In addition to lending, Barclays’ model considers debt and equity financing arranged in the capital markets sourced from Dealogic as in scope. This is a key element of Barclays’ approach and ensures it is properly accounting for the breadth of support it provides its corporate clients through its capital markets franchise. They use the amount arranged over the past 12 months prior to the reporting date, which is pro-rated by the Dealogic league table credit if there are several banks in the syndicate.
Barclays has included capital markets financing activities for its calculations since 2020, noting that PCAF released its standard for calculating facilitated emissions based on capital markets financing activities in December 2023. Aligned to the PCAF Standard, Barclays considers 33% of its share of capital markets financing activities to calculate its financed emissions. However, Barclays deviates from the standard by including the full amount of syndicated loans arranged (i.e. including the undrawn portion also), and including transactions where Barclays was a co-manager, expanding the coverage and scope of transactions included (Barclays PLC 2023).
Read more on Barclays’ net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance’s Target Setting for Capital Markets Activities report (October 2024).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.