Barclays PLC Environmental Sustainability

Company considered for this research is Barclays PLC, which is a banking company, and close comparisons will be drawn with HSBC Holdings PLC and Standard Chartered banks, which also have their headquarters in UK. Barclays PLC UK ranked 20th in the world and featured in top 100 list according to 2019 S&P Global Market Intelligence report. This ranking was based purely on assets reports. Based on market capitalization by Relbanks.com rankings, it managed position 56. Euromoney awarded Barclays best Investment bank in Western Europe and UK twice in the last four years . National treasury management agency of Ireland “Barclays have been the lead in Belgium and French souverain green bond deals that preceded our deal” (Barclays-PLC-ESG-Report, 2018)

Barclays has made significant contribution to enhancement of environment and embraced corporate social responsibility as well. Termed as ESG, Barclays’ 2018 highlights of Environmental, Social and Governance Overview shows that the bank has facilitated more than £27.3 billion in Environmental Finance and seen to it that about 38% in carbon emission is reported. Note that this research will focus on environmental sustainability. The Barclays’ Green Bond Framework is instituted to help bring in major stakeholders in the responsibility of ensuring global environment sustainability (Barclays Green Bond Framework Sept, 2017).

Schotens, B.(2009). Corporate social responsibility in the international banking industry. Journal of Business Ethics, 86(2), 159-175

Key findings of the source- The findings show the aim of creating a platform to evaluate business social responsibility when it comes to multi-national banks. Such assessments are currently done by ranking bodies like KLD through provision of consistent progress reports. More often however, such reports do not show coherence from how they are described before being summed to give rankings. The frameworks are used regardless, and a mean improvement is noted between the years 2000 and 2005. Schotens is a professor of Economics at University of Groningen with relevant expertise in banking, financial systems and socially responsible investing etc. His other publications include, “Finance as a driver of corporate social responsibility” and “A note on the interaction between corporate social responsibility and financial performance”. It is also listed in the ABS.

Role in performance evaluation- it is significant to create platforms to help with ranking of business according to factors other than pure business acumen such as the need to create positive impact in the society without necessarily making profit. Social responsibility is established; therefore, it also shows steps the whole industry has taken, to take care of cooperate social responsibility due to the giant leap of progress made from 2000 to 2015

Ehlers, T., & Packer, F. (2017). Green bond finance and certification. BIS Quarterly Review September.

Key findings of the source- Green bonds are not typical investment tools but are just similar in the sense that they are valued during issuance. They are inherently more premium compared to conventional bonds. Note however that there is a relative similarity in performance of the two tools particularly in secondary markets. Despite this, most of green bonds are found in credit risks involving environmental sustainability and the fact that this is the case forms ground for their relevance in this study. It is also listed in the ABS list.

Role in performance of evaluation- The need to conserve environment need more investment and this is where green bonds come in. the need to boost investor confidence is important. This paper tries to explain how to maintain consistency of standards and quality of green bonds across all markets. This makes them readily be embraced.

Key findings of the source – this report shows in Shared Growth Ambition 2018 how there has been a general rise in trend number of customers who are supported through programs that enhance their access to finance. It shows improvement in rate of reduction of carbon emission is Barclays’ projects. It shows large transactions in social and environmental platforms in the UK.

Role in performance evaluation- impact of ESG is commendable because in steady decline in carbon emissions and better equipment of customers and UK citizens to achieve financial liberation. The data showing progress of this company can be compared with steps taken with other businesses in the same industry to point its commitment to this cause.

Key findings of the source- investment is being informed by the need to uphold responsible behavior. Investors are looking for business alternatives with opportunities that help create positive change in the world around them. The source therefore does a review on impact of ESG on credit portfolio performance. Finding include noting that different aspects of ESG during investment always reported slow and steady improvement. There is no mention of negative effects recorded. In the past, studies have shown that growth in ESG equity was not caused by already high bonds becoming less cheap. In environmental, social and governance bonds, best performance came from G and that their bonds had their credit integrity relatively stable.

Role in performance evaluation

Of the three constitutive elements of ESG, high governance bonds being less volatile compared to low governance bonds coupled with governance score having greatest impact of the three shows its strength in performance.

The first attempt of #Sustainableenvironment had about 5 tweets with no alternative related hashtag for the day 18th October. The second attempt had twitter synonyms of #LSEGSustainablefinance, #bonds and #Sustainablefinance. #Bonds had 200 tweets and #greenbonds had 8 tweets which can be attributed to its more specific nature compared to general #bonds.# LSEGSustainablefinance had 2 tweets and is probably a modification of #sustainablefinance by a firm to ride on this publicity. There was no single account nor tweet on #governancebond on 18th October. Social responsibility had twitter synonym of #climatechange with 6 tweets. The twitter platform has been used to gauge popularity. Twitter analytics tool of Tweet Binder was used to collect number of tweets for each issue. The last issue of #BarclaysBank is used to find out online popularity of the subject organization of this paper as far as twitter is concerned. However, a qualitative finding on bitter remarks against it emerged. One International Rescue is complaining about how the bank would not allow over the counter withdrawal despite being that cashpoints in the rural places are reducing in number. There is an online petition which has been set to stop this bank from doing away with cash withdrawal at post office. A look into profiles of those commenting are experts who feel the impact of initiative done by #BarclaysBank.

References:

Ehlers, T., & Packer, F. (2017). Green bond finance and certification. BIS Quarterly Review September.

Schotens, B. (2009). Corporate social responsibility in the international banking industry. Journal of Business Ethics, 86(2), 159-175