Barclays 2015 Citizenship Plan
September 2012

We will...
...help individuals, businesses and economies progress and grow.

“Our priority is to establish the right culture and leadership, making citizenship core to our values and day-to-day business decisions”.
Antony Jenkins, Chief Executive, Barclays

Cover photography: Waterloo Housing Group Market turmoil was making it difficult for Waterloo Housing to raise finance for its programme of providing affordable homes. The conventional approach would have been to offer one solution. However, we took a more creative view by taking advantage of the breadth of resource across Barclays, offering Waterloo Housing a choice of options including structured debt, Private Placement and Debt Capital Market solutions.

Introduction

This Citizenship Plan sets out our intention to contribute to sustainable economic growth in a way that also creates value for society and in a manner that is consistent with the highest standards of integrity. The events following the financial crisis raised profound questions about the way in which the financial services industry in general, and more recently Barclays in particular, operates. Our reputation and that of the banking sector has been severely damaged. We recognise these events have created a breakdown in trust with customers, regulators and society and that we must work hard to regain that trust. In July, Barclays Board established an independent review of its business practices, led by Anthony Salz, reporting to Deputy Chairman, Sir Michael Rake, and a subcommittee of the Board. The review will publish a report before the 2013 Annual General Meeting outlining its findings and recommendations. The Board and Executive Committee have expressed their commitment to reviewing the recommendations carefully with the intention to implement them in full and to publish an account of what the bank will do in response. This review, and the actions we take as a consequence of it, will be critically important steps in restoring trust in Barclays. Delivery of the commitments throughout the Plan will also be important to restoring trust. We believe that there is an even greater imperative to deliver against the commitments in this plan, not only to earn an appropriate return for shareholders, but also to do that in a way that explicitly demonstrates our positive contribution to society. Only by so doing can we realise our aspiration to become a trusted sustainable bank and a force for good. We also understand that this will be about what we do – not what we say. Getting the basics right - serving our clients with integrity and maintaining the highest standards of service – is a key priority to re-establish our reputation. We have made serious mistakes in recent years and clearly failed to keep pace with our stakeholders’ expectations. To be successful, we must listen, engage and balance all their interests. Our priority is to establish the right culture and leadership, making Citizenship core to our values and day-to-day business decisions. We have a tremendous opportunity to change Barclays in a way that will better serve our customers, clients, colleagues, shareholders and broader society. Barclays can, and will be, a better bank.

Antony Jenkins Chief Executive, Barclays

2

Overview

Barclays has a clear sense of our business purpose – to help individuals, communities, businesses and economies progress and grow. Our use of the term ‘Citizenship’ captures that purpose. Demonstrating our commitment to Citizenship is one of our four execution priorities. We recognise that we have a long way to go in our journey to restore trust and deliver our Citizenship agenda. As part of that, we recognise that we must demonstrate the ways in which Barclays intends to make, and is making, Citizenship real for all of our stakeholders, customers, clients, colleagues, communities, shareholders and other opinion formers. Delivering this agenda is vital to Barclays long-term success. Barclays 2015 Citizenship Plan is the mechanism through which we intend to demonstrate that commitment. The plan is organised around the three pillars that we use to articulate what we mean by Citizenship:

Against each of these pillars, the plan sets out specific objectives that we will pursue over the plan period. Each of those objectives has an associated metric which we will use as the principal basis for monitoring our progress. Against each of those metrics, we have established clear commitments for delivery, within this initial iteration of the plan, by 2015. While we are determined to deliver each, we cannot say precisely today what each will require. Discovering that is a vital part of the journey. We will follow a rigorous reporting and review cycle through the lifespan of the plan, including reviewing our progress against the specific metrics associated with each objective, as well as a broader range of metrics, as part of our annual Citizenship Report.

Contributing to growth
We support economic growth and job creation by operating a strong, profitable business that is focused on helping individuals, businesses, institutions and governments pursue their goals.

The way we do business
Our clients’ interests are at the heart of what we do. We seek to reinforce our business integrity every day by striving to improve the service that we provide, making responsible decisions in how we manage the business, and actively managing the social and environmental impacts of what we do.

Supporting our communities
We play a broader role in the communities in which we live and work beyond what we deliver through core business activities. We do this through community investment programmes and the direct efforts of our colleagues.

3

UNICEF/M.EL-Dakhakhny

Our 2015 Citizenship Plan

Our plan is a living document. This edition will be used as a basis for even more direct engagement with our stakeholders. To encourage that engagement, we have included in the final section a specific set of questions on which we would value input from all stakeholders. Through that engagement, we will better understand your needs and expectations, and, over time, modify our plan based on careful consideration. We will provide regular updates on the evolution of our plan through that process.

Unless otherwise noted, the commitments set out in the plan are until the end of December 2015 and on a global basis.

Performance reporting – framework and governance
Our reporting framework will include a range of performance indicators, several of which are beyond those implied by the commitments themselves. Over time, the performance metrics included in that framework will evolve. We will ensure that our data collection, analysis and reporting systems have effective controls in order to generate credible and meaningful data to assess progress on our Citizenship agenda, including through external, independent assurance, which is currently conducted by Ernst & Young. In August 2011, Barclays established a new, formal sub-committee to the Barclays PLC Board of Directors, the Board Citizenship Committee. The remit of the Committee was explicitly designed to meet best practice corporate governance standards and ensure that Barclays Citizenship strategy and execution is discussed and agreed at Board level, as well as evaluating reputational risks. The Committee is chaired by Barclays Chairman, Marcus Agius, and includes two Non-Executive Directors, Sir John Sunderland and Dambisa Moyo.

4

We will...
...demonstrate our commitment to this important agenda through delivery of the objectives, targets and initiatives set out within this plan
5

Contributing to growth
We support economic growth and job creation by operating a strong, profitable business that is focused on helping individuals, businesses, institutions and governments pursue their goals.

We will...
...help more individuals, businesses and economies to progress and grow
Our customers and clients are at the heart of our business. Their success determines our success. We are committed to supporting our customers and clients globally and working in partnership with other stakeholders to create an environment in which individuals, institutions and sovereigns have the confidence to spend and invest, and businesses to invest and hire as a result. We recognise that one of the more vital ways in which we can do this is by continuing to ensure our customers and clients have access to affordable credit. Metric The amount of financing provided to, or raised for, individuals, businesses and sovereigns. Commitments Subject to economic conditions, our credit criteria and regulatory constraints, we intend to: • Provide at least £150 billion of new or renewed lending to households • Raise at least £2 trillion of financing (through raising capital and / or arranging lending) for businesses and governments • Provide at least £50 billion of new or renewed lending for Small and Medium-sized Enterprises (SMEs). Example initiatives • Support up to 120,000 SMEs through business seminars, tools and training • Create a guarantee scheme in South Africa, in partnership with USAID, to share the risk of funding for SMEs and start-up businesses • Participate actively in the UK National Loan Guarantee Scheme to reduce the cost of credit to eligible SMEs • Participate in public-private partnerships in South Africa to develop strategic growth and development programmes • Scale our apprenticeship and work experience programmes to help young unemployed people gain employment.

6

We will...
...increase access to the financial system
Access to basic banking services (including current and savings accounts, loans and payments systems) is essential for enabling economic growth and improved prosperity. We aim to bring the benefits of banking to more people; help them manage their finances more effectively; transfer payments easily; and save securely for a better future. Metric The number of customers actively using entry level financial products and services. Commitment Provide entry level financial products and services to one million new customers. Example initiatives • Evolve ‘early intervention’ support teams for customers concerned about their finances • Develop and roll out alternative channels, including mobile technologies to enhance access to financial services • Scale services for customers to improve their understanding of how to manage money • Create Enterprise Development Centres in South Africa to provide a critical supportive environment and infrastructure to address the general lack of business skills and help entrepreneurs to grow their ventures.
7

Tine Frank

We will...
...create commercially viable solutions to help address social challenges
The economies in which Barclays participates face a number of social challenges within which we can play an important role in developing solutions by providing new or modified products and services. The perceived commercial viability of those solutions is often a barrier to innovation and development. We are determined to test and develop innovative solutions, subject to rigorous criteria, that generate value to both our business and society, including collaborating across sectors. Metric The number of solutions brought to market that meet designated criteria. Commitment Bring to market 15 new commercial and material solutions to address specific social challenges. Example initiatives • Invest £25 million in developing, testing and taking to scale commercial products and services that help address social challenges through a dedicated social innovation facility • Support Big Society Capital in its aim of funding and growing the UK social investment sector and empowering social entrepreneurs, including through £50 million investment • Launch an online ‘Procurement Portal’ in South Africa to enable emerging suppliers, including individuals and SMEs, to access both our procurement needs and also those of additional corporate partners • Develop a new funding model for energy efficiency and renewable energy projects through the US Property Assessed Clean Energy (PACE) initiative • Pilot ‘Skillsbank’ – a UK online tool that links individuals, SMEs and charities to help facilitate skill sharing and capacity building.

Social need
Opportunities for social innovation

Business opportunities

Corporate assets and expertise

8

The way we do business
Our clients’ interests are at the heart of what we do. We seek to reinforce our business integrity every day by striving to improve the service that we provide, making responsible decisions in how we manage the business, and actively managing the social and environmental impacts of what we do.

We will...
...aim to be top tier for customer and client satisfaction in all of our principal businesses
Our aim is to be among the best in the market in everything that we do. We recognise that the most objective way to verify this is based on the direct feedback of our customers and clients. That includes improving their stated satisfaction with our products and services, as well as reducing the volume of complaints that they raise with us, particularly in our businesses that serve individuals. Metric The level of customer and client satisfaction. Commitments • Top-tier customer / client satisfaction rating by principal business based on independent surveys • Sustained year-over-year reduction in customer complaint volumes in those businesses that serve individuals. Example initiatives • Implement a new method of validating secure transactions using SMS messaging • Develop more systematic root cause analysis of customer complaints • Invest in enhancing client-focused technology platforms for corporate, institutional and retail users • Implement Premier and Core Client programmes to ensure we deliver the best service to our Top, Global Accounts • Embed consistent client experience standards globally.

9

We will...
...eradicate ‘too big to fail’ by making Barclays resolvable
One of the principal lessons from the financial crisis was the risk posed to the financial system and the economy by the failure of individual banks. That risk is perceived as especially material for large, cross-border banks, which have come to be known as ‘too big to fail’ and are perceived to benefit from lower funding costs on the expectation that governments will have no choice but to step in and rescue these institutions if they were to fail. Regulatory authorities around the world are putting in place the powers, tools and capabilities to allow any institution to fail without negatively impacting the broader financial system or economy. The term they use for this is ‘resolution’. Metric The resolvability of Barclays. Commitments • Establish a credible plan (confirmed by relevant authorities) to resolve Barclays cross-border operations • Deliver ahead of all related UK, US and EU regulatory timelines. Example initiatives • Develop Recovery and Resolution Plan in conjunction with UK, US and other regulatory authorities • Implement requirements associated with the Independent Commission on Banking recommendations • Continued proactive engagement on related regulatory reform initiatives.

10

We will...
...strive to be market leading on disclosure and transparency
The financial crisis has raised concerns about the quality and relevance of information that banks provide – whether in financial disclosures; in customer and client literature; or the way in which banks respond to concerns raised by society about the nature of their operations. Restoring trust will require concerted efforts by banks to rebuild confidence in that information. With respect to concerns raised by society, banks need to engage more openly and proactively to explain better what it is that they actually do and why, even if there are views that they should change or stop those activities. Metrics • The quality of financial reporting disclosures • The transparency and simplicity of customer literature in businesses that serve individuals. Commitment Top-quartile among designated peer banks on each metric 1 based on independent surveys. Example initiatives • Engage with shareholders in respect of future remuneration strategy and policy, with a goal of achieving broad support • Embed a framework that explicitly builds a Citizenship lens into decision-making process in Retail and Business Banking (for example, the design of products and services and changes to business processes) • Develop more transparent and easy to understand credit products that keep the customer up-to-date with how lending applications are progressing.

1. Note: appropriate peer group will differ across metrics and businesses.

11

We will...
...proactively manage the social and environmental impacts of our business
As a major global organisation, we recognise that we have a responsibility to actively manage our environmental impacts, reducing our own use of natural resources, as well as promoting high social and environmental standards in our supply chain. A responsible approach to lending is an integral part of our day-to-day business practice, and this includes the assessment and management of the environmental and social risks associated with our lending. Metrics • The reduction in carbon emissions, paper, water and waste • The number of external suppliers that meet our citizenship guidelines. Commitments • Reduce operational carbon footprint by 4% by the end of 2013 • Offset carbon emissions arising from core banking operations • Report water, waste and paper data for top 100 buildings • Implement a global Supplier Code of Conduct. Example initiatives • Join the UK ‘switch off the lights’ campaign to encourage energy use reductions across branch network • Engage suppliers in the UK to gain their commitment to the Supplier Pledge, which requires prompt payment and environmental criteria • Participate in the Banking Environment Initiative, a group of ten global banks (convened by their Chief Executives) working to identify new ways to tackle key sustainability issues through innovative bank-corporate partnerships.

12

Supporting our communities
We play a broader role in the communities in which we live and work beyond what we deliver through core business activities. We do this through community investment programmes and the direct efforts of our colleagues.

We will...
....empower the next generation with the skills they need to achieve economic independence and security
The future success of communities and economies relies on the ‘next generation’ (10 to 35-year-olds) having the right skills to fulfil their potential. We can help address this issue by aligning our community investment strategy to our skills and experience as a bank. We will invest money, time and skills in community projects that help young people provide for themselves and their families, as well as support growth of the wider economy. Metrics • The level of investment in community programmes • The number of individuals that directly benefit from those programmes. Commitments • £250 million of new investment in community programmes • Improve the money management, enterprise and life skills of five million 10 to 35-year-olds. Example initiatives • Develop cross-sector community investment partnerships to drive positive change for young people • Improve the scale impact of Barclays Money Skills to provide skills-based, structured volunteering opportunities and resources for colleagues • Actively encourage colleagues to use their professional skills and expertise through volunteering, including through Make a Difference Day and Citizenship Awards.

Supporting our communities
Number of individuals supported through community investment programme

1.5 million
2010

2 million
2011

5 million

2012-2015
(10 to 35-year-olds to improve their money management, life and enterprise skills)

13

We will track our progress in delivering the objectives and commitments set out in our plan through a robust reporting framework, published annually in our Citizenship Report.

Your feedback
We invite your feedback on the following: 1. What aspects of the plan, if delivered, do you regard as the most vital to restoring the industry’s reputation? What changes to the plan would improve its impact? 2. How strong a sense of Barclays commitment to Citizenship does the plan create with you? What changes would improve that sense of commitment? 3. Outside of the plan, what evidence could Barclays provide to give you a sense of progress and/or improve your sense of our commitment? 4. How would you like to be involved as Barclays evolves its plan and creates opportunities to demonstrate progress and its commitment? We encourage you to write to us with any views on the above, or otherwise, at citizenship@barclays.com

14

Registered office: 1 Churchill Place, London E14 5HP. Registered in England. Registered No: 48839. © Barclays Bank PLC 2012