGs) | Re-baseline | •The updated methodology will be applied from the start of the current reporting period•The last reported financed emissions spot metric will be recalculated using the new methodology/data source to provide the new baseline. This will ensure consistency of data and methodology when calculating our performance•The recalculated baseline and the progress achieved to date will be used to disclose the theoretical baseline for the year in which the targets were originally set•The cumulative progress will be for the current reporting period (using the new methodology) and the progress up until the last reporting period (using the old methodology). |
| Updates to external counterparty data driven by timing lags when data is reported (for example, counterparty valuations or emissions estimates) | Capture in-year | •The impact of updated external data will be included in the current period financed emissions data and the progress metric for the current reporting period•Data lags are inherent to the process and Barclays will endeavour to use the latest available data. Historically reported metrics will not be updated for data lags. |
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.
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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:
- Absolute emissions: a measure of the absolute
emissions generated, or fair share of the
company's emissions over time;
- 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
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TCFD Strategy Recommendation B
Overview of financed emissions reduction targets and progress
| Sector · Setting our targets · Monitoring our progress in 2025 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sector | Sector boundaries | Emissions scope | GHG included | Reference scenario | Target metric | Unit of measurement | Baseline year | Target versus baseline | Cumulative change | Absolute emissions (MtCO2e) | Physical intensity |
| Upstream Energy | Upstream Energy (producers of coal, oil, gas and NGLs) | 1,2 & 3 | Carbon dioxide and methane | IEA SDS | Absolute emissions | MtCO2e (absolute) | 2020 | -15% by end of 2025 | -41% | 43.7 | 59.2 gCO2e/MJ |
| IEA NZE2050 | -40% by end of 2030 | ||||||||||
| Power | Power generators | 1 | Carbon dioxide | IEA SDS | Physical intensity | kgCO2e/MWh | 2020 | -30% by end of 2025 | -35% | 13.6 | 204 |
| IEA NZE2050 | -50% to -69% by end of 2030 | ||||||||||
| Cement | Cement manufacturers | 1 & 2 | All GHGs | IEA NZE2050 | Physical intensity | tCO2e/t | 2021 | -20% to -26% by end of 2030 | -13% | 1.5 | 0.551 |
| Steel | Steel manufacturers | 1 & 2 | All GHGs | IEA NZE2050 | Physical intensity | tCO2e/t | 2021 | -20% to -40% by end of 2030 | -30% | 0.8 | 1.352 |
| Automotive manufacturing | Light Duty Vehicles manufacturers | 1,2 & 3 | All GHGs for Scope 1 and 2; carbon dioxide for Scope 3 | IEA NZE2050 | Physical intensity | gCO2e/km1 | 2022 | -40% to -64% by end of 2030 | -3% | 3.6 | 169.1 |
| Aviation | Commercial Aviation (Air Travel) – Passenger (including belly cargo) and Dedicated cargo | 1 & 3 | Carbon dioxide for Scope 1; All GHGs for Scope 3 | MPP Prudent | Physical intensity | gCO2e/RTK | 2023 | -11% to -16% by end of 2030 | -2% | 4.6 | 866 |
| UK Commercial Real Estate | UK Corporate Bank | 1 & 2 | Carbon dioxide, methane and nitrous oxide | CRREM II | Physical intensity | kgCO2e/m2 | 2023 | -51% by end of 2030 | -6% | 0.1 | 24.7 |
| UK Agriculture | Livestock and dairy farmers | 1, 2 & 3 | Carbon dioxide, methane and nitrous oxide | CCC BNZ | Absolute emissions | MtCO2e | 2023 | -21% by end of 2030 | -13% | 0.5 | N/A |
| UK Housing2 | UK buy-to-let and owner-occupied mortgages, Social Housing and Business Banking | 1 & 2 | Carbon dioxide, methane and nitrous oxide | CCC BNZ | Physical intensity | kgCO2e/m2 | 2023 | Portfolio convergence point vs. baseline | -3% | 1.6 | 27.1 |
| -40% by end of 2030 | |||||||||||
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.
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TCFD Strategy Recommendation B
Baselines at December 2025
| Sector · Unit · Baseline year · Baseline metric (last reported) · Previously reported metrics · Recalculated metrics | ||||||
|---|---|---|---|---|---|---|
| Financed emissions for December 2024 · Change at December 2024 (percentage change) · Recalculated financed emissions for December 2024 · Theoretical baseline metric(re-baselined) | ||||||
| Upstream Energy1 | MtCO2e (absolute) | 2020 | 74.1 | No major impact of methodology changes | ||
| Power3 | kgCO2e/MWh | 311 | 219 | -30% | 225 | 316 |
| Cement1 | tCO2e/t | 2021 | 0.631 | No major impact of methodology changes | ||
| Steel1 | tCO2e/t | 1.945 | No major impact of methodology changes | |||
| Automotive manufacturing1 | gCO2e/km | 2022 | 174.8 | No major impact of methodology changes | ||
| Aviation1 | gCO2e/RTK | 2023 | 882 | No major impact of methodology changes | ||
| UK Commercial Real Estate | kgCO2e/m2 | 30 | 29.5 | -2% | 25.9 | 26.3 |
| UK Agriculture1 | MtCO2e (absolute) | 0.53 | No major impact of methodology changes | |||
| UK Housing2 | kgCO2e/m2 | 32.1 | 31.8 | -1% | 27.6 | 27.9 |
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.
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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%)
| 2020 | 2025 | 2030 |
| IEA NZE Benchmark: World | Barclays' progress | u | Portfolio target |
SteelPhysical Intensity (tCO2e/t) (Indexed 2021 = 100)
(-20% to -40%)
Dec'25: 1.352
(-30%)
| 2020 | 2025 | 2030 |
| IEA NZE Benchmark: World | Barclays' progress | u | Portfolio target (range) |
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%)
| 2020 | 2025 | 2030 |
| IEA NZE Benchmark: World | Barclays' progress | u | Portfolio target (range) |
Automotive manufacturingPhysical Intensity (gCO2e/km) (Indexed December 2022 = 100)
Dec'25: 169.1
(-3%)
(-40% to -64%)
| 2020 | 2025 | 2030 |
| IEA NZE Benchmark: World | Barclays' progress | u | Portfolio target (range) |
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%)
| 2020 | 2025 | 2030 |
| IEA NZE Benchmark: World | Barclays' progress | u | Portfolio target (range) |
Aviation (passenger and cargo) Physical Intensity (gCO2e/RTK) (Indexed December 2023 = 100)
(-11% to -16%)
Dec'25:866
(-2%)
| 2023 | 2025 | 2030 |
| MPP Aviation Pathway | Barclays' progress | u | Portfolio target (range) |
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%)
| 2023 | 2025 | 2030 |
| 2023 | 2025 | 2030 |
| 2023 | 2025 | 2030 |
| CCC - Synthetic BNZP Scenario: UK | Barclays' progress | u | Portfolio target |
| CCC - Synthetic BNZP Scenario: UK | Barclays' progress | ▲ | Portfolio convergence point |
| CRREM II- 1.5 degree | Barclays' progress | u | Portfolio target |
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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
| A | EPC Rating A | 4,492 |
|---|---|---|
| B | EPC Rating B | 141,972 |
| C | EPC Rating C | 263,583 |
| D | EPC Rating D | 281,279 |
| E | EPC Rating E | 86,366 |
| F | EPC Rating F | 16,356 |
| G | EPC Rating G | 3,269 |
| 2025 total | 797,318 |
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
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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
| 2025 targets and milestones achieved | |||
|---|---|---|---|
| Targets by the end of 2025 · FY2025 performance · FY2024 performance | |||
| 100% | renewable electricity sourcing for our global real estate portfolio | 100% | 100% |
| 90% | absolute reduction in our Scope 1 and 2 market-based GHG emissions against a 2018 baseline | ' 97% | 95% |
| Milestones by the end of 2025 · FY2025 performance · FY2024 performance | |||
| 100% | electric vehicles (EVs) transition for UK company cars | 100%7 | 98%7 |
| 70% | of our suppliers, by addressable spend8, having science-based GHG emissions reduction targets9 in place | 73%10 | 64%10 |
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.
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TCFD Strategy Recommendation B
| By the end of | Net zero operations milestones | FY2025 performance | FY2024 performance |
|---|---|---|---|
| 2030 | 50% absolute reduction in our Scope 1 and 2 location-based GHG emissions against a 2018 baseline | 62% | 56% |
| 100% EVs or ultra-low emissions vehicles (ULEVs) for all company cars | 68%2 | 57%2 | |
| 90% of our suppliers, by addressable spend3, having science-based GHG emissions reduction targets4 in place | 73%5 | 64%5 | |
| 50% absolute GHG supply chain emissions6 reduction against a 2018 baseline | 39%8 | 35%8 | |
| 2035 | 10MW on-site renewable electricity capacity installed across our global real estate portfolio | 2.33 MW | 0.40 MW |
| 115 kWh/m2/year average energy use intensity across our corporate offices7 | 234 kWh/m2/year | 225 kWh/m2/year | |
| 2050 | 90% absolute GHG supply chain emissions6 reduction against a 2018 baseline | 39%8 | 35%8 |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 60 |
|---|
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
| Working day | Public holiday | Weekend day |
| A | Energy consumption with adoption of energy optimisation programme |
|---|---|
| B | Energy consumption with no energy optimisation programme |
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 61 |
|---|
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
| A | Spend-based data* | B | Primary 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.
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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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 63 |
|---|
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
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 64 |
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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:
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 65 |
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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)
| A series of risk events triggers a sharp shift in consumer preference for greener products, with regional divergence in the intensity of change. Investors reassess exposure to brown assets, resulting in significant market repricing—a ‘Climate Minsky’ moment. | Low carbon investments surge while regional climate policy divergence grows, with transition leaders advancing measures like expansion of Emissions Trading Scheme (ETS), introduction of Carbon Border Adjustment Mechanism (CBAM), ICE phaseouts and energy mandates. | Carbon prices stay high but stabilize in early adopters, where technology drives green jobs and low-carbon growth. Late adopters implement similar policies to catch up. |
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:
- 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.
- Amplified credit deterioration: additional
credit risk on brown industries as a result of
lower earnings expectations and refinancing
risks.
- 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.
| A | Economic Only Stress Scenario |
|---|---|
| B | Economic and Climate Stress |
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 66 |
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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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 67 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 68 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 69 |
|---|
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.
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 70 |
|---|
Our governance framework facilitates the effective
management of the Group across its diverse businesses.
| Board Governance | |
|---|---|
| Directors’ report | |
| Board of Directors | 72 |
| Group Executive Committee | 76 |
| Our governance framework | 77 |
| Key Board activities | 80 |
| Board Nominations Committee report | 84 |
| Board Audit Committee report | 92 |
| Board Risk Committee report | 100 |
| Board Sustainability Committee report | 105 |
| How we comply | 107 |
| Other statutory and regulatory information | 109 |
| Remuneration report | 116 |
| Other Governance | |
|---|---|
| Climate and sustainability governance | 158 |
| Managing impacts in lending and financing | 163 |
| Human rights/Modern slavery | 165 |
| Our supply chain | 167 |
| Supporting our customers | 168 |
| The Barclays Way | 171 |
| Whistleblowing | 172 |
| Tax | 173 |
| Financial crime | 175 |
| Health and safety | 176 |
| Managing data privacy, security and resilience | 177 |
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 71 |
|---|
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 | 72 |
| Group Executive Committee | 76 |
| Our governance framework | 77 |
| Key Board activities | 80 |
| Board Nominations Committee report | 84 |
| Board Audit Committee report | 92 |
| Board Risk Committee report | 100 |
| Board Sustainability Committee report | 105 |
| How we comply | 107 |
| Other statutory and regulatory information | 109 |
| Remuneration report | 116 |
| Strategy | Shareholder information | Climate and sustainability report | Governance | Risk review | Financial review | Financial statements | Barclays PLC Annual Report 2025on Form 20-F | 72 |
|---|
Directors' report: Board of Directors
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.