Barclays PLC
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MI Summary
Barclays PLC sets out clear aims they wish to achieve regarding environmental issues. Five year improvement targets are set regarding climate change, resource use and waste management as a means to measuring environmental performance, this process is seen as highly important as it provides the opportunity to drive cost savings and operational efficiency.
Barclays show high awareness of the implications of climate change; they have taken action in reducing their carbon dioxide emissions. Their UK carbon footprint is made up of 80% energy use and 20% business travel, consequently they are primarily focused on improving their energy efficiency, clear targets have been set out to help in achieve this improvement.
Commitment is shown to adopting the use of renewable energy, half of Barclays UK electricity consumption now comes from renewable sources e.g. wind, bio-gas and tidal.
To make UK operations completely carbon neutral Barclays offset any carbon dioxide emissions remaining after investing in energy efficiency and buying renewable energy. The company recognises that offsetting is not a solution to climate change but it ahs a valuable role to play.
Barclays believe climate change can also pose a business opportunity, through supporting customers in their transition to a lower carbon economy by developing new products & services. The Barclaycard Breathe is a credit card donating 50% of net profits after tax to projects that tackle climate change.
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Barclays PLC Environmental Policy
We are aware that, as a global financial services organisation, we have a significant impact on the environment. We take this issue seriously and our strategy for reducing this impact is integral to the way we conduct our business.
Our aims are to:
1. Reduce our impact on the environment
- By using energy and fuel more efficiently.
- By reducing our use of resources (such as water and paper).
- By improving waste management through reduction, re-use and recycling.
2. Implement an environmental management system in key operations worldwide.
3. Manage the environmental risk associated with Barclays activities.
This means ensuring that environmental risk is managed in business lending and the supply chain decisions worldwide.
4. Be one of the leaders in environmental responsibility.
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Measuring Impact upon the Environment
We have set five-year improvement targets to measure our environmental performance. Our progress is shown here and in the Corporate Responsibility Report.
We believe setting targets is important. They help drive cost savings and operational efficiency. They also improve purchasing decisions and substantiate our reputation as a company which takes its environmental responsibilities seriously.
Our UK targets for 2006–2010 are detailed here. Performance is measured against our 2005 baseline unless otherwise stated.
Climate change
- Reduce total CO2 emissions by 20 per cent (using 2000 as the baseline).
- Reduce carbon intensity from 16.8 tonnes CO2 to 12.6 tonnes CO2 per £1million of UK income.
- Reduce energy consumption from offices and branches per employee by 20 per cent at a rate of no less than four per cent each year.
- Improve energy efficiency in data centres.
Resource Use
- Reduce water consumption per employee by 20 per cent at a rate of no less than four per cent each year.
- Reduce A4 copier paper consumption per employee by 10 per cent at a rate of no less than two per cent each year.
- Maintain percentage of recycled copier paper used above 80 per cent of total use.
Waste Management
- Reduce volume of general waste generated at major sites by 20 per cent at a rate of no less than four per cent each year.
- Increase volume of waste recycled at major sites by 20 per cent at a rate of no less than four per cent each year.
- Reuse or recycle 95 per cent of waste IT equipment each year.
Global targets for 2006 – 2010 are:
- Reduce energy consumption per employee by five per cent at a rate of no less than one per cent each year.
- Reduce water consumption per employee by five per cent at a rate of no less than one per cent each year.
- Reduce A4 copier paper consumption per head by 10 per cent.
- Reuse or recycle 45 per cent of waste IT equipment each year.
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Environmental Performance in the UK
Environmental Performance in Europe
Environmental Performance in the Rest of the World
Climate Change
Climate change is now the most serious challenge facing mankind. Coping with climate change is essential to the sustainability of societies all around the world, and we need to adapt accordingly, as businesses and as individuals.
Businesses have a vital role to play, alongside governments, non-governmental organisations and others. At Barclays we are investing in our own energy efficiency and we have offset our residual carbon dioxide emissions. We also have a role in raising awareness with our customers and clients - and in helping them to adapt for success in an increasingly carbon-constrained world.
"The lens through which we will be judged will be provided by future generations - by our children and grandchildren. My test is that our children should look back at what I and Barclays did in 2007 and beyond, and be able to say 'they recognised the immensity of the challenge, they evaluated it sensibly and they were amongst the leaders who, by their actions and influence, really made a positive difference'. More than anything, I want my children to be able to look me in the eye and to say with conviction 'You played your part'." John Varley, Group Chief Executive
Barclays Climate Action Programme
- Reduce carbon dioxide (CO2) emissions by improving energy efficiency.
- Buy renewable energy.
- Make our UK operations carbon neutral by offsetting the remaining CO2 emissions.
- Offer products and services that help our customers to reduce their impact on climate change.
- Engage with key stakeholders and contribute to the debate on climate change action.
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Reducing Emissions
The greenest form of energy is the energy you don't use. The first and most important step in any climate change action plan is to reduce carbon dioxide emissions.
Our UK carbon footprint is made up of 80 per cent energy use and 20 per cent business travel, so improving our energy efficiency must be our highest priority.
Our UK targets for 2006-2010, we are aiming to:
- Reduce CO2 emissions by 20 per cent by 2010 (using 2000 as the baseline year).
- Reduce energy consumption in offices and branches by 20 per cent per employee (FTE).
- Improve data centre efficiency.
- Reduce carbon intensity from 16.8 tonnes to 12.6 tonnes CO2 per £1m of UK income. Carbon intensity is a measure of emissions relative to business growth and it allows comparisons to be made between companies.
- Investing to save
We have committed to a multi-million pound investment in energy efficiency over the next five years. This is not only the right thing to do but with rising energy prices and increasing regulation, it makes business sense too.
More efficient data centres A key challenge facing financial institutions globally is the increasing energy demand made by data centres, which is expected to rise significantly in the next few years. Barclays is examining ways to increase efficiency, and we are currently testing new water and carbon dioxide cooling systems in our data centres. Energy efficiency improvements of around 30 per cent are expected.
Business travel Barclays is a global organisation and our overall travel emissions are increasing. Reducing them while continuing to meet our business and customers’ needs is a real challenge and we have more work to do in this area. Achievements so far include:
- Investing in better audio and video conferencing technology, and encouraging their use.
- Working with the Energy Savings Trust which is undertaking a review of our car fleet and offering recommendations for improvement.
- Developing a green travel plan for Barclaycard House in Northampton to help employees find alternatives to using their cars.
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Renewable Energy
Buying energy from renewable sources helps to reduce our carbon footprint. We are committed to increasing the amount of renewable energy we buy.
In 2007, Barclays announced its biggest ever purchase of renewable energy. Half of Barclays UK electricity consumption now comes from renewable sources, compared to three per cent previously.
What do you mean by renewable energy? Barclays has signed a contract with EDF Energy to supply electricity from a portfolio of different sources including wind, small scale hydro, landfill, bio-gas, tidal and waste. This energy is sourced from UK and European based generators, which are accredited by Ofgem for the Climate Change Levy renewable exemption scheme. To find out more about renewable energy, visit the Renewable Energy Association.
How much energy is Barclays buying? EDF Energy will provide Barclays with 300 GWh of renewable energy each year for the next three years. The deal will reduce Barclays carbon footprint by up to 125,000 tonnes of CO2 a year - the equivalent to the emissions produced by 19,000 homes in the UK.
Buying renewable energy is part of our Climate Action Programme to reduce our carbon footprint. This includes offsetting the UK CO2 emissions that we cannot avoid. We take account of the cost of offsetting when we renew energy supply contracts. This provides an added financial incentive to avoid emissions by investing in energy-efficiency and low-carbon energy.
Case study: Dunster Castle Barclays is helping The National Trust adapt to climate change. The Trust has committed to reducing its greenhouse gas emissions and hopes to achieve this through micro-generation of energy at many of its sites.
Barclays has funded the installation of solar panels at Dunster Castle, on the Somerset coast. This project aims to be a beacon of environmental innovation, proving that new technology can be adapted for Grade 1 listed buildings, which are a challenge to maintain at the best of times.
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=Going Carbon Neutral
Investing in energy efficiency and buying renewable energy are our priorities for reducing our carbon footprint. To make our UK operations completely carbon neutral, we have offset our remaining carbon dioxide (CO2).
What is offsetting? Offsetting is balancing the impact of emitting a quantity of greenhouse gas (GHG) by avoiding an equal amount being emitted elsewhere, or removing an equal amount from the atmosphere. The result is no net impact on global GHG levels.
Barclays has offset 223,000 tonnes of CO2 emissions, making our UK operations carbon neutral for 2006.
Why offset? Offsetting cannot be the solution to climate change, but at Barclays, we believe it has a valuable role to play. It provides a powerful financial incentive for investing in emissions reductions, because paying for offsetting is an additional cost borne by the company.
How has Barclays offset its emissions? Barclays has offset its UK CO2 emissions in two ways:
1) The Clean Development Mechanism (CDM) The CDM is a mechanism under the Kyoto Protocol. It allows countries to meet their emissions reductions targets by investing in clean technology in countries that do not have emissions targets. These clean investments generate carbon credits called Certified Emissions Reductions (CERs) which are verified independently and approved by the United Nations Framework Convention on Climate Change. Barclays has purchased 133,000 tonnes of CERs through Barclays Capital's Emissions Trading Desk. This has offset around 60% of Barclays UK CO2 emissions for 2006
2) Community energy projects We have also invested in community based energy efficiency and renewable energy projects in Africa, China and India through our offset suppliers, The Carbon Neutral Company and Climate Care. These projects are small scale but have real social and economic benefits for local communities. The projects are monitored and verified independently. Barclays has bought 90,000 tonnes of these Verified Emissions Reductions (VERs). You can download details about these projects from the links on this page.
Transparency Our total UK emissions have been verified by emissions auditor SGS. Barclays carbon accounting and offsetting protocol is available on request to environment@barclays.com. This explains how we calculate our carbon footprint and our approach to offsetting.
The voluntary carbon offsetting market is evolving rapidly and new standards emerging, for example, the Climate Group’s Voluntary Carbon Standard. We are participating in these developments and will adopt a universal approach when one emerges. Until then, our approach is to:
- Use suppliers with a proven track record. If a project does not deliver the expected reductions, our suppliers have undertaken to make up the shortfall from alternative projects.
- Invest in projects that produce emissions reductions within three years (e.g. when offsetting 2006 emissions, all emission reductions should have taken place by 2009).
- Ensure that all emissions reductions are verified by a credible independent third party, preferably one recognised by the UNFCCC.
- Give preference to projects that meet recognised standards and take place in countries where Barclays operates.
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Products and Services
Climate change is a risk to be managed, but it is also a business opportunity. We aim to support our customers in the transition to a lower carbon economy by developing new products and services.
Barclaycard Breathe The credit card that donates 50% of net profits after tax to projects that tackle climate change. This is an innovative credit card encouraging consumers to make real greener choices and rewarding them with discounts and deals to help them start to mitigate their own impacts on our environment. To find out more, visit www.barclaycardbreathe.com
Renewable finance Our Natural Resources Team has provided the long-term finance for more than 2,600MW of renewable generating capacity, including onshore wind-farms landfill gas extraction plants, small-scale hydroelectric projects, biomass plants and biodiesel conversion plants.
Emissions trading Carbon cap and trade schemes such as the EU Emissions Trading Scheme (ETS) are effective because they reduce emissions at the lowest cost to the economy. The EU ETS has given out 2.2 billion tradable carbon allowances a year across its 25 member states.
Barclays was the first UK bank to set up a dedicated carbon trading desk to help clients, and Barclays Capital is the most active player in the emissions trading market, having traded some 300 million tonnes as at February 2007.
The market fluctuated greatly during 2006, but we believe in its long-term importance. The concept of emissions trading is also beginning to spread beyond the EU and Barclays Capital is now trading Certified Emissions Reductions (CERs) in Asia and the Americas.
Currency and carbon We invite our personal customers who purchase their foreign currency from Barclays to offset the CO2 emissions from their holiday. Customers can calculate the CO2 impact of their flights and make a payment to Climate Care to offset their emissions. All funds go directly to Climate Care to invest in renewable energy and energy-efficiency projects in the developing world on our customers’ behalf.
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Employees and the Environment
At work You can check our tips for getting involved, share best practice through our quarterly bulletin or become an environmental champion.
At home The Rough Guide to Saving Energy and Reducing Your Carbon Footprint is packed full of ideas and advice to help you and your family tread lightly on the planet. Click here to download a copy.
Earthwatch Climate Challenge This year, 12 Barclays employees will join Earthwatch expeditions to investigate the effects of climate change in Iceland, the USA, Kenya and the UK.
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