Shared Growth Ambition A guide to Shared Growth in action
Barclays cannot succeed or prosper unless the societies and communities in which we live and work also succeed and prosper. Jes Staley, Barclays Group Chief Executive 2 Shared Growth Ambition
Foreword We recently launched our new Citizenship strategy, our Shared Growth Ambition. It s a simple concept: when our customers and clients do well, so do we. When the communities in which we live and work thrive, we do too. And when societal prospers, we all do. Barclays has always played a part in driving economic growth and societal progress. And today, we have more opportunity to play a pivotal role in fostering innovation and facilitating inclusive, shared growth for all now and as we develop the future of banking. At its heart, our Shared Growth Ambition is about making decisions and doing business that provides our clients, customers, shareholders and the communities which we serve with access to a prosperous future. As a business, this means using our skills, resources and commitment to drive and deliver the best results for all our stakeholders; by seeking fair, ethical and open solutions to problems and by always striving to leave things better than we found them. We will do this in three specific ways, by supporting: 1. Access to Financing 2. Access to Financial and Digital Empowerment 3. Access to Employment Our long-term aim is to create and grow a collection of products, services and partnerships that improve the lives of people in the communities which we serve, whilst providing the commercial return our shareholders deserve. This isn t simply a nice or ethical approach, it s necessary for the future prosperity of our business. At Barclays we believe in the concept of and, not or. When it comes to a building prosperous futures for the societies in which we operate and delivering significant shareholder return we must choose both, not one or the other. This is a bold and innovative step. It ensures we have clear focus on driving societal good in everything that we do and that we build the foundations for future growth for all. Quite simply, it s good business for Barclays and society. Jes Staley Barclays Group Chief Executive Shared Growth Ambition 3
Barclays Shared Growth Ambition Our Shared Growth Ambition is about operating in a way which both develops Barclays business for the commercial benefit of our shareholders and creates the conditions for success in the societies which we operate not one or the other. All underpinned by the way we do business We continue to have performance targets for the way we do business reducing global carbon emissions by 30% by 2018, ensuring that we pay our suppliers on time and that our colleagues attest to our global Code of Conduct. 4 Shared Growth Ambition
Our Shared Growth Ambition Access to Financing This helps to fund crucial social and environmental infrastructure, while giving us access to growing markets Access to Financial and Digital Empowerment This ensures customers and communities can benefit from financial and digital services, while helping us increase loyalty and engagement Access to Employment This addresses a major global challenge, while also building long-term demand for banking services We re delivering billions in financing We re empowering millions of individuals and SMEs Building skills We re helping millions develop the vital skills and pathways to employment For solutions that address environmental and social challenges With opportunities to access the 21st century economy Creating jobs We re supporting high growth businesses to create new jobs Shared Growth Ambition 5
Access to Financing New solutions to address global social and environmental challenges are emerging rapidly but need access to financing to commercialise and scale. Institutional and individual investors are also increasingly taking account of sustainability factors and looking for opportunities to invest in a way that generates financial return and impact. 6 Shared Growth Ambition
Significant funding needs will require access to capital markets $89 trillion in infrastructure investments to keep within a 2 degree Celsius temperature rise by 2030 1 $2.4 trillion per year in additional investments to meet UN Sustainable Development Goals (SDGs) 3 $1.1 trillion investment gap for nine key US infrastructure sectors 2013 2020 5 Financial Access Education Development Finance Critical Infrastructure Housing Adaption Infrastructure and momentum is building +60% increase in Sustainable and Responsible Investing assets between 2012 and 2014 2 $1 trillion investment in solar by 2030 by the Green Infrastructure Investment coalition 4 3x growth of Green Bond Issuance between 2013 and 2015 to 45bn 6 Health Social Challenges Energy Energy Efficiency Environmental Challenges Land Use Water Transport Global Financing Markets Waste Management 1. New Climate Economy 2. Global Sustainable Investment Review 3. UNCTAD / Global Sustainable Investment Review 4. Green Infrastructure Investment Coalition 5. American Society of Civil Engineers 6. Climate Bond Initiative Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 7
Barclays role Our Shared Growth Ambition is about doing business that provides our clients, customers, shareholders and the communities which we serve with access to a prosperous future. We will continue to facilitate access to funding solutions for areas including environmental financing, socially beneficial infrastructure, development institutions and small business financing. We will build an impact investing proposition in our Wealth business and continue to grow our Green Bond Treasury portfolio. Executing on this commitment will underpin new sources of sustainable growth, provide financing to key solutions and enable Barclays to generate returns by acting as a key intermediary in mobilising significant flows of capital that need to grow over time. We recognise that private and public sector actors are continuing to identify innovative solutions and develop supportive policy frameworks to enable the transition to a more sustainable global economy. We aim to work with our clients and other stakeholders to navigate these trends and deploy our intellectual capital and convening power. We will continue to support global partnerships such as the United Nations Environment Programme Finance Initiative, Equator Principles and the Banking Environment Initiative. Our commitment Deliver billions in financing to solve global challenges 8 Shared Growth Ambition
Bringing the best of Barclays to the green bond market Underwriting Barclays is an active underwriter of green bonds across sectors and geographies Research Barclays provides investment research and thought leadership Investor Barclays includes green bonds for Charity client portfolios in Wealth. Market Making Barclays provides SSA Green Bond secondary pricing on the auto-execution service BARX Investor Barclays Treasury committed to grow green bond portfolio to 2bn over time Networks Barclays is a Green Bond Principles signatory and Climate Bonds initiative member Sustainable Shipment Letter of Credit In 2010, the Consumer Goods Forum announced the ambition to achieve zero net deforestation by 2020. As we preserve the world for our future generation, we can play a role as a global financial institution. As part of the Banking Environment Initiative working group, Barclays developed the Sustainable Shipment Letter of Credit, which certifies that goods have been produced in a sustainable way. Clients can now track the sustainable origin within the existing Issuer Investor Letter of Credit structure, an internationally recognised way to reduce counterparty risk in trade transactions. This promotes sustainable sourcing and has won considerable support from influential industry stakeholders. Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 9
Access to Financial and Digital Empowerment Inclusive financial systems are key to achieving economic and societal progress. However, there are several barriers to access including geographical challenges, lack of credit history, and cultural and physical factors such as disability, low financial literacy or an inability to access digital services. 10 Shared Growth Ambition
21% of the UK population lack basic internet skills 7 8bn of estimated cost to UK economy of bad debt per year 8 1 in 5 people of working age in England have a disability (18%) 9 45m people have no credit score and cannot access mainstream credit in the US 10 1.7bn people globally own mobile phones but don t have access to financial services 11 7. BBC Digital Capabilities Update, September 2013 8. StepChange s The 8.3bn Challenge: Cutting the cost of problem debt report, October 2014 9. 2011 census as 18% (9.4m) of the population of England has a disability 10. Consumer Financial Protection Bureau (US) Credit Invisibles, May 2015 11. World Bank Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 11
Enhance access Improve existing products and services Accessibility and inclusion initiatives Support and digital tools to improve financial health Develop financial and digital skills Empower individuals and SMEs to access the Barclays products and services that help them to achieve their ambitions Create new products and services New lending and services for underserved markets 12 Shared Growth Ambition
Barclays role We will improve access to financial services, including developing targeted products and services for individuals and small businesses. We will also provide digital and financial literacy tools to help empower our customers. We will innovate to reach under-banked and underserved individuals and small business customers with financial services. We will use our Digital Eagles network to help more people become empowered to operate in the digital economy, reduce exclusion and enhance access to a range of digital tools and services. Our commitment We will build on accessible services such as Sign Video and high-visibility cards, and share learning to help other businesses become more accessible. We will also provide targeted products to help enhance access to credit for those with limited or poor credit histories and provide a way to build their credit health over time. Enhance financial and digital access for millions of individuals and small businesses We will use improvements in technology and analytics to develop a range of tools to provide better and quicker information and money management capabilities. We will provide proactive and reactive support to customers in financial difficulty, and develop new financial education resources with a range of experts including apps and gamified learning platforms. Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 13
Over a million people engaged through Digital Eagles, Eagle Labs and 16,000 Digital Eagle Employees in the UK 14 Shared Growth Ambition
Barclays Digital Eagles We re in the midst of a digital revolution, a major societal shift, that is changing customer expectations across all sectors. Not only can digital solutions deliver a better, more immediate customer experience, but they come at a lower marginal cost to serve. However, we recognise that this can be a big and sometimes emotional shift for some of our customers, who adapt to change at different speeds. The Digital Eagles are Barclays response to helping everyone move forward in the digital age. Digital Eagles are specially trained Barclays employees who provide free technology support to both customers and non-customers. Since May 2013 the Digital Eagles have helped over 880,000 people globally become digitally savvy through Tea & Teach, Code Playground and working within schools. They help people with everything from taking their first steps to access the internet to understanding how to bank via digital channels. In addition to helping consumers do more and save money, the Digital Eagles also help Barclays reduce costs by empowering more customers to transact online, and reducing the bank s reliance on physical branches. The ambition this year is to engage with over a million people through the reach of the Eagle Labs and 16,000 Digital Eagle employees in the UK as well as a growing international network of 12,000 across 21 countries. Barclaycard UK Cards Credit Score and Money Worries Hub The Credit Score and Money Worries Hub was developed to support and empower customers by giving them knowledge and resources to take control of their financial health. The Hub is a powerful example of how Barclaycard colleagues have used internal knowledge, skills and resources to provide an excellent service and holistic support for customers. Hosted on the Barclaycard website, The Hub provides access to free credit scores and provides tips told through stories based on those faced with financial difficulties. The free credit score service has been used by more than 100,000 customers and more than 2,500 have accessed the stories and information. The service, which is the first of its kind for a UK card provider, demonstrates Barclaycard s support for customers and their long-term financial health. Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 15
Access to Employment Unemployment is one of the world s biggest challenges with global jobless rates set to exceed 200 million 12 people for the first time. In the 21st century new jobs are increasingly coming from fast growing small businesses and entrepreneurs that have become the engine of job creation, but will require support to scale. 16 Shared Growth Ambition
The global labour market is undergoing major structural changes with far-reaching implications for future workforces Supply Upskill workers Lack of qualified candidates applying to jobs due to lack of the right vocational skills to get a job, including digital, technology and life skills 35% of employers globally report they are experiencing difficulty filling jobs due to lack of available talent 13 We will provide vocational training and pathways to employment Demand Create jobs Entrepreneurs and SMEs are significant engines of both job creation and economic growth 66% of new job creation in developed economies will come from entrepreneurs 14 We will support high-growth businesses that demand skilled labour 12. ILO World Outlook Social Outlook 2015 13. Manpower Talent Shortage Survey 14. EY, Avoiding a Lost Generation Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 17
Barclays role Barclays is committed to helping people gain access to the vital skills they need to get into work and provide access to job opportunities at high-growth companies by supporting entrepreneurs to scale these businesses. Addressing unemployment improves social and economic prospects and creates broader opportunities for growth and increased resilience investing in the future health of the communities where we do business. This, in turn, helps build long-term demand for, and access to, banking services. Upskill workers We will provide access to skills training and pathways to employment for those who lack the necessary opportunities. Create jobs We will support high-growth businesses that demand skilled labour, providing access to job opportunities at these companies Our commitment Upskill millions of people and job creation through our support for entrepreneurs 18 Shared Growth Ambition
LifeSkills created with Barclays LifeSkills has been inspiring and helping millions of young people to develop the core employability skills needed to move forward in the 21st century workplace, supporting our economy and society. The programme brings together educators, businesses, young people and parents to achieve this, as increasingly young people need to leave education not only with appropriate academic results but with the skills that businesses need now and in the future. So far more than 2.8 million young people have participated in LifeSkills since its launch in 2013. The programme is supporting young people to transition successfully to work or further learning. LifeSkills provides educators with more than 60 hours of free curriculum linked employability resources, as well as dozens of interactive tools for young people to learn in their own time or with their parents. LifeSkills also supports businesses to offer work experience opportunities. Research by The Work Foundation shows that young people who have taken part in LifeSkills are using the skills they have learnt to help them get a job, be more confident in interviews, make more informed decisions about what they want to do in the future and be better at managing their finances. It also shows that LifeSkills is raising their aspirations and helping them to feel more confident about their future. Academic reports highlight the fact that there are strong links between young people s aspirations and future educational attainment and subsequent labour market success. Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 19
Unreasonable Impact created with Barclays Partnering with Unreasonable Group, an entrepreneur-centric organisation with incubators worldwide, Barclays will deliver a global initiative that will run annual programmes for high-growth enterprises across the UK, US and Asia Pacific. These programmes will help entrepreneurs rapidly scale up their businesses in a shared effort to curb unemployment rates across targeted geographies. The programme will support entrepreneurs by: Search and select Sourcing the world s best businesses with potential to scale up and create quality jobs across targeted geographies Incubate Running regional multiple-week intensive incubator programmes for high-growth entrepreneurs combining a bespoke digital hub with in-person training Mentor Bringing together a cohort of serial entrepreneurs and business leaders as mentors from within Barclays and beyond to provide ongoing support Sustain Providing ongoing support for 12+ months including coaching, connections and tracking performance that ultimately lead to job creation unreasonablegroup. 20 Shared Growth Ambition
Barclays Armed Forces Transition, Employment & Resettlement (AFTER) Programme Every year, through the AFTER programme, Barclays supports thousands of Servicemen and women with their transition into civilian employment after serving in the Armed Forces, and aims to highlight the economic value these highly skilled individuals can bring to the corporate world. Established in 2010, the Barclays AFTER Programme helps to address the issues faced by current and former, Service personnel regardless of rank, service or circumstance in the transition to civilian life, by providing work placements, direct employment opportunities, CV and interview coaching, and money management sessions, as well as funding for education and vocational courses for Service Leavers through Service charity partnerships. Since its inception, 350 ex-military personnel have been hired into roles across Barclays, with 177 people in 2015 alone. In addition to the employability support through AFTER, Barclays offers a number of bespoke banking services which help to make banking easier for the wider Armed Forces and veterans community. Access to Financing Access to Financial and Digital Empowerment Access to Employment Shared Growth Ambition 21
Focusing on impact Targets Our experience has shown that it s more beneficial to focus on understanding and reporting the impact and outcomes of our strategy, so we are moving away from setting public reach targets for our Shared Growth Ambition. We will continue to have performance targets for The Way We Do Business including our commitment to reduce carbon emissions by 30% by 2018, compared to the 2015 baseline. Tools and Evaluation Impacts can be challenging to understand and measure, particularly when we try to assess portfolio-level outcomes instead of individual initiatives. We are committed to working with internal and external partners to develop new tools and methods to best capture and contribute the impact of our strategy. We have already taken the first step by commissioning an independent analysis of some our programmes that will be scaled as part of the Shared Growth Ambition. The research is available at home.barclays/citizenship Reporting We will continue to report against our goals in our Annual Report and Citizenship disclosure using a range of quantitative and qualitative indicators, tracking both the outputs and, where possible, the outcomes of our activity. Analysis We believe that a combination of new tools and the growth of Big Data and analytical technology will enable us to continue to get better, faster and more comprehensive information on the change that our Shared Growth Ambition is delivering for society and for Barclays. 22 Shared Growth Ambition
Analyse impact and outcomes Report against Reward to our goals Reduce global carbon emissions Shared Growth Ambition 23
To find out more go to home.barclays/citizenship Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 122702). Registered in England. Registered No: 1026167. Registered Office: 1 Churchill Place, London E14 5HP.