BARCLAYS 07

SUSTAINABILITY REVIEW

SUSTAINABILITY REVIEW 2007

For Barclays this 2007 marks an important shift from corporate responsibility to
sustainability. It is the first time we have decided to report this way, and it
signifies far more than a mere change of name.
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Barclays: a sustainable bank

A sustainable bank marries its own interests in growing with the needs of its
customers . That way it thrives and builds loyalty and confidence.
More
Developing new products and services
Customer service
Broadening our reach
becoming more inclusive
responsible lending
investment management
risk management

Barclays: a responsible global citizen

When we consider sustainability and being a responsible global citizen, we mean
more than making philantropic donations to the communities in which we operate.
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The environment
supply chain
Human rights
Barclays as an inclusive employer
Barclays int he community

CEO Introduction
Group Chief Executive John Varley introduces our Sustainability Review

18%
Highlights
Financial and operational highlights of our performance across the Group
GRI tables
This Review was written taking account of the AA1000 standard and GRI reporting
guidelines
Commitments
Our targets for the future and progress on our 2007 commitments

For Barclays, there are two strands to sustainablity: being a sustainable bank and
a responsible global citizen
Being a sustainable bank means providing enduring returns for our shareholders, and
the best possible services for our customers building long-term relationships with
our stakeholders. Being a responsible global citizen means more than making
philanthropic donations, it includes our duty to manage the wider social and
environmental impact of what we do, and our obligations as a reponsible employer.
As one of the world's leading banks, with 135,000 employees in more than 50
countries, Barclays plays a significant role, from working with governments on
major infrastructure projects to bringing mainstream banking to customers in
emerging markets. This online Sustainability Review explains our progress on
sustainability in 2007: the strong stories we have to tell, the areas where we
still have work to do and our ambitions for the future.
?4.69bn
Tax paid to UK and non-UK tax authorities.
CEO introduction
Group Chief Executive John Varley explains the shift from corporate responsibility
to sustainability in 2007
Our governance framework
Responsibility for our sustainability strategy rests with Barclays Group Executive
Committee, overseen by the Board
Stakeholder engagement
We engage with a wide range of stakeholders in the many markets where we operate
Awards and recognition
Barclays gained many awards in 2007 for our progress on sustainability issues
FTSE43ood
Policy positions
Barclays has robust Group-wide policies on important sustainability issues which
guide our employees' activities
Economic impact
As a large global company we have a significant economic impact
Scope of the Review
The Review covers all our Business Units in the markets in which we operate. We
provide details about the strategic approach we have adopted on sustainability
across our businesses and then provide case studies and key performance indicators
to highlight what this means in practice. The Review largely covers developments in
2007, however in some areas it has been necessary to provide information outside
the reporting year, in order to set information in context. The Review is intended
to provide a snapshot of our work in 2007 and benefits from the comments we have
received from Corporate Citizenship, our external independent assurance provider.
More information on our approach to sustainability and updates on our work will be
available throughout the year on the other pages on our website, however the
information in the Review will not change. We are determined to have a frank and
ongoing dialogue with our many stakeholders, and this Review should be used
together with the regularly updated information on our website to understand our
commitment to embedding sustainability in our businesses.
Introduction by Group Chief Executive John Varley
Corporate Social Responsibility (CSR) has been widely adopted as part of the
strategic agenda of companies around the world. And it has become an important part
of our life at Barclays.
In this, our eighth such report, we are developing our CSR ambitions under the
strapline of 'sustainability'. That's the way we like to think about responsible
corporate citizenship and it is the way that, in the future, we will report on the
progress of our responsible banking across Barclays.
What do we mean by sustainability? Two things. First, we strive for sustainable
relationships. That means seeking to ensure that, in the way that we serve our
customers and clients, our long-term values of innovation, trust, and putting
customers first are observable in how we behave.
Second, sustainability includes but expands the idea of being a responsible global
citizen. Banks are an indispensable part of a productive economy and a healthy
society. They facilitate risk taking and entrepreneurship, and they help those they
serve achieve their goals both are fundamental ingredients of sustainable economic
growth and progression. Our corporate citizenship should not be confined to the
making of philanthropic donations. It must include our obligations as a responsible
employer, and our duty to manage the wider social and environmental impact of what
we do.
We feel that 'sustainability' better captures these responsibilities and applying
the term to our activities will keep us mindful of the centrality and durability of
these commitments to our business and our brand.
It is very important to me that we can track how we are doing. And that we are
candid in our self-assessment each year. We want our stakeholders to know that we
take these matters seriously, in the certainty that they will judge us just as we
judge ourselves, by what we do and not by what we say. As pleased as I am by the
progress we report in this Review, I am very conscious of our need to hold
ourselves to a requirement of continuous improvement. Barclays is not yet where I
want it to be.
The format of our reporting has changed this year, and I wanted to explain why. We
are committed as a Group to global carbon neutrality in 2009, and we set ourselves
tough standards to reduce our waste and to increase our recycling. As a symbol of
this commitment, for the first time this year more of our reporting is online than
in printed form.
John Varley Group Chief Executive
Economic impact
The support we offer as a bank helps our business and retail customers to grow and
develop. Our investment products across all our Business Units help businesses and
retail customers to develop and meet their long-term needs. Our ability to provide
finance helps business to start and expand and our credit offerings to retail
customers helps them to buy new property and to finance other needs. By doing what
we do well as a bank, we can bring tangible benefits to the markets in which we
operate. However, quantifying these benefits is not easy, especially when
considering the multiplier effect the wider economic impact of our employees and
customers.
As a large global company our presence in the markets in which we operate also
provides benefits to shareholders through dividends, our suppliers through the work
we give them, our employees and their families through salaries and benefits, and
governments through tax revenue.
We paid ?2.25billion in dividends to our shareholders in 2007. These shareholders
include many of the major pension funds, mutual funds and insurance companies. Our
success benefits millions of individuals around the world who rely on their
pensions and investments for their income. In 2007, 7% of shares were held by
individual investors.
Taking into account our share price, as well as the dividends paid, Barclays
delivered a total shareholder return of 20.4% in 2007. This put us 8th in our
chosen peer group for the period from 1 January 2004 to 31 December 2007
We paid ?7bn in employee salaries and incentives in 2007. We also contributed ?301m
to employee pension plans and retirement benefits
We also paid nearly ?4.7bn in tax in the countries in which we operate, including
more than ?2.1bn in the UK
We have in excess of 25,000 suppliers with 10,000 making up 90% of our third-party
spend. In 2007, our annual global sourcing spend was ?7bn
In South Africa, we take supplier decisions that are intended to improve the
economic prospects of black South Africans. In 2007, Absa was able to significantly
improve the percentage spend with Black Economic Empowerment (BEE) companies
throughout 2007. The Financial Sector Charter target for Absa is to have 50%
(weighted spend) of its qualifying third-party spend going to BEE-rated suppliers
by 2008. Absa has significantly exceeded that target a full year ahead of schedule,
with 62% (weighted spend) of its qualifying procurement spend going to BEE
companies during 2007.
In 2008, we intend to commission a research project to map the economic impact of
our presence in the emerging markets. We will use this research to consider how we
can better serve the communities in which we operate.
Net UK Net non-UK
tax paid tax paid Total
?m ?m ?m
Corporate income tax(1) 71 1,512 1,583
Employee related tax (e.g. PAYE and NIC) 1,418 736 2,154
Indirect taxes (e.g. VAT) 321 285 606
Other taxes(2) 323 25 348
Total 2,133 2,558 4,691
(1) The total global corporate income tax paid of ?1,583m will be the amount shown
in the cash flow statement in the Group's annual report. The ?71m paid to the UK
tax authorities is the net of ?513m paid less ?442m reclaimed for overpayments in
earlier years.
(2) This is mainly income tax withheld on customers' UK interest income (being ?
249m of the total ?348m). Some non-UK amounts have yet to be obtained.

Our governance framework

Governance
Corporate responsibility is firmly established as one of the Barclays Principal
Risks, which means that it is managed within a robust framework of internal
control, governance, and risk management processes.
Responsibility for Barclays Sustainability Strategy rests with the Group Executive
Committee, with oversight by the Board. The Group Chief Executive has primary
responsibility for embedding sustainability throughout Barclays, supported by the
Group Executive Committee. This includes ensuring there are effective processes for
identifying and monitoring all the business risks or commercial opportunities that
have a significant social, environmental or ethical dimension.
The Brand and Reputation Committee is a sub-committee of the Group Executive
Committee, and is chaired by Sir Nigel Rudd, Deputy Chairman and a Non-Executive
Director on the Board. This committee's role is to identify and manage issues that
could have a significant impact on Barclays reputation. It met six times during
2007 and dealt with issues ranging from Barclays presence in Zimbabwe to new areas
of commodities business and the fee structure for Barclaycard.
The Community Partnerships Committee, chaired by Group Vice Chairman Gary Hoffman,
sets the policy and provides governance for our global community investment
programmes, and the Environmental Steering Group gives direction and governance to
our environmental and climate change strategies.
The Treating Customers Fairly (TCF) Forum, chaired by Group Vice Chairman Gary
Hoffman, monitors progress across all retail and wholesale Business Units, UK and
non-UK, to embed TCF principles in our relationships with customers. This wider
approach to TCF goes significantly beyond our regulatory requirements.
Our global headquarters is at 1 Churchill Place, Canary Wharf, London.
The Barclays Board
The Board Joined as director
Marcus Agius Group Chairman 2006
John Varley Group Chief Executive 1998
Robert E Diamond Jr President, Barclays PLC and Chief Executive, Investment
Banking and Investment Management 2005
Gary Hoffman Group Vice Chairman 2004
Chris Lucas Group Finance Director 2007
Frits Seegers Chief Executive, Global Retail and Commercial Banking2006
David Booth Non-executive Director 2007
Sir Richard Broadbent Senior Independent Director 2003
Leigh Clifford AO Non-executive Director 2004
Fulvio Conti Non-executive Director 2006
Professor Dame Sandra Dawson Non-executive Director 2003
Sir Andrew Likierman Non-executive Director 2004
Sir Michael Rake Non-executive Director 2008
Sir Nigel Rudd DL Deputy Chairman 1996
Stephen Russell Non-executive Director 2000
Sir John Sunderland Non-executive Director 2005
Patience Wheatcroft Non-executive Director 2008
Executive Committee Date appointed
John Varley Group Chief Executive 1996
Robert E Diamond Jr President, Barclays PLC and Chief Executive, Investment
Banking and Investment Management 1997
Paul Idzik Chief Operating Officer 2004
Chris Lucas Group Finance Director 2007
Frits Seegers Chief Executive, Global Retail and Commercial Banking2006
Other officers Date appointed
Jonathan Britton Financial Controller 2006
Lawrence Dickinson Company Secretary 2002
Patrick Gonsalves Joint Secretary, Barclays Bank PLC 2002
Mark Harding General Counsel 2003
Robert Le Blanc Risk Director 2004
Our membership of external organisations related to sustainability
These include:
Business Leaders Initiative Human Rights (BLIHR) a programme to help lead and
develop the corporate response to human rights.
United Nations Environment Programme Finance Initiative (UNEP FI) a global
partnership between the United Nations Environment Programme and the finance
sector.
The Carbon Disclosure Project an independent not-for-profit organisation
established to understand the business implications of climate change.
The Wolfsberg Group an association of 11 global banks which seeks to develop
standards to tackle financial crime.
FTSE4Good measures the performance of companies against globally recognised
corporate responsibility standards.
The Dow Jones Sustainability Index global indices tracking the financial
performance of the leading sustainability driven companies worldwide.
The CBI Climate Change Task Force Marcus Agius, our Group Chairman, sits on the
Task Force with 17 other Chairmen and Chief Executives to assess how business
should tackle climate change.
The Climate Change Group an independent, non-profit organisation dedicated to
advancing business and government leadership on climate change.
Investor relations Institutional investors
The Board's priorities include communicating with shareholders, to keep them well
informed about the company's prospects and strategy, and staying abreast of the
views of major shareholders.
To achieve this, executive directors and senior executives hold group and one-to-
one meetings with major investors. Analyst research notes are distributed to
directors and our corporate brokers provide annual feedback to the Board.
The Investor Relations team organises roadshows, seminars, conferences,
presentations and other activities that enable the directors to interact with
investors.
Prior to each Annual General Meeting (AGM), the Group Chairman, Senior Independent
Director and Company Secretary have a series of meetings with the corporate
governance representatives of our major institutional shareholders.
Private shareholders
A change in the law now allows us to communicate electronically with our
shareholders, unless they advise us that they prefer to receive paper documents.
We have given shareholders a choice of how to receive future shareholder
communications and those that receive documents electronically will have access to
shareholder documents as soon as they are published. These new arrangements will
enable us to use less paper, which benefits the environment and lowers distribution
costs for the Group.
This year, we will continue to post the Annual Review, Notice of Shareholder
Meetings and proxy forms to all shareholders.
We encourage shareholders to hold their shares in Barclays Sharestore, where shares
are held electronically in a cost-effective way.
Our e-view service enables shareholders to receive their shareholder documents
electronically. It also gives shareholders immediate access to information relating
to their personal shareholding and dividend history. Participants can also change
their details and dividend mandates online and receive dividend tax vouchers
electronically.
How remuneration is linked to sustainability performance
Sustainability objectives are included in the performance contracts of employees
with specific responsibilities in this area. This would include Group Vice Chairman
Gary Hoffman, and employees in Public Policy & Sustainability, Environmental Risk,
Crime Prevention, Human Resources, and members of the Brand and Reputation
Committee, among others.
In addition, Barclays employees' annual performance assessment is based equally on
the targets they have achieved, and how far their behaviour has demonstrated our
Guiding Principles. In other words performance is based not only on what they have
done but how they did it.

Stakeholder engagement
As a large business operating in more than 50 countries we have a wide range of
stakeholders with whom we engage. This Review shows how we engage with these
stakeholders in the many different markets in which we operate.
There are, however, some key stakeholders with whom we engage on an ongoing basis.
Customers
Our most important stakeholders are our customers. We hold regular surveys and
focus groups to hear their views on how we can improve our products and services to
better meet their needs.
Consumer Groups
These groups exist in some but not all of our markets. We engage with them in order
to understand their views on any practical improvements we can make to our products
and services and on any propositions we want to bring to market. In the UK in
particular, we have an ongoing dialogue with consumer groups.
In 2006, our Consumer Champion team set up a consumer roundtable to discuss our
work with consumer organisations. We used the feedback to make changes to our
products and services in the UK
Barclaycard UK held a consumer roundtable to help develop an enhanced consumer
credit guidance section for its website.
NGOs
Non-governmental organisations (NGOs) have an important role to play; working with
government and business to highlight issues of concern in a range of different
areas. We get approached by NGOs about the direct and indirect effects of our
business. We engage with NGOs on a wide range of issues and where possible enter
into a dialogue. We welcome their feedback but in some instances their concerns may
be about the actions of our clients rather than our actions.
Colleagues
We have an ongoing dialogue with our colleagues through networks and union
representation. We also gain valuable feedback through the employee opinion surveys
we conduct. Members of the Executive Committee, including Group Chief Executive
John Varley, and other senior executives hold regular Colleague Presentations or
Town Halls during which issues of interest, such as our financial results, are
discussed with groups of employees.
Governments and political parties
Banks play a vital role in the financial system and offer essential services to
business and personal customers. Governments and public bodies have a legitimate
interest in regulating and monitoring the banking sector. However, it is important
to the health of the financial sector and wider economy that regulation and
government influence is both effective and appropriate. To ensure this there must
be an ongoing constructive dialogue between the banking industry and political
stakeholders as well as regular contact with the regulators themselves. Barclays
aims to provide candid input into government policy making and to provide policy
makers with evidence to help in the decisions they have to make.
Part of being a responsible global citizen is offering expertise and advice to
governments on wider social issues. Barclays is keen to assist and in 2007 engaged
on issues as varied as reforms to the banking system in the UK, climate change and
the Millennium Development Goals. Our role as a large bank in many developing
countries means we also have to consider wider development issues as part of our
political engagement.
The Group's businesses and earnings can be affected by the fiscal or other policies
and other actions of various governmental and regulatory authorities in the UK, the
European Union, USA, South Africa and elsewhere. Areas where changes could have an
impact include:
The monetary, interest rate and other policies of central banks and regulatory
authorities
General changes in government or regulatory policy that may significantly influence
investor decisions in particular markets in which the Group operates
We engage with governments in the markets in which we operate.
General changes in the regulatory requirements, for example, prudential rules
relating to the capital adequacy framework and rules designed to promote financial
stability and increase depositor protection
Changes and rules in competition and pricing environments
Changes to conduct of business rules and regulations
Further developments in the financial reporting environment
Expropriation, nationalisation, confiscation of assets and changes in legislation
relating to foreign ownership
Other unfavourable political, military or diplomatic developments producing social
instability or legal uncertainty which in turn may affect demand for the Group's
products and services.
Recent market instability has led to heightened interest from political
stakeholders and our senior leaders spent considerably more time in 2007 in
dialogue with ministers. In the UK, EU and USA particularly, we engaged with policy
makers on a regular basis to provide them with an update on market developments,
input to their reform packages and insight into the impact of policies as they
developed. We sought to promote policies that would maintain market confidence,
economic stability and protect the interests of our customers and shareholders.
We have three Public Policy teams that co-ordinate our work with governments in the
markets in which we operate. The three teams in Group Centre, GRCB and IBIM have a
global remit. Our teams provide input into government policy consultations
including liaising with politicians, civil servants and government ministers. We
also speak to international bodies such as the European Union, various United
Nations organisations, the World Trade Organisation and the World Bank.
The Group did not give any money for political purposes in the UK nor did it make
any donations to EU political organisations or incur any EU political expenditure
during the year. Absa Group Limited, in which the Group acquired a majority stake
in 2005, made donations totalling ?170,142 in 2007 (2006: ?212,729) in accordance
with its policy of making political donations to the major South African political
parties to support the development of democracy in South Africa. The Group made no
other political donations in 2007.
We are members of a number of national and international trade bodies and
associations which provide policy makers with feedback and evidence. Examples of
our main trade body membership include:
The British Bankers Association
The Council of Mortgage Lenders
Confederation of British Industry
The Payments Council
The American Banking Association
The South African Banking Association
Regulatory compliance risk
Regulatory compliance risk arises from a failure or inability to comply fully with
the laws, regulations or codes applicable specifically to the financial services
industry. Non-compliance could lead to fines, public reprimands, damage to
reputation, enforced suspension of operations or, in extreme cases, withdrawal of
authorisations to operate.
We engage with the regulatory authorities in the markets in which we operate. This
interaction gives us an opportunity to receive feedback on our own practice and
also to comment and consult on the general regulatory environment in the markets in
which we operate.
Think tanks
We develop relationships with think tanks where we believe they can add value to
the policy development process. During 2007, we sponsored a project led by the
Institute of Public Policy Research on personal carbon trading in the UK. The
project looks at the practicality of personal carbon trading. We have no set views
to date but want to use this valuable research to guide our views.
Investors
We set out details about our engagement with investors in our Annual Report, at our
AGM and in ongoing dialogue throughout the year.

Awards

Carbon
Markets Association
Best Trading Company for tlie secord yesrunning in tlie Carbon Markets Awards
FORTUNE
1 Suit finable Banking
Chairman's Award at the I VIFC Susta lable Finarce Awards for Leadership ri
Sustalnab e Project I iraice
COMPANIES THAT COUNT

FSE4Good
ABSA
Barclays gained many awards in 2007 for our progress on sustainability issues. Some
of these are set
out below:
Sustainable bank
Barclays, under the Woolwich brand, was named the top mortgage lender for customer
empathy in a league table compiled by UK customer consultancy Harding & York.
Highly commended in the Business in the Community Marketplace Impact Award 2007 for
our microfinance work in Ghana.
Absa was rated number one financial services company for contribution to
development by Trialogue.
Barclays Commercial Bank was awarded 'Best Commercial Mortgage Provider' and 'Best
Leasing & Asset Finance Provider' by Business Moneyfacts.
Barclays Commercial Bank was named Corporate Bank of the Year in the South West
region. The award recognises the combined strength of Barclays corporate and
leveraged finance proposition.
Barclays Commercial Bank was voted Business Bank of the Year at the UK's
Accountancy Age Awards in recognition of its dedication to clients.
Barclays Commercial Bank was named Debt Provider of the Year at the Deals of the
Year Awards organised by EN magazine.
Call Centre Focus magazine European Call Centre of the Year 2007.
Best Customer Relationship Centre 2007 award in Portugal from the Portuguese Call
Centre Association.
Barclaycard OnePulse was recognised as one of the world's most innovative banking
cards in the Oscard international awards for the credit card industry.
Barclays Head of Environmental Risk Management, Chris Bray, received an accolade
for his lifetime achievements from the United Nations Environment Programme Finance
Initiative. The award honoured Chris's commitment to sharing his expertise in
environmental risk management with financial institutions globally.
Barclays Kenya was named East Africa's Most Respected Company in the financial
services sector in a PricewaterhouseCoopers survey.
Absa Islamic Bank was recognised as the best Islamic bank offering within a
conventional bank in World Finance magazine's first global awards.
Deanna Oppenheimer, Chief Executive UK Retail Banking at Barclays, was named
Britain's Business Communicator of the Year by the British Association of
Communicators in Business (CiB).
Barclays was awarded Anti-Fraud Strategy of the Year at the Financial Sector
Technology Awards which recognise the best use of new technologies to improve
business processes.
Barclays under the Woolwich mortgage brand was named Best First Time Buyer at the
Your Mortgage awards.
Named Best Small Business Bank Account by Start Your Business magazine.
Responsible global citizen
Business in the Community Environmental Leadership Award 2007.
Leading bank in the Dow Jones Sustainability Index for environmental reporting.
Intelligent Giving website recorded Barclays as one of the top three UK companies
supporting employees who give time and money to charity.
Absa was rated one of South Africa's top five employers in the Best Employers in
South Africa 2007 survey.
Barclays was recognised for its best practice industrial relations in a Union
Network International survey, which assessed the approach of 25 financial companies
globally.
Barclays Spain's employee community programme was ranked number two in Spain by
Fundacion Empresa y Sociedad.
Our partnership with Crisis won a Business in the Community Big Tick award.
Business in the Community's BUPA Healthy Communities Award for Spaces for Sports.
Hollis Sponsorship Award for Spaces for Sports 2007.
Sport England's Community Programme of the Year Award.
Charities Aid Foundation Community Investment Awards for 'most effective
stakeholder engagement' and 'most effective company giving'.
Barclays Commercial Bank's initiative to promote the health, safety and well-being
of its colleagues was honoured at the UK's National Business Awards.
Barclays Zimbabwe won the Harare Chamber of Commerce award for the Best HIV/AIDS
Programme.
Barclays was recognised by The Times newspaper as one of the top places in the UK
where women want to work.
Barclays was ranked 8th in the 2007 FTSE4Good Environmental leaders in Europe 40
index.

Policy positions
Bribery and corruption
Barclays operates globally and believes that best practice governance, controls and
compliance are essential for maximising shareholder value. In order to achieve
this, it must act with the highest standards of integrity and honesty in all it
does, to give customers confidence when entrusting their business to Barclays.
Barclays recognises that bribery and corruption have an adverse affect on
communities wherever they occur. Corruption can undermine the rule of law,
democratic processes and basic human freedoms, impoverishing states and distorting
free trade and competition. Corruption is often associated with organised crime,
money laundering and, sometimes, even the financing of terrorism.
Our policy reflects the statutory requirements applicable in the UK as derived from
the United Nations (UN) and Organisation for Economic Co-operation and Development
(OECD) conventions on corruption. However, all Group offices must comply with this
policy, unless there is a conflict with local legislation. Barclays offices outside
the UK must comply with their own local legislation in respect of anti-bribery and
corruption (e.g. in the US, the Foreign Corrupt Practices Act, which also has
extraterritorial reach and implications for all Group offices).
We take our responsibilities seriously and expect all our employees, wherever they
are based, to meet the requirements of our policy. Any breach of the Group's policy
on bribery and corruption by any employee will be considered as grounds for
disciplinary action, which may include dismissal.
Anti-money laundering
Our anti-money laundering policy has been designed to be consistent with the UK
2007 Money Laundering Regulations, legislation, Financial Services Authority (FSA)
Rules, Joint Money Laundering Steering Group (JMLSG) Guidance Notes and
recommendations issued by the Financial Action Task Force on money laundering and
terrorist financing.
Our employees must comply with the highest standards of anti-money laundering and
anti-terrorist financing practice in all jurisdictions in which we operate and co-
operate with the authorities wherever possible and practicable, paying due regard
to customer confidentiality and data protection obligations.
All businesses must follow the UK Joint Money Laundering Steering Group Guidance
when assessing their risks and designing their risk-based systems and controls
unless prohibited by local legislation.
We provide appropriate employee training to ensure colleagues can meet these
requirements.
Discipline, Capability and Grievance (DC &G) Global Standard
This Global Standard establishes a set of minimum standards for dealing fairly and
without discrimination with disciplinary, capability and grievance issues of all
Barclays Group employees.
Harassment
It is in everyone's interest that within Barclays we promote respect and equal
opportunity for all. While we make every effort to achieve this very important
goal, our workplace harassment policy recognises that inappropriate behaviour can
sometimes happen and aims to deal with it in a serious, sensitive and confidential
manner and to resolve it as quickly as possible.
Health and Safety (H&S) Global Standard
This Global Standard establishes a set of minimum standards for H&S Management
across the Barclays Group. Barclays Group businesses must ensure the health, safety
and welfare of employees and, so far as is reasonably practicable, provide and
maintain safe working conditions. They must also meet this responsibility towards
all persons on Barclays premises, such as customers, contractors and visitors.
Conformance with these standards and policies are measured by the business and
monitored by relevant governance and control committees.
Barclays colleagues sign up to our policies each year by completing the Your
Responsibilities booklet or our online version
Redundancies
In the UK, we have a landmark agreement with Unite on offshoring and site closures
which offers early notification of redundancy, additional time for employees to
find new roles either through internal redeployment or outplacement and a ?2,000
re-training grant. Our emphasis is on avoiding compulsory redundancies where
possible but in the event these do occur we have a generous redundancy pay policy.
Whistleblowing
Barclays has a 'Raising Concerns' policy which employees can read on our intranets.
It is also publicised widely across Barclays sites using an annual poster campaign
and other communications.
There is a confidential telephone line and email account for employees to use if
they feel they cannot resolve concerns with their own manager. Employees are
encouraged to raise genuine concerns with the assurance that they will not be
discriminated against in any way.
Financial Sanctions and Prohibition of Business Activity
The Barclays Group Policy for Financial Sanctions and Prohibition of Business
Activity is designed to ensure that all Barclays business areas comply with
applicable financial sanctions in the jurisdictions in which they operate. We
provide appropriate staff training to ensure staff are able to meet these
requirements.
Sudan
Barclays does not engage in business operations in Sudan nor do we deal with the
Sudanese government.
Burma/Myanmar
We have a policy of non-engagement with Burma/Myanmar. However, in May 2008 we
donated ?50,000 to the Red Cross to help support the relief effort in Burma
following Cyclone Nargis.
Group Environmental Management
Our policy was updated in April 2008 and applies to all our businesses. The policy
is sponsored by the Group Operating Committee and the policy owner is the Group
Head of Environmental Sustainability. The policy places requirements on Business
Units to meet a number of essential Group-wide requirements including managing
environmental impacts via our Environmental Management Systems, integrating
environmental considerations into business decisions and managing the indirect
impacts in our supply chain.

In this section of our Sustainability Review 2007, we provide brief information

about Barclays. Further details can be found elsewhere on our website or in our
latest Annual Report.
Business strategy
Our strategy is to achieve superior growth through time by diversifying our profit
base
Our customers
Barclays Group has over 30 million customers in more than 50 countries around the
world
11.3m
UK current accounts.
Where we operate
Our map reflects the global activity that we are reporting in this Sustainability
Review
Highlights
Highlights of our financial and operational performance across the Group in 2007

Products and services

We have nine separate Business Units which work together to combine world-class
capabilities

Business strategy
Our strategy is to achieve superior growth through time by diversifying our profit
base. To achieve successful growth we must be relevant to our customers.
By anticipating our customers' needs across the Group, we seek to align the sources
of growth in the financial services industry with Barclays brand, capability and
physical footprint.
Barclays is made up of two major businesses: Global Retail and Commercial Banking
(GRCB) and Investment Banking and Investment Management (IBIM). Frits Seegers is
Chief Executive of GRCB, which comprises UK Retail Banking, Barclays Commercial
Bank, Barclaycard, GRCB Western Europe, GRCB Emerging Markets and Absa. Robert E
Diamond Jr is President of Barclays PLC and CEO of Investment Banking and
Investment Management, which spans Barclays Capital, Barclays Global Investors and
Barclays Wealth.
The structure of the Group is designed to enable us to be well positioned for the
significant growth which we anticipate in the global financial services industry
and to help us serve customers and clients well.
We continued to invest heavily across the Group in 2007, increasing the number of
employees who serve customers and clients, and developing our distribution
networks.

Our customers
Barclays Group has more than 30 million customers in more than 50 countries around
the world.
UK Retail Banking serves around 15 million UK customers, including 11.3 million
current account holders, 11.1 million savings account customers and 643,000 Local
Business customers.
Barclays Commercial Bank serves 81,000 larger and medium-sized business customers,
many of whom are long-standing and happy to act as advocates for Barclays among
their peers.
Barclaycard has 10.1 million UK customers and 93,000 retailer/merchant
relationships. It has 8.8 million international cards in issue.
GRCB Western Europe has one million customers in four countries including 17,000
corporate customers and 772,800 current account holders.
GRCB Emerging Markets has two million customers in 14 countries including 15,000
corporate customers and 700,000 current account holders.
Absa has 9.8 million retail customers and 85,000 corporate and business banking
customers.
Barclays Global Investors has 3,000 institutional clients.
Barclays Capital and Barclays Wealth do not report client numbers.
We are expanding at pace in emerging markets such as India.

Where we operate
Operating in more than 50 countries and employing 135,000 people, we move, lend,
invest and protect money for more than 30 million customers and clients worldwide.
Barclays around the world
Angola Cyprus Guernsey Jersey Mozambique Singapore Thailand
Argentina Denmark Hong Kong Kenya Netherlands South Africa UAE
Australia Egypt India Luxembourg Nigeria South Korea Uganda
Botswana Ethiopia Indonesia Malaysia Norway Spain UK
Brazil France Ireland Malta Pakistan Sweden USA
Canada Germany Isle of Man Mauritius Portugal Switzerland Zambia
Cayman Islands Ghana Italy Mexico Rwanda Taiwan Zimbabwe
China Gibraltar Japan Monaco Seychelles Tanzania

Highlights
Barclays PLC is a major global financial services provider engaged in retail and
commercial banking, credit cards, investment banking, wealth management and
investment management.
Operating in more than 50 countries and employing 135,000 people, we move, lend,
invest and protect money for more than 30 million customers and clients worldwide.
With over 300 years of history and expertise in banking, Barclays has nine Business
Units, six within Global Retail and Commercial Banking (GRCB) and three in
Investment Banking and Investment Management (IBIM). In our financial reporting,
results for three of the GRCB businesses (GRCB Western Europe, GRCB Emerging
Markets and Absa) are given under International Retail and Commercial Banking.
Financial highlights
For the year ended 31 December
Income statement 2007 ?m 2006 ?m 2005 ?m
Total income net of insurance claims 23,000 21,595 17,333
Impairment charges and other credit provisions (2,795) (2,154) (1,571)
Operating expenses (13,199) (12,674) (10,527)
Profit before tax 7,076 7,136 5,280
Profit attributable to equity holders of the parent 4,417 4,571 3,447
Economic profit 2,290 2,704 1,752
Basic earnings per share 68.9p 71.9p 54.4p
Diluted earnings per share 66.7p 69.8p 52.6p
Dividend per ordinary share 34.0p 31.0p 26.6p
Return on average shareholders' equity 20.3% 24.7% 21.1%
Tier 1 capital ratio 7.8% 7.7% 7.0%
Profit before tax (?m) Economic profit (?m)
05 06 07 05 06 07
Earnings per share (pence) Dividend per share (pence)
05 06 07 05 06 07
Global Retail and Commercial Banking
UK Retail Banking
Profit before tax
?1,282m
Personal Customers
Home Finance
Local Business
Consumer Lending
Barclays Financial Planning
Contribution to Group profit (a)
Barclays
Commercial Bank
Larger Business
Medium Business
Asset and Sales Finance
Barclaycard
UK Cards and Loans
Barclaycard Business
Barclaycard International
International Retail and Commercial Banking
Absa
GRCB Western Europe
GRCB Emerging Markets
13%
?1,371m?540m ?935m
17% 18% 7%

Investment Banking and Investment Management

Barclays Capital Profit before tax
Rates Credit
Private Equity Absa Capital
Barclays Global Investors
?2,335m ?734m
Index asset management Active asset management iShares
Barclays Wealth
?307m
Private Banking
Offshore Banking
Brokerage
Wealth Structuring
Closed Life Assurance
Contribution to Group profit (a)
31%
10%
4%
Note
(a) Head Office functions and other operations segment has been excluded.
Financial and operating highlights
UK Banking
Delivers banking products and services to 15 million retail customers and 724,000
businesses in the UK.
11.3m 724,000
UK Current accounts Business customers
Barclaycard
Is one of the leading credit card businesses in Europe with an extensive
international presence.
10.1m 8.8m
UK Customers International cards in issue
International Retail and Commercial Banking
Has operations with 13 million clients, in geographies which currently include
Africa, France, Spain, Portugal, Italy, India and the Middle East.
2,349
International distribution points Barclays Capital
The investment banking division, provides corporate, institutional and government
clients with solutions to their financing and risk management needs.
US$441.5bn
Value of debt issued globally Barclays Global Investors
Is one of the world's largest asset managers and a leading provider of investment
management products and services.
US$2.1trillion
Assets under management
Barclays Wealth
Serves high net worth, affluent and intermediary clients worldwide, providing
private banking, asset management, stockbroking, offshore banking, wealth
structuring and financial planning services.
?133bn
Total client assets

Products and services

Barclays Group is made up of nine separate Business Units. These are UK Retail
Banking, Barclays Commercial Bank, Barclaycard, GRCB Western Europe, GRCB Emerging
Markets, Absa, Barclays Capital, Barclays Global Investors and Barclays Wealth.
Business Units provide their own products and services, but also work with each
other to develop products and services which build on or combine world-class
capabilities across the Group.
UK Banking
UK Banking delivers banking solutions to Barclays UK retail and business banking
customers. It offers a range of integrated products and services and access to the
expertise of other Group businesses. Customers are served through a variety of
channels comprising the branch network, automated teller machines, telephone
banking, online banking and relationship managers. UK Banking is managed through
two business areas, UK Retail Banking and Barclays Commercial Bank.
UK Retail Banking
UK Retail Banking comprises Personal Customers, Home Finance, Local Business,
Consumer Lending and Barclays Financial Planning. This cluster of businesses aims
to build broader and deeper relationships with its Personal and Local Business
customers through providing a wide range of products and financial services.
Personal Customers and Home Finance provide access to current account and savings
products, Woolwich-branded mortgages and general insurance. Consumer Lending
provides unsecured loan and protection products, and Barclays Financial Planning
provides investment advice and products. Local Business provides banking services,
including money transmission, to small businesses.
Barclays Commercial Bank
Barclays Commercial Bank provides banking services to organisations with an annual
turnover of more than ?1m. Customers are served via a network of relationship and
industry sector specialists, which provides solutions constructed from a
comprehensive suite of banking products, support, expertise and services, including
specialist asset financing and leasing facilities. Customers are also offered
access to the products and expertise of other businesses in the Barclays Group,
particularly Barclays Capital, Barclaycard and Barclays Wealth.
Barclaycard
Barclaycard is a multi-brand credit card and consumer lending business which also
processes card payments for retailers and merchants, and issues credit and charge
cards to corporate customers and the UK government. It is one of Europe's leading
credit card businesses and has an increasing presence in the USA.
In the UK, Barclaycard comprises Barclaycard UK Cards, Barclaycard Partnerships
(SkyCard, Thomas Cook, Argos and Solution Personal Finance), Barclays Partner
Finance (formerly CFS) and FIRSTPLUS.
Outside the UK, Barclaycard provides credit cards in the USA, Germany, Spain, Italy
and Portugal. In the Nordic region, Barclaycard operates through EnterCard, a joint
venture with Swedbank.
Barclaycard works closely with other parts of the Group, including UK Retail
Banking, Barclays Commercial Bank and other businesses within Global Retail and
Commercial Banking, to leverage their distribution capabilities.
GRCB Western Europe, GRCB Emerging Markets and Absa
GRCB Western Europe, GRCB Emerging Markets and Absa provide banking services to
Barclays personal and corporate customers outside the UK. The products and services
offered to customers are tailored to meet customer needs and the regulatory and
commercial environments within each country. These businesses also work closely
with other parts of the Group to leverage synergies from product and service
propositions.
GRCB Western Europe and GRCB Emerging Markets provide a range of banking services
to retail and corporate customers in Europe and emerging markets, including current
accounts, savings, investments, mortgages and loans. GRCB Western Europe includes
Spain, Italy, France and Portugal. GRCB Emerging Markets includes operations in
Africa, India and the Middle East.
Absa Group Limited, majority-owned by Barclays, is one of South Africa's largest
financial services organisations serving personal, commercial and corporate
customers predominantly in South Africa. Absa serves retail customers through a
variety of distribution channels and offers a full range of banking services
including current and deposit accounts, mortgages, instalment finance, credit
cards, bancassurance products and wealth management services. It also offers
customised business solutions for commercial and large corporate customers.
Barclays Capital
Barclays Capital is a leading global investment bank which provides large
corporate, institutional and government clients with solutions to their financing
and risk management needs.
Barclays Capital services a wide variety of client needs, from capital raising and
managing foreign exchange, interest rate, equity and commodity risks, through to
providing technical advice and expertise. Activities are organised into three
principal areas: Rates, which includes fixed income, foreign exchange, commodities,
emerging markets, money markets, prime services and equity products; Credit, which
includes primary and secondary activities for loans and bonds for investment grade,
high yield and emerging market credit, as well as hybrid capital products, asset-
based finance, mortgage-backed securities, credit derivatives, structured capital
markets and large asset leasing; and Private Equity. Barclays Capital includes Absa
Capital, the investment banking business of Absa. Barclays Capital also works
closely with all other parts of the Barclays Group to leverage synergies from
client relationships and product capabilities.
Barclays Global Investors
Barclays Global Investors (BGI) is one of the world's largest asset managers and a
leading global provider of investment management products and services.
BGI offers structured investment strategies such as indexing, global asset
allocation and risk-controlled active products including hedge funds, and provides
related investment services such as securities lending, cash management and
portfolio transition services. In addition, BGI is the global leader in assets and
products in the exchange-traded funds business, with more than 320 funds for
institutions and individuals trading globally. BGI's investment philosophy is
founded on managing all dimensions of performance: a consistent focus on
controlling risk, return and cost. BGI collaborates with the other Barclays
businesses, particularly Barclays Capital and Barclays Wealth, to develop and
market products and leverage capabilities to better serve the client base.
Barclays Wealth
Barclays Wealth serves high net worth, affluent and intermediary clients worldwide,
providing private banking, asset management, stockbroking, offshore banking, wealth
structuring and financial planning services. It also manages the closed life
assurance activities of Barclays and Woolwich in the UK.
Barclays Wealth provides tailored, regulated, financial planning advice on life,
pensions and investment products and works closely with all other parts of the
Barclays Group to leverage synergies from client relationships and product
capabilities.

We are committed to being carbon neutral globally in 2009 and have set tough
standards to reduce our waste and increase our recycling. We are also stepping up
our efforts to source our goods and services from suppliers that have the highest
standards. We also want to ensure that we uphold human rights, in the projects that
we finance, the communities in which we operate and among our employees.
The environment
Barclays is facing up to climate change, increasing our efforts to reduce our
direct and indirect impacts
Supply chain
Emissions generated by suppliers is key to companies' indirect impact on the
environment
Case studies
The environment
Supply chain
Human rights
An inclusive employer
In the community
Human rights
We represent the financial sector on a number of human rights programmes including
the Business Leaders Initiative
Inclusive employer
It is important for us to find, develop and retain the most talented people
available
In the community
Our business will benefit from contributing to the development and sustainability
of the communities where we operate

The environment
Climate change is one of the biggest challenges confronting the world. We must make
our own contribution to managing this risk and we are stepping up our efforts to
reduce both our direct and indirect impacts on the environment.
Through our climate action strategy, we achieved carbon neutral status in our UK
and European operations for 2007. Our strategy includes reducing CO2 emissions by
improving energy efficiency, buying renewable energy where available, and offering
products and services that help customers tackle their carbon emissions. Throughout
2007, Group Chief Executive John Varley and Group Chairman Marcus Agius have
contributed to the climate change debate.
One of 2007's most visible symbols of our commitment to reduce our carbon footprint
is the new Absa Capital building in South Africa. Andrew Flett, Global Head of
Environmental Sustainability, says: "The design and planning for this building has
been a genuine Group-wide effort involving the Capital Projects, Engineering and
Environmental teams, and it will set a new standard for sustainable building for
the Group." Measures such as rainwater harvesting, solar heating, natural cooling,
lighting sensors and recycled materials, will make the complex at Sandton Court,
Johannesburg 34.2% more energy-efficient than a traditional office.
We are one of the biggest providers of finance to the renewable energy market.
We've also developed a number of products and services to help clients in the
institutional, commercial and retail markets manage their energy use and reduce
their carbon footprints.
New environmental products
In July, we launched Barclaycard Breathe, a credit card that incentivises consumers
to buy greener products and donates half its profits to carbon reduction projects.
We guaranteed that in the first year we will make a minimum donation of ?1million
to environmental projects. Our corporate card equivalent is Barclaycard Business
Sustain, originally developed for consultancy Deloitte, but since November
available to all our corporate customers. It's the first business card designed to
help companies offset the carbon emissions of business air travel.
We're also making the carbon trading and risk management expertise of Barclays
Capital available to our larger commercial clients. Barclays Capital is a leader in
the EU emissions trading market, trading more than 600 million tonnes since 2005.
We're now working with the UK government on improving Africa's access to global
carbon finance and sitting on an expert government group on the future of London's
carbon market. We are also investing in projects that reduce carbon emissions
globally.
1,352
tonnes of CO2 a year will be saved at Absa Capital's new building in Johannesburg.
Barclays Commercial Bank is building its reputation in the renewable energy market.
With colleagues in Spain, we are providing long-term finance for more than 2,700MW
of renewable generating capacity, enough to supply electricity to more than 1.45
million homes for a year. Schemes range from small-scale hydroelectric projects to
onshore wind farms.

Key Performance Indicators

Global CO2 emissions by source 2007
1 Buildings electricity 85%
2 Business travel car 2%
3 Business travel air 13% Total: 100%
Business travel rail 1%
Environmental key performance indicators 2007
2007 2007 Measurement unit UK only Global
2006
UK 2006 only Global
2005 UK only
2005 Global
2000
Total emissions (from energy use in offices, buildings, data centres and business
travel emissions from air, car and rail) tonnes 292,849 565,752
276,063 526,922 244,625 291,827 269,964
Total emissions taking into account renewable energy contracts(a) tonnes
149,463 422,365 276,048 526,907 n/a n/a
Carbon intensity(b) tonnes CO2/?m 22.31 24.60 20.02 24.40 19.53 16.84
Energy use in offices and buildings per full-time equivalent employee KwH 7,525
5,845 7,650 6,319 7,380 4,816
Energy use in datacentres per meter sq. KwH 2,136 2,346 3,842 3,842(c) 3,693
3,693(c)
Videoconferencing usage no of calls 3,687 73,587(d) 3,301 4,31 0 n/a n/a
EMS coverage based on full-time equivalent employee % 100% 83% 100% n/a
n/a n/a
Data coverage based on full-time equivalent employee % 100% 92% 100% n/a
n/a n/a
Performance against UK climate change targets 2007
2007 performance Baseline % change against baseline On track
1 Reduce total emissions by 20% by 2010 against a 2000 baseline
C02 emissions tonnes (without taking into account renewable energy contracts)
292,849 269,964 +8.48 NO
C02 emissions tonnes (with UK renewable energy contracts)(a) 149,463
269,963 -44.64 YES
2 Reduce carbon intensity of income by 20% by 2010 against a 2005 baseline

Carbon intensity tonnes C02/?m(b) 22.31 19.53 +14.23 NO

Carbon intensity (with renewables contracts) tonnes C02/?m(a) 11.39 19.53 -41.70
YES
3 Reduce energy consumption from offices and data centres per employee by 20% by
2010 against a 2005 baseline
Energy consumption KwH per full-time employee 7,525.00 7,380.00 +1.96 NO
Notes
(a) Barclays aims to purchase electricity from renewable or low carbon sources.
During 2007 we moved to a renewable tariff to cover approximately 50% of our total
electricity use in the UK.
(b) Carbon intensity is calculated using UK income net of insurance claims.
(c) We are currently only able to seperate energy information from data centres
for UK operations. We aim to continuously improve coverage and quality of our data.
(d) A new data stream from our investment banking operations provides more
information on our videoconferencing data which wasn't available last year.
The environment case studies
Progress towards carbon neutrality
Our approach to offsetting
Energy efficiency
Greener business travel
Managing our direct environmental impact
Engaging stakeholders
Waste management in the UK
The environmental services offered by Barclays Commercial Bank
Absa's environmental strategy and programme
Barclaycard in the US

Case study
Progress towards carbon neutrality
Our UK and European operations were fully carbon neutral for 2007. We now plan to
extend this to the whole Group worldwide in 2009.
Increasing our energy efficiency and buying renewable energy are the main ways to
do this. Our remaining emissions are offset.
We offset 173,000 tonnes of CO2 emissions to make our UK and European operations
carbon neutral for 2007.
Our offsetting project in India helps to reduce emissions and to ensure sustainable
development.
We know that offsetting is not a long-term solution to climate change, but we
believe it has a valuable role to play. It provides a powerful financial incentive
for investing in emissions reductions, because offsetting comes at an additional
cost.
Our total UK and European emissions have been verified by emissions auditor SGS.
Our full carbon accounting and offsetting policy explains how we calculate our
carbon footprint and our approach to offsetting. It is available by email from
[email protected]
The voluntary carbon offsetting market is evolving rapidly and new standards are
emerging. We are playing an active part in these developments and when a
universally-accepted standard emerges we will adopt it. In the meantime we will:
Use suppliers with a proven track record
Invest in projects that produce the required emissions reductions within three
years
Ensure that all emissions reductions are verified by a credible independent third
party, preferably one recognised by the United Nations Framework Convention on
Climate Change (UNFCCC)
Give preference to projects that meet recognised standards and take place in
countries where Barclays operates.
173,000
tonnes of CO2 offset for 2007.

Case study
Our approach to offsetting
Barclays has offset its UK CO2 emissions in two ways: The Clean Development
Mechanism (CDM)
The CDM is a mechanism under the Kyoto Protocol, which was introduced in 2005 to
help countries cut greenhouse gas emissions. CDM allows countries to meet their
emissions reductions targets by investing in clean technology in developing
countries that do not have emissions targets.
Our offsetting project in India provides solar panels to increase renewable energy.
These clean investments generate carbon credits called Certified Emissions
Reductions (CERs), which are verified independently and approved by the United
Nations Framework Convention on Climate Change. Barclays has purchased 80,000
tonnes of CERs through Barclays Capital's Emissions Trading Desk.
Community energy projects
We have also invested in community-based energy efficiency and renewable energy
projects in Africa, China and India. This was done through our offset suppliers,
The Carbon Neutral Company, First Climate and Climate Care.
These projects are small scale but have real social and economic benefits for local
communities. They are monitored and verified independently.
One good example is the Lesotho cooking stoves project in southern Africa. This was
designed to produce a lower carbon alternative to traditional wood-fired cooking
stoves. Around 550 efficient new 'Rocket Stoves' have been installed in schools and
orphanages covered by the World Food Programme.
The new stoves will help improve nutrition as well as reduce emissions. In some
cases these stoves have achieved a 90% reduction in the amount of fuel needed to
cook for 100 people. Each stove could save up to 10 tonnes of CO2 a year.
Renewable energy
During 2007 Barclays agreed its biggest ever purchase of renewable energy in a
three-year deal with EDF Energy. This increased our UK renewable energy use from 3%
to 50%, reducing our CO2 emissions by up to 125,000 tonnes a year. In early 2008,
we finalised another renewable deal with Scottish and Southern Energy which means
that 100% of our current electricity needs in the UK are met through renewable
sources.
Our long-term strategy is to find ways of securing the long-term provision of
renewable energy to Barclays, and to incentivise the energy market to produce more
renewables.
125,000
tonnes of CO2 reduced through purchasing renewable energy in 2007.

Case study
Energy efficiency
We have a number of different initiatives running to improve our energy efficiency
in the UK. These include:
Virtual desktops at Barclays Capital
Unlike a conventional PC, a virtual desktop runs from a centrally located server.
As a result, a bulky PC can be replaced by a small thin unit. This delivers an
overall energy reduction of 75% compared to a conventional PC. The savings equate
to ?280,000 and 750 tonnes of carbon each year per 1,000 units.
Remote technology was installed in 90 UK branches to save energy.
More than 1,200 virtual desktops were installed by the end of 2007, with an
additional 3,000 in Barclays Capital and an additional 1,000 in Absa Capital
scheduled for 2008. Virtual desktops also greatly reduce the need for air
conditioning as they produce less heat than a conventional PC.
The PC power save initiative
In May 2007, all our PC monitors in Barclays Capital in the UK were set to enter
standby mode after 15 minutes of inactivity. This reduces energy consumption and
saves on the cost of air conditioning. By May 2008, this initiative is expected to
have reduced our carbon emissions by 3,000 tonnes and saved over ?1.5million in
energy costs.
UK retail branches
We are now using remote technology to monitor and adjust the heating boilers in our
branches from a single location. This means they use less energy and can be turned
off when necessary.
We installed this system in 90 branches in 2007, cutting our gas bills by over ?
160,000 and saving the equivalent of 1,349 tonnes of CO2. We have now committed to
put remote monitoring into all of our branches by the end of 2010.
Head Office heating
Adjustments to the control systems for the boilers at Barclays Head Office led to a
45% reduction in gas consumption and a 2007 saving of 1.8GW.
34%
energy savings of Absa Capital's new building

Case study
Greener business travel
Business travel covers journeys by air and on the roads and we've taken steps to
reduce the need for travel altogether.
By air
Barclays is a member of the Institute of Travel Management 'Project Icarus Group',
which was set up to tackle the issue of carbon emissions associated with air
travel. The project has developed a set of voluntary corporate standards to raise
the understanding of environmental issues in business travel and encourage best
practice.
There are three levels of involvement and our UK businesses have signed up for
Bronze Option B. This commits companies to:
Establish a baseline for measuring travel-related CO2 emissions
Implement a measurement methodology
Demonstrate a reduction in CO2 of at least 2.11% per traveller per year over two
years and identify targets over the following two years
State longer-term goals and strategy for the next 5-10 years. On the roads
We're supporting the UK government's 'Bike to Work' scheme. This has been
introduced for employees working in Barclays Wealth and Barclays Capital buildings
in the UK and will be offered to the other UK businesses in 2008.
Barclays employees can take advantage of the Bike to Work scheme.
73,587
videoconferencing calls made globally in 2007.
Virtual alternatives
We're encouraging more extensive use of videoconferencing to replace the need for
business travel.
In 2007, we installed systems in our four main sites in the UK: 1 Churchill Place
in London, Radbroke Hall in Cheshire, Westwood Park in Coventry and Barclays House
in Poole.
Many of our investment banking and investment management sites around the world
also have this technology.
In 2008, we will identify the main international sites that generate the highest
volumes of business travel.

Case study
Managing our direct environmental impact
Barclays is developing Group-wide Environmental Management Systems (EMS) which have
been certified to ISO 14001.
With a large network of offices globally it is important to reduce our direct
environmental footprint by reducing the energy consumption and waste in our
buildings. We do this either through changing aspects of our existing buildings
known as retrofitting or by designing and developing new buildings that meet higher
environmental standards.
Absa Capital's new headquarters is setting new standards in energy efficiency.
The new Absa Capital building under development in Johannesburg is a good example.
These new premises are being adapted from a 1970s office block to meet our current
environmental standards. The building's existing fagade has been stripped and
replaced with state-of-the-art, double-glazed walls which are uncommon in South
African office buildings. Solar panels will heat water for many of the building's
washrooms and sensor lighting will be installed which automatically switches off
when there is no movement in the room. External landscaping will introduce
indigenous planting to retain rainwater and provide irrigation during most of the
dry season. We have also sourced many of the building materials locally to reduce
the environmental impacts of converting the building. Other features in the
building include:
Energy-efficient light fittings a 43% improvement over standard fittings
Dual-flush toilets in bathrooms to reduce water consumption
Use of recycled material in building finishes, with all wood veneers from
sustainable sources.
We have also supported our businesses to apply for independent certification to
ISO. At present Barclaycard UK together with Barclays operations in France and
Portugal, have all achieved their own ISO. Parts of Absa and our Spanish business
have also been certified to the same standard.
100%
of UK operations covered by an environmental management system
Barclays Capital and Barclays Wealth have extended their EMS and implemented a new
governance structure to include working groups from Barclays Capital in the UK,
Europe, the Middle East, Africa, Asia Pacific and the Americas, and one from
Barclays Wealth. The system now fully covers both businesses.
In total, 83% of our global operations are covered by an EMS, with environmental
data being received from over 92%. Our main gap is in establishing an EMS in Africa
and our goal is to have 100% EMS coverage by the end of 2009.

Case study
Engaging stakeholders
In 2007, Barclays worked with the publisher Rough Guides to produce the Rough Guide
to Saving Energy and Reducing Your Carbon Footprint.
The 64-page book is full of information explaining the challenge of climate change
and how to reduce carbon emissions both at work and at home. It also illustrates
how individuals can make a difference through seemingly unrelated issues, such as
their choice of holiday and the food they eat.
Our Rough Guide to Saving Energy.
It was given to 60,000 Barclays employees and its publication has prompted other
stakeholders to produce a similar book for their companies.
In 2007, we were also one of the sponsors of the Prince of Wales's May Day Business
Summit on Climate Change. The event brought together more than 1,200 business
leaders to agree action on tackling global warming.
In addition, Barclays Chairman Marcus Agius, is a member of the Confederation of
British Industry's Climate Change Task Force. The taskforce aims to set the agenda
for business action on climate change.
173,000
tonnes of CO2emissions offset in the UK and Europe.
Its first step was to commission a global climate change study from consultants
McKinsey, to assess the economic options for reducing greenhouse gas emissions. The
report was published in November 2007.
The findings concluded that the UK government's 2050 goals can be achieved at a
manageable cost, provided there is an increase in the scale and speed of activity.
It also estimated that by 2030, the UK will have to more than double the energy
efficiency of its economy, and more than halve the carbon content of its energy if
it is to reach the 2050 goals.
Changes of this scale will only happen if the UK's government, businesses and
consumers work together it must become a shared national priority.
Marcus Agius explains: "Climate change is the challenge of our generation. Its
impacts will of course not be felt by this generation alone, but the tenor of our
response will determine the environmental and economic climate of the world to
come."
Barclays is working with governments internationally to find market-based solutions
to mitigate climate change and adapt to its impact.

Case study
Waste management in the UK
In 2007, we worked harder to address our direct environmental impacts in the UK.
At Gadbrook Park, we developed a green agenda of local awareness and held
initiatives throughout the year. In Poole, site champions were established together
with a newsletter and intranet site. Also in 2007, contact centre champions were
established in all sites with our Liverpool site now having representatives in each
office block.
We also carried out a range of other activities:
Retail Operations sent 23,000 unused marketing t-shirts to World Jewish Relief
Westwood Park implemented a recycling scheme for colleagues who live too far away
from council facilities
The weekly actions report to branches migrated from paper to our intranet, saving
20,000 printed copies a week
The Local Business Change team set up an alert on our computer systems which
automated some customer checks saving more than one million pieces of paper a year
Barclays Commercial Bank launched a Paper Report Switch-Off Campaign a five-week
environmental campaign to halt the printing of unnecessary paper reports
Our Enviromental Champions' Handbook was revised and reissued
We celebrated World Environment Day on 6 June with roadshows at sites around the
UK, manned by champions and representatives from local Energy Efficiency Centres
and the Environment Agency
Our Woodland Trust mobile phone recycling campaign collected 2,314 old phones
raising ?5,875.
In Barclays Capital's London offices a recycling drive increased recycled waste
volumes by 652% saving the equivalent of enough energy to power 15,000 60w light
bulbs for a year. Confidential paper waste recycling increased 127% saving the
equivalent annual energy consumption of 53 three-bedroom homes. In our North
American operations, switching pitch books from A4 to A5 double-sided has reduced
paper consumption by 29% per full-time employee compared to our 2005 figures.
Barclays Capital also installed a 'reverse vending' machine as part of a trial at
its Bank Street office in London, which automatically takes cans and plastic
bottles and crushes them ready to be collected for recycling. The trial, which was
the first in a UK corporate office, proved successful, with a high volume of
material recycled.
A 'reverse vending' machine at one of Barclays Capital's London offices.
1,352
tonnes of CO2 a year will be saved at Absa Capital's new building in Johannesburg.

Case study
The environmental services offered by Barclays Commercial Bank
Our commercial customers in the UK can now access a whole range of dedicated
environmental services. These include access to:
Barclays Capital's carbon emissions trading expertise
Our exclusive European Investment Bank cashback scheme. This is available to
businesses for environmentally efficient capital expenditure projects between ?
200,000 and ?17million. In 2007, around 80 customers received cashback payments
totalling around ?600,000
Free advice on saving money by reducing energy, water and waste. This is offered by
Envirowise, a government-funded programme that aims to put the sustainable use of
resources at the heart of UK business practice
Robust and cost-effective environmental liability insurance through Marsh, a
leading insurance broker and strategic risk advisor
Guidance on environmental legislation
Advice on making the most of Enhanced Capital Allowances which enable businesses to
claim 100% first-year capital allowances on their spending on qualifying plant and
machinery
Free business carbon calculators and a guide to carbon offsetting
A step-by-step guide to managing environmental impact for SMEs.
Chris Grigg, Chief Executive of Barclays Commercial Bank says: "Developing more
sustainable
business practices and reducing environmental impact should be a priority for all
businesses. The
bottom-line benefits of operating more responsibly are becoming clearer by the
day."
Barclays Commercial launched in 2007 with a suite of environment products.
1,352
tonnes of CO2 a year will be saved at Absa Capital's new building in Johannesburg.
In 2007, Barclays Commercial Bank launched a dedicated environmental website for
corporate customers. The interactive site provides useful sources of expertise and
information including details of our environment-related products.

Case study
Absa's environmental strategy and programme
Absa's environmental strategy aligns with Barclays approach. Absa has also
implemented an environmental management system certified to ISO 14001 standard.
Absa is improving energy efficiency, reducing waste and water usage, and recycling
more to reduce its carbon footprint.

Absa offers customers energy saving home loans.

Absa's project finance transactions are approved in line with the Equator
Principles criteria, and other corporate lending reflects Barclays established
environmental risk management processes.
Absa is a sponsor of the Peace Parks conservation initiative, investing R10million
over 10 years. The project is supported by President Thabo Mbeki, and involves
training more than 10,000 game rangers, field guides, wildlife veterinarians and
guest house managers. Peace Parks supports sustainable economic development, the
conservation of biodiversity and regional peace and stability in southern Africa by
facilitating the establishment of Peace Parks or transfrontier conservation areas
(TFCAs) in the region.
Absa also supports the Southern African Wildlife College in Hoedspruit and the
Southern African College for Tourism in Graaff-Reinet.
Absa is also involved with the Roundabout PlayPumps initiative in South Africa. The
PlayPump is a playground roundabout that drives conventional water bore hole pumps.
The pump is powered by the movement of the roundabout. Using money from Absa's
employee Give As You Earn programme, between October 2006 and March 2007, we
provided funding to install 30 roundabouts.
1,352
tonnes of CO2 a year will be saved at Absa Capital's new building in Johannesburg.
South Africa is currently facing an energy crisis as growing demand has overtaken
supply. In response, Absa Home Loans launched an energy efficiency campaign in
partnership with a supplier who offered a 10% discount on products such as solar
water heating, efficient lighting and home insulation.

Case study
Barclaycard in the US
Barclaycard's new building in Wilmington has a 'green roof', with 80% of the
rooftop covered in sedum plants.
This increases our energy efficiency on the top floors. The building is also
designed to make the most of natural light, reducing energy consumption.
Our Wilmington building has a green roof to increase energy efficiency.
83%
of our global business is covered by our Environmental Management Systems.

Supply chain
The carbon emissions generated by suppliers is an increasingly important element of
every company's indirect impacts on the environment. Barclays engages with
suppliers to promote responsible practice in this area.
In 2007, we held a special forum for eight major suppliers accounting for around 4%
of our UK spend, followed by individual discussions to ascertain the proportion of
their emissions attributable to us. We are now working with these suppliers to
identify ways to help them reduce these emissions, and have set up a working group
to oversee this programme.

We are taking steps to reduce the environmental impact of our supply chain.
During our selection process, we ask selected suppliers to provide information
about their social and ethical performance, as well as their environmental track
record. This information forms part of our selection decision.
In 2007, Absa adapted our questionnaire for suppliers in its local market. A first
for a company of Absa's size in South Africa, the questionnaire will go to 35 top
suppliers initially.
25,000
We have more than 25,000 suppliers globally.

Key performance indicators

Global Sourcing
25,000+ 10,000
Number of suppliers suppliers provide 90% of third-party
spend
_2007_2006
Payments to our suppliers Approx ?7bn Approx ?4.9bn
Supplier management in South Africa
The Financial Sector Charter target for Absa is to have 50% (weighted spend) of its
qualifying third-party spend going to Black Economic Empowerment-rated suppliers by
2008.
_2007_2006
Qualifying spend going to Black Economic 62% 55%
Empowerment companies

Supply chain case studies

Absa's new supplier questionnaire
Our policy on forced, compulsory and child labour

Case study
Absa's new supplier questionnaire
All major Absa suppliers must complete a questionnaire as part of our screening
process.
Absa requires all strategic and some operational suppliers to complete the
questionnaire. This assesses each organisation against three criteria:
Human rights
Environmental impact, and
Business integrity.
In South Africa, in order to overcome inequalities, the government encourages
businesses to place their business with a certain number of black-owned firms. Absa
is one of the leading businesses to support the government scheme. Absa
significantly increased the proportion of its spend with Black Economic Empowerment
(BEE) companies in 2007.
ABSA
Absa's supplier questionnaire is part of our supplier screening.
The Financial Sector Charter target for Absa is to have 50% of its qualifying
third-party spend going to BEE-rated suppliers by 2008. Absa has exceeded that
target a year ahead of schedule, with 62% of spend going to BEE companies during
2007.
10,000
suppliers account for 90% of third-party spend.

Case study
Child, forced and compulsory labour policy
Barclays supplier screening process includes a human rights component. This
addresses the issue of child labour. We aim to have no child labour in any part of
our supply chain.
We have a policy that we won't employ anyone under 16 years of age.
We don't employ anyone under 16 years of age.
However, the issues are complex, and in some markets children may, for example, be
supporting the rest of their family. In circumstances such as these we would be
careful not to force the children out of their existing jobs and into worse
conditions. We would work with the supplier to ensure that any children involved
are treated well, and have access to education.
Our supplier screening process also seeks to ensure there is no forced or
compulsory labour in our supply chain.
10,000
suppliers account for 90% of third-party spend.

Human rights
We have been representing the banking sector on the Business Leaders Initiative on
Human Rights since 2003, and promoting greater awareness of these issues to the
wider financial services community.
Since October 2006, we've also co-led the workstream on human rights for the United
Nations Environment Programme Finance Initiative, a global alliance of more than
160 financial institutions.
During 2007, we worked with a team of 11 other financial institutions to develop an
online resource for banks on the human rights issues associated with lending. This
is a complex area covering many different issues. The resource is designed to be
practically structured and commercial, helping lenders identify potential risks and
evaluate ways they might be reduced or managed. It covers the issues to watch for
in specific sectors, which might range from health and safety, to poverty and
sustainable development.
We have worked with the UN to develop guidance for our sector.

Human rights case studies

Our work with unions
Our new deal on cleaners' pay

Case study
Our work with unions
We support the rights of employees to engage in trade union activities, and
recognise unions, employee councils and employee associations in more than 20
countries worldwide.
In our two largest markets, the UK and South Africa, we have reached progressive
partnership agreements with the major trade unions. Where unions do not exist, we
liaise with works councils and employee associations, and engage directly with our
employees. However, in some countries unions are either not strong or even illegal.
In Africa, we have developed a Pan-African forum to work constructively with our
colleagues, whilst in Europe we have the Barclays Group European forum which brings
together colleagues from across our European businesses.
UNI recognised our efforts to work with trade unions.
In a recent survey published in September by Union Network International (UNI),
Barclays was rated the best of 25 major financial institutions in relation to union
rights and freedom of association.
In May 2007, we signed an agreement, called The Pledge, between Absa and its
recognised trade union SASBO in South Africa. The agreement is based on our UK
Partnership Principles approach to managing industrial relations.

Case study
Our new deal on cleaners' pay
In June 2007, Barclays introduced a market-leading base pay rate of ?7.50 per hour
for its third-party employees working in Greater London.
Around 1,000 cleaning, mailroom, gym and catering employees working across 370
Barclays branches and offices throughout London directly benefit from the increase,
which came into effect on 1 July 2007.
This means Barclays hourly base rate is ?1.98 per hour higher than the UK
government's minimum wage of ?5.52 and 30p per hour more than the London Living
Wage recommended in 2007 by the Mayor of London Ken Livingstone.
We have increased our contractors pay as part of our commitment to all those who
work for Barclays.
Although the employees who benefit are not directly employed by Barclays, we
believe we have a responsibility to ensure that they receive a fair, well-rounded
remuneration package.
Barclays worked with union Unite (Amicus section) to introduce the increase, which
equates to a 20% rise for some employees.
Atkins Asset Management and Johnson Controls manage Barclays suppliers in Greater
London. The suppliers involved in the deal include Mitie, Lancaster, Initial, Mail
Source, Restaurant Associates, Ararmark, Bannatyne's and Baxter Storey.
20%
Our new pay deal for cleaners equated to a 20% rise for some.
The deal followed our work with the Transport and General Workers Union in 2006
when we developed a new pay and benefits package for cleaners in our UK branch
network.

An inclusive employer
In an intensely competitive industry it is important for us to find, develop and
retain the most talented people available.
Organisations hoping to achieve global ambitions need to bring together different
cultural and international perspectives, and draw on the ideas of the widest
possible range of people. Our Executive Diversity Group meets three times a year
under the leadership of Group Vice Chairman Gary Hoffman to monitor our businesses'
progress against diversity action plans. In 2007, we moved our diversity
specialists from our corporate centre into the businesses, where they can be more
directly involved in decision making.
We also changed the way we recruit at graduate level in our UK retail operations,
resulting in a more diverse intake for 2007.
As we grow our workforce becomes more diverse.
We have a wide range of development and leadership programmes for employees
including sponsorship of a Chicago Graduate School of Business Executive MBA and
intern programmes. Our policies ensure that employees are all treated with respect
regardless of age, race, sexual orientation, gender, disability, religion or
belief.
Becoming more diverse
As we grow internationally our workforce is becoming more diverse, reflecting our
worldwide presence. We are determined to hire employees from the communities in
which we operate, as this not only helps those communities prosper through job
creation but gives us local understanding of customer needs. The percentage of
ethnic minority employees in our UK businesses has increased from 7.2% in 2001 to
12.3% in 2007.
We made further investments, in 2007, in disability mentoring to enhance career
prospects and 'reasonable adjustments' schemes to improve working environments for
disabled colleagues. We need to work harder on making these schemes accessible by
identifying and removing obstacles to career progression. We also introduced a new
helpline for disabled colleagues and Group Chief Executive John Varley hosted two
sessions of our Disability Listening Group.
We recognise that we have work to do on developing and recruiting more women for
senior jobs. All of our businesses now have robust plans in place to improve in
this area. In 2007, mentoring schemes were set up across our retail and commercial
banking businesses and Women's Networks in Barclays Capital and BGI continued to
grow. In Barclays Wealth there are dedicated programmes for high-potential women.
19%
of UK Retail Banking graduate trainees were from ethnic minorities in 2007, up from
8% in 2005.

Key performance indicators

Human resources data tables
Barclays an international picture 2007(a) 2006(b) 2005
Global employment statistics
FTE 134,900 122,600 113,300
Total employee headcount 141,885 133,529 126,000
Percentage of female employees 56.3% 60.6% 61.9%
Percentage of female senior executives 13.7% 12.2% n/a
Percentage of female senior managers 20.6% 20.8% n/a
Percentage working part time 12.4% 13.6% 15.4%
Turnover rate 18.3% 16.9% 17.%
Resignation rate 12.3% 10.9% 10.9%
Sickness absence rate 3.0% 3.6% n/a
FTE by world region
UK 61,900 62,530 60,103
Africa & Middle East 51,748 44,326 40,134
Continental Europe 9,750 8,100 7,616
Americas 6,413 4,905 3,916
Asia Pacific 5,088 2,739 1,531
Total 134,900 122,600 113,300
Notes
(a) 2007 UK data includes BGI employees
(b) 2006 UK data excludes 800 BGI employees
Barclays UK employees 2007 2006 2005 2004 2003
UK employment statistics
Total employee headcount 67,115 69,023 66,566 66,663 65,234
Average length of service (years) 9.7 9.8 10.2 10.5 11.00
Percentage working part time 16.8% 21.8% 23.7% 24.6% 25.1%
Sickness absence rate 3.0% 4.0% 4.2% 4.4% 5.0%
Turnover rate 16.6% 19.0% 20.0% 19.3% 20.0%
Resignation rate 11.1% 12.0% 11.5% 11.8% 12.0%
Women in Barclays
Percentage of all employees 58.0% 61.0% 62.2% 63.4% 64.0%
Percentage of management grades 28.4% 33.0% 30.9% 30.5% 29.4%
Percentage of senior executives 13.0% 12.9% 10.9% 10.5% 11.4%
Ethnic minorities in Barclays
Percentage of all employees 12.3% 12.7% 11.3% 10.5% 9.0%
Percentage of management grades 10.0% 8.1% 7.1% 7.0% 6.3%
Percentage of senior executives 6.6% 6.1% 3.6% 3.3% 3.7%
Disabled employees in Barclays
Percentage of all employees 3.4% 3.8% 3.4% 3.2% 3.0%
Age profile
Employees aged under 25 16.5% 17.4% 17.1% 17.5% 16.0%
Employees aged 25-29 17.0% 15.9% 15.0% 13.9% 12.9%
Employees aged 30-49 54.2% 56.0% 57.3% 58.6% 61.0%
Employees aged 50+ 10.3% 10.7% 10.5% 10.0% 10.1%
Pensions
Barclays Bank UK Retirement Fund active members 53,473 55,558 55,608
60,837 62,761
Current pensioners 48,607 43,754 42,258 40,926 39,296
Notes
All global headcount and FTE numbers relate to direct employees therefore excluding
agency employees and contractors.
All employee statistics relating to Barclays PLC UK in 2006, excludes BGI Barclays
Global Investors (approx 800 UK employees).
All data as at 31 December 2007, except pensions data for 2006 which is as at 30
September 2006.
Percentage of disabled employees is derived using responses to the GRCB and Central
Support
Employee Opinion Survey, 84% of the UK population.
Sickness absence percentage excludes Barclays Capital population.
(c) Headcount base corresponding with UK FTE (full-time equivalent)
Employee Opinion Surveys
Positive Scores 2007 GRCB 2006 GRCB
Participation Rate 90% 87%
Proud to work for Barclays 82% 84%
Perceptions of Leadership 59% 62%
2007 GRCB 2006 GRCB
Employee Engagement 74% 76%
Barclays operates with integrity 85% 84%
Environmentally responsible 78% 77%
Socially responsible 82% 83%
Other Engagement Barclays Capital
The Employee Opinion Survey is conducted less frequently within Barclays Capital as
a varied approach to gaining feedback is used. Through continuous engagement with
our employee networks we have identified specific areas of improvement that we are
working towards. Initiatives include, enhanced maternity guidelines for managers,
accessibility audits, bespoke training for network members to help them through
their careers and to provide two-way learning across the business. Outside of the
employee networks, we have conducted focus groups within specific business areas
looking at the level of cultural awareness and virtual team management skills
across the firm. This has resulted in piloting a new "Working Globally" course in
Asia Pacific and the UK. Direct feedback and open discussions with our employees
have provided us with development areas within the firm and have helped us set the
direction of our "people agenda" for 2008.
Barclays Wealth
Barclays Wealth has implemented two full Employee Opinion Surveys since its
creation in October 2006. These measure the opinions of our employees globally.
Business Unit Improvement Forums are then established for each business area,
responsible for putting in place, and then implementing throughout the year, a plan
of action to address some of the key issues arising from the survey. In addition,
our largest employee function; Operations (with more then 2,000 employees) does
quarterly mini-surveys to track areas of improvement it is focusing on.
Barclays Global Investors
BGI uses an Employee Opinion Survey to measure the firm's progress in variety of
areas, including Employee Engagement. A comprehensive questionnaire is administered
biennially with an abbreviated checkpoint survey conducted in alternate years.
Firm-wide participation is historically strong. In 2007, the firm scored
particularly well with respect to support for the organisation's values and goals,
and in the quality of working relationships. Career development was indicated as a
key area for focus. Additional efforts to collect feedback consistently across the
various departments and regions are underway. In Europe, for example, the firm
combined focus groups with a survey to better understand and address the needs of
our diverse employee base. In the USA, focus group sessions were hosted to enhance
our efforts to attract, retain and develop women employees. And last year the firm
sponsored a number of new affinity groups, such as the LGBT network in the USA and
a women's network in Australia. Input from all of these, is being used to inform
and enhance our employee engagement activities in 2008.
36%
4,200
Hourly wages for third-party employees working in
Barclays Wellness Programme in South Africa has helped more than 4,200
Greater London are 36%
higher than minimum wage thanks to a rise to ?7.50 per hour.
employees establish their HIV status, making early intervention much easier.
Absa staff split
Absa has continued to make good progress in developing a more diverse workforce.
Occupational levels African Black Male Indian African Designated
Black Indian Female White N Male White on-designated Foreign
nationals Male Female Total
Top management 2007 5 0 1 2 1 1 0 28 0 0
38
2006 5 0 1 2 1 1 0 24 1 0 35
Senior management 2007 35 14 31 11 7 13 56 309 12 2
 490
2006 29 10 25 8 3 6 48 277 6 2 414
Professionally qualified and 2007 652 343 526 496 352 522 2,221 3,297
15 26 8,450
experienced specialists and 2006 556 291 458 381 298 418 2,027 3,201
29 41 7,700
middle-management
Skilled technical and academically qualified workers, junior management,
supervisors, foremen and superintendents
Semi-skilled and discretionary 2007 1,658 736 212 3,839 2,217 561 2,266
360 0 18 11,867
decision-making 2006 1,581 827 224 3,407 2,356 606 2,719 416 0 22
12,158
Unskilled and defined 2007 48 11 1 127 23 2 0 0 0
0 212
decision-making 2006 57 12 1 129 28 4 0 0 0 0
231
Total permanent employees 2007 3,719 1, 998 1,188 6,976 4,601 2,048 9,293
5,084 32 69 35,008
2006 3,352 1,926 1,111 5,878 4,448 1,921 9,706 5,046 45 126 33,559
Non-permanent employees 2007 78 32 14 189 78 15 224 156 0
0 786
2006 182 145 76 348 325 80 524 283 0 0 1 963
Total employees 2007 3,797 2,030 1,202 7,165 4,679 2,063 9,517 5,240 32 69
35,794
2006 3,534 2,071 1,187 6,226 4,773 2,001 10,230 5,329 45 126 35,522
"Designated groups" means Black people (i.e. Africans, Coloureds and Indians),
women and people with disabilities who are natural persons and are citizens of the
Republic of South Africa by birth or descent; or are citizens of the Republic of
South Africa by naturalisation before the commencement date of the Constitution of
the Republic of South Africa Act of 1993; or became citizens of the Republic of
South Africa after the commencement date of the Constitution of the Republic of
South Africa Act of 1993, but who, but for Apartheid policy that had been in place
prior to that date, would have been entitled to acquire citizenship by
naturalisation prior to that date.
2007 1,321 894 417 2,501 2, 001 949 4,750 1,090 5 23 13,951
2006 1,124 786 402 1,951 1,762 886 4,912 1,128 9 61 13,021
"Non-designated groups" fall outside this definition.

An inclusive employer case studies

Live Well, Work Well in South Africa
Gender equality
Increasing cultural awareness in Barclays Capital
Recruiting from the widest talent pool
Our partnerships with gay and lesbian organisations
Our programmes for disabled colleagues
Barclays Women of the Year Internal Award

Case study
Live Well, Work Well in South Africa
Our 'Live Well, Work Well' programme is one of the most successful employee
HIV/AIDS programmes in Africa. It succeeds because we refuse to accept the stigma
of HIV/AIDS.
Our managing directors across the continent have taken the lead by getting
themselves tested for HIV, and publicly supporting our "Project I Know" campaign.
This is backed by a comprehensive education and healthcare programme at our
Wellness Centres, based on three simple ideas: prevention, treatment and coping.
Absa has worked to reduce the stigma of HIV/AIDS.
We offer voluntary testing for HIV and counselling to all employees. This is free
and confidential, as is our employee helpline. When test results are negative
colleagues are encouraged to protect themselves and stay negative. When results are
positive, we support our colleagues with guidance on healthy lifestyles, and free
anti-retroviral treatment. Up to three members of their family can also have this
free treatment.
We also try to break down damaging stereotypes and create a supportive working
environment for everyone, whatever their HIV status. Trade unions have a big role
to play here, and their support for testing, in particular, has made a huge
difference to the numbers of employees taking part in our initiative.
4,200
employees have established their HIV status through Absa's Live Well, Work Well
programme.

Case study
Gender equality
The Equality and Diversity Team in Barclays France was recognised for its work on
gender equality in our 2007 Chairman's Awards. The team won the Equality and
Diversity Achievement of the Year category.
Programmes to promote gender equality are not commonly found in France, but this
team ensured that's not the case at Barclays. A gender champion was appointed and
six team leaders each hosted a 'listening lunch' with senior women to hear their
views on how best to address gender inequality. Dedicated groups were established
within Barclays France to focus on work-life balance, identifying and developing
talented women, and creating a mentoring programme for them. The team also
organised sponsorships of events such as the Women's Forum for the Economy and
Society in Deauville. Partnerships were also formed with three organisations that
support girls' education for International Women's Day 2007.
The Equality and Diversity Team in Barclays France, with Barclays Group Chairman
Marcus Agius (far left) and Trevor Phillips of the Equality and Human Rights
Commission (far right).
This work in France is only one example of what we are doing to increase the number
of senior women in Barclays. Each Business Unit has a gender action plan that is
reviewed by our Executive Diversity Group every six months.
In Barclaycard, we are ensuring that all high performing women up to the most
senior levels have coaches or mentors. A transparent "talent" agenda has also been
established to ensure that talented women in senior roles are nurtured, developed
and given opportunities for promotion. They have development plans, in line with
our Performance Development process, which are reviewed twice a year.
56.3%
of our employees globally are female.

Case study
Increasing cultural awareness in Barclays Capital
Linking strongly into the Global business strategy, Barclays Capital recognised the
need to re-energise its Cultural Awareness Network. The Network was relaunched in
September 2007, headed up by two senior chairs and two senior sponsors within the
business.
The mission of the network is simple: "To increase the cultural awareness of the
firm's employees allowing them to build deeper and more fruitful relationships with
their clients and colleagues from around the world".
The Cultural Awareness Network was relaunched in September.
Since the relaunch, the network has seen a 10-fold increase in employee membership.
The first initiative was a Celebration of South Asian Culture which was run by
members of the network and provided our employees with an educational leaflet on
South Asian cultures and festivals as well as the opportunity to sample Asian food.
A number of celebrations are planned for 2008 covering diverse events such as
Chinese New Year, St Patrick's Day and a Vaisakhi Event celebrating Punjabi
culture.
With our clients based across the globe and an employee base of more than 100
nationalities, Barclays Capital recognises the importance of valuing, understanding
and educating our employees on the many different and vibrant cultures across the
world.
12.3%
of our employees in the UK are from ethnic minorities.

Case study
Recruiting from the widest talent pool
Graduate recruitment is a key part of recruiting and developing Barclays Capital's
future leaders.
Working in partnership with our campus recruitment teams, our employee networks and
the diversity team play an important role in helping us find the most talented
graduates from the widest talent pool.
In 2007, Barclays Capital reached out to some of the most talented graduates
through UK programmes such as:
Sponsors for Educational Opportunity
Elevation Network
Inside & Out
Investability.
Bob Diamond with members of one of our women's networks.
In addition to supporting these organisations, Barclays Capital invites colleagues
from across the firm and from our employee networks to share their experiences with
potential graduate recruits during open days and social evenings. This provides
students with direct access to our employees so they can learn more about what it
means to earn success at Barclays Capital.
In 2005, more than two-thirds of the 28 graduates on our UK Retail Banking graduate
programme were men. In contrast, more than half of our 38 graduates were women in
2007 following our efforts to increase the diversity of our graduate recruitment.
The UK Retail Banking Human Resources team changed our approach by:
Changing the marketing of our graduate recruitment scheme to make it more
accessible and appealing to women
Involving male and female assessors, removing any perceived bias, and ensuring they
had all undergone our online diversity training.
20.6%
of senior managers are women.

Case study
Our partnerships with gay and lesbian organisations
Our partnership with Stonewall, the campaigning organisation for gay, lesbian, and
bisexual people in the UK, was the first of its kind in the financial sector.
We've sponsored Stonewall's annual awards for two years and will do so again in
2008. The awards celebrate the whole range of positive contributions people and
institutions make to gay Britain. In 2007, we also sponsored a 'Barclays Community
Group of the Year' award, which was won, along with a ?5,000 donation, by the
London Lesbian and Gay Switchboard.
Stonewall Workplace Equality Index
Barclays was again ranked in the top 20 of Stonewall's 100 top employers for
lesbian, gay and bisexual employees in 2007. The top 100 employers were ranked
according to criteria ranging from implementation of effective equality policies to
demonstration of good practice in recruitment and mentoring. Barclays was ranked 17
and scored 86% in the 20-question survey, designed to measure equality in the
workplace.
Sponsorship of Stonewall Football Club
In 2007, we signed a one-year sponsorship of Stonewall Football Club, the UK's
first club for gay footballers. As well as being title sponsor of Stonewall FC's
three teams, we provide kit and equipment for the club. In return, Stonewall FC
will be involved in our equality and diversity programme, building on our status as
the best gay-friendly bank or financial institution in the UK, as voted by The Pink
Paper in 2006.
We have signed a one-year sponsorship deal with Stonewall Football Club.
Stonewall FC Chairman, Liam Jarneki, says: "Barclays investment is a fantastic
opportunity for Stonewall FC to develop in the build up to the Gay World Cup in
London in 2008. Our aim is to help promote an environment where everyone can enjoy
playing football, regardless of sexual orientation."
Supporting Employees
Aside from our partnership with Stonewall, we also supported employee floats in the
London, Manchester and Brighton Pride parades in 2007, and sponsored the Brighton
Pride Community Village.
86%
Barclays score in Stonewall's survey on equality in the workplace.

Our 'Reasonable Adjustments' scheme makes the workplace more accessible for
disabled employees and allows them to fulfill their potential. Since 2005, more
than 2,500 of these adjustments have been made. They include simple but effective
changes to our colleagues' working environment from changes to seating and lighting
to arranging sign language interpreters for meetings. We have also completed a
project to provide an enhanced service for people with complex IT needs.
With reasonable adjustments colleagues can make changes to their working
environment to meet their needs.
Another element here is ongoing support for disabled colleagues and their line
managers. We now have a dedicated disability helpline and a One-Stop-Shop
disability intranet portal, which brings together all the information our employees
need in a concise and user-friendly format.
Recruitment
We've overhauled our approach to recruitment across the Group from graduate
recruitment to entry-level positions.
In 2007, we recruited five disabled graduates to our UK Banking graduate training
schemes in GRCB, and took on another 10 disabled undergraduates as part of our
internship programme.
UK Retail Banking continued to build on the success of 'Recruitment That Works' in
2007. The scheme aims to recruit people with disabilities who have been out of work
for a long time. The scheme was run at our Manchester Contact Centre in 2007 with
further sites planned for 2008.
Developing and retaining colleagues
There are three major initiatives here. The first is the Disability Mentoring
Scheme, which offers every disabled employee a trained mentor. Since 2005,
approximately 25% of our disabled colleagues have taken up this offer.
3.4%
of colleagues in the UK have a disability.
There's also Group Chief Executive John Varley's Disability Listening Group, which
meets twice a year, and the 'Reach' employee network which helps disabled
colleagues with career development and social networking.

Case study
Barclays Women of the Year Internal Award
The Barclays Women of the Year Internal Awards recognise inspirational and
extraordinary UK-based women who have demonstrated excellence in their field,
either personally or professionally, and who have made a difference.
The Awards were launched in 2007 to coincide with Barclays sponsorship of the
overall Woman of the Year Award at the Women of the Year Lunch and Assembly. This
UK event recognises the achievements, often against the odds, of women around the
world. Deanna Oppenheimer, Chief Executive, UK Retail Banking presented the award
to Sister Frances Dominica, founder of Helen and Douglas House, the first
children's hospice in the world, which provides care to children with life-limiting
illnesses.
Barclays 2007 Women of the Year Internal Award winners with Deanna Oppenheimer and
Sister Frances Dominica.
56.3%
of our employees globally are female.

In the community
Investing in the community is an important part of Barclays sustainability
strategy. We believe our business will benefit from contributing to the development
and sustainability of the communities where we operate.
In 2007, we invested ?52.4million in community projects around the world, and more
than 43,000 colleagues in 29 countries were involved in our fundraising and
volunteering initiatives.
We also made a step change towards globalising our community investment. As we grow
outside the UK, our community investment should reflect that growing presence. In
2007, our investment outside the UK increased from 15% of the total (?6.9m) to 26%
(?13.5m).
Another change in 2007 was giving more responsibility for budget allocations and
spending to the different areas of our business. Within our overarching community
investment framework, businesses can decide the causes which matter most in their
communities from tackling malaria in East Africa to helping reduce debt among
elderly people in the UK.
Banking on Brighter Futures
In October, we committed to invest $150m over the next five years, to support 1,500
Banking on Brighter Futures projects around the world. Employees are being
encouraged to volunteer 150,000 hours of their time.
Barclays Spaces for Sport has invested ?30m in community sports in the last three
years. In 2008, the programme goes global.
Banking on Brighter Futures is our flagship programme allowing us to use our
financial skills and expertise to help people work towards financial independence
and security. Aligning our community investment to our core business maximises the
impact. We are giving money and using the power and capability of our organisation
to tackle social issues, focusing on financial inclusion, entrepreneurship,
education and helping people into employment.
Rachael Barber, Global Head of Community Investment, says: "Banking on Brighter
Futures covers a huge range of different projects, from major initiatives such as
the ?3.5m Barclaycard Horizons programme in the UK which has so far benefited
89,000 lone parents and their children, right through to Barclays Capital's
programme with YWCA in New York which involves 24 employees acting as mentors and
has already helped six women find employment."
Global breakdown of community investment in 2007 ?000
?52.4m
Total community investment
OB UK 38,932
Europe 1,994
Africa 7,856
North and South America 3,046
Asia Pacific 579 Total: 52,406

Key performance indicators

2007 2006 2005
Community investment
Total community investment ?52.4m ?46.5m ?39.1m
Employees receiving support for fundraising, volunteering and giving 43,718
33,419 26,978
Charities supported by Barclays 7,140 8,279 7,515
Fundraising
Total amount raised by employees through matched fundraising (a) ?12.8m ?13.8m
?13.8m
Total number of fundraising events receiving matched fundraising 9,501 11,399
11,644
Total number of employee fundraisers 8,990 11,772 n/a
Volunteering
Number of employee volunteers 25,880 19,672 18,608
Number of volunteering grants given 1,815 1,317 1,496
Bank hours to support employee volunteering activities 94,746 75,586
77,413
Employees' personal hours given to support Barclays volunteering activities 68,935
37,055
Giving
Amount given by employees through payroll giving (UK and South Africa) ?1.39m
?1.08m ?1.05m
Amount matched (UK and South Africa) (a) ?846,000 ?578,000 ?517,000
Number of people taking part in payroll giving UK and South Africa 12,145
9,549 8,662
Notes (a) Matching from Barclays and Absa
Community investment by region (?)
UK 38,932,000 39,589,000 35,259,000
Europe 1,994,000 989,000 882,000
Africa 7,856,000 4,430,000 1,696,000
USA/Canada 3,021,000 1,153,000 1,115,000
Asia Pacific 579,000 316,000 139,000
South America 25,000 16,000 19,000

Barclays in the community case studies

The Katine project
Horizons Helping lone parents manage debt
Help the Aged Providing money management and debt advice
Balia Foundation Supporting young people in Spain

Case study
The Katine project
Katine is a region made up of 66 villages in Eastern Uganda, where 77% of the
25,000 population live on less than $1 a day.
The Katine project is a joint initiative by Barclays, the Guardian Media Group, and
AMREF (African Medical and Research Foundation). It is a major socio-economic
sustainability project providing improved water, sanitation and hygiene practices,
improved health and education services, and sustainable economic development in the
region.
Financial education, savings, and loan services will be offered in Katine.
AMREF is delivering the project on the ground, and The Guardian is following
progress in print and online as well as raising around ?1.5million from reader
donations. Barclays is donating ?1.5m to the project and drawing on its business
expertise to increase the social benefits.
We are leading a component which includes financial education and the provision of
basic savings and loans services to 5,000 people through village banks. Barclays
will develop a sustainable model for rural banking that will deliver genuine
community and business benefits. The initiative is being driven by Barclays Global
Community Investment and Financial Inclusion teams, and Barclays Uganda. This all
makes good business sense, enabling Barclays to develop new ways of delivering
financial services in remote and rural locations.
?52.4m
At the same time, NGO Farm Africa will improve Katine's economic development and
the livelihoods of
local people through better agriculture, use of technology, focus on specific crops
and healthcare for
animals. It will also support farmers to access new markets. While some already
sell their goods in . ,
Total community investment
local markets, not enough is being done to encourage them to sell further afield.
Selling in towns and cities, such as Kampala and Mbale, will help local farmers
achieve better prices for their produce.
The Katine partners have set themselves ambitious targets to achieve in the coming
years including better health, clean water and primary school education.
Sustainable health for Katine's 25,000 residents requires measures such as
establishing village health teams to identify danger signs, such as malaria or
malnutrition, and refer people to the nearest clinic. Already, 66 community members
have been trained and are ready to deliver these essential services to Katine's
residents.
Clean water is critical for survival and for health, but currently more than 8,000
locals have no choice but to drink dirty water. During the first six months, the
project brought clean water to more than 2,500 people and the whole population will
be covered by the end of the project.
Primary education, a cornerstone for the future of Katine's youngsters, will be
improved. Teachers will be trained to deliver quality education in more comfortable
classrooms. Katine has 13 primary schools but only four have safe water and
sanitation, and only half of the children have seats. This contributes to a drop-
out rate of over 20% of pupils every year. By building 26 new classrooms and
providing clean water and sanitation in schools, the project aims to halve the
drop-out rate.
To manage the project's environmental impact, solar panels are being installed at
the office in Katine. More may be installed at local health centres and schools.
Ways to help local people protect the environment and increase their livelihoods
through carbon credit schemes will also be explored.

Case study
Horizons Helping lone parents manage debt
The Barclaycard Horizons programme helps families who are struggling with debt. It
targets lone parents as they are among the most vulnerable in our communities.
Since March 2005, Barclaycard has invested ?3.5million in the programme, and
through it supported around 89,000 disadvantaged lone parents and their children.
The initiative seeks to improve the skills and confidence of lone parents, helping
them manage their finances, improve their job prospects and better support their
children.
Nearly two million British families have only one parent, and around 1,488,000
children of lone parents are poor.
Horizons brings together four charity partners; Citizens Advice, Family Welfare
Association (FWA), One Parent FamiliesGingerbread and Parentline Plus. With
Barclaycard, they share expertise and knowledge and have created a programme of
activity that makes a real difference to lone parents.
The Barclaycard Horizons programme helps low-income parents out of debt and
poverty.
Project targets
For FWA to support 3,000 lone parents.
For Parentline Plus to reach 7,500 lone parents via parenting services.
For Citizens Advice to reach 7,600 lone parents via debt advice and financial
literacy training.
For One Parent FamiliesGingerbread to reach 120 lone parents via the 'back to work'
programme.
Impacts to date
More than 7,000 lone parents supported through one-to-one debt advice and/or
financial literacy training.
More than 1,000 community professionals received financial literacy training and
reaching an estimated 14,500 lone parents.
More than 8,500 lone parents have benefited from Horizons parenting support.
Six 'back to work' programmes have been completed supporting 97 lone parents on
their journey towards employment. Barclaycard has recruited 11 of them.
10,460 lone parents and their children have benefited from ?600,000 of grants to
support education.
Case study
Jessica Bayliss, from Northampton, is a lone parent who took part in the
Barclaycard Horizons programme.
Jessica was paired with a Barclays mentor, who helped develop her skills, identify
her career options and increase her self-confidence. Horizons taught her how to
achieve financial stability and manage her work/life commitments. Sessions with
Parentline Plus were incorporated to help Jessica balance parental stress with work
commitments. She also took part in work-based role plays to build her confidence.
As a result of Jessica's achievements during the programme, she now works for
Barclaycard as an HR Administrator. The programme has also boosted her confidence.
Inspired by Barclays employee volunteers, Jessica plans to train as a counsellor so
that she can use what she has learned to help others.
?52.4m
Total community investment.

Case study
Help the Aged Providing money management and debt advice
Barclays has donated ?1.8million to the Help the Aged 'Your Money Matters'
programme. It provides basic money management and debt advice to older people and
their carers through 17 individual projects across the UK.
The projects help to improve their knowledge, skills and confidence about managing
money. They also raise awareness of the issues of older people and debt.
The information and advice provided in sessions range from basic budgeting to
understanding how chip and PIN works. They also cover opening bank accounts,
negotiating with creditors and helping older people claim benefits.
Barclays employees volunteer their time at the programme's money management
sessions. If individuals require specific financial advice, they can access
professional debt advisors through the programme.
Up to 100,000 older people will also receive information and support through
targeted publications and SeniorLine, a free welfare benefits advice telephone
service.
Barclays has donated ?1.8m to the Help the Aged 'Your Money Matters' programme.
Project targets
2,000 older people to receive money management and debt advice through one-to-one
sessions with dedicated advisers.
10,000 older people to attend Your Money Matters group awareness sessions.
Reduce debt among this group by ?1.1m.
Work with debt advisers and local charity partners to identify ?1m of unclaimed
benefits.
?52.4m
Total community investment
Impacts to date
2,500 older people have been helped with money management and debt advice through
one-to-one sessions with dedicated advisors.
7,600 have been helped through Your Money Matters group awareness sessions.
Over ?1.5m of debt has been written off.
Over ?650,000 of additional benefits have been received by older people.
?450,000 of unclaimed benefits have also been identified through SeniorLine.
Mr O's story
Mr O was referred to the Your Money Matters programme by a Macmillan/Citizens
Advice Bureau benefits adviser. After his wife's death in July 2007, he discovered
that his wife had built up debts of ?3,620 from credit cards and a catalogue
account.
Mr O was upset and unsure about what he should do. His wife had not worked for 30
years and had no income or savings. Although he had ?13,000 in savings in a joint
account with his wife, this was due to a compensation award he had received for an
industrial injury.
His adviser drew up pro forma letters for the client to copy out and send to his
wife's creditors with a copy of her death certificate, informing them that she had
left no estate. All the creditors responded by writing off the debts.
Case study
Balia Foundation Supporting young people in Spain
The Balia Foundation provides support to young people and their families in Spain
who are at risk of social exclusion. Over the last three years, in partnership with
Barclays, it has been providing safe childcare facilities for children and
developing the parents to help them secure more highly skilled work.
Many of the families are immigrants with lone parents, who have limited skills and
face long working days in order to earn a decent income. This means leaving their
children at home, or playing on the street, during working hours.
The Balia Foundation operates an after school club, providing professional
childcare and opportunities for children's personal development.
Balia Foundation, Spain.
For parents, the Balia Foundation has two new technology classrooms where they can
develop computer skills, design new CVs and search the internet for career
opportunities. Barclays colleagues are also running a series of workshops to
increase their financial awareness, including budgeting and opening bank accounts.
Project targets
30 young people to have a safe educational environment while their parents are
working.
30 parents to attend financial awareness sessions.
30 parents to develop their skills and seek meaningful and fairly paid employment.
12 parents to attend advanced computer workshops.
GC's story
After a long and expensive custody battle with the child's mother, GC found himself
heavily in debt.
As a full-time carer, GC had to give up work to look after his child. This left him
unable to pay his rent.
He enrolled his child in the Balia programme, and attended financial awareness
sessions, which helped
him manage and repay his debts. GC is now working hard to find a new, better paid
job.
Impacts to date
45 young people have been enrolled in the Balia programme enabling their parents to
look for better jobs.
35 parents have attended financial awareness sessions.
9 Barclays volunteers have run financial awareness sessions.
?52.4m
Total community investment

A sustainable bank anticipates its customers' need and builds long-term

relationships with its stakeholders. In 2007, we explicitly set out to develop
services with those needs in mind. Sustainability should be 'business as usual'
embedded in everything we think and do. It should arise in our first conversation
about a customer's needs, in the development of new products and in the way we
handle complaints, confidentiality, and security.
Developing new products and services
Sustainability relies on products and services that suit our customers' needs and
attract new customers
Customer service
Customers expect fair treatment, and sustainability is underpinned by consistently
high standards of service
Case studies
Developing new products and services
Customer service
Broadening our reach
Becoming more inclusive
Responsible lending
Investment management
Risk management
Broadening our reach
We have more than 30 million customers in more than 50 countries and we target
markets with higher growth
Becoming more inclusive
Inclusive banking means appealing to the broadest range of customers and
understanding our customers' needs
Responsible lending
We tightened our lending criteria and developed new services to help customers
manage their borrowing
LOAN STAR
Investment management
Barclays Global Investors is one of the largest asset management companies in the
world
Risk Management
Our approach to risk covers environmental and social issues as well as our
financial performance

Developing new products and services

Barclays has a history of innovation. We recognise that sustainability relies on
the development of new products and services to suit the needs of our existing
customers around the world and to attract new ones.
We use our local knowledge to help us adapt successful products in one market to
match the needs of customers in another. Last year, we used the inclusive banking
expertise we have developed in Africa and the UK to develop our no frills bank
account in India. We also launched Barclaycard there, using our expertise as a
global cards company.
Reaching untapped markets
In Africa, we offer services to townships and remote villages that have never had a
bank before. In February, customers sang and danced in the street at the opening of
an express branch in Marromeu, Mozambique by Banco Austral, a subsidiary of Absa,
which employs 700 colleagues across 54 outlets. More than 5,000 customers
registered for accounts before the branch opened for business. And building on our
pioneering 'mobile' branches we have introduced other new formats including small
kiosks and 'the bank in a box' which is operated from a briefcase and managed by a
local agent. These service centres are quick and inexpensive to set up and less
intimidating than a visit to a branch for a first-time bank customer.
In September 2007, Barclaycard OnePulse made headlines as the only three-in-one
card to combine a credit card, a contactless payment card and an Oyster travel card
for use on London's public transport network. Employees helped to test the unique
card before it was launched.

New three-in-one card, Barclaycard OnePulse, brings cheap travel and faster
payments for Londoners.
4,082
Branches and sales centres.
Wherever we operate in the world, we aim to be fair and transparent in our dealings
with customers, and our performance in this area in the UK is often under a media
spotlight. We conduct consumer research 364 days of the year in the UK and use
these insights to develop products and services.
We track stakeholder views on our reputation monitoring how we match up to
competitors, and what converts someone from 'just looking' to actually buying.
Investment Philosophy
During 2007, Barclays Wealth developed a new software supported Investment
Philosophy which looks at six individual characteristics of clients' investment
decisions as the basis for targeted portfolio construction. This more developed
approach contrasts with the two characteristics commonly used by most financial
advisers.
Key Performance Indicators
UK Retail Banking
556
UK branches refurbished in 2007
644
Branches and sales centres added in 2007 outside the UK
19%
increase in year-on-year savings income growth in the UK in 2007
50,000
interviews with UK business and retail customers to gain customer insight
UK retail banking
New customers worldwide in 2007 21% UK and 79% non-UK.
Savings products reduced from nine to four products, making them simpler for
consumers to understand.
Lower than market rate repossession for UK properties in 2007.
Customer recruitment from other banks up 12% on 2006 in Local Business, part of UK
Retail Banking.
UK telephony and electronic sales volumes up 27% and 30% respectively in the year.
Growth of our retail presence
Distribution points (branches and sales centres)
2007 2006 change
Western Europe 798 653 145
Emerging markets 550 214 336
Absa 1,001 838 163
4,082
Branches and sales centres offering customers access to services across our global
retail network

Developing new products and services case studies

New trends in credit cards
Shari'a-compliant products for Islamic customers
Customer-focused products and indices from Barclays Capital
Workplace banking in our retail and commercial banking businesses
Business Clubs
Financing renewable energy
Barclays Capital's work on emissions trading

Case study
New trends in credit cards
One of the trends we are seeing and leading in credit cards is the movement towards
a wider range of cards tailored for the needs of different customers.
While it's common to have many different cards competing in the market, especially
in the UK, there has been little differentiation between them. We broke new ground
with our new cards in 2007. We moved beyond customer satisfaction data and aimed
for a much deeper understanding of emerging trends, competitor developments, and
changes in customers' needs and priorities.
Barclaycard Breathe was launched in response to consumer concerns about global
warming.
For example, we tailored Barclaycard OnePulse especially for Londoners. It's the
first card to combine credit and cashless payments with an Oyster travel card for
use on London's public transport network. We were also the first credit card
company in the UK to pilot payments of ?10 and under by mobile phone.
Barclaycard Breathe is another new card that gives consumers incentives to buy
green products and donates half its profits to carbon reduction projects. In 2007,
we guaranteed that donations to charity would be at least ?1m.
Similarly, Barclaycard Business Sustain is the first business card designed to help
companies offset the carbon emissions generated by air travel.
In the USA, we've launched a contactless payments card in partnership with retail
chain BJ's Wholesale Club. Consumers pay by waving the new Visa card in front of a
card reader.
556
UK branches refurbished in 2007

Case study
Shari'a-compliant products for Islamic customers
Within Barclays, Barclays Capital is leading the development of wholesale Shari'a-
compliant products for Muslim customers. In the UAE and Kenya, our retail bank has
also launched Shari'a products.
Our Shari'a products help meet the needs of our Muslim customers.
The most prominent requirement of Shari'a prohibits the payment or receipt of a
pre-determined return that is not linked to the underlying transaction being
financed. For instance, conventional interest payments tend to be non-Shari'a
compliant.
Our contribution to making the Islamic market accessible to investors around the
world was recognised in the 2007 Islamic Finance News awards, where we won five
Deal of the Year awards.
In 2007, we launched the UK's first Shari'a-compliant exchange-traded funds on the
London Stock Exchange. Exchange-traded funds are funds that are traded like shares.
Customers in Barclays Wealth now have access to a full range of structured Islamic
products. This range also includes Barclays Global Investors' new Shari'a iShares,
which cover three different indices: the MSCI World Islamic, Emerging Markets
Islamic, and USA Islamic.
30 million
customers globally.
We also offer products for Muslim customers in our retail network in the UAE and
Kenya. According to ratings agency Moody's, the global Islamic finance market is
estimated to be worth $700bn and has grown by 15% a year since 2005, driven by
increasing volumes of sukuk, the Islamic equivalent of bonds.
UAE
In the UAE, the number of Islamic banks has grown from two in 2000 to seven in
2007, while the number of Islamic investment companies has grown from one in 2000
to ten in 2007. In terms of assets and liabilities, Islamic banks account for
Dh170bn of total banking assets, or 13.5%, a ratio similar to that of Malaysia.
Islamic banks currently have the fastest growing market share in the UAE.
We are currently in discussions with a number of providers to distribute Takaful
(Shari'a compliant) insurance products and investment options such as mutual funds.
Kenya
We launched Islamic banking under the La Riba brand in 2005 in Kenya the first bank
in Kenya and the wider region to launch this offering. The product offers Islamic
banking accounts that are Shari'a compliant. We have around 8,000 accounts that
have this offering. The product is very popular in new branches especially in areas
with a higher concentration of Muslim customers. In these branches the products
account for 40% of new accounts.
These products were recognised as the Best Products Innovation at the Market
Intelligence Banking Awards in Kenya 2006.
In 2006, a Shariah Advisory Board was appointed to build confidence in the product
among customers.

Case study
Customer-focused products and indices from Barclays Capital
BARX
THE TRADER'S BEST FRIEND"
Barclays Capital launched a number of new products during 2007 which were designed
to make it easier and more efficient for corporate and trading clients to manage
their finances.
These included a number of new features on BARX Barclays Capital's E-commerce
trading platform:
The Chi-X Exchange, which allows clients to trade European equities up to 10 times
faster and up to 10 times cheaper than on traditional equity exchanges
A new dual-currency investment pricer on BARX FX, which is of special interest to
private banks, third-party intermediaries and any clients seeking to enhance the
yields on their multi-currency portfolios
The ability to trade Barclays Global Investors cash funds in Europe and Asia
A new multi-product trading platform for Barclays Wealth private investors
An online trading system for fixed income, which includes the Research RVI tool,
offering interactive access to Barclays Capital's research/analytics covering over
5,300 bonds and volatility data for the major currencies
The launch of PowerFill Orders a world first for FX trading. This new tool allows
clients to choose whether to execute their trades passively or aggressively
Futures SpreadTrader, a new algorithmic trading tool.
We are offering new solutions to help clients meet their needs.
19%
Increase on year-on-year savings income growth in the UK in 2007.

Case study
Workplace banking in our retail and commercial banking businesses
Workplace banking is one of the most effective ways in which we're growing our
business in new markets.
The basic idea is to use an established commercial banking relationship with a
major company to structure a special suite of services for its employees. This
provides employees with tailored products and services from a trusted bank, making
it more convenient for them to manage their money.
Absa uses kiosks to deliver workplace banking
This might include a customised electronic banking portal, and different services
tailored for different levels of employee, from standard to Premier accounts.
We're already doing this in markets as diverse as South Africa, Spain, Portugal and
Italy, and a number of emerging markets including Kenya.
19%
increase in year-on-year savings income growth in the UK in 2007.

Case study
Business Clubs
In many of the countries in which we operate, our commercial banking operations
have developed Business Clubs to help members network and share best practice. The
services these clubs offer are tailored to the specific markets in which they
operate. In developing countries, such clubs can help businesses learn new ideas
and gain access to new markets.
What our customers say: An interview with Dr J N Ng'ethe, a member of the Kenya
Business Club.
Dr Ng'ethe founded Metropolitan Chemists Ltd, a high-tech pharmaceutical company in
Nairobi, with his wife in 1985. The company manufactures human and animal medicines
and has a large research department. It faces many of the same challenges other
aspiring businesses face in emerging markets, as well as specific issues relating
to the cost of electricity and the presence of illegal chemists in the Kenyan
market.
Business Club members get to see how businesses have developed in other markets.
Dr Ng'ethe's ambition is to build on the success of his manufacturing operation,
broadening its range, and making his company a regional and national player. Here
he explains how Barclays Business Club in Kenya is helping him.
How long have you been a member of Kenya Business Club?
I am a founding member of the club and have been banking with Barclays since 1987.
556
UK branches refurbished in 2007
Do you see a relationship between being a club member and the growth of your
business?
Yes, definitely! I must say that Barclays as a bank is a very good listener, and
sensitive to input from members about improving the club. Barclays has been
extremely supportive of the growth of my business. The relationship with the club
has been very productive. I am witnessing growth in my business as Barclays grows.
Have you participated in any of the club's international trips?
Through the club I have visited China, Malaysia, Singapore and Thailand.
What benefits did you derive for your business from these trips?
This has greatly enhanced my capacity in terms of technological transfer and
enabled me to establish useful links for my business. In the mid-90s, I started
importing drugs from China for my pharmacy. When I went on the Business Club trip
to China, I found out that I can also source the machinery for my manufacturing arm
there, and this has helped me save on costs. My scope has broadened, my business
has greatly benefited, and I believe I will grow to be a market leader in the
manufacturing of pharmaceutical products.
Do you attend the club seminars?
Yes, every seminar I have been able to attend has increased my knowledge of better
business management. Another direct benefit is that I can network with other club
members helping me acquire new customers.

Case study
Barclays Capital's work on emissions trading
Barclays Capital is a leading player in the EU emissions trading market.
We've been able to employ our expertise in commodity trading and risk management to
help clients across the world understand and manage their carbon risk.
This has included developing forward contracts and derivative products. A good
example is our Global Carbon Index, launched in December 2007. This is the first of
its kind, and tracks the returns of the credits in a number of carbon trading
schemes, including Certified Emissions Reductions and EU Allowances.
Our work concentrates in four important areas of the emissions market:
Market access and intermediation
Risk management and structuring
Financing and investment, and
Investor products.
The Emisions Trading Scheme provides a price incentive to reduce CO2.
644
Branches and sales centres added in 2007 outside the UK.
Our record so far
We are the largest intermediary in the carbon market and were the first to set up a
dedicated carbon trading desk.
We've traded more then 600 million tonnes of carbon credits, with a total value of
around $14billion.
We hold the directorship of the International Emissions Trading Association.
We helped standardise the secondary Certified Emissions Reduction market with the
launch of the 'Standard CER Forward Agreement'.
In the long run, we hope the trading of emissions will make a real contribution to
the challenge of climate change, but this will only be fully realised if the
successful EU scheme can be extended.
As Louis Redshaw, head of environmental markets at Barclays Capital says: "The only
credible solution to delivering the required global emissions reductions is a
global cap-and-trade scheme. This would create the potential to set very long-term
caps on emissions. And, at a stroke, industry everywhere would face the same price
for the 'common currency' of emissions."

Case study
Barclays Capital's work on emissions trading
Barclays Capital is a leading player in the EU emissions trading market.
We've been able to employ our expertise in commodity trading and risk management to
help clients across the world understand and manage their carbon risk.
This has included developing forward contracts and derivative products. A good
example is our Global Carbon Index, launched in December 2007. This is the first of
its kind, and tracks the returns of the credits in a number of carbon trading
schemes, including Certified Emissions Reductions and EU Allowances.
Our work concentrates in four important areas of the emissions market:
Market access and intermediation
Risk management and structuring
Financing and investment, and
Investor products.
The Emisions Trading Scheme provides a price incentive to reduce CO2.
644
Branches and sales centres added in 2007 outside the UK.
Our record so far
We are the largest intermediary in the carbon market and were the first to set up a
dedicated carbon trading desk.
We are the largest intermediary in the carbon market and were the first to set up a
dedicated carbon trading desk.
We've traded more then 600 million tonnes of carbon credits, with a total value of
around $14billion.
We hold the directorship of the International Emissions Trading Association.
We helped standardise the secondary Certified Emissions Reduction market with the
launch of the 'Standard CER Forward Agreement'.
In the long run, we hope the trading of emissions will make a real contribution to
the challenge of climate change, but this will only be fully realised if the
successful EU scheme can be extended.
As Louis Redshaw, Head of Environmental Markets at Barclays Capital says: "The only
credible solution to delivering the required global emissions reductions is a
global cap-and-trade scheme. This would create the potential to set very long-term
caps on emissions. And, at a stroke, industry everywhere would face the same price
for the 'common currency' of emissions."

Customer service
Sustainability must be underpinned by consistently high standards of customer
service.
We're learning from the best in other service industries. Our Premier offering in
Europe established its first flagship outlet in Porto, Portugal quite a different
experience from a traditional branch. Service managers, hired from top-class
hotels, run the facilities in these centres which have dedicated desks to speed up
basic transactions, meeting areas complete with Wi-Fi access and playzones for
children. Outlets like these are aimed at serving the growing number of 'mass
affluent' consumers customers who want more personal attention and increasingly
sophisticated services.
Customers also expect to be treated fairly and we faced criticism in March 2007
when investigative UK TV show Whistleblower took a different view. A full enquiry
resulted and although no serious failings were found, lessons were learned.
Our new Premier branch in Porto is the first of our flagship branches.
Across our UK banking business, wide-ranging customer service initiatives have
brought measurable improvement. Lean, a programme originally developed by Toyota,
and used by much-admired service companies such as Amazon, focuses ruthlessly on
the customer and cuts out waste. We are using Lean to reduce the number of steps in
our processes, and the time they take, improving customer service. An example of
its success is the reduction in mortgage processing time from application to offer
from 11 days to 5.
Real Retail
In the UK, branch managers play a pivotal role uniting all branch colleagues into
one local team including personal bankers and financial specialists such as
mortgage and local business advisers. Branch teams use locally tailored market
information to serve the needs of their local customers. This is part of a
programme called Real Retail. We also launched a programme to phone new UK
customers to welcome them to Barclays and check they are happy with our products
and service. We called 55,000 customers in 2007, checking that they understood
their new accounts and had received all the supporting materials such as cards and
PIN numbers. UK Retail Banking's Chief Executive, Deanna Oppenheimer says: "We
start from the principle that every customer deserves the best from Barclays. Real
Retail is about creating the sort of culture where all our employees take equal
responsibility for delivering the best possible service."
91%
Our new security device, PINsentry, made online customers feel safer by cutting
online fraud losses by 91%.

Key Performance Indicators

UK retail and commercial banking
Successfully transferred 4.6 million accounts, 3.3 million customers and ?12billion
in balances from Woolwich to Barclays systems.
943
Relationship Managers and Relationship Directors in our commercial bank in the UK
91%
Our new security device, PINsentry, made online customers feel safer by cutting
online fraud losses by 91%
In the UK, Barclays Commercial Bank is a gateway through which customers can access
the products and expertise of other businesses in Barclays Group. For example:
40%+
50%
of Barclays Commercial Bank customers also have a Premier Banking relationship
of Barclays Commercial Bank customers are also customers of Barclaycard Business
Commercial Cards
In 2007, UK Retail Banking entered into:
More than one million new relationships Served:
9 million customers more than 200 million times in branches
4.5 million customers more than 40 million times in contact centres
2.7 million customers more than 130 million times online.
Average branch queuing times in the UK (minutes)
05 06 07
We're working to reduce these further.
Real Retail Branch teams use locally tailored market information to serve the needs
of their local customers.
86% 96%
of branch managers believe that the new approach will deliver significant
performance improvements
said their teams better understand the link between customer experience,
performance and incentives
UK Retail Banking customers Key facts 2007 2006 2005
Personal Customers Number of UK current accounts (millions)11.3 11.5 11.1
Number of UK savings accounts (millions) 11.1 11.0 10.8
Total UK mortgage balances ?69.8bn ?61.7bn ?59.6bn
Local Business Number of Local Business customers 643,000 630,000
630,000
Decrease reflects the consolidation of Woolwich and Barclays current accounts.

Barclays Commercial Bank customers Key facts 2007 2006 2005

Number of customers 81,000 77,000 86,500
Number of colleagues 8,400 8,100 7,800
Note
Reduction in 2006 relates to customers transferred to Barclays Capital.
Barclays UK Commercial Bank Portfolio
1 Business Services, Healthcare and Logistics 14%
2 Property and Construction 14%
3 Manufacturing 12%
4 Public Sector 10%
5 Retail and Wholesale 10%
6 Financial Services 8%
7 Hospitality and Leisure 5%
8 Leveraged Corporate 3%
9 Private Finance Initiatives 3%
10 Media 3%
11 Leveraged Financial Sponsor 2%
12 Agriculture 2%
13 Professionals 2%
14 Technology and Telecoms 2%
15 Private Individuals 1%
16 Miscellaneous 1%
17 Social Housing 9% Total: 100%

Customer service case studies

Services for Polish residents in the UK
Services for Indian people resident in the UK
Security and fraud prevention
Listening to customers at Barclaycard US
A new Investment Philosophy
Using customer feedback to develop products and services
Continuing to serve our customers in Zimbabwe

Case study
Services for Polish residents in the UK
More than one million Eastern Europeans have moved to Britain over the past three
years, many of them from Poland.
Barclays has recruited around a third of this new market as customers, by tailoring
our services to their specific needs. We've done this by hiring Polish speakers in
areas with large Polish populations such as west London, and by holding open
evenings for Poles to advise on setting up a business or buying a house.
Mdwisz po polsku w domu? Mow po polsku w swoim banku
We are tailoring our services for the Polish market.

Case study
Services for Indian people resident in the UK
In 2007, we launched a range of products specially designed for first and second
generation Indian citizens currently living in the UK (known as Non-Resident
Indians or NRIs).
NRI customers can access these products in more than 100 Barclays branches across
the UK, increasing access to this type of banking which was previously available
only from Indian banks. One of our products is the Non-Resident External Savings
Account with which customers can manage all their rupee transactions in India from
the UK, using their overseas earnings. The Non-Resident Ordinary Savings Account
allows customers to manage their rupee income in India. Both accounts come with ATM
cards, free cheque books and free pay orders from India. Customers can move funds
from their UK current account to their NRI savings account in India free and within
24 hours.
There are also two rupee term deposit accounts and a Foreign Currency Non-Resident
Term Deposit account, for foreign currency savings customers who do not want to
convert into rupees. Interest earned on these balances has no tax deducted at
source, and is easily moved back to the UK.
Deepak Ahuja, Head of NRI Banking UK says: "There are more than one million non-
resident Indians in the UK. A lot of them want to provide financial asistance to
their family and friends in India, and invest in the growing Indian economy. Thanks
to our extensive branch network and international expertise, we can help NRIs meet
their own needs in an effective and convenient way."
We launched a new range of products and services for Indian customers.
96%
said their teams better understand the link between customer experience,
performance and incentives
Case study
Security and fraud prevention
Our first priority is the security of our customers' money. Research shows that
consumers are concerned about fraud, so we are constantly working to improve the
security of our services.
Throughout 2007, we helped the UK government and police by continuing to detect and
report fraud.
Our anti-fraud work operates on a number of fronts, including transaction profiling
to help detect and reduce fraud. This prevents many acts of fraud being completed,
protecting customers from the inconvenience of sorting out such issues. Our
customers are also protected by a fraud guarantee -if they are innocent victims of
fraud who have not been negligent they receive a full, and often immediate, refund
of any lost money.
PINsentry has helped to reduce online fraud losses by 91%.
In 2007, we launched PINsentry a new level of security for online banking that uses
chip and PIN technology. By the start of 2008, more than one million customers had
PINsentry devices. These are small card readers that work with a customer's chip
and PIN card to generate a unique passcode for each online banking session. As a
result of this and other initiatives, we've cut online fraud losses by 91%,
compared with an industry-wide reduction of 33% reported by APACS, the UK payments
association.

Case study
Listening to customers at Barclaycard US
In 2007, members of the Barclaycard US Executive Committee began a new programme
-sitting with Customer Care representatives to monitor card member calls.
The call-monitoring sessions are part of a new weekly programme during which
leaders monitor and evaluate calls, and compare observations, to improve the
service offered to our customers.
Call-monitoring sessions help improve customer service.
50%
of Barclays Commercial Bank customers are also customers of Barclaycard Business
Commercial Cards.

Case study
A new Investment Philosophy...
Barclays Wealth has recently introduced a new approach that will allow personal
clients access to hedge fund strategies previously available only to institutional
investors.
The new 'Investment Philosophy' is a framework for investing, covering a much wider
array of products, which can be precisely matched to clients' needs. Our clients
are demanding ever more diverse and sophisticated approaches to investment, and we
have the skills and experience to help them make the most of the growing range of
opportunities in today's complex financial markets.
The process begins with a Financial Personality Assessment, an exclusive new
technique that provides a detailed profile of every client's individual
characteristics, including their attitude to risk. This gives a much richer and
subtler analysis of their priorities than traditional profiling.
The data from the assessment is used to construct a personal portfolio, which will
typically include a cash element, a core portfolio of assets, and a proportion of
more illiquid investments tailored to the client's specific needs. Private equity,
property, and hedge funds can play a role here.
Mark Kibblewhite, Managing Director and Head of UK Private Banking, Barclays Wealth
says: "The introduction of this exciting new approach represents our commitment to
understand client needs better than anyone in the industry; to deploy the most
sophisticated investment techniques and strategies, and to deliver through leading-
edge products and technology. We are setting the pace for change by introducing
scientific ways to help our clients articulate their true expectations and then
meet these with a tailored, innovative framework that delivers appropriate market
returns."
New approaches to reporting
Barclays Wealth is introducing a new style of reporting for its personal clients.
This is the first step towards a fully-integrated approach that will show clients
their total holdings with us, across all types of products from cash to equities.
Barclays Wealth's new Investment Philosophy precisely matches client need.
40%
of Barclays Commercial Bank customers also have a Premier relationship.
The new reports combine data from seven different systems and put it on a single
page. Each asset class is then broken out and analysed to whatever level of detail
the client has requested.
The aim is to continue to improve the reports and add more information based on
what clients tell us they want..

Case study
Using customer feedback to develop products and services
We use consumer research to help We conduct market research to understand the needs
of our customers so we can develop us develop our pradiicts and better products and
services. services.
Since March 2007, in our UK retail bank, we've run monthly customer service panels
with our retail customers. At each panel we tested three propositions with them to
get customers' feedback on the products we were hoping to develop.
This research was complemented with 50,000 short interviews with retail and
commercial customers and more than 3,000 half-hour interviews to gain even greater
insight into consumer views. Our research helped us understand the relationship
customers want with their bank and we have used this to develop segmented offers
and to prioritise investment activity for the next three years.
Barclays Wealth's approach
A core business belief of Barclays Wealth is that we will only achieve our
strategic goals by being demonstrably client-centric. We recognise the need to
improve client service and, to that end, have changed the way we do things
including high-level structural changes, modifications to individual business
processes, and improving the overall quality of our employees.
We have also:
Introduced substantially enhanced client reporting, designed around the principles
of clarity, simplicity, flexibility and timeliness
Proactively reached out to clients, where a product experience has not lived up to
their (or our) expectation.
We use a variety of alternative methods of measuring qualitative outcomes to
supplement the internal controls and governance processes in place. Depending upon
need, these methods involve either the regular use of external assessment or
opinion to validate our internal view, or ad hoc exercises to obtain external views
on business proposals. Examples of both are as follows:
All Barclays Wealth businesses are required to conduct half-yearly client surveys
Each of our structured products designed for the mass market are scrutinised by an
independent external consultancy which scores them on value, transparency and
potential returns. If our proposed products do not score highly enough, they are
not launched.
We use client focus groups to test significant new marketing proposals
Where we develop literature for new product types, we subject it to user groups to
comment on whether they believe the literature to be clear and useful this
currently involves colleagues and their relatives.
We recently conducted a survey of 6,000 retail structured-product clients to obtain
their feedback on our product range, product literature and service levels and an
indication of what motivates their investment decisions. The 800 responses received
have provided a rich source of information, which has been used to drive our
product development.
Case study
Continuing to serve our customers in Zimbabwe
Barclays has been in Zimbabwe since 1912 and is committed to supporting our 150,000
customers and 1,000 colleagues in what is clearly a difficult operating
environment.
Barclays is the majority owner of Barclays Bank of Zimbabwe with a 67.8% stake.
Barclays Bank of Zimbabwe Limited is a company incorporated under the laws of
Zimbabwe with its own governance structure. It has been listed on the Zimbabwe
Stock Exchange since the early 1990s.
Barclays Zimbabwe's participation in the Agricultural Sector Productivity
Enhancement Facility has been questioned in the media recently. This is a lending
scheme for agricultural customers, and does not involve lending to the government.
It is organised by the Reserve Bank of Zimbabwe and all local and foreign banks are
required to participate.
Colleagues at a Barclays branch in Kadoma, Zimbabwe.
Like the other banks in Zimbabwe, Barclays must comply with the regulations of the
Zimbabwe Reserve Bank in relation to treasury bills and government bonds, which
occasionally involves purchasing these instruments. However, we comply with EU
sanctions regarding Zimbabwe.

Broadening our reach

We have over 30 million customers in more than 50 countries and we are targeting
the markets where we believe there will be higher growth.
We opened 644 branches and sales centres outside the UK, expanding our distribution
in Europe and moving into mass-market services in emerging markets. In Africa we
now have products and services that reach across all sectors of society.
The rationale behind this is clear: in Africa alone about 90% of the population is
thought to have no access to banking. Being part of that introduction to banking
services from the start allows us to build customer trust and retain those new
customers as they migrate to more sophisticated products and services. This has
been successful in our South African business, and in 2007 we've been applying the
same thinking in other African countries, and in India.
We launched retail banking in India including a suite of current account, credit
cards, savings and loans products. We also began to develop mobile phone banking
which was launched in 2008. With the country's economy growing at around 9% a year
and only one bank branch for every 16,000 people, there is a huge unmet demand for
banking services. Mobile phone banking reduces the costs and bureaucracy of opening
bricks-and-mortar outlets while making a full range of banking services accessible
and affordable for many customers for the first time, especially in rural areas.
China Development Bank
Our partnership with China Development Bank (CDB), announced in July 2007, provides
unprecedented access to jointly deliver financial services to the rapidly growing
Chinese market. CDB can now access our extensive international franchise to help
Chinese companies with their international commerce. We are sharing best practice
on customer service, product development, risk management and corporate governance
with our new partner.
Our service to start-up business customers also builds customer loyalty. Providing
the funding to kick-start a small business is the key to sustainable growth and
poverty alleviation in many emerging markets.
Our retail banking in India offers innovative products and services such as mobile
phone banking and our no frills account.
600
Kenyan business people took part in overseas trade visits organised by Barclays
Business Club which helped them make new relationships.
From microfinance to Barclays Business Clubs, we make generations of business
banking experience available to entrepreneurs and small firms. In Kenya alone, more
than 10,000 club members benefit from preferential pricing, educational events, and
dedicated Business Development Managers. In 2007, we organised trade visits to
potential markets such as China, India, Turkey and Egypt and many members
established profitable trading links as a result. Clubs in Ghana, Zambia, and
Botswana were established in 2007.
Distribution points (branches and sales centres)
2007 2006 change
Western Europe 798 653 +145
Emerging markets 550 214 +336
Absa 1,001 838 +163

Key Performance Indicators

Number of UK branches
In Barclaycard UK half of new accounts are driven by the Internet
1,733 2,014 2,029
2007 2006 2005
In the UK the number of branches reduced as a result of the integration of
Woolwich.
Emerging markets and Europe
1million+ 550 704
New customers added in Distribution points in GRCB ATMs in GRCB Emerging
GRCB Emerging Markets in Emerging Markets, up from Markets, up from 295 in
2007 more than 100% growth 214 in 2006 2006
In UAE, 15-minute account opening with fully-functional debit card and cheque book.
150,000 798 764
Accounts opened in India in Distribution points in GRCB ATMs, in GRCB Western
first six months following Western Europe, up from 653 Europe, up from 665
launch in 2006
GRCB Western Europe added 75,000 new savings clients with balances of ?2.3billion
following targeted savings campaigns across all four countries.
14%
Increase in customer numbers in GRCB Western Europe. Total has now reached one
million
Absa
Absa Card ranks number two in South African market by numbers of cards in issue
Absa continued its focus on increasing footprint: 163 new distribution centres, 473
new ATMs
Micro-lending launched as a separate Business Unit in February 2007
Sales of R1,617m achieved in 2007 equating to 7% share of sector.
Key facts 2007 2006 2005
Number of branches 837 800 759
Number of sales centres 164 38 41
Number of distribution points 1,001 838 800
Number of ATMs 7,884 7,411 5,835
Number of retail customers (millions) 9.7 8.3 7.7
Number of corporate customers 100,000 84,000 79,000
Barclaycard
In Barclaycard UK half of new accounts are driven by the internet.
Key facts 2007 2006 2005
Number of Barclaycard UK customers (millions) 10.1 9.8 11.2
Number of retailer relationships 93,000 93,000 93,000
UK credit cards average outstanding balances ?8.4bn ?9.4bn ?10.1bn
UK credit cards average extended credit balances ?6.9bn ?8.0bn ?8.6bn
International average outstanding balance ?3.9bn ?2.9bn ?2.1bn
International average extended credit balances ?3.3bn ?2.5bn ?1.8bn
International cards in issue (millions) 8.8 6.4 4.3
Secured lending average outstanding balance ?4.3bn ?3.4bn ?2.2bn
80% 10.1million 8.8 million
Cards issued in overseas UK Barclaycard customers International cards
markets in 2007
Barclays Wealth
Key facts_2007_2006_2005
Total client assets
?132.5bn
?116.1bn
?97.5bn

Broadening our reach case studies

The recent crisis in Kenya
New credit cards in Europe

Case study
The recent crisis in Kenya
Barclays is the largest bank in Kenya, our biggest market on the continent outside
South Africa.
Like all the other banks and businesses in the country, our operations were
affected by the political unrest in late 2007 and early 2008. As an international
operation we were able to cope better than others that only operate within Kenya.
We took steps to protect our colleagues in Kenya.
Our primary concern, as always, was the safety of our colleagues and customers, and
we acted quickly to understand the situation and take action.
We set up a crisis management committee and made sure all employees were accounted
for and offered practical support to those whose homes were damaged or not
accessible during the crisis. We then closed some branches temporarily, especially
in Kisumu and Eldoret, calling on other Barclays operations in Africa to keep some
services going through the crisis.
We contributed ?200,000 to the Red Cross Appeal, and many of our employees are
working closely with the Kenyan Red Cross teams in the affected areas.
It's hard to know what the long-term effects of the unrest will be, and whether
lending will become tighter as a result. However, we're in the country for the long
term and we're confident we can manage the situation and continue to operate
effectively in Kenya.
Helping SMEs cope with future disruption
Small businesses often operate within tight financial constraints meaning any
disruption can hit their profitability and threaten the survival of their business.
The recent events in Kenya have obviously been a challenging time for SMEs. As part
of our support for the small business community, we have sponsored a countrywide
seminar programme together with the International Finance Corporation (IFC), for
our Business Club members. The programme of 16 seminars runs between May and June
2008, covering topics such as business crisis management, continuity planning, and
business recovery. Our sponsorship of these events is part of our commitment to
help the SME sector develop across Africa.
550
distribution points in emerging markets.

Case study
New credit cards in Europe
In Germany, we're offering a range of new credit cards in a market dominated by
debit cards.
Our four new cards are aimed at different segments of the market. There's also the
Netto dual-function card which operates as an EC/Maestro card and also a
Mastercard. Traditionally, German shops tend to accept EC cards only so this is a
major breakthrough into a new market. Netto is the discount brand of Germany's
biggest grocery chain EDEKA. There are 1,280 Netto shops with 180 new outlets a
year planned.
In April, the remember card was launched in Norway with the slogan 're:member
you're in charge!'. The card is part of the EnterCard range offered through
Barclaycard's joint venture with Swedbank. It has been available in Sweden since
September 2006. Remember lets consumers borrow in a flexible and controlled way.
Customers can choose different insurance packages and additional services.
We developed a range of new cards for the German market
75%
of new Barclaycards in 2007 were issued outside the UK.

Becoming more inclusive

Inclusive banking is about appealing to the broadest possible range of customers,
understanding the types of customer we have in all our markets, and adapting our
business model and products to suit them.
Our work on financial inclusion combines commercial and social objectives. Peter
Kelly, Head of Financial Inclusion, explains: "This integrated approach provides
appropriate and affordable products as well as investment in financial education to
help people really benefit from those products."
An individual's journey from financial exclusion to inclusion may have several
stages requiring different support and services from different institutions. We're
developing basic banking and microfinance products to help customers through this
journey, working with intermediary organisations including susu collectors
supporting market traders in Ghana, and credit unions in the UK.
Using our expertise
Governments in emerging markets are promoting financial inclusion and need banks
like Barclays, with the expertise they have gained in other markets, to put these
plans into action. The Reserve Bank of India requires 32% of lending by foreign
banks to go to priority sectors such as microcredit, agriculture and housing.
Absa serves more than five million low-income customers in South Africa, including
beneficiaries of social grants through AllPay. Absa also provides Mzansi, Flexi and
Club Accounts as basic bank accounts for low-income customers.
In 2007, the number of UK customers with our basic Cash Card Account increased by
42% to 660,000. In response to feedback from consumer organisations, we are
training branch colleagues to better meet the needs of basic banking customers.
A Banking Code Standards Board's mystery shopping survey found our performance on
the basic bank account was "generally better than the average". A subsequent visit
in 2008 showed that our performance had improved.
Sm-ipay
AllPay part of Absa helps low-income families access state benefits.
90,000
We gave 90,000 UK start-ups reductions in day-to-day banking costs worth up to ?
25m.

Key performance indicators

Our lending decisions are based upon customers' ability to repay, not where they
live. These tables show the extent of our business in deprived areas.
Support for small UK businesses in deprived areas (a)
As at 31 December 2007
The figures below refer to firms with a debit turnover of less than ?1million.
% share
All small Small business business customers in
customers deprived areas 2007 2006 2005
Number of business current accounts 705,599 16,999 2.4 2.4 2.3
% in overdraft 21.9 26.8 2.9 2.9 2.7
Number of business deposit accounts 283,579 6,454 2.3 2.6 2.4
Number of outstanding loans (b) 89,187 2,420 2.7 2.7 2.6
Number of new loans in 2007 (c) 17,917 475 2.7 2.9 2.6
Loan and overdraft balances ?9,467m ?204m 2.2 2.2 2.1
Current and deposit balances ?11,250m ?259m 2.3 2.4 2.5
Ratio of savings to lending 1.19 1.27
Business start-ups in 2007 90,671 2,856 3.1 3.1 2.9
% of end-year business customers 12.5 15.8
Notes
(a) 'Small businesses' are those meeting the definition used by the British
Bankers Association. 'Deprived areas' are the 5% most deprived postcodes in each of
England, Scotland and Wales based on the most recent indices of deprivation for
each country.
(b) Including commercial mortgages.
(c) Excluding commercial mortgages.
In 2007, we gave:
9,696 2,287
Small business loans of less than Small businesses loans of less than
?20,000, excluding commercial ?5,000, excluding commercial
mortgages mortgages
Support for personal customers in deprived areas
2007 Analysis Barclays
UK Deprived accounts areas (d)
%
2006
Barclays
UK Deprived accounts areas %
Number of current accounts 11,303,136 247,366 2.2% 11,467,960 252,496
2.2%
Number of Cash Card Accounts 660,661 36,217 5.5% 464,508 28,890
6.2%
Cash Card Accounts as %
of all current accounts 5.8% 14.6% 4.1% 11.4%
Notes
(d) 'Deprived areas' are the 5% most deprived postcodes in each of England,
Scotland and Wales based on the most recent indices of deprivation for each
country.
?14.8m
of support to independent money advice services since 2004
?5.5m
of support to independent money advice services in 2007

Becoming more inclusive case studies

Microfinance in emerging markets
Basic banking in South Africa and India
Black Economic Empowerment
Economic growth and good governance in Africa
Our work on HIV/AIDS in Africa
Financial inclusion partnerships in the UK
Lending and support to start-ups and individuals in deprived areas of the UK
Support for female and ethnic minority entrepreneurs in the UK
Our work with social housing firms and charities in the UK and South Africa

Case study
Microfinance in emerging markets
What is microfinance?
Microfinance is providing financial services to people who cannot access formal
banking services. These services often include very small loans, typically less
than $100, savings and insurance products. The basic principle of microfinance was
endorsed by the G8 leaders in June 2004 as: "building financial systems that serve
the poor".
Susu collectors operate in markets in Ghana. (Picture by Candace Feit)
In many cases, being able to manage their savings, however small, and to borrow to
establish a business can help lift people and their families out of poverty.
The size of the market
Although it's difficult to get accurate statistics, some estimates suggest that
there are more than a million small businesses in emerging markets. The number of
micro-enterprises is thought to be even larger. This is a huge potential market for
us, which is why we're developing a wide range of microfinance services for these
entrepreneurs.
36,217
Cash Card Accounts in deprived areas.
The first phase of our microfinance plans cover Ghana, Kenya, India and Zambia, and
we're looking to expand in Botswana, Uganda and Egypt. In 2007, we appointed a new
head of microbanking and expanded our team in Ghana. We also appointed new heads of
microfinance in India, Kenya and Zambia.
South Africa
As many as 97% of micro-entrepreneurs in South Africa have no access to loans a
huge market opportunity of up to R2.85billion (?180million).
Absa has been a pioneer of basic banking in South Africa, with more than 4.5
million people on low incomes using its savings accounts, transaction accounts and
loans.
In 2007, we extended our commitment in this market by launching Absa's first
dedicated micro-enterprise unit for micro-enterprises. It has a range of products
tailored for micro-businesses at different stages of their development including
Absa savings and transaction products.
Yanda loans are aimed at new clients with no previous track record. Loans start at
R300 (?19) and go up to R8,000 (?500). If credit is managed well and repaid on
time, the client can access larger-scale financing. We may implement this more
widely in Africa.
Group Lending loans focus on rural areas and use a Grameen Bank approach, providing
loans to groups of women who support each other with repayment.
Retail Enterprise Loans are aimed at larger enterprises, and are more like
conventional loans. They range from R2,500 to R25,000 (?155 to ?1,550).
Gerhard Coetzee, General Manager, Micro-Enterprise Finance, in Absa says: "We are
entering a market with huge potential for reducing poverty levels in South Africa
by bringing funding to micro-entrepreneurs operating in disadvantaged communities
around the country. Previously ignored by the system, these entrepreneurs need
loans as small as R400 to establish themselves and even create opportunities for
others."
Since the start of the Khula Credit Indemnity Scheme 10 years ago, Absa has
provided R420m in funding to more than 2,700 business enterprises who would
otherwise have been unable to start or expand their businesses due to lack of
capital or collateral.
Ghana
Our collaboration with the traditional 'susu' collectors in Ghana is now in its
third year. As much as 80% of the 21 million people in Ghana are engaged in the
informal sector. Many people have no access to formal banking services, instead
they use the country's traditional forms of community banking.
There are more than 4,000 susu collectors who collect a fixed amount of money from
their clients daily, keep it safe for them, and then return it at the end of each
month, minus one day's contribution. Collectors usually have between 400 and 2,000
clients. The susu industry is estimated to be worth around ?75m.
Barclays continues to provide deposit accounts to the collectors, and loans they
can in turn lend to their clients. The number of collectors on our programme has
increased from 100 in two regions in the first year to more than 500 across the
country in 2007. Around 70% of the susu collectors have attended Barclays training
sessions.
An independent study of the programme's impact showed that 72% of susu collectors
increased the number of clients they have since joining our programme, which has an
81% satisfaction rate. On the client side, 61% said their lives had improved and
93% of those in business recorded an increase in sales and income.
The programme is now being expanded to other intermediaries such as credit unions
and trade associations. Our aim is to help more than a million people access
appropriate financial services.

Case study
Basic banking in South Africa and India
Across Africa, we offer a range of different basic banking accounts, tailored for
different customers and markets.
South Africa
Absa pioneered basic banking in Africa, and now has 33% of the South African
market. We are now using its expertise to bring the concept to other countries
across the continent.
Our first year of retail banking in India was one of significant growth.
Absa's principal basic accounts are Mzansi and Sekulula. These accounts are
targeted at people earning less than R3,000 (?187) a month and with very limited or
uncertain income. This currently accounts for 23.6 million consumers, or 76% of the
overall retail bank market.
Mzansi is an industry-wide initiative, launched in 2004. It's a very basic
transaction account that offers easy access, with a low minimum opening deposit of
R10 (?0.62p) and no requirement for a permanent postal address. For consumers on
very low incomes this is important as they may be forced out of housing at short
notice when they are not earning. The number of accounts grew by 8% from 529,436 to
569,900 in 2007.
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Cash Card Accounts in deprived areas
Sekulula is unique to Absa and is a debit card that allows people on social welfare
to access funds at any ATM. Cardholders can also deposit money into their Sekulula
account. The number of accounts grew by 12.2% from 612,707 in December 2006 to
683,576 in December 2007.
AllPay is also unique to Absa, and is specially designed for those on welfare. It
was set up in 1997, and currently distributes social grants to Western Cape, Free
State, Gauteng and Eastern Cape. Account holders can access their money in cash
from a designated service point or using a Sekulula debit card to make purchases or
withdraw cash from an ATM.
AllPay beneficiaries have access to a helpline and advice on both financial
services and HIV/AIDS. The success of the account is due in part to the respect for
the customer that is the basic principle of AllPay, and which can be summed up in
the Nguni word 'ubuntu'. It's a word which translates as "I am because you are,"
meaning that we all need other people to be fulfilled.
Other basic accounts include the Flexi Account, which grew by 9% from 3,601,671
accounts to 3,941,022 in 2007, and the Club Account, which grew by 27% from 18,445
accounts to 23,394.
In 2007, Absa spent R18.8million (?1.2million) on consumer education to improve
financial literacy. This was done through financial seminars, face-to-face training
in communities, and print communications.
India
Barclays recently launched a new 'no frills' account in India. More than 2,000 had
been opened by the end of 2007.
The account offers all the benefits of basic banking and requires an average
quarterly balance of no more than 350 rupees (?4). Any balances over this amount
are automatically swept into a savings account at the end of each month.

Case study
Black Economic Empowerment
Black Economic Empowerment (BEE) is a key part of the South African government's
plan to transform the country and ensure that everyone has an opportunity to share
in the wealth it is creating.
In October 2003, Absa was a signatory to the Financial Sector Charter (FSC). This
deals with issues such as employment, equity ownership, and how banks work with
their supply chains. Specific targets are set in a wide variety of areas. Each
financial institution is given a rating each year, from A-E, providing an
indication of the extent to which the firm is setting a more inclusive agenda
through its practices.
We made significant progress on these issues in 2007. For instance, the proportion
of black people in senior positions increased at junior, middle and senior
management levels, as well as on the Absa board. The number of black suppliers in
Absa's supply chain increased, and a number of new products and services were
launched that specifically address BEE objectives.
In the wider economy, Absa continued to provide finance for low-income housing,
agriculture, and small and medium enterprises.
Absa is making good progress to meet its BEE targets.
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Cash Card Accounts in deprived areas
Absa's FSC performance in December 2006 and December 2007 was assessed by an
external auditor. Absa scored 86.2 points and was an A-rated company in 2006.
Our FSC scorecard for 2007 was 92.53 meaning we have maintained our A rating. Absa
is also on course to meet its FSC targets for 2008.

Case study
Economic growth and good governance in Africa
Our ?2.6billion investment in Absa, South Africa's largest bank, in 2005 was our
largest purchase in Africa. However, we also have a presence in 10 other African
countries, with around 2.3 million accounts and more than 14,000 employees.
We're committed to long-term sustainable development in Africa and believe this
will only be achieved through the benefits of business investment in which the
people of Africa share. Africa's huge potential can only be unlocked if business is
able to develop profitably on the continent, and economic participation grows. To
do this, business will have to work in partnership with government and NGOs.
Our guiding principles
Our priorities in Africa are:
To develop local capabilities and local management
To develop sustainable African businesses using our commercial banking expertise,
together with capital funding for infrastructure projects
To provide accessible, affordable and understandable retail banking products and
services to those who need and want them.
Kenya is one of 10 African countries in which we operate.
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Cash Card Accounts in deprived areas
Our presence in Africa is about business, not philanthropy. However, we believe
that developing successful, commercially viable banks in Africa will also
contribute to sustainable development.
Nurturing a new economy
We're also working to develop the broader African economy. We see the development
of an effective small business sector as key to Africa's long-term success. We're
helping to develop these businesses and increasing our focus on non-traditional
lending and microfinance.
Our involvement also extends into African capital markets, where the financing we
arrange helps develop Africa's infrastructure. This will help the continent become
a more attractive business environment.
We are also committed to ethical development. We actively contribute to the
development of better governance and stronger civil institutions through our work
on industry groups and self-regulatory initiatives.
A leadership role
By observing the highest standards of governance wherever we operate in the world,
we provide a model for others to follow driving up local standards. A number of our
board members in Africa and other emerging markets use the experience they gain
working with Barclays to help the other businesses they are involved with. In this
way, we are helping to spread best practice.
Barclays was the only financial institution to support the Commonwealth Business
Forum in Kampala, Uganda, in 2007. Our Group Vice Chairman Gary Hoffman spoke to
delegates, including Commonwealth Heads of Government, on how global business can
help to strengthen local economies.
In South Africa, Absa's work on financial inclusion, basic banking and social
housing all make a substantial contribution to sustainable growth. We also support
the Accelerated and Shared Growth Initiative for South Africa, which aims to halve
poverty and unemployment by 2014. Absa believes that helping ordinary South
Africans accumulate 'personal capital' (savings, investments, property) is the best
and most sustainable way to achieve this.
Developing Africa's economy for Africans
Our development in Africa relies on the ability and talents of our African
employees. We have African leadership teams and boards for our African businesses
people who know and can work collaboratively and ethically with local and national
African governments. We also insist that succession plans for our business are
based on developing local expertise through effective training.

Case study
Our work on HIV/AIDS in Africa
In Africa, HIV/AIDS is the biggest single threat to our own employees, the future
of the economy, and the development of a thriving business sector.
In South Africa alone:
We run programmes to help employees find out their HIV status.
5.3 million adults and children are living with HIV 2.9 million women aged 15-49
are living with HIV 230,000 children under 15 years are living with HIV.
We're tackling this on three fronts with our own colleagues, with our customers,
and in the wider community.
Our colleagues
We offer voluntary testing for HIV and counselling to all employees. This is free
and confidential, as is our employee helpline. Our 'Live Well, Work Well' programme
is one of the most successful employee HIV/AIDS programmes in Africa.
Our customers
Turning to our customers, we know that small and medium-sized businesses are
bearing the brunt of the epidemic. Technical know-how, experience, and management
skills are hard to replace even for big concerns in Africa, but for a smaller firm
the loss of one key employee can be catastrophic for the whole business. This is
where we've been able to help. For example, we've worked with the Afrikaanse
Handels Instituut on a "know your status" campaign and tool kit for small
businesses. This makes it easier and more affordable for employers to help their
employees manage their HIV status.
Our communities
The third element of our HIV/AIDS programme happens out in the community. HIV/AIDS
is the overwhelming priority of our community programme across Africa, with nearly
1% of our profits going straight to HIV/AIDS programmes.
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Cash Card Accounts in deprived areas
This includes education and counselling, donations of medical equipment, support
for AIDS orphans, and funding for projects.

Case study
Financial inclusion partnerships in the UK
Financial inclusion is still an important issue in the UK with an estimated three
million people without bank accounts and up to eight million using high-cost
lenders.
Our financial inclusion programme in the UK is long established. We work to improve
the supply of basic products and services and to empower people to understand and
use financial services confidently.
We provide funding for face-to-face money advice provided by Citizens Advice.
Financial exclusion is a complex issue which cannot be solved by one organisation
alone. So in 2007, we continued to develop our partnerships with other
organisations including community finance and advice agencies, housing associations
and charities.
Working in partnership
As the leading corporate funder of credit unions and CDFIs (Community Development
Finance Institutions) we believe these local organisations provide a simple first
step into formal financial services.
Our partnership with the CDFA (Community Development Finance Association) on the
Step Change programme has developed, taking this programme into a second year with
a further ?120,000 in support. This is providing capacity building and grant
support for specific areas of need identified by the sector, including loan
delinquency, board governance and social reporting.
In 2007, our Vice Chairman Gary Hoffman accepted a role on the Third Sector Credit
Working Group, a sub-group of the government's Financial Inclusion Taskforce,
leading to greater engagement with government on issues relating to better access
to affordable credit. We also continued our support for credit unions and ABCUL
(Association of British Credit Unions Ltd), supporting their strategy work.
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Cash Card Accounts in deprived areas
"When the UK government engaged banks to support the scaling up of the credit union
sector Barclays was quick to respond with support for a series of high profile
roadshows to develop a strategy for scaling up," said Mark Lyonette, Chief
Executive of ABCUL and a member of the UK Financial Inclusion Taskforce.
He added: "Combined with its ongoing support for the PEARLS financial monitoring
system, Barclays continues to stand out among the largest banks as a committed
supporter of strengthening credit unions."
Kitty Ussher, the UK government's Economic Secretary to the Treasury, said:
"Barclays continues to display real leadership in promoting financial inclusion,
particularly in viewing it as a competitive, as well as a social, concern."
In 2008, this work will continue when Gary Hoffman joins the Financial Inclusion
Taskforce. Engaging with others
We've worked with a number of partners such as The Passage, Help the Aged, and
other groups to make the opening of bank accounts easier for excluded people such
as the homeless, and ex-offenders. In 2008, we will work with The Passage on a
research programme to help it develop its own financial inclusion work.
We have been involved at a national and regional level in the UK government's 'Now
Let's Talk Money Campaign', raising awareness of our commitment to financial
inclusion and the development work on our basic banking product, the Cash Card
Account.
Housing associations continue to be important partners in tackling exclusion and in
2007 we ran a successful workshop for a number of them. This was designed to share
best practice and expertise on financial inclusion. By December 2007, we had
arranged 'introducer schemes' for seven housing associations. These help tenants
open basic bank accounts with us. Around 70 new accounts were opened by the end of
the year as a result.
We're also working on a programme with Leonard Cheshire Disability to help people
with disabilities set up their own businesses. Over three years we are investing ?
2.6million, and many of our employees will be volunteering as mentors.

Case study
Lending and support to start-ups and individuals in deprived areas of the UK
Despite the credit crunch, in the last three months of 2007 we agreed an average of
91 new loans per working day to small firms with a turnover of less than ?1million.
This added up to ?500m of new money for the sector.
We also have just under 17,000 business current accounts in deprived areas, and our
small business loans and overdrafts in these areas totalled ?204m at the end of
2007.
Tracy Mackness, centre, won our Trading Places award.
For some years we've run local seminars aimed at new entrepreneurs, focusing on
those in deprived areas of the UK. In 2007, we ran 870 'Let's Talk Start Up in
Business' events attracting more than 8,000 delegates. Around 63% of these events
were held in deprived neighbourhoods.
We also provide a programme of 'Let's Talk' events for existing businesses,
ensuring that they have access to support and advice on a range of business-related
matters. In 2007, we ran 39 events across the country, attracting 3,674 businesses.
Around 28% of these events were run in deprived areas.
We also ran the Barclays Trading Places Awards for the second year. The awards are
aimed at individuals who have overcome major adversity by setting up in business.
They are supported by the government and run with major partners including The Sun
and The Prince's Trust. Last year, Tracey Mackness won the top prize for her
efforts to develop a successful sausage business following a period of mental
illness and imprisonment.
Other facilities for small business include the Small Firms Loan Guarantee scheme,
which is a joint venture between the Department for Business, Enterprise and
Regulatory Reform and a number of major lenders, including Barclays. It aims to
help small enterprises that may not be able to obtain loans because they lack
assets to offer as security or a track record. The government effectively acts as
guarantor for up to 75% of the loan.
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Case study
Support for female and ethnic minority entrepreneurs in the UK
All our business relationship managers are expected to understand the make-up and
characteristics of their local communities, and be active within them.
Branches in specific areas are provided with an information pack that gives
detailed demographic information about the local area. We also run targeted events
aimed at entrepeneurs from the South East Asian community.
We've given our salespeople special training about business practices in South East
Asia, and key cultural differences and characteristics. Much of this training was
held at local Asian community sites such as Sikh temples and mosques. The feedback
scores we've received as a result are among our highest ever.
In November 2007, we sponsored the Hindu Forum of Britain Diwali event at the House
of Commons in London, and a 'How to take your business to the next level seminar'
at Wembley, London.
Diwali celebrations at our Southall branch with local MP Virendra Sharma (right).
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Cash Card Accounts in deprived areas
We also monitor our lending to starts-ups by women, and have stepped up our work to
encourage women in business in the last year. We've recently agreed to work with
Professor Sue Marlow of De Montfort University and Professor Sara Carter (a member
of the new Women's Enterprise Task Force) on a joint project on women, banking and
business. They are expected to report later in 2008.

Case study
Our work with social housing firms and charities in the UK and South Africa
In the UK in 2007, we lent ?1.6bn to finance social housing, which brought our
total lending to the sector to ?7.3bn.
We have a 14.2% share of this sector, and 400 housing associations bank with us.
We are also one of the main financiers of housing associations, lending them more
than ?6bn.
During 2007, we arranged finance of more than ?1.5bn for associations to fund low-
cost home ownership, and a wide range of other projects including key worker
housing, student accommodation and privately rented homes.
Working with AmicusHorizon
In 2007, we committed to supporting a 'Bank Accounts for Tenants' programme for
AmicusHorizon -an umbrella group for a number of social housing landlords. The
initiative was designed to provide practical local support and financial education
for up to 3,000 tenants and young people facing financial exclusion.
The programme, jointly funded by AmicusHorizon and Barclays, will operate initially
for two years. One of the aims of the project is to train tenants to become
community finance champions. They will provide specialist advice, training and
support to new residents, and ensure they have access to basic bank accounts and
the skills they need to use them.
We work with AmicusHorizon on a number of other community initiatives. These
include a new outdoor sports facility at Murston in Kent, and the development of a
community sports club through Barclays ?30m community sponsorship programme, Spaces
for Sports.
Delivering better value for the charitable sector
We strive to provide the best banking and fund management services for our
charitable clients to help them better achieve their charitable objectives.
According to CaritasData, in 2007 more large UK charities banked with us than any
other bank. We were bankers for 28 of the top 100 UK registered charities ranked by
total annual income and 5 of the top 10 fundraisers. In 2006, the Charity Fund
Management Survey said we managed more charitable funds than any other UK financial
institution. In September, Barclays Wealth was managing ?2.3bn on behalf of 1,700
UK charities.
Absa's goal is to deliver financing for 100,000 homes by 2010.
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Cash Card Accounts in deprived areas
As well as providing banking and investment management services for charities, we
also provide them with practical advice. We work with various stakeholders and
organisations from the sector, and have a programme of charity events planned to
help charities improve their management. In October 2007, we held a fraud awareness
seminar at our headquarters in London with speakers from Barclays Fraud Team and
the Charity Commission. Our clients wanted to learn from our best practice in this
area. Other events are planned including guest speakers from Barclays Wealth, the
Institute of Philanthropy, Philanthropy UK, and other professional advisers to
charities such as solicitors and accountants.
Absa's work on social housing in South Africa
Absa lent a total of R940million to finance social housing in 2007. This covers
loans to more than 8,200 people in low-income groups.
Absa also has a subsidiary dedicated to sustainable social housing projects, the
Absa Development Company. This business funds developments that combine affordable
homes with commercial and light industrial units and social amenities such as
schools, creches, churches and parks.
The Absa Development Company supports the South African government's 'Breaking New
Ground' policy. This aims to use the provision of decent housing to help create
jobs, stimulate economic growth, combat crime, and eliminate social division.
Absa's goal is to deliver financing for at least 100,000 homes by 2010. The
emphasis in 2008 will be as follows:
9,400 units in Kagiso, Mogale City Local Municipality, Gauteng
8,200 units in Klarinet, Mpumalanga
5,000 units in Ndlambe, Eastern Cape, and
7,200 units in Chief Albert Luthuli Park, Ekurhuleni.
Barclays also sponsored the Innovation Ghana conference in 2007, bringing together
business, government and academics to find a solution to the country's housing
shortage.

LOAN STAR
Responsible lending
The level of unsecured consumer debt remains a high-profile issue in a number of
countries, but attention turned from consumer lending in the UK to mortgages in the
USA as the credit crunch hit in late 2007. Barclays Capital subsidiary HomEq
Servicing became a founder member of the HOPE NOW Alliance formed in the USA in
October to help struggling homeowners meet rising mortgage payments.
In the UK, our policy on mortgage arrears is to contact customers early to ensure
that arrangements to help them are put in place quickly. Our Loan Star loan
offers a
competitive interest rate.
Following criticism of Shared Appreciation Mortgages (SAMs), products we sold in
1998, we introduced a hardship scheme for customers voluntarily. The scheme offers
SAMs holders who are suffering hardship, interest-free loans to move into a more
appropriate property. Those who do not wish to move can apply for a one-off, non-
repayable grant to adapt their current home. So far, 80% of applications for
assistance have been approved based on the criteria for the scheme.
Strict lending criteria
Although the market for commercial loans became tighter in 2007, UK Business
Banking relaunched as Barclays Commercial Bank in November and remained very much
'open for business' for our corporate customers.
Barclaycard in the UK enforced strict criteria on new card applications, using a
scoring system that takes more than 400 variables into account when assessing
applicants' ability to manage debt. Around 50% of applications are declined as a
result.
During 2007, we continued to work on the behavioural data-sharing collaboration we
helped initiate with APACS, the UK payments association. Sharing this additional
data will give lenders a greater pool of information on which to base lending
decisions and identify customers in danger of future debt problems.
?3.5m
is being spent on the Barclaycard Horizons programme helping low-income parents out
of debt and poverty.

Key performance indicators

UK credit cards
?8.4bn
Average outstanding balances in 2007
?9.4bn
Average outstanding balances in 2006
?6.9bn
Average extended credit balances in 2007
International credit cards
International cards in issue in 2007
?8.0bn
Average extended credit balances in 2006
8.8 million 6.4 million
International cards in issue in 2006
?3.9bn
Average outstanding balances in 2007
?2.9bn
Average outstanding balances in 2006
?3.3bn
Average extended credit balances in 2007
Barclaycard secured lending
?4.3bn
Average outstanding loans in 2007
?2.5bn
Average extended credit balances in 2006. As our international cards business has
grown so has our total lending on cards
?3.4bn
Average outstanding loans in 2006
Retail impairment charges on loans and advances fell 11% (?204m) to ?1,605m
(2006: ?1,809m).
Barclaycard impairment charges improved 21% (?229m) to ?838m (2006: ?1,067m)
reflecting reduced flows into delinquency, lower levels of arrears and lower
charge-offs in UK cards.
Impairment charges in UK Retail Banking decreased by ?76m (12%) to ?559m (2006: ?
635m).
Our specialist UK business support team helps businesses in financial difficulties
get back on track:
Businesses supported Success rate
2007 568 82%
2006 400 80%
Mortgages
Barclays mortgage customers in GRCB Western Europe
Italy France I Portugal I Spain
Through Banca Woolwich.
Mortgage loan-to-value ratio UK (%)
Loan to value ratio on the mortgage book Industry average
05 06 07
Industry figures from the Council of Mortgage Lenders, 2008.

Responsible lending case studies

Launch of Fair & Square
Our new Financial Support Team
The mortgage market in the UK and Western Europe
Supporting our customers

Case study
Launch of Fair & Square
Fair & Square is a new proposition in the UK secured lending market. It offers a
straightforward product, simply explained, with a competitive interest rate and no
hidden charges.
Fair & Square is aimed at consumers who want to manage their borrowing more
effectively. More than 750,000 people in the UK could reduce the rate they are
currently paying on unsecured debts and Fair & Square was established to help them
do that.
Challenging preconceptions
Fair & Square is challenging the preconceptions about secured lending among
consumers and the media. It aims to make this sort of loan a normal and affordable
way to manage debt. As unsecured debt becomes tighter and more expensive, it offers
real consumer choice, a 30-day 'cooling-off period, and one of the lowest early
redemption charges on the market.
Neil Radley, Managing Director of Barclaycard Secured Lending says: "Secured loans
are often viewed as lending of last resort it's a view that's outdated and we aim
to change it. For people with other debts at high interest rates, secured loans
should at least be on the consideration list. A secured loan managed well is far
better than unsecured borrowing managed poorly."
Fair & Square sits alongside, FIRSTPLUS, which serves a different segment of the
market.
FAIR&S
Fair & Square offers to lower the cost of unsecured debt.
?3.5m
is being spent on the Barclaycard Horizons programme helping low-income parents out
of debt and poverty.

Case study
Our new Financial Support Team
During 2007, Barclaycard subsidiary FIRSTPLUS introduced a Financial Support Team
to help customers facing problems with their debts.
The team deals with accounts before they fall into arrears and customers in
financial difficulty can call the team for help before they miss a payment.
The team provides support to customers and advises them on prioritising their
debts. Examples of support offered are Term Extensions (extending the term of the
customer's loan to reduce the monthly contractual payment on the account), Payment
Holidays and Repayment Plans.
The Financial Support Team also calls customers identified by Credit Risk as having
a higher chance of falling into arrears (through analysis of the customer's account
and other financial circumstances). These calls help educate customers about
managing their finances and keeping repayments under control.
In 2007, we reduced our maximum loan-to-value (LTV) ratio at FIRSTPLUS from 125% to
100%.
In July, we introduced our new Arrears Management Policy to help customers in
arrears improve their situation and reduce the need for further action. As a
result, we have introduced practices such as more flexible payments and extending
the term of loans to reduce arrears.
firstplus
FIRSTPLUS launched initiatives to help customers in financial difficulty.
?3.5m
is being spent on the Barclaycard Horizons programme helping low-income parents out
of debt and poverty.

Case study
The mortgage market in the UK and Western Europe
We are the seventh largest mortgage lender in the UK, and offer both residential
and buy-to-let mortgages under the Woolwich Mortgages brand name.
A Barclays branch in Portugal.
In 2007, our mortgage business continued to grow through our focus on delivering
long-term value to our customers.
Our approach means that we don't operate in the sub-prime market. Generally our
loans are to consumers who've had no payment arrears in the last year, no more than
three months' arrears in the last three years, and no defaults or County Court
Judgments during the same period. During 2007, Woolwich mortgages were available
for up to 95% of the value of the property for residential loans, and 85% for buy-
to-let. However, the majority of our loans were for lower loan-to-value
percentages, and most of our customers are experienced borrowers. In 2007, our
proportion of arrears and repossessions was lower than the market average. When
customers fall behind with their payments, we work with them to find a fair way to
resolve the situation. Repossession is always a last resort.
Long-term value
Our range of mortgages is available to both new and existing customers, and is
designed to offer long-term value with lifetime trackers, long-term fixed rates and
offset mortgages. Consumers can choose the product that best suits them. Some of
our mortgage deals have application fees. Products that start with a short-term
fixed rate generally revert to a tracker rate after the initial period. We always
try to keep our customers when their loans come to an end, and contact them to
explore what products they might want.
Plans to repay
We assess whether mortgage applicants can afford their loans by going through a
process of credit scoring. This takes into account net monthly income and other
regular credit commitments and outgoings. We also look at the implications of any
possible rises in interest rates. We do not offer loans on a self-certification
basis. We only offer interest-only mortgages if applicants can demonstrate that
they have plans in place to repay the capital at the end of the mortgage term. Low-
risk loans with a low loan-to-value percentage are offered a simplified, fast-track
approval process.
Rigorous
Our businesses in GRCB Western Europe continue to increase their rigorous credit
assessments for mortgage applications, seeing this as the best way to cut the
number of accounts that go into arrears.
European markets have slightly different approaches to mortgages than in the UK.
For example, in Spain, Portugal and France, more than 90% of our mortgages have
variable rates, so these customers are not facing the same issues as fixed-rate
customers in the UK.
?3.5m
is being spent on the Barclaycard Horizons programme helping low-income parents out
of debt and poverty.
In 2007, our business in Portugal significantly improved mortgage processing times
by re-locating all back-office colleagues to one site. We also instituted an
account manager system which means each new customer is given a single point of
contact in Barclays.

Case study
Supporting our customers
In 2007, we offered special support to our business customers in rural areas of the
UK whose businesses were affected by foot and mouth disease. We also offered help
to businesses which suffered in severe floods.
We offered a financial support package to all our customers in flood-affected
areas, including repayment holidays on existing and new loans, and extensions to
overdraft facilities.
Chris Grigg, Chief Executive, Barclays Commercial Bank, says: "Many businesses in
flooded areas were severely affected. We wanted to help wherever possible and as
quickly as possible to prevent any cash flow issues and keep our customers in
business."
Foot and mouth
When foot and mouth broke out again in 2007, the UK-wide ban on moving livestock
meant sales were delayed and animals couldn't be sent to market. We knew many of
our agricultural customers would face cash flow difficulties as a result, and put
together a support package to help them.
This included repayment breaks on existing loans for an initial six-month period,
the offer of new loans, and extended overdraft facilities for essential animal feed
supplies.
We helped our business customers in flood-affected areas.
?3.5m
is being spent on the Barclaycard Horizons programme helping low-income parents out
of debt and poverty.
Martin Redfearn, Barclays National Agricultural Specialist says: "2007 was a
difficult and stressful year for the farming industry with the floods and the added
issue of foot and mouth. Barclays is absolutely committed to supporting its
customers and these measures helped them through this difficult time."

Investment management
Barclays Global Investors (BGI) is one of the largest asset managers in the world
with more than $2trillion under management. Much of this money is invested in
tracker funds including $60billion of environmental and ethical investments.
BGI is the world's largest manager of exchange-traded funds (investment vehicles
that can be traded like equities) under the iShares brand name. iShares allow
individual and institutional investors the flexibility to invest across a broad
range of indices, including some focusing on environmental, social and governance
criteria, such as the iShares KLD Select Social Index Fund, iShares XEN Jantzi
Social Index Fund and the Dow Jones EURO STOXX Sustainability 40. The take-up of
green products is growing slowly but we think it is important to develop and offer
them to our clients. BGI evaluates environmental, social and governance criteria
just as we examine other potential sources of long-term value for companies.
iShares allow investors the flexibility to invest across a broad range of indices.
Corporate Governance
We promote strong corporate governance in companies in our investment portfolios as
a key mechanism for protecting shareholder value for our clients. Our votes at
company AGMs reflect this approach, as does our engagement with those companies and
within the wider shareholder community.
We regularly engage with companies on issues that could have a significant impact
on the value of our clients' holdings. We do this at face-to-face meetings with
senior management and board members or through written communication. We support
initiatives within the shareholder community to promote long-term value for
clients.
BGI is active in a range of corporate governance organisations including the
International Corporate Governance Network, the Council of Institutional Investors,
the Stanford University Institutional Investors Forum, the Australian Investment
and Financial Services Association, and the National Association of Pension Funds
in the UK.
324
We increased the number of iShares funds we offer globally from 191 to 324.
Key performance indicators
Barclays Global Investors 2007 2006 2005
Net new assets in period: ?42bn ?37bn ?48bn
Assets under management (US$): 2,079bn 1,814bn 1,513bn
indexed 1,225bn 1,108bn 980bn
iShares 408bn 287bn 193bn
active 446bn 419bn 340bn
Net new assets in period (US$) 86bn 68bn 88bn
Number of iShares products 324 191 149
Number of institutional clients 3,000 2,900 2,800

Case study
iShares using alternative investment criteria
In 2007, we launched a number of different iShare products that use indices with
alternative investment criteria. By offering these kinds of funds, we provide our
clients with options to balance their social objectives with their investment
objectives.
For example, in 2007 we acquired the iShares Dow Jones EURO STOXX Sustainability 40
from Indexchange. It enables investors to profit from the largest sustainably
operating companies in the Eurozone, where the index components are weighted in
line with the "degree of sustainability". The Dow Jones EURO STOXX Sustainability
40 Index offers a consistent, flexible and investable blue-chip representation of
the largest sustainability leaders in the Eurozone, in terms of long-term economic,
environmental and social criteria.
Using exchange-traded funds as building blocks, customers can spread the risk of
individual companies, entire sectors or even whole countries to minimise the
possibility of suffering losses. Our iShares team is constantly developing new
products to meet the needs of our customers.
Index disclaimers
'iShares' is a registered trademark of Barclays Global Investors, N.A.
All other trademarks, servicemarks or registered trademarks are the property of
their respective owners. (c) 2008 Barclays Global Investors Limited. Registered
Company No. 00796793. All rights reserved.
j iShares
iShares products help customers spread their risk.
?42bn
Net new assets in 2007 financial year

Risk management
Our approach to risk management across the Group helped us maintain our performance
during one of the toughest years for banks in recent times. In the UK, our
conservative approach to lending helped us achieve an average loan to value (LTV)
on new mortgage business in 2007 of 54%. Across the existing UK mortgage book the
LTV for 2007 was 33%. In Barclaycard, stricter lending criteria helped profit grow.
Our Brand and Reputation Committee, a sub-committee of the Group Executive
Committee, met six times during the year and discussed issues ranging from Barclays
presence in Zimbabwe to new areas of commodities business and Barclaycard's fee
structure. Sir Nigel Rudd, Barclays Deputy Chairman and a Non-Executive Director on
the Board, chairs the committee. Its role is to identify and manage issues that
could have a significant impact on Barclays reputation.
We're proud to have co-founded the Equator Principles which have changed the
operation of the project finance market since 2003, and in 2007 we've continued to
lead on their development. As the Chair Bank for 2007/08, we are playing a central
role in promoting the Principles at international events. Our own guidelines for
assessing social and environmental risk go beyond the Principles, extending into
other larger non-project credit facilities.
Our Environmental Risk team screens project finance deals, including those in the
oil industry.
Training
During 2007, 65 employees in Hong Kong, Jakarta, Singapore, Lisbon, London, Paris
and New York were trained to identify different environmental risks in 10 sectors,
including agriculture, mining, and oil and gas, and to follow our policies and
procedures for managing them. Our internal environmental risk guidelines were also
reviewed and updated.
New deals are assessed by our credit teams, the lending manager, and the
Environmental Risk team. If any social and environmental risks are identified, we
work with the client to determine whether those risks can be managed or mitigated,
and what changes or covenants need to be incorporated into the loan documents.
54
project finance deals were considered by our Environmental Risk team, up from 36 in
2006.
This process worked for the $870million Bujagali hydropower project in Uganda. This
deal, partly financed by the World Bank and a consortium of private sector
institutions including Absa, recently won Project Finance magazine's 'African Power
Deal of the Year' award.

Key performance indicators

Project Finance deals Barclays Group
A Higher Risk Category B C Medium Lower Risk Risk Total 2007 Total 2006
Total 2005
Number of project finance deals 7 18 29 54 36 68
Deals completed or pending 4 12 29 45 30 43
of which, number where environmental and social related changes were made 4 12
29 45 30 N/A
Deals considered, but not participated in 3 6 0 9 6 25
Projects referred from EU 5 9 24 38 25 58
Projects referred from Africa 2 1 4 7 5 8
Projects referred from Asia Pacific 0 4 1 5 3 2
Projects referred from North America 0 4 0 4 3 0
Environmental risk-management training 2007 2006
Number of employees trained 65 122
Project Finance deals by sector
Sector 2007 2006
General manufacturing 3 0
Infrastructure (including dams) 9 3
Mining and metals 6 3
Oil and gas 4 3
Power generation 16 14
of which fossil fuels 7 8
of which non fossil fuels 9 6
Service industry 10 11
Utilities and waste management 5 1
Chemicals, pharmaceuticals manufacturing and bulk storage 1
1
Total 54 36
Our guidance notes cover the following sectors, and a number of sub-sectors within
them:
Agriculture and fisheries
Metals and mining
Oil and gas
Power generation, supply and distribution
Chemicals, pharmaceuticals manufacturing and bulk storage
General manufacturing
Utilities and waste management
Infrastructure
Service industry
Forestry and logging.
Risk management case studies
Our pioneering research with the London Accord
Managing environmental risk in the commercial bank in the UK

Case study
Our pioneering research with the London Accord
The London Accord
There's been a great deal of debate about what businesses can do to reduce carbon
emissions, but less on what they need to do to adapt to the climate changes we
already face.
During 2007, Chris Bray, Barclays Head of Environmental Risk Policy Management,
worked closely with the climate adaptation consultants Acclimatise as part of a
wider initiative by the London Accord, a coalition of banks, researchers, academics
and NGOs.
The overall report produced by the London Accord looked at the investment
consequences of a rising carbon price. Barclays contribution was new research on
how a changing climate could affect the way banks assess credit risk.
Barclays worked closely with the London Accord.
This research looks not just at climate risks but opportunities, and how different
sectors will be affected by changing weather patterns, heightened threats to
physical assets and infrastructure, changing consumer demand, and a growing
scarcity of natural resources, whether locally or regionally.
Chris says: "We deliberately concentrated on a wide range of sectors, not just
those obviously affected by climate change, such as energy, but those where the
impacts are more complex, such as tourism. There are many ways we could move this
thinking forward in 2008; my own view is that we'll have to ensure a balance,
addressing the potential commercial impacts of a changing climate, while gaining a
better understanding of the timescales involved."
9
project finance deals rejected because of our screening process.

Case study
Managing environmental risk in the commercial bank in the UK
All loans by our commercial bank are considered against our environmental risk
criteria.
All Barclays Commercial Bank advances are assessed for environmental risk by our
Relationship and Credit Risk Teams who are supported by an Environmental Risk
Associate Credit Director.
In 2006, we improved our processes by developing a bespoke environmental screening
product, Barclays SiteGuard, to assess any environmental risks on commercial land
and property offered as security for a loan. This online system is used by our
panel of valuers partly to look at a site's commercial history and its potential
for contamination, in addition to the implications of its current or intended
commercial use. In 2007, approximately 3,700 such sites were screened via Barclays
SiteGuard. Of these, 950 cases were flagged as requiring further action and
referred directly to the Environmental Risk Associate Credit Director for review.
Recommendations were made to mitigate risk, or enhance opportunity, as appropriate.
Our knowledge of environmental risk is leading to commercial opportunities and, in
2007, we launched an environmental insurance product for businesses, based on our
Barclays SiteGuard report.
In the UK, our commercial bank assesses environmental risks when making advances.
54
project finance deals were considered by our environmental risk team, up from 36 in
2006.

Targets and performance

Summary of commitments and progress Sustainable bank:
2007 Commitment Update on 2007 Commitment
Expand branch and cash machine network in South Africa. By the end of 2007, Absa
had a total of 7,884 cash machines and 1,001
distribution points.
Our GRCB Emerging Markets business, which operates in Africa, the Middle East and
India increased the total number of ATMs to 704, up from 295 in 2006. It also
increased the number of distribution points to 550, up from 214 in 2006. Absa added
163 new distribution centres, and 473 new ATMs.
Increase take-up of Mzansi basic bank account in South Absa increased its
Mzansi accounts to 570,000.
Grow basic banking services targeting disadvantaged Absa was able to achieve this
success through its continued focus on
people. core channels such as expansion of its footprint with new points of
presence, particularly in previously disadvantaged areas, leveraging its brand
sponsorships such as the Absa Cup and the Premiership League (PSL) that are
relevant to the mass market.
The proportion of black people in senior positions increased at junior, middle and
senior management levels, as well as on the Absa board. The number of black
suppliers in Absa's supply chain increased, and a number of new products and
services were launched that specifically address Black Economic Empowerment
objectives. Target Cash Card customer satisfaction score of 89%. Cash Card
satisfaction survey achieved 86%.
Reach 500,000 people through microbanking in Ghana. Reached 280,000 market
traders through susu collectors alone.
Established strategies to reach more people through other intermediaries such as
trade associations and credit unions. Play a leading role in driving sustainability
in the credit union We provided significant input in 2007 into UK government
work in
sector to reduce financial exclusion. this area.
Continue environmental and social risk training programme. 65 employees in Hong
Kong, Jakarta, Singapore, Lisbon, London, Paris,
and New York were trained in the identification of risks in 10 sensitive sectors,
and our policies and procedures for managing them. Complete the Barclays/Woolwich
branch and infrastructure Transferred 4.6 million accounts, 3.3 million
customers and ?12 billion in
integration programme. balances from Woolwich to Barclays systems.
Maintain momentum on customer service and satisfaction. Launched various
initiatives such as Lean and Real Retail focused on
efficient, quality-driven customer service. Drive progress on data-sharing
initiatives in responsible In Barclaycard we continued to work on the
behavioural data-sharing
lending. Continue data review to ensure we make the best collaboration we helped
initiate with APACS, the UK payments
credit decisions for our customers. association.
Develop electronic information to help customers make Barclaycard US continued to
implement its 'credit on the web' for new
informed decisions. credit card customers and offered eight different
programmes to assist
card holders facing difficulties in making payments.
Significant growth in branch and cash machine network across our African
businesses.
Continue progress towards the achievement of Black Economic Empowerment targets in
South Africa.
Develop further environmental products for personal customers.
Launched products such as Barclaycard Breathe and Barclaycard Business Sustain.
Responsible global citizen:
2007 Commitment Update on 2007 Commitment
Increase participation in employee community programmes Almost 44,000 employees
participated in 2007, an increase of 31%. by 5%.
Drive globalisation of community programme, increasing ?13.5 million was
invested in community programmes outside the UK in
non-UK funding to 25% of total. 2007, 26% of the total.
30% of community investment to be focused on Banking on 29% of funds invested in
Banking on Brighter Futures. Brighter Futures theme.
Improve employee opinion scores to high-performing norm. Steady progress with one
area improving to exceed HPO, one area
increasing to match HPO and one area remaining at HPO.
Improve satisfaction scores for disabled, gay and lesbian The gap between
satisfaction scores for disabled, gay and lesbian
colleagues and improve disability access to products and colleagues and other
groups persisted in 2007. delivery channels.
Increase the proportion of women in senior grades. The number of senior women
executives increased from 12.2% in 2006
to 13.7% in 2007.
Continue programmes towards 2010 targets CO2, energy, We have put in place several
initiatives to improve our resource efficiency
water, waste. Establish new programmes to eliminate and waste management, such as
rain water harvesting at Barclaycard
sources of waste. and 'reverse vending' machines at Barclays Capital in London.
Work towards becoming globally carbon neutral. Source We continued to focus on
increasing our energy efficiency and renewable
renewable energy for international operations. energy purchases, as well as
offsetting the remaining UK emissions.
During 2007, we moved to a renewable contract which increased the proportion of our
total electricity supplied by renewable sources to almost 50% in the UK.
Continue application of questionnaire to medium and highWe held a special forum for
eight major suppliers and identified ways to
risk new and existing suppliers. help them reduce their emissions including
setting up a working group.
Absa adapted the questionnaire to suit suppliers in its market.
Launch employee guide on climate change actions. Worked with publisher Rough
Guides to produce the Rough Guide to
Saving Energy and Reducing Your Carbon Footprint.
Continue to extend the EMS internationally. 83% of our global operations are
covered by an EMS, with environmental
data being received from over 92%. New ISO 14001 certification of EMS was
established in South Africa.
Collaborate with United Nations Environment Programme to We worked with UNEP FI
and a team of 11 other financial institutions to
develop our approach to human rights in risk management. develop an online
resource for bankers on the human rights issues
associated with lending. Additionally, we have represented our sector on the
Business Leaders Initiative on Human Rights.

Targets and performance

In 2008, we will:
Act on customer and client feedback to develop appropriate products and services to
meet different needs. We will also improve employee training and development to
ensure that our people have the know how to understand the needs of our customers
and clients, and how best to serve them.
Explore appropriate ways to help customers who face financial difficulties resolve
their problems.
Continue to find solutions to expand our inclusive banking services in new and
existing markets.
Continue to develop products, like Barclaycard's Breathe, that support
environmental sustainability and develop investment products to help clients
balance their social and environmental objectives with investment objectives.
Extend our programme of employee training in environmental credit risk management,
including the application of the Equator Principles, and continue to develop our
understanding of the impacts of changing climatic conditions on our lending
decisions.
Work with governments and regulators in the UK, EU and US to help them develop a
market-driven approach to carbon emission reduction.
Work on proposals to help strengthen financial stability and develop effective
regulatory frameworks through our continued engagement with governments and other
bodies.
Continue the globalisation of our Community Investment programme, increasing non-UK
funding to 40% of the total. In addition, we will encourage employees to volunteer
a total of 20,000 hours, and assign 45% of community investment to our Banking on
Brighter Futures programme.
Become carbon neutral globally in 2009 and develop low-carbon property design
standards for use in new Barclays buildings.
Share best practice with firms in our supply chain and expand the use of our
supplier questionnaire to promote more sustainable environmental and social
impacts.
Develop diversity strategies and action plans tailored to local markets across our
businesses globally.
$ BARCLAYS
GRI tables
Barclays is committed to the transparency, consistency and accuracy of our
reporting. Therefore, we continue to follow the Global Reporting Initiative (GRI)
Reporting Framework.
This year, we have updated our GRI Index Tables from the 2002 reporting guidelines
to the G3 Indicator protocols, along with the Financial Sector Supplements.
We have provided links to the Sustainability Review 2007, Barclays website, and
Annual Report as sources of disclosures for each of the Performance Indicators.
There are certain areas that are not reported because they are not applicable to
our businesses, or the data is not collected and available in this format.
Key:
AR = Annual Report 2007 (relevant page number) NR = Not Reported
Strategy and Analysis
Section Disclosure Links
1.1 Statement from the CEO CEO introduction
1.2 Description of key impacts, risks and opportunities Sustainability and
Barclays
Profile Section Disclosure Links
2.1 Name of reporting organisation Home page
2.2 Primary brands products and/or services Products and services
2.3 Operating structure of the organisation Business strategy
2.4 Location of organisation's headquarters Home page
2.5 Number of countries where the organisation operates Where we operate
2.6 Nature of ownership and legal form AR (page 284)
2.7 Markets served Our Customers
2.8 Scale of reporting organisation Highlights
2.9 Significant changes during the reporting period regarding size, structure or
ownership AR (pages 56, 130, 212)
2.10 Awards received in the reporting period Awards
GRI REPORT
M
Reporting Parameters
Section Disclosure Links
3.1 Reporting period for information provided Sustainability and Barclays
3.2 Date of most recent report Home page
3.3 Reporting cycle CEO introduction
3.4 Contact point Contacts
3.5 Process for defining report content Home page Sustainability and Barclays
Stakeholder engagement
3.6 Boundary of the report Sustainability and Barclays
3.7 State any specific limitations on the scope of the report Sustainability and
Barclays
3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities Sustainability and Barclays
3.9 Data measurement techniques and the basis of calculations Sustainability and
Barclays
3.10 Explanation of the effect of any re-statements of information provided in
earlier reports Sustainability and Barclays
3.11 Significant changes in the scope, boundary or measurement methods
Sustainability and Barclays
3.12 GRI Context Index Table GRI Tables
3.13 Independent assurance for the report External assurance
Governance, commitments and engagement
Section Disclosure Links
4.1 Governance structure of the organisation Our governance framework
4.2 Indication if the Chair of the highest governance body is also an executive
officer Our governance framework
4.3 Independent and/or non-executive directors Our governance framework
4.4 Mechanisms for shareholders and employees to provide recommendations or
direction to the highest governance body Our governance framework An inclusive
employer KPIs
4.5 Linkage between compensation for members of the highest governance body,
senior managers and executives and the organisation's performance Our
governance framework
4.6 Processes of the highest governance body to ensure conflicts of interest are
avoided Our governance framework
4.7 Process for determining the qualifications and expertise of the members of
the highest governance body Our governance framework
4.8 Internally developed mission and values statements, codes of conduct, and
principles CEO introduction Sustainability and Barclays Policy positions
Sustainable bank Responsible global citizen
4.9 Procedures of the highest governance body for overseeing the organisation's
identification and management of economic, environmental and social performance
Our governance framework
4.10 Processes for evaluating the performance of the highest governance body
Our governance framework
4.11 Precautionary approach or principle Risk management
4.12 Externally developed charters, sets of principles, or other initiatives to
which the organisation subscribes or which it endorses Stakeholder engagement
Our governance framework Equator Principles
4.13 Significant memberships in associations and/or national/international
advocacy organisations Our governance framework Stakeholder engagement
4.14 List of stakeholder groups engaged by organisations Stakeholder engagement
4.15 Basis for identification and selection of stakeholders to engage Stakeholder
engagement
4.16 Approaches to stakeholder engagement, including frequency of engagement
Stakeholder engagement
4.17 Key topics and concerns that have been raised through stakeholder engagement
and how the organisation has responded to those key issues Stakeholder engagement
Economic
Section Disclosure Links
Disclosure on Management Approach Disclosure on management approach Our
governance framework
Goals and Performance Organisation-wide goals regarding performance Targets and
performance
Policy Organisation-wide policies Policy positions
EC1 Direct economic value generated and distributed Economic impact In the
community
EC2 Financial implications and other risks and opportunities for the
organisation's activities due to climate change The environmental services offered
by Barclays Commercial Bank Financing renewable energy New trends in credit cards
Barclays Capital's work on emissions trading Our pioneering research with the
London Accord
EC3 Coverage of organisation's defined benefit plan obligationsAR (pages 206,
212)
EC4 Significant financial assistance received from government NR
EC5 Range of ratios of standard entry level wage compared to the local minimum
wage at significant locations of operation Our new deal on cleaners' pay
EC6 Policy, practices and proportion of spending on locally based suppliers at
significant locations of operation Absa's new supply chain questionnaire Our
policy on child, forced and compulsory labour Black Economic Empowerment
EC7 Procedures for local hiring, and proportion of senior management in locations
of significant operation from local community An inclusive employer An inclusive
employer KPIs
EC8 Development and impact of infrastructure investments and services provided
primarily for public benefit through commercial, in-kind, or pro-bono engagement
In the community In the community KPIs In the community Case Studies
EC9 Understanding and describing significant indirect economic impacts, including
the extent of impacts Economic impact Sustainability and Barclays Broadening our
reach Broadening our reach KPIs Becoming more inclusive Becoming more inclusive
-case studies
Environmental
Section Disclosure Links
Disclosure on Management Approach Disclosure on the management approach The
environment
Goals & Performance Organisation-wide goals set regarding performance
Measuring our impact Targets and Performance 2008 commitments The environment
KPIs
Policy Organisation-wide policies The environment Absa's environmental
strategy and programme Environment Our Policies
Organisational Responsibility The most senior position with operational
responsibility Our governance framework
Training and Procedures related to training and raising awareness Risk
management KPIs
awareness
Monitoring and follow up Procedures related to monitoring and corrective
actions Supply chain Supply chain KPIs Absa's new supplier questionnaire
EN1 Materials used by weight or volume NR
EN2 Percentage of materials used that are recycled input materials NR
EN3 Direct energy consumption by primary energy source NR
EN4 Indirect energy consumption by primary source The environment KPIs
EN5 Energy saved due to conservation and efficiency improvements The
environment
EN6 Initiatives to provide energy-efficient or renewable energy based products
and services, and reduction in energy requirements as a result of these initiatives
The environment The environment case studies
EN7 Initiatives to reduce indirect energy consumption and reductions The
environment KPIs
achieved (additional) The environment case studies
EN8 Total water withdrawn by source (core) NR
EN9 Water sources significantly affected by withdrawal of water (additional)
NR
EN10 Percentage and total volume of water recycled and reused (additional) NR
EN11 Location and size of land owned, leased or managed in, or adjacent to,
protected areas and areas of high biodiversity value outside protected areas (core)
NR
EN12 Description of significant impact of activities, products and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas (core) NR
EN13 Habitats protected or restored (additional) Absa's environmental strategy
and programme
EN14 Strategies, current actions, and future plans for managing impacts on
diversity Absa's environmental strategy and programme Environment Our Policies
Risk management
EN15 Number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations NR
EN16 Total direct and indirect greenhouse gas emissions by weight (core) NR
EN17 Other relevant indirect greenhouse gas emissions by weight (core) NR
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved
(additional) The environment The environment KPIs The environment case studies
EN19 Emissions of ozone depleting substances by weight (core) The environment
KPIs
EN20 NO, SO and other significant air emissions by type and weight (core) NR
EN21 Total water discharge by quality and destination (core) NR
EN22 Total amount of waste by type and disposal method (core) The environment
KPIs
EN23 Total number and volume of significant spills (core) NR
EN24 Weight of waste deemed hazardous under the terms of the Basel Convention
Annex I, II, III or VIII, and percentage of transported waste shipped
internationally (additional) NR
EN25 Identity, size and protected status and biodiversity value of water bodies
affected by reporting organisation's discharges of water and runoff (additional)
NR
EN26 Initiatives to mitigate environmental impacts of products and services and
extent of impact mitigation Our progress towards carbon neutrality The
environment The environment KPIs The environment case studies
EN27 Percentage of products sold and their packaging materials that are reclaimed
by category (core) NR
EN28 Monetary value of significant fines and total number of non-monetary
sanctions for, non-compliance with environmental laws and regulations (core) NR
EN29 Significant environmental impacts of transporting goods and materials used
for organisation's operations, and transporting members of the workforce
(additional) NR
EN30 Total environmental expenditures and investments by type (additional)
Financing renewable energy Progress towards carbon neutrality Our approach to
offsetting
Labour practices and decent work
Section Disclosure Links
Disclosure on management approach Disclosure on management approach Policy
positions Responsible global citizen An inclusive employer
Goals and performance Organisation wide goals regarding performance Targets and
performance 2008 commitments An inclusive employer
Policy Organisation-wide policies An inclusive employer Our policy on
child, forced and compulsory labour
Organisational Responsibility The most senior position with operational
responsibility Our governance framework
Training and Awareness Procedures related to training and raising awareness An
inclusive employer
Monitoring and follow up Procedures related to monitoring and corrective
actions NR
LA1 Total workforce by employment type, employment contract and region An
inclusive employer KPIs
LA2 Total number and rate of employee turnover broken down by age, gender and
region An inclusive employer KPIs
LA3 Benefits provided to full time employees that are not provided to temporary
or part time employees, by major operations An inclusive employer KPIs
LA4 Percentage of employees covered by collective bargaining agreements NR
LA5 Minimum notice period(s) regarding operational changes Policy positions
LA7 Rates of injury, occupational diseases, lost days and absenteeism and number
of work related fatalities by region (core) An inclusive employer KPIs
LA8 Education, training, counselling, prevention and risk-control programmes in
place to assist workforce members, their families or community members regarding
serious diseases (core) Our work on HIV/AIDS in Africa Live Well, Work Well in
Africa An inclusive employer case studies
LA10 Average hours of training per year per employee by employee category (core)
NR
LA11 Programmes for skills management and lifelong learning that support the
continued employability of employees and assist them in managing career endings
Policy positions
LA12 Percentage of employees receiving regular performance and career development
review NR
LA13 Composition of governance bodies and breakdown of employees per category
according to gender, age group, minority group membership and other indicators of
diversity (core) An inclusive employer KPIs
LA14 Ratio of average remuneration of men and women broken down by employee
category (core) An inclusive employer KPIs
Human rights
Section Disclosure Links
Disclosure on management approach Disclosure on management approach Our
governance framework
Goals and performance Organisation wide goals regarding performance Targets and
performance 2008 commitments
Policy Organisation-wide policies Human rights Case studies Human rights
Organisational Responsibility The most senior position with operational
responsibility Our governance framework
Training and Awareness Procedures related to training and raising awareness Human
rights Risk management Equator Principles Business Leaders Initiative on Human
Rights
HR1 Percentage and total number of significant investment agreements that have
undergone human rights screening Risk management KPIs
HR2 Percentage of significant suppliers and contractors that have undergone
screening on human rights and action taken NR
HR4 Total number of incidents of discrimination and actions taken NR
HR5 Operations identified in which the right to exercise of freedom of
association and collective bargaining may be at significant risk, and actions taken
to support these rights NR
HR6 Operations identified as having significant risk for incidents of child
labour and measures taken to contribute to the elimination of child labour Our
policy on child, forced and compulsory labour
HR7 Operations identified as having significant risk of forced or compulsory
labour, and measures to contribute to the elimination of forced or compulsory
labour Our policy on child, forced and compulsory labour
Society Section Disclosure Links
Disclosure on management approach Disclosure on management approach Policy
positions
Goals and performance Organisation-wide goals regarding performance Targets and
performance 2008 commitments
Policy Organisation-wide policies Policy positions
Organisational Responsibility The most senior position with operational
responsibility Our governance framework
Training and awareness Procedures related to the training and raising awareness
Policy positions
Monitoring and follow up Procedures related to monitoring and corrective and
preventive actions Our governance framework
SO1 Nature, scope and effectiveness of any programmes and practices that assess
and manage the impacts of operations on communities Broadening our reach
Broadening our reach case studies Becoming more inclusive Becoming more inclusive
-case studies
SO2 Percentage and total number of Business Units analysed for risks related to
corruption Policy positions
SO3 Percentage of employees trained in organisation's anti-corruption policies
and procedures NR
SO4 Actions taken in response to incidents of corruption NR
SO5 Public policy positions and participation in public policy development and
lobbying Stakeholder engagement
SO6 Total value of financial and in-kind contributions to political parties,
politicians and related institutions by country AR (page 131)
SO7 Total number of legal actions for anti-competitive behaviour, anti-trust and
monopoly practices and their outcomes AR (page 218)
SO8 Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations AR (page 218)
Product responsibility
Section Disclosure
Links
Disclosure on Management Approach Disclosure on management approach Our
governance framework Developing new products and services Customer service
Policy Organisation-wide policies Customer service
Organisational responsibility The most senior position with operational
responsibility Our governance framework
Training and awareness Procedures relating to training and awareness NR
Monitoring and follow up Procedures relating to monitoring and corrective and
preventive actions NR
PR1 Life cycle stages in which the health and safety impacts of products and
services are assessed for improvement NR
PR2 Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services during their
lifecycle, by types of outcome NR
PR3 Type of product and service information required by procedures, and
percentage of significant products and services subject to such information
requirements NR
PR4 Total number of incidents of non-compliance with regulations and voluntary
codes concerning product and services information and labelling, by type of
outcomes NR
PR5 Practices related to customer satisfaction, including results of survey
measuring customer satisfaction Customer service Listening to customers at
Barclaycard US Using customer feedback to drive development of products and
services Stakeholder engagement
PR6 Programmes for adherence to laws, standards and voluntary codes related to
marketing communications including advertising, promotion and sponsorship (core)
NR
PR7 Total number and type of incidents of non-compliance with regulations and
voluntary codes, concerning marketing communications including advertising,
promotion and sponsorship (additional) NR
PR8 Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data NR
PR9 Monetary value of significant fines for non-compliance with laws and
regulations concerning the provision and use of products and services (core) NR
Financial Services Sector Supplement Social Performance Indicators (SPIs)
Section Disclosure Links
CSR1 CSR Policy Home page Sustainability and Barclays CEO introduction
CSR2 CSR Organisation Our governance framework Policy positions
CSR3 CSR Audits External assurance
CSR4 Sensitive Issues Policy positions
CSR5 Non-compliance NR
CSR6 Stakeholder dialogue Stakeholder engagement
INT1 Internal CSR policy Policy positions
INT2 employee turnover and job creation An inclusive employer KPIs
INT3 Employee satisfaction An inclusive employer KPIs
INT4 Senior management remuneration AR (page 144)
INT5 Bonuses fostering sustainable success Our governance framework
INT6 Female/male salary ratio NR
INT7 Employee profile An inclusive employer KPIs
SOC1 Charitable contributions In the community KPIs
SOC2 Economic value added Economic impact
SUP1 Supplier screening Supply chain
SUP2 Supplier satisfaction NR
RB1 Retail banking policy Sustainable banking
RB2 Lending profile Responsible lending
RB3 High social benefit lending Broadening our reach Becoming more inclusive
IB1 Investment policy Risk management
IB2 Customer profile Risk management Our customers Becoming more inclusive -KPIs
IB3 Transactions with high social benefits Broadening our reach Our approach
to offsetting
AM1 Asset management policy Investment management
AM2 Fostering social capital Investment management Investment management
-case study
AM3 SRI oriented shareholder activity Investment management
INS1 Underwriting policy Risk management
INS2 Customer profile NR
INS3 Customer complaints NR
INS4 High social benefit insurance NR
Financial Services Sector Supplement Environmental Performance Indicators (EPIs)

Section Disclosure Links

F1 Environmental policies applied to core business linesEnvironment Our policies
F2 Screening of environmental risks Risk management Managing environmental
risk in the commercial bank in the UK
F3 Threshold(s) for environmental risk assessment procedures Risk management
F4 Monitoring environmental aspects raised in risk assessment process(es).
NR
F5 Improving employee competency in addressing environmental risks and
opportunities Our governance framework Risk management Stakeholder engagement
The environment Engaging stakeholders 2008 commitments
F6 Audits of environmental risk systems and procedures Our governance framework
External assurance
F7 Interaction with stakeholders about risks and opportunitiesStakeholder
engagement Our pioneering research with the London Accord Barclays Capital's work
on emissions trading
F8 Engagement on environmental issues with companies in portfolio Investment
management
F9 Assets subject to environmental screening Investment management
F10 Share voting policy on environmental issues Investment management
F11 AUM with right to vote shares or advise on voting NR
F12 Value of environmental products and services Financing renewable energy
Barclays Capital's work on emissions trading Investment management Our progress
towards carbon neutrality Absa's environmental strategy and programme
F13 Value of portfolio by specific region and sector NR

External assurance
Barclays online Sustainability Review 2007 External assurance and commentary
Barclays has commissioned Corporate Citizenship to provide it with external
assurance and commentary on its online Sustainability Review 2007. Barclays
management has prepared the Review and is responsible for its contents. Our
objectives were to review its contents and presentation, to conduct selected checks
to underlying records and other evidence, and to provide this statement for which
we have sole responsibility.
Corporate Citizenship
Corporate Citizenship is a specialist management consultancy, advising corporations
that seek to improve their economic, social and environmental performance around
the world. A detailed note describing our relationship with Barclays and the
assurance process we have adopted appears at the end of this statement.
Our opinion
In our opinion, the online Sustainability Review provides a fair and balanced
representation of the material aspects of Barclays performance for the 2007
reporting period. We have examined the processes Barclays has in place for
identifying, understanding, managing and responding to its corporate sustainability
issues. Where we believe significant gaps in performance data and stakeholder views
on material issues exist, they are identified below.
In forming our opinion and making our comments, we have based our work on the
international assurance standard AA1000, notably considering materiality,
completeness and responsiveness. We have also had regard to the reporting guidance
for content and the principles for defining quality contained in GRI's G3
sustainability reporting guidelines.
Commentary
A corporate sustainability report should explain how a company impacts on society,
looking at all the important economic, social and environmental concerns of its
stakeholders. It should show how crucial decisions are made, differing interests
are balanced and progress is being made towards the goal of sustainable
development. Honest about shortcomings, it should demonstrate how the organisation
is responsive, by listening, learning and improving.
Barclays eighth such report marks a shift in the company's approach to its social
responsibilities, with a new strategy of focussing on Barclays as 'a sustainable
bank' and as 'a responsible global citizen'. We recognise that this year's report
is a transition to this new outlook, with implementation still underway, and our
comments below are made in light of this.
Last year we commented that Barclays should explain the role of a bank in society
and in the economy. The new sustainability strategy makes progress in this regard.
We also note that Barclays has taken steps to link remuneration to sustainability
performance which will assist in embedding sustainability into decision making
across the business.
As Barclays continues its international expansion, the Review contains increased
coverage of operations in emerging markets, particularly how corporate
responsibility and sustainability issues are managed in the Absa business in South
Africa. We believe that future reports should show more about other emerging
markets, particularly on issues such as financial inclusion where a clearer
illustration of the different ways in which Barclays helps financially vulnerable
customers along the financial inclusion journey would help to complete the picture.
The intention to examine economic impacts in emerging markets more fully should
help to extend understanding of the contribution Barclays makes both in these
economies and wider.
The 2007 Review also covers more aspects of the business, with more information on
commercial and international banking, as well as the investment banking and asset
management businesses, Barclays Capital and Barclays Global Investors. As we have
commented previously, these businesses contribute a substantial portion of the
bank's overall profits and we believe reporting on the impacts of these businesses
should continue to expand.
Being a co-founder of the Equator Principles, Barclays has made good progress on
assessing its own investments for environmental and social risks. We believe some
readers would welcome further information on how these principles are being applied
in project finance deals, including a regional analysis and the impacts achieved by
those projects. Since Barclays applies more comprehensive social and environmental
guidelines to other large loans outside project finance, a fuller discussion of
these would also be welcome.
The company is also reporting more fully on how it is tackling its indirect
environmental impacts through its engagement with key suppliers, its employees and
its customers through new environmental products. This is an area where more data
would help show the impacts achieved; spending on suppliers, for example, increased
to ?7.2billion in 2007 from ?4.9bn in the year before.
Last year we recommended that Barclays should report more fully on its efforts to
improve customer service in UK Retail Banking, and this has been done. Barclays has
stated its intention to implement stronger world-wide data collection systems and
this will help provide stakeholders with increased disclosure on issues such as
customer satisfaction, as well as diversity, employee attitudes and community
involvement. We believe it advisable to consult stakeholders on enhancing future
reporting on topics such as human rights.
In addition the inclusion of Barclays approach to topics of interest to some
specialist stakeholders would strengthen transparency and accountability, even if
not judged material to understanding the company's overall sustainability
performance. These could include any involvement in controversial countries or
industry sectors such as armaments, customer issues such as bank charges or
operational matters such as outsourcing and off-shoring.
Future reporting
Looking forward, we believe there are three main areas where Barclays can
strengthen its sustainability reporting to meet stakeholders' expectations.
As a financial services company, Barclays is subject to extensive regulation and
supervision by public authorities. During the reporting period, loss of confidence
among others in its sector has resulted in government intervention. More
information about how regulation takes place in different marketplaces and greater
disclosure about relations with governments and regulators would strengthen
understanding. This would build on disclosures made this year and extend to
reporting on submissions made to consultations, for example, and engagement with
political parties and legislators beyond formal political donations.
A second area is the management of assets for clients, now amounting to some
$2trillion, where Barclays primary duty is to secure financial returns as
instructed by customers. Given growing expectations of the wider role of banks in
the global economy, we believe a fuller discussion is warranted about the dilemmas
and issues that arise, explaining the approach adopted and how this differs when
the bank's own funds are at risk. This would cover Barclays' view of its legal
duties, the issues on which it has engaged with company management, how votes are
cast on governance and other matters, and how engagement varies between European,
North American and Asian markets.
Finally, with the new 'sustainability' strategy in place, we believe that Barclays
should show how this helps the bank to contribute to the wider goal of sustainable
development, as defined by governments and other stakeholders. Such a discussion
would address what the limitations are on Barclays own responsibilities and where
others need to act, as well as the challenges that arise on the journey.
2 May 2008
Note on our relationship with Barclays and on the assurance process Our
relationship with Barclays
This is the third year that Corporate Citizenship has acted as the external
assurance provider for Barclays. We have not worked with Barclays on any other
projects during the year.
Separately, Barclays is a member of the LBG (the London Benchmarking Group) an
evaluation framework for corporate community involvement, which Corporate
Citizenship manages on behalf of the LBG's members and adherents.
The assurance process
As there are no statutory guidelines for social reporting, we have formed our own
judgements based on emerging best practice among other companies, the principles of
assurance standard AA1000, the approach of the Global Reporting Initiative, the
stated views of principal stakeholders and our own professional expertise and
experience.
In particular, we have considered the availability of information, sufficiency of
evidence, underlying systems and processes, internal assurance systems, adequacy of
resources and relevant legal and commercial constraints. We have judged materiality
by considering significant legal, regulatory and financial impacts, business
policies, the performance of peers and competitors and stakeholder views.
A team of four, led by a director, undertook the assurance and commentary process.
A second director acted as advisor to the group. The team has extensive relevant
professional and technical competencies and experience. For a fuller description
please refer to our website. The assurance process began in January 2008 and was
completed in May 2008. Detailed records were kept of meetings, assurance visits and
correspondence relating to the materiality, completeness and responsiveness of the
report, as well as to technical matters relating to the accuracy and presentation
of the data.
Our external assurance and commentary process for the online Sustainability Review
2007 has involved the following elements:
1 A thorough testing of data and statements made during the drafting process of
the Review, as well as in the final version on which we based our assurance
statement.
2 Meetings and discussions with a cross-section of Barclays businesses about
the bank's approach to corporate responsibility and its transition to
sustainability, its policies and performance, its future challenges and its
relations with stakeholders, including UK and Global Retail and Commercial banking,
Barclays Capital, BGI, as well as Absa and Barclaycard. These interviews were used
to obtain evidence to validate data and statements made in the report.
Representatives from the following business functions were interviewed:
Community Investment
Consumer Agenda
Corporate Affairs
Diversity
Environmental Products
Environmental Management
Financial Inclusion
Market Research
Public Policy
Risk Management
3 Examination of management and reporting systems, notably for employee
engagement, community investment and environmental management. We have relied upon
the external verification provided by SGS for the carbon dioxide emissions for
Barclays UK and European operations.
4 An analysis of best practice among other companies, the principles of the GRI
G3, as well as the Financial Services Sector Supplement and the AA1000 assurance
standard.
5 A review of national and international published sources of information about
the views and opinions of external stakeholders, including inter-governmental and
governmental agencies, academics and special interest groups.
6 An appraisal of Barclays stakeholder engagement activity, principally the
employee opinion survey and customer opinion research.
7 A review of external assessments made, notably by the Dow Jones
Sustainability Index and BITC's Corporate Responsibility Index.
8 Site visits to a Barclaycard call centre and to three Barclays retail
branches in the UK, representing a range of B5 and B6 level branches. This helped
inform our assessment of how Barclays' corporate responsibility and sustainability
policies and commitments are being implemented outside of headquarters.
Our work did not extend to a complete audit of the review's contents nor to direct
engagement with stakeholders to seek their views, beyond that mentioned above. We
have not been responsible for the preparation of the 2007 online Review nor in
devising the internal management and reporting systems that yielded the data
contained therein.
The opinions in this external assurance statement and commentary are intended to
extend understanding of Barclays non-financial performance and should not be used
or relied upon to form any judgements, or take any decisions, of a financial
nature.

Contacts
If you have any questions or feedback about our report, please send an email to
[email protected]
Address:
Public Policy & Sustainability Barclays
1 Churchill Place London E14 5HP