2006 2005 % change
Financial Total income net of insurance claims £21,595m £17,333m 25%
Proﬁt before tax £7,136m £5,280m 35%
Tax £1,941m £1,439m 35%
Earnings per share 71.9p 54.4p 32%
Dividend per share 31p 26.6p 17%
Tier 1 capital ratio 7.7% 7.0% –
Total shareholder return 25% 21% –
Customers Total customers 27m 25m 8%
Number of branches outside the UK (including Absa) 1,613 1,516 6%
Total UK current accounts 11.5m 11.1m 4%
Barclaycard: International cards in issue 6.4m 4.3m 49%
Employees Full-time equivalent (FTE) 122,600 113,300 8%
Total employee remuneration £8,169m £6,318m 29%
Employee opinion survey: Response rate 87% 84% –
Employee opinion survey: Employee engagement 76% 72% –
Environment UK CO2 emissions 222,773 tn 210,178 tn 6%
UK carbon intensity (tonnes CO2/£m income) 16.2 16.8 (4%)
UK energy consumption (ofﬁces) 472 GWh 497 GWh (5%)
UK energy consumption (ofﬁces) per person 7,544 kWh/FTE 7,925 kWh/FTE (5%)
Water use per person 11.9m3/FTE 12.3m3/FTE (3%)
Environmental Management System coverage:
• UK 100% 95% –
• Africa, Americas and Asia Paciﬁc 94% 25%(a) –
Community Total investment £46.5m £39.1m 19%
Volunteers: time committed 75,586 hrs 77,413 hrs (2%)
Employee participation: community programmes 33,000 people 27,000 people 22%
(a) 2005 ﬁgures do not include Absa.
Member of the Member of the BITC Corporate PerCent Club Carbon Disclosure
2006 Dow Jones 2006 FTSE4Good Responsibility Project
Sustainability Index Index Index Ranked in the top
3rd position 50 of the global
FT 500 companies
Introduction Responsible banking Inside Barclays Measuring performance
1 Group Chief Executive’s 8 Our customers 37 Our people 57 Data tables
introduction 13 Responsible lending 42 Managing our IBC External assurance
2 Barclays around the world 16 Financial inclusion environmental impact statement
4 Corporate Responsibility 22 Financing commercial 46 Barclays in the community BC Contact details
Director’s statement customers 52 Our governance framework
6 Summary of our 26 Growing internationally 54 Creating value for
commitments 31 Facing climate change stakeholders
34 Working with our suppliers 55 Engaging our stakeholders
Group Chief Executive’s introduction
John Varley Group Chief Executive
In the year since we issued our last report, key stakeholders and have improved our
there has been a further marked increase in performance in a number of ethical indices.
the importance attached to Corporate In support of our commitment to raise the
Responsibility (CR). Over the course of the proﬁle of CR further, Gary Hoffman, the
last 12 months, CR has become more than
I want us to be leaders, Group Vice Chairman, now represents this
just good business sense – in 2007 no not followers, in corporate agenda at Board level. We made progress
organisation can afford to ignore its scope responsibility. with innovative ﬁnancial inclusion
and its implications for business. programmes in the UK and Africa, while
Absa became the ﬁrst major South African
There are two key developments driving
guidelines. But we need to plan for the years bank to achieve ISO14001 accreditation for
this change. The ﬁrst is the growing, and
ahead so we are undertaking a thorough its environmental management system.
increasingly widespread, understanding
review of our environmental and climate
of the consequences of climate change. Sustainability is an appropriate topic for an
The second development is the evolving organisation that can trace its roots back well
debate around sustainability, and the long- Preserving the environment for future over 300 years. But I am looking to the future
term impact business has on the societies generations reflects the evolution in when I say that we are fully committed to
and economies in which it operates. Neither thinking on sustainability, and the need to action – we must debate, we must learn and
of these issues is particularly new – what is assess the impact of business over decades, then we must act, to ensure the successful
unprecedented, however, is their adoption rather than years. It shifts the emphasis and responsible development of our
and embrace by so many different and from a relatively near-term focus on business in the years ahead.
interested parties. managing social, ethical and environmental
risk, towards a more active form of business
Banks play an important role in influencing
leadership, which identiﬁes and embraces
thinking and behaviour on both these
the commercial opportunities arising from
issues, through their relationships with
this change in thinking. Sustainability is also This is our eighth Corporate Responsibility
customers, clients, employees, suppliers,
very much about playing our part in building Report. It is intended for all those
a more inclusive and just society, by stakeholders who are interested in the
organisations and other stakeholders.
addressing acute challenges such as
This role as influencer is a core tenet of Speeding up making towards our goal
progress we are the mortgage
ﬁnancial exclusion. This has always been an of sustainability.
responsible banking – which embodies
area of strength for Barclays and we remain process
the Barclays approach to CR. I repeat my We aim to set out why corporate
determined to build upon it, both in the UK In 2006 we asked a panel of 100
message from last year’s report: I want us responsibility is an integral part of our
and in our strongly growing business across customers about their experiences of our
to be leaders, not followers, in corporate business strategy and how we are
emerging markets – particularly in Africa. mortgage application process, and as a
responsibility. addressing and prioritising the social,
We make our greatest contribution to result we decided to bring the business
If we look at climate change, it is right environmental and ethical challenges
society by being good at what we do, and back in-house, including the servicing arm
that Barclays should assess – as others and opportunities we face in our business
so ensuring Barclays continued success. of it.
quite properly will – whether we are around the world.
This is at the heart of our ability to help our Even though the volume of business is
doing enough to tackle an issue with Barclays is committed to transparency in
customers and clients achieve their goals growing rapidly at the moment the
such signiﬁcant consequences. We have the reporting of these issues and, to this
through providing competitive products feedback about the new approach is
done much to address our direct end, our report has been produced taking
and services, as well as supporting positive so far, and the average time it
environmental footprint, and have fulﬁlled account of the international AA1000
economic growth and sustaining healthy takes to get from application to offer is
the commitment we set last year to make Standard and in accordance with the
ﬁnancial systems. We must demonstrate down to 10 days from 16, an
our UK operations carbon neutral. In our 2002 GRI sustainable reporting guidelines,
by our actions how it is possible to make improvement of 37%.
direct sphere of influence, we are well under including the Financial Sector Supplements.
a signiﬁcant and lasting difference.
way with environmental as well as social A full GRI analysis is available at
and ethical screening of our supply chain. Last year, we made encouraging progress in www.barclays.com/
In our lending activity, we have signiﬁcantly CR. Under Alastair Camp’s leadership, we corporateresponsibility.
updated our environmental as well as social are developing broader relationships with
Corporate Responsibility Report 2006 1
Barclays around the world
Operating in over 50 countries and
employing 123,000 people, we move,
lend, invest and protect money for
over 27 million customers and clients
the world over.
UK Banking Barclaycard International Retail and
Commercial Banking (IRCB)
Delivers banking solutions to Barclays UK A multi-brand consumer lending business Provides Barclays international personal
retail and business banking customers. which also processes card payments for and corporate customers with banking
It offers a range of integrated products and retailers and merchants and issues credit and services. The products and services offered
services and access to the expertise of other charge cards to corporate customers and to customers are tailored to meet the
Group businesses. Customers are served the UK Government. It is one of Europe’s regulatory and commercial environments
through a variety of channels comprising the leading credit card businesses and has an within each country.
branch network, automated teller machines, increasing presence in the United States.
telephone banking, online banking and
relationship managers. UK Banking is
managed through two business areas,
UK Retail Banking and UK Business Banking,
the latter providing relationship banking to
medium-sized and larger business customers.
www.barclays.co.uk/business www.barclaycard.com www.barclays.com
2 Barclays PLC
Corporate Responsibility Report 2006
UK Banking and
all other businesses
Isle of Man
UK Banking Barclays Capital
Jersey/Guernsey Germany Japan
Barclays Wealth Barclaycard Barclays Capital
France Switzerland Barclays Capital BGI
IRCB Barclays Capital BGI South Korea
Barclays Capital BGI
Luxembourg Barclays Capital
Spain Italy Taiwan
Barclaycard Monaco Barclaycard Barclays Capital
Barclays Capital Barclaycard Barclays Wealth Barclays Capital
Cyprus Hong Kong
Barclays Wealth IRCB Barclays Wealth
Barclays Capital Malta Barclays Barclays Capital
Gibraltar Barclays Wealth Barclays Wealth
Barclays Wealth Thailand
United Arab Emirates
Egypt Barclays Capital
Barclays Capital IRCB
Uganda Barclays Wealth Barclays Capital
Kenya Barclays Capital
Barclays Wealth Tanzania Seychelles
Barclays Wealth IRCB
IRCB Barclays Capital
Zambia BGI Indonesia
Barclaycard Barclays Wealth
Mauritius Barclays Capital
South Africa Zimbabwe Barclays Capital
Barclaycard IRCB BGI
Barclays Capital Barclays Global Investors (BGI) Barclays Wealth
A leading global investment bank which One of the world’s largest asset managers Serves affluent, high net worth and
provides large corporate, institutional and and a leading global provider of investment intermediary clients worldwide, providing
government clients with solutions to their management products and services. private banking, asset management,
ﬁnancing and risk management needs. BGI offers structured investment strategies stockbroking, offshore banking, wealth
Barclays Capital services a wide variety of such as indexing, global asset allocation structuring and ﬁnancial planning services.
client needs, from capital raising and and risk controlled active products Barclays Wealth works closely with all other
managing foreign exchange, interest rate, including hedge funds and provides related parts of the Group to leverage synergies
equity and commodity risks, through to investment services such as securities from client relationships and product
providing technical advice and expertise. lending, cash management and portfolio capabilities.
www.barclayscapital.com www.barclaysglobal.com www.barclayswealth.com
Corporate Responsibility Report 2006 3
Corporate Responsibility Director’s statement
Setting the right priorities
Alastair Camp Corporate Responsibility Director
During the year we engaged actively Operating a responsible business
with our many stakeholders. In this report,
we discuss the subjects they consider most
important, and how we use our dialogue Why we are in business:
to inform our responsible banking agenda • Helping customers
Our achieve their
and to set the right priorities. We talk about Business financial goals.
how we are responding to feedback, and Purpose • Total Shareholder Return.
speciﬁcally to the annual consultation on
our last Corporate Responsibility Report Our strategy
and the opinions provided by our
external assurer. Stakeholder Risk mitigation
Economic and commercial
We took the deliberate decision to opportunity
raise our proﬁle in this area over the
past year, undertaking a much broader
programme of consultation with
stakeholders, particularly investors and
NGOs. We have spoken more often, and Our Foundation Stones Our values
more publicly, on corporate responsibility
Code of Statement
questions, because these events give us Guiding
the opportunity to exchange views openly, Rights
and we have found that this has created
a virtuous circle of further dialogue and
action. Climate change, ﬁnancial inclusion
in the UK and Africa, and the incorporation
of social and environmental concerns into
lending guidelines, are all good examples The judgements we make in our The issues reflect both ‘direct impacts’
of areas where we have beneﬁted from prioritisation take into account: (which derive from our own business
external input. activity) and ‘indirect impacts’ (which are
• Our overall business goals.
the result of actions taken by our customers
• An assessment of the strength and
How we prioritise our issues or suppliers).
breadth of stakeholder views.
The idea of sustainability is an integral part
• How we can build employee and Looking ahead, our main challenges for
of our commercial strategy, as well as the
customer trust, and the reputation and 2007 are to:
way we do business. As a global business,
value of our brand.
we are concerned with a wide number of • Ensure that our strategy remains
• How social and environmental insights
social, ethical and environmental issues. responsive to the fast-developing issue
can assist the development of our
We have well-established procedures to of climate change.
business around the world, and open
ensure that we assign the right priority to • Develop our ﬁnancial inclusion and
up new commercial opportunities
each of them, which take account of our Microbanking programmes further,
(for example, through the opportunity to
own business strategy alongside a careful especially in the developing world.
develop innovative customer products
assessment of their importance to our
and services). These priorities are reflected in our progress
• How we can best mitigate our report and new commitments for the
operational and reputational risks. forthcoming year.
The structure of this report highlights the
main topics on our corporate responsibility
agenda, and shows how these relate to our
business strategy, and to our business units.
4 Barclays PLC
Corporate Responsibility Report 2006
Linking CR issues to our business strategy
We think it is important to link the CR issues covered in this report with our business
Acting on feedback
strategy and show the main business units to which the issues relate. After the publication of our last Corporate
Barclays business strategy has four core priorities: Responsibility Report we undertook
extensive consultation with investors,
A Building the best bank in the UK. consumer groups, global and national
B Accelerating the growth in our global businesses (investment banking, institutional NGOs, governments, media and corporate
asset management, wealth management and international cards). responsibility specialists. Their views were
C Developing retail and commercial banking in selected countries outside the UK. many and varied, but there were some
D Enhancing our operational excellence.
The table below shows these links in more detail.
Report section – Key CR issues covered Link to Barclays Principal business units to
business strategy which issue relates • Our ‘responsible banking’ theme was
well received as a good way to integrate
Responsible banking corporate responsibility with business
Our customers strategy.
Treating customers fairly, customer A, B, C, D All businesses • People liked the issues-based approach
satisfaction, secure delivery channels, and context: 88% of respondents
anti-money laundering agreed that the issues we chose should
indeed be our major concerns.
Responsible lending • 75% of previous respondents felt
Levels of consumer indebtedness A, D UK Retail Banking, Barclaycard that we had acted on the feedback
Financial inclusion they had given.
Improving access, affordable credit A, C UK Retail Banking, Barclaycard, • The sections on ﬁnancial inclusion,
and savings for excluded groups; International Retail and Africa, community investment and
environmental management were seen
developing ﬁnancial capability Commercial Banking (IRCB)
as particularly strong.
Financing commercial customers
Sustainable lending: environmental A, B, C Barclays Capital, Negative comments – and how we
and social impacts UK Business Banking, IRCB have responded
• People felt that there was a need for
more detail in the consumer lending
Supporting development C IRCB
section. We have included more
and inclusion; HIV/AIDS
background on this issue this time.
Facing climate change • We were asked for more detail on how
Managing our carbon emissions; A, B, C, D All businesses we prioritise our corporate responsibility
developing climate related products issues. We cover that in this report,
together with a statement of how we
Working with our suppliers create value for all our stakeholders.
Supplier management D All businesses • People wanted us to ensure that wider
issues that are important to other
stakeholders are also included. We have
Inside Barclays aimed to give a broader context in this
Our people report, as well as including candid
Our values, talent and A, B, C, D All businesses views from other organisations
development, diversity involved in these ﬁelds – even if we do
not always agree with them – and say
Managing our environmental impact where we disagree.
Managing our physical resources, D All businesses • More detail was requested on how
reducing our footprint corporate responsibility is integrated
Barclays in the community into the business. A more detailed
Global community A, B, C All businesses section on governance is included
investment strategy this time.
The Barclays Annual Report 2006 provides more detail on strategic and ﬁnancial
progress and can be found at www.investorrelations.barclays.com.
Corporate Responsibility Report 2006 5
Summary of our commitments
Goals in 2006 Progress Commitments for 2007
Our customers • Develop new electronic payments • New faster payments service is on • Maintain momentum on customer
27 million customers service, ready for launch by end 2007. track for November 2007 launch. service and satisfaction.
and clients worldwide • Continue to improve customer • Progress sustained – customer • Complete the Barclays/Woolwich
satisfaction in UK Retail Banking. advocacy up 10% since end 2004. branch and infrastructure
• Continue development of online • Strong focus of attention – • Continue to improve disability
banking security features. continual improvements made. access to products and delivery
Responsible lending • Encourage an increase in the • Most major credit card issuers have • Drive progress on data sharing
Taking a lead role on number of organisations sharing signed-up to ‘Behavioural data initiatives.
data sharing credit information. sharing’ and good progress achieved • Continue data review to ensure we
on current account data sharing. make the best credit decisions for
• Pilot programme to identify and help • Pilot scheme implemented ﬁrst • Develop electronic information
customers who may be approaching half 2006. to help customers make informed
ﬁnancial difﬁculty. decisions.
Financial inclusion • Embed the Ghanaian Microbanking • Programme has reached 80,000 • Reach 500,000 people through
Barclays and Absa have programme; use learning to develop market traders; extended to credit Microbanking in Ghana.
opened almost one million new microﬁnance initiatives. union sector.
basic bank accounts • Review our UK basic banking • Consultation with three consumer • Target Cash Card customer
proposition to ensure it meets the groups has led to product satisfaction score of 89%.
needs of a diverse customer base. enhancements.
• Encourage a strong UK community • We remain the leading private • Play a leading role in driving
ﬁnance sector. sector supporter of credit unions sustainability in the credit union
in the UK. sector to reduce ﬁnancial exclusion.
Financing commercial • Improve understanding of social • Lending sector guidance reviewed • Continue environmental and
customers issues relating to Equator Principles and extended to cover our whole social risk training programme.
Our revised environmental and include in updated sector commercial lending book
and social sector guidance guidance. (over 50 sectors).
has been shared with • Provide training on environmental • Training conducted for over 120 • Collaborate with United Nations
170 institutions risk and the Equator Principles to employees in project ﬁnance, Environment Programme to
colleagues in Absa. investment banking and credit develop our approach to human
teams. rights in risk management.
Growing internationally • Expand branch and cash machine • Customers have access to some • Signiﬁcant growth in branch and
Ten million customers network in South Africa. 6,700 cash machines (up 16%) cash machine network across our
in Africa and 749 branches. African businesses.
• Increase take-up of Mzansi basic • We now have 518,000 Mzansi basic • Grow basic banking services
bank account in South Africa. bank accounts in South Africa. targeting disadvantaged people.
• Further develop HIV/AIDS • Leading HIV education, counselling • Continue progress towards the
awareness and participation in and testing programmes in place achievement of Black Economic
employee welfare programmes. across African businesses. Empowerment targets in
6 Barclays PLC
Corporate Responsibility Report 2006
Goals in 2006 Progress Commitments for 2007
Facing climate change • Make UK operations carbon • UK carbon neutrality achieved. • Work towards becoming globally
Our UK operations neutral. carbon neutral.
are now carbon neutral • Renewable energy purchased for • Source renewable energy for
50% of UK operations. international operations.
100 % • Investigate carbon management
services for SMEs, personal
customers and employees.
• UK carbon neutral debit card
• Develop further environmental
products for personal customers
and launch employee guide on
climate change actions.
Working with our • Review our suppliers using • New corporate responsibility • Continue application of
suppliers enhanced screening tool and build supplier questionnaire launched. questionnaire to medium and
57 medium and high-risk into new supplier contracts. • 57 medium and high-risk suppliers high-risk new and existing
suppliers and reviewed to date (see page 35). suppliers.
of supplier spend reviewed
Our people • Further improvement in key • Good progress: employee • Improve employee opinion scores
123,000 employees in employee opinion survey scores. engagement up from 72% to 76%. to high-performing norm.
over 50 countries • Acquire and develop talent with • Focus on talent sustained – 21% of • Improve satisfaction scores
increased momentum. senior managers are now female. for disabled, gay and lesbian
• Ensure line managers have the • In place. Strong focus on talent • Increase the proportion of women
tools they need to meet the ‘Best recruitment and development. in senior grades.
People’ guiding principle.
Managing • Meet 2006 environmental • Good progress on energy use in • Continue progress towards 2010
environmental impact improvement targets. ofﬁces, water and waste targets – CO2, energy, water and
First position amongst management. waste (see page 58).
banks in the Dow Jones • Implement our Environmental • Absa in South Africa and Barclays • Continue to extend the EMS
Sustainability Index for Management System (EMS) in France achieved ISO14001 internationally.
environmental reporting Italy and South Africa. certiﬁcation. • Establish new programmes to
eliminate sources of waste.
Barclays in the • Launch programmes with Help • Partnerships successfully launched • Increase participation in employee
community the Aged and NCH, the children’s in June 2006. community programmes by 5%.
£46.5 million global charity.
investment • Develop a co-ordinated global • New programme developed and • Drive globalisation of community
in our communities community investment rolling out through 2007. programme, increasing non-UK
programme. funding to 25% of total.
• Increase participation in employee • 33,250 employees participated in • 30% of community investment to
community programmes 2006, an increase of 22%. be focused on ‘Banking on brighter
(volunteering, fundraising futures’ theme (see page 48).
Corporate Responsibility Report 2006 7
Signiﬁcant investments are being made to
ensure that our customer service standards
are consistently achieved.
8 Barclays PLC
Corporate Responsibility Report 2006
Work in progress
Everything we do starts with our customers. That may sound like a truism but
we are in business to help them. Our customers are at the heart of what we do,
although the banking industry as a whole has not always had a strong reputation
for customer service. From a Barclays perspective, we have set ourselves high
standards for customer service right across the Bank. That clear intent is being
backed up by signiﬁcant investments to ensure that our standards are
Fair play Consumer Code. The main areas which
There are certain basic principles that have been updated are access to basic
underpin everything we do in relation to bank accounts, how changes to the interest
our customers: we should be open and rates applicable to savings accounts are
At a time of falling customer managed, and the way credit assessments
transparent, we should ensure that our
products always meet genuine needs, and trends [across the ﬁnance are conducted before loans are made.
we should give people all the information industry], Barclays improved its
they need to make an informed choice. position and is now ﬁrst among Products
Treating customers fairly is not just about
We are embedding these principles into the UK banks in terms of good customer service, it is also about
the way we do business by aligning many customers believing it takes developing the right products, and
of our employees’ pay and performance
targets with the quality of service which
its CR seriously. providing clear and straightforward
information about them. We are working
customers receive. In the past we had a hard to make all of our products simpler
Source: MORI survey, 2006
more traditional approach to sales and and more transparent. An example is the
targets, but now customer satisfaction ‘lifetime tracker’ mortgage, which was
plays a key role. For example, in Barclays
Treating customers fairly Wealth, rather than have a sales incentive Investing in training
Our own principles on fairness reflect the structure, our focus is on providing the right In the UK all our cashiers now go through
Financial Services Authority’s agenda on product for each customer, adapted to their a 16-week induction programme, which
treating customers fairly. This covers own circumstances and attitude to risk. covers detailed training on our systems
subjects such as: Across our retail business we have made as well as modules on customer service.
complaint-handling a particular priority. This is followed up with ongoing
• Product design
We have overhauled many of our assessments back at their branch, which
• Marketing and promotion
procedures, and improved the way we lead eventually to full accreditation.
• Sales and advice processes
investigate the root causes of the most Last year, 1,400 employees successfully
common problems. A ‘Red Flag’ scheme completed the scheme.
• After-sales information
• Complaint handling has also been introduced which means In South Africa, Absa runs a full set of
that customer feedback can be acted upon training programmes, and in 2006 a total
within 24 hours. of ZAR 118 million was invested in the
Barclays continues to support the Banking training of 21,000 employees.
Codes in the UK which provide – via self-
regulation – additional protections to
consumers and to businesses, charities,
clubs and associations. In 2006 we worked
with the British Bankers’ Association to
make further improvements to the
Corporate Responsibility Report 2006 9
developed in response to customer We launched a revised and more
feedback, and has no application fee and Assets under management comprehensive website, covering
no tie-ins. Barclays Global Investors (BGI) is one of disability access to all our branches,
the world's largest managers of exchange products and services. We also made
We are responding to the growing requests
traded funds under the iShares brand, changes to our online banking service
to clear payments more quickly. We have
which are index funds that trade like for visually impaired customers,
been giving immediate value on personal
shares. Each share represents a portfolio including improvements on-screen
cheques up to £1,000 paid into Barclays
of stocks designed to track closely one and new speech reader software (visit
accounts for over eight years, but this is
speciﬁc index. These investment products www.barclays.co.uk/accessibleservices/
an issue that affects the whole banking
trade on a stock exchange and can be branch_banking.html for more
sector, and it will only be fully resolved by
bought through most stockbrokers, information, or call Barclays Information
taking an industry-wide approach. We are
allowing the flexibility to invest in indices Line 0800 400 100).
working with other banks and APACS, the
UK trade association for payments, to focusing on environmental, social and In preparation for the Mental Capacity
develop an electronic payments service governance criteria, such as iShares KLD Act, Barclays is implementing processes
that can transfer cleared funds within two Select Social Index Fund and iShares KLD and training to equip our frontline
hours. This is scheduled for launch in 400 Social Index Fund. employees with the necessary knowledge
November 2007. BGI is also one of the largest asset and skills they need to deliver the right
management companies in the world with services. We applaud the goals of the Act,
We have responded to the very different
over US$1.8 trillion under management; it but believe that it represents a challenge,
circumstances of the African market by
has over 2,800 clients in 52 countries. By particularly with regard to employees being
introducing a different way of assessing
serving institutional asset management required to make judgements on the mental
applications for loans from small- and
clients with actively managed and indexed capacity of customers.
medium-sized businesses. Many of these
customers simply do not have traditional strategies, our investment returns are Our new ofﬁces in Zaragoza, Spain, are
ﬁnancial statements that they can show us, beneﬁting tens of millions of individual being designed with accessibility in mind.
and we now make our decisions based on pension participants worldwide, providing So far 29 of our ofﬁces across Spain have
their bank account and how they have consistent and reliable returns to finance been through the programme which will
managed it. their retirements. be completed in 2007.
In June last year we announced that we
Branches and ATMs
planned to integrate the branch networks
For many customers, our branches are the UK, where some of our branches have
and supporting infrastructure for Barclays
Barclays front door. We are making large needed refurbishment. Likewise many
and the Woolwich. This will mean extra
investments in Spain, Portugal and Italy, branches have been made more accessible
investment in the newly combined branch
where we opened 50 new outlets in 2006, for disabled people. We have spent a total
network, and in the Woolwich name as
taking the number in those countries to of £84 million on this programme, and 95%
our flagship mortgage brand. Under these
some 590. And in Africa, Absa and our of our branch network now has disability
plans Woolwich and Barclays branches
other businesses on the continent are all access. This represents the large majority
within 300 metres of each other will be
focusing on extending their reach, of branches that can have their access
consolidated onto one site. The aim is to
especially into rural areas, where we are improved; whilst our ideal is complete
avoid duplication and improve customer
using creative new ways to offer branch accessibility, issues such as planning
service by using the same IT systems across
services even where we do not have a permission and the physical structure of
the network. Woolwich customers will get
traditional bricks-and-mortar building. some buildings make this impractical.
access to four times as many branches as
There is more detail on this in the chapters
Where we cannot improve accessibility, we before, as well as to Barclays ATMs and
on ﬁnancial inclusion and growing
still provide the same features for disabled some 12,000 Post Ofﬁces where Barclays
customers as are found in our other current account customers can withdraw
In terms of the overall Barclays branch branches, such as hearing induction loops cash free of charge.
network the obvious priority has been and low-level writing surfaces.
Improving our service
Signiﬁcant investment in the principles of
Treating Customers Fairly means better
products, more employee training and an
improved experience for our customers.
10 Barclays PLC
Corporate Responsibility Report 2006
in the short term. However, through further
investment in the network over the next two Speeding up the mortgage
years, we expect our ATM numbers to process
Once complete, these return to pre-integration levels.
improvements will make all of our In 2006 we asked a panel of 100
Customer satisfaction customers about their experiences of our
branches available to all of our mortgage application process. Their input
In last year’s report we talked about the
customers, who will see familiar fact that we needed to improve the levels helped us decide to bring the business
faces serving them in better of customer satisfaction in our UK retail back in-house, including its servicing arm.
looking and better equipped business. Our overall strategic aim for Even though the volume of business is
premises. the UK Retail Bank is to build the best growing rapidly, the feedback about the
bank in the UK, and our aim is to do that new approach is positive, and the average
through sustained focus on excellence time it takes to get from application to
Chief Executive Ofﬁcer, UK Retail Banking in customer service. offer is down by 32%.
A great deal of effort has gone into this in
the last 12 months: we have invested in
modernising our branches, and we have
sharpened up our internal processes.
Our customer satisfaction scores are now Barclays Capital and Barclays Global
We expect no frontline job losses as a result. improving, and the number of customers Investors. Likewise the operations in Africa
However, three back ofﬁces are expected to who would recommend Barclays has also and the Indian Ocean are well ahead of their
close. Our union, Amicus, has been advised gone up by 10% since the end of 2004. competitors, and Absa is ranked joint ﬁrst in
on the plans and employees informed of South Africa.
We have succeeded in reducing queuing
the potential future impact. These ofﬁces
times in our branches this year – the Absa was rated the most caring company
have a combined workforce of 1,200 but,
average is now under three minutes, in the ﬁnancial sector in the South African
through employee turnover and taking
compared with a high of 4.5 minutes Corporate Care Check survey. It was also
steps to redeploy where possible, we are
in 2004. third amongst all South African companies.
working towards ensuring redundancies
are signiﬁcantly fewer than this. Overall, the We have always had a strong reputation Barclays Spain was ranked third in
workforce of UK Retail Banking is expected for customer service in Spain and Portugal, the country for customer service in a
to remain broadly in line with the current in UK Business Banking, Barclays Wealth, recent survey.
number of 32,000. We continue our
commitment to remaining in any town Safer banking
where we are the last bank branch. UK branches reduced queuing time (minutes) The conﬁdentiality and security of our data
As for cash machines, we have the third- and transactions is one of our highest
largest ATM estate in the UK, and our priorities, and we know that customers are
customers also have access to some 34,500 increasingly concerned about this topic.
free LINK cash machines. All of our ATMs Throughout the world we work closely with
are free to use both for our customers and all the relevant authorities to ensure that
our competitors’ customers, as our signage we play our full part in the ﬁght against
at these machines makes clear. And 92% ﬁnancial crime and terrorism.
of our machines are at a height that suits 2004 We know that our customers value the
wheelchair users, a ﬁgure expected to freedom and convenience of online
reach 98% by the end of 2007. As Barclays banking: in Spain, 54% of our customers
and Woolwich fully integrate, there will be now use internet banking, and that
some decrease in the number of our ATMs 0 1 2 3 4 5 number is rising annually by 25%; in South
Free LINK cash machines Percentage of our cash machines that are Post Ofﬁces where our current account
at a height that suits wheelchair users customers can withdraw cash free of
34,500 92 %
Corporate Responsibility Report 2006 11
Africa the growth rate is more like 90%. We guarantee to refund any UK customer
However, the flexibility of internet banking who has innocently suffered internet Dealing with money laundering
can come at a price. There are a number of fraud on their Barclays account. There is Our anti-money laundering policies are
possible security concerns here, including more information about this at designed to make sure that we observe
‘trojan’ viruses and ‘phishing’ (scam email www.barclays.co.uk/security. the highest ethical standards. They cover
attacks). In response to this we are making issues such as training and accreditation
All Barclays cash machines are protected
free anti-virus software available to for our employees, and the use of IT
with ‘anti-skimming’ devices, which ensure
customers in the UK, Spain and South systems to monitor and report on
that customers’ card details cannot be
Africa, and we update our online security anything that appears suspicious. Barclays
stolen by fraudsters. Our ATM cards are
pages on a regular basis. Wealth has reviewed its processes to
protected by Integrated Chip and PIN
We have also introduced a free SMS text technology and over one million customers ensure that they meet the strictest
alert service in the UK and Spain, which are now using Barclaycard Secure, a process requirements of international compliance
sends our online banking customers an which gives them better security when they and control, especially given the volume
alert when they set up a new third-party are shopping online. of cross-border activity undertaken.
payment, to check its authenticity. The next
step will be the introduction of ‘two factor There is more detail about our
authentication’– in other words Chip and customers on the website at
PIN technology combined with a hand-held www.barclays.com/ourcustomers.
card reader. Our goals, progress and commitments
for 2007 can be found on page 6.
12 Barclays PLC
Corporate Responsibility Report 2006
Understanding the issue
With UK consumer debt now standing at a record £1.3 trillion, the subject of
responsible lending has understandably received a good deal of press coverage.
But media reports have not always given an accurate picture of the wider
context. We have dedicated considerable time and resources to dealing with
this issue, but before we talk about what we are doing, here are some basic
facts and figures about consumer lending in the UK.
Lending in context Of the remaining £213 billion, a large As one of the leading credit card companies
For several years now levels of consumer proportion is structured debt, in other words in Europe, Barclaycard clearly has a
debt have been rising, but there are positive lending with a fixed repayment schedule. responsibility to listen to these criticisms
as well as negative aspects to this. Consumer And of the remainder, credit card borrowing and take the lead in doing something
borrowing has not only supported the accounts for £55 billion, and most of that is about them. We talk later in this section
country’s economic prosperity, with growth either being repaid in full every month, or about the specific work we have in hand,
fuelled by retail spending but, in general, being managed without problem. but the main point is that we are committed
more flexible access to credit has also been to both fairness and transparency in lending
Even though credit card borrowing only
good for the individuals concerned. At the and, as the market continues to develop in
accounts for a very small proportion of the
same time, interest rates have been at response to customer demand, we will do
total, the wide choice of products available
historically low levels, and seem likely to more to look at the deeper causes of
and level of marketing means that public
remain relatively low. So while debt has risen excessive borrowing.
attention tends to focus on this particular
considerably, the majority of people are product whenever the issue of consumer Given the increasing complexity and variety
managing that debt without difficulty. debt arises. Critics have said that the terms of lending products available in the market,
It is also important to look behind the and interest rates that apply to cards are not we have put greater focus on ensuring that
headline figures. As the diagram shows, clear enough, and that the industry as a our marketing practices are responsible and
of the total £1.3 trillion that has attracted whole has encouraged people to borrow transparent. It is our responsibility to ensure
so much attention, £1.08 trillion is more – and take out more cards – than they that our products and their terms are clear
secured debt, most of it mortgages. can afford. to customers. Nevertheless there will always
be some individuals who will get into
Total consumer debt in 2006 difficulties with their borrowings, however
strictly the banking sector is regulated – or
Secured lending Total unsecured lending Regardless of how low this figure is, it is
£1.08trn £213bn important to address the issue and at
Barclays there are two fundamental aims:
84% 16% first, to ensure that the number of people
in difficulty, or at risk of becoming so, is as
of which, low as possible and, secondly, to provide
credit card lending, support and guidance to those in difficulty,
£55bn or to those who need our help.
4% Preventative measures
There are two aspects to our work on this.
Within Barclays we are making better
decisions about how much we lend, and
to whom, partly by sharing data with other
Source: Bank of England lenders. And in parallel with this we are
Corporate Responsibility Report 2006 13
encouraging customers to take more to highlight the potential value of having
control and responsibility for their own access to other data sources, such as
finances by developing better products, student loans, council tax payments,
providing better and clearer information, and utility bills.
and supporting financial capability
And following extensive work across the
banking industry, in 2007 we are also in
a position to share positive data, such as
limits and balances on current accounts.
We talked in last year’s report about the
This gives us access to additional
benefits of data sharing for the industry as
information which will help us to make
a whole, and more progress has been made
the best possible credit decisions.
in the last 12 months.
We fully understand the sensitivities
The agreement we pioneered with other
surrounding the disclosure of personal data
lenders to share behavioural data is now
and we want to be sure that it is secure and
supported by the majority of the other big
only used in responsible and appropriate
credit card issuers. Barclaycard was the first
ways. To achieve this, we continue to play a New services
UK issuer to share data – such as a series of
leading role in the industry-level work to
minimum payments across multiple cards After text messages were sent to
identify ongoing improvements to the UK’s
or extensive cash advances – which can customers in May, 15,000 regular late-
data sharing governance model.
help us spot customers’ problems in the payers set up a direct debit.
early stages. We expect other issuers to be We seek to improve lending practices to
in a similar position over the course of 2007. keep pace with the market as it develops.
Around 350 million accounts are already For some time we have maintained a ‘low For example, our Flexi-Rate card offers
part of this scheme. A key objective for and grow’ approach whereby customers a lower APR to those who repay more of
2007 will be to start identifying sudden new to credit are given low credit limits. their balance each month. And we have
and extreme changes in customers’ We will only increase this limit once they seen that Flexi-Rate customers are half
circumstances, which look very different have shown that they are able to manage as likely, compared with other customers,
in behavioural terms from a gradually their finances in a responsible fashion, consistently to repay only the minimum
increasing problem. for example, by consistently meeting their amount.
monthly commitment. We have also
The behavioural data sharing project is one Alongside new products we have
introduced other measures, such as
of a number of data sharing initiatives in introduced additional services to give
reduced credit limits, to help ensure that our
which Barclays is playing a leading role. customers more control. For example, to
customers do not over-commit themselves.
Other opportunities include working with help people repay on time we can send text
Callcredit (a UK credit reference agency) alerts to customers five days before their
More appropriate products
on an ‘over-indebtedness initiative’ which monthly repayment date, and put more
One way to encourage responsible
allows us to test the value of sharing certain personalised messages on their statements.
card ownership is to develop products
information relating to a customer’s These help people who often pay late or
that reward customers who manage
income, and working with Government only pay the minimum, by giving a useful
their debt sensibly.
Initiative Data shared Purpose Who is involved?
Historic (‘Non- This is data from customers who signed To allow the inclusion of data A cross-industry effort, where
Consensual’) agreements before Data Protection sharing for ‘long-standing’ customers, numerous responses to a DTI-led
data sharing notification clauses allowed the sharing of helping to address the ‘gaps’ in credit files consultation were submitted in
positive data January 2007
Behavioural Additional data to be shared for credit To increase our ability to identify sudden Barclays is playing a lead role on this
data sharing cards, for example, payment amounts, and severe changes in customer project under the auspices of APACS,
credit limit changes and cash advance circumstances the UK trade association for payments,
activity with a majority of issuers now engaged
Callcredit Over – Current account turnover and income To provide data about income and Being piloted by Barclays and four
indebtedness declared on loan applications debt levels other banks
Data sharing A detailed review of the governance To ensure that processes remain effective Led by the British Bankers’ Association
governance processes surrounding data sharing and managed through a cross-trade
association stakeholder group
14 Barclays PLC
Corporate Responsibility Report 2006
website to make sections offering help address financial problems sooner rather
and guidance more prominent. As part than later.
of this we have added links to the FSA’s
The Resolution Foundation, a www.moneymadeclear.fsa.gov.uk and
We are working on improving the service we
new think-tank, says that many offer to customers with serious difficulties.
APACS’ www.choosingandusing.com in
The basic principle is one-to-one contact,
of the 12 million people on low- order to help customers make an informed
and the development of a joint plan to deal
decision about whether, and how, to
to-moderate incomes are making with the problem effectively. We want to
borrow. This is the first part of an ongoing
the worst decisions. Yes, they plan to improve the way we communicate
help people find the right solution for their
situation, whether it be an agreement with
should have read the small print. with our customers and help them make
us, a structured debt management plan or,
But the plethora of products is better decisions.
in extreme cases, an Individual Voluntary
extremely confusing. Another new idea this year was a leaflet Arrangement (IVA), or bankruptcy.
called Seven Ways to Avoid Charges.
The challenge is to continue to find
The Times This was particularly targeted at customers
additional, and better, ways of identifying
28th September 2006 who were starting to get into difficulties –
the warning signs as early as possible.
some had exceeded their limit, or had a
This will then allow us to take action earlier
payment returned. Over 48,000 people took
in the debt cycle. This includes working with
some sort of action as a result, ranging from
customers to find the best repayment plan
changing their payment date, to setting
reminder, as well as more information about for them, as well as pointing them towards
up a direct debit.
the consequences of minimum repayments. independent sources of advice like Citizens
We have already seen this working – after Advice and the Consumer Credit
the message sent out in our May
Supporting financial capability
We want people to choose our products
statements, over 15,000 regular late-payers
over those of our competitors, and if we
contacted us to set up a direct debit, which Business customers
are going to achieve this, we can be helped
will solve this problem for them in future. We have a specialist business support team
by two things. First, we have to make our
which works with our relationship managers
products and marketing as clear and
Better and clearer information whenever one of their business clients gets
transparent as possible so that customers
We are now providing more and better into financial difficulties. In the last year this
can make an informed decision. Second,
advice on our own products, as well as team has helped over 400 businesses get
we need potential customers to have a
more detailed information in our branches. back on an even keel financially, representing
sufficient level of financial awareness to
We have made our credit cards easier to a success rate of 80%.
understand the information we give them.
understand by including illustrative
To achieve this second objective we
examples in our marketing material and There is more detail about our work on
continue to support government financial
we have done this ahead of industry responsible lending on the website at
requirements to do so. These show how www.barclaycard.co.uk/thinking_about
long it would take to clear a given balance We know that third parties can sometimes _borrowing.html.
under different scenarios, which makes it be in a better position to offer people free Our goals, progress and commitments for
easier for people to understand the and independent guidance about all 2007 can be found on page 6.
consequences of repaying different amounts. aspects of their finances, which is why we
invest so much in supporting organisations
We were one of the first credit card
such as Citizens Advice, the Consumer
companies to start using Summary Boxes.
Credit Counselling Service, Payplan and
These help people compare the different
the Money Advice Trust (there is more on
APRs, interest free periods and charges that
this in the chapter on financial inclusion).
apply to different products, so they can
As we work more closely with these groups,
choose the right one for them. These boxes I am very proud of the strength
we are getting a deeper understanding of
have now been introduced for other secured
and unsecured lending.
how customers’ needs evolve, and how of our commitment to support
the advice they need changes at different businesses through financial
Barclays worked with industry counterparts stages of their lives. Understanding how
to create the Summary Box for credit card best to predict and address these needs is difficulty. In the last 12 months
cheques to respond to concerns about the one of our next tasks. we have worked hard to help
clarity and transparency of credit card more than 400 of our customers
cheques. This has now become an industry Dealing with difficulties achieve turnaround in their
standard, and we are expecting it to For a wide variety of reasons, a small
become part of the UK Banking Code. percentage of our customers will businesses, thereby helping to
We believe that responsible, clear credit card have problems managing their debt, sustain local economies and
cheques can be part of a responsible credit or find themselves in danger of falling local jobs.
card proposition. into that situation. If people are in this
position we need to know about it as soon Peter Harvey
Alongside changes to our marketing and
as possible, because it is always better to Vice Chairman, UK Banking
promotional material we have revised our
Corporate Responsibility Report 2006 15
“Poor people, and especially poor women, have
both the potential and the right to live a decent life,
and microcredit helps to unleash that potential.”
Professor Muhammad Yunus
Nobel Peace Prize acceptance speech, 2006
16 Barclays PLC
Corporate Responsibility Report 2006
Great strides, as well as small steps
The World Bank estimates that 2.7 billion people – over half the population of
the developing world – live on less than US$2 per day, while even in the UK it is
believed that over a million adults are without a bank account. Clearly, while it
may differ in form, ﬁnancial exclusion is experienced by developing and developed
economies alike – and it is an issue that banks have a responsibility to address.
Our strategies in this context are varied, from microﬁnance in Ghana, to
supporting credit unions in the UK and education projects in South Africa.
Steps towards inclusion Key highlights
We view the path to ﬁnancial inclusion as invested in global
stages in a journey. Most people will have ﬁnancial inclusion
their ﬁrst experience of ﬁnancial services
when they open a bank account, but people
Financial inclusion is not about £890,000+ initiatives in 2006.
who feel excluded from mainstream ﬁnancial big fast hits – it’s long term and market traders in
services need to be conﬁdent enough to take we’re committed to this. It’s a Ghana beneﬁted from
that ﬁrst step – and have the right products journey not a destination. our Microbanking
and advice available to them when they do. programme with
We seek to support them through every Deanna Oppenheimer
80,000+ Susu collectors.
stage of the journey with advice, education Chief Executive Ofﬁcer, UK Retail Banking of our funding for
and easier access to banking. Where we are local community
unable to provide this support directly we ﬁnance organisations
work with intermediary organisations, such in the UK was
as credit unions that are often better able to focused in the most
reach excluded people. 85% deprived areas.
Advice and education ranging and important issue that it needs to is the total value of
Financial education and advice is needed be tackled in partnership with governments, our support for free
throughout the journey. As a bank we can NGOs and other voluntary organisations. £3.5m money advice.
provide support, but this is such a wide- basic bank accounts
Some people need help and education to
access even the most basic ﬁnancial services, opened by Barclays in
the UK and Absa in
because at times ﬁnancial exclusion is part
of a more complex social exclusion issue. 1m South Africa to date.
In the UK our educational support for
disadvantaged groups is part of our ‘Banking
Funding committed in 2006 towards
on brighter futures’ strategy (there is more financial inclusion initiatives
detail in the chapter on Barclays in the
community). Access to
Working with Kikass, a youth charity, we £140,827
developed the Thrifty Squid Challenge, in
which groups of excluded young people Community Community
were challenged to develop a solution to ﬁnance ﬁnance/
ﬁnancial exclusion that could be delivered associations institutions
The Thrifty Squid Challenge – 300 young in their community. 300 young people were £223,961 £531,082
people were challenged to develop solutions involved, with 91% saying that participation
to ﬁnancial exclusion. had boosted their conﬁdence in managing
Corporate Responsibility Report 2006 17
Support for personal customers in deprived areas(a) of the UK
2006 Analysis 2005 Analysis
Total Deprived % share Total Deprived % share
Barclays areas of total Barclays areas of total
Number of current accounts 11,468,000 689,300 6.0% 11,093,000 627,000 5.7%
Number of Cash Card accounts 464,500 52,800 11.4% 379,000 45,000 11.9%
Cash Cards as % of all current accounts 4.1% 7.7% 3.4% 7.2%
Unsecured loans and overdraft balances (£m) 11,500 610 5.3% 11,100 630 5.6%
Mortgage lending (£m) 61,900 2,220 3.6% 59,600 1,970 3.3%
Deposit and current account balances (£m) 69,800 2,070 3.0% 65,500 2,140 3.3%
Ratio of deposits to lending 0.95 0.73 0.93 0.82
Support for small businesses in deprived areas(a) of the UK
The ﬁgures below refer to ﬁrms with a turnover of less than £1 million.
Total Deprived % share of total
As at 31st December 2006 Barclays areas of total 2005
Number of business current accounts 677,279 39,059 5.8 5.5
% in overdraft 23.9 26.3 6.4 5.8
Number of business deposit accounts 284,786 13,322 4.7 4.7
Number of loans 100,760 4,758 4.7 4.6
Loan and overdraft balances (£m) 9,570 426 4.5 4.2
Current and deposit balances (£m) 10,805 590 5.5 5.6
Number of business start-ups during 2006 94,477 7,427 7.9 7.6
2006 start-ups as a % of end-year business customers(b) 14.6 20.2
Ratio of deposits to lending 1.13 1.38
(a) ‘Deprived areas’ are those areas deﬁned as such by the Bank of England in its report ‘Finance for small businesses in deprived communities’, November 2000. The term ‘small
businesses’ refers to businesses so deﬁned by the British Bankers’ Association.
(b) Business customers are all small businesses (companies, partnerships and sole traders) holding a business current account.
Further along within the reach of people at the lower end of
The Treasury Select Committee People who are more advanced in the the mass market. The programme includes
In the UK the issue of ﬁnancial inclusion journey need to build their conﬁdence and straightforward information on subjects like
moved further up the public agenda. The gain a greater awareness of how they can long-term ﬁnancial planning, budgeting and
House of Commons Treasury Select manage their money and use ﬁnancial personal ﬁnance. As illiteracy rates are high in
Committee conducted an inquiry into products and services. We help not only by South Africa we are distributing these
ﬁnancial inclusion and published three working with our own customers, but also materials on DVD, video, and CD, as well as
reports in November 2006. In the report by supporting independent and charitable through a specially designed board game for
entitled ‘Banking the Unbanked’ Barclays organisations working in this ﬁeld. school children. Absa is also in the process of
was recognised for the way in which it launching dedicated business centres in the
For example, during 2007 we are extending
serves basic bank account customers: townships, to give better access to ﬁnance
our sponsorship for a small pilot which aims
speciﬁcally that the account is available and advice for small ﬁrms and start-ups.
to evaluate whether joint working between
to anyone except those with a history Citizens Advice Bureaux (CAB) and
of fraud, that it has lower charges when Independent debt advice
Independent Financial Advisers (IFAs) could
payments have to be returned unpaid For those who are struggling with their
improve access to generic ﬁnancial advice
compared to standard current accounts, ﬁnances in the UK we continue to fund
for people on low and middle incomes.
and that customers have full counter organisations like the Money Advice Trust
The scheme is being expanded to a national
access. We are continuing to explore ways National Debtline, Citizens Advice and the
pilot which will include 25 CABs.
to improve product features, employee Consumer Credit Counselling Service.
training and the customer experience. In South Africa, Absa’s customer education In 2006 our support for money advice
programme aims to bring basic banking totalled over £3.5 million.
18 Barclays PLC
Corporate Responsibility Report 2006
To ensure that the product meets customer
The Barclays Financial needs we undertook an extensive A breakthrough in South Africa
Inclusion Fund consultation with three well-known The number of people gaining access to
consumer groups – Citizens Advice, the basic banking in South Africa is estimated
In the UK we are using our own dedicated National Consumer Council and SAFE, an
fund to support local community ﬁnance to be growing at 5% per year. In 2006
initiative of Toynbee Hall. Their insights the proportion of the total population
organisations in England and Wales. This have enabled us to improve the account,
year the theme was ‘Working Smarter’, and with a bank account exceeded 50% for
making it more appropriate for ﬁnancially the ﬁrst time.
over £280,000 has been committed to ten excluded consumers. We are now providing
organisations to help them become more clearer information; simplifying procedures;
efﬁcient and professional – and therefore and enhancing its proﬁle in our branches.
more sustainable in the longer term. There is a more flexible policy for unpaid
Five of the credit unions we support direct debits, we have introduced standing it the biggest provider among the banks.
provided loans totalling £4 million to orders, and we are providing more regular Absa also offers the All-Pay facility and
6,600 people in 2006. A proportion of statements to aid money management. Sekulula account for people on social
these customers might otherwise have Training for our employees has been welfare, enabling them to access their
gone to high interest lenders, and we stepped up. In 2007 we will undertake pensions and beneﬁts. To date, 2.3 million
estimate that, as a result of the reduced customer research to assess how well these of these customers are using these services
interest payments, £2.2 million has been changes are working. in the provinces of Gauteng, Eastern Cape,
retained in local communities. These credit Western Cape and the Free State.
For start-up businesses we continue to run
unions have also helped 13,300 of their local seminars aimed at new entrepreneurs, The issue of access is not solved just by
customers to save a total of £5.6 million. especially those living in deprived areas. having the right products – our customers
59% of our ‘Let’s Talk Business’ events have also need physical access to our services.
taken place in deprived neighbourhoods, This is a particularly pressing issue in light
with over 500 events held for some of the immense numbers of South Africans
Access to banking 5,100 delegates. Around 200 of our own joining the banking system every year.
To encourage people into mainstream
employees have given their time as mentors
banking, the ﬁrst step is to provide them
for young people as part of the Prince’s
with a safe and straightforward current
account that they can access not just in
a branch but via an ATM, or a Post Ofﬁce. Barclays now has a greater proportion of
Once the account is open it is important small business current accounts in deprived
to provide customers with the appropriate areas, in part as a result of a higher share of
level of support they need to manage their start-ups in these areas during 2006. Absa already has the largest banking
money more effectively. footprint in South Africa, with 749
South Africa branches and access to over 6,700 ATMs.
The UK In South Africa, Absa’s customers have Strong growth is predicted in 2007 – and
By the end of 2006 our customers had opened over 518,000 Mzansi accounts over 60% of it will be in previously
opened over 460,000 Cash Card Accounts (the national basic bank account). Absa has disadvantaged areas.
(our basic bank account in the UK). a 27% share of all such accounts, making
Portable bank branches
Absa’s ﬁrst portable branch was in Soweto in
2005, and it is a measure of its success that it
is now being replaced with a bricks-and-
mortar building. Absa plans to roll out a
further 30 portable branches in 2007, and
the branch network will also be extended in
line with its Financial Sector Charter
commitments and its expansion plans.
Barclays is looking to introduce portable
branches in other parts of Africa.
Corporate Responsibility Report 2006 19
another £180,000 over two years to develop
Access to cash further ABCUL’s PEARLS IT system, which
We have over 3,700 ATMs in England helps credit unions to develop their
The role of the credit unions is business and reach more excluded people.
and Wales, of which 266 (7.2%) are in
the most deprived areas. Our customers becoming more and more central In 2006, ten credit unions went through the
(including Cash Card customers) can also to the battle to address ﬁnancial intensive training needed to use this system.
withdraw money from some 12,000 Post exclusion. We are seeing a In June we launched ‘Barclays Step Change’
Ofﬁce branches across the UK. with the CDFA. This is providing over £90,000
progressively greater ﬁt between
towards training and development grants
what the credit unions are doing focusing on marketing, business planning,
to help their clients, and the loan management and loan delinquency.
The solutions are innovative – for example, willingness of the banking Last year also marked our ﬁfth year of
Absa has ten mobile banks, each of which industry to encourage more involvement with Venturesome, to which
reaches about 1,500 new customers a people to open bank accounts. we have provided £660,000. Venturesome
month. These mobile banks show is a specialist provider of risk capital to
customers how to use an ATM and how It’s a partnership that’s working,
charities and social enterprises. In the last
to operate an account. and gaining momentum and ﬁve years, approximately 380 charities have
Alongside these are 13 portable branches, proﬁle. worked with Venturesome, and of these
11 of which are in ﬁnancially deprived around 130 have been offered ﬁnancial
districts. These portable branches John Varley support, worth £8 million.
Group Chief Executive, Barclays
enable customers to carry out the same
transactions as in a traditional branch, while Commercial relationships
being signiﬁcantly cheaper and faster to Commercial support for community ﬁnance
build. Absa is investing in a further 30 of is a growing opportunity for us, and in 2006
these in 2007. the Business Banking Regeneration Team
One area where we see a real need for more invested £5 million in Bridges Community
Absa is also part of an alliance called ZOK Ventures, the UK’s ﬁrst venture capital fund
local and practical support is access to
which is introducing containers, similar to set up speciﬁcally to invest in ambitious
affordable credit. As a lender we have a
those used in shipping, which house an businesses in the most under-invested parts
responsibility to provide fair access to
ATM and internet kiosk. Over 2,300 such of England.
credit and our decisions are based upon
containers are planned to be installed over
the customer’s ability to repay. However, We invested £1 million in Charity Bank,
the next three years, creating 9,200 jobs.
we are unable to provide credit to everyone, the not-for-proﬁt organisation that
particularly those on the lowest incomes, provides low interest loans for community
Affordable credit and partnerships as it is uneconomic for us to provide high
We work with other local, national and and voluntary groups. Charity Bank has
volumes of low-value loans. At the same provided affordable loans of more than
international organisations to ensure the
time we need to ensure that alternatives to £55 million to about 500 charitable
wider needs of ﬁnancially excluded people
the doorstep lender are available, offered in organisations without easy access to
and enterprises are met. This helps us to
the right way and at the right level. funds, unlocking a further £80 million for
achieve scale and sustainability in both the
commercial and the social aspects of our That is why working closely with community and voluntary activity.
work on ﬁnancial inclusion. organisations such as credit unions,
community development ﬁnance
institutions and microﬁnance institutions
is integral to our inclusion strategy.
These organisations enable individuals
and smaller enterprises to deal with
emergencies and plan ahead through
careful budgeting and personal support.
If we can help develop and grow the
community ﬁnance sector it will be a big This investment from Barclays
step towards creating a more seamless will boost signiﬁcantly our
journey into ﬁnancial inclusion.
lending capacity, enabling us to
In the UK take the bank to the next level by
Barclays is the leading corporate supporter providing ﬁnancial support to
of both the Association of British Credit hundreds more charitable
Building the network Unions Limited (ABCUL) and the
organisations across the UK.
Community Development Finance
Over 60% of Absa’s branch network growth Association (CDFA), the two main trade
will be in previously deprived areas. associations for community ﬁnance Malcolm Hayday
Chief Executive, Charity Bank
providers. At the end of 2005 we committed
20 Barclays PLC
Corporate Responsibility Report 2006
Our Business Banking team is providing informal ﬁnancial service providers to reach
increasing amounts of funding for social the large numbers of unbanked people and Supporting credit unions
housing and charities in the UK: this has small businesses in Africa. in Ghana
grown from £2.2 billion at the end of 2003
to £5.5 billion at the end of 2006. We are Researching informal ﬁnance in Africa Our Microbanking programme in Ghana
working closely with the social housing We are now carrying out a study of the aims to reach half a million market traders
sector and individual housing associations, informal ﬁnance sector in 11 African and individuals in 2007.
which have an important role to play, as a countries. This will help us understand the Our work with credit unions will contribute
large number of their tenants are ﬁnancially best way we can use our resources to address to this target, following the launch in
excluded. In 2006 we launched our ﬁrst exclusion on the continent and help us form November 2006 of the second phase of
partnership, with Aspire Housing in the new partnerships to expand our programme. our Microbanking programme – a new
West Midlands, to enable housing partnership with credit unions in Ghana.
associations to support their tenants in In the US
opening our basic bank account more Over the past ﬁve years in the US, Barclays We are providing a special account to
easily. We plan to extend this to a number has invested over US$4 million in make it easier for some 270 credit unions
of other housing associations in 2007. Community Re-investment Act related in Ghana to bank with us. In addition, we
activities. This includes more than US$3 have invested £30,000 to support 20 rural
In South Africa million that has been provided in mortgage credit unions.
Absa has launched a dedicated Commercial backed securities, where the recipients are This is the largest support for the credit
Property Finance team, focusing speciﬁcally low and moderate income earners, or union movement by a private sector
on addressing the challenge of delivering looking to purchase a property in such company in Ghana. Mobilising rural
affordable housing through ﬁnancing social an area. Another US$1 million has been savings is vital to alleviating poverty in
and integrated housing developments. invested as loans to support speciﬁc these areas.
To date the unit has provided ﬁnance for projects, in particular through
more than 25,000 units. redevelopment and regeneration schemes.
In Ghana There is more detail about our ﬁnancial
In 2006, over 80,000 market traders inclusion activities on the website at
beneﬁted from our Microbanking www.barclays.com/ﬁnancialinclusion.
programme with Susu collectors. Our goals, progress and commitments for
The programme is designed to work with 2007 can be found on page 6.
In 2006, we worked with 200 Susu
collectors, extending our coverage from
two to six major cities across the country.
We provided over £50,000 of loans through
the Susu collectors who in turn deposited
over £1.7 million. To date all the loans have
been repaid. Over 120 Susu collectors have
also completed special training courses
designed to enhance their business.
The Microbanking programme represents
a 2.4 billion cedis (£150,000) investment
Corporate Responsibility Report 2006 21
We have played a leading role in updating
the Equator Principles – and in sharing our
environmental and social sectoral lending
guidance more widely.
22 Barclays PLC
Corporate Responsibility Report 2006
Financing commercial customers
Applying the concept of sustainability to ﬁnancial services is challenging, but large-
scale commercial lending is one area where the issues are very clear: our business
will only be sustainable if we can balance the economic aspects of these loans with
the social and environmental concerns they raise. That is why we have taken such
an active part in the process of revising and extending the scope of the Equator
Principles. And within Barclays we have moved much further. We have signiﬁcantly
extended the scope of our own environmental and social guidance for commercial
lending, and we have collaborated with the United Nations Environment Programme
to make this into the basis of a toolkit that other banks can use.
The updated Equator Principles The original guidance notes have been Kimberley Process for the sustainable
The Equator Principles have made a considerably expanded to include an sourcing of diamonds, and the Voluntary
signiﬁcant difference to the way the industry overview of each industry’s regulatory Principles on Security and Human Rights
handles project ﬁnance, but even before the situation, and guidance about the sort of which are designed to guide companies in
Principles were formally established, we had measures we would expect companies in maintaining the safety and security of their
already extended this approach to other that sector to be taking to identify their risks operations while ensuring respect for
commercial lending. It is six years since we and implement the appropriate actions and human rights. Proven adherence to such
ﬁrst revised the environmental risk guidance controls. For example, an issue that may not standards by our clients is a positive
and brieﬁng materials for our own loan be immediately obvious with health care indicator from a risk management
book. In the early days these covered 32 companies is the disposal of surgical waste. perspective.
business sectors, and included an overview Likewise the question of recycling and
of the risks faced by different sectors, and product stewardship is becoming more
pressing for telecoms companies.
Our new internal guidance
the sort of questions we should be asking
potential clients in these industries. The revised internal guidance, for the ﬁrst This guidance now covers all these
time, places explicit emphasis on aspects of sectors, and a number of sub-sectors
As a result of the extensive new work we
social and human rights risk assessment, within them:
have carried out in the last year, our internal
guidance now covers our whole commercial which are of increasing public and political • Agriculture and ﬁsheries
lending book. This includes all loans to over interest and concern. This is in accordance • Metals and mining
50 different sectors, some of them new with our aim to integrate human rights • Oil and gas
additions, such as health care, and some of considerations into decision-making • Power generation, supply and
them subsets of the previous list, where we in our lending, sourcing and employee distribution
have separated out the different risks management. For example, the guidance • Chemicals, pharmaceuticals
involved in, for example, petrol retailing references internationally recognised manufacturing and bulk storage
compared with oil exploration. standards and initiatives such as The • General manufacturing
• Utilities and waste management
2006 Project ﬁnance deals – Barclays Group • Infrastructure
Category • Service industry
A B C Total • Forestry and logging
Higher Risk Medium Risk Lower Risk
The guidance places as much emphasis
Number of project ﬁnance deals 8 10 18 36 on the social and environmental impact of
Deals completed or pending 4 9 17 30 service industries like dry-cleaning or
– of which, number where E/S(a) telecommunications as on the higher-
related changes were made 4 9 17 30 proﬁle sectors such as oil and gas, mining,
Deals considered, but not participated in 4 1 1 6 and major infrastructure projects.
Projects referred from EU 6 4 15 25
Projects referred from Africa 1 2 2 5 The detailed sector guidelines are on the
Projects referred from Asia Paciﬁc 1 2 0 3 UNEP FI website, available for members.
Projects referred from North America 0 2 1 3 More can be found on www.unepﬁ.org.
(a) E/S = Environmental and social.
Corporate Responsibility Report 2006 23
Financing commercial customers
Progress on the Equator Principles
Barclays was one of the four founding Principles into practice. Our own This guidance [for key aspects of
Equator banks, and there are now 45 processes already incorporated much of
international lenders that use these the new material (for example, we had
environmental risk assessment]
Principles, between them accounting for been using the lower threshold for some represents an important ﬁrst step
the overwhelming majority of cross-border time), but we have revised our policies in a new phase of collaboration
ﬁnance. At the same time, the Equator where necessary, updated our intranet across the ﬁnancial sector to
banks have built on this success by revising site, and produced new training materials.
and strengthening the original Principles. New training has already been provided for address the shared threats and
The threshold amount has been lowered teams in both London and New York. opportunities for long-term value
from US$50 million to US$10 million, and
We have taken part in a number of generation. The costs of huge
the criteria have been made tougher, and
consultations and meetings with NGOs challenges like climate change,
now include more robust procedures for
this year on the Equator Principles. poverty and natural resources
public consultation. In addition, every
The same team has also presented at a UN
Equator bank now has to report on its
human rights conference in Johannesburg,
depletion cannot be mitigated by
progress and performance every year. one bank alone. All ﬁnancial
a presentation to the Institute of
We played a key role in the process of Environmental Management and organisations must act together
revising the Principles, and John Varley and Assessment, and at the Ethical in ensuring greater accountability
Gary Hoffman hosted the relaunch event Corporation Conference in London.
at Barclays in July 2006. We have also done
and sustainable innovation from
The Equator Principles website is themselves and the companies
a lot of work internally to put the new
The assessment of environmental and structured ﬁnance teams. In the last year Dr Jem Bendell
social risk is now an integral part of our our particular training priorities have been Senior Strategic Adviser, WWF
formal credit approval and compliance Absa, Barclays Capital in New York, and the
processes, and must be taken into account credit, global loans and business teams in market. In all, around 1,000 UK commercial
in all lending to the revelant sectors. London. In 2007 we are continuing to focus loans were screened according to the
on South Africa, and will work with the guidelines during 2006.
Alongside this we are running an ongoing
lending teams in Barclays Capital in Asia
programme of training, to raise awareness
and France, and UK Business Banking. Working with the UN
of these risks, and equip our lending teams
Whilst developing our own revised guidelines
to deal with them. In 2006, 122 people went The UK bank trained 60 people from its
we went further, and collaborated with the
through this training in Africa, the UK, and credit risk teams during 2006, as well as
United Nations Environment Programme –
the US, including colleagues from credit, developing a dedicated intranet site on
Finance Initiative (UNEP FI) in the creation of
investment banking, legal, sales and the environmental and social risk for its own
a practical ‘toolkit’. We worked with the
UK lending by industry sector in 2006
Number of non-
Percentage of Project(a) deals referred
total Group ﬁnance to E/S(b)
Sector loans and advances Environmentally sensitive sub-sector deals Risk Team
Agriculture, forestry, ﬁshing 1.4 Agriculture and ﬁsheries 0 5
Forestry and logging 0 17
Manufacturing 5.4 Manufacturing 1 23
manufacturing and bulk storage 0 14
Mining and metals 3 41
Energy and water 2.4 Power generation – fossil fuels 8 32
Power generation – non-fossil fuels 6 73
Power generation – total 14 105
Oil and gas 3 23
Utilities and waste management 1 17
Infrastructure (including dams, pipelines) 3 8
Business and other services 10.3 Service industry 11 15
Totals 19.5 36 268
(a) Project ﬁnance as deﬁned by Basel II www.bis.org/publ/bcbs118.pdf.
(b) E/S = Environmental and Social.
24 Barclays PLC
Corporate Responsibility Report 2006
Loans and advances to customers by industry (% of total amount)
The Wardlaw Wood Windfarm
We have provided £13.5 million of project
ﬁnance to the Community Windfarm at
Other personal Wardlaw Wood in Ayrshire, which is
expected to generate enough renewable
Business & other
electricity to power 13,000 homes each year.
Wholesale & retail
Getting planning permission is one of the
Property most difﬁcult issues facing any windfarm
development in the UK, because it is so
difﬁcult to get the support of local
Energy & water communities. In line with our internal
Finance lease policy we ensured that the client carried
receivables out a full environmental and social impact
Construction assessment. This conﬁrmed that it was
unlikely there would be any adverse
2006 impacts on the wildlife or natural habitats
Agriculture in the area. The public consultation that
was undertaken as part of the process
0 5 10 15 20 25 30 35 identiﬁed the key concerns for local
people, and this allowed the developer to
take action to address them in a sensitive
specialist environmental consultants URS As Chris Bray, Head of Environmental Risk and practical manner, while involving the
and environmental stakeholders on this Management at Barclays, says, “These notes residents at every stage.
toolkit, making it available to the UNEP FI’s aren’t designed to impose a rigid or dogmatic
170 member institutions to help inform approach to environmental and social risk Local residents and schools have now
their own lending and risk management assessment, but we do hope they will be a been given the opportunity to invest in the
decisions. This would be especially useful useful part of the process of informed windfarm, which will allow them to
for the smaller and regional banks, who decision-making. And it’s not just about become stakeholders and own shares.
recognise that this is a major issue for them, identifying possible risks – helping lenders This is one of the ﬁrst onshore windfarms
but may have fewer resources to devote to it. spot potential commercial opportunities is to have engaged with the community to
just as valuable in the long run.” such a wide extent.
The aim was to create a set of guidance
notes that would cover key aspects of Martin Hancock, the chair of UNEP FI, says
environmental risk assessment, whether for that the toolkit may help ‘promote the
larger proportion of the ﬁnancial services
small loans or major project ﬁnance, and to sustainability agenda’ both inside and
sector, and not just by the major lenders who
give equal importance to the social as well as outside the member organisations, and it is
have already adopted the Equator Principles.
the environmental aspects of assessment. already helping to raise the UNEP FI’s proﬁle
and bolster its credibility in this area.
The notes will be updated and reissued on a There is more detail about our ﬁnance for
regular basis, and we intend to invite more This is one of the most important aspects of commercial customers on the website at
involvement from sector specialists – for the brieﬁngs from our point of view, because www.barclays.com/environmentalrisk.
example, the Forest Stewardship Council it means that social and environmental risk Our goals, progress and commitments for
will be working with us on forestry issues. assessments may now be taken up by a much 2007 can be found on page 6.
There are now 45 international lenders that
use the Equator Principles, between them
accounting for the overwhelming majority
of cross-border ﬁnance, and projects such as
hydro-electric dams and mines.
The Principles were revised and strengthened
in 2006, with the threshold amount lowered
from US$50 million to US$10 million.
Barclays and Absa participated in 30 project
ﬁnance deals last year.
Corporate Responsibility Report 2006 25
We serve 10 million customers in Africa
and in other emerging markets –
and have signiﬁcant growth plans.
26 Barclays PLC
Corporate Responsibility Report 2006
New markets, new responsibilities
Barclays ambition is to be one of the handful of universal banks leading the global
industry – an organisation that can offer a full range of retail and commercial
banking. 50% of our proﬁt now comes from outside the UK. The acquisition of
Absa in 2005 was a big step towards that, and with 30% of Barclays employees
now in Africa, the shape and character of the Bank has fundamentally changed.
We see major banking potential across emerging markets, and across a range
of customers, which means more new branches, more new products – and the
chance to act as partners in the sustainable development of those economies
and their populations.
Whilst we have been in Africa for over 100 Black Economic Empowerment – Absa(a)
years, we see an even more exciting future
there as more and more of the population
moves into mainstream banking. And the
With more than 100 years
22% of senior management now
black (target 20-25% by 2008)
same holds true elsewhere in the world,
both in niche markets or powerhouse
emerging economies such as India.
experience of business in Africa
we know that investing in
28% of middle management now
black (target 30% by 2008)
As we move into these new markets we
do so in the full recognition of our own
developing markets means
acting to help those markets
35% of junior management now
black (target 40-50% by 2008)
of senior women and 19%
responsibilities. The issues we face in develop: extending the reach of of female junior managers
many of these countries are complex and
ﬁnancial services, encouraging
sensitive, and have a social as well as an
economic dimension – HIV/AIDS in Africa the growth of local businesses 7% are black (target 33% of the
black complement by 2014)
being the most obvious example. We know and building the skills and Access to ﬁnancial services
that a robust banking system can bring
huge beneﬁts to a developing economy, not
just by encouraging enterprise and making
capabilities of local
70% (transactions and savings)
versus target 80% by 2008
capital more accessible, but by providing
employment, contributing to social Frits Seegers
10% Direct ownership
(target 10% by 2008)
integration and developing a more skilled
workforce. This is why we believe that the
expansion of the Barclays brand into a new
Barclays Global Retail and Commercial Banking
39% Black people on the Board
(target 33% by 2008)
market should always make a positive
impact, wherever we are in the world.
22% Black women on the Board
(target 11% by 2008)
(a) Figures subject to audit.
South Africa is going through immense
changes as it modernises its economy and
population, especially among those who
works through the full implementation of
are currently outside the banking system
Black Economic Empowerment. Absa has
altogether. There are two aspects to this:
already made real progress on this, being
one is to develop products and services
well on track with the targets set out in the
that address the needs of disadvantaged
Financial Sector Charter. The table on the
people, and the other is to give those people
right sets out where we are now compared
physical access to banking, particularly in
to the charter targets.
rural areas. The results of our efforts are
But Black Economic Empowerment is also clear: Absa has added 1.4 million retail
about how we encourage greater access customers since 2004, and of the total,
to ﬁnancial services in the wider black 54% are black (up from 50% in 2005).
Corporate Responsibility Report 2006 27
Our retail presence
in emerging markets
The mass market
Over three-quarters of South Africa’s adult HIV/AIDS: an update on the Barclays and Absa programmes
population are part of what is called the We talked in detail about this in last year’s Our wider work has concentrated on
mass market, in other words those earning report, where we explained the thinking helping the community to care for those
less than ZAR 5,000 per month (£360 per behind our extensive work on HIV/AIDS infected and affected, and we often do this
month). This is an important and historically in Africa. We do this because it is the right by forming partnerships with NGOs like
unbanked section of the population, and thing to do, and because the long-term Unicef. Over the past three years, Absa has
one on which Absa is focusing, given its future of our own business and the wider spent over ZAR 12 million on projects like
commercial importance – currently, mass economy relies on the health of our this in South Africa, and people now call us
market customers comprise 4.4 million employees, our customers, and the the ‘AIDS Bank’ in recognition of what we
accounts, or around half of Absa’s community as a whole. As we described have done.
customer base. last year, we are tackling HIV/AIDS on all
HIV education and voluntary counselling
Across South Africa, two-thirds of the mass three fronts.
and testing has been conducted in
market is currently unbanked. However, this We have a comprehensive programme for Botswana, Kenya, Zambia, Uganda,
is changing rapidly, and South Africa is our own employees, which is one of the Tanzania, Ghana, Zimbabwe and South
experiencing 5% compounded growth in biggest in the whole continent. We are Africa. The highlights:
the number of people with bank accounts. continuing to focus on early detection and
• 2,020 colleagues attended the HIV
proper treatment: our employees and their
New products and services awareness education sessions.
immediate family have access to free testing
Basic banking remains a huge challenge, • 1,864 individuals participated in
and full medical care, including anti-
with around 50% of South Africa’s counselling and testing.
population without any bank account at all. • Networks of preferred local health care
Absa is working with the rest of the ﬁnancial providers are being established in
services sector to develop and promote each country.
products that can reach out to these people.
28 Barclays PLC
Corporate Responsibility Report 2006
We talked about Mzansi accounts last year, providing affordable housing and better
and the number of these has continued to Emerging Africa access to home ownership through our
grow – Absa is one of the largest providers Infrastructure Fund own social housing projects like Cosmo City
in the country, with 518,000 accounts, or in Gauteng, Brickﬁelds, near Johannesburg,
27% of the total. Barclays is part of the Emerging Africa and Elangeni, in the centre of Johannesburg.
Infrastructure Fund, which will provide
There are also new services like All-Pay and more than US$300 million in long-term New branches
accounts such as Sekulula, which allow debt ﬁnance for infrastructure projects in Absa is taking a number of creative
individuals to cash government beneﬁts and Africa in the power, telecommunications, approaches to the challenge of banking in
grants. We have provided access to All-Pay transport, water and sanitation sectors. remote and country areas. By investing
and Sekulula to over 2.3 million people, with
ZAR 345 million we aim to have increased
total payments exceeding ZAR 1 billion
transactional, ﬁnancial and business service the number of our branches from 749
every month. And for people on low
products, with customers receiving advice to 810 by the end of 2007, and 60-70%
incomes, the Flexi Select account offers a
on legal, tax and accounting procedures. of this growth will be in previously
wider range of services like insurance, as
The Small Business Advisory Centre also disadvantaged areas.
well as a basic current account.
funnels applications for the Small Business
We already have 13 portable branches,
Absa’s Black Business Incubator Fund Advisory Fund, a ZAR 30 million fund to
growing to 30 by the end of 2007, and we
has ZAR 250 million to invest in black provide ﬁnance for BEE entrepreneurs.
aim for our customers to have access to
entrepreneurs, while its Flexi Loan account Plans call for new centres in KwaZulu-Natal,
over 7,500 cash machines by the end of this
now has over 80,000 customers. Many of which will be fully operational by mid-2007,
year. This includes self-service and internet
these have taken out micro-loans, and this and the Western Cape.
kiosks, and hundreds of new ZOK
type of ﬁnance is now a strategic priority
containers, which offer phone and internet
for Absa. We are reaching out to the Personal capital formation
banking, as well as a cash machine.
small business market in other ways. We believe the next step towards growth
All these initiatives are bringing banking
Absa is the major banking supporter of the and increasing ﬁnancial inclusion for South
to people who have no bricks-and-mortar
government’s Khula scheme, which African society is through ‘personal capital
branch within reach, and as a result no
enables loans to be made to borrowers that formation’. This sees South Africa evolving
other bank in South Africa has a wider
otherwise would be considered too risky into an ‘ownership’ society with a strong
network than Absa. There is more on our
to ﬁnance. savings culture and increasing levels
portable branches, and our customer
of home ownership.
A particular issue in banking mass market education programme, in the chapter on
customers is the high illiteracy rate. That is Of all the ways in which to stimulate ﬁnancial inclusion.
why, for example, both All-Pay and Sekulula personal capital formation, home
use biometric methods, such as retina ownership is the most natural, and an area Sending money
scans, for identiﬁcation. As a further step in which Absa has taken a lead role. Absa is Absa is addressing money transfer services
towards ﬁnancial inclusion, our telephone ﬁnancing one in three home loans in South within Africa with the launch of a pan-
banking service is available in eight out of Africa, making it the country’s leading African, online payments system called
the 11 ofﬁcial languages of South Africa. provider. This complements Absa’s Gateway for African Payments. This sets out
investment in social housing, which also to solve a large problem: because of the low
Small Business contributes to urban renewal and growth. volume of payments within Africa and from
Absa recently opened the doors of its ﬁrst Absa has set up a dedicated unit that Africa to the rest of the world, the process is
Small Business Advisory Centre in Pimville, concentrates on ﬁnancing new social and often costly and cumbersome for individual
Soweto, which aims to help fledgling affordable housing developments. So far, banks. “We’ve opened a highway along
entrepreneurs establish new businesses it has funded more than 25,000 units. which anything can travel,” says Daisy Pillay,
and build existing enterprises. The initiative Absa’s general manager for International
The unit is also supporting the
is part of Absa’s expansion into previously Financial Institutions. “The Gateway is
government’s plans to rehouse those in the
disadvantaged communities. Consultants available to all banks. It’s transparent, simple
country’s squatter camps by 2014. We are
at the centres help with applications for to use and charges a flat fee to all users.”
Building the branch network
Barclays has businesses in countries across
Africa and the Indian Ocean, with an
increasing focus on the largely unbanked
Corporate Responsibility Report 2006 29
The system is the ﬁrst on the continent to in last year’s report and this has not
be available in all African countries. Millennium Development Goals substantially changed. For as long as we can
During 2006 we estimate that Barclays
in emerging markets conduct business in a way that accords with
our own values, we will continue to have a
transferred around £300 million for UK There is little doubt that a thriving banking presence there, and support our 150,000
customers to developing markets like sector will drive a thriving economy, and customers and our 1,000 colleagues.
Africa, China and India. This money vice versa, leading to improvements in a
supports their families and businesses, and society that range from education to India and the Middle East
helps to build economic prosperity; it is a health. This reflects our own belief that our We opened two new branches in India this
practical proof of the value of a reliable and greatest good is done by the work we do year, and the expansion of the business is
secure banking network. everyday, through the stability and general going hand-in-hand with active work to
prosperity that we help enable. tackle ﬁnancial exclusion. As part of the
Much of our work in Africa and emerging Reserve Bank of India’s ﬁnancial inclusion
In South Africa there are currently two key
markets supports the objectives of the initiative, Barclays is developing its own
regulatory issues: the National Credit Act
Millennium Development Goals. basic bank account specially designed to
and the Competition Commission’s inquiry.
meet the needs of the under-banked
The National Credit Act will come into force
sections of the community.
in June 2007 and is designed to improve
have a bank account have the income and
transparency and disclosure, prohibit Barclays India is also planning to launch
ﬁnancial proﬁle to beneﬁt from one, which
unfair terms and practices, and support new microﬁnance projects, as well as rural
represents an enormous opportunity, both
over-indebted consumers – aims that we banking initiatives, which will include
for them and for us. This new approach is
support. The Competition Commission opening new branches in rural areas.
backed up by a major programme to build
inquiry is looking at competition in banking,
or install new branches, employ a new and The biggest economy in North Africa is
bank charges and access by institutions
more mobile sales force, and develop a suite Egypt, and our operation there grew from
other than banks to the South African
of straightforward bank accounts, savings, 25,000 customers to 30,000 in 2006.
and loans. We doubled the number of branches to 14
last year, with a total of 40 as the goal for
And beyond And, as in South Africa, the management of
2007. In February we began retail banking
We have businesses in 11 other countries the business is drawn from local talent: all
in the United Arab Emirates.
in Africa and the Indian Ocean with some 11 managing directors are African. And of
1.7 million customers, and many of the a total of 7,500 employees, less than 30 are
There is more detail about our presence
same themes apply there. Our strategy is UK expatriates.
in emerging markets on the website at
giving much increased focus to the mass
market. The ﬁgures suggest that around Zimbabwe
Our goals, progress and commitments for
30% of the people who do not currently We explained our position on Zimbabwe
2007 can be found on page 6.
Growth in Kenya
In Kenya we are doubling the number of
branches and cash machines in the next
three years, from some 60 branches to 120,
and from 80 cash machines to more than
200. We are also investing in our ﬁrst call
centre for our Kenyan customers, and in
improving the credit card system, as well as
in servicing the under-banked segment of
the population with portable branches that
can be deployed rapidly.
30 Barclays PLC
Corporate Responsibility Report 2006
Facing climate change
Global warming is perhaps the most signiﬁcant threat to maintaining a
sustainable business.The resulting climatic changes will have an impact on our
own operations, those of our customers, and the economies in which we all
operate. Climate change is a risk to be managed, but is also a signiﬁcant business
opportunity: we can help to support our customers in the gradual transition
towards a lower carbon economy. This is why we are working hard to reduce our
own carbon footprint, and putting investment and resources into developing
products and services that can help our customers do the same.
A watershed year
2006 may prove to be a watershed year
Our climate change strategy
for the issue of climate change. Thanks to Barclays has a ﬁve point strategy for
high proﬁle events such as Al Gore’s ﬁlm Barclays has taken signiﬁcant ﬁrst dealing with climate change by:
An Inconvenient Truth and the publication • Increasing energy efﬁciency.
of the Stern Review, there is more public steps in cutting CO2 emissions
• Buying green energy.
awareness than ever before, as well as a both across its operations and • Making our UK operations carbon
growing impetus to address the issue. through its presence in neutral.
In this chapter we look at what we are renewable energy and carbon • Offering climate products and
doing to tackle climate change; you can services for our customers.
markets. The Bank now needs to • Engaging in the climate change debate.
ﬁnd details about our more general
environmental activities in the chapter
develop a strategic approach that
on managing our environmental impact. mainstreams climate change and
factors carbon reduction carbon emissions by 80,000 tonnes in 2007,
Going carbon neutral in the UK opportunities into every aspect equating to the emissions of some 13,000
Last year we said that the greenest form homes.
of energy is the energy you do not use, and of its business.
Even with these actions there are still CO2
we still believe that. Over the next ﬁve
Mark Kenber emissions that we cannot avoid. We have
years we plan to increase UK energy
Policy Director, The Climate Group offset these emissions from our energy
efﬁciency by another 20%, as the result of
use and business travel, making our
a multimillion pound ‘invest to save’
UK operations carbon neutral for 2006.
programme. For example, we are investing
Our plan now is to make our global
in energy-efﬁcient technology such as boiler
operations carbon neutral, but we have
upgrades, low CO2-emitting IT equipment,
started with the UK because we have a
and modern air conditioning units.
large number of operations there.
There are examples of particular projects
on the website at
Barclays CO2 emissions from energy and travel
We have also increased the amount of green
energy we use. 12% of the UK retail network
is already powered by renewable electricity, Africa
and from April 2007 we have a new three-
year contract with EDF Energy to supply 48%
renewable electricity for the majority of our
UK ofﬁces and large branches (again, there
is more detail on our website). As a result,
over 50% of our UK operation is supplied US & Asia
from renewable sources, reducing our 3%
Corporate Responsibility Report 2006 31
Facing climate change
Offsetting is not the solution to climate
Expert voices change, but it does help businesses to
Barclays engaged ICF International to internalise the cost of carbon. Offsetting
1% of annual global GDP is currently costs us around £5-8 a tonne of
provide an independent expert opinion
on the pertinence, effectiveness and required to be invested in order to CO2, which means that for every 1MWh of
environmental integrity of Barclays overall mitigate the effects of climate non-renewable energy we use, we pay to
Climate Action Programme. offset the carbon dioxide emitted. This gives
change; failure to do so could risk us a strong additional incentive to bring our
“The overall approach to carbon neutrality a recession worth up to 20% of emissions down by investing in energy-
taken by Barclays is sound and effective. annual global GDP. efﬁciency and low-carbon energy.
It optimally minimises Barclays carbon
footprint by giving priority to internal Taken as a whole, we have offset our UK
Source: Stern Review carbon dioxide emissions, some 223,000
reductions. Barclays is bringing an
innovative approach to carbon neutrality, tonnes, which represents one of the largest
through creation of an internal cost of amounts of CO2 ever to be offset by a
carbon, and through diversiﬁed options to company. Offsetting is a relatively new
acquire existing offsets or invest in emission Climate change is a global issue, and as ﬁeld, and our aim is to be as transparent
reduction projects. Beyond the basis of the a global bank, there are a wide range as possible – our methodology is available
Climate Action Programme laid in 2006, of options open to us to deal with it. on request.
certain avenues are available for Barclays to Around 60% of our offsets have been
However, like every other company trying
expand further the scope and magnitude of purchased in the external market through
to make progress in this area, we still face
its internal efforts and consolidate its Barclays Capital’s Emissions Trading Desk.
challenges. For example, we need to ensure
emission offsetting processes.” These offsets are called Certiﬁed Emissions
that we invest in the right offsetting
Reductions and they are endorsed by the
ICF International projects, as well as start looking at the
UN Framework Convention on Climate
emissions produced by our supply chain
Change. For the remainder, we have
and by our lending. There are real issues
invested in low carbon projects in
here – not just quantifying these emissions
developing countries through carbon
in a meaningful way, but also ﬁnding an
offset providers The Carbon Neutral
efﬁcient way to exert a positive influence.
Company and Climate Care. These include
For the full expert opinion, please go to: In managing our own carbon footprint,
solar power projects in rural India and
www.barclays.com/climatechange. we have developed our understanding of
wind power generation in India and China.
climate change mitigation. We now hope
In 2007, we will also be investing in a project
to share the learning for the beneﬁt of our
to install energy-efﬁcient stoves in Lesotho,
suppliers and our customers.
Southern Africa. This project brings social
beneﬁts to the community as well as
Focusing on the consumer
Offering ‘green’ products to our retail
customers is a business opportunity for
us. That is why our approach to date has
been to complement existing products,
like our debit cards, with
environmentally friendly features.
Barclays customers in the UK, for
example, are already using our new
carbon neutral debit card – the ﬁrst in
the country. Working in close co-
operation with our card manufacturer
Axalto, the card is being rolled out to all
our 11 million debit card users as their
current cards expire. All the CO2
generated by making the card is offset
by projects in the UK.
32 Barclays PLC
Corporate Responsibility Report 2006
The Carbon Disclosure Project Leading on emissions trading
In the 2006 Climate Leadership Index, Barclays Capital was voted Best Trading
Our partnership with Barclays is
compiled by the Carbon Disclosure Company in the EU Emissions Trading
Project, Barclays is among the top 50 ‘best effective because their people Scheme by readers of Environmental
in class’ companies in the Global FT500 for share our vision for the future Finance magazine. Barclays Capital was
initiatives addressing the challenges of growth of the renewable energy also voted Number One in European
climate change. Amongst the banks in the Emissions Trading in the Risk magazine
Index, we rank joint ﬁfth.
market. commodity rankings for 2006.
General Manager, Finance,
Novera Macquarie Renewable Energy
Developing products to meet this market was also recognised by the UK We are pleased to be working with the UK
the challenge Secretary of State for the Environment, who Social Investment Forum on a project to
The other area in which we are taking invited us to contribute to the Manifesto on harness the power of asset ﬁnance to
active steps to combat climate change Emissions Trading which the UK is taking accelerate the shift to a lower carbon
is in the development of carbon related into the EU debate on the review of the ETS economy. The project, funded by the
products and services for our customers, post-2012. We were the only ﬁnancial Carbon Trust, aims to accelerate the
both companies and individuals. services company to be included in a group acquisition and use of low-carbon assets
of NGOs, utilities, and other industries. by mainstream businesses and the
Working with business voluntary sector.
During 2006 the EU Emissions Trading Financing renewable energy
Scheme (ETS) passed the one billion tonne Our Natural Resources Team has provided Our ﬁve-year targets, and our progress in
mark, and Barclays Capital continues to long term-ﬁnance for over 2,600MW 2006, are set out on page 57.
be the most active player in the market, of renewable generating capacity, including
having traded some 300 million tonnes. onshore windfarms, landﬁll gas extraction There is more detail about climate change
The market saw great fluctuation over the plants, small-scale hydroelectric on the website at
last year, but we believe in its long-term projects, biomass plants and bio-diesel www.barclays.com/climatechange.
viability and importance. conversion plants. We are also working with Our goals, progress and commitments for
manufacturing clients to help them source 2007 can be found on page 7.
The concept of emissions trading is
their energy from greener power. And in
beginning to spread beyond the EU, and
June 2006, Barclays Capital acquired a 16%
Barclays Capital has now started transacting
stake in Greenergy International Limited,
Certiﬁed Emissions Reductions in Asia and
a market leader in the biofuels industry.
the Americas. During 2006 our expertise in
Helping you help the climate
In 2006 Barclays launched a joint website
with offset provider Climate Care that gives
our customers the chance to offset the
emissions generated when they travel by
air. They pay the appropriate charge, and
Climate Care invests the money in energy-
efﬁciency projects in the developing world.
We are raising awareness of the website by
putting details about it on over one million
travel-money wallets which customers
receive with their purchases of foreign
There is more detail about the scheme on
Corporate Responsibility Report 2006 33
“Other banks and ﬁnance houses should
follow Barclays example. The days of
poverty pay for cleaners… are over.”
General Secretary, Transport and General Workers Union
34 Barclays PLC
Corporate Responsibility Report 2006
Working with our suppliers
The wider context
Our responsible sourcing principles further underpin the sustainability of our
business. For Barclays, responsible sourcing is as much about managing the
direct and indirect risks to our business as it is about ensuring good ethical
practice. That is why we are committed to fair contract and payment terms with
our suppliers – in return we expect good service, at a good price, supplied in a
responsible fashion. To this end we have developed our Corporate Responsibility
Supplier Questionnaire, which is helping us to identify and manage the social
and environmental risks.
good so far, and the new process has
Our commitments already been extended to cover the top 57 Creating the questionnaire
The results of the questionnaire have a medium to high-risk suppliers, which The questionnaire is based on our
10% weighting in assessing suitability as account for around £1.5 billion of our long experience of risks and issues
a supplier. The information helps us to supplier spend. in the banking industry and in our
ensure that we engage with the right All new medium and high-risk suppliers will supply chain.
suppliers and that they have suitable be required to complete the questionnaire, For Barclays, the main sources of supply
corporate responsibility policies in line and it is now a condition of renewing the chain risk derive from three areas:
with Barclays standards. If a supplier contract for existing relevant suppliers. As a • Human rights
scores poorly we will: result, we aim to have all existing suppliers • Environmental issues
• work with them to help them to improve complete the questionnaire within the next • Business integrity
their own performance; two years.
• discontinue working with them if they These risks are prevalent in certain areas
are unwilling to work towards agreed We will make the decision to extend the of sourcing, which is why we deﬁne the
standards or are consistently unable scope of the questionnaire further down the following as high risk:
to improve. supply chain on a case by case basis. • Printing
• Direct mail
If we have speciﬁc concerns we will work New Markets • Outsourcing
in co-operation with the supplier and audit There are key issues with regard to sourcing • Paper
their supply chain down to their second from emerging markets, particularly in • Corporate wear
and third tier. respect of labour conditions and the
environment. We engage in early due
diligence with regard to these suppliers
and use our questionnaire to anticipate and
mitigate these risks.
We are also implementing a training
Corporate responsibility questionnaire programme covering the corporate
In 2006 our global sourcing team began responsibility implications of sourcing.
We are making the questionnaire a
issuing our new Corporate Responsibility This is currently in progress, and by the
standard part of the process for choosing
Supplier Questionnaire to our medium and ﬁrst half of 2007 we will have trained
new Barclays suppliers throughout the
high-risk suppliers, examining the social all our key sourcing and supplier
world. The new ‘Aiming High’ website is
and environmental risks to their business management personnel and a number
a key part of this: all new suppliers are
and, by extension, to ours. of our key suppliers.
directed here ﬁrst, and they can use it to
We are now able to work more closely with download the initial forms they need, and For more information, visit
our suppliers to identify potential issues, ﬁnd out more about Barclays – not just how www.barclays.com/supplier/
and take steps to address them. Progress is we work but what we will expect from them. aiming_high_welcome.html.
Corporate Responsibility Report 2006 35
Working with our suppliers
holiday entitlements and annual leave.
Sourcing energy The Transport and General Workers Union
As part of its programme to address General Secretary, Jack Dromey, said of the
move: “Other banks and ﬁnance houses In the low-proﬁt, ferociously
climate change, Barclays has a new three-
year contract with EDF Energy to supply should follow Barclays example. The days of competitive world of contract
renewable energy for the majority of our poverty pay for cleaners – because companies cleaning, such a package is
UK ofﬁces and large branches. As a result, who can afford to, do not procure cleaning
services ethically from contractors – are over.”
unheard of. Yet, for once, the
over 50% of the UK operation is now
supplied from renewable sources, which
signiﬁcance is not in the details,
Another area where we have made progress
will reduce our carbon emissions by this year is in speeding up the time it takes to but in the principle.
80,000 tonnes in 2007. pay our suppliers. We have made signiﬁcant
improvements on this since 2002. Electronic Personnel Today
There is more on this in our chapter on 3rd February 2006
climate change. procurement has also meant a considerable
reduction in the amount of paper in the
system: 80% of our invoices are now dealt
with electronically, which has eliminated over
50,000 pieces of paper from the system.
Fair play (approximately £220 million). Based on
Supplier management in South Africa current performance, we are on course to
Working with our supply chain does not
Black Economic Empowerment (BEE) is
only mean our right to demand high ethical exceed the 2008 target.
designed to transform South Africa’s
standards; it also includes our responsibility
economy, and is a key part of the South In 2007 Absa will begin to look at other
to treat them fairly too.
African government’s plan to ensure that all ways to drive the BEE agenda by, for
An example is our new deal with our cleaning its citizens have the opportunity to share in example, identifying small, regional
ﬁrms Mitie Cleaning & Support Services, the wealth being created in the country. suppliers (turnover below ZAR 35 million
Lancaster, and Aim Hygiene (all managed by p.a.) which qualify under BEE guidelines.
Absa is a signatory and supporter of South
Atkins Asset Management). These ﬁrms They will be considered for contracts under
Africa’s Financial Sector Charter, which
employ some 2,400 cleaning staff in our favourable payment terms.
outlines the speciﬁc targets for procurement
2,000 UK branches. Thanks to the good
from black suppliers: 50% of all third-party
relationships we have established with our For more on BEE, visit www.absa.co.za
spend by 2008, and 70% by 2014.
cleaning contractors, their workers will now following the Corporate Citizenship link.
get better pay and more training, as well as In 2006 Absa spent over 55% of its total Our goals, progress and commitments for
access to a pension, sick pay, increased supply chain costs with BEE companies 2007 can be found on page 7.
4imprint is one of Barclays preferred suppliers. It is the world’s fourth largest distributor of
promotional merchandise, such as t-shirts (left) and serves around 200,000 customers.
Whilst Barclays share of this market is relatively small, a good working relationship with
4imprint proved an ideal opportunity to create a ‘trickle down’ effect, where working
standards adopted by Barclays are applied further down the supply chain.
This industry is particularly important to Barclays because promotional materials are one of
our higher-risk categories of supply, with many of these items sourced in Asia, India and
Eastern Europe, where high corporate responsibility standards are often not well established.
After our dialogue, 4imprint agreed to (and achieved) ISO14001 certiﬁcation.
In addition it has agreed to:
• undertake annual audits on at least 25 of its overseas suppliers by value, rather than just
auditing at the time a supplier is ﬁrst appointed. This has entailed a signiﬁcant ﬁnancial
investment in audits by 4imprint;
• commit to adopting the principles of the Clean Clothes Campaign Code of Conduct,
which are based on conventions relating to child labour, forced or bonded labour,
discrimination, freedom of association and the right to collective bargaining; and
• work with their own suppliers to improve the situation when standards are not being met.
“Barclays made it clear that ongoing conformance to high standards was the key to
continuing the contract,” said Nic Porter, Head of Procurement at 4imprint. “In turn, we were
and are keen to further develop corporate responsibility in our supply chain, and see that our
own new guidelines are met by auditing our own top suppliers.”
36 Barclays PLC
Corporate Responsibility Report 2006
The heart of the business
Our 123,000 full-time equivalent employees in over 50 countries are the foundation
of Barclays success. Their commitment, motivation and talent have made the bank
proﬁtable, resilient and flexible in the face of change. We have a strong set of
values, a culture based on performance, and a focus on talent and development.
These things will underpin our ambitions for the next phase of Barclays future.
Guiding Principles on what they have achieved during the
We talked in last year’s report about the
Our Guiding Principles year, but how. This includes the quality of
new ‘Guiding Principles’ we developed • Winning Together customer service, how well they work as
in the course of 2005, and during 2006 • Customer and Client Focus part of a team, and what they have done
these were reinforced by the introduction • The Best People to support local communities.
of a new Code of Conduct across the bank. • Pioneering Barclays employees have their own personal
The Principles have been tailored to take • Trusted development plan, which includes a
account of the many cultures we work structured approach to training and
within, and the individual circumstances of development. Some get the chance to use
each of our businesses. In Absa and BGI, for the Barclays University, and others are
example, the new Principles were integrated funded to take professional qualiﬁcations.
into previously-established values, while in Absa’s employees, including the leadership
countries like France and Spain they have
been launched afresh.
We are putting the Principles into practice Full-time equivalent by world region
in many different ways across the business.
During 2006 we introduced a new global
standard for performance development. UK 62,530 60,103
The Human Resources Directors for each
Africa and Middle East 44,326 40,134
business area now have to provide regular
evidence that this standard is being met. Continental Europe 8,100 7,616
Furthermore, we are making the behaviour
Americas 4,905 3,916
expected by the Principles central to our
performance assessment process. Asia Paciﬁc 2,739 1,531
Employees are now assessed not only
Total 122,600 113,300
Full-time employees by world region Global employment statistics
Americas Asia Pacific 2006 2005
Continental Number of full-time equivalent employees 122,600 113,300
Total employee headcount 133,529 126,000
Percentage of female employees 60.6% 61.9%
Africa and 51% Percentage of female senior executives 12.2% n/a
36% Percentage of female senior managers 20.8% n/a
Percentage working part time 13.6% 15.4%
Corporate Responsibility Report 2006 37
team, now have a personal development Partnering with trade unions
plan. In the UK there is specialist training Across the world we recognise around
The Equality Charter
for managers dealing with disciplinary or 25 unions and staff associations in 14 Barclays and Amicus signed an Equality
grievance procedures. countries, and there are two particular charter in 2006. This commits the bank
partnerships worth highlighting here. to promoting equality among all our
Growing talent In Absa, collective agreements are in place employees, and speciﬁcally to
Talented individuals are the key to our with one registered trade union, Sasbo, and • run regular equal pay audits in
success, and we are continuing to invest in with the staff association, ALBA, which partnership with Amicus;
our people by blending experienced senior between them cover around 60% of • address any issues highlighted by these
leadership from inside Barclays with world- employees. We are working towards audits;
class people from outside the bank. The concluding a co-operative agreement with • identify best practice in the industry; and
Group Executive Committee held three talent Sasbo similar to the partnership agreement • communicate what we are doing on this
reviews in 2006. Barclays has with Amicus in the UK. to our employees.
Fair reward Our partnership agreement with Amicus
The principle of ‘the best people’ is was renewed for another ﬁve years in 2005.
supported by our approach to pay and The foundation of our partnership has Since 2003, we have created 1,924 jobs in
reward. We ensure that our remuneration been a commitment to undertake early India, which has affected 1,799 UK-based
packages are competitive and match local and regular discussions on issues affecting employees. 1,079 of these have been
market conditions. A common set of annual our people, in a spirit of collaboration. redeployed in Barclays and the others opted
pay review processes operates across all A signiﬁcant test of – and testimony to – for voluntary redundancy.
our global operations, including Barclays this partnership approach has been the
operations across Africa and the Indian integration of the branch networks and What our people think
Ocean. This ensures consistency and supporting infrastructure of the Woolwich John Varley often talks about Barclays
transparency overall, whilst allowing for and Barclays. There is more on this in the having three key ‘franchises’, and how
some local variations in beneﬁts, allowances chapter on our customers. important it is to gauge the ‘health’ of each
and salary levels. of them – in other words, to assess our
Managing change reputation in the minds of our most
We want to use our reward policy to help As Barclays expands internationally it is important stakeholders. Measuring where
drive excellence and high performance important that we remain cost-efﬁcient and we stand with two of these groups –
throughout Barclays, balancing short-term flexible enough to respond to structural customers and communities – is a key part
success for individuals and teams with the changes in our industry. But at the same of the annual performance review, and our
achievement of the Group’s longer-term time we must always do this in a Employee Opinion Survey addresses the
goals relating to total shareholder return. responsible way. We have a landmark views of the third – our own people.
We want to attract and retain people of agreement on offshoring in place with
proven ability, experience and skills, and Amicus, which protects employees whose Every year we run a comprehensive
encourage a culture that reflects our jobs are affected if we move activities employee survey across the bank, which
Guiding Principles, especially in the areas of offshore. This includes early notiﬁcation of covers the majority of our employees
governance, control and risk management, initiatives, and a commitment to explore the around the world. We ask our people how
customer service, people management, and possibilities for redeployment, as well as they view our leadership team, whether we
brand and reputation management. out-placement support and training. are meeting our goal to be an ‘employer of
Employee Opinion Survey results
(% positive scores) 2006 2005
Participation rate 87 84
Employee engagement 76 72 Barclays Capital, Barclays Global Investors
Perceptions of leadership 62 58 (BGI) and Barclays Wealth run separate
Employer of choice 70 67 surveys. The highlights of these include:
Barclays operates with integrity 84 80 • 85% of employees in Barclays Capital
Barclays is an environmentally responsible company 77 76 feel proud to work for Barclays;
Barclays is a socially responsible company 83 80 • 84% of BGI employees would
I am proud to work for Barclays 84 80 recommend Barclays as a place to
• approval rates in 29 areas of Barclays
Wealth either improved or stayed the
same, with diversity showing very
signiﬁcant, favourable increases across
38 Barclays PLC
Corporate Responsibility Report 2006
choice’, and how engaged they feel. Diversity
This is important because research has Our philosophy on diversity is best summed
consistently shown that committed people up by Gary Hoffman, our Group Vice In Spain we have been working with the
are a crucial factor in achieving great Chairman: “Diversity at Barclays is not a disability specialists ‘Fundación Once’
customer service and excellent business ‘programme of the year’, where we do our since 2005, and as a result seven post-
performance. best and then move onto something else graduates with disabilities have joined
The latest trends in the employee survey are – this is a long-term commitment. the bank. There are also new training
positive, with 87% of our employees taking Only when our own teams truly reflect initiatives that have helped all our
part, compared with 69% in 2004. Pride in the diversity of our customers can we employees to understand the wider issues
Barclays was up from 80% to 84% this year, best serve them and fulﬁl their needs.” facing both customers and colleagues
and more employees now consider Barclays Gary chairs the Executive Diversity Group, with disabilities.
to be a responsible company. Overall there which meets three times a year, and is
were signiﬁcant year on year improvements responsible for much of the progress we
in all survey categories. For the ﬁrst time, have made in recent years. And John Varley Gender
is President of the Employers’ Forum on Despite the considerable efforts we have
results exceeded the norm for ﬁnancial
Disability, as well as chairing our own made, the number of senior women in the
sector companies across all categories,
disability listening group. bank does not yet reflect the importance
and the gap is closing on high-performing
we attach to this. The proportion of women
companies in the UK and globally. As study after study has shown, a more
recruited to senior roles went up by 9% this
Employee engagement scores rose to 76% diverse workforce is a more creative
year, and around 21% globally of our most
from 72% in 2005, with particularly strong workforce, and one better able to adapt
senior managers are women, compared to
gains in UK Retail Banking, Spain and to change. And as Barclays becomes
18% in 2003. The number of senior women
Portugal, Italy, and New Markets. However, more international, it becomes more
in Barclays compares well for similar large
the engagement scores for disabled important that we should reflect the many
companies, but this is not enough for us.
employees (70%) and gay, lesbian and communities we serve. This is one reason
In 2007 we will continue to focus our
bisexual people (67%) show that there is why we held a diversity forum with our UK
attention on identifying and developing
still more work to be done. recruitment suppliers in 2006. We wanted
internal talent as well as recruiting high
them to share and understand our
calibre female candidates from outside.
Our Executive Diversity Group has taken ambitions in this area.
this on, and has adopted a range of
measures to address these trends. We will We encourage our employees to join Sexual orientation
employee networks. In the UK, these A good example of our ‘pioneering’
be conducting a series of focus groups with
include Spectrum, Pos+Ability (for principle in action is our partnership with
gay, lesbian, bisexual and transgender
employees with disabilities) and the Stonewall, the campaigning organisation
(GLBT) employees to understand better
Cultural Diversity Network (for ethnic for gay, lesbian, and bisexual people. We
what issues are faced by these employees
minorities). The regional and national sponsored their Equality Walk in March
and how best to resolve them. We are also
networks act as both a support group 2006 and their inaugural Stonewall awards
working with the leading GLBT organisation
and a source of information. in November. Barclays employees took part
Stonewall on revitalising and relaunching
in the two Gay Pride marches this year, and
our GLBT employee network, Spectrum.
supported the Stonewall Equality Walk in
UK employment statistics
European and African forums
Women in Barclays
In May 2006, John Varley spoke to the Percentage of all employees 61.0% 64.0%
Barclays Group European Forum, a Percentage of management grades 33.0% 29.4%
consultative body that represents Percentage of senior executives 12.9% 11.4%
employees from all the countries in the Ethnic minorities in Barclays
European Union where Barclays has a Percentage of all employees 12.7% 9.0%
presence. The Forum agreed a zero- Percentage of management grades 8.1% 6.3%
tolerance policy to staff abuse by customers Percentage of senior executives 6.1% 3.7%
to be communicated Europe-wide. Disabled employees in Barclays
The parallel body in Africa is the Barclays Percentage of all employees 3.8% 3.0%
Pan African Forum, which meets twice a Age proﬁle
year to discuss important strategic and Employees aged under 25 17.4% 16.0%
operational issues. For the ﬁrst time, this Employees aged 25-29 15.9% 12.9%
year the Forum included representatives Employees aged 30-49 56.0% 61.0%
from Absa and the ﬁve African countries Employees aged 50+ 10.7% 10.1%
where it is present.
Corporate Responsibility Report 2006 39
working with the RNIB and RNID in the UK
to develop more targeted recruitment
programmes for people with impaired
Barclays was part of the small vision or hearing.
I commend organisations that are
group of companies in 1991 who proactive and in touch with those
established the world’s ﬁrst Ready to work that they serve. Barclays is a
employers’ organisation to work Alongside this we are giving extra support leading example of how this can
to existing employees with disabilities.
to the mutual beneﬁt of disabled We want to make it easier for colleagues to be achieved. They were the ﬁrst
people and business. They have tell us what they need, and for us to supply ﬁrm to incorporate diversity into
been a key supporter and have it. As part of our Reasonable Adjustment the requirements for their
scheme, we are now working with our
been represented on our board occupational health partner, AXA PPP, to
supplier base, ensuring they
ever since. Barclays has played a carry out reviews with each employee, and reflect the wide range of local
crucial role in helping the UK and so far this year nearly 700 have beneﬁted suppliers available as common
global business to position from new equipment or technology – an practice.
increase of 50% on previous ﬁgures.
disability as a business as well Employees also have access to both a Trevor Phillips
as a societal priority. mentoring scheme, and a ‘one stop shop’ Chair, Commission for Racial Equality
for help and advice on our intranet.
CEO, Employers’ Forum on Disability. Race
Six per cent of our senior managers are A number of further changes were made
now from an ethnic minority, up from 4% in 2006, partly in response to the new
in 2003. In the last three years, the number legislation. Our contractual retirement age
Disability of Barclays UK employees from ethnic has risen from 60 to 65, and we have
In 2006 we completely overhauled our minorities has risen from 9% to 13%, across amended some of our recruitment
graduate internship programme, and all levels of the Bank (in the UK population processes to encourage applications from
reviewed the way we recruited for it. As a as a whole the proportion is around 7%). people of all ages. At the same time, the age
result, seven of the 30 students on this year’s at which our employees can draw a pension
Issues of racial equality have particular
programme had a registered disability. remains unchanged. We operate 60
importance for us in Africa. Absa already
And in September 2006 we co-hosted a occupational pension schemes.
has a number of diversity forums around
recruitment event with Employment
the country, and one overall Forum elected
Opportunities, an organisation which
at group level. There is more about our
specialises in supporting job-seekers with
Black Economic Empowerment activities in
disabilities. Eighteen potential candidates
South Africa in the chapters on ﬁnancial
Recruitment that Works
were given the chance to go through a full
inclusion and growing internationally. After working with disability specialists
assessment process, and 15 are now being
interviewed for roles in Barclays. We are also PosAbility, in September 2006 we started
Age piloting ‘Recruitment that Works’, a
Age discrimination legislation is a fairly government-supported initiative designed
new development in the UK, but we have to attract back into work disabled
Racial equality included it in our work on diversity for some jobseekers who are also long-term
Barclays was key sponsor of the time. For example, in 2002 we introduced a unemployed. Eleven people have been
Commission for Racial Equality Race new policy allowing people to ask to work employed at our Coventry call centre as part
Convention, held to celebrate 30 years of beyond the normal retirement age, and this of the scheme, which is now being rolled
the CRE, in November 2006. was recognised by the UK Government as out across the UK.
an example for others to follow.
40 Barclays PLC
Corporate Responsibility Report 2006
Chief Executive, John Varley. Our reporting UK legislation by not conﬁning requests
Equality and Diversity – mechanisms are improving, and next year for flexible working to employees who
highlights for 2006 we will be able to report global health and have children.
Barclays was listed in The Times’ Top 50 We have plans in place to deal with a
places ‘where women want to work’ in possible avian flu pandemic, as well as a
October 2006. Organisations were comprehensive HIV/AIDS programme,
assessed according to a wide range of 2006 2005 particularly in countries across Africa.
factors including work/life balance, Turnover rate 16.9% 17.8% There is more on this in the chapter
networking, leadership and employee ‘Growing internationally’.
satisfaction. Resignation rate 10.9% 10.9%
Sickness absence 3.6% n/a There is more detail about employment
Barclays France again partnered the at Barclays, including our Equality and
Women’s Forum for the Economy and Diversity practices, on our website at
Society, which was attended by Like all big companies, new technology is www.barclays.co.uk/careers.
organisations such as Renault, Interbrand, making a huge contribution to the way we Our goals, progress and commitments
Nestlé, and Lucent Technologies. do business, though we recognise that it for 2007 can be found on page 7.
In 2006 the Spanish Labour Affairs can also lead to stress and other illnesses in
minister awarded Barclays Spain an some cases. But the same technology can
Optima accreditation for their active give people greater flexibility, especially
commitment to equal opportunities when it comes to working from home.
at work. We want technology to be a positive thing,
giving our employees more choice about
The Barclays Group legal team won the how they balance their work and family
special ‘Judges award for Outstanding commitments.
Contribution’ at the Commission for Racial
Equality and Law Society Race Equality This is why Barclays operates a flexible
awards. We were the ﬁrst organisation in working policy. We give serious
Europe to make a commitment to using consideration to all requests, with the
law ﬁrms that have a good track record in commitment that we will agree to requests
all areas of diversity, and the judges said wherever possible. In Spain we extend paid
this “sent ripples through the industry”. maternity leave for up to a year after the
birth of twins, or a child born with
disabilities. And if an employee wants to
transfer to a job closer to where they live, we
Occupational health and will give extra consideration to those who
flexible working have children under ten. We go further than
In order to bring about greater consistency
in global health and safety practices,
we have established a common set of
minimum standards for our businesses Workplace equality
to achieve. Compliance with legal
requirements is the starting point, though Since the launch of the Stonewall
in some areas where it is reasonable and Workplace Equality Index, Barclays has
practical, we expect our businesses to adopt always been in the top 20 organisations.
higher standards. Our global Statement of In 2006 we were rated the16th best
Commitment to Health and Safety was employer of gay people, up from 20th
revised in 2006 and signed by the Group in 2005.
Corporate Responsibility Report 2006 41
Since January 2006, Barclays UK operations
have used recycled copy paper, saving
around £100,000 and 36,000 trees.
42 Barclays PLC
Corporate Responsibility Report 2006
Managing our environmental impact
Reduce, recycle, renew
In last year’s report we talked about the four ways in which we are working to minimise
our environmental impact: reducing our energy consumption, increasing our use of
renewables, working towards 100% carbon offsetting, and doing more to recycle our
waste. In the chapter on climate change we have set out what we have done to achieve
carbon neutrality in the UK. In this section we focus on our environmental policy and
how we apply environmental standards throughout the business, which includes
rethinking the way we use energy.
External recognition… During 2006 we continued our programme
…and internal support
Our scores in the Dow Jones Sustainability to use resources more efﬁciently, reduce In the 2006 Employee Opinion Survey 77%
Index improved again last year – up 8% waste and increase recycling. We have of our employees said that they would call
overall in the environmental dimension made progress on extending our ISO14001 Barclays an environmentally responsible
for the banking sector. We retained our certiﬁed Environmental Management company, compared with 76% the year
number one spot for environmental System (EMS) around the world, with before. This now exceeds the ‘high
reporting and a score of 93% ranked both the Barclays Group’s central EMS performing’ standard for ﬁnancial services
us joint ﬁrst in the environmental and operations in ﬁve countries now companies, both in the UK and worldwide.
performance category. We also showed receiving certiﬁcation. As part of this
a double digit improvement in the system we have set targets for our UK
Advanced Environmental Performance and European operations. In the UK our
and Project Finance categories. environmental reporting procedures have It is clear that Barclays energy consumption
been set according to the government’s and costs over the medium term will
We moved up to 2nd in the Banking environmental reporting guidelines, increase – we are looking to manage this by
category of the Business in the and our data is veriﬁed by an independent examining all opportunities for increasing
Community Environment Index. third party. efﬁciency. For example, we are currently
Barclaycard won a Green Apple Award for conducting trials using both water cooling
In the last 12 months Barclays France
its waste management at six key UK sites. and carbon dioxide cooling in one of
achieved ISO14001 for all of their sites
Recycling rates have reached 74% with our data centres to test both systems.
(including the branch network), and we
almost 450 tonnes of paper, plastics, cans, Energy efﬁciency improvements of
completed site audits in the UK, the USA and
wood and card recycled in the last six around 30% are expected.
Europe. Barclays Capital and Barclays Global
months of 2006. Investors have established environmental
Barclays was ranked in the top ten for working groups in Asia and the USA
Barclays Wealth has completed engineering
environmental performance in the Sunday respectively. We have greatly improved the
surveys at its 40 largest sites to identify
Times ‘Best Big Companies To Work For’ coverage of our global data reporting and
potential environmental improvements.
in 2006. we are working to improve data quality.
One such review resulted in immediate
energy savings of almost 10% at one site.
Appetite for energy
A key challenge facing businesses globally
is the increasing energy requirements of
data centres. Forecasts from microchip
producers Intel and AMD predict a 30%
increase in power used per server per year,
for at least the next ﬁve years. Against a
backdrop of increased global energy prices
(and strong growth in our own businesses),
this represents both a ﬁnancial and an
Corporate Responsibility Report 2006 43
Managing our environmental impact
Recycling In the United Arab Emirates and Japan our
We have new recycling programmes in operations are not only recycling all their Improving our systems
progress in Barclays Capital, both at Canary used paper but buying new stock which A good example of investment in energy
Wharf and the Northolt Data Centre. has been made from recycled waste paper. efﬁciency is our trial of the Atkins Remote
A new baler (a machine for crushing As environmental NGOs point out, this is Technology system. This allows us to
recyclables such as cardboard and paper) important because it ‘closes the loop’ from monitor our heating boilers remotely, and
is expected to achieve a recycling rate of purchase to disposal. make adjustments where necessary.
over 70% at Northolt. Another idea is our new mobile phone It means that each boiler uses less energy
recycling scheme in the UK, which we are and can be turned off when it is not
offering to customers, employees and the needed. During 2006 we installed the
public. By working with the Woodland Trust system in 90 branches and have saved an
we are making it easy for people to send average of 32% on our gas bills as a result,
their old mobiles for recycling by offering as well as the equivalent of 836 tonnes of
special freepost envelopes at over 1,000 CO2. We are now planning to put the same
branches. The mobile phone recycler will technology into more branches.
donate £2.50 per phone to the Woodland
Trust towards the protection of ancient
forests and the planting of new trees.
Kathryn Mintoft, Environmental Manager if left in landﬁll. Recycling even a modest
at Barclays, says “Millions of phones are fraction of these phones could make a
thrown away every year which are harmful huge difference to the environment”.
Energy efﬁciency in Barclays properties in the UK Investing to save
Last year we launched a ﬁve-year
Project Location Amount Energy
multimillion pound investment in energy
invested (£000) saving p.a.
efﬁciency in properties in the UK. The table
Air handling Barclays Capital, 750 3.3 GWh on the left shows progress in 2006.
units upgrade London
Lighting upgrade Barclays Capital, 250 1.6 GWh
Environmental management in Absa
Absa now has its own Environmental
Steering Committee, which is chaired by
Remote monitoring Branch network 900 2.7 GWh Executive Director, Robert East and includes
and boiler upgrades senior representatives of the main Absa
divisions. A dedicated department in Absa
Lighting and air conditioning Murray House, 75 2.6 GWh
focuses on environmental management,
and in 2006 this team published a new
Earthwatch Climate Challenge
Jane Briggs, Branch Manager in Bude, Cornwall was one of 12
Barclays employees who won a place on our Earthwatch Climate
Challenge. Jane travelled to the wild coastline of British Columbia in
Canada to ﬁnd out how climate change is affecting the migration
patterns of 100 grey whales.
Jane said: “My expedition was truly a once in a lifetime experience.
Climate change is fact and is affecting all corners of the earth, the
only question is ‘What can you do to help?’ ”
Since returning, Jane has arranged for energy surveys to be carried
out at both of the branches she manages, resulting in energy savings
and best practice ideas being shared with other branches.
44 Barclays PLC
Corporate Responsibility Report 2006
environmental policy, based on a fully The bank is also supporting innovative
Greener travel integrated Environmental Management programmes for the wider community –
Travel and transport are a big cause of System certiﬁed to ISO14001 standard – a good example being the PlayPumps
carbon emissions, and with increasing the ﬁrst for a major bank in South Africa. scheme. This is a specially designed
levels of trafﬁc congestion and pressure playground roundabout that powers a
Absa’s community investment takes
on car-parking, Barclaycard introduced a borehole water-pump by the action of the
account of the natural environment in
new green travel plan in 2003. Their main children turning the roundabout. The result
South Africa, aiming to protect its wildlife
building on the outskirts of Northampton is more clean water, less time spent fetching
and landscape for future generations.
houses around 4,000 employees, and the and carrying supplies, and new play
For example, Absa has donated
plan was designed to make it easier for equipment for the children. By the end of
ZAR 10 million over ten years to support
employees to travel to work in a greener March 2007 Absa will have installed over
the Peace Parks Foundation, to complement
and more efﬁcient way. Part of the car park 30 PlayPumps in the KwaZulu-Natal,
the government’s agenda under the
has been reserved for car-sharers, better Eastern Cape, Mpumalanga, Limpopo
New Partnership for Africa’s Development.
and larger cycle shelters have been and Free State provinces.
This aims to create healthy economic
provided, and a free bus service now links conditions in Africa and ultimately eradicate
the train and bus stations directly to There is more information on this at
poverty. The Peace Parks Foundation assists
Barclaycard House. www.playpumps.org.
governments in the Southern African
We estimate that the amount of CO2 Development Community with the training
There is more detail about managing our
saved is over 300 tonnes a year on the of more than 10,000 game rangers, ﬁeld
environmental impact on the website at
car-sharing scheme alone. The project guides, wildlife veterinarians and guest
has been featured in the UK Highways house managers.
Our goals, progress and commitments for
Agency’s brochure on ‘tackling congestion Inside Absa a number of recycling and 2007 can be found on page 7.
by influencing travel behaviour’ and the energy efﬁciency initiatives are under way,
Department for Transport’s Car Share supported by an extensive programme of
and Car Clubs Transport for London – employee communication and training.
Best Practice. Good progress is already being made on
issues such as paper use, lighting and cooling.
The roof on our global headquarters in Canary Wharf is the highest
in the world created speciﬁcally for biodiversity. This ‘living’ roof
recreates habitat areas that have been lost as East London has
redeveloped, and provides new havens for insect life and rare birds.
The subject of a BITC Business in the Environment ‘Beacon
Programme’ seminar, which brings together environmental experts
and business to share best practice, the roof has been visited by
over 200 architects, developers and regional development agency
ofﬁcials in the past six months. It also won the private sector section
of the 2006 Kyocera GreenLight Environmental Awards.
We are extending this ‘green’ approach to the new Barclaycard
building in Wilmington, Delaware, where 50,000 square foot of
roof is being planted with sedum plants.
Corporate Responsibility Report 2006 45
“Nobody is obliged to help anybody but it is your civil
responsibility if you are in a position to do it… I think
that if you are in business, you have to give back.”
Consumer, South Africa
Photograph: UNICEF/2005/Giacomo Pirozzi.
46 Barclays PLC
Corporate Responsibility Report 2006
Barclays in the community
2006 was a landmark year for our community investment programme.
After extensive research and consultation with our many stakeholders both
inside and outside the bank we now have a genuinely global programme that
unites all our businesses across the world. It is the ﬁrst time that Barclays has
done this and it reflects our growing international presence as a company. It will
also see us focus on the projects that are most closely aligned to our business,
and using our own skills and expertise to maximum effect. We continue rolling
out our new approach in 2007.
Our global programme One framework, three themes Key highlights
We believe the most effective community The new programme is underpinned global investment in
investment programmes are those that not
only provide real social beneﬁts but also add
by a stronger governance framework,
which reflects the increased proﬁle
£46.5m our communities.
value to our business. Programmes like and importance this area now has community
these will always attract more support within Barclays. organisations
internally, which in turn makes them more
The Chairman, Group Vice Chairman and
sustainable. employees actively
Chief Operating Ofﬁcer all now sit on the
In establishing our new global programme new Community Partnerships Committee, participated in
our priorities are: along with a senior representative of each our community
• to make a real and positive difference to business. This committee makes the 33,000 + programmes.
our local communities; strategic decisions about our community hours of work time
• to build Barclays brand and reputation in investment and approves and monitors all were given to
the eyes of our stakeholders; and
• to increase employee engagement.
major programmes. A small central team
implements the committee’s decisions and
75,000 + volunteering.
co-ordinates the global programmes, but raised by employees
Adapting to a new approach is challenging. for charity,
the majority of activity takes place in our
While our existing projects in individual including matching
businesses, each one setting its own
countries have worked well, their
integration into one global programme
tailored approach within our global strategy. £13.8m from Barclays.
This local ownership ensures that we
means building a new level of co-ordination
remain flexible about how best to meet the
between our businesses and regions, and
needs of each community, as well as those
a shift to a more equitable distribution of
of the business and its stakeholders.
resources. At the same time, whilst Total community contribution £m
awareness of our programmes amongst Taking into account what our stakeholders
customers and employees is high in some have told us, and where we believe we UK
places, it is less strong in others. This will be can have the maximum impact, we are Non-UK
a focus for us in 2007. concentrating our investment on three
At the same time as developing our new
global approach, we have continued to • Banking on brighter futures 30
grow community investment activity. In
2006 we contributed £46.5 million to
• Looking after local communities 20
supporting good causes, up 19% on 2005 • Charity begins at work 10
(£39.1 million), with programmes being
delivered in the UK, Europe, Asia-Paciﬁc, 0
the Americas and Africa. 03 04 05 06
Corporate Responsibility Report 2006 47
Barclays in the community
Banking on brighter futures by the programme, with support ranging
Listening Banking on brighter futures ﬁts closely from ﬁnancial literacy training and debt
Our new approach to community with our business, and gives us the fullest advice, to ﬁnancial support for education
investment is based on detailed opportunity to use not only our investment related costs. We also had a new
stakeholder consultation undertaken but also our skills and expertise to help programme delivered by One Parent
in nine different countries during 2006. people out of poverty, disadvantage, Families in 2006 offering lone parents a
Gathering feedback from customers, and debt. It is no surprise then, that our two week, work preparation programme
employees and the public in Spain, stakeholders are quite clear that this is where they spend time at Barclaycard’s
Germany, the USA, Ghana, South Africa, where we can – and should – be making Northampton HQ. The feedback so far has
Hong Kong, China, and India, as well as the most impact. We also believe it is the been excellent and 33 parents have
the UK, has supported our decision to area where we can make a real and beneﬁted to date.
focus on the themes we have chosen. tangible contribution to the UN Millennium
Development Goals, particularly in playing
These stakeholders told us that they a part in reducing poverty. The facts
expect Barclays to support local projects,
and that it is important for major ﬁnancial Through the programme we are focusing
on increasing ﬁnancial inclusion,
services companies to do something parents and children helped by
positive about ﬁnancial inclusion, encouraging entrepreneurship and Citizens Advice.
education and entrepreneurship. supporting education, particularly ﬁnancial
This not only led to the decision to focus a
great part of our efforts under the ‘Banking
This is an extensive programme and parents attended ﬁnancial literacy training.
on brighter futures’ theme, but the you can ﬁnd more on the website at
consultation exercise has also shaped
our thinking across the board.
The following are some of the highlights grants totalling
“Education is the most important [focus for 2006.
for a company undertaking community
Barclaycard Horizons distributed to 4,800 parents.
investment] and should be top priority…
you need education. Once you are educated This is a three-year, £3 million community
no one can take it away from you.” programme in the UK that aims to support 12,200
Consumer, India 50,000 disadvantaged lone parents to lone parents and their children reached by
work their way out of debt and poverty. Parentline Plus.
“It is very important that a company is
Barclaycard is working closely with Citizens
conscious that it has a responsibility Overall,
Advice, the Family Welfare Association,
towards society and that it has to give
something back to the community.”
One Parent Families and Parentline Plus. 30,000
Employee, Spain By the end of 2006, over 30,000 lone lone parents and their children helped.
parents and their children had been helped
Training for a brighter future
In Spain, the Northern Youth Association is
helping to provide vocational skills training
to 20 unemployed people. Each receives
800 hours of training and support, designed
to help them become electricians and ﬁnd
employment. Backed by Barclays, with
some of the funds raised by our employees,
support for the initiative forms part of our
Banking on brighter futures programme.
48 Barclays PLC
Corporate Responsibility Report 2006
Big Brothers Big Sisters The facts
Big Brothers Big Sisters is a workplace
Barclaycard has got the whole
mentoring programme in New York City. 700
The programme matches corporate homeless people have received grants.
company involved, working with volunteers with disadvantaged youths
a number of charities. It is a brave aged 12 to 17 for twice-weekly educational
and cultural activities. The programme
and visible initiative across the of those receiving grants say they have
expanded in 2006, with 15 students from gained new work related skills as a result.
business and meets the objective Harlem’s Park East High School being
of responsible lending with mentored by Barclays Capital employees
Barclaycard committing to (up from ten in 2005). The activities
say their motivation has increased and
included workplace etiquette, community
support the most vulnerable service and letter writing.
for the long term. 82%
The programme is being expanded to have increased self-conﬁdence.
support long-term mentoring for
Judge, Credit Card Awards, 2006.
Barclaycard Horizons won the best Corporate Looking after local communities
Social Responsibility category at these awards. This part of the programme is all about
investing in the many neighbourhoods
around the world where Barclays has a
US$220,000 presence. Supporting the causes close to
grant was provided to support the home is important to us and is one of the
In 2006 Absa contributed ZAR 30 million mentoring programme through until 2009. best ways that we can meet local needs
to community investment in South Africa and also engage local stakeholders, be they
with 0.5% of post-tax proﬁt allocated 15 customers, community representatives
to the Absa Foundation for distribution students this year beneﬁted from mentoring or employees.
to non-proﬁt and community-based by Barclays Capital employees.
Absa has a vibrant community investment
Barclays received the Big Brothers Big Focusing our community
programme focused on the issues of health,
Sisters Corporate Honoree Award for its
education and entrepreneurship. In 2006
successful projects undertaken included
a ZAR 600,000 donation to the Education We want to concentrate our investment
with Enterprise Trust. Absa’s support is Changing lives where we can make the most impact, and
designed to help tackle the problem of Barclays has supported Crisis Changing as a result there are some things that we
youth unemployment in South Africa. Lives for four years, investing £100,000 have decided not to support. These
The charity will reach over 5,000 every year. As a result the UK charity include:
secondary school children from low- provides homeless people with grants • Sponsorship of individuals.
income communities across ﬁve provinces, towards education, employment or self- • Support for political parties or bodies.
teaching them about entrepreneurship employment, helping them help themselves • Promotion of religious beliefs (though
and the skills needed to establish a and become independent. There have been we do consider projects run by religious
successful business. some remarkable success stories and over groups that beneﬁt the whole
63% of the recipients have successfully got community).
In 2006 Absa was rated the most caring • Donations to Rotary, Lions Clubs and
back into the job market, which is well
ﬁnancial services company in South Africa, other third-party giving organisations.
beyond expectations. We are now working
and ranked third most caring company in • Funding for hospital costs for
with Crisis to set new targets for 2007 using
all sectors according to Corporate Care individuals.
the London Benchmarking Group model.
Check report. • Medical research.
Make a Difference Day (left)
Barclays single biggest volunteering day
saw 11,700 employees in 25 countries
involved in 900 projects, with international
participation up by 70%.
Spaces for Sports (right)
Our £30 million programme has so far
resulted in 120 community sports facilities
and beneﬁted 330,000 people.
Corporate Responsibility Report 2006 49
Barclays in the community
5 3 4
These are just a few examples 3 7
of Barclays community 1
programme at work.
For more information please visit
Banking on brighter futures Charity begins at work Looking after local communities
1 £1.8m 1 5,050 1 £20,000
Barclays and Help the Aged are Employees participate in GAYE (Give Donation to Aanchal Ltd, supporting
working together over three years to as You Earn) in Absa. (Total donation Asian women who have experienced
provide money management and debt of ZAR 16,381 in 2006.) domestic violence in London.
advice to 30,000 older people in the UK.
2 40 2 ¤60,000
2 753 Events organised by the Asia Paciﬁc Donation to Caritas supporting 345
Computers donated to Fundación Bip Charities and Volunteer Group, elderly people living alone in Galicia,
Bip in Spain. The Fundacion helps supporting charities in Japan, Hong Spain.
socially excluded people ﬁnd Kong, Singapore and China.
employment. 3 BRL$19,000
3 US$132,000 Building a play area for children living
3 ZWD$2.7bn Raised by 150 employees, friends and in favelas in Brazil.
Building of four classrooms, ablution family for the Susan G Komen
facilities and a science block at Foundation for Breast Cancer. 4 £100,000
Tabudirira school in Zimbabwe. Donation to the Red Cross to support
4 1,500 establishment of disaster
4 £12,000 Copies of a cookbook written and preparedness teams in India.
Rhondda Housing Association is published by Barclaycard colleagues
providing specialist support for in Germany, to raise funds for Unicef. 5 EGP350,000
tenants in ﬁnancial difﬁculties. Funding for Mansoura University
5 51 Hospital and Shelby Hospital in Egypt
5 CS186m Barclaycard US employees act as for purchase of equipment.
Donation to Oguaa Business mentors for disadvantaged children at
Incubator in Ghana, to support young East Side Charter School. 6 £25,000
people in starting their own business. Assisting disaster relief efforts after
6 £643,000 the Indonesian earthquake.
6 ¤17,600 Raised for Cancer Research UK by
To the Northern Youth Association in colleagues with matched funding 7 MUR1.7m
Spain to provide vocational skills from Barclays. To Mauritius charities to raise
training to unemployed people in awareness of, and tackle, diabetes.
Madrid. 7 100
Elderly people taken on a day out and 8 20,000
7 £150,000 provided with food parcels by Barclays Mosquito nets distributed in malaria
To Digital Links for provision of Capital employees in Shanghai, China. prone areas of Kenya.
10,000 computers to schools in
Kenya, Tanzania and Uganda.
50 Barclays PLC
Corporate Responsibility Report 2006
Barclays Spaces for Sports relationships with the communities and
By far our biggest community project in Intelligent giving customers whom we serve, which helps
the UK is the £30 million Barclays ‘Spaces Barclays came third in the UK’s Intelligent fortify the Barclays brand and reputation.”
for Sports’, which we reported on last year. Giving Index which recognises companies
We are now into the ﬁnal year of this three- that support employees’ community activity. Volunteering
year initiative, which aims to provide 200 Thousands of our employees play an active
community sports facilities, and 3,600 free role in their communities all year round.
coaching packs to teams and groups in offer a range of assistance from matched Following are two typical examples of
disadvantaged areas. fundraising to volunteering grants. Not only the work they have been doing, which
does this make a real contribution to our demonstrate the increased priority we
In 2006 we commissioned Manchester
communities, it also motivates and engages are placing on skills-based volunteering.
Metropolitan University to undertake a
study into the impacts of the programme. our employees. In the UK, members of the Internal
Their initial ﬁndings show that the Communications team worked with
programme is helping to regenerate local CSV Make a Difference Day Westminster Volunteer Bureau to help small
communities, having a positive influence on This is the single biggest event of the charities communicate their services better.
youth behaviour and volunteering. volunteering year for Barclays. Our At least ten charities have already beneﬁted
involvement started in the UK seven years from the seminars and handbook.
The facts ago, and now extends to 25 countries
worldwide. In 2006, 11,700 employees In Zimbabwe we have established a Skills
Training Centre at Marondera Prison to help
120 worldwide got involved in over 900 projects,
with international participation up 70%. give prison inmates the skills they need to
sites have been completed. be self-reliant after their sentence ends.
To give just a flavour of the diversity of our For example, there is training in bricklaying,
2,544 projects: knitting and candle making, with our
coaching packs awarded. employees helping to train the prisoners.
• In the UK, employees visited local
primary schools to help children learn This is the ﬁrst time a bank has supported a
330,000 about money. project like this in Zimbabwe. This was one
people have so far beneﬁted from the • In Spain, 34 colleagues organised a of three Barclays projects that won a CSV
programme. Special Olympics event for 175 people Make a Difference Day award.
The Red Cross in Kenya • In Botswana, Barclays employees ran There is more detail about our community
We have always done what we can to a workshop on culture, heritage and programme on the website at
support emergency relief. Along with HIV/AIDS awareness. www.barclays.com/community.
support for victims of the Indonesian • Barclays Capital Asia Paciﬁc organised Our goals, progress and commitments for
earthquake and the Lebanon crisis, and events for the ﬁrst time, including an arts 2007 can be found on page 7.
support for disaster preparedness in India, and crafts day for 60 children with HIV in
Barclays donated £100,000 to the Red Cross Thailand. Benchmarking
last year to help their Kenyan famine relief
Leading from the front Another innovation this year
efforts. The majority of the food was directed
Barclays Group Chief Executive John Varley was our decision to start using
to malnourished children, elderly people,
took part in his own CSV Make a Difference the London Benchmarking
and people living with AIDS. Barclays Kenya
Day project, visiting Positive East, an HIV Group (LBG) model to evaluate
Managing Director, Adan Mohamed, took
charity based in Stratford in East London. all our major programmes. This allows us
an active part in the programme, along with
The charity works with around 1,500 people to measure what we do in the community
many other colleagues, and a public appeal
who have been diagnosed as HIV positive. against similar companies, and gauge the
ran in our branches across the country.
John was able to use his skills to assist the success of particular programmes. We like
charity develop its strategy for the future – the LBG approach because it focuses on
everything from resourcing, to IT, the use real inputs, outputs and impacts.
Nearly 300 of mentors, performance management,
This new approach has been welcomed by
metric tonnes of food were distributed to our community partners, including James
Since the meeting, John has arranged for Beeby, Corporate Fundraising and Projects
128,000 + Barclays people from marketing and IT to Manager at Leonard Cheshire. “I found it
very useful to have set the parameters for
people in ten famine-affected districts. provide support to Positive East; in addition,
he has offered two mentoring sessions for our new programme at such an early
one of their clients. stage. It made us focus a great deal more
Charity begins at work not only on the outcomes we were looking
This part of our programme is dedicated to As he said, “The visit underlined for to achieve from the Ready to Start
– and driven by – our own people. Through me the value of Make a Difference Day. programme, but also on the mechanics we
it we support and encourage our employees The communities where we operate beneﬁt needed to have in place in order to be able
to get involved in the community. It is their from the expertise and energy of Barclays to capture this data.”
choice who, when and how to help and we people. In return, we are able to strengthen
Corporate Responsibility Report 2006 51
Our governance framework
Shareholders Board Committees
• Board Audit Committee(b)
• Board Risk Committee(c)
• Board HR and Remuneration Committee(d)
• Board Corporate Governance
and Nominations Committee(e)
Sub Committees of ExCo
Authority • Brand and Reputation Committee
• Community Partnerships Committee Accountability,
CEO and Executive Committee reporting
Business lines and
central support functions
Foundation stones of governance
Guiding Code of Principal
Principles Conduct Risks
(a) Executive Committee members: John Varley, Group Chief Executive;
Robert E Diamond Jr, President, Barclays PLC and CEO, Investment Banking and Investment
Management; Paul Idzik, Chief Operating Officer; Naguib Kheraj, Group Finance Director;
Frits Seegers, CEO, Global Retail and Commercial Banking.
(b) Chairman: Stephen Russell.
(c) Chairman: Sir Richard Broadbent.
(d) Chairman: Sir Nigel Rudd to December 2006 (Sir Richard Broadbent from January 2007).
(e) Chairman: Matthew Barrett to December 2006 (Marcus Agius from January 2007).
Governance and control The Board and its committees All new Directors receive a comprehensive
Clear systems of governance and control The Board is the decision-making body for induction, including brieﬁngs on social,
underpin our licence to do business all matters deemed material to Barclays in environmental and ethical issues. The
and ensure that accountability, risk strategic, ﬁnancial and reputational terms. Board regularly discusses our corporate
management and control are embedded Responsibility for the day to day responsibility strategy and progress,
at the right levels. management of Barclays is delegated to and is supported in its work by four Board
the Group Chief Executive, supported by committees, each chaired by and comprising
the Group Executive Committee. only non-executive Directors. These
Composition of the Board committees have clearly deﬁned terms
The Board comprises the Chairman, ﬁve of reference, responsibilities and powers.
executive Directors and nine independent Further details can be found in the corporate
non-executive Directors. Collectively, the governance section of our annual report
Executive independent non-executive Directors have www.investorrelations.barclays.com.
Directors considerable experience and influence
across many sectors and countries and Managing corporate responsibility
comprise a majority of the Board. Their The Group Chief Executive Ofﬁcer,
independent status is reassessed annually, supported by the Group Executive
Independent taking into account the Combined Code on Committee, has primary responsibility
1 non-executive Corporate Governance. At present there is for embedding ‘responsible banking’
Directors one woman on the board, and this is an area
9 and sustainability throughout Barclays.
where we aim to make more progress.
52 Barclays PLC
Corporate Responsibility Report 2006
This includes setting strategy and the Conduct that was launched by the Group
identiﬁcation, review and reporting of all Chief Executive in 2006. For more on our Members of the Brand and
business issues (both risks and commercial Code of Conduct and other policies, visit Reputation Committee
opportunities) around the world that have www.barclays.com/corporateresponsibility/
a social, environmental, ethical or and choose the Responsible Banking Sir Nigel Rudd(a)
reputational dimension. option. Deputy Chairman (Chairman of the Committee)
The Brand and Reputation Committee, The Code of Conduct consolidates the Group Vice Chairman (Vice Chairman of the
a sub-committee of Group Executive business principles that apply across the Committee)
Committee, is chaired by Sir Nigel Rudd, whole organisation around the world. It is Alastair Camp
Deputy Chairman and a non-executive championed by senior business leaders, and Corporate Responsibility Director
Director on the Board. The Committee’s role all employees are required to conﬁrm their Christine Farnish
is to identify, review and manage issues of ongoing compliance with it on an annual Public Policy Director
ethical and reputational signiﬁcance to basis. Training on the code is part of the Mark Harding
Barclays. The Committee met three times induction process for new employees. General Counsel
in 2006. A good example of its work was This is supplemented by speciﬁc programmes
its involvement in reviewing the proposals as appropriate to individual businesses. Barclays Brand and UK Banking
for the integration of the branch networks For example, Barclaycard supports the Marketing Director
and supporting infrastructure of Barclays code through its ‘Fit for Business’ online Paul Idzik(b)
and Woolwich in the UK. questionnaire. This includes examination Chief Operating Ofﬁcer
of our values, behaviours and approach Thomas L Kalaris
The Group Executive Committee is also
to fraud, bribery and corruption. Chief Executive, Barclays Wealth
supported by another sub-committee –
The questionnaire must be completed as (representing Barclays Capital and Barclays
the Community Partnerships Committee – Global Investors)
part of the employee’s annual assessment.
which sets the policy and provides
governance for our global community Group Finance Director
Corporate responsibility principal risks
investment, including our extensive ﬁnancial
Our governance standards form the Robert Le Blanc
inclusion strategy. The Environmental Risk Director
foundation of our system of internal
Steering Group provides direction and
governance and control, consistent with the Frits Seegers(a)(b)
governance to support our environmental
Turnbull guidance for directors on internal Chief Executive, Global Retail and Commercial
and climate change strategies, and to spread Banking
control for UK-listed companies. Corporate
best practice across Barclays.
responsibility is one of 12 ‘principal risks’ Stephen Whitehead
of Group-level signiﬁcance, which are an Corporate Affairs Director
Code of Conduct
integral part of Barclays risk reporting (a) member of the Board
Our Guiding Principles establish the values (b) member of Group Executive Committee
framework. The Brand and Reputation
that underpin all our work, and these are
Committee provides the oversight for this
supported by a new Group-wide Code of
Corporate responsibility principal risks
Risk How the risk is managed and controlled Example of areas covered
Failure to manage the • Group environmental management system and • Reporting of environmental impact against
1 direct and indirect
environmental and social
impacts of our activities.
policy, core components aligned to ISO14001.
Barclays Environmental Steering Group.
Social and environmental impact assessments.
Setting strategy, reviewing progress.
Compliance with Equator Principles,
e.g. ﬁnancing dams and mines.
• Social and environmental lending guidelines. • Financing and debt issuance activities.
Failure to identify and • Monitoring of ‘franchise health’ measures • Customer and employee satisfaction,
2 manage the impact
of business decisions
or activity on the
communities in which
(customer, colleague, community).
Escalation of signiﬁcant issues to Brand and
Barclays operational risk framework (includes
health of our brand.
As outlined above.
Process changes, new product development.
we operate. corporate responsibility).
• Community Partnerships Committee. • Global strategy and authorisation of major
• Supplier screening policy. • Review of environmental and social impacts.
Failure to treat existing and • Annual attestation by each employee of • Applies to all business issues.
3 potential customers fairly.
compliance with the Code of Conduct.
Barclays ‘treating customers fairly’ forum and
Policy and standards on managing complaints.
Openness and transparency of products
Trends and root cause analysis.
Corporate Responsibility Report 2006 53
Creating value for stakeholders
Our primary objective is to generate value for our shareholders, as shown by the
measure ‘Total Shareholder Return’. We aim to support our customers to achieve
their ﬁnancial goals and, as a global organisation, we also help to create economic
growth in many countries around the world. Our aim is to do this in a sustainable
way, as we have set out in this report.
How we create value for stakeholders Governments
Our payments of corporation tax amounted
to £1.9 billion last year. In addition to this,
governments around the world beneﬁted
Customers Shareholders indirectly from the personal taxes paid by
rvi p ita tu
rn our employees and through the corporation
s Ca re
Pa ld er taxes levied on our suppliers.
t al Communities
We provided £46.5 million in direct
Payment Commitment and skills community investment in 2006 (up 19%),
Barclays focusing increasingly on our strategic
Goods and services Remuneration/reward theme of ‘Banking on brighter futures’.
So 33,000 employees participated in
community programmes, giving over
xe en iro 75,000 hours of work time, with 37,000
nm Inv m
iro es t hours of personal time also committed.
We paid £1.97 billion in dividends to
Governments Communities our 750,000 shareholders in 2006.
These shareholders include many of the
major pension funds, mutual funds and
Customers under Black Economic Empowerment
guidelines. Our supplier policies are outlined insurance companies and our business
As our business has grown, we generated
in the chapter ‘Working with our suppliers’. success therefore beneﬁts millions of
£21.6 billion of income in 2006 (up 25%)
individuals around the world who rely on
and our customer base exceeded 27 million.
Employees their pensions and individual savings for
We also create indirect economic beneﬁts
We are a major employer around the their income. Taking into account our share
by providing the ﬁnance our customers
world with 123,000 full-time equivalent price as well as the dividends paid, for the
need to grow their own businesses and to
employees, of whom over 40,000 are based year to 31st December 2006 we delivered a
in Africa. All our Managing Directors on the Total Shareholder Return of 25% and were
positioned ﬁfth against our benchmark
Suppliers continent are African. We paid £8.2 billion
in remuneration in 2006 (including peer group of 12 global banks. The Total
Payments to our suppliers amounted to
employment related social security costs), Shareholder Return for the FTSE 100
approximately £4.9 billion in 2006 and,
and in many countries this is an important Companies was 14% for the year.
again, we generate indirect beneﬁts for
all the companies in our supply chain. contribution to local employment and to the There is a table showing supporting data
Our policies are also supporting diversity. local economy, both directly and indirectly. on page 59.
For example, Absa paid over £220 million to Our investment in training also develops
companies in its supply chain qualifying local talent and intellectual capital.
54 Barclays PLC
Corporate Responsibility Report 2006
Engaging our stakeholders
The why, the how and the who
Barclays engages with a broad variety of audiences on a large number of issues
across Europe, Africa, Asia and the US. Our philosophy is that the quality of our
decision-making depends upon the insight we have into the communities in which
we operate, including the social, environmental, ethical and economic issues that
are important to them.
Proactive engagement range of stakeholder groups. These were meeting by our Corporate Responsibility
Our aim is to participate in an open dialogue climate change, consumer indebtedness, Director is available on our website at
on issues of public interest that are relevant ﬁnancial inclusion, and the integration of www.investorrelations.barclays.com.
to our business and of interest to our environmental and social considerations
Investors expressed a broad range of
stakeholders. We believe this is essential to into our risk management procedures
interest from employee policies to
the promotion of understanding and trust. (particularly in relation to project ﬁnance).
responsible lending, business ethics,
Engagement happens in a variety of ways. Each of these issues is covered in this report environmental policies, access to bank
We commission independent research into and includes reference to stakeholder views accounts, fraud prevention and offshoring.
the opinion of stakeholder groups in the and how we are responding to them. The feedback from both mainstream and
political, media, customer, investor and For example, the revision of the Equator specialist investors is sought annually
voluntary sector areas. We reach out to Principles included consultation with the through third-party research and reported
stakeholders through our website, through International Finance Corporation, client to the Board.
discussion at conferences and seminars, companies, environmental and social
Our main communication with private
participation in sectoral and cross-sectoral consultants, and NGOs.
shareholders is through the Annual Review
initiatives, through contributions to These views were taken into account during which includes a summary of the Group’s
published reports and through partnerships the drafting process to ensure that the end ﬁnancial statements and a review of each
with other businesses and Non product was practical and effective, and that business area. Many private shareholders
Governmental Organisations (NGOs). it met stakeholder expectations while attend our Annual General Meeting, where
We also participate in dialogue with trades avoiding being so onerous that it would deter all resolutions are voted on a poll basis, so
unions, governments and regulators, trade other banks from adopting the criteria. that the views of all shareholders are
associations, academia where relevant to reflected proportionately. The poll results
our business, and with our suppliers. Listening to our investors are made available at the meeting and on
Examples of our engagement with Barclays has around 750,000 institutional the investor relations website.
customers, employees and the voluntary and private shareholders worldwide,
sector appear in other parts of this report. including many of the major pension funds, Putting human rights into practice
mutual funds and insurance companies. During 2006 we continued to extend the
Aligning our reporting with focus on integrating human rights
stakeholder expectations Our executives meet regularly with
considerations into our decision-making.
We conduct a comprehensive survey of institutional shareholders in many different
We have strengthened our supplier
a broad cross-section of stakeholders countries and discuss Barclays strategy and
screening criteria and increased the
following publication of our annual performance. Our Chairman, Senior
weighting accorded to issues such as labour
Corporate Responsibility Report. The most Independent Director and Corporate
relations and environment. In our lending
recent feedback is summarised on page ﬁve Responsibility Director also meet with
activities, we adopted the revised Equator
and indicates that our reporting continues investors to discuss corporate governance
Principles in June 2006, which now include
to improve in line with the high expectation and socially responsible investment (SRI)
more speciﬁc human rights criteria than
of companies such as Barclays. issues. The number of meetings rose in
before, relating to issues such as
2006 reflecting our increasingly diverse
During 2006, four themes recurred consultation with communities affected
shareholder base. The presentation given
consistently in conversations across the by the projects we support.
during a Barclays investor road show
Corporate Responsibility Report 2006 55
Engaging our stakeholders
Our approach goes further than the government organisations and contributes
Principles in some areas. For example, Ethical indices to the development of effective standards
we reference additional standards in our and legislation. Barclays is a founder
guidance to lending managers and in signatory to the Wolfsberg Principles,
our terms of reference for consultants developed in 2000 and supported by 12
conducting environmental and social impact international banks. The Wolfsberg group
assessments of projects on our behalf. has issued principles and statements on
aspects of money laundering, which can be
Our general lending is supported by
found at www.wolfsberg-principles.com.
environmental and social guidance notes Barclays retained membership of the
covering over 50 industrial and commercial FTSE4Good index series and the Dow Raising concerns
sectors, which highlight the relevant human Jones Sustainability Index (DJSI) World and If employees encounter misconduct, fraud
rights issues which should be taken into European indices. In the DJSI we improved or illegal activity at work, and do not feel
account when considering a ﬁnancial our overall score and the scores of each able to resolve the issue, Barclays has a
transaction or a new customer relationship. of the three dimensions (economic, Raising Concerns policy and guidance.
Barclays introduced a central Code of environmental and social). We retained There is a telephone number and email
Conduct in 2006 which makes speciﬁc the number one position in environmental contact address for employees in need.
reference to human rights and informs the reporting and a notable improvement was We take employees’ concerns seriously and
separate codes adopted by the different recorded in the Occupational Health and respect conﬁdentiality as far as possible.
parts of our business to ﬁt their speciﬁc Safety section where our score improved No employee will be treated differently as a
operations. The Code can be found at: from 35 in 2005 to 93. We improved our result of raising a concern.
www.barclays.com/codeofconduct. ranking in the Business in the Community
Corporate Responsibility Index, achieving Engaging with political audiences
We continued our membership of the third position out of 131 companies. The Group did not give any money for
Business Leaders’ Initiative on Human In the Carbon Disclosure Project we political purposes in the UK, nor did it make
Rights (BLIHR) and are supporting the were ranked in the top 50 of the global any donations to EU political organisations or
second three-year phase of work, agreed FT 500 companies. Please see incur any EU political expenditure during the
last year. The 2006 BLIHR report outlining www.sustainability-index.com/ year. Absa Group Limited, in which the Group
outputs and evaluating the effectiveness and www.ftse4good.com acquired a majority stake in 2005, made
of the initiative can be accessed on the for more information. donations totalling £212,000 in 2006. This is
initiative’s website www.blihr.org.
in accordance with its policy of making
As a BLIHR member, we hosted an outreach political donations to the major South
seminar on human rights for other banks in example, the International Labour African parties to support the development
April 2006 which included presentations Organisation (ILO) Core Conventions. of democracy in South Africa. The Group
from the legal, NGO, investor and ethical made no other political donations in 2006.
index perspectives. This discussion initiated Acting to stop ﬁnancial crime
Naturally we monitor policy and regulatory
further interest among banks which We have strict policies on issues such as
developments in markets where we
contributed to a human rights project fraud, bribery and corruption, and money
do business, and review any new
proposal being adopted by the United laundering prevention. These are geared to
developments that might affect us or our
Nations Environment Programme – Finance ensuring that our systems and processes
customers. If we have a strong view we will
Initiative (UNEP FI) in November 2006. are not used for illegal purposes, and that
make that known to governments and
our employees are clear on the required
The project aims to provide context, regulators either directly or via our trade
conduct in fulﬁlling their roles. For example
guidance and an online reference tool for the associations. We have public policy
our bribery and corruption policy prohibits
ﬁnancial services sector, primarily on how to specialists in the UK, Brussels, the US and
all bribes, corrupt payments, rewards or
identify and mitigate human rights risk in Africa, who are well acquainted with
inducements which would not be
lending transactions. The UNEP FI initiative accepted good practice in making political
authorised in the ordinary course of
has 170 member organisations worldwide representations.
business and fall outside our stated
and provides the potential to consult and
deﬁnition of an acceptable gift. Facilitation We engage with governments,
seek contributions from ﬁnancial sector
payments are contrary to this policy and will parliamentarians, regulators and policy-
companies and other external stakeholders
not be tolerated unless required for medical makers globally, both formally (for example,
operating on every continent.
or safety emergencies in jurisdictions where responding to consultations and inquiries)
Barclays Group Statement on Human such payments are common practice. and informally (such as through working
Rights can be found at groups and seminars). We also indirectly
Our anti-money laundering policy and
www.barclays.com/humanrights. engage with stakeholders, for example via
assurance programme ensures that
It outlines Barclays approach to the human trade associations and other industry bodies.
Barclays has the necessary controls
rights agenda, our commitment to operate Examples of such activity in 2006 include
and systems to comply with all legal
in accordance with the Universal responding to the UK Department of Trade
and regulatory requirements in every
Declaration of Human Rights (UDHR) and and Industry's consultation on data-sharing,
jurisdiction in which we operate.
to take account of other internationally and our appearance before the House of
Our central anti-money laundering
accepted human rights standards, for Commons Treasury Select Committee as
team engages with trade, industry and
part of its inquiry into ﬁnancial inclusion.
56 Barclays PLC
Corporate Responsibility Report 2006
Targets and data
Environmental performance UK energy Business travel
2005-2006 Our current UK energy target is to reduce Travel is also a challenging area. Our global
We are in the ﬁrst year of our new ﬁve-year total consumption per square metre by 20% business is expanding rapidly, and our
targets. Good progress has been made and by 2010. This is an important area for us, business travel is growing at a similar rate.
where we are not on-track we believe that given our carbon neutral commitment. While we are doing what we can to reduce
the investments we have made in 2006 will During 2006 we looked again at our UK data this, we have to accept that it is often
start to show results over the remaining centres’ future energy requirements, and necessary for our people to travel in order to
four years. identiﬁed that their projected growth was serve our customers well. In 2006 we made
much higher than had originally been progress in increasing and monitoring our
UK carbon intensity forecast. In practice this will mean that it is use of rail services, and with our company
Our carbon intensity target has now been highly unlikely we will be able to meet our car fleet, which is being reviewed by the
restated. It was originally based on the overall energy reduction targets between Energy Savings Trust. However, air travel is
geographical location of our customers, 2007 and 2010. This is disappointing, but still our biggest challenge. This increased in
but the income ﬁgure we are using now is we are taking what action we can to ensure 2006, but some of this was due to the fact
based on the locations of our ofﬁces; in that the shortfall is as small as possible. that we are now including information from
other words we now take into account our international booking centres for the
the cost of every customer serviced by our Compared with the rest of our buildings ﬁrst time. However, there was still an
UK operations, even if they live overseas. and branches, the energy needs of our data underlying growth in travel by air and in this
For example, many of our Private Banking centres are very different. Because their respect we are no different from many other
clients are based abroad, but are managed requirements are so much higher, we companies of a similar size and
from the UK. intend to split the data centres out from the international scale. With this in mind, we
main energy reduction target, and during have started to monitor how often we use
Our overall reduction target is to reduce
2007 we will be identifying a separate video and audio conferencing facilities
emissions by 20% by 2010 against a 2000
performance target for them – possibly instead, and we have also started to
baseline (230,627 tonnes CO2). Our 2006
‘million instructions per second’. This will upgrade these facilities across our sites,
emissions of 222,773 tonnes CO2 have
help us monitor how efﬁcient our data to give our people a better, lower-carbon
resulted in a 3% reduction overall, which falls
centres are in processing and storing alternative.
1% short of our aim to reduce emissions by
electronic data, which is their core business
4% per annum. This goal needs to be seen in
activity. Separate reporting will also enable Global coverage of data
the context of our strong business growth.
outside observers to understand the energy We now report 100% of our environmental
We also have a target for reducing UK CO2
performance of our conventional ofﬁces performance data in the UK, following the
emissions per million pounds of income from
and buildings, and assess whether these inclusion of the Barclays Capital data centre.
16.8 tonnes in 2005 to 12.6 tonnes by 2010.
are being managed in an energy-efﬁcient Around 80% of continental European
To assist with this, from April 2007 Barclays
way. Data centres are, of course, still part operations are covered. In our other
will source 50% of the energy used by its
of our overall CO2 reduction and carbon territories, coverage has reached 94%
UK operations from green sources, which
intensity targets. reflecting the inclusion of Absa for the
will reduce our carbon emissions by
approximately 120,000 tonnes a year.
There is more detail about our UK and
European performance against targets
on the website at
UK carbon intensity UK carbon emissions
air travel 11.9%
Tonnes CO2/£m income
and car travel The UK CO2 emissions data has been
5.4% independently veriﬁed by SGS.
15.0 Energy from
10.0 offices and
04 05 06 2010
Corporate Responsibility Report 2006 57
Environmental data tables
% change 2010
2006 2005 against baseline target On track
Estimated coverage of data (by employees) – 100%
Carbon Intensity tonnes CO2/£m(a) 16.2 16.8 – 4% 12.6 ✔
CO2 emissions (energy and all travel) tonnes 222,773 210,178(b) –3%(c) –20% ✘
– which is made up of emissions from:
Energy from ofﬁces and buildings GWh 472 497 –5%
Energy from data centres(d) GWh 67 39(e) 73%
Business travel (car, rail, air) million km 303 246 23%
Energy (data centre) per m2 kWh/m2 38 22(e) 73%
Energy (ofﬁces and buildings) per person kWh/FTE 7,544 7,925 –5% –20% ✔
Video- and telephone-conference usage No. of calls 3,301(f ) n/a
Water use per person m3/FTE 11.9 12.3 –3% –20% ✔
Copier paper per person kg/FTE 39.7 39.0 2% –10% ✘
% of recycled copier paper used % 95% 80% 15% >80% ✔
Paper (total) tonnes 16,556 17,198 – 4%
General ofﬁce waste at major sites tonnes 9,393(g) 11,769 –20% –20% ✔
% of waste recycled at major sites % 35%(h) 52% –17% >20% ✘
% of WEEE(i) reused/recycled % 99% 95% 4% min 95% ✔
Employees (FTE) No. 62,530 62,682 0%
Floor space 000 m2 1,828 1,608 14%
Continental Europe (j)
Estimated coverage of data (by employees) – 80%
CO2 emissions (energy and all travel) tonnes 16,356 15,965 2%
Energy GWh 40.3 39.7 2%
Energy per person kWh/FTE 4,981 6,189 –20%
Business air travel million km 19(k) 4 (l)
Video- and telephone-conference usage No. of calls 62(f ) n/a
Water use per person m3/FTE 8.56 12.5 –32%
Copier paper per person kg/FTE 63.3 95.3 –34%
Employees No. 8,100 6,419 26%
Floor space 000 m2 240 232 4%
Africa, Americas and Asia Paciﬁc (n) – 2005 ﬁgures do not include Absa in South Africa(l)
Estimated coverage of data (by employees) – 94%
CO2 emissions (energy and all travel) tonnes 234,071 31,415
Energy GWh 256 58
Energy per person kWh/FTE 4,926 1,227
Business air travel million km 282(k) 7(m)
Video- and telephone-conference usage No. of calls 947(f ) n/a
Copier paper per person kg/FTE 58.1 118.2
Employees No. 51,970 47,236
Floor space 000 m2 1,227 66
Information on how we calculated these ﬁgures is available on request.
(a) Carbon intensity is calculated using UK income net of insurance claims.
(b) The 2005 emissions ﬁgure is restated post publication of data May 2005.
(c) The baseline for the CO2 emissions target is against 2000 data, in which we emitted 230,627 tonnes of CO2.
(d) Data centres refer to two buildings located in the UK.
(e) BarCap’s data centre was in construction for the ﬁrst nine months of 2005. This data estimates three months usage based on 2006
(f ) This is an estimation based on the number of calls between Jan-Oct 2006.
(g) Landﬁll waste now includes cardboard. This data contains an estimation for our Category 2 sites (small ofﬁces and branches) to
make it comparable to 2005.
(h) Recycling ﬁgures now include glass.
(i) WEEE is Waste and Electrical/Electronic Equipment.
(j) European coverage has decreased as not all data was available.
(k) Data from international booking centres.
(l) It is not possible to compare year on year performance.
(m) Data from only the UK’s booking centre (not fully captured in previous years).
(n) 2005 ﬁgures do not include Absa, and for kWh/m2, kg/FTE and floorspace data excludes Barclays Africa.
58 Barclays PLC
Corporate Responsibility Report 2006
Community investment and ﬁnancial overview data tables
2006 2005 2004
Total community investment £46.5m £39.1m £32.0m
Employees receiving support for fundraising, giving and volunteering 33,419 26,978 25,194
Charities supported by Barclays 8,279 7,515 6,774
Total amount raised by employees through matched fundraising(b) £13.8m £13.8m –
Total number of fundraising events receiving matched funding 11,399 11,644 –
Number of employee volunteers 19,672 18,608 18,946
Number of volunteering grants given(a) 1,317 1,496 1,715
Bank hours given to support employee volunteering activities 75,586 77,413 81,763
Employees’ personal hours given to support Barclays volunteering activities(c) 37,055 – –
Amount given by employees through payroll giving (UK and South Africa)(d) £1.08m £1.05m £0.9m
Amount matched (UK and South Africa)(b)(d) £578,000 £517,000 £463,000
Number of people taking part in payroll giving (UK and South Africa)(d) 9,549 8,662 9,098
(a) This is the ﬁrst year we have been able to collect accurate global data. 2004 data is UK only.
(b) Matching from Barclays or Absa.
(c) Data ﬁrst captured in 2006.
(d) Includes Absa data for ﬁrst time.
Community investment by region (£)
2006 2005 2004
UK 39,589,000 35,259,000 29,500,000
Europe 989,000 882,000 375,000
Africa 4,430,000 1,696,000 1,507,000
USA/Canada 1,153,000 1,115,000 490,000
Asia Paciﬁc 316,000 139,000 94,000
South America 16,000 19,000 14,000
Extracts from Barclays PLC consolidated income statement
2006(a) 2005(a) change
£m £m %
Total income net of insurance claims 21,595 17,333 25
Operating expenses 12,674 10,527 20
Of these operating expenses:
Employees – staff costs, including social security costs 8,169 6,318 29
Administrative expenses 3,980 3,443 16
Community investment 47 39 19
Taxes paid to governments 1,941 1,439 35
Dividends paid to shareholders 1,973 1,687 17
Dividend per share 31p 26.6p 17
Proﬁt attributable to equity holders of the parent 4,571 3,447 33
Post-tax return on average shareholders’ equity 25% 21% –
(a) Figures reported according to International Financial Reporting Standards (IFRS).
Further information on Barclays ﬁnancial performance is available in the Annual Report 2006.
Corporate Responsibility Report 2006 59
Human resources data tables
Barclays – an international picture
Global employment statistics
FTE 122,600 113,300
Total employee headcount 133,529 126,000
Percentage of female employees 60.6% 61.9%
Percentage of female senior executives 12.2% n/a
Percentage of female senior managers 20.8% n/a
Percentage working part time 13.6% 15.4%
Turnover rate 16.9% 17.8%
Resignation rate 10.9% 10.9%
Sickness absence rate 3.6% n/a
FTE by world region
UK 62,530 60,103
Africa & Middle East 44,326 40,134
Continental Europe 8,100 7,616
Americas 4,905 3,916
Asia Paciﬁc 2,739 1,531
Total 122,600 113,300
n/a = Not available.
Barclays UK employees
2006 2005 2004 2003
UK employment statistics
Total employee headcount 69,023 66,566 66,663 65,234
Average length of service (years) 9.8 10.2 10.5 11.0
Percentage working part time 21.8% 23.7% 24.6% 25.1%
Sickness absence rate 4.0% 4.2% 4.4% 5.0%
Turnover rate 19.0% 20.0% 19.3% 20.0%
Resignation rate 12.0% 11.5% 11.8% 12.0%
Women in Barclays
Percentage of all employees 61.0% 62.2% 63.4% 64.0%
Percentage of management grades 33.0% 30.9% 30.5% 29.4%
Percentage of senior executives 12.9% 10.9% 10.5% 11.4%
Ethnic minorities in Barclays
Percentage of all employees 12.7% 11.3% 10.5% 9.0%
Percentage of management grades 8.1% 7.1% 7.0% 6.3%
Percentage of senior executives 6.1% 3.6% 3.3% 3.7%
Disabled employees in Barclays
Percentage of all employees 3.8% 3.4% 3.2% 3.0%
Employees aged under 25 17.4% 17.1% 17.5% 16.0%
Employees aged 25-29 15.9% 15.0% 13.9% 12.9%
Employees aged 30-49 56.0% 57.3% 58.6% 61.0%
Employees aged 50+ 10.7% 10.5% 10.0% 10.1%
Barclays Bank UK Retirement Fund active members 55,558 56,608 60,837 62,761
Current pensioners 43,754 42,258 40,926 39,296
(a) All global headcount and FTE numbers relate to direct employees therefore excluding agency staff and contractors.
(b) All employee statistics relate to Barclays PLC UK excluding BGI – Barclays Global Investors (approx 800 UK employees).
(c) All data as at 31st December 2006 except pensions data which is as at 30th September 2006.
(d) Percentage of disabled employees is derived using responses to the GRCB and Central Support Employee Opinion Survey, 84% of the UK population.
(e) Sickness absence percentage excludes Barclays Capital population.
(f ) UK historical data has been restated to include Barclays Capital and therefore will differ from previously reported ﬁgures.
60 Barclays PLC
Corporate Responsibility Report 2006
External assurance and commentary
Barclays has commissioned The Corporate recommendations made by stakeholders and services play and how Barclays can
Citizenship Company to provide it with about last year’s report. It focuses on support customers to manage their own
external assurance and commentary on its material issues, including responsible climate changing emissions.
Corporate Responsibility Report 2006. lending, ﬁnancial inclusion, international
Finally, this current report has presented a
Barclays management has prepared the expansion and climate change.
more complete understanding of Barclays
report and is responsible for its contents.
Barclays has strengthened reporting of its impacts on society, including a section on
Our objectives were to review its contents
management of corporate responsibility. some economic impacts. This could be
and presentation, to conduct selected
It has included information about the strengthened with an explanation of
checks to underlying records and other
business case for corporate responsibility, Barclays role in the international banking
evidence, and to provide this statement for
its governance framework, its engagement system, exploring the positive and potential
which we have sole responsibility.
with stakeholders and the distribution of negative impacts of flows of capital around
The full statement of our external assurance economic value to them. the world, and ultimately therefore, how a
and commentary is available at global bank like Barclays contributes to the
In seeking to present a report that is
www.barclays.com/detailedassurance goal of sustainable development.
material, complete and responsive, Barclays
which includes details about The Corporate
has addressed recommendations we made
Citizenship Company, our relationship with The Corporate Citizenship Company
in our commentary last year. Going forward,
Barclays and the assurance process we have www.corporate-citizenship.com
we would like to see fuller reporting in
adopted. This statement presents our 22nd March 2007
particular on: efforts to improve customer
service in the UK; further developments in
its work with suppliers; and greater details
about how it seeks to influence government
In our opinion, the report provides a fair and
policy in its markets through lobbying and
balanced representation of the material
trade association membership.
aspects of Barclays performance for the
2006 reporting period. We have examined
the processes Barclays has in place for
Building on progress made, we believe
identifying, understanding, managing and
the next challenge is for future reports to
responding to its corporate responsibility
present a broader picture of the bank’s
issues. Where we believe signiﬁcant gaps in
complete impacts, extending in-depth
performance data and stakeholder views on
reporting to all business divisions and
material issues exist, they are identiﬁed
addressing areas where Barclays has
indirect impacts and influence rather
In forming our opinion and making our than control.
comments, we have based our work on the
The report currently focuses on retail
international assurance standard AA1000
banking and issues of concern to personal
customers. Together, UK Banking,
considering materiality, completeness and
Barclaycard and International Retail and
responsiveness. We have also had regard to
Commercial Banking account for roughly
the reporting principles judged essential by
half of Group pre-tax proﬁts. Of these
the June 2002 GRI sustainability reporting
divisions, however, a third of proﬁts come
guidelines, in accordance with which
from UK Business Banking. Future reports
Barclays has produced this report.
should address in greater detail the impacts
and corporate responsibility-related issues
of business banking.
A corporate responsibility report should
explain how a company impacts on society, Similarly Barclays Global Investors has
looking at all the important economic, $1.8 trillion in assets under management,
social and environmental concerns of its held on behalf of clients who typically seek
stakeholders. It should show how crucial to maximise their returns. Future reports
decisions are made and differing interests should discuss Barclays management role
are balanced. Honest about shortcomings, and how the bank engages with clients
it should demonstrate how the organisation to advance the goal of sustainable
is responsive, by listening, learning and development.
This year’s report has extended reporting on
On this basis, we believe Barclays eighth climate change, focusing on how Barclays
corporate responsibility report reflects manages its own operations and mitigates
another step forwards in the bank’s its direct impacts. The challenge looking
corporate responsibility reporting. It ahead is to consider the full climate change
responds to many of the comments and ‘footprint’, especially the role that products
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