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Barclays Citizenship Report provides a comprehensive view of performance against our 2015 Citizenship Plan.
Building the ‘Go-To’ bank
Citizenship Report
2013
About this report
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Annual Report 2013
Barclays Annual Report
includes the Strategic
report, the Governance
report, Risk review and
the Financial report –
including our audited
?nancial statements.
Citizenship Report 2013
Barclays Citizenship Report
provides a comprehensive
view of performance against
our 2015 Citizenship Plan.
We also release supporting
information, including our
reporting protocol, full
independant assurance
statement and GRI index.
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Building the ‘Go-To’ bank
Annual Report
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Building the ‘Go-To’ bank
Citizenship Report
2013
Basis of preparation
The Citizenship Report (the Report) gives a comprehensive account of
Barclays’ performance in 2013 across a range of social, ethical and
environmental areas. It outlines progress on the priorities and targets
identi?ed in our 2015 Citizenship Plan, and how we are addressing issues
identi?ed as important to both our business and stakeholders.
The Report comprises a strategic report which includes an overview of key
activity and the challenges we faced and detailed information providing
in-depth discussion and data. The term ‘Barclays’ or the ‘Group’ means
Barclays PLC together with its subsidiaries. ‘Barclays’ and ‘Group’ are terms
which are used to refer to either of the preceding groups when the subject
matter is identical.
We disclose non-?nancial information on a voluntary basis. We adhere to
the AA1000 AccountAbility Principles Standard (2008) (‘AA1000APS’)
principles of inclusivity, materiality and responsiveness ?. We have set out
in more detail how we adhere to the AA1000APS principles in our Citizenship
Reporting Protocol. The Citizenship Reporting Protocol also provides
important information about our reporting boundaries and de?nitions for
the Citizenship data included in this Report.
We engaged KPMG LLP to undertake a limited assurance engagement over
the selected Citizenship performance data that has been marked in this
Report with the symbol r or p and the description of Barclays’ adherence to
the AA1000APS principles marked with the symbol ?. For more information,
please see page 49.
We report against the Global Reporting Initiative (‘GRI’) G3 Indicator
protocols and Financial Sector Supplement. We have self-declared our
reporting, considering our Citizenship Report, our Annual Report and
Accounts and supplementary online information, to be Application Level B.
See the Global Reporting Initiative Index online for more information.
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 certain of the Group’s plans and its current goals and
expectations relating to its future ?nancial condition andperformance.
Barclays cautions readers that no forward-looking statement is a guarantee
of future performance and that actual results could differ materially from
those contained in the forward-looking statements. These forward-looking
statements can be identi?ed 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. Examples of forward-looking statements
include, among others, statements regarding the Group’s future ?nancial
position, income growth, assets, impairment charges and provisions,
business strategy, capital, leverage and other regulatory ratios, payment of
dividends (including dividend pay-out ratios), projected levels of growth in
the banking and ?nancial markets, projected costs, original and revised
commitments and targets in connection with the Transform Programme,
deleveraging actions, estimates of capital expenditures and plans and
objectives for future operations and other statements that are not historical
fact. By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances. These may be
affected by changes in legislation, the development of standards and
interpretations under International Financial Reporting Standards (IFRS),
evolving practices with regard to the interpretation and application of
accounting and regulatory standards,the outcome of current and future legal
proceedings and regulatory investigations, future levels of conduct provisions,
the policies and actions of governmental and regulatory authorities,
geopolitical risks and the impact of competition. In addition, factors including
(but not limited to) the following may have an effect: capital, leverage and
other regulatory rules (including with regard to the future structure of the
Group) applicable to past, current and future periods; UK, United States,
Africa, Eurozone and global macroeconomic and business conditions; the
effects of continued volatility in credit markets; market related risks such
as changes in interest rates and foreign exchange rates; effects of changes
in valuation of credit market exposures; changes in valuation of issued
securities; volatility in capital markets; changes in credit ratings of the
Group; the potential for one or more countries exiting the Eurozone;the
implementation of the Transform Programme; and the success of future
acquisitions, disposals and other strategic transactions. A number of these
in?uences and factors are beyond the Group’s control. As a result, the Group’s
actual future results, dividend payments, and capital and leverage ratios
may differ materially from the plans,goals, and expectations set forth in
the Group’s forward-looking statements. Additional risks and factors are
identi?ed in our ?lings with the SEC including our Annual Report on Form
20-F for the ?scal year ended 31 December 2012, and in the Form 6-K (Film
No. 131097818) dated 16 September 2013, both of which are available on the
SEC’s website at http://www.sec.gov. Any forward-looking statements made
herein speak only as of the date they are made and it should not be assumed
that they have been revised or updated in the light of new information or
future events. Except as required by the Prudential Regulation Authority,
the Financial Conduct Authority, the London Stock Exchange plc (LSE) or
applicable law, Barclays expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statements
contained herein to re?ect any change in Barclays’ expectations with regard
thereto or any change in events, conditions or circumstances on which any
such statement is based. The reader should, however, consult any additional
disclosures that Barclays has made or may make in documents it has
published or may publish via the Regulatory News Service of the LSE
and/or has ?led or may ?le with the SEC.
Visit: barclays.com/citizenshipreport Visit: barclays.com/annualreport
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Barclays PLC Citizenship Report 2013 | 1
Inside this report
Progress update
Balanced Scorecard 10
Balanced Scorecard: Citizenship 14
The way we do business 16
Contributing to growth 32
Supporting our communities 42
Strategic overview
About Barclays 2
Chief Executive’s introduction 4
Q&A’s 5
Strategy 8
Supplementary
information
Benchmarks 48
Assurance 49
Chief Executive’s
introduction
The way we do
business
Ensure our decisions take
account of stakeholder needs
in the short and long term.
Contributing to
growth
Deliver product and service
solutions to help more people
and society progress in
a sustainable way.
Supporting our
communities
Help ?ve million disadvantaged
young people develop the skills
they need to ful?l their potential.
See page 4
See page 16
See page 32
See page 42
2 | Barclays PLC Citizenship Report 2013
About Barclays
Barclays is a major global ?nancial
services provider engaged in personal
banking, credit cards, corporate and
investment banking, and wealth and
investment management. We have
an extensive international presence in
Europe, the Americas, Africa and Asia.
Barclays’ purpose is to help people
achieve their ambitions – in the right
way. With over 300 years of history
and expertise in banking, we operate
in over 50 countries and employ
approximately 140,000 people. We
move, lend, invest and protect money
for customers and clients worldwide.
Our Retail and Business Banking
businesses are organised regionally,
delivering products and services to
individuals and small businesses.
Barclaycard and our Investment Bank,
Corporate Banking, and Wealth and
Investment Management businesses
operate internationally.
50
We operate in over 50 countries
48 million
We move, lend, invest and protect money for 48 million
customers and clients
139,600
We employ almost 140,000 people worldwide
300
We have over 300 years of history and expertise in banking
£28,155m
Total income net of insurance claims in 2013
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Barclays PLC Citizenship Report 2013 | 3
Visit: www.barclays.com/annualreport
UK Retail and Business Banking (UK RBB)
A leading UK high street bank providing retail banking
services and general insurance to individuals and business
banking services to small and medium enterprises (SMEs)
Europe Retail and Business Banking (Europe RBB)
A local presence for Barclays customers in Spain, Italy,
Portugal and France, providing retail banking services to
mass-af?uent individuals and business banking services
to SMEs
Africa Retail and Business Banking (Africa RBB)
A leading pan-African retail and business bank serving
customers and clients in 12 countries with a range of
banking and bancassurance solutions
Barclaycard
A leading international payments business, offering
payments and lending to individuals, and a range of
business services including card issuing and payment
acceptance services
Investment Bank
A global investment bank serving large corporate clients,
?nancial institutions, governments and institutional
investors with ?nancial advisory, capital-raising, ?nancing
and risk management services
Corporate Banking
A leading provider of integrated cash management,
?nancing and risk management solutions to large corporate
clients in the UK and South Africa, and multinationals and
?nancial institutions globally
Wealth and Investment Management
A leading global wealth manager and advisor, providing
private and intermediary clients with international and
private banking, investment management, ?duciary services
and brokerage
Barclays’ banking and ?nancial service businesses work together to provide
customers and clients with the best offerings across our chosen markets
Individuals
a safe place to save,
make payments and
borrow money
Sovereigns
and institutions
capital raising, risk and
advisory services
Small and medium
size businesses
help starting a business,
managing cash, or
funding growth
Corporates
investment advice,
access to finance
and global markets,
hedging and risk
management
Financial institutions
and banks
access to global
markets and risk
management
solutions
4 | Barclays PLC Citizenship Report 2013
People rightly expect businesses to demonstrate
leadership by serving as a catalyst for helping societies
to prosper. Barclays is committed to meeting that
responsibility.
The impact that Barclays can have on societies across
the world should not be underestimated; and the decisions
we make as a business have the ability to deliver positive
bene?ts far beyond the places in which we operate.
Over the past year, we have put the foundations in place
to embed citizenship into the fabric of our business and
this Report provides a comprehensive view of our progress
and the challenges we have faced. We have launched
our new Purpose and Values, our new global code of
conduct, the Barclays Way, and our Balanced Scorecard.
The Scorecard, alongside our Purpose and Values are
now integral to how we measure and reward individual
and business performance and will align the organisation
behind our long-term goals.
We are on track to deliver against many of our targets on
our Citizenship Plan. As part of this, I am particularly proud
of the work colleagues have done to identify and expand
partnerships with clients, government and non-pro?ts
to scale positive social impact on issues such as youth
employability and entrepreneurship.
Throughout 2013, we continued to engage with our
stakeholders across the world to better understand their
concerns, explore how we can work together and receive
feedback on how we can do more. Society continues
to face profound social, economic and environmental
challenges. So, we must build on the feedback from our
stakeholders, maintain momentum, think more boldly
and work with others to truly make a transformative
contribution to society far beyond 2015.
Ensuring Citizenship is at the heart of everything we
do is essential if we are to help people achieve their
ambitions in the right way and become the ‘Go-To’
bank for all of our stakeholders.
Antony Jenkins, Chief Executive
A successful, vibrant ?nance and banking sector is an
essential enabler of social and economic progress,
growth and development.
Ensuring that we consider the needs of all our stakeholders
and take decisions which, in the long term, are positive for
our customers, clients, shareholders, colleagues and the
communities in which we operate is essential to enabling us
to ful?l that role. Above all, we must conduct our business
in a way that is sustainable, facilitating greater and more
inclusive prosperity for current and future generations.
One year on from launching our Purpose and Values, we
have taken a number of signi?cant steps to integrate these
concerns more fully into the way in which we make decisions
and do business. Indeed, it was a pleasure throughout
2013 to see ?rst-hand the commitment of colleagues to
embedding our strategy and the progress that we are making
on the journey towards becoming a sustainable ‘Go-To’ bank.
Our Balanced Scorecard demonstrates clearly that success
will no longer be measured just by what we do, but also by
how we do it. The Barclays Way – our new global code of
conduct – will be our compass on this journey. We have also
strengthened our 2015 Citizenship Plan, including enhancing
the way in which we understand, review and factor emerging
societal concerns into our decision making. We remain focused
on strengthening our Reputation Risk and Conduct Risk
frameworks, at Board level, to ensure we identify and manage
them to consistently high standards throughout our business.
Having secured the foundations on which to build, we move
into 2014 with our core values – respect, integrity, service,
excellence and stewardship – driving everything we do to
achieve our ambition of becoming the ‘Go-To’ bank. I am
proud of the work that colleagues across Barclays are doing
every day for societies and communities around the world.
But there is much more to do and we will continue to work
hard to engage more meaningfully both with society and
with our peers to ensure that we are in the best possible
position to deliver long-term, sustainable value for our
shareholders, our clients and customers, our colleagues
and society at large.
Sir David Walker, Chairman
Introductions
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Barclays PLC Citizenship Report 2013 | 5
Group Chief Executive’s review
Q&A
Extract from Antony’s opening remarks
“Now, the world that you are entering is a world with
a lot of challenges and problems. I know most of you are
business students, so let me just talk about a few of them.
One is demographics – population size and shape. The
world’s population is continuing to grow. By 2050, there
will be 10 billion people on the planet. There are about
seven billion today. Why does that matter? Because the
more people on the planet, the more resources those
people consume. Not just food, which is an obvious thing,
but did you know that for every calorie you consume,
it takes about a pint of water to grow that food? So we
don’t just need a lot more food, we’re going to need a lot
more water, and water’s a scarce resource in many parts
of the world where population is growing very quickly,
particularly in places like India and China.
But the other aspect about population is that the
population is ageing. The average age of the population is
increasing. The number of people over the age of 100 in
the next few years is going to quadruple. So there are
going to be fewer people working to provide the resources
to help the people who are ageing. Demographics –
one problem.
The second problem is climate change. There is no doubt
that the climate is warming. As the climate warms, that
poses lots and lots of challenges for people who live in
places like sub-Saharan Africa where it’s too hot or will
become too hot to grow food. The water level rises. That
creates problems. Temperature switches create more
violent weather. And that, most people would agree, is a
consequence of the way that developed and developing
nations structure their economies. Lots of carbon
dioxide, CO2
, produced by power stations burning coal.
And that’s a problem that society has known about for
20 or 30 years.
And the third problem is a problem which is particularly
relevant to all of you, and that is youth unemployment.
As I travel around the world – to Africa, Spain, the United
States, Portugal, Italy and this country – there are very
high and unprecedented levels of youth unemployment.
And why is that the case? It’s the case because the nature
of work has changed fundamentally.
And what these problems all have in common is the same
characteristic, and that characteristic is that they are all
very long-term, complex, important problems to the
societies where we all live at a time when our institutions
are geared increasingly to the short-term. People accuse
business of being short-term focused. They look at the
?nancial crisis that the banks were involved, that Barclays
was involved in, and say correctly that that was the result
of short-term focus on pro?ts.
So how do we address some of these very long-term
problems with more long-term thinking? We have to
deliver in the short term. Of course we do. But we have
to have a long-term perspective. And for me, that comes
down to leadership, and people who have jobs like mine
have a big responsibility to lead their organisations in
a way that recognises both the long-term and the
short-term.”
Q As you’ve been in charge of Barclays just recently,
where do you want to lead it?
A If you think about what banks do, banks sit right at the
heart of the societies where they do business. In some
ways, they’re different to other businesses because
they’re so important to the economy.
If you don’t have a vibrant and active banking system, you
can’t have a growing economy, and without a growing
economy, you can’t have a vibrant and growing society.
And I think the essence of what I’m trying to do is run
Barclays in a way that delivers for all of the people that
we have to serve.
Now historically, businesses would say their job was to
make pro?ts for their owners or their shareholders and
that’s important because if we don’t make pro?ts for our
owners and shareholders, then we don’t have any capital
to invest in the business. We also have to serve our
customers and clients. We have to make sure that the
people who work at Barclays feel motivated and engaged
by the organisation, that they can grow their careers.
But most importantly, we have to be seen to be a force
for good in society.
Now, I recognise there’s a degree of cynicism because
banks have not been seen as that traditionally. But it’s
very important that the industry begins to be more
proactive in ful?lling its responsibilities to society and
rebuilding trust.
We have had a number of discussions with stakeholders
over 2013 on a range of themes, including our Purpose
and Values, views on the ?nancial services industry and
speci?c issues such as conduct, remuneration and tax.
In order to summarise our position on these topics and
outline our thoughts on the importance of leadership and
long-term thinking, we have extracted the material below
from a talk by Barclays Chief Executive, Antony Jenkins,
in December 2013. Antony spoke to over 100 students at
a Speakers for Schools talk hosted at Brooke House Sixth
Form College in Hackney, London on a range of themes,
followed by a question and answer session.
Brooke House Sixth Form College has provided permission
for the edited transcript to be included in this Report and
published in full online on our website.
6 | Barclays PLC Citizenship Report 2013
Group Chief Executive’s review
Now, this sounds vague and generic, so we’ll be
publishing eight commitments for the business. There will
be two targets for our shareholders, two targets for our
colleagues, two targets for society, and two targets for
our customers and clients. We will publish those targets
and people will be able to hold us accountable for
delivering them.
It’s about, in essence, doing business in the right way. Is it
the right thing to do? Most people know what the right
thing to do is intuitively, but because we have 140,000
people in Barclays, we’ve had to be a bit more speci?c
about that. So we’ve de?ned ?ve values for Barclays and
they’re how I expect people to behave in the organisation.
Those values are respect, integrity, service, excellence,
and stewardship. You might say the ?rst four are pretty
obvious. Of course we want people to treat each other
with respect. We want to act with integrity. We want to
have high levels of service. We strive for excellence. All of
those things may appear to be logical and rational. But
the ?fth value is the most important and that’s the value
of stewardship. What that really means is that when you
work in an organisation like Barclays, which is 320 years
old, you have an obligation when you leave Barclays to
leave it in a better condition than when you came.
> See more on the Balanced Scorecard on page 10
Q You spoke about shareholders that you had to ask for
more money, possibly £6 billion, but I read somewhere
that employees get a bonus [of ] about £1.6 billion
every year. So why don’t you just cancel the bonus
instead of asking for more money from shareholders?
A That’s a good question. Basically if you want to be in
certain types of business, you have to accept the pay
structures in those industries.
If I’m in investment banking, I have to be prepared
to accept the compensation that goes along with
investment banking and that is in the interest of our
shareholders. However, it is very important when it
comes to pay that, ?rstly, you pay for performance. In
other words, you only pay the good people. And that you
pay competitively. In other words, you don’t pay more
than you have to because of the market in which you
operate. So it’s always controversial, the amount of
money that’s paid to certain sectors in banking, not all.
Many people who work in Barclays, the vast majority,
make about the sort of average salary that most people
in this country make.
> See our Annual Report for more information
Q What are you trying to implement to stop any further
[issues] such as bankers pushing interest contracts in
a way that it perpetuates them not thinking about how
the contract is laid out, but in terms of just pushing
for pro?t?
A So that goes back to the values we’ve set and holding
people accountable for doing their work in line with
those values.
Every year, we assess people and determine how they’ve
performed in the year, and traditionally, that would be
about what you’ve achieved. But now it’s as much about
how you’ve achieved it. In other words, you have to be
living the values. You have to be doing business in the
right way. You have to be helping your customers, not just
selling them a product they don’t need so you can make
money quickly. The combination of what you do and how
you do it determines your overall performance rating:
whether you get promoted, how much you get paid,
and so on. It’s very important because you’re right to say,
‘Well, what’s really going to change?’ It’s very important
that we change the way we run Barclays because if we
just run it the way we ran it before, we’re not going to
get a different result. That’s what I’m very committed to
doing – to changing Barclays in a way that meets the
needs of all of our stakeholders in both the short and
the long-term.
Q You spoke about achieving this balance between
the short run and the long run, but have you ever
found yourself in a situation where you had to make
a decision which bene?ts your organisation in the
long run, however, has negative implications in the
short run?
A I face these dilemmas every day, actually – perhaps the
most visible one is the question of the rights issue which
we conducted in the summer. What happens with the
rights issue is that you ask your existing shareholders for
more money. That tends to be quite a dif?cult thing to ask
shareholders for in the short-term, but it was the right
thing to do to position the bank strongly going forward
for the medium and long-term. This is why we asked our
shareholders for close to £6 billion of extra money to put
into the bank.
That is an example of balancing those short and long-
term types of decisions. And it’s not easy. It’s hard enough
to run any institution just for short-term success, let alone
trying to succeed in the short and the long-term. But it’s
the responsibility of leadership to take both perspectives
and to achieve balance between them.
> See our Annual Report for more information
Q&A
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Barclays PLC Citizenship Report 2013 | 7
Q You say that your staff come in every day and want to
serve customers, but then why aren’t they honest with
the customers when, for example, they open bank
accounts? I’m speaking from something that I’ve been
through. When I opened a bank account, I said that I
didn’t want to arrange [an] overdraft, but then they
gave me an overdraft. So how do you deal with that?
A Most people in big organisations are not badly intended
at all. They want to do the right thing. It’s sometimes that
they perceive the right thing differently. That person may
have thought that they were doing you a favour providing
you with an overdraft because at some point you may
need an overdraft.
But the issue is, if you don’t want an overdraft, then you
shouldn’t be encouraged to take one, and that’s the very
delicate balance in getting tens of thousands of people
who work in branches every day to do the right thing.
I emphasise they want to do the right thing. It’s up to
the leadership of the bank to guide them and help them
to identify what that right thing is. And the process of
changing the bank does take time.
Barclays is changing. We know that from lots of different
data sources. We still don’t get it right every day. But we
are absolutely committed to getting it right.
Q I understand that you’ve stepped into Barclays now
and you’ve changed, shaken up things a little bit, and
I’ve done background research on Barclays, and I
found out that in the past, there was something about
tax evasion going on. So what are you guys doing with
that money now?
A Firstly, tax evasion is one thing and that is illegal.
Tax avoidance is not illegal but may well be outside the
spirit of what society expects you to do. And historically,
Barclays was quite active in [aggressive] tax avoidance
and that is something that we have stopped doing.
One of the things I did early on was I closed the part
of the business that was involved in that.
> See more on our Tax Principles on page 27
Q How do you plan to improve the trust that customers
have in your bank?
A Trust is a very easy thing to lose and a very hard thing to
win back. In my view, it will take several years, probably
between ?ve to 10, to rebuild trust in Barclays. I can only
be responsible for Barclays, but I’m hoping in what we do
at Barclays we can also begin to rebuild trust in banking.
That is about what you do, not what you say. I can sit here
and tell you we’re running Barclays in a different way, we’re
not incentivising our colleagues in the branches to sell
products to people who don’t need them. I can tell you all
of that but until people really begin to perceive the change,
then the trust won’t start to rebuild. That’s why there’s a
lag because ?rstly we have to get the organisation to do
business differently, and that’s happening, but then people
have to perceive that we’re doing business differently,
before they give us credit for it, and then ultimately trust
will come back.
8 | Barclays PLC Citizenship Report 2013
Strategy
Building the ‘Go-To’ bank
We believe there is a real opportunity to build a
customer and client focused, socially useful bank that
generates sustainable returns to shareholders and wider
stakeholders over the long term. This is a unique chance
to build what we have described as the ‘Go-To’ bank.
Transforming Barclays and the way we do business –
becoming the ‘Go-To’ bank – will be a long, challenging
but also exciting journey. The outcome will be worth
the effort.
Barclays Strategic Review, commenced in Q4 2012, is
part of a long-term programme to transform the culture
and performance of Barclays over the next three to ?ve
years. The Transform programme is the way in which we
will deliver our strategy.
The Turnaround phase of Transform is largely complete,
with the implementation of our strategic review leading
us to exit certain lines of business and rede?ne our
Purpose, Values and Behaviours.
We are making good progress but also acknowledge
there is still much work to be done. Achieving our goal of
becoming the ‘Go-To’ bank will require us to accelerate,
collaborate and be resolute in our objectives. For more
detail on our strategy and 2013 performance, refer to the
Annual Report.
Our business
As a global bank with a diverse and integrated range of
products for individuals, businesses, institutions and
governments, Barclays can make a positive contribution
to global economic growth and development.
Our joined-up business model enables us to stay relevant
to our customers’ needs and help them to achieve their
ambitions in the right way: be it raising ?nance for a major
corporate acquisition to helping someone buy their ?rst
home. Our international scale and global expertise also
enables us to transfer innovation across regions and scale
solutions to help address social challenges; for example,
using our global ?nancing expertise to raise capital for the
South African renewable energy programme or developing
mobile banking technology to help increase access to
?nancial services.
At the heart of our strategy is the strong belief that there
can be no con?ict between good results and good values
if we are to build a successful, sustainable business over
the long-term. Along with the ?nancial services industry
as a whole, we have faced unprecedented challenges
and continue to do so. The landscape for banks has
fundamentally changed and will continue to evolve in
the coming years. We believe these changes represent
a structural shift and also create massive opportunity.
We have embraced change as a business, with 2013
marking the launch of our Goal, Purpose and Values
and the Transform programme.
Goal Purpose
Values and
Behaviours
Balanced
Scorecard
Becoming the ‘Go-To’ bank Helping people achieve their
ambitions – in the right way
• Respect
• Integrity
• Service
• Excellence
• Stewardship
• Customer and Client
• Colleague
• Citizenship
• Conduct
• Company
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Barclays PLC Citizenship Report 2013 | 9
Transform: delivering our strategy
Barclays’ sustainable success will be assured by
becoming the ‘Go-To’ bank for all our stakeholders.
If we understand their needs and priorities and put them
at the heart of our decision-making, we will be able to
build a bank which is lower-risk, more predictable and
higher-performing.
The strategic response
In 2013, we launched the Transform programme to deliver
the recommendations of the Strategic Review. Transform
is the plan that will help Barclays become the ‘Go-To’
bank. It has three overarching goals: Turnaround, Return
Acceptable Numbers, Sustain FORward Momentum.
Turnaround the business
Turnaround was the immediate task of stabilising the business
and maintaining momentum. In the second half of 2012, we
delivered our new Goal, Purpose and Values to unite Barclays
with a shared sense of direction – how we will do business.
We have put in place a new Executive team whose core
focus is focused on delivery. Our 139,600 colleagues have
all participated in workshops and training in Barclays’ values.
Return Acceptable Numbers
In 2013, we turned our attention towards the longer-term
transformation of Barclays. For our Return Acceptable
Numbers phase, we are de-risking and deleveraging the
business to make it more sustainable for the long term.
We committed to consolidate core lines of business, to
generate £1.7bn of cost savings by 2015, to improve our
Risk Weighted Assets (RWAs), funding and liquidity, and
to reach a Core Tier One capital ratio of 10.5%.
Sustain Forward Momentum
Our journey to ‘Go-To’ depends on continuing to adapt
Barclays for the future and ensuring that we do not return
to a short-term bias as we execute our plans.
The Board-commissioned Salz Review also prompted us to
review our conduct. We are committed to being open and
transparent and to regaining the trust of all of Barclays’
stakeholders. To sustain momentum we have integrated our
necessary behavioural transformation into our Transform
programme. Full details on our response to the Salz Review
can be found in the Annual Report.
A strong culture is the ?rst line of defence against repeating
the mistakes of the past. To unite around Barclays’ Values
and Behaviours, we published ‘The Barclays Way’ to govern
our way of working across our business globally. Colleagues
are essential to embedding our Purpose and Values and, in
2013, all of our colleagues attended Values and Behaviours
engagement sessions.
Reward and incentivisation is a critical enabler of
behavioural change. As of 2014, colleague performance will
be measured and rewarded not only on ‘what’ an employee
delivers but also ‘how’ they achieve their objectives. As
such, remuneration will align with Barclays’ Purpose, Values
and Behaviours as well as the Group Balanced Scorecard.
Focus of efforts in 2014
In 2014, we will continue to build on the progress made in
2013. We will stay alert to the evolving regulatory landscape
and aim to improve our regulatory and public disclosures
by engaging with our regulators and maintaining greater
overall transparency.
The new regulatory and emerging business environment
will inevitably call for continued rigorous review and
adaption of the mix and structure of the businesses of
the bank to ensure we generate sustainable returns.
However, we need to take care to ensure that regulation does
not go too far. A healthy banking sector that generates returns
above the cost of equity is essential to economic growth.
Vibrant economies need vibrant banks. It is therefore important
to ensure that the regulator focus on conduct supervision does
not inadvertently result in the withdrawal of services and the
restriction of choice for our customers.
Another key focus over 2013 and the coming year is
rebuilding the trust that customers, clients and stakeholders
have in our organisation. We have pledged to increase
transparency and conduct our business in the right way,
as set out in our Values.
Transform: delivering our strategy
The quality and commitment of the people at Barclays, combined with
our underlying ?nancial strength, means we start our transformation
from a good position. The Barclays Strategic Review, commenced in
Q4 2012, is a part of a long-term programme to transform the culture
and performance of Barclays over the next three to ?ve years.
The Transform programme is the way in which we will deliver
our strategy. With the initial ‘Turnaround’ phase complete,
we now look forward to ‘Return Acceptable Numbers’ and to
‘Sustain Forward Momentum’.
2013 2014 2015 2016 2017
0-3 years
Return Acceptable
Numbers
0-5 years
Sustain FORward
Momentum
Where we are now
0-9 months
Turnaround
Improve business returns, define and
execute the plan to deliver RoE above CoE
Become the ‘Go-To’ bank for our stakeholders –
customers and clients, colleagues, investors, and wider society
Stabilise the organisation, provide context for
the change to come, maintain short-term momentum
10 | Barclays PLC Citizenship Report 2013
Our Balanced Scorecard
Becoming the ‘Go-To’ bank for all our stakeholders
Balanced Scorecard: overview
Outcome Statements
Customer & Client
We are ‘Go-To’ for our customers and clients
Colleague
Our colleagues are fully engaged
We create a diverse and inclusive environment where colleagues can ful?ll their potential
Citizenship
We positively impact the communities in which we operate
Conduct
Our products and services are designed and distributed to meet clients’ needs
We act with integrity in everything we do
Company
We create sustainable returns above the cost of equity
We understand and effectively manage our risks, and continuously improve control
Helping people
achieve their ambitions
– in the right way
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We balance our stakeholders’ needs
across the short and long term.
Our activities drive mutually reinforcing
outcomes across stakeholders.
Balanced Scorecard
‘The Balanced Scorecard
is the ?nal crucial piece of
our plan – alongside our
Purpose and Values – to
embed the right culture in
our business and become
the ‘Go-To’ bank’.
The Balanced Scorecard sets out eight
speci?c commitments across our
5Cs (Customer & Client, Colleague,
Citizenship, Conduct and Company)
and de?nes what we need to achieve
over the next ?ve years to be well on
the way to becoming the ‘Go-To’ bank.
We are committed to monitoring and reporting on our
progress annually so that stakeholders can hold us to
account. The Balanced Scorecard is supported by strategic
initiatives that will drive progress across the 5Cs.
The Balanced Scorecard gives clear strategic context for our
colleagues around what becoming the ‘Go-To’ bank will look
like and lays out Barclays’ priorities. The Barclays Balanced
Scorecard is cascaded into business unit and function
scorecards. Together, these provide line of sight to employees
to our organisational goal. They also provide a framework and
starting point for all employees when setting their individual
performance objectives across the 5Cs.
For more detailed information on the Balanced Scorecard, please see
barclays.com/balancedscorecard
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Barclays PLC Citizenship Report 2013 | 11
Metrics and targets
We have agreed eight key measures against which we and our stakeholders can hold us to account. We are committed to monitoring and
reporting on our progress annually.
Metric Actual 2013 Target 2018
Customer & Client
RBB, Barclaycard and W&IM: Weighted average ranking
of Relationship Net Promoter Score
®a
vs. peer sets
4th 1st
CIB Client Franchise Rank: Weighted average ranking of
wallet share or customer satisfaction with priority clients
4th Top 3
Colleague
Sustained engagement of colleagues score 74% 87-91%
% women in senior leadership
b
21% 26%
Citizenship
CItizenship Plan – initiatives on track or ahead 10/11 Plan Targets
Conduct
Conduct Reputation (YouGov survey) 5.2/10 6.5/10
Company
Return on Equity (Adjusted) 4.5% > Cost of equity
Fully Loaded CRD IV CET1 ratio 9.3% >10.5%
For further information on Balanced Scorecard Methodology and Data Sources please visit barclays.com/balanced scorecard and
see the ‘Metrics and targets’ page
Delivering our strategic targets: Example Strategic initiatives
Here are some examples of strategic initiatives that will drive progress across the 5Cs and support our goal to become the ‘Go-To’ bank.
Customer & Client
We are using technology to improve our customers’ and clients’ experience and to be responsive to their
changing needs, such as through Barclays Mobile Banking, BARX, PayTag and Barclays.Net
We are making our most important customer and client interactions as simple and instant as possible –
putting power in their hands to transact when, where and how they want to
We are simplifying our products and services and improving what we offer to match customer needs with
the right service model
Colleague
We have launched our Purpose and Values, and we are embedding them into all our HR processes
including: recruitment, promotion and performance management
We are developing and training leaders through the Barclays Leadership Academy and Barclays Global
Curriculum
We are driving a consistent global diversity and inclusion plan resulting in a more visibly diverse talent pipeline
Citizenship
We are ensuring the way we do business re?ects broader societal and environmental considerations
We are contributing to growth through ?nancing, supporting businesses and ensuring our products and
services support sustainable progress
We are supporting the communities where we operate by helping ?ve million young people to develop
enterprise, employability and ?nancial skills
Conduct
We are following a rigorous and transparent framework on conduct risk reporting and management
We are using material conduct risk assessments to effectively identify, assess and manage conduct risk
We are exercising sound judgements to avoid detriment to customers, clients and counterparties or to
market integrity
Company
We are delivering the initiatives across the strategic quadrants: Invest and grow, Reposition, Transition, and Exit
We are managing costs (rightsizing, industrializing, innovating) and delivering our leverage and capital
commitments
We are improving our controls through the launch of “The Barclays Guide”, which covers how we
organise, manage and govern ourselves and includes a new risk management framework
Notes
a Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.
b Senior leadership represents the Managing Director and Director corporate grades combined, a population of over 8,000 employees. Under the Companies Act 2006 we are
also required to report on the gender breakdown of our ‘senior managers’. For this purpose, we have 988 senior managers (179 female and 809 male) who include Of?cers
of the Group, certain direct reports of the Chief Executive, heads of major business units, senior Managing Directors, and directors on the boards of subsidiary undertakings
of the Company.
12 | Barclays PLC Citizenship Report 2013
Balanced Scorecard: Citizenship
Citizenship
Citizenship is a critical part of becoming the ‘Go-to’ bank
for all our stakeholders. And, for society, it means we can
serve as an enabler for greater, inclusive prosperity for
current and future generations. This means taking into
account the needs of all our stakeholders and making
decisions which, in the long term, are positive for our
customers and clients, shareholders, colleagues and
the communities in which we operate.
The Barclays Citizenship Plan (the Plan), launched in June
2012 and updated in July 2013, is an evolving set of global
commitments organised around three areas where we
believe we can have the most impact: The way we do
business, Contributing to growth and Supporting our
communities.
Engaging with stakeholders
Establishing an on-going dialogue with key stakeholders
is an important part of our approach. We connect with
stakeholders to share information about our business and
strategy, to develop our Citizenship priorities and provide
updates on performance, as well as open doors for
collaboration and pursuit of common goals. We want to
focus on areas that are important to our stakeholders and
are strategically aligned to both our business performance
and broader social impact.
We recognise there may be stakeholders who still have
concerns about the role of banking and Barclays. Striking
a balance between the views and needs of all of our
stakeholders is a challenge and we may not always get it
right; but we are committed to listening and collaborating
with all our stakeholders and putting it right when we don’t.
In 2013 we launched a number of platforms to listen
and engage with our internal and external stakeholders.
We held structured dialogues in London, New York and
Johannesburg to better understand their concerns, gather
input on Barclays’ Citizenship strategy and performance,
and identify opportunities for further dialogue and
collaboration. Key themes from the dialogues included the
need to de?ne an ambitious vision that re?ects the scale
of the challenge and the role Barclays will play. In addition,
stakeholders are keen to see more evidence of integration
into our core business and stressed the importance of
leadership and collaboration. Further detail on stakeholder
engagement in 2013 is available in our reporting protocol
and on our website.
Looking forward
We have taken on board the challenge from stakeholders to
build our ambition longer term, and are currently developing
our strategy beyond the current 2015 Citizenship Plan.
While we have made progress, we recognise we have much
more to do and that our 2015 Plan is about foundational
activity. We recognise that to be the Go-To bank for all our
stakeholders, we must better understand the challenges
and opportunities society will face in the long term –
looking towards 2020 and beyond.
The global context…
46%
Levels of trust in ?nancial services globally, the lowest
across major industry sectors
60%
Percentage of UK business leaders who rate short-termism
as a major impediment to growth and development
29
Global Systemically Important Financial Institutions
(G-Si?’s) in 2013
$2.1-$2.5tr
Total unmet need for credit by all formal and informal
micro-SMEs in emerging markets (in 2010)
£84-£191bn
Forecast shortfall in funding required to UK SMEs (2012-
2017) to fund working capital and expansion needs
$500 bn/yr
Estimated global annual spending needed on clean
energy (to 2020) to restrict global average temperature
increase to 2°C
73.4m
Estimated number of young people out of work globally in
2013 (12.6 % or 1 in 8)
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Barclays PLC Citizenship Report 2013 | 13
While we can’t predict the future, we do know that the
world is facing a number of in?uential shifts – from
imbalanced population growth to increased pressure on
cities and natural resources to the growing gap between the
rich and poor. Addressing these issues will involve trade-offs
and require new levels of leadership and collaboration.
That is why in late 2013, we began to engage a wide range
of stakeholders with many different perspectives to better
understand the challenges society will face in 2020 and
begin to build an ambitious vision. As part of this process,
we are bringing together people to discuss the future of the
socially valued organisation – to share views, challenge and
explore underlying drivers of change, debate regional
perspectives and begin to build a collective view.
In 2014, we will continue this dialogue, report on progress
and continue to develop a bigger, bolder ambition in line
with the needs of future generations. This shift to long-term
thinking will equip our organisation to be a truly sustainable
‘Go To’ bank for all our stakeholders.
Citizenship governance
Board-level accountability
In 2013, the Board Citizenship Committee’s remit was
broadened to include reputation and operational risk and
the way we conduct our business. It was renamed the
Board Conduct, Reputation and Operational Risk Committee
and retains responsibility for oversight of our Citizenship
strategy. See the Annual Report for more information.
Executive and management oversight
Our Executive Committee is responsible for managing
the delivery of our Citizenship agenda. During 2013, we
signi?cantly enhanced our governance structure with the
expansion of the Citizenship Leadership Council (CLC),
which is comprised of senior leaders from every business
and function.
The CLC supports the Executive Committee in ful?lling their
objectives and meets monthly to monitor progress against
our strategy, oversee the development of new initiatives
and drive the integration of Citizenship in day-to-day
decision-making.
We have also signi?cantly increased activity across every
business and function, including new Steering Committees
thta have implemented speci?c business or regional
Citizenship strategies. This includes Corporate and
Investment Banking and Wealth and Investment
Management, as well as an African Leadership Council.
We have a network of experts throughout the organisation
to support, monitor and ensure the delivery of our
Citizenship objectives in speci?c areas; for example, our
Environmental Risk Management team is part of the
overall Risk function. A central Citizenship team works
collaboratively with divisional Citizenship leaders,
environmental managers, procurement professionals
and specialist commercial teams.
...and key stakeholder concerns ...shape our approach
Topics raised during our
engagement in 2013
• Conduct issues and
culture change
• Financial performance
• Capital and leverage
• Remuneration
• Customer experience
• Banking reform and
systemic risk
• Restructuring
• Transparency
• Access to lending
and ?nancing
• Tax
• Financial inclusion
• Public Policy
• Environmental and
social impacts
• Youth unemployment and
the skills gap
Barclays Citizenship Plan is focused on three key pillars
The way we do business
Ensure our decisions take account of stakeholder needs in
the short and long term
Contributing to growth
Deliver product and service solutions to help more people
and society progress in a sustainable way
Supporting our communities
Help ?ve million disadvantaged young people develop the
skills they need to ful?l their potential
14 | Barclays PLC Citizenship Report 2013
Balanced Scorecard: Citizenship
Citizenship in the Balanced Scorecard
In 2013, we embedded delivery against the Plan into the
Balanced Scorecard. We track overall performance against
11 metrics based on our 2015 Plan commitments.
We introduced three new targets in 2013: attestation to the
Barclays Way, our new code of conduct; a global stakeholder
survey; and prompt payment for our suppliers. We also
committed to a new carbon reduction target of 10% by
2015, against a 2012 baseline.
The Scorecard covers most of our Plan commitments but there
are two areas where we do not yet have appropriate metrics
and targets – transparency and reducing systemic risk. These
are compex themes that are dif?cult to measure using clear
high-level indicators. We will continue to explore options to
develop suitable metrics for these objectives in the future.
The dashboard below summarises 2013 performance
against our targets. We are on-track to deliver 10 out of
11 targets in 2013 and are making progress against our
Plan commitment Metric 2012 2013 Status Plan Target 2015
(cumulative)
The way we do business
1. Implement a global Code of
Conduct to set clear and
consistent expectations
of behaviour
‘Barclays Way’ Code
(% employees attested)
New 85% 97%
2. Ensure material business
decisions re?ect stakeholder
considerations
Citizenship Reputation
(YouGov survey)
New 4.9/10 6.5/10
3. Proactively manage the
environmental, social &
governance impacts of
our business
Global carbon emissions
(tonnes CO
2
% reduction
y-o-y)
New -5.2%p -10%
% suppliers paid on time
(45 days, by value)
New 83% 85%
4. Be market leading on
transparency – being as
open as possible about
how we do business
No suitable metrics
available
5. Minimise our broader
systemic risk to the
economy and society
No suitable metrics
available
Contributing to growth
6. Leverage our products, capital,
networks and expertise to drive
sustainable progress
New and renewed lending
to households (£bn)
£33.4bn £34bn £150bn
New and renewed lending
to SMEs (£bn)
£11.1bn £13.4bn £50bn
Assist in raising ?nancing
for businesses and
governments (£bn)
£830bn £840bn £2000bn
7. Help more businesses to
start-up and grow
Number of SMEs supported
with seminars, tools and
training
36,000 59,000 120,000
8. Improve youth employability Number of apprenticeships
at Barclays
486 667 2000
Supporting our communities
9. Deliver £250 million of
investment in community
programmes
Investment in community
(£m)
£64.5m £72m £250m
10. Help build the enterprise,
employability and ?nancial
skills of ?ve million 10 to
35 year olds
Number of 10-35 year olds
supported in building skills
1.21m 1.22m 5m
p Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 15
2012 2013 2014 2015
2015 goals. Further detail on performance is available in
the following sections of this report.
We are keen to enhance our approach to measuring
performance and adopt more innovative ways to measure
the wider outcomes and impacts of our activity.
However, we also need to strike a balance between
innovative metrics with the ability to credibly gather and
verify data. We need reliable tracking mechanisms with
robust controls.
De?nitions and reporting processes
Reporting on non-?nancial metrics does not yet have the
same rigour and standardised de?nitions that apply to
?nancial reporting.
We publish a reporting protocol, which sets out de?nitions
and assumptions for our key metrics, and outlines data
collection and veri?cation processes.
Commentary
Off-track against our full
completion target, we will aim to
improve attestation rates in 2014
85%
Employees attested to the Barclays Way
On-track against our 2018 goal
based on surveys run in 2013
4.9/10
Score based on global stakeholder survey
On-track to meet 2015 target to
reduce by 10% against a 2012
baseline
5.2%
Reduction in global carbon emissions
On-track to meet 2015 target,
currently only tracked for UK spend,
expanding global coverage
83%
Suppliers paid on time
We have increased disclosures on
key topics and will continue to
explore suitable metrics
We have developed Resolution and
Recovery Plans and will continue to
work with relevant authorities
Cumulative 2012 and 2013 performance against 2015 commitments
On-track against target, expect
increases in 2014 and 15
£33.4bn
£ billion
£150bn £34bn
On-track to meet 2015 target,
lending grew in 2013
£11.1bn
£ billion
£50bn £13.4bn
Ahead of target, total volume raised
relatively stable year-on-year
£830bn
£ billion
£2,000bn £840bn
Ahead of target due to increased
activity in Africa and the UK
36,000
Number of SMEs
120,000 59,000
On-track for meeting 2015
commitment on 2,000
apprenticeships in the UK
486
Number of apprenticeships
2,000 667
On-track, improved data quality
and inclusion of South African
donations in 2013
£64.5m
£ million
£250m £72m
On-track, improved data quality
and tracking of bene?ciaries from
key programmes
1.21m
Number of bene?ciaries
5m 1.22m
£67.4bn
£24.5bn
£1,670bn
95,000
1,153
£136.5m
2.43m
16 | Barclays PLC Citizenship Report 2013
Progress update
The way we
do business
Ensure our decisions take account
of stakeholder needs in the short
and long term
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Barclays PLC Citizenship Report 2013 | 17
Code of conduct
85%
of our employees attested to the new
Barclays Way code of conduct See page 18
Stakeholder survey
4.9/10
Barclays average score on a global
survey of over 2,000 stakeholders See page 20
Carbon emissions
5.2%
Reduction in Barclays’ global carbon
emissions year-on-year See page 22
Suppliers
83%
We paid 83% of our suppliers on-time in
2013 and aim to improve this going forward See page 22
Transparency
Public Policy
New disclosure initiative on our public
policy engagement See page 26
18 | Barclays PLC Citizenship Report 2013
The way we do business
1. We will implement a global code of conduct
Why is this important?
As a global business operating in
many jurisdictions and cultures, it is
imperative that Barclays has a clear,
accessible and well-communicated
code of conduct. This ensures that all
colleagues know and understand what
is expected of them at work beyond
their speci?c job responsibilities.
While we respect cultural differences
among our workforce, we also
require consistently high standards
of behaviour across the bank. The
code is key to achieving this, while
also giving our stakeholders an insight
into how we approach our business
every day.
Key performance measure
85%
Percentage of full-time employees attested to Barclays Way
as at end December 2013
The Barclays Way was launched in 2013, replacing a number
of existing codes with one unifying document. This is in
accordance with the Salz Review recommendation to
publish and maintain a global code of conduct, and that
all employees attest to it annually. It is much more than a
standard rule book. Building on our Purpose and Values,
it explains what we mean in terms of desired behaviours
at work and how they link to the mandatory compliance
policies and practices (those on ?nancial crime prevention,
for example).
The Barclays Way has been translated into ?ve languages
and communicated to all colleagues. It will be reviewed,
updated and re-communicated annually as part of our
colleagues’ mandatory training. Attestation rates contribute
formally to the Balanced Scorecard.
We launched the Barclays Way in October 2013 and set a
stretching target to have all our employees attest to the
code by the end of December 2013. Our target is 97%,
which re?ects full completion when taking into account
individuals who might be on maternity leave or absent for
other reasons such as illness. We achieved an attestation
rate of 85%, which was below our target. A primary cause
of this was that a substantial number of colleagues had a
shorter than planned window in which to complete the
attestation due to technical challenges in some regions.
We are committed to meeting this target in future years
and will continue to aim for full completion. As of February
2013, 94% of employees had attested to having read and
understood the code.
Ownership of the code of conduct rests with our Chairman
and the main Board. The document has introductory
messages from both Sir David Walker and CEO Antony
Jenkins, providing a direct and supportive tone from the top.
Throughout the document there is a particular focus on the
need for colleagues to speak out if they experience or see
practices they believe do not adhere to the Barclays Way.
Open and honest conversations should be held with
colleagues in team meetings that address and challenge
any behaviours, decisions or actions which may be
inappropriate and not in keeping with our Values. The
Barclays Way explains the importance of honesty and
candour, and fostering an environment where colleagues
at every level are encouraged to contribute their opinions
and concerns.
In addition, we have a formal whistleblowing policy and
process, supported by an independent advisor, should any
colleague not wish to raise the issue with Barclays directly.
This provides a con?dential line for colleagues to report
issues in good faith, without fear of repercussions.
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Barclays PLC Citizenship Report 2013 | 19
The selected mandatory policies and procedures referenced
in the Barclays Way are of key importance to global ethical
conduct. These include our: anti-money laundering,
anti-bribery and corruption; data protection and con?ict of
interest; diversity and inclusion; discipline and grievance;
health and safety; and environmental policies. Policies can
be downloaded from our website.
The Barclays Way code of conduct is different from
Conduct Risk. The code uses the term conduct in a
generic behavioural sense, while Conduct Risk has a
regulatory focus in terms of detriment to customers.
Visit: www.barclays.com/annualreport
Developing the Barclays Way
Development and launch of the Barclays Way was carried
out in consultation with a number of different stakeholder
groups. As well as gathering the views of the relevant
internal departments (for example – human resources,
legal, ?nancial crime, compliance) we sought feedback
from thought leaders such as the Institute of Business
Ethics (IBE). Dialogue with unions in the UK, Europe and
Africa was also a key part of the process. We reviewed
current perceptions of best practice and aligned content
to the Code of Professional Conduct, published by the
Chartered Banker Professional Standards Board, which
sets out the ethical and professional attitudes and
behaviours expected of bankers. Barclays subscribes
to this code and is committed to embedding its broad
principles into our business.
The Barclays Way will be subject to an on-going annual
review process. We will continue to involve stakeholders
in this process to ensure that content is refreshed and
updated appropriately. A dedicated internal email address
has been set up to receive feedback from colleagues on
the Barclays Way and ask any questions on its application.
The code is available on our website.
“Developing The Barclays Way was a vital ?rst step in the Bank’s journey
in bringing its purpose and values alive. The next stage is more important
though and challenging, which is to embed The Barclays Way with every
member of staff so it is lived day to day.”
Philippa Foster Back CBE, Director, Institute of Business Ethics
20 | Barclays PLC Citizenship Report 2013
The way we do business
2. We will ensure material business decisions re?ect
stakeholder considerations
Why is this important?
As a global business it is important
that we consider the needs of all our
stakeholders in our core business
decisions in the short and long term.
We are increasing our capacity to
engage, understand and identify
stakeholder views and develop tools
to help us consider the wider impacts
of our decisions. This is essential
to the way we do business and we
believe it will deliver greater value to
our stakeholders.
Key performance measure
4.9/10
Score based on global stakeholder survey response to
?ve questions
We need to understand the views and opinions of key
stakeholders and to evaluate broader societal impacts when
making business decisions. This will enable us to enhance
our decision-making and improve our ability to deliver
returns for all our stakeholders over time. This will require
more engagement with our stakeholders on an ongoing
basis. It also means that we need to engage on speci?c
issues even where our views may differ signi?cantly from
those of our stakeholders.
We have established planning frameworks and analytical
tools to manage our core business impacts and have
signi?cantly enhanced our approach to managing
conduct and reputational risk during 2013. Conduct risk
refers to risk of detriment caused to our customers, clients,
counterparties, or the Bank as a result of the inappropriate
execution of our business activities. Reputation risk is
the risk of damage to Barclays brand arising from any
association, action or inaction which is perceived by
stakeholders to be inappropriate or unethical. The Annual
Report has more information on how we manage
these risks.
Integration into strategy
We are embedding this approach into strategic decision-
making at all levels of the business, from our overall
strategic review process through to speci?c decisions on
products or initiatives.
The strategic review of the business in February 2013,
explicitly considered reputational risk. The focus was on
how we deliver returns, as well as on what returns may be
delivered. The analysis assessed each business against a
range of criteria, including market attractiveness, competitor
positioning, regulation, and reputational risk – which was
assessed using the lens of Barclays’ Purpose and Values.
This incorporated the earlier review of reputation risk
associated with Corporate and Investment Banking business
lines and resulted in Barclays’ exit from some businesses,
including the Structured Capital Markets tax-related
business unit. The view was that, while many tax services
provided to clients are not controversial, there were some
that relied on sophisticated and complex structures where
transactions were carried out with the primary objective of
accessing the tax bene?ts. Although this activity is legal, it
was considered incompatible with the Group’s purpose and
published Tax Principles (see page 27 for more information).
Challenges during 2013
Barclays experienced a number of events negatively
impacting our reputation in 2013, some of which arose
as a result of decisions and behaviours which occurred in
previous years. For example, with interest rate hedging
products, Barclays recognises that we have not met the
standards expected of us by our regulator and customers in
some cases concerning small and medium-sized enterprises.
Global stakeholder survey tracker
The 2013 Citizenship score is an average index score from
two surveys conducted for Barclays during 2013, among
an audience of global stakeholders (Politics, Media,
Business, NGOs and others). The surveys were carried
out across the summer period, and from October to
December, using telephone and online methods. Around
2000 respondents across key geographies completed
each survey. Aggregation across geographies is
performed using weightings based on Barclays’ income.
The citizenship index has a number of components, which
carry equal weight in the index calculation. They include
whether Barclays takes social, environmental and
stakeholder considerations into account when making
commercial decisions; whether it has high ethical and
moral standards; as well as broader areas, such as
operating transparently and contributing to the local
economy and community. Targets have been de?ned to
position Barclays as Best In Class by 2018.The surveys
were conducted by YouGov, an independent market
research agency.
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Barclays PLC Citizenship Report 2013 | 21
Barclays also took the decision to exit client relationships
in the Money Service Business (MSB) sector because of
?nancial crime and regulatory risks in the sector. Although
we consider this decision to have been necessary from a
regulatory perspective, unfortunately it has impacted on
businesses in this sector and the customers they serve.
Identifying and managing the broader social impacts
that may arise as a result of our business activity can be
challenging, especially where impacts are diffuse, dif?cult
to isolate from other factors and may be the subject of
considerable debate. In 2013, one of these issues arose from
on-going concerns raised by some stakeholders about the
potential impact on food prices of speculation in agricultural
commodities, particularly food staples such as wheat, rice,
maize (corn), soybean. We recognise that there is external
concern and are actively engaging with both internal and
external stakeholders to further develop our understanding
and approach to this complicated issue.
As a proactive measure, we have ceased trading food
staples with entities for speculative purposes as this has
been cited as a potential cause of food price in?ation. This
does not mean however that we have exited all agricultural
commodities related activities. We continue to provide risk
management products and services to food producers and
consumers and investors.
More broadly, we are supporting the growth of sustainable
commodities through our membership of the Banking
Environment Initiative, which has partnered with the
Consumer Goods Forum (CGF) to develop a ‘Soft
Commodities Compact’. This initiative explores how the
banking industry can help CGF members achieve the goal
of zero net deforestation in their supply chains by 2020.
Enhancing our decision-making
During 2013, we developed and piloted a ‘Citizenship
Lens’, a values based decision-making tool which is
being applied alongside other decision-making tools,
to help colleagues move beyond legal, regulatory
and compliance requirements, to consider broader
societal impacts and opportunities in our key
business decisions.
In applying this Lens, we will seek to ensure that we are
taking into account the interests of our customers, clients,
shareholders and communities in the decisions we make
every day.
The Lens is designed to serve as a guide in the ?rst stage
of the decision-making process in order to help facilitate a
discussion about our impact as well as the potential to
create sustainable value for wider society – in the short
and long term.
The Lens covers the following ?ve high-level questions:
1. How are we making a pro?t (directly or indirectly)?
2. How are we being transparent and clear in our
communication and dealings with customers and
stakeholders?
3. How are we creating long-term value?
4. How are we creating shared value, where win-win
occurs to Barclays, the customer and society at large?
5. Is this the right thing to do?
The Lens is being integrated into our core decision-making
processes and governance structures, including new
product approval. In 2014, we will launch training for
key colleagues involved in areas such as new product
development.
Remuneration continues to be a topic of stakeholder
concern across the industry. Determining the 2013 incentive
pool was the most dif?cult decision that our Board
Remuneration Committee had to make. We were acutely
aware of the dif?culty of presenting shareholders with an
increased pool in a year where pro?ts had fallen. The
dilemma faced by the Committee in making our 2013
incentive decisions was to protect the health of the
franchise with the aim that Barclays remains true to its
policy of paying competitively. Total compensation costs
decreased 1% to £9,616m. Total compensation costs in
the Investment Bank were broadly ?at at £4,634m (2012:
£4,667m). On a pre-risk adjusted basis, the 2013 incentive
awards of £2,492m have reduced 18% from 2012. After
making appropriate risk adjustments for conduct and
other events, total incentive awards granted increased to
£2,378m, up 10% on 2012.
As part of the Transform programme, we are driving
structural cost ef?ciencies across Barclays. In particular,
the increasing use of technology is changing the way in
which customers choose to do their banking, creating
opportunities for Barclays to offer services in new ways at
lower cost. A consequence of this is a planned reduction in
our overall levels of employment.
During 2014 we expect to remove 10-12,000 roles
globally through restructuring. We are working closely
with employee representatives to avoid compulsory
redundancies where possible and to ensure that employees
leaving Barclays are treated with respect. In the UK, we
consult with Unite where required as early as possible on
proposed redundancies. Outside the UK we consult with
recognised unions, works councils or through employee
forums. In addition, where the proposals would have a
trans-national impact, we also consult with regional
employee forums in Europe and Africa.
22 | Barclays PLC Citizenship Report 2013
The way we do business
3. We will proactively manage the environmental,
social and governance impacts of our business
Why is this important?
Businesses are expected to manage
environmental, social and governance
issues relevant to their activities,
including ethical and reputational
concerns. This includes our direct
environmental footprint, our supply
chain and our business lines.
Key performance measures
5.2%
Reduction in global carbon emissions year-on-year
(2012 5.8%) p
83%
Suppliers paid on time (New metric)
Managing our environmental impacts
Our environmental management activities are focused on
several key areas, the most crucial being the way we use
our buildings and carry out our business travel.
While carbon management remains a key priority, in 2013
1
we expanded the scope of our environmental management
programme to include water, waste and paper. We made
good progress in improving our ability to report data for
these metrics and we achieved increased coverage for paper.
Our water coverage is reported as a decrease between 2012
2
and 2013. This is primarily due to the change in the reporting
period and restatements for 2012 associated with more
accurate data now being available and exclusion of certain
Africa data. Over the next year we look to expand coverage
3
and also work towards disclosing waste information when
data becomes more robust.
In 2013 we committed to a new carbon reduction target
of 10% by 2015, against a 2012 baseline. We reduced our
carbon emissions
4 5
by 5.2%. Of this, savings from real
estate contributed the most to the overall reduction by
4.2%, primarily through savings from energy ef?ciencies
initiatives. Data centres and travel contributed 0.2% and
0.8% respectively to the overall reduction.
Key initiatives in 2013
We exceeded our in-year target for carbon reduction
through the implementation of programmes and policies
that improved our operational energy ef?ciency and
effectiveness of our business travel. Some examples are
shown below:
• We ran a global energy ef?ciency programme in our real
estate portfolio that led to carbon savings of 35,360
tCO2
e (3.5% of total reduction). The programme focused
on lighting ef?ciency projects, optimisation of heating/
cooling systems and implementation of more energy
ef?cient desktops.
• We ran key energy ef?ciency initiatives in our data centres
that led to carbon savings of 1,932 tCO
2
e (0.2% of
total reduction). These initiatives included air?ow and
variable frequency drive projects in the USA and chiller
optimisation and BMS upgrades in the UK.
• For travel, savings of 7,690 tCO
2
e (0.8% of total reduction)
were delivered through the implementation of a new global
travel policy and more robust approval processes
Scope 3:
Indirect emissions from business
travel (global flights and private
cars, rail taxis and car hire from
UK and South Africa where this
type of transport is material).
Scope 1:
Direct combustion of fuels,
and company-owned vehicles
(from UK and South Africa
only, which are most material
contributors). Scope 1 excludes
fugitive emissions.
Scope 2:
Purchased electricity and steam
for own use.
Total emissions by scope 2013
tonnes CO
2
e
49,520 180,350
732,090
0
0.2m
0.4m
0.6m
0.8m
1.0m
1.2m
2013 2012 2011
Total carbon emissions
tonnes CO
2
e
1
,
0
9
6
,
5
2
0
1
,
0
1
4
,
3
3
0
9
6
1
,
9
6
0
1
2013 Reporting Year covers Q4 2012 and Q1, 2, 3 of 2013 due to changes made to
the reporting period to meet Mandatory Carbon Reporting Regulations requirements
in the Directors Report. The carbon reporting year is not fully aligned to the ?nancial
reporting year covered in the rest of the Citizenship Report.
2
2012 Reporting Year covers January – December 2012 and is in line with the
?nancial reporting year covered in the rest of the Citizenship Report.
3
Coverage represents the proportion of property portfolio for which data is reported
4
Excludes fugitive emissions
5
The methodology used to calculate our CO2e emissions is the GHG Protocol
Corporate Accounting and Reporting Standard (revised edition), using the
operational control approach on reporting boundaries. This covers the properties
where Barclays have operational control and are ?nancially responsible for the utility
supply. Barclays also report for 3rd party sites where direct metering or billing is in
place for utilities consumed by Barclays operations.
p Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 23
Barclays offsets our carbon emissions from core banking
operations. In 2013, we continued to invest in carbon credits
from a range of projects around the world.
We also helped the South African electricity service
provider, Eskom, through an agreement to assist the
country ‘on-demand’ during hours of peak energy usage.
By using our Energy Centre in Johannesburg we are able to
reduce the potential for load-shedding and Eskom is able to
provide power to the equivalent of over 5,200 households
per year. We also offset the carbon emissions (3,000 tCO2
e)
associated with the illuminated sign in Towers Main from
our Johannesburg of?ce through the installation of a
400kWp PV plant in our Towers North building and a
water heater replacing project for our customers.
Additional Environmental and energy use data
2013 2012
2
Indicator
1
Data
Coverage
(%) Data
Coverage
(%)
Paper (tonnes) 4,224 85% 4,253 75%
Water (m
3
) 1,302,745 p 39% 1,391,901 44%
Energy (GWh) 1,461,831 p 100% 1,504,774 100%
Recognition for our performance
Our environmental performance was recognised by a
number of certi?cations and awards.
• Our Barclays properties in India, Pune 2.2 (Barclays
Technology Centre) & Pune 2.3 received Platinum
certi?cation for Leadership in Energy and Environmental
Design (LEED) and Pune 3, Noida 3 & Chennai 4 – Level 6
received Gold LEED certi?cation recognising excellence in
environmental design and performance.
• We had our UK operations recognised for carbon
reduction activity through achievement of the Carbon
Trust Standard.
• We improved accuracy of our electricity consumption
measurement in South Africa (our biggest contributor to
the global carbon footprint) through installation of smart
meters and effective bill validation process. This is an
industry leading initiative in South Africa.
Future priorities
Our carbon reduction target is aligned to our business
objectives and we have committed to a number of initiatives
that will help deliver on this objective, such as:
• Optimisation of our global property portfolio.
• Energy ef?ciency programmes in our buildings.
• Optimisation of our internal travel.
In addition to this, we will continue to enhance our
performance management and reporting systems for
water, waste and paper through more robust data
collection processes and collaboration with our suppliers.
We will also continue to engage employees in our
environmental programmes.
Managing our supply chain
Paying our suppliers on time
To maintain healthy working relationships we aim to ensure
there is no delay in paying our suppliers. We understand the
importance of cash ?ow and if, for some reason, there is a
delay in payment we aim to quickly identify the cause and
put it right immediately.
The on-time payment of suppliers was included as a metric
in the Balanced Scorecard in 2013. To facilitate paying our
suppliers on-time we introduced a consistent approach to
all payments in 2013 using the strategic Accounts Payable
solution. At the moment, we are only reporting spend
through our strategic system (circa 70% of our global total)
and we will expand global coverage going forward. In Q4
2013, we achieved 83% on-time payment by value. With
this system now in place, in 2014 we will concentrate on
educating our suppliers to help reduce the number of
mismatched invoices, as well as identify new ways of
improving our supplier payment performance.
Onsite audit update
As a business we strive to communicate openly with our
suppliers, particularly in regards to new policies and our
code of conduct. Those suppliers identi?ed as being
high-risk from both a commercial and sustainability
perspective are given contracts with speci?c ‘minimum
control requirements’ (MCR); this relates to the
management of areas such as: health and safety, diversity
and inclusion, human rights and the environment.
The Barclays Supplier Controls Assurance team rely on a
combination of self-attestation and on-site reviews to
evaluate supplier compliance with the Barclays MCR. While
we have 100% coverage through self-attestation of those
suppliers identi?ed as being high-risk from a commercial
and sustainability perspective, we aim to perform an on-site
review once every three years for all high-risk suppliers.
We have so far covered 63% of the total population.
Supplier Code of Conduct launch
Our suppliers are an extension of our business and an
integral part of helping us become the ‘Go-To’ bank for
our stakeholders and customers. In 2013 we launched our
Supplier Code of Conduct (SCoC) to ensure the highest
standards of conduct across all areas of: Environmental
Management; Human Rights; Diversity and Inclusion; and
Living the Barclays Values.
To effectively communicate the SCoC, suppliers were
directed to read the content on our newly launched vendor
portal. In 2014, we will launch an assurance programme
where suppliers will be assessed based on requirements set
out in the SCoC; this will include a combination of annual
self-certi?cation questionnaires and onsite assessments to
ensure continued focus.
1
Indicators de?nitions are covered in the Group Reporting Protocol
– Environmental Technical Disclosure
2
Restatements to 2012 data are covered in the Group Reporting Protocol
– Environmental Technical Disclosure
24 | Barclays PLC Citizenship Report 2013
The way we do business
Supplier diversity
In 2013 Barclays formally launched its supplier diversity
initiative by appointing a dedicated Global Supplier Diversity
team. With coverage in the US, UK, Asia and Africa, this
team, working within our Global Sourcing and Supplier
Management function, will lead the drive to increase spend
with diverse suppliers in these regions.
We will continue to build upon recent successes in the UK,
US and South Africa. Our partnership with business
incubator Tech Hub in Manchester, and our hosted events
such as the Barclays Open Innovation day in London and
Silicon Valley in the US, have demonstrated our ability to
tap into innovation clusters to attract ‘best-in-class’ SME
suppliers to our businesses. In South Africa, we have
partnered with the South Africa Diversity Council to
identify and contract with the right local companies.
In 2014, we will build upon our relationships with external
partnerships such as Minority Supplier Development UK
(MSDUK) that identi?es ethnic minority suppliers that may
not have had consistent access to Barclays’ supply chain.
We will also partner with other similar organisations,
representing the target underrepresented entrepreneurial
groups in the US, UK, Asia and Africa, as well as partner
with our larger suppliers to expand opportunities for
diverse suppliers.
Managing environmental and social risk
Our dedicated Environmental Risk Management team
ensures that environmental issues form part of credit risk
assessment, and that environmental risk policies are clearly
referenced in our credit sanctioning standards.
There are two broad categories of Environmental Risk
Management: Direct Risk and Indirect Risk.
Direct Risk arises when the Bank holds commercial land
as collateral. Business loans in the UK provided by the
Corporate Bank and Barclays Business, part of UK Retail
Banking, are assessed for environmental risk by our
Relationship and Credit Risk Teams, supported by Barclays
Environmental Risk Management.
Our panel of property and land valuers can use our bespoke
environmental screening product, Barclays SiteGuard, to
assess the commercial history of a piece of land and its
potential for environmental contamination, as well as the
operational implications of a site’s current or intended
commercial use. Where appropriate, cases are then referred
to Barclays Environmental Risk Management for review.
In 2013, 4,177 commercial properties were screened using
SiteGuard, with 1,348 cases referred. Lending Managers
also have access to a dedicated intranet which provides
comprehensive information and guidance on managing
environmental risk factors.
11 2
18
3
Africa
Americas
Asia-Pacific
EU
Project ?nance transactions by geography
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Barclays PLC Citizenship Report 2013 | 25
Indirect Risk can arise when environmental issues affect the
viability of our borrowing corporates; for example, when
costs are incurred to upgrade a business’ operations to
meet emerging environmental regulations. Environmental
considerations affecting our clients are wide and varied,
and can include anything from shifts in market demand to
changing supply chain pressures.
To keep track of environmental risks we have developed
a series of brie?ng notes, covering ten broad industry
headings, ranging from Oil and Gas to Waste Management.
These are available to colleagues in business development
and credit risk teams across the organisation as a reference
for environmental and social risks. In 2013, there were 236
transactions reviewed in the central team, of which 34
were subject to scrutiny against the Equator Principles due
diligence framework. During the course of the year, there
has been increasing awareness of weather-related impacts,
such as access to water, where this is a critical resource in
longer-term ?nancing.
Barclays ful?ls the requirements of the Equator Principles
by adhering to the Group Environmental and Social
Impact Assessment (ESIA) policy. These Principles are an
internationally recognised framework for environmental
and social risk due diligence in project ?nance. Barclays was
one of four banks to collaborate on developing the Principles
ahead of their launch in 2003. There are today over 70
banks worldwide that have adopted the Equator Principles.
(See www.equator-principles.com).
Our continued and active contribution to the Equator
Principles was recognised by the wider EP Association when
we were re-elected to membership of the EP Association’s
Steering Committee. We have also been a long-term
supporter of the United Nations Environment Programme
Finance Initiative, and are a member of the Global
Steering Committee and our Head of Environmental Risk
Management was elected onto the Board of the UNEP FI
Banking Commission in 2013.
Transactions screened by sector
Sector Project ?nance Other transactions
Infrastructure 1 13
Mining and metals 6 56
Oil and gas 2 26
Power (fossil fuels) 4 9
Other 0 12
Agriculture, ?sheries, forestry and
logging 0 8
Manufacturing 0 26
Chemicals and pharmaceuticals 0 5
Power (non-fossil fuels) 19 42
Utilities and waste management 2 5
Total 34 202
C
A
B
Project finance transactions by risk category
9
1
24
Notes
Category A – Projects with potential signi?cant adverse social or environmental
impacts which are diverse, irreversible or unprecedented.
Category B – Projects with potential limited adverse social or environmental
impacts that are few in number, generally site-speci?c, largely reversible and
readily addressed through mitigation measures.
Category C – Projects with minimal or no social or environmental impacts.
Credit: Wyke Farms Biogas Digester Vessel, Somerset, Richard Clothier,
MD, Wyke Farms Ltd, Colin James, Relationship Director, Barclays
26 | Barclays PLC Citizenship Report 2013
The way we do business
4. We will be market leading on transparency – being
as open as possible about how we do business
Why is this important?
We aspire to run our business in an
open and transparent manner with
consistent engagement and clear
disclosure for all our stakeholders. Our
focus includes improving transparency
for our customers and clients and the
markets we participate in, as well as
corporate transparency, including our
?nancial reporting and disclosures on
areas such as tax and public policy.
Enhanced Disclosures
Financial Reporting
The Enhanced Disclosure Taskforce (EDTF) was formed
by the Financial Stability Board with a remit to broaden
and deepen the risk disclosures of global banks. Barclays
has welcomed the recommendations made by the
EDTF and have further enhanced disclosures in our
Annual Report.
We believe that disclosures will continue to evolve in light
of ongoing engagement with the banking sector by
investors and other stakeholders. We are committed to
engaging and responding to this feedback in order to
meet the information needs of our stakeholders.
Remuneration
Barclays has increased the transparency of our
remuneration disclosures. The Annual Report includes our
remuneration policy, details on Director remuneration and
a question and answer section.
We also provide voluntary disclosures agreed with the UK
Government on levels of remuneration for our eight most
highly paid senior executive of?cers. In addition, we
provide additional remuneration disclosures (including
voluntary disclosures) about levels of remuneration of
employees in the Barclays Group and Barclays Code Staff.
See the Annual Report for more information.
Improving transparency for customers and the
markets we operate in
We are implementing a series of initiatives to enhance
transparency for our retail customers. These include
technological solutions, changes in the way we develop
product propositions through to more disclosures on our
customer service and complaint levels.
Responding to customer needs
We are determined to rebuild trust in Barclays and
demonstrate day-in day-out that we are changing, and
doing the right thing for customers. In September, we
launched Your Bank – the online platform that allows us to
continually listen, respond, anticipate and learn from our
customers in the UK. We are committed to undertaking a
formal review of our overdraft charges in 2014, with a view
to making them simpler and more transparent. We have
already started pilots with the launch of text alerts in June to
customers that have exceeded their overdraft limit, which
would traditionally incur a £22 charge. The alerts give them
a one-day grace period to add cleared funds and avoid the
charge. In the ?rst three months, over 65,000 customers
avoided charges totalling over £1.4m, a response rate of
27 per cent. We are now looking at where else we can
implement text alerts as a next step. Of course this is a
cost to us, but it’s the right thing to do.
Customer onboarding
In order to improve the ability of customers to access
their accounts as quickly and conveniently as possible, we
have improved the account opening process by sending
customers text alerts to advise them of despatch of debit
cards and PIN codes and provide immediate registration for
mobile banking. Further improvements this year mean that,
for the ?rst time, we will be able to offer customers the
choice of receiving their account opening documentation
digitally rather than in paper format. We also introduced
an online tool so that customers can view the progress of
their cases, such as mortgage applications, in real-time at
their convenience.
Visit: www.barclays.com/annualreport
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Barclays PLC Citizenship Report 2013 | 27
Complaints
In August 2013 we took the decision to commit to
publishing complaints data quarterly, twice as often as
required by the regulator, and practised by other banks.
For the second half of 2013, total complaints excluding PPI
were down 31% to 91,812 (H2 2012: 132,520, H1 2013
91,215). Complaints including PPI were down 26% to
317,041 (H2 2012 427, 334, H1 2013 381,740). Alongside
this, we published an in-depth Spotlight report on
improvements we are making to current account security,
which was welcomed by Get Safe Online as a signi?cant
contribution to helping customers understand how to keep
their details safe.
Complaints data is available on our website.
Market transparency
In 2013, Barclays con?rmed its commitment to reporting
volumes and other aggregate data in its dark pool, LX®, on
a monthly basis. Dark pools are networks where large trades
can be made without the volume or price being openly
visible to anyone until the trade is done. Dark pools protect
traders by allowing them to buy or sell without running
the risk of other traders knowing what is happening and
putting the price up, or down, to take advantage of the
order. This underscores our belief that greater transparency
not only bene?ts our customers but the industry overall.
Our Tax Principles and approach to tax planning
We recognise that a balance is required between the
needs of our different stakeholders in determining how
we manage our tax affairs. These stakeholders include
our customers and clients, the communities we serve,
employees, shareholders, governments and regulators.
Like other companies, we have a duty to manage our tax
affairs responsibly.
In articulating our Tax Principles last year, we set out to
explain our revised approach to tax planning. Over the last
12 months those Tax Principles have proved an effective
framework, enabling us to support our clients and manage
tax planning on our own account responsibly.
Our Tax Principles ensure that any tax planning must:
• support genuine commercial activity;
• comply with generally accepted custom and practice,
in addition to the law and the UK Code of Practice on
Taxation of Banks;
• be of a type that the tax authorities would expect;
• only take place with customers and clients sophisticated
enough to assess its risks; and
• be consistent with, and seen to be consistent with, our
Purpose and Values.
Should any of these principles be threatened, we will not
proceed – regardless of the commercial implications.
In delivering on those principles, we take into account
whether tax planning is aligned with, and a natural part
of, the business or activities carried out by Barclays or
our clients.
Tax in?uences decisions about how we organise and run
our business, and about where we base our operations or
hold assets. Making these decisions is an integral part of
running a commercial organisation, and when tax is a
factor in deciding where or how we do business, we ensure
there is genuine substance to the activity we conduct in
each country.
Equally, where we are aware that a client is undertaking tax
planning that requires our involvement for it to be effective,
we consider a number of factors including the purposes
of the transaction. In addition, we seek to ensure that
our clients understand the implications of, and any risks
inevitably associated with, tax arrangements, which by their
nature can be both complex and long term. These checks
are helping to ensure that our involvement in tax planning
always supports genuine commercial activity.
We are sometimes required to make decisions that affect
our tax position but have no other impact on our business
– for example, choosing to make claims or elections under
tax law, or choosing between different forms of legal entity.
Such decisions must comply with all of our Tax Principles.
In delivering on our commitment that all tax planning
must comply with generally accepted custom and practice,
and be of a type that tax authorities would expect, we
maintain transparent and constructive relationships with
tax authorities around the world. Over the last year we have
con?rmed our continuing adherence to the UK’s voluntary
Code of Practice on Taxation for Banks. In doing so, we have
reasserted our commitment to applying the spirit, as well
as the letter, of the law and to an open and transparent
relationship with HM Revenue & Customs.
Tax can be complex, particularly for a large organisation
such as Barclays with a diverse client base, and there will
always be an element of judgement in determining the right
approach. The introduction of the Tax Principles has made a
real change to the way we approach tax, and they provide a
framework for managing that complexity. They help us as
an organisation to approach tax planning in a way that is
consistent with our Purpose and Values.
Taxes paid
One measure of our contribution to society is through the
total amount of tax we pay each year on our activities. We
paid £3,374m
1
of tax in 2013 relating to our own business,
including £1,558m
2
on our income and pro?ts. To be clear,
“We welcome greater transparency from Barclays about how it tackles its
top customer complaints. This is an important way to demonstrate it is
listening to customers and acting on their concerns.
We hope this encourages all banks to raise their game on complaints
handling, and we’d like to see them all go further by publishing complaints
broken down by product and setting clear targets to reduce the
proportion of complaints upheld by the Financial Ombudsman Service.”
Richard Lloyd, Which? Executive Director
28 | Barclays PLC Citizenship Report 2013
The way we do business
this excludes tax collected on behalf of governments from
payments made to customers, clients and employees; for
example, tax on our employees’ income such as PAYE in the
UK. In 2013, Barclays collected £3,044m of taxes on behalf
of governments.
Many commentators compare the corporate income taxes
paid in a year, in a speci?c geography to the pro?t generated
in that geography as a means of testing if the tax paid is
‘fair’. However, it is not possible to make this direct link
between pro?ts and taxes paid in any given year. The tax
due on pro?ts generated within a calendar year is very often
paid across multiple years; therefore, the taxes paid in a
year do not necessarily relate to that year’s pro?ts. What’s
more, the tax law in most jurisdictions allows losses to be
carried forward to reduce future pro?ts.
5
As a result of these
and other factors, there is usually a difference between
accounting pro?ts and taxable pro?ts, and also between
the accounting tax charge and the amount of corporation
tax paid.
The tax we pay is an important measure of our contribution
to society; but for the reasons noted above, it should not be
compared to our global pro?t ?gures that we report that
are measured under international accounting standards.
The accounting tax charge, being the amount of tax
accrued under those international accounting standards,
is the appropriate tax amount to compare to global pro?t
before tax. In our case, the tax charge of £1,571m in 2013 is
the relevant amount to be compared to the pro?t generated
of £2,868m in 2013 (as shown in the 2013 Barclays PLC
Annual Report), giving an effective global tax rate of 55%.
For a large multinational group like Barclays, there are many
in?uences on the accounting tax charge which can cause it
to vary greatly relative to accounting pro?ts and result in an
unexpected effective tax rate. See the 2013 Barclays PLC
Annual Report for further detail and explanation of the
effective tax rate in 2013.
We make signi?cant tax payments in developing countries,
which are often a major contributor to the overall tax
revenue in these countries. In 2013, we paid taxes of £426m
in Africa (including corporate income tax, social security
and VAT) and through our African operations continue
to contribute to the local economies both by providing
essential banking services and as a signi?cant employer.
Tax paid in the UK
Our pro?ts are taxed at the local tax rate in the country in
which the pro?ts are earned. For example, a signi?cant
proportion of the pro?ts we earned in 2013 were from our
operations in the US and South Africa and were subject to
tax in those countries, respectively, at the local tax rates.
Notes
1. Unless otherwise stated, ‘tax paid’, refers to ‘cash’ taxes paid to governments
in a given period, as opposed to the tax ‘charge’ for that period shown in
Barclays’ accounts
2. Includes corporation tax and withholding taxes, in accordance with International
Accounting Standard 12 (IAS12). Withholding taxes comprise the tax charged
on dividends or other income received which is typically paid at the point of a
distribution of pro?ts or other income from one territory to another and forms
part of the corporate income tax charge
3. Social Security – includes employer national insurance contributions
4. Other – includes, for example, property taxes
5. Accounted for as deferred tax under IAS12
6. This arises because banks, unlike non-?nancial services companies, can only
recover a small amount of the VAT incurred on the products and services
they buy
Other
4
Corporate
income tax
Social
Security
3
VAT
Bank levy
Tax paid globally (£m)
36
1,558
421
629
730
Asia Pacific
UK
Americas
Europe
(excl. UK)
Africa &
Middle East
Tax paid by region (£m)
128
1,425 430
681
710
Other
4
Corporate
income tax
Social
Security
3
VAT
Bank levy
Tax paid in the UK (£m)
55
440
35
421
474
The charts above show the different types of taxes paid in 2013 and the
regions in which they were paid.
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Barclays PLC Citizenship Report 2013 | 29
In the UK tax system, these foreign pro?ts generally are not
subject to further tax in the UK. Therefore, the amount of
UK corporation tax we paid cannot be compared against our
overall global statutory pro?t before tax of £2,868m in 2013.
In 2013, we made a tax loss in the UK and paid £55m in
UK corporation tax. We also paid £1,370m of other taxes
to HMRC including £440m of employer’s social security
payments, principally relating to National Insurance
contributions, £474m in respect of irrecoverable VAT
6
and £421m for the bank levy charge
7
.
Activities and taxes in offshore ?nancial centres
Barclays operates under the laws of low tax jurisdictions
for valid business reasons. In many of these jurisdictions,
we have substantial businesses. For example, we operate
full-service retail and corporate banking businesses in both
Mauritius and the Seychelles. In both cases we are one of
the leading banks in the country, having operated there
for more than 50 years. Closer to the UK, we also have
operations in offshore ?nancial centres, which are based
principally in the Isle of Man, Jersey and Guernsey, where
our Wealth and Investment Management division is a
long-term major local employer.
We have also historically incorporated companies under the
laws of jurisdictions, such as the Cayman Islands, because
local company law makes it easy and cost-effective to set
up and manage companies. Virtually all of the pro?ts
generated in these companies are subject to corporate tax
at the UK corporate tax rate. The total amount of pro?t not
taxed in the UK, in respect of all our entities incorporated in
low tax jurisdictions where we do not have a substantial
business, was less than £3m in 2013. We continue to have
an objective of reducing the number of entities that we
operate in low tax jurisdictions, but recognise that many
such companies have commercial purposes consistent with
our Tax Principles. The total number of companies that are
incorporated under the laws of low tax jurisdictions has
been reduced to 205 as at the end of 2013 (from 253 in
2012). As at 31 December 2013, we had 109 companies
incorporated under the laws of the Cayman Islands (with 10
of these in liquidation). We will still continue to do business
in tax jurisdictions which support genuine commercial
activity, with clients and counterparties able to assess the
risks, and where activity complies with generally accepted
custom and practice, for example in Luxembourg, where we
conduct some of our group and client funding activities and
manage equity ?nancing operations.
We welcome constructive debate on taxation policy, as
the payment of tax is an important element of the overall
economic contribution that responsible banking can make.
We believe governments should work together to adopt a
consistent global approach on tax reporting, which
establishes disclosure requirements and thresholds that
are proportionate. Any such requirements need to remain
focused on the ultimate objectives, both for governments
and for companies: clear and consistent tax policy,
accountability, transparency, and the ?ght against
corruption.
Public policy engagement
Rationale
As a bank with a physical presence in multiple locations
we recognise that we have a responsibility to engage
with policymakers, including governments, regulators
and industry groups. We engage in dialogue on issues
where we have a legitimate interest and where public
policy directly affects our business. We aim to ensure
that any communication undertaken is honest,
comprehensive and accurate.
For example, in Great Britain we meet with Members of
Parliament locally or in Westminster, and those in England
and Wales are provided with periodic updates on ?nancial
and economic metrics relating to their constituency. At a
national level we engage with Government representatives
on a wide range of issues. Later this year, we will begin
publishing a numerical breakdown of our meetings with
UK Ministers on our website.
Also this year, as part of our new disclosure policy, we
will begin publishing a range of content online, including
executive summaries of our responses to UK and EU
governmental consultations and position papers. On
occasions where these contain commercially sensitive
information, we will make necessary redactions.
Political donations
Barclays is a politically neutral organisation. In the UK we do
not make party political contributions. Barclays Africa Group
Limited (BAGL), in which we have a majority stake, does
make political donations to the major South African political
parties as part of its Democracy Support Programme,
although these will cease in 2014.
In the United States, Barclays does not make corporate
political contributions, although does provide administrative
support to a federal Political Action Committee (PAC)
funded by voluntary contributions of eligible Barclays
employees. All contribution decisions are directed by an
independent steering committee comprised of employees.
Agencies
Barclays retains the services of public affairs agencies in a
number of locations. They are employed for the purposes of
political monitoring and strategic advice. They are not used
to make representations to governments or policy makers.
This year, information on the ?rms we retain will be made
available on our website.
Trade associations
Barclays is represented on a large number of trade
associations globally. These associations work to represent
their members and shape industry’s response to issues and
interactions with Governments. We seek to be a supportive
and in?uential member of all associations we are members
of. However, given the breadth of many associations’
memberships, there are instances where we may take a
different perspective from that of the broader industry.
A summary of the key associations we are involved in
globally will this year be made available on our website.
7. The amount of bank levy paid in the year does not equate to the accounting
charge for UK bank levy, in particular because some bank levy payments are due
after the end of the accounting period.
30 | Barclays PLC Citizenship Report 2013
The way we do business
5. We will minimise our broader systemic risk to the
economy and society
Why is this important?
We must ensure that problems at
any one individual bank never again
pose a signi?cant threat for the
entire ?nancial system. Regulatory
authorities around the world have
been introducing reforms aimed
at increasing the resilience of the
banking sector and the wider ?nancial
markets and also putting in place the
powers, tools and capabilities to allow
any institution to fail without creating
systemic repercussions for the broader
economy and ?nancial system. The
term they use for this is ‘resolution’.
The signi?cant impact of the bank failures worldwide
resulting from the ?nancial crisis clearly demonstrated
the need for a global approach to reforming the banking
system. There is still much work to be done but signi?cant
changes have already been introduced to ensure a safer and
more robust banking system.
The Financial Stability Board (FSB) has been designated
by the G20 as the body responsible for coordinating the
delivery of the global reform programme. It has focused
particularly on the risks posed by globally systemically
important ?nancial institutions (G-SIFIs). A key element of
this programme is that G-SIFIs should be capable of being
resolved without recourse to taxpayer support. Barclays has
been designated a G-SIFI by the FSB. G-SIFIs will be subject
to a number of requirements, including additional loss
absorption capacity above that required by Basel 3
standards.
Resilience
The banking sector is considerably more resilient than it was
a few years ago. Several reforms and changes in regulation
have been made to lessen the chances of bank failure.
Banks have taken signi?cant steps to strengthen their
capital ratios and increase their liquidity to weather any
?nancial storms in the future.
Resolution
Aside from mitigating risk, other reforms have been aimed
at isolating and managing the impact if a bank does fail.
A certain number of international responses have been
taken to reform banks without recourse to the taxpayer.
The Financial Services (Banking Reform) Act 2013 enhances
the legislative framework for structural reform in the UK.
Retail banking will be ring-fenced from investment banking
activity, with the ring-fenced entity meeting capital and
liquidity requirements on an independent basis. It also
introduces to the UK (ahead of similar legislation expected
in Europe) a critically important resolution tool: ‘bail-in’.
In the event that a bank needs to be resolved, there would
be an initial stabilisation period in which liabilities could be
written down or converted into equity; this is known as
‘bail-in’. It is therefore expected that in a ‘bail-in’, any losses
in excess of those borne by shareholders would be imposed
on certain classes of sophisticated creditors instead of the
bank turning to taxpayers for support.
Visit: www.barclays.com/annualreport
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Barclays PLC Citizenship Report 2013 | 31
Barclays has also been at the forefront of the industry in
developing a Recovery and Resolution Plan (RRP): step-by-
step measures to deal with ?nancial stress, or ensure an
orderly resolution in the event that the bank reached the
point of failure. We continue to work with all relevant
authorities on these plans, and the detailed practicalities
of the resolution process. This includes the provision of
information that would be required in the event of a
resolution, in order to enhance the Group’s resolvability.
We made our ?rst formal RRP submissions to the UK
and US regulators in mid-2012 and continue to work
with the relevant authorities to identify and address any
impediments to resolvability. The second US resolution
plan was submitted in October 2013 and we anticipate
annual submissions hereafter.
In the UK, the Prudential Regulatory Authority (PRA)
published its RRP rules and guidance in December 2013
(effective 1 January 2014) and recovery and resolution
planning is now considered part of continuing supervision.
Removal of barriers to resolution will be considered as part
of the PRA’s supervisory strategy for each ?rm, and the PRA
can require ?rms to make signi?cant changes in order to
enhance resolvability. These include, among others, the
powers to require a group to: make changes to its legal
or operational structures (including demanding that the
group be restructured into units which are more readily
resolvable); limit or cease speci?c existing or proposed
activities; hold a speci?ed minimum amount of liabilities
subject to write down or conversion powers under the
bail-in tool.
Consistency and coordination
Barclays has been closely involved in developing the
measures above and remains steadfast in implementing any
outstanding reforms. We look forward to receiving greater
clarity on the detail of some reforms so that implementation
can move forward.
Globally, there is consistency in objectives: all jurisdictions
share the goals of aiming to make ?nancial services more
resilient and resolvable. In the context of bank resolution,
the FSB showed helpful leadership through publication of its
Key Attributes for effective resolution regimes in November
2011, and these are in the process of being adopted across
the G20 (in Europe through the Recovery and Resolution
Directive, which is expected to be implemented in 2015).
Consistency on structural reform is still emerging across the
different jurisdictions:
• Section 165 of the Dodd-Frank Act in the US
• The Vickers / ICB Ring-fence in the UK (as part of the
Financial Services (Banking Reform) Act 2013)
• The EU Bank Structural Reform proposals (following the
Liikanen report), published in January 2014
We are optimistic that, in 2014, the banking reform agenda
will have reached a place where – implementation timelines
aside – the major objectives, as set out by the G20 nations,
will have largely been achieved.
Banks will then require clarity of detail to implement reforms
effectively and in a timely and ef?cient manner. This will
give the banking sector the structure it needs to ful?l its
responsibilities in supporting economic growth.
32 | Barclays PLC Citizenship Report 2013
Progress update
Contributing
to growth
Deliver product and service solutions to
help more people and society progress
in a sustainable way
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Barclays PLC Citizenship Report 2013 | 33
Lending to households
£34bn
New and renewed lending
to households See page 34
Lending to SMEs
£13.4bn
New and renewed lending to small
and medium sized enterprises See page 34
Financing for businesses and governments
£840bn
Assist in raising ?nancing for
businesses and governments See page 34
Supporting small businesses
59,000
SMEs supported with seminars, tools
and training See page 38
Youth employability
667
Apprentices at Barclays in the UK
See page 40
34 | Barclays PLC Citizenship Report 2013
Contributing to growth
6. We will leverage our products, capital, networks
and expertise to drive sustainable progress
Why is this important?
By supporting our customers and
clients and working in partnership
with other stakeholders we can create
an environment in which individuals,
institutions and governments are able
to invest in sustainable progress and
enable growth.
To achieve long-term sustainable economic growth, a
number of policy challenges must ?rst be addressed,
including: raising employment, improving access to housing
and supporting families in planning for their futures. All of
these goals rely on access to appropriate and responsible
?nance.
In addition, new solutions to help tackle social and
environmental challenges also need access to appropriate
?nancing to help innovate, develop, commercialise and
scale deployment.
Supporting households and businesses
We are on-track against our Citizenship Plan commitments
to deliver £150bn of new and renewed lending to
households and £50bn to SMEs by the end of 2015.
More broadly, we continue to be a major provider of
personal and housing ?nance and have helped deliver
the UK Government’s policies to improve the lending
environment. We delivered £1.4bn of net new lending in
Q4 2013 under the Funding for Lending Scheme (FLS),
with a total of £8.1bn in net new lending delivered since
the scheme’s inception. We provided £88bn of FLS-eligible
gross new lending to UK households and businesses
in 2013.
Barclays’ Cashback for Business scheme offered to pass on
the funding bene?ts of the FLS to our customers. During
2013, we provided £1.7bn in lending with a total cashback
of nearly £36m. We held a number of meetings between
credit of?cers and SME clients, which were supported by
nearly 63,000 hours of training delivered to 3,000
colleagues to build con?dence on lending.
In October 2013, we were the ?rst bank to offer business
customers ‘pre-approved’ overdraft facilities and loans.
This service helps businesses to manage cash-?ow issues,
largely seen as one of the main catalysts behind the
closure of small businesses in the UK. We know that small
businesses face a number of challenges, including access
to ?nance, managing late payments, and understanding
regulatory obligations.
The FLS, and the wider interest rate environment, has
supported the personal lending and mortgage markets
with lower borrowing costs for customers. We welcome
this support but believe it must be matched with reforms
to the supply of housing across the country.
We listened to the problems faced by ?rst-time buyers and
launched the Family Springboard Mortgage in January 2013.
As an inter-generational mortgage, it lets relatives use their
savings to help family members make that important ?rst
step on the property ladder. We have also offered some of
our lowest ever ?xed rate mortgages to pass on the bene?ts
of current low interest rates to customers.
Key performance measures
£34bn
New and renewed lending to households (2012: £33.4bn)
£13.4bn
New and renewed lending to SMEs (2012: £11.1bn)
£840bn
Assist in raising ?nancing for businesses and governments
(2012: £830bn)
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Barclays PLC Citizenship Report 2013 | 35
We also joined the UK Government-backed Help to Buy
mortgage schemes to help customers get onto, or move
up, the housing ladder. The ?rst part of Help to Buy is an
equity loan scheme which went live in April 2013; it allows
customers in England with smaller deposits to buy a
new-build property with the assistance of an equity loan
from the government. Since then, Barclays has also been
the ?rst to join similar equity loan schemes that have
been launched by the respective governments in Scotland
and Wales.
From January 2014, we have offered products under the
mortgage guarantee side of Help to Buy, allowing ?rst-time
buyers and home movers, who are unable to raise the larger
deposits needed, to purchase a new-build or an existing
property across the whole of the UK.
Another positive trend this year has been the increased
transparency in the lending markets. Barclays is part of a
wider industry project to share data on lending activity by
postcode. This project, focusing on SME lending, mortgages
and personal ?nance, has carefully balanced the importance
of protecting individual customers’ data with offering an
overview of where ?nance is most used.
We are increasingly optimistic about the next few years in
the economy. We will continue to contribute to economic
growth and work hard to offer responsible lending,
innovative services and skills support to help our customers
achieve their ambitions.
Increasing access to ?nancial services
We are committed to increasing access to ?nancial services
in our core markets in Africa and the UK. In Africa, we
implemented a branchless banking model to expand access
and pioneered remote account opening and servicing. In
2013 we continued to innovate towards an ef?cient and
affordable banking experience which is comprehensive
and easy to understand for low-income individuals,
micro-enterprises and those who have limited or no access
to formal ?nancial services. We look to deliver an inclusive
offering through our existing banking channels. Our in-store
banking service at over 1,000 merchant partner sites allows
customers to deposit and withdraw money, check balances,
obtain mini-statements and buy pre-paid airtime.
Developing innovative products
Barclaycard Ring
Ring is the ?rst ‘crowdsourced’ credit card based on a
simple, transparent and fair business model. With a
low APR and ?nancial stats published monthly for the
community, it’s a product that empowers cardmembers to
participate in the community, learn about ?nancial health,
submit and vote on new ideas, get involved in charity
campaigns and share in the product’s success through
the Giveback programme.
Creating new products for sustainable investors
Barclays and analysis ?rm MSCI Inc. have launched a
global family of Environmental, Social and Governance
(ESG) Fixed Income Indices – the ?rst of its kind. The
indices are designed to serve as benchmarks for the
growing number of bond investors who want to buy debt
from companies and governments that are seen to be
environmentally and socially responsible.The indices will
?ll a critical gap in the market by providing investors
who have ESG commitments, such as United Nations
Principles for Responsible Investing signatories, with a
comprehensive series of performance benchmarks.
Ethical fund for charities
In 2013, we launched a Charity Fund designed for UK
charities. The Fund accesses some of the world’s leading
investment managers and has an ethical investment
strategy; for example, it does not have direct exposure to
companies that generate more than a small proportion
of their turnover from tobacco, arms, pornography and
gambling. Aimed at long-term investors, with a time
horizon of ten years plus, the Fund seeks to provide a
sustainable level of income, together with the prospect of
growth in both capital and income through investment in
a diversi?ed portfolio of assets.
36 | Barclays PLC Citizenship Report 2013
Contributing to growth
We developed the Barclays Motshelo account in 2012. This
product was developed for informal and household savers
and recognises group savings as an easier savings option
towards achievement of a common goal. The account has
been very popular, registering more than 1500 accounts
(15,000 customers).
We are also partnering with other stakeholders on a Charter
for Financial Inclusion. Please see the Banking on Change
case study on page 45 for more information.
In the UK, we offer the Barclays Cash Card Account as a
basic bank account. We have been working closely with
government and consumer stakeholders to agree minimum
standards for basic bank accounts, such as: customers to
manage their account online, in branch or over the phone;
set up direct debits and standing orders; have full LINK ATM
access; and have a debit card.
We also support the community ?nance sector to grow
and become more sustainable; for example, by providing
more affordable loans in communities where there is a
strong reliance on illegal loan sharks and high cost credit.
The Barclays Community Finance Fund has awarded
funding of up to £50,000 each to 26 projects since 2010,
helping increase the capacity of existing community ?nance
providers to provide more products and services to reach a
larger number of vulnerable people.
In order to improve accessibility, we are working with
organisations such as Royal National Institute for the Blind,
Action on Hearing Loss and Alzheimers Society to get
insight into the needs of the groups they represent and
to test our ideas. The Business Disability Forum named
Barclays best service provider and overall winner of the
Disability Standard 2013. We were the ?rst bank to
commit to accessible ATMs for blind and visually
impaired customers.
Raising capital for businesses and governments
We provide ?nancing, risk management and advisory
services to help corporate clients create jobs and grow their
businesses, institutional clients to meet the investment
needs of an ageing population, and governmental clients
to fund public services and infrastructure.
We raised over £840bn in ?nancing for businesses and
governments in 2013, including £240bn for governments
and public sector entities.
Banks play a key role in enabling the ?ow of capital towards
environmentally or socially bene?cial activity. A range of
business lines across our ?rm are actively involved in
delivering solutions across product groups, geographies
and industry sectors.
Financing social projects
The Public Sector Group raises capital for governments,
supranationals, development banks and other public sector
entities to provide solutions to governance, social and
environmental issues, among others. The team ?nanced
over US$230bn in 2013, including US$6bn via a two- and
seven-year dual tranche benchmark for the World Bank,
€3bn 20-year benchmark bond issuance for the European
Investment Bank and £5bn 55-year In?ation Linked bond for
the UK Debt Management Of?ce.
Our US Public Finance team provides essential ?nancing
to higher education, infrastructure, healthcare, housing
and public power issuers. In 2013, the team ?nanced over
US$12.5bn, including a landmark US$2.5bn bond offering
for the University of California and a US$2.3bn bond
offering for Foothill/Eastern Transportation Corridor Agency.
Barclays’ securitisation team acted as Structuring Advisor in
a ?rst-of-its-kind, credit-rated US$152m bond securitisation
for Social Finance Inc. (SoFi). SoFi is a peer-to-peer lender
that re?nances loans for graduates of approximately 100
of the most prestigious colleges and universities in the
United States.
A growing number of one-person households means that
the demand for social housing continues to outstrip supply
in the UK. Barclays is committed to supporting the sector
and helped arrange £639mr of bond ?nancing for social
housing providers in the UK in 2013.
Financing environmental and clean energy projects
In 2013, we helped direct £4bnr of ?nancing in the clean
energy and clean technology sectors globally. We delivered
landmark transactions that will build the future ?nancing
landscape, including diversifying the investor base and
improving access to the bond markets for ?nancing clean
energy projects. For example, Barclays acted as joint book
runner on a landmark US$1bn senior secured notes offering
in June 2013 for Solar Star Funding, the largest ever
single-tranche renewable energy project ?nancing in history.
We also helped a number of other ?rms issue debt,
including a US$613m senior secured notes offering for
Continental Wind, an owner of several wind generation
projects in the US, and a US$319m senior secured notes
offering for CSOLAR IV South, LLC.
We were also active in helping list clean energy and clean
technology companies on the public markets. This included
the £244m initial public offering (IPO) for In?nis Energy,
a leading independent renewable energy generator in
the UK and the £252m IPO for Greencoat UK Wind, an
infrastructure investment fund managing a portfolio of
onshore and offshore wind farms in the UK. This transaction
represented the largest ever UK IPO in the renewable
energy sector.
r Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 37
Social Innovation Facility
The Barclays Social innovation Facility, launched in
2012 with a £25m commitment, exists to accelerate the
development of commercial solutions that directly
address social challenges. Uncovering, developing and
scaling these solutions often requires challenging the
way we think about our business models, investing in
new technology or testing new, often unconventional
partnerships and distribution channels.
The Social Innovation Facility has currently committed
over £9m to support the development of new propositions
across seven countries, representing the full spectrum
of business areas. The current portfolio of 12 projects
is developing and testing market based solutions
that address a range of social challenges, working in
collaboration with clients, NGOs and other stakeholders.
Affordable healthcare in Africa
Barclays and GSK are investing up to £7m over three years
to help remove ?nancial barriers to healthcare access,
while supporting small business development and job
creation in Zambia. By combining our skills, expertise and
resources, we hope to tackle the challenges of last mile
delivery and create a model that could be scaled across
Africa to help more people access affordable healthcare.
Access to education in the United States
Insuf?cient planning and saving for college presents a
signi?cant barrier for many students, particularly those
from low-income households. In response, Barclaycard US
is collaborating with public and private partners to help
students access college resources, connect with mentors
and advisors, and establish a college savings account.
Extending access to basic ?nancial services
Barclays in Uganda has partnered with non-pro?t
organisations Grameen Foundation and CARE
International to create innovative technologies and
mobile phone-based ?nancial products that are relevant
and accessible for disadvantaged communities.
Using in-depth research and on-the-ground testing,
the partnership leverages the expertise of the Grameen
Foundation Application Laboratory, to develop mobile
applications that help connect the informal community
?nance groups to the mainstream ?nancial sector
through commercially viable and scalable propositions.
Our Corporate Bank provides a range of ?nancing facilities
for clients active in the sector. Transactions in 2013 included
loan facilities to help ?nance a number of solar PV parks
based in England and a 22.5 MW wind project in South
West Wales.
Working in partnership with our Social Innovation Facility
(see case study), the Corporate Bank also provided a £1m
loan to Azuri Technologies, a UK-based company that
distributes pay-as-you-go solar power units in sub-Saharan
Africa, helping to transform the lives of thousands of people
in rural areas. Azuri has combined solar and mobile phone
technologies, enabling users in off-grid markets to avoid
unaffordable upfront costs and, instead, pay for their solar
electricity as they use it.
As the African clean energy revolution gathers pace,
we have worked with project sponsors, investors and
government agencies and provided 5 billion Rand (£328m)
of debt funding for four projects announced in the
South African government’s renewable energy
procurement process.
Social
Need
Corporate
Assets and
Expertise
Business
Opportunities
Social
Innovation
Opportunities
38 | Barclays PLC Citizenship Report 2013
Contributing to growth
Key performance measures
59,000
SMEs supported with seminars / tools and training
(2012: 36,000)
Why is this important?
Small and medium enterprises
(SMEs) are vital to the economy.
By helping these businesses to start
up and grow, we can contribute
to wider prosperity. We will work
to better understand the needs
of start-up and small businesses
that we serve and support them
with access to markets, suppliers
and expertise.
7. We will help more businesses to start up and grow
As a major bank we are committed to identifying and
nurturing the highest potential businesses, those most
able to deliver growth and jobs, while still ensuring the
wider SME community has the support they need to grow
and prosper.
Patient capital
We are working with the Government to identify ways of
enhancing the UK’s risk ?nance sector, to create a world-
leading environment for funding innovation and start-ups.
We believe that traditional bank lending will be improved
by proper equity support for these companies.
Exporting
Barclays’ research suggests the average business must
begin exporting after four years in order to achieve
signi?cant growth; this is largely a result of over-saturated
domestic markets and could be a catalyst for the stall in
business growth in the UK. We have created a range of
support and ?nance products to help companies gain a
foothold in overseas markets and begin their journey as
an exporter.
Products to help small businesses
Over 120,000r start-up businesses began a banking
relationship with Barclays in 2013, up from 112,000 in 2012.
In addition, Barclaycard launched an initiative to help
smaller businesses and start-ups access payment solutions
in the UK. This is a simple, commitment-free proposition
that enables small businesses to trial the solution and
return it free of charge within the ?rst six months should it
not work for their business. By designing the service around
small business needs, we have seen strong results, with the
conversion of interested businesses to customers more
than doubling.
Supporting SMEs with seminars and training
In order to help businesses gain con?dence we have
provided more than 59,000 people with business advice
and support through seminars, tools, clinics and workshops.
This consisted of over 24,000 people in the UK and more
than 25,000 attendees at small business support seminars,
trainings and workshops in South Africa. Additionally, over
20,000 SMEs are registered on our Procurement Portal in
South Africa, which is designed to make SMEs visible to
corporate buyers. Corporates can search for speci?c
suppliers in a particular region, of a certain pro?le and
with a particular capacity. The Procurement Portal also
encourages corporates to buy more services and products
from SMEs, facilitates ?nancial independence and offers
a range of non-traditional funding solutions.
Building alternative ?nancing options for
high-growth ?rms
We believe that long-term risk ?nance outside the
traditional banking sector, such as equity, is fundamentally
r Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 39
important to supporting high-growth businesses. We are
working with the government and wider industry to identify
ways of growing alternative sources of ?nance, and
establish a funding environment as diverse as the growth
businesses it supports.
In 2013, we helped Cambridge Innovation Capital (CIC)
raise £50m through an equity private placement in the UK.
CIC will support the growth of innovative businesses based
in the Cambridge Cluster by investing long-term equity
?nance to help companies bridge the critical middle stage
of commercial development, the so-called ‘valley of death’.
Barclays also has around £600m of existing investments
designed to support growth companies in the UK. This
includes Business Growth Fund (BGF), which invests
long-term capital in growing SMEs; our £50m investment
in Big Society Capital, which is helping build the social
investment sector; and smaller investments in a range of
Regional Venture Capital Funds.
We are also collaborating to increase insight about the
SME sector. The Barclays and BGF Entrepreneurs Index
analyses a number of data sets to provide a snapshot of
entrepreneurial activity in the UK - from start-up, through
growth, to the point of liquidity where wealth is created.
Results showed that the number of start-ups and high-
growth companies has climbed in the past year in the UK.
Supporting social enterprise
Barclaycard has been working in partnership with Leaders in
Community (LIC) for almost two years, providing a range of
support activities, including business planning, marketing
and board restructure to name a few. LIC have set up a
commercial and social enterprise consulting arm, with the
purpose of employing the young people they train through
the charity. They also offer community based services to
housing associations and other government departments
based on their experience of working with young people.
Since work began, the team has created a self-funding
mechanism for the business and now understand what
they need to recover each year to break even. We have
also developed a pricing model to help them eliminate
the risks of undertaking projects at a loss and outlined a
structure for their bid proposals to increase the chances
of winning tenders.
Supporting the next generation
of technology start-ups
Barclays has established a hands-on partnership right in
the heart of London’s Tech City. As the ?rst ?nancial
services organisation to support this start-up eco-system
– the partnership is de?ned by its long-term commitment
through a ?ve year collaboration with Central Working.
This provides a club tailored to the needs of start-ups
and inbound overseas businesses. In addition to
infrastructure and support, the businesses have access
to the knowledge and expertise of Barclays’ employees
and to business banking advice. The aim is to support
innovative start-ups by providing a collaborative working
environment to support rapid business growth.
In the ?rst year of the partnership, nearly 300 new
businesses have joined Central Working and 230 new
jobs have been created with member companies
demonstrating economic growth. A series of events have
been led by Barclays, including free seminars on a range of
business topics and a ‘hackathon’ to develop innovative
technological tools that support accessibility requirements.
Through the partnership, Barclays has also procured
young, innovative small businesses into its own supply
chain, furthering its commitment to supplier diversity.
James Lay?eld, Co-Founder of Central Working, said:
“We have been incredibly impressed at just how true a
partnership we have with Barclays. The most powerful
part has been the openness of the relationship, we really
are a partner to Barclays. That such a vast organisation
can work so collaboratively with an SME, Central Working,
is testament to something very special happening inside
that bank.”
Visit: www.barclays.com/annualreport
“Our partnership with Barclays has not only enabled us to expand but it
has also enabled us to help hundreds of other SME businesses to thrive
and grow in the last year”
James Lay?eld, Co-Founder of Central Working
40 | Barclays PLC Citizenship Report 2013
Contributing to growth
Key performance measure
667
apprentices
1
at Barclays in the UK (2012: 486)
Why is this important?
Youth unemployment has become a
global issue. In the UK alone, those not
in employment, education or training
(known by the acronym NEET) is at a
record high. As a global employer, we
can help equip young people for the
workplace and give them the skills
they need to succeed. We can achieve
this by offering opportunities at
Barclays and working with partners to
support wider employability initiatives.
8. We will improve youth employability
Apprenticeship programme
Barclays currently delivers an industry leading
Apprenticeship programme.
1
The programme extends
across our UK operations and aims to support the most
disadvantaged young people into work. Having already
surpassed our goal to deliver 1,000 apprenticeships by
2013, we now aim to deliver a further 1,000 apprenticeships
by 2015, and launch the programme across the UK to
include specialist roles such as Digital, HR and Marketing.
The ‘Grow with Barclays’ framework builds on this success
by providing a clear development journey for apprentices,
while opening up structured learning opportunities for
existing colleagues early in their careers. Grow with Barclays
will provide continued training and support for early career
development with recognised professional quali?cations
and lead onto other existing Barclays programmes, such
as the Future Leader Development Programme (FLDP).
LifeSkills programme
LifeSkills is our free, curriculum-linked education
programme launched in March 2013. A growing consortium
of schools, students and businesses are collaborating to
give young people the employability skills and opportunities
to realise their full potential.
LifeSkills is divided into three modules – People Skills,
Work Skills and Money Skills – taught both in school and
online. Work experience is also an important part of the
programme. Students between 14-17 who complete
LifeSkills in school or who earn points online are eligible
for work experience opportunities at Barclays and other
participating businesses in the UK.
As part of the LifeSkills programme, Barclays is also
partnering with the British Hospitality Association (BHA),
to support its goal of creating 60,000 new jobs in the
sector by 2015. Together we will use our collective power
to help young people get ready for work, and ?nd quality
apprenticeships and job opportunities.
Since May 2013 the programme has been taught to over
250,000 young people. Thousands of teachers and
hundreds of organisations have signed up and the feedback
so far has been extremely positive. We are currently working
with The Work Foundation to thoroughly measure the
impact of the programme and pinpoint areas for growth
and further development.
1. This includes all participants to our early careers programmes (apprentices and
trainees) where the goal is to support youth employment in the markets in which
we operate and providing skills, access and career paths for young people who may
previously have been excluded from the workplace.
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Barclays PLC Citizenship Report 2013 | 41
AFTER programme
Now in its third year, The Barclays Armed Forces Transition
Employment and Resettlement (AFTER) programme aims
to help Military Service Personnel transition into civilian
employment upon medical discharge or retirement. The
programme was set up as a partnership with the MoD and
four service charities: ABF – the soldiers charity; Help for
Heroes; Parachute Regiment Afghanistan Trust; and The
Royal British Legion. By the end of 2013, the programme
had supported 1,864 service personnel.
Barclays has invested £1m in education and vocational
courses and pledged to raise a further £1m through
colleague fundraising by the end of 2014. Our Money Skills
programme held 39 workshops for 390 injured personnel.
Skills Bank, delivered by Barclays volunteers, bene?tted
a further 100 injured personnel with a two day CV and
interview skills workshop.
Beyond the skills training and investment, we are
committed to helping military personnel transition into
civilian employment by offering work experience and
hiring the most dedicated candidates. There were 76
military personnel placed or hired in 2013. In November,
we launched a pilot military work placement scheme
and are now actively seeking early service leavers for
apprenticeships and degree programmes, with 200
applications received so far.
“I found the CV workshop very useful, the Barclays Team helped me a lot
and I feel more con?dent now creating a CV and writing a covering letter”
Feedback from a student at Duston School, Northampton
Jane Forster
Apprentice
“ Barclays treats us all really fairly and I would
de?nitely be looking to progress in the future!”
The opportunity of an apprenticeship became available
within our branch networks at the Durham Branch in the
North of England.
Jane is visually impaired and chose to apply to Barclays
directly rather than through any charity she had
previously worked with.
The Early Careers Team Operational Specialist for the
region, the Reasonable Adjustments team, and Solutions
Trainers worked closely with the business area to discuss
practical aspects of the day to day procedures of the
banking hall, such as keeping access routes clear, and
remembering to inform Jane if things had been moved.
Reasonable adjustments such as electronic magnifying
glasses and computer systems screens were amended
to assist Jane as much as possible in her day to day
business. AXA continue to be informed throughout to
ensure that all of Jane’s needs are met throughout her
career and that we keep up to date on any changes in
Jane’s disability.
Both the assessment and on-boarding was aligned
as closely as possible to our standard process.
Arrangements were made to ensure that Jane had
easy access to the interview room and that she was
fully assisted within the building throughout. For the
on-boarding, all ‘Welcome to Barclays’ documents and
training material were enlarged to ensure that Jane
could see them using her electric magnifying glass.
Visit: www.barclays.com/annualreport
LifeSkills
External Advisory Council
The success of LifeSkills depends to a large extent on
how well the programme is able to unite different
stakeholder groups. To ensure that the programme is
both informed and led by the needs of these groups,
the LifeSkills Advisory Council was created. Meeting
bi-annually, the Council brings together key in?uencers
in education and business to identify and examine
the issues young people face when moving from
education into employment, and crucially, to make
recommendations for improvements within the LifeSkills
programme and beyond. A broad range of viewpoints
leads to effective discussions on the best way to develop
and deliver activity. The Council has met twice since the
programme’s launch. Representatives from the CBI, FSB,
Education and Employers Taskforce and the Association
of Teachers and Lecturers sit alongside businesses such
as McDonald’s and Centrica and charities Transformation
Trust and Free The Children.
Key Council recommendations that have been delivered
so far, include; the programme providing external
recognition for young people participating in LifeSkills
through a City & Guilds endorsement; the extension of
the programme to FE colleges; and the development of
materials to promote the work of participating schools
and businesses in Barclays branches, which will be
delivered later in 2014.
42 | Barclays PLC Citizenship Report 2013
Progress update
Supporting
our communities
Helping ?ve million disadvantaged
young people to develop the enterprise,
employability and ?nancial skills they
need to ful?l their potential
Credit: Jon Spaull/Banking on Change
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Barclays PLC Citizenship Report 2013 | 43
Investment in the community
£72m
Invested in our communities around the world
See page 44
Bene?ciaries
1.22m
10 to 35 year olds reached through our programmes
See page 44
Employee participation
49%
Employees involved in Barclays’ volunteering, fundraising and
giving activity with Barclays’ support See page 44
Volunteer hours
447,000
Hours employees have volunteered in Barclays’ community
programmes See page 44
Fundraising and giving
£35m
Donated to charities through Barclays’ matched fundraising and
giving programmes (this includes both the funds raised and
donated by employees as well as Barclays’ matching contribution)
See page 44
44 | Barclays PLC Citizenship Report 2013
Supporting our communities
9 &10. We will help build the enterprise,
employability and ?nancial skills of
?ve million disadvantaged young people
Key performance measure
£72m
Invested in our communities (2012: £64.5m)
As part of our 5 Million Young Futures ambition we are
working alongside leading charity and NGO partners to help
disadvantaged young people develop the skills they need to
ful?l their potential. We have committed to invest £250m by
2015 and encourage colleagues to volunteer their time and
skills. Since 2012, 2.43million young people have bene?tted
from our programmes and we have invested £136.5m.
Our community programmes fall into three categories:
• Enterprise skills: Equipping young people with the
knowledge and support to set up their own business
or income-generating activity
• Employability skills: Teaching young people valuable
work skills to enhance their future job prospects through
job training, literacy and numeracy programmes
• Financial skills: Helping young people to manage
their money more effectively and make sound
?nancial decisions
The direct efforts of our employees ensure that the positive
impact of our community investment goes beyond our
?nancial contribution. In 2013, more than 70,000 colleagues
around the world invested their time, skills or money to help
our communities.
Thousands of employees also unite every year during our
annual volunteering campaign ‘Make a Difference Day’.
This year colleagues at all levels from around the world
took part in many ways, sharing their skills and knowledge.
Activities included reviewing CVs, running mock interviews
and advising young entrepreneurs.
Employee participation in community programmes 2013
Total of unique employees participating in Barclays’
volunteering, fundraising or giving programmes 71,000
Total number of volunteering hours 447,000
Total amount raised through fundraising and giving £35m
Total number of events receiving matched fundraising 21,000
Why is this important?
Almost 75 million young people
around the world were estimated
to be out of work in 2013 (one in
eight). With a global network of
approximately 140,000 employees in
50 countries, we can play an active
role in addressing the needs and
challenges of the communities we
serve. We are helping to build the
enterprise, employability and ?nancial
skills of ?ve million disadvantaged
young people.
Invested in our communities
%
83
7
10
Volunteer time contribution Cash Management costs
1.22m
10-to-35 year olds reached through our programmes
(2012: 1.21m)
2013 highlights
221,000 supported in receiving enterprise skills training
77,000 received employment skills or job training
9,000 secured work placements or internships
235,000 helped with literacy and / or numeracy support
893,000 receiving ?nancial skills support
20,000 started a business or income generating activity
6,400 achieved employment
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Barclays PLC Citizenship Report 2013 | 45
Banking on Change
Enterprise and Financial skills
Banking on Change, a Clinton Global Initiative
Commitment made by Barclays, Care International UK
and Plan UK, gives people in some of the poorest
communities the skills to take control of their ?nancial
future. Through informal savings groups, they can manage
their money effectively, increase their assets and invest
in their own small businesses, as well as afford better
access to education and healthcare. More than 50,000
young people have received ?nancial skills training since
the launch of phase two of the programme in 2013.
Following an investment of £10m between 2009 and 2012,
Barclays has pledged a further £10m between 2013 and
2015. The programme operates in Egypt, Ghana, India,
Kenya, Tanzania, Uganda and Zambia and aims to link
5,000 groups to formal banking services by 2015.
Former US President Bill Clinton visited a village savings
group in Tanzania and saw ?rst-hand how members had
bene?ted from Banking on Change. In addition to gaining
?nancial skills, many community members took part in
small business training, giving them skills and knowledge
to establish and sustain their own micro-enterprises.
Photo credit: Max Orenstein / Clinton Foundation
Zainabu’s story
Banking on Change helped Zainabu Rashid, 22, save
up enough money to rent her hair salon in Tanzania.
Through the savings group, she was able to take out
a loan and buy the equipment she needed. She said:
“I’d always dreamt that I would have my own salon
and even my own chain of two, three or four and
employ other people to work in them. Now I believe
that could be possible. I feel that I am now the mistress
of my own destiny.”
Global
TechnoServe, South Africa
Enterprise skills
Barclays has invested more than £330,000 in TechnoServe
since 2012. The partnership works with enterprising
people to promote the growth of South Africa’s SME
sector through agri-enterprise programmes. In addition
to providing technical and enterprise training, it creates
tangible business opportunities for farmers and other
entrepreneurs, linking them to ?nance and markets.
TechnoServe is currently working with 100 agri-enterprises
with the aim of creating 300 sustainable jobs. Barclays’
employees also provide mentoring support to the farmers,
with a particular focus on strategic and ?nancial planning.
Africa
Ephraim’s story
With just ten hectares of land and no access to funding or
advice, Ephraim Tsatsi struggled as a self-suf?cient farmer.
He began working with TechnoServe in March 2012 and
quickly received advice to help run his business more
ef?ciently. “The commitment of the advisors has really
helped motivate me and the AgriPlanner training also
contributed a lot in terms of improving my skills in farming.
I employ people from my community and they also buy
vegetables from the project. This project will bene?t me
with marketing of the produce we grow, production
support from Absa and technical and business support
from the TechnoServe programme. I can only see myself
growing from this.”
46 | Barclays PLC Citizenship Report 2013
Supporting our communities
Endeavor
Enterprise skills
Endeavor works with entrepreneurs in growth and
emerging markets to build a vital support network to help
their businesses succeed. It has already helped nearly
1,000 entrepreneurs create approximately 225,000
high-wage jobs. It plans to add at least 1% to the Gross
Domestic Product in every country where it has a presence.
Barclays has invested £1.2m in Endeavor since the
partnership began in 2010. Senior leaders across the
organisation have selected candidates to become
Endeavor Entrepreneurs at selection panels throughout
the year. They also serve as mentors and speak at various
Endeavor summits and events.
Bedriye’s story
Bedriye Hülya, who was selected as an Endeavor
Entrepreneur in 2009, established the country’s ?rst
chain of female-only gyms. She has steadily grown
the business – franchising exclusively to other women
– creating over 200 gyms. Joe Gold, Barclays Managing
Director, held a mentoring session with Bedriye at
Endeavor’s Global Acceleration Panel in 2012. Joe
advised her on business strategies including leasing
the equipment instead of purchasing it to free up
capital. Taking this advice Bedriye was able to add
40 new gyms to her franchise. She was named
Schwab Social Entrepreneur of the Year in 2013.
Asian Women’s Welfare
Association (AWWA), Singapore
Employability and Financial skills
Since 2012, Barclays has invested over £120,000 in Asian
Women’s Welfare Association (AWWA) EXCELerate
Services. The programme aims to equip disadvantaged
young adults with vocational education and training.
Barclays invited bene?ciaries to our Singapore of?ce to be
mentored by Barclays’ employees, which included career
preparation and savings planning workshops. In 2013,
more than 81 bene?ciaries were supported through the
programme, with more than 40 young adults gaining
successful employment.
Lalitha’s story
The AWWA EXCELerate programme, and her mentor
Rali, provided Lalitha with the motivation, support
and goal-setting strategies she desperately needed.
Lalitha said: “It propelled me forward which helped
me to overcome the challenge, with the support from
my family and loved ones. I’ve looked up to [Rali]
as a special person who I could really open up to,
without having to feel uncomfortable. I know that
I can look for her if I needed help”. Lalitha is now
on track to complete her coursework and realise
her career ambitions.
Americas
Asia Paci?c
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Barclays PLC Citizenship Report 2013 | 47
Faz-Te Forward, Portugal
Employability skills
Since 2012, Barclays has invested £65,000 in Faz-Te
Forward, a partnership between Barclays and Associação
para o Desenvolvimento, which aims to tackle the
growing problem of youth unemployment in Portugal.
The programme is designed to give underprivileged
young adults, who have either completed education
or had a professional quali?cation, the best chances
of securing employment.
Providing a unique combination of soft skills training,
coaching and job shadowing, Barclays’ employees support
the delivery of skills workshops as well as provide work
experience opportunities. After a year-long course, there
were 60 bene?ciaries that signi?cantly improved their
employment prospects. At the end of 2013, 16 young
people successfully found jobs or internship opportunities.
Street League
Employability skills
Street League’s mission is to ‘Change Lives through
Football’ by engaging underprivileged young people,
aged 16 to 25, in the classroom and on the ?eld. This
intensive eight-week Academy programme develops
communication, teamwork and goal-setting skills,
while offering nationally recognised quali?cations.
In addition to the £825,000 investment since 2011,
Barclays’ volunteers have engaged in Street League
activities across the UK to support young people
with limited access to training or education, including
offering CV support, mock interviews and con?dence
building techniques.
Europe
UK
Mariana’s story
Mariana Burguette struggled to ?nd employment
due to low self-con?dence. Faz-Te Forward provided
Mariana with public speaking techniques, time
management and networking skills, as well as interview
coaching from Barclays’ employees. These experiences
helped to build her con?dence and secure an internship
at Barclays.
Mariana said: “Faz-Te Forward completely changed
my life. My mentoring relationship allowed me to
participate in an internship at Barclays, where I can put
to work the advice given by my mentor and experience
the working world in an area I would like to pursue.”
Will’s story
Will, 20, struggled to ?nd permanent work, drifting
in and out of temporary jobs and so he joined Street
League’s eight-week programme. When Barclays’
employees visited the Academy, they were so
impressed with Will, they invited him to an interview.
In May 2012 he was appointed a full-time role at
Barclays, and recently helped deliver a Barclays Money
Skills course to the Street League Academy in Croydon.
“To anyone joining the Street League programme,
I would just say that you are getting a great
opportunity so make the most of it and go the
extra mile. It is amazing what is achievable in such
a short space of time at the Academy.”
48 | Barclays PLC Citizenship Report 2013
Benchmarks
Dow Jones
Sustainability Index
The Dow Jones Sustainability Index (DJSI) tracks the
?nancial performance of the leading sustainability-driven
companies worldwide.
In 2013, we maintained our membership of the DJSI World
Index, which represents the top 10% of the leading
companies in the Dow Jones Global Total Stock market
Index. Our score remained at 82% overall.
Total
Economic
Environmental
Social
51
52
67
58
Average score in global banking sector
Barclays score 2013
Barclays score 2012
82
82
83
86
88
84
76
78
Carbon Disclosure
Project
The Carbon Disclosure Project (CDP) assesses
organisational management of greenhouse gas emissions,
climate change strategy, mitigation and adaptation.
In 2013, Barclays has achieved an ‘A’ rating for
our performance.
We have also achieved a position on the CDP supplier
climate performance leadership index (SCPLI) 2013.
This is a new list of the best performing suppliers on
climate change action who disclosed to the CDP supply
chain program in 2013.
FTSE4Good
The FTSE4Good Index Series is
designed to objectively measure
the performance of companies that
meet globally recognised corporate
responsibility standards. We have been a member of
the FTSE4Good index since its inception in 2001.
In March 2013, we scored 90 out of 100 on the
Environmental, Social and Governance Rating (relative to
other companies in our sector).
CommunityMark
BITC’s CommunityMark is th e UK’s only
national standard that publicly recognises
excellence in community investment.
We are a CommunityMark pioneer,
one of the ?rst companies to achieve
the CommunityMark in 2008.
2013 2012 2011
89
92 92
We participate in a number of performance indices, benchmarks and Environmental, Social and Governance (ESG)
research, including:
• Dow Jones Sustainability Index
• Business in the Community Corporate
Responsibility Index
• Carbon Disclosure Project
• FTSE4Good Index
• RiskMetrics
• Bloomberg Markets’ world’s greenest banks ranking
• Sustainalytics
• Vigeo
• oekom research
Highlights of our performance are given below
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Barclays PLC Citizenship Report 2013 | 49
Benchmarks
Business in the
Community (BITC)
Corporate Responsibility
(CR) Index
The BITC CR Index is widely considered
the leading UK benchmark for corporate
responsibility. In 2013, Barclays achieved a score of
95% and maintained its ‘Platinum Big Tick’ rating –
the highest possible ranking.
Bloomberg Markets’
World’s Greenest
Bank ranking
The Bloomberg Markets’ World’s Greenest Bank
ranking assesses ?nancial services institutions on their
environmental performance and their investment in
clean technology.
We maintained our 10th place in the 2012 Bloomberg
Green Ranking, published in March 2013.
Independent assurance process
by KPMG LLP
We engaged KPMG LLP to undertake a limited assurance
engagement, reporting to Barclays Bank Plc only, using the
International Standard on Assurance Engagements (‘ISAE’)
3410: ‘Assurance Engagements on Greenhouse Gas
Statements’ over the selected Citizenship performance
data that have been marked within this Report with the
symbol p; and ISAE 3000: ‘Assurance Engagements
Other Than Audits or Reviews of Historical Financial
Information’ over the selected Citizenship performance
data that have been marked in this Report with the
symbol ? and the description of Barclays’ adherence to the
AA1000 Accountability Principles Standard (‘AA1000APS’)
(2008) principles of inclusivity, materiality and
responsiveness marked with the symbol ?. The principles
set out in AA1000APS (which is available at http://www.
accountability.org/standards/aa1000aps.html) are
intended to drive reporters to take action to: establish a
strategy based on a comprehensive and balanced
understanding of and response to material issues and
stakeholder issues and concerns; establish goals and
standards against which the strategy and associated
performance can be managed and judged;
and disclose credible information about strategy, goals,
standards and performance to those who base their
actions and decisions on this information.
KPMG LLP have provided an unquali?ed opinion in relation
to the selected Citizenship performance data and the
description of Barclays’ adherence to the AA1000APS
principles and their full assurance opinion is available in
the Citizenship section of our website at www.Barclays/
Citizenship/downloads/assurance opinion.com.
The level of assurance provided for a limited assurance
engagement is substantially lower than a reasonable
assurance engagement. In order to reach their opinion,
KPMG LLP performed a range of procedures which
included interviews with management, examination of
reporting systems and documentation, as well as selected
data testing at a site and Head Of?ce level. A summary
of the work they performed is included within their
assurance opinion.
Non ?nancial performance information, greenhouse gas
quanti?cation in particular, is subject to more inherent
limitations than ?nancial information. It is important to
read the selected Citizenship performance information
contained within this Citizenship Report in the context
of KPMG LLP’s full limited assurance opinion; Barclays
reporting guidelines for the selected Citizenship
performance data available on our website at www.
Barclays/Citizenship/downloads/reporting protocol.com;
and the GRI reporting principles for de?ning report quality
for the description of adherence to AA1000APS, which is
available at GRI.
doc_954354800.pdf
Barclays Citizenship Report provides a comprehensive view of performance against our 2015 Citizenship Plan.
Building the ‘Go-To’ bank
Citizenship Report
2013
About this report
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Annual Report 2013
Barclays Annual Report
includes the Strategic
report, the Governance
report, Risk review and
the Financial report –
including our audited
?nancial statements.
Citizenship Report 2013
Barclays Citizenship Report
provides a comprehensive
view of performance against
our 2015 Citizenship Plan.
We also release supporting
information, including our
reporting protocol, full
independant assurance
statement and GRI index.
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Building the ‘Go-To’ bank
Annual Report
2013
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Building the ‘Go-To’ bank
Citizenship Report
2013
Basis of preparation
The Citizenship Report (the Report) gives a comprehensive account of
Barclays’ performance in 2013 across a range of social, ethical and
environmental areas. It outlines progress on the priorities and targets
identi?ed in our 2015 Citizenship Plan, and how we are addressing issues
identi?ed as important to both our business and stakeholders.
The Report comprises a strategic report which includes an overview of key
activity and the challenges we faced and detailed information providing
in-depth discussion and data. The term ‘Barclays’ or the ‘Group’ means
Barclays PLC together with its subsidiaries. ‘Barclays’ and ‘Group’ are terms
which are used to refer to either of the preceding groups when the subject
matter is identical.
We disclose non-?nancial information on a voluntary basis. We adhere to
the AA1000 AccountAbility Principles Standard (2008) (‘AA1000APS’)
principles of inclusivity, materiality and responsiveness ?. We have set out
in more detail how we adhere to the AA1000APS principles in our Citizenship
Reporting Protocol. The Citizenship Reporting Protocol also provides
important information about our reporting boundaries and de?nitions for
the Citizenship data included in this Report.
We engaged KPMG LLP to undertake a limited assurance engagement over
the selected Citizenship performance data that has been marked in this
Report with the symbol r or p and the description of Barclays’ adherence to
the AA1000APS principles marked with the symbol ?. For more information,
please see page 49.
We report against the Global Reporting Initiative (‘GRI’) G3 Indicator
protocols and Financial Sector Supplement. We have self-declared our
reporting, considering our Citizenship Report, our Annual Report and
Accounts and supplementary online information, to be Application Level B.
See the Global Reporting Initiative Index online for more information.
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 certain of the Group’s plans and its current goals and
expectations relating to its future ?nancial condition andperformance.
Barclays cautions readers that no forward-looking statement is a guarantee
of future performance and that actual results could differ materially from
those contained in the forward-looking statements. These forward-looking
statements can be identi?ed 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. Examples of forward-looking statements
include, among others, statements regarding the Group’s future ?nancial
position, income growth, assets, impairment charges and provisions,
business strategy, capital, leverage and other regulatory ratios, payment of
dividends (including dividend pay-out ratios), projected levels of growth in
the banking and ?nancial markets, projected costs, original and revised
commitments and targets in connection with the Transform Programme,
deleveraging actions, estimates of capital expenditures and plans and
objectives for future operations and other statements that are not historical
fact. By their nature, forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances. These may be
affected by changes in legislation, the development of standards and
interpretations under International Financial Reporting Standards (IFRS),
evolving practices with regard to the interpretation and application of
accounting and regulatory standards,the outcome of current and future legal
proceedings and regulatory investigations, future levels of conduct provisions,
the policies and actions of governmental and regulatory authorities,
geopolitical risks and the impact of competition. In addition, factors including
(but not limited to) the following may have an effect: capital, leverage and
other regulatory rules (including with regard to the future structure of the
Group) applicable to past, current and future periods; UK, United States,
Africa, Eurozone and global macroeconomic and business conditions; the
effects of continued volatility in credit markets; market related risks such
as changes in interest rates and foreign exchange rates; effects of changes
in valuation of credit market exposures; changes in valuation of issued
securities; volatility in capital markets; changes in credit ratings of the
Group; the potential for one or more countries exiting the Eurozone;the
implementation of the Transform Programme; and the success of future
acquisitions, disposals and other strategic transactions. A number of these
in?uences and factors are beyond the Group’s control. As a result, the Group’s
actual future results, dividend payments, and capital and leverage ratios
may differ materially from the plans,goals, and expectations set forth in
the Group’s forward-looking statements. Additional risks and factors are
identi?ed in our ?lings with the SEC including our Annual Report on Form
20-F for the ?scal year ended 31 December 2012, and in the Form 6-K (Film
No. 131097818) dated 16 September 2013, both of which are available on the
SEC’s website at http://www.sec.gov. Any forward-looking statements made
herein speak only as of the date they are made and it should not be assumed
that they have been revised or updated in the light of new information or
future events. Except as required by the Prudential Regulation Authority,
the Financial Conduct Authority, the London Stock Exchange plc (LSE) or
applicable law, Barclays expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statements
contained herein to re?ect any change in Barclays’ expectations with regard
thereto or any change in events, conditions or circumstances on which any
such statement is based. The reader should, however, consult any additional
disclosures that Barclays has made or may make in documents it has
published or may publish via the Regulatory News Service of the LSE
and/or has ?led or may ?le with the SEC.
Visit: barclays.com/citizenshipreport Visit: barclays.com/annualreport
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Barclays PLC Citizenship Report 2013 | 1
Inside this report
Progress update
Balanced Scorecard 10
Balanced Scorecard: Citizenship 14
The way we do business 16
Contributing to growth 32
Supporting our communities 42
Strategic overview
About Barclays 2
Chief Executive’s introduction 4
Q&A’s 5
Strategy 8
Supplementary
information
Benchmarks 48
Assurance 49
Chief Executive’s
introduction
The way we do
business
Ensure our decisions take
account of stakeholder needs
in the short and long term.
Contributing to
growth
Deliver product and service
solutions to help more people
and society progress in
a sustainable way.
Supporting our
communities
Help ?ve million disadvantaged
young people develop the skills
they need to ful?l their potential.
See page 4
See page 16
See page 32
See page 42
2 | Barclays PLC Citizenship Report 2013
About Barclays
Barclays is a major global ?nancial
services provider engaged in personal
banking, credit cards, corporate and
investment banking, and wealth and
investment management. We have
an extensive international presence in
Europe, the Americas, Africa and Asia.
Barclays’ purpose is to help people
achieve their ambitions – in the right
way. With over 300 years of history
and expertise in banking, we operate
in over 50 countries and employ
approximately 140,000 people. We
move, lend, invest and protect money
for customers and clients worldwide.
Our Retail and Business Banking
businesses are organised regionally,
delivering products and services to
individuals and small businesses.
Barclaycard and our Investment Bank,
Corporate Banking, and Wealth and
Investment Management businesses
operate internationally.
50
We operate in over 50 countries
48 million
We move, lend, invest and protect money for 48 million
customers and clients
139,600
We employ almost 140,000 people worldwide
300
We have over 300 years of history and expertise in banking
£28,155m
Total income net of insurance claims in 2013
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Barclays PLC Citizenship Report 2013 | 3
Visit: www.barclays.com/annualreport
UK Retail and Business Banking (UK RBB)
A leading UK high street bank providing retail banking
services and general insurance to individuals and business
banking services to small and medium enterprises (SMEs)
Europe Retail and Business Banking (Europe RBB)
A local presence for Barclays customers in Spain, Italy,
Portugal and France, providing retail banking services to
mass-af?uent individuals and business banking services
to SMEs
Africa Retail and Business Banking (Africa RBB)
A leading pan-African retail and business bank serving
customers and clients in 12 countries with a range of
banking and bancassurance solutions
Barclaycard
A leading international payments business, offering
payments and lending to individuals, and a range of
business services including card issuing and payment
acceptance services
Investment Bank
A global investment bank serving large corporate clients,
?nancial institutions, governments and institutional
investors with ?nancial advisory, capital-raising, ?nancing
and risk management services
Corporate Banking
A leading provider of integrated cash management,
?nancing and risk management solutions to large corporate
clients in the UK and South Africa, and multinationals and
?nancial institutions globally
Wealth and Investment Management
A leading global wealth manager and advisor, providing
private and intermediary clients with international and
private banking, investment management, ?duciary services
and brokerage
Barclays’ banking and ?nancial service businesses work together to provide
customers and clients with the best offerings across our chosen markets
Individuals
a safe place to save,
make payments and
borrow money
Sovereigns
and institutions
capital raising, risk and
advisory services
Small and medium
size businesses
help starting a business,
managing cash, or
funding growth
Corporates
investment advice,
access to finance
and global markets,
hedging and risk
management
Financial institutions
and banks
access to global
markets and risk
management
solutions
4 | Barclays PLC Citizenship Report 2013
People rightly expect businesses to demonstrate
leadership by serving as a catalyst for helping societies
to prosper. Barclays is committed to meeting that
responsibility.
The impact that Barclays can have on societies across
the world should not be underestimated; and the decisions
we make as a business have the ability to deliver positive
bene?ts far beyond the places in which we operate.
Over the past year, we have put the foundations in place
to embed citizenship into the fabric of our business and
this Report provides a comprehensive view of our progress
and the challenges we have faced. We have launched
our new Purpose and Values, our new global code of
conduct, the Barclays Way, and our Balanced Scorecard.
The Scorecard, alongside our Purpose and Values are
now integral to how we measure and reward individual
and business performance and will align the organisation
behind our long-term goals.
We are on track to deliver against many of our targets on
our Citizenship Plan. As part of this, I am particularly proud
of the work colleagues have done to identify and expand
partnerships with clients, government and non-pro?ts
to scale positive social impact on issues such as youth
employability and entrepreneurship.
Throughout 2013, we continued to engage with our
stakeholders across the world to better understand their
concerns, explore how we can work together and receive
feedback on how we can do more. Society continues
to face profound social, economic and environmental
challenges. So, we must build on the feedback from our
stakeholders, maintain momentum, think more boldly
and work with others to truly make a transformative
contribution to society far beyond 2015.
Ensuring Citizenship is at the heart of everything we
do is essential if we are to help people achieve their
ambitions in the right way and become the ‘Go-To’
bank for all of our stakeholders.
Antony Jenkins, Chief Executive
A successful, vibrant ?nance and banking sector is an
essential enabler of social and economic progress,
growth and development.
Ensuring that we consider the needs of all our stakeholders
and take decisions which, in the long term, are positive for
our customers, clients, shareholders, colleagues and the
communities in which we operate is essential to enabling us
to ful?l that role. Above all, we must conduct our business
in a way that is sustainable, facilitating greater and more
inclusive prosperity for current and future generations.
One year on from launching our Purpose and Values, we
have taken a number of signi?cant steps to integrate these
concerns more fully into the way in which we make decisions
and do business. Indeed, it was a pleasure throughout
2013 to see ?rst-hand the commitment of colleagues to
embedding our strategy and the progress that we are making
on the journey towards becoming a sustainable ‘Go-To’ bank.
Our Balanced Scorecard demonstrates clearly that success
will no longer be measured just by what we do, but also by
how we do it. The Barclays Way – our new global code of
conduct – will be our compass on this journey. We have also
strengthened our 2015 Citizenship Plan, including enhancing
the way in which we understand, review and factor emerging
societal concerns into our decision making. We remain focused
on strengthening our Reputation Risk and Conduct Risk
frameworks, at Board level, to ensure we identify and manage
them to consistently high standards throughout our business.
Having secured the foundations on which to build, we move
into 2014 with our core values – respect, integrity, service,
excellence and stewardship – driving everything we do to
achieve our ambition of becoming the ‘Go-To’ bank. I am
proud of the work that colleagues across Barclays are doing
every day for societies and communities around the world.
But there is much more to do and we will continue to work
hard to engage more meaningfully both with society and
with our peers to ensure that we are in the best possible
position to deliver long-term, sustainable value for our
shareholders, our clients and customers, our colleagues
and society at large.
Sir David Walker, Chairman
Introductions
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Barclays PLC Citizenship Report 2013 | 5
Group Chief Executive’s review
Q&A
Extract from Antony’s opening remarks
“Now, the world that you are entering is a world with
a lot of challenges and problems. I know most of you are
business students, so let me just talk about a few of them.
One is demographics – population size and shape. The
world’s population is continuing to grow. By 2050, there
will be 10 billion people on the planet. There are about
seven billion today. Why does that matter? Because the
more people on the planet, the more resources those
people consume. Not just food, which is an obvious thing,
but did you know that for every calorie you consume,
it takes about a pint of water to grow that food? So we
don’t just need a lot more food, we’re going to need a lot
more water, and water’s a scarce resource in many parts
of the world where population is growing very quickly,
particularly in places like India and China.
But the other aspect about population is that the
population is ageing. The average age of the population is
increasing. The number of people over the age of 100 in
the next few years is going to quadruple. So there are
going to be fewer people working to provide the resources
to help the people who are ageing. Demographics –
one problem.
The second problem is climate change. There is no doubt
that the climate is warming. As the climate warms, that
poses lots and lots of challenges for people who live in
places like sub-Saharan Africa where it’s too hot or will
become too hot to grow food. The water level rises. That
creates problems. Temperature switches create more
violent weather. And that, most people would agree, is a
consequence of the way that developed and developing
nations structure their economies. Lots of carbon
dioxide, CO2
, produced by power stations burning coal.
And that’s a problem that society has known about for
20 or 30 years.
And the third problem is a problem which is particularly
relevant to all of you, and that is youth unemployment.
As I travel around the world – to Africa, Spain, the United
States, Portugal, Italy and this country – there are very
high and unprecedented levels of youth unemployment.
And why is that the case? It’s the case because the nature
of work has changed fundamentally.
And what these problems all have in common is the same
characteristic, and that characteristic is that they are all
very long-term, complex, important problems to the
societies where we all live at a time when our institutions
are geared increasingly to the short-term. People accuse
business of being short-term focused. They look at the
?nancial crisis that the banks were involved, that Barclays
was involved in, and say correctly that that was the result
of short-term focus on pro?ts.
So how do we address some of these very long-term
problems with more long-term thinking? We have to
deliver in the short term. Of course we do. But we have
to have a long-term perspective. And for me, that comes
down to leadership, and people who have jobs like mine
have a big responsibility to lead their organisations in
a way that recognises both the long-term and the
short-term.”
Q As you’ve been in charge of Barclays just recently,
where do you want to lead it?
A If you think about what banks do, banks sit right at the
heart of the societies where they do business. In some
ways, they’re different to other businesses because
they’re so important to the economy.
If you don’t have a vibrant and active banking system, you
can’t have a growing economy, and without a growing
economy, you can’t have a vibrant and growing society.
And I think the essence of what I’m trying to do is run
Barclays in a way that delivers for all of the people that
we have to serve.
Now historically, businesses would say their job was to
make pro?ts for their owners or their shareholders and
that’s important because if we don’t make pro?ts for our
owners and shareholders, then we don’t have any capital
to invest in the business. We also have to serve our
customers and clients. We have to make sure that the
people who work at Barclays feel motivated and engaged
by the organisation, that they can grow their careers.
But most importantly, we have to be seen to be a force
for good in society.
Now, I recognise there’s a degree of cynicism because
banks have not been seen as that traditionally. But it’s
very important that the industry begins to be more
proactive in ful?lling its responsibilities to society and
rebuilding trust.
We have had a number of discussions with stakeholders
over 2013 on a range of themes, including our Purpose
and Values, views on the ?nancial services industry and
speci?c issues such as conduct, remuneration and tax.
In order to summarise our position on these topics and
outline our thoughts on the importance of leadership and
long-term thinking, we have extracted the material below
from a talk by Barclays Chief Executive, Antony Jenkins,
in December 2013. Antony spoke to over 100 students at
a Speakers for Schools talk hosted at Brooke House Sixth
Form College in Hackney, London on a range of themes,
followed by a question and answer session.
Brooke House Sixth Form College has provided permission
for the edited transcript to be included in this Report and
published in full online on our website.
6 | Barclays PLC Citizenship Report 2013
Group Chief Executive’s review
Now, this sounds vague and generic, so we’ll be
publishing eight commitments for the business. There will
be two targets for our shareholders, two targets for our
colleagues, two targets for society, and two targets for
our customers and clients. We will publish those targets
and people will be able to hold us accountable for
delivering them.
It’s about, in essence, doing business in the right way. Is it
the right thing to do? Most people know what the right
thing to do is intuitively, but because we have 140,000
people in Barclays, we’ve had to be a bit more speci?c
about that. So we’ve de?ned ?ve values for Barclays and
they’re how I expect people to behave in the organisation.
Those values are respect, integrity, service, excellence,
and stewardship. You might say the ?rst four are pretty
obvious. Of course we want people to treat each other
with respect. We want to act with integrity. We want to
have high levels of service. We strive for excellence. All of
those things may appear to be logical and rational. But
the ?fth value is the most important and that’s the value
of stewardship. What that really means is that when you
work in an organisation like Barclays, which is 320 years
old, you have an obligation when you leave Barclays to
leave it in a better condition than when you came.
> See more on the Balanced Scorecard on page 10
Q You spoke about shareholders that you had to ask for
more money, possibly £6 billion, but I read somewhere
that employees get a bonus [of ] about £1.6 billion
every year. So why don’t you just cancel the bonus
instead of asking for more money from shareholders?
A That’s a good question. Basically if you want to be in
certain types of business, you have to accept the pay
structures in those industries.
If I’m in investment banking, I have to be prepared
to accept the compensation that goes along with
investment banking and that is in the interest of our
shareholders. However, it is very important when it
comes to pay that, ?rstly, you pay for performance. In
other words, you only pay the good people. And that you
pay competitively. In other words, you don’t pay more
than you have to because of the market in which you
operate. So it’s always controversial, the amount of
money that’s paid to certain sectors in banking, not all.
Many people who work in Barclays, the vast majority,
make about the sort of average salary that most people
in this country make.
> See our Annual Report for more information
Q What are you trying to implement to stop any further
[issues] such as bankers pushing interest contracts in
a way that it perpetuates them not thinking about how
the contract is laid out, but in terms of just pushing
for pro?t?
A So that goes back to the values we’ve set and holding
people accountable for doing their work in line with
those values.
Every year, we assess people and determine how they’ve
performed in the year, and traditionally, that would be
about what you’ve achieved. But now it’s as much about
how you’ve achieved it. In other words, you have to be
living the values. You have to be doing business in the
right way. You have to be helping your customers, not just
selling them a product they don’t need so you can make
money quickly. The combination of what you do and how
you do it determines your overall performance rating:
whether you get promoted, how much you get paid,
and so on. It’s very important because you’re right to say,
‘Well, what’s really going to change?’ It’s very important
that we change the way we run Barclays because if we
just run it the way we ran it before, we’re not going to
get a different result. That’s what I’m very committed to
doing – to changing Barclays in a way that meets the
needs of all of our stakeholders in both the short and
the long-term.
Q You spoke about achieving this balance between
the short run and the long run, but have you ever
found yourself in a situation where you had to make
a decision which bene?ts your organisation in the
long run, however, has negative implications in the
short run?
A I face these dilemmas every day, actually – perhaps the
most visible one is the question of the rights issue which
we conducted in the summer. What happens with the
rights issue is that you ask your existing shareholders for
more money. That tends to be quite a dif?cult thing to ask
shareholders for in the short-term, but it was the right
thing to do to position the bank strongly going forward
for the medium and long-term. This is why we asked our
shareholders for close to £6 billion of extra money to put
into the bank.
That is an example of balancing those short and long-
term types of decisions. And it’s not easy. It’s hard enough
to run any institution just for short-term success, let alone
trying to succeed in the short and the long-term. But it’s
the responsibility of leadership to take both perspectives
and to achieve balance between them.
> See our Annual Report for more information
Q&A
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Barclays PLC Citizenship Report 2013 | 7
Q You say that your staff come in every day and want to
serve customers, but then why aren’t they honest with
the customers when, for example, they open bank
accounts? I’m speaking from something that I’ve been
through. When I opened a bank account, I said that I
didn’t want to arrange [an] overdraft, but then they
gave me an overdraft. So how do you deal with that?
A Most people in big organisations are not badly intended
at all. They want to do the right thing. It’s sometimes that
they perceive the right thing differently. That person may
have thought that they were doing you a favour providing
you with an overdraft because at some point you may
need an overdraft.
But the issue is, if you don’t want an overdraft, then you
shouldn’t be encouraged to take one, and that’s the very
delicate balance in getting tens of thousands of people
who work in branches every day to do the right thing.
I emphasise they want to do the right thing. It’s up to
the leadership of the bank to guide them and help them
to identify what that right thing is. And the process of
changing the bank does take time.
Barclays is changing. We know that from lots of different
data sources. We still don’t get it right every day. But we
are absolutely committed to getting it right.
Q I understand that you’ve stepped into Barclays now
and you’ve changed, shaken up things a little bit, and
I’ve done background research on Barclays, and I
found out that in the past, there was something about
tax evasion going on. So what are you guys doing with
that money now?
A Firstly, tax evasion is one thing and that is illegal.
Tax avoidance is not illegal but may well be outside the
spirit of what society expects you to do. And historically,
Barclays was quite active in [aggressive] tax avoidance
and that is something that we have stopped doing.
One of the things I did early on was I closed the part
of the business that was involved in that.
> See more on our Tax Principles on page 27
Q How do you plan to improve the trust that customers
have in your bank?
A Trust is a very easy thing to lose and a very hard thing to
win back. In my view, it will take several years, probably
between ?ve to 10, to rebuild trust in Barclays. I can only
be responsible for Barclays, but I’m hoping in what we do
at Barclays we can also begin to rebuild trust in banking.
That is about what you do, not what you say. I can sit here
and tell you we’re running Barclays in a different way, we’re
not incentivising our colleagues in the branches to sell
products to people who don’t need them. I can tell you all
of that but until people really begin to perceive the change,
then the trust won’t start to rebuild. That’s why there’s a
lag because ?rstly we have to get the organisation to do
business differently, and that’s happening, but then people
have to perceive that we’re doing business differently,
before they give us credit for it, and then ultimately trust
will come back.
8 | Barclays PLC Citizenship Report 2013
Strategy
Building the ‘Go-To’ bank
We believe there is a real opportunity to build a
customer and client focused, socially useful bank that
generates sustainable returns to shareholders and wider
stakeholders over the long term. This is a unique chance
to build what we have described as the ‘Go-To’ bank.
Transforming Barclays and the way we do business –
becoming the ‘Go-To’ bank – will be a long, challenging
but also exciting journey. The outcome will be worth
the effort.
Barclays Strategic Review, commenced in Q4 2012, is
part of a long-term programme to transform the culture
and performance of Barclays over the next three to ?ve
years. The Transform programme is the way in which we
will deliver our strategy.
The Turnaround phase of Transform is largely complete,
with the implementation of our strategic review leading
us to exit certain lines of business and rede?ne our
Purpose, Values and Behaviours.
We are making good progress but also acknowledge
there is still much work to be done. Achieving our goal of
becoming the ‘Go-To’ bank will require us to accelerate,
collaborate and be resolute in our objectives. For more
detail on our strategy and 2013 performance, refer to the
Annual Report.
Our business
As a global bank with a diverse and integrated range of
products for individuals, businesses, institutions and
governments, Barclays can make a positive contribution
to global economic growth and development.
Our joined-up business model enables us to stay relevant
to our customers’ needs and help them to achieve their
ambitions in the right way: be it raising ?nance for a major
corporate acquisition to helping someone buy their ?rst
home. Our international scale and global expertise also
enables us to transfer innovation across regions and scale
solutions to help address social challenges; for example,
using our global ?nancing expertise to raise capital for the
South African renewable energy programme or developing
mobile banking technology to help increase access to
?nancial services.
At the heart of our strategy is the strong belief that there
can be no con?ict between good results and good values
if we are to build a successful, sustainable business over
the long-term. Along with the ?nancial services industry
as a whole, we have faced unprecedented challenges
and continue to do so. The landscape for banks has
fundamentally changed and will continue to evolve in
the coming years. We believe these changes represent
a structural shift and also create massive opportunity.
We have embraced change as a business, with 2013
marking the launch of our Goal, Purpose and Values
and the Transform programme.
Goal Purpose
Values and
Behaviours
Balanced
Scorecard
Becoming the ‘Go-To’ bank Helping people achieve their
ambitions – in the right way
• Respect
• Integrity
• Service
• Excellence
• Stewardship
• Customer and Client
• Colleague
• Citizenship
• Conduct
• Company
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Barclays PLC Citizenship Report 2013 | 9
Transform: delivering our strategy
Barclays’ sustainable success will be assured by
becoming the ‘Go-To’ bank for all our stakeholders.
If we understand their needs and priorities and put them
at the heart of our decision-making, we will be able to
build a bank which is lower-risk, more predictable and
higher-performing.
The strategic response
In 2013, we launched the Transform programme to deliver
the recommendations of the Strategic Review. Transform
is the plan that will help Barclays become the ‘Go-To’
bank. It has three overarching goals: Turnaround, Return
Acceptable Numbers, Sustain FORward Momentum.
Turnaround the business
Turnaround was the immediate task of stabilising the business
and maintaining momentum. In the second half of 2012, we
delivered our new Goal, Purpose and Values to unite Barclays
with a shared sense of direction – how we will do business.
We have put in place a new Executive team whose core
focus is focused on delivery. Our 139,600 colleagues have
all participated in workshops and training in Barclays’ values.
Return Acceptable Numbers
In 2013, we turned our attention towards the longer-term
transformation of Barclays. For our Return Acceptable
Numbers phase, we are de-risking and deleveraging the
business to make it more sustainable for the long term.
We committed to consolidate core lines of business, to
generate £1.7bn of cost savings by 2015, to improve our
Risk Weighted Assets (RWAs), funding and liquidity, and
to reach a Core Tier One capital ratio of 10.5%.
Sustain Forward Momentum
Our journey to ‘Go-To’ depends on continuing to adapt
Barclays for the future and ensuring that we do not return
to a short-term bias as we execute our plans.
The Board-commissioned Salz Review also prompted us to
review our conduct. We are committed to being open and
transparent and to regaining the trust of all of Barclays’
stakeholders. To sustain momentum we have integrated our
necessary behavioural transformation into our Transform
programme. Full details on our response to the Salz Review
can be found in the Annual Report.
A strong culture is the ?rst line of defence against repeating
the mistakes of the past. To unite around Barclays’ Values
and Behaviours, we published ‘The Barclays Way’ to govern
our way of working across our business globally. Colleagues
are essential to embedding our Purpose and Values and, in
2013, all of our colleagues attended Values and Behaviours
engagement sessions.
Reward and incentivisation is a critical enabler of
behavioural change. As of 2014, colleague performance will
be measured and rewarded not only on ‘what’ an employee
delivers but also ‘how’ they achieve their objectives. As
such, remuneration will align with Barclays’ Purpose, Values
and Behaviours as well as the Group Balanced Scorecard.
Focus of efforts in 2014
In 2014, we will continue to build on the progress made in
2013. We will stay alert to the evolving regulatory landscape
and aim to improve our regulatory and public disclosures
by engaging with our regulators and maintaining greater
overall transparency.
The new regulatory and emerging business environment
will inevitably call for continued rigorous review and
adaption of the mix and structure of the businesses of
the bank to ensure we generate sustainable returns.
However, we need to take care to ensure that regulation does
not go too far. A healthy banking sector that generates returns
above the cost of equity is essential to economic growth.
Vibrant economies need vibrant banks. It is therefore important
to ensure that the regulator focus on conduct supervision does
not inadvertently result in the withdrawal of services and the
restriction of choice for our customers.
Another key focus over 2013 and the coming year is
rebuilding the trust that customers, clients and stakeholders
have in our organisation. We have pledged to increase
transparency and conduct our business in the right way,
as set out in our Values.
Transform: delivering our strategy
The quality and commitment of the people at Barclays, combined with
our underlying ?nancial strength, means we start our transformation
from a good position. The Barclays Strategic Review, commenced in
Q4 2012, is a part of a long-term programme to transform the culture
and performance of Barclays over the next three to ?ve years.
The Transform programme is the way in which we will deliver
our strategy. With the initial ‘Turnaround’ phase complete,
we now look forward to ‘Return Acceptable Numbers’ and to
‘Sustain Forward Momentum’.
2013 2014 2015 2016 2017
0-3 years
Return Acceptable
Numbers
0-5 years
Sustain FORward
Momentum
Where we are now
0-9 months
Turnaround
Improve business returns, define and
execute the plan to deliver RoE above CoE
Become the ‘Go-To’ bank for our stakeholders –
customers and clients, colleagues, investors, and wider society
Stabilise the organisation, provide context for
the change to come, maintain short-term momentum
10 | Barclays PLC Citizenship Report 2013
Our Balanced Scorecard
Becoming the ‘Go-To’ bank for all our stakeholders
Balanced Scorecard: overview
Outcome Statements
Customer & Client
We are ‘Go-To’ for our customers and clients
Colleague
Our colleagues are fully engaged
We create a diverse and inclusive environment where colleagues can ful?ll their potential
Citizenship
We positively impact the communities in which we operate
Conduct
Our products and services are designed and distributed to meet clients’ needs
We act with integrity in everything we do
Company
We create sustainable returns above the cost of equity
We understand and effectively manage our risks, and continuously improve control
Helping people
achieve their ambitions
– in the right way
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Outcome Statements
We balance our stakeholders’ needs
across the short and long term.
Our activities drive mutually reinforcing
outcomes across stakeholders.
Balanced Scorecard
‘The Balanced Scorecard
is the ?nal crucial piece of
our plan – alongside our
Purpose and Values – to
embed the right culture in
our business and become
the ‘Go-To’ bank’.
The Balanced Scorecard sets out eight
speci?c commitments across our
5Cs (Customer & Client, Colleague,
Citizenship, Conduct and Company)
and de?nes what we need to achieve
over the next ?ve years to be well on
the way to becoming the ‘Go-To’ bank.
We are committed to monitoring and reporting on our
progress annually so that stakeholders can hold us to
account. The Balanced Scorecard is supported by strategic
initiatives that will drive progress across the 5Cs.
The Balanced Scorecard gives clear strategic context for our
colleagues around what becoming the ‘Go-To’ bank will look
like and lays out Barclays’ priorities. The Barclays Balanced
Scorecard is cascaded into business unit and function
scorecards. Together, these provide line of sight to employees
to our organisational goal. They also provide a framework and
starting point for all employees when setting their individual
performance objectives across the 5Cs.
For more detailed information on the Balanced Scorecard, please see
barclays.com/balancedscorecard
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Barclays PLC Citizenship Report 2013 | 11
Metrics and targets
We have agreed eight key measures against which we and our stakeholders can hold us to account. We are committed to monitoring and
reporting on our progress annually.
Metric Actual 2013 Target 2018
Customer & Client
RBB, Barclaycard and W&IM: Weighted average ranking
of Relationship Net Promoter Score
®a
vs. peer sets
4th 1st
CIB Client Franchise Rank: Weighted average ranking of
wallet share or customer satisfaction with priority clients
4th Top 3
Colleague
Sustained engagement of colleagues score 74% 87-91%
% women in senior leadership
b
21% 26%
Citizenship
CItizenship Plan – initiatives on track or ahead 10/11 Plan Targets
Conduct
Conduct Reputation (YouGov survey) 5.2/10 6.5/10
Company
Return on Equity (Adjusted) 4.5% > Cost of equity
Fully Loaded CRD IV CET1 ratio 9.3% >10.5%
For further information on Balanced Scorecard Methodology and Data Sources please visit barclays.com/balanced scorecard and
see the ‘Metrics and targets’ page
Delivering our strategic targets: Example Strategic initiatives
Here are some examples of strategic initiatives that will drive progress across the 5Cs and support our goal to become the ‘Go-To’ bank.
Customer & Client
We are using technology to improve our customers’ and clients’ experience and to be responsive to their
changing needs, such as through Barclays Mobile Banking, BARX, PayTag and Barclays.Net
We are making our most important customer and client interactions as simple and instant as possible –
putting power in their hands to transact when, where and how they want to
We are simplifying our products and services and improving what we offer to match customer needs with
the right service model
Colleague
We have launched our Purpose and Values, and we are embedding them into all our HR processes
including: recruitment, promotion and performance management
We are developing and training leaders through the Barclays Leadership Academy and Barclays Global
Curriculum
We are driving a consistent global diversity and inclusion plan resulting in a more visibly diverse talent pipeline
Citizenship
We are ensuring the way we do business re?ects broader societal and environmental considerations
We are contributing to growth through ?nancing, supporting businesses and ensuring our products and
services support sustainable progress
We are supporting the communities where we operate by helping ?ve million young people to develop
enterprise, employability and ?nancial skills
Conduct
We are following a rigorous and transparent framework on conduct risk reporting and management
We are using material conduct risk assessments to effectively identify, assess and manage conduct risk
We are exercising sound judgements to avoid detriment to customers, clients and counterparties or to
market integrity
Company
We are delivering the initiatives across the strategic quadrants: Invest and grow, Reposition, Transition, and Exit
We are managing costs (rightsizing, industrializing, innovating) and delivering our leverage and capital
commitments
We are improving our controls through the launch of “The Barclays Guide”, which covers how we
organise, manage and govern ourselves and includes a new risk management framework
Notes
a Net Promoter, Net Promoter Score, and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.
b Senior leadership represents the Managing Director and Director corporate grades combined, a population of over 8,000 employees. Under the Companies Act 2006 we are
also required to report on the gender breakdown of our ‘senior managers’. For this purpose, we have 988 senior managers (179 female and 809 male) who include Of?cers
of the Group, certain direct reports of the Chief Executive, heads of major business units, senior Managing Directors, and directors on the boards of subsidiary undertakings
of the Company.
12 | Barclays PLC Citizenship Report 2013
Balanced Scorecard: Citizenship
Citizenship
Citizenship is a critical part of becoming the ‘Go-to’ bank
for all our stakeholders. And, for society, it means we can
serve as an enabler for greater, inclusive prosperity for
current and future generations. This means taking into
account the needs of all our stakeholders and making
decisions which, in the long term, are positive for our
customers and clients, shareholders, colleagues and
the communities in which we operate.
The Barclays Citizenship Plan (the Plan), launched in June
2012 and updated in July 2013, is an evolving set of global
commitments organised around three areas where we
believe we can have the most impact: The way we do
business, Contributing to growth and Supporting our
communities.
Engaging with stakeholders
Establishing an on-going dialogue with key stakeholders
is an important part of our approach. We connect with
stakeholders to share information about our business and
strategy, to develop our Citizenship priorities and provide
updates on performance, as well as open doors for
collaboration and pursuit of common goals. We want to
focus on areas that are important to our stakeholders and
are strategically aligned to both our business performance
and broader social impact.
We recognise there may be stakeholders who still have
concerns about the role of banking and Barclays. Striking
a balance between the views and needs of all of our
stakeholders is a challenge and we may not always get it
right; but we are committed to listening and collaborating
with all our stakeholders and putting it right when we don’t.
In 2013 we launched a number of platforms to listen
and engage with our internal and external stakeholders.
We held structured dialogues in London, New York and
Johannesburg to better understand their concerns, gather
input on Barclays’ Citizenship strategy and performance,
and identify opportunities for further dialogue and
collaboration. Key themes from the dialogues included the
need to de?ne an ambitious vision that re?ects the scale
of the challenge and the role Barclays will play. In addition,
stakeholders are keen to see more evidence of integration
into our core business and stressed the importance of
leadership and collaboration. Further detail on stakeholder
engagement in 2013 is available in our reporting protocol
and on our website.
Looking forward
We have taken on board the challenge from stakeholders to
build our ambition longer term, and are currently developing
our strategy beyond the current 2015 Citizenship Plan.
While we have made progress, we recognise we have much
more to do and that our 2015 Plan is about foundational
activity. We recognise that to be the Go-To bank for all our
stakeholders, we must better understand the challenges
and opportunities society will face in the long term –
looking towards 2020 and beyond.
The global context…
46%
Levels of trust in ?nancial services globally, the lowest
across major industry sectors
60%
Percentage of UK business leaders who rate short-termism
as a major impediment to growth and development
29
Global Systemically Important Financial Institutions
(G-Si?’s) in 2013
$2.1-$2.5tr
Total unmet need for credit by all formal and informal
micro-SMEs in emerging markets (in 2010)
£84-£191bn
Forecast shortfall in funding required to UK SMEs (2012-
2017) to fund working capital and expansion needs
$500 bn/yr
Estimated global annual spending needed on clean
energy (to 2020) to restrict global average temperature
increase to 2°C
73.4m
Estimated number of young people out of work globally in
2013 (12.6 % or 1 in 8)
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Barclays PLC Citizenship Report 2013 | 13
While we can’t predict the future, we do know that the
world is facing a number of in?uential shifts – from
imbalanced population growth to increased pressure on
cities and natural resources to the growing gap between the
rich and poor. Addressing these issues will involve trade-offs
and require new levels of leadership and collaboration.
That is why in late 2013, we began to engage a wide range
of stakeholders with many different perspectives to better
understand the challenges society will face in 2020 and
begin to build an ambitious vision. As part of this process,
we are bringing together people to discuss the future of the
socially valued organisation – to share views, challenge and
explore underlying drivers of change, debate regional
perspectives and begin to build a collective view.
In 2014, we will continue this dialogue, report on progress
and continue to develop a bigger, bolder ambition in line
with the needs of future generations. This shift to long-term
thinking will equip our organisation to be a truly sustainable
‘Go To’ bank for all our stakeholders.
Citizenship governance
Board-level accountability
In 2013, the Board Citizenship Committee’s remit was
broadened to include reputation and operational risk and
the way we conduct our business. It was renamed the
Board Conduct, Reputation and Operational Risk Committee
and retains responsibility for oversight of our Citizenship
strategy. See the Annual Report for more information.
Executive and management oversight
Our Executive Committee is responsible for managing
the delivery of our Citizenship agenda. During 2013, we
signi?cantly enhanced our governance structure with the
expansion of the Citizenship Leadership Council (CLC),
which is comprised of senior leaders from every business
and function.
The CLC supports the Executive Committee in ful?lling their
objectives and meets monthly to monitor progress against
our strategy, oversee the development of new initiatives
and drive the integration of Citizenship in day-to-day
decision-making.
We have also signi?cantly increased activity across every
business and function, including new Steering Committees
thta have implemented speci?c business or regional
Citizenship strategies. This includes Corporate and
Investment Banking and Wealth and Investment
Management, as well as an African Leadership Council.
We have a network of experts throughout the organisation
to support, monitor and ensure the delivery of our
Citizenship objectives in speci?c areas; for example, our
Environmental Risk Management team is part of the
overall Risk function. A central Citizenship team works
collaboratively with divisional Citizenship leaders,
environmental managers, procurement professionals
and specialist commercial teams.
...and key stakeholder concerns ...shape our approach
Topics raised during our
engagement in 2013
• Conduct issues and
culture change
• Financial performance
• Capital and leverage
• Remuneration
• Customer experience
• Banking reform and
systemic risk
• Restructuring
• Transparency
• Access to lending
and ?nancing
• Tax
• Financial inclusion
• Public Policy
• Environmental and
social impacts
• Youth unemployment and
the skills gap
Barclays Citizenship Plan is focused on three key pillars
The way we do business
Ensure our decisions take account of stakeholder needs in
the short and long term
Contributing to growth
Deliver product and service solutions to help more people
and society progress in a sustainable way
Supporting our communities
Help ?ve million disadvantaged young people develop the
skills they need to ful?l their potential
14 | Barclays PLC Citizenship Report 2013
Balanced Scorecard: Citizenship
Citizenship in the Balanced Scorecard
In 2013, we embedded delivery against the Plan into the
Balanced Scorecard. We track overall performance against
11 metrics based on our 2015 Plan commitments.
We introduced three new targets in 2013: attestation to the
Barclays Way, our new code of conduct; a global stakeholder
survey; and prompt payment for our suppliers. We also
committed to a new carbon reduction target of 10% by
2015, against a 2012 baseline.
The Scorecard covers most of our Plan commitments but there
are two areas where we do not yet have appropriate metrics
and targets – transparency and reducing systemic risk. These
are compex themes that are dif?cult to measure using clear
high-level indicators. We will continue to explore options to
develop suitable metrics for these objectives in the future.
The dashboard below summarises 2013 performance
against our targets. We are on-track to deliver 10 out of
11 targets in 2013 and are making progress against our
Plan commitment Metric 2012 2013 Status Plan Target 2015
(cumulative)
The way we do business
1. Implement a global Code of
Conduct to set clear and
consistent expectations
of behaviour
‘Barclays Way’ Code
(% employees attested)
New 85% 97%
2. Ensure material business
decisions re?ect stakeholder
considerations
Citizenship Reputation
(YouGov survey)
New 4.9/10 6.5/10
3. Proactively manage the
environmental, social &
governance impacts of
our business
Global carbon emissions
(tonnes CO
2
% reduction
y-o-y)
New -5.2%p -10%
% suppliers paid on time
(45 days, by value)
New 83% 85%
4. Be market leading on
transparency – being as
open as possible about
how we do business
No suitable metrics
available
5. Minimise our broader
systemic risk to the
economy and society
No suitable metrics
available
Contributing to growth
6. Leverage our products, capital,
networks and expertise to drive
sustainable progress
New and renewed lending
to households (£bn)
£33.4bn £34bn £150bn
New and renewed lending
to SMEs (£bn)
£11.1bn £13.4bn £50bn
Assist in raising ?nancing
for businesses and
governments (£bn)
£830bn £840bn £2000bn
7. Help more businesses to
start-up and grow
Number of SMEs supported
with seminars, tools and
training
36,000 59,000 120,000
8. Improve youth employability Number of apprenticeships
at Barclays
486 667 2000
Supporting our communities
9. Deliver £250 million of
investment in community
programmes
Investment in community
(£m)
£64.5m £72m £250m
10. Help build the enterprise,
employability and ?nancial
skills of ?ve million 10 to
35 year olds
Number of 10-35 year olds
supported in building skills
1.21m 1.22m 5m
p Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 15
2012 2013 2014 2015
2015 goals. Further detail on performance is available in
the following sections of this report.
We are keen to enhance our approach to measuring
performance and adopt more innovative ways to measure
the wider outcomes and impacts of our activity.
However, we also need to strike a balance between
innovative metrics with the ability to credibly gather and
verify data. We need reliable tracking mechanisms with
robust controls.
De?nitions and reporting processes
Reporting on non-?nancial metrics does not yet have the
same rigour and standardised de?nitions that apply to
?nancial reporting.
We publish a reporting protocol, which sets out de?nitions
and assumptions for our key metrics, and outlines data
collection and veri?cation processes.
Commentary
Off-track against our full
completion target, we will aim to
improve attestation rates in 2014
85%
Employees attested to the Barclays Way
On-track against our 2018 goal
based on surveys run in 2013
4.9/10
Score based on global stakeholder survey
On-track to meet 2015 target to
reduce by 10% against a 2012
baseline
5.2%
Reduction in global carbon emissions
On-track to meet 2015 target,
currently only tracked for UK spend,
expanding global coverage
83%
Suppliers paid on time
We have increased disclosures on
key topics and will continue to
explore suitable metrics
We have developed Resolution and
Recovery Plans and will continue to
work with relevant authorities
Cumulative 2012 and 2013 performance against 2015 commitments
On-track against target, expect
increases in 2014 and 15
£33.4bn
£ billion
£150bn £34bn
On-track to meet 2015 target,
lending grew in 2013
£11.1bn
£ billion
£50bn £13.4bn
Ahead of target, total volume raised
relatively stable year-on-year
£830bn
£ billion
£2,000bn £840bn
Ahead of target due to increased
activity in Africa and the UK
36,000
Number of SMEs
120,000 59,000
On-track for meeting 2015
commitment on 2,000
apprenticeships in the UK
486
Number of apprenticeships
2,000 667
On-track, improved data quality
and inclusion of South African
donations in 2013
£64.5m
£ million
£250m £72m
On-track, improved data quality
and tracking of bene?ciaries from
key programmes
1.21m
Number of bene?ciaries
5m 1.22m
£67.4bn
£24.5bn
£1,670bn
95,000
1,153
£136.5m
2.43m
16 | Barclays PLC Citizenship Report 2013
Progress update
The way we
do business
Ensure our decisions take account
of stakeholder needs in the short
and long term
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Barclays PLC Citizenship Report 2013 | 17
Code of conduct
85%
of our employees attested to the new
Barclays Way code of conduct See page 18
Stakeholder survey
4.9/10
Barclays average score on a global
survey of over 2,000 stakeholders See page 20
Carbon emissions
5.2%
Reduction in Barclays’ global carbon
emissions year-on-year See page 22
Suppliers
83%
We paid 83% of our suppliers on-time in
2013 and aim to improve this going forward See page 22
Transparency
Public Policy
New disclosure initiative on our public
policy engagement See page 26
18 | Barclays PLC Citizenship Report 2013
The way we do business
1. We will implement a global code of conduct
Why is this important?
As a global business operating in
many jurisdictions and cultures, it is
imperative that Barclays has a clear,
accessible and well-communicated
code of conduct. This ensures that all
colleagues know and understand what
is expected of them at work beyond
their speci?c job responsibilities.
While we respect cultural differences
among our workforce, we also
require consistently high standards
of behaviour across the bank. The
code is key to achieving this, while
also giving our stakeholders an insight
into how we approach our business
every day.
Key performance measure
85%
Percentage of full-time employees attested to Barclays Way
as at end December 2013
The Barclays Way was launched in 2013, replacing a number
of existing codes with one unifying document. This is in
accordance with the Salz Review recommendation to
publish and maintain a global code of conduct, and that
all employees attest to it annually. It is much more than a
standard rule book. Building on our Purpose and Values,
it explains what we mean in terms of desired behaviours
at work and how they link to the mandatory compliance
policies and practices (those on ?nancial crime prevention,
for example).
The Barclays Way has been translated into ?ve languages
and communicated to all colleagues. It will be reviewed,
updated and re-communicated annually as part of our
colleagues’ mandatory training. Attestation rates contribute
formally to the Balanced Scorecard.
We launched the Barclays Way in October 2013 and set a
stretching target to have all our employees attest to the
code by the end of December 2013. Our target is 97%,
which re?ects full completion when taking into account
individuals who might be on maternity leave or absent for
other reasons such as illness. We achieved an attestation
rate of 85%, which was below our target. A primary cause
of this was that a substantial number of colleagues had a
shorter than planned window in which to complete the
attestation due to technical challenges in some regions.
We are committed to meeting this target in future years
and will continue to aim for full completion. As of February
2013, 94% of employees had attested to having read and
understood the code.
Ownership of the code of conduct rests with our Chairman
and the main Board. The document has introductory
messages from both Sir David Walker and CEO Antony
Jenkins, providing a direct and supportive tone from the top.
Throughout the document there is a particular focus on the
need for colleagues to speak out if they experience or see
practices they believe do not adhere to the Barclays Way.
Open and honest conversations should be held with
colleagues in team meetings that address and challenge
any behaviours, decisions or actions which may be
inappropriate and not in keeping with our Values. The
Barclays Way explains the importance of honesty and
candour, and fostering an environment where colleagues
at every level are encouraged to contribute their opinions
and concerns.
In addition, we have a formal whistleblowing policy and
process, supported by an independent advisor, should any
colleague not wish to raise the issue with Barclays directly.
This provides a con?dential line for colleagues to report
issues in good faith, without fear of repercussions.
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Barclays PLC Citizenship Report 2013 | 19
The selected mandatory policies and procedures referenced
in the Barclays Way are of key importance to global ethical
conduct. These include our: anti-money laundering,
anti-bribery and corruption; data protection and con?ict of
interest; diversity and inclusion; discipline and grievance;
health and safety; and environmental policies. Policies can
be downloaded from our website.
The Barclays Way code of conduct is different from
Conduct Risk. The code uses the term conduct in a
generic behavioural sense, while Conduct Risk has a
regulatory focus in terms of detriment to customers.
Visit: www.barclays.com/annualreport
Developing the Barclays Way
Development and launch of the Barclays Way was carried
out in consultation with a number of different stakeholder
groups. As well as gathering the views of the relevant
internal departments (for example – human resources,
legal, ?nancial crime, compliance) we sought feedback
from thought leaders such as the Institute of Business
Ethics (IBE). Dialogue with unions in the UK, Europe and
Africa was also a key part of the process. We reviewed
current perceptions of best practice and aligned content
to the Code of Professional Conduct, published by the
Chartered Banker Professional Standards Board, which
sets out the ethical and professional attitudes and
behaviours expected of bankers. Barclays subscribes
to this code and is committed to embedding its broad
principles into our business.
The Barclays Way will be subject to an on-going annual
review process. We will continue to involve stakeholders
in this process to ensure that content is refreshed and
updated appropriately. A dedicated internal email address
has been set up to receive feedback from colleagues on
the Barclays Way and ask any questions on its application.
The code is available on our website.
“Developing The Barclays Way was a vital ?rst step in the Bank’s journey
in bringing its purpose and values alive. The next stage is more important
though and challenging, which is to embed The Barclays Way with every
member of staff so it is lived day to day.”
Philippa Foster Back CBE, Director, Institute of Business Ethics
20 | Barclays PLC Citizenship Report 2013
The way we do business
2. We will ensure material business decisions re?ect
stakeholder considerations
Why is this important?
As a global business it is important
that we consider the needs of all our
stakeholders in our core business
decisions in the short and long term.
We are increasing our capacity to
engage, understand and identify
stakeholder views and develop tools
to help us consider the wider impacts
of our decisions. This is essential
to the way we do business and we
believe it will deliver greater value to
our stakeholders.
Key performance measure
4.9/10
Score based on global stakeholder survey response to
?ve questions
We need to understand the views and opinions of key
stakeholders and to evaluate broader societal impacts when
making business decisions. This will enable us to enhance
our decision-making and improve our ability to deliver
returns for all our stakeholders over time. This will require
more engagement with our stakeholders on an ongoing
basis. It also means that we need to engage on speci?c
issues even where our views may differ signi?cantly from
those of our stakeholders.
We have established planning frameworks and analytical
tools to manage our core business impacts and have
signi?cantly enhanced our approach to managing
conduct and reputational risk during 2013. Conduct risk
refers to risk of detriment caused to our customers, clients,
counterparties, or the Bank as a result of the inappropriate
execution of our business activities. Reputation risk is
the risk of damage to Barclays brand arising from any
association, action or inaction which is perceived by
stakeholders to be inappropriate or unethical. The Annual
Report has more information on how we manage
these risks.
Integration into strategy
We are embedding this approach into strategic decision-
making at all levels of the business, from our overall
strategic review process through to speci?c decisions on
products or initiatives.
The strategic review of the business in February 2013,
explicitly considered reputational risk. The focus was on
how we deliver returns, as well as on what returns may be
delivered. The analysis assessed each business against a
range of criteria, including market attractiveness, competitor
positioning, regulation, and reputational risk – which was
assessed using the lens of Barclays’ Purpose and Values.
This incorporated the earlier review of reputation risk
associated with Corporate and Investment Banking business
lines and resulted in Barclays’ exit from some businesses,
including the Structured Capital Markets tax-related
business unit. The view was that, while many tax services
provided to clients are not controversial, there were some
that relied on sophisticated and complex structures where
transactions were carried out with the primary objective of
accessing the tax bene?ts. Although this activity is legal, it
was considered incompatible with the Group’s purpose and
published Tax Principles (see page 27 for more information).
Challenges during 2013
Barclays experienced a number of events negatively
impacting our reputation in 2013, some of which arose
as a result of decisions and behaviours which occurred in
previous years. For example, with interest rate hedging
products, Barclays recognises that we have not met the
standards expected of us by our regulator and customers in
some cases concerning small and medium-sized enterprises.
Global stakeholder survey tracker
The 2013 Citizenship score is an average index score from
two surveys conducted for Barclays during 2013, among
an audience of global stakeholders (Politics, Media,
Business, NGOs and others). The surveys were carried
out across the summer period, and from October to
December, using telephone and online methods. Around
2000 respondents across key geographies completed
each survey. Aggregation across geographies is
performed using weightings based on Barclays’ income.
The citizenship index has a number of components, which
carry equal weight in the index calculation. They include
whether Barclays takes social, environmental and
stakeholder considerations into account when making
commercial decisions; whether it has high ethical and
moral standards; as well as broader areas, such as
operating transparently and contributing to the local
economy and community. Targets have been de?ned to
position Barclays as Best In Class by 2018.The surveys
were conducted by YouGov, an independent market
research agency.
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Barclays PLC Citizenship Report 2013 | 21
Barclays also took the decision to exit client relationships
in the Money Service Business (MSB) sector because of
?nancial crime and regulatory risks in the sector. Although
we consider this decision to have been necessary from a
regulatory perspective, unfortunately it has impacted on
businesses in this sector and the customers they serve.
Identifying and managing the broader social impacts
that may arise as a result of our business activity can be
challenging, especially where impacts are diffuse, dif?cult
to isolate from other factors and may be the subject of
considerable debate. In 2013, one of these issues arose from
on-going concerns raised by some stakeholders about the
potential impact on food prices of speculation in agricultural
commodities, particularly food staples such as wheat, rice,
maize (corn), soybean. We recognise that there is external
concern and are actively engaging with both internal and
external stakeholders to further develop our understanding
and approach to this complicated issue.
As a proactive measure, we have ceased trading food
staples with entities for speculative purposes as this has
been cited as a potential cause of food price in?ation. This
does not mean however that we have exited all agricultural
commodities related activities. We continue to provide risk
management products and services to food producers and
consumers and investors.
More broadly, we are supporting the growth of sustainable
commodities through our membership of the Banking
Environment Initiative, which has partnered with the
Consumer Goods Forum (CGF) to develop a ‘Soft
Commodities Compact’. This initiative explores how the
banking industry can help CGF members achieve the goal
of zero net deforestation in their supply chains by 2020.
Enhancing our decision-making
During 2013, we developed and piloted a ‘Citizenship
Lens’, a values based decision-making tool which is
being applied alongside other decision-making tools,
to help colleagues move beyond legal, regulatory
and compliance requirements, to consider broader
societal impacts and opportunities in our key
business decisions.
In applying this Lens, we will seek to ensure that we are
taking into account the interests of our customers, clients,
shareholders and communities in the decisions we make
every day.
The Lens is designed to serve as a guide in the ?rst stage
of the decision-making process in order to help facilitate a
discussion about our impact as well as the potential to
create sustainable value for wider society – in the short
and long term.
The Lens covers the following ?ve high-level questions:
1. How are we making a pro?t (directly or indirectly)?
2. How are we being transparent and clear in our
communication and dealings with customers and
stakeholders?
3. How are we creating long-term value?
4. How are we creating shared value, where win-win
occurs to Barclays, the customer and society at large?
5. Is this the right thing to do?
The Lens is being integrated into our core decision-making
processes and governance structures, including new
product approval. In 2014, we will launch training for
key colleagues involved in areas such as new product
development.
Remuneration continues to be a topic of stakeholder
concern across the industry. Determining the 2013 incentive
pool was the most dif?cult decision that our Board
Remuneration Committee had to make. We were acutely
aware of the dif?culty of presenting shareholders with an
increased pool in a year where pro?ts had fallen. The
dilemma faced by the Committee in making our 2013
incentive decisions was to protect the health of the
franchise with the aim that Barclays remains true to its
policy of paying competitively. Total compensation costs
decreased 1% to £9,616m. Total compensation costs in
the Investment Bank were broadly ?at at £4,634m (2012:
£4,667m). On a pre-risk adjusted basis, the 2013 incentive
awards of £2,492m have reduced 18% from 2012. After
making appropriate risk adjustments for conduct and
other events, total incentive awards granted increased to
£2,378m, up 10% on 2012.
As part of the Transform programme, we are driving
structural cost ef?ciencies across Barclays. In particular,
the increasing use of technology is changing the way in
which customers choose to do their banking, creating
opportunities for Barclays to offer services in new ways at
lower cost. A consequence of this is a planned reduction in
our overall levels of employment.
During 2014 we expect to remove 10-12,000 roles
globally through restructuring. We are working closely
with employee representatives to avoid compulsory
redundancies where possible and to ensure that employees
leaving Barclays are treated with respect. In the UK, we
consult with Unite where required as early as possible on
proposed redundancies. Outside the UK we consult with
recognised unions, works councils or through employee
forums. In addition, where the proposals would have a
trans-national impact, we also consult with regional
employee forums in Europe and Africa.
22 | Barclays PLC Citizenship Report 2013
The way we do business
3. We will proactively manage the environmental,
social and governance impacts of our business
Why is this important?
Businesses are expected to manage
environmental, social and governance
issues relevant to their activities,
including ethical and reputational
concerns. This includes our direct
environmental footprint, our supply
chain and our business lines.
Key performance measures
5.2%
Reduction in global carbon emissions year-on-year
(2012 5.8%) p
83%
Suppliers paid on time (New metric)
Managing our environmental impacts
Our environmental management activities are focused on
several key areas, the most crucial being the way we use
our buildings and carry out our business travel.
While carbon management remains a key priority, in 2013
1
we expanded the scope of our environmental management
programme to include water, waste and paper. We made
good progress in improving our ability to report data for
these metrics and we achieved increased coverage for paper.
Our water coverage is reported as a decrease between 2012
2
and 2013. This is primarily due to the change in the reporting
period and restatements for 2012 associated with more
accurate data now being available and exclusion of certain
Africa data. Over the next year we look to expand coverage
3
and also work towards disclosing waste information when
data becomes more robust.
In 2013 we committed to a new carbon reduction target
of 10% by 2015, against a 2012 baseline. We reduced our
carbon emissions
4 5
by 5.2%. Of this, savings from real
estate contributed the most to the overall reduction by
4.2%, primarily through savings from energy ef?ciencies
initiatives. Data centres and travel contributed 0.2% and
0.8% respectively to the overall reduction.
Key initiatives in 2013
We exceeded our in-year target for carbon reduction
through the implementation of programmes and policies
that improved our operational energy ef?ciency and
effectiveness of our business travel. Some examples are
shown below:
• We ran a global energy ef?ciency programme in our real
estate portfolio that led to carbon savings of 35,360
tCO2
e (3.5% of total reduction). The programme focused
on lighting ef?ciency projects, optimisation of heating/
cooling systems and implementation of more energy
ef?cient desktops.
• We ran key energy ef?ciency initiatives in our data centres
that led to carbon savings of 1,932 tCO
2
e (0.2% of
total reduction). These initiatives included air?ow and
variable frequency drive projects in the USA and chiller
optimisation and BMS upgrades in the UK.
• For travel, savings of 7,690 tCO
2
e (0.8% of total reduction)
were delivered through the implementation of a new global
travel policy and more robust approval processes
Scope 3:
Indirect emissions from business
travel (global flights and private
cars, rail taxis and car hire from
UK and South Africa where this
type of transport is material).
Scope 1:
Direct combustion of fuels,
and company-owned vehicles
(from UK and South Africa
only, which are most material
contributors). Scope 1 excludes
fugitive emissions.
Scope 2:
Purchased electricity and steam
for own use.
Total emissions by scope 2013
tonnes CO
2
e
49,520 180,350
732,090
0
0.2m
0.4m
0.6m
0.8m
1.0m
1.2m
2013 2012 2011
Total carbon emissions
tonnes CO
2
e
1
,
0
9
6
,
5
2
0
1
,
0
1
4
,
3
3
0
9
6
1
,
9
6
0
1
2013 Reporting Year covers Q4 2012 and Q1, 2, 3 of 2013 due to changes made to
the reporting period to meet Mandatory Carbon Reporting Regulations requirements
in the Directors Report. The carbon reporting year is not fully aligned to the ?nancial
reporting year covered in the rest of the Citizenship Report.
2
2012 Reporting Year covers January – December 2012 and is in line with the
?nancial reporting year covered in the rest of the Citizenship Report.
3
Coverage represents the proportion of property portfolio for which data is reported
4
Excludes fugitive emissions
5
The methodology used to calculate our CO2e emissions is the GHG Protocol
Corporate Accounting and Reporting Standard (revised edition), using the
operational control approach on reporting boundaries. This covers the properties
where Barclays have operational control and are ?nancially responsible for the utility
supply. Barclays also report for 3rd party sites where direct metering or billing is in
place for utilities consumed by Barclays operations.
p Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 23
Barclays offsets our carbon emissions from core banking
operations. In 2013, we continued to invest in carbon credits
from a range of projects around the world.
We also helped the South African electricity service
provider, Eskom, through an agreement to assist the
country ‘on-demand’ during hours of peak energy usage.
By using our Energy Centre in Johannesburg we are able to
reduce the potential for load-shedding and Eskom is able to
provide power to the equivalent of over 5,200 households
per year. We also offset the carbon emissions (3,000 tCO2
e)
associated with the illuminated sign in Towers Main from
our Johannesburg of?ce through the installation of a
400kWp PV plant in our Towers North building and a
water heater replacing project for our customers.
Additional Environmental and energy use data
2013 2012
2
Indicator
1
Data
Coverage
(%) Data
Coverage
(%)
Paper (tonnes) 4,224 85% 4,253 75%
Water (m
3
) 1,302,745 p 39% 1,391,901 44%
Energy (GWh) 1,461,831 p 100% 1,504,774 100%
Recognition for our performance
Our environmental performance was recognised by a
number of certi?cations and awards.
• Our Barclays properties in India, Pune 2.2 (Barclays
Technology Centre) & Pune 2.3 received Platinum
certi?cation for Leadership in Energy and Environmental
Design (LEED) and Pune 3, Noida 3 & Chennai 4 – Level 6
received Gold LEED certi?cation recognising excellence in
environmental design and performance.
• We had our UK operations recognised for carbon
reduction activity through achievement of the Carbon
Trust Standard.
• We improved accuracy of our electricity consumption
measurement in South Africa (our biggest contributor to
the global carbon footprint) through installation of smart
meters and effective bill validation process. This is an
industry leading initiative in South Africa.
Future priorities
Our carbon reduction target is aligned to our business
objectives and we have committed to a number of initiatives
that will help deliver on this objective, such as:
• Optimisation of our global property portfolio.
• Energy ef?ciency programmes in our buildings.
• Optimisation of our internal travel.
In addition to this, we will continue to enhance our
performance management and reporting systems for
water, waste and paper through more robust data
collection processes and collaboration with our suppliers.
We will also continue to engage employees in our
environmental programmes.
Managing our supply chain
Paying our suppliers on time
To maintain healthy working relationships we aim to ensure
there is no delay in paying our suppliers. We understand the
importance of cash ?ow and if, for some reason, there is a
delay in payment we aim to quickly identify the cause and
put it right immediately.
The on-time payment of suppliers was included as a metric
in the Balanced Scorecard in 2013. To facilitate paying our
suppliers on-time we introduced a consistent approach to
all payments in 2013 using the strategic Accounts Payable
solution. At the moment, we are only reporting spend
through our strategic system (circa 70% of our global total)
and we will expand global coverage going forward. In Q4
2013, we achieved 83% on-time payment by value. With
this system now in place, in 2014 we will concentrate on
educating our suppliers to help reduce the number of
mismatched invoices, as well as identify new ways of
improving our supplier payment performance.
Onsite audit update
As a business we strive to communicate openly with our
suppliers, particularly in regards to new policies and our
code of conduct. Those suppliers identi?ed as being
high-risk from both a commercial and sustainability
perspective are given contracts with speci?c ‘minimum
control requirements’ (MCR); this relates to the
management of areas such as: health and safety, diversity
and inclusion, human rights and the environment.
The Barclays Supplier Controls Assurance team rely on a
combination of self-attestation and on-site reviews to
evaluate supplier compliance with the Barclays MCR. While
we have 100% coverage through self-attestation of those
suppliers identi?ed as being high-risk from a commercial
and sustainability perspective, we aim to perform an on-site
review once every three years for all high-risk suppliers.
We have so far covered 63% of the total population.
Supplier Code of Conduct launch
Our suppliers are an extension of our business and an
integral part of helping us become the ‘Go-To’ bank for
our stakeholders and customers. In 2013 we launched our
Supplier Code of Conduct (SCoC) to ensure the highest
standards of conduct across all areas of: Environmental
Management; Human Rights; Diversity and Inclusion; and
Living the Barclays Values.
To effectively communicate the SCoC, suppliers were
directed to read the content on our newly launched vendor
portal. In 2014, we will launch an assurance programme
where suppliers will be assessed based on requirements set
out in the SCoC; this will include a combination of annual
self-certi?cation questionnaires and onsite assessments to
ensure continued focus.
1
Indicators de?nitions are covered in the Group Reporting Protocol
– Environmental Technical Disclosure
2
Restatements to 2012 data are covered in the Group Reporting Protocol
– Environmental Technical Disclosure
24 | Barclays PLC Citizenship Report 2013
The way we do business
Supplier diversity
In 2013 Barclays formally launched its supplier diversity
initiative by appointing a dedicated Global Supplier Diversity
team. With coverage in the US, UK, Asia and Africa, this
team, working within our Global Sourcing and Supplier
Management function, will lead the drive to increase spend
with diverse suppliers in these regions.
We will continue to build upon recent successes in the UK,
US and South Africa. Our partnership with business
incubator Tech Hub in Manchester, and our hosted events
such as the Barclays Open Innovation day in London and
Silicon Valley in the US, have demonstrated our ability to
tap into innovation clusters to attract ‘best-in-class’ SME
suppliers to our businesses. In South Africa, we have
partnered with the South Africa Diversity Council to
identify and contract with the right local companies.
In 2014, we will build upon our relationships with external
partnerships such as Minority Supplier Development UK
(MSDUK) that identi?es ethnic minority suppliers that may
not have had consistent access to Barclays’ supply chain.
We will also partner with other similar organisations,
representing the target underrepresented entrepreneurial
groups in the US, UK, Asia and Africa, as well as partner
with our larger suppliers to expand opportunities for
diverse suppliers.
Managing environmental and social risk
Our dedicated Environmental Risk Management team
ensures that environmental issues form part of credit risk
assessment, and that environmental risk policies are clearly
referenced in our credit sanctioning standards.
There are two broad categories of Environmental Risk
Management: Direct Risk and Indirect Risk.
Direct Risk arises when the Bank holds commercial land
as collateral. Business loans in the UK provided by the
Corporate Bank and Barclays Business, part of UK Retail
Banking, are assessed for environmental risk by our
Relationship and Credit Risk Teams, supported by Barclays
Environmental Risk Management.
Our panel of property and land valuers can use our bespoke
environmental screening product, Barclays SiteGuard, to
assess the commercial history of a piece of land and its
potential for environmental contamination, as well as the
operational implications of a site’s current or intended
commercial use. Where appropriate, cases are then referred
to Barclays Environmental Risk Management for review.
In 2013, 4,177 commercial properties were screened using
SiteGuard, with 1,348 cases referred. Lending Managers
also have access to a dedicated intranet which provides
comprehensive information and guidance on managing
environmental risk factors.
11 2
18
3
Africa
Americas
Asia-Pacific
EU
Project ?nance transactions by geography
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Barclays PLC Citizenship Report 2013 | 25
Indirect Risk can arise when environmental issues affect the
viability of our borrowing corporates; for example, when
costs are incurred to upgrade a business’ operations to
meet emerging environmental regulations. Environmental
considerations affecting our clients are wide and varied,
and can include anything from shifts in market demand to
changing supply chain pressures.
To keep track of environmental risks we have developed
a series of brie?ng notes, covering ten broad industry
headings, ranging from Oil and Gas to Waste Management.
These are available to colleagues in business development
and credit risk teams across the organisation as a reference
for environmental and social risks. In 2013, there were 236
transactions reviewed in the central team, of which 34
were subject to scrutiny against the Equator Principles due
diligence framework. During the course of the year, there
has been increasing awareness of weather-related impacts,
such as access to water, where this is a critical resource in
longer-term ?nancing.
Barclays ful?ls the requirements of the Equator Principles
by adhering to the Group Environmental and Social
Impact Assessment (ESIA) policy. These Principles are an
internationally recognised framework for environmental
and social risk due diligence in project ?nance. Barclays was
one of four banks to collaborate on developing the Principles
ahead of their launch in 2003. There are today over 70
banks worldwide that have adopted the Equator Principles.
(See www.equator-principles.com).
Our continued and active contribution to the Equator
Principles was recognised by the wider EP Association when
we were re-elected to membership of the EP Association’s
Steering Committee. We have also been a long-term
supporter of the United Nations Environment Programme
Finance Initiative, and are a member of the Global
Steering Committee and our Head of Environmental Risk
Management was elected onto the Board of the UNEP FI
Banking Commission in 2013.
Transactions screened by sector
Sector Project ?nance Other transactions
Infrastructure 1 13
Mining and metals 6 56
Oil and gas 2 26
Power (fossil fuels) 4 9
Other 0 12
Agriculture, ?sheries, forestry and
logging 0 8
Manufacturing 0 26
Chemicals and pharmaceuticals 0 5
Power (non-fossil fuels) 19 42
Utilities and waste management 2 5
Total 34 202
C
A
B
Project finance transactions by risk category
9
1
24
Notes
Category A – Projects with potential signi?cant adverse social or environmental
impacts which are diverse, irreversible or unprecedented.
Category B – Projects with potential limited adverse social or environmental
impacts that are few in number, generally site-speci?c, largely reversible and
readily addressed through mitigation measures.
Category C – Projects with minimal or no social or environmental impacts.
Credit: Wyke Farms Biogas Digester Vessel, Somerset, Richard Clothier,
MD, Wyke Farms Ltd, Colin James, Relationship Director, Barclays
26 | Barclays PLC Citizenship Report 2013
The way we do business
4. We will be market leading on transparency – being
as open as possible about how we do business
Why is this important?
We aspire to run our business in an
open and transparent manner with
consistent engagement and clear
disclosure for all our stakeholders. Our
focus includes improving transparency
for our customers and clients and the
markets we participate in, as well as
corporate transparency, including our
?nancial reporting and disclosures on
areas such as tax and public policy.
Enhanced Disclosures
Financial Reporting
The Enhanced Disclosure Taskforce (EDTF) was formed
by the Financial Stability Board with a remit to broaden
and deepen the risk disclosures of global banks. Barclays
has welcomed the recommendations made by the
EDTF and have further enhanced disclosures in our
Annual Report.
We believe that disclosures will continue to evolve in light
of ongoing engagement with the banking sector by
investors and other stakeholders. We are committed to
engaging and responding to this feedback in order to
meet the information needs of our stakeholders.
Remuneration
Barclays has increased the transparency of our
remuneration disclosures. The Annual Report includes our
remuneration policy, details on Director remuneration and
a question and answer section.
We also provide voluntary disclosures agreed with the UK
Government on levels of remuneration for our eight most
highly paid senior executive of?cers. In addition, we
provide additional remuneration disclosures (including
voluntary disclosures) about levels of remuneration of
employees in the Barclays Group and Barclays Code Staff.
See the Annual Report for more information.
Improving transparency for customers and the
markets we operate in
We are implementing a series of initiatives to enhance
transparency for our retail customers. These include
technological solutions, changes in the way we develop
product propositions through to more disclosures on our
customer service and complaint levels.
Responding to customer needs
We are determined to rebuild trust in Barclays and
demonstrate day-in day-out that we are changing, and
doing the right thing for customers. In September, we
launched Your Bank – the online platform that allows us to
continually listen, respond, anticipate and learn from our
customers in the UK. We are committed to undertaking a
formal review of our overdraft charges in 2014, with a view
to making them simpler and more transparent. We have
already started pilots with the launch of text alerts in June to
customers that have exceeded their overdraft limit, which
would traditionally incur a £22 charge. The alerts give them
a one-day grace period to add cleared funds and avoid the
charge. In the ?rst three months, over 65,000 customers
avoided charges totalling over £1.4m, a response rate of
27 per cent. We are now looking at where else we can
implement text alerts as a next step. Of course this is a
cost to us, but it’s the right thing to do.
Customer onboarding
In order to improve the ability of customers to access
their accounts as quickly and conveniently as possible, we
have improved the account opening process by sending
customers text alerts to advise them of despatch of debit
cards and PIN codes and provide immediate registration for
mobile banking. Further improvements this year mean that,
for the ?rst time, we will be able to offer customers the
choice of receiving their account opening documentation
digitally rather than in paper format. We also introduced
an online tool so that customers can view the progress of
their cases, such as mortgage applications, in real-time at
their convenience.
Visit: www.barclays.com/annualreport
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Barclays PLC Citizenship Report 2013 | 27
Complaints
In August 2013 we took the decision to commit to
publishing complaints data quarterly, twice as often as
required by the regulator, and practised by other banks.
For the second half of 2013, total complaints excluding PPI
were down 31% to 91,812 (H2 2012: 132,520, H1 2013
91,215). Complaints including PPI were down 26% to
317,041 (H2 2012 427, 334, H1 2013 381,740). Alongside
this, we published an in-depth Spotlight report on
improvements we are making to current account security,
which was welcomed by Get Safe Online as a signi?cant
contribution to helping customers understand how to keep
their details safe.
Complaints data is available on our website.
Market transparency
In 2013, Barclays con?rmed its commitment to reporting
volumes and other aggregate data in its dark pool, LX®, on
a monthly basis. Dark pools are networks where large trades
can be made without the volume or price being openly
visible to anyone until the trade is done. Dark pools protect
traders by allowing them to buy or sell without running
the risk of other traders knowing what is happening and
putting the price up, or down, to take advantage of the
order. This underscores our belief that greater transparency
not only bene?ts our customers but the industry overall.
Our Tax Principles and approach to tax planning
We recognise that a balance is required between the
needs of our different stakeholders in determining how
we manage our tax affairs. These stakeholders include
our customers and clients, the communities we serve,
employees, shareholders, governments and regulators.
Like other companies, we have a duty to manage our tax
affairs responsibly.
In articulating our Tax Principles last year, we set out to
explain our revised approach to tax planning. Over the last
12 months those Tax Principles have proved an effective
framework, enabling us to support our clients and manage
tax planning on our own account responsibly.
Our Tax Principles ensure that any tax planning must:
• support genuine commercial activity;
• comply with generally accepted custom and practice,
in addition to the law and the UK Code of Practice on
Taxation of Banks;
• be of a type that the tax authorities would expect;
• only take place with customers and clients sophisticated
enough to assess its risks; and
• be consistent with, and seen to be consistent with, our
Purpose and Values.
Should any of these principles be threatened, we will not
proceed – regardless of the commercial implications.
In delivering on those principles, we take into account
whether tax planning is aligned with, and a natural part
of, the business or activities carried out by Barclays or
our clients.
Tax in?uences decisions about how we organise and run
our business, and about where we base our operations or
hold assets. Making these decisions is an integral part of
running a commercial organisation, and when tax is a
factor in deciding where or how we do business, we ensure
there is genuine substance to the activity we conduct in
each country.
Equally, where we are aware that a client is undertaking tax
planning that requires our involvement for it to be effective,
we consider a number of factors including the purposes
of the transaction. In addition, we seek to ensure that
our clients understand the implications of, and any risks
inevitably associated with, tax arrangements, which by their
nature can be both complex and long term. These checks
are helping to ensure that our involvement in tax planning
always supports genuine commercial activity.
We are sometimes required to make decisions that affect
our tax position but have no other impact on our business
– for example, choosing to make claims or elections under
tax law, or choosing between different forms of legal entity.
Such decisions must comply with all of our Tax Principles.
In delivering on our commitment that all tax planning
must comply with generally accepted custom and practice,
and be of a type that tax authorities would expect, we
maintain transparent and constructive relationships with
tax authorities around the world. Over the last year we have
con?rmed our continuing adherence to the UK’s voluntary
Code of Practice on Taxation for Banks. In doing so, we have
reasserted our commitment to applying the spirit, as well
as the letter, of the law and to an open and transparent
relationship with HM Revenue & Customs.
Tax can be complex, particularly for a large organisation
such as Barclays with a diverse client base, and there will
always be an element of judgement in determining the right
approach. The introduction of the Tax Principles has made a
real change to the way we approach tax, and they provide a
framework for managing that complexity. They help us as
an organisation to approach tax planning in a way that is
consistent with our Purpose and Values.
Taxes paid
One measure of our contribution to society is through the
total amount of tax we pay each year on our activities. We
paid £3,374m
1
of tax in 2013 relating to our own business,
including £1,558m
2
on our income and pro?ts. To be clear,
“We welcome greater transparency from Barclays about how it tackles its
top customer complaints. This is an important way to demonstrate it is
listening to customers and acting on their concerns.
We hope this encourages all banks to raise their game on complaints
handling, and we’d like to see them all go further by publishing complaints
broken down by product and setting clear targets to reduce the
proportion of complaints upheld by the Financial Ombudsman Service.”
Richard Lloyd, Which? Executive Director
28 | Barclays PLC Citizenship Report 2013
The way we do business
this excludes tax collected on behalf of governments from
payments made to customers, clients and employees; for
example, tax on our employees’ income such as PAYE in the
UK. In 2013, Barclays collected £3,044m of taxes on behalf
of governments.
Many commentators compare the corporate income taxes
paid in a year, in a speci?c geography to the pro?t generated
in that geography as a means of testing if the tax paid is
‘fair’. However, it is not possible to make this direct link
between pro?ts and taxes paid in any given year. The tax
due on pro?ts generated within a calendar year is very often
paid across multiple years; therefore, the taxes paid in a
year do not necessarily relate to that year’s pro?ts. What’s
more, the tax law in most jurisdictions allows losses to be
carried forward to reduce future pro?ts.
5
As a result of these
and other factors, there is usually a difference between
accounting pro?ts and taxable pro?ts, and also between
the accounting tax charge and the amount of corporation
tax paid.
The tax we pay is an important measure of our contribution
to society; but for the reasons noted above, it should not be
compared to our global pro?t ?gures that we report that
are measured under international accounting standards.
The accounting tax charge, being the amount of tax
accrued under those international accounting standards,
is the appropriate tax amount to compare to global pro?t
before tax. In our case, the tax charge of £1,571m in 2013 is
the relevant amount to be compared to the pro?t generated
of £2,868m in 2013 (as shown in the 2013 Barclays PLC
Annual Report), giving an effective global tax rate of 55%.
For a large multinational group like Barclays, there are many
in?uences on the accounting tax charge which can cause it
to vary greatly relative to accounting pro?ts and result in an
unexpected effective tax rate. See the 2013 Barclays PLC
Annual Report for further detail and explanation of the
effective tax rate in 2013.
We make signi?cant tax payments in developing countries,
which are often a major contributor to the overall tax
revenue in these countries. In 2013, we paid taxes of £426m
in Africa (including corporate income tax, social security
and VAT) and through our African operations continue
to contribute to the local economies both by providing
essential banking services and as a signi?cant employer.
Tax paid in the UK
Our pro?ts are taxed at the local tax rate in the country in
which the pro?ts are earned. For example, a signi?cant
proportion of the pro?ts we earned in 2013 were from our
operations in the US and South Africa and were subject to
tax in those countries, respectively, at the local tax rates.
Notes
1. Unless otherwise stated, ‘tax paid’, refers to ‘cash’ taxes paid to governments
in a given period, as opposed to the tax ‘charge’ for that period shown in
Barclays’ accounts
2. Includes corporation tax and withholding taxes, in accordance with International
Accounting Standard 12 (IAS12). Withholding taxes comprise the tax charged
on dividends or other income received which is typically paid at the point of a
distribution of pro?ts or other income from one territory to another and forms
part of the corporate income tax charge
3. Social Security – includes employer national insurance contributions
4. Other – includes, for example, property taxes
5. Accounted for as deferred tax under IAS12
6. This arises because banks, unlike non-?nancial services companies, can only
recover a small amount of the VAT incurred on the products and services
they buy
Other
4
Corporate
income tax
Social
Security
3
VAT
Bank levy
Tax paid globally (£m)
36
1,558
421
629
730
Asia Pacific
UK
Americas
Europe
(excl. UK)
Africa &
Middle East
Tax paid by region (£m)
128
1,425 430
681
710
Other
4
Corporate
income tax
Social
Security
3
VAT
Bank levy
Tax paid in the UK (£m)
55
440
35
421
474
The charts above show the different types of taxes paid in 2013 and the
regions in which they were paid.
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Barclays PLC Citizenship Report 2013 | 29
In the UK tax system, these foreign pro?ts generally are not
subject to further tax in the UK. Therefore, the amount of
UK corporation tax we paid cannot be compared against our
overall global statutory pro?t before tax of £2,868m in 2013.
In 2013, we made a tax loss in the UK and paid £55m in
UK corporation tax. We also paid £1,370m of other taxes
to HMRC including £440m of employer’s social security
payments, principally relating to National Insurance
contributions, £474m in respect of irrecoverable VAT
6
and £421m for the bank levy charge
7
.
Activities and taxes in offshore ?nancial centres
Barclays operates under the laws of low tax jurisdictions
for valid business reasons. In many of these jurisdictions,
we have substantial businesses. For example, we operate
full-service retail and corporate banking businesses in both
Mauritius and the Seychelles. In both cases we are one of
the leading banks in the country, having operated there
for more than 50 years. Closer to the UK, we also have
operations in offshore ?nancial centres, which are based
principally in the Isle of Man, Jersey and Guernsey, where
our Wealth and Investment Management division is a
long-term major local employer.
We have also historically incorporated companies under the
laws of jurisdictions, such as the Cayman Islands, because
local company law makes it easy and cost-effective to set
up and manage companies. Virtually all of the pro?ts
generated in these companies are subject to corporate tax
at the UK corporate tax rate. The total amount of pro?t not
taxed in the UK, in respect of all our entities incorporated in
low tax jurisdictions where we do not have a substantial
business, was less than £3m in 2013. We continue to have
an objective of reducing the number of entities that we
operate in low tax jurisdictions, but recognise that many
such companies have commercial purposes consistent with
our Tax Principles. The total number of companies that are
incorporated under the laws of low tax jurisdictions has
been reduced to 205 as at the end of 2013 (from 253 in
2012). As at 31 December 2013, we had 109 companies
incorporated under the laws of the Cayman Islands (with 10
of these in liquidation). We will still continue to do business
in tax jurisdictions which support genuine commercial
activity, with clients and counterparties able to assess the
risks, and where activity complies with generally accepted
custom and practice, for example in Luxembourg, where we
conduct some of our group and client funding activities and
manage equity ?nancing operations.
We welcome constructive debate on taxation policy, as
the payment of tax is an important element of the overall
economic contribution that responsible banking can make.
We believe governments should work together to adopt a
consistent global approach on tax reporting, which
establishes disclosure requirements and thresholds that
are proportionate. Any such requirements need to remain
focused on the ultimate objectives, both for governments
and for companies: clear and consistent tax policy,
accountability, transparency, and the ?ght against
corruption.
Public policy engagement
Rationale
As a bank with a physical presence in multiple locations
we recognise that we have a responsibility to engage
with policymakers, including governments, regulators
and industry groups. We engage in dialogue on issues
where we have a legitimate interest and where public
policy directly affects our business. We aim to ensure
that any communication undertaken is honest,
comprehensive and accurate.
For example, in Great Britain we meet with Members of
Parliament locally or in Westminster, and those in England
and Wales are provided with periodic updates on ?nancial
and economic metrics relating to their constituency. At a
national level we engage with Government representatives
on a wide range of issues. Later this year, we will begin
publishing a numerical breakdown of our meetings with
UK Ministers on our website.
Also this year, as part of our new disclosure policy, we
will begin publishing a range of content online, including
executive summaries of our responses to UK and EU
governmental consultations and position papers. On
occasions where these contain commercially sensitive
information, we will make necessary redactions.
Political donations
Barclays is a politically neutral organisation. In the UK we do
not make party political contributions. Barclays Africa Group
Limited (BAGL), in which we have a majority stake, does
make political donations to the major South African political
parties as part of its Democracy Support Programme,
although these will cease in 2014.
In the United States, Barclays does not make corporate
political contributions, although does provide administrative
support to a federal Political Action Committee (PAC)
funded by voluntary contributions of eligible Barclays
employees. All contribution decisions are directed by an
independent steering committee comprised of employees.
Agencies
Barclays retains the services of public affairs agencies in a
number of locations. They are employed for the purposes of
political monitoring and strategic advice. They are not used
to make representations to governments or policy makers.
This year, information on the ?rms we retain will be made
available on our website.
Trade associations
Barclays is represented on a large number of trade
associations globally. These associations work to represent
their members and shape industry’s response to issues and
interactions with Governments. We seek to be a supportive
and in?uential member of all associations we are members
of. However, given the breadth of many associations’
memberships, there are instances where we may take a
different perspective from that of the broader industry.
A summary of the key associations we are involved in
globally will this year be made available on our website.
7. The amount of bank levy paid in the year does not equate to the accounting
charge for UK bank levy, in particular because some bank levy payments are due
after the end of the accounting period.
30 | Barclays PLC Citizenship Report 2013
The way we do business
5. We will minimise our broader systemic risk to the
economy and society
Why is this important?
We must ensure that problems at
any one individual bank never again
pose a signi?cant threat for the
entire ?nancial system. Regulatory
authorities around the world have
been introducing reforms aimed
at increasing the resilience of the
banking sector and the wider ?nancial
markets and also putting in place the
powers, tools and capabilities to allow
any institution to fail without creating
systemic repercussions for the broader
economy and ?nancial system. The
term they use for this is ‘resolution’.
The signi?cant impact of the bank failures worldwide
resulting from the ?nancial crisis clearly demonstrated
the need for a global approach to reforming the banking
system. There is still much work to be done but signi?cant
changes have already been introduced to ensure a safer and
more robust banking system.
The Financial Stability Board (FSB) has been designated
by the G20 as the body responsible for coordinating the
delivery of the global reform programme. It has focused
particularly on the risks posed by globally systemically
important ?nancial institutions (G-SIFIs). A key element of
this programme is that G-SIFIs should be capable of being
resolved without recourse to taxpayer support. Barclays has
been designated a G-SIFI by the FSB. G-SIFIs will be subject
to a number of requirements, including additional loss
absorption capacity above that required by Basel 3
standards.
Resilience
The banking sector is considerably more resilient than it was
a few years ago. Several reforms and changes in regulation
have been made to lessen the chances of bank failure.
Banks have taken signi?cant steps to strengthen their
capital ratios and increase their liquidity to weather any
?nancial storms in the future.
Resolution
Aside from mitigating risk, other reforms have been aimed
at isolating and managing the impact if a bank does fail.
A certain number of international responses have been
taken to reform banks without recourse to the taxpayer.
The Financial Services (Banking Reform) Act 2013 enhances
the legislative framework for structural reform in the UK.
Retail banking will be ring-fenced from investment banking
activity, with the ring-fenced entity meeting capital and
liquidity requirements on an independent basis. It also
introduces to the UK (ahead of similar legislation expected
in Europe) a critically important resolution tool: ‘bail-in’.
In the event that a bank needs to be resolved, there would
be an initial stabilisation period in which liabilities could be
written down or converted into equity; this is known as
‘bail-in’. It is therefore expected that in a ‘bail-in’, any losses
in excess of those borne by shareholders would be imposed
on certain classes of sophisticated creditors instead of the
bank turning to taxpayers for support.
Visit: www.barclays.com/annualreport
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Barclays PLC Citizenship Report 2013 | 31
Barclays has also been at the forefront of the industry in
developing a Recovery and Resolution Plan (RRP): step-by-
step measures to deal with ?nancial stress, or ensure an
orderly resolution in the event that the bank reached the
point of failure. We continue to work with all relevant
authorities on these plans, and the detailed practicalities
of the resolution process. This includes the provision of
information that would be required in the event of a
resolution, in order to enhance the Group’s resolvability.
We made our ?rst formal RRP submissions to the UK
and US regulators in mid-2012 and continue to work
with the relevant authorities to identify and address any
impediments to resolvability. The second US resolution
plan was submitted in October 2013 and we anticipate
annual submissions hereafter.
In the UK, the Prudential Regulatory Authority (PRA)
published its RRP rules and guidance in December 2013
(effective 1 January 2014) and recovery and resolution
planning is now considered part of continuing supervision.
Removal of barriers to resolution will be considered as part
of the PRA’s supervisory strategy for each ?rm, and the PRA
can require ?rms to make signi?cant changes in order to
enhance resolvability. These include, among others, the
powers to require a group to: make changes to its legal
or operational structures (including demanding that the
group be restructured into units which are more readily
resolvable); limit or cease speci?c existing or proposed
activities; hold a speci?ed minimum amount of liabilities
subject to write down or conversion powers under the
bail-in tool.
Consistency and coordination
Barclays has been closely involved in developing the
measures above and remains steadfast in implementing any
outstanding reforms. We look forward to receiving greater
clarity on the detail of some reforms so that implementation
can move forward.
Globally, there is consistency in objectives: all jurisdictions
share the goals of aiming to make ?nancial services more
resilient and resolvable. In the context of bank resolution,
the FSB showed helpful leadership through publication of its
Key Attributes for effective resolution regimes in November
2011, and these are in the process of being adopted across
the G20 (in Europe through the Recovery and Resolution
Directive, which is expected to be implemented in 2015).
Consistency on structural reform is still emerging across the
different jurisdictions:
• Section 165 of the Dodd-Frank Act in the US
• The Vickers / ICB Ring-fence in the UK (as part of the
Financial Services (Banking Reform) Act 2013)
• The EU Bank Structural Reform proposals (following the
Liikanen report), published in January 2014
We are optimistic that, in 2014, the banking reform agenda
will have reached a place where – implementation timelines
aside – the major objectives, as set out by the G20 nations,
will have largely been achieved.
Banks will then require clarity of detail to implement reforms
effectively and in a timely and ef?cient manner. This will
give the banking sector the structure it needs to ful?l its
responsibilities in supporting economic growth.
32 | Barclays PLC Citizenship Report 2013
Progress update
Contributing
to growth
Deliver product and service solutions to
help more people and society progress
in a sustainable way
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Lending to households
£34bn
New and renewed lending
to households See page 34
Lending to SMEs
£13.4bn
New and renewed lending to small
and medium sized enterprises See page 34
Financing for businesses and governments
£840bn
Assist in raising ?nancing for
businesses and governments See page 34
Supporting small businesses
59,000
SMEs supported with seminars, tools
and training See page 38
Youth employability
667
Apprentices at Barclays in the UK
See page 40
34 | Barclays PLC Citizenship Report 2013
Contributing to growth
6. We will leverage our products, capital, networks
and expertise to drive sustainable progress
Why is this important?
By supporting our customers and
clients and working in partnership
with other stakeholders we can create
an environment in which individuals,
institutions and governments are able
to invest in sustainable progress and
enable growth.
To achieve long-term sustainable economic growth, a
number of policy challenges must ?rst be addressed,
including: raising employment, improving access to housing
and supporting families in planning for their futures. All of
these goals rely on access to appropriate and responsible
?nance.
In addition, new solutions to help tackle social and
environmental challenges also need access to appropriate
?nancing to help innovate, develop, commercialise and
scale deployment.
Supporting households and businesses
We are on-track against our Citizenship Plan commitments
to deliver £150bn of new and renewed lending to
households and £50bn to SMEs by the end of 2015.
More broadly, we continue to be a major provider of
personal and housing ?nance and have helped deliver
the UK Government’s policies to improve the lending
environment. We delivered £1.4bn of net new lending in
Q4 2013 under the Funding for Lending Scheme (FLS),
with a total of £8.1bn in net new lending delivered since
the scheme’s inception. We provided £88bn of FLS-eligible
gross new lending to UK households and businesses
in 2013.
Barclays’ Cashback for Business scheme offered to pass on
the funding bene?ts of the FLS to our customers. During
2013, we provided £1.7bn in lending with a total cashback
of nearly £36m. We held a number of meetings between
credit of?cers and SME clients, which were supported by
nearly 63,000 hours of training delivered to 3,000
colleagues to build con?dence on lending.
In October 2013, we were the ?rst bank to offer business
customers ‘pre-approved’ overdraft facilities and loans.
This service helps businesses to manage cash-?ow issues,
largely seen as one of the main catalysts behind the
closure of small businesses in the UK. We know that small
businesses face a number of challenges, including access
to ?nance, managing late payments, and understanding
regulatory obligations.
The FLS, and the wider interest rate environment, has
supported the personal lending and mortgage markets
with lower borrowing costs for customers. We welcome
this support but believe it must be matched with reforms
to the supply of housing across the country.
We listened to the problems faced by ?rst-time buyers and
launched the Family Springboard Mortgage in January 2013.
As an inter-generational mortgage, it lets relatives use their
savings to help family members make that important ?rst
step on the property ladder. We have also offered some of
our lowest ever ?xed rate mortgages to pass on the bene?ts
of current low interest rates to customers.
Key performance measures
£34bn
New and renewed lending to households (2012: £33.4bn)
£13.4bn
New and renewed lending to SMEs (2012: £11.1bn)
£840bn
Assist in raising ?nancing for businesses and governments
(2012: £830bn)
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Barclays PLC Citizenship Report 2013 | 35
We also joined the UK Government-backed Help to Buy
mortgage schemes to help customers get onto, or move
up, the housing ladder. The ?rst part of Help to Buy is an
equity loan scheme which went live in April 2013; it allows
customers in England with smaller deposits to buy a
new-build property with the assistance of an equity loan
from the government. Since then, Barclays has also been
the ?rst to join similar equity loan schemes that have
been launched by the respective governments in Scotland
and Wales.
From January 2014, we have offered products under the
mortgage guarantee side of Help to Buy, allowing ?rst-time
buyers and home movers, who are unable to raise the larger
deposits needed, to purchase a new-build or an existing
property across the whole of the UK.
Another positive trend this year has been the increased
transparency in the lending markets. Barclays is part of a
wider industry project to share data on lending activity by
postcode. This project, focusing on SME lending, mortgages
and personal ?nance, has carefully balanced the importance
of protecting individual customers’ data with offering an
overview of where ?nance is most used.
We are increasingly optimistic about the next few years in
the economy. We will continue to contribute to economic
growth and work hard to offer responsible lending,
innovative services and skills support to help our customers
achieve their ambitions.
Increasing access to ?nancial services
We are committed to increasing access to ?nancial services
in our core markets in Africa and the UK. In Africa, we
implemented a branchless banking model to expand access
and pioneered remote account opening and servicing. In
2013 we continued to innovate towards an ef?cient and
affordable banking experience which is comprehensive
and easy to understand for low-income individuals,
micro-enterprises and those who have limited or no access
to formal ?nancial services. We look to deliver an inclusive
offering through our existing banking channels. Our in-store
banking service at over 1,000 merchant partner sites allows
customers to deposit and withdraw money, check balances,
obtain mini-statements and buy pre-paid airtime.
Developing innovative products
Barclaycard Ring
Ring is the ?rst ‘crowdsourced’ credit card based on a
simple, transparent and fair business model. With a
low APR and ?nancial stats published monthly for the
community, it’s a product that empowers cardmembers to
participate in the community, learn about ?nancial health,
submit and vote on new ideas, get involved in charity
campaigns and share in the product’s success through
the Giveback programme.
Creating new products for sustainable investors
Barclays and analysis ?rm MSCI Inc. have launched a
global family of Environmental, Social and Governance
(ESG) Fixed Income Indices – the ?rst of its kind. The
indices are designed to serve as benchmarks for the
growing number of bond investors who want to buy debt
from companies and governments that are seen to be
environmentally and socially responsible.The indices will
?ll a critical gap in the market by providing investors
who have ESG commitments, such as United Nations
Principles for Responsible Investing signatories, with a
comprehensive series of performance benchmarks.
Ethical fund for charities
In 2013, we launched a Charity Fund designed for UK
charities. The Fund accesses some of the world’s leading
investment managers and has an ethical investment
strategy; for example, it does not have direct exposure to
companies that generate more than a small proportion
of their turnover from tobacco, arms, pornography and
gambling. Aimed at long-term investors, with a time
horizon of ten years plus, the Fund seeks to provide a
sustainable level of income, together with the prospect of
growth in both capital and income through investment in
a diversi?ed portfolio of assets.
36 | Barclays PLC Citizenship Report 2013
Contributing to growth
We developed the Barclays Motshelo account in 2012. This
product was developed for informal and household savers
and recognises group savings as an easier savings option
towards achievement of a common goal. The account has
been very popular, registering more than 1500 accounts
(15,000 customers).
We are also partnering with other stakeholders on a Charter
for Financial Inclusion. Please see the Banking on Change
case study on page 45 for more information.
In the UK, we offer the Barclays Cash Card Account as a
basic bank account. We have been working closely with
government and consumer stakeholders to agree minimum
standards for basic bank accounts, such as: customers to
manage their account online, in branch or over the phone;
set up direct debits and standing orders; have full LINK ATM
access; and have a debit card.
We also support the community ?nance sector to grow
and become more sustainable; for example, by providing
more affordable loans in communities where there is a
strong reliance on illegal loan sharks and high cost credit.
The Barclays Community Finance Fund has awarded
funding of up to £50,000 each to 26 projects since 2010,
helping increase the capacity of existing community ?nance
providers to provide more products and services to reach a
larger number of vulnerable people.
In order to improve accessibility, we are working with
organisations such as Royal National Institute for the Blind,
Action on Hearing Loss and Alzheimers Society to get
insight into the needs of the groups they represent and
to test our ideas. The Business Disability Forum named
Barclays best service provider and overall winner of the
Disability Standard 2013. We were the ?rst bank to
commit to accessible ATMs for blind and visually
impaired customers.
Raising capital for businesses and governments
We provide ?nancing, risk management and advisory
services to help corporate clients create jobs and grow their
businesses, institutional clients to meet the investment
needs of an ageing population, and governmental clients
to fund public services and infrastructure.
We raised over £840bn in ?nancing for businesses and
governments in 2013, including £240bn for governments
and public sector entities.
Banks play a key role in enabling the ?ow of capital towards
environmentally or socially bene?cial activity. A range of
business lines across our ?rm are actively involved in
delivering solutions across product groups, geographies
and industry sectors.
Financing social projects
The Public Sector Group raises capital for governments,
supranationals, development banks and other public sector
entities to provide solutions to governance, social and
environmental issues, among others. The team ?nanced
over US$230bn in 2013, including US$6bn via a two- and
seven-year dual tranche benchmark for the World Bank,
€3bn 20-year benchmark bond issuance for the European
Investment Bank and £5bn 55-year In?ation Linked bond for
the UK Debt Management Of?ce.
Our US Public Finance team provides essential ?nancing
to higher education, infrastructure, healthcare, housing
and public power issuers. In 2013, the team ?nanced over
US$12.5bn, including a landmark US$2.5bn bond offering
for the University of California and a US$2.3bn bond
offering for Foothill/Eastern Transportation Corridor Agency.
Barclays’ securitisation team acted as Structuring Advisor in
a ?rst-of-its-kind, credit-rated US$152m bond securitisation
for Social Finance Inc. (SoFi). SoFi is a peer-to-peer lender
that re?nances loans for graduates of approximately 100
of the most prestigious colleges and universities in the
United States.
A growing number of one-person households means that
the demand for social housing continues to outstrip supply
in the UK. Barclays is committed to supporting the sector
and helped arrange £639mr of bond ?nancing for social
housing providers in the UK in 2013.
Financing environmental and clean energy projects
In 2013, we helped direct £4bnr of ?nancing in the clean
energy and clean technology sectors globally. We delivered
landmark transactions that will build the future ?nancing
landscape, including diversifying the investor base and
improving access to the bond markets for ?nancing clean
energy projects. For example, Barclays acted as joint book
runner on a landmark US$1bn senior secured notes offering
in June 2013 for Solar Star Funding, the largest ever
single-tranche renewable energy project ?nancing in history.
We also helped a number of other ?rms issue debt,
including a US$613m senior secured notes offering for
Continental Wind, an owner of several wind generation
projects in the US, and a US$319m senior secured notes
offering for CSOLAR IV South, LLC.
We were also active in helping list clean energy and clean
technology companies on the public markets. This included
the £244m initial public offering (IPO) for In?nis Energy,
a leading independent renewable energy generator in
the UK and the £252m IPO for Greencoat UK Wind, an
infrastructure investment fund managing a portfolio of
onshore and offshore wind farms in the UK. This transaction
represented the largest ever UK IPO in the renewable
energy sector.
r Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 37
Social Innovation Facility
The Barclays Social innovation Facility, launched in
2012 with a £25m commitment, exists to accelerate the
development of commercial solutions that directly
address social challenges. Uncovering, developing and
scaling these solutions often requires challenging the
way we think about our business models, investing in
new technology or testing new, often unconventional
partnerships and distribution channels.
The Social Innovation Facility has currently committed
over £9m to support the development of new propositions
across seven countries, representing the full spectrum
of business areas. The current portfolio of 12 projects
is developing and testing market based solutions
that address a range of social challenges, working in
collaboration with clients, NGOs and other stakeholders.
Affordable healthcare in Africa
Barclays and GSK are investing up to £7m over three years
to help remove ?nancial barriers to healthcare access,
while supporting small business development and job
creation in Zambia. By combining our skills, expertise and
resources, we hope to tackle the challenges of last mile
delivery and create a model that could be scaled across
Africa to help more people access affordable healthcare.
Access to education in the United States
Insuf?cient planning and saving for college presents a
signi?cant barrier for many students, particularly those
from low-income households. In response, Barclaycard US
is collaborating with public and private partners to help
students access college resources, connect with mentors
and advisors, and establish a college savings account.
Extending access to basic ?nancial services
Barclays in Uganda has partnered with non-pro?t
organisations Grameen Foundation and CARE
International to create innovative technologies and
mobile phone-based ?nancial products that are relevant
and accessible for disadvantaged communities.
Using in-depth research and on-the-ground testing,
the partnership leverages the expertise of the Grameen
Foundation Application Laboratory, to develop mobile
applications that help connect the informal community
?nance groups to the mainstream ?nancial sector
through commercially viable and scalable propositions.
Our Corporate Bank provides a range of ?nancing facilities
for clients active in the sector. Transactions in 2013 included
loan facilities to help ?nance a number of solar PV parks
based in England and a 22.5 MW wind project in South
West Wales.
Working in partnership with our Social Innovation Facility
(see case study), the Corporate Bank also provided a £1m
loan to Azuri Technologies, a UK-based company that
distributes pay-as-you-go solar power units in sub-Saharan
Africa, helping to transform the lives of thousands of people
in rural areas. Azuri has combined solar and mobile phone
technologies, enabling users in off-grid markets to avoid
unaffordable upfront costs and, instead, pay for their solar
electricity as they use it.
As the African clean energy revolution gathers pace,
we have worked with project sponsors, investors and
government agencies and provided 5 billion Rand (£328m)
of debt funding for four projects announced in the
South African government’s renewable energy
procurement process.
Social
Need
Corporate
Assets and
Expertise
Business
Opportunities
Social
Innovation
Opportunities
38 | Barclays PLC Citizenship Report 2013
Contributing to growth
Key performance measures
59,000
SMEs supported with seminars / tools and training
(2012: 36,000)
Why is this important?
Small and medium enterprises
(SMEs) are vital to the economy.
By helping these businesses to start
up and grow, we can contribute
to wider prosperity. We will work
to better understand the needs
of start-up and small businesses
that we serve and support them
with access to markets, suppliers
and expertise.
7. We will help more businesses to start up and grow
As a major bank we are committed to identifying and
nurturing the highest potential businesses, those most
able to deliver growth and jobs, while still ensuring the
wider SME community has the support they need to grow
and prosper.
Patient capital
We are working with the Government to identify ways of
enhancing the UK’s risk ?nance sector, to create a world-
leading environment for funding innovation and start-ups.
We believe that traditional bank lending will be improved
by proper equity support for these companies.
Exporting
Barclays’ research suggests the average business must
begin exporting after four years in order to achieve
signi?cant growth; this is largely a result of over-saturated
domestic markets and could be a catalyst for the stall in
business growth in the UK. We have created a range of
support and ?nance products to help companies gain a
foothold in overseas markets and begin their journey as
an exporter.
Products to help small businesses
Over 120,000r start-up businesses began a banking
relationship with Barclays in 2013, up from 112,000 in 2012.
In addition, Barclaycard launched an initiative to help
smaller businesses and start-ups access payment solutions
in the UK. This is a simple, commitment-free proposition
that enables small businesses to trial the solution and
return it free of charge within the ?rst six months should it
not work for their business. By designing the service around
small business needs, we have seen strong results, with the
conversion of interested businesses to customers more
than doubling.
Supporting SMEs with seminars and training
In order to help businesses gain con?dence we have
provided more than 59,000 people with business advice
and support through seminars, tools, clinics and workshops.
This consisted of over 24,000 people in the UK and more
than 25,000 attendees at small business support seminars,
trainings and workshops in South Africa. Additionally, over
20,000 SMEs are registered on our Procurement Portal in
South Africa, which is designed to make SMEs visible to
corporate buyers. Corporates can search for speci?c
suppliers in a particular region, of a certain pro?le and
with a particular capacity. The Procurement Portal also
encourages corporates to buy more services and products
from SMEs, facilitates ?nancial independence and offers
a range of non-traditional funding solutions.
Building alternative ?nancing options for
high-growth ?rms
We believe that long-term risk ?nance outside the
traditional banking sector, such as equity, is fundamentally
r Within KPMG’s limited assurance scope. Please see page 49.
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Barclays PLC Citizenship Report 2013 | 39
important to supporting high-growth businesses. We are
working with the government and wider industry to identify
ways of growing alternative sources of ?nance, and
establish a funding environment as diverse as the growth
businesses it supports.
In 2013, we helped Cambridge Innovation Capital (CIC)
raise £50m through an equity private placement in the UK.
CIC will support the growth of innovative businesses based
in the Cambridge Cluster by investing long-term equity
?nance to help companies bridge the critical middle stage
of commercial development, the so-called ‘valley of death’.
Barclays also has around £600m of existing investments
designed to support growth companies in the UK. This
includes Business Growth Fund (BGF), which invests
long-term capital in growing SMEs; our £50m investment
in Big Society Capital, which is helping build the social
investment sector; and smaller investments in a range of
Regional Venture Capital Funds.
We are also collaborating to increase insight about the
SME sector. The Barclays and BGF Entrepreneurs Index
analyses a number of data sets to provide a snapshot of
entrepreneurial activity in the UK - from start-up, through
growth, to the point of liquidity where wealth is created.
Results showed that the number of start-ups and high-
growth companies has climbed in the past year in the UK.
Supporting social enterprise
Barclaycard has been working in partnership with Leaders in
Community (LIC) for almost two years, providing a range of
support activities, including business planning, marketing
and board restructure to name a few. LIC have set up a
commercial and social enterprise consulting arm, with the
purpose of employing the young people they train through
the charity. They also offer community based services to
housing associations and other government departments
based on their experience of working with young people.
Since work began, the team has created a self-funding
mechanism for the business and now understand what
they need to recover each year to break even. We have
also developed a pricing model to help them eliminate
the risks of undertaking projects at a loss and outlined a
structure for their bid proposals to increase the chances
of winning tenders.
Supporting the next generation
of technology start-ups
Barclays has established a hands-on partnership right in
the heart of London’s Tech City. As the ?rst ?nancial
services organisation to support this start-up eco-system
– the partnership is de?ned by its long-term commitment
through a ?ve year collaboration with Central Working.
This provides a club tailored to the needs of start-ups
and inbound overseas businesses. In addition to
infrastructure and support, the businesses have access
to the knowledge and expertise of Barclays’ employees
and to business banking advice. The aim is to support
innovative start-ups by providing a collaborative working
environment to support rapid business growth.
In the ?rst year of the partnership, nearly 300 new
businesses have joined Central Working and 230 new
jobs have been created with member companies
demonstrating economic growth. A series of events have
been led by Barclays, including free seminars on a range of
business topics and a ‘hackathon’ to develop innovative
technological tools that support accessibility requirements.
Through the partnership, Barclays has also procured
young, innovative small businesses into its own supply
chain, furthering its commitment to supplier diversity.
James Lay?eld, Co-Founder of Central Working, said:
“We have been incredibly impressed at just how true a
partnership we have with Barclays. The most powerful
part has been the openness of the relationship, we really
are a partner to Barclays. That such a vast organisation
can work so collaboratively with an SME, Central Working,
is testament to something very special happening inside
that bank.”
Visit: www.barclays.com/annualreport
“Our partnership with Barclays has not only enabled us to expand but it
has also enabled us to help hundreds of other SME businesses to thrive
and grow in the last year”
James Lay?eld, Co-Founder of Central Working
40 | Barclays PLC Citizenship Report 2013
Contributing to growth
Key performance measure
667
apprentices
1
at Barclays in the UK (2012: 486)
Why is this important?
Youth unemployment has become a
global issue. In the UK alone, those not
in employment, education or training
(known by the acronym NEET) is at a
record high. As a global employer, we
can help equip young people for the
workplace and give them the skills
they need to succeed. We can achieve
this by offering opportunities at
Barclays and working with partners to
support wider employability initiatives.
8. We will improve youth employability
Apprenticeship programme
Barclays currently delivers an industry leading
Apprenticeship programme.
1
The programme extends
across our UK operations and aims to support the most
disadvantaged young people into work. Having already
surpassed our goal to deliver 1,000 apprenticeships by
2013, we now aim to deliver a further 1,000 apprenticeships
by 2015, and launch the programme across the UK to
include specialist roles such as Digital, HR and Marketing.
The ‘Grow with Barclays’ framework builds on this success
by providing a clear development journey for apprentices,
while opening up structured learning opportunities for
existing colleagues early in their careers. Grow with Barclays
will provide continued training and support for early career
development with recognised professional quali?cations
and lead onto other existing Barclays programmes, such
as the Future Leader Development Programme (FLDP).
LifeSkills programme
LifeSkills is our free, curriculum-linked education
programme launched in March 2013. A growing consortium
of schools, students and businesses are collaborating to
give young people the employability skills and opportunities
to realise their full potential.
LifeSkills is divided into three modules – People Skills,
Work Skills and Money Skills – taught both in school and
online. Work experience is also an important part of the
programme. Students between 14-17 who complete
LifeSkills in school or who earn points online are eligible
for work experience opportunities at Barclays and other
participating businesses in the UK.
As part of the LifeSkills programme, Barclays is also
partnering with the British Hospitality Association (BHA),
to support its goal of creating 60,000 new jobs in the
sector by 2015. Together we will use our collective power
to help young people get ready for work, and ?nd quality
apprenticeships and job opportunities.
Since May 2013 the programme has been taught to over
250,000 young people. Thousands of teachers and
hundreds of organisations have signed up and the feedback
so far has been extremely positive. We are currently working
with The Work Foundation to thoroughly measure the
impact of the programme and pinpoint areas for growth
and further development.
1. This includes all participants to our early careers programmes (apprentices and
trainees) where the goal is to support youth employment in the markets in which
we operate and providing skills, access and career paths for young people who may
previously have been excluded from the workplace.
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Barclays PLC Citizenship Report 2013 | 41
AFTER programme
Now in its third year, The Barclays Armed Forces Transition
Employment and Resettlement (AFTER) programme aims
to help Military Service Personnel transition into civilian
employment upon medical discharge or retirement. The
programme was set up as a partnership with the MoD and
four service charities: ABF – the soldiers charity; Help for
Heroes; Parachute Regiment Afghanistan Trust; and The
Royal British Legion. By the end of 2013, the programme
had supported 1,864 service personnel.
Barclays has invested £1m in education and vocational
courses and pledged to raise a further £1m through
colleague fundraising by the end of 2014. Our Money Skills
programme held 39 workshops for 390 injured personnel.
Skills Bank, delivered by Barclays volunteers, bene?tted
a further 100 injured personnel with a two day CV and
interview skills workshop.
Beyond the skills training and investment, we are
committed to helping military personnel transition into
civilian employment by offering work experience and
hiring the most dedicated candidates. There were 76
military personnel placed or hired in 2013. In November,
we launched a pilot military work placement scheme
and are now actively seeking early service leavers for
apprenticeships and degree programmes, with 200
applications received so far.
“I found the CV workshop very useful, the Barclays Team helped me a lot
and I feel more con?dent now creating a CV and writing a covering letter”
Feedback from a student at Duston School, Northampton
Jane Forster
Apprentice
“ Barclays treats us all really fairly and I would
de?nitely be looking to progress in the future!”
The opportunity of an apprenticeship became available
within our branch networks at the Durham Branch in the
North of England.
Jane is visually impaired and chose to apply to Barclays
directly rather than through any charity she had
previously worked with.
The Early Careers Team Operational Specialist for the
region, the Reasonable Adjustments team, and Solutions
Trainers worked closely with the business area to discuss
practical aspects of the day to day procedures of the
banking hall, such as keeping access routes clear, and
remembering to inform Jane if things had been moved.
Reasonable adjustments such as electronic magnifying
glasses and computer systems screens were amended
to assist Jane as much as possible in her day to day
business. AXA continue to be informed throughout to
ensure that all of Jane’s needs are met throughout her
career and that we keep up to date on any changes in
Jane’s disability.
Both the assessment and on-boarding was aligned
as closely as possible to our standard process.
Arrangements were made to ensure that Jane had
easy access to the interview room and that she was
fully assisted within the building throughout. For the
on-boarding, all ‘Welcome to Barclays’ documents and
training material were enlarged to ensure that Jane
could see them using her electric magnifying glass.
Visit: www.barclays.com/annualreport
LifeSkills
External Advisory Council
The success of LifeSkills depends to a large extent on
how well the programme is able to unite different
stakeholder groups. To ensure that the programme is
both informed and led by the needs of these groups,
the LifeSkills Advisory Council was created. Meeting
bi-annually, the Council brings together key in?uencers
in education and business to identify and examine
the issues young people face when moving from
education into employment, and crucially, to make
recommendations for improvements within the LifeSkills
programme and beyond. A broad range of viewpoints
leads to effective discussions on the best way to develop
and deliver activity. The Council has met twice since the
programme’s launch. Representatives from the CBI, FSB,
Education and Employers Taskforce and the Association
of Teachers and Lecturers sit alongside businesses such
as McDonald’s and Centrica and charities Transformation
Trust and Free The Children.
Key Council recommendations that have been delivered
so far, include; the programme providing external
recognition for young people participating in LifeSkills
through a City & Guilds endorsement; the extension of
the programme to FE colleges; and the development of
materials to promote the work of participating schools
and businesses in Barclays branches, which will be
delivered later in 2014.
42 | Barclays PLC Citizenship Report 2013
Progress update
Supporting
our communities
Helping ?ve million disadvantaged
young people to develop the enterprise,
employability and ?nancial skills they
need to ful?l their potential
Credit: Jon Spaull/Banking on Change
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Barclays PLC Citizenship Report 2013 | 43
Investment in the community
£72m
Invested in our communities around the world
See page 44
Bene?ciaries
1.22m
10 to 35 year olds reached through our programmes
See page 44
Employee participation
49%
Employees involved in Barclays’ volunteering, fundraising and
giving activity with Barclays’ support See page 44
Volunteer hours
447,000
Hours employees have volunteered in Barclays’ community
programmes See page 44
Fundraising and giving
£35m
Donated to charities through Barclays’ matched fundraising and
giving programmes (this includes both the funds raised and
donated by employees as well as Barclays’ matching contribution)
See page 44
44 | Barclays PLC Citizenship Report 2013
Supporting our communities
9 &10. We will help build the enterprise,
employability and ?nancial skills of
?ve million disadvantaged young people
Key performance measure
£72m
Invested in our communities (2012: £64.5m)
As part of our 5 Million Young Futures ambition we are
working alongside leading charity and NGO partners to help
disadvantaged young people develop the skills they need to
ful?l their potential. We have committed to invest £250m by
2015 and encourage colleagues to volunteer their time and
skills. Since 2012, 2.43million young people have bene?tted
from our programmes and we have invested £136.5m.
Our community programmes fall into three categories:
• Enterprise skills: Equipping young people with the
knowledge and support to set up their own business
or income-generating activity
• Employability skills: Teaching young people valuable
work skills to enhance their future job prospects through
job training, literacy and numeracy programmes
• Financial skills: Helping young people to manage
their money more effectively and make sound
?nancial decisions
The direct efforts of our employees ensure that the positive
impact of our community investment goes beyond our
?nancial contribution. In 2013, more than 70,000 colleagues
around the world invested their time, skills or money to help
our communities.
Thousands of employees also unite every year during our
annual volunteering campaign ‘Make a Difference Day’.
This year colleagues at all levels from around the world
took part in many ways, sharing their skills and knowledge.
Activities included reviewing CVs, running mock interviews
and advising young entrepreneurs.
Employee participation in community programmes 2013
Total of unique employees participating in Barclays’
volunteering, fundraising or giving programmes 71,000
Total number of volunteering hours 447,000
Total amount raised through fundraising and giving £35m
Total number of events receiving matched fundraising 21,000
Why is this important?
Almost 75 million young people
around the world were estimated
to be out of work in 2013 (one in
eight). With a global network of
approximately 140,000 employees in
50 countries, we can play an active
role in addressing the needs and
challenges of the communities we
serve. We are helping to build the
enterprise, employability and ?nancial
skills of ?ve million disadvantaged
young people.
Invested in our communities
%
83
7
10
Volunteer time contribution Cash Management costs
1.22m
10-to-35 year olds reached through our programmes
(2012: 1.21m)
2013 highlights
221,000 supported in receiving enterprise skills training
77,000 received employment skills or job training
9,000 secured work placements or internships
235,000 helped with literacy and / or numeracy support
893,000 receiving ?nancial skills support
20,000 started a business or income generating activity
6,400 achieved employment
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Barclays PLC Citizenship Report 2013 | 45
Banking on Change
Enterprise and Financial skills
Banking on Change, a Clinton Global Initiative
Commitment made by Barclays, Care International UK
and Plan UK, gives people in some of the poorest
communities the skills to take control of their ?nancial
future. Through informal savings groups, they can manage
their money effectively, increase their assets and invest
in their own small businesses, as well as afford better
access to education and healthcare. More than 50,000
young people have received ?nancial skills training since
the launch of phase two of the programme in 2013.
Following an investment of £10m between 2009 and 2012,
Barclays has pledged a further £10m between 2013 and
2015. The programme operates in Egypt, Ghana, India,
Kenya, Tanzania, Uganda and Zambia and aims to link
5,000 groups to formal banking services by 2015.
Former US President Bill Clinton visited a village savings
group in Tanzania and saw ?rst-hand how members had
bene?ted from Banking on Change. In addition to gaining
?nancial skills, many community members took part in
small business training, giving them skills and knowledge
to establish and sustain their own micro-enterprises.
Photo credit: Max Orenstein / Clinton Foundation
Zainabu’s story
Banking on Change helped Zainabu Rashid, 22, save
up enough money to rent her hair salon in Tanzania.
Through the savings group, she was able to take out
a loan and buy the equipment she needed. She said:
“I’d always dreamt that I would have my own salon
and even my own chain of two, three or four and
employ other people to work in them. Now I believe
that could be possible. I feel that I am now the mistress
of my own destiny.”
Global
TechnoServe, South Africa
Enterprise skills
Barclays has invested more than £330,000 in TechnoServe
since 2012. The partnership works with enterprising
people to promote the growth of South Africa’s SME
sector through agri-enterprise programmes. In addition
to providing technical and enterprise training, it creates
tangible business opportunities for farmers and other
entrepreneurs, linking them to ?nance and markets.
TechnoServe is currently working with 100 agri-enterprises
with the aim of creating 300 sustainable jobs. Barclays’
employees also provide mentoring support to the farmers,
with a particular focus on strategic and ?nancial planning.
Africa
Ephraim’s story
With just ten hectares of land and no access to funding or
advice, Ephraim Tsatsi struggled as a self-suf?cient farmer.
He began working with TechnoServe in March 2012 and
quickly received advice to help run his business more
ef?ciently. “The commitment of the advisors has really
helped motivate me and the AgriPlanner training also
contributed a lot in terms of improving my skills in farming.
I employ people from my community and they also buy
vegetables from the project. This project will bene?t me
with marketing of the produce we grow, production
support from Absa and technical and business support
from the TechnoServe programme. I can only see myself
growing from this.”
46 | Barclays PLC Citizenship Report 2013
Supporting our communities
Endeavor
Enterprise skills
Endeavor works with entrepreneurs in growth and
emerging markets to build a vital support network to help
their businesses succeed. It has already helped nearly
1,000 entrepreneurs create approximately 225,000
high-wage jobs. It plans to add at least 1% to the Gross
Domestic Product in every country where it has a presence.
Barclays has invested £1.2m in Endeavor since the
partnership began in 2010. Senior leaders across the
organisation have selected candidates to become
Endeavor Entrepreneurs at selection panels throughout
the year. They also serve as mentors and speak at various
Endeavor summits and events.
Bedriye’s story
Bedriye Hülya, who was selected as an Endeavor
Entrepreneur in 2009, established the country’s ?rst
chain of female-only gyms. She has steadily grown
the business – franchising exclusively to other women
– creating over 200 gyms. Joe Gold, Barclays Managing
Director, held a mentoring session with Bedriye at
Endeavor’s Global Acceleration Panel in 2012. Joe
advised her on business strategies including leasing
the equipment instead of purchasing it to free up
capital. Taking this advice Bedriye was able to add
40 new gyms to her franchise. She was named
Schwab Social Entrepreneur of the Year in 2013.
Asian Women’s Welfare
Association (AWWA), Singapore
Employability and Financial skills
Since 2012, Barclays has invested over £120,000 in Asian
Women’s Welfare Association (AWWA) EXCELerate
Services. The programme aims to equip disadvantaged
young adults with vocational education and training.
Barclays invited bene?ciaries to our Singapore of?ce to be
mentored by Barclays’ employees, which included career
preparation and savings planning workshops. In 2013,
more than 81 bene?ciaries were supported through the
programme, with more than 40 young adults gaining
successful employment.
Lalitha’s story
The AWWA EXCELerate programme, and her mentor
Rali, provided Lalitha with the motivation, support
and goal-setting strategies she desperately needed.
Lalitha said: “It propelled me forward which helped
me to overcome the challenge, with the support from
my family and loved ones. I’ve looked up to [Rali]
as a special person who I could really open up to,
without having to feel uncomfortable. I know that
I can look for her if I needed help”. Lalitha is now
on track to complete her coursework and realise
her career ambitions.
Americas
Asia Paci?c
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Barclays PLC Citizenship Report 2013 | 47
Faz-Te Forward, Portugal
Employability skills
Since 2012, Barclays has invested £65,000 in Faz-Te
Forward, a partnership between Barclays and Associação
para o Desenvolvimento, which aims to tackle the
growing problem of youth unemployment in Portugal.
The programme is designed to give underprivileged
young adults, who have either completed education
or had a professional quali?cation, the best chances
of securing employment.
Providing a unique combination of soft skills training,
coaching and job shadowing, Barclays’ employees support
the delivery of skills workshops as well as provide work
experience opportunities. After a year-long course, there
were 60 bene?ciaries that signi?cantly improved their
employment prospects. At the end of 2013, 16 young
people successfully found jobs or internship opportunities.
Street League
Employability skills
Street League’s mission is to ‘Change Lives through
Football’ by engaging underprivileged young people,
aged 16 to 25, in the classroom and on the ?eld. This
intensive eight-week Academy programme develops
communication, teamwork and goal-setting skills,
while offering nationally recognised quali?cations.
In addition to the £825,000 investment since 2011,
Barclays’ volunteers have engaged in Street League
activities across the UK to support young people
with limited access to training or education, including
offering CV support, mock interviews and con?dence
building techniques.
Europe
UK
Mariana’s story
Mariana Burguette struggled to ?nd employment
due to low self-con?dence. Faz-Te Forward provided
Mariana with public speaking techniques, time
management and networking skills, as well as interview
coaching from Barclays’ employees. These experiences
helped to build her con?dence and secure an internship
at Barclays.
Mariana said: “Faz-Te Forward completely changed
my life. My mentoring relationship allowed me to
participate in an internship at Barclays, where I can put
to work the advice given by my mentor and experience
the working world in an area I would like to pursue.”
Will’s story
Will, 20, struggled to ?nd permanent work, drifting
in and out of temporary jobs and so he joined Street
League’s eight-week programme. When Barclays’
employees visited the Academy, they were so
impressed with Will, they invited him to an interview.
In May 2012 he was appointed a full-time role at
Barclays, and recently helped deliver a Barclays Money
Skills course to the Street League Academy in Croydon.
“To anyone joining the Street League programme,
I would just say that you are getting a great
opportunity so make the most of it and go the
extra mile. It is amazing what is achievable in such
a short space of time at the Academy.”
48 | Barclays PLC Citizenship Report 2013
Benchmarks
Dow Jones
Sustainability Index
The Dow Jones Sustainability Index (DJSI) tracks the
?nancial performance of the leading sustainability-driven
companies worldwide.
In 2013, we maintained our membership of the DJSI World
Index, which represents the top 10% of the leading
companies in the Dow Jones Global Total Stock market
Index. Our score remained at 82% overall.
Total
Economic
Environmental
Social
51
52
67
58
Average score in global banking sector
Barclays score 2013
Barclays score 2012
82
82
83
86
88
84
76
78
Carbon Disclosure
Project
The Carbon Disclosure Project (CDP) assesses
organisational management of greenhouse gas emissions,
climate change strategy, mitigation and adaptation.
In 2013, Barclays has achieved an ‘A’ rating for
our performance.
We have also achieved a position on the CDP supplier
climate performance leadership index (SCPLI) 2013.
This is a new list of the best performing suppliers on
climate change action who disclosed to the CDP supply
chain program in 2013.
FTSE4Good
The FTSE4Good Index Series is
designed to objectively measure
the performance of companies that
meet globally recognised corporate
responsibility standards. We have been a member of
the FTSE4Good index since its inception in 2001.
In March 2013, we scored 90 out of 100 on the
Environmental, Social and Governance Rating (relative to
other companies in our sector).
CommunityMark
BITC’s CommunityMark is th e UK’s only
national standard that publicly recognises
excellence in community investment.
We are a CommunityMark pioneer,
one of the ?rst companies to achieve
the CommunityMark in 2008.
2013 2012 2011
89
92 92
We participate in a number of performance indices, benchmarks and Environmental, Social and Governance (ESG)
research, including:
• Dow Jones Sustainability Index
• Business in the Community Corporate
Responsibility Index
• Carbon Disclosure Project
• FTSE4Good Index
• RiskMetrics
• Bloomberg Markets’ world’s greenest banks ranking
• Sustainalytics
• Vigeo
• oekom research
Highlights of our performance are given below
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Barclays PLC Citizenship Report 2013 | 49
Benchmarks
Business in the
Community (BITC)
Corporate Responsibility
(CR) Index
The BITC CR Index is widely considered
the leading UK benchmark for corporate
responsibility. In 2013, Barclays achieved a score of
95% and maintained its ‘Platinum Big Tick’ rating –
the highest possible ranking.
Bloomberg Markets’
World’s Greenest
Bank ranking
The Bloomberg Markets’ World’s Greenest Bank
ranking assesses ?nancial services institutions on their
environmental performance and their investment in
clean technology.
We maintained our 10th place in the 2012 Bloomberg
Green Ranking, published in March 2013.
Independent assurance process
by KPMG LLP
We engaged KPMG LLP to undertake a limited assurance
engagement, reporting to Barclays Bank Plc only, using the
International Standard on Assurance Engagements (‘ISAE’)
3410: ‘Assurance Engagements on Greenhouse Gas
Statements’ over the selected Citizenship performance
data that have been marked within this Report with the
symbol p; and ISAE 3000: ‘Assurance Engagements
Other Than Audits or Reviews of Historical Financial
Information’ over the selected Citizenship performance
data that have been marked in this Report with the
symbol ? and the description of Barclays’ adherence to the
AA1000 Accountability Principles Standard (‘AA1000APS’)
(2008) principles of inclusivity, materiality and
responsiveness marked with the symbol ?. The principles
set out in AA1000APS (which is available at http://www.
accountability.org/standards/aa1000aps.html) are
intended to drive reporters to take action to: establish a
strategy based on a comprehensive and balanced
understanding of and response to material issues and
stakeholder issues and concerns; establish goals and
standards against which the strategy and associated
performance can be managed and judged;
and disclose credible information about strategy, goals,
standards and performance to those who base their
actions and decisions on this information.
KPMG LLP have provided an unquali?ed opinion in relation
to the selected Citizenship performance data and the
description of Barclays’ adherence to the AA1000APS
principles and their full assurance opinion is available in
the Citizenship section of our website at www.Barclays/
Citizenship/downloads/assurance opinion.com.
The level of assurance provided for a limited assurance
engagement is substantially lower than a reasonable
assurance engagement. In order to reach their opinion,
KPMG LLP performed a range of procedures which
included interviews with management, examination of
reporting systems and documentation, as well as selected
data testing at a site and Head Of?ce level. A summary
of the work they performed is included within their
assurance opinion.
Non ?nancial performance information, greenhouse gas
quanti?cation in particular, is subject to more inherent
limitations than ?nancial information. It is important to
read the selected Citizenship performance information
contained within this Citizenship Report in the context
of KPMG LLP’s full limited assurance opinion; Barclays
reporting guidelines for the selected Citizenship
performance data available on our website at www.
Barclays/Citizenship/downloads/reporting protocol.com;
and the GRI reporting principles for de?ning report quality
for the description of adherence to AA1000APS, which is
available at GRI.
doc_954354800.pdf