Social and environmental risk governance

Environmental and Social Risk Assessment Process

Barclays approach to environmental and social risk management is based on a combination of policy and guidance. This enables us to adopt a robust approach, while maintaining the flexibility to consider potential clients and transactions on their respective merits.

Clear lines of communication exist between Barclays lending managers, credit teams, our central Environmental and Social Risk Management Team and our Group Brand and Reputation Committee – all of whom may be involved in discussing and assessing the potential environmental and social impacts of our activities.

Initially, a lending manager will liaise with credit teams and, if a proposed transaction is judged to have environmental or social sensitivities, guidance may be sought from Barclays Environmental and Social Risk Management Team. The case may be further escalated to Barclays Group Brand and Reputation Committee for review before a decision is taken to provide financial support.
 

Environmental and Social Risk Management Team

Barclays has a dedicated team in place to advise on complex transactions with potential environmental or social sensitivities. Based in London, UK, the team is supported by a network of Barclays representatives around the world, tasked with raising environmental and social risk awareness, providing guidance, acting as points of referral in their regions and the dissemination of information.

Activities outside of project financing which involve clients operating in environmentally sensitive sectors or which are subject to sanction by Barclays Group Credit Committee are referred to the Environmental and Social Risk Management Team for ongoing assessment (every two years as a minimum).

The team also advises on a range of banking products such as corporate loans, trading facilities and bonds for clients which operate in environmentally or socially sensitive sectors.

Group Brand and Reputation Committee

This Committee was established in 2004 with the objective of protecting and enhancing Barclays brand. Members include divisional Chief Executives from across the Barclays Group and senior heads of key central support functions.
 

The Committee considers issues which could affect Barclays reputation, acts as a think-tank for the development of our sustainability agenda and assesses our progress as a socially responsible organisation.

Independent consultants

Barclays has a panel of independent environmental consultancy firms which undertake Environmental and Social Impact Assessment reviews to inform our environmental risk due diligence.

These consultants have been selected for their environmental and social risk experience in a range of industry sectors and for their geographical expertise. Their ongoing suitability is reviewed on a regular basis.
 

Training

We continue to focus on raising the awareness of environmental and social risk issues among Barclays colleagues worldwide. Coaching customer-facing colleagues in all our Business Units helps us ensure such risks are considered alongside more traditional business risks when lending decisions are made.

Industry-specific guidance

Our industry-specific risk guidance covers more than 50 environmentally and socially sensitive activities in 10 different sectors. Those sectors include:

• Agriculture and fisheries
• Chemicals and pharmaceuticals (manufacturing and bulk storage)
• Forestry and logging
• General manufacturing
• Infrastructure
• Metals and mining
• Oil and gas
• Power generation, supply and distribution
• Service industry
• Utilities and waste management.